Document:

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                                                                     Exhibit 4.5

                               USA EDUCATION, INC.

                              AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

                          Dated as of February 21, 2001

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page
<S>      <C>                                                                         <C>
1.       BACKGROUND.                                                                  1

2.       DEFINITIONS.                                                                 1

3.       REGISTRATION.                                                                4

         3.1      DEMAND REGISTRATION.                                                4

                  (a)   REQUESTS                                                      4
                  (b)   OBLIGATION TO EFFECT REGISTRATION                             6
                  (c)   SHELF REGISTRATION                                            6
                  (d)   EFFECTIVE REGISTRATION STATEMENT                              6
                  (e)   PRO RATA ALLOCATION                                           6
                  (f)   INCLUSION OF OTHER SECURITIES IN DEMAND REGISTRATION          7

         3.2      REGISTRATION PROCEDURES.                                            8

         3.3      UNDERWRITTEN OFFERINGS                                             12

                  (a)   UNDERWRITTEN OFFERINGS EXCLUSIVE                             12
                  (b)   UNDERWRITING AGREEMENT                                       12
                  (c)   SELECTION OF UNDERWRITERS                                    13
                  (d)   HOLD BACK AGREEMENTS                                         13

         3.4      PREPARATION; REASONABLE INVESTIGATION                              13

         3.5      INDEMNIFICATION.                                                   14

                  (a)   INDEMNIFICATION BY THE COMPANY                               14
                  (b)   INDEMNIFICATION BY THE SELLERS                               14
                  (c)   NOTICES OF CLAIMS, ETC.                                      15
                  (d)   OTHER INDEMNIFICATION                                        16
                  (e)   OTHER REMEDIES                                               16

         3.6      EXPENSES.                                                          16

4.       MISCELLANEOUS.                                                              16

         4.1      RULE 144; LEGENDED SECURITIES; ETC.                                16

         4.2      AMENDMENTS AND WAIVERS                                             17

         4.3      NOMINEES FOR BENEFICIAL OWNERS                                     17

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         4.4      SUCCESSORS, ASSIGNS AND TRANSFEREES                                17

         4.5      NOTICES                                                            18

         4.6      NO INCONSISTENT AGREEMENTS                                         18

         4.7      REMEDIES; ATTORNEYS' FEES                                          18

         4.8      SEVERABILITY                                                       19

         4.9      HEADINGS                                                           19

         4.10     COUNTERPARTS                                                       19

         4.11     GOVERNING LAW                                                      19

         4.12     NO THIRD PARTY BENEFICIARIES                                       19

         4.13     CONSENT TO JURISDICTION                                            19
</TABLE>

                                       ii

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               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

         AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the "Agreement"),
dated as of February 21, 2001, between USA EDUCATION, INC., , a Delaware
corporation, formerly known as SLM Holding Corporation (the "Company"), and
LUMINA FOUNDATION FOR EDUCATION, INC., a Delaware corporation, formerly known as
USA Group Foundation, Inc., and, prior thereto, as USA Group, Inc. (the
"Foundation" or the "Group").

  1. BACKGROUND.

     (a) The Company is a party to a Purchase Agreement with the Group, HIJ
Corporation, a Delaware corporation, USA Group Loan Services, Inc., a Delaware
corporation, and USA Group Guarantee Services, Inc., a Delaware corporation
dated June 14, 2000 (the "Purchase Agreement"). At the closing of the
transactions contemplated by the Purchase Agreement held July 31, 2000 (the
"Closing"), the Company delivered to the Group 9,034,505 shares of common stock,
par value $.01 per share, of the Company (the "Shares").

     (b) In order to induce the Group to enter into the Purchase Agreement, the
Company agreed to provide the registration rights set forth in this Agreement
for the benefit of the Group and its direct and indirect transferees. At the
Closing, the Company executed and delivered a Registration Rights Agreement
(which is being restated and amended by this Agreement) dated July 31, 2000 (the
"Original Agreement") to the Group in satisfaction of a condition to the Group's
obligations to close the transactions contemplated by the Purchase Agreement.

     (c) The Original Agreement became effective with respect to any Registrable
Securities at the Closing upon the issuance or sale of Registrable Securities
pursuant to the Purchase Agreement. This Agreement shall remain in effect upon
the assignment or transfer of Registrable Securities by the Group or a Holder to
an Affiliate, or other successors, assigns and transferees of Group of such
Holder pursuant to Section 4.4.

     (d) By Letter Agreement between the Company and the Foundation dated
January 26, 2001 (the "Letter Agreement"), the Company and the Foundation agreed
to modify their relationships to one another in certain respects, including but
not limited to the terms of the Original Agreement that relate to the
registration rights granted to the Foundation by the Company. The parties now
desire to execute this Agreement to restate the terms of the Original Agreement,
as so amended, completely in one document.

  2. DEFINITIONS. For purposes of this Agreement, the following terms have
the following respective meanings:

     "AFFILIATE" means, with respect to any Person, any other Person directly or
indirectly Controlling, Controlled by or under common Control with such first
Person. "Control" means the power to direct or cause the direction of management
or policies of such Person, directly or

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indirectly, whether through the ownership of voting securities, by contract or
otherwise. Any director, member of management or other employee of the Company
or any of its Subsidiaries who would not otherwise be an Affiliate of the Group
shall not be deemed to be an Affiliate of the Group.

     "AGREEMENT" is defined in the first paragraph of this Agreement.

     "BUSINESS DAY" means a day other than a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required to close.

     "COMMON STOCK" means the Common Stock, par value of $.01 per share, of the
Company.

     "COMPANY" is defined in the first paragraph of this Agreement.

     "DTC" means the Depository Trust Company.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended, or
any successor federal statute, and the rules and regulations thereunder which
shall be in effect at the time. Any reference to a particular section thereof
shall include a reference to the corresponding section, if any, of any such
successor federal statute, and the rules and regulations thereunder.

     "FOUNDATION" is defined in the introduction to this Agreement and includes
the Group.

     "GROUP" is defined in the introduction to this Agreement and includes the
Foundation.

     "HOLDER" means any holder of Registrable Securities, including an Affiliate
or other successors, assigns and transferees of Group or a Holder that has
received Registrable Securities pursuant to Section 4.4.

     "PURCHASE AGREEMENT" is defined in Section 1(a).

     "NASD" means the National Association of Securities Dealers, Inc.

     "PERSON" means any natural person, firm, partnership, association,
corporation, company, trust, business trust, governmental entity or other
entity.

     "POSTPONEMENT PERIOD" is defined in Section 3.2(o).

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

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     "REGISTRABLE SECURITIES" means the Shares and any securities issued or
issuable with respect to any Shares (i) upon any conversion or exchange thereof,
(ii) by way of stock dividend or other distribution, stock split or reverse
stock split or (iii) in connection with a combination of shares,
recapitalization, merger, consolidation, exchange offer or other reorganization.
As to any particular Registrable Securities, once issued such securities shall
cease to be Registrable Securities when (A) a Registration Statement with
respect to the sale of such securities shall have become effective under the
Securities Act and such securities shall have been disposed of in accordance
with such Registration Statement, (B) such securities shall have been
distributed to the public in reliance upon Rule 144, (C) subject to the
provisions of Section 4.1(b)(ii), such securities shall have been otherwise
transferred, new certificates for such securities not bearing a legend
restricting further transfer shall have been delivered by the Company and
subsequent disposition of such securities shall not require registration or
qualification of such securities under the Securities Act or any similar state
law then in force or (D) such securities shall have been acquired by the
Company.

     "REGISTRATION EXPENSES" means all fees and expenses incident to the
performance of or compliance with the provisions of this Agreement, whether or
not any registration statement is filed or becomes effective, including, without
limitation, all (i) registration and filing fees (including, without limitation,
(A) fees with respect to filings required to be made with the NASD in connection
with an underwritten offering, (B) fees and expenses of compliance with state
securities or blue sky laws (including, without limitation, fees and
disbursements of counsel for the underwriter or underwriters in connection with
blue sky qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as provided in Section 3.2(e)), and (C) fees and other expenses
associated with the listing of the Shares and any securities issued or issuable
with respect to any Shares on the New York Stock Exchange and any other
applicable exchange, (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities in a form eligible
for deposit with DTC and of printing prospectuses), (iii) fees and disbursements
of all independent certified public accountants referred to in Section 3.3
(including, without limitation, the reasonable expenses of any special audit and
"cold comfort" letters required by or incident to such performance), (iv) the
fees and expenses of any "qualified independent underwriter" or other
independent appraiser participating in an offering pursuant to Rule 2720 of the
NASD Rules of Conduct, (v) liability insurance under the Securities Act or any
other securities laws, if the Company desires such insurance, (vi) fees and
expenses of all attorneys, advisers, appraisers and other persons retained by
the Company or any Subsidiary of the Company, (vii) internal expenses of the
Company and its Subsidiaries (including, without limitation, all salaries and
expenses of officers and employees of the Company and its Subsidiaries
performing legal or accounting duties), (viii) the expense of any annual audit,
(ix) the expenses relating to printing, word processing and distributing all
registration statements, underwriting agreements, securities sales agreements,
indentures and any other documents necessary in order to comply with this
Agreement and (x) the reasonable out-of-pocket expenses of the Holders of the
Registrable Securities being registered in such registration incurred in
connection therewith including, without limitation, the reasonable fees and
disbursements of not more than one counsel chosen by the Holders of a majority
of the Registrable Securities to be included in such Registration Statement.
"Registration Expenses" shall not include any

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underwriting discounts or commissions or any transfer taxes payable in respect
of the sale of Registrable Securities by the Holders thereof.

     "REGISTRATION STATEMENT" means any registration statement of the Company
that covers any of the Registrable Securities pursuant to the provisions of this
Agreement, and all amendments and supplements to any such registration
statement, including post-effective amendments, in each case including the
Prospectus, all exhibits and all material incorporated by reference or deemed to
be incorporated by reference in such registration statement.

     "RULE 144" means Rule 144 (or any successor provision) under the Securities
Act.

     "RULE 145" means Rule 145 (or any successor provision) under the Securities
Act.

     "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
successor federal statute, and the rules and regulations thereunder which shall
be in effect at the time. Any reference to a particular section thereof shall
include a reference to the corresponding section, if any, of any such successor
federal statute, and the rules and regulations thereunder.

     "SEC" means the Securities and Exchange Commission or any other federal
agency at the time administering the Securities Act or the Exchange Act.

