Document:

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                                                                     EXHIBIT 4.2

BANC OF AMERICA SECURITIES LLC

                     $125,000,000 AGGREGATE PRINCIPAL AMOUNT

                        COVAD COMMUNICATIONS GROUP, INC.

                        3% CONVERTIBLE SENIOR DEBENTURES

                                    DUE 2024

                      RESALE REGISTRATION RIGHTS AGREEMENT

                              DATED MARCH 10, 2004

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                                                                               1

         RESALE REGISTRATION RIGHTS AGREEMENT, dated as of March 10, 2004,
between Covad Communications Group, Inc., a Delaware corporation (together with
any successor entity, herein referred to as the "COMPANY"), and Banc of America
Securities LLC, as representative of the several initial purchasers (the
"INITIAL PURCHASERS") under the Purchase Agreement (as defined below).

         Pursuant to the Purchase Agreement, dated as of March 4, 2004, between
the Company and Banc of America Securities LLC, as representative of the Initial
Purchasers (the "PURCHASE AGREEMENT"), the Initial Purchasers have agreed to
purchase from the Company $100,000,000 ($125,000,000 if the Initial Purchasers
exercise their option in full) in aggregate principal amount at maturity of 3%
Convertible Senior Debentures due 2024 (the "DEBENTURES"). The Debentures will
be convertible into fully paid, nonassessable shares of common stock, par value
$0.001 per share, of the Company together with the rights (the "RIGHTS")
evidenced by such common stock to the extent provided in the Stockholder
Protection Rights Agreement dated as of February 13, 2000 between the Company
and BankBoston, N.A., as Rights Agent (collectively, the "COMMON STOCK"). The
Debentures will be convertible on the terms, and subject to the conditions, set
forth in the Indenture (as defined herein). To induce the Initial Purchasers to
purchase the Debentures, the Company has agreed to provide the registration
rights set forth in this Agreement pursuant to Section 1 of the Purchase
Agreement.

         The parties hereby agree as follows:

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

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

         "AGREEMENT": This Resale Registration Rights Agreement.

         "AMENDMENT EFFECTIVENESS DEADLINE DATE": As defined in Section 2(e)
hereof.

         "BLUE SKY APPLICATION": As defined in Section 6(a)(i) hereof.

         "BUSINESS DAY": As defined in the Indenture.

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                                                                               2

         "COMMISSION": Securities and Exchange Commission.

         "COMMON STOCK": As defined in the preamble hereto.

         "COMPANY": As defined in the preamble hereto.

         "DEBENTURES": As defined in the preamble hereto.

         "EFFECTIVENESS PERIOD": As defined in Section 2(a)(iii) hereof.

         "EFFECTIVENESS TARGET DATE": As defined in Section 2(a)(ii) hereof.

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

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

         "INDEMNIFIED HOLDER": As defined in Section 6(a) hereof.

         "INDENTURE": The Indenture, dated as of March 10, 2004 between the
Company and The Bank of New York, as trustee (the "TRUSTEE"), pursuant to which
the Securities are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

         "INITIAL PURCHASERS": As defined in the preamble hereto.

         "LIQUIDATED DAMAGES": As defined in Section 3(b) hereof.

         "LIQUIDATED DAMAGES PAYMENT DATE": Each March 15 and September 15.

         "MAJORITY OF HOLDERS": Holders holding over 50% of the aggregate
principal amount of Debentures outstanding; provided that, for the purpose of
this definition, a holder of shares of Common Stock which constitute Transfer
Restricted Securities shall be deemed to hold an aggregate principal amount at
maturity of Debentures (in addition to the principal amount at maturity of
Debentures held by such holder) equal to the product of (A) the quotient of (x)
the number of such shares of Common Stock held by such holder and (y) the
conversion rate (as expressed in the number of shares issuable per $1,000
principal amount of Debentures) in effect at the time of the conversion of
Debentures into such shares of Common Stock as determined in accordance with the
Indenture and (B) $1,000.

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

         "NOTICE AND QUESTIONNAIRE": A written notice executed by the respective
Holder and delivered to the Company containing substantially the information
called for by the Selling Securityholder Notice and Questionnaire attached as

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                                                                               3

Annex A to the Offering Memorandum of the Company issued March 4, 2004 relating
to the Debentures.

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

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

         "PURCHASE AGREEMENT": As defined in the preamble hereto.

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

         "RECORD HOLDER": With respect to any Liquidated Damages Payment Date,
each Person who is a Holder on the 15th day preceding the relevant Liquidated
Damages Payment Date, including a Holder that owns shares of Common Stock that
are Transfer Restricted Securities on the 15th day preceding the relevant
Liquidated Damages Payment Date.

         "REGISTRATION DEFAULT": As defined in Section 3(a) hereof.

