Document:

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                                                                    Exhibit 4.11

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                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of April 18, 2001

                                  By and Among

                                 FIBERMARK, INC.
                                   as Issuer,

                           the GUARANTORS named herein

                                       and

                                 UBS WARBURG LLC
                                       and
                          RBC DOMINION SECURITIES CORP
                              as Initial Purchasers

                          10 3/4% Senior Notes due 2011

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                                TABLE OF CONTENTS

                                                                            PAGE
1.    Definitions .............................................................1

2.    Exchange Offer ..........................................................4

3.    Shelf Registration Statement ............................................7

4.    Liquidated Damages ......................................................9

5.    Registration Procedures ................................................10

6.    Registration Expenses ..................................................18

7.    Indemnification ........................................................19

8.    Rules 144 and 144A .....................................................22

9.    Underwritten Registrations .............................................22

10.   Miscellaneous ..........................................................22

      (a)   No Inconsistent Agreements .......................................22
      (b)   Adjustments Affecting Registrable Notes ..........................23
      (c)   Amendments and Waivers ...........................................23
      (d)   Notices ..........................................................23
      (e)   Guarantors .......................................................24
      (f)   Successors and Assigns ...........................................24
      (g)   Counterparts .....................................................25
      (h)   Headings .........................................................25
      (i)   Governing Law ....................................................25
      (j)   Severability .....................................................25
      (k)   Securities Held by the Company or Its Affiliates .................25
      (l)   Third-Party Beneficiaries ........................................25
      (m)   Attorneys' Fees ..................................................25
      (n)   Entire Agreement .................................................26

SIGNATURES ..................................................................S-1

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                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "AGREEMENT") is dated as of
April 18, 2001, by and among FiberMark, Inc., a Delaware corporation (the
"COMPANY"), and each of the Guarantors (as defined herein) (the Company and the
Guarantors are referred to collectively herein as the "ISSUERS"), on the one
hand, and UBS Warburg LLC and RBC Dominion Securities Corp. (the "INITIAL
PURCHASERS") on the other hand.

            This Agreement is entered into in connection with the Purchase
Agreement, dated as of April 10, 2001 and as amended by a joinder agreement
dated as of April 18, 2001, by and among the Issuers and the Initial Purchasers
(the "PURCHASE AGREEMENT"), relating to the offering of $230,000,000 aggregate
principal amount of the Company's 10 3/4% Senior Notes due 2011 (including the
guarantees thereof by the Guarantors, the "NOTES"). The execution and delivery
of this Agreement is a condition to the Initial Purchasers' obligation to
purchase the Notes under the Purchase Agreement.

            The parties hereby agree as follows:

      SECTION 1. DEFINITIONS

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

            "ACTION" shall have the meaning set forth in Section 7(c) hereof.

            "ADVICE" shall have the meaning set forth in Section 5 hereof.

            "AGREEMENT" shall have the meaning set forth in the first
introductory paragraph hereto.

            "APPLICABLE PERIOD" shall have the meaning set forth in Section 2(b)
hereof.

            "BOARD OF DIRECTORS" shall have the meaning set forth in Section 5
hereof.

            "BUSINESS DAY" shall mean a day that is not a Legal Holiday.

            "COMPANY" shall have the meaning set forth in the introductory
paragraph hereto and shall also include the Company's permitted successors and
assigns.

            "COMMISSION" shall mean the Securities and Exchange Commission.

            "DAY" shall mean a calendar day.

            "DELAY PERIOD" shall have the meaning set forth in Section 5 hereof.
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            "EFFECTIVENESS PERIOD" shall have the meaning set forth in the
second paragraph of Section 3(a) hereof.

            "EVENT DATE" shall have the meaning set forth in Section 4(b)
hereof.

            "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

            "EXCHANGE NOTES" shall have the meaning set forth in Section 2(a)
hereof.

            "EXCHANGE OFFER" shall have the meaning set forth in Section 2(a)
hereof.

            "EXCHANGE OFFER REGISTRATION STATEMENT" shall have the meaning set
forth in Section 2(a) hereof.

            "GUARANTORS" means each of the Persons executing this Agreement (as
set forth on SCHEDULE A) on the date hereof and each Person who executes and
delivers a counterpart of this Agreement hereafter pursuant to Section 10(e)
hereof.

            "HOLDER" shall mean any holder of a Registrable Note or Registrable
Notes.

            "INDENTURE" shall mean the Indenture, dated as of April 18, 2001, by
and among the Issuers and Wilmington Trust Company, as trustee, pursuant to
which the Notes are being issued, as amended or supplemented from time to time
in accordance with the terms thereof.

            "INITIAL PURCHASERS" shall have the meaning set forth in the first
introductory paragraph hereof.

            "INITIAL SHELF REGISTRATION STATEMENT" shall have the meaning set
forth in Section 3(a) hereof.

            "INSPECTORS" shall have the meaning set forth in Section 5(n)
hereof.

            "ISSUE DATE" shall mean April 18, 2001, the date of original
issuance of the Notes.

            "ISSUERS" shall have the meaning set forth in the introductory
paragraph hereto.

            "LEGAL HOLIDAY" shall mean a Saturday, a Sunday or a day on which
banking institutions in New York, New York are required by law, regulation or
executive order to remain closed.

            "LIQUIDATED DAMAGES" shall have the meaning set forth in Section
4(a) hereof.

            "LOSSES" shall have the meaning set forth in Section 7(a) hereof.

            "NASD" shall have the meaning set forth in Section 5(s) hereof.

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            "NOTES" shall have the meaning set forth in the second introductory
paragraph hereto.

            "PARTICIPANT" shall have the meaning set forth in Section 7(a)
hereof.

            "PARTICIPATING BROKER-DEALER" shall have the meaning set forth in
Section 2(b) hereof.

            "PERSON" shall mean an individual, corporation, partnership, joint
venture association, joint stock company, trust, unincorporated limited
liability company, government or any agency or political subdivision thereof or
any other entity.

            "PRIVATE EXCHANGE" shall have the meaning set forth in Section 2(b)
hereof.

            "PRIVATE EXCHANGE NOTES" shall have the meaning set forth in Section
2(b) hereof.

            "PROSPECTUS" shall mean the prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any 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, 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.

            "PURCHASE AGREEMENT" shall have the meaning set forth in the second
introductory paragraph hereof.

            "RECORDS" shall have the meaning set forth in Section 5(n) hereof.

            "REGISTRABLE NOTES" shall mean each Note upon its original issuance
and at all times subsequent thereto, each Exchange Note as to which Section
2(c)(iv) hereof is applicable upon original issuance and at all times subsequent
thereto and each Private Exchange Note upon original issuance thereof and at all
times subsequent thereto, in each case until (i) a Registration Statement (other
than, with respect to any Exchange Note as to which Section 2(c)(iv) hereof is
applicable, the Exchange Offer Registration Statement) covering such Note,
Exchange Note or Private Exchange Note has been declared effective by the
Commission and such Note, Exchange Note or such Private Exchange Note, as the
case may be, has been disposed of in accordance with such effective Registration
Statement, (ii) such Note has been exchanged pursuant to the Exchange Offer for
an Exchange Note or Exchange Notes that may be resold without restriction under
state and federal securities laws, (iii) such Note, Exchange Note or Private
Exchange Note, as the case may be, ceases to be outstanding for purposes of the
Indenture or (iv) such Note, Exchange Note or Private Exchange Note has been
sold in compliance with Rule 144 or is salable pursuant to Rule 144(k).

            "REGISTRATION DEFAULT" shall have the meaning set forth in Section
4(a) hereof.

            "REGISTRATION STATEMENT" shall mean any appropriate registration
statement of the Issuers covering any of the Registrable Notes filed with the
Commission under the Securities Act, and all amendments and supplements to any
such Registration Statement, including post-effective

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amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

            "REQUESTING PARTICIPATING BROKER-DEALER" shall have the meaning set
forth in Section 2(b) hereof.

            "RULE 144" shall mean Rule 144 promulgated 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 Commission providing for
offers and sales of securities made in compliance therewith resulting in offers
and sales by subsequent holders that are not affiliates of an issuer of such
securities being free of the registration and prospectus delivery requirements
of the Securities Act.

            "RULE 144A" shall mean Rule 144A promulgated 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 Commission.

            "RULE 415" shall mean Rule 415 promulgated under the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission.

            "SECURITIES ACT" shall mean the Securities Act of 1933, as amended,
and the rules and regulations of the Commission promulgated thereunder.

            "SHELF FILING EVENT" shall have the meaning set forth in Section
2(c) hereof.

            "SHELF REGISTRATION STATEMENT" shall have the meaning set forth in
Section 3(b) hereof.

            "SUBSEQUENT SHELF REGISTRATION STATEMENT" shall have the meaning set
forth in Section 3(b) hereof.

            "TIA" shall mean the Trust Indenture Act of 1939, as amended.

            "TRUSTEE" shall mean the trustee under the Indenture and the trustee
(if any) under any indenture governing the Exchange Notes and Private Exchange
Notes.

             "UNDERWRITTEN REGISTRATION OR UNDERWRITTEN OFFERING" shall mean a
registration in which securities of the Company are sold to an underwriter for
reoffering to the public.

      SECTION 2. EXCHANGE OFFER

            (a) The Issuers shall (i) file a Registration Statement (the
"Exchange Offer Registration Statement") within 90 days after the Issue Date
with the Commission on an appropriate registration form with respect to a
registered offer (the "Exchange Offer") to exchange any and all of the
Registrable Notes for a like aggregate principal amount of notes (including the
guarantees with respect thereto, the "Exchange Notes") that are identical in all
material respects to the Notes (except

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that the Exchange Notes shall not contain terms with respect to transfer
restrictions or Liquidated Damages upon a Registration Default), (ii) use their
respective reasonable best efforts to cause the Exchange Offer Registration
Statement to be declared effective under the Securities Act within 150 days
after the Issue Date and (iii) use their respective reasonable best efforts to
complete the Exchange Offer within 180 days after the Issue Date. Promptly after
the Exchange Offer Registration Statement being declared effective by the
Commission, the Company will offer the Exchange Notes in exchange for surrender
of the Notes. The Company shall keep the Exchange Offer open for not less than
20 Business Days (or longer if required by applicable law) after the date notice
of the Exchange Offer is mailed to Holders.

            Each Holder that participates in the Exchange Offer will be required
to represent to the Company in writing that (i) any Exchange Notes to be
received by it will be acquired in the ordinary course of its business, (ii) it
has no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange Notes in
violation of the provisions of the Securities Act, (iii) it is not an affiliate
(as defined in Rule 405 under the Securities Act) of any Issuer or, if it is an
affiliate, it will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (iv) if such Holder
is not a broker-dealer, it is not engaged in, and does not intend to engage in,
a distribution of Exchange Notes and (v) if such Holder is a broker-dealer that
will receive Exchange Notes for its own account in exchange for Notes that were
acquired as a result of market-making or other trading activities, it will
deliver a prospectus in connection with any resale of such Exchange Notes.

            (b) The Company and the Initial Purchasers acknowledge that the
staff of the Commission has taken the position that any broker-dealer that
elects to exchange Notes that were acquired by such broker-dealer for its own
account as a result of market-making or other trading activities for Exchange
Notes in the Exchange Offer (a "PARTICIPATING BROKER-DEALER") may be deemed to
be an "underwriter" within the meaning of the Securities Act and must deliver a
prospectus meeting the requirements of the Securities Act in connection with any
resale of such Exchange Notes (other than a resale of an unsold allotment
resulting from the original offering of the Notes).

            The Company and the Initial Purchasers also acknowledge that the
staff of the Commission has taken the position that if the Prospectus contained
in the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating
Broker-Dealers may resell the Exchange Notes, without naming the Participating
Broker-Dealers or specifying the amount of Exchange Notes owned by them, such
Prospectus may be delivered by Participating Broker-Dealers to satisfy their
prospectus delivery obligations under the Securities Act in connection with
resales of Exchange Notes for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.

            In light of the foregoing, if requested by a Participating
Broker-Dealer (a "REQUESTING PARTICIPATING BROKER-DEALER"), the Issuers agree to
use their reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective for a period of up to 180 days after the date
on which the Exchange Offer Registration Statement is declared effective, plus
the length of any Delay Period, as defined in Section 5 hereof (such period, the
"APPLICABLE PERIOD"), or such earlier (date as all Requesting Participating
Broker-Dealers shall have notified the Company in writing that

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such Requesting Participating Broker-Dealers have resold all Exchange Notes
acquired in the Exchange Offer. The Company shall include a plan of distribution
in such Exchange Offer Registration Statement that meets the requirements set
forth in the preceding paragraph.

            If, prior to consummation of the Exchange Offer, any Holder holds
any Notes acquired by it that have, or that are reasonably likely to be
determined to have, the status of an unsold allotment in an initial
distribution, or if any Holder is not entitled to participate in the Exchange
Offer, the Company upon the request of any such Holder shall simultaneously with
the delivery of the Exchange Notes in the Exchange Offer, issue and deliver to
any such Holder, in exchange (the "PRIVATE EXCHANGE") for such Notes held by any
such Holder, a like principal amount of notes (the "PRIVATE EXCHANGE NOTES") of
the Company that are identical in all material respects to the Exchange Notes.
The Private Exchange Notes shall be issued pursuant to the same indenture as the
Exchange Notes and bear the same CUSIP number as the Exchange Notes.

