Document:

EXHIBIT 4.4

     FOR PURPOSES OF SECTIONS 1272,  1273 AND 1275 OF THE INTERNAL  REVENUE CODE
OF 1986,  AS AMENDED,  THIS  DEBENTURE IS BEING  ISSUED WITH TAX ORIGINAL  ISSUE
DISCOUNT AND THE ISSUE DATE OF THIS  DEBENTURE IS AUGUST 12, 2003.  IN ADDITION,
THIS DEBENTURE IS SUBJECT TO THE UNITED STATES  FEDERAL  INCOME TAX  REGULATIONS
GOVERNING  CONTINGENT  PAYMENT DEBT INSTRUMENTS.  FOR PURPOSES OF SECTIONS 1272,
1273  AND  1275 OF THE  INTERNAL  REVENUE  CODE,  THE  COMPARABLE  YIELD OF THIS
DEBENTURE IS 8.4%,  COMPOUNDED  SEMIANNUALLY (WHICH WILL BE TREATED AS THE YIELD
TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES).

     DST SYSTEMS,  INC. (THE  "COMPANY")  AGREES,  AND BY ACCEPTING A BENEFICIAL
OWNERSHIP  INTEREST IN THIS DEBENTURE  EACH HOLDER AND ANY  BENEFICIAL  OWNER OF
THIS DEBENTURE  WILL BE DEEMED TO HAVE AGREED,  FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES (1) TO TREAT THIS DEBENTURE AS A DEBT INSTRUMENT THAT IS SUBJECT TO
U.S. TREAS. REG. SEC. 1.1275-4 OR ANY SUCCESSOR  PROVISION (THE "CONTINGENT DEBT
REGULATIONS")  AND  (2)  TO BE  BOUND  (IN  THE  ABSENCE  OF  AN  ADMINISTRATIVE
DETERMINATION OR JUDICIAL RULING TO THE CONTRARY) BY THE COMPANY'S DETERMINATION
OF THE "COMPARABLE YIELD" AND "PROJECTED PAYMENT SCHEDULE" WITHIN THE MEANING OF
THE CONTINGENT DEBT  REGULATIONS,  WITH RESPECT TO THIS  DEBENTURE.  THE COMPANY
AGREES TO  PROVIDE  PROMPTLY  TO THE  HOLDER  OF THIS  DEBENTURE,  UPON  WRITTEN
REQUEST,  THE ISSUE PRICE,  AMOUNT OF TAX ORIGINAL ISSUE  DISCOUNT,  ISSUE DATE,
YIELD TO MATURITY,  COMPARABLE YIELD AND PROJECTED  PAYMENT  SCHEDULE.  ANY SUCH
WRITTEN  REQUEST  SHOULD BE SENT TO THE COMPANY AT THE  FOLLOWING  ADDRESS:  DST
SYSTEMS, INC., 333 West 11th Street, Kansas City, Missouri 64105, ATTENTION: DST
CORPORATE SECRETARY.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY  TRUST  COMPANY  TO THE  ISSUER  OR ITS  AGENT  FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF THE DEPOSITORY  TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO  CEDE  & CO.  OR TO  SUCH  OTHER  ENTITY  AS IS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY),  ANY TRANSFER,  PLEDGE OR OTHER
USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY  PERSON IS  WRONGFUL  SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL  DEBENTURE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY,  OR TO A SUCCESSOR
THEREOF OR SUCH  SUCCESSOR'S  NOMINEE AND  TRANSFERS  OF PORTIONS OF THIS GLOBAL
DEBENTURE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE  HAVE NOT BEEN  REGISTERED  UNDER THE U.S.  SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD OR OTHERWISE  TRANSFERRED IN
THE ABSENCE OF SUCH  REGISTRATION  OR AN APPLICABLE  EXEMPTION  THEREFROM.  EACH
PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE
MAY BE  RELYING  ON THE  EXEMPTION  FROM  THE  PROVISIONS  OF  SECTION  5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

     THIS  DEBENTURE AND ANY COMMON STOCK  ISSUABLE UPON THE  CONVERSION OF THIS
DEBENTURE MAY NOT BE OFFERED,  SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1)
TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER"  WITHIN THE MEANING OF RULE 144A UNDER THE  SECURITIES  ACT ACQUIRING FOR
ITS OWN  ACCOUNT OR FOR THE  ACCOUNT  OF A  QUALIFIED  INSTITUTIONAL  BUYER IN A
TRANSACTION  MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION
FROM  REGISTRATION  UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE),  (3) TO DST SYSTEMS,  INC. OR ANY SUBSIDIARY THEREOF OR (4) PURSUANT
TO AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE SECURITIES  ACT, AND IN EACH
CASE IN  ACCORDANCE  WITH ALL  APPLICABLE  SECURITIES  LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

     THIS DEBENTURE, ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND
ANY RELATED  DOCUMENTATION  MAY BE AMENDED OR SUPPLEMENTED  FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS OF THIS DEBENTURE AND ANY
SUCH  SHARES TO  REFLECT  ANY CHANGE IN  APPLICABLE  LAW OR  REGULATION  (OR THE
INTERPRETATION  THEREOF) OR IN  PRACTICES  RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED  SECURITIES  GENERALLY.  THE HOLDER OF THIS DEBENTURE AND SUCH SHARES
SHALL BE DEEMED BY THE  ACCEPTANCE OF THIS DEBENTURE AND ANY SUCH SHARES TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

<PAGE>

                                DST SYSTEMS, INC.

             3.625% Series B Convertible Senior Debentures due 2023

No. 1                                   Original Principal Amount:  $300,000,000
Issue Date: August 12, 2003                                   CUSIP: 233326 AC 1

     DST  SYSTEMS,  INC.,  a Delaware  corporation  (the  "Company"),  for value
received,  hereby  promises to pay to Cede & Co.,  or  registered  assigns,  the
Accreted  Principal  Amount (as  defined  in the  Indenture  referred  to on the
reverse side of this Security) on August 15, 2023.

     This Security  shall bear regular cash interest and the Original  Principal
Amount (as defined in the Indenture) of this Security shall accrete as specified
on the reverse side of this Security and in the Indenture.  Contingent Interest,
if any, on this  Security,  will be payable as  specified on the reverse side of
this Security and in the Indenture. This Security is convertible,  is subject to
redemption  at the option of the Company or purchase at the option of the Holder
hereof,  all as  specified  on the  reverse  side  of this  Security  and in the
Indenture.

     Reference  is hereby made to the further  provisions  of this  Security set
forth on the reverse  hereof,  which further  provisions  shall for all purposes
have the same effect as if set forth at this place.

<PAGE>

     IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be duly
executed.

                               DST SYSTEMS, INC.

                               By:       /s/ Kenneth V. Hager
                                         ---------------------------------------
                                         Name:   Kenneth V. Hager
                                         Title:  VP - CFO

                               By:       /s/ Gregg Wm. Givens
                                         ---------------------------------------
                                         Name:   Gregg Wm. Givens
                                         Title:  VP - CAO

<PAGE>

           TRUSTEE'S CERTIFICATE OF AUTHENTICATION

JPMORGAN CHASE BANK, as Trustee,
certifies that this is one of the Securities referred
to in the within-mentioned Indenture.

By: /s/ Carol Ng
   ----------------------------------------------------
     Authorized Officer

Dated:  August 12, 2003
        ---------------

<PAGE>

             3.625% Series B Convertible Senior Debentures due 2023

     This  Security  is one of a duly  authorized  issue  of  securities  of the
Company (herein called the "Securities") limited in aggregate Original Principal
Amount to $300,000,000  Original  Principal  Amount,  issued under an Indenture,
dated as of August 12, 2003 (the "Indenture"),  between the Company and JPMorgan
Chase Bank, as Trustee (the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective  rights,  limitations
of rights,  duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities  and of the terms upon which the  Securities  are, and
are to be, authenticated and delivered. Capitalized terms used and not otherwise
defined in this Security are used as defined in the Indenture.

1. Interest.

     This  Security  will bear  interest  from  August 12, 2003 or from the most
recent date to which interest has been paid or duly provided for,  semi-annually
in arrears on February 15 and August 15 of each year (each, an "Interest Payment
Date"), subject to Section 1.08 of the Indenture,  commencing February 15, 2004,
at the rate per  annum  equal to  3.625%,  to but  excluding  August  15,  2008.
Interest on this  Security  shall be  calculated  on the basis of a 360-day year
composed  of twelve  30-day  months.  Interest  payable on this  Security on any
Interest  Payment  Date will  include  interest  for the  immediately  preceding
Interest  Period.  The interest so payable and punctually  paid or duly provided
for on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more  Predecessor  Securities)
is  registered  at the close of  business  on the  Regular  Record Date for such
interest,  which  shall  be the  February  1 or  August  1, as the  case may be,
immediately  preceding the relevant Interest Payment Date. Any interest which is
payable,  but is not  punctually  paid or duly  provided  for,  on any  Interest
Payment Date shall forthwith cease to be payable to the registered Holder hereof
on the relevant  Regular  Record Date by virtue of having been such Holder,  and
may be  paid  to the  Person  in  whose  name  this  Security  (or  one or  more
Predecessor  Securities)  is  registered  at the close of  business on a Special
Record  Date  for the  payment  of such  Defaulted  Interest  to be fixed by the
Company,  notice  whereof shall be given to the Holders of  Securities  not less
than 10 days prior to such Special  Record  Date,  or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities  may be listed,  and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

     From and after August 15,  2008,  the Company will no longer be required to
pay cash interest.  The Original Principal Amount of this Security shall accrete
daily at the  Applicable  Yield on a semiannual  bond  equivalent  basis using a
360-day year composed of twelve 30-day months.  The Applicable Yield shall be 0%
prior to August 15, 2008 and 3.625% per annum on and after April 15, 2008, until
Stated Maturity.  At Stated  Maturity,  the Holder of this Security will receive
$1,714.09 for each $1,000 Original Principal Amount of Securities,  which is the
fully  Accreted  Principal  Amount of this  Security  on such  date,  unless the
Security has been earlier redeemed, purchased or converted.

     2. Contingent Interest.

     From and after August 20, 2008, the Company will pay Contingent Interest on
this Security under the circumstances and in the amounts described in Article 14
of  the  Indenture.   Such  Contingent  Interest,   if  any,  shall  be  payable
semiannually  in arrears  on each  Interest  Payment  Date to the Holder of this
Security as of the close of business on the Regular Record Date relating to such
Interest Payment Date.