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

         "SHELF FILING DEADLINE": As defined in Section 2(a)(i) hereof.

         "SHELF REGISTRATION STATEMENT": As defined in Section 2(a)(i) hereof.

         "SUBSEQUENT SHELF REGISTRATION STATEMENT": As defined in Section 2(c)
hereof.

         "SUSPENSION NOTICE": As defined in Section 4(c) hereof.

         "SUSPENSION PERIOD": As defined in Section 4(b)(i) hereof.

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

         "TRANSFER RESTRICTED SECURITIES": Each Debenture and each share of
Common Stock issued upon conversion of Debentures until the earlier of:

                           (i)      the date on which such Debenture or such
                  share of Common Stock issued upon conversion has been
                  effectively

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                                                                               4

                  registered under the Securities Act and disposed of in
                  accordance with the Shelf Registration Statement;

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

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

         "UNDERWRITTEN REGISTRATION": A registration in which Debentures of the
Company are sold to an underwriter for reoffering to the public.

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

         2.       Shelf Registration.

                  (a)      The Company shall:

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

                           (ii)     use its reasonable best efforts to cause the
                  Shelf Registration Statement to be declared effective by the
                  Commission not later than 210 days after the date hereof (the
                  "EFFECTIVENESS TARGET DATE"); and

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

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                                                                               5

                                    (1)      the date when the Holders are able
                           to sell all such Transfer Restricted Securities
                           immediately without restriction pursuant to the
                           volume limitation provisions of Rule 144 under the
                           Securities Act; or

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

                  (b)      With the exception of America Online, Inc., AT&T
         Corp. and SBC Communications, Inc., none of the Company's security
         holders other than the Holders shall have the right to include any of
         the Company's securities in the Shelf Registration Statement.

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

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

                  (e)      Each Holder agrees that if such Holder wishes to sell
         Transfer Restricted Securities pursuant to a Shelf Registration
         Statement and related Prospectus, it will do so only in accordance with
         this Section 2(e) and Section 4(b). Each Holder wishing to sell
         Transfer Restricted Securities pursuant to a Shelf Registration
         Statement and related Prospectus must deliver a Notice and
         Questionnaire to the Company. In

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         order to be named as a selling securityholder in the Prospectus at the
         time of effectiveness of the Shelf Registration Statement, the Notice
         and Questionnaire must be delivered at least five (5) Business Days
         prior to the effectiveness of the Shelf Registration Statement. From
         and after the date the Shelf Registration Statement is declared
         effective, the Company shall, as promptly as practicable after the date
         a Notice and Questionnaire is delivered, and in any event upon the
         later of (x) fifteen (15) Business Days after such date or (y) fifteen
         (15) Business Days after the expiration of any Suspension Period in
         effect when the Notice and Questionnaire is delivered or put into
         effect within fifteen (15) Business Days of such delivery date:

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

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

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

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

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                                                                               7

Suspension Period shall be in effect on the Amendment Effectiveness Deadline
Date.

         3.       Liquidated Damages.

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

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

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

                           (iii)    except as provided in Section 4(b)(i)
                  hereof, the Shelf Registration Statement is filed and declared
                  effective but, during the Effectiveness Period, shall
                  thereafter cease to be effective or fail to be usable for its
                  intended purpose without being succeeded within five (5)
                  Business Days by a post-effective amendment to the Shelf
                  Registration Statement, a supplement to the Prospectus or a
                  report filed with the Commission pursuant to Section 13(a),
                  13(c), 14 or 15(d) of the Exchange Act that cures such failure
                  and, in the case of a post-effective amendment, is itself
                  immediately declared effective; or

                           (iv)     (A) prior to or on the 45th or 60th day, as
                  the case may be, of any Suspension Period, such suspension has
                  not been terminated or (B) Suspension Periods exceed an
                  aggregate of 90 days in any 360 day period.

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

<TABLE>
<CAPTION>
      Type of
Registration Default                      Beginning                                Cure
      by Clause                             Date                                   Date
--------------------          -------------------------------         -------------------------------
<S>                           <C>                                     <C>
        (i)                   Shelf Filing Deadline                   the date the Shelf Registration
                                                                      Statement is filed

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

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<TABLE>
<CAPTION>
      Type of
Registration Default                      Beginning                                Cure
      by Clause                             Date                                   Date
--------------------          -------------------------------         -------------------------------
<S>                           <C>                                     <C>
       (iii)                  the date five Business Days             the date any post-effective
                              following the date that the             amendment is declared effective
                              Shelf Registration Statement            by the Commission or any
                              ceases to be effective or fails         supplement to the Prospectus or
                              to be usable                            report is filed that makes the
                                                                      Shelf Registration Statement
                                                                      usable