     "SHARES" is defined in Section 1(a).

     "SPECIAL REGISTRATION" means the registration of shares of equity
securities and/or options or other rights in respect thereof to be offered
solely to directors, members of management, employees, consultants or sales
agents, distributors or similar representatives of the Company or its direct or
indirect Subsidiaries, solely on Form S-8 or any successor form.

     "SUBSIDIARY" means, with respect to any Person, any corporation or Person,
a majority of the outstanding voting stock or other equity interests of which is
owned, directly or indirectly, by that Person.

     "UNDERWRITTEN REGISTRATION" or "UNDERWRITTEN OFFERING" means a registration
in which securities of the Company (including Registrable Securities) are sold
to an underwriter for reoffering to the public.

  3. REGISTRATION.

     3.1 DEMAND REGISTRATION.

     (a) REQUESTS. Subject to the provisions of Section 3.5, beginning on the
date that is six months after the Closing (as defined in the Purchase Agreement)
under the Purchase Agreement, Holders of not less than 25% of the then
outstanding Registrable Securities shall have the right to request that the
Company register under the Securities Act all or part of the Registrable
Securities of the Holders making such request, which requests shall specify the
intended method of disposition thereof by such Holders, including whether the
registration requested is for an underwritten offering. For a registration to be
underwritten, a majority of the Holders requesting registration

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(as measured by ownership of Registrable Securities) must so request. At the
request of the Foundation, the Company has filed with the SEC on January 30,
2001 a Registration Statement on Form S-3 with respect to Registrable Securities
consisting of 7,909,505 shares of Common Stock held by the Foundation and its
transferees (No. 333-54642) (the "2001 Registration Statement"). The Company
shall employ its best efforts to cause the 2001 Registration Statement to become
effective at the earliest possible date. The plan of distribution for the
Registrable Securities set forth in the 2001 Registration Statement and the
related Prospectus shall provide as follows:

          (i)  After the SEC has declared the 2001 Registration Statement
               effective, the Foundation may effect sales according to any of
               the following plans of distribution from time to time in one or
               more transactions on the New York Stock Exchange or otherwise
               than on that exchange (exclusive of any shares sold on behalf of
               The Community Foundation for the National Capital Region (the
               "Community Foundation")): (a) monthly sales (including block
               transactions) of up to a number of shares of Common Stock equal
               to 15% of the average monthly trading volume in the Common Stock
               in the immediately preceding calendar quarter; (b) monthly sales
               (including block transactions) of up to two million shares of
               Common Stock; or (c) monthly sales (excluding block transactions)
               of up to a number of shares of Common Stock equal to 5% of the
               average monthly trading volume in the Common Stock in the
               immediately preceding calendar quarter. For purposes of this
               Letter Agreement, the "average monthly trading volume" during any
               calendar quarter shall be determined by reference to Bloomberg
               L.P., and is agreed to have been 20,695,533 shares during the
               fourth calendar quarter of 2000. For purposes of this Letter
               Agreement, a "block transaction" is a transaction in which shares
               of Common Stock are sold in a single transaction in units of
               50,000 or more shares. The Foundation shall determine which of
               the foregoing plans of distribution it will effect no later than
               the date on which the SEC declares the 2001 Registration
               Statement effective. All sales by the Foundation of Common Stock
               - whether effected under the 2001 Registration Statement or
               otherwise - shall be counted against the monthly limits described
               above. Sales may be effected at prices and at terms then
               prevailing or at prices related to the current market price or at
               negotiated prices.

          (ii) The Foundation may sell the Registrable Securities in
               transactions (which may include block transactions) on the NYSE,
               in the over-the-counter market, or in negotiated transactions
               involving one or more of the following: (a) an underwritten
               public offering, (b) purchases by a broker-dealer as principal
               and resale by the broker-dealer for its own account, (c)
               brokerage transactions in which the broker-dealer as agent
               solicits purchases, which may involve compensation in excess of
               customary commissions, or (d)

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               transactions directly with purchasers.

         (iii) Although the Foundation has consented (pursuant to Section
               3.1(f)(ii) of this Agreement) to the inclusion in the 2001
               Registration Statement of Registrable Securities for the account
               of the Community Foundation, such consent was conditioned upon
               the Community Foundation's agreement not to offer or sell more
               than 50,000 Registrable Securities under the 2001 Registration
               Statement until the Foundation has completed the offer and sale
               of all of its Registrable Securities thereunder, or July 31,
               2001, whichever is earlier.

In all respects, the provisions of this Agreement shall apply to the
registration of the Registrable Securities pursuant to the 2001 Registration
Statement as provided in this Section 3.1(a), and the Company and the
Foundation shall have the same rights and obligations with respect thereto,
as if a Demand Registration with respect to the Registrable Securities had
been made by the Foundation under this Agreement; provided that Section
3.3(d) (entitled "Hold Back Agreements") shall not apply to restrict sales by
the Foundation under the 2001 Registration Statement.

     (b) OBLIGATION TO EFFECT REGISTRATION. Within 10 days after receipt by the
Company of any request for registration pursuant to Section 3.1(a), the Company
shall promptly give written notice of such requested registration to all
Holders, and thereupon will use its best efforts to effect the registration
under the Securities Act of

          (i) the Registrable Securities that the Company has been so requested
to register pursuant to Section 3.1(a), and

          (ii) subject to the limitation on number of shares set forth in
Section 3.1(a), all other Registrable Securities which the Company has been
requested to register by the Holders thereof by written request given to the
Company within 10 days after the Company has given such written notice (which
request shall specify the intended method of disposition of such Registrable
Securities), all to the extent required to permit the disposition (in accordance
with the intended methods thereof as aforesaid) of the Registrable Securities so
to be registered.

     (c) SHELF REGISTRATION. If the Company is eligible to file such
Registration Statement on Form S-3, the Registration Statement covering such
Registrable Securities may (and, subject to the limitations contained elsewhere
herein shall, if requested by the Holders of a majority of the Registrable
Securities) provide for the sale by the Holders thereof of the Registrable
Securities from time to time on a delayed or a continuous basis under Rule 415
under the Securities Act. If more than one underwritten offering is requested
under any particular shelf registration, each such additional underwritten
offering shall constitute a separate "demand" registration for purposes of
Section 3.1(a).

     (d) EFFECTIVE REGISTRATION STATEMENT. A registration requested pursuant to
Section 3.1(a) shall not be deemed to have been effected unless it is declared
effective by the SEC and remains effective for

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the period specified in Section 3.2(b). Notwithstanding the preceding sentence,
a registration requested pursuant to Section 3.1(a) that does not become
effective after the Company has filed a Registration Statement with respect
thereto by reason of the refusal to proceed of the Holders of Registrable
Securities requesting the registration, or by reason of a request by a majority
of the Selling Holders participating in such registration that such registration
be withdrawn, shall be deemed to have been effected by the Company at the
request of such Holders.

     (e) PRO RATA ALLOCATION. If the Holders of a majority of the Registrable
Securities for which registration is being requested pursuant to Section 3.1(a)
determine, based on consultation with the managing underwriters or, in an
offering that is not underwritten, with an investment banker, that the number of
securities to be sold in any such offering should be limited due to market
conditions or otherwise, Holders of Registrable Securities proposing to sell
their securities in such registration shall share pro rata in the number of
securities being offered (as determined by the Holders holding a majority of the
Registrable Securities for which registration is being requested in consultation
with the managing underwriters or investment banker, as the case may be) and
registered for their account, such sharing to be based on the number of
Registrable Securities as to which registration was requested by such Holders.

     (f) INCLUSION OF OTHER SECURITIES IN DEMAND REGISTRATION.

          (i) The Company may, subject to the remainder of this Section 3.1(f),
elect to include in any Registration Statement made pursuant to Section 3.1(a),
authorized but unissued shares of Common Stock, shares of Common Stock held as
treasury stock or, if approved by the Holders of a majority of Registrable
Securities, shares held by the Company's officers or directors.

          (ii) Notwithstanding any other provision of this Section 3(f), the
Company shall not register securities (other than Registrable Securities) for
sale for the account of any Person (other than the Company, its officers or
directors) in any registration requested pursuant to Section 3.1(a) unless
permitted to do so by the written consent of the Holders holding at least a
majority of the Registrable Securities proposed to be sold in such registration.

          (iii) If any Registration Statement made pursuant to Section 3.1(a)
involves an underwritten offering and the managing underwriter of such offering
(or, in connection with an offering that is not underwritten, an investment
banker) shall advise the Company that, in its view, the number of securities
requested to be included in such Registration exceeds the largest number that
can be sold in an orderly manner in such offering within a price range
acceptable to the selling Holders, the Company shall include in such
Registration:

               (A) first, all shares of Common Stock requested to be included in
such Registration by the selling Holders as provided in Section 3.1(e); and

               (B) second, to the extent that the number of securities to be
registered pursuant to clause (A) is less than the largest number that can be
sold in an orderly manner in such offering within a price range acceptable to
the selling Holders, securities that the Company proposes to register; and

               (C) third, to the extent that the number of shares registered
pursuant to clauses (A) and (B) is less

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than the largest number that can be sold in an orderly manner in such offering
within a price range acceptable to the selling Holders, the securities requested
to be included by any other holders. The securities to be included in any such
registration pursuant to clause (C) shall be allocated on a pro rata basis among
all holders requesting that securities be included in such registration pursuant
to such clause on the basis of the number of securities requested to be included
by such holders.

