Document:

Exhibit 4.5

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of June 28, 2002

                                      Among

                         KRONOS INTERNATIONAL, INC.,

                                   as Issuer,

                                       and

                           DEUTSCHE BANK AG LONDON,

                       DRESDNER BANK AG LONDON BRANCH,

                                       and

                Commerzbank Aktiengesellschaft, London Branch,

                              as Initial Purchasers

                      8 7/8% Senior Secured Notes due 2009

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                                TABLE OF CONTENTS

                                                                            Page

1.    Definitions..........................................................1

2.    Exchange Offer.......................................................5

3.    Shelf Registration...................................................9

4.    Additional Interest.................................................10

5.    Registration Procedures.............................................12

6.    Registration Expenses...............................................22

7.    Indemnification and Contribution....................................23

8.    Rules 144 and 144A..................................................27

9.    Underwritten Registrations..........................................27

10.   Miscellaneous.......................................................28

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                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "Agreement") is dated as of
June 28, 2002, among KRONOS  INTERNATIONAL,  INC., a corporation organized under
the laws of Delaware (the "Issuer"),  and DEUTSCHE BANK AG LONDON, DRESDNER BANK
AG LONDON BRANCH and Commerzbank  Aktiengesellschaft,  London Branch, as initial
purchasers (collectively, the "Initial Purchasers").

            This  Agreement  is entered  into in  connection  with the  Purchase
Agreement by and among the Issuer and the Initial  Purchasers,  dated as of June
19, 2002 (the "Purchase Agreement"), which provides for, among other things, the
sale by the Issuer to the Initial  Purchasers  of (euro)  285,000,000  aggregate
principal  amount of the  Issuer's  8 7/8%  Senior  Secured  Notes due 2009 (the
"Securities").  In order to induce  the  Initial  Purchasers  to enter  into the
Purchase Agreement, the Issuer has agreed to provide the registration rights set
forth in this  Agreement  for the  benefit  of the  Initial  Purchasers  and any
subsequent  holder or holders of the  Securities.  The execution and delivery of
this Agreement is a condition to the Initial Purchasers'  obligation to purchase
the Securities under the Purchase Agreement.

            The parties hereby agree as follows:

1.    Definitions

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

            Additional Interest:  See Section 4(a) hereof.

            Advice:  See the last paragraph of Section 5 hereof.

            Agreement:  See the introductory paragraphs hereto.

            Applicable Period:  See Section 2(b) hereof.

            Business Day:  Any day that is not a Saturday, Sunday or a day on
which banking institutions in New York or Texas are authorized or required by
law to be closed.

            Effectiveness   Date:   With  respect  to  (i)  the  Exchange  Offer
Registration  Statement,  the 270th day after the Issue  Date and (ii) any Shelf
Registration  Statement,  the  270th  day after  the  Filing  Date with  respect
thereto; provided,  however, that if the Effectiveness Date would otherwise fall
on a day that is not a Business  Day, then the  Effectiveness  Date shall be the
next succeeding Business Day.

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                                      -2-

            Effectiveness Period:  See Section 3(a) hereof.

            Event Date:  See Section 4 hereof.

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

            Exchange Offer:  See Section 2(a) hereof.

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

            Exchange Securities:  See Section 2(a) hereof.

            Filing Date: (A) If no Registration  Statement has been filed by the
Issuer pursuant to this  Agreement,  the 120th day after the Issue Date; and (B)
in any other case (which may be applicable  notwithstanding  the consummation of
the  Exchange  Offer),  the 120th day after the  delivery  of a Shelf  Notice as
required pursuant to Section 2(c) hereof; provided,  however, that if the Filing
Date would  otherwise  fall on a day that is not a Business Day, then the Filing
Date shall be the next succeeding Business Day.

            Holder:  Any holder of a Registrable Security or Registrable
Securities.

            Indenture:  The  Indenture,  dated as of June 28, 2002, by and among
the  Issuer  and The  Bank of New  York,  as  Trustee,  pursuant  to  which  the
Securities  are being issued,  as amended or  supplemented  from time to time in
accordance with the terms thereof.

            Information:  See Section 5(o) hereof.

            Initial Purchasers:  See the introductory paragraphs hereto.

            Inspectors:  See Section 5(o) hereof.

            Issue Date:  June 28, 2002, the date of original issuance of the
Securities.

            Issuer:  See the introductory paragraphs hereto.

            NASD:  See Section 5(s) hereof.

            Participant:  See Section 7(a) hereof.

            Participating Broker-Dealer:  See Section 2(b) hereof.

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            Person: An individual,  trustee, corporation,  partnership,  limited
liability  company,  joint stock  company,  trust,  unincorporated  association,
union, business association, firm or other legal entity.

            Private Exchange:  See Section 2(b) hereof.

            Private Exchange Securities:  See Section 2(b) hereof.

            Prospectus:  The prospectus  included in any Registration  Statement
(including,  without  limitation,  any  prospectus  subject to completion  and a
prospectus  that includes any information  previously  omitted from a prospectus
filed as part of an effective  registration statement in reliance upon Rule 430A
under the Securities Act and any term sheet filed pursuant to Rule 434 under the
Securities  Act), as amended or supplemented by any prospectus  supplement,  and
all other amendments and supplements to the Prospectus, including post-effective
amendments,  and  all  material  incorporated  by  reference  or  deemed  to  be
incorporated by reference in such Prospectus.

            Purchase Agreement:  See the introductory paragraphs hereof.

            Records:  See Section 5(o) hereof.

            Registrable Securities: Each Security upon its original issuance and
at all times  subsequent  thereto,  each  Exchange  Security as to which Section
2(c)(iv) hereof is applicable upon original issuance and at all times subsequent
thereto and each Private Exchange Security upon original issuance thereof and at
all times subsequent thereto,  until, in each case, the earliest to occur of (i)
a Registration  Statement (other than, with respect to any Exchange  Security as
to which Section 2(c)(iv) hereof is applicable,  the Exchange Offer Registration
Statement)  covering  such  Security,  Exchange  Security  or  Private  Exchange
Security  has been  declared  effective by the SEC and such  Security,  Exchange
Security  or such  Private  Exchange  Security,  as the  case  may be,  has been
disposed of in accordance with such effective Registration Statement,  (ii) such
Security  has been  exchanged  pursuant  to the  Exchange  Offer for an Exchange
Security or Exchange  Securities  that may be resold without  restriction  under
state and federal  securities  laws, (iii) such Security,  Exchange  Security or
Private  Exchange  Security,  as the case may be, ceases to be  outstanding  for
purposes of the Indenture or (iv) such  Security,  Exchange  Security or Private
Exchange  Security,  as the  case  may be,  may be  resold  without  restriction
pursuant to Rule 144(k) (as amended or replaced) under the Securities Act.

            Registration  Statement:  Any  registration  statement of the Issuer
that  covers any of the  Securities,  the  Exchange  Securities  or the  Private
Exchange  Securities filed with the SEC under the Securities Act,  including the
Prospectus, amendments and supplements to such registration statement, including

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post-effective  amendments,  all  exhibits,  and all  material  incorporated  by
reference  or  deemed  to be  incorporated  by  reference  in such  registration
statement.

            Rule 144:  Rule 144 under the Securities Act.

            Rule 144A:  Rule 144A under the Securities Act.

            Rule 405:  Rule 405 under the Securities Act.

            Rule 415:  Rule 415 under the Securities Act.

            Rule 424:  Rule 424 under the Securities Act.

            SEC:  The U.S. Securities and Exchange Commission.

            Securities:  See the introductory paragraphs hereto.

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

            Shelf Notice:  See Section 2(c) hereof.

            Shelf Registration:  See Section 3(a) hereof.

            Shelf Registration Statement:  Any Registration Statement
relating to a Shelf Registration.

            Suspension Period.  See Section 3(a) hereof.

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

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

            Underwritten  registration or underwritten  offering: A registration
in which  securities of the Issuer are sold to an underwriter  for reoffering to
the public.

            Except as otherwise  specifically  provided,  all references in this
Agreement  to  acts,  laws,  statutes,  rules,  regulations,   releases,  forms,
no-action letters and other regulatory requirements  (collectively,  "Regulatory
Requirements")  shall be deemed to refer also to any amendments  thereto and all
subsequent  Regulatory  Requirements  adopted as a  replacement  thereto  having
substantially  the same effect  therewith;  provided  that Rule 144 shall not be
deemed to amend or replace Rule 144A.

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                                      -5-

2.    Exchange Offer

      (a)  Unless  the  Exchange  Offer  would  violate  applicable  law  or any
applicable  interpretation  of the staff of the SEC,  the Issuer shall file with
the SEC, no later than the Filing Date, a Registration  Statement (the "Exchange
Offer Registration  Statement") on an appropriate registration form with respect
to a  registered  offer (the  "Exchange  Offer") to exchange  any and all of the
Registrable Securities (other than the Private Exchange Securities,  if any) for
a like  aggregate  principal  amount  of  debt  securities  of the  Issuer  (the
"Exchange Securities") that are substantially identical in all material respects
to the  Securities,  except that (i) the Exchange  Securities  shall  contain no
restrictive  legend  thereon,  (ii)  the  Exchange  Securities  and the  Private
Exchange  Securities  shall not contain  provisions for the Additional  Interest
contemplated  in Section 4 hereof and (iii)  interest  thereon shall accrue from
(A) the later of (x) the last interest  payment date on which  interest was paid
on the Securities surrendered in exchange therefor, or (y) if the Securities are
surrendered  for exchange on a date in a period  which  includes the record date
for an interest  payment date to occur on or after the date of such exchange and
as to which  interest will be paid,  the date of such interest  payment date, or
(B) if no interest has been paid on such  Securities,  from the Issue Date.  The
Exchange Securities and the Private Exchange Securities shall be entitled to the
benefits  of the  Indenture  or a trust  indenture  which  is  identical  in all
material  respects to the Indenture (other than such changes to the Indenture or
any such identical  trust indenture as are necessary to comply with the TIA) and
which,  in either case, has been qualified under the TIA, or is exempt from such
qualification.  The Indenture or such trust indenture shall provide that (i) the
Exchange Securities shall not be subject to the transfer  restrictions set forth
therein but that the Private  Exchange  Securities  shall be subject thereto and
(ii) the Exchange Securities, the Private Exchange Securities and the Securities
shall vote and consent together on all matters as one class and that none of the
Exchange  Securities,  the Private  Exchange  Securities or the Securities shall
have the  right to vote or  consent  as a  separate  class  on any  matter.  The
Exchange Offer shall comply in all material  respects with all applicable tender
offer rules and regulations  under the Exchange Act and other  applicable  laws.
The  Issuer  shall  use  its  best  efforts  to (x)  cause  the  Exchange  Offer
Registration  Statement to be declared  effective under the Securities Act on or
before the Effectiveness  Date; (y) keep the Exchange Offer open for at least 30
days (or longer if required by applicable law) after the date that notice of the
Exchange Offer is mailed to Holders; and (z) consummate the Exchange Offer on or
prior to the 300th day following the Issue Date.