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

        (b)

                                    (A)      in respect of the Debentures, to
                           each holder of Debentures, if a Registration Default
                           occurs, other than a Registration Default relating to
                           a failure to file or have an effective Shelf
                           Registration Statement with respect to shares of
                           Common Stock issuable upon conversion of the
                           Debentures that are Transfer Restricted Securities,
                           the Company hereby agrees to pay interest
                           ("LIQUIDATED DAMAGES") with respect to the Debentures
                           that are Transfer Restricted Securities from and
                           including the day following the beginning of the
                           Registration Default to but excluding the earlier of
                           (1) the day on which the Registration Default has
                           been cured and (2) the date the Shelf Registration
                           Statement is no longer required to be kept effective,
                           accruing at a rate (x) with respect to the first
                           90-day period during which a Registration Default
                           shall have occurred and be continuing, equal to 0.25%
                           per annum of the aggregate principal amount of the
                           Debentures, and (y) with respect to the period
                           commencing on the 91st day following the day the
                           Registration Default shall have occurred and be
                           continuing, equal to 0.50% per annum of the aggregate
                           principal amount of the Debentures; provided that in
                           no event shall Liquidated Damages accrue at a rate

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                                                                               9

                           per year exceeding 0.50% of the aggregate principal
                           amount of the Debentures; and

                                    (B)      in respect of any shares of Common
                           Stock, to each holder of shares of Common Stock
                           issued upon conversion of the Debentures, no
                           Liquidated Damages on such Common Stock will be
                           payable, but the holder of shares of Common Stock
                           shall be entitled to receive additional Common Stock
                           upon conversion (except to the extent that the
                           Company elects to deliver cash upon conversion).

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

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

         The Liquidated Damages set forth above shall be the exclusive monetary
remedy available to the Holders for each Registration Default.

         4.       Registration Procedures.

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

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

                           (i)      Subject to any notice by the Company in
                  accordance with this Section 4(b) of the existence of any fact
                  or event of the kind described in Section 4(b)(iii)(D), use
                  its best efforts to keep the Shelf Registration Statement
                  continuously effective during the Effectiveness Period; upon
                  the occurrence of any event that would cause the Shelf
                  Registration Statement or the Prospectus contained

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                                                                              10

                  therein (A) to contain a material misstatement or omission or
                  (B) not to be effective and usable for resale of Transfer
                  Restricted Securities during the Effectiveness Period, the
                  Company shall file promptly an appropriate amendment to the
                  Shelf Registration Statement, a supplement to the Prospectus
                  or a report filed with the Commission pursuant to Section
                  13(a), 13(c), 14 or 15(d) of the Exchange Act, in the case of
                  clause (A), correcting any such misstatement or omission, and,
                  in the case of either clause (A) or (B), use its best efforts
                  to cause such amendment to be declared effective and the Shelf
                  Registration Statement and the related Prospectus to become
                  usable for their intended purposes as soon as practicable
                  thereafter. Notwithstanding the foregoing, the Company may
                  suspend the effectiveness of the Shelf Registration Statement
                  by written notice to the Holders for a period not to exceed an
                  aggregate of 45 days in any 90-day period (each such period, a
                  "SUSPENSION PERIOD") if:

                                    (x) an event occurs and is continuing as a
                  result of which the Shelf Registration Statement, the
                  Prospectus, any amendment or supplement thereto, or any
                  document incorporated by reference therein would, in the
                  Company's judgment, contain an untrue statement of a material
                  fact or omit to state a material fact required to be stated
                  therein or necessary to make the statements therein not
                  misleading; and

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

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

                           (ii)     Prepare and file with the Commission such
                  amendments and post-effective amendments to the Shelf
                  Registration Statement as may be necessary to keep the Shelf
                  Registration Statement effective during the Effectiveness
                  Period; cause the Prospectus to be supplemented by any
                  required Prospectus supplement, and as so supplemented to be
                  filed pursuant to Rule 424 under the Securities Act, and to
                  comply fully with the applicable provisions of Rules 424 and
                  430A under the

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                                                                              11

                  Securities Act in a timely manner; and comply with the
                  provisions of the Securities Act applicable to it with respect
                  to the disposition of all Debentures covered by the Shelf
                  Registration Statement during the applicable period in
                  accordance with the intended method or methods of distribution
                  by the sellers thereof set forth in the Shelf Registration
                  Statement or supplement to the Prospectus.

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

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

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

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

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

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

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                                                                              12

         the Shelf Registration Statement prompt notice of the withdrawal of any
         such order.

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

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

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

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

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                                                                              13

                  covered by the Prospectus or any amendment or supplement
                  thereto.