3. Interest on Overdue Amounts.

     If the Accreted  Principal  Amount  hereof or any portion of such  Accreted
Principal  Amount is not paid when due (whether  upon  acceleration  pursuant to
Section 4.02 of the Indenture,  upon the dates set for payment of the Redemption
Price,  Purchase Price or Fundamental  Change Purchase Price, or upon the Stated
Maturity of this  Security)  or if  interest  due hereon  (including  Contingent
Interest and Liquidated Damages,  if any) (or any portion of such interest),  is
not paid when  due,  then in each such case the  overdue  amount  shall,  to the
extent  permitted by law,  bear interest at the rate then borne by this Security
or, if any overdue  amount exists on or after August 15, 2008, at the Applicable
Yield of this  Security,  which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including interest
thereon,  has been made or duly provided for. All such interest shall be payable
as set forth in the Indenture.

4. Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company will make
payments in respect of Redemption  Price,  Purchase  Price,  Fundamental  Change
Purchase Price and at Stated  Maturity to Holders who surrender  Securities to a
Paying Agent to collect such payments in respect of the Securities.  The Company
will pay cash amounts in money of the United  States that at the time of payment
is legal tender for payment of public and private  debts.  However,  the Company
may make such cash  payments  by check  payable  in such  money;  provided  that
payment by wire transfer of  immediately  available  funds will be required with
respect  to  principal  of  and  interest  (including  Contingent  Interest  and
Liquidated  Damages,  if any) on all Global  Securities  and all  Securities  of
Holders  of  more  than  $25,000,000  aggregate  Original  Principal  Amount  of
Securities that have requested such method of payment and provided wire transfer
instructions  to the Company or the Paying Agent.  If any Interest  Payment Date
(other than an Interest  Payment  Date  coinciding  with the Stated  Maturity or
earlier  Redemption  Date,  Purchase Date, or Fundamental  Change Purchase Date)
falls on a day that is not a Business Day,  such  Interest  Payment Date will be
postponed  to the next  succeeding  Business Day and no interest on such payment
will accrue for the period from and after the Interest Payment Date to such next
succeeding  Business Day,  provided that, if such Business Day falls in the next
succeeding  calendar month,  the Interest  Payment Date will be the Business Day
immediately  preceding  such  Interest  Payment  Date.  If the Stated  Maturity,
Redemption  Date,  Purchase  Date or  Fundamental  Change  Purchase Date of this
Security would fall on a day that is not a Business Day, the required payment of
interest, if any, and principal will be made on the next succeeding Business Day
and no interest on such payment  will accrue and no  principal  will accrete for
the period from and after the Stated Maturity, Redemption Date, Purchase Date or
Fundamental Change Purchase Date to such next succeeding Business Day.

5. Paying Agent, Conversion Agent and Registrar.

     Initially,  the  Trustee  will act as Paying  Agent,  Conversion  Agent and
Registrar.  The  Company may  appoint  and change any Paying  Agent,  Conversion
Agent,  Registrar  or  co-registrar  without  notice,  other than  notice to the
Trustee.  The Company or any of its  Subsidiaries or any of their Affiliates may
act as Paying Agent, Conversion Agent, Registrar or co-registrar.

6. Indenture.

     The terms of the Securities include those stated in the Indenture and those
made part of the  Indenture by reference to the Trust  Indenture Act of 1939, as
in effect from time to time (the "TIA").  The Securities are subject to all such
terms,  and Holders are referred to the Indenture and the TIA for a statement of
those terms.

     The Securities are general  unsecured  obligations.  The Indenture does not
limit other indebtedness of the Company.

7. Redemption at the Option of the Company.

     No sinking fund is provided for the  Securities.  Prior to August 20, 2008,
the Securities  shall not be redeemable at the option of the Company.  Beginning
on August 20, 2008 and until the Stated Maturity,  the Securities are redeemable
for Cash as a whole,  or from time to time in part, at the option of the Company
at the applicable Redemption Price.

     If the Company  redeems less than all of the  outstanding  Securities,  the
Trustee will select the  Securities to be redeemed (i) by lot; (ii) pro rata; or
(iii) by another  method the  Trustee  considers  fair and  appropriate.  If the
Trustee  selects a portion of a Holder's  Securities for partial  redemption and
the Holder  converts a portion of the same  Securities,  the  converted  portion
shall be deemed to be from the portion selected for redemption.

8. Notice of Redemption.

     Notice of  redemption  will be mailed at least 30 days but not more than 60
days before the  Redemption  Date to each Holder of Securities to be redeemed at
the Holder's registered address. If money sufficient to pay the Redemption Price
of all Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent prior to or on the Redemption Date,  immediately
after such  Redemption  Date interest  shall cease to accrue and principal  will
cease  to  accrete  on  such  Securities  or  portions  thereof.  Securities  in
denominations  larger than $1,000 Original  Principal  Amount may be redeemed in
part but only in integral multiples of $1,000.

9. Purchase By the Company at the Option of the Holder.

     Each Holder has the right to require the Company to purchase the Securities
held by such Holder on August 15, 2008, 2013 and 2018 (each, a "Purchase Date").
If required  by any Holder,  the Company  shall  purchase  Securities  for Cash,
Common Stock or any  combination  of Cash and Common  Stock at a Purchase  Price
equal to the Accreted  Principal  Amount  thereof,  plus accrued and unpaid cash
interest (including  Contingent Interest and Liquidated Damages, if any) to, but
excluding,  the Purchase Date, upon delivery of a Purchase Notice containing the
information set forth in the Indenture, at any time from the opening of business
on the date that is 20 Business Days prior to such Purchase Date until the close
of business on the Business Day  immediately  preceding  such  Purchase Date and
upon  delivery of the  Securities to the Paying Agent by the Holder as set forth
in the Indenture.

     At the option of the Holder and subject to the terms and  conditions of the
Indenture,  the Company shall purchase for Cash, Common Stock or any combination
of Cash and Common Stock all or a portion of the Securities  held by such Holder
as of the date that is not less than 20 nor more than 35 Business Days after the
date of the  Company's  notice to Holders  of the  occurrence  of a  Fundamental
Change  occurring  prior to Stated  Maturity for a Fundamental  Change  Purchase
Price equal to the Accreted  Principal  Amount thereof,  plus accrued and unpaid
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Fundamental  Change Purchase Date,  unless such  Fundamental
Change  Purchase  Date falls after a Regular  Record Date and on or prior to the
corresponding  Interest  Payment  Date,  in which case the Company shall pay the
full amount of accrued and unpaid cash interest  (including  Contingent Interest
and  Liquidated  Damages,  if any) payable on such Interest  Payment Date to the
Holder at the close of business on such Regular Record Date.

     Holders  have the right to  withdraw  any  Purchase  Notice or  Fundamental
Change Purchase Notice,  as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

     As provided in the Indenture,  if Cash or Common Stock (or any  combination
of Cash and Common Stock)  sufficient to pay the Purchase  Price or  Fundamental
Change Purchase Price, as the case may be, of all Securities or portions thereof
to be purchased as of the Purchase Date or the Fundamental Change Purchase Date,
as the case may be, is deposited  with the Paying Agent on the Purchase  Date or
the  Fundamental  Change  Purchase  Date,  as the  case  may  be,  all  interest
(including  Contingent Interest and Liquidated Damages, if any) ceases to accrue
and  principal  ceases to  accrete  on such  Securities  (or  portions  thereof)
immediately after such Purchase Date or Fundamental Change Purchase Date, as the
case may be, and the Holder  thereof  shall have no other  rights as such (other
than the right to receive the  Purchase  Price or  Fundamental  Change  Purchase
Price, as the case may be, upon surrender of such Security).

10. Conversion.

     Subject to the terms of the Indenture, the Holder of a Security may convert
the  Security  into  shares of Common  Stock at the  Conversion  Rate  under the
circumstances  set forth in Section 11.01 of the Indenture;  provided,  however,
the Company may satisfy its obligation with respect to any demand for conversion
by delivering  Common Stock, Cash or a combination of Cash and Common Stock. The
Conversion Rate for the Securities on any Conversion Date shall be determined as
set forth in the  Indenture.  Upon  conversion of a Security,  the Company shall
deliver the Conversion Settlement Distribution within the time periods set forth
in Section 11.02 of the Indenture.

     A Security in respect of which a Holder has delivered a Purchase  Notice or
a Fundamental  Change  Purchase  Notice  exercising the option of such Holder to
require the Company to purchase  such  Security  may be  converted  only if such
notice of exercise is withdrawn in accordance with the terms of the Indenture.

     The Company shall deliver Cash or a check in lieu of any  fractional  share
of Common Stock.

     A Holder's right to convert the Securities into Common Stock of the Company
is also subject to the Company's right to elect pursuant to Section 11.03 of the
Indenture  to pay such  Holder  Cash in lieu of  delivering  all or part of such
Common Stock.

     A Holder  may  convert a portion of a Security  if the  Original  Principal
Amount of such portion is $1,000 or an integral  multiple of $1,000.  No payment
or adjustment shall be made for dividends on the Common Stock except as provided
in the Indenture. On conversion of a Security,  except for conversion during the
period  from the  close of  business  on any  Regular  Record  Date  immediately
preceding any Interest  Payment Date to the opening of business on such Interest
Payment Date, in which case the Holder on such Regular Record Date shall receive
the interest  payable on such Interest Payment Date, that portion of accrued and
unpaid  interest  (including  Contingent  Interest,  if any)  and  accretion  of
principal on the  converted  Security  attributable  to the period from the most
recent Interest Payment Date (or, if no Interest Payment Date has occurred, from
the Issue Date) through the Conversion Date shall not be cancelled, extinguished
or  forfeited,  but  rather  shall be  deemed  to be paid in full to the  Holder
thereof through delivery of the Common Stock (together with the Cash payment, if
any, in lieu of fractional  shares), or Cash or a combination of Cash and Common
Stock in lieu thereof,  in exchange for the Security being converted pursuant to
the provisions hereof.

