Document:

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                                  EXHIBIT 4.1
                                  -----------
                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

 (Exhibits and Schedules are omitted pursuant to Item 601(b)(2) of Regulation
   S-K. The Company agrees, however, to furnish supplementary a copy of such
                omitted items to the Commission upon request.)

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

                         REGISTRATION RIGHTS AGREEMENT

                                     Among

                     LERNOUT & HAUSPIE SPEECH PRODUCTS N.V.

                                      and

                   THE STOCKHOLDERS OF DICTAPHONE CORPORATION

                            Dated as of May 5, 2000

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                         REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT, dated as of May 5, 2000 (this "Agreement"),
among Lernout & Hauspie Speech Products N.V., a corporation organized under the
laws of Belgium (the "Company"), and the undersigned stockholders of the Company
(individually, a "Stockholder" and collectively, the "Stockholders").

     WHEREAS, the execution and delivery of this Agreement is a condition to the
obligations of Dictaphone Corporation, a Delaware corporation ("Dictaphone"),
under the Agreement and Plan of Merger dated as of March 7, 2000, among the
Company, Dark Acquisition Corp., a Delaware corporation and a direct wholly
owned subsidiary of the Company ("Merger Sub"), and Dictaphone (the "Merger
Agreement"), pursuant to which Dictaphone shall merge with and into Merger Sub,
all upon the terms and subject to the conditions set forth in the Merger
Agreement;

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     WHEREAS, upon consummation of the transactions contemplated by the Merger
Agreement, each Stockholder will beneficially own the number of shares of common
stock of the Company, BEF 10.77 fractional value, set forth opposite such
Stockholder's name in Schedule I hereto, which has been adjusted to reflect the
two for one stock split by the Company that will become effective on May 12,
2000, (together with any common stock of the Company issued as a dividend or
other distribution with respect thereto, or in exchange therefor, or in
replacement thereof, the "Company Common Stock"); and

     WHEREAS, the Company and the Stockholders now wish to enter into this
Agreement to set forth their understanding as to the registration rights of the
Stockholders with respect to the Company Common Stock;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
and covenants hereinafter set forth, the Company and the Stockholders hereby
agree as follows:

                                ARTICLE I. Definitions
                                ----------------------

Section 1.1 Definitions (a)  As used in this Agreement, the following terms
-----------------------
shall have the following meanings:

"Affiliate" has the meaning set forth in Rule 12b-2, as in effect on the date
 ---------
hereof, under the Exchange Act.

"beneficially own" has the meaning set forth in Rule 13d-3, as in effect on the
 ----------------
date hereof, under the Exchange Act.

"Business Day" means any day that is not a Saturday, Sunday or other day on
 ------------
which banks are required or authorized by law to be closed in The City of New
York.

"Closing Date" has the meaning set forth in the Merger Agreement.
 ------------

"Commission" means the U.S. Securities and Exchange Commission and any successor
 ----------
agency.

"Eligible Registrable Stock" means Registrable Stock that is not then subject to
 --------------------------
restrictions on transfer pursuant to the Stockholders Agreement.

"Exchange Act" means the United States Securities Exchange Act of 1934, as
 ------------
amended.

"Holder" means a Stockholder and any Permitted Transferee.
 ------

"Note Termination Agreement" means the Note Termination Agreement among Company,
 --------------------------
Dictaphone and Stonington Financing IV, LLC, dated as of March 7, 2000.

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"Permitted Transferee" means in the case of each Stockholder, (a) any Affiliate
 --------------------
of the Stockholder or of any member of such Stockholder's immediate family, (b)
spouses, lineal descendants and members of the Stockholder's immediate family or
trusts for their benefits or (c) upon such Stockholder's death, such
Stockholder's executors, administrators, testamentary trustees, legatees, heirs
and beneficiaries.

"Person" means any individual, firm, corporation, partnership, limited
 ------
partnership, limited liability company, association, trust, unincorporated
organization or other entity, as well as any syndicate or group that would be
deemed to be a person under Section 13(d)(3) of the Exchange Act.

"Register," "registered" and "registration" shall refer to a registration
 --------    ----------       ------------
effected by preparing and filing a registration statement or similar document in
compliance with the Securities Act and the declaration or ordering of
effectiveness of such registration statement or document.

"Registrable Stock" means the Stockholder Shares and any securities issued or
 -----------------
issuable with respect to any Stockholder Shares by way of conversion, exchange,
replacement, stock dividend, stock split or other distribution or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise.  For purposes of this Agreement, any Registrable
Stock shall cease to be Registrable Stock when (i) a registration statement
covering such Registrable Stock has been declared effective and such Registrable
Stock has been disposed of pursuant to such effective registration statement,
(ii) such Registrable Stock is sold by a Person in a transaction in which the
rights under the provisions of this Agreement are not assigned pursuant to the
terms hereof, (iii) such Registrable Stock is sold pursuant to Rule 144(k) (or
any similar provision then in force, but not Rule 144A) under the Securities Act
without registration under the Securities Act or (iv) the market value of such
Holder's Registrable Stock at the time of determination is less than
$100,000,000 and it is capable of being sold pursuant to Rule 144 (or any
similar provision then in force, but not Rule 144A) within a single three month
period.

"Registration Period" means the period beginning on the date hereof and ending
 -------------------
on the fourth anniversary of such date, provided that if on such date the
Stockholders own Registrable Stock with an aggregate market value of
$150,000,000 or more, such period will be extended until the fifth anniversary
of the Closing.

"Securities Act" means the United States Securities Act of 1933, as amended.
 --------------

"Stockholders Agreement" means the Stockholders Agreement, dated as of the date
 ----------------------
hereof, among the Company, Stonington Holdings LLC and certain other
stockholders of the Company.

"Stockholder Shares" means the shares of Company Common Stock issued by Light to
 ------------------

          (a) the Stockholders upon the completion of the merger contemplated by
the Merger Agreement and (b) Stonington or any of its subsidiaries pursuant to
the Note Termination Agreement.

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(b)  The following terms have the meanings set forth in the Sections set forth
     below:

Term                                                      Location
----                                                      --------
Agreement................................................  Preamble
Company..................................................  Preamble
Company Common Stock.....................................  Recitals
Dictaphone...............................................  Recitals
Initiating Holders.......................................  (S)2.03(a)
Merger Agreement.........................................  Recitals
Merger Sub...............................................  Recitals
Stockholder..............................................  Preamble
Stockholders.............................................  Preamble

                    ARTICLE II.    Registration Rights
                    -------------  -------------------

Section 2.1    Restrictive Legend.  (a) Each certificate representing shares of
-------------  -------------------
Registrable Stock shall, except as otherwise provided in this Section 2.01 or in
Sec in Section 2.02, be stamped or otherwise imprinted with a legend
substantially in the following form:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED
          OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER THAT
          ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE."

     (b)  The Company shall, at the request of the Holder, remove from each
certificate evidencing Stockholder Shares the legend described in Section
2.01(a) if in the opinion of counsel reasonabl (a) satisfactory to the Company
the securities evidenced thereby may be publicly sold without registration under
the Securities Act.

Section 2.2 Notice of Proposed Transfer. Prior to any proposed transfer of any
---------------------------------------
shares of Registrable Stock (other than to a Permitted Transferee or under the
circumstances described in Sections 2.03 or 2.04), the holder thereof shall give
written notice to the Company of such Holder's intention to effect such
transfer. Each such notice shall describe the manner of the proposed transfer
and, if requested by the Company, shall be accompanied by an opinion of counsel
reasonably satisfactory to the Company to the effect that the proposed transfer
may be effected without registration under the Securities Act, whereupon the
holder of such Registrable Stock shall be entitled to transfer such Registrable
Stock in accordance with the terms of such notice. Each certificate for
Registrable Stock transferred as above provided shall bear the legend set forth
in Section 2.01(a), except that such certificate shall not bear such legend if
(i) such transfer is in accordance with the provisions of Rule 144 of the
Securities Act (or any other rule permitting public sale without registration
under the Securities Act) or (ii) the opinion of counsel referred to above is to
the further effect that the transferee and any subsequent transferee (other than
an Affiliate of the

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Company) would be entitled to transfer such securities in a public sale without
registration under the Securities Act. The restrictions provided for in this
Section 2.02 shall not apply to securities that are not required to bear the
legend prescribed by Section 2.01(a) in accordance with the provisions of
Section 2.01.