      Each   Holder   (including,   without   limitation,   each   Participating
Broker-Dealer)  who  participates  in the Exchange Offer will be required,  as a
condition to its participation in the Exchange Offer, to represent to the Issuer
in writing  (which may be contained  in the  applicable  letter of  transmittal)
that:  (i)  any  Exchange   Securities  acquired  in  exchange  for  Registrable
Securities tendered are being acquired in the ordinary course of business of the

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Person receiving such Exchange Securities, whether or not such recipient is such
Holder itself;  (ii) at the time of the  commencement of the Exchange Offer such
Holder  does  not have an  arrangement  or  understanding  with  any  Person  to
participate in the  distribution  (within the meaning of the Securities  Act) of
the Exchange  Securities in violation of the provisions of the  Securities  Act;
(iii) such Holder is not an  "affiliate"  (as defined in Rule 405) of the Issuer
or, if it is an  affiliate of the Issuer,  it will comply with the  registration
and  prospectus  delivery  requirements  of the  Securities  Act  to the  extent
applicable and will provide information to be included in the Shelf Registration
Statement in  accordance  with Section 5 hereof in order to have its  Securities
included in the Shelf  Registration  Statement  and benefit from the  provisions
regarding  Additional Interest in Section 4 hereof; (iv) if such Holder is not a
broker-dealer, such Holder is not engaging in and does not intend to engage in a
distribution  of  the  Exchange  Securities;   and  (v)  if  such  Holder  is  a
Participating Broker-Dealer, such Holder has acquired the Registrable Securities
as a result of market-making  activities or other trading activities and that it
will comply with the applicable provisions of the Securities Act (including, but
not limited to, the prospectus delivery requirements thereunder);  and (vi) such
Holder is not  acting on  behalf  of a Person  who could not make the  foregoing
representations.

      Upon consummation of the Exchange Offer in accordance with this Section 2,
the provisions of this  Agreement  shall  continue to apply,  mutatis  mutandis,
solely  with  respect  to  Registrable  Securities  that  are  Private  Exchange
Securities,  Exchange  Securities as to which Section 2(c)(iv) is applicable and
Exchange Securities held by Participating  Broker-Dealers,  and the Issuer shall
have no further  obligation  to  register  Registrable  Securities  (other  than
Private Exchange  Securities and Exchange Securities as to which clause 2(c)(iv)
hereof applies) pursuant to Section 3 hereof.

      No securities other than the Exchange  Securities shall be included in the
Exchange Offer Registration Statement.

      (b) The Issuer  shall  include  within  the  Prospectus  contained  in the
Exchange Offer Registration Statement a section entitled "Plan of Distribution,"
reasonably  acceptable to the Initial Purchasers,  which shall contain a summary
statement of the  positions  taken or policies made by the staff of the SEC with
respect to the potential  "underwriter"  status of any broker-dealer that is the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Securities   received  by  such   broker-dealer   in  the   Exchange   Offer  (a
"Participating  Broker-Dealer"),  whether such  positions or policies  have been
publicly  disseminated  by the staff of the SEC or such  positions  or  policies
represent  the  prevailing  views  of  the  staff  of the  SEC.  Such  "Plan  of
Distribution"  section shall also expressly  permit,  to the extent permitted by
applicable policies and regulations of the SEC, the use of the Prospectus by all
Persons subject to the prospectus  delivery  requirements of the Securities Act,
including, to the extent permitted by applicable policies and regulations of the

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                                      -7-

SEC, all Participating  Broker-Dealers,  and include a statement  describing the
means by which  Participating  Broker-Dealers may resell the Exchange Securities
in compliance with the Securities Act.

      The  Issuer  shall  use its  best  efforts  to  keep  the  Exchange  Offer
Registration  Statement  effective and to amend and  supplement  the  Prospectus
contained therein in order to permit such Prospectus to be lawfully delivered by
all Persons  subject to the prospectus  delivery  requirements of the Securities
Act for such period of time as is  necessary  to comply with  applicable  law in
connection with any resale of the Exchange Securities;  provided,  however, that
such period  shall not be  required  to exceed 90 days or such longer  period if
extended  pursuant to the last  paragraph  of Section 5 hereof (the  "Applicable
Period").

      If, prior to consummation of the Exchange  Offer,  the Initial  Purchasers
hold any Securities acquired by them that have the status of an unsold allotment
in the  initial  distribution,  the  Issuer  upon  the  request  of the  Initial
Purchasers  shall  simultaneously  with the delivery of the Exchange  Securities
issue  and  deliver  to  the  Initial  Purchasers,  in  exchange  (the  "Private
Exchange") for such Securities held by any such Holder,  a like principal amount
of  securities  (the  "Private  Exchange  Securities")  of the  Issuer  that are
identical in all material  respects to the Exchange  Securities,  except for the
placement of a  restrictive  legend on such  Private  Exchange  Securities.  The
Private  Exchange  Securities  shall be issued pursuant to the same indenture as
the  Exchange  Securities  and the Issuer shall use its best efforts to have the
Private  Exchange  Securities  bear  the  same  CUSIP  number  as  the  Exchange
Securities.  The Issuer shall not have any liability under this Agreement solely
as a result of the Private Exchange Securities not bearing the same CUSIP number
as the Exchange Securities.

      In connection with the Exchange Offer, the Issuer shall:

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

(2)   use their best efforts to keep the  Exchange  Offer open for not less than
      30  calendar  days  after the date that  notice of the  Exchange  Offer is
      mailed to Holders (or longer if required by applicable law);

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

(4)   permit  Holders to withdraw  tendered  Registrable  Securities at any time
      prior to 5:00 p.m.,  New York time,  on the last Business Day on which the
      Exchange Offer remains open by sending to the institution specified in the

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                                      -8-

      notice,  a telegram,  facsimile  transmission  or letter setting forth the
      name of such  Holder,  the  principal  amount  of  Registrable  Securities
      delivered for exchange and a statement that the Holder is withdrawing such
      Holder's  election to have such Registrable  Securities or portion thereof
      exchanged; and

(5)   otherwise comply in all material  respects with all applicable laws, rules
      and regulations relating to the Exchange Offer.

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

(1)   accept for exchange all Registrable  Securities  validly  tendered and not
      validly withdrawn pursuant to the Exchange Offer and the Private Exchange,
      if any in  accordance  with the terms of the Exchange  Offer  Registration
      Statement and the related letter of transmittal;

(2)   deliver to the Trustee for cancellation all Registrable Securities so
      accepted for exchange; and

(3)   cause the Trustee to authenticate  and deliver  promptly to each Holder of
      Securities,  Exchange  Securities or Private Exchange  Securities,  as the
      case may be, equal in principal  amount to the  Registrable  Securities of
      such Holder so accepted for  exchange;  provided  that, in the case of any
      Registrable Securities held in global form by a depositary, authentication
      and delivery to such depositary of one or more  replacement  Securities in
      global form in an equivalent  principal  amount thereto for the account of
      such  Holders  in  accordance   with  the  Indenture  shall  satisfy  such
      authentication and delivery requirement.

            The Exchange Offer and the Private  Exchange shall not be subject to
any conditions,  other than that (i) the Exchange Offer or Private Exchange,  as
the case may be or the  making of any  exchange  by a Holder,  does not  violate
applicable  law or any applicable  interpretation  of the staff of the SEC; (ii)
the valid  tendering of Registrable  Securities in accordance  with the Exchange
Offer and the Private  Exchange;  (iii) no action or proceeding  shall have been
instituted or threatened in any court or by any  governmental  agency which,  in
the Issuer's  reasonable  judgment,  might materially  impair the ability of the
Issuer to  proceed  with the  Exchange  Offer or the  Private  Exchange,  and no
material  adverse  development  shall have  occurred in any  existing  action or
proceeding with respect to the Issuer; and (iv) all governmental approvals shall
have  been  obtained,  which  approvals  the  Issuer  deems  necessary  for  the
consummation of the Exchange Offer or Private Exchange.

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            (c) If, (i) because of any change in law or in currently  prevailing
interpretations  of the staff of the SEC, the Issuer is not  permitted to effect
the Exchange Offer,  (ii) the Exchange Offer is not consummated  within 300 days
of the Issue  Date,  (iii)  the  Initial  Purchasers  or any  Holder of  Private
Exchange  Securities  so requests in writing to the Issuer at any time within 90
days after the  consummation  of the  Exchange  Offer or (iv) in the case of any
Holder that  participates  in the Exchange  Offer,  such Holder does not receive
Exchange  Securities  on the  date of the  exchange  that  may be  sold  without
restriction  under state and federal  securities  laws (other than due solely to
the status of such Holder as an  affiliate  of the Issuer  within the meaning of
the Securities  Act) and so notifies the Issuer within 30 days after such Holder
first becomes aware of such restrictions,  in the case of each of clauses (i) to
and including (iv) of this sentence,  then the Issuer shall promptly  deliver to
the Holders and the Trustee  written  notice  thereof  (the "Shelf  Notice") and
shall file a Shelf Registration pursuant to Section 3 hereof.

3.    Shelf Registration

            If at any  time a Shelf  Notice  is  delivered  as  contemplated  by
Section 2(c) hereof, then:

            (a) Shelf  Registration.  The Issuer  shall use its best  efforts to
      file with the SEC a Registration Statement for an offering to be made on a
      continuous  basis  pursuant to Rule 415  covering  all of the  Registrable
      Securities (the "Shelf Registration") on or prior to the applicable Filing
      Date. The Shelf Registration  shall be on Form S-1 or another  appropriate
      form permitting  registration of such Registrable Securities for resale by
      Holders  participating in the Shelf  Registration in the manner or manners
      designated  by  them   (including,   without   limitation,   one  or  more
      underwritten offerings).  The Issuer shall not permit any securities other
      than the Registrable Securities to be included in the Shelf Registration.

            The  Issuer   shall  use  its  best   efforts  to  cause  the  Shelf
      Registration to be declared effective under the Securities Act on or prior
      to the Effectiveness Date and to keep the Shelf Registration  continuously
      effective  under the  Securities Act until the date that is two years from
      the  Issue  Date  or such  shorter  period  ending  when  all  Registrable
      Securities  covered by the Shelf Registration have been sold in the manner
      set forth and as  contemplated  in the Shelf  Registration  or cease to be
      outstanding or otherwise to be Registrable  Securities (the "Effectiveness
      Period");  provided,  however, that the Effectiveness Period in respect of
      the Shelf  Registration shall be extended to the extent required to permit
      dealers to comply with the applicable  prospectus delivery requirements of
      Rule 174 under the  Securities  Act and as otherwise  provided  herein and
      shall be subject to reduction to the extent that the applicable provisions
      of Rule  144(k) are  amended  or  revised  to reduce the two year  holding

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                                      -10-

      period set forth therein; provided,  further, that the foregoing shall not
      apply to actions taken by the Issuer in good faith and for valid  business
      reasons  (not  including   avoidance  of  their  obligations   hereunder),
      including,  without limitation,  the acquisition or divestiture of assets,
      so  long as the  Issuer  within  90  days  thereafter  complies  with  the
      requirements  of Section  5(u)  hereof.  Any such period  during which the
      Issuer fails to keep the Shelf Registration Statement effective and usable
      for offers and sales of the Registrable  Securities or Exchange Securities
      is  referred  to as a  "Suspension  Period."  A  Suspension  Period  shall
      commence  on and include  the date that the Issuer  gives  notice that the
      Shelf  Registration  Statement is no longer  effective  or the  prospectus
      included  therein is no longer usable for offers and sales of  Registrable
      Securities  and  Exchange  Securities  and shall end on the date when each
      Holder of Registrable  Securities and Exchange  Securities covered by such
      registration  statement  either receives the copies of the supplemented or
      amended  prospectus  contemplated  by Section 5(u) hereof or is advised in
      writing by the Issuer that use of the prospectus may be resumed. If one or
      more Suspension  Periods occur, the two-year period referenced above shall
      be  extended  by the  aggregate  of the  number of days  included  in each
      Suspension Period.

            (b) Withdrawal of Stop Orders. If the Shelf  Registration  ceases to
      be effective  for any reason at any time during the  Effectiveness  Period
      (other  than  because  of the  sale  of all of the  Securities  registered
      thereunder or pursuant to the second  proviso of the first sentence of the
      second  paragraph of Section 3(a)),  the Issuer shall use its best efforts
      to obtain the prompt  withdrawal of any order suspending the effectiveness
      thereof,  and in any  event  shall  within  30 days of such  cessation  of
      effectiveness  amend  such  Shelf  Registration  Statement  in a manner to
      obtain the withdrawal of the order suspending the effectiveness thereof.