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

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

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

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

<PAGE>

                                                                              14

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

                           (xiii)   Cooperate and assist in any filings required
                  to be made with the NASD and in the performance of any due
                  diligence investigation by any underwriter that is required to
                  be retained in accordance with the rules and regulations of
                  the NASD.

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

                           (xv)     Cause the Indenture to be qualified under
                  the TIA not later than the effective date of the Shelf
                  Registration Statement required by this Agreement, and, in
                  connection therewith, cooperate with the Trustee and the
                  holders of Debentures to effect such changes to the 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 the Trustee thereunder to execute all
                  documents that may be required to effect such changes and all
                  other forms and documents required to be filed with the
                  Commission to enable such Indenture to be so qualified in a
                  timely manner.

                           (xvi)    Cause all Common Stock covered by the Shelf
                  Registration Statement to be listed or quoted, as the case may
                  be, on each securities exchange or automated quotation system
                  on which Common Stock is then listed or quoted.

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

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

<PAGE>

                                                                              15

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

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

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

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

         5.       Registration Expenses.

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

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

<PAGE>

                                                                              16

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

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

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

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

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

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

         6.       Indemnification And Contribution.

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

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

<PAGE>

                                                                              17

                  (such application or document being hereinafter called a "BLUE
                  SKY APPLICATION"); or

                           (ii)     the omission or alleged omission to state
                  therein any material fact required to be stated therein or
                  necessary to make the statements therein, in the light of the
                  circumstances under which they were made, not misleading,

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

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

                  (c)      Promptly after receipt by an indemnified party under
         this Section 6 of notice of any claim or the commencement of any
         action, the indemnified party shall, if a claim in respect thereof is
         to be made against the indemnifying party under this Section 6, notify
         the indemnifying party in writing of the claim or the commencement of
         that action; provided, however, that the failure to notify the
         indemnifying party shall not relieve it from any liability which it may
         have under this Section 6 except to the extent it has been materially
         prejudiced by such failure and, provided,

<PAGE>

                                                                              18

         further, that the failure to notify the indemnifying party shall not
         relieve it from any liability which it may have to an indemnified party
         otherwise than under this Section 6. If any such claim or action shall
         be brought against an indemnified party, and it shall notify the
         indemnifying party thereof, the indemnifying party shall be entitled to
         participate therein and, to the extent that it wishes, jointly with any
         other similarly notified indemnifying party, to assume the defense
         thereof with counsel reasonably satisfactory to the indemnified party.
         After notice from the indemnifying party to the indemnified party of
         its election to assume the defense of such claim or action, the
         indemnifying party shall not be liable to the indemnified party under
         this Section 6 for any legal or other expenses subsequently incurred by
         the indemnified party in connection with the defense thereof other than
         reasonable costs of investigation; provided, however, that the Holders
         shall have the right to employ a single counsel to represent jointly
         the Holders and their directors, officers, employees and controlling
         persons who may be subject to liability arising out of any claim in
         respect of which indemnity may be sought by the Holders against the
         Company under this Section 6 if the Holders seeking indemnification
         shall have been advised by legal counsel that there may be one or more
         legal defenses available to such Holders and their respective officers,
         employees and controlling persons that are different from or additional
         to those available to the Company, and in that event, the fees and
         expenses of such separate counsel shall be paid by the Company. No
         indemnifying party shall:

                           (i)      without the prior written consent of the
                  indemnified parties (which consent shall not be unreasonably
                  withheld) settle or compromise or consent to the entry of any
                  judgment with respect to any pending or threatened claim,
                  action, suit or proceeding in respect of which indemnification
                  or contribution may be sought hereunder (whether or not the
                  indemnified parties are actual or potential parties to such
                  claim or action), unless such settlement, compromise or
                  consent includes an unconditional release of each indemnified
                  party from all liability arising out of such claim, action,
                  suit or proceeding, or

                           (ii)     be liable for any settlement of any such
                  action effected without its written consent (which consent
                  shall not be unreasonably withheld).

                  (d)      The indemnifying party under this Section shall not
         be liable for any settlement of any proceeding effected without its
         written consent, which shall not be withheld unreasonably, but if
         settled with such consent or if there is a final judgment for the
         plaintiff, the indemnifying party agrees to indemnify the indemnified
         party against any loss, claim, damage, liability or expense by reason
         of such settlement or judgment. Notwithstanding the foregoing sentence,
         if at any time an indemnified

<PAGE>

                                                                              19

         party shall have requested an indemnifying party to reimburse the
         indemnified party for fees and expenses of counsel as contemplated by
         Section 6(c) hereof, the indemnifying party agrees that it shall be
         liable for any settlement of any proceeding effected without its
         written consent if (i) such settlement is entered into more than 30
         days after receipt by such indemnifying party of the aforesaid request
         and (ii) such indemnifying party shall not have reimbursed the
         indemnified party in accordance with such request prior to the date of
         such settlement. No indemnifying party shall, without the prior written
         consent of the indemnified party, effect any settlement, compromise or
         consent to the entry of judgment in any pending or threatened action,
         suit or proceeding in respect of which any indemnified party is or
         could have been a party and indemnity was or could have been sought
         hereunder by such indemnified party, unless such settlement, compromise
         or consent (x) includes an unconditional release of such indemnified
         party from all liability on claims that are the subject matter of such
         action, suit or proceeding and (y) does not include a statement as to
         or an admission of fault, culpability or a failure to act by or on
         behalf of any indemnified party.