   Section 2.3 Request for Registration.  (a)  During the Registration Period,
   -------------------------------------
any Holder or Holders of at least 20% of the Registrable Stock (the "Initiating
Holders") may request in a written notice that the Company file a registration
statement under the Securities Act (or a similar or successor document pursuant
to any other statute then in effect corresponding to the Securities Act)
covering the registration of any or all Eligible Registrable Stock then held by
such Initiating Holders in the manner specified in such notice, provided that
there must be included in such registration at least 20% of the Registrable
Stock issued. Following receipt of any notice under this Section 2.03, the
Company shall (i) within 10 days notify any other Holders of Registrable Stock
of such request in writing and (ii) use all reasonable efforts to cause to be
registered under the Securities Act all Eligible Registrable Stock that the
Initiating Holders and any such other Holders have, within 10 days after the
Company has given such notice, requested be registered in accordance with the
manner of disposition specified in such notice by the Initiating Holders.

     (b)  If the Initiating Holders intend to have the Registrable Stock
distributed by means of an underwritten offering, the Holders shall enter into
an underwriting agreement and other ancillary agreements (such as a custody
agreement) in customary form with the underwriter or underwriters. The Company
will select the lead underwriter for such offering from the list of institutions
set forth on Schedule II hereto or their successors and the Holders shall select
the co-manager for such offering from the institutions on such list or their
successors. All of the representations and warranties by, and the other
agreements on the part of, the Company in the underwriting agreement and other
ancillary agreements to and for the benefit of such underwriters, shall, except
as they relate to information provided to the Company in writing by the Holders
for purposes of the proposed underwriting and registration, also be made to and
for the benefit of such Holders of Registrable Stock for the limited purpose of
their participation in such offering. No Holder shall be required to make any
representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding such
Holder, the Registrable Stock of such Holder and such Holder's intended method
of distribution and any other representations required by law or reasonably
required by the underwriter. If any Holder of Registrable Stock disapproves of
the terms of the underwriting, such Holder may elect to withdraw all its
Registrable Stock by written notice to the Company, the managing underwriter and
the Initiating Holders. The securities so withdrawn shall also be withdrawn from
registration.

     (c)  Notwithstanding any provision of this Agreement to the contrary,

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     (i)  the Company shall not be required to effect a registration pursuant to
     this Section 2.03 if the Company has effected a registration pursuant to
     this Section 2.03 within the 120-day period next preceding such request
     which permitted Holders to register Registrable Stock; and

     (ii) if the Company shall furnish to such Holders a certificate signed by a
     majority of the managing directors of the Company stating that in their
     good faith opinion such registration would have a material adverse effect
     on the Company or would interfere with any material transaction then being
     pursued by the Company, then the Company's obligation to use all reasonable
     efforts to file or confidentially submit a registration statement shall be
     deferred, provided that (A) the period of any such deferral shall terminate
     upon public disclosure of any such material transaction, (B) the Company
     shall not obtain any deferral under this Section 2.03(c)(ii) more than
     three times in any twelve-month period and (C) all deferrals under this
     Section 2.03(c)(ii) in any twelve-month period shall not exceed 60 days in
     the aggregate.

     (d)  The Company shall be obligated to effect and pay for a maximum of
three registrations pursuant to this Section 2.03; provided, that such
obligation shall be in respect of no more than two registrations following the
second anniversary of this Agreement, and no more than one registration
following the third anniversary of this Agreement; and provided, further, that a
registration requested pursuant to this Section 2.03 shall not be deemed to have
been effected for purposes of this Section 2.03(d) unless (i) it has been
declared effective by the Commission, (ii) it has remained effective for the
period set forth in Section 2.05(a) and (iii) the offering of Registrable Stock
pursuant to such registration is not subject to any stop order, injunction or
other order or requirement of the Commission (other than any such stop order,
injunction, or other requirement of the Commission prompted by any act or
omission of Holders of Registrable Stock).

   Section 2.4 Incidental Registration.  (a)  Subject to Section 2.08, if at any
   -----------------------------------
time the Company determines that it shall file a registration statement under
the Securities Act for the registration of Company Common Stock in a firm
commitment underwritten public offering (other than the registration of an offer
and sale of securities pursuant to an employee or similar benefit plan,
registered on Form S-8 or comparable form; or relating to a merger, acquisition
or other transaction of the type described in Rule 145 under the Securities Act
or comparable rule, registered on Form F-4 or Form S-4 or similar forms or filed
in connection with an exchange offer or an offering of securities solely to the
Company's existing stockholders) on any form that would also permit the
registration of the Registrable Stock and such filing is to be on its behalf or
on behalf of selling holders of its securities for the general registration of
Company Common Stock to be sold for cash, the Company shall each such time
promptly give each of the Stockholders written notice of such determination
setting forth the date on which the Company proposes to file such registration
statement, which date shall be no earlier than 15 Business Days from the date of
such notice, and advising the Stockholders of their right to have any or all of
the Registrable Stock included in such registration. Upon the written request of
any Holder received by the Company no later than 10 Business Days after the date
of the Company's notice, the Company shall cause to be registered

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under the Securities Act all of the Eligible Registrable Stock that each such
Holder has so requested to be registered, subject to reduction in accordance
with paragraph (b) of this Section.

     (b)  If, in the written opinion of the managing underwriter, the total
amount of such securities to be so registered, including such Registrable Stock,
will exceed the maximum amount of the Company's securities which can be marketed
(i) at a price reasonably related to the then current market value of such
securities, or (ii) without otherwise materially and adversely affecting the
entire offering, then the Company shall be entitled to reduce the number of
shares of Registrable Stock to be sold in such offering by the Holders and any
other stockholder of the Company offered the opportunity to participate in such
offering in accordance with the terms of the agreements listed on Schedule III
hereto, and subject thereto, in proportion (as nearly as practicable) to the
number of shares of Registrable Shares held, at the time of filing the
registration statement, by each Holder and each other stockholder of the Company
who is participating in such offering; provided however, that no provision
herein shall require the Company to reduce the number of shares of Company
Common Stock participating in such offering held by any stockholder of the
Company who is entitled to inclusion in such offering by reason of such
stockholder's demand registration rights.

     (c)  A request by Holders to include Registrable Stock in a proposed
registration pursuant to Section 2.04(a) shall not be deemed to be one of its
request registration rights granted pursuant to Section 2.03.

   Section 2.5  Obligations of the Company.  Whenever required under
   ---------------------------------------
Section 2.03 to effect the registration of any Registrable Stock, the Company
shall, as expeditiously as possible:

     (a)  prepare and file with the Commission a registration statement with
respect to such Registrable Stock (which, subject to Section 2.03(c)(ii), shall
be confidentially submitted or filed in no event later than 60 days after
written notice requesting a registration statement under Section 2.03 has been
received by the Company) and use all reasonable efforts to cause such
registration statement to become and remain effective for the period of the
distribution contemplated thereby determined as provided hereafter; provided
that the Company shall not be required to keep any Registration Statement
effective more than 120 days;

     (b)  prepare and file with the Commission such amendments and supplements
to such registration statement and the prospectus used in connection therewith
as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Stock covered by such registration
statement and, as may be necessary to complete the contemplated distribution of
the Registrable Stock, to keep such Registration Statement effective for a
reasonable period not to exceed 120 days and promptly notify the Holders of any
stop order issued or, to the Company's knowledge, threatened to be issued by the
Commission and take all reasonable actions required to prevent the entry of such
stop order or to remove it if entered;

     (c)  furnish to the Holders such numbers of copies of the registration
statement and the prospectus included therein (including each preliminary
prospectus) and any amendments or

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supplements thereto in conformity with the requirements of the Securities Act
and any exhibits filed therewith and such other documents and information as
they may reasonably request;

     (d)  use all reasonable efforts to register or qualify the Registrable
Stock covered by such registration statement under such other securities or blue
sky laws of such jurisdiction within the United States and Puerto Rico as shall
be reasonably appropriate for the distribution of the Registrable Stock covered
by the registration statement; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do
business in or to file a general consent to service of process in any
jurisdiction wherein it would not but for the requirements of this paragraph (d)
be obligated to do so; and provided, further, that the Company shall not be
required to qualify such Registrable Stock in any jurisdiction in which the
securities regulatory authority requires that any Holder submit any shares of
its Registrable Stock to the terms, provisions and restrictions of any escrow,
lockup or similar agreement(s) for consent to sell Registrable Stock in such
jurisdiction unless such Holder agrees to do so;

