Document:

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Exhibit 4.4
                         REGISTRATION RIGHTS AGREEMENT

         Registration Rights Agreement ("Agreement"), dated as of July 3, 2001,
by and among Imperial Credit Industries, Inc., a California corporation (the
"Company"), and each of the undersigned Investors (hereinafter referred to
individually as an "Investor" and collectively as the "Investors").

                                  WITNESSETH:

         WHEREAS, the Company and each of the Investors have entered into a
Master Recapitalization Agreement, dated as of March 29, 2001 (the
"Recapitalization Agreement"), providing for (i) the purchase by certain of the
Investors of the Company's Senior Secured Notes due 2002 (the "Senior Secured
Notes") that are subsequently to be exchanged for Senior Secured Notes due 2005
(the "Exchange Notes"), with an election to exchange such Exchange Notes for 12%
Convertible Subordinated Notes due 2005 (the "Convertible Subordinated Debt"),
and (ii) the purchase by certain other Investors of additional amounts of
Convertible Subordinated Debt;

         WHEREAS, the Recapitalization Agreement also provides for the issuance
of Common Stock and warrants (the "Debt Exchange Warrants") to purchase Common
Stock of the Company in connection with the exchange of Exchange Notes for
outstanding indebtedness of the Company and the exchange of Senior Secured Notes
for Exchange Notes as aforesaid; and

         WHEREAS, the Company desires to provide the Investors with certain
registration rights with respect to the shares of Common Stock, the Debt
Exchange Warrants and the Convertible Subordinated Debt issuable pursuant to the
Recapitalization Agreement, including shares of Common Stock issuable upon
exercise of the Debt Exchange Warrants and pursuant to conversion of the
Convertible Subordinated Debt;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the Company and the Investors agree as follows:

         Section 1.     Definitions.

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

                 (a)    "Affiliate" shall mean, with respect to any Person, any
         Person that, directly or indirectly, controls, is controlled by or is
         under common control with such Person.

                 (b)    "Business Day" shall mean any day except a Saturday,
         Sunday or other day on which commercial banks in the State of
         California are authorized by law to close.

                 (c)    "Common Stock" shall mean the common stock, no par
         value, of the Company.
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     (d)  "Common Stock Holders" shall mean certain Investors issued Common
Stock as described in and pursuant to the Recapitalization Agreement, as the
same may be amended, supplemented or otherwise modified from time to time.

     (e)  "Convertible Subordinated Debt" shall mean the12% Convertible
Subordinated Notes due 2005 as defined in and issued by the Company pursuant to
the Recapitalization Agreement, as the same may be amended, supplemented or
otherwise modified from time to time.

     (f)  "Debt Exchange Warrants" shall mean the Debt Warrants as defined in
and issued by the Company pursuant to the Recapitalization Agreement, as the
same may be amended, supplemented or otherwise modified from time to time,
including the Debt Exchange Warrants for 871,681 shares of Common Stock issued
to the holders of the Senior Secured Notes upon the exchange of the Senior
Secured Notes for Exchange Notes.

     (g)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

     (h)  "Exchange Notes" shall mean the Senior Secured Notes due 2005 as
defined in and issued by the Company pursuant to the Recapitalization Agreement,
as the same may be amended, supplemented or otherwise modified from time to time
including the $5 million in additional aggregate principal amount of Exchange
Notes issuable pursuant to Section 2.4(c) of the Recapitalization Agreement.

     (i)  "Holder" shall mean any holder of outstanding Registrable Securities
or anyone who holds outstanding Registrable Securities to whom the registration
rights conferred by this Agreement have been transferred in compliance with this
Agreement.

     (j)  "Person" shall mean an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

     (k)  "Recapitalization Agreement" shall mean the Master Recapitalization
Agreement, dated as of March 29, 2001, among the Company and the Investors, as
the same may be amended, supplemented or otherwise modified from time to time.

     (l)  "Register," "registered," and "registration" refer to a registration
effected by preparing and filing one or more Registration Statements in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such Registration Statement(s) by the SEC.

     (m)  "Registrable Securities" shall mean (i) the Exchange Notes, (ii) the
Convertible Subordinated Debt, (iii) the Common Stock issued to the Common Stock
Holders, (iv) the 249,052 shares of Common Stock issued to the holders of the
Senior Secured Notes upon exchange of the Senior Secured Notes for Exchange
Notes, (v) the Common Stock issued to exchanging holders of outstanding
indebtedness of the Company in the Debt Exchange provided for in the
Recapitalization Agreement, (vi) the

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Common Stock issued or issuable pursuant to conversion of the Convertible
Subordinated Debt, (vii) the Debt Exchange Warrants issued to exchanging holders
of outstanding indebtedness of the Company in the Debt Exchange provided for in
the Recapitalization Agreement, (viii) the Debt Exchange Warrants issued to the
holders of the Senior Secured Notes upon exchange of the Senior Secured Notes
for Exchange Notes, (ix) the Common Stock issued or issuable upon exercise of
the Debt Exchange Warrants, including the Debt Exchange Warrants for 871,681
shares of Common Stock issued to the holders of the Senior Secured Notes upon
the exchange of the Senior Secured Notes for Exchange Notes, and (x) any shares
of the capital stock (or rights to receive capital stock) of the Company issued
in respect of the securities described in clauses (iii) through (vi) and (ix) of
this definition by reason of or in connection with any stock dividend, stock
distribution, stock split, purchase in any rights offering or in connection with
any combination of shares, recapitalization, merger or consolidation, or any
other equity securities issued pursuant to any other pro rata distribution with
respect to any of the securities included in clauses (iii) through (vi) and (ix)
of this definition (it being understood that, for purposes of this Agreement,
each of clauses (i) through (ix) constitutes a separate "category" of
Registrable Securities even though the same underlying security may be involved
in more than one such clause). Notwithstanding the foregoing, Registrable
Securities shall not include otherwise Registrable Securities (i) sold to or
through a broker or dealer or underwriter or (ii) sold in a transaction exempt
from the registration and prospectus delivery requirements of the Securities Act
under Section 4(l) thereof, if in any such case all transfer restrictions, and
restrictive legends with respect thereto, if any, are removed upon the
consummation of such sale.

     (n)  "Registration Statement" shall mean any registration statement filed
with the SEC pursuant to Sections 3 or 4 of this Agreement.

     (o)  "Required Registration" shall have the meaning set forth in Section
3(a) of this Agreement.

     (p)  "SEC" shall mean the Securities and Exchange Commission, or any other
federal agency at the time administering the Securities Act.

     (q)  "Securities Act" shall mean the Securities Act of 1933, as amended,
and the rules and regulations of the SEC thereunder.

     (r)  "Senior Secured Notes" shall mean the Senior Secured Notes due 2002
issued by the Company pursuant to the Recapitalization Agreement, as the same
may be amended, supplemented or otherwise modified from time to time.

     (s)  "Shelf Registration Statement" shall have the meaning set forth in
Section 3(a).

     (t)  "Underwritten Offering" shall mean a bona fide underwritten public
offering pursuant to a Registration Statement.

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     Section 2. Restrictions on Transferability.

     The Registrable Securities shall not be sold, transferred or otherwise
disposed of, except in accordance with and subject to (i) the provisions of the
Securities Act and the rules and regulations promulgated thereunder and (ii) the
applicable requirements of Section 3.2 of the Recapitalization Agreement.

     Section 3. Required Registration.

     (a) Within 120 days after the issuance of a category of Registrable
Securities, the Company will register (the "Required Registration") all of the
Registrable Securities in such category of Registrable Securities then
outstanding pursuant to Rule 415 under the Securities Act and applicable state
securities laws if and to the extent that such registration is necessary to
enable the Holders to sell their Registrable Securities (a "Shelf Registration
Statement") it being contemplated that such registration will not be required
for the securities issued in the Debt Exchange provided for in the
Recapitalization Agreement. Each Shelf Registration Statement shall state that,
in accordance with Rule 416 promulgated under the Securities Act, such
Registration Statement also covers, as applicable, such indeterminate number of
additional shares of Common Stock as may become issuable upon conversion of the
Convertible Subordinated Debt and exercise of the Debt Exchange Warrants to
prevent dilution resulting from stock splits, stock dividends or similar
transactions. The Company shall use its best efforts to have the Registration
Statement declared effective by the SEC within 105 days after the date of
issuance of the Registrable Securities to which it relates. The Company agrees
to use its best efforts to keep the Shelf Registration Statement current and
continuously effective under the Securities Act and applicable state securities
laws until the earliest to occur of (i) such time as all of the Registrable
Securities have been sold, (ii) all of the Registrable Securities may be sold by
the respective Holders thereof in single transactions for each such Holder (so
that registration of such Holders' Registrable Securities is no longer required
for the sale thereof), or (iii) the fifth anniversary of (i.e., the expiration
of 60 months following) the completion of the Debt Exchange provided for in the
Recapitalization Agreement. The terms and procedures for the Required
Registration shall be as set forth in Sections 6, 7 and 8.

     (b) Unless the Holders shall consent in writing, no other party, including
the Company (but excluding another Holder), shall be permitted to offer
securities under the Shelf Registration Statement.

     (c) The Company may delay filing the Shelf Registration Statement for not
more than 120 days if (i) the Company has filed, or has taken substantial steps
toward filing, a registration statement relating to the sale of the same
category of the Company's securities (the "Company Securities") in an
Underwritten Offering and the managing underwriter is of the opinion that the
sale of such Registrable Securities pursuant to the Shelf Registration Statement
would adversely affect the offering by the Company of Company Securities, or
(ii) the Board of Directors of the Company determines in good faith, by
resolution, that the filing of a registration statement (including the effects
of the disclosures that would then be required to be included therein) would, if
not so deferred, materially and adversely affect a then proposed or pending
financial project, acquisition, merger or corporate reorganization.

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     (d)  No sales of Registrable Securities may be made by a Holder pursuant to
the Shelf Registration Statement unless and until the Company has received a
written notice that such Holder intends to make offers or sales of Registrable
Securities pursuant to the Shelf Registration Statement. Each such notice shall
specify the amount of Registrable Securities proposed to be sold by the Holder
and shall also specify the intended method of disposition thereof. Upon receipt
of a notice from a Holder under this Section 3(d), the Company shall promptly
confirm to the Holder providing such notice that the Shelf Registration
Statement is current and effective or prepare, file with the SEC and provide to
such Holder any such amendment or supplement to the Shelf Registration Statement
or the prospectus contained therein as shall be necessary to make the Shelf
Registration Statement current under the Securities Act and applicable states
securities laws and the Holder providing such notice shall not make any offer or
sale of the Registrable Securities pursuant to the Shelf Registration Statement
until any such required filing has been made; provided, however, that the
Company shall make such filing within 10 Business Days after receipt of
appropriate notice, or such longer period as is reasonably necessary if such
preparation and filing are not commercially practicable within 10 Business Days.
Notwithstanding the foregoing, the Company shall have the right to postpone a
Holder's proposed sale pursuant to the Shelf Registration Statement for a
reasonable period of time (not exceeding 60 days) if the Company furnishes the
Holder with a certificate signed by the Chairman of the Board of the Company
stating that, in its good faith judgment, the Company's Board of Directors has
determined that allowing sales of such category of Registrable Securities at
such time would adversely affect a material financing, acquisition, disposition
of assets or stock, merger or other comparable transaction or would require the
Company to make public disclosure of information the public disclosure of which
would have a material adverse effect upon the Company.

     (e)  If any Holder proposes to offer and sell Registrable Securities
pursuant to the Shelf Registration Statement through an Underwritten Offering,
the Company shall select and retain the underwriter or underwriters for the
offering, which underwriter or underwriters must be reasonably satisfactory to
the Holders, and shall provide notice to each other Holder in accordance with
the procedure set forth in Section 4(a) on the same basis as if the Company were
filing a registration statement as contemplated by Section 4.

     (f)  In connection with any offering pursuant to this Section 3, the
Holders shall have the right to select legal counsel and an investment banker or
bankers and manager or managers to administer their offering, which investment
banker or bankers or manager or managers shall be reasonably satisfactory to the
Company. The Company shall reasonably cooperate with any such counsel and
investment bankers.

     (g)  In the event that Form S-3 is not available for sale by the Holders of
the Registrable Securities, then the Company (i) shall register the sale of the
Registrable Securities on another appropriate form and (ii) the Company shall
undertake to register the Registrable Securities on Form S-3 as soon as such
form is available, provided that the Company shall maintain the effectiveness of
the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared
effective by the SEC.

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     Section 4.  Piggyback Registration Rights.

     (a)  If at any time or from time to time, the Company shall determine to
register any of its securities, for its own account or the account of any of its
stockholders, other than a registration on Form S-4 or Form S-8 or any successor
or similar forms thereto, the Company will: (i) give to each Holder written
notice thereof as soon as practicable prior to filing the Registration
Statement; and (ii) include in such registration and in any underwriting
involved therein, all the Registrable Securities specified in a written request
or requests, made within fifteen days after receipt of such written notice from
the Company, by any Holder or Holders, except as set forth in paragraph (b)
below, provided that if, at any time after giving such notice the Company shall
determine for any reason or for no reason not to register or to delay
registration of the securities of the Company which were to be included in the
Registration Statement, the Company may, at its election, give written notice of
such determination to each Holder desiring to include Registrable Securities in
such Registration Statement, and, thereupon, (i) in the case of determination
not to register, shall be relieved of its obligation to register any of such
Holders' Registrable Securities in connection with such registration (but not
from its obligations to pay expenses incurred in connection therewith, limited
as set forth in Section 6), and (ii) in the case of a delay in registering,
shall be permitted to delay registering all Holders' Registrable Securities for
the same period as the delay in registering such other securities. The Company
will pay the expenses in connection with each registration pursuant to this
Section 5, to the extent provided in Section 6.