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

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

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

The relative benefits received by the Company on the one hand and a Holder on
the other with respect to such offering and such sale shall be deemed to be in
the same proportion as the total net proceeds from the offering of the
Debentures purchased under the Purchase Agreement (before deducting expenses)
received by the Company, on the one hand, bear to the total proceeds received by
such

<PAGE>

                                                                              20

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

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

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

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

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

<PAGE>

                                                                              21

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

         9.       Miscellaneous.

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

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

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

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

<PAGE>

                                                                              22

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

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

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

                             With a copy to:

                             Fenwick & West LLP
                             Silicon Valley Center
                             801 California Street
                             Mountain View, California 94041
                             Facsimile:  650-938-5200
                             Attention:  Daniel Winnike

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five (5) Business
Days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt acknowledged, if transmitted by
facsimile; and on the next Business Day, if timely delivered to an air courier
guaranteeing overnight delivery.

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

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

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

                  (h)      Debentures Held by the Company or Their Affiliates.
         Whenever the consent or approval of Holders of a specified percentage
         of Transfer Restricted Securities is required hereunder, Transfer
         Restricted Securities held by the Company or its Affiliates (other than
         subsequent

<PAGE>

                                                                              23

         Holders if such subsequent Holders are deemed to be Affiliates solely
         by reason of their holding of such Debentures) shall not be counted in
         determining whether such consent or approval was given by the Holders
         of such required percentage.

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

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

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

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

<PAGE>

                                                                              24

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

                                    COVAD COMMUNICATIONS GROUP, INC.

                                    By: /s/ Mark Richman
                                       -----------------------------------------
                                       Name:  Mark Richman
                                       Title: Executive Vice President and Chief
                                               Financial Officer

  BANC OF AMERICA SECURITIES LLC

Acting as Representative of the several Initial Purchasers
named in Schedule A to the Purchase Agreement

  BANC OF AMERICA SECURITIES LLC

  By:  /s/ Derek Dillon
      ------------------------------
      Name: Derek Dillon
      Title: Managing Director

                                       24<PAGE>

                                                                     EXHIBIT 4.3

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

         TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

         THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS, AND ACCORDINGLY, THIS SECURITY AND THE COMMON STOCK
ISSUABLE UPON CONVERSION HEREOF, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH
IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A ADOPTED
UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY) RESELL OR OTHERWISE TRANSFER THE SECURITY
EVIDENCED HEREBY, OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY,
EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF; (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF
1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT OF 1933 (IF AVAILABLE), (D) TO AN INSTITUTIONAL INVESTOR THAT
IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7)
OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE), OR (E) PURSUANT TO A

<PAGE>

REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER;
AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY
EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C)
OR 2(E) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

         The foregoing legend may be removed from this Security on satisfaction
of the conditions specified in the Indenture.

                                       2

<PAGE>

                        COVAD COMMUNICATIONS GROUP, INC.

                    3% Convertible Senior Debentures Due 2024

CUSIP: 222814AQ8
ISSUE DATE: March 10, 2004                        Principal Amount: $125,000,000

         COVAD COMMUNICATIONS GROUP, INC., a Delaware corporation, promises to
pay to Cede & Co. or registered assigns, the principal amount of One Hundred and
Twenty-Five Million dollars ($125,000,000), on March 15, 2024.

         Interest Rate: 3% per year.

         Interest Payment Dates: March 15 and September 15 of each year,
commencing September 15, 2004.

         Interest Record Date: March 1 and September 1 of each year.

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

                                       3

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated: March 10, 2004                       COVAD COMMUNICATIONS
                                            GROUP, INC.

                                            By: /s/ Mark Richman
                                                --------------------------------
                                                Name: Mark Richman
                                                Title: Executive Vice President
                                                and Chief Financial Officer

                                       4

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

THE BANK OF NEW YORK, as Trustee, certifies that this is one of the Securities
referred to in the within-mentioned Indenture.