            In connection with the Exchange Offer, the Company shall:

            (1) mail or cause to be mailed to each Holder entitled to
      participate in the Exchange Offer a copy of the Prospectus forming part of
      the Exchange Offer Registration Statement, together with an appropriate
      letter of transmittal and related documents;

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

            (3) 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

            (4) otherwise comply in all material respects with all applicable
      laws, rules and regulations.

            As soon as practicable after the close of the Exchange Offer and the
Private Exchange, if any, the Company shall:

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

            (2) deliver or cause to be delivered to the Trustee for cancellation
      all Notes so accepted for exchange; and

            (3) cause the Trustee to authenticate and deliver promptly to each
      Holder of Notes, Exchange Notes or Private Exchange Notes, as the case may
      be, equal in principal amount to the Notes of such Holder so accepted for
      exchange.

            The Exchange Offer and the Private Exchange shall not be subject to
any conditions, other than that (i) the Exchange Offer or Private Exchange, as
the case may be, does not violate applicable law or any applicable
interpretation of the staff of the Commission, (ii) no action or proceeding

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shall have been instituted or threatened in any court or by any governmental
agency which might materially impair the ability of the Company to proceed with
the Exchange Offer or the Private Exchange, and no material adverse development
shall have occurred in any existing action or proceeding with respect to the
Company and (iii) all governmental approvals shall have been obtained, which
approvals the Company deems necessary for the consummation of the Exchange Offer
or Private Exchange.

            The Exchange Notes and the Private Exchange Notes shall be issued
under (i) the Indenture or (ii) an indenture identical in all material respects
to the Indenture (in either case, with such changes as are necessary to comply
with any requirements of the Commission to effect or maintain the qualification
thereof under the TIA) and which, in either case, has been qualified under the
TIA and shall provide that the Exchange Notes shall not be subject to the
transfer restrictions set forth in the Indenture. The Indenture or such other
indenture shall provide that the Exchange Notes, the Private Exchange Notes and
the Notes shall vote and consent together on all matters as one class and that
none of the Exchange Notes, the Private Exchange Notes or the Notes will have
the right to vote or consent as a separate class on any matter.

            (c) In the event that (i) any changes in law or the applicable
interpretations of the staff of the Commission do not permit the Issuers to
effect the Exchange Offer, (ii) for any reason the Exchange Offer is not
consummated within 180 days of the Issue Date, (iii) any Holder is prohibited by
law or the applicable interpretations of the staff of the Commission from
participating in the Exchange Offer and such Holder so notifies the Company,
(iv) in the case of any Holder that participates in the Exchange Offer, such
Holder does not receive Exchange Notes on the date of the exchange that may be
sold without restriction under state and federal securities laws (other than due
solely to the status of such holder as an affiliate of any Issuer) and such
Holder so notifies the Company, (v) the Initial Purchasers so request with
respect to Notes that have, or that are reasonably likely to be determined to
have, the status of unsold allotments in an initial distribution or (vi) any
Holder of Private Exchange Notes so requests (each such event referred to in
clauses (i) through (vi) of this sentence, a "SHELF FILING EVENT"), then the
Issuers shall file a Shelf Registration Statement pursuant to Section 3 hereof.

      Section 3. Shelf Registration Statement

            If at any time a Shelf Filing Event shall occur, then:

            (a) SHELF REGISTRATION STATEMENT. The Issuers shall file with the
Commission a Registration Statement for an offering to be made on a continuous
basis pursuant to Rule 415 covering all of the Registrable Notes not exchanged
in the Exchange Offer, Private Exchange Notes and Exchange Notes as to which
Section 2(c)(iv) is applicable (the "INITIAL SHELF REGISTRATION STATEMENT"). The
Issuers shall file with the Commission the Initial Shelf Registration Statement
as promptly as practicable and in any event on or prior to 45 days after such
Shelf Filing Event occurs. The Initial Shelf Registration Statement shall be on
Form S-3 or another appropriate form permitting registration of such Registrable
Notes for resale by Holders in the manner or manners designated by them
(including, without limitation, one or more underwritten offerings). The Issuers
shall not permit any securities other than the Registrable Notes to be included
in the Initial Shelf Registration Statement or

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in any Subsequent Shelf Registration Statement (as defined below). The Issuers
shall not be required to file more than one Initial Shelf Registration
Statement.

            The Issuers shall use their respective reasonable best efforts (x)
to cause the Initial Shelf Registration Statement to be declared effective under
the Securities Act on or prior to the 90th day after such Shelf Filing Event
occurs and (y) to keep the Initial Shelf Registration Statement continuously
effective under the Securities Act for the period ending on the date which is
two years from the date it becomes effective (or one year if the Initial Shelf
Registration Statement is filed at the request of an Initial Purchaser), subject
to extension pursuant to the penultimate paragraph of Section 5 hereof (the
"EFFECTIVENESS PERIOD"), or such shorter period ending when (i) all Registrable
Notes covered by the Initial Shelf Registration Statement have been sold in the
manner set forth and as contemplated in the Initial Shelf Registration Statement
or have ceased to be Registrable Notes or (ii) a Subsequent Shelf Registration
Statement covering all of the Registrable Notes covered by and not sold under
the Initial Shelf Registration Statement or an earlier Subsequent Shelf
Registration Statement has been declared effective under the Securities Act;
PROVIDED, HOWEVER, that (i) the Effectiveness Period in respect of the Initial
Shelf Registration Statement shall be extended to the extent required to permit
dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the Securities Act and as otherwise provided herein and (ii) the
Company may suspend the effectiveness of the Initial Shelf Registration
Statement by written notice to the Holders solely as a result of the filing of a
post-effective amendment to the Initial Shelf Registration Statement to
incorporate annual audited financial information with respect to the Company
where such post-effective amendment is not yet effective and must be declared
effective to permit holders to use the related Prospectus.

            (b) SUBSEQUENT SHELF REGISTRATION STATEMENTS. If the Initial Shelf
Registration Statement or any Subsequent Shelf Registration Statement ceases to
be effective for any reason at any time during the Effectiveness Period (other
than because of the sale of all of the securities registered thereunder), the
Issuers shall use their respective reasonable best efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall as soon as practicable after such cessation amend the Initial Shelf
Registration Statement or such Subsequent Shelf Registration Statement, as the
case may be, in a manner 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 Notes covered by and not
sold under the Initial Shelf Registration Statement or such earlier Subsequent
Shelf Registration Statement (each, a "SUBSEQUENT SHELF REGISTRATION
STATEMENT"). If a Subsequent Shelf Registration Statement is filed, the Issuers
shall use their respective reasonable best efforts to cause the Subsequent Shelf
Registration Statement to be declared effective under the Securities Act as soon
as practicable after such filing and to keep such Subsequent Shelf Registration
Statement 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 Statement and any Subsequent Shelf Registration Statement was
previously continuously effective. As used herein, the term "SHELF REGISTRATION
STATEMENT" means the Initial Shelf Registration Statement and any Subsequent
Shelf Registration Statement.

            (c) SUPPLEMENTS AND AMENDMENTS. The Issuers agree to supplement or
make amendments to the Shelf Registration Statement as and when required by the
rules, regulations or instructions applicable to the registration form used for
such Shelf Registration Statement or by the Se-

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curities Act or rules and regulations thereunder for shelf registration, or if
reasonably requested by the Holders of a majority in aggregate principal amount
of the Registrable Notes covered by such Registration Statement or by any
underwriter of such Registrable Notes.

      SECTION 4. LIQUIDATED DAMAGES

            (a) Issuers and the Initial Purchasers agree that the Holders will
suffer damages if the Issuers fail to fulfill their obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the extent of
such damages with precision. Accordingly, the Issuers agree that if:

            (i) the Exchange Offer Registration Statement is not filed with the
      Commission on or prior to the 90th day following the Issue Date, or, if
      that day is not a Business Day, then the next day that is a Business Day,

            (ii) the Exchange Offer Registration Statement is not declared
      effective on or prior to the 150th day following the Issue Date, or, if
      that day is not a Business Day, then the next day that is a Business Day,

            (iii) the Exchange Offer is not completed on or prior to the 180th
      day following the Issue Date, or, if that day is not a Business Day, then
      the next day that is a Business Day, or

            (iv) the Shelf Registration Statement is required to be filed but is
      not filed or declared effective within the time periods set forth herein
      or is declared effective but thereafter ceases to be effective or usable
      prior to the expiration of the Effectiveness Period, except if the Shelf
      Registration Statement ceases to be effective or usable as specifically
      permitted by the penultimate paragraph of Section 5 hereof

(each such event referred to in clauses (i) through (iv) a "REGISTRATION
DEFAULT"), liquidated damages in the form of additional cash interest
("LIQUIDATED DAMAGES") will accrue on the affected Notes and the affected
Exchange Notes, as applicable. The rate of Liquidated Damages will be 0.25% per
annum for the first 90-day period immediately following the occurrence of a
Registration Default, increasing by an additional 0.25% per annum with respect
to each subsequent 90-day period up to a maximum amount of additional interest
of 1.00% per annum, from and including the date on which any such Registration
Default shall occur to, but excluding, the earlier of (1) the date on which all
Registration Defaults have been cured or (2) the date on which all the Notes and
Exchange Notes otherwise become freely transferable by Holders other than
affiliates of the Issuers without further registration under the Securities Act.

            Notwithstanding the foregoing, (1) the amount of Liquidated Damages
payable shall not increase because more than one Registration Default has
occurred and is pending and (2) a Holder of Notes or Exchange Notes who is not
entitled to the benefits of the Shelf Registration Statement (I.E., such Holder
has not elected to include information) shall not be entitled to Liquidated
Damages with respect to a Registration Default that pertains to the Shelf
Registration Statement.

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            (b) The Company shall notify the Trustee within one Business Day
after each and every date on which an event occurs in respect of which
Liquidated Damages are required to be paid (an "EVENT DATE"). Any amounts of
Liquidated Damages due pursuant to this Section 4 will be payable in addition to
any other interest payable from time to time with respect to the Registrable
Notes in cash semi-annually on the interest payment dates specified in the
Indenture (to the holders of record as specified in the Indenture), commencing
with the first such interest payment date occurring after any such Liquidated
Damages commence to accrue. The amount of Liquidated Damages will be determined
in a manner consistent with the calculation of interest under the Indenture.

      SECTION 5. REGISTRATION PROCEDURES

            In connection with the filing of any Registration Statement pursuant
to Section 2 or 3 hereof, the Issuers shall effect such registrations to permit
the sale of the securities covered thereby in accordance with the intended
method or methods of disposition thereof, and pursuant thereto and in connection
with any Registration Statement filed by the Issuers hereunder, the Issuers
shall:

            (a) Prepare and file with the Commission the Registration Statement
      or Registration Statements prescribed by Section 2 or 3 hereof, and use
      their reasonable best efforts to cause each such Registration Statement to
      become effective and remain effective as provided herein; PROVIDED,
      HOWEVER, that, if (1) such filing is pursuant to Section 3 hereof, or (2)
      a Prospectus contained in the Exchange Offer Registration Statement filed
      pursuant to Section 2 hereof is required to be delivered under the
      Securities Act by any Participating Broker-Dealer who seeks to sell
      Exchange Notes during the Applicable Period relating thereto, before
      filing any Registration Statement or Prospectus or any amendments or
      supplements thereto, the Company shall furnish to and afford the Holders
      of the Registrable Notes covered by such Registration Statement or each
      such Participating Broker-Dealer, as the case may be, their counsel and
      the managing underwriters, if any, a reasonable opportunity to review
      copies of all such documents (including copies of any documents to be
      incorporated by reference therein and all exhibits thereto) proposed to be
      filed (in each case at least five Business Days prior to such filing). The
      Issuers shall not file any Registration Statement or Prospectus or any
      amendments or supplements thereto if the Holders of a majority in
      aggregate principal amount of the Registrable Notes covered by such
      Registration Statement, or any such Participating Broker-Dealer, as the
      case may be, their counsel, or the managing underwriters, if any, shall
      reasonably object.

            (b) Prepare and file with the Commission such amendments and
      post-effective amendments to each Initial Shelf Registration Statement or
      Exchange Offer Registration Statement, as the case may be, as may be
      necessary to keep such Registration Statement continuously effective for
      the Effectiveness Period or the Applicable Period, as the case may be;
      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) promulgated
      under the Securities Act; and comply with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all securities
      covered by such Registration Statement as so amended or in such Prospectus
      as so supplemented and with respect to the subsequent resale of any
      securities being sold by a Participating Bro-

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      ker-Dealer covered by any such Prospectus, in each case, in accordance
      with the intended methods of distribution set forth in such Registration
      Statement or Prospectus, as so amended.