            (c) Supplements and Amendments. The Issuer shall promptly supplement
      and amend the Shelf Registration if required by the rules,  regulations or
      instructions  applicable  to the  registration  form  used for such  Shelf
      Registration,  if  required  by  the  Securities  Act,  or  if  reasonably
      requested  by the Holders of a majority in aggregate  principal  amount of
      the Registrable Securities (or their counsel) covered by such Registration
      Statement with respect to the information included therein with respect to
      one or more of such Holders,  or by any  underwriter  of such  Registrable
      Securities with respect to the information  included  therein with respect
      to such underwriter.

            4. Additional Interest

            (a) The Issuer and the  Initial  Purchasers  agree that the  Holders
will suffer damages if the Issuer fails to fulfill its obligations under Section
2 or Section 3 hereof and that it would not be feasible to ascertain  the extent
of such  damages  with  precision.  Accordingly,  the  Issuer  agrees  to pay as
liquidated   damages,   additional   interest  on  the  Registrable   Securities

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                                      -11-

("Additional  Interest")  under the  circumstances  and to the  extent set forth
below (each of which shall be given independent effect):

      (i) if (A) neither  the  Exchange  Offer  Registration  Statement  nor the
      Initial Shelf  Registration  has been filed on or prior to the Filing Date
      applicable thereto or (B) notwithstanding  that the Issuer has consummated
      or will  consummate the Exchange  Offer,  the Issuer is required to file a
      Shelf Registration and such Shelf Registration is not filed on or prior to
      the Filing Date applicable thereto,  then, commencing on the day after any
      such Filing Date, Additional Interest shall accrue on the principal amount
      of the  Registrable  Securities at a rate of 0.25% per annum for the first
      90 days  immediately  following  such  applicable  Filing  Date,  and such
      Additional  Interest rate shall increase by an additional  0.25% per annum
      at the beginning of each subsequent 90-day period; or

      (ii) if (A) neither the  Exchange  Offer  Registration  Statement  nor the
      Initial Shelf Registration is declared effective by the SEC on or prior to
      the Effectiveness Date applicable thereto or (B) notwithstanding  that the
      Issuer has consummated or will  consummate the Exchange Offer,  the Issuer
      is required to file a Shelf  Registration  and such Shelf  Registration is
      not declared  effective by the SEC on or prior to the  Effectiveness  Date
      applicable to such Shelf Registration,  then,  commencing on the day after
      such Effectiveness Date, Additional Interest shall accrue on the principal
      amount  of the  Securities  at a rate of 0.25%  per annum for the first 90
      days immediately following the day after such Effectiveness Date, and such
      Additional  Interest rate shall increase by an additional  0.25% per annum
      at the beginning of each subsequent 90-day period; or

      (iii) if (A) the  Issuer has not  exchanged  Exchange  Securities  for all
      Securities  validly  tendered in accordance with the terms of the Exchange
      Offer  on or  prior  to the  300th  day  after  the  Issue  Date or (B) if
      applicable,  a Shelf  Registration  has been  declared  effective and such
      Shelf  Registration  ceases  to  be  effective  at  any  time  during  the
      Effectiveness  Period  (other  than  because  of  the  sale  of all of the
      Securities registered  thereunder),  then Additional Interest shall accrue
      on the principal  amount of the Registrable  Securities at a rate of 0.25%
      per annum for the first 90 days  commencing on the (x) 300th day after the
      Issue  Date,  in the  case  of  (A)  above,  or (y)  the  day  such  Shelf
      Registration ceases to be effective (other than because of the sale of all
      of the Securities  registered  thereunder),  in the case of (B) above, and
      such  Additional  Interest rate shall increase by an additional  0.25% per
      annum at the beginning of each such subsequent 90-day period;

provided,  however,  that the Additional Interest rate on the Securities may not
accrue under more than one of the foregoing  clauses (i) - (iii) at any one time
and at no time shall the aggregate amount of additional interest accruing exceed

<PAGE>
                                      -12-

in the aggregate 0.75% per annum; provided,  further, however, that (1) upon the
filing of the Exchange Offer Registration Statement or the Shelf Registration as
required hereunder (in the case of clause (i) above of this Section 4), (2) upon
the  effectiveness  of the Exchange  Offer  Registration  Statement or the Shelf
Registration Statement as required hereunder (in the case of clause (ii) of this
Section  4) or  (3)  upon  the  exchange  of the  Exchange  Securities  for  all
Securities  tendered (in the case of clause (iii)(A) of this Section 4), or upon
the  effectiveness  of the applicable  Shelf  Registration  Statement  which had
ceased  to  remain  effective  (in the  case of  (iii)(B)  of this  Section  4),
Additional  Interest on the Securities in respect of which such events relate as
a result of such clause (or the relevant subclause thereof), as the case may be,
shall cease to accrue.

            (b) The Issuer  shall  notify the Trustee  within one  Business  Day
after  each  and  every  date on  which  an event  occurs  in  respect  of which
Additional  Interest is required  to be paid (an "Event  Date").  Any amounts of
Additional Interest due pursuant to (a)(i),  (a)(ii) or (a)(iii) of this Section
4 will be payable in cash  semiannually  on each June 30 and December 30 (to the
holders of record on June 15 and December 30 immediately  preceding such dates),
commencing with the first such date occurring after any such Additional Interest
commences to accrue.  The amount of  Additional  Interest  will be determined by
multiplying the applicable  Additional  Interest rate by the principal amount of
the Registrable Securities,  multiplied by a fraction, the numerator of which is
the number of days such  Additional  Interest  rate was  applicable  during such
period  (determined  on the basis of a 360 day year  comprised  of twelve 30 day
months and, in the case of a partial month,  the actual number of days elapsed),
and the denominator of which is 360.

5.    Registration Procedures

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

            (a)  Prepare  and file with the SEC prior to the  applicable  Filing
      Date a Registration Statement or Registration  Statements as prescribed by
      Section  2 or 3  hereof,  and use its  best  efforts  to cause  each  such
      Registration  Statement  to  become  effective  and  remain  effective  as
      provided herein; provided, however, that if (1) such filing is pursuant to
      Section 3 hereof  or (2) a  Prospectus  contained  in the  Exchange  Offer
      Registration  Statement  filed pursuant to Section 2 hereof is required to
      be delivered under the Securities Act by any  Participating  Broker-Dealer

<PAGE>
                                      -13-

      who  seeks  to sell  Exchange  Securities  during  the  Applicable  Period
      relating  thereto from whom the Issuer has received written notice that it
      will be a Participating Broker-Dealer in the Exchange Offer, before filing
      any Registration  Statement or Prospectus or any amendments or supplements
      thereto,  the  Issuer  shall  furnish  to and  afford  the  Holders of the
      Registrable  Securities  covered  by  such  Registration  Statement  (with
      respect to a Registration Statement filed pursuant to Section 3 hereof) or
      each  such   Participating   Broker-Dealer   (with  respect  to  any  such
      Registration  Statement),  as the  case  may  be,  their  counsel  and the
      managing  underwriters,  if any, a reasonable opportunity to review copies
      of  all  such  documents   (including   copies  of  any  documents  to  be
      incorporated by reference therein and all exhibits thereto) proposed to be
      filed (in each case at least five business days prior to such filing). The
      Issuer  shall not file any  Registration  Statement or  Prospectus  or any
      amendments  or  supplements  thereto  if  the  Holders  of a  majority  in
      aggregate  principal amount of the Registrable  Securities covered by such
      Registration  Statement,  their counsel, or the managing underwriters,  if
      any, shall reasonably object on a timely basis.

            (b) Prepare and file with the SEC such amendments and post-effective
      amendments  to  each  Shelf  Registration   Statement  or  Exchange  Offer
      Registration  Statement,  as the case may be, as may be  necessary to keep
      such Registration  Statement  continuously effective for the Effectiveness
      Period, the Applicable Period or until consummation of the Exchange Offer,
      as the case may be; cause the related Prospectus to be supplemented by any
      Prospectus  supplement  required by applicable law, and as so supplemented
      to be filed pursuant to Rule 424; and comply in all material respects with
      the provisions of the Securities Act and the Exchange Act applicable to it
      with  respect  to  the  disposition  of all  securities  covered  by  such
      Registration  Statement  as  so  amended  or  in  such  Prospectus  as  so
      supplemented  and with respect to the subsequent  resale of any securities
      being  sold  by  a  Participating   Broker-Dealer   covered  by  any  such
      Prospectus.  The Issuer  shall be deemed not to have used its best efforts
      to keep a Registration Statement effective if the Issuer voluntarily takes
      any  action  that  would  result in  selling  Holders  of the  Registrable
      Securities covered thereby or Participating Broker-Dealers seeking to sell
      Exchange Securities not being able to sell such Registrable  Securities or
      such Exchange Securities during that period unless such action is required
      by applicable law, pursuant to the second proviso of the first sentence of
      the second paragraph of Section 3(a) or permitted by this Agreement.

            (c) If (1) a Shelf  Registration  is filed  pursuant  to  Section  3
      hereof, or (2) a Prospectus  contained in the Exchange Offer  Registration
      Statement  filed  pursuant to Section 2 hereof is required to be delivered
      under the Securities Act by any  Participating  Broker-Dealer who seeks to
      sell Exchange  Securities  during the Applicable  Period relating  thereto
      from  whom  the  Issuer  has  received  written  notice  that it will be a
      Participating  Broker-Dealer  in the  Exchange  Offer,  notify the selling
      Holders  of  Registrable   Securities  (with  respect  to  a  Registration
      Statement filed pursuant to Section 3 hereof),  or each such Participating

<PAGE>
                                      -14-

      Broker-Dealer  (with respect to any such Registration  Statement),  as the
      case may be, their counsel and the managing underwriters, if any, promptly
      (but in any event  within two Business  Days),  and confirm such notice in
      writing,   (i)  when  a  Prospectus  or  any   Prospectus   supplement  or
      post-effective   amendment  has  been  filed,   and,  with  respect  to  a
      Registration Statement or any post-effective  amendment, when the same has
      become  effective under the Securities Act and, upon request,  at the sole
      expense of the Issuer,  provide one  conformed  copy of such  Registration
      Statement or post-effective  amendment including financial  statements and
      schedules,   documents  incorporated  or  deemed  to  be  incorporated  by
      reference and exhibits), (ii) of the issuance by the SEC of any stop order
      suspending the  effectiveness of a Registration  Statement or of any order
      preventing  or  suspending  the use of any  preliminary  Prospectus or the
      initiation of any proceedings for that purpose,  (iii) if at any time when
      a  Prospectus  is  required  by  the  Securities  Act to be  delivered  in
      connection with sales of the Registrable Securities or resales of Exchange
      Securities  by  Participating   Broker-Dealers  the   representations  and
      warranties  of the  Issuer  contained  in  any  agreement  (including  any
      underwriting  agreement)  contemplated  by Section 5(n) hereof cease to be
      true and  correct  in any  material  respect,  (iv) of the  receipt by the
      Issuer  of  any  notification  with  respect  to  the  suspension  of  the
      qualification or exemption from qualification of a Registration  Statement
      or any of the Registrable Securities or the Exchange Securities to be sold
      by any Participating  Broker-Dealer for offer or sale in any jurisdiction,
      or the  initiation or written  threat of any  proceeding for such purpose,
      (v) of the  happening of any event,  the existence of any condition or any
      information   becoming  known  that  makes  any  statement  made  in  such
      Registration  Statement or related Prospectus or any document incorporated
      or deemed to be incorporated  therein by reference  untrue in any material
      respect or that  requires  the making of any changes in or  amendments  or
      supplements  to such  Registration  Statement,  Prospectus or documents so
      that, in the case of the Registration  Statement,  it will not contain any
      untrue  statement of a material  fact or omit to state any  material  fact
      required to be stated therein or necessary to make the statements  therein
      not  misleading,  and  that in the  case of the  Prospectus,  it will  not
      contain  any  untrue  statement  of a  material  fact or omit to state any
      material  fact  required  to be stated  therein or  necessary  to make the
      statements  therein,  in the light of the  circumstances  under which they
      were made, not misleading,  and (vi) of the Issuer's  determination that a
      post-effective amendment to a Registration Statement would be appropriate.