By
  ----------------------------------
Authorized Signatory

Dated: March 10, 2004

                                       5

<PAGE>

                           REVERSE OF GLOBAL SECURITY

                    3% Convertible Senior Debentures Due 2024

         This Security is one of a duly authorized issue of 3% Convertible
Senior Debentures Due 2024 (the "SECURITIES") of Covad Communications Group,
Inc., a Delaware corporation (including any successor corporation under the
Indenture hereinafter referred to, the "COMPANY"), issued under an Indenture,
dated as of March 10, 2004 (the "INDENTURE"), between the Company and The Bank
of New York, as trustee (the "TRUSTEE"). The terms of the Security include those
stated in the Indenture, those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended ("TIA"), and those set forth in this
Security. This Security is subject to all such terms, and Holders are referred
to the Indenture and the TIA for a statement of all such terms. To the extent
permitted by applicable law, in the event of any inconsistency between the terms
of this Security and the terms of the Indenture, the terms of the Indenture
shall control. Capitalized terms used but not defined herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

1.       INTEREST.

         The Securities shall bear interest on the principal amount thereof at a
rate of 3% per year. The Company shall also pay Liquidated Damages as set forth
in the Registration Rights Agreement.

         Interest will be payable semi-annually on each Interest Payment Date to
Holders at the close of business on the preceding Interest Record Date. Interest
will be computed on the basis of a 360-day year comprised of twelve 30 day
months.

         The Company will pay Interest to a person other than the Securityholder
of record on the Interest Record Date if the Company elects to redeem, or
Securityholders elect to require the Company to repurchase, the Securities on a
date that is after a Interest Record Date but on or prior to the corresponding
Interest Payment Date. In that instance, the Company will pay accrued and unpaid
Interest on the Securities being redeemed or purchased to, but not including,
the Redemption Date or the Change of Control Purchase Date, as the case may be,
to the same person to whom it will pay the principal of those Securities.

         If the principal amount of any Security, or any accrued and unpaid
Interest or Liquidated Damages, if any, are not paid when due (whether upon
acceleration pursuant to Section 6.02 of the Indenture, upon the date set for
payment of the Redemption Price pursuant to Section 3.01 of the Indenture and
Section 5 hereof, upon the date set for payment of the Repurchase Price pursuant
to Section 3.07 of the Indenture and Section 6 hereof upon the date set for
payment of the Change in

                                       6

<PAGE>

Control Purchase Price pursuant to Section 3.08 of the Indenture and Section 6
hereof, upon the Stated Maturity of the Securities, upon the Interest Payment
Dates or upon the Liquidated Damages Payment Dates (as defined in the
Registration Rights Agreement), then in each such case the overdue amount shall,
to the extent permitted by law, bear cash interest at the rate of 3% per annum,
compounded semiannually, which interest shall accrue from the date such overdue
amount was originally due to the date payment of such amount, including interest
thereon, has been made or duly provided for. All such interest shall be payable
in cash on each Interest Payment Date, or, if earlier, the date such overdue
amount is paid.

2.       METHOD OF PAYMENT.

         Except as provided below, the Company shall pay Interest on (i) Global
Securities, to DTC in immediately available funds, (ii) any Certificated
Security having an aggregate principal amount of $5,000,000 or less, by check
mailed to the Holder of such Security and (iii) any Certificated Security having
an aggregate principal amount of more than $5,000,000, by wire transfer in
immediately available funds at the election of the Holder of any such Security.

         At Stated Maturity, the Company will pay Interest on Certificated
Securities at the Company's office or agency in New York City.

         Subject to the terms and conditions of the Indenture, the Company will
make payments in respect of Redemption Prices, Change of Control Purchase Prices
and at Stated Maturity on (i) Global Securities, to DTC in immediately available
funds and (ii) any Certificated Security, to the Holder who surrenders such
Security at the office or agency of the Company in New York City. The Company
will pay cash amounts in money of the United States that at the time of payment
is legal tender for payment of public and private debts. However, the Company
may make such cash payments by check payable in such money.

         If any Interest Payment Date (other than an Interest Payment Date
coinciding with the Stated Maturity or earlier Redemption Date, Repurchase Date
or Change Of Control Purchase Date) of a Security falls on a day that is not a
Business Day, such Interest Payment Date will be postponed to the next
succeeding Business Day. If the Stated Maturity, Redemption Date, Repurchase
Date or Change Of Control Purchase Date of a Security would fall on a day that
is not a Business Day, the required payment of interest, if any, and principal
will be made on the next succeeding Business Day and no interest on such payment
will accrue for the period from and after the Stated Maturity, Redemption Date,
Repurchase Date or Change Of Control Purchase Date to such next succeeding
Business Day.

3.       [Reserved]

4.       INDENTURE.

                                       7

<PAGE>

         The Securities are senior unsecured obligations of the Company limited
to $125,000,000 aggregate principal amount. The Indenture does not limit other
indebtedness of the Company, secured or unsecured.