     (b)  If the Company is registering securities for the purpose of an
Underwritten Offering, and if the managing underwriter of the offering advises
the Company and each Holder desiring to include Registrable Securities in such
Registration Statement in writing that, in its opinion, the number of securities
requested to be included in such registration exceeds the number which can be
sold in such offering without materially and adversely affecting the success of
such offering, the Company will include in such registration to the extent of
the number which the Company is so advised can be sold in such offering
securities determined as follows:

          (i)    First, the securities proposed by the Company to be sold for
          its own account; and

          (ii)   Second, allocated among the Holders desiring to include
          Registrable Securities in such Registration Statement pro rata based
          on the number of Registrable Securities to be included in such
          registration by such Holders; provided, that if the Underwritten
          Offering is one initiated by one or more Holders of Registrable
          Securities pursuant to Section 3(e), then the allocation of
          Registrable Securities provided for in this Section 4(b)(ii) shall
          first be to the Holders initiating such Underwritten Offering and the
          amount of any remaining Registrable Securities shall then be allocated
          among all of the other Holders desiring to include Registrable
          Securities in such Underwritten Offering.

     Section 5.  Underwritten Offerings.

     (a)  The Company agrees that if at any time it proposes to register any of
its securities under the Securities Act as contemplated by Section 4 and such
securities are to be distributed by

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or through one or more underwriters, the Company will, subject to the provisions
of Section 4(b), if requested by any Holder desiring to include Registrable
Securities in such Registration Statement, arrange for such underwriters to
include the shares to be offered and sold by such Holder among the securities to
be distributed by such underwriters, and each such Holder agrees that all
securities shall be distributed and sold through such underwriters. The
selection of the underwriter or underwriters shall be made by the Company, in
its sole discretion. The Holders of Registrable Securities to be distributed by
such underwriters shall be parties to the underwriting agreement between the
Company and such underwriters and may, at their option, require that any or all
of the representations and warranties by, and the other agreements on the part
of, the Company to and for the benefit of such underwriters also shall be made
to and for the benefit of such Holders and that any or all of the conditions
precedent to the obligations of such underwriters under such underwriting
agreement be conditions precedent to the obligations of such Holders.

     (b)  No Holder may participate in any underwritten registration under
Section 4 unless such Holder (i) agrees to sell such Holder's Registrable
Securities on the basis provided in any underwriting arrangement approved by the
Company and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, securities escrow agreements, underwriting agreements and other
documents required under the terms of such underwriting, and furnishes to the
Company such information as the Company may reasonably request in writing for
inclusion in the Registration Statement (and the prospectus included therein);
provided, however, that 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 and such
Holder's intended method of distribution and any other representation required
by law.

     (c)  (i) Each Holder, whether or not such Holder participates in an
underwritten registration, agrees, if so required by the managing underwriter,
not to effect any public sale or distribution of such Holder's Registrable
Securities or sales of such shares pursuant to Rule 144, during the seven days
prior to and the ninety (90) days after any firm commitment underwritten
registration pursuant to Section 4 has become effective or, if the managing
underwriter advises the Company in writing that, in its opinion, no such public
sale or distribution should be effected for a specified period longer than
ninety (90) days after such underwritten registration in order to complete the
sale and distribution of securities included in such registration and the
Company gives notice to such Holder of such advice, during a reasonably longer
period after such underwritten registration but in no event longer than one
hundred eighty (180) days, except as part of such underwritten registration.

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          (ii) The Company agrees, if so required by the managing underwriter,
(x) not to effect any public sale or distribution of its equity securities or
securities convertible into or exchangeable or exercisable for any of such
securities during the seven days prior to and the ninety (90) days after any
firm commitment underwritten registration pursuant to Section 4 has become
effective, except as part of such underwritten registration and except pursuant
to registrations on Form S-4 and Form S-8 or any successor or similar forms
thereto, and (y) to use its best efforts to cause each holder of its equity
securities or any securities convertible into or exchangeable or exercisable for
any of such securities, in each case purchased from the Company at any time
after the date hereof (other than in a public offering), to agree not to effect
any such public sale or distribution of such securities during such period or,
in either case, if the managing underwriter advises the Company in writing that
in its opinion no such public sale or distribution should be effected for a
specified period longer than ninety (90) days after such underwritten
registration in order to complete the sale and distribution of securities
included in such registration, during a reasonably longer period after such
underwritten registration but in no event longer than one hundred eighty (180)
days, except as part of such underwritten registration.

     Section 6.  Registration Expenses.

     The Company will pay all reasonable registration expenses in connection
with any registration pursuant to Section 3 or 4 of this Agreement, including
without limitation all registration and filing fees, fees with respect to
filings required to be made with the National Association of Securities Dealers,
fees and expenses of compliance by the Company with securities or blue sky laws,
printing expenses, and fees and expenses of counsel for the Company and of one
special counsel for all of the Holders of each of (A) the Exchange Notes, (B)
the Common Stock and Debt Exchange Warrants and (C) the Convertible Subordinated
Debt whose securities are proposed to be registered and of all independent
public accountants of the Company (including the expenses of any "comfort"
letters or update thereof required by or incident to the foregoing) in
connection with the Required Registration or the exercise of rights pursuant to
Section 4, it being agreed that the following expenses shall not be borne by the
Company: underwriting discounts and commissions, underwriting expenses and
transfer taxes, if any (other than discounts, commissions, expenses and transfer
taxes relating to securities offered and sold by the Company) and the cost of
liability insurance (except to the extent carried by the Company on its own
behalf).

     The cost of any special audit required by the Securities Act or the rules
and regulations of the SEC thereunder as a result of the Company's obligation to
maintain a Registration Statement current for more than 90 days pursuant to
Section 8 shall be borne by the Company. In addition, the Company shall pay all
of the Investors' reasonable costs (including legal fees) incurred in connection
with the successful enforcement of the Investor's rights hereunder.

     Section 7.  Registration Procedures and Related Obligations.

     Whenever the Company seeks to effect the registration of any shares of
Registrable Securities under the Securities Act as provided in Sections 3 and 4,
the Company agrees it shall as expeditiously as possible, subject to the terms
and conditions of such sections (including without limitation the Company's
right to terminate or delay a registration pursuant to Sections 3 and 4):

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     (a)  prepare and file with the SEC the requisite Registration Statement to
effect such registration, use its best efforts to cause such Registration
Statement to become effective and promptly notify each Holder of securities
covered by such Registration Statement and any managing underwriter of the
effectiveness thereof;

     (b)  prepare and file with the SEC such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may be
necessary to keep such Registration Statement effective, notify each Holder of
securities covered by such Registration Statement and any managing underwriter
as promptly as practicable of any request by the SEC for amendments or
supplements to such Registration Statement or related prospectus or for
additional information and comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such Registration
Statement until in the case of any Registration Statement other than the Shelf
Registration Statement, the earlier of such time as all of such securities have
been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such Registration Statement, 90 days
subsequent to the effective date of such registration; provided that if less
than all the securities covered by the Registration Statement are withdrawn from
registration after the expiration of such period, the securities so withdrawn
shall be allocated pro rata among the Holders thereof on the basis of the
respective numbers of Registrable Securities held by them included in such
registration;

     (c)  furnish to each seller of shares covered by such Registration
Statement such number of conformed copies of such Registration Statement and of
each such amendment and supplement thereto (in each case including all
exhibits), such number of copies of the prospectus contained in such
Registration Statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 under the Securities
Act, in conformity with the requirements of the Securities Act, and such other
documents as such seller or such Holder may reasonably request;

     (d)  use its best efforts to register or qualify all shares covered by such
Registration Statement under such other securities or blue sky laws of such
jurisdictions as each seller thereof shall reasonably request, to keep such
registration or qualification in effect for so long as such Registration
Statement remains in effect, and take any other action which may be reasonably
necessary or advisable to enable such seller to consummate the disposition in
such jurisdictions of the securities owned by such seller, except that the
Company shall not for any such purpose be required to (i) qualify generally to
do business as a foreign corporation in any jurisdiction wherein it would not
but for the requirements of this section (d) be obligated to be so qualified,
(ii) subject itself to taxation in any such jurisdiction or (iii) consent to
general service of process in any such jurisdiction;

     (e)  use its best efforts to cause all shares covered by such Registration
Statement to be registered with or approved by such other governmental agencies
or authorities as may be necessary to enable the seller or sellers thereof to
consummate the disposition of such shares;

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     (f)  enter into customary agreements (including, in the case of an
Underwritten Offering, an underwriting agreement in customary form) and take all
other action in connection therewith in order to expedite or facilitate the
distribution of the Registrable Securities included in such Registration
Statement, and, in the case of an Underwritten Offering, make representations
and warranties to the Holders of Registrable Securities covered by such
Registration Statement and to the underwriters in such form and scope as are
customarily made by issuers to underwriters in primary underwritten offerings
and confirm the same to the extent customary if and when requested;

     (g)  the Company shall make available for inspection, by (i) any Holder,
(ii) any underwriter participating in any disposition pursuant to a Registration
Statement, (iii) one firm of attorneys and one firm of accountants or other
agents retained by the Holders, and (iv) one firm of attorneys retained by all
such underwriters (collectively, the "Inspectors"), all pertinent financial and
other records, and pertinent corporate documents and properties of the Company
(collectively, the "Records"), as shall be reasonably deemed necessary by each
Inspector to exercise its due diligence responsibility, and cause the Company's
officers, directors and employees to supply all information which any Inspector
may reasonably request for purposes of such due diligence; provided, however,
that each Inspector shall hold in strict confidence and shall not make any
disclosure (except to an Holder) or use of any Record or other information which
the Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, unless (a) the disclosure of such
Records is necessary to avoid or correct a misstatement or omission in any
Registration Statement or is otherwise required under the Securities Act, (b)
the release of such Records is ordered pursuant to a final, non-appealable
subpoena or order from a court or government body of competent jurisdiction, or
(c) the information in such Records has been made generally available to the
public other than by disclosure in violation of this or any other agreement.
Each Holder agrees that it shall, upon learning that disclosure of such Records
is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company, at
its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, the Records deemed confidential. Nothing herein
(or in any other confidentiality agreement between the Company and any Holder)
shall be deemed to limit the Holders' ability to sell Registrable Securities in
a manner which is otherwise consistent with applicable laws and regulations;

     (h)  use its best efforts to furnish to each Holder of Registrable
Securities covered by such Registration Statement a signed counterpart,
addressed to such Holder (and, in the case of an Underwritten Offering by the
Company, the underwriters), of

          (i)  an opinion of counsel for the Company, dated the effective date
     of such Registration Statement (and, in case of an Underwritten Offering by
     the Company, dated the date of each closing under the underwriting
     agreement), reasonably satisfactory in form and substance to such Holder,
     and

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          (ii)  a "comfort" letter, dated the effective date of such
     Registration Statement (and, in the case of an Underwritten Offering, dated
     the date of each closing under the underwriting agreement), signed by the
     independent public accountants who have certified the Company's financial
     statements included in such Registration Statement, covering substantially
     the same matters with respect to such Registration Statement (and the
     prospectus included therein) and, in the case of the accountants' letter,
     with respect to events subsequent to the date of such financial Statements,
     as are customarily covered in accountants' letters delivered to
     underwriters in underwritten public offerings of securities and such other
     financial matters as such Holder (or the underwriters) may reasonably
     request;

     (i)  as promptly as practicable after becoming aware of such event, the
Company shall notify each Holder in writing of the happening of any event as a
result of which the prospectus included in a Registration Statement, as then in
effect, includes an untrue statement of a material fact or omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and promptly prepare a supplement or amendment to the Registration
Statement to correct such untrue statement or omission, and deliver ten copies
of such supplement or amendment to each Holder (or such other number of copies
as such Holder may reasonably request). The Company shall also promptly notify
each Holder in writing (i) when a prospectus or any prospectus supplement or
post-effective amendment has been filed, and when a Registration Statement or
any post-effective amendment has become effective, (ii) of any request by the
SEC for amendments or supplements to a Registration Statement or related
prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective amendment to a Registration Statement would
be appropriate;

     (j)  the Company shall use its best efforts to prevent the issuance of any
stop order or other suspension of effectiveness of a Registration Statement, or
the suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction and, if such an order or suspension is issued, to
obtain the withdrawal of such order or suspension at the earliest possible
moment and to notify each Holder who holds Registrable Securities being sold
(and, in the event of an underwritten offering, the managing underwriters) of
the issuance of such order and the resolution thereof or its receipt of actual
notice of the initiation or threat of any proceeding for such purpose;