            (d) Use its best  efforts  to  prevent  the  issuance  of any  order
      suspending the  effectiveness of a Registration  Statement or of any order
      preventing  or  suspending  the  use of a  Prospectus  or  suspending  the
      qualification (or exemption from  qualification) of any of the Registrable
      Securities  or the  Exchange  Securities  to be sold by any  Participating
      Broker-Dealer,  for sale in any  jurisdiction,  and,  if any such order is

<PAGE>
                                      -15-

      issued, to use its best efforts to obtain the withdrawal of any such order
      at the earliest practicable moment.

            (e) If a Shelf  Registration  is filed  pursuant to Section 3 and if
      requested during the Effectiveness  Period by the managing  underwriter or
      underwriters  (if any),  the Holders of a majority in aggregate  principal
      amount of the  Registrable  Securities  being sold in  connection  with an
      underwritten offering or any Participating Broker-Dealer,  (i) as promptly
      as practicable  incorporate in a Prospectus  supplement or  post-effective
      amendment such information as the managing underwriter or underwriters (if
      any), such Holders, any Participating  Broker-Dealer or counsel for any of
      them determine is reasonably  necessary to be included therein  concerning
      themselves,  (ii) make all required filings of such Prospectus  supplement
      or such  post-effective  amendment as soon as practicable after the Issuer
      has  received  notification  of the  matters  to be  incorporated  in such
      Prospectus supplement or post-effective  amendment, and (iii) if required,
      supplement or make amendments to such Registration Statement.

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

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

<PAGE>
                                      -16-

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

            (h) Prior to any public  offering of  Registrable  Securities or any
      delivery of a  Prospectus  contained in the  Exchange  Offer  Registration
      Statement by any  Participating  Broker-Dealer  who seeks to sell Exchange
      Securities during the Applicable  Period, use its best efforts to register
      or  qualify,  and to  cooperate  with the selling  Holders of  Registrable
      Securities or each such Participating  Broker-Dealer,  as the case may be,
      the managing  underwriter or  underwriters,  if any, and their  respective
      counsel in connection with the registration or qualification (or exemption
      from such registration or  qualification)  of such Registrable  Securities
      for  offer  and  sale  under  the  securities  or  Blue  Sky  laws of such
      jurisdictions   within  the   United   States  as  any   selling   Holder,
      Participating  Broker-Dealer,  or the managing underwriter or underwriters
      reasonably  request in writing;  provided,  however,  that where  Exchange
      Securities held by Participating  Broker-Dealers or Registrable Securities
      are offered other than through an underwritten offering, the Issuer agrees
      to  cause  its  counsel  to  perform  Blue  Sky  investigations  and  file
      registrations  and  qualifications  required to be filed  pursuant to this
      Section 5(h), keep each such  registration or qualification  (or exemption
      therefrom)  effective  during the period such  Registration  Statement  is
      required  to be kept  effective  and do any and all  other  acts or things
      necessary or advisable to enable the disposition in such  jurisdictions of
      the  Exchange  Securities  held  by  Participating  Broker-Dealers  or the
      Registrable Securities covered by the applicable  Registration  Statement;
      provided,  however,  that the Issuer  shall not be required to (A) qualify
      generally  to do  business  in any  jurisdiction  where  it is not then so
      qualified, (B) take any action that would subject it to general service of
      process  in any such  jurisdiction  where it is not then so subject or (C)
      subject itself to taxation in any such  jurisdiction  where it is not then
      so subject.

            (i) If a Shelf  Registration  is filed pursuant to Section 3 hereof,
      cooperate  with the  selling  Holders of  Registrable  Securities  and the
      managing  underwriter  or  underwriters,  if any, to facilitate the timely
      preparation   and  delivery  of  certificates   representing   Registrable
      Securities to be sold, which  certificates  shall not bear any restrictive
      legends and shall be in a form  eligible for deposit  with The  Depository
      Trust  Company;  and  enable  such  Registrable  Securities  to be in such
      denominations  (subject  to  applicable   requirements  contained  in  the

<PAGE>
                                      -17-

      Indenture)  and  registered in such names as the managing  underwriter  or
      underwriters,  if any, or Holders may request at least two  Business  Days
      prior to such sale.

            (j) Use its best efforts to cause the Registrable Securities covered
      by the  Registration  Statement to be registered  with or approved by such
      other  governmental  agencies or authorities as may be necessary to enable
      the seller or sellers thereof or the underwriter or underwriters,  if any,
      to consummate the disposition of such  Registrable  Securities,  provided,
      however, that the Issuer shall not be required to (A) qualify generally to
      do business,  in any jurisdiction  where it is not then so qualified,  (B)
      take any action that would subject it to general service of process in any
      such jurisdiction where it is not then so subject or (C) subject itself to
      taxation in any such jurisdiction where it is not then so subject.

            (k) If (1) a Shelf  Registration  is filed  pursuant  to  Section  3
      hereof, or (2) a Prospectus  contained in the Exchange Offer  Registration
      Statement  filed  pursuant to Section 2 hereof is required to be delivered
      under the Securities Act by any  Participating  Broker-Dealer who seeks to
      sell Exchange Securities during the Applicable Period, upon the occurrence
      of any event  contemplated  by paragraph  5(c)(v) or 5(c)(vi)  hereof,  as
      promptly as practicable  prepare and (subject to Section 5(a) hereof) file
      with  the  SEC,  at the  sole  expense  of the  Issuer,  a  supplement  or
      post-effective  amendment to the Registration Statement or a supplement to
      the  related  Prospectus  or any  document  incorporated  or  deemed to be
      incorporated therein by reference,  or file any other required document so
      that,  as  thereafter  delivered  to the  purchasers  of  the  Registrable
      Securities being sold thereunder (with respect to a Registration Statement
      filed  pursuant to Section 3 hereof) or to the  purchasers of the Exchange
      Securities to whom such  Prospectus  will be delivered by a  Participating
      Broker-Dealer (with respect to any such Registration Statement),  any such
      Prospectus will not contain an untrue statement of a material fact or omit
      to state a material  fact  required to be stated  therein or  necessary to
      make the statements therein, in the light of the circumstances under which
      they were made, not misleading.

            (l) Use its best efforts to cause the Registrable Securities covered
      by a Registration  Statement or the Exchange  Securities,  as the case may
      be, to be rated with the appropriate  rating agencies,  if so requested by
      the Holders of a majority in  aggregate  principal  amount of  Registrable
      Securities  covered  by  such  Registration   Statement  or  the  Exchange
      Securities,   as  the  case  may  be,  or  the  managing   underwriter  or
      underwriters, if any.

            (m) Prior to the effective date of the first Registration  Statement
      relating to the  Registrable  Securities,  (i)  provide  the Trustee  with

<PAGE>
                                      -18-

      certificates for the Registrable Securities in a form eligible for deposit
      with The Depository  Trust Company and (ii) provide a CUSIP number for the
      Registrable Securities.

            (n) In  connection  with any  underwritten  offering of  Registrable
      Securities  pursuant to a Shelf  Registration,  enter into an underwriting
      agreement  as is customary in  underwritten  offerings of debt  securities
      similar  to the  Securities,  and  take  all  such  other  actions  as are
      reasonably  requested by the managing underwriter or underwriters in order
      to expedite or facilitate  the  registration  or the  disposition  of such
      Registrable   Securities   and,   in  such   connection,   (i)  make  such
      representations  and warranties to, and covenants  with, the  underwriters
      with  respect  to the  business  of the  Issuer  (including  any  acquired
      business,  properties  or entity,  if  applicable),  and the  Registration
      Statement,  Prospectus and documents, if any, incorporated or deemed to be
      incorporated by reference  therein,  in each case, as are customarily made
      by issuers to underwriters  in  underwritten  offerings of debt securities
      similar to the  Securities,  and  confirm  the same in writing if and when
      requested;  (ii) obtain the written opinions of counsel to the Issuer, and
      written updates thereof in customary form, scope and substance  reasonably
      satisfactory to the managing underwriter or underwriters  addressed to the
      underwriters   covering  the  matters   customarily  covered  in  opinions
      reasonably requested in underwritten  offerings of debt securities similar
      to the Securities; (iii) obtain "cold comfort" letters and updates thereof
      in customary  form,  scope and substance  reasonably  satisfactory  to the
      managing underwriter or underwriters from the independent certified public
      accountants  of the  Issuer  (and,  if  necessary,  any other  independent
      certified public accountants of the Issuer, or of any business acquired by
      the Issuer, for which financial  statements and financial data are, or are
      required to be, included or incorporated by reference in the  Registration
      Statement),  addressed to each of the underwriters,  such letters to be in
      customary  form and covering  matters of the type  customarily  covered in
      "cold comfort" letters in connection with  underwritten  offerings of debt
      securities  similar  to  the  Securities;  and  (iv)  if  an  underwriting
      agreement  is  entered  into,  the  same  shall  contain   indemnification
      provisions and  procedures no less favorable to the parties,  if any, than
      those  set  forth in  Section  7  hereof  (or such  other  provisions  and
      procedures  reasonably  acceptable  to Holders of a majority in  aggregate
      principal amount of Registrable  Securities  covered by such  Registration
      Statement and the managing underwriter or underwriters or agents, if any).
      The above shall be done at each closing under such underwriting agreement,
      or as and to the extent required thereunder.

            (o) If (1) a Shelf  Registration  is filed  pursuant  to  Section  3
      hereof, or (2) a Prospectus  contained in the Exchange Offer  Registration
      Statement  filed  pursuant to Section 2 hereof is required to be delivered
      under the Securities Act by any  Participating  Broker-Dealer who seeks to

<PAGE>
                                      -19-

      sell Exchange  Securities during the Applicable Period, make available for
      inspection  by  any  Initial   Purchaser,   any  selling  Holder  of  such
      Registrable   Securities  being  sold  (with  respect  to  a  Registration
      Statement filed pursuant to Section 3 hereof),  or each such Participating
      Broker-Dealer,  as the case may be, any underwriter  participating  in any
      such  disposition  of  Registrable  Securities,  if any, and any attorney,
      accountant or other agent retained by any such selling Holder or each such
      Participating   Broker-Dealer  (with  respect  to  any  such  Registration
      Statement),  as  the  case  may  be,  or  underwriter  (any  such  Initial
      Purchasers,    Holders,   Participating   Broker-Dealers,    underwriters,
      attorneys,  accountants or agents, collectively,  the "Inspectors"),  upon
      written  request,  at the offices where normally kept,  during  reasonable
      business  hours,  all  pertinent  financial and other  records,  pertinent
      corporate  documents and instruments of the Issuer and subsidiaries of the
      Issuer (collectively,  the "Records"), as shall be reasonably necessary to
      enable them to exercise any applicable due diligence responsibilities, and
      cause the  officers,  directors and employees of the Issuer and any of its
      subsidiaries   to  supply  all  information   ("Information")   reasonably
      requested by any such  Inspector  in  connection  with such due  diligence
      responsibilities.  Each Inspector shall agree in writing that it will keep
      the Records and Information confidential and that it will not disclose any
      of the Records or Information that the Issuer  determines,  in good faith,
      to be confidential and notifies the Inspectors are confidential unless (i)
      the Issuer based upon advice of counsel  determines that the disclosure of
      such  Records or  Information  is necessary to avoid or correct a material
      misstatement  or  material  omission  in such  Registration  Statement  or
      Prospectus,  (ii) the release of such  Records or  Information  is ordered
      pursuant  to  a  subpoena  or  other  order  from  a  court  of  competent
      jurisdiction,  (iii)  disclosure of such Records or Information is ordered
      by any court or regulatory  agency in connection  with any action,  claim,
      suit or  proceeding,  directly or  indirectly,  involving  or  potentially
      involving such  Inspector and arising out of, based upon,  relating to, or
      involving this Agreement or the Purchase  Agreement,  or any  transactions
      contemplated hereby or thereby or arising hereunder or thereunder, or (iv)
      the  information  in such Records or  Information  has been made generally
      available to the public other than by an Inspector or an  "affiliate"  (as
      defined in Rule 405) thereof;  provided,  however, that prior notice shall
      be  provided  as  soon  as  practicable  to the  Issuer  of the  potential
      disclosure of any information by such Inspector pursuant to clauses (i) or
      (ii) of this  sentence to permit the Issuer to obtain a  protective  order
      (or waive the  provisions of this  paragraph  (o)) and that such Inspector
      shall  take such  actions  as are  reasonably  necessary  to  protect  the
      confidentiality  of such  information (if  practicable) to the extent such
      action  is  otherwise  not  inconsistent  with,  an  impairment  of  or in
      derogation of the rights and interests of the Holder or any Inspector. The
      Inspectors will agree that all  information  obtained by it as a result of
      such  inspection  is  confidential  and shall be used as the basis for any
      market  transactions  in the  securities  of the Issuer or its  affiliates
      unless and until  such  information  is made  generally  available  to the
      public.