5.       REDEMPTION AT THE OPTION OF THE COMPANY.

         No sinking fund is provided for the Securities. Beginning on March 20,
2009, the Company, at its option, may redeem the Securities in accordance with
the Article 3 of the Indenture for cash at any time as a whole, or from time to
time in part, at a redemption price (the "REDEMPTION PRICE") equal to the
principal amount of the Securities to be redeemed together in each case with
accrued and unpaid Interest, and accrued and unpaid Liquidated Damages, if any,
on the Securities redeemed to (but excluding) the Redemption Date.

         In no event will any Security be redeemable at the option of the
Company before March 20, 2009.

6.       PURCHASE BY THE COMPANY AT THE OPTION OF THE HOLDER.

         On March 15, 2009, March 15, 2014 and March 15, 2019 (each, a
"REPURCHASE DATE"), Holders may require the Company to repurchase for cash any
outstanding Securities for which the Holder has properly delivered and not
withdrawn a written Repurchase Notice, subject to certain additional conditions,
at a Repurchase Price equal to 100% of the principal amount of the Securities
plus accrued and unpaid Interest and Liquidated Damages, if any, to the
Repurchase Date.

         Holders may submit their Securities for repurchase to the paying agent,
which will initially be the Trustee, at any time from the opening of business on
the date that is 20 Business Days prior to the Repurchase Date until the close
of business on the Repurchase Date.

         At the option of the Holder and subject to the terms and conditions of
the Indenture, the Company shall become obligated to offer to purchase all or
any portion of the Securities held by such Holder within 30 days (which purchase
shall occur on a Business Day specified by the Company that is 30 Business Days
after the date the Company gives notice of the Change of Control pursuant to the
Indenture) after the occurrence of a Change of Control of the Company for a
Change of Control Purchase Price equal to the principal amount of those
Securities plus accrued and unpaid Interest, and Liquidated Damages, if any, on
those Securities up to (but excluding) the Change of Control Purchase Date. The
Change of Control Purchase Price shall be paid in cash, subject to the terms and
conditions of the Indenture.

         Holders have the right to withdraw any Change of Control Purchase
Notice by delivering to the Paying Agent a written notice of withdrawal in
accordance with the provisions of the Indenture.

                                       8

<PAGE>

         If cash sufficient to pay the Change of Control Purchase Price of all
Securities or portions thereof to be purchased as of the Change of Control
Purchase Date is deposited with the Paying Agent, on the Business Day following
the Change of Control Purchase Date, Interest and Liquidated Damages, if any,
will cease to accrue on such Securities (or portions thereof) immediately after
such Change of Control Purchase Date, and the Holder thereof shall have no other
rights as such other than the right to receive the Change of Control Purchase
Price upon surrender of such Security.

7.       NOTICE OF REDEMPTION.

         Notice of redemption pursuant to Section 3.01 of the Indenture and
Section 5 of this Security will be mailed, as provided in the Indenture, at
least 30 days but not more than 60 days before the Redemption Date to each
Holder of Securities to be redeemed at the Holder's registered address. If money
sufficient to pay the Redemption Price of all Securities (or portions thereof)
to be redeemed on the Redemption Date is deposited with the Paying Agent prior
to or on the Redemption Date, immediately on and after such Redemption Date
Interest, and Liquidated Damages, if any, will cease to accrue on such
Securities or portions thereof. Securities in denominations larger than $1,000
principal amount may be redeemed in part but only in integral multiples of
$1,000 of principal amount.

8.       CONVERSION.

         Subject to and in compliance with the provisions of the Indenture, a
Holder is entitled, at such Holder's option, to convert the Holder's Security
(or any portion of the principal amount thereof that is $1,000 or an integral
multiple $1,000), into fully paid and nonassessable shares of Common Stock at
the Conversion Rate in effect at the time of conversion; provided, however, the
Company may satisfy its obligation with respect to any demand for conversion by
delivering Common Stock, cash or a combination of cash and Common Stock.

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

         The initial Conversion Rate is 315.04 shares of Common Stock per $1,000
principal amount, subject to adjustment in certain events described in the
Indenture. The Conversion Rate shall not be adjusted for any accrued and unpaid
Interest. Upon conversion, no payment shall be made by the Company with respect
to accrued and unpaid Interest, if any. Instead, such amount shall be deemed
paid by the cash or shares of Common Stock delivered upon conversion of any
Security. In addition, no payment or adjustment shall be made in respect of
dividends on the Common Stock the record date for which is prior to the date of
conversion, except as set forth in the Indenture.