            (c) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period relating
      thereto, notify the selling Holders of Registrable Notes, or each such
      Participating Broker-Dealer, as the case may be, their counsel and the
      managing underwriters, if any, as promptly as possible, and, if requested
      by any such Person, confirm such notice in writing, (i) when a Prospectus
      or any Prospectus supplement or post-effective amendment 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
      (including in such notice a written statement that any Holder may, upon
      request, obtain, at the sole expense of the Company, one conformed copy of
      such Registration Statement or post-effective amendment including
      financial statements and schedules, documents incorporated or deemed to be
      incorporated by reference and exhibits), (ii) of the issuance by the
      Commission of any stop order suspending the effectiveness of a
      Registration Statement or of any order preventing or suspending the use of
      any preliminary 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
      Notes or resales of Exchange Notes by Participating Broker-Dealers the
      representations and warranties of the Issuers contained in any agreement
      (including any underwriting agreement) contemplated by Section 5(m) hereof
      cease to be true and correct in all material respects, (iv) of the receipt
      by any of the Issuers of any notification with respect to the suspension
      of the qualification or exemption from qualification of a Registration
      Statement or any of the Registrable Notes or the Exchange Notes for offer
      or sale in any jurisdiction, or the initiation or threatening of any
      proceeding for such purpose, (v) of the happening of any event, the
      existence of any condition or any information becoming known to any Issuer
      that makes any statement made in such Registration Statement or related
      Prospectus or any document incorporated or deemed to be incorporated
      therein by reference untrue in any material respect or that requires the
      making of any changes in or amendments or supplements to such Registration
      Statement, Prospectus or documents so that, in the case of the
      Registration Statement, 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 not misleading, and
      that in the case of the Prospectus, 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 the
      light of the circumstances under which they were made, not misleading. and
      (vi) of the Company's determination that a post-effective amendment to a
      Registration Statement would be appropriate.

            (d) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period, use their
      reasonable best efforts to prevent the issuance of any order suspending
      the effectiveness of a Regis-

                                      -11-
<PAGE>

      tration 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 Registrable Notes or the Exchange Notes, as
      the case may be, for sale in any jurisdiction, and, if any such order is
      issued, to use their reasonable best efforts to obtain the withdrawal of
      any such order at the earliest practicable moment.

            (e) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 or (2) a Prospectus contained in the Exchange Offer Registration
      Statement filed pursuant to Section 2 hereof is required to be delivered
      under the Securities Act by any Participating Broker-Dealer who seeks to
      sell Exchange Notes during the Applicable Period and if requested by the
      managing underwriter or underwriters (if any), the Holders of a majority
      in aggregate principal amount of the Registrable Notes covered by such
      Registration Statement or any Participating Broker-Dealer, as the case may
      be, (i) promptly incorporate in such Registration Statement or Prospectus
      a prospectus supplement or post-effective amendment such information as
      the managing underwriter or underwriters (if any), such Holders or any
      Participating Broker-Dealer, as the case may be (based upon advice of
      counsel), determine is reasonably necessary to be included therein and
      (ii) make all required filings of such prospectus supplement or such
      post-effective amendment as soon as practicable after the Company has
      received notification of the matters to be incorporated in such prospectus
      supplement or post-effective amendment; PROVIDED, HOWEVER, that the
      Issuers shall not be required to take any action hereunder that would, in
      the written opinion of counsel to the Company, violate applicable laws.

            (f) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period, furnish to
      each selling Holder of Registrable Notes or each such Participating
      Broker-Dealer, as the case may be, who so requests, their counsel and each
      managing underwriter, if any, at the sole expense of the Company, one
      conformed copy of the Registration Statement or Registration Statements
      and each post-effective amendment thereto, including financial statements
      and schedules, and, if requested, all documents incorporated or deemed to
      be incorporated therein by reference and all exhibits.

            (g) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period, deliver to
      each selling Holder of Registrable Notes or each such Participating
      Broker-Dealer, as the case may be, their respective counsel, and the
      underwriters, if any, at the sole expense of the Company, as many copies
      of the Prospectus or Prospectuses (including each form of preliminary
      prospectus) and each amendment or supplement thereto and any documents
      incorporated by reference therein as such Persons may reasonably request;
      and, subject to the last paragraph of this Section 5, the Issuers hereby
      consent to the use of such Prospectus and each amendment or supplement
      thereto by each of the selling Holders of Registrable Notes or each such
      Par-

                                      -12-
<PAGE>

      ticipating 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 Notes or the sale by Participating Broker-Dealers
      of the Exchange Notes.

            (h) Prior to any public offering of Registrable Notes or Exchange
      Notes or any delivery of a Prospectus contained in the Exchange Offer
      Registration Statement by any Participating Broker-Dealer who seeks to
      sell Exchange Notes during the Applicable Period, use their reasonable
      best efforts to register or qualify, and to cooperate with the selling
      Holders of Registrable Notes or each such Participating Broker-Dealer, as
      the case may be, the managing underwriter or underwriters, if any, and
      their respective counsel in connection with the registration or
      qualification (or exemption from such registration or qualification) of
      such Registrable Notes or Exchange Notes, as the case may be, 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 underwriter or underwriters reasonably
      request; PROVIDED, HOWEVER, that where Exchange Notes or Registrable Notes
      are offered other than through an underwritten offering, the Company
      agrees to cause the Company's counsel to perform Blue Sky investigations
      and file registrations and qualifications required to be filed pursuant to
      this Section 5(h), 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 reasonably necessary or advisable to enable the disposition in
      such jurisdictions of such Exchange Notes or Registrable Notes covered by
      the applicable Registration Statement; PROVIDED, HOWEVER, that no Issuer
      shall be required to (A) qualify generally to do business in any
      jurisdiction where it is not then so qualified, (B) take any action that
      would subject it to general service of process in any such jurisdiction
      where it is not then so subject or (C) subject itself to taxation in
      excess of a nominal dollar amount in any such jurisdiction where it is not
      then so subject.

            (i) If a Shelf Registration Statement is filed pursuant to Section 3
      hereof, cooperate with the selling Holders of Registrable Notes and the
      managing underwriter or underwriters, if any, to facilitate the timely
      preparation and delivery of certificates representing Registrable Notes 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;
      and enable such Registrable Notes to be in such denominations and
      registered in such names as the managing underwriter or underwriters, if
      any, or selling Holders may request at least two Business Days prior to
      any sale of such Registrable Notes or Exchange Notes.

            (j) Use their reasonable best efforts to cause the Registrable Notes
      or Exchange Notes covered by any Registration Statement to be registered
      with or approved by such other governmental agencies or authorities as may
      be reasonably necessary to enable the seller or sellers thereof or the
      underwriter or underwriters, if any, to consummate the disposition of such
      Registrable Notes or Exchange Notes, except as may be required solely as a
      consequence of the nature of such selling Holder's business, in which case
      the Company will cooperate in all reasonable respects at such Holder's
      expense with the filing of such Registration Statement and the granting of
      such approvals.

                                      -13-
<PAGE>

            (k) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period, upon the
      occurrence of any event contemplated by Section 5(c)(v) or 5(c)(vi)
      hereof, as promptly as practicable prepare and (subject to Section 5(a)
      and the penultimate paragraph of this Section 5) file with the Commission,
      at the sole expense of the Company, 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 Notes being sold
      thereunder or to the purchasers of the Exchange Notes to whom such
      Prospectus will be delivered by a Participating Broker-Dealer, any 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 the light of the circumstances under which
      they were made, not misleading.

            (l) Prior to the effective date of the first Registration Statement
      relating to the Registrable Notes, (i) provide the Trustee with
      certificates for the Registrable Notes in a form eligible for deposit with
      The Depository Trust Company and (ii) provide a CUSIP number for the
      Registrable Notes.

            (m) In connection with any underwritten offering of Registrable
      Notes pursuant to a Shelf Registration Statement, enter into an
      underwriting agreement as is customary in underwritten offerings of debt
      securities similar to the Notes and take all such other actions as are
      reasonably requested by the managing underwriter or underwriters in order
      to expedite or facilitate the registration or the disposition of such
      Registrable Notes and, in such connection, (i) make such representations
      and warranties to, and covenants with, the underwriters with respect to
      the business of the Company and its subsidiaries (including any acquired
      business, properties or entity, if applicable) and the Registration
      Statement, Prospectus and documents, if any, incorporated or deemed to be
      incorporated by reference therein, in each case, as are customarily made
      by issuers to underwriters in underwritten offerings of debt securities
      similar to the Notes, but which are in any event substantially similar to
      those set forth in the Purchase Agreement, and confirm the same in writing
      if and when requested; (ii) use their reasonable best efforts to obtain
      the written opinions of counsel to the Company and written updates thereof
      in form, scope and substance reasonably satisfactory to the managing
      underwriter or underwriters, addressed to the underwriters covering the
      matters customarily covered in opinions requested in underwritten
      offerings and such other matters as may be reasonably requested by the
      managing underwriter or underwriters, but which are in any event
      substantially similar to those rendered in connection with the
      transactions contemplated by the Purchase Agreement; (iii) use their
      reasonable best efforts to obtain "cold comfort" letters and updates
      thereof in form, scope and substance reasonably satisfactory to the
      managing underwriter or underwriters from the independent certified public
      accountants of the Company (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 or incorporated by
      reference in the Registra-

                                      -14-
<PAGE>

      tion Statement), addressed to each of the underwriters, such letters to be
      in customary form and covering matters of the type customarily covered in
      "cold comfort" letters in connection with underwritten offerings, but
      which are in any event substantially similar to those delivered in
      connection with the transactions contemplated by the Purchase Agreement;
      and (iv) if an underwriting agreement is entered into, the same shall
      contain indemnification provisions and procedures no less favorable than
      those set forth in Section 7 hereof (or such other provisions and
      procedures acceptable to Holders of a majority in aggregate principal
      amount of Registrable Notes covered by such Registration Statement and the
      managing underwriter or underwriters or agents) with respect to all
      parties to be indemnified pursuant to said Section. The above shall be
      done at each closing under such underwriting agreement, or as and to the
      extent required thereunder.

            (n) If (1) a Shelf Registration Statement is filed pursuant to
      Section 3 hereof or (2) a Prospectus contained in the Exchange Offer
      Registration Statement filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any Participating Broker-Dealer
      who seeks to sell Exchange Notes during the Applicable Period, make
      available for inspection by any selling Holder of such Registrable Notes
      being sold or each such Participating Broker-Dealer, as the case may be,
      any underwriter participating in any such disposition of Registrable
      Notes, if any, and any attorney, accountant or other agent retained by any
      such selling Holder or each such Participating Broker-Dealer, as the case
      may be, or underwriter (collectively, the "INSPECTORS"), at the offices
      where normally kept, during reasonable business hours, all financial and
      other records, pertinent corporate documents and instruments of the
      Company and its subsidiaries (collectively, the "RECORDS") as shall be
      reasonably necessary to enable them to exercise any applicable due
      diligence responsibilities, and cause the officers, directors and
      employees of the Company and its subsidiaries to supply all information
      reasonably requested by any such Inspector in connection with such
      Registration Statement and Prospectus. Each Inspector shall agree in
      writing that it will not disclose any records that the Company determines,
      in good faith, to be confidential and that it notifies the Inspectors in
      writing are confidential unless (i) the disclosure of such Records is
      necessary to avoid or correct a misstatement or omission in such
      Registration Statement or Prospectus; PROVIDED, HOWEVER, that no Inspector
      shall make any such disclosure unless the Company has first refused to do
      so with reasonable promptness (after taking into consideration the
      Company's rights under the penultimate paragraph of this Section 5), (ii)
      the release of such Records is ordered pursuant to a subpoena or other
      order from a court of competent jurisdiction, (iii) disclosure of such
      information is necessary or advisable in connection with any action,
      claim, suit or proceeding, directly or indirectly, involving such
      Inspector and arising out of, based upon, relating to, or involving this
      Agreement or the Purchase Agreement, or any transactions contemplated
      hereby or thereby or arising hereunder or thereunder, or (iv) the
      information in such Records has been made generally available to the
      public; provided, however, that such Inspector shall consult with the
      Company prior to making such disclosure (if practicable) and shall take
      such actions as are reasonably necessary to protect the confidentiality of
      such information (if practicable) to the extent such action is otherwise
      not inconsistent with, an impairment of or in derogation of the rights and
      interests of the Holder or any Inspector.

                                      -15-
<PAGE>

            (o) Provide an indenture trustee for the Registrable Notes or the
      Exchange Notes, as the case may be, and cause the Indenture or the trust
      indenture provided for in Section 2(b) hereof to be qualified under the
      TIA not later than the effective date of the Exchange Offer or the first
      Registration Statement relating to the Registrable Notes; and in
      connection therewith, cooperate with the trustee under any such indenture
      and the Holders of the Registrable Notes or Exchange Notes, as applicable,
      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 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 Commission to
      enable such indenture to be so qualified in a timely manner.

            (p) Comply with all applicable rules and regulations of the
      Commission and make generally available to the Company's securityholders
      earnings statements satisfying the provisions of Section 11(a) of the
      Securities Act and Rule 158 thereunder (or any similar rule promulgated
      under the Securities Act) (i) commencing at the end of any fiscal quarter
      in which Registrable Notes or Exchange Notes 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.

            (q) Upon the request of a Holder, upon consummation of the Exchange
      Offer or a Private Exchange, use their reasonable best efforts to obtain
      an opinion of counsel to the Issuers, in a form customary for underwritten
      transactions, addressed to the Trustee for the benefit of all Holders of
      Registrable Notes participating in the Exchange Offer or the Private
      Exchange, as the case may be, that the Exchange Notes or Private Exchange
      Notes, as the case may be, and the related indenture constitute legal,
      valid and binding obligations of the Issuers, enforceable against the
      Issuers in accordance with its respective terms, subject to customary
      exceptions and qualifications.