<PAGE>
                                      -20-

            (p) Provide an indenture  trustee for the Registrable  Securities or
      the Exchange  Securities,  as the case may be, and cause the  Indenture or
      the trust indenture  provided for in Section 2(a) hereof,  as the case may
      be, to be qualified under the TIA not later than the effective date of the
      first Registration Statement relating to the Registrable  Securities;  and
      in  connection  therewith,  cooperate  with  the  trustee  under  any such
      indenture and the Holders of the  Registrable  Securities,  to effect such
      changes (if any) to such  indenture as may be required for such  indenture
      to be so qualified in  accordance  with the terms of the TIA; and execute,
      and use its best efforts to cause such trustee to execute,  all  documents
      as may be  required  to  effect  such  changes,  and all  other  forms and
      documents required to be filed with the SEC to enable such indenture to be
      so qualified in a timely manner.

            (q) Comply with all applicable  rules and regulations of the SEC and
      make  generally  available  to  its  securityholders  with  regard  to any
      applicable  Registration  Statement,  a  consolidated  earnings  statement
      satisfying  the provisions of Section 11(a) of the Securities Act and Rule
      158 thereunder (or any similar rule promulgated  under the Securities Act)
      no later  than 45 days  after the end of any  fiscal  quarter  (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  underwriters  in a firm commitment or best efforts
      underwritten  offering  and  (ii) if not sold to  underwriters  in such an
      offering,  commencing on the first day of the first fiscal  quarter of the
      Issuer,  after  the  effective  date of a  Registration  Statement,  which
      statements shall cover said 12-month periods.

            (r) Upon  consummation of the Exchange Offer or a Private  Exchange,
      obtain an  opinion  of  counsel to the  Issuer,  in a form  customary  for
      underwritten transactions, addressed to the Trustee for the benefit of all
      Holders of Registrable  Securities  participating in the Exchange Offer or
      the Private Exchange,  as the case may be, that the Exchange Securities or
      Private Exchange Securities, as the case may be, and the related indenture
      constitute legal, valid and binding obligations of the Issuer, enforceable
      against the Issuer in accordance with their respective  terms,  subject to
      customary  exceptions  and  qualifications.  If the  Exchange  Offer  or a
      Private  Exchange is to be  consummated,  upon delivery of the Registrable
      Securities  by Holders to the Issuer (or to such other  Person as directed
      by the Issuer),  in exchange for the  Exchange  Securities  or the Private
      Exchange  Securities,  as the case may be, the Issuer shall mark, or cause
      to be  marked,  on  such  Registrable  Securities  that  such  Registrable
      Securities are being  canceled in exchange for the Exchange  Securities or
      the  Private  Exchange  Securities,  as the case may be; in no event shall
      such Registrable Securities be marked as paid or otherwise satisfied.

<PAGE>
                                      -21-

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

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

            (u) If any  Suspension  Period  remains in effect  more than 90 days
      after the occurrence  thereof,  the Issuer will promptly  prepare and file
      with  the  Commission  a  post-effective  amendment  to  the  Registration
      Statement  or a  supplement  to the related  prospectus  or file any other
      required  document so that, as  thereafter  delivered to purchasers of the
      Exchange  Securities or Private  Exchange  Securities  from a Holder,  the
      prospectus will not include an untrue statement of a material fact or omit
      to state a  material  fact  necessary  in  order  to make  the  statements
      therein, in the light of the circumstances under which they were made, not
      misleading.

            The Issuer may require each seller of  Registrable  Securities as to
which  any  registration  is  being  effected  to  furnish  to the  Issuer  such
information  regarding  such  seller and the  distribution  of such  Registrable
Securities as the Issuer may, from time to time, reasonably request . The Issuer
may exclude from such  registration  the  Registrable  Securities  of any seller
which fails to furnish such information within a reasonable time after receiving
such request and in such event shall have no further  obligations under Sections
2 or 3 of this  Agreement  with respect to such seller.  Each seller as to which
any Shelf  Registration  is being  effected  agrees to furnish  promptly  to the
Issuer all  information  required to be disclosed  in order that the  Prospectus
related thereto shall not contain,  with respect to such seller or such seller's
disposition of such  Registrable  Securities,  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  misleading in light of the  circumstances  then
existing.

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

<PAGE>
                                      -22-

similar  federal  statute then in force,  the deletion of the  reference to such
Holder in any  amendment or supplement to the  Registration  Statement  filed or
prepared subsequent to the time that such reference ceases to be required.

            Each  Holder  of  Registrable   Securities  and  each  Participating
Broker-Dealer  agrees  by its  acquisition  of such  Registrable  Securities  or
Exchange Securities to be sold by such Participating Broker-Dealer,  as the case
may be, that, upon actual receipt of any notice from the Issuer of the happening
of any event of the kind described in Section 5(c)(ii),  5(c)(iv),  5(c)(v),  or
5(c)(vi)  hereof,  such Holder will  forthwith  discontinue  disposition of such
Registrable  Securities covered by such Registration  Statement or Prospectus or
Exchange Securities to be sold by such Holder or Participating Broker-Dealer, as
the case may be, until such Holder's or Participating Broker-Dealer's receipt of
the copies of the  supplemented  or amended  Prospectus  contemplated by Section
5(k) hereof, or until it is advised in writing (the "Advice") by the Issuer that
the use of the applicable  Prospectus may be resumed, and has received copies of
any amendments or supplements  thereto.  In the event that the Issuer shall give
any such notice,  each of the  Applicable  Period and the  Effectiveness  Period
shall be extended by the number of days during such periods  from and  including
the date of the giving of such notice to and including the date when each seller
of Registrable  Securities  covered by such  Registration  Statement or Exchange
Securities to be sold by such Participating  Broker-Dealer,  as the case may be,
shall have  received (x) the copies of the  supplemented  or amended  Prospectus
contemplated by Section 5(k) hereof or (y) the Advice.

            6. Registration Expenses

            All fees and expenses  incident to the  performance of or compliance
with this  Agreement by the Issuer shall be borne by the Issuer,  whether or not
the Exchange Offer Registration Statement or any Shelf Registration Statement is
filed or becomes  effective or the  Exchange  Offer is  consummated,  including,
without  limitation,  (i) all registration  and filing fees (including,  without
limitation,  (A) fees with respect to filings  required to be made with the NASD
in  connection  with an  underwritten  offering  and (B)  fees and  expenses  of
compliance  with  state  and  foreign  securities  or Blue Sky laws  (including,
without  limitation,  reasonable fees and disbursements of counsel in connection
with  Blue  Sky  qualifications  of  the  Registrable   Securities  or  Exchange
Securities and determination of the eligibility of the Registrable Securities or
Exchange  Securities for  investment  under the laws of such  jurisdictions  (x)
where the holders of  Registrable  Securities  are  located,  in the case of the
Exchange  Securities,  or (y) as provided in Section 5(h) hereof, in the case of
Registrable  Securities  or Exchange  Securities  to be sold by a  Participating
Broker-Dealer during the Applicable Period)), (ii) printing expenses, including,
without limitation, expenses of printing certificates for Registrable Securities
or Exchange  Securities in a form eligible for deposit with The Depository Trust
Company  and  of  printing  prospectuses  if the  printing  of  prospectuses  is
requested by the managing underwriter or underwriters, if any, by the Holders of
a majority in aggregate principal amount of the Registrable  Securities included

<PAGE>
                                      -23-

in any  Registration  Statement  or in  respect  of  Registrable  Securities  or
Exchange  Securities to be sold by any  Participating  Broker-Dealer  during the
Applicable Period, as the case may be, (iii) reasonable messenger, telephone and
delivery expenses relating to preparation of documents  referenced herein,  (iv)
fees and  disbursements  of counsel  for the Issuer  and, in the case of a Shelf
Registration,  reasonable fees and  disbursements of one special counsel for all
of the sellers of  Registrable  Securities  (exclusive  of any counsel  retained
pursuant to Section 7 hereof), which counsel shall be reasonably satisfactory to
the Issuer,  (v) fees and  disbursements  of all  independent  certified  public
accountants  referred  to  in  Section  5(n)(iii)  hereof  (including,   without
limitation,  the expenses of any "cold comfort"  letters required by or incident
to such  performance),  (vi) Securities Act liability  insurance,  if the Issuer
desires such insurance, (vii) fees and expenses of all other Persons retained by
the  Issuer,  (viii)  internal  expenses  of  the  Issuer  (including,   without
limitation,  all salaries  and expenses of officers and  employees of the Issuer
performing  legal or accounting  duties),  (ix) the expense of any annual audit,
(x) any fees and  expenses  incurred  in  connection  with  the  listing  of the
securities to be registered on any securities  exchange,  and the obtaining of a
rating of the  securities,  in each case, if  applicable,  and (xi) the expenses
relating  to  printing,   word  processing  and  distributing  all  Registration
Statements,   underwriting  agreements,   indentures  and  any  other  documents
necessary in order to comply with this Agreement. Notwithstanding the foregoing,
the Holders shall pay all agency fees and commissions and underwriting discounts
and commissions  attributable to the sale of Registrable Securities and the fees
and  disbursements  of any counsel or other advisors or experts retained by such
Holders  (severally or jointly),  other than the counsel and experts referred to
above.