     (k)  (i) otherwise use its best efforts to comply with all applicable rules
and regulations of the SEC, (ii) make available to its security holders, as soon
as reasonably practicable, an earnings statement covering the period of at least
twelve months, but not more than eighteen months, beginning with the first full
calendar month after the effective date of such Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act, and (iii) not file any Registration Statement or prospectus or
amendment or supplement to such Registration Statement or prospectus to which
any such selling Holder shall have reasonably objected on the grounds that such
amendment or supplement does not comply in all material respects

                                      -11-
<PAGE>

         with the requirements of the Securities Act, having been furnished with
         a copy thereof at least two Business Days prior to the filing thereof;

               (l)  provide a transfer agent and registrar for all shares
         covered by such Registration Statement not later than the effective
         date of such Registration Statement;

               (m)  use its best efforts to list all shares of Common Stock
         covered by such Registration Statement on any securities exchange or
         national market system on which the Common Stock is then listed;

               (n)  the Company may require each Holder of Registrable
         Securities as to which any registration is being effected to furnish
         the Company with such information and undertakings regarding such
         Holder and the distribution of such securities as the Company may from
         time to time reasonably request in writing. Any Holder who does not
         provide the information reasonably requested by the Company for such
         purpose as promptly as practicable after receipt of such request, but
         in no event later than 10 days thereafter, shall not be entitled to
         have its Registrable Securities included in such registration;

               (o)  each Holder of Registrable Securities covered by any
         Registration Statement agrees (i) that upon receipt of any notice from
         the Company of the happening of any event of the kind described in
         paragraph (i) of this Section 7, such Holder will forthwith discontinue
         such Holder's disposition of Registrable Securities pursuant to the
         Registration Statement relating to such Registrable Securities until
         such Holder's receipt of the copies of the supplemented or amended
         prospectus contemplated by paragraph (i) of this Section 7 and, if so
         directed by the Company, will deliver to the Company (at the Company's
         expense) all copies, other than permanent file copies (which shall be
         conspicuously marked as such), then in such Holder's possession of the
         prospectus relating to such Registrable Securities current at the time
         of receipt of such notice and (ii) that it will immediately notify the
         Company, at any time when a prospectus relating to the registration of
         such shares is required to be delivered under the Securities Act, of
         the happening of any event as a result of which information previously
         furnished by such Holder to the Company in writing for inclusion in
         such prospectus contains 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 the light of
         the circumstances under which they were made. In the event the Company
         or any such Holder shall give any such notice, the period referred to
         in paragraph (b) of this Section 7 shall be extended by a number of
         days equal to the number of days during the period from and including
         the giving of notice pursuant to paragraph (i) of this Section 7 to and
         including the date when each seller of any securities covered by such
         Registration Statement shall have received the copies of the
         supplemented or amended prospectus contemplated by paragraph (i) of
         this Section 7;

               (p)  the Company shall furnish to each Holder whose Registrable
         Securities are included in the Registration Statement(s) and such
         Holder's legal counsel without charge (i) promptly after the same is
         prepared and filed with the SEC at least one copy of the Registration
         Statement and any amendment thereto, including financial statements and

                                      -12-
<PAGE>

         schedules, all documents incorporated therein by reference and all
         exhibits, the prospectus(es) included in such Registration Statement(s)
         (including each preliminary prospectus) and, with regard to the
         Registration Statement, any correspondence by or on behalf of the
         Company to the SEC or the staff of the SEC and any correspondence from
         the SEC or the staff of the SEC to the Company;

               (q)  the Company shall use its best efforts to (i) register and
         qualify the Registrable Securities covered by the Registration
         Statement(s) under such securities or "blue sky" laws of such
         jurisdictions in the United States as any Holder reasonably requests,
         (ii) prepare and file in those jurisdictions, such amendments
         (including post-effective amendments) and supplements to such
         registrations and qualifications as may be necessary to maintain the
         effectiveness thereof during the Registration Period, (iii) take such
         other actions as may be necessary to maintain such registrations and
         qualifications in effect at all times during the Registration Period,
         and (iv) take all other actions reasonably necessary or advisable to
         qualify the Registrable Securities for sale in such jurisdictions;
         provided, however, that the Company shall not be required in connection
         therewith or as a condition thereto to (x) qualify to do business in
         any jurisdiction where it would not otherwise be required to qualify
         but for this Section 3(d), (y) subject itself to general taxation in
         any such jurisdiction, or (z) file a general consent to service of
         process in any such jurisdiction. The Company shall promptly notify
         each Holder who holds Registrable Securities of the receipt by the
         Company of any notification with respect to the suspension of the
         registration or qualification of any of the Registrable Securities for
         sale under the securities or "blue sky" laws of any jurisdiction in the
         United States or its receipt of actual notice of the initiation or
         threatening of any proceeding for such purpose;

               (r)  the Company shall permit each Holder and a single firm of
         counsel designated as selling stockholders' counsel by the Holders who
         hold a majority of the category of Registrable Securities being sold,
         to review and comment upon the Registration Statement(s) and all
         amendments and supplements thereto at least four business days prior to
         their filing with the SEC, and not file any document in a form to which
         such counsel reasonably objects. The Company shall not submit a request
         for acceleration of the effectiveness of a Registration Statement(s) or
         any amendment or supplement thereto without the prior approval of such
         counsel, which consent shall not be unreasonably withheld;

               (s)  the Company shall hold in confidence and not make any
         disclosure of information concerning a Holder provided to the Company
         unless (i) disclosure of such information is necessary to comply with
         federal or state securities laws, (ii) the disclosure of such
         information is necessary to avoid or correct a misstatement or omission
         in any Registration Statement, (iii) the release of such information is
         ordered pursuant to a subpoena or other final, non-appealable order
         from a court or governmental body of competent jurisdiction, or (iv)
         such information has been made generally available to the public other
         than by disclosure in violation of this or any other agreement. The
         Company agrees that it shall, upon learning that disclosure of such
         information concerning a Holder is sought in or by a court or
         governmental body of competent jurisdiction or through other means,
         give prompt written notice to such Holder and allow such Holder, at the

                                      -13-
<PAGE>

         Holder's expense, to undertake appropriate action to prevent disclosure
         of, or to obtain a protective order for, such information;

               (t)  the Company shall take all other reasonable actions
         necessary to expedite and facilitate disposition by the Holders of
         Registrable Securities pursuant to a Registration Statement; and

               (u)  if requested by the managing underwriters or a Holder, the
         Company shall immediately incorporate in a prospectus supplement or
         post-effective amendment such information as the managing underwriters
         and the Holders agree should be included therein relating to the sale
         and distribution of Registrable Securities, including, without
         limitation, information with respect to the number of Registrable
         Securities being sold to such underwriters, the purchase price being
         paid therefore by such underwriters and with respect to any other terms
         of the underwritten (or best efforts underwritten) offering of the
         Registrable Securities to be sold in such offering; make all required
         filings of such prospectus supplement or post-effective amendment as
         soon as notified of the matters to be incorporated in such prospectus
         supplement or post-effective amendment; and supplement or make
         amendments to any Registration Statement if requested by a shareholder
         or any underwriter of such Registrable Securities.

         Section 8. Indemnification.

         (a)   In the event of any registration of any Holder's Registrable
Securities under the Securities Act pursuant to this Agreement, the Company
shall indemnify and hold harmless each such Holder (a "Selling Holder"), its
directors, each underwriter and each controlling Person of any Selling Holder,
if any, against any losses, claims, damages or liabilities, joint or several (or
actions in respect thereof), including attorneys' fees and costs, to which such
Holder, underwriter or controlling Person may be subject under the Securities
Act, under any other statute or at common law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon (i) any untrue statement (or alleged untrue statement) of any material fact
contained in any Registration Statement under which such securities were
registered under the Securities Act, any preliminary prospectus or final
prospectus contained therein, any summary prospectus issued in connection with
any securities being registered, any other document used to sell the securities
(including an illegal prospectus) (collectively, the "Selling Documents"), or
any amendment or supplement thereto (an "Amended Selling Document"), or (ii) any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein (in light of the
circumstances in which they were made with respect to any prospectus) not
misleading, and shall reimburse each such Selling Holder, its directors,
underwriter or controlling Person for any legal or other expenses reasonably
incurred by such Selling Holder, its directors, underwriter or controlling
Person in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Company shall not be
liable to any Selling Holder, its directors, underwriter or controlling Person
in any such event to the extent that any loss, claim, damage or liability arises
out of or is based upon any untrue statement or omission made in such
Registration Statement, Selling Document, Amended Selling Document, or any other
document, in reliance upon and in strict conformity with written information
furnished to the Company by such Selling Holder, its directors, underwriter or
controlling Person, respectively, specifically for use therein; and

                                      -14-
<PAGE>

provided, further, that the Company shall not be liable under this paragraph (a)
with respect to any misstatement or omission or alleged misstatement or omission
in any Selling Document to the extent that any such loss, claim, damage or
liability results from the fact that the Selling Holder, underwriter or
controlling Person sold securities to a Person to whom there was not sent or
given, at or prior to the written confirmation of such sale, a copy of any
Amended Selling Document if the Company had previously furnished copies thereof
to such Selling Holder, underwriter or controlling Person and if the
misstatement or omission or alleged misstatement or omission was corrected in
the Amended Selling Document. The indemnity provided for herein shall remain in
full force and effect regardless of any investigation made by or on behalf of
such Selling Holder, its directors, underwriter or controlling Person.

         (b)   In the event of any registration of any of the Company's
securities or any Registrable Securities under the Securities Act, each Selling
Holder shall furnish to the Company in writing such information and affidavits
as the Company reasonably requests for use in connection with such Registration
Statement and agrees, severally and not jointly, to indemnify and hold harmless
the Company, its directors, each underwriter and each controlling Person of the
Company, if any, against any losses, claims, damages or liabilities, joint or
several (or actions in respect thereof), to which the Company, its directors,
such Selling Holder, underwriter or controlling Person may be subject under the
Securities Act or under any other statute or at common law, insofar as such
losses, claims, damages or liabilities, joint or several (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement (or alleged
untrue statement) of any material fact contained in any Registration Statement
under which such securities were registered under the Securities Act, any
Selling Document or any Amended Selling Document, or (ii) any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein (in light of the circumstances in
which they were made with respect to any prospectus) not misleading, and shall
reimburse the Company, its directors, such underwriter and controlling Person
for any legal or other expenses reasonably incurred by such Persons in
connection with investigating or defending any such loss, claim, damage,
liability or action; in each case, to the extent, and only to the extent, that
each untrue statement or omission (or alleged untrue statement or omission) is
made in reliance upon and in strict conformity with written information
furnished to the Company by such Selling Holder.

         (c)   If the indemnification provided for in paragraph (a) or (b) above
is unavailable to an indemnified party in accordance with its terms in respect
of any losses, claims, damages or liabilities referred to therein, then the
obligations of each indemnitor thereunder shall be limited to such 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 such indemnitor on the one hand and of the indemnified parties on the
other hand in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of each indemnitor and of the indemnified
parties shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by such
indemnitor, or by the indemnified parities, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

                                      -15-
<PAGE>

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8 were determined by pro rata allocation
or by any other method of allocation which does not take into account the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities or actions in respect thereof referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expense reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 8, no Selling
Holder shall be required to contribute any amount in excess of the amount by
which the total price at which the Registrable Securities sold by it exceeds the
amount of any damages which such person has otherwise been required to pay and
has actually paid by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of a fraudulent misrepresentation
(within the meaning of Section 10(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

         (d)   Promptly after receipt by an indemnified party of notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against an indemnitor under paragraph (a) or (b) above, as
the case may be, notify the indemnitor in writing of the commencement thereof;
but the omission so to notify the indemnitor shall not relieve it from any
liability which it may have to any indemnified party under such subsection
unless the failure to provide such notice results in the forfeiture by the
indemnitor of substantial rights or defenses. In case any such action shall be
brought against any indemnified party, and it shall notify the indemnitor of the
commencement thereof, the indemnitor shall be entitled to participate therein
and, to the extent that it shall wish, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party; provided, however,
that if the defendants in any such action include both the indemnified party and
the indemnitor and the indemnified party shall have reasonably concluded that
there may be legal defenses available to it and/or other indemnified parties
which are in addition to or in conflict with those available to the indemnitor,
the indemnified party or parties shall have the right to select separate counsel
to assert such legal defenses (in which case the indemnitor shall not have the
right to direct the defense of such action on behalf of the indemnified party or
parties). Upon the permitted assumption by the indemnitor of the defense of such
action, and approval by the indemnified party of counsel, the indemnitor shall
not be liable to such indemnified party under this Section 8 for any legal or
other expenses subsequently incurred by such indemnified party in connection
with the defense thereof (other than reasonable costs of investigation) unless
(i) the indemnified party shall have employed separate counsel in connection
with the assertion of legal defenses in accordance with the proviso to the next
preceding sentence, (ii) the indemnitor shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time, (iii) the indemnitor and its counsel do not actively and
vigorously pursue the defense of such action, or (iv) the indemnitor has
authorized the employment of counsel for the indemnified party at the expense of
the indemnitor. The indemnitor shall not be liable for any settlement of any
action or proceeding effected without its written consent, which consent shall
not be unreasonably withheld.

                                      -16-
<PAGE>

         Section 9.  Termination of Rights.