     Securities or portions thereof surrendered for conversion during the period
from the close of business on any Regular Record Date immediately  preceding any
Interest  Payment Date to the opening of business on such Interest  Payment Date
shall be  accompanied  by  payment  to the  Company  or its  order,  in New York
Clearing  House funds or other funds  acceptable  to the  Company,  of an amount
equal to the interest  payable on such Interest Payment Date with respect to the
Original  Principal Amount of Securities or portions  thereof being  surrendered
for  conversion;  provided  that no such payment need be made (1) if the Company
has specified a Redemption  Date that occurs during the period from the close of
business on a Regular  Record  Date to the  opening of business on the  Interest
Payment Date to which such Regular  Record Date relates,  (2) if the Company has
specified a  Fundamental  Change  Purchase  Date during  such  period,  (3) with
respect to any Liquidated  Damages payable on such Interest  Payment Date or (4)
if any overdue interest or overdue Contingent  Interest exists on the Conversion
Date with  respect to the  Securities  converted,  to the extent of such overdue
interest.

     No fractional  shares will be issued upon conversion;  in lieu thereof,  an
amount will be paid in Cash pursuant to Section 11.04 of the Indenture.

     The  Company  agrees,  and by  acceptance  of a  beneficial  interest  in a
Security each Holder and any  beneficial  owner of a Security shall be deemed to
agree to be bound (in the absence of an administrative determination or judicial
ruling to the contrary) by the Company's  determination  of the comparable yield
and  projected  payment  schedule  within  the  meaning of the  contingent  debt
regulations,  and accordingly  shall treat, for United States federal income tax
purposes, the fair market value of the Common Stock received upon the conversion
of a Security  (together with any Cash payment in lieu of fractional  shares) or
Cash in lieu thereof,  or a combination of Cash and Common Stock as a contingent
payment on the Security for purposes of Treasury  Regulation Section 1.1275-4 or
any successor provision.

     To convert a Security,  a Holder must fulfill the  conditions  set forth in
Section 11.02 of the Indenture.

     The  Conversion  Rate will be  adjusted  as set forth in  Article 11 of the
Indenture.

11. Denominations; Transfer; Exchange.

     The  Securities  are  in  fully  registered  form,   without  coupons,   in
denominations of $1,000 of Original  Principal Amount and integral  multiples of
$1,000.  A Holder may transfer or exchange  Securities  in  accordance  with the
Indenture.  The Registrar may require a Holder,  among other things,  to furnish
appropriate  endorsements  and transfer  documents and to pay any taxes and fees
required by law or permitted by the  Indenture.  The Registrar need not transfer
or exchange any  Securities  selected for redemption  (except,  in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
or any Securities in respect of which a Purchase  Notice or  Fundamental  Change
Purchase  Notice  has been  given and not  withdrawn  (except,  in the case of a
Security  to be  purchased  in  part,  the  portion  of the  Security  not to be
purchased)  or any  Securities  for a period of 15 days  before the mailing of a
notice of redemption of Securities to be redeemed.

12. Persons Deemed Owners.

     The registered  Holder of this Security may be treated as the owner of this
Security for all purposes.

13. Unclaimed Money or Securities.

     The Trustee and the Paying  Agent shall  return to the Company upon written
request any money or securities  held by them for the payment of any amount with
respect  to the  Securities  that  remains  unclaimed  for two years  subject to
applicable unclaimed property law. After return to the Company, Holders entitled
to the money or  securities  must look to the  Company  for  payment  as general
creditors unless an applicable abandoned property law designates another person.

14. Amendment; Waiver.

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities  may be amended with the written  consent of the Holders of at
least a majority in aggregate Original Principal Amount of the Securities at the
time  outstanding  and (ii)  certain  Defaults  may be waived  with the  written
consent of the Holders of a majority in aggregate  Original  Principal Amount of
the  Securities at the time  outstanding.  The Company and the Trustee may amend
the Indenture under certain circumstances without the consent of the Holders, as
described in the Indenture.

15. Defaults and Remedies.

     If an Event of  Default  occurs  and is  continuing,  the  Trustee,  or the
Holders of at least 25% in aggregate Original Principal Amount of the Securities
then  outstanding,  may  declare  all  the  Securities  to be  due  and  payable
immediately.  Certain  events of bankruptcy or insolvency  are Events of Default
which will result in the Securities  becoming due and payable  immediately  upon
the occurrence of such Events of Default.

     Holders may not enforce the Indenture or the Securities  except as provided
in the  Indenture.  The  Trustee  may refuse to  enforce  the  Indenture  or the
Securities  unless it receives  reasonable  indemnity  or  security.  Subject to
certain  limitations,  Holders of a majority  in  aggregate  Original  Principal
Amount of the Securities at the time  outstanding  may direct the Trustee in its
exercise of any trust or power.  The Trustee may withhold from Holders notice of
any  continuing  Default  (except a Default in payment  on any  Security)  if it
determines that withholding notice is in their interests.

16. Trustee Dealings with the Company.

     Subject to certain  limitations  imposed by the TIA, the Trustee  under the
Indenture,  in its  individual  or any other  capacity,  may become the owner or
pledgee of Securities and may otherwise deal with and collect  obligations  owed
to it by the Company or its  Affiliates  and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

17. No Recourse Against Others.

     A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any  obligations  of the Company under the Securities
or the  Indenture  or for any claim based on, in respect of or by reason of such
obligations or their creation.  By accepting a Security,  each Holder waives and
releases  all  such   liability.   The  waiver  and  release  are  part  of  the
consideration for the issue of the Securities.

18. Authentication.

     This  Security  shall not be valid  until an  authorized  signatory  of the
Trustee manually signs the Trustee's  Certificate of Authentication on the other
side of this Security.

19. Abbreviations.

     Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common),  TEN ENT (=tenants by the entireties),  JT
TEN (=joint  tenants with right of  survivorship  and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

20. GOVERNING LAW.

     THE LAWS OF THE  STATE OF NEW YORK  SHALL  GOVERN  THE  INDENTURE  AND THIS
SECURITY, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

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

     The Company  will  furnish to any Holder upon  written  request and without
charge a copy of the Indenture.

                  DST Systems, Inc.
                  333 West 11th Street
                  Kansas City, MO 64105
                  Attention:  DST Corporate Secretary

<PAGE>

                                                                      Schedule I

<TABLE>
<CAPTION>

                                DST SYSTEMS, INC.
              3.625% Series B Convertible Senior Debenture Due 2023

No. 1

=========== ======================================== ===================================== =========================
                                                     Notation Explaining Original          Authorized Signature of
Date        Original Principal Amount                Principal Amount Recorded             Trustee or Trustee
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</TABLE>

<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

     For value received  ______________________________hereby sell(s), assign(s)
and transfer(s) unto  ___________________________________  (Please insert social
security  or other  Taxpayer  Identification  Number  of  assignee)  the  within
Security,     and    hereby     irrevocably     constitutes     and     appoints
______________________________________ attorney to transfer said Security on the
books of the Company, with full power of substitution in the premises.

     In connection  with any transfer of the Security prior to the expiration of
the holding  period  applicable  to sales  thereof  under Rule 144(k)  under the
Securities Act (or any successor provision),  the undersigned confirms that such
Security is being transferred:

           [  ]     To  DST  Systems,  Inc.  (the  "Company")  or  a  subsidiary
                    thereof; or

           [  ]     To a "qualified institutional buyer" in compliance with Rule
                    144A under the Securities Act of 1933, as amended; or

           [  ]     Pursuant to a Registration Statement which has been declared
                    effective under the Securities Act of 1933, as amended,  and
                    which continues to be effective at the time of transfer; or

           [  ]     Pursuant  to  and  in  compliance  with  another   available
                    exemption  from  the   registration   requirements   of  the
                    Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee or Registrar will refuse to
register any of the Securities  evidenced by this certificate in the name of any
person other than the registered holder thereof.

Dated: ______________________
                                            ------------------------------

                                            ------------------------------
                                            Signature(s)

                    Signature(s)  must be guaranteed  by an "eligible  guarantor
                    institution"   meeting  the  requirements  of  the  Security
                    registrar,   which   requirements   include   membership  or
                    participation  in  the  Security  Transfer  Agent  Medallion
                    Program   ("STAMP")  or  such  other  "signature   guarantee
                    program" as may be determined  by the Security  registrar in
                    addition  to,  or  in  substitution   for,  STAMP,   all  in
                    accordance  with the  Securities  Exchange  Act of 1934,  as
                    amended.

                                            ------------------------------
                                            Signature Guarantee

<PAGE>
                                CONVERSION NOTICE

To convert this Security pursuant to Article 11 of the Indenture, check the box:

To convert only part of this Security, state the Original Principal Amount to be
converted  (which  must  be  $1,000  or  an  integral  multiple  of  $1,000):  $
___________________________

If you want the stock certificate made out in another person's name, fill in the
form below:

--------------------------------------------------------------------------------
                 (Insert other person's soc. sec. or tax ID no.)

--------------------------------------------------------------------------------
            (Print or type other person's name, address and zip code)

Your
Signature: _____________________________________________

(Sign exactly as your name appears on the other side of this Security)

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

<PAGE>

                                 PURCHASE NOTICE

             3.625% Series B Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  B  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the  Securities  and requests and instructs the Company to purchase the
entire Original Principal Amount of this Security,  or portion thereof (which is
$1,000 Original  Principal Amount or an integral  multiple  thereof)  designated
below,  in  accordance  with the  terms  of the  Indenture  at the  price of the
Accreted Principal Amount or proportional portion thereof, together with accrued
cash interest (including Contingent Interest and Liquidated Damages, if any) to,
but excluding,  the Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
applicable  Purchase Date pursuant to the terms and conditions  specified in the
Indenture.  This election is made pursuant to: Article 12, Purchase at Option of
Holders.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  12.03  of the
Indenture,  to pay the Purchase  Price, in whole or in part, in shares of Common
Stock but such portion of the Purchase  Price shall  ultimately  be paid to such
Holder entirely in Cash because any of the conditions to payment of the Purchase
Price in shares of Common Stock is not  satisfied  prior to 5:00 p.m.,  New York
City time, on the Business Day  immediately  preceding the Purchase Date, as set
forth in Section 12.03 of the Indenture, I hereby elect to:

     [ ] withdraw this Purchase Notice as to $____________ in Original Principal
Amount      of      Securities      with     the      following      certificate
numbers:________________________________ to which this Purchase Notice relates;

     [ ] receive Cash in respect of the entire Purchase Price for all Securities
(or portions thereof) to which this Purchase Notice relates.