            7.  Indemnification  and  Contribution.  (a) The  Issuer  agrees  to
indemnify  and hold  harmless  each  Holder of  Registrable  Securities  offered
pursuant to a Shelf Registration Statement and each Participating  Broker-Dealer
selling Exchange  Securities during the Applicable  Period,  and each Person, if
any, who controls such Person or its affiliates within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act (each, a  "Participant")
against any losses,  claims, damages or liabilities to which any Participant may
become subject under the Act, the Exchange Act or otherwise, insofar as any such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon:

            (i) any untrue statement or alleged untrue statement of any material
      fact contained in any Registration Statement (or any amendment thereto) or
      Prospectus (as amended or  supplemented if the Issuer shall have furnished
      any  amendments  or  supplements   thereto)  or  any  related  preliminary
      Prospectus; or

            (ii) the omission or alleged  omission to state, in any Registration
      Statement  (or  any  amendment  thereto)  or  Prospectus  (as  amended  or
      supplemented  if  the  Issuer  shall  have  furnished  any  amendments  or
      supplements thereto) or any related preliminary Prospectus a material fact

<PAGE>
                                      -24-

      required to be stated therein or necessary to make the statements  therein
      (in the case of a Prospectus,  in light of circumstances  under which they
      were made) not misleading;

and will reimburse, as incurred, the Participant for any legal or other expenses
reasonably  incurred by the  Participant  in connection  with  investigating  or
defending  against  with any such  loss,  claim,  damage,  liability  or action;
provided,  however,  that the Issuer  will not be liable in any such case to the
extent that any such loss, claim, damage, or liability arises out of or is based
upon any untrue  statement  or alleged  untrue  statement or omission or alleged
omission  made in any  Registration  Statement  (or any  amendment  thereto)  or
Prospectus (as amended or supplemented if any of the Issuer shall have furnished
any amendments or supplements thereto) or any related preliminary Prospectus (i)
made in  reliance  upon  and in  conformity  with  information  relating  to any
Participant  furnished  to  the  Issuer  by or on  behalf  of  such  Participant
specifically  for use  therein  or (ii) if such  Participant  sold to the person
asserting the claim the Registrable  Securities or Exchange  Securities that are
the  subject of such claim and such  untrue  statement  or  omission  or alleged
untrue statement or omission was contained or made in any preliminary Prospectus
and corrected in the  Prospectus or any amendment or supplement  thereto and the
Prospectus  does not contain any other  untrue  statement or omission or alleged
untrue  statement or omission of a material fact that was the subject  matter of
the  related  proceeding  and it is  established  by the  Issuer in the  related
proceeding  that such  Participant  failed to  deliver  or provide a copy of the
Prospectus  (as  amended or  supplemented)  to such  Person with or prior to the
confirmation of the sale of such  Registrable  Securities or Exchange Notes sold
to such Person if required by applicable  law, unless such failure to deliver or
provide a copy of the  Prospectus (as amended or  supplemented)  was a result of
noncompliance   by  the  Issuer   with   Section  5  of  this   Agreement.   Any
indemnification  amounts advanced by the Issuer pursuant to this Section 7 shall
as a result of such losses,  claims damages or liabilities  shall be returned to
the  Issuer  if  it  shall  be  finally  determined  by  a  court  of  competent
jurisdiction that such Participant was not entitled to such  indemnification  by
the Issuer.  The indemnity provided for in this Section 7 will be in addition to
any liability that the Issuer may otherwise have to the indemnified parties. The
Issuer shall not be liable under this Section 7 for any  settlement of any claim
or  action  effected  without  its prior  written  consent,  which  shall not be
unreasonably withheld.

            (b) Each Participant, severally and not jointly, agrees to indemnify
and hold harmless the Issuer,  its directors,  its officers and each Person,  if
any, who controls the Issuer within the meaning of Section 15 of the  Securities
Act or Section 20 of the  Exchange  Act against any losses,  claims,  damages or
liabilities  to which the Issuer or any such  director,  officer or  controlling
Person  may  become  subject  under the  Securities  Act,  the  Exchange  Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect  thereof)  arise out of or are based  upon (i) any untrue  statement  or
alleged  untrue  statement of any material  fact  contained in any  Registration

<PAGE>
                                      -25-

Statement or  Prospectus,  any amendment or supplement  thereto,  or any related
preliminary  Prospectus,  or (ii) the omission or the alleged  omission to state
therein a material fact  required to be stated  therein or necessary to make the
statements  therein not misleading,  in each case to the extent, but only to the
extent,  that such untrue  statement or alleged untrue  statement or omission or
alleged  omission  was made in  reliance  upon and in  conformity  with  written
information concerning such Participant, furnished to the Issuer by or on behalf
of the Participant,  specifically for use therein; and subject to the limitation
set forth immediately  preceding this clause, will reimburse,  as incurred,  any
legal or other expenses incurred by the Issuer or any such director,  officer or
controlling  Person in connection with  investigating  or defending  against any
such loss, claim, damage,  liability or action in respect thereof. The indemnity
provided  for in this  Section 7 will be in addition to any  liability  that the
Participants  may otherwise have to the indemnified  parties.  The  Participants
shall not be liable  under  this  Section 7 for any  settlement  of any claim or
action effected without their consent, which shall not be unreasonably withheld.
The Issuer shall not,  without the prior  written  consent of such  Participant,
effect any  settlement or compromise of any pending or threatened  proceeding in
respect of which any  Participant  is or could have been a party,  or  indemnity
could have been sought hereunder by any Participant,  unless such settlement (A)
includes  an  unconditional  written  release of the  Participants,  in form and
substance  reasonably  satisfactory to the  Participants,  from all liability on
claims that are the subject  matter of such  proceeding and (B) does not include
any statement as to an admission of fault,  culpability  or failure to act by or
on behalf of any Participant.

            (c)  Promptly  after  receipt  by an  indemnified  party  under this
Section 7 of notice of the commencement of any action for which such indemnified
party is  entitled to  indemnification  under this  Section 7, such  indemnified
party will, if a claim in respect thereof is to be made against the indemnifying
party under this Section 7, notify the  indemnifying  party of the  commencement
thereof in writing;  but the  omission to so notify the  indemnifying  party (i)
will not relieve it from any liability  under  paragraph (a) or (b) above unless
and to the extent such failure  results in the  forfeiture  by the  indemnifying
party of  substantial  rights  and  defenses  and (ii) will not,  in any  event,
relieve the  indemnifying  party from any obligations to any  indemnified  party
other than the  indemnification  obligation  provided in paragraphs  (a) and (b)
above. In case any such action is brought against any indemnified  party, and it
notifies the indemnifying  party of the commencement  thereof,  the indemnifying
party will be entitled  to  participate  therein  and, to the extent that it may
wish, jointly with any other indemnifying  party similarly  notified,  to assume
the defense thereof,  with counsel  reasonably  satisfactory to such indemnified
party;  provided,  however,  that  if (i)  the  use  of  counsel  chosen  by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the defendants in any such action include both
the indemnified party and the indemnifying party and the indemnified party shall
have been  advised  by  counsel  that  there may be one or more  legal  defenses
available to it and/or other  indemnified  parties  that are  different  from or
additional  to  those  available  to  the  indemnifying   party,  or  (iii)  the

<PAGE>
                                      -26-

indemnifying  party shall not have employed counsel  reasonably  satisfactory to
the  indemnified  party to represent the  indemnified  party within a reasonable
time after receipt by the  indemnifying  party of notice of the  institution  of
such action,  then, in each such case, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such  indemnified  party
or parties and such indemnified  party or parties shall have the right to select
separate  counsel to defend such action on behalf of such  indemnified  party or
parties.  After notice from the indemnifying  party to such indemnified party of
its election so to assume the defense  thereof and approval by such  indemnified
party of counsel  appointed to defend such action,  the indemnifying  party will
not be liable to such  indemnified  party under this  Section 7 for any legal or
other  expenses,  other than  reasonable  costs of  investigation,  subsequently
incurred by such  indemnified  party in  connection  with the  defense  thereof,
unless  (i) the  indemnified  party  shall  have  employed  separate  counsel in
accordance  with the proviso to the  immediately  preceding  sentence  (it being
understood,  however, that in connection with such action the indemnifying party
shall not be liable  for the  expenses  of more than one  separate  counsel  (in
addition  to local  counsel)  in any one action or  separate  but  substantially
similar  actions  in the  same  jurisdiction  arising  out of the  same  general
allegations or circumstances,  designated by Participants who sold a majority in
interest of the Registrable  Securities and Exchange Securities sold by all such
Participants in the case of paragraph (a) of this Section 7 or the Issuer in the
case of paragraph (b) of this Section 7,  representing  the indemnified  parties
under such  paragraph (a) or paragraph  (b), as the case may be, who are parties
to such action or  actions) or (ii) the  indemnifying  party has  authorized  in
writing the  employment of counsel for the  indemnified  party at the expense of
the  indemnifying  party.  All fees and  expenses  reimbursed  pursuant  to this
paragraph (c) shall be  reimbursed as they are incurred.  After such notice from
the indemnifying  party to such indemnified  party, the indemnifying  party will
not be liable  for the costs  and  expenses  of any  settlement  of such  action
effected by such  indemnified  party  without the prior  written  consent of the
indemnifying  party (which consent shall not be unreasonably  withheld),  unless
such  indemnified  party  waived in writing its rights  under this Section 7, in
which case the  indemnified  party may effect  such a  settlement  without  such
consent.

            (d) In circumstances in which the indemnity  agreement  provided for
in the preceding paragraphs of this Section 7 is unavailable to, or insufficient
to hold harmless, an indemnified party in respect of any losses, claims, damages
or liabilities  (or actions in respect  thereof),  each  indemnifying  party, in
order to provide for just and equitable  contribution,  shall  contribute to the
amount  paid or payable by such  indemnified  party as a result of such  losses,
claims,  damages  or  liabilities  (or  actions  in  respect  thereof)  in  such
proportion as is appropriate  to reflect the relative fault of the  indemnifying
party  or  parties  on the one hand and the  indemnified  party on the  other in
connection  with the statements or omissions or alleged  statements or omissions
that  resulted in such losses,  claims,  damages or  liabilities  (or actions in
respect  thereof).  The relative  fault of the parties  shall be  determined  by

<PAGE>
                                      -27-

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  Issuer  on  the  one  hand,  or the
Participants on the other, the parties'  relative intent,  knowledge,  access to
information  and opportunity to correct or prevent such statement or omission or
alleged   statement  or  omission,   and  any  other  equitable   considerations
appropriate  in the  circumstances.  The  parties  agree  that it  would  not be
equitable if the amount of such  contribution were determined by pro rata or per
capita  allocation or by any other method of allocation  that does not take into
account the equitable  considerations  referred to in the first sentence of this
paragraph  (d).  Notwithstanding  any other  provision of this paragraph (d), no
Participant shall be obligated to make contributions  hereunder in excess of the
amount by which proceeds  received by such  Participant  in connection  with the
sale of the  Securities  exceed the amount of any damages that such  Participant
has  otherwise  been  required to pay by reason of the untrue or alleged  untrue
statements or the omissions or alleged  omissions to state a material  fact, and
no person guilty of fraudulent  misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution  from any Person who was not
guilty of such fraudulent misrepresentation. For purposes of this paragraph (d),
each Person, if any, who controls a Participant within the meaning of Section 15
of the  Securities  Act or  Section 20 of the  Exchange  Act shall have the same
rights to  contribution  as the  Participants,  and each director of the Issuer,
each  officer of the Issuer and each  person,  if any,  who  controls the Issuer
within the meaning of Section 15 of the Act or Section 20 of the  Exchange  Act,
shall have the same rights to contribution as the Issuer.

            8. Rules 144 and 144A

            The Issuer  covenants and agrees that, to the extent  required under
the  Exchange  Act, it will  timely 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  in a  timely  manner  in  accordance  with  the
requirements  of the Securities Act and the Exchange Act and, if at any time the
Issuer is not required to file such reports,  the Issuer will,  upon the request
of any  Holder  of  Registrable  Securities,  make  available  such  information
necessary to permit sales pursuant to Rule 144A.  The Issuer  further  covenants
and agrees, for so long as any Registrable Securities remain outstanding that it
will take such  further  action as any  Holder  of  Registrable  Securities  may
reasonably request,  all to the extent required from time to time to enable such
holder to sell Registrable  Securities without registration under the Securities
Act within the  limitation of the  exemptions  provided by Rule 144(k) under the
Securities Act and Rule 144A.

            9. Underwritten Registrations

            If  any  of  the  Registrable   Securities   covered  by  any  Shelf
Registration are to be sold in an underwritten  offering,  the investment banker

<PAGE>
                                      -28-

or investment bankers and manager or managers that will manage the offering will
be selected by the Holders of a majority in aggregate  principal  amount of such
Registrable  Securities  included  in such  offering  and  shall  be  reasonably
acceptable to the Issuer.

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

            10. Miscellaneous

            (a) No Inconsistent  Agreements.  The Issuer has not, as of the date
hereof,  and the Issuer shall not, after the date of this Agreement,  enter into
any agreement with respect to any of its securities  that is  inconsistent  with
the rights granted to the Holders of Registrable Securities in this Agreement or
otherwise  conflicts  with the  provisions  hereof.  The  rights  granted to the
Holders  hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Issuer's  other issued and  outstanding
securities  under  any such  agreements.  The  Issuer  will not  enter  into any
agreement with respect to any of its  securities  which will grant to any Person
piggy-back registration rights with respect to any Registration Statement.