     (e)  promptly notify each Holder for whom such Registrable Stock is covered
by such registration statement, at any time when a prospectus relating thereto
is required to be delivered under the Securities Act, of the happening of any
event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances under
which they were made, and at the request of any such Holder promptly prepare and
furnish to such Holder a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such securities, such prospectus shall not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which they were made. In the
event the Company shall give such notice, the Company shall extend the period
during which such Registration Statement shall be maintained effective as
provided in Section 2.05(a) by the number of days during the period from and
including the date of the giving of such notice to the date when the Company
shall make available to the Holders such supplemented or amended prospectus;

     (f)  furnish, at the request of any Holder requesting registration of
Registrable Stock pursuant to Sections 2.03, if the method of distribution is by
means of an underwriting, on the date that the shares of Registrable Stock are
delivered to the underwriters for sale pursuant to such registration, or if such
Registrable Stock is not being sold through underwriters, on the date that the
registration statement with respect to such shares of Registrable Stock becomes
effective, (1) a signed opinion, dated such date, of the independent legal
counsel representing the Company for the purpose of such registration, addressed
to the underwriters, if any, as to such matters as such underwriters may
reasonably request and as would be customary in such a transaction; and (2)
letters dated such date and the date the offering is priced from the independent
certified public accountants of the Company, addressed to the underwriters, if
any, (i) stating that they are independent certified public accountants within
the meaning of the Securities Act and that, in the

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opinion of such accountants, the financial statements and other financial data
of the Company included in the registration statement or the prospectus, or any
amendment or supplement thereto, comply as to form in all material respects with
the applicable accounting requirements of the Securities Act and (ii) covering
such other financial matters with respect to the registration in respect of
which such letter is being given as such underwriters may reasonably request and
as would be customary in such a transaction;

     (g)  enter into customary agreements (including if the method of
distribution is by means of an underwriting, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order
to expedite or facilitate the disposition of the Registrable Stock to be so
included in the registration statement;

     (h)  otherwise use all reasonable efforts to comply with all applicable
rules and regulations of the Commission; and

     (i)  use all reasonable efforts to list the Registrable Stock covered by
such registration statement with any securities exchange on which the Company
Common Stock is then listed. For purposes of Sections 2.05(a) and 2.05(b), the
period of distribution of Registrable Stock in a firm commitment underwritten
public offering shall be deemed to extend until each underwriter has completed
the distribution of all securities purchased by it, and the period of
distribution of Registrable Stock in any other registration shall be deemed to
extend until the earlier of the sale of all Registrable Stock covered thereby
and 120 days after the effective date thereof.

Section 2.6  Additional Holder Obligations.  (a)  It shall be a condition
------------------------------------------
precedent to the obligations of the Company to take any action pursuant to this
Agreement that the Holders shall furnish to the Company such information
regarding themselves, their relationship with the Company and its Affiliates,
their beneficial ownership of Company Common Stock, the Registrable Stock held
by them, and the intended method of disposition, if any, of such securities as
the Company shall reasonably request and as shall be required in connection with
the action to be taken by the Company.

     (b)  The Company may, upon written notice to such Holder, suspend such
Holder's use of the prospectus for a reasonable period not to exceed sixty (60)
days if the Company in its reasonable judgment believes it may possess material
non-public information the disclosure of which at that point in time in its
reasonable judgment would have a material adverse effect on the Company or
interfere with any material transaction then being pursued by the Company;
provided that (A) the Company may not effect any suspension under this Section
2.06 (b) more than three times in any twelve-month period and (B) all
suspensions under this Section 2.06(b) in any twelve-month period shall not
exceed 60 days in aggregate. Each Holder further agrees by acquisition of such
Registrable Stock that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 2.05(e) or this Section
2.06(b), such Holder will forthwith discontinue disposition of such Registrable
Stock covered by the registration (other than in transactions exempt from the
registration requirements under the Securities Act) until such Holder's

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receipt of the copies of the supplemented or amended prospectus contemplated by
Section 2.05(e), or until it is advised in writing (the "Advice") by the Company
that the use of the applicable prospectus may be resumed, and, in either case,
has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such prospectus. If
the Company shall give any such notice, the Company shall extend the period
during which the registration shall be maintained effective as provided herein
by the number of days during such period from and including the date of the
giving of such notice to and including the date when each Holder shall have
received (x) the copies of the supplemented or amended prospectus contemplated
by Section 2.05(e) or (y) the Advice, and, in either case, has received copies
of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such prospectus.

     (c)  Each Holder understands that information provided to it pursuant to
any notice under Sections 2.05 or 2.06(b) or otherwise pursuant to this
Agreement or any of the registrations to be effected hereby may contain
confidential information, as designated in writing by the Company, and agrees
that unless such information otherwise becomes generally known to the public to
maintain such information in confidence and not use such information for its own
benefit other than as expressly contemplated by this Agreement.

     (d)  Each Holder agrees to comply with the prospectus delivery requirements
under the Securities Act in connection with the sale of any Registrable Stock
pursuant to a registration statement filed hereunder.

   Section 2.7  Expenses of Registration.  All expenses incurred by the
   -------------------------------------
Company in connection with each registration pursuant to Sections 2.03 and 2.04
of this Agreement, excluding underwriters' discounts and commissions, but
including without limitation all registration, filing and qualification fees,
word processing, duplicating, printers' and accounting fees (including the
expenses of any special audits or "cold comfort" letters required by or incident
to such performance and compliance), fees of the National Association of
Securities Dealers, Inc. or listing fees, messenger and delivery expenses, all
fees and expenses of complying with state securities or blue sky laws, and the
fees and disbursements of counsel for the Company, shall be paid by the Company;
provided, however, that if a registration request pursuant to Section 2.03 is
subsequently withdrawn by the Holders of a number of Registrable Stock such that
the remaining Holders requesting registration would not have been able to
request registration under the provisions of such Section 2.03, the Company
shall not be required to pay any expenses of such registration proceeding, and
such withdrawing Holders shall bear such expenses. The Holders shall bear and
pay the underwriting commissions and discounts applicable to securities offered
for their account and the fees and disbursements of their counsel in connection
with any registrations, filings and qualifications made pursuant to this
Agreement.

   Section 2.8  Underwriting Requirements.  In connection with any underwritten
   -----------  -------------------------
offering, the Company shall not be required under Section 2.04 to include shares
of Registrable Stock in such underwritten offering unless the Holders of such
shares of Registrable Stock accept the terms of the

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underwriting of such offering that have been reasonably agreed upon between the
Company and the underwriters selected by the Holders.

   Section 2.9  Rule 144 Information.  With a view to making available
   ---------------------------------
the benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the Registrable Stock to the public without
registration, at all times after 90 days after any registration statement
covering a public offering of securities of the Company under the Securities Act
shall have become effective, the Company agrees to:

          (a) make and keep public information available, as those terms are
     understood and defined in Rule 144 under the Securities Act;

          (b) use its reasonable best efforts to file with the Commission in a
     timely manner all reports and other documents required of the Company under
     the Exchange Act; and

          (c) furnish to each Holder of Registrable Stock forthwith upon request
     a written statement by the Company as to its compliance with the reporting
     requirements of such Rule 144 and of the Securities Act and Exchange Act, a
     copy of the most recent annual or quarterly report of the Company, and such
     other reports and documents so filed by the Company as such Holder may
     reasonably request in availing itself of any rule or regulation of the
     Commission allowing such Holder to sell any Registrable Stock without
     registration.