     3.2 REGISTRATION PROCEDURES. If and whenever the Company is required to use
its best efforts to effect the registration of any Registrable Securities under
the Securities Act as provided in Section 3.1, the Company shall:

     (a) prepare and file with the SEC, as soon as practicable, a Registration
Statement with respect to such securities, make all required filings with the
NASD and use best efforts to cause such Registration Statement to become
effective at the earliest possible date;

     (b) prepare and file with the SEC such amendments and supplements to such
Registration Statement and the Prospectus used in connection therewith and such
other documents as may be necessary to keep such Registration Statement
effective until the earlier of (i) 30 days after the effective date of such
Registration Statement (180 days in the case of a Shelf Registration pursuant to
Section 3.1(c)) or (ii) the consummation of the disposition by the Holders of
all the Registrable Securities covered by such Registration Statement and
otherwise comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement;

     (c) furnish to counsel (if any) selected by the Holders of a majority of
the Registrable Securities covered by such Registration Statement and to counsel
for the underwriters in any underwritten offering copies of all documents
proposed to be filed with the SEC in connection with such registration a
reasonable time prior to the proposed filing thereof and give reasonable
consideration in good faith to any comments of such Holders, counsel and
underwriters. The Company shall not file any Registration Statement or
Prospectus or any amendments or supplements thereto pursuant to a registration
under Section 3.1(a) if the Holders of a majority of the Registrable Securities
covered by such Registration Statement, their counsel, or the underwriters, if
any, shall reasonably object in writing;

     (d) furnish to each seller of Registrable Securities, without charge, such
reasonable number of conformed copies of such Registration Statement and of each
such amendment and supplement thereto (in each case, including all exhibits
(including exhibits incorporated by reference), financial statements, schedules
and all documents incorporated therein, deemed to be incorporated therein by
reference or filed therewith, except that the Company shall not be obligated to
furnish any seller of securities with more than two copies of such exhibits and
documents), such number of copies of the Prospectus included in such
Registration Statement (including each preliminary prospectus and any summary
prospectus) in conformity with the requirements of the Securities Act, and such
other documents, as such seller may reasonably request in order to facilitate
the disposition of the securities owned by such seller;

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     (e) use its best efforts to register or qualify and cooperate with the
Holders of Registrable Securities, the underwriters and their respective
counsels in connection with the registration or qualification (or exemption from
such registration or qualification) of the securities covered by such
Registration Statement under such other securities or blue sky laws of such
jurisdictions as each seller shall request; provided, however, that where
Registrable Securities are offered other than through an underwritten offering,
the Company agrees to cause its counsel to perform blue sky investigations and
file registrations and qualifications required to be filed pursuant to this
Section 3.2(e); keep each such registration or qualification (or exemption
therefrom) effective during the period such Registration Statement is required
to be effective hereunder and do any and all other acts and things which may be
necessary or advisable to enable such seller to consummate the disposition in
such jurisdictions of the securities owned by such seller, except that the
Company shall not for any such purpose be required to qualify generally to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified, subject itself to taxation in any jurisdiction wherein it is not so
subject, or take any action which would subject it to general service of process
in any jurisdiction wherein it is not so subject;

     (f) in connection with an underwritten public offering only, furnish to
each seller of Registrable Securities a signed counterpart, addressed to the
sellers, of

          (i) an opinion of counsel for the Company experienced in securities
law matters, dated the effective date of the Registration Statement, and

          (ii) a "cold comfort" letter signed by the independent public
accountants who have issued an audit report on the Company's financial
statements included in the Registration Statement, subject to such seller having
executed and delivered to the independent public accountants such certificates
and documents as such accountants shall reasonably request, covering
substantially the same matters with respect to the Registration Statement (and
the Prospectus included therein) and, in the case of such accountants' letter,
with respect to events subsequent to the date of such financial statements, as
are customarily covered in opinions of issuer's counsel and in accountants'
letters delivered to the underwriters in underwritten public offerings of
securities;

     (g) notify each Holder of Registrable Securities subject to such
Registration Statement

          (i) if such Registration Statement, at the time it or any amendment
thereto became effective, (x) contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
to make the statements therein not misleading upon discovery by the Company of
such material misstatement or omission or (y) upon discovery by the Company of
the happening of any event as a result of which the Company believes there would
be such a material misstatement or omission, and, as promptly as practicable,
prepare and file with the SEC a post-effective amendment to such registration
statement and use best efforts to cause such post-effective amendment to become
effective such that such registration statement, as so amended, shall not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and

          (ii) at any time when a Prospectus relating thereto is required to be
delivered under the Securities Act, if the Prospectus included in such
Registration Statement, as then in effect, includes an

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<PAGE>

untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading upon discovery by
the Company of such material misstatement or omission or upon discovery by the
Company of the happening of any event as a result of which the Company believes
there would be a material misstatement or omission, and, as promptly as is
practicable, prepare and furnish to such Holder a reasonable number of copies of
a supplement to or an amendment of such Prospectus as may be necessary so that,
as thereafter delivered to the purchasers of such securities, such Prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading;

     (h) otherwise use its best efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as
reasonably practicable, an earnings statement of the Company complying with the
provisions of Section 11(a) of the Securities Act and Rule 158 under the
Securities Act (or any similar rule promulgated under the Securities Act) no
later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) (i) commencing at
the end of any fiscal quarter in which Registrable Securities are sold to an
underwriter or to underwriters in a firm commitment or best efforts underwritten
offering and (ii) if not sold to an underwriter or to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of the Company
after the effective date of the relevant Registration Statement, which
statements shall cover said 12-month periods;

     (i) promptly notify each Holder of any Registrable Securities covered by
such Registration Statement, their counsel and the underwriters (i) when such
Registration Statement, or any post-effective amendment to such Registration
Statement, shall have become effective, or any amendment of or supplement to the
Prospectus used in connection therewith shall have been filed, (ii) of any
request by the SEC to amend such Registration Statement or to amend or
supplement such Prospectus or for additional information, (iii) of the issuance
by the SEC of any stop order suspending the effectiveness of such Registration
Statement or of any order preventing or suspending the use of any preliminary
prospectus or the initiation or threatening of any proceedings for any of such
purposes, (iv) of the suspension of the qualification of such securities for
offering or sale in any jurisdiction, or of the institution of any proceedings
for any of such purposes and (v) if at any time when a Prospectus is to be
required by the Securities Act to be delivered in connection with the sale of
the Registrable Securities, the representations and warranties of the Company
contained in any agreement (including the underwriting agreement contemplated in
Section 3.3(b) below), to the knowledge of the Company, cease to be true and
correct in any material respect;

     (j) use its best efforts to prevent the issuance of any order suspending
the effectiveness of the Registration Statement or of any order preventing or
suspending the use of a Prospectus or suspending the qualification (or exemption
from qualification) of any of the Registrable Securities covered thereby for
sale in any jurisdiction, and, if any such order is issued, to obtain the
withdrawal of any such order at the earliest possible moment;

     (k) if requested by the managing underwriter, if any, or the Holders of a
majority of the Registrable

                                       10

<PAGE>

Securities being sold in connection with an underwriting offering, (i) promptly
incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriter, if any, or such Holders reasonably
request to be included therein to comply with applicable law and (ii) make all
required filings of such prospectus supplement or such post-effective amendment
as soon as practicable after the Company has received notification of the
matters to be incorporated in such prospectus supplement or post-effective
amendment;

     (l) cooperate with the Holders and the managing underwriter, if any, to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold, which certificates shall not bear any
restrictive legends whatsoever and shall be in a form eligible for deposit with
DTC, and enable such Registrable Securities to be in such denominations and
registered in such names as the underwriters, if any, or Holders may reasonably
request at least two business days prior to any sale of Registrable Securities
in a firm commitment underwritten public offering;

     (m) use its best efforts to cause the Registrable Securities covered by a
Registration Statement to be registered with, and to obtain the consent or
approval of, each governmental agency or authority, whether federal, state,
local or foreign, which may be required to effect such registration or the
offering or sale in connection therewith or to enable the selling Holders to
offer, or to consummate the disposition of, the Registrable Securities subject
to such Registration Statement, except as may be required solely as a
consequence of the nature of such selling Holder's business, in which case the
Company will cooperate in all reasonable respects with the filing of the
Registration Statement and the granting of such approvals;

     (n) prior to the effective date of the Registration Statement, (i) provide
the registrar for the Common Stock or such other Registrable Securities with
printed certificates for such securities in a form eligible for deposit with DTC
and (ii) provide a CUSIP number for such securities; and

     (o) have the right -- if the Board of Directors of the Company, in its good
faith judgment based on advice from its investment banker or legal counsel,
determines that any Registration of shares of Common Stock should not be made or
continued because it would materially interfere with any material financing,
acquisition, corporation reorganization, merger, or other transaction involving
the Company (a "Valid Business Reason") -- (i) to postpone filing a Registration
Statement until such Valid Business Reason no longer exists, but in no event for
more than 45 days, and (ii) to cause any Registration Statement that has already
been filed to be withdrawn and its effectiveness terminated or to postpone
amending or supplementing such Registration Statement until such Valid Business
Reason no longer exists, but in no event for more than 45 days (the
"Postponement Period"); provided, however, that in no event shall the Company be
permitted to postpone or withdraw a Registration Statement within 190 days after
the expiration of the Postponement Period.

     The Company may require each Holder of any Registrable Securities as to
which any registration is being effected to furnish to the Company such
information regarding such Holder and the distribution of such securities as the
Company may from time to time reasonably request in writing and as shall be
required by law in connection therewith. Each such Holder agrees to

                                       11

<PAGE>

furnish promptly to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such Holder
not materially misleading.

     The Company agrees not to file or make any amendment to any Registration
Statement with respect to any Registrable Securities, or any amendment of or
supplement to the Prospectus used in connection therewith, which refers to any
seller of any securities covered thereby by name, or otherwise identifies such
seller as the holder of any securities of the Company, without the consent of
such seller, such consent not to be unreasonably withheld, except that no such
consent shall be required for any disclosure that is required by law.

     By the acquisition of Registrable Securities, each Holder shall be deemed
to have agreed that upon receipt of any notice from the Company pursuant to
Section 3.2(g) or (o), such Holder will promptly discontinue such Holder's
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Holder shall have received, in
the case of clause (i) of Section 3.2(g), notice from the Company that such
Registration Statement has been amended, as contemplated by Section 3.2(g); in
the case of clause (ii) of Section 3.2(g), copies of the supplemented or amended
Prospectus contemplated by Section 3.2(g); or, in the case of Section 3.2(o),
the time period specified has elapsed or such Holder has received notice from
the Company that the Postponement Period has been terminated. 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, in such Holder's possession of the
Prospectus covering such Registrable Securities at the time of receipt of such
notice. In the event that the Company shall give any such notice, the period
mentioned in Section 3.2(b) shall be extended by the number of days during the
period from and including the date of the giving of such notice to and including
the date when each seller of any Registrable Securities covered by such
Registration Statement shall have received the copies of the supplemented or
amended Prospectus contemplated by Section 3.2(g).

     3.3 UNDERWRITTEN OFFERINGS. The provisions of this Section 3.3 do not
establish additional registration rights but instead set forth procedures
applicable, in addition to those set forth in Sections 3.1 and 3.2, to any
registration that is an underwritten offering.