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

            (c) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures from
the  provisions  hereof may not be given,  otherwise than with the prior written
consent of (I) the  Issuer,  and (II)(A) the Holders of not less than a majority
in aggregate principal amount of the then outstanding Registrable Securities and
(B)  in   circumstances   that  would   adversely   affect   the   Participating
Broker-Dealers,  the  Participating  Broker-Dealers  holding  not  less  than  a
majority in aggregate  principal  amount of the Exchange  Securities held by all
Participating Broker-Dealers; provided, however, that Section 7 and this Section
10(c) may not be amended,  modified or  supplemented  without the prior  written
consent  of each  Holder and each  Participating  Broker-Dealer  (including  any
person who was a Holder or Participating Broker-Dealer of Registrable Securities
or  Exchange  Securities,  as the  case  may be,  disposed  of  pursuant  to any
Registration  Statement)  affected  by  any  such  amendment,   modification  or
supplement.  Notwithstanding  the foregoing,  a waiver or consent to depart from

<PAGE>
                                      -29-

the provisions  hereof with respect to a matter that relates  exclusively to the
rights of Holders of  Registrable  Securities  whose  securities  are being sold
pursuant to a  Registration  Statement  and that does not directly or indirectly
affect,  impair,  limit or compromise the rights of other Holders of Registrable
Securities may be given by Holders of at least a majority in aggregate principal
amount of the Registrable  Securities  being sold pursuant to such  Registration
Statement.

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

      (i) if to a Holder  of the  Registrable  Securities  or any  Participating
      Broker-Dealer, at the most current address of such Holder or Participating
      Broker-Dealer,  as the  case  may be,  set  forth  on the  records  of the
      registrar  under the Indenture,  with a copy in like manner to the Initial
      Purchasers as follows:

                  Deutsche Bank AG London
                  Dresdner Bank AG London Branch
                  Commerzbank Aktiengesellschaft, London Branch
                  c/o Deutsche Bank AG London
                  1 Great Winchester Street
                  London EC2N 2DB
                  United Kingdom
                  Facsimile No.:
                  Attention:  Corporate Finance
                  with a copy to:

                  Cahill Gordon & Reindel
                  80 Pine Street
                  New York, New York  10005
                  Facsimile No.:  (212) 269-5420
                  Attention:  William B. Gannett, Esq.

      (ii) if to the Initial  Purchasers,  at the address  specified  in Section
      10(d)(i);

<PAGE>
                                      -30-

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

                  c/o    Kronos International, Inc.
                         16825 North Chase Drive
                         Suite 1200
                         Houston, Texas  77060
                         Facsimile No.: (281) 423-3333
                         Attention:  Robert D. Hardy

                  with a copy to:

                  Locke Liddell & Sapp LLP
                  2200 Ross Avenue
                  Suite 2200
                  Dallas, TX  75201
                  Facsimile No.:  (214) 740-8800
                  Attention:  Don M. Glendenning, Esq.

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

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

            (e)  Successors  and  Assigns.  This  Agreement  shall  inure to the
benefit of and be binding upon the successors and assigns of each of the parties
hereto,  the Holders and the Participating  Broker-Dealers;  provided,  however,
that nothing herein shall be deemed to permit any assignment,  transfer or other
disposition of Registrable  Securities in violation of the terms of the Purchase
Agreement or the Indenture.

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

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

<PAGE>
                                      -31-

            (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,  AS APPLIED TO CONTRACTS
MADE AND  PERFORMED  ENTIRELY  WITHIN THE STATE OF NEW YORK,  WITHOUT  REGARD TO
PRINCIPLES OF CONFLICTS OF LAW THAT WOULD REQUIRE THE  APPLICATION  OF ANY OTHER
LAW.

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

            (j) Securities  Held by the Issuer or its  Affiliates.  Whenever the
consent  or  approval  of  Holders  of a  specified  percentage  of  Registrable
Securities is required hereunder,  Registrable  Securities held by the Issuer or
its affiliates  (as such term is defined in Rule 405 under the  Securities  Act)
shall not be counted in  determining  whether such consent or approval was given
by the Holders of such required percentage.

            (k) Third-Party Beneficiaries. Holders of Registrable Securities and
Participating  Broker-Dealers  are intended  third-party  beneficiaries  of this
Agreement, and this Agreement may be enforced by such Persons.

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

<PAGE>

                                       S-1

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

                                  KRONOS INTERNATIONAL, INC.

                                  By:  /s/ Robert D. Hardy
                                       ----------------------------------
                                       Name: Robert D. Hardy
                                       Title:Vice President and Chief Financial
                                             Officer

<PAGE>

                                       S-2

The  foregoing  Agreement is hereby
confirmed and accepted as of the date
first above written.

DEUTSCHE BANK AG LONDON

By:  /s/ Brian Bassett
     -------------------------------
     Name:     Brian Bassett
     Title:    Director

By:
     -------------------------------
     Name:
     Title:    Managing Director

DRESDNER BANK AG LONDON BRANCH

By:  /s/ M. Aitken
     -------------------------------------
     Name:     M. Aitken
     Title:    Managing Director

By:  /s/ P. Watts
     -------------------------------------
     Name:     P. Watts
     Title:    Managing Director

Commerzbank Aktiengesellschaft, London Branch

By:  /s/ K A West
     -------------------------------------
     Name:     K A West
     Title:

By:  /s/ R. M. Curtis
     -------------------------------
     Name:     R. M. Curtis
     Title:    SyndicateExhibit 4.6

                           COLLATERAL AGENCY AGREEMENT

      COLLATERAL  AGENCY AGREEMENT dated as of June 28, 2002 (this  "Agreement")
among  THE  BANK  OF  NEW  YORK,  a New  York  banking  corporation,  not in its
individual  capacity  but  solely as trustee  under the  Indenture  (as  defined
herein) (the "Trustee),  U.S. Bank,  N.A., as collateral  agent (the "Collateral
Agent"),  and, solely for the purposes of Sections 2, 5, 6 and 8 hereof,  Kronos
International, Inc. (the "Issuer").

                                    RECITALS

      The Issuer and the Trustee have entered into an indenture  dated as of the
date  hereof (as  amended,  amended  and  restated,  supplemented  or  otherwise
modified from time to time,  the  "Indenture")  pursuant to which the Issuer are
issuing  (euro)285,000,000  in aggregate  principal amount at maturity of 8 7/8%
Senior Secured Notes due 2009 (the "Notes"); and

      To secure the  obligations  under the Indenture and the Notes,  the Issuer
has agreed,  among other things, to execute and deliver the following  documents
listed on Exhibit A and any such other  agreements  as may be entered  into from
time to time with respect to the collateral  located in Denmark,  France and the
Federal Republic of Germany (the "Collateral"),  collectively referred to herein
as the ("Collateral Documents"); and

      The Issuer has  selected  and desires  the Trustee to jointly  appoint the
Collateral  Agent,  and the Collateral Agent desires to act, as collateral agent
and/or beneficiary pursuant to the Collateral Documents.

      NOW, THEREFORE, in consideration of the premises, the parties hereto agree
as follows:

SECTION 1.  Definitions.  Capitalized  terms used  herein and not  otherwise
defined herein shall have the meaning given to such terms in the Indenture.

SECTION 2.  APPOINTMENT OF COLLATERAL AGENT:  SUCCESSOR COLLATERAL AGENT.

            (a) The Issuer and the Trustee hereby appoint the Collateral  Agent,
and the Collateral Agent hereby accepts such appointment,  pursuant to the terms
of this Agreement, as collateral agent to act on behalf of the Trustee under the
Indenture  for  the  benefit  of the  Holders,  but  solely  in  respect  of the
Collateral  Documents and the Collateral  covered thereby.  The Collateral Agent
shall be  authorized  to exercise  such rights,  powers and  discretions  as are
reasonably  necessary or incidental to its obligations as Collateral Agent under
this Agreement and as collateral agent and/or  beneficiary  under the Collateral
Documents.

            (b) The Collateral Agent is an independent contractor and shall have
no authority to act for or represent  the Trustee  except as expressly set forth
herein.  Notwithstanding any provision to the contrary elsewhere, the Collateral
Agent shall not have any duties or responsibilities,  except those expressly set
forth in the  Collateral  Documents to which it is a party and those arising out

<PAGE>

of its acceptance and  administration  of this Agreement.  The Collateral  Agent
does not owe  fiduciary  duties to the Trustee or any other person in connection
with the performance  its duties  hereunder.  At the expense of the Issuer,  the
Collateral Agent may retain counsel and other experts, and may rely conclusively
on the  advice  of such  counsel  and other  experts.  The  Collateral  Agent is
entitled to refrain from taking any action hereunder, including, but not limited
to,  beginning  any legal action or proceeding or taking any steps to enforce or
realize upon any security interest created by the Collateral  Documents,  unless
the  Collateral  Agent has received such security or  indemnification  as it may
require  (whether by way of payment in advance or otherwise)  against all costs,
claims, expenses (including legal fees) and liabilities it will or may expend or
incur in taking such action.

            (c) The  Collateral  Agent may resign at any time by giving  written
notice thereof to the Issuer and the Trustee and may be removed any time with or
without cause by written notice by the Issuer. Prior to the effectiveness of any
such  resignation  or  removal,  the  Trustee  shall have the right to appoint a
successor Collateral Agent which shall be a bank or trust company or the foreign
equivalent  thereof  incorporated  under  the  laws of any  member  state of the
European Union or the United States or any political  subdivision thereof having
combined  capital  and  surplus  of at  least  US$50,000,000  or the  equivalent
thereof.  If in respect of the resignation of the Collateral  Agent no successor
Collateral  Agent  shall have been so  appointed  by the  Trustee and shall have
accepted such appointment  within 30 days after the retiring  Collateral Agent's
giving of notice of resignation, then the retiring Collateral Agent shall, prior
to the  effectiveness  of its resignation,  on behalf of the Trustee,  appoint a
successor  Collateral  Agent,  which  shall  be a bank or trust  company  or the
foreign  equivalent  thereof  incorporated under the laws of any member state of
the European  Union or the United  States or any political  subdivision  thereof
having  a  combined  capital  and  surplus  of at  least  US$50,000,000  or  the
equivalent  thereof.  Upon the acceptance of any appointment as Collateral Agent
hereunder by a successor Collateral Agent, such successor Collateral Agent shall
thereupon succeed to and become vested with all the rights,  powers,  privileges
and duties of the retiring  Collateral Agent, and the retiring  Collateral Agent
shall be discharged from its duties and obligations under this Agreement.  After
any retiring  Collateral Agent's  resignation or removal hereunder as Collateral
Agent,  the  provisions of this  Agreement  shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was  Collateral  Agent under
this  Agreement and the Collateral  Documents.  Any  corporation  into which the
Collateral  Agent may be merged,  or with which it may be  consolidated,  or any
corporation  resulting from any merger or  consolidation to which the Collateral
Agent shall be a party,  shall be Collateral Agent under this Agreement  without
the  execution  or  filing of any  paper or any  further  act on the part of the
parties hereto.

            (d) Beyond the exercise of reasonable  care in the custody  thereof,
the  Collateral  Agent shall have no duty as to any Collateral in its possession
or control or in the  possession or control of any agent or bailee or any income
thereon  or as to  preservation  of rights  against  prior  parties or any other
rights pertaining  thereto and the Collateral Agent shall not be responsible for
filing any  financing or  continuation  statements or recording any documents or
instruments in any public office at any time or times or otherwise perfecting or
maintaining  the  perfection  of any security  interest in the  Collateral.  The
Collateral  Agent  shall be  deemed  to have  exercised  reasonable  care in the
custody of the  Collateral  in its  possession  if the  Collateral  is  accorded
treatment  substantially  equal to that which it accords  its own  property  and
shall not be liable or  responsible  for any loss or  diminution in the value of

<PAGE>
                                       2

any of the  Collateral,  by  reason  of the  act  or  omission  of any  carrier,
forwarding  agency or other agent or bailee selected by the Collateral  Agent in
good faith.