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

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

            (t) Use their reasonable best efforts to take all other steps
      necessary or advisable to effect the registration of the Exchange Notes
      and/or Registrable Notes covered by a Registration Statement contemplated
      hereby.

                                      -16-
<PAGE>

            The Company may require each seller of Registrable Notes or Exchange
Notes as to which any registration is being effected to furnish to the Company
such information regarding such seller and the distribution of such Registrable
Notes or Exchange Notes as the Company may, from time to time, reasonably
request. The Company may exclude from such registration the Registrable Notes or
Exchange Notes of any seller so long as such seller fails to furnish such
information within a reasonable time after receiving such request. Each seller
as to which any Shelf Registration Statement is being effected agrees to furnish
promptly to the Company all information required to be disclosed in order to
make any information previously furnished to the Company by such seller not
materially misleading.

            If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder, to the effect that the holding
by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the securities covered thereby and that
such holding does not imply that such Holder will assist in meeting any future
financial requirements of the Company, or (ii) in the event that such reference
to such Holder by name or otherwise is not required by the Securities Act or any
similar federal statute then in force, the deletion of the reference to such
Holder in any amendment or supplement to the Registration Statement filed or
prepared subsequent to the time that such reference ceases to be required.

            Each Holder of Registrable Notes and each Participating
Broker-Dealer agrees by acquisition of such Registrable Notes or Exchange Notes
that, upon actual receipt of any notice from the Company (x) of the happening of
any event of the kind described in Section 5(c)(ii), 5(c)(iv), 5(c)(v), or
5(c)(vi) hereof, or (y) that the Board of Directors of the Company (the "BOARD
OF DIRECTORS") has resolved that the Company has a BONA FIDE business purpose
for doing so, then the Company may delay the filing or the effectiveness of the
Exchange Offer Registration Statement or the Shelf Registration Statement (if
not then filed or effective, as applicable) and shall not be required to
maintain the effectiveness thereof or amend or supplement the Exchange Offer
Registration Statement or the Shelf Registration Statement, in all cases, for a
period (a "DELAY PERIOD") expiring upon the earlier to occur of (i) in the case
of the immediately preceding clause (x), such Holder's or Participating
Broker-Dealer's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof or until it is advised in writing (the
"ADVICE") by the Company that the use of the applicable Prospectus may be
resumed, and has received copies of any amendments or supplements thereto or
(ii) in the case of the immediately preceding clause (y), the date which is the
earlier of (A) the date on which such business purpose ceases to interfere with
the Company's obligations to file or maintain the effectiveness of any such
Registration Statement pursuant to this Agreement or (B) 60 days after the
Company notifies the Holders of such good faith determination. There shall not
be more than 60 days of Delay Periods during any 12-month period. Each of the
Effectiveness Period and the Applicable Period, if applicable, shall be extended
by the number of days during any Delay Period. Any Delay Period will not alter
the obligations of the Company to pay Liquidated Damages under the circumstances
set forth in Section 4 hereof.

            In the event of any Delay Period pursuant to clause (y) of the
preceding paragraph, notice shall be given as soon as practicable after the
Board of Directors makes such a determination of

                                      -17-
<PAGE>

the need for a Delay Period and shall state, to the extent practicable, an
estimate of the duration of such Delay Period and shall advise the recipient
thereof of the agreement of such Holder provided in the next succeeding
sentence. Each Holder, by his acceptance of any Registrable Note, agrees that
during any Delay Period, each Holder will discontinue disposition of such Notes
or Exchange Notes covered by such Registration Statement or Prospectus or
Exchange Notes to be sold by such Holder or Participating Broker-Dealer, as the
case may be.

      SECTION 6. REGISTRATION EXPENSES

            All fees and expenses incident to the performance of or compliance
with this Agreement by the Issuers shall be borne by the Issuers, whether or not
the Exchange Offer Registration Statement or the Shelf Registration Statement is
filed or becomes effective or the Exchange Offer is consummated, 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
in connection with an underwritten offering 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 Notes or Exchange Notes and determination
of the eligibility of the Registrable Notes or Exchange Notes for investment
under the laws of such jurisdictions (x) where the holders of Registrable Notes
are located, in the case of an Exchange Offer, or (y) as provided in Section
5(h) hereof, in the case of a Shelf Registration Statement or in the case of
Exchange Notes to be sold by a Participating Broker-Dealer during the Applicable
Period)), (ii) printing expenses, including, without limitation, expenses of
printing certificates for Registrable Notes or Exchange Notes in a form eligible
for deposit with The Depository Trust Company and of printing prospectuses if
the printing of prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or in
respect of Exchange Notes to be sold by any Participating Broker-Dealer during
the Applicable Period, as the case may be, (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Issuers and
reasonable fees and disbursements of one special counsel for all of the sellers
of Registrable Notes (exclusive of any counsel retained pursuant to Section 7
hereof), (v) fees and disbursements of all independent certified public
accountants referred to in Section 5(m)(iii) hereof (including, without
limitation, the expenses of any special audit and "cold comfort" letters
required by or incident to such performance), (vi) Securities Act liability
insurance, if the Company desires such insurance, (vii) fees and expenses of all
other Persons retained by any of the Issuers, (viii) internal expenses of the
Issuers (including, without limitation, all salaries and expenses of officers
and employees of any of the Issuers performing legal or accounting duties), (ix)
the expense of any audit, (x) the fees and expenses incurred in connection with
the listing of the securities to be registered on any securities exchange, and
the obtaining of a rating of the securities, in each case, if applicable, and
(xi) the expenses relating to printing, word processing and distributing all
Registration Statements, underwriting agreements, indentures and any other
documents necessary in order to comply with this Agreement. Notwithstanding the
foregoing or anything to the contrary, each Holder shall pay all underwriting
discounts and commissions of any underwriters with respect to any Registrable
Notes sold by or on behalf of it.

                                      -18-
<PAGE>

      SECTION 7. INDEMNIFICATION

            (a) Each Issuer, jointly and severally, agrees to indemnify and hold
harmless each Holder of Registrable Notes and each Participating Broker-Dealer
selling Exchange Notes during the Applicable Period, each Person, if any, who
controls any such Person within the meaning of Section 15 of the Securities Act
or Section 20(a) of the Exchange Act, the agents, employees, officers and
directors of each Holder and each such Participating Broker-Dealer and the
agents, employees, officers and directors of any such controlling Person (each,
a "PARTICIPANT") from and against any and all losses, liabilities, claims,
damages and expenses whatsoever (including, but not limited to, reasonable
attorneys' fees and any and all reasonable expenses whatsoever incurred in
investigating, preparing or defending against any litigation, commenced or
threatened, or any claim whatsoever, and any and all reasonable amounts paid in
settlement of any claim or litigation) (collectively, "LOSSES") to which they or
any of them may become subject under the Securities Act, the Exchange Act or
otherwise insofar as such Losses (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment thereto) or
Prospectus (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) or any preliminary prospectus, or caused by,
arising out of or based upon 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 case of the Prospectus, in the light of the circumstances under
which they were made, not misleading, PROVIDED that the foregoing indemnity
shall not be available to any Participant insofar as such Losses are caused by
any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with information relating to such Participant
furnished to the Company in writing by or on behalf of such Participant
expressly for use therein. This indemnity agreement will be in addition to any
liability that the Issuers may otherwise have, including, but not limited to,
liability under this Agreement.

            (b) Each Participant agrees, severally and not jointly, to indemnify
and hold harmless each Issuer, each Person, if any, who controls any Issuer
within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act, and each of their respective agents, employees, officers and
directors and the agents, employees, officers and directors of any such
controlling Person from and against any Losses to which they or any of them may
become subject under the Securities Act, the Exchange Act or otherwise insofar
as such Losses (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment thereto) or Prospectus (as amended
or supplemented if the Company shall have furnished any amendments or
supplements thereto) or any preliminary prospectus, or caused by, arising out of
or based upon 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 case of the Prospectus, in the light of the circumstances under which they
were made, not misleading, in each case to the extent, but only to the extent,
that any such Loss arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in reliance upon
and in conformity with information relating to such Participant furnished in
writing to the Company by or on behalf of such Participant expressly for use
therein.

            (c) Promptly after receipt by an indemnified party under subsection
7(a) or 7(b) above of notice of the commencement of any action, suit or
proceeding (collectively, an "ACTION"),

                                      -19-
<PAGE>

such indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under such subsection, notify each party against
whom indemnification is to be sought in writing of the commencement of such
action (but the failure so to notify an indemnifying party shall not relieve
such indemnifying party from any liability that it may have under this Section 7
except to the extent that it has been prejudiced in any material respect by such
failure). In case any such action is brought against any indemnified party, and
it notifies an indemnifying party of the commencement of such action, the
indemnifying party will be entitled to participate in such action, and to the
extent it may elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense of such action with counsel satisfactory to such indemnified
party. Notwithstanding the foregoing, the indemnified party or parties shall
have the right to employ its or their own counsel in any such action, but the
reasonable fees and expenses of such counsel shall be at the expense of such
indemnified party or parties unless (i) the employment of such counsel shall
have been authorized in writing by the indemnifying parties in connection with
the defense of such action, (ii) the indemnifying parties shall not have
employed counsel to take charge of the defense of such action within a
reasonable time after notice of commencement of the action, or (iii) the named
parties to such action (including any impleaded parties) include such
indemnified party and the indemnifying party or parties (or such indemnifying
parties have assumed the defense of such action), and such indemnified party or
parties shall have reasonably concluded that there may be defenses available to
it or them that are different from or additional to those available to one or
all of the indemnifying parties (in which case the indemnifying parties shall
not have the right to direct the defense of such action on behalf of the
indemnified party or parties), in any of which events such reasonable fees and
expenses of counsel shall be borne by the indemnifying parties. In no event
shall the indemnifying party be liable for the fees and expenses of more than
one counsel (together with appropriate local counsel) designated by the
indemnified party or parties at any time for all indemnified parties in
connection with any one action or separate but substantially similar or related
actions arising in the same jurisdiction out of the same general allegations or
circumstances. An indemnifying party shall not be liable for any settlement of
any claim or action effected without its written consent, which consent may not
be unreasonably withheld. Notwithstanding the foregoing sentence, if at any time
an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by paragraph
(a) or (b) of this Section 7, then the indemnifying party agrees that it shall
be liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 45 business days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance
with such request prior to the date of such settlement and (iii) such
indemnified party shall have given the indemnifying party at least 45 days prior
notice of its intention to settle. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding.

            (d) In order to provide for contribution in circumstances in which
the indemnification provided for in this Section 7 is for any reason held to be
unavailable from the indemnifying party, or is insufficient to hold harmless a
party indemnified under this Section 7, each indemnifying party shall contribute
to the amount paid or payable by such indemnified party as a result of such ag-

                                      -20-
<PAGE>

gregate Losses (i) in such proportion as is appropriate to reflect the relative
benefits received by each indemnifying party, on the one hand, and each
indemnified party, on the other hand, from the sale of the Notes to the Initial
Purchasers or the resale of the Registrable Notes by such Holder, as applicable,
or (ii) if such allocation is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to above but also the relative fault of each indemnified party, on the one hand,
and each indemnifying party, on the other hand, in connection with the
statements or omissions that resulted in such Losses, as well as any other
relevant equitable considerations. The relative benefits received by the
Issuers, on the one hand, and each Participant, on the other hand, shall be
deemed to be in the same proportion as (x) the total proceeds from the sale of
the Notes to the Initial Purchasers (net of discounts and commissions but before
deducting expenses) received by the Issuers are to (y) the total net profit
received by such Participant in connection with the sale of the Registrable
Notes. The relative fault of the 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 the Issuers or such Participant and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission or alleged statement or omission.

            (e) The parties agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
or by any other method of allocation that does not take into account the
equitable considerations referred to above. Notwithstanding the provisions of
this Section 7, (i) in no case shall any Participant be required to contribute
any amount in excess of the amount by which the net profit received by such
Participant in connection with the sale of the Registrable Notes exceeds the
amount of any damages that such Participant has otherwise been required to pay
by reason of any untrue or alleged untrue statement or omission or alleged
omission and (ii) no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of
this Section 7, each Person, if any, who controls any Participant within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act and each
director, officer, employee and agent of such Participant shall have the same
rights to contribution as such Participant, and each Person, if any, who
controls any Issuer within the meaning of Section 15 of the Act or Section 20(a)
of the Exchange Act and each director, officer, employee and agent of such
Issuer shall have the same rights to contribution as such Issuer. Any party
entitled to contribution will, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim for contribution
may be made against another party or parties under this Section 7, notify such
party or parties from whom contribution may be sought, but the omission to so
notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this
Section 7 or otherwise, except to the extent that it has been prejudiced in any
material respect by such failure; PROVIDED, HOWEVER, that no additional notice
shall be required with respect to any action for which notice has been given
under this Section 7 for purposes of indemnification. Anything in this section
to the contrary notwithstanding, no party shall be liable for contribution with
respect to any action or claim settled without its written consent; PROVIDED,
HOWEVER, that such written consent was not unreasonably withheld.

                                      -21-
<PAGE>

      SECTION 8. RULES 144 AND 144A

            The Company covenants that it will file the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act and,
if at any time the Company is not required to file such reports, it will, upon
the request of any Holder or beneficial owner of Registrable Notes, make
available such information necessary to permit sales pursuant to Rule 144A under
the Securities Act. The Issuers further covenant that they will take such
further action as any Holder of Registrable Notes may reasonably request from
time to time to enable such Holder to sell Registrable Notes without
registration under the Securities Act within the limitation of the exemptions
provided by (a) Rule 144(k) and Rule 144A under the Securities Act, as such
Rules may be amended from time to time, or (b) any similar rule or regulation
hereafter adopted by the Commission.