         Provided the Company has in all respects performed its obligations
hereunder, the rights of any particular Holder under this Agreement shall
terminate at 5:00 p.m., Pacific Time, on the date five (5) years after the date
of this Agreement (and, if not so performed, such termination date shall be
extended until 5:00 p.m. Pacific Time on the 120/th/ day following such
performance by the Company of its obligations hereunder), provided that the
provisions of Section 8 hereof shall, in any event, survive any termination of
this Agreement.

         Section 10. Calculation of Shares.

         For purposes of calculating the number of Registrable Securities held
by a Holder (including without limitation pursuant to Sections 3 and 4 hereof),
Debt Exchange Warrants and Convertible Subordinated Debt shall be deemed to
count as the number of shares of Common Stock which may be acquired upon
exercise or conversion, as applicable, thereof.

         Section 11. Reports Under the 1934 Act.

         With a view to making available to the Holders of Registrable
Securities the benefits of Rule 144 promulgated under the Securities Act or any
other similar rule or regulation of the SEC that may at any time permit the
Holders to sell securities of the Company to the public without registration
("Rule 144"), the Company agrees to:

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

         (b)   file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the 1934 Act so
long as the Company remains subject to such requirements (it being understood
that nothing herein shall limit the Company's obligations under Section 4(c) of
the Securities Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

         (c)   furnish to each Holder so long as such Holder owns Registrable
Securities, promptly upon request, (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144, the Securities Act
and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of
the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the
Holders to sell such securities pursuant to Rule 144 without registration.

         Section 12. Assignment of Registration Rights.

         The rights to have the Company register Registrable Securities pursuant
to this Agreement shall be assignable by the Holders to any Person (a
"Transferee") of all or any portion of Registrable Securities if: (i) the Holder
agrees in writing with the Transferee to assign such rights, and a copy of such
agreement is furnished to the Company within a reasonable time after such
assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
Transferee, and (b) the securities with respect to which such registration
rights are being transferred or assigned; (iii)

                                      -17-
<PAGE>

immediately following such transfer or assignment the further disposition of
such securities by the Transferee is restricted under the Securities Act and
applicable state securities laws; (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence the
Transferee agrees in writing with the Company to be bound by all of the
provisions contained herein; (v) such transfer shall have been made in
accordance with the applicable requirements of the Securities Purchase
Agreement; (vi) such Transferee shall be an "accredited investor" as that term
is defined in Rule 501 of Regulation D promulgated under the Securities Act; and
(vii) in the event the assignment occurs subsequent to the date of effectiveness
of the Registration Statement required to be filed pursuant to Section 2(a), the
Transferee agrees to pay all reasonable expenses of amending or supplementing
such Registration Statement to reflect such assignment.

         Section 13. Miscellaneous.

         (a)   Governing Law. This Agreement shall be governed by and construed
under the internal substantive laws of the State of California.

         (b)   Successors and Assigns. The provisions hereof shall inure to the
benefit of, and be binding upon, the parties and their respective successors,
assigns, heirs, executors and administrators. The rights and obligations of any
Investor hereunder may be assigned by such Investor to any Person acquiring
Registrable Securities from the Investor contemporaneously with such assignment,
provided that the rights so assumed shall apply only to the Registrable
Securities so acquired. The rights and obligations of the Company hereunder may
not be assigned by it without the prior written consent of the Investors.

         (c)   Entire Agreement. This Agreement, the Recapitalization Agreement
and the Related Agreements (as defined in the Recapitalization Agreement)
constitute the full and entire understanding and agreement among the parties
with regard to the subject matter hereof and no party shall be liable or bound
to any other party in any manner by any representations, warranties, covenants
or agreements except as specifically bet forth herein or therein. Nothing in
this Agreement, express or implied, is intended to confer upon any party, other
than the parties hereto and their respective successors and assigns, any rights,
remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided herein.

         (d)   Separability. Any invalidity, illegality or limitation of the
enforceability of any one or more of the provisions of this Agreement, or any
part thereof, shall in no way affect or impair the validity, legality or
enforceability of the other provisions of this Agreement. In case any provision
of this Agreement shall be invalid, illegal or unenforceable, it shall, to the
extent practicable, be modified so as to make it valid, legal and enforceable
and to retain as nearly as practicable the intent of the parties, and the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

                                      -18-
<PAGE>

         (e)   Amendment and Waiver. Any provision of this Agreement may be
amended and the observance of any provision of this Agreement may be waived
(either generally or in a particular instance, either retroactively or
prospectively, and either for a specified period of time or indefinitely), with
the written consent of the Company and the Holders of not less than two thirds
(2/3) of each category of Registrable Securities affected thereby; provided,
however, that no such amendment or waiver shall reduce the aforesaid percentage
of Registrable Securities the Holders of which are required to consent to any
waiver or supplemental agreement without the consent of the Holders of all
outstanding Registrable Securities. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon the Company and each Holder
under this Agreement. Upon the effectuation of each such amendment or waiver,
the Company shall promptly give written notice thereof to the Holders who have
not previously consented thereto in writing.

         (f)   Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to any Holder or any subsequent Holder of any
Registrable Securities upon any breach, default or noncompliance of the Company
under this Agreement shall impair any such right, power or remedy, nor shall it
be construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of any similar breach, default or noncompliance
thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character on the Holders' part of any breach, default or
noncompliance under this Agreement or any waiver on the Holders' part of any
provisions or conditions of this Agreement must be in writing and shall be
effective only to the extent specifically set forth in such writing, and that
all remedies afforded to the Holders under this Agreement shall be cumulative
and not alternative.

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

               (i)  if to any Holder, initially at the address set forth below
               its name on Exhibit A to the Recapitalization Agreement, and
               thereafter at such other address, notice of which is given in
               accordance with this Section 13(g); and

               (ii) if to the Company, initially at 23550 Hawthorne Boulevard,
               Building 1, Suite 110, Torrance, California 90505, Attention:
               President, and thereafter at such other address notice of which
               is given in accordance with this Section 13(g).

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being sent by certified mail, return receipt requested, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

         (h)   Titles and Subtitles. The titles of the sections and subsections
of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

                                      -19-
<PAGE>

         (i)   Counterparts. 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 instrument.

                                      -20-
<PAGE>

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

                                             IMPERIAL CREDIT INDUSTRIES, INC.

                                             By: /s/ H. Wayne Snavely
                                                 -------------------------------
                                                 Name: H. Wayne Snavely
                                                 Title: Chairman, President and
                                                        Chief Executive Officer

                                      -21-
<PAGE>

                                             IMPERIAL HOLDINGS GROUP, LLC:

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                             INVESTOR:

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                             INVESTOR:

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                             INVESTOR:

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                             INVESTOR:

                                             By: _______________________________
                                                 Name:
                                                 Title:

                                      -22-<PAGE>

                                                                    Exhibit 4.12

                           MIKOHN GAMING CORPORATION

               $105,000,000 11.875% Senior Secured Notes due 2008

                         REGISTRATION RIGHTS AGREEMENT

                                                                 August 22, 2001

JEFFERIES & COMPANY, INC.
CIBC WORLD MARKETS CORP.

c/o Jefferies & Company, Inc.
11100 Santa Monica Boulevard
10th Floor
Los Angeles, California 90025

Ladies and Gentlemen:

   Mikohn Gaming Corporation, a Nevada corporation (the "Company"), is issuing
and selling to Jefferies & Company, Inc. and CIBC World Markets Corp. (the
"Initial Purchasers"), upon the terms set forth in a purchase agreement, dated
as of August 15, 2001 (the "Purchase Agreement"), 105,000 units (the "Units"),
each consisting of (i) $1,000 aggregate principal amount at maturity of the
Company's 11.875% Senior Secured Notes due 2008, Series A, including the
Guarantees (as defined below) endorsed thereon (the "Notes"), and (ii) one
warrant (each, a "Warrant" and, collectively, the "Warrants") initially
exercisable to purchase four shares of the Company's common stock, par value
$.10 per share (the "Common Stock"), subject to the terms and conditions set
forth therein. As an inducement to the Initial Purchasers to enter into the
Purchase Agreement, the Company and each of the guarantors (the "Guarantors")
signatory to the Purchase Agreement agree with the Initial Purchasers, for the
benefit of the holders of the Securities (defined below) (including, without
limitation, the Initial Purchasers), as follows:

   1. Definitions.

   Capitalized terms used herein without definition shall have their respective
meanings set forth in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:

     Advice: See Section 6.

     Agreement: This Registration Rights Agreement.

     Applicable Period: See Section 2(f).

     Business Day: Any day, excluding Saturday, Sunday and any day which is
  in the City of New York a legal holiday or a day upon which banking
  institutions in the City of New York are required or authorized by law or
  other governmental action to close.

     Closing Date: August 22, 2001.

     DTC: See Section 6(i).

     Effectiveness Date: The 120th day following the Closing Date.

     Effectiveness Period: See Section 3(a).

     Event: See Section 4(a).

     Event Date: See Section 4(a).

                                       1
<PAGE>

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the
  rules and regulations of the SEC promulgated thereunder.

     Exchange Offer: See Section 2(a).

     Exchange Offer Registration Statement: See Section 2(a).

     Exchange Securities: 11.875% Senior Secured Notes due 2008, Series B, of
  the Company, including the Guarantees endorsed thereon, identical in all
  respects to the Notes, except for references to series and restrictive
  legends.

     Filing Date: The 60th day following the Closing Date.

     Guarantees: The full and unconditional guarantee, on a senior secured
  basis by the Guarantors, as to payment of principal, interest, premium, if
  any, and Liquidated Damages, if any, with respect to the Notes.

     Holder: Each holder of Registrable Securities.

     Indenture: The Indenture, dated as of the date hereof, by and among the
  Company, the Guarantors and Firstar Bank, N.A., as trustee, pursuant to
  which the Notes and Guarantees are being issued, as amended or supplemented
  from time to time, in accordance with the terms thereof.

     Initial Shelf Registration: See Section 3(a).

     Liquidated Damages: See Section 4(a).

     Losses: See Section 8(a).

     NASD: The National Association of Securities Dealers, Inc.

     Participating Broker-Dealer: See Section 2(f).

     Person: Any corporation, individual, limited liability company, joint
  stock company, joint venture, partnership, limited liability partnership,
  unincorporated association, governmental regulatory entity, country, state
  or political subdivision thereof, trust, municipality or other entity.

     Private Exchange: See Section 2(g).

     Private Exchange Securities: See Section 2(g).

     Prospectus: The prospectus included in any Registration Statement
  (including, without limitation, a prospectus that discloses information
  previously omitted from a prospectus filed as part of an effective
  registration statement in reliance upon Rule 430A promulgated under the
  Securities Act), as amended or supplemented by any prospectus supplement,
  with respect to the terms of the offering of any portion of the Securities
  covered by such Registration Statement, and all other amendments and
  supplements to the Prospectus, including post-effective amendments, and all
  material incorporated by reference or deemed to be incorporated by
  reference in such Prospectus.

     Registrable Securities: (i) Notes, (ii) Private Exchange Securities and
  (iii) Exchange Securities that may not be sold without restriction under
  federal or state securities law.

     Registration Statement: Any registration statement of the Company and
  the Guarantors that covers any of the Securities pursuant to the provisions
  of this Agreement, including the Prospectus, amendments and supplements to
  such registration statement, including post-effective amendments, all
  exhibits, and all material incorporated by reference or deemed to be
  incorporated by reference in such registration statement.

     Rule 144: Rule 144 under the Securities Act, as such rule may be amended
  from time to time, or any similar rule (other than Rule 144A) or regulation
  hereafter adopted by the SEC.

                                       2
<PAGE>

     Rule 144A: Rule 144A under the Securities Act, as such rule may be
  amended from time to time, or any similar rule (other than Rule 144) or
  regulation hereafter adopted by the SEC.

     Rule 415: Rule 415 under the Securities Act, as such rule may be amended
  from time to time, or any similar rule or regulation hereafter adopted by
  the SEC.

     SEC: The Securities and Exchange Commission.

     Securities: The Notes, the Guarantees, the Private Exchange Securities
  and the Exchange Securities, collectively.

     Securities Act: The Securities Act of 1933, as amended, and the rules
  and regulations of the SEC promulgated thereunder.

     Shelf Notice: See Section 2(i).

     Shelf Registration: The Initial Shelf Registration and any Subsequent
  Shelf Registration.

     Special Counsel: Counsel chosen by the holders of a majority in
  aggregate principal amount of Securities.

     Subsequent Shelf Registration: See Section 3(b).

     TIA: The Trust Indenture Act of 1939, as amended.

     Trustee: The trustee under the Indenture and, if any, the trustee under
  any indenture governing the Exchange Securities or the Private Exchange
  Securities.