     Section 2.10  Indemnification.  In the event any Registrable Stock
     -----------------------------
is included in a registration statement under this Agreement:

     (a)  The Company shall indemnify and hold harmless each Holder, such
Holder's directors, officers, agents, trustees and stockholders, and each Person
who participates in the offering of such Registrable Stock, including
underwriters (as defined in the Securities Act), and each Person, if any, who
controls such Holder or participating Person within the meaning of the
Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or proceedings in
respect thereof) arise out of or are based on any untrue or alleged untrue
statement of any material fact contained in such registration statement on the
effective date thereof (including any prospectus filed under Rule 424 under the
Securities Act or any amendments or supplements thereto) or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse each such Holder, such Holder's directors and
officers, such participating person or controlling person for any legal or other
expenses reasonably incurred by them (but not in excess of expenses incurred in
respect of one counsel for all of them, subject to the limitations set forth in
Section 2.10(c)) in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this Section 2.10(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company; provided,

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further, that the Company shall not be liable to any Holder, such Holder's
directors, officers, agents, trustees and stockholders, and participating Person
or controlling Person in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon (i) an
untrue statement or alleged untrue statement or omission or alleged omission
made in connection with such registration statement, preliminary prospectus,
final prospectus or amendments or supplements thereto, in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, such Holder's directors, officers,
agents, trustees and stockholders, and participating Person or controlling
Person or (ii) an untrue statement or alleged untrue statement or omission or
alleged omission made in connection with such registration statement,
preliminary prospectus, final prospectus or amendments or supplements thereto
corrected in a final or amended registration statement or prospectus if such
Holder or underwriter received written notice of such final or amended
prospectus prior to the confirmation of any sale but failed to deliver a copy of
the final or amended prospectus at or prior to the confirmation of the sale of
the Registrable Stock to the person asserting such loss, claim, damage or
liability. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of any such Holder, such Holder's
directors, officers, agents, trustees and stockholders, and participating Person
or controlling Person, and shall survive the transfer of such securities by such
Holder.

                                      13
<PAGE>

     (b)  Each Holder requesting or joining in a registration severally and not
jointly shall indemnify and hold harmless the Company, each of its directors and
officers, each Person, if any, who controls the Company within the meaning of
the Securities Act, and each agent and any underwriter for the Company (within
the meaning of the Securities Act) against any losses, claims, damages or
liabilities, joint or several, to which the Company or any such director,
officer, controlling Person, agent or underwriter may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or proceedings in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained
in such registration statement on the effective date thereof (including any
prospectus filed under Rule 424 under the Securities Act or any amendments or
supplements thereto) or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such registration
statement, preliminary or final prospectus, or amendments or supplements
thereto, in reliance upon and in conformity with written information furnished
by or on behalf of such Holder expressly for use in connection with such
registration; and each such Holder shall reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer, controlling
Person, agent or underwriter (but not in excess of expenses incurred in respect
of one counsel for all of them) in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
indemnity agreement contained in this Section 2.10(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of such Holder, and provided,
further, that the liability of each Holder hereunder shall be limited to the
amount received by such Holder from the sale of all Registrable Stock covered by
such registration statement.

     (c)  Promptly after receipt by an indemnified party under this Section 2.10
of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 2.10, notify the indemnifying party in writing of the commencement
thereof and the indemnifying party shall have the right to participate in and
assume the defense thereof with counsel selected by the indemnifying party and
reasonably satisfactory to the indemnified party (unless (i) such indemnified
party reasonably objects to such assumption on the grounds that there may be
defenses available to it which are different from or in addition to those
available to such indemnifying party, (ii) the indemnifying party and such
indemnified party shall have mutually agreed to the retention of such counsel or
(iii) in the reasonable opinion of such indemnified party representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding, in which case the indemnified party shall be reimbursed by the
indemnifying party for the reasonable expenses incurred in connection with
retaining separate legal counsel); provided, however, that an indemnified party
shall have the right to retain its own counsel, with all fees and expenses
thereof to be paid by such indemnified party, and to be apprised of all progress
in any proceeding the defense of which has been assumed by the indemnifying
party. The failure to notify an indemnifying party promptly of the commencement
of any such action shall not relieve the

                                      14
<PAGE>

indemnifying party from any liability in respect of such action which it may
have to such indemnified party on account of the indemnity contained in this
Section 2.10, unless (and only to the extent) the indemnifying party was
prejudiced by such failure, and in no event shall such failure relieve the
indemnifying party from any other liability which it may have to such
indemnified party. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any claim or pending
or threatened proceeding in respect of which the indemnified party is or could
have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability arising out of such claim or
proceeding.

         (d)  (i)  To the extent any indemnification by an indemnifying party is
     prohibited or limited by law, the 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 or liabilities in such proportion as is appropriate to reflect the
     relative fault of the indemnifying party and indemnified party in
     connection with the actions which resulted in such losses, claims, damages
     or liabilities, as well as any other relevant equitable considerations.
     The relative fault of such indemnifying party and indemnified party shall
     be determined by reference to, among other things, whether any action in
     question, including any untrue or alleged untrue statement of material fact
     or omission or alleged omission to state a material fact, has been made by,
     or relates to information supplied by, such indemnifying party or
     indemnified party, and the parties' relative intent, knowledge, access to
     information and opportunity to correct or prevent such action.  The amount
     paid or payable by a party as a result of the losses, claims, damages or
     liabilities referred to above shall be deemed to include any legal or other
     fees or expenses reasonably incurred by such party in connection with any
     investigation or proceeding.

              (ii) The parties hereto agree that it would not be just and
        equitable if contribution pursuant to this Section 2.10(d) were
        determined by pro rata allocation or by any other method of allocation
        which does not take account of the equitable considerations referred to
        in the immediately preceding paragraph. No person guilty of fraudulent
        misrepresentation (within the meaning of Section 11(f) of the Securities
        Act) shall be entitled to contribution from any person who was not
        guilty of such fraudulent misrepresentation.

   Section 2.11  Lockup.  Each Holder shall, in connection with any
   ------------  ------
registration of the Company's securities, upon the request of the Company or the
underwriters managing any underwritten offering of the Company's securities,
agree in writing not to effect any sale, disposition or distribution of any
Company Common Stock (other than that included in the registration) without the
prior written consent of the Company or such underwriters, as the case may be,
for such period of time from 30 days prior to the effective date of such
registration as the Company or the underwriters may specify; provided, however,
that (i) all executive officers and directors of the Company and holders of
Company Common Stock participating in such registration shall also have agreed
not to effect any sale, disposition or distribution of any Company Common

                                      15
<PAGE>

Stock under the circumstances and pursuant to the terms set forth in this
Section 2.11 and (ii) in no event shall the Holders be required to not effect
any sale, disposition or distribution for longer than 90 days after the
Registration Statement becomes effective.

                          ARTICLE III.  Miscellaneous
                          ---------------------------

   Section 3.1 Transfer of Registration Rights.  The registration rights of any
   -------------------------------------------
Holder under this Agreement with respect to any Registrable Stock may be
transferred to a Permitted Transferee; provided, however, that (i) the
transferring Holder shall give the Company notice at or prior to the time of
such transfer stating the name and address of the transferee and identifying the
securities with respect to which the rights under this Agreement are to be
transferred, (ii) such transferee shall agree in writing, in form and substance
reasonably satisfactory to the Company, to be bound as a Holder by the
provisions of this Agreement and (iii) immediately following such transfer the
further disposition of such securities by such transferee is restricted under
the Securities Act. Any transfer of Registrable Stock other than as set forth in
this Section 3.01 shall cause such Registrable Stock to lose such status.

   Section 3.2  Interpretation.  (a)  The headings contained in this Agreement
   ---------------------------
and, in the table of contents to this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

     (b)  In the event of an ambiguity or a question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties
and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provisions of this Agreement.

     (c)  The definitions of the terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". Unless the
context requires otherwise (i) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (ii) any reference
herein to any Person shall be construed to include the Person's successors and
permitted assigns, (iii) the words "herein", "hereof" and "hereunder", and words
of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, and (iv) all references herein to
Articles and Sections shall be construed to refer to Articles and Sections of
this Agreement.

   Section 3.3  Amendments.  No amendment, modification or waiver in respect
   -----------------------
of this Agreement shall be effective unless it shall be in writing and signed by
both parties hereto.

                                      16
<PAGE>

   Section 3.4  Assignment.  Except where otherwise expressly provided herein,
   -----------------------
this Agreement and the rights and obligations hereunder shall not be assignable
or transferable by the parties hereto (except by operation of law in connection
with a merger, or sale of substantially all the assets, of the parties hereto)
without the prior written consent of the other party hereto. Any attempted
assignment in violation of this Section 3.04 shall be void. Notwithstanding
anything to the contrary in this Agreement, it is acknowledged and agreed that
any change in any trustee or fiduciary acting for a Stockholder that is an
employee benefit plan, or any transfer of any Registrable Stock to one or more
successor trusts or plans by merger or reorganization, shall not be deemed an
assignment of this Agreement or any rights hereunder, or an assignment or
transfer of such Registrable Stock, for purposes of, or in any way prohibited
by, or subject to any limitations or requirements of this Agreement and that
such trustee, fiduciary, trust or plan shall have all of the benefits hereunder
and that such Registrable Stock shall continue to be Registrable Stock
hereunder.