      SECTION 9. UNDERWRITTEN REGISTRATIONS

            If any of the Registrable Notes covered by any Shelf Registration
Statement 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 Notes included in such offering and shall be reasonably acceptable
to the Company.

            No Holder of Registrable Notes may participate in any underwritten
registration hereunder if such Holder does not (a) agree to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
complete and execute all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

      SECTION 10. MISCELLANEOUS

            (a) NO INCONSISTENT AGREEMENTS. The Issuers have not entered, as of
the date hereof, and shall not enter, after the date of this Agreement, into any
agreement with respect to any of their securities that is inconsistent with the
rights granted to the Holders of Registrable Notes in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not conflict with and are not inconsistent with, in any
material respect, the rights granted to the holders of any of the Issuers' other
issued and outstanding securities under any such agreements. The Issuers have
not entered and will not enter into any agreement with respect to any of their
securities which will grant to any Person piggy-back registration rights with
respect to any Registration Statement.

            (b) ADJUSTMENTS AFFECTING REGISTRABLE NOTES. The Issuers shall not,
directly or indirectly, take any action with respect to the Registrable Notes as
a class that would adversely affect the ability of the Holders of Registrable
Notes to include such Registrable Notes in a registration undertaken pursuant to
this Agreement.

                                      -22-
<PAGE>

            (c) AMENDMENTS AND WAIVERS. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given except pursuant to a written agreement
duly signed and delivered by (I) the Issuers and (II)(A) the Holders of not less
than a majority in aggregate principal amount of the then outstanding
Registrable Notes and (B) in circumstances that would adversely affect the
Participating Broker-Dealers, the Participating Broker-Dealers holding not less
than a majority in aggregate principal amount of the Exchange Notes held by all
Participating Broker-Dealers; PROVIDED, HOWEVER, that Section 7 and this Section
10(c) may not be amended, modified or supplemented except pursuant to a written
agreement duly signed and delivered by each Holder and each Participating
Broker-Dealer (including any Person who was a Holder or Participating
Broker-Dealer of Registrable Notes or Exchange Notes, as the case may be,
disposed of pursuant to any Registration Statement) affected by any such
amendment, modification, supplement or waiver. 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 of Registrable Notes whose
securities are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect, impair, limit or compromise the rights of other
Holders of Registrable Notes may be given by Holders of at least a majority in
aggregate principal amount of the Registrable Notes being sold pursuant to such
Registration Statement.

            (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, registered
first-class mail, next-day air courier or telecopier:

                  (i) if to a Holder of the Registrable Notes or any
            Participating Broker-Dealer, at the most current address of such
            Holder or Participating Broker-Dealer, as the case may be, set forth
            on the records of the registrar under the Indenture.

                  (ii) if to the Issuers, at the address as follows:

                        FiberMark, Inc.
                        161 Wellington Road
                        P.O. Box 498
                        Brattleboro, Vermont 05302
                        Telephone: (802) 257-5902
                        Fax: (802) 257-5900
                        Attention: Bruce Moore

                        with a copy to:

                        Hale and Dorr
                        60 State Street
                        Boston, Massachusetts 02109
                        Telephone: (617) 526-6000
                        Fax: (617) 526-5000
                        Attention: Peter B. Tarr, Esq.

                                      -23-
<PAGE>

                  (iii) if to the Initial Purchasers, at the address as follows:

                        UBS Warburg LLC
                        299 Park Avenue
                        New York, New York 10171
                        Telephone: (212) 821-3000
                        Fax number: (212) 821-6890
                        Attention: Syndicate Department

                        with a copy to:

                        Cahill Gordon & Reindel
                        80 Pine Street
                        New York, New York 10005
                        Telephone: (212) 701-3000
                        Fax: (212) 269-5420
                        Attention: Daniel J. Zubkoff, Esq.

            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; when receipt is
acknowledged by the recipient's telecopier machine, if telecopied; and on the
next Business Day, if timely delivered to an air courier guaranteeing overnight
delivery.

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

            (e) GUARANTORS. So long as any Registrable Notes remain outstanding,
the Issuers shall cause each Person that becomes a guarantor of the Notes under
the Indenture to execute and deliver a counterpart to this Agreement which
subjects such Person to the provisions of this Agreement as a Guarantor. Each of
the Guarantors agrees to join the Company in all of its undertakings hereunder
to effect the Exchange Offer for the Exchange Notes and the filing of any Shelf
Registration Statement required hereunder.

            (f) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties
hereto, the Holders and the Participating Broker-Dealers; PROVIDED, HOWEVER,
that this Agreement shall not inure to the benefit of or be binding upon a
successor or assign of a Holder unless and to the extent such successor or
assign holds Registrable Notes.

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

                                      -24-
<PAGE>

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

            (i) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

            (j) 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.

            (k) SECURITIES HELD BY THE COMPANY OR ITS AFFILIATES. Whenever the
consent or approval of Holders of a specified percentage of Registrable Notes is
required hereunder, Registrable Notes held by the Company or any of its
affiliates (as such term is defined in Rule 405 under the Securities Act) shall
not be counted in determining whether such consent or approval was given by the
Holders of such required percentage.

            (l) THIRD-PARTY BENEFICIARIES. Holders and beneficial owners of
Registrable Notes and Participating Broker-Dealers are intended third-party
beneficiaries of this Agreement, and this Agreement may be enforced by such
Persons. No other Person is intended to be, or shall be construed as, a
third-party beneficiary of this Agreement.

            (m) ATTORNEYS' FEES. As between the parties to this Agreement, in
any action or proceeding brought to enforce any provision of this Agreement, or
where any provision hereof is validly asserted as a defense, the successful
party shall be entitled to recover reasonable attorneys' fees actually incurred
in addition to its costs and expenses and any other available remedy.

            (n) ENTIRE AGREEMENT. This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein and any and all prior oral or
written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda between the Holders on the one hand
and the Issuers on the other, or between or among any agents, representatives,
parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof and thereof are merged herein
and replaced hereby.

                                      -25-
<PAGE>

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

                                  FIBERMARK, INC.

                                  By: /s/ Bruce Moore
                                      ------------------------------------------
                                      Bruce Moore
                                      Vice President and Chief Financial Officer

                                  FIBERMARK DURABLE SPECIALITIES, INC.

                                  By: /s/ Bruce Moore
                                      ------------------------------------------
                                      Bruce Moore
                                      Vice President and Chief Financial Officer

                                  FIBERMARK FILTER AND TECHNICAL PRODUCTS, INC.

                                  By: /s/ Bruce Moore
                                      ------------------------------------------
                                      Bruce Moore
                                      Vice President and Chief Financial Officer

                                  FIBERMARK OFFICE PRODUCTS, LLC

                                  By: FIBERMARK, INC., its Member-Manager

                                      By: /s/ Bruce Moore
                                          --------------------------------------
                                          Bruce Moore
                                          Vice President and Chief Financial
                                          Officer

                                  FIBERMARK DSI INC.

                                  By: /s/ Bruce Moore
                                      ------------------------------------------
                                      Bruce Moore
                                      Treasurer and Chief Financial Officer

                                       S-1
<PAGE>

                                  UBS WARBURG LLC

                                  By: /s/ Ervil Spencer
                                      ------------------------------------------
                                      Name:  Ervil Spencer
                                      Title: Director

                                  By: /s/ James Flicher
                                      ------------------------------------------
                                      Name:  James Flicher
                                      Title: Director

                                  RBC DOMINION SECURITIES CORP.

                                  By: /s/ William H. [Illegible]
                                      ------------------------------------------
                                      Name:  William H. [Illegible]
                                      Title: Managing Director

                                       S-2Prepared by MERRILL CORPORATION

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Exhibit 4.1    
  

 
 

BAKBONE SOFTWARE INC.
  DOMESTIC RESELLER AGREEMENT
  TERMS AND CONDITIONS    
  

      BETWEEN.

BAKBONE SOFTWARE, INC.

AND  

 (Reseller Name and Contract No.)  

 1.  APPOINTMENT AND AUTHORITY OF RESELLER

    BAKBONE
hereby appoints Reseller as a Reseller of the Products to certain End Users only within the territory identified in Exhibit B ("Territory"), and Reseller accepts such
appointment, subject to the terms and conditions of this Agreement. BAKBONE may modify, improve, change or discontinue any or all of the Products from time to time, by delivering to Reseller a new
Exhibit A. Reseller's rights under this Agreement are not exclusive. BAKBONE reserves the right to license directly to any customer or other third party and may appoint other Resellers in the
Territory, in its sole discretion. For purposes of this Agreement, the term End User shall be defined as a prospective customer of Reseller to whom Reseller offers the Products for use in the regular
course of such customer's business and not for resale. Without limiting the generality of the foregoing, the term End User shall specifically exclude without limitation other resellers, OEMs, VARs,
ASPs, ISPs and/or any other person or entity which purports to be a reseller of software, Products or related services. 

2.  SOFTWARE RIGHTS

    Reseller
acknowledges that the Products licensed by BAKBONE hereunder constitute only discrete copies of software, the media in which it is stored, and related documentation, as
shipped to Reseller. Nothing herein shall be construed, express or implied, as transferring to Reseller any right, title or interest in and to: (i) the Products (including all copies,
modifications, and derivative works thereof, by whenever produced), and documentation, including but not limited to the software related documentation or any media, information, or instructions
provided by BAKBONE for use with the Products ("Documentation") and all intellectual property rights embodied therein; (ii) any of the service marks, trademarks, tradenames or any other
designations associated with the Products including all the good will associated with the same; and (iii) any copyrights, patent rights, trade secret rights, and all other proprietary rights
relating to the Products or Documentation. All such software and proprietary rights are subject to the terms and conditions of this Agreement and the Software License Agreement included with each
Product, as more fully described in Section 3.3. Reseller expressly waives any rights it may obtain through operation of law or otherwise inconsistent with the terms or intent of this
Agreement. 

3.  LICENSE GRANT

    3.1   License to Distribute.  Subject to the terms of this Agreement, BAKBONE hereby
grants to Reseller: 

    (a)  A
non-exclusive, non-transferable, non-sublicensable, non-assignable, terminable license, in the
Territory only, to market, and distribute the Products and Support Services to End-users pursuant to the terms and conditions of BAKBONE's End-user License Agreement; and 

1

 

    (b)  A non-exclusive, non-transferable, non-sublicensable, non-assignable, terminable license, in the
Territory only, to use to demonstrate, install, and troubleshoot the Products for End-users. 

    3.2   License to Provide Front-line Support Services.  Subject to the terms of
this Agreement, BAKBONE hereby grants to Reseller; 

    (a)  A
non-exclusive, non-transferable, non-sublicensable, non-assignable, terminable license in the
Territory only, to demonstrate to, and to use the Products to train, install and provide Front-line Support Services to its End-Users. 

    3.3   Documentation License.  BAKBONE hereby grants Reseller a non-exclusive,
non-transferable, non-sublicensable, non-assignable, terminable license to use the Documentation and to make a reasonable number of copies of the Documentation
solely for its own internal business purposes as necessary in connection with the licenses granted in Section 3.1 and 3.2. 

    3.4   License Limitations.  Notwithstanding any provision in this Agreement to the
contrary, nothing in this Agreement should be interpreted as granting Reseller the authority to sell the Products to any other person or entity other than an End User. Additionally, nothing in this
Agreement shall be construed as granting to Reseller a license of any kind (including but not limited to a license to distribute) to any other person or entity other than an End User. 

4.  GENERAL OBLIGATIONS OF RESELLER

    4.1   Promotion.  Reseller shall actively advertise and promote the Products in the
Territory in a commercially reasonable manner. Reseller shall list the Products in its marketing materials, on its Web site and shall transmit Product information and promotional materials to its
customers in its ordinary course of business and as reasonably requested by BAKBONE from time to time. 

    4.2   Advertising.  Reseller shall provide samples of its advertising copy and sales
literature, in their original language and in English, as applicable, to BAKBONE upon its request. BAKBONE reserves the right to review and approve at its sole discretion all uses of BAKBONE's
trademarks, service marks, or trade names in Reseller's advertising and promotion of the Products, prior to Reseller's use thereof. Such approval will not limit Reseller's obligation to comply with
all applicable laws in the Territory and will not be deemed an endorsement or approval by BAKBONE of any advertising content or use by Reseller. 

    4.3   Software Licenses.  Reseller shall distribute the Products only in the sealed
packages in which BAKBONE delivers them to Reseller ("Product Packages"). Reseller acknowledges that (a) an end user license agreement between BAKBONE and end users (the "Software License"),
substantially in the form attached as Exhibit F, will be reproduced on or included in each Product Package, and (b) each Product Package will contain an appropriate customer registration
card (the "Registration Card"). BAKBONE may modify the Software License and Registration Card at any time, in whole or in part. Reseller will use reasonable efforts to ensure that each end user reads
and consents to the Software License upon acquiring the Product Package and remits the Registration Card as indicated thereon. Reseller agrees that it will not knowingly distribute Products to any end
user who has indicated, directly or indirectly, that such end user does not intend to comply with the terms of the Software License. 