     (a) UNDERWRITTEN OFFERINGS EXCLUSIVE. Whenever a registration requested
pursuant to Section 3.1 is for an underwritten offering, only securities that
are to be distributed by the underwriters may be included in the registration.

     (b) UNDERWRITING AGREEMENT. If requested by the underwriters for any
underwritten offering by Holders pursuant to a registration requested under
Section 3.1, the Company shall enter into an underwriting agreement with such
underwriters for such offering, such agreement to be reasonably satisfactory in
substance and form to the Holders of a majority of the Registrable Securities to
be covered by such registration and to the underwriters and to contain such
representations and warranties by the Company and such other terms and
provisions as are customarily contained in agreements of this type, including,
but not limited to, indemnities to the effect and to the extent provided in
Section 3.5, provisions for the delivery of officers'

                                       12

<PAGE>

certificates, opinions of counsel and accountants' "cold comfort" letters, and
hold-back arrangements. The Holders of Registrable Securities to be distributed
by such underwriters shall be parties to such underwriting agreement and may, at
their option, require that any or all of the representations and warranties by,
and the agreements on the part of, the Company to and for the benefit of such
underwriters be made to and for the benefit of such Holders and that any or all
of the conditions precedent to the obligations of such underwriters under such
underwriting agreement shall also be conditions precedent to the obligations of
such Holders. No such Holder shall be required by the Company to make any
representations or warranties to, or agreements with, the Company or the
underwriters other than as set forth in Section 3.3(d) and representations,
warranties or agreements regarding such Holder and such Holder's intended method
of distribution.

     (c) SELECTION OF UNDERWRITERS. Whenever a registration requested pursuant
to Section 3.1 is for an underwritten offering, the Holders of a majority of the
Registrable Securities to be registered pursuant to such offering shall have the
right to select one or more underwriters to administer the offering, subject to
the consent of the Company, which shall not be unreasonably withheld. In all
cases in this Section 3.3(c), at least one of the underwriters shall be an
underwriter of nationally recognized standing.

     (d) HOLD BACK AGREEMENTS. If the executive officers of the Company are
required to enter into a similar agreement, if whenever the Company proposes to
register any of its equity securities under the Securities Act, whether or not
for its own account (other than pursuant to a Special Registration), or is
required to use its best efforts to effect the registration of any Registrable
Securities under the Securities Act pursuant to Section 3.1, each Holder who at
such time holds more than 5% of the issued and outstanding shares of Common
Stock of the Company, if required by the managing underwriter in an underwritten
offering, agrees by acquisition of such Registrable Securities not to effect
(other than pursuant to such registration) any public sale or distribution,
including, but not limited to, any sale pursuant to Rule 144, of any Registrable
Securities, any other equity securities of the Company or any securities
convertible into or exchangeable or exercisable for any equity securities of the
Company during the 10 days prior to, and for 90 days after, the effective date
of such registration, to the extent timely notified in writing by the Company or
the managing underwriter, and the Company agrees to cause each holder of any
equity security, or of any security convertible into or exchangeable or
exercisable for any equity security, of the Company purchased from the Company
at any time other than in a public offering to enter into a similar agreement
with the Company. The foregoing provisions shall not apply to any Holder if such
Holder is prevented by applicable statute or regulation from entering into any
such agreement; provided, however, that any such Holder shall undertake, in its
request to participate in any such underwritten offering, not to effect any
public sale or distribution of any applicable class of Registrable Securities
commencing on the date of sale of such applicable class of Registrable
Securities unless it has provided 45 days prior written notice of such sale or
distribution to the underwriter or underwriters. The Company further agrees not
to effect (other than pursuant to such registration or pursuant to a Special
Registration) any public sale or distribution, or to file any Registration
Statement (other than such registration or a Special Registration) covering any,
of its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities, during the 10 days prior to, and for 90 days
after,

                                       13

<PAGE>

the effective date of such registration if required by the managing underwriter.

     3.4 PREPARATION; REASONABLE INVESTIGATION. In connection with the
preparation and filing of each Registration Statement registering Registrable
Securities under the Securities Act, the Company shall give the Holders of such
Registrable Securities so to be registered and their underwriters, if any, and
their respective counsel and accountants, the opportunity to participate in the
preparation of such Registration Statement, each Prospectus included therein or
filed with the SEC, and each amendment thereof or supplement thereto, and shall
give each of them such access to all pertinent financial, corporate and other
documents and properties of the Company and its Subsidiaries, and such
opportunities to discuss the business of the Company with its officers,
directors, employees and the independent public accountants who have issued
audit reports on its financial statements as shall be necessary, in the opinion
of such Holders' and such underwriters' respective counsel, to conduct a
reasonable investigation within the meaning of the Securities Act.

     3.5 INDEMNIFICATION.

     (a) INDEMNIFICATION BY THE COMPANY. In the event of any registration of any
Registrable Securities under the Securities Act pursuant to Section 3.1, the
Company shall indemnify and hold harmless the seller of such securities, its
directors, officers, and employees, each other person who participates as an
underwriter, broker or dealer in the offering or sale of such securities and
each other person, if any, who controls such seller or any such participating
person within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act, against any and all losses, claims, damages or
liabilities, joint or several, to which such seller or any such director,
officer, employee, participating person or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) arise out of or
are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement under which such
securities were registered under the Securities Act, any Prospectus or
preliminary prospectus included therein, or any amendment or supplement thereto,
or (ii) any omission or alleged omission to state a material fact required to be
stated in any such Registration Statement, Prospectus, preliminary prospectus,
amendment or supplement or necessary to make the statements therein not
misleading; and the Company shall reimburse such seller and each such director,
officer, employee, participating person and controlling person for any legal or
any other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, liability, action or proceeding as such
expenses are incurred; provided 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 an untrue statement or omission made in any such
Registration Statement, Prospectus, preliminary prospectus, amendment or
supplement in reliance upon and in conformity with written information furnished
to the Company by such seller or participating person expressly for use in the
preparation thereof.

     (b) INDEMNIFICATION BY THE SELLERS. In the event of any registration of any
Registrable Securities under the Securities Act pursuant to Section 3.1, each of
the prospective sellers of such

                                       14

<PAGE>

securities, will indemnify and hold harmless the Company, each director of the
Company, each officer of the Company who shall sign such Registration Statement,
and each other person, if any, who controls the Company or any such
participating person within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any and all losses, claims, damages or
liabilities, joint or several, to which the Company or any such director,
officer, employee, participating person or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement under which such securities were
registered under the Securities Act, any Prospectus or preliminary prospectus
included therein, or any amendment or supplement thereto, or any omission or
alleged omission to state a material fact with respect to such seller required
to be stated in any such Registration Statement, Prospectus, preliminary
prospectus, amendment or supplement or necessary to make the statements therein
not misleading if such statement or omission was made in reliance upon and in
conformity with written information furnished to the Company by such seller
expressly for use in the preparation of any such Registration Statement,
Prospectus, preliminary prospectus, amendment or supplement; provided that the
liability of each such seller shall be in proportion to and limited to the net
amount received by such seller (after deducting any underwriting discount and
expenses) from the sale of Registrable Securities pursuant to such Registration
Statement.

     (c) NOTICES OF CLAIMS, ETC. Promptly after receipt by an indemnified party
of notice of the commencement of any action or proceeding involving a claim
referred to in the preceding paragraphs of this Section 3.5, such indemnified
party shall, if a claim in respect thereof is to be made against an indemnifying
party hereunder, give prompt written notice to the latter of the commencement of
such action, provided that the failure of any indemnified party to give notice
as provided therein shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 3.5 unless the failure to provide
prompt written notice shall cause actual prejudice to the indemnifying party. In
case any such action is brought against an indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party shall
have the right to retain counsel reasonably satisfactory to such indemnified
party to defend against such proceeding and shall pay the reasonable fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel and the
payment of such fees by the indemnifying party or (ii) the named parties to any
such proceeding (including any impleaded parties) include both the indemnifying
party and the indemnified party and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests
between them or (iii) the indemnifying party has not retained counsel to defend
such proceeding, in which case (under any of such clauses (i), (ii) or (iii)) it
is understood that (x) the indemnifying party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the
reasonable fees and expenses of more than one separate firm for all such
indemnified parties and (y) such firm shall be designated in writing by the
Holders of a majority of the Registrable Securities included in such
Registration Statement in the case of parties indemnified pursuant to Section
3.5(a) and by the Company in

                                       15

<PAGE>

the case of parties indemnified pursuant to Section 3.5(b). All fees and
expenses that an indemnified party is entitled to receive from an indemnifying
party under this Section 3.5 shall be reimbursed as they are incurred, provided
that each such indemnified party shall promptly repay such fees and expenses if
it is finally judicially determined that such indemnified party is not entitled
to indemnification hereunder. No indemnifying party, in the defense of any such
claim or litigation, shall, except with the consent of such indemnified party,
which consent shall not be unreasonably withheld, consent to entry of any
judgment or enter into any settlement of any pending or threatened action in
respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such
judgment or settlement includes as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all
liability in respect to such claim or litigation.

     (d) OTHER INDEMNIFICATION. Indemnification similar to that specified in the
preceding paragraphs of this Section 3.5 (with appropriate modifications) shall
be given by the Company and each seller of Registrable Securities with respect
to any required registration or other qualification of such Registrable
Securities under any federal or state law or regulation of governmental
authority other than the Securities Act.

     (e) OTHER REMEDIES. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, other
than by reason of the exceptions provided therein, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities, as well as any other relevant equitable considerations. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company or the Holders of Registrable Securities covered by the Registration
Statement in question and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     The Company and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 3.5 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding
paragraph of this Section 3.5 shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim. 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. No party shall be liable for contribution under this Section
3.5(e) except to the extent and under such circumstances as such party would
have been liable to indemnify under this Section 3.5 if such indemnification
were enforceable under applicable law.

                                       16

<PAGE>

     3.6 EXPENSES. The Company shall pay all Registration Expenses in
connection with each registration of Registrable Securities pursuant to this
Section 3.

     4. MISCELLANEOUS.

          4.1 RULE 144; LEGENDED SECURITIES; ETC.

          (a) The Company shall file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder (or, if the Company is not required to file such
reports, it shall, upon the request of any Holder, make publicly available such
information as necessary to permit sales pursuant to Rule 144 or Rule 145), and
shall take such further action as any Holder may reasonably request, all to the
extent required from time to time to enable such holder to sell shares of
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 or Rule 145. Upon the request
of any Holder, the Company shall deliver to such Holder a written statement as
to whether it has complied with such requirements.