<PAGE>

            OPTION OF HOLDER TO ELECT PURCHASE ON FUNDAMENTAL CHANGE

             3.625% Series B Convertible Senior Debentures due 2023

TO:      DST SYSTEMS, INC.
         JPMORGAN CHASE BANK

     The  undersigned  registered  owner  of  this  Series  B  Debenture  hereby
irrevocably  acknowledges  receipt  of a notice  from  DST  Systems,  Inc.  (the
"Company")  regarding  the right of holders to elect to require  the  Company to
purchase the Securities upon a Fundamental Change and requests and instructs the
Company  pursuant to Section  13.01 to purchase  the entire  Original  Principal
Amount of this Security,  or portion thereof (which is $1,000 Original Principal
Amount or an integral multiple thereof) designated below, in accordance with the
terms  of the  Indenture  at the  price  of the  Accreted  Principal  Amount  or
proportional  portion  thereof,  together with accrued cash interest  (including
Contingent  Interest and  Liquidated  Damages,  if any) to, but  excluding,  the
Fundamental  Change Purchase Date, to the registered holder hereof.  Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the  Indenture.  The  Securities  shall be purchased by the Company as of the
Fundamental Change Purchase Date pursuant to the terms and conditions  specified
in the Indenture.

     Dated:

     Signature(s):

     NOTICE:  The above  signatures of the holder(s) hereof must correspond with
the name as written  upon the face of the Security in every  particular  without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Original   Principal   Amount  to  be   purchased   (if  less  than   all):
$_____________________.

     In  the  event  the  Company  elects,  pursuant  to  Section  13.02  of the
Indenture, to pay the Fundamental Change Purchase Price, in whole or in part, in
shares of Common Stock but such portion of the Fundamental Change Purchase Price
shall  ultimately  be paid to such Holder  entirely  in Cash  because any of the
conditions  to payment of the  Fundamental  Change  Purchase  Price in shares of
Common Stock is not  satisfied  prior to 5:00 p.m.,  New York City time,  on the
Business Day  immediately  preceding the Purchase  Date, as set forth in Section
13.02 of the Indenture, I hereby elect to:

     [ ] withdraw this Fundamental Change Purchase Notice as to $____________ in
Original   Principal  Amount  of  Securities  with  the  following   certificate
numbers:________________________________   to  which  this  Fundamental   Change
Purchase Notice relates;

     [ ] receive Cash in respect of the entire Fundamental Change Purchase Price
for all  Securities  (or  portions  thereof)  to which this  Fundamental  Change
Purchase Notice relates.EXHIBIT 4.5

                                DST SYSTEMS, INC.

                                  $450,000,000

             4.125% SERIES A CONVERTIBLE SENIOR DEBENTURES DUE 2023

                                  $250,000,000

             3.625% SERIES B CONVERTIBLE SENIOR DEBENTURES DUE 2023

                          REGISTRATION RIGHTS AGREEMENT

                                   Dated as of

                                 August 12, 2003

<PAGE>

     REGISTRATION  RIGHTS  AGREEMENT  dated as of August 12,  2003  between  DST
Systems,  Inc., a Delaware  corporation  (together  with any  successor  entity,
herein referred to as the "Company") and Citigroup  Global Markets Inc. and Banc
of America  Securities LLC, as representatives of the several initial purchasers
(the "Initial Purchasers") under the Purchase Agreement (as defined below).

     Pursuant  to the  Purchase  Agreement  dated as of August 6, 2003 among the
Company and the  Initial  Purchasers  (the  "Purchase  Agreement"),  the Initial
Purchasers have agreed to purchase from the Company  $450,000,000  ($540,000,000
if the  Representatives  exercise  their option in full) in  aggregate  original
principal amount of 4.125% Series A Convertible  Senior  Debentures due 2023 and
$250,000,000 ($300,000,000 if the Representatives exercise their option in full)
in aggregate  original  principal  amount of 3.625% Series B Convertible  Senior
Debentures due 2023  (collectively,  the  "Securities").  The Securities will be
convertible  into fully paid,  nonassessable  shares of common stock,  par value
$0.01 per share,  of the Company (the "Common  Stock").  The Securities  will be
convertible  on the  terms,  and  subject  to the  conditions,  set forth in the
Indenture (as defined herein).  To induce the Initial Purchasers to purchase the
Securities,  the Company has agreed to provide the registration rights set forth
in this Agreement pursuant to the Purchase Agreement.

     The parties hereby agree as follows:

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

     "Affiliate" of any specified person means any other person which,  directly
or  indirectly,  is in control of, is controlled  by, or is under common control
with,  such  specified  person.  For purposes of this  definition,  control of a
person means the power, direct or indirect,  to direct or cause the direction of
the management and policies of such person whether by contract or otherwise; and
the terms  "controlling"  and  "controlled"  have  meanings  correlative  to the
foregoing.

     "Agreement": This Registration Rights Agreement.

     "Amendment Effectiveness Deadline Date": As defined in Section 2(e) hereof.

     "Blue Sky Application": As defined in Section 6(a)(i) hereof.

     "Business Day": The definition of "Business Day" in the Indenture.

     "Commission": Securities and Exchange Commission.

     "Common Stock": As defined in the preamble hereof.

     "Company": As defined in the preamble hereof.

     "Effectiveness Period": As defined in Section 2(a)(iii) hereof.

     "Effectiveness Target Date": As defined in Section 2(a)(ii) hereof.

     "Exchange Act": Securities Exchange Act of 1934, as amended.

     "Holder": A Person who owns, beneficially or otherwise, Transfer Restricted
Securities.

     "Indemnified Holder": As defined in Section 6(a) hereof.

     "Indenture":  The Indenture dated as of August 12, 2003 between the Company
and  JPMorgan  Chase Bank,  as trustee  (the  "Trustee"),  pursuant to which the
Securities  are  to be  issued,  as  such  Indenture  is  amended,  modified  or
supplemented from time to time in accordance with the terms thereof.

     "Initial Purchasers": As defined in the preamble hereof.

     "Liquidated Damages": As defined in Section 3(b) hereof.

     "Liquidated Damages Payment Date": Each February 15 and August 15.

     "Majority of Holders":  Holders holding over 50% of the aggregate  original
principal amount of Securities  outstanding;  provided that, for the purposes of
this definition,  a holder of shares of Common Stock which  constitute  Transfer
Restricted  Securities  issued upon conversion of the Securities shall be deemed
to hold an aggregate original principal amount of Securities (in addition to the
original  principal  amount  of  Securities  held by such  holder)  equal to the
quotient  of (x) the number of such  shares of Common  Stock held by such holder
and (y) the  conversion  rate  in  effect  at the  time  of such  conversion  as
determined in accordance with the Indenture.

     "NASD": National Association of Securities Dealers, Inc.

     "Securities": As defined in the preamble hereof.

     "Notice and  Questionnaire":  A written  notice  executed by the respective
Holder and delivered to the Company  containing  substantially  the  information
called for by the Selling  Securityholder  Notice and Questionnaire  attached as
Annex A to the Offering  Memorandum of the Company dated August 6, 2003 relating
to the Securities.

     "Notice  Holder":  On any date,  any Holder that has delivered a Notice and
Questionnaire to the Company on or prior to such date.

     "Person": An individual, partnership,  corporation, company, unincorporated
organization,  trust,  joint  venture  or a  government  or agency or  political
subdivision thereof.

     "Purchase Agreement": As defined in the preamble hereof.

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

     "Record Holder":  With respect to any Liquidated Damages Payment Date, each
Person who is a Holder of Securities which are Transfer Restricted Securities on
the  February  1 or  August  1, as the case may be,  immediately  preceding  the
relevant Liquidated Damages Payment Date.

     "Registration Default": As defined in Section 3(a) hereof.

     "Securities Act": Securities Act of 1933, as amended.

     "Shelf Filing Deadline": As defined in Section 2(a)(i) hereof.

     "Shelf Registration Statement": As defined in Section 2(a)(i) hereof.

     "Subsequent  Shelf  Registration  Statement":  As defined  in Section  2(c)
hereof.

     "Suspension Notice": As defined in Section 4(c) hereof.

     "Suspension Period": As defined in Section 4(b)(i) hereof.

     "TIA":  Trust  Indenture  Act of  1939,  as  amended,  and  the  rules  and
regulations of the Commission thereunder, in each case, as in effect on the date
the Indenture is qualified under the TIA.

     "Transfer  Restricted  Securities":  Each Security and each share of Common
Stock issued upon conversion of Securities until the earlier of:

          (i) the date on which  such  Security  or such  share of Common  Stock
     issued upon conversion has been effectively registered under the Securities
     Act and disposed of in accordance with the Shelf Registration Statement;

          (ii) the date on which such  Security  or such  share of Common  Stock
     issued upon conversion is transferred in compliance with Rule 144 under the
     Securities  Act or may be sold or  transferred  by a  person  who is not an
     affiliate of the Company  pursuant to Rule 144(k) under the  Securities Act
     (or any other similar provision then in force); or

          (iii) the date on which such  Security  or such share of Common  Stock
     issued upon  conversion  ceases to be  outstanding  (whether as a result of
     redemption, repurchase and cancellation, conversion or otherwise).

     "Underwritten  Registration":  A  registration  in which  Securities of the
Company are sold to an underwriter for reoffering to the public.

     Unless the context  otherwise  requires,  the singular includes the plural,
and words in the plural include the singular.

     2. Shelf Registration.

          (a) The Company shall:

               (i) not later  than 90 days  after the date  hereof  (the  "Shelf
          Filing Deadline"), cause to be filed a registration statement pursuant
          to  Rule  415  under  the  Securities  Act  (the  "Shelf  Registration
          Statement"),  which Shelf  Registration  Statement  shall  provide for
          resales of all  Transfer  Restricted  Securities  held by Holders that
          have  provided  the  information  required  pursuant  to the  terms of
          Section 2(e) hereof;

               (ii)  use  its  reasonable   best  efforts  to  cause  the  Shelf
          Registration  Statement to be declared  effective by the Commission as
          promptly as is practicable,  but in no event later than 180 days after
          the date hereof (the "Effectiveness Target Date"); and

               (iii)  use  its  reasonable   best  efforts  to  keep  the  Shelf
          Registration  Statement  continuously   effective,   supplemented  and
          amended as required by the  provisions  of Section  4(b) hereof to the
          extent necessary to ensure that (A) it is available for resales by the
          Holders of Transfer  Restricted  Securities entitled to the benefit of
          this  Agreement  and  (B)  conforms  with  the  requirements  of  this
          Agreement and the Securities Act and the rules and  regulations of the
          Commission  promulgated thereunder as announced from time to time, for
          a period (the "Effectiveness Period") until the earliest of:

                    (1)  the  date  when  the  Holders  of  Transfer  Restricted
               Securities  are  able  to  sell  all  such  Transfer   Restricted
               Securities   immediately   pursuant  to  Rule  144(k)  under  the
               Securities Act; or

                    (2) the date when all of the Transfer Restricted  Securities
               are disposed of pursuant to the Shelf  Registration  Statement or
               Rule 144 under the Securities  Act or any similar  provision then
               in effect.