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

   2. Exchange Offer.

     (a) The Company and the Guarantors shall:

       (i) prepare and file with the SEC promptly after the date hereof,
    but in no event later than the Filing Date, a registration statement
    (the "Exchange Offer Registration Statement") on an appropriate form
    under the Securities Act with respect to a proposed offer (the
    "Exchange Offer") to the Holders to issue and deliver to such Holders,
    in exchange for the Notes, a like aggregate principal amount of
    Exchange Securities,

       (ii) use their respective reasonable best efforts to cause the
    Exchange Offer Registration Statement to become effective as promptly
    as practicable after the filing thereof, but in no event later than the
    Effectiveness Date,

       (iii) keep the Exchange Offer Registration Statement effective until
    the consummation of the Exchange Offer pursuant to its terms, and

       (iv) unless the Exchange Offer would not be permitted by a policy of
    the SEC, commence the Exchange Offer and use their respective
    reasonable best efforts to, on the earliest practicable date after the
    Exchange Offer Registration Statement is declared effective, but in no
    event later than 30 days thereafter, consummate the Exchange Offer and
    issue Exchange Securities in exchange for all Notes tendered prior
    thereto in the Exchange Offer.

     The Exchange Offer shall not be subject to any conditions, other than
  that the Exchange Offer does not violate applicable law or any applicable
  interpretation of the staff of the SEC.

     (b) The Exchange Securities shall be issued under, and entitled to the
  benefits of, the Indenture or a trust indenture that is identical to the
  Indenture (other than such changes as are necessary to comply with any
  requirements of the SEC to effect or maintain the qualification thereof
  under the TIA).

                                       3
<PAGE>

     (c) In connection with the Exchange Offer, the Company and the
  Guarantors shall:

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

       (ii) keep the Exchange Offer open for not less than 20 Business Days
    after the date notice thereof is mailed to the Holders (or longer if
    required by applicable law);

       (iii) utilize the services of a depositary for the Exchange Offer
    with an address in the Borough of Manhattan, The City of New York;

       (iv) permit Holders to withdraw tendered Notes at any time prior to
    the close of business, New York time, on the last Business Day on which
    the Exchange Offer shall remain open; and

       (v) otherwise comply with all laws applicable to the Exchange Offer.

     (d) As soon as practicable after the close of the Exchange Offer, the
  Company and the Guarantors shall:

       (i) accept for exchange all Notes validly tendered and not validly
    withdrawn pursuant to the Exchange Offer;

       (ii) deliver to the Trustee for cancellation all Notes so accepted
    for exchange; and

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

     (e) Interest on each Exchange Security and Private Exchange Security
  will accrue from the last interest payment date on which interest was paid
  on the Notes surrendered in exchange therefor or, if no interest has been
  paid on the Notes, from the date of original issue of the Notes. Each
  Exchange Security and Private Exchange Security shall bear interest at the
  rate set forth thereon; provided, that interest with respect to the period
  prior to the issuance thereof shall accrue at the rate or rates borne by
  the Notes surrendered in exchange therefor from time to time during such
  period.

     (f) The Company and the Guarantors shall include within the Prospectus
  contained in the Exchange Offer Registration Statement a section entitled
  "Plan of Distribution," containing a summary statement of the positions
  taken or policies made by the staff of the SEC with respect to the
  potential "underwriter" status of any broker-dealer that is the beneficial
  owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange
  Securities received by such broker-dealer in the Exchange Offer (a
  "Participating Broker-Dealer"). Such "Plan of Distribution" section shall
  also allow the use of the Prospectus by all Persons subject to the
  prospectus delivery requirements of the Securities Act, including (without
  limitation) all Participating Brokers-Dealers, and include a statement
  describing the means by which Participating Broker-Dealers may resell the
  Exchange Securities. The Company and the Guarantors shall use their
  respective reasonable best efforts to keep the Exchange Offer Registration
  Statement effective and to amend and supplement the Prospectus to be
  lawfully delivered by all Persons subject to the prospectus delivery
  requirement of the Securities Act for such period of time as such Persons
  must comply with such requirements in order to resell the Exchange
  Securities (the "Applicable Period").

     (g) If, prior to consummation of the Exchange Offer, any of the Initial
  Purchasers hold any Notes acquired by it and having the status as an unsold
  allotment in the initial distribution of the Notes, the Company and the
  Guarantors shall, upon the request of such Initial Purchaser,
  simultaneously with the delivery of the Exchange Securities in the Exchange
  Offer, issue (pursuant to the same indenture as the Exchange Securities)
  and deliver to such Initial Purchaser, in exchange for the Notes held by
  such Initial Purchaser (the "Private Exchange"), a like principal amount of
  debt securities of the Company, including guarantees endorsed thereon, that
  are identical to the Exchange Securities (the "Private Exchange
  Securities"). The Private Exchange Securities shall bear the same CUSIP
  number as the Exchange Securities.

                                       4
<PAGE>

     (h) As a condition to its participation in the Exchange Offer, each
  Holder of Registrable Securities (including, without limitation, any Holder
  who is a broker-dealer) shall furnish, upon the request of the Company,
  prior to the consummation of the Exchange Offer, a written representation
  to the Company and the Guarantors (which may be contained in the letter of
  transmittal contemplated by the Exchange Offer Registration Statement) to
  the effect that, at the time of the consummation of the Exchange Offer: (i)
  it is not an affiliate of the Company, (ii) it is not engaged in, and does
  not intend to engage in, and has no arrangement or understanding with any
  person to participate in, a distribution of the Exchange Securities and
  (iii) it is acquiring the Exchange Securities in its ordinary course of
  business. As a condition to its participation in the Exchange Offer, each
  Holder using the Exchange Offer to participate in a distribution of the
  Exchange Securities shall acknowledge and agree that, if the resales are of
  Exchange Securities obtained by such Holder in exchange for Notes acquired
  directly from the Company or an affiliate thereof, it must comply with the
  registration and prospectus delivery requirements of the Securities Act in
  connection with a secondary resale transaction and that such a secondary
  resale transaction must be covered by an effective registration statement
  containing the selling security holder information required by Item 507 or
  508, as applicable, of Regulation S-K.

     (i) If (i) the Exchange Offer is not permitted by applicable law or SEC
  policy, (ii) subsequent to the consummation of the Private Exchange, the
  Initial Purchasers so request or (iii) if any Holder of Registrable
  Securities shall notify the Company within 20 Business Days following the
  consummation of the Exchange Offer that (A) such Holder was prohibited by
  law or SEC policy from participating in the Exchange Offer or (B) such
  Holder may not resell the Exchange Securities acquired by it in the
  Exchange Offer to the public without delivering a prospectus and the
  Prospectus contained in the Exchange Offer Registration Statement is not
  appropriate or available for such resales by such Holder or (C) such Holder
  is a broker-dealer and holds Notes acquired directly from the Company or
  any of its affiliates, then the Company and the Guarantors shall promptly
  deliver to the Holders (or in the case of an occurrence of any event
  described in clause (iii) hereof, to any such Holder) and the Trustee
  notice thereof (the "Shelf Notice") and shall as promptly as possible
  thereafter file an Initial Shelf Registration pursuant to Section 3.

   3. Shelf Registration.

   If a Shelf Notice is required to be delivered pursuant to Section 2(i)(i) or
2(i)(ii), then this Section 3 shall apply to all Registrable Securities. If a
Shelf Notice is required to be delivered pursuant to Section 2(i)(iii), then
this Section 3 shall apply solely with respect to the Holders described in any
of clauses (A) through (C) of Section 2(i)(iii).

     (a) Initial Shelf Registration. The Company and the Guarantors shall
  prepare and file with the SEC a Registration Statement for an offering to
  be made on a continuous basis pursuant to Rule 415 covering all of the
  Registrable Securities (the "Initial Shelf Registration"). If the Company
  and the Guarantors have not yet filed an Exchange Offer Registration
  Statement, the Company and the Guarantors shall file with the SEC the
  Initial Shelf Registration on or prior to the Filing Date. Otherwise, the
  Company and the Guarantors shall use their respective best efforts to file
  the Initial Shelf Registration within 30 days of the delivery of the Shelf
  Notice or as promptly as possible following the request of the Initial
  Purchasers. The Initial Shelf Registration shall be on Form S-1 or another
  appropriate form permitting registration of such Registrable Securities for
  resale by such Holders in the manner or manners designated by them
  (including, without limitation, one or more underwritten offerings);
  provided, that no Holder (other than the Initial Purchasers) shall be
  entitled to have Notes held by it covered by the Initial Shelf Registration
  unless such Holder agrees to be bound by all of the provisions of this
  Agreement applicable to such Holder. The Company and the Guarantors shall
  (i) not permit any securities other than the Registrable Securities to be
  included in any Shelf Registration, and (ii) use their respective
  reasonable best efforts to cause the Initial Shelf Registration to be
  declared effective under the Securities Act as promptly as practicable
  after the filing thereof (but in no event later than 60 days after the
  filing thereof) and to keep the Initial Shelf Registration continuously
  effective under the Securities Act until the date that is 24 months after
  the

                                       5
<PAGE>

  Effectiveness Date (subject to extension pursuant to the last paragraph of
  Section 6 hereof) (the "Effectiveness Period"), or such shorter period
  ending when (i) all Registrable Securities covered by the Initial Shelf
  Registration have been sold or (ii) a Subsequent Shelf Registration
  covering all of the Registrable Securities has been declared effective
  under the Securities Act.

     (b) Subsequent Shelf Registrations. If any Shelf Registration ceases to
  be effective for any reason at any time during the Effectiveness Period
  (other than because of the sale of all of the Registrable Securities
  registered thereunder), the Company and the Guarantors shall use their
  respective reasonable best efforts to obtain the prompt withdrawal of any
  order suspending the effectiveness thereof, and in any event shall within
  30 days of such cessation of effectiveness amend the Shelf Registration in
  a manner reasonably expected to obtain the withdrawal of the order
  suspending the effectiveness thereof, or file an additional "shelf"
  Registration Statement pursuant to Rule 415 covering all of the Registrable
  Securities (a "Subsequent Shelf Registration"). If a Subsequent Shelf
  Registration is filed, the Company and the Guarantors shall use their
  respective reasonable best efforts to cause the Subsequent Shelf
  Registration to be declared effective as soon as practicable after such
  filing and to keep such Subsequent Shelf Registration continuously
  effective for a period equal to the number of days in the Effectiveness
  Period less the aggregate number of days during which the Initial Shelf
  Registration, and any previously filed Subsequent Shelf Registration, was
  previously effective.

   4. Liquidated Damages.

     (a) The Company and the Guarantors acknowledge and agree that the
  Holders will suffer damages, and that it would not be feasible to ascertain
  the extent of such damages with precision, if the Company and the
  Guarantors fail to fulfill their respective obligations hereunder.
  Accordingly, in the event of such failure, the Company and the Guarantors
  jointly and severally agree to pay liquidated damages to each Holder under
  the circumstances and to the extent set forth below:

       (i) if the Exchange Offer Registration Statement has not been filed
    with the SEC on or prior to the Filing Date;

       (ii) if the Exchange Offer Registration Statement is not declared
    effective by the SEC on or prior to the Effectiveness Date;

       (iii) if the Exchange Offer is not consummated on or before the 30th
    day after the Exchange Offer Registration Statement is declared
    effective by the SEC;

       (iv) if obligated to file a Shelf Registration and the Company and
    the Guarantors fail to file such Shelf Registration with the SEC on or
    prior to the 60th day after such filing obligation arises;

       (v) if obligated to file a Shelf Registration and such Shelf
    Registration is not declared effective on or prior to the 60th day
    after such filing obligation arises; or

       (vi) if the Exchange Offer Registration Statement or the Shelf
    Registration, as the case may be, is filed and declared effective by
    the SEC but thereafter ceases to be effective or useable in connection
    with resales of Registrable Securities, for such time of non-
    effectiveness or non-usability;

  (each of the foregoing an "Event," and the date on which the Event occurs
  being referred to herein as an "Event Date").

     Upon the occurrence of any Event, the Company and the Guarantors shall
  pay, or cause to be paid, in addition to amounts otherwise due under the
  Indenture and the Registrable Securities, to each Holder of Registrable
  Securities affected thereby as liquidated damages ("Liquidated Damages"),
  and not as a penalty, an amount equal to $0.05 per week per $1,000 in
  principal amount of Registrable Securities held by such Holder for each
  week or portion thereof that the Event continues for the first 90-day
  period immediately following the Event Date. The amount of Liquidated
  Damages shall increase by an additional $0.05 per week per $1,000 in
  principal amount of Registrable Securities with respect to each subsequent
  90-day period until all Events have been cured, up to a maximum amount of
  $0.50 per week per $1,000 in

                                       6
<PAGE>

  principal amount of Registrable Securities. The Company and the Guarantors
  shall not be required to pay Liquidated Damages for more than one Event at
  any given time. Liquidated Damages will, in each case, cease to accrue
  (subject to the occurrence of another Event) on the date on which all
  Events have been cured. An Event under clause (i) above shall be cured on
  the date that either the Exchange Offer Registration Statement or the
  Initial Shelf Registration is filed with the SEC; an Event under clause
  (ii) above shall be cured on the date that either the Exchange Offer
  Registration Statement or the Initial Shelf Registration is declared
  effective by the SEC; an Event under clause (iii) above shall be cured on
  the date the Exchange Offer is consummated with respect to all Notes
  validly tendered; an Event under clause (iv) above shall be cured on the
  date that such Shelf Registration is filed with the SEC; an Event under
  clause (v) above shall be cured on the date that such Shelf Registration is
  declared effective by the SEC; and an Event under clause (vi) above shall
  be cured upon the filing of a post-effective amendment to such Registration
  Statement or an additional Registration Statement that causes the Exchange
  Offer Registration Statement or the Shelf Registration, as applicable, to
  again be declared effective or made usable.