   Section 3.5  No Third-Party Beneficiaries.  This Agreement is for the sole
   -----------------------------------------
benefit of the parties hereto and their permitted assigns and nothing herein
expressed or implied shall give or be construed to give to any Person, other
than the parties hereto and such assigns, any legal or equitable rights
hereunder.

   Section 3.6  Notices.  All notices or other communications required or
   --------------------
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent by prepaid telex, cable or telecopy or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service and
shall be deemed given when so delivered by hand, telexed, cabled or telecopied,
or if mailed, five days after mailing (two Business Days in the case of express
mail or overnight courier service), as follows:

     (i)  if to the Company,

               Lernout & Hauspie Speech Products N.V.
               Flanders Language Valley 50
               8900 Ieper
               Belgium
               Attention:   General Counsel and Chief Financial Officer

     with a copy to:

               Brown, Rudnick, Freed & Gesmer
               One Financial Center
               Boston, MA  02111
               Attention:   Philip J. Flink

                                      17
<PAGE>

     (ii)  if to the Stockholders,

               c/o Stonington Partners Inc.
               767 Fifth Avenue, 48th Floor
               New York, NY  10153
               Attention:  Albert J. Fitzgibbons, III
               with a copy to:
               Shearman & Sterling
               599 Lexington Avenue
               New York, New York  10022
               Attention:  Clare O'Brien

    (ii) if to Bell Atlantic Master Trust

               Mellon Bank, N.A., as
               Trustee for the Bell Atlantic
                Master Trust
               One Mellon Bank Center
               Pittsburgh, PA  15258-0001
               Attention:  Robert F. Sass
               Fax:  (412) 236-4225
               Tel:  (412) 234-2201
                      and

               Bell Atlantic Asset Management Company
               245 Park Avenue
               40th Floor
               New York, New York  10067
               Attention:  Conrad A. Francis
               Fax:  (212) 557-4564
               Tel:  (212) 557-5329
               Email:  conrad.a.francis@BellAtlantic.com
                       ---------------------------------

   Section 3.7  Counterparts.  This Agreement may be executed in one or
   -------------------------
more counterparts, all of which shall be considered one and the same agreement,
and shall become effective when one or more such counterparts have been signed
by each of the parties and delivered to the other party. Copies of executed
counterparts transmitted by telecopy, telefax or other electronic transmission
service shall be considered original executed counterparts for purposes of this
Section 3.07; provided that receipt of copies of such counterparts is confirmed.

   Section 3.8  Severability.  If any provision of this Agreement (or any
   -------------------------
portion thereof) or the application of any such provision (or any portion
thereof) to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision
to any other Persons or circumstances.

                                      18
<PAGE>

   Section 3.9  Consent to Jurisdiction.  Each of the parties hereto irrevocably
   ------------------------------------
submits to the exclusive jurisdiction of (a) a Federal court for the Southern
District of New York and (b) any New York state court located in the County of
New York, for the purposes of any suit, action or other proceeding arising out
of this Agreement or any transaction contemplated hereby. Each of the Company
and the Stockholders agrees to commence any action, suit or proceeding relating
hereto either in a Federal Court for the Southern District of New York or in a
New York state court located in the County of New York. The Company further
agrees that service of any process, summons, notice or document by U.S.
registered mail to the offices of Brown Rudnick, Freed & Gesmer, One Financial
Center, Boston, MA 02111, Attention: Philip J. Flink shall be effective service
of process for any action, suit or proceeding in New York with respect to any
matters to which it has submitted to jurisdiction in this Section 3.09. Each of
the parties hereto irrevocably and unconditionally waives any objection to the
laying of venue of any action, suit or proceeding arising out of this Agreement
or the transactions contemplated hereby in (i) any Federal court for the
Southern District of New York or (ii) any New York state court located in the
County of New York, and hereby further irrevocably and unconditionally waives
and agrees not to plead or claim in any such court that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum.

   Section 3.10  Waiver of Jury Trial.  Each of the parties hereto hereby
   ----------------------------------
waives to the fullest extent permitted by applicable law, any right it may have
to a trial by jury in respect to any litigation directly or indirectly arising
out of, under or in connection with this Agreement. Each of the parties hereto
(a) certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the
event of litigation, seek to enforce that foregoing waiver and (b) acknowledges
that it and the other parties hereto have been induced to enter into this
Agreement, by, among other things, the mutual waivers and certifications in this
Section 3.10.

   Section 3.11  Specific Performance.  The parties hereto agree that
   ----------------------------------
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or equity.

   Section 3.12  Governing Law.  This Agreement shall be governed by and
   ---------------------------
construed in accordance with the internal laws of the State of New York
applicable to agreements made and to be performed entirely within such State,
without regard to the conflicts of law principles of such State other than
Section 5-1401 of the New York General Obligations Law.

                                      19
<PAGE>

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

                                    LERNOUT & HAUSPIE
                                    SPEECH PRODUCTS N.V.

                                    By  /s/ Gaston Bastiaens
                                        --------------------
                                    Name:   Gaston Bastiaens
                                    Title:  Chief Executive Officer

                                    STONINGTON HOLDINGS, LLC

                                    By  /s/ Albert J. Fitzgibbons, III
                                        ------------------------------
                                    Name: Albert J. Fitzgibbons, III
                                    Title:

                                    Mellon Bank, N.A., as Trustee for
                                    the Bell Atlantic Master Trust

                                    By  /s/ Carole Bruno
                                        ----------------
                                    Name:  Carole Bruno
                                    Title: Authorized Signatory

                                    Merrill Lynch KECALP L.P., 1994

                                    By:  KECALP Inc., its General Partner

                                    By  /s/ Edward J. Higgins
                                        ----------------------
                                    Name:   Edward J. Higgins
                                    Title:  Vice President

                                      20
<PAGE>

                                    /s/ John Duerden
                                    ------------------------
                                    John H. Duerden

                                    /s/ Robert Schwager
                                    ------------------------
                                    Robert G. Schwager

                                    /s/ Joseph D. Skrzypczak
                                    ------------------------
                                    Joseph D. Skrzypczak

                                    /s/ Ronald Elwell
                                    ------------------------
                                    Ronald A. Elwell

                                    /s/ Thomas Hodge
                                    ------------------------
                                    Thomas C. Hodge

                                    /s/ Daniel Hart
                                    ------------------------
                                    Daniel P. Hart

                                    /s/ Egon Jungheim
                                    ------------------------
                                    Egon Jungheim

                                      21<PAGE>

                                                                     EXHIBIT 4.4

                         FORM OF SUBSCRIPTION AGREEMENT

Cyberian Outpost, Inc.
27 North Main Street
P.O. Box 636
Kent, CT  06757

Gentlemen:

       1. Subscription. (a) The undersigned, intending to be legally bound,
hereby irrevocably subscribes to purchase from Cyberian Outpost, Inc., a
Delaware corporation (the "Company"), the number of shares of Common Stock of
the Company, par value $.01, (the "Common Stock") set forth on the signature
page hereof, at a purchase price equal to the lesser of (i) 95% of the trailing
ten day average closing price of the Common Stock on NASDAQ ending two business
days prior to February 28, 2000 (the "Pricing Date"), or (ii) 95% of the closing
price of the Common Stock on the Pricing Date (the "Purchase Price"). This
subscription is submitted to you in accordance with and subject to the terms and
conditions described in this Agreement and the Registration Rights Agreement,
dated as of March 10, 2000 (the "Registration Rights Agreement"), relating to an
offering (the "Offering") of up to 4,702,900 shares of common stock of the
Company (the aggregate number of shares sold pursuant to this Agreement is
herein referred to as the "Shares").

       (b) Subscription payments should be made payable to "Cyberian Outpost,
Inc., Escrow Account" and should be delivered, together with two executed and
properly completed copies of this Agreement (and, if requested by the Company or
C.E. Unterberg, Towbin ("CEUT"), an executed and properly completed copy of the
appropriate Investor Questionnaire in the form supplied by CEUT), to C.E.
Unterberg, Towbin, 10 East 50th Street, 20th Floor, New York, New York 10022,
Attention: Michael Marrus. If the subscription is not accepted in whole or in
part by the Company, the full or ratable amount, as the case may be, of any
subscription payment received will be promptly refunded to the subscriber
without deduction therefrom or interest thereon.