    4.4   Sales and Inventory Reports.  Reseller shall provide BAKBONE, on a monthly basis or
at such other frequency as BAKBONE may from time to time require in its sole discretion, sales, shipment, inventory, and other written or electronic reports relating to Reseller's activities under
this Agreement during the prior month or other period. In addition to constituting a material breach hereunder, if any, failure to provide such reports may void Reseller's right to price protection
and sales incentive programs hereunder, if any, in the sole discretion of BAKBONE. 

2

 

    4.5   Training and Support.  Reseller shall provide such training on the installation and
use of the Products to its customers as is necessary to enable them to market, install and use the Products, as applicable. Reseller shall provide, through its own technical personnel,
first-line technical support to its direct customers. Reseller shall at all times maintain a support capability which includes at least two (2) technical person trained by BAKBONE
and qualified support personnel as necessary to ensure a high level of customer satisfaction. BAKBONE may from time to time develop and thereafter modify guidelines and procedures specifying the
nature, level, and manner of the technical support Reseller is required to provide to such customers, with which Reseller shall comply. 

    4.6   Problem Resolution.  Reseller shall keep BAKBONE informed on problems encountered
with the Products and as to any resolutions arrived at for those problems. Reseller shall communicate to BAKBONE any modifications, design changes or improvements to the Products suggested by or to
Reseller. Reseller assigns all intellectual property rights to any and all information, inventions, ideas, discoveries or other matter provided to BAKBONE under this Section. 

    4.7   Government Requirements.  Reseller shall obtain and maintain all permits, licenses
and government registrations necessary or appropriate to perform hereunder and shall make all filings with governmental authorities relating to this Agreement as required by law. Reseller represents
and warrants that the terms of this Agreement comply in all respects with the laws of the Territory and are enforceable under their plain English interpretation. This Agreement is in all respects
subject to compliance with all such requirements, Reseller, its employees and agents shall at all times in carrying out the terms of this Agreement abide by, and be in full compliance with, the laws,
regulations and practices of their Territory. Upon BAKBONE's request, Reseller shall provide BAKBONE written assurances of such compliance. 

    4.8   Reseller's Business Practices.  Reseller shall (a) conduct business in a
manner that reflects favorably at all times on the Products and BAKBONE's goodwill and reputation, (b) avoid deceptive, misleading or unethical practices, (c) make no false or misleading
representations with regard to BAKBONE or the Products, and (d) not solicit orders from any customer that engages in illegal or deceptive trade practices or any other practices proscribed under
this Agreement or under the laws, regulations or practices of the U. S. and Territory. 

    4.9   Reseller's Own Account.  Reseller shall conduct its business for its own account, as
an independent contractor, in its own name, and not as an agent, employee, or partner of BAKBONE or actually, impliedly or ostensibly hold itself out as such. Except as herein expressly provided, it
shall determine in its own judgment how best to perform its obligations hereunder, and BAKBONE shall have no right to control such matters. 

    4.10   Demonstration Copies.  Reseller may use Products and the keys therefore purchased
hereunder for internal use only as demonstration copies, in such number and on such terms as BAKBONE may allow in its discretion from time to time. In such event, Reseller shall comply with and be
bound by all of the terms and conditions of the Software License included with the Product so used. Reseller shall not resell, lease, rent, distribute or license any Product or key therefore used as a
demonstration copy. Reseller acknowledges that it shall not decompile the Products or adapt them to any other software in order to use them for the limited demonstration purposes contemplated herein. 

5.  GENERAL OBLIGATIONS OF BAKBONE

    5.1   Sales Materials.  BAKBONE shall supply Reseller with such quantities of its Product
advertising and promotional materials, in English, and artwork for Reseller's use (in translated versions, if necessary in BAKBONE's sole discretion), as BAKBONE deems reasonably appropriate for
Reseller's performance hereunder. 

3

 

    5.2   Updates and Upgrades.  BAKBONE shall use reasonable efforts to notify Reseller prior
to the introduction of any update or upgrade of a Product for resale to the general public outside of the United States, and shall make such update or upgrade available to Reseller promptly, but not
later than sixty (60) days after such update or upgrade is made available to any like-situated Reseller, where "like-situated Resellers" shall be identified by BAKBONE
in its sole discretion. BAKBONE reserves the right to decide, in its sole discretion, whether to make an update or upgrade available at no additional charge or as a separately-priced item. 

6.  ORDERS AND DELIVERY

    6.1   Orders.  Reseller shall order Products from BAKBONE using such forms, procedures,
and minimum order requirements as BAKBONE may prescribe from time to time. All orders shall be subject to acceptance and approval by BAKBONE in its discretion. All orders shall be governed exclusively
by the terms and conditions of this Agreement notwithstanding any contrary or additional preprinted terms of any other document. 

    6.2   Delivery.  All deliveries shall be at any resale point nominated from time to time
by BAKBONE, cleared for export, from BAKBONE's shipping point in            . Such shipping point is subject to change in BAKBONE's discretion. BAKBONE shall use best efforts to deliver
Products within 14 days after acceptance of an order, subject to availability. Either party may reschedule delivery or cancel orders for Products provided notice is received prior to the
scheduled delivery date. At the time BAKBONE makes the Products available to Reseller at BAKBONE's shipping point, all risk of loss or damage thereto shall pass to and be borne by Reseller and shall
constitute full and final delivery by BAKBONE. BAKBONE shall not be obligated to furnish insurance covering any shipment or to ship to Reseller's customers. All Products shall be shipped in the
standard commercial packaging used by BAKBONE or its Affiliates and according to their standard practices, unless otherwise agreed in writing. Reseller shall pay the cost of special packaging and
shipment. 

    6.3   Costs.  Reseller shall pay all shipping and transportation charges, customs duties
and similar charges, and all other taxes and fees imposed on Product purchases and sales hereunder. In the event BAKBONE pays any such amounts, Reseller shall reimburse BAKBONE immediately and they
shall be added to the invoiced amounts as separate charges. 

    6.4   Returns.  Upon issuance by BAKBONE of a return material authorization ("RMA"),
Reseller may return for replacement a Product, which was shipped by Reseller to one of its customers in the previous 90 days, and is found to be defective as defined in Exhibit D
("Limited Warranty"). Reseller shall pay freight charges for the return of defective Products to BAKBONE. Reseller shall also pay the freight charges on the return shipment to Reseller. 

7.  PRICES AND PAYMENT

    7.1   Prices.  Reseller shall pay the prices, and on the terms and conditions, set forth
in Exhibit C attached hereto. Failure of Reseller to fully comply with the payment terms contained herein results in an immediate termination of BAKBONE's obligations under the Agreement, and
BAKBONE may terminate the Agreement in its sole discretion in addition to any other legal or equitable remedies it may have. 

    7.2   Price Changes.  BAKBONE may change such prices, terms and conditions from time to
time in its discretion upon prior written notice to Reseller. In the event that BAKBONE raises such prices, all orders for the applicable Product placed prior to the effective date of the increase,
for delivery prior to
such date, shall be invoiced at the lower price. If BAKBONE reduces the price of a Product, BAKBONE shall provide price protection to Reseller on the terms set forth in Exhibit C (Price List
and Payment Terms). 

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    7.3   Credit Information and Changes.  Reseller shall provide BAKBONE with its financial
statements and other financial condition information as set forth in Exhibit C. BAKBONE shall maintain such information in confidence. Reseller's financial responsibility is at all times
subject to approval of BAKBONE, and BAKBONE reserves the right at any time, before payment or even after partial payment on account, to change or withdraw any credit line or terms, require payment on
delivery or by irrevocable, unconditional letter of credit (in accordance with Exhibit C), declare all sums immediately due and payable, or cancel or delay shipment of any order. Reseller
acknowledges that judgments as to financial responsibility are inherently subjective and accordingly agrees that BAKBONE may make them in its sole discretion, notwithstanding any particular evidence
of creditworthiness or prior practice to the contrary. 

    7.4   Retention of Information Upon Termination.  Upon termination of this Agreement for
any reason, BAKBONE shall be entitled to maintain one file copy of Reseller's confidential information for its records. BAKBONE shall not disclose such information to third parties other than
accountants, lawyers or other advisors bound by an obligation of confidentiality to BAKBONE. The information provided by Reseller shall not be considered confidential if it is generally known to the
public, was available to BAKBONE from other sources, or was discovered by BAKBONE without reference to the Reseller's confidential information. 

    7.5   Security Interest.  Reseller hereby grants BAKBONE a lien in all Products shipped by
BAKBONE to Reseller, and any and all additions, substitutions and replacements thereof, wherever located, including, without limitation, any and all new or substituted or additional cash, securities,
instruments, chattel paper, general intangibles or other property, tangible or intangible, distributed with respect to any of the foregoing property for any reason whatsoever, and all proceeds of any
and all of the foregoing. Reseller hereby agrees to execute a UCC-1 financing statement, and to take any other steps necessary to perfect BAKBONE'S lien rights in above. 

8.  WARRANTIES

    8.1   LIMITED WARRANTY.  TO THE EXTENT PERMITTED BY LAW, BAKBONE MAKES NO REPRESENTATION,
WARRANTY, OR GUARANTY, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS OR INTELLECTUAL PROPERTY CONTAINED THEREIN OR RELATED DOCUMENTATION EXCEPT ITS STANDARD FORM OF LIMITED WARRANTY ("WARRANTY"),
THE CURRENT FORM OF WHICH IS ATTACHED AS EXHIBIT D HERETO. BAKBONE MAY IN ITS SOLE DISCRETION MODIFY ITS WARRANTY AT ANY TIME AND FROM TIME TO TIME.

    8.2   DISCLAIMER.  EXCEPT AS OTHERWISE SET FORTH IN WRITING IN THIS AGREEMENT AND TO THE
EXTENT PERMITTED BY LAW, BAKBONE MAKES NO REPRESENTATIONS, WARRANTIES, CONDITIONS OR GUARANTEES, EITHER EXPRESS, IMPLIED, STATUTORY, ORAL, WRITTEN OR OTHERWISE, WITH RESPECT TO THE PRODUCTS AND ANY
SERVICES COVERED BY OR FURNISHED PURSUANT TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY (A) OF MERCHANTABILITY OR SATISFACTORY QUALITY, (B) OF FITNESS FOR A
PARTICULAR PURPOSE, OR (C) ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING, OR USAGE OF TRADE.

    8.3   WARRANTIES—LIMITATION ON LIABILITY.  TO THE EXTENT THAT A PRODUCT IS
COVERED BY THE WARRANTY OR TO THE EXTENT THAT RESELLER SUFFERS ANY DAMAGE OR COST OF ANY NATURE WHATSOEVER RELATING, DIRECTLY OR INDIRECTLY, TO FAILURE, OR LACK OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF A PRODUCT, AND BAKBONE IS HELD LIABLE UNDER APPLICABLE LAW FOR SUCH DAMAGE OR COST, THEN IS SUCH CASE, BAKBONE'S SOLE LIABILITY SHALL BE LIMITED TO REPAIRS OR REPLACEMENT OF THE
DEFECTIVE PRODUCT; IN NO EVENT SHALL  

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 BAKBONE BE RESPONSIBLE FOR MONETARY DAMAGES, AND RESELLER HEREBY EXPRESSLY WAIVES ANY AND ALL CLAIMS IT MAY HAVE FOR ANY FURTHER COMPENSATION HOWSOEVER ARISING.

    8.4   GENERAL INDEMNITY AND RELEASE BY RESELLER.  RESELLER SHALL RELEASE, HOLD HARMLESS,
DEFEND AND INDEMNIFY BAKBONE AGAINST ANY LIABILITY, COST OR EXPENSE, OF ANY NATURE WHATSOEVER ARISING OUT OF OR RELATING TO A BREACH BY RESELLER OF ANY OBLIGATION ARISING UNDER THIS
AGREEMENT.

    8.5   DISCLAIMER OF OTHER REPRESENTATIONS.  ALL REPRESENTATIONS OR WARRANTIES MADE OR
AGREEMENTS EXECUTED BY RESELLER PURSUANT TO THIS AGREEMENT SHALL BE RESELLER'S SOLE RESPONSIBILITY.

9.  BAKBONE'S INTELLECTUAL PROPERTY

    9.1   Products Defined as Intellectual Property.  Reseller and BAKBONE hereby agree that
the Products set forth in Exhibit "A" constitute intellectual property of BAKBONE under 11 U.S.C. section 101(35)(A). 