     (b) The Company and the Guarantors shall notify the Trustee within five
  Business Days after each Event Date. The Company and the Guarantors shall
  pay the Liquidated Damages due on the Registrable Securities by depositing
  with the Trustee, in trust, for the benefit of the Holders thereof, by
  12:00 noon, New York City time, on or before the applicable semi-annual
  interest payment date for the Registrable Securities, immediately available
  funds in sums sufficient to pay the Liquidated Damages then due. The
  Liquidated Damages amount due shall be payable on each interest payment
  date to the record Holder entitled to receive the interest payment to be
  made on such date as set forth in the Indenture. Notwithstanding the fact
  that any securities for which Liquidated Damages are due cease to be
  Registrable Securities, all obligations of the Company and the Guarantors
  to pay Liquidated Damages with respect to such securities shall survive
  until such time as such obligations with respect to such securities shall
  have been satisfied in full.

   5. Gaming Consents.

   Prior to consummating the Exchange Offer or filing the Initial Shelf
Registration, as the case may be, the Company and the Guarantors shall make or
obtain all Permits necessary or desirable for the consummation of the
transactions contemplated hereby, including without limitation, the required
approvals of the Nevada Gaming Commission, the Nevada State Gaming Control
Board, or the Clark County Liquor and Gaming Licensing Board, or any other
applicable gaming authorities, for the pledge of, or any negative pledge on,
the stock of Casino Excitement, Inc., Games of Nevada, Inc., MGC, Inc., Mikohn
International, Inc., Mikohn Nevada, or Progressive Games, Inc.

   6. Registration Procedures.

   In connection with the registration of any Securities pursuant to Sections 2
or 3 hereof, the Company and the Guarantors shall effect such registrations to
permit the sale of such Securities in accordance with the intended method or
methods of disposition thereof, and pursuant thereto the Company and the
Guarantors shall:

     (a) Prepare and file with the SEC, as soon as practicable after the date
  hereof but in any event on or prior to the Filing Date, a Registration
  Statement or Registration Statements as prescribed by Section 2 or 3, and
  use their respective reasonable best efforts to cause each such
  Registration Statement to become effective and remain effective as provided
  in this Agreement; provided, that, if (i) such filing is pursuant to
  Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration
  Statement filed pursuant to Section 2 is required tobe delivered under the
  Securities Act by any Participating Broker-Dealer who seeks to sell
  Exchange Securities during the Applicable Period, before filing any
  Registration Statement or Prospectus or any amendments or supplements
  thereto, the Company and the Guarantors shall (A) notify the Holders of the
  Registrable Securities covered by such Registration Statement, their
  Special Counsel, each Participating Broker-Dealer, the managing
  underwriters, if any, and their counsel of such filing at least 5 Business
  Days prior to making such filing and (B) if requested, furnish to and
  afford the Holders of

                                       7
<PAGE>

  the Registrable Securities covered by such Registration Statement, their
  Special Counsel, each Participating Broker-Dealer, the managing
  underwriters, if any, and their counsel a reasonable opportunity to review,
  and shall make available for inspection by such Persons, copies of all such
  documents (including copies of any documents to be incorporated by
  reference therein and all exhibits thereto) proposed to be filed, such
  financial and other information and books and records of the Company and
  the Guarantors, and cause the officers, directors and employees of the
  Company and each of the Guarantors, Company counsel and independent
  certified public accountants of the Company and each of the Guarantors, to
  respond to such inquiries, as shall be necessary, in the opinion of the
  respective counsel to such Holders, Participating Broker-Dealer and
  underwriters, to conduct a reasonable investigation within the meaning of
  the Securities Act. The Company and the Guarantors may require each Holder
  to agree to keep confidential any non-public information relating to the
  Company and the Guarantors received by such Holder and not disclose such
  information (other than to an affiliate or prospective purchaser who agrees
  to respect the confidentiality provisions of this Section 6(a)) until such
  information has been made generally available to the public unless the
  release of such information is required by law or necessary to respond to
  inquiries of regulatory authorities (including the National Association of
  Insurance Commissioners, or similar organizations or their successors). The
  Company and the Guarantors shall not file any Registration Statement or
  Prospectus or any amendments or supplements thereto in respect of which the
  Holders must be afforded an opportunity to review prior to the filing of
  such document, if the Holders of a majority in aggregate principal amount
  of the Registrable Securities covered by such Registration Statement, their
  Special Counsel, any Participating Broker-Dealer or the managing
  underwriters, if any, or their counsel shall reasonably object to such
  filing within 5 Business Days after receipt of the Company's notice of
  filing described above in this Section 6(a).

     (b) Provide an indenture trustee for the Registrable Securities or the
  Exchange Securities, as the case may be, and cause the Indenture (or other
  indenture relating to the Registrable Securities) to be qualified under the
  TIA not later than the effective date of the first Registration Statement;
  in connection therewith, to effect such changes to such indenture as may be
  required for such indenture to be so qualified in accordance with the terms
  of the TIA; and execute, and use their respective reasonable best efforts
  to cause such trustee to execute, all documents as may be required to
  effect such changes, and all other forms and documents required to be filed
  with the SEC to enable such indenture to be so qualified in a timely
  manner.

     (c) Prepare and file with the SEC such pre-effective amendments and
  post-effective amendments to the Registration Statement as may be necessary
  in order to cause the Registration Statement to become effective and to
  keep such Registration Statement continuously effective for the time
  periods required hereby; cause the related Prospectus to be supplemented by
  any Prospectus supplement required by Applicable Law, and as so
  supplemented to be filed pursuant to Rule 424 (or any similar provisions
  then in force) under the Securities Act; and comply in all material
  respects with the provisions of the Securities Act and the Exchange Act
  applicable thereto with respect to the disposition of all securities
  covered by such Registration Statement, as so amended, or in such
  Prospectus, as so supplemented, in accordance with the intended methods of
  distribution set forth in such Registration Statement or Prospectus as so
  amended.

     (d) Furnish to such selling Holders and Participating Broker-Dealers who
  so request (i) upon the Company's and the Guarantors' receipt, a copy of
  the order of the SEC declaring such Registration Statement and any post-
  effective amendment thereto effective, (ii) such reasonable number of
  copies of such Registration Statement and of each amendment and supplement
  thereto (in each case including any documents incorporated therein by
  reference and all exhibits), (iii) such reasonable number of copies of the
  Prospectus included in such Registration Statement (including each
  preliminary Prospectus), and such reasonable number of copies of the final
  Prospectus as filed by the Company and the Guarantors pursuant to Rule
  424(b) under the Securities Act, in conformity with the requirements of the
  Securities Act, and (iv) such other documents (including any amendments
  required to be filed pursuant to Section 6(c)), as any such Person may
  reasonably request. The Company and the Guarantors hereby consent to the
  use (in

                                       8
<PAGE>

  accordance with applicable law) of the Prospectus by each of the selling
  Holders of Registrable Securities and by each such Participating Broker-
  Dealer, as the case may be, and the underwriters or agents, if any, and
  dealers (if any), in connection with the offering and sale of the
  Registrable Securities covered by, or the sale by Participating Broker-
  Dealers of the Exchange Securities pursuant to, such Prospectus and any
  amendment thereto.

     (e) If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a
  Prospectus contained in an Exchange Offer Registration Statement filed
  pursuant to Section 2 is required to be delivered under the Securities Act
  by any Participating Broker-Dealer who seeks to sell Exchange Securities
  during the Applicable Period, notify the selling Holders of Registrable
  Securities, their Special Counsel, each Participating Broker-Dealer and the
  managing underwriters, if any, promptly (but in any event within two
  Business Days), and confirm such notice in writing, (i) when a Prospectus
  has been filed, and, with respect to a Registration Statement or any post-
  effective amendment, when the same has become effective under the
  Securities Act, (ii) of the issuance by the SEC of any stop order
  suspending the effectiveness of a Registration Statement or of any order
  preventing or suspending the use of any Prospectus or the initiation of any
  proceedings for that purpose, (iii) if, at any time when a Prospectus is
  required by the Securities Act to be delivered in connection with sales of
  the Registrable Securities, the representations and warranties of the
  Company and the Guarantors contained in any agreement (including any
  underwriting agreement) contemplated by Section 6(m) below cease to be true
  and correct in any material respect, (iv) of the receipt by the Company or
  any of the Guarantors of any notification with respect to the suspension of
  the qualification or exemption from qualification of a Registration
  Statement or any of the Registrable Securities or the Exchange Securities
  to be sold by any Participating Broker-Dealer for offer or sale in any
  jurisdiction, or the contemplation, initiation or threatening of any
  proceeding for such purpose, (v) of the happening of any event that would
  cause any statement made in such Registration Statement or related
  Prospectus or any document incorporated or deemed to be incorporated
  therein by reference to be untrue in any material respect or that requires
  the making of any changes in such Registration Statement, Prospectus or
  documents so that it will 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, in light of the circumstances
  under which such statements were made, not misleading, and (vi) of the
  Company's and the Guarantors' reasonable determination that a post-
  effective amendment to a Registration Statement would be appropriate.

     (f) Use their respective reasonable best efforts to register or qualify,
  and, if applicable, to cooperate with the selling Holders of Registrable
  Securities, the underwriters, if any, and their respective counsel in
  connection with the registration or qualification (or exemption from such
  registration or qualification) of, Securities to be included in a
  Registration Statement for offer and sale under the securities or Blue Sky
  laws of such jurisdictions within the United States as any selling Holder,
  Participating Broker-Dealer or the managing underwriters reasonably request
  in writing; and, if Securities are offered other than through an
  Underwritten Offering, the Company and the Guarantors shall cause their
  respective counsel to perform Blue Sky investigations and file
  registrations and qualifications required to be filed pursuant to this
  Section 6(f) at the expense of the Company and the Guarantors; keep each
  such registration or qualification (or exemption therefrom) effective
  during the period such Registration Statement is required to be kept
  effective and do any and all other acts or things necessary or advisable to
  enable the disposition in such jurisdictions of the Securities covered by
  the applicable Registration Statement, provided, however, that the Company
  and any Guarantor shall not be required to (i) qualify generally to do
  business in any jurisdiction where it is not then so qualified, (ii) take
  action that would subject it to general service of process in any
  jurisdiction where it is not so subject or (iii) take action that would
  subject it to taxation in respect of doing business in any such
  jurisdiction where it is not then subject.

     (g) Use their respective reasonable best efforts to prevent the issuance
  of any order suspending the effectiveness of a Registration Statement or of
  any order preventing or suspending the use of a Prospectus or suspending
  the qualification (or exemption from qualification) of any of the
  Securities for sale in any jurisdiction, and, if any such order is issued,
  to use their respective reasonable best efforts to obtain the withdrawal of
  any such order at the earliest possible time.

                                       9
<PAGE>

     (h) If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a
  Prospectus contained in an Exchange Offer Registration Statement filed
  pursuant to Section 2 is required to be delivered under the Securities Act
  by any Participating Broker-Dealer who seeks to sell Exchange Securities
  during the Applicable Period, and if requested by the managing
  underwriters, if any, such Participating Broker-Dealer or the Holders of a
  majority in aggregate principal amount of the Registrable Securities, (i)
  promptly incorporate in a Prospectus or post-effective amendment such
  information as the managing underwriters, if any, or such Holders
  reasonably request to be included therein as required to comply with any
  Applicable Law and (ii) make all required filings of such Prospectus or
  such post-effective amendment as soon as practicable after the Company and
  the Guarantors have received notification of such matters required by
  Applicable Law to be incorporated in such Prospectus or post-effective
  amendment.

     (i) If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a
  Prospectus contained in an Exchange Offer Registration Statement filed
  pursuant to Section 2 is required to be delivered under the Securities Act
  by any Participating Broker-Dealer who seeks to sell Exchange Securities
  during the Applicable Period, cooperate with the selling Holders, such
  Participating Broker-Dealer and the managing underwriters, if any, to
  facilitate the timely preparation and delivery of certificates representing
  Registrable Securities to be sold, which certificates shall not bear any
  restrictive legends and shall be in a form eligible for deposit with The
  Depository Trust Company ("DTC"); and enable such Registrable Securities to
  be in such denominations and registered in such names as the managing
  underwriters, if any, such Participating Broker-Dealer or the Holders may
  request.

     (j) If (i) a Shelf Registration is filed pursuant to Section 3 or (ii) a
  Prospectus contained in an Exchange Offer Registration Statement filed
  pursuant to Section 2 is required to be delivered under the Securities Act
  by any Participating Broker-Dealer who seeks to sell Exchange Securities
  during the Applicable Period, upon the occurrence of any event contemplated
  by paragraph 6(e)(v) or 6(e)(vi) above, as promptly as practicable prepare
  a supplement or post-effective amendment to the Registration Statement or a
  supplement to the related Prospectus or any document incorporated or deemed
  to be incorporated therein by reference, or file any other required
  document so that, as thereafter delivered to the purchasers of the
  Registrable Securities being sold thereunder or to the purchasers of the
  Exchange Securities to whom such Prospectus will be delivered by a
  Participating Broker-Dealer, such Prospectus will not contain 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, in light of
  the circumstances under which they were made, not misleading, and, if SEC
  review is required, use their respective reasonable best efforts to cause
  such amendment to be declared effective as soon as practicable.