          (b) The Company shall issue new certificates for Registrable
Securities without a legend restricting further transfer if (i) such securities
have been sold to the public pursuant to an effective Registration Statement
under the Securities Act (other than Form S-8 if the Holder of such Registrable
Securities is an Affiliate) or Rule 144, or (ii) (x) such issuance is otherwise
permitted under the Securities Act, (y) the Holder of such shares has delivered
to the Company an opinion of counsel, which opinion and counsel shall be
reasonably satisfactory to the Company, to such effect and (z) the Holder of
such shares expressly requests the issuance of such certificates in writing.

          4.2 AMENDMENTS AND WAIVERS. This Agreement may be amended, modified or
supplemented, and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company shall
have obtained the written consent to such amendment, action or omission to act,
of the Holder or Holders of at least a majority of the Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders whose securities are being sold pursuant to a Registration Statement and
that does not directly or indirectly affect, impair, limit or compromise the
rights of other Holders may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Registration
Statement; provided, however, that the provisions of this sentence may not be
amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence. No amendment, modification or discharge of
this Agreement, and no waiver hereunder, shall be valid or binding unless set
forth in writing. Any such waiver shall constitute a waiver only with respect to
the specific matter described in such writing and shall in no way impair the
rights of the party or parties granting such waiver in any other respect or at
any other time. The amendments and modifications to the Original Agreement that
were made by the Letter

                                       17

<PAGE>

Agreement are incorporated in this Agreement in their entirety and such Letter
Agreement (to the extent that the provisions thereof relate to the rights and
obligations of the parties under the Original Agreement) is superseded by this
Agreement.

          4.3 NOMINEES FOR BENEFICIAL OWNERS. In the event that any Registrable
Securities are held by a nominee for the beneficial owner thereof, the
beneficial owner thereof may, at its election and unless notice is otherwise
given to the Company by the record owner, be treated as the holder of such
Registrable Securities for purposes of any request or other action by any Holder
or Holders pursuant to this Agreement or any determination of any number or
percentage of shares of Registrable Securities held by any Holder or Holders
contemplated by this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably satisfactory
to it of such owner's beneficial ownership of such Registrable Securities.

          4.4 SUCCESSORS, ASSIGNS AND TRANSFEREES. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors assign and transferees. Group or a Holder may assign its
rights hereunder to an Affiliate or to other successors, assigns and transferees
of Group or such Holder. This Agreement shall survive any transfer of
Registrable Securities to and shall inure to the benefit of an Affiliate or such
other successors, assigns and transferees of Group or such Holder. In addition,
and whether or not any express assignment shall have been made, the provisions
of this Agreement which are for the benefit of the parties hereto other than the
Company shall also be for the benefit of and enforceable by any subsequent
Holder of Registrable Securities, subject to the provisions respecting the
minimum numbers or percentages of shares of Registrable Securities required in
order to be entitled to certain rights, or take certain actions, contained
herein.

          4.5 NOTICES. All notices and other communications in connection with
this Agreement shall be in writing. Any notice or other communication in
connection herewith shall be deemed duly given to any party (a) two Business
Days after it is sent by express, registered or certified mail, return receipt
requested, postage prepaid, (b) one Business Day after it is sent by overnight
courier, (c) when delivered by hand, if personally delivered or (d) when receipt
is acknowledged by the addressee, if telecopied. Notices shall be addressed, if
to any Holder not a party hereto on the date hereof, to the address of such
Holder in the stock record books of the Company, and if to the Company to the
following address:

     USA Education, Inc.
     11600 Sallie Mae Drive
     Reston, VA  20193
     Attn:   Marianne M. Keler
     (703) 810-5208 (phone)
     (703) 810-7695 (telefax)

                                       18

<PAGE>

     with a copy to:
     Wilmer, Cutler & Pickering
     2445 M Street, N.W.
     Washington, D.C.  20037
     Facsimile:  (202) 663-6363
     Attention:  Richard W. Cass

or at such other address or addresses as the Company may have designated in
writing to each holder of Registrable Securities at the time outstanding.

Any party may give any notice or other communication in connection herewith
using any other means (including, but not limited to, messenger service, telex
or ordinary mail), but no such notice or other communication shall be deemed to
have been duly given unless and until it is actually received by the individual
for whom it is intended.

          4.6 NO INCONSISTENT AGREEMENTS. The Company shall not hereafter enter
into any agreement, or amend any existing agreement, with respect to its
securities if such agreement would be inconsistent with the rights granted to
the Holders by this Agreement.

          4.7 REMEDIES; ATTORNEYS' FEES. Each Holder of Registrable Securities,
in addition to being entitled to exercise all rights provided herein or granted
by law, including recovery of damages, shall be entitled to specific performance
of its rights under this Agreement. The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of any provision of this Agreement and hereby agrees to waive the defense
in any action for specific performance that a remedy at law would be adequate.
As between the parties to this Agreement, in any action or proceeding brought to
enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the successful party shall be entitled to recover
reasonable attorney's fees in addition to its costs and expenses and any other
available remedy.

          4.8 SEVERABILITY. If any clause, provision or section of this
Agreement shall be invalid, illegal or unenforceable, the invalidity, illegality
or unenforceability of such clause, provision or section shall not affect the
enforceability or validity of any of the remaining clauses, provisions or
sections hereof to the extent permitted by applicable law. The invalidity of any
one or more phrases, sentences, clauses, Sections or subsections of this
Agreement shall not affect the remaining portions of this Agreement.

          4.9 HEADINGS. The headings contained in this Agreement are for
purposes of convenience only and shall not

                                       19

<PAGE>

affect the meaning or interpretation of this Agreement.

          4.10 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original and all of which
together constitute one and the same instrument.

          4.11 GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of Delaware,
without giving effect to its principles or rules of conflict of laws that would
require the application of the laws of any other jurisdiction.

          4.12 NO THIRD PARTY BENEFICIARIES. Except as provided in Sections 3.5
and 4.4, nothing in this Agreement shall confer any rights upon any person or
entity other than the parties hereto, each such party's respective successors
and permitted assigns.

          4.13 CONSENT TO JURISDICTION. Each party irrevocably submits to the
personal exclusive jurisdiction of the United States District Court for the
District of Delaware for the purposes of any suit, action or other proceeding
arising out of this Agreement or any transaction contemplated hereby (and, to
the extent permitted under applicable rules of procedure, agrees not to commence
any action, suit or proceeding relating hereto except in such court). Each party
further agrees that service of any process, summons, notice or document hand
delivered or sent by registered mail to such party's respective address set
forth in Section 4.5 will be effective service of process for any action, suit
or proceeding in Delaware with respect to any matters to which it has submitted
to jurisdiction as set forth in the immediately preceding sentence. Each party
irrevocably and unconditionally waives any objection to the laying of venue of
any action, suit or proceeding arising out of this Agreement or the transactions
contemplated hereby in the United States District Court for the District of
Delaware, and hereby further irrevocably and unconditionally waives and agrees
not to plead or claim in such court that any such action, suit or proceeding
brought in such court has been brought in an inconvenient forum.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                       20

<PAGE>

         IN WITNESS WHEREOF, each of the undersigned has executed this
Registration Rights Agreement or caused this Agreement to be executed on its
behalf as of the date first written above.

                          USA EDUCATION, INC.

                          By:    /s/ MARIANNE M. KELER
                              --------------------------------------------------
                          Name:  Marianne M. Keler
                                ------------------------------------------------
                          Title: Senior Vice President & General Counsel
                                 -----------------------------------------------

                          LUMINA FOUNDATION FOR EDUCATION, INC.

                          By:    /s/ J. DAVID MAAS
                              --------------------------------------------------
                          Name:  J. David Maas
                                ------------------------------------------------
                          Title: Senior Vice President & Chief Financial Officer
                                 -----------------------------------------------

                                       21<PAGE>

                                                                     EXHIBIT 4.2

                        GABLES REALTY LIMITED PARTNERSHIP

                                     ISSUER

                                       to

                            FIRST UNION NATIONAL BANK

                                     TRUSTEE

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

                          Supplemental Indenture No. 4

                          Dated as of February 22, 2001

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

                                  $150,000,000

                                       of

                           7.25% Senior Notes Due 2006
<PAGE>

                  SUPPLEMENTAL INDENTURE NO. 4, dated as of February 22, 2001
(the "Supplemental Indenture"), between GABLES REALTY LIMITED PARTNERSHIP, a
limited partnership organized under the laws of the State of Delaware (herein
called the "Partnership"), and FIRST UNION NATIONAL BANK, a national banking
association, as Trustee (herein called the "Trustee").

                           RECITALS OF THE PARTNERSHIP

                  The Partnership has heretofore delivered to the Trustee an
Indenture dated as of March 23, 1998, as supplemented by Supplemental Indenture
No. 1, dated as of March 23, 1998, Supplemental Indenture No. 2, dated as of
September 30, 1998, and Supplemental Indenture No. 3, dated as of October 8,
1998 (the "Senior Indenture"), which has been filed with the Securities and
Exchange Commission under the Securities Act of 1933, as amended, as an exhibit
to the Partnership's Registration Statement on Form S-3 (Registration No.
333-68359), providing for the issuance by the Partnership from time to time of
its senior debt securities evidencing its unsecured and unsubordinated
indebtedness (the "Securities").

                  Section 301 of the Senior Indenture provides for various
matters with respect to any series of Securities issued under the Senior
Indenture to be established in an indenture supplemental to the Senior
Indenture.

                  Section 901(7) of the Senior Indenture provides for the
Partnership and the Trustee to enter into an indenture supplemental to the
Senior Indenture to establish the form or terms of Securities of any series as
provided by Sections 201 and 301 of the Senior Indenture.

                  The Board of Directors of Gables GP, Inc., the general partner
of the Partnership, has duly adopted resolutions authorizing the Partnership to
execute and deliver this Supplemental Indenture.

                  All of the conditions and requirements necessary to make this
Supplemental Indenture, when duly executed and delivered, a valid and binding
agreement in accordance with its terms and for the purposes herein expressed,
have been performed and fulfilled.