    9.2   Limited Rights.  Reseller shall not acquire any express or implied right to any
trademarks, service marks, or tradenames owned or used by BAKBONE or any Affiliates (collectively "Trademarks"), or the copyrights, patent rights, mask works, trade secrets, commercial symbols,
goodwill, or other form of intellectual or commercial property of BAKBONE or any Affiliates, and shall not use such property or rights in any manner, except as expressly herein permitted. Reseller
shall only distribute Products within the Territory if such Products bear the Trademarks, and shall request permission in writing from BAKBONE for any shipment of Products outside of the Territory,
such permission being granted or withheld in BAKBONE's sole discretion. Reseller acknowledges that such a limitation is necessary to protect BAKBONE's valuable intellectual property and is not an
unreasonable restraint on trade. Reseller shall use the Trademarks in referring to the applicable Products they identify and shall identify itself as an authorized Reseller of BAKBONE, in a form
prescribed or approved from time to time by BAKBONE or as otherwise agreed by BAKBONE in writing. BAKBONE may from time to time discontinue or modify the Trademarks, add new Trademarks, and revise
these instructions, to protect the standards of quality established for the goods and services licensed under the Trademarks. Reseller acknowledges that BAKBONE owns all right, title and interest in
the Products, Trademarks, and all other intellectual property associated with or contained in or relating to the Products and related Documentation in the Territory. BAKBONE hereby grants Reseller a
nonexclusive, nontransferable, non-sublicensable, except as expressly provided in this Agreement, nonassignable, terminable, license to use only those Trademarks attached in
Exhibit E of this Agreement and those additional Trademarks approved for Reseller's use by BAKBONE in writing from time to time ("Licensed Trademarks"), for the sole purpose of resale and
resale in the promotion and resale of Products only within the Territory for the duration of this Agreement. BAKBONE retains the option to terminate this license right or substitute alternate marks,
in its sole discretion, at any time. Reseller shall ensure that on all packaging, advertising, promotional material and other uses of the Licensed Trademarks, the following language appear: "This
trademark is a trademark of BAKBONE and is used under license." 

    9.3   Modifications and Reverse Engineering.  Reseller shall not copy, modify, reverse
engineer, map, decompile, translate, enhance, or make derivative works or compilations or portions or otherwise derive the source code, internal structure, organization or any other aspect of the
Products or any part thereof or aid, abet or permit others to do so. Any unauthorized modifications, derivative works, translations or any other intellectual property, or prospective jointly owned
intellectual property, created directly or indirectly using or referring to the Products, or components thereof, or enhancements of the Products, shall belong exclusively to BAKBONE and Reseller
hereby assigns all 

6

 

rights in them (including without limitation, moral rights) to BAKBONE. Reseller agrees to promptly enter into any further Documentation required by BAKBONE in its sole discretion to legally or
commercially effect such assignment, including, without limitation, ensuring that its employees and/or contractors do the same. Reseller hereby expressly waives any rights it may obtain inconsistent
with the foregoing through application of the law of the Territory or otherwise. Reseller acknowledges that it has no right whatsoever and shall have no right whatsoever, whether by the express terms
of this Agreement or by any course of conduct, to use, review, or access the source code for the Products. 

    9.4   Additional Restrictions on Use.  Reseller agrees: (i) not to remove any
Product identification or notices of any proprietary or copyright restrictions from any Product or any support material; (ii) except for archival or back-up copies, not to copy the
Product, or any derivative or part thereof; develop any derivative works thereof or include any portion of the Product in any other software program; (iii) not to provide use of the Products in
a computer service business, rental or commercial timesharing arrangement; (iv) not to develop any of the products containing any of the concepts and ideas contained in Confidential Information
that are not readily apparent from normal use of the Products pursuant to the license(s) granted hereunder; and (v) not to develop methods to enable unauthorized parties to use the Products. 

    9.5   Notices.  Reseller shall not remove, change, or obliterate any copyright,
confidential, or proprietary notices incorporated in, marked on, or fixed to the Products by BAKBONE or any Affiliate. 

    9.6   Protection of Trademarks and Intellectual Property.  As between the parties hereto,
BAKBONE shall have sole and exclusive right to protect and defend the Trademarks, at its sole cost and expense. Neither BAKBONE nor any Affiliate shall be liable to Reseller for any loss or damage
directly or indirectly suffered by Reseller as a result of the use of the Trademarks, any litigation or proceeding involving the Trademarks, or any failure to protect or defend the Trademarks.
Reseller shall cooperate fully with BAKBONE or an Affiliate, as applicable, in the defense and protection of the Trademarks, and shall promptly and fully advise BAKBONE of the use in the Territory of
any mark infringing any of the Trademarks. Without limiting the generality of the foregoing, Reseller shall not seek or obtain registration, or any other right, in any Trademark or what is in
BAKBONE's sole discretion a confusingly similar mark, in any jurisdiction, whether in its own name or otherwise. Reseller hereby assigns any and all right, title and interest it may obtain in any
Trademark or other BAKBONE intellectual property right relating directly or indirectly to the Products and hard copy user Documentation to BAKBONE and agrees to enter into any document or take any
other action, which in the sole opinion of BAKBONE is necessary to perfect such assignment. Reseller acknowledges and agrees that BAKBONE holds all right, title and interest in the BAKBONE Trademarks.
Reseller shall not directly or indirectly, through itself or third parties, during the term of this Agreement or thereafter, through itself or third parties, challenge BAKBONE's rights in the BAKBONE
Trademarks. In no event shall Reseller seek to register any BAKBONE Trademark or mark used by BAKBONE in any country, state or territory thereof. Reseller agrees to ensure that its successors, assigns
and affiliated companies, if any, comply with the terms of this provision. All uses of the Trademarks will inure to the sole benefit of BAKBONE. 

    9.7   Confidential Information.

    (a)  As
used herein, "Confidential Information" shall mean all information concerning BAKBONE or any Affiliate or parent company of BAKBONE to which
Reseller is provided access by virtue of this Agreement or its activities hereunder, including without limitation technical data, product design and development, sales information, quantity and kind
of products licensed, prices and methods of pricing, marketing techniques and plans, product returns, unannounced products, product and process information, and any other information which, if
disclosed to others, might be competitively detrimental to BAKBONE. Confidential Information shall not include any 

7

 

information which has been publicly disseminated in writing by BAKBONE, which Reseller can show to BAKBONE'S reasonable satisfaction that it knew without restriction prior to BAKBONE's disclosure, or
which was rightfully received by Reseller from a third party without restriction. 

    (b)  During
the term hereof and at all times thereafter, Reseller shall maintain the Confidential Information in strictest confidence, shall not disclose
it to any third party, and shall use it only as necessary to perform hereunder. Reseller shall cause each of its officers, directors, employees, and agents to restrict disclosure and use of such
Confidential Information in like fashion, and shall be responsible for any wrongful disclosure and use by any of them. 

    (c)  In
the event any court or other authority orders Reseller to disclose any Confidential Information, Reseller shall use its best efforts to protect
its confidentiality and shall forthwith notify BAKBONE thereof to enable it to seek to do so. At the termination of this Agreement, Reseller shall promptly return all tangible Confidential Information
to BAKBONE. 

10. INDEMNITIES

    10.1   Infringement Claims—U.S. Intellectual Property.  If an action is
brought against Reseller claiming that (a) a Product solely in the stand alone, unmodified, unbundled version provided to Reseller by BAKBONE infringes any United States patent, United States
copyright or United States trade secret rights of a third party within the Territory, or (b) a Trademark infringes any United States copyright of a third party within the Territory, BAKBONE
shall defend Reseller at BAKBONE's expense and shall pay the damages and costs finally awarded against Reseller in the action specifically on account of such infringement, but only if
(c) Reseller notifies BAKBONE promptly upon learning that the claim is or might be asserted, (d) Reseller assists in the defense of the claim, (e) BAKBONE has sole control over
the defense of the claim and any negotiation for its settlement or compromise, and (f) Reseller takes no action that, in BAKBONE's judgment, impairs BAKBONE's defense of the claim. 

    10.2   BAKBONE's Options.  If Reseller's use of any Product is enjoined, or if BAKBONE
wishes to minimize its liability hereunder, BAKBONE may, at its option and expense, either (a) substitute equivalent non-infringing products for the infringing item,
(b) modify the infringing item so that it no longer infringes but remains functionally equivalent, or (c) obtain for Reseller the right to continue distributing such item. If none of the
foregoing is feasible, BAKBONE will accept a return of the Products, which are subject to the injunction and refund to Reseller the purchase price, less reasonable depreciation, plus shipping costs
paid by Reseller. The indemnity in Section 9.1 will not apply if and to the extent that the infringement claim results from (i) a correction or modification or bundling of the
Product not provided by BAKBONE, (ii) a failure to promptly install an update, or (iii) the combination of the Product with other items not provided by BAKBONE, (iv) modifications
made in whole or in part in accordance with Reseller specifications, or (v) Reseller continues allegedly infringing activity after being notified thereof or after being informed of
modifications that would have avoided the alleged infringement. 

    10.3   INDEMNITY—LIMITATION OF LIABILITY.  THE FOREGOING STATES THE ENTIRE
LIABILITY AND OBLIGATION OF BAKBONE OR ANY AFFILIATE WITH RESPECT TO INFRINGEMENT OR CLAIMS OF INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY OR RELATING
TO THE PRODUCTS, OR CONTRACT CLAIMS, OR REGULATORY BASED CLAIMS IN THE TERRITORY OR OTHER CLAIMS RELATING DIRECTLY OR INDIRECTLY THERETO.

    10.4   Indemnification by Reseller.  Reseller shall defend, release, indemnify and hold
BAKBONE and its Affiliates harmless from any and all claims by any other party (including reasonable attorneys' fees and costs of litigation) resulting from Reseller's own breaches, acts, bundling of
Products, omissions or misrepresentations, regardless of the form of action. 

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    10.5   Advertising.  Reseller agrees to release, hold harmless and indemnify BAKBONE and
its Affiliates from any liability, costs, claims, damages, and fees associated with Reseller's use of the Licensed Trademarks or which relate directly or indirectly to any Reseller advertising,
packaging or labels. Reseller acknowledges and agrees that it is solely responsible to ensure that all uses of the Licensed Trademarks, advertising, packaging, labeling and resale is in accordance
with all laws and regulations applicable in the licensed Territory and shall release, hold harmless and indemnify BAKBONE from any and all liability, costs, claims, damages and fees resulting from a
breach of this undertaking. 

    10.6   Insurance.  Reseller shall maintain liability insurance, in connection with
liability arising out of Reseller's actions relating to this Agreement up to at least One Million United States Dollars (U.S. $1,000,000) per claim. 

11. ASSIGNMENT

    11.1   By BAKBONE.  This Agreement may be assigned by BAKBONE in its sole discretion
without notice to any entity, which assumes its obligations and acquires ownership of or the right to use, sell, distribute and license the Products as herein contemplated. 

    11.2   By Reseller.  BAKBONE makes this Agreement in reliance upon the reputation of
Reseller and its management, and accordingly it may not be assigned or encumbered by Reseller without BAKBONE's prior written consent, in its discretion. Due to the importance of Reseller's ownership
and management, the sale, transfer or assignment of 50% or more of Reseller's capital stock, partnership interests, or voting rights shall be deemed an assignment of this Agreement. Any attempted
assignment in violation of this provision is void, and may, at BAKBONE's election, result in termination of this Agreement. 

12. TERM AND TERMINATION

    12.1   Term.  The term of this Agreement shall be 12 months commencing on the
Effective Date hereof, unless sooner terminated in accordance herewith. The parties may extend the term or enter into a new agreement only by their formal, mutual consent expressed in writing. Nothing
set forth in this Agreement, no course of conduct, and no oral statements shall be deemed to constitute such consent. In the event that through application of law or otherwise, Reseller is provided
rights to compensation or to extend the term of this Agreement, Reseller expressly waives any and all such rights as part of the consideration for BAKBONE's entering into this Agreement. 

    12.2   Termination, No Cause.  This Agreement may be terminated by either party for any or
no cause, by providing at least 60 days' prior written notice to the other party. Without granting Reseller greater rights in other circumstances, Reseller shall have no right to receive
compensation from BAKBONE in the event BAKBONE terminates this Agreement pursuant to this Section 12.2. 

    12.3   Payment Breach.  Except as otherwise provided herein, BAKBONE may terminate this
Agreement prior to its expiration immediately in the event Reseller fails to cure any breach of a payment obligation hereunder within 10 days after written notice from BAKBONE describing the
breach. 

    12.4   Cause.  Either party may terminate this Agreement immediately at any time if
(a) the other party commits a breach of a material obligation hereunder which is not subject to cure; (b) the other party commits a breach of a material obligation hereunder which is
subject to cure (other than a payment breach) and fails to cure such material breach within 30 days after written notice, (c) a receiver is appointed for the other party or its property,
(d) the other party makes an assignment for the benefit of its creditors, (e) there is reasonable cause to believe that the other party is insolvent, (f) proceedings are commenced
by, for, or against the other party under any bankruptcy, insolvency, or 

9

 

debtor's relief law, (g) the other party liquidates or dissolves or attempts to do so, or (h) the other party assigns or purports to assign this Agreement in breach of its provisions. 

    12.5   Additional Cause for Termination.  In addition to the aforementioned, this
Agreement shall terminate if Reseller (a) fails to secure or renew any license, permit authorization or approval for the conduct of its business in its Territory; (b) Challenges or
assists a third party in challenging BAKBONE's right, title or interest in and to any BAKBONE intellectual property asserted in this Agreement; or (c) Ceases to do business or otherwise
terminates its business operations. 