     (k) Use their respective reasonable best efforts to cause the Securities
  covered by a Registration Statement to be rated with the appropriate rating
  agencies, if appropriate, if so requested by the Holders of a majority in
  aggregate principal amount of Securities covered by such Registration
  Statement or the managing underwriters, if any.

     (l) Prior to the effective date of the first Registration Statement
  relating to the Securities, (i) provide the applicable trustee with printed
  certificates for the Securities in a form eligible for deposit with DTC and
  (ii) provide a CUSIP number for each of the Securities.

     (m) If a Shelf Registration is filed pursuant to Section 3, enter into
  such agreements (including, if requested, an underwriting agreement in
  form, scope and substance as is customary in Underwritten Offerings) and
  take all such other actions in connection therewith (including those
  reasonably requested by the managing underwriters, if any, or the Holders
  of a majority in aggregate principal amount of Registrable Securities being
  sold) in order to expedite or facilitate the registration or the
  disposition of such Registrable Securities, and in such connection, whether
  or not an underwriting agreement is entered into and whether or not the
  registration is an Underwritten Registration, (i) make such representations
  and warranties to the Holders and the underwriters, if any, with respect to
  the business of the Company and its subsidiaries, and the Registration
  Statement, Prospectus and documents, if any, incorporated or deemed to be
  incorporated by reference therein, in each case, in form, substance and
  scope as are customarily made

                                       10
<PAGE>

  by issuers to underwriters in Underwritten Offerings, and confirm the same
  if and when reasonably requested; (ii) obtain opinions of counsel to the
  Company and the Guarantors and updates thereof (which counsel and opinions
  (in form, scope and substance) shall be reasonably satisfactory to the
  managing underwriters, if any, and the Holders of a majority in aggregate
  principal amount of the Registrable Securities being sold), addressed to
  each selling Holder and each of the underwriters, if any, covering the
  matters customarily covered in opinions requested in Underwritten
  Offerings; (iii) obtain "cold comfort" letters and updates thereof (which
  letters and updates (in form, scope and substance) shall be reasonably
  satisfactory to the managing underwriters) from the independent certified
  public accountants of the Company and each of the Guarantors (and, if
  necessary, any other independent certified public accountants of any
  subsidiary of the Company or of any business acquired by the Company for
  which financial statements and financial data are, or are required to be,
  included in the Registration Statement), addressed to each of the
  underwriters and each selling Holder, such letters to be in customary form
  and covering matters of the type customarily covered in "cold comfort"
  letters in connection with Underwritten Offerings and such other matters as
  reasonably requested by underwriters; and (iv) deliver such documents and
  certificates as may be reasonably requested by the Holders of a majority in
  principal amount of the Registrable Securities being sold and the managing
  underwriters, if any, to evidence the continued validity of the
  representations and warranties of the Company and the Guarantors and their
  respective subsidiaries made pursuant to clause (i) above and to evidence
  compliance with any conditions contained in the underwriting agreement or
  other similar agreement entered into by the Company and the Guarantors.

     (n) Comply with all applicable rules and regulations of the SEC and make
  generally available to its security holders a consolidated earnings
  statement (which need not be audited) satisfying the provisions of Section
  11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
  promulgated under the Securities Act) no later than 45 days after the end
  of any 12-month period (or 90 days after the end of any 12-month period if
  such period is a fiscal year) (i) commencing on the first day of the fiscal
  quarter following each fiscal quarter in which Registrable Securities are
  sold to underwriters in a firm commitment or best efforts underwritten
  offering and (ii) if not sold to underwriters in such an offering,
  commencing on the first day of the first fiscal quarter of the Company
  after the effective date of a Registration Statement, which statement shall
  cover said 12-month periods.

     (o) Upon consummation of an Exchange Offer or Private Exchange, obtain
  an opinion of counsel to the Company and the Guarantors (in form, scope and
  substance reasonably satisfactory to the Initial Purchasers), addressed to
  all Holders participating in the Exchange Offer or Private Exchange, as the
  case may be, to the effect that (i) the Company and the Guarantors have
  duly authorized, executed and delivered the Exchange Securities or the
  Private Exchange Securities, as the case may be, and the Indenture, (ii)
  the Exchange Securities or the Private Exchange Securities, as the case may
  be, and the Indenture constitute legal, valid and binding obligations of
  the Company and the Guarantors, enforceable against the Company and the
  Guarantors in accordance with their respective terms, except as such
  enforcement may be subject to (x) applicable bankruptcy, insolvency,
  reorganization, moratorium and similar laws affecting creditors' rights and
  remedies generally and (y) general principles of equity (regardless of
  whether such enforcement is sought in a proceeding in equity or at law),
  and (iii) all obligations of the Company and the Guarantors under the
  Exchange Securities or the Private Exchange Securities, as the case may be,
  and the Indenture are secured by Liens (as defined in the Indenture) on the
  assets securing the obligations of the Company and the Guarantors under the
  Notes and the Indenture immediately prior to the consummation of such
  Exchange Offer or Private Exchange, as the case may be.

     (p) If an Exchange Offer or Private Exchange is to be consummated, upon
  delivery of the Registrable Securities by such Holders to the Company and
  the Guarantors (or to such other Person as directed by the Company and the
  Guarantors) in exchange for the Exchange Securities or the Private Exchange
  Securities, as the case may be, the Company and the Guarantors shall mark,
  or caused to be marked, on such Registrable Securities that such
  Registrable Securities are being cancelled in exchange for the Exchange
  Securities or the Private Exchange Securities, as the case may be, and in
  no event shall such Registrable Securities be marked as paid or otherwise
  satisfied.

                                       11
<PAGE>

     (q) Cooperate with each seller of Registrable Securities covered by any
  Registration Statement and each underwriter, if any, participating in the
  disposition of such Registrable Securities and their respective counsel in
  connection with any filings required to be made with the NASD.

     (r) Use their respective reasonable best efforts to take all other steps
  necessary to effect the registration of the Registrable Securities covered
  by a Registration Statement contemplated hereby.

   The Company and the Guarantors may require each seller of Registrable
Securities or Participating Broker-Dealer as to which any registration is being
effected to furnish to the Company and the Guarantors such information
regarding such seller or Participating Broker-Dealer and the distribution of
such Registrable Securities or Exchange Securities as the Company and the
Guarantors may, from time to time, reasonably request in writing. The Company
and the Guarantors may exclude from such registration the Registrable
Securities of any seller or Exchange Securities of any Participating Broker-
Dealer who unreasonably fails to furnish such information.

   Each Holder and each Participating Broker-Dealer agrees by acquisition of
such Registrable Securities or Exchange Securities of any Participating Broker-
Dealer that, upon receipt of written notice from the Company and the Guarantors
of the happening of any event of the kind described in Section 6(e)(ii),
6(e)(iv), 6(e)(v) or 6(e)(vi), such Holder will forthwith discontinue
disposition (in the jurisdictions specified in a notice of a 6(e)(iv) event,
and elsewhere in a notice of a 6(e)(ii), 6(e)(v) or 6(e)(vi) event) of such
Securities covered by such Registration Statement or Prospectus until the
earlier of (i) such Holder's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(j); or (ii) the time such Holder
is advised in writing (the "Advice") by the Company and the Guarantors that
offers or sales in a particular jurisdiction may be resumed, or that the use of
the applicable Prospectus may be resumed, as the case may be, and has received
copies of any amendments or supplements thereto. If the Company and the
Guarantors shall give such notice, each of the Effectiveness Period and the
Applicable Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the
date when each seller of such Securities covered by such Registration Statement
shall have received (x) the copies of the supplemented or amended Prospectus
contemplated by Section 6(j) or (y) the Advice.

   7. Registration Expenses.

     (a) All fees and expenses incident to the performance of or compliance
  with this Agreement by the Company and the Guarantors shall be borne by the
  Company and the Guarantors shall be borne by the Company and the Guarantors
  whether or not the Exchange Offer or a Shelf Registration is filed or
  becomes effective, including, without limitation:

       (i) all registration and filing fees (including, without limitation,
    (A) fees with respect to filings required to be made with the NASD and
    (B) fees and expenses of compliance with state securities or Blue Sky
    laws (including, without limitation, reasonable fees and disbursements
    of counsel in connection with Blue Sky qualifications of the
    Registrable Securities or Exchange Securities and determination of the
    eligibility of the Registrable Securities or Exchange Securities for
    investment under the laws of such jurisdictions (x) where the Holders
    are located, in the case of the Exchange Securities, or (y) as provided
    in Section 6(f), in the case of Registrable Securities or Exchange
    Securities to be sold by a Participating Broker-Dealer during the
    Applicable Period));

       (ii) printing expenses (including, without limitation, expenses of
    printing certificates for Registrable Securities or Exchange Securities
    in a form eligible for deposit with DTC and of printing prospectuses if
    the printing of prospectuses is requested by the managing underwriters,
    if any, or, in respect of Registrable Securities or Exchange Securities
    to be sold by a Participating Broker-Dealer during the Applicable
    Period, by the Holders of a majority in aggregate principal amount of
    the Registrable Securities included in any Registration Statement or of
    such Exchange Securities, as the case may be);

                                       12
<PAGE>

       (iii) messenger, telephone, duplication, word processing and
    delivery expenses incurred by the Company and the Guarantors in the
    performance of their obligations hereunder;

       (iv) fees and disbursements of counsel for the Company, the
    Guarantors and, subject to Section 7(b), the Holders;

       (v) fees and disbursements of all independent certified public
    accountants referred to in Section 6(m)(iii) (including, without
    limitation, the expenses of any special audit and "cold comfort"
    letters required by or incident to such performance);

       (vi) fees and expenses of any "qualified independent underwriter" or
    other independent appraiser participating in an offering pursuant to
    Section 3 of Schedule E to the By-laws of the NASD, but only where the
    need for such a "qualified independent underwriter" arises due to a
    relationship with the Company and the Guarantors; and

       (vii) internal expenses of the Company and the Guarantors
    (including, without limitation, all salaries and expenses of their
    respective officers and employees performing legal or accounting
    duties), the expenses of any annual audit and the fees and expenses of
    any Person, including special experts, retained by the Company or the
    Guarantors.

     (b) The Company and the Guarantors shall reimburse the Holders for the
  reasonable fees and disbursements of not more than one counsel (in addition
  to appropriate local counsel) chosen by the Holders of a majority in
  aggregate principal amount of the Registrable Securities to be included in
  any Registration Statement and other reasonable and necessary out-of-pocket
  expenses of the Holders incurred in connection with the registration of the
  Registrable Securities.

   8. Indemnification.

     (a) Indemnification by the Company and the Guarantors. The Company and
  the Guarantors, jointly and severally, shall, without limitation as to
  time, indemnify and hold harmless each Holder and each Participating
  Broker-Dealer, each Person who controls (within the meaning of Section 15
  of the Securities Act or Section 20(a) of the Exchange Act (any of such
  persons being hereinafter referred to as a "controlling person")) each such
  Holder and each such Participating Broker-Dealer and the officers,
  directors, partners, employees, representatives and agents of each such
  Holder, Participating Broker-Dealer and controlling person (collectively,
  the "Holder Indemnified Parties"), to the fullest extent lawful, from and
  against any and all losses, claims, damages, liabilities, costs (including,
  without limitation, costs of preparation and reasonable attorneys' fees)
  and expenses (including, without limitation, costs and expenses incurred in
  connection with investigating, preparing, pursuing or defending against any
  of the foregoing) (collectively, "Losses"), as incurred, directly or
  indirectly caused by, related to, based upon, arising out of or in
  connection with any untrue or alleged untrue statement of a material fact
  contained in any Registration Statement, Prospectus or form of prospectus,
  or in any amendment or supplement thereto, or in any preliminary
  prospectus, or any omission or alleged omission to state therein a material
  fact required to be stated therein or necessary to make the statements
  therein, in the light of the circumstances under which they were made, not
  misleading, except insofar as such Losses are based upon information
  relating to such Holder or Participating Broker-Dealer and furnished in
  writing to the Company and the Guarantors by such Holder or Participating
  Broker-Dealer expressly for use therein. The Company and each of the
  Guarantors shall also indemnify underwriters, selling brokers, dealer
  managers and similar securities industry professionals participating in the
  distribution, their officers, directors, agents and employees and each of
  their respective controlling persons to the same extent as provided above
  with respect to the indemnification of the Holder Indemnified Parties.