       (c) If this subscription is accepted by the Company, in whole or in part,
and subject to the conditions set forth in Section 2 of this Agreement, the
Company shall deliver to the undersigned the Shares subscribed for hereby, dated
the date of closing of the Offering of the Shares (the "Closing"), and a fully
executed copy of this Agreement. The Closing shall occur when all documents
reasonably acceptable by the Company and CEUT are executed and delivered to
CEUT.

       (d) The Company has engaged CEUT to introduce the Company to persons who
may be interested in purchasing Shares and to advise the Company in connection
with the structure, terms and conditions of the Offering. As consideration for
its services, CEUT will receive, among other things, on the Closing date (i)
cash commission equal to 4 1/2% of the aggregate capital raised from the sale of
Common Stock, plus $25,000 to cover counsel fees and other expenses. CEUT did
not prepare any of the information to be delivered to prospective investors in
connection with the Offering and does not make any representation or warranty
concerning the accuracy or completeness of such information. Prospective
investors are advised to conduct their own review of the business, properties
and affairs of the Company before subscribing to purchase Shares.
<PAGE>

       (e) The undersigned may not withdraw this subscription or any amount paid
pursuant thereto except as otherwise provided below.

       2. Conditions. It is understood and agreed that this subscription is made
subject to the following terms and conditions:

       (a) The Company shall have the right to accept or reject this
subscription in whole or in part. Unless this subscription is accepted in whole
or in part by the Company prior to the Closing, this subscription shall be
deemed rejected in whole. The Company and CEUT may agree to extend the Closing
for a period not to exceed 60 days or to close on such earlier date as may be
mutually agreed.

       (b) At the Closing, CEUT shall have received a usual and customary legal
opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., counsel to the
Company, addressed to CEUT on behalf of the purchasers and the undersigned in
care of CEUT and dated the date of the Closing, in form and substance reasonably
satisfactory to CEUT and its counsel. The Company hereby instructs such counsel
to deliver such opinion to each of CEUT and each subscriber for Shares.

       (c) At the date of the Closing, CEUT shall have been furnished an
officer's closing certificate and a secretary closing certificate, and any other
such information, documents, certificates, and opinions as it may reasonably
require to evidence the accuracy, completeness, or satisfaction of the
representations, warranties, covenants, agreements, and conditions herein
contained or as it otherwise may reasonably request.

       3. Representations and Warranties of the Company. The Company represents
and warrants to, and agrees with the undersigned as follows, in each case as of
the date hereof and in all material respects as of the date of the Closing
except for any changes resulting solely from the Offering:

       (a) The Company is duly organized, validly existing and in good standing
under the laws of its state of incorporation with full power and authority to
own, lease, license and use its properties and assets and to carry out the
business in which it is engaged, as described in the most recent Form 10-K and
Form 10-Q filings by the Company (the "SEC Documents"). The Company is duly
qualified to transact the business in which it is engaged as described in the
SEC Documents and is in good standing as a foreign corporation in every
jurisdiction in which its ownership, leasing, licensing or use of property or
assets or the conduct of its business makes such qualification necessary, except
where the failure to be so qualified would not have a material adverse effect on
the Company. The Company shall use the net proceeds from this Offering to expand
its existing business, accelerate the implementation of its business plan and to
consummate acquisitions, if any, and for working capital and other general
corporate expenses.

                                     - 2 -
<PAGE>

       (b) At the date of the Closing, the authorized capital stock of the
Company will consist of 50,000,000 shares of Common Stock, par value $0.01 per
share, 10,000,000 shares of Preferred Stock, par value $.01. As of February 29,
2000, without taking into account the shares of Common Stock to be issued at the
Closing, there will be outstanding no shares of Preferred Stock and 23,761,810
shares of Common Stock, excluding shares issuable upon exercise or conversion of
options, warrants or other rights outstanding as of the date hereof. Each
outstanding share of Common Stock and Preferred Stock is validly authorized,
validly issued, fully paid and nonassessable, without any personal liability
attaching to the ownership thereof and has not been issued and is not owned or
held in violation of any preemptive rights of stockholders. There is no
commitment, plan or arrangement to issue, and no outstanding option, warrant or
other right calling for the issuance of, any share of capital stock of the
Company or any security or other instrument which by its terms is convertible
into, exercisable for or exchangeable for capital stock of the Company, except
as may be described properly in the SEC Documents. There is outstanding no
security or other instrument which by its terms is convertible or exchangeable
for capital stock of the Company, except as may be described completely and
properly in the SEC Documents. The Shares and the Additional Shares (as defined
below) when issued in accordance with the terms and conditions hereof will be
validly issued, fully paid and non-assessable.

       (c) The financial statements included in the SEC Documents fairly present
in all material respects, the financial position, the results of operations, and
the other information purported to be shown therein of the Company at the
respective dates and for the respective periods to which they apply. Such
financial statements have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved, and
are in accordance with the books and records of the Company covered therein.

       (d) There is no litigation, arbitration, claim, governmental or other
proceeding (formal or informal), or investigation pending or, to the best
knowledge, after due inquiry, of the officers of the Company, threatened with
respect to the Company, or any of its operations, businesses, prospects,
properties or assets except as may be described in the SEC Documents or such as
individually or in the aggregate do not now have and could not reasonably be
expected in the future have a material adverse effect upon the operations,
business, prospects, properties, or assets of the Company. The Company is not in
violation of, or in default with respect to, any law, rule, regulation, order,
judgment or decree except as may be described in the SEC Documents or such as in
the aggregate do not now have and will not in the future have a material adverse
effect upon the operations, business, prospects, properties or assets of the
Company; nor is the Company required to take any action in order to avoid any
such violation or default.

       (e) The Company has all requisite power and authority to (i) execute,
deliver and perform its obligations under each of (A) this Agreement and (B) the
Registration Rights Agreement (collectively, the "Documents") and (ii) to issue
and sell the Shares and the Additional Shares. All necessary corporate
proceedings of the Company have been duly taken to authorize the execution,
delivery, and performance of the Documents, the issuance and sale of the Shares
and the Additional Shares, and the filing of any documents requiring filing by
any federal or state securities or other regulatory authority. Each Document has
been duly authorized by the Company and, when executed and delivered by the
Company will constitute the legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms (assuming due
authorization and execution of the Documents by any other necessary parties
thereto).

                                     - 3 -
<PAGE>

       (f) No consent, authorization, approval, order, license, certificate or
permit of or from, or declaration or filing with, any federal, state, local or
other governmental authority, or any court or any other tribunal, is required by
the Company for the execution, delivery or performance by the Company of the
Documents or the issuance and sale of the Shares and the Additional Shares
(except such filings and consents as may be required and have been or at the
Closing will have been made or obtained under federal and state securities
laws).

       (g) No consent of any party to any contract, agreement, instrument,
lease, license, arrangement or understanding to which the Company is a party or
to which any of properties or assets are subject (the "Contracts") is required
for the execution, delivery or performance by the Company of any of the
Documents or the issuance and sale of the Shares or the Additional Shares. The
execution, delivery and performance of the Documents and the issuance and sale
of the Shares or the Additional Shares will not trigger anti-dilution
adjustments to any of the Company's outstanding securities under the Company's
Certificate of Incorporation or any agreement to which the Company is a party or
otherwise.

       (h) The execution, delivery and performance of the Documents and the
issuance and sale of the Shares or the Additional Shares will not violate or
result in a breach of, or entitle any party (with or without the giving of
notice or the passage of time or both) to terminate or call a default under any
Contract or violate or result in a breach of any term of the Certificate of
Incorporation or by-laws of, or violate any law, rule, regulation, order,
judgment or decree binding upon, the Company or to which any of its operations,
businesses, properties or assets are subject, the breach, termination or
violation of which, or default under which, would have a material adverse effect
on the operations, business, properties or assets of the Company.

       (i) The Company shall effect a shelf registration statement for the
Shares on Form S-3 (if available, otherwise on Form S-1) (the "Registration
Statement"). This Registration Statement shall be filed with the Securities and
Exchange Commission as soon as practicable, and the Company shall use its best
efforts to have the Registration Statement declared effective within 180 days
after the Closing. Such Registration Statement shall be continuously maintained
in effect for a period of not less than two years from the Closing Date. Should
the Registration Statement not be declared effective within the 180 day period,
the Company shall pay on each of the 181st day after the Closing and, if the
Registration Statement is still not effective, on the 211th day after the
Closing, pay the undersigned an amount equal to 5% of the purchase price for the
shares purchased hereby, payable, at the option of the Company, in either cash
or additional shares Common Stock of the Company (the "Additional Shares"),
which shares shall be valued at the lower of (i) the Purchase Price or (ii) the
trailing ten day average closing price of the Common Stock of the Company on the
NASDAQ ending two business days prior to the date such payment is due. If the
Company is required to issue any Additional Shares of Common Stock, the Company
shall include those Additional Shares in the Registration Statement.