    12.6   Effect of Termination.  Termination of this Agreement will not relieve either party
from fulfilling its obligations which by their terms or nature survive termination, including Sections 6.1, 7, 8, 9, 12, and 13, except as otherwise expressly provided. Upon termination of this
Agreement for any reason: (a) Reseller shall immediately cease using and shall deliver to BAKBONE any unused sales literature and other written information and materials supplied by BAKBONE
pursuant to this Agreement or which contain any Trademarks except as necessary to continue selling the Products in Reseller's inventory; (b) Reseller shall immediately cease to identify itself
as an authorized Reseller for BAKBONE or otherwise affiliated in any manner with BAKBONE; (c) any rights or benefits which may have accrued in Reseller's favor, prior to termination hereof,
under any BAKBONE program, shall terminate and be forfeited, except where expressly provided to the contrary in this Agreement; (d) BAKBONE shall have the option, exercisable in its discretion
within 30 days after termination, to reacquire from Reseller, at then current prices all or part of the Products and documentation, including translated versions, which are then held by
Reseller in inventory and not committed to sales; in effecting this reacquisition, BAKBONE shall be entitled to set off, against amounts payable to Reseller, all amounts owed by Reseller to BAKBONE;
and (e) provided that if this Agreement is terminated by BAKBONE pursuant to Section 11.2 or by Reseller pursuant to 11.4, then BAKBONE shall be obligated to so reacquire from Reseller
all such Products and documentation which are in the then current version and in resalable condition and then held by Reseller in inventory purchased 90 days preceding such return and not
committed to sales. Reseller shall be entitled to distribute all Products and Documentation which are in Reseller's inventory as of the effective date of termination or expiration of this Agreement
and which are not reacquired from Reseller by BAKBONE for a period of ninety (90) days after termination or expiration of this Agreement. All such resale shall be in accordance with the terms
and conditions of this Agreement. 

13. LIMITATION OF LIABILITY

    TO THE EXTENT PERMITTED UNDER LAW, EXCEPT AS EXPRESSLY PROVIDED TO THE CONTRARY IN SECTION 9, THE LIABILITY OF BAKBONE AND ITS AFFILIATES UNDER THIS AGREEMENT
TO RESELLER, REGARDLESS OF THE BASIS OF LIABILITY OR THE FORM OF ACTION, SHALL IN NO EVENT EXCEED THE TOTAL PRICE PAID TO BAKBONE BY RESELLER WITHIN THE TWELVE (12) MONTH PERIOD PRECEDING A
CLAIM BY RESELLER NET OF ALL DISCOUNTS, REBATES, AND REFUNDS, FOR THE PRODUCT DIRECTLY CAUSING THE LIABILITY. IN NO EVENT SHALL BAKBONE OR ITS AFFILIATES BE LIABLE FOR COSTS OF SUBSTITUTE GOODS OR
SERVICES BY ANYONE, NOR WILL THEY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR OTHER DAMAGES, HOWEVER CAUSED, AND WHETHER OR NOT ADVISED IN ADVANCE OF THE POSSIBILITY OF
SUCH DAMAGES, WHETHER FOR BREACH OF CONTRACT, TORT, REGULATORY
COMPLIANCE, NEGLIGENCE OR OTHERWISE, AND WHETHER OR NOT THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ESSENTIAL PURPOSE OF THIS SECTION IS TO LIMIT THE POTENTIAL LIABILITY OF BAKBONE
AND ITS AFFILIATES ARISING OUT OF THIS AGREEMENT. THE FOREGOING ALLOCATION OF RISK IS REFLECTED IN THE PRICES OF THE PRODUCTS AND THE COMMERCIAL TERMS OF THIS AGREEMENT.

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14. GENERAL PROVISIONS

    14.1   Independent Contractors.  The relationship of BAKBONE and Reseller established by
this Agreement is that of independent contractors. This Agreement does not give either party the power to direct and control the day to day activities of the other, and they shall take no action to
directly or indirectly hold themselves out as legal partners, joint venturers, co-owners, principal-agent, or otherwise participants in a joint or common undertaking, or allow either party
to create or assume any obligation on behalf of the other party for any purpose whatsoever. 

    14.2   Third Party Disclaimer.  EACH SUPPLIER AND LICENSOR TO BAKBONE OF ANY PORTION OF
THE PRODUCTS ("THIRD PARTY SUPPLIER") DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING, WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
RESELLER EXPRESSLY ACKNOWLEDGES AND COVENANTS THAT IN NO EVENT SHALL ANY THIRD PARTY SUPPLIER BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, OR OTHER DAMAGES ARISING OUT OF THE AGREEMENT OR THE
USE, LICENSE OR DELIVERY OF ANY PRODUCT. 

    14.3   Entire Agreement.  This Agreement constitutes the entire agreement of the parties,
supersedes any prior and contemporaneous oral or written understanding as to the subject matter hereof, and excludes all implied representations, conditions, warranties, and other terms. Each party
acknowledges that it is entering into this Agreement as a result of its own independent investigation and not as a result of any representation of the other party not contained herein. 

    14.4   Executing Contract.  Reseller and BAKBONE agree that this Agreement is an executory
contract under 11 U.S.C. § 365. 

    14.5   Amendments; Waivers.  Except for the terms of this Agreement which may be
unilaterally modified by BAKBONE from time to time as provided herein, this Agreement may be modified only by a writing signed by the party to be charged. Without limitation, this provision shall
apply equally to this Section 14.4 and to Section 11.1. A waiver of any provision or breach is no waiver of any other provision or breach. 

    14.6   Force Majeure.  Except as expressly provided elsewhere in this Agreement, neither
party shall be liable to the other for its failure to perform any of its obligations hereunder during any period in which such performance is delayed by circumstances beyond its reasonable control
including, but not limited to earthquake, fire, flood, war, embargo, export controls, strike, riot, software viruses and/or bugs, power outages, inability to secure materials and transportation
facilities, or the intervention of any governmental authority. If such delaying cause shall continue for more than thirty (30) days, the party injured by the inability of the other to perform
shall have the right, upon written notice to the other, to either (a) terminate this Agreement pursuant to Section 11 or, (b) treat this Agreement as suspended during the delay
and reduce any commitment in proportion to the duration of the delay. 

    14.7   Taxes.  Reseller shall pay or reimburse BAKBONE for all national, federal, state,
local or other taxes and assessments of any jurisdiction (except taxes, other than withholding taxes, imposed on BAKBONE's income), including sales or use taxes, stamp duties, property taxes,
withholding taxes or otherwise, customs or other import or export taxes, value added taxes, and amounts levied in lieu thereof based on charges set, services performed or to be performed or payments
made or to be made under this Agreement. Reseller shall not deduct the amount of such taxes, duties or assessments from payments made to BAKBONE under this Agreement unless specifically required by
applicable law. In such event, Reseller shall promptly notify BAKBONE, and the amount due shall automatically be increased to totally offset such tax, so that the amount remitted to BAKBONE, net of
all taxes, equals the invoiced amount. Reseller shall provide BAKBONE with a copy of the official receipt evidencing 

11

 

payment of the tax to the applicable local taxing authorities. Further, on a biannual basis, Reseller shall provide BAKBONE with written evidence confirming payment of royalty and all other applicable
taxes. 

    14.8   Audits.  Upon at least two business days' notice to Reseller and during Reseller's
business hours, BAKBONE shall have the right to audit, at BAKBONE's expense, the Products in Reseller's possession or inventory and Reseller's books and records relating directly or indirectly to its
performance under this Agreement, in order to determine its compliance hereunder. In the event any such audit reveals that Reseller has knowingly breached a material obligation hereunder, then, in
addition to such other remedies as BAKBONE may have, Reseller shall pay or reimburse to BAKBONE the cost of the audit. 

    14.9   Import and Export Controls.  Reseller hereby acknowledges that the Products are
subject to United States export controls, pursuant to the U.S. Export Administration Regulations. Reseller shall comply with all applicable provisions of the Export Administration Regulations, and
shall not export, reexport, transfer, divert or disclose, directly or indirectly, including via the world wide web, remote access, the
Products, any confidential information contained or embodied in the Products, or any direct product thereof, except as authorized under the Export Administration Regulations. Reseller shall comply
with all other applicable laws and regulations of the United States and the Territory pertaining to exportation or importation of the Products. Reseller acknowledges and covenants that compliance with
this provision is material reason for the territorial restriction set out in Section 9.2. 

    14.10  Publicity.  The terms of this Agreement are confidential. No press release or
other like publicity regarding this Agreement may be made by Reseller without the prior written approval of BAKBONE's Vice President of Marketing or President. 

    14.11  Notices.  All notices and other communications hereunder shall be given in writing
and delivered (a) by personal delivery, by prepaid overnight or international courier service to the addresses set forth on the signature page of this Agreement, or (b) by facsimile to
such facsimile number as may be provided in writing by a party. Notices are deemed given on receipt or attempted delivery (if receipt is refused). 

    14.12  Bargained for Basis.  EACH PARTY RECOGNIZES AND AGREES THAT THE WARRANTY
DISCLAIMERS AND LIABILITY AND REMEDY LIMITATIONS IN THIS AGREEMENT ARE MATERIAL BARGAINED FOR BASIS OF THIS AGREEMENT AND THAT THEY HAVE BEEN TAKEN INTO ACCOUNT AND REFLECTED IN DETERMINING THE
CONSIDERATION TO BE GIVEN BY EACH PARTY UNDER THIS AGREEMENT AND IN THE DECISION BY EACH PARTY TO ENTER INTO THIS AGREEMENT. 

    14.13  Governing Law.  Reseller acknowledges that BAKBONE is based in the State of
California, U.S.A. and requires uniformity and consistency in the laws under which it deals with all of its domestic Resellers, and the subject matter of this agreement being licensed is based in
California and being remotely supported in California. Accordingly, this Agreement shall be governed and construed, and all arbitrations hereunder shall be determined, in accordance with the laws of
the State of California, without regard to its conflicts of laws rules. Reseller expressly waives any and all claims it may have to the application of any other law to this contract. 

    14.14  Dispute Resolution.

    (a)  Except
as otherwise provided below, any controversy or claim arising out of or relating to this Agreement shall be submitted to final and binding
arbitration before, and in accordance with, the rules of the American Arbitration Association ("AAA") as modified herein. If the claim seeks damages of U.S. $100,000 or less, it shall be decided by a
single independent arbitrator. If the claim seeks damages in excess of U.S. $100,000, it shall be decided by three independent arbitrators, one nominated by each party and one selected by the AAA, in
accordance with AAA's rules and procedures. All arbitrators shall have expertise in the subject matter of the dispute. The 

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arbitration shall be conducted in California. The arbitration process, including selection of the arbitrator or arbitrators, exchanges of requests for information and the arbitration hearing, shall be
completed within 60 days following the initiation of the arbitration by either party, and the actual arbitration hearing shall be limited to one (1) day. The arbitrator(s) shall issue a
written judgment within ten (10) days following the arbitration hearing. Judgment upon any arbitration award may be entered in any court having jurisdiction thereof. This provision is self
executing, and in the event that either party fails to appear at any properly noticed arbitration proceeding, an award may be entered against such party notwithstanding said failure to appear. This
clause shall survive the termination of this Agreement. 

    (b)  Notwithstanding
the foregoing: (1) any claim relating to the validity of any of the parties' confidential information, the Trademarks, or
other proprietary technology or intellectual property shall not be determined by arbitration, but only by a court located in the Southern District of California, to whose exclusive jurisdiction the
parties hereby consent and expressly waive any objections to subject matter or personal jurisdiction; and (2) Reseller acknowledges that any breach of its obligations under this Agreement which
relates to the proprietary rights or confidential information of BAKBONE, or which is otherwise not subject to remedy by monetary damages, will cause BAKBONE irreparable harm, and that BAKBONE
accordingly will be entitled to injunctive and other equitable relief in addition to all other remedies provided by this Agreement or available at law, in any court of competent jurisdiction. 

    (c)  Reseller
shall inform BAKBONE of any and all infringement or piracy of BAKBONE's Products or Trademarks of which they are aware or suspect in the
Territory. Nothing in this Agreement shall convey any independent right of action against any third party for any such infringement. To the extent that through operation of law or otherwise, Reseller
obtains any independent cause of action, against any third party relating directly or indirectly to the grant of rights under this Agreement, they shall forgo, and shall not exercise such rights,
without first consulting with and seeking the express, prior, written permission of BAKBONE. 

    14.15  Attorney's Fees.  In the event of any litigation or arbitration hereunder, the
arbitrator or court shall award costs and reasonable attorneys' fees to the prevailing party. 

    14.16  English Language.  English may be used as the authoritative text of this
Agreement, regardless of the existence of counterparts translated into another language, and all communications, arbitrations, and other adjudications hereunder shall be made and conducted in English. 

    14.17  Severability.  If any provision of this Agreement is held, in a final and
nonappealable decision by an arbitrator or court of competent jurisdiction, not to comply with any applicable law, now existing or hereafter enacted, such provision shall to the extent possible be
interpreted so as to comply with such law or condition or, if such interpretation is not possible, it shall be deemed amended to satisfy the requirements thereof. Any provision hereof deemed invalid
or unenforceable, in a final and
nonappealable decision by an arbitrator or court of competent jurisdiction, shall be severed from this Agreement, the balance of which shall remain enforceable. Any severed or altered provision shall
be automatically replaced by another provision resulting in the same economic position to the parties as if the severed provision had not been severed. 

    14.18  Acceptance by BAKBONE.  This Agreement shall not be deemed accepted by or binding
upon BAKBONE unless and until a copy fully executed by Reseller and an authorized representative of BAKBONE is delivered to Reseller. This Agreement shall be deemed accepted where executed by BAKBONE. 

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QuickLinks

Exhibit 4.1

BAKBONE SOFTWARE INC. DOMESTIC RESELLER AGREEMENT TERMS AND CONDITIONS

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