          (b) None of the Company's  security holders (other than the Holders of
     Transfer Restricted  Securities) shall have the right to include any of the
     Company's  securities  in  the  Shelf  Registration  Statement,  except  as
     provided in the Registration Rights Agreement dated as of December 21, 1998
     among the Company,  USCS  International,  Inc. and the stockholders of USCS
     International, Inc. listed on Exhibit A thereto.

          (c) If the  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 all Transfer Restricted
     Securities  shall have been resold pursuant thereto or shall have otherwise
     ceased to be Transfer  Restricted  Securities),  the Company  shall use its
     reasonable  best  efforts  to obtain  the  prompt  withdrawal  of any order
     suspending the effectiveness thereof, and in any event shall within 30 days
     of such cessation of effectiveness  amend the Shelf Registration  Statement
     in a manner  reasonably  expected  to obtain  the  withdrawal  of the order
     suspending  the  effectiveness   thereof,   or  file  an  additional  Shelf
     Registration  Statement  covering all of the securities that as of the date
     of such filing are Transfer  Restricted  Securities  (a  "Subsequent  Shelf
     Registration  Statement").  If a Subsequent Shelf Registration Statement is
     filed,  the  Company  shall use its  reasonable  best  efforts to cause the
     Subsequent Shelf Registration  Statement to become effective as promptly as
     is  practicable  after  such  filing  and to  keep  such  Subsequent  Shelf
     Registration   Statement  continuously  effective  until  the  end  of  the
     Effectiveness Period.

          (d) The  Company  shall  supplement  and amend the Shelf  Registration
     Statement if required by the rules,  regulations or instructions applicable
     to the  registration  form used by the Company for such Shelf  Registration
     Statement,  if required by the Securities Act or as reasonably requested by
     the  Initial  Purchasers  or by the Trustee on behalf of the Holders of the
     Transfer   Restricted   Securities   covered  by  such  Shelf  Registration
     Statement.

          (e) Each Holder  agrees that if such  Holder  wishes to sell  Transfer
     Restricted  Securities  pursuant  to a  Shelf  Registration  Statement  and
     related Prospectus, it will do so only in accordance with this Section 2(e)
     and Section 4(b) hereof.  Each Holder  wishing to sell Transfer  Restricted
     Securities   pursuant  to  a  Shelf  Registration   Statement  and  related
     Prospectus must deliver a Notice and Questionnaire to the Company. In order
     to be named as a selling  securityholder  in the  Prospectus at the time of
     effectiveness  of  the  Shelf  Registration   Statement,   the  Notice  and
     Questionnaire  must be  delivered  at least 10  Business  Days prior to the
     effectiveness of the Shelf Registration Statement.  From and after the date
     the Shelf Registration Statement is declared effective,  the Company shall,
     as promptly as  practicable  after the date a Notice and  Questionnaire  is
     delivered,  and in any event upon the later of (x) 10  Business  Days after
     such date (or, in the event a Notice and  Questionnaire is delivered during
     the period  beginning  on and  including  the date that is 9 Business  Days
     prior to the date the Shelf  Registration  Statement is declared  effective
     and ending on and  including the date the Shelf  Registration  Statement is
     declared effective,  10 Business Days after the date the Shelf Registration
     Statement  is  declared  effective)  or  (y) 10  Business  Days  after  the
     expiration  of  any  Suspension  Period  in  effect  when  the  Notice  and
     Questionnaire is delivered:

               (i) if required by applicable law,  prepare and file with the SEC
          a  post-effective  amendment  to the Shelf  Registration  Statement or
          prepare and, if required by  applicable  law, file a supplement to the
          related  Prospectus  or a  supplement  or  amendment  to any  document
          incorporated  therein by reference or file any other required document
          so that the Holder  delivering such Notice and  Questionnaire is named
          as a selling  securityholder in the Shelf  Registration  Statement and
          the  related  Prospectus  in such a manner as to permit such Holder to
          deliver such  Prospectus  to  purchasers  of the  Transfer  Restricted
          Securities in accordance with applicable law and, if the Company shall
          file a post-effective  amendment to the Shelf Registration  Statement,
          use its reasonable best efforts to cause such post-effective amendment
          to be declared  effective  under the  Securities Act as promptly as is
          practicable,   but  in  any   event  by  the  date   (the   "Amendment
          Effectiveness  Deadline  Date")  that is 45 days  after  the date such
          post-effective amendment is required by this clause to be filed;

               (ii) provide such Holder upon its request copies of any documents
          filed pursuant to Section 2(e)(i) hereof; and

               (iii)  notify such Holder as  promptly as  practicable  after the
          effectiveness under the Securities Act of any post-effective amendment
          filed pursuant to Section 2(e)(i) hereof;

provided that if such Notice and  Questionnaire is delivered during a Suspension
Period,  the  Company  shall so inform the  Holder  delivering  such  Notice and
Questionnaire  and shall take the  actions  set forth in clauses  (i),  (ii) and
(iii) above upon expiration of the Suspension  Period in accordance with Section
4(b) hereof.  Notwithstanding anything contained herein to the contrary, (i) the
Company  shall be under no  obligation  to name any Holder  that is not a Notice
Holder as a selling  securityholder  in any  Registration  Statement  or related
Prospectus and (ii) the Amendment  Effectiveness Deadline Date shall be extended
by up to 10 Business Days after the  expiration of a Suspension  Period (and the
Company  shall  incur  no  obligation  to pay  Liquidated  Damages  during  such
extension)  if such  Suspension  Period  shall  be in  effect  on the  Amendment
Effectiveness Deadline Date.

     3. Liquidated Damages.

          (a) Each event referred to in the following  clauses (i) through (vi),
     is a "Registration Default":

               (i) the  Shelf  Registration  Statement  is not  filed  with  the
          Commission prior to or on the Shelf Filing Deadline;

               (ii) the  Shelf  Registration  Statement  has not  been  declared
          effective by the Commission  prior to or on the  Effectiveness  Target
          Date;

               (iii) the Company has failed to perform its obligations set forth
          in Section 2(e) hereof within the time period required therein;

               (iv) any  post-effective  amendment to a Shelf Registration filed
          pursuant to Section 2(e)(i) hereof has not become  effective under the
          Securities  Act on or prior to the  Amendment  Effectiveness  Deadline
          Date;

               (v) except as  provided  in  Section  4(b)(i)  hereof,  the Shelf
          Registration Statement is filed and declared effective but, during the
          Effectiveness  Period,  shall thereafter cease to be effective or fail
          to be usable for its intended  purpose without being succeeded  within
          five  Business  Days  by  a  post-effective  amendment  to  the  Shelf
          Registration  Statement,  a supplement  to the  Prospectus or a report
          filed with the  Commission  pursuant to Section  13(a),  13(c),  14 or
          15(d) of the  Exchange Act that cures such failure and, in the case of
          a post-effective  amendment, is itself immediately declared effective;
          or

               (vi) (A) prior to or on the 45th or 60th day, as the case may be,
          of any Suspension  Period,  such suspension has not been terminated or
          (B) a Suspension Period when aggregated with other Suspension  Periods
          during the prior 360-day period exceeds 90 days,

     For purposes of this Agreement,  each Registration  Default set forth above
shall begin and be cured on the dates set forth in the table below:

 Type of
Registration
 Default              Beginning                           Cure
 by Clause               Date                             Date
 ---------               ----                            ----

    (i)        Shelf Filing Deadline            the date the Shelf
                                                Registration Statement is
                                                filed

    (ii)
               Effectiveness Target  Date       the date the Shelf
                                                Registration Statement is
                                                declared effective by the
                                                Commission

   (iii)       the date by which the            the date the Company
               Company is required to           performs its obligations set
               perform its obligations          forth in Section 2(e) hereof
               under Section 2(e) hereof

    (iv)       the Amendment                     the date the applicable
               Effectiveness Deadline            post-effective amendment
               Date                              to a Shelf Registration
                                                 Statement becomes
                                                 effective under the
                                                 Securities Act

    (v)        the date five Business Days       the date any post-effective
               following the date that the       amendment is declared effective
               Shelf Registration Statement      by the Commission or any
               ceases to be effective or fails   supplement to the Prospectus or
               to be usable                      report is filed that makes the
                                                 Shelf Registration Statement
                                                 usable

    (vi)       the date on which a Suspension    termination of the applicable
               Period, or the aggregate          Suspension Period
               duration of Suspension Periods
               in any period, exceeds the
               permitted number of days

          (b) If a  Registration  Default  occurs,  other  than  a  Registration
     Default  relating  to  a  failure  to  file  or  have  an  effective  Shelf
     Registration Statement with respect to shares of Common Stock issuable upon
     conversion of the Securities that are Transfer Restricted  Securities,  the
     Company hereby agrees to pay interest  ("Liquidated  Damages") with respect
     to  the  Securities  that  are  Transfer  Restricted  Securities  from  and
     including the day following  beginning of the  Registration  Default to but
     excluding the earlier of (1) the day on which the Registration  Default has
     been cured and (2) the date the Shelf  Registration  Statement is no longer
     required to be kept  effective,  accruing at a rate (x) with respect to the
     first 90-day period during which a Registration Default shall have occurred
     and be  continuing,  equal to 0.25%  per  annum of the  aggregate  accreted
     principal  amount of the  Securities,  and (y) with  respect  to the period
     commencing on the 91st day following the day the Registration Default shall
     have occurred and be continuing,  equal to 0.50% per annum of the aggregate
     accreted  principal  amount of the  Securities;  provided  that in no event
     shall  Liquidated  Damages accrue at a rate per year exceeding 0.50% of the
     aggregate accreted  principal amount of the Securities.  In addition to the
     provisions  set forth in this  Agreement,  Section  11.03 of the  Indenture
     shall  apply  in  the  event  that a  Holder  converts  some  or all of its
     Securities into Common Stock when there exists a Registration  Default with
     respect to the Common Stock.

          (c) All accrued  Liquidated Damages shall be paid in arrears to Record
     Holders by the Company on each  Liquidated  Damages  Payment Date. Upon the
     cure of all Registration Defaults relating to any particular Security,  the
     accrual of Liquidated Damages with respect to such Security will cease.