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

                  For and in consideration of the premises and the purchase of
the series of Securities provided for herein by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of Securities of such series, as follows:

                                  ARTICLE ONE

                    RELATION TO SENIOR INDENTURE; DEFINITIONS

                  SECTION 1.1.  RELATION TO SENIOR INDENTURE.

                  This Supplemental Indenture constitutes an integral part of
the Senior Indenture.
<PAGE>

                  SECTION 1.2.  DEFINITIONS.

                  For all purposes of this Supplemental Indenture, except as
otherwise expressly provided for or unless the context otherwise requires:

                  (1) Capitalized terms used but not defined herein shall have
         the respective meanings assigned to them in the Senior Indenture; and

                  (2) All references herein to Articles and Sections, unless
         otherwise specified, refer to the corresponding Articles and Sections
         of this Supplemental Indenture.

                  "Acquired Debt" means Debt of a Person (i) existing at the
time such Person becomes a Subsidiary or (ii) assumed in connection with the
acquisition of assets from such Person, in each case, other than Debt incurred
in connection with, or in contemplation of, such Person becoming a Subsidiary or
such acquisition. Acquired Debt shall be deemed to be incurred on the date of
the related acquisition of assets from any Person or the date the acquired
Person becomes a Subsidiary.

                  "Adjusted Total Assets" as of any date means the sum of (i)
the amount determined by multiplying the price at which the Common Shares of
Gables were offered in the initial public offering (the "IPO") of Common Shares
of Gables by the sum of (A) the Common Shares issued in the IPO and (B) the
Units of the Partnership not held by Gables that were issued in connection with
the IPO, (ii) the principal amount of outstanding Debt of the Partnership
immediately following the IPO and (iii) the purchase price or cost of any real
estate assets or mortgages receivable (or interests therein) acquired (including
the value of any Units issued in connection therewith) or developed after the
IPO and the amount of any securities offering proceeds and other proceeds of
Debt received after the IPO (to the extent such proceeds were not used to
acquire real estate assets or mortgages receivable or used to reduce Debt),
adjusted for the proceeds of any real estate assets disposed of by the
Partnership. This definition of "Adjusted Total Assets" values the assets owned
by the Partnership at the time of the IPO at the market capitalization of the
Partnership at that time, which the Partnership believes to be a more
appropriate measure of the value of those assets than undepreciated book value,
which reflects their pre-IPO cost before accumulated depreciation.

                  "Annual Debt Service Charge" as of any date means the amount
of any interest expensed during the four consecutive fiscal quarters most
recently ended prior to such date.

                  "Common Shares" means the common shares of beneficial
interest, par value $0.01 per share, of Gables.

                  "Consolidated Income Available for Debt Service" for any
period means Consolidated Net Income of the Partnership and its Subsidiaries
plus amounts which have been deducted for: (i) interest on Debt of the
Partnership and its Subsidiaries, (ii) provision for taxes of the Partnership
and its Subsidiaries based on income, (iii) amortization of debt discount, (iv)
provisions for gains and losses on properties, (v) depreciation and
amortization, (vi) the effect of any noncash charge resulting from a change in
accounting principles in determining Consolidated Net Income for such period and
(vii) amortization of deferred charges.

                                       2
<PAGE>

                  "Consolidated Net Income" for any period means the amount of
net income (or loss) of the Partnership and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP.

                  "Corporate Trust Office", including for purposes of the Place
of Payment provisions of Sections 305 and 1002 of the Senior Indenture, means
the office of the Trustee at which, at any particular time, its corporate trust
business shall be principally administered, which office at the date hereof is
located at 999 Peachtree Street, N.E., Atlanta, Georgia 30309.

                  "Debt" of the Partnership or any Subsidiary means any
indebtedness of the Partnership or any Subsidiary, whether or not contingent, in
respect of (i) borrowed money evidenced by bonds, notes, debentures or similar
instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge,
encumbrance or any security interest existing on property owned by the
Partnership or any Subsidiary, (iii) reimbursement obligations in connection
with any letters of credit actually issued or amounts representing the balance
deferred and unpaid of the purchase price of any property except any such
balance that constitutes an accrued expense or trade payable or (iv) any lease
of property by the Partnership or any Subsidiary as lessee which is reflected on
the Partnership's consolidated balance sheet as a capitalized lease in
accordance with GAAP; in the case of items of indebtedness incurred under (i)
through (iii) above to the extent that any such items (other than letters of
credit) would appear as a liability on the Partnership's consolidated balance
sheet in accordance with GAAP; and also includes, to the extent not otherwise
included, any obligation of the Partnership or any Subsidiary to be liable for,
or to pay, as obligor, guarantor or otherwise (other than for purposes of
collection in the ordinary course of business), indebtedness of another Person
(other than the Partnership or any Subsidiary).

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder by the Commission.

                  "Gables" means Gables Residential Trust, a Maryland real
estate investment trust.

                  "Make-Whole Amount" means, in connection with any optional
redemption or accelerated payment of any Note, the excess, if any, of (i) the
aggregate present value as of the date of such redemption or accelerated payment
of each dollar of principal being redeemed or paid and the amount of interest
(exclusive of interest accrued to the date of redemption or accelerated payment)
that would have been payable in respect of such dollar if such redemption or
accelerated payment had not been made, determined by discounting, on a
semi-annual basis, such principal and interest at the Reinvestment Rate
(determined on the third Business Day preceding the date such notice of
redemption is given or declaration of acceleration is made) from the respective
dates on which such principal and interest would have been payable if such
redemption or accelerated payment had not been made, over (ii) the aggregate
principal amount of the Notes being redeemed or paid. Any Make-Whole Amount
shall be determined by the Partnership, when owing, in an Officers' Certificate
to be filed with the Trustee, which certificate shall set out the computation of
such Make Whole Amount.

                                       3
<PAGE>

                  "Management Companies" means certain corporations, of which
the Partnership owns 100% of the nonvoting stock and 1% of the voting stock,
which do not qualify as "qualified REIT subsidiaries" under the Internal Revenue
Code of 1986, as amended.

                  "Notes" has the meaning specified in Section 2.1 hereof.

                  "Reinvestment Rate" means the yield on Treasury securities at
a constant maturity corresponding to the remaining life (as of the date of
redemption, and rounded to the nearest month) to stated maturity of the
principal being redeemed (the "Treasury Yield"), plus 0.25%. For purposes
hereof, the Treasury Yield shall be equal to the arithmetic mean of the yields
published in the Statistical Release (as defined below) under the heading "Week
Ending" for the "U.S. Government Securities--Treasury Constant Maturities" with
a maturity equal to such remaining life; provided, that if no published maturity
exactly corresponds to such remaining life, then the Treasury Yield shall be
interpolated or extrapolated on a straight-line basis from the arithmetic means
of the yields for the next shortest and next longest published maturities. For
purposes of calculating the Reinvestment Rate, the most recent Statistical
Release published prior to the date of determination of the Make-Whole Amount
shall be used. If the format or content of the Statistical Release changes in a
manner that precludes determination of the Treasury Yield in the above manner,
then the Treasury Yield shall be determined in the manner that most closely
approximates the above manner, as reasonably determined by the Partnership.

                  "Statistical Release" means the statistical release designated
"H.15(519)" or any successor publication which is published weekly by the
Federal Reserve System and which establishes yields on actively traded United
States government securities adjusted to constant maturities or, if such
statistical release is not published at the time of any determination of the
Make-Whole Amount, then such other reasonably comparable index which shall be
designated by the Partnership.

                  "Subsidiary" means, with respect to any Person, any
corporation or other entity of which a majority of (i) the voting power of the
voting equity securities or (ii) the outstanding equity interests of which are
owned, directly or indirectly, by such Person. For the purposes of this
definition, "voting equity securities" means equity securities having voting
power for the election of directors, whether at all times or only so long as no
senior class of security has such voting power by reason of any contingency.

                  "Unencumbered Total Asset Value" as of any date means the sum
of (i) the portion of Adjusted Total Assets allocable to the Partnership's real
estate assets and (ii) the value of all other assets of the Partnership and its
Subsidiaries on a consolidated basis determined in accordance with GAAP (but
excluding intangibles and accounts receivable), in each case which are
unencumbered by any mortgage, lien, charge, pledge or security interest.

                  "Units" means units of limited partnership of the Partnership.

                                       4
<PAGE>

                                  ARTICLE TWO

                                    THE NOTES

                  SECTION 2.1. TITLE OF THE SECURITIES.

                  There shall be a series of Securities designated the "7.25%
Senior Notes Due 2006" (the "Notes").

                  SECTION 2.2. LIMITATION ON AGGREGATE PRINCIPAL AMOUNT.

                  The aggregate principal amount of the Notes initially shall be
limited to $150,000,000. The Partnership may, subject to Section 2.4 of this
Supplemental Indenture and applicable law, issue additional Notes under this
Supplemental Indenture without the consent of the Holders of outstanding Notes.
The initially issued Notes and any additional Notes subsequently issued shall be
treated as a single class for all purposes of this Supplemental Indenture.

                  Nothing contained in this Section 2.2 or elsewhere in this
Supplemental Indenture, or in the Notes, is intended to or shall limit execution
by the Partnership or authentication or delivery by the Trustee of Notes under
the circumstances contemplated by Sections 303, 304, 305, 306, 906, 1107 and
1305 of the Senior Indenture.

                  SECTION 2.3. INTEREST AND INTEREST RATES; MATURITY DATE OF
                               NOTES.

                  The Notes will bear interest at 7.25% per annum from February
22, 2001 or from the immediately preceding Interest Payment Date (as defined
below) to which interest has been paid, payable semi-annually in arrears on
February 15 and August 15 of each year, commencing August 15, 2001 (each, an
"Interest Payment Date"), to the persons (the "Holders") in whose name the
applicable Notes are registered in the Security Register at the close of
business 15 calendar days prior to such Interest Payment Date, I.E. January 31
and July 31, respectively (regardless of whether such day is a Business Day, as
defined below), as the case may be (each, a "Regular Record Date"). Interest on
the Notes will be computed on the basis of a 360-day year of twelve 30-day
months. Any interest not punctually paid or duly provided for on any Interest
Payment Date with respect to a Note ("Defaulted Interest") will forthwith cease
to be payable to the Holder on the applicable Regular Record Date and may either
be paid to the person in whose name such Note is registered at the close of
business on a special record date (the "Special Record Date") for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to the Holder of such Note not less than ten days prior to such Special
Record Date, or may be paid at any time in any other lawful manner, as more
particularly described in the Indenture.