     (b) Indemnification by Holders of Registrable Securities. In connection
  with any Registration Statement, Prospectus or form of prospectus, any
  amendment or supplement thereto, or any preliminary prospectus in which a
  Holder is participating, such Holder shall furnish to the Company and the
  Guarantors in writing such information as the Company and the Guarantors
  reasonably request for use in

                                       13
<PAGE>

  connection with any Registration Statement, Prospectus or form of
  prospectus, any amendment or supplement thereto, or any preliminary
  prospectus and shall, severally and not jointly, without limitation as to
  time, indemnify and hold harmless the Company and the Guarantors, their
  respective directors, officers, agents and employees, each controlling
  person of the Company or any of the Guarantors and the directors, officers,
  agents or employees of such controlling persons, to the fullest extent
  lawful, from and against all Losses arising out of or based upon any untrue
  or alleged untrue statement of a material fact contained in any
  Registration Statement, Prospectus or form of prospectus or in any
  amendment or supplement thereto or in any preliminary prospectus, or any
  omission or alleged omission to state therein a material fact required to
  be stated therein or necessary to make the statements therein, in the light
  of the circumstances under which they were made, not misleading to the
  extent, but only to the extent, that such untrue statement or alleged
  untrue statement of a material fact or omission or alleged omission of a
  material fact is contained in or omitted from any information so furnished
  in writing by such Holder to the Company and the Guarantors expressly for
  use therein. In no event shall the liability of any selling Holder be
  greater in amount than the dollar amount of the proceeds (net of payment of
  all expenses) received by such Holder upon the sale of the Registrable
  Securities giving rise to such indemnification obligation.

     (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
  brought or asserted against any Person entitled to indemnification
  hereunder (an "indemnified party"), such indemnified party shall promptly
  notify the party or parties from which such indemnification is sought (the
  "indemnifying parties") in writing; provided, that the failure to so notify
  the indemnifying parties shall not relieve the indemnifying parties from
  any obligation or liability except to the extent (but only to the extent)
  that it shall be finally determined by a court of competent jurisdiction
  (which determination is not subject to appeal) that the indemnifying
  parties have been prejudiced materially by such failure.

   The indemnifying party shall have the right, exercisable by giving written
notice to an indemnified party, within 20 Business Days after receipt of
written notice from such indemnified party of such Proceeding, to assume, at
its expense, the defense of any such Proceeding, provided, that an indemnified
party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such indemnified party or parties unless:
(1) the indemnifying party has agreed to pay such fees and expenses; (2) the
indemnifying party shall have failed promptly to assume the defense of such
Proceeding or shall have failed to employ counsel reasonably satisfactory to
such indemnified party; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such indemnified party and the
indemnifying party or any of its affiliates or controlling persons, and such
indemnified party shall have been advised by such counsel that there may be one
or more defenses available to such indemnified party that are in addition to,
or in conflict with, those defenses available to the indemnifying party or such
affiliate or controlling person (in which case, if such indemnified party
notifies the indemnifying parties in writing that it elects to employ separate
counsel at the expense of the indemnifying parties, the indemnifying parties
shall not have the right to assume the defense thereof and the reasonable fees
and expenses of such counsel shall be at the expense of the indemnifying party;
it being understood, however, that, the indemnifying party shall not, in
connection with any one such Proceeding or separate but substantially similar
or related Proceedings in the same jurisdiction, arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (together with appropriate local
counsel) at any time for such indemnified party).

   No indemnifying party shall be liable for any settlement of any such
Proceeding effected without its written consent, but if settled with its
written consent, or if there be a final judgment for the plaintiff in any such
Proceeding, each indemnifying party jointly and severally agrees, subject to
the exceptions and limitations set forth above, to indemnify and hold harmless
each indemnified party from and against any and all Losses by reason of such
settlement or judgment. The indemnifying party shall not consent to the entry
of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to each
indemnified party of a release, in form and substance reasonably satisfactory
to the indemnified party, from all liability in respect of such Proceeding for
which such indemnified party would be entitled to indemnification hereunder
(whether or not any indemnified party is a party thereto).

                                       14
<PAGE>

     (d) Contribution. If the indemnification provided for in this Section 8
  is unavailable to an indemnified party or is insufficient to hold such
  indemnified party harmless for any Losses in respect of which this Section
  8 would otherwise apply by its terms (other than by reason of exceptions
  provided in this Section 8), then each applicable indemnifying party, in
  lieu of indemnifying such indemnified party, shall have a joint and several
  obligation to contribute to the amount paid or payable by such indemnified
  party as a result of such Losses, (i) in such proportion as is appropriate
  to reflect the relative benefits received by the indemnifying party, on the
  one hand, and such indemnified party, on the other hand, from the offering
  of the Notes, or (ii) if the allocation provided by clause (i) above is not
  permitted by applicable law, in such proportion as is appropriate to
  reflect not only the relative benefits referred to in clause (i) above but
  also the relative fault of the indemnifying party, on the one hand, and
  such indemnified party, on the other hand, in connection with the actions,
  statements or omissions that resulted in such Losses as well as any other
  relevant equitable considerations. The relative fault of such indemnifying
  party, on the one hand, and indemnified party, on the other hand, shall be
  determined by reference to, among other things, whether any untrue or
  alleged untrue statement of a material fact or omission or alleged omission
  to state a material fact 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 any
  such statement or omission. The amount paid or payable by an indemnified
  party as a result of any Losses shall be deemed to include any legal or
  other fees or expenses incurred by such party in connection with any
  Proceeding, to the extent such party would have been indemnified for such
  fees or expenses if the indemnification provided for in Section 8(a) or
  8(b) was available to such party.

   The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 8(d), an indemnifying
party that is a selling Holder shall not be required to contribute, in the
aggregate, any amount in excess of such Holder's Maximum Contribution Amount. A
selling Holder's "Maximum Contribution Amount" shall equal the excess, if any,
of (i) the aggregate proceeds received by such Holder pursuant to the sale of
such Registrable Securities over (ii) the aggregate amount of damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

   The indemnification and contribution agreements contained in this Section 8
are in addition to any liability that the indemnifying parties may have to the
indemnified parties.

   9. Rule 144 and Rule 144A.

   The Company covenants that it shall (a) file the reports required to be
filed by it (if so required) under the Securities Act and the Exchange Act in a
timely manner and, if at any time any such Person is not required to file such
reports, it will, upon the request of any Holder, make publicly available other
information necessary to permit sales pursuant to Rule 144 and Rule 144A and
(b) take such further action as any Holder may reasonably request, all to the
extent required from time to time to enable such Holder to sell Registrable
Securities without registration under the Securities Act pursuant to the
exemptions provided by Rule 144 and Rule 144A. Upon the request of any Holder,
the Company and the Guarantors shall deliver to such Holder a written statement
as to whether they have complied with such information requirements.

   10. Underwritten Registrations.

   If any of the Registrable Securities covered by any Shelf Registration are
to be sold in an Underwritten Offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Securities included in such offering.

                                       15
<PAGE>

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

   11. Miscellaneous.

     (a) Remedies. In the event of a breach by the Company or any of the
  Guarantors of any of their respective obligations under this Agreement,
  each Holder, in addition to being entitled to exercise all rights provided
  herein, in the Indenture or, in the case of the Initial Purchasers, in the
  Purchase Agreement, or granted by law, including recovery of damages, will
  be entitled to specific performance of its rights under this Agreement. The
  Company and the Guarantors agree that monetary damages would not be
  adequate compensation for any loss incurred by reason of a breach by the
  Company or any of the Guarantors of any of the provisions of this Agreement
  and hereby further agree that, in the event of any action for specific
  performance in respect of such breach, the Company and the Guarantors shall
  waive the defense that a remedy at law would be adequate.

     (b) No Inconsistent Agreements. The Company and the Guarantors have not
  entered into, as of the date hereof, and shall not enter into, after the
  date of this Agreement, any agreement with respect to any of their
  respective securities that is inconsistent with the rights granted to the
  Holders in this Agreement or otherwise conflicts with the provisions
  hereof.

     (c) Amendments and Waivers. The provisions of this Agreement, including
  the provisions of this sentence, may not be amended, modified or
  supplemented, and waivers or consents to departures from the provisions
  hereof may not be given, unless the Company and the Guarantors have
  obtained the written consent of Holders of at least a majority of the then
  outstanding aggregate principal amount of Registrable Securities; provided,
  that Section 8 shall not be amended, modified or supplemented, and waivers
  or consents to departures from this proviso may not be given, unless the
  Company and the Guarantors have obtained the written consent of each
  Holder. Notwithstanding the foregoing, a waiver or consent to depart from
  the provisions hereof with respect to a matter that relates exclusively to
  the rights of Holders whose securities are being sold pursuant to a
  Registration Statement and that does not directly or indirectly affect the
  rights of other Holders may be given by Holders of at least a majority in
  aggregate principal amount of the Registrable Securities being sold by such
  Holders pursuant to such Registration Statement, provided that the
  provisions of this sentence may not be amended, modified or supplemented
  except in accordance with the provisions of the immediately preceding
  sentence.

     (d) Notices. All notices and other communications (including, without
  limitation, any notices or other communications to the Trustee) provided
  for or permitted hereunder shall be made in writing by hand-delivery,
  certified first-class mail, return receipt requested, next-day air courier
  or facsimile:

       (i) if to a Holder, at the most current address given by such Holder
    to the Company and the Guarantors in accordance with the provisions of
    this Section 11(d), which address initially is, with respect to each
    Holder, the address of such Holder maintained by the Registrar (as
    defined in the Indenture), with a copy to Skadden, Arps, Slate, Meagher
    & Flom LLP, 300 South Grand Avenue, Los Angeles, California 90071,
    telecopy number (213) 687-5600, Attention: Nicholas P. Saggese, Esq.;
    and

       (ii) if to the Company or any of the Guarantors, initially at 920
    Pilot Road, Las Vegas, NV 89119, Attention: General Counsel, telecopy
    number (702) 896-2461, with a copy to Greenberg Traurig, LLP, 2450
    Colorado Avenue, Suite 400 East, Santa Monica, CA 90404, Attention:
    Mark R. Moskowitz, Esq., and thereafter at such other address, notice
    of which is given in accordance with the provisions of this Section
    11(d).

                                       16
<PAGE>

   All such notices and communications shall be deemed to have been duly given:
when delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; one Business Day after being
timely delivered to a next-day air courier; and when receipt is acknowledged by
the addressee, if telecopied.

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

     (e) Successors and Assigns. This Agreement shall inure to the benefit of
  and be binding upon the successors and assigns of each of the parties,
  including, without limitation and without the need for an express
  assignment, subsequent Holders.

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

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

     (h) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
  ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT
  LIMITATION, SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
  LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 329(b). THE COMPANY AND EACH
  OF THE GUARANTORS HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY
  NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW
  YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY
  OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
  RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN
  RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE
  AFORESAID COURTS. THE COMPANY AND EACH OF THE GUARANTORS IRREVOCABLY
  WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE
  LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
  THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
  ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
  BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE
  COMPANY AND EACH OF THE GUARANTORS IRREVOCABLY CONSENTS, TO THE FULLEST
  EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF
  PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
  PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
  MAIL, POSTAGE PREPAID, TO THE COMPANY AND THE GUARANTORS AT ITS SAID
  ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
  NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY
  OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
  PROCEED AGAINST THE COMPANY OR ANY GUARANTOR IN ANY OTHER JURISDICTION.

     (i) Severability. If any term, provision, covenant or restriction of
  this Agreement is held by a court of competent jurisdiction to be invalid,
  illegal, void or unenforceable, the remainder of the terms, provisions,
  covenants and restrictions set forth herein shall remain in full force and
  effect and shall in no way be affected, impaired or invalidated, and the
  parties hereto shall use their best efforts to find and employ an
  alternative means to achieve the same or substantially the same result as
  that contemplated by such term, provision, covenant or restriction. It is
  hereby stipulated and declared to be the intention of the parties that they
  would have executed the remaining terms, provisions, covenants and
  restrictions without including any of such that may be hereafter declared
  invalid, illegal, void or unenforceable.

                                       17
<PAGE>

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

     (k) Attorneys' Fees. In any Proceeding brought to enforce any provision
  of this Agreement, or where any provision hereof is validly asserted as a
  defense, the prevailing party, as determined by the courts, shall be
  entitled to recover reasonable attorneys' fees in addition to its costs and
  expenses and any other available remedy.

     (l) Securities Held by the Company or its Affiliates. Whenever the
  consent or approval of Holders of a specified percentage of Registrable
  Securities is required hereunder, Registrable Securities held by the
  Company or its affiliates (as such term is defined in Rule 405 under the
  Securities Act) (other than Holders deemed to be such affiliates solely by
  reason of their holdings of such Registrable Securities) shall not be
  counted in determining whether such consent or approval was given by the
  Holders of such required percentage.

     (m) Gaming Laws. Each of the provisions of this Agreement is subject to
  and shall be enforced in compliance with applicable gaming laws.

                      [Signature pages follow this page].

                                       18
<PAGE>

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

                                          MIKOHN GAMING CORPORATION

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                          CASINO EXCITEMENT, INC.

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                          GAMES OF NEVADA, INC.

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                          MGC, INC.

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                          MIKOHN INTERNATIONAL, INC.

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                          MIKOHN NEVADA

                                          By:               /s/
                                             __________________________________
                                             Name:
                                             Title:

                                       19
<PAGE>

                                          PROGRESSIVE GAMES, INC.

                                          By:         /s/
                                            ___________________________________
                                            Name:
                                            Title:

                                          ACCEPTED AND AGREED TO:

                                          JEFFERIES & COMPANY, INC.

                                          By:         /s/
                                            ___________________________________
                                            Name:
                                            Title:

                                          CIBC WORLD MARKETS CORP.

                                          By:         /s/
                                            ___________________________________
                                            Name:
                                            Title:

                                       20

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