       (j) The Company has filed all documents and other reports, including
Current Reports on Form 8K, required to be filed by it pursuant to the U.S.
securities laws.

                                     - 4 -
<PAGE>

       (k) The SEC Documents and this Agreement do not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading.
Without limiting the generality of the foregoing, there has been no material
adverse change in the financial condition, results of operations, business,
properties, assets, liabilities or future prospects of the Company from the
latest information set forth in the SEC Documents.

       (l) The Company and CEUT shall maintain the confidentiality of the terms
of this Agreement and planned financings.

       4. Representations, Warranties and Covenants of the Subscriber. The
undersigned hereby represents and warrants to, and agrees with, the Company as
follows:

       (a) The undersigned is an "Accredited Investor" as that term is defined
in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as
amended (the "Act"). Specifically the undersigned is (check appropriate
items(s)):

              [ ] (i) A bank as defined in Section 3(a)(2) of the Act, or a
       savings and loan association or other institution as defined in Section
       3(a)(5)(A) of the Act, whether acting in its individual or fiduciary
       capacity; a broker or dealer registered pursuant to Section 15 of the
       Securities Exchange Act of 1934; an insurance company as defined in
       Section 2(13) of the Act; an investment company registered under the
       Investment Company Act of 1940 (the "Investment Company Act") or a
       business development company as defined in Section 2(a)(48) of the
       Investment Company Act; a Small Business Investment Company licensed by
       the U.S. Small Business Administration under Section 301(c) or (d) of the
       Small Business Investment Act of 1958; a plan established and maintained
       by a state, its political subdivisions or any agency or instrumentality
       of a state or its political subdivisions for the benefit of its
       employees, if such plan has total assets in excess of $5,000,000; an
       employee benefit plan within the meaning of the Employee Retirement
       Income Security Act of 1974 ("ERISA"), if the investment decision is made
       by a plan fiduciary, as defined in Section 3(21) of ERISA, which is
       either a bank, savings and loan association, insurance company, or
       registered investment advisor, or if the employee benefit plan has total
       assets in excess of $5,000,000 or, if a self-directed plan, with
       investment decisions made solely by persons that are accredited
       investors.

              [ ] (ii) A private business development company as defined in
       Section 202(a)(22) of the Investment Advisers Act of 1940.

              [ ] (iii) An organization described in Section 501(c)(3) of the
       Internal Revenue Code, corporation, Massachusetts or similar business
       trust, or partnership, not formed for the specific purpose of acquiring
       the securities offered, with total assets in excess of $5,000,000.

              [ ] (iv) A director or executive officer of the Company.

              [ ] (v) A natural person whose individual net worth, or joint net
       worth with that person's spouse, at the time of his or her purchase
       exceeds $1,000,000. (California and Massachusetts residents: please see
       Section 4(b) below.)

                                     - 5 -
<PAGE>

              [ ] (vi) A natural person who had an individual income in excess
       of $200,000 in each of the two most recent years or joint income with
       that person's spouse in excess of $300,000 in each of those years and has
       a reasonable expectation of reaching the same income level in the current
       year. (California and Massachusetts residents: please see Section 4(b)
       below.)

              [ ] (vii) A trust, with total assets in excess of $5,000,000, not
       formed for the specific purpose of acquiring the securities offered,
       whose purchase is directed by a sophisticated person as described in Rule
       506(b)(2)(ii) (i.e., a person who has such knowledge and experience in
       financial and business matters that he is capable of evaluating the
       merits and risks of the prospective investment).

              [ ] (viii) An entity in which all of the equity owners are
       accredited investors. (If this alternative is checked, the undersigned
       must identify each equity owner and provide statements signed by each
       demonstrating how each is qualified as an accredited investor.)

       (b) For California and Massachusetts individuals: If the subscriber is a
California resident, such subscriber's investment in the Company will not exceed
10% of such subscriber's net worth (or joint net worth with his spouse). If the
subscriber is a Massachusetts resident, such subscriber's investment in the
Company will not exceed 25% of such subscriber's joint net worth with his spouse
(exclusive of principal residence and its furnishings).

       (c) If a natural person, the undersigned is: a bona fide resident of the
State contained in the address set forth on the signature page of this Agreement
as the under-signed's home address; at least 21 years of age; and legally
competent to execute this Subscription Agreement. If an entity, the undersigned
is duly authorized to execute this Agreement and this Agreement constitutes the
legal, valid and binding obligation of the undersigned enforceable against the
undersigned in accordance with its terms.

       (d) The undersigned has received, read carefully and is familiar with
this Agreement, the Registration Rights Agreement and the SEC Documents.
Respecting the Company, the undersigned is familiar with the Company's business,
plans and financial condition, the terms of the Offering and any other matters
relating to the Offering; the undersigned has received all materials which have
been requested by the undersigned; has had a reasonable opportunity to ask
questions of the Company and its representatives; and the Company has answered
all inquiries that the undersigned or the undersigned's representatives have put
to it. The undersigned has had access to all additional information necessary to
verify the accuracy of the information set forth in this Agreement and the SEC
Documents and any other materials furnished herewith, and has taken all the
steps necessary to evaluate the merits and risks of an investment as proposed
hereunder.

       (e) The undersigned or the undersigned's purchaser representative has
such knowledge and experience in finance, securities, investments and other
business matters so as to be able to protect the interests of the undersigned in
connection with this transaction, and the undersigned's investment in the
Company hereunder is not material when compared to the undersigned's total
financial capacity.

                                     - 6 -
<PAGE>

       (f) The undersigned understands the various risks of an investment in the
Company as proposed herein and can afford to bear such risks, including, without
limitation, the risks of losing the entire investment.

       (g) The undersigned has been advised by the Company that none of the
Shares or the Additional Shares have been registered under the Act, that the
Shares and the Additional Shares will be issued on the basis of the statutory
exemption provided by Section 4(2) of the Act or Regulation D promulgated
thereunder, or both, relating to transactions by an issuer not involving any
public offering and under similar exemptions under certain state securities
laws, that this transaction has not been reviewed by, passed on or submitted to
any Federal or state agency or self-regulatory organization where an exemption
is being relied upon, and that the Company's reliance thereon is based in part
upon the representations made by the undersigned in this Agreement. The
undersigned acknowledges that the undersigned has been informed by the Company
of, or is otherwise familiar with, the nature of the limitations imposed by the
Act and the rules and regulations thereunder on the transfer of the Shares and
the Additional Shares. In particular, the undersigned agrees that no sale,
assignment or transfer of any of the Shares and the Additional Shares shall be
valid or effective, and the Company shall not be required to give any effect to
such a sale, assignment or transfer, unless (i) the sale, assignment or transfer
of such Shares or Additional Shares is registered under the Act, it being
understood that the Shares and the Additional Shares are not currently
registered for sale although the Company has agreed to so register the Shares
and the Additional Shares as provided in this Agreement and the Registration
Rights Agreement, or (ii) such Shares or Additional Shares are sold, assigned or
transferred in accordance with all the requirements and limitations of Rule 144
under the Act, it being understood that Rule 144 is not available at the present
time for the sale of the Shares or the Additional Shares, or (iii) such sale,
assignment or transfer is otherwise exempt from registration under the Act. The
undersigned further understands that an opinion of counsel and other documents
may be required to transfer the Shares and the Additional Shares. The
undersigned acknowledges that the Shares and the Additional Shares shall be
subject to a stop transfer order and the certificate or certificates evidencing
any Shares or any Additional Shares shall bear the following or a substantially
similar legend or such other legend as may appear on the forms of Shares or the
Additional Shares and such other legends as may be required by state blue sky
laws:

       "The securities represented by this certificate have not been registered
       under the Securities Act of 1933, as amended (the "Act"), or any state
       securities laws and neither such securities nor any interest therein may
       be offered, sold, pledged, assigned or otherwise transferred unless (1) a
       registration statement with respect thereto is effective under the Act
       and any applicable state securities laws or (2) the Company receives an
       opinion of counsel to the holder of such securities, which counsel and
       opinion are reasonably satisfactory to the Company, that such securities
       may be offered, sold, pledged, assigned or transferred in the manner
       contemplated without an effective registration statement under the Act or
       applicable state securities laws."