                  If any Interest Payment Date or Maturity falls on a day that
is not a Business Day, the required payment shall be on the next Business Day as
if it were made on the date such payment was due and no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date
or Maturity, as the case may be.

                  The Notes will mature on February 15, 2006.

                                       5
<PAGE>

                  SECTION 2.4. LIMITATIONS ON INCURRENCE OF DEBT.

                  (1) The Partnership will not, and will not permit any
Subsidiary to, incur any Debt, other than intercompany Debt (representing Debt
to which the only parties are Gables, any of its Subsidiaries, the Partnership
or the Management Companies, but only so long as such Debt is held solely by any
of the foregoing), if, immediately after giving effect to the incurrence of such
additional Debt and the application of the proceeds thereof, the aggregate
principal amount of all outstanding Debt of the Partnership and its Subsidiaries
on a consolidated basis determined in accordance with GAAP is greater than 60%
of the sum of (without duplication) (i) the Partnership's Adjusted Total Assets
as of the end of the calendar quarter covered in the Partnership's Annual Report
on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently
filed with the Commission (or, if such filing is not permitted under the
Exchange Act, filed with the Trustee) prior to the incurrence of such additional
Debt, (ii) the purchase price of any real estate assets or mortgages receivable
(or interests therein) acquired by the Partnership or any Subsidiary since the
end of such calendar quarter, including those obtained in connection with the
incurrence of such additional Debt and (iii) the amount of any securities
offering proceeds received by the Partnership or any Subsidiary since the end of
such calendar quarter (to the extent that such proceeds were not used to acquire
such real estate assets or mortgages receivable or used to reduce Debt).

                  (2) In addition to the limitation set forth in subsection (1)
of this Section 2.4, the Partnership will not, and will not permit any
Subsidiary to, incur any Debt if the ratio of Consolidated Income Available for
Debt Service to the Annual Service Charge for the four consecutive fiscal
quarters most recently ended prior to the date on which such additional Debt is
to be incurred shall have been less than 1.5:1, on a PRO FORMA basis after
giving effect thereto and to the application of the proceeds therefrom, and
calculated on the assumption that (i) such Debt and any other Debt incurred by
the Partnership and its Subsidiaries since the first day of such four-quarter
period and the application of the proceeds therefrom, including to refinance
other Debt , had occurred at the beginning of such period; (ii) the repayment or
retirement of any other Debt by the Partnership and its Subsidiaries since the
first day of such four-quarter period had been repaid or retired at the
beginning of such period (except that, in making such computation, the amount of
Debt under any revolving credit facility shall be computed based upon the
average daily balance of such Debt during such period); (iii) in the case of
Acquired Debt or Debt incurred in connection with any acquisition since the
first day of such four-quarter period, the related acquisition had occurred as
of the first day of such period with the appropriate adjustments with respect to
such acquisition being included in such PRO FORMA calculation; and (iv) in the
case of any acquisition or disposition by the Partnership or its Subsidiaries of
any asset or group of assets since the first day of such four-quarter period,
whether by merger, stock purchase or sale, or asset purchase or sale, such
acquisition or disposition or any related repayment of Debt had occurred as of
the first day of such period with the appropriate adjustments with respect to
such acquisition or disposition being included in such PRO FORMA calculation.

                  (3) In addition to the limitations set forth in subsections
(1) and (2) of this Section 2.4, the Partnership will not, and will not permit
any Subsidiary to, incur any Debt secured by any mortgage, lien, charge, pledge,
encumbrance or security interest of any kind upon any of the property of the
Partnership or any Subsidiary ("Secured Debt"), whether owned at the date hereof
or thereafter acquired, if, immediately after giving effect to the incurrence of
such

                                       6
<PAGE>

Secured Debt and the application of the proceeds therefrom, the aggregate
principal amount of all outstanding Secured Debt of the Partnership and its
Subsidiaries on a consolidated basis is greater than 40% of the sum of (without
duplication) (i) the Partnership's Adjusted Total Assets as of the end of the
calendar quarter covered in the Partnership's Annual Report on Form 10-K or
Quarterly Report on Form 10-Q, as the case may be, most recently filed with the
Commission (or, if such filing is not permitted under the Exchange Act, filed
with the Trustee) prior to the incurrence of such additional Debt, (ii) the
purchase price of any real estate assets or mortgages receivable (or interests
therein) acquired by the Partnership or any Subsidiary since the end of such
calendar quarter, including those proceeds obtained in connection with the
incurrence of such additional Debt and (iii) the amount of any securities
offering proceeds received by the Partnership or any Subsidiary since the end of
such calendar quarter (to the extent that such proceeds were not used to acquire
such real estate assets or mortgages receivable or used to reduce Debt).

                  (4) The Partnership and its Subsidiaries will at all times
maintain an Unencumbered Total Asset Value in an amount not less than 150% of
the aggregate principal amount of all outstanding unsecured Debt of the
Partnership and its Subsidiaries on a consolidated basis.

                  (5) For purposes of this Section 2.4, Debt shall be deemed to
be "incurred" by the Partnership or a Subsidiary whenever the Partnership or
such Subsidiary shall create, assume, guarantee or otherwise become liable in
respect thereof.

                  SECTION 2.5. REDEMPTION.

                  The Notes may be redeemed at any time at the option of the
Partnership, in whole or in part, at a redemption price equal to the sum of (i)
the principal amount of the Notes being redeemed plus accrued interest thereon
to the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to
such Notes (the "Redemption Price").

                  SECTION 2.6. PLACES OF PAYMENT.

                  The Places of Payment where the Notes may be presented or
surrendered for payment, where the Notes may be surrendered for registration of
transfer or exchange and where notices and demands to and upon the Partnership
in respect of the Notes and the Senior Indenture may be served shall be in the
City of Atlanta, Georgia, and the office or agency for such purpose shall
initially be located at c/o First Union National Bank, Corporate Trust
Department, 999 Peachtree Street, N.E., Atlanta, Georgia 30309.

                  SECTION 2.7. METHOD OF PAYMENT.

                  Payment of the principal of and interest on the Notes will be
made at the office or agency of the Partnership maintained for that purpose in
the City of Atlanta, Georgia (which shall initially be an office or agency of
the Trustee), in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts;
PROVIDED, HOWEVER, that at the option of the Partnership, payments of principal
and interest on the Notes (other than payments of principal and interest due at
Maturity) may be made (i) by check

                                       7
<PAGE>

mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer to an account
maintained by the Person entitled thereto located within the United States.

                  SECTION 2.8. CURRENCY.

                  Principal and interest on the Notes shall be payable in
Dollars.

                  SECTION 2.9. REGISTERED SECURITIES; GLOBAL FORM.

                  The Notes shall be issuable and transferable in fully
registered form as Registered Securities, without coupons. The Notes shall be
issued in the form of one or more permanent Global Securities. The depository
for the Notes shall be The Depository Trust Company. The Notes shall not be
issuable in definitive form except as provided in Section 305 of the Senior
Indenture.

                  SECTION 2.10. FORM OF NOTES.

                  The Notes shall be substantially in the form attached as
Exhibit A hereto.

                  SECTION 2.11. REGISTRAR AND PAYING AGENT.

                  The Trustee shall initially serve as Security Registrar and
Paying Agent for the Notes.

                  SECTION 2.12. DEFEASANCE.

                   The provisions of Sections 1402 and 1403 of the Senior
Indenture, together with the other provisions of Article Fourteen of the Senior
Indenture, shall be applicable to the Notes. The provisions of Section 1403 of
the Senior Indenture shall apply to the covenants set forth in Sections 2.4 and
2.13 of this Supplemental Indenture and to those covenants specified in Section
1403 of the Senior Indenture.

                  SECTION 2.13. PROVISION OF FINANCIAL INFORMATION.

                  Whether or not the Partnership is subject to Section 13 or
15(d) of the Exchange Act, the Partnership will, to the extent permitted under
the Exchange Act, file with the Commission the annual reports, quarterly reports
and other documents which the Partnership would have been required to file with
the Commission pursuant to such Section 13 or 15(d) if the Partnership were so
subject, such documents to be filed with the Commission on or prior to the
respective dates (the "Required Filing Dates") by which the Partnership would
have been required so to file such documents if the Partnership were so subject.

                  The Partnership will also in any event (x) within 15 days of
each Required Filing Date (i) if the Partnership is not then subject to Section
13 or 15(d) of the Exchange Act, transmit by mail to all Holders, as their names
and addresses appear in the Security Register, without cost to such Holders,
copies of the annual reports and quarterly reports which the Partnership would
have been required to file with the Commission pursuant to Section 13 or 15(d)
of the Exchange

                                       8
<PAGE>

Act if the Partnership were subject to such Sections, and (ii) file with the
Trustee copies of annual reports, quarterly reports and other documents which
the Partnership would have been required to file with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act if the Partnership were subject to such
Sections and (y) if filing such documents by the Partnership with the Commission
is not permitted under the Exchange Act, promptly upon written request and
payment of the reasonable cost of duplication and delivery, supply copies of
such documents to any prospective Holder.

                  SECTION 2.14. WAIVER OF CERTAIN COVENANTS.

                  Notwithstanding the provisions of Section 1010 of the Senior
Indenture, the Partnership may omit in any particular instance to comply with
any term, provision or condition set forth in Sections 1004 to 1007, inclusive,
of the Senior Indenture, with Sections 2.4 and 2.13 of this Supplemental
Indenture and with any other term, provision or condition with respect to the
Notes or either series thereof (except any such term, provision or condition
which could not be amended without the consent of all Holders of the Notes or
such series thereof, as applicable), if before or after the time for such
compliance the Holders of at least a majority in principal amount of all
outstanding Notes or such series thereof, as applicable, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such covenant or condition. Except to the extent so expressly waived, and until
such waiver shall become effective, the obligations of the Partnership and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

                                 ARTICLE THREE

                            MISCELLANEOUS PROVISIONS

                  SECTION 3.1. RATIFICATION OF SENIOR INDENTURE

                  Except as expressly modified or amended hereby, the Senior
Indenture continues in full force and effect and is in all respects confirmed
and preserved.

                  SECTION 3.2. GOVERNING LAW.

                  This Supplemental Indenture and each Note shall be governed by
and construed in accordance with the laws of the State of New York. This
Supplemental Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and shall, to the extent applicable, be governed by such
provisions.

                  SECTION 3.3. COUNTERPARTS.