SECTION 3.  RESPONSIBILITIES  OF COLLATERAL  AGENT.  The  obligations of the
Collateral Agent under this Agreement shall be to:

            (a) duly  execute  and  deliver  and act as  beneficiary  under  the
Collateral Documents on behalf of the Trustee under the Indenture;

            (b) upon the occurrence of an Event of Default,  take such action as
requested by written  instructions of the Trustee under the Indenture,  provided
that such  action  does not  contradict  applicable  law.  In this  regard,  the
Collateral  Agent  shall be  entitled  to rely and act upon,  and shall be fully
protected  in relying and acting upon,  any note,  writing,  resolution,  notice
consent, certificate,  request, demand, direction, instruction, waiver, receipt,
agreement,  affidavit,  letter, statement,  order or written document or written
communication  reasonably  believed  by it to be genuine and correct and to have
been  signed,  sent or made by the proper  Person or Persons and upon advice and
statements  of legal  counsel  and other  experts  retained  or  employed by the
Collateral Agent in its reasonable discretion;

            (c) be  deemed to have  actual,  constructive,  direct  or  indirect
knowledge or notice of the  occurrence of any Event of Default only upon receipt
by the Collateral  Agent of a written notice or a certificate  from the Trustee,
stating that an Event of Default has occurred.  The Collateral  Agent shall have
no obligation  whatsoever either prior to or after receiving such written notice
or certificate  to inquire  whether an Event of Default has in fact occurred and
shall be  entitled  to rely  conclusively,  and shall be fully  protected  in so
relying, on any notice or certificate so furnished to it;

            (d) remit  according to the written  instructions of the Trustee any
proceeds recovered from enforcement of the Collateral  Documents,  provided that
all  necessary  approvals  are  obtained  from  appropriate  authorities  in the
jurisdiction where the Collateral is located; and

            (e) take such other  actions  requested by the Trustee in accordance
with this Agreement.

SECTION 4.  COLLATERAL AGENT'S INDIVIDUAL CAPACITY.

      The  Collateral  Agent may  accept  deposits  from,  lend  money  to,  and
generally engage in any kind of banking, trust or other business with the Issuer
or any of their  affiliates or  subsidiaries  as if it were not  performing  the
duties specified herein,  and may accept fees and other  consideration  from the
Issuer for services in  connection  with the  Agreement  and  otherwise  without
having to account  for the same to the  Trustee or to the  holders of Notes from
time to time.

SECTION 5.  TERM FEES, ETC.

      The term of this Agreement  shall  commence on the Issue Date and,  unless
earlier terminated pursuant to Section 2(c), shall terminate upon the release of
the Collateral  pursuant to the Collateral  Documents.  For services rendered as
Collateral Agent under this Agreement, the Issuer shall pay the Collateral Agent

                                       3

<PAGE>

$13,000 on the Issue Date and,  during  the term of this  agreement,  $10,000 on
each anniversary of the Issue Date, or such other  compensation as may be agreed
to from time to time in writing between the Collateral Agent and the Issuer. The
Issuer  agrees  to pay the  fees,  expenses  and other  amounts  payable  of the
Collateral Agent under this Agreement,  in addition to any other fees,  expenses
and other amounts payable that may arise under the Collateral Documents (as such
term is defined in the Indenture).

SECTION 6.  INDEMNIFICATION:  DISCLAIMERS, ETC.

            (a) The Issuer shall be liable for and shall reimburse and indemnify
the Collateral Agent and hold the Collateral Agent harmless from and against any
and all claims,  losses,  liabilities,  costs,  damages or  expenses  (including
reasonable attorney's fees and expenses)  (collectively,  "Losses") arising from
or in connection  with or related to this  Agreement or being  Collateral  Agent
hereunder  (including but not limited to Losses incurred by the Collateral Agent
in connection with its successful  defense, in whole or in part, of any claim of
gross negligence or willful  misconduct on its part),  provided,  however,  that
nothing  contained  herein shall require the Collateral  Agent to be indemnified
for Losses caused by its own gross negligence or willful misconduct.

            (b) No  provision of this  Agreement  and the  Collateral  Documents
shall require the Collateral  Agent to expend or risk its own funds or otherwise
incur any financial  liability in the performance of any of its duties hereunder
or under the  Collateral  Documents  or in the  exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate  indemnity  against such risk or  liability is not  reasonably
assured to it.

            (c) THE COLLATERAL AGENT SHALL HAVE NO LIABILITY  (WHETHER  SOUNDING
IN TORT,  CONTRACT OR OTHERWISE) FOR LOSSES IN CONNECTION WITH,  ARISING OUT OF,
OR IN ANY WAY RELATED TO,  PERFORMANCE BY THE COLLATERAL  AGENT UNDER ANY OF THE
COLLATERAL DOCUMENTS AND/OR THE RELATIONSHIP  ESTABLISHED BY THIS AGREEMENT,  OR
ANY ACT,  OMISSION OR EVENT  OCCURRING  IN  CONNECTION  THEREWITH,  UNLESS IT IS
DETERMINED  BY A FINAL AND  NONAPPEALABLE  JUDGMENT OF A COURT OF THE  COMPETENT
JURISDICTION  THAT IS BINDING ON THE COLLATERAL  AGENT THAT SUCH LOSSES WERE THE
RESULT OF ACTS OR OMISSIONS ON THE PART OF THE COLLATERAL AGENT OR ITS OFFICERS,
DIRECTORS,  AGENTS, EMPLOYEES AND REPRESENTATIVES  CONSTITUTING GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

            (d) WITHOUT  PREJUDICE TO ANY OTHER PROVISION OF THIS SECTION 6, THE
COLLATERAL  AGENT AND THE ISSUER AGREE THAT THE TRUSTEE  SHALL HAVE NO LIABILITY
TO THE COLLATERAL  AGENT OR THE ISSUER  (WHETHER  SOUNDING IN TORT,  CONTRACT OR
OTHERWISE)  HEREUNDER,  EXCEPT IN ITS CAPACITY AS TRUSTEE UNDER, AND AS PROVIDED
FOR IN, THE INDENTURE.

                                       4
<PAGE>

SECTION 7.  ILLEGALITY; NO INCONSISTENCY.

      Nothing in this  Agreement or the Collateral  Documents  shall require the
Collateral  Agent to take any  action  which  may be  inconsistent  with,  or in
violation of: (i) any laws,  rules or regulations  in force in the  jurisdiction
where the  Collateral  Agent is located,  or (ii) any other  agreement  that the
Collateral Agent has entered into pursuant to this Agreement.

SECTION 8.  MISCELLANEOUS PROVISIONS.

            (a)   Notices.   All   notices,   approvals,   comments   or   other
communications required or desired to be given hereunder shall be in writing and
delivered in person or mailed by  certified  mail or courier,  postage  prepaid,
addressed as follows,  or by facsimile  transmission,  and shall be deemed given
when received:

      If to the Trustee:

      The Bank of New York
      101 Barclay Street
      New York, New York  10286
      Attention: Global Finance Unit
      Fax:  (212) 235-2530

      If to the Collateral Agent:

      U.S. Bank
      555 S.W. Oak Street
      Portland, Oregon 97204
      Attention: Cheryl Nelson
      Fax:  (503) 275-5738

      If to the Issuer:

      Kronos International, Inc.
      16825 Northchase Drive
      Suite 1200
      Houston, Texas  77060
      Attention:  Robert D. Hardy
      Fax:  (281) 423-3333

            (b)  Severability.  The  provisions of this Agreement are severable,
and if any clause or provision shall be held invalid,  illegal or  unenforceable
in  whole  or  in  part  in  any   jurisdiction,   then   such   invalidity   or
unenforceability   shall  affect  in  that  jurisdiction  only  such  clause  or
provision,  or part  thereof,  and shall not in any manner affect such clause or
provision  in any other  jurisdiction  or any other  clause or provision of this
Agreement in any jurisdiction.

                                       5
<PAGE>

            (c) Headings.  The headings in this Agreement have been inserted for
convenience of reference  only, are not to be considered a part hereof and shall
in no way modify or restrict any of the terms or provisions hereof.

            (d)  Counterpart  Originals.  This Agreement may be signed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
shall together constitute one and the same agreement.

            (e) Amendments. This Agreement may be changed, waived, discharged or
terminated only by an instrument in writing signed by all of the parties hereto.

            (f)  Governing  Law.  THIS  AGREEMENT   SHALL  BE  GOVERNED  BY  AND
INTERPRETED  UNDER THE LAWS OF THE STATE OF NEW YORK AND ANY DISPUTE ARISING OUT
OF, CONNECTED WITH,  RELATED TO, OR INCIDENTAL TO THE  RELATIONSHIP  ESTABLISHED
BETWEEN THE TRUSTEE AND THE COLLATERAL  AGENT IN CONNECTION WITH THIS AGREEMENT,
AND WHETHER ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE RESOLVED IN
ACCORDANCE  WITH  THE  INTERNAL  LAWS  (AS  OPPOSED  TO THE  CONFLICTS  OF  LAWS
PROVISIONS) AND DECISIONS OF THE STATE OF NEW YORK.

            (g)  Submission  to  Jurisdiction.  Any suit,  action or  proceeding
against the  Trustee,  the Issuer or the  Collateral  Agent or their  respective
properties,  assets or  revenues  with  respect to this  Agreement  (a  "Related
Proceeding")  may be brought in any  federal  or state  court in the  Borough of
Manhattan, City of New York, State of New York, and any appellate court thereof.
Each of the Issuer,  the Trustee and the  Collateral  Agent  hereby  irrevocably
consents to the  jurisdiction of each such court for the purposes of any Related
Proceeding, and irrevocably waives, to the fullest extent it may effectively and
lawfully do so, any  objection to the laying of venue of any Related  Proceeding
in any such court and the defense of an inconvenient forum to the maintenance of
any Related  Proceeding in any such court.  Each of the Issuer,  the Trustee and
the Collateral  Agent further  submits to the  jurisdiction of the courts of its
own corporate domicile in any Related Proceeding.

            (h) Incorporation by Reference.  All of the rights,  protections and
privileges  granted to the  Trustee  under the  Indenture  are  incorporated  by
reference  herein and shall inure to the benefit of the Collateral Agent herein;
provided,  however,  that in the event  there is an  inconsistency  or  conflict
between this Agreement and the Indenture,  this Agreement shall govern (it being
understood  that this proviso is intended  solely to resolve  conflicts  between
this  Agreement and the Indenture  with respect to the rights of the  Collateral
Agent  under  this  Agreement,  and shall  not in any way  modify,  diminish  or
otherwise affect the rights,  protections and privileges  granted to the Trustee
under the Indenture).

                           [Signature Pages to Follow]

                                       6

<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

                                    THE BANK OF NEW YORK,
                                    Not in its  individual  capacity but solely
                                    as Trustee under the Indenture

                                    By:  /s/ Luis Perez
                                         ---------------------------------------
                                           Name:      Luis Perez
                                           Title:     Assistant Vice President

                                    U.S. Bank, N.A.
                                    as Collateral Agent

                                    By:  /s/ David A. Pringle
                                         ---------------------------------------
                                           Name:      David A. Pringle
                                           Title:     Vice President

                                    Solely for the  purposes of Sections 2, 5, 6
                                    and 8 hereof:

                                    KRONOS INTERNATIONAL, INC.,
                                    as Issuer

                                    By:  /s/ Robert D. Hardy
                                         ---------------------------------------
                                           Name:      Robert D. Hardy
                                           Title:     Vice  President and Chief
                                                      Financial Officer

                                       7

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