                                     - 7 -
<PAGE>

       (h) The undersigned will acquire the Shares and the Additional Shares for
the undersigned's own account (or for the joint account of the undersigned and
the undersigned's spouse either in joint tenancy, tenancy by the entirety or
tenancy in common) for investment and not with a view to the sale or
distribution thereof or the granting of any participation therein, and has no
present intention of distributing or selling to others any of such interest or
granting any participation therein.

       (i) It never has been represented, guaranteed or warranted by any broker,
the Company, CEUT, any of the officers, directors, stockholders, partners,
employees or agents of either, or any other persons, whether expressly or by
implication, that:

              (i) the Company or the undersigned will realize any given
       percentage of profits and/or amount or type of consideration, profit or
       loss as a result of the Company's activities or the undersigned's
       investment in the Company; or

              (ii) the past performance or experience of the management of the
       Company, or of any other person, will in any way indicate the predictable
       results of the ownership of the Shares or the Additional Shares or of the
       Company's activities.

       (j) No oral or written representations have been made other than as
stated in the SEC Documents, and no oral or written information furnished to the
undersigned or the undersigned's advisor(s) in connection with the Offering were
in any way inconsistent with the information stated in the SEC Documents.

       (k) The undersigned is not subscribing for Shares as a result of or
subsequent to any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over
television or radio, or presented at any seminar or meeting, or any solicitation
of a subscription by a person other than a representative of CEUT or the Company
with which the undersigned had a pre-existing relationship in connection with
investments in Shares generally.

       (l) The undersigned is not relying on the Company with respect to the tax
and other economic considerations of an investment.

       (m) The undersigned understands that the net proceeds from all
subscriptions paid and accepted pursuant to the Offering (after deduction for
expenses of the Offering, including the fees and expenses payable to CEUT) will
be used in all material respects for the purposes set forth in this Agreement.

       (n) Without limiting any of the undersigned's other representations and
warranties hereunder, the undersigned acknowledges that the undersigned has
reviewed and is aware of the risk factors described in the SEC Documents.

       (o) The undersigned acknowledges that the representations, warranties and
agreements made by the undersigned herein shall survive the execution and
delivery of this Agreement and the purchase of the Shares.

                                     - 8 -
<PAGE>

       (p) The undersigned understands that CEUT does not make any
representation or warranty concerning the accuracy or completeness of any
information, relating to the Company or its operations, to be delivered to
prospective investors in connection with the Offering.

       (q) The undersigned has consulted his own financial, legal and tax
advisors with respect to the economic, legal and tax consequences of an
investment in the Shares and has not relied on the SEC Documents or the Company,
its officers, directors or professional advisors for advice as to such
consequences.

       5. Indemnification. The undersigned acknowledges that the undersigned
understands the meaning and legal consequences of the representations and
warranties contained in Section 4 hereof, and agrees to indemnify and hold
harmless the Company, CEUT, its partners, and each incorporator, officer,
director, partner, employee, agent and controlling person of each thereof, past,
present or future, from and against any and all loss, damage or liability due to
or arising out of a breach of any such representation or warranty.

       6. Transferability. Neither this Agreement, nor any interest of the
undersigned herein, shall be assignable or transferable by the undersigned in
whole or in part except by operation of law. Any attempt to assign or transfer
this Agreement or any interest therein other than by operation of law shall be
void.

       7. Miscellaneous.

       (a) This Agreement sets forth the entire understanding of the parties
with respect to the subject matter hereof, supersedes all existing agreements
among them concerning such subject matter, and may be modified only by a written
instrument duly executed by the party to be charged.

       (b) Except as otherwise specifically provided herein, any notice or other
communication required or permitted to be given hereunder shall be in writing
and shall be mailed by certified mail, return receipt requested, or by Federal
Express, Express Mail or similar overnight delivery or courier service or
delivered (in person or by telecopy, telex or similar telecommunications
equipment) against receipt to the party to whom it is to be given, (i) if to the
Company, at the address set forth on the first page hereof, (ii) if to the
undersigned, at the address set forth on the signature page hereof, or (iii) in
either case, to such other address as the party shall have furnished in writing
in accordance with the provisions of this Section 7(b). Notice to the estate of
any party shall be sufficient if addressed to the party as provided in this
Section 7(b). Any notice or other communication given by certified mail shall be
deemed given at the time of receipt thereof. Any notice given by other means
permitted by this Section 7(b) shall be deemed given at the time of receipt
thereof.

       (c) This Agreement shall be binding upon and inure to the benefit of the
parties hereto, the successors and assigns of the Company, and the permitted
successors, assigns, heirs and personal representatives of the undersigned
(including permitted transferees of the Shares).

                                     - 9 -
<PAGE>

       (d) The headings in this Agreement are solely for convenience of
reference and shall be given no effect in the construction or interpretation of
this Agreement.

       (e) This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

       (f) This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without giving effect to principles governing
conflicts of law.

       (g) This Agreement does not create, and shall not be construed as
creating, any rights enforceable by any person not a party to this Agreement
(except as provided in Sections 5, 6, and 7(c) and 7(g)); provided, that CEUT
shall be entitled to rely on, and shall be a third party beneficiary of, the
representations, warranties and agreements contained in this Agreement.

       (h) The parties hereto irrevocably consent to the jurisdiction of the
courts of the State of New York and of any federal court located in such State
in connection with any action or proceeding arising out of or relating to this
Agreement, any document or instrument delivered pursuant to, in connection with
or simultaneously with this Agreement, or a breach of this Agreement or any such
document or instrument. In any such action or proceeding, each party hereto
waives personal service of any summons, complaint or other process and agrees
that service thereof may be made in accordance with Section 7(b). Within 30 days
after such service, or such other time as may be mutually agreed upon in writing
by the attorneys for the parties to such action or proceeding, the party so
served shall appear or answer such summons, complaint or other process.

                                     - 10 -
<PAGE>

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year this subscription has been accepted by the Company as set forth
below.

Number of Shares
Being Purchased        Print Name of Subscriber

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

                           By: _______________________________
                               (Signature of Subscriber or
                               Authorized Signatory)

                           Social Security Number or other
                           Taxpayer Identification Number:

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

                                    Address:
                                            --------------------

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

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

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

                                    If the Shares will be held as
                                    joint tenants, tenants in
                                    common, or community property,
                                    please complete the following:

                                    -----------------------------
                                    Print name of spouse or other co-subscriber

                                    -----------------------------
                                    Signature of spouse or other co-subscriber

                                    -----------------------------
                                    Print manner in which Shares will be held

                                    ------------------------------
                                    Social Security Number

[Please complete Section 4 for each subscriber. Each subscriber's signature
should be notarized on the appropriate following page.]

                                     - 11 -
<PAGE>

ACCEPTED BY:
CYBERIAN OUTPOST, INC.

By:____________________________
   Name:
   Title:

Date:  March __, 2000

                                     - 12 -
<PAGE>

                                  [Individuals]

STATE OF          )
                  )        ss.:
COUNTY OF         )

                  On the ______ day of March 2000, before me personally came
______________________________ and ________________, to me known, and known to
me to be the person(s) described in and who executed the foregoing instrument,
and s/he/they acknowledged to me that s/he/they executed the same.

                                            ----------------------------
                                                   Notary Public

                                 [Corporations]

STATE OF          )
                  )        ss.:
COUNTY OF         )

                  On the ______ day of March, 2000, before me personally came
___________, to me known, who, being by me duly sworn, did depose and say that
s/he resides in _____________________________ that s/he is the _____________ of
________________________________________, the corporation described in and which
executed the above instrument; and that s/he signed his/her name thereto by
order of the board of directors of said corporation.

                                            ----------------------------
                                                   Notary Public

                                     - 13 -
<PAGE>

                                 [Partnerships]

STATE OF          )
                  )        ss.:
COUNTY OF         )

                  On the ______ day of March, 2000, before me personally came
____________________________________________, to me known, and known to me to be
the person who executed the foregoing instrument, and who, being duly sworn by
me, did depose and say that s/he is a general partner of _____________________,
that s/he executed the foregoing instrument in such partnership's name, and that
s/he had authority to sign the same, and s/he acknowledged to me that s/he
executed the same as the act and deed of said partnership for the uses and
purposes therein mentioned.

                                            ----------------------------
                                                   Notary Public

                                     - 14 -

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