          (d) All  obligations  of the Company set forth in this  Section 3 that
     are outstanding with respect to any Security that is a Transfer  Restricted
     Security  at the time  such  Security  ceases to be a  Transfer  Restricted
     Security shall survive until such time as all such obligations with respect
     to such Security shall have been satisfied in full.

          (e) The  Liquidated  Damages set forth  above  shall be the  exclusive
     monetary  remedy  available to the Holders of Securities  that are Transfer
     Restricted Securities for each Registration Default.

     4. Registration Procedures.

          (a) In connection with the Shelf Registration  Statement,  the Company
     shall comply with all the  provisions  of Section 4(b) hereof and shall use
     its reasonable best efforts to effect such  registration to permit the sale
     of the  Transfer  Restricted  Securities,  and pursuant  thereto,  shall as
     expeditiously  as  possible  prepare and file with the  Commission  a Shelf
     Registration Statement relating to the registration on any appropriate form
     under the Securities Act.

          (b) In  connection  with  the  Shelf  Registration  Statement  and any
     Prospectus  required  by this  Agreement  to  permit  the sale or resale of
     Transfer Restricted Securities, the Company shall:

               (i) Subject to any notice by the Company in accordance  with this
          Section  4(b) of the  existence  of any  fact  or  event  of the  kind
          described in Section 4(b)(iii)(D),  use its reasonable best efforts to
          keep the Shelf Registration  Statement  continuously  effective during
          the Effectiveness  Period; upon the occurrence of any event that would
          cause the Shelf  Registration  Statement or the  Prospectus  contained
          therein (A) to contain a material  misstatement or omission or (B) not
          to  be  effective  and  usable  for  resale  of  Transfer   Restricted
          Securities  during the  Effectiveness  Period,  the Company shall file
          promptly an appropriate amendment to the Shelf Registration Statement,
          a supplement to the  Prospectus or a report filed with the  Commission
          pursuant to Section 13(a),  13(c), 14 or 15(d) of the Exchange Act, in
          the case of clause (A),  correcting any such misstatement or omission,
          and, in the case of either clause (A) or (B), use its reasonable  best
          efforts to cause any such  amendment to be declared  effective and the
          Shelf  Registration  Statement  and the related  Prospectus  to become
          usable for their intended purposes as soon as practicable  thereafter.
          Notwithstanding   the   foregoing,   the   Company   may  suspend  the
          effectiveness of the Shelf Registration Statement by written notice to
          the Holders for a period not to exceed an  aggregate of 45 days in any
          90-day period (each such period, a "Suspension Period") if:

               (x) an event  occurs and is  continuing  as a result of which the
          Shelf  Registration  Statement,  the  Prospectus,   any  amendment  or
          supplement thereto, or any document  incorporated by reference therein
          would,  in the Company's  judgment,  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 not  misleading;
          and

               (y) the Company  determines in good faith that the  disclosure of
          such event at such time could be seriously  detrimental to the Company
          and its subsidiaries;

     provided  that,  in  the  event  the  disclosure  relates  to a  previously
     undisclosed  proposed  or  pending  material  business   transaction,   the
     disclosure  of  which  the  Company  determines  in  good  faith  would  be
     reasonably  likely to impede  the  Company's  ability  to  consummate  such
     transaction,  the Company may extend a Suspension Period from 45 days to 60
     days in any 90-day period; provided, however, that Suspension Periods shall
     not exceed an aggregate of 90 days in any 360-day period. The Company shall
     not be required to specify in the written  notice to the Holders the nature
     of the event giving rise to the  Suspension  Period.  Each  Holder,  by its
     acceptance  of  the   Securities,   agrees  to  hold  in   confidence   any
     communication  by the  Company  in  response  to any  written  notice  of a
     proposed sale.

               (ii) Prepare and file with the  Commission  such  amendments  and
          post-effective  amendments to the Shelf Registration  Statement as may
          be necessary to keep the Shelf Registration Statement effective during
          the Effectiveness  Period;  cause the Prospectus to be supplemented by
          any required Prospectus supplement, and as so supplemented to be filed
          pursuant to Rule 424 under the  Securities  Act,  and to comply  fully
          with the  applicable  provisions  of  Rules  424 and  430A  under  the
          Securities Act in a timely  manner;  and comply with the provisions of
          the  Securities  Act with respect to the  disposition  of all Transfer
          Restrict Securities covered by the Shelf Registration Statement during
          the  applicable  period  in  accordance  with the  intended  method or
          methods of  distribution by the sellers thereof set forth in the Shelf
          Registration Statement or supplement to the Prospectus.

               (iii) Advise the selling  Holders  promptly  and, if requested by
          such selling  Holders,  to confirm  such advice in writing,  except as
          provided in clause (D) below:

                    (A) when the  Prospectus  or any  Prospectus  supplement  or
               post-effective amendment has been filed, and, with respect to the
               Shelf  Registration  Statement  or any  post-effective  amendment
               thereto, when the same has become effective,

                    (B) of any request by the  Commission  for amendments to the
               Shelf Registration  Statement or amendments or supplements to the
               Prospectus or for additional information relating thereto,

                    (C) of the  issuance  by the  Commission  of any stop  order
               suspending the effectiveness of the Shelf Registration  Statement
               under  the  Securities  Act or of  the  suspension  by any  state
               securities  commission  of  the  qualification  of  the  Transfer
               Restricted  Securities for offering or sale in any  jurisdiction,
               or the  initiation  of any  proceeding  for any of the  preceding
               purposes, or

                    (D) of the  existence  of any fact or the  happening  of any
               event, during the Effectiveness  Period, that makes any statement
               of a material fact made in the Shelf Registration Statement,  the
               Prospectus,  any amendment or supplement thereto, or any document
               incorporated by reference  therein  untrue,  or that requires the
               making of any  additions to or changes in the Shelf  Registration
               Statement  or the  Prospectus  in order  to make  the  statements
               therein not misleading.

     If at any time the  Commission  shall issue any stop order  suspending  the
     effectiveness of the Shelf Registration  Statement, or any state securities
     commission or other  regulatory  authority shall issue an order  suspending
     the   qualification  or  exemption  from   qualification  of  the  Transfer
     Restricted  Securities under state securities or Blue Sky laws, the Company
     shall use its  reasonable  best efforts to obtain the withdrawal or lifting
     of such order at the earliest possible time and will provide to each Holder
     who is named in the  Shelf  Registration  Statement  prompt  notice  of the
     withdrawal of any such order.

               (iv) Make available at reasonable  times for inspection by one or
          more representatives of the selling Holders,  designated in writing by
          a  Majority  of  Holders  whose  Transfer  Restricted  Securities  are
          included  in the Shelf  Registration  Statement,  and any  attorney or
          accountant  retained by such selling Holders,  all financial and other
          records,  pertinent  corporate documents and properties of the Company
          as  shall  be  reasonably  necessary  to  enable  them  to  conduct  a
          reasonable  investigation  within  the  meaning  of  Section 11 of the
          Securities Act, and cause the Company's officers,  directors, managers
          and employees to supply all  information  reasonably  requested by any
          such   representative  or  representatives  of  the  selling  Holders,
          attorney or  accountant in connection  therewith;  provided,  however,
          that the Company shall have no obligation  to deliver  information  to
          any selling Holder or representative pursuant to this Section 4(b)(iv)
          unless such selling Holder or  representative  shall have executed and
          delivered a  confidentiality  agreement  in a form  acceptable  to the
          Company relating to such information.

               (v) If requested by any selling Holders,  promptly incorporate in
          the  Shelf  Registration  Statement  or  Prospectus,   pursuant  to  a
          supplement or post-effective amendment if necessary,  such information
          as such  selling  Holders  may  reasonably  request  to have  included
          therein,  including,  without limitation,  information relating to the
          "Plan of Distribution" of the Transfer Restricted Securities.

               (vi) Furnish to each selling Holder upon their  request,  without
          charge,  at least one copy of the  Shelf  Registration  Statement,  as
          first filed with the  Commission,  and of each amendment  thereto (and
          any documents  incorporated by reference  therein or exhibits  thereto
          (or  exhibits  incorporated  in such  exhibits by  reference)  as such
          Person may request).

               (vii) Deliver to each selling  Holder,  without  charge,  as many
          copies of the Prospectus  (including each preliminary  Prospectus) and
          any amendment or  supplement  thereto as such Persons  reasonably  may
          request;  subject to any notice by the Company in accordance with this
          Section  4(b) of the  existence  of any  fact  or  event  of the  kind
          described in Section 4(b)(iii)(D),  the Company hereby consents to the
          use of the Prospectus and any amendment or supplement  thereto by each
          of the selling Holders in connection with the offering and the sale of
          the Transfer  Restricted  Securities  covered by the Prospectus or any
          amendment or supplement thereto.

               (viii)  Before  any  public   offering  of  Transfer   Restricted
          Securities,  cooperate  with the selling  Holders and their counsel in
          connection with the  registration  and  qualification  of the Transfer
          Restricted  Securities  under the  securities or Blue Sky laws of such
          jurisdictions  in  the  United  States  as  the  selling  Holders  may
          reasonably  request and do any and all other acts or things  necessary
          or advisable to enable the  disposition in such  jurisdictions  of the
          Transfer  Restricted  Securities  covered  by the  Shelf  Registration
          Statement;  provided,  however, that the Company shall not be required
          (A) to  register  or qualify as a foreign  corporation  or a dealer of
          securities where it is not now so qualified or to take any action that
          would subject it to the service of process in any  jurisdiction  where
          it is not now so  subject  or (B) to  subject  itself  to  general  or
          unlimited  service of process or to taxation in any such  jurisdiction
          if they are not now so subject.

               (ix) Cooperate with the selling  Holders to facilitate the timely
          preparation  and  delivery  of  certificates   representing   Transfer
          Restricted  Securities  to be sold  and not  bearing  any  restrictive
          legends (unless  required by applicable  securities  laws); and enable
          such Transfer  Restricted  Securities to be in such  denominations and
          registered  in such  names as the  Holders  may  request  at least two
          Business Days before any sale of Transfer Restricted Securities.

               (x) Use  its  reasonable  best  efforts  to  cause  the  Transfer
          Restricted  Securities covered by the Shelf Registration  Statement to
          be  registered  with or  approved  by  such  other  U.S.  governmental
          agencies or  authorities  as may be  necessary to enable the seller or
          sellers  thereof  to  consummate  the  disposition  of  such  Transfer
          Restricted Securities.