                  This Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.

                                       9
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed by their respective officers hereunto
duly authorized, all as of the day and year first written above.

                                            GABLES REALTY LIMITED
                                            PARTNERSHIP

                                            By:   Gables GP, Inc.,
                                                  its general partner

                                            By:  /s/ Marvin R. Banks, Jr.
                                                 ------------------------
                                                  Marvin Banks, Jr.
                                                  Chief Financial Officer

                                            FIRST UNION NATIONAL BANK,
                                            as Trustee

                                            By: /s/ Teresita Glasgow
                                                ------------------------
                                                  Name:     Teresita Glasgow
                                                  Title:    Vice President

                                       10
<PAGE>

                                    EXHIBIT A

                             FORM OF SENIOR SECURITY

                               [Face of Security]

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

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING SET FORTH IN THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A NOMINEE OF
DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A
NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC
OR ITS NOMINEE TO A SUCCESSOR DEPOSITORY OR ITS NOMINEE.

                        GABLES REALTY LIMITED PARTNERSHIP

                           7.25% Senior Notes Due 2006

Register No. 1                                                  Principal Amount

CUSIP No. 362415 AD 3                                               $150,000,000

GABLES REALTY LIMITED PARTNERSHIP, a Delaware limited partnership (herein
referred to as the "Partnership", which term includes any successor entity under
the Indenture referred to on the reverse hereof), for value received, hereby
promises to pay to Cede & Co. or registered assigns the principal sum of
$150,000,000 Dollars on February 15, 2006 (the "Stated Maturity Date") or
earlier at the option of the Partnership (the "Redemption Date", and together
with the Stated Maturity Date with respect to principal repayable on such date,
the "Maturity Date") and to pay interest thereon from February 22, 2001 or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on February 15 and August 15 in each year (each, an
"Interest Payment Date"), commencing August 15, 2001, at the rate of 7.25% per
annum, until the principal hereof is paid or duly provided for. 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 Holder 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,

                                       A-1
<PAGE>

which shall be January 31 or July 31 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date at the office or agency
of the Partnership maintained for such purpose; PROVIDED, HOWEVER, that such
interest may be paid, at the Partnership's option, by mailing a check to such
Holder at its registered address or by wire transfer of funds to an account
maintained by such Holder within the United States. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date, and may be paid to the Holder 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 Trustee, notice whereof shall be given to Holders of
Securities of this series 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 of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Indenture. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

The principal of this Security payable on the Stated Maturity Date or the
principal of, Make-Whole Amount, if any, and, if the Redemption Date is not an
Interest Payment Date, interest on this Security payable on the Redemption Date
will be paid against presentation of this Security at the office or agency of
the Partnership maintained for that purpose in the City of Atlanta, Georgia
(which initially shall be an office or agency of the Trustee), in such coin or
currency of the United States of America as at the time of payment is legal
tender for the payment of public and private debts.

Interest payable on this Security on any Interest Payment Date and on the Stated
Maturity Date or Redemption Date, as the case may be, will include interest
accrued from and including the next preceding Interest Payment Date in respect
of which interest has been paid or duly provided for (or from and including
February 22, 2001, if no interest has been paid on this Security) to but
excluding such Interest Payment Date or the Stated Maturity Date or Redemption
Date, as the case may be. If any Interest Payment Date or the Stated Maturity
Date or Redemption Date falls on a day that is not a Business Day, as defined
below, principal, Make-Whole Amount, if any, and/or interest payable with
respect to such Interest Payment Date or Stated Maturity or Redemption Date, as
the case may be, will be paid on the next succeeding Business Day with the same
force and effect as if it were paid on the date such payment was due, and no
interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date or Stated Maturity Date or Redemption Date, as the
case may be. "Business Day" means any day, other than a Saturday or Sunday, that
is neither a legal holiday nor a day on which banking institutions in the City
of New York are authorized by law, regulation or executive order to close.

All payments of principal, Make-Whole Amount, if any, and interest in respect of
this Security will be made by the Partnership in immediately available funds.

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.

Pursuant to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Partnership has caused "CUSIP" numbers to be
printed on the

                                      A-2
<PAGE>

Securities of this series as a convenience to the Holders of such Securities. No
representation is made as to the correctness or accuracy of such CUSIP numbers
as printed on the Securities, and reliance may be placed only on the other
identification numbers printed hereon.

Unless the Certificate of Authentication hereon has been executed by the Trustee
by manual signature of one of its authorized signatories, this Security shall
not be entitled to any benefit under the Indenture, or be valid or obligatory
for any purpose.

                                      A-3
<PAGE>

IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly
executed under the facsimile corporate seal of its general partner.

Dated:                                   GABLES REALTY LIMITED
                                         PARTNERSHIP

                                         By:   Gables GP, Inc.,
                                               its general partner

                                         By:   __________________________
                                               Marvin R. Banks, Jr.
                                               Chief Financial Officer

Attest:  ______________________________
         Name:
         Title:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION:

         This is one of Securities of the series designated therein referred to
in the within-mentioned Indenture.

                                          FIRST UNION NATIONAL BANK,
                                          as Trustee

                                          By:   _________________________
                                                Name:
                                                Title:

                                      A-4
<PAGE>

                              [Reverse of Security]

                        GABLES REALTY LIMITED PARTNERSHIP

This Security is one of a duly authorized issue of securities of the Partnership
(herein called the "Securities"), issued and to be issued in one or more series
under an Indenture, dated as of March 23, 1998, as supplemented by Supplemental
Indenture No. 1, dated as of March 23, 1998, Supplemental Indenture No. 2, dated
as of September 30, 1998, Supplemental Indenture No. 3, dated as of October 8,
1998, and Supplemental Indenture No. 4, dated as of February 22, 2001 (as so
supplemented, herein called the "Indenture") between the Partnership and First
Union National Bank, as Trustee (herein called the "Trustee", which term
includes any successor trustee under the Indenture with respect to the series of
which this Security is a part), 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
Partnership, the Trustee and the Holders of the Securities, and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the duly authorized series of Securities designated on the
face hereof (collectively, the "Securities"), and the aggregate principal amount
of the Securities to be issued under such series as limited to $150,000,000
(except for Securities authenticated and delivered upon transfer of, or in
exchange for, or in lieu of other Securities). All capitalized terms used in
this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

If an Event of Default with respect to the Securities, as defined in the
Indenture, shall occur and be continuing, the principal of the Securities of
this series may be declared due and payable in the manner and with the effect
provided in the Indenture.

The Securities are subject to redemption at any time, as a whole or in part, at
the election of the Partnership, at a Redemption Price equal to the sum of (i)
the principal amount of the Securities being redeemed plus accrued interest
thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with
respect to such Securities.

Notice of redemption will be given by mail to Holders of Securities, not less
than 30 nor more than 60 days prior to the Redemption Date, all as provided in
the Indenture.

The Indenture contains provisions for defeasance at any time of (a) the entire
indebtedness of the Partnership on this Security and (b) certain restrictive
covenants and the related defaults and Events of Default applicable to the
Partnership, in each case, upon compliance by the Partnership with certain
conditions set forth in the Indenture, which provisions apply to this Security.

In the event of redemption of this Security in part only, a new Security or
Securities for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Partnership and the rights of the Holders of the Securities under the Indenture
at any time by the Partnership and the Trustee with the consent

                                      A-5
<PAGE>

of the Holders of not less than a majority of the aggregate principal amount of
all Securities issued under the Indenture at the time Outstanding and affected
thereby. The Indenture also contains provisions permitting the Holders of not
less than a majority of the aggregate principal amount of the Outstanding
Securities, on behalf of the Holders of all such Securities, to waive compliance
by the Partnership with certain provisions of the Indenture. Furthermore,
provisions in the Indenture permit the Holders of not less than a majority of
the aggregate principal amount, in certain instances, of the Outstanding
Securities of any series to waive, on behalf of all of the Holders of Securities
of such series, certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and other Securities issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

No reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Partnership, which is
absolute and unconditional, to pay the principal of (and Make-Whole Amount, if
any) and interest on this Security at the times, places and rate, and in the
coin or currency, herein prescribed.

As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Security Register of
the Partnership upon surrender of this Security for registration of transfer at
the office or agency of the Partnership in any place where the principal of (and
Make-Whole Amount, if any) and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Partnership and the Security Registrar duly executed by, the
Holder hereof or by his attorney duly authorized in writing, and thereupon one
or more new Securities, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

As provided in the Indenture and subject to certain limitations therein set
forth, this Security is exchangeable for a like aggregate principal amount of
Securities of different authorized denominations but otherwise having the same
terms and conditions, as requested by the Holder hereof surrendering the same.

The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof.

No service charge shall be made for any such registration of transfer or
exchange, but the Partnership may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

Prior to due presentment of this Security for registration of transfer, the
Partnership, the Trustee and any agent of the Partnership or the Trustee may
treat the Person in whose name this Security is registered as the owner hereof
for all purposes, whether or not this Security be overdue, and neither the
Partnership, the Trustee nor any such agent shall be affected by notice to the
contrary.

Notwithstanding anything contained herein to the contrary, no recourse under or
upon any obligation, covenant or agreement contained in the Indenture or in this
Security, or because of

                                      A-6
<PAGE>

any indebtedness evidenced hereby or thereby, or for any claim based thereon or
otherwise in respect hereof, shall be had for the payment of the principal of or
Make-Whole Amount, if any, or the interest on this Security, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against (i) the Company or any
other past, present or future partner in the Partnership, (ii) against any other
Person which owns an interest, directly or indirectly, in any partner of the
Partnership or (iii) against any past, present or future stockholder, employee,
officer or director, as such, of the Company, or of any successor, either
directly or through the Partnership or the Company or any successor, under any
rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

The Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made
and to be performed entirely in such State.

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

                   FOR VALUE RECEIVED, the undersigned hereby

                        sells, assigns and transfers unto

PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE

------------------------------------------
                                                .............................
------------------------------------------

 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . . . . . .
              (Please Print or Typewrite Name and Address including
                              Zip Code of Assignee)

 . . . . . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the within Security of Gables Realty Limited Partnership and hereby does
irrevocably constitute and appoint

 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . .Attorney
to transfer said Security on the books of the within-named Partnership with full
power of substitution in the premises.

Dated: . . . . .  . . . . . . . . .                  ...........................

                                                 . . . . . . . . . . . . . . . .
NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.

                                      A-8

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