               (xi)  Subject to  Section  4(b)(i)  hereof,  if any fact or event
          contemplated  by  Section  4(b)(iii)(D)  hereof  shall  exist  or have
          occurred,  use its reasonable  best efforts to prepare a supplement or
          post-effective  amendment  to  the  Shelf  Registration  Statement  or
          related Prospectus or any document  incorporated  therein by reference
          or file any other required  document so that, as thereafter  delivered
          to the purchasers of Transfer  Restricted  Securities,  the Prospectus
          will not  contain an untrue  statement  of a material  fact or omit to
          state any material fact required to be stated  therein or necessary to
          make the statements  therein,  in light of the  circumstances in which
          they are made, not misleading.

               (xii)  Provide a CUSIP  number  for the  Securities  that are not
          Transfer  Restricted  Securities  not later than the effective date of
          the Shelf  Registration  Statement  and provide the Trustee  under the
          Indenture  with  certificates  for the Securities and shares of Common
          Stock that are not Transfer  Restricted  Securities that are in a form
          eligible for deposit with The Depository Trust Company.

               (xiii)  Otherwise use its reasonable  best efforts to comply with
          all  applicable  rules  and  regulations  of the  Commission  and  all
          reporting requirements under the rules and regulations of the Exchange
          Act.

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

               (xv) Use  reasonable  best  efforts  to cause  all  Common  Stock
          covered by the Shelf Registration Statement to be listed or quoted, as
          the case may be, on each  securities  exchange or automated  quotation
          system on which Common Stock is then listed or quoted.

               (xvi)  Provide to each Holder upon written  request each document
          filed with the Commission  pursuant to the  requirements of Section 13
          and Section 15 of the  Exchange  Act after the  effective  date of the
          Shelf  Registration  Statement,  unless  such  document  is  available
          through the Commission's EDGAR system.

          (c)  Each  Holder  agrees  by  acquisition  of a  Transfer  Restricted
     Security that, upon receipt of any notice (a "Suspension  Notice") from the
     Company  of the  existence  of any fact of the kind  described  in  Section
     4(b)(iii)(D) hereof, such Holder will forthwith discontinue  disposition of
     Transfer Restricted Securities pursuant to the Shelf Registration Statement
     until:

               (i) such  Holder  has  received  copies  of the  supplemented  or
          amended Prospectus contemplated by Section 4(b)(xi) hereof; or

               (ii) such  Holder is advised in writing by the  Company  that the
          use of the Prospectus may be resumed,  and has received  copies of any
          additional or supplemental  filings that are incorporated by reference
          in the Prospectus.

     If so directed by the Company,  each Holder will deliver to the Company (at
     the Company's expense) all copies, other than permanent file copies then in
     such  Holder's  possession,   of  the  Prospectus  covering  such  Transfer
     Restricted  Securities  that was  current  at the time of  receipt  of such
     Suspension Notice.

          (d) Each Holder  agrees,  by  acquisition  of the Transfer  Restricted
     Securities,  that no Holder shall be entitled to sell any of such  Transfer
     Restricted Securities pursuant to a Registration  Statement or to receive a
     Prospectus  relating thereto,  unless such Holder has furnished the Company
     with a Notice and Questionnaire as required pursuant to Section 2(e) hereof
     (including  the  information  required  to be  included  in such Notice and
     Questionnaire)  and the  information  set forth in the next sentence.  Each
     Notice  Holder  agrees  promptly to furnish to the Company all  information
     required  to be  disclosed  in  order to make  the  information  previously
     furnished to the Company by such Notice Holder not misleading and any other
     information  regarding  such  Notice  Holder and the  distribution  of such
     Transfer  Restricted  Securities  as the  Company  may  from  time  to time
     reasonably  request  in  writing.  Any  sale  of  any  Transfer  Restricted
     Securities by any Holder shall constitute a representation  and warranty by
     such  Holder that the  information  relating to such Holder and its plan of
     distribution is as set forth in the Prospectus  delivered by such Holder in
     connection with such  disposition,  that such Prospectus does not as of the
     time of such sale contain any untrue  statement of a material fact relating
     to or  provided by such  Holder or its plan of  distribution  and that such
     Prospectus  does not as of the time of such sale omit to state any material
     fact  relating to or  provided  by such Holder or its plan of  distribution
     necessary to make the  statements in such  Prospectus,  in the light of the
     circumstances under which they were made, not misleading.

     5. Registration Expenses.

     All expenses  incident to the Company's  performance of or compliance  with
this  Agreement  shall be borne by the  Company  regardless  of  whether a Shelf
Registration Statement becomes effective, including, without limitation:

               (i) all  registration  and filing  fees and  expenses  (including
          filings made with the NASD);

               (ii) all fees and expenses of compliance with federal  securities
          and state Blue Sky or securities laws;

               (iii)  all   expenses   of   printing   (including   printing  of
          Prospectuses  and  certificates for the Common Stock to be issued upon
          conversion of the Securities) and the Company's expenses for messenger
          and delivery services and telephone;

               (iv) all fees and disbursements of counsel to the Company;

               (v) all  application  and filing fees in connection  with listing
          (or  authorizing  for  quotation)  the  Common  Stock  on  a  national
          securities  exchange or  automated  quotation  system  pursuant to the
          requirements hereof; and

               (vi) all fees and  disbursements of independent  certified public
          accountants of the Company.

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

     6. Indemnification And Contribution.

          (a) The Company  agrees to  indemnify  and hold  harmless  each Holder
     (including each Initial Purchaser), its directors,  officers, and employees
     and each person, if any, who controls any such Holder within the meaning of
     the Securities  Act or the Exchange Act (each,  an  "Indemnified  Holder"),
     against any loss, claim, damage, liability or expense, joint or several, or
     any action in respect  thereof  (including,  but not  limited to, any loss,
     claim,  damage,  liability  or action  relating to resales of the  Transfer
     Restricted  Securities),  to  which  such  Indemnified  Holder  may  become
     subject,  insofar  as any such loss,  claim,  damage,  liability  or action
     arises out of, or is based upon:

               (i)  any  untrue  statement  or  alleged  untrue  statement  of a
          material  fact  contained in (A) the Shelf  Registration  Statement as
          originally filed or in any amendment thereof, in any Prospectus, or in
          any amendment or supplement thereto or (B) any blue sky application or
          other  document or any  amendment or  supplement  thereto  prepared or
          executed by the Company (or based upon written  information  furnished
          by or on  behalf  of the  Company  expressly  for use in such blue sky
          application or other document or amendment on supplement) filed in any
          jurisdiction  specifically for the purpose of qualifying any or all of
          the Transfer  Restricted  Securities  under the  securities law of any
          state  or other  jurisdiction  (such  application  or  document  being
          hereinafter called a "Blue Sky Application"); or

               (ii) the  omission  or  alleged  omission  to state  therein  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 agrees to reimburse each  Indemnified  Holder  promptly upon demand for
     any legal or other expenses  reasonably incurred by such Indemnified Holder
     in connection  with  investigating,  defending,  settling,  compromising or
     paying  any  such  loss,  claim,  damage,  liability,  expense  or  action;
     provided, however, that the Company shall not be liable in any such case to
     the extent that any such loss, claim,  damage,  liability or expense 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 written  information  furnished to the Company by or on behalf of such
     Holder (or its related  Indemnified  Holder)  specifically for use therein.
     The foregoing indemnity agreement is in addition to any liability which the
     Company may otherwise have.

          (b) Each Holder,  severally  and not jointly,  agrees to indemnify and
     hold harmless the Company,  its directors,  officers and employees and each
     person,  if any,  who  controls  the  Company  within  the  meaning  of the
     Securities  Act or the  Exchange  Act to the same  extent as the  foregoing
     indemnity from the Company to each such Holder,  but only with reference to
     written information  relating to such Holder furnished to the Company by or
     on  behalf of such  Holder  specifically  for  inclusion  in the  documents
     referred to in the foregoing indemnity.  This indemnity agreement set forth
     in this  Section  shall be in  addition to any  liabilities  which any such
     Holder may  otherwise  have. In no event shall any Holder,  its  directors,
     officers or employees  or any person who controls  such Holder be liable or
     responsible  for any  amount  in  excess  of the  amount by which the total
     amount  received  by such  Holder  with  respect  to its  sale of  Transfer
     Restricted  Securities  pursuant to a Shelf Registration  Statement exceeds
     the amount of any damages  that such  Holder,  its  directors,  officers or
     employees  or any person  who  controls  such  Holder  has  otherwise  been
     required to pay by reason of such  untrue or alleged  untrue  statement  or
     omission or alleged omission.

          (c) Promptly after receipt by an indemnified  party under this Section
     6 of notice of any claim or the commencement of any action, the indemnified
     party  shall,  if a claim in  respect  thereof  is to be made  against  the
     indemnifying  party under this Section 6, notify the indemnifying  party in
     writing of the claim or the commencement of that action; provided, however,
     that the failure to notify the indemnifying party shall not relieve it from
     any  liability  which it may have under this Section 6 except to the extent
     it has been materially  prejudiced by such failure and, provided,  further,
     that the failure to notify the indemnifying party shall not relieve it from
     any liability  which it may have to an  indemnified  party  otherwise  than
     under this Section 6. If any such claim or action shall be brought  against
     an indemnified  party, and it shall notify the indemnifying  party thereof,
     the indemnifying party shall be entitled to participate therein and, to the
     extent  that  it  wishes,   jointly  with  any  other  similarly   notified
     indemnifying  party, to assume the defense thereof with counsel  reasonably
     satisfactory to the indemnified  party.  After notice from the indemnifying
     party to the  indemnified  party of its  election  to assume the defense of
     such claim or action,  the  indemnifying  party  shall not be liable to the
     indemnified  party  under  this  Section 6 for any legal or other  expenses
     subsequently  incurred  by the  indemnified  party in  connection  with the
     defense thereof other than  reasonable  costs of  investigation;  provided,
     however,  that the Holders shall have the right to employ a single  counsel
     to represent jointly the Holders and their directors,  officers,  employees
     and controlling  persons who may be subject to liability arising out of any
     claim in respect of which  indemnity  may be sought by the Holders  against
     the Company  under this  Section 6 if the Holders  seeking  indemnification
     shall  have been  advised  by legal  counsel  that there may be one or more
     legal defenses  available to such Holders and their  respective  directors,
     officers,  employees and  controlling  persons that are  different  from or
     additional to those available to the Company,  and in that event,  the fees
     and expenses of such separate counsel shall be paid by the Company.

          (d) The indemnifying  party under this Section shall not be liable for
     any  settlement of any  proceeding  effected  without its written  consent,
     which shall not be withheld unreasonably,  but if settled with such consent
     or if there is a final judgment for the plaintiff,  the indemnifying  party
     agrees to indemnify the indemnified party against any loss, claim,  damage,
     liability   or  expense  by  reason  of  such   settlement   or   judgment.
     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 Section  6(c)
     hereof,  the  indemnifying  party  agrees  that it shall be liable  for any
     settlement of any proceeding  effected  without its written consent if such
     settlement  is  entered  into  more  than 30  days  after  receipt  by such
     indemnifying  party of the  aforesaid  request  and (ii) such  indemnifying
     party shall not have  reimbursed the  indemnified  party in accordance with
     such request prior to the date of such  settlement.  No indemnifying  party
     shall,  without the prior written consent of the indemnified party,  effect
     any  settlement,  compromise  or  consent to the entry of  judgment  in any
     pending or  threatened  action,  suit or proceeding in respect of which any
     indemnified  party is or could have been a party and indemnity was or could
     have  been  sought  hereunder  by  such  indemnified  party,   unless  such
     settlement,  compromise or consent (x) includes an unconditional release of
     such  indemnified  party from all  liability on claims that are the subject
     matter  of such  action,  suit or  proceeding  and (y) does not  include  a
     statement as to or an admission of fault,  culpability  or a failure to act
     by or on behalf of any indemnified party.

          (e) If the  indemnification  provided  for in this Section 6 shall for
     any reason be unavailable or  insufficient  to hold harmless an indemnified
     party  under  Section  6(a) or 6(b)  hereof in respect of any loss,  claim,
     damage or  liability  (or action in respect  thereof)  referred to therein,
     each  indemnifying  party shall, in lieu of indemnifying  such  indemnified
     party,  contribute to the amount paid or payable by such indemnified  party
     as a result of such loss, claim,  damage or liability (or action in respect
     thereof):

               (i) in such  proportion as is appropriate to reflect the relative
          benefits  received by the Company  from the  offering  and sale of the
          Transfer  Restricted  Securities  on the one hand  and a  Holder  with
          respect  to  the  sale  by  such  Holder  of the  Transfer  Restricted
          Securities on the other, or

               (ii) if the allocation  provided by Section 6(d)(i) hereof is not
          permitted by applicable  law, in such  proportion as is appropriate to
          reflect not only the relative  benefits referred to in Section 6(d)(i)
          hereof but also the relative  fault of the Company on the one hand and
          the  Holders  on the  other  in  connection  with  the  statements  or
          omissions or alleged  statements or alleged omissions that resulted in
          such loss, claim,  damage or liability (or action in respect thereof),
          as well as any other relevant equitable considerations.

     The relative  benefits received by the Company on the one hand and a Holder
     on the other with respect to such offering and such sale shall be deemed to
     be in the same  proportion  as the total net proceeds  from the offering of
     the Securities  purchased under the Purchase  Agreement  (before  deducting
     expenses)  received  by the  Company,  on the one  hand,  bear to the total
     proceeds  received  by such  Holder  with  respect to its sale of  Transfer
     Restricted  Securities,  on the other.  The  relative  fault of the parties
     shall be  determined  by reference to whether the untrue or alleged  untrue
     statement of a material fact or the omission or alleged omission to state a
     material fact relates to  information  supplied by the Company,  on the one
     hand,  or by or on behalf of the Holders,  on the other,  the intent of the
     parties and their relative knowledge, access to information and opportunity
     to correct or prevent  such  statement  or  omission.  The Company and each
     Holder  agree  that it would  not be just and  equitable  if the  amount of
     contribution  pursuant to this  Section  6(e) were  determined  by pro rata
     allocation  or by any other  method of  allocation  that does not take into
     account the equitable  considerations  referred to in the first sentence of
     this paragraph (e).

     The amount paid or payable by an indemnified party as a result of the loss,
claim, damage or liability,  or action in respect thereof,  referred to above in
this  Section 6 shall be deemed to include,  for purposes of this Section 6, any
legal  or  other  expenses  reasonably  incurred  by such  indemnified  party in
connection  with  investigating  or  defending  or  preparing to defend any such
action or claim.

     Notwithstanding  the  provisions  of this  Section  6, no  Holder  shall be
required  to  contribute  any  amount in excess of the amount by which the total
price at which the Transfer  Restricted  Securities  purchased by it were resold
exceeds the amount of any damages which such Holder has otherwise  been required
to pay by reason of any  untrue or  alleged  untrue  statement  or  omission  or
alleged omission. No Person guilty of fraudulent  misrepresentation  (within the
meaning  of  Section  11(f)  of  the  Securities   Act)  shall  be  entitled  to
contribution   from  any  Person   who  was  not   guilty  of  such   fraudulent
misrepresentation.  The Holders'  obligations  to contribute as provided in this
Section 6(d) are several and not joint.

          (f) The  provisions  of this  Section 6 shall remain in full force and
     effect,  regardless of any investigation made by or on behalf of any Holder
     or the Company or any of the  officers,  directors or  controlling  persons
     referred to in Section 6 hereof,  and will  survive the sale by a Holder of
     Transfer Restricted Securities.

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

     8.  No   Participation  In  Underwritten   Registrations.   No  Holder  may
participate in any Underwritten Registration hereunder.

     9. Miscellaneous.

          (a) Remedies.  The Company acknowledges and agrees that any failure by
     the  Company  to comply  with its  obligations  under  Section 2 hereof may
     result in  material  irreparable  injury to the Initial  Purchasers  or the
     Holders for which there is no adequate  remedy at law,  that it will not be
     possible to measure damages for such injuries  precisely,  and that, in the
     event of any such failure,  the Initial Purchasers or any Holder may obtain
     such  relief as may be  required  to  specifically  enforce  the  Company's
     obligations under Section 2 hereof. The Company further agrees to waive the
     defense in any action for specific  performance  that a remedy at law would
     be adequate.

          (b) Actions  Affecting  Transfer  Restricted  Securities.  The Company
     shall not,  directly or  indirectly,  take any action  with  respect to the
     Transfer  Restricted  Securities as a class that would adversely affect the
     ability of the Holders to include such Transfer Restricted  Securities in a
     registration undertaken pursuant to this Agreement.

          (c) No  Inconsistent  Agreements.  The Company has not, as of the date
     hereof,  entered  into,  nor shall it, on or after the date  hereof,  enter
     into,  any agreement with respect to its  securities  that is  inconsistent
     with the rights  granted  to the  Holders in this  Agreement  or  otherwise
     conflicts with the provisions  hereof.  In addition,  the Company shall not
     grant  to any of its  securityholders  (other  than  the  Holders  in  such
     capacity)  the  right  to  include  any of  its  securities  in  the  Shelf
     Registration  Statement  provided  for in this  Agreement  other  than  the
     Transfer Restricted Securities.

          (d)  Amendments  and  Waivers.  This  Agreement  may  not be  amended,
     modified or supplemented, and waivers or consents to or departures from the
     provisions  hereof may not be given,  unless the Company has  obtained  the
     written  consent of a Majority of  Holders;  provided,  however,  that with
     respect to any matter that  directly or  indirectly  adversely  affects the
     rights of any Initial  Purchaser  hereunder,  the Company  shall obtain the
     written  consent  of  each  such  Initial   Purchaser  against  which  such
     amendment, qualification, supplement, waiver or consent is to be effective.
     Notwithstanding the foregoing (except the foregoing  proviso),  a waiver or
     consent to depart from the  provisions  hereof,  with  respect to a matter,
     which relates  exclusively  to the rights of Holders whose  securities  are
     being sold pursuant to a Shelf Registration Statement and does not directly
     or indirectly adversely affect the rights of other Holders, may be given by
     the Majority Holders, determined on the basis of Securities or Common Stock
     being sold rather than registered under such Shelf Registration Statement.

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

               (i) if to a Holder,  at the  address  set forth on the records of
          the registrar  under the Indenture or the transfer agent of the Common
          Stock, as the case may be; and

               (ii) if to the Company, initially at its address set forth in the
          Purchase Agreement,

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

     Any party  hereto may change the address for receipt of  communications  by
giving written notice to the others.

          (f) Successors and Assigns.  This Agreement shall inure to the benefit
     of and be binding upon the  successors  and assigns of each of the parties,
     including   without   limitation  and  without  the  need  for  an  express
     assignment,  subsequent  Holders.  The Company  hereby agrees to extend the
     benefit  of  this   Agreement  to  any  Holder  and  any  such  Holder  may
     specifically  enforce the  provisions  of this  Agreement as if an original
     party hereto.

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

          (h)  Transfer  Restricted  Securities  Held by the  Company  or  Their
     Affiliates.  Whenever  the  consent or  approval  of Holders of a specified
     percentage  of  Transfer  Restricted   Securities  is  required  hereunder,
     Transfer Restricted Securities held by the Company or its Affiliates (other
     than  subsequent  Holders  if such  subsequent  Holders  are  deemed  to be
     Affiliates  solely by reason of their holding of such  Transfer  Restricted
     Securities)  shall not be counted in  determining  whether  such consent or
     approval was given by the Holders of such required percentage.

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

          (j) Governing Law. This  Agreement  shall be governed by and construed
     in accordance with the laws of the State of New York.

          (k)  Severability.  If any  one or more  of the  provisions  contained
     herein, or the application  thereof in any  circumstance,  is held invalid,
     illegal or unenforceable,  the validity, legality and enforceability of any
     such  provision  in every  other  respect and of the  remaining  provisions
     contained  herein  shall not be  affected  or  impaired  thereby,  it being
     intended  that all of the rights and  privileges  of the  parties  shall be
     enforceable to the fullest extent permitted by law.

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

<PAGE>

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

                           DST SYSTEMS, INC.
                           By:       /s/ Kenneth V. Hager
                                     -------------------------------------------
                                     Name:   Kenneth V. Hager
                                     Title:  Vice President, Chief Financial
                                             Officer and Treasurer

<PAGE>

CITIGROUP GLOBAL MARKETS INC.
BANC OF AMERICA SECURITIES LLC

Acting as Representatives of the
 several Initial Purchasers named in
Schedule I to the Purchase Agreement.

By:  CITIGROUP GLOBAL MARKETS INC.
By:      /s/ Guy Seebohm
         ---------------------------------
         Name:   Guy Seebohm
         Title:  Vice President

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