                                       9

<PAGE>

         No fractional shares of Common Stock shall be issued upon conversion of
any Security. Instead of any fractional share of Common Stock that would
otherwise be issued upon conversion of such Security, the Company shall pay a
cash adjustment as provided in the Indenture.

         If the Company (i) is a party to a consolidation, merger, statutory
share exchange or combination, (ii) reclassifies the Common Stock, or (iii)
sells or conveys its properties and assets substantially as an entirety to any
Person, the right to convert a Security into shares of Common Stock may be
changed into a right to convert it into securities, cash or other assets of the
Company or such other Person, in each case in accordance with the Indenture.

9.       [Reserved]

10.      PAYING AGENT, CONVERSION AGENT, REGISTRAR AND CALCULATION AGENT.

         Initially, the Trustee will act as Paying Agent, Conversion Agent,
Registrar and Calculation Agent. The Company may appoint and change any Paying
Agent, Conversion Agent, Registrar or Calculation Agent without notice, other
than notice to the Trustee; provided that the Company will maintain at least one
Paying Agent in the State of New York, City of New York, Borough of Manhattan,
which shall initially be an office or agency of the Trustee. The Company or any
of its Subsidiaries or any of their Affiliates may act as Paying Agent,
Conversion Agent, Registrar or Calculation Agent.

11.      DENOMINATIONS; TRANSFER; EXCHANGE.

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

12.      PERSONS DEEMED OWNERS.

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

13.      UNCLAIMED MONEY OR SECURITIES.

                                       10

<PAGE>

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

14.      AMENDMENT; WAIVER.

         Subject to certain exceptions set forth in Section 9.02 of the
Indenture, (i) the Indenture or the Securities may be amended with the written
consent of the Holders of at least a majority in aggregate principal amount of
the outstanding Securities and (ii) certain Events of Defaults may be waived
with the written consent of the Holders of a majority in aggregate principal
amount of the outstanding Securities. The Company and the Trustee may amend the
Indenture or the Securities without the consent of the Holders in the
circumstances specified in Section 9.01 of the Indenture.

15.      DEFAULTS AND REMEDIES.

         If any Event of Default with respect to Securities shall occur and be
continuing, the principal amount of the Securities and any accrued and unpaid
Interest, and accrued and unpaid Liquidated Damages, if any, on all the
Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.

16.      TRUSTEE DEALINGS WITH THE COMPANY.

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

17.      CALCULATIONS IN RESPECT OF SECURITIES.

         The Company or its agents will be responsible for making all
calculations called for under the Securities including, but not limited to,
determination of the market prices for the Securities and of the Common Stock
and the amounts of Liquidated Damages, if any, accrued on the Securities. Any
calculations made in good faith and without manifest error will be final and
binding on Holders of the Securities. The Company or its agents will be required
to deliver to the Trustee a schedule of its calculations and the Trustee will be
entitled to conclusively rely upon the accuracy of such calculations without
independent verification.

19.      NO RECOURSE AGAINST OTHERS.

                                       11

<PAGE>

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

20.      AUTHENTICATION.

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

21.      ABBREVIATIONS.

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

22.      GOVERNING LAW.

         THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY.

23.      COPY OF INDENTURE.

         The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture which has in it the text of this Security
in larger type. Requests may be made to:

         COVAD COMMUNICATIONS GROUP, INC.
         110 Rio Robles
         San Jose, CA 95134
         Attn:  General Counsel

24.      REGISTRATION RIGHTS.

         The Holders of the Securities are entitled to the benefits of a Resale
Registration Rights Agreement, dated as of March 10, 2004, between the Company
and Banc of America Securities LLC, as representative of the initial purchasers
named therein, including the receipt of Liquidated Damages upon a Registration
Default (as defined in such agreement). The Company shall make payments of
Liquidated Damages on the Liquidated Damages Payment Dates (as defined in the
Registration Rights Agreement), but otherwise in accordance with the provisions
set forth herein for the payment of Interest.

                                       12

<PAGE>

<TABLE>
<CAPTION>
ASSIGNMENT FORM                                         CONVERSION NOTICE
<S>                                                     <C>
To assign this Security, fill in the form               To convert this Security into Common Stock
below:                                                  of the Company, check the box [  ]

I or we assign and transfer this Security to            To convert only part of this Security,
____________________________________________            state the principal amount to be converted
____________________________________________            (which must be $1,000 or an integral
(Insert assignee's soc. sec. or tax ID no.)             multiple of $1,000):

____________________________________________            If you want the stock certificate made out
____________________________________________            in another person's name fill in the form
____________________________________________            below:
(Print or type assignee's name, address
and zip code)                                           __________________________________________
                                                        __________________________________________
                                                        (Insert the other person's soc. sec.
and irrevocably appoint                                 tax ID no.)

_________________________________ agent to              __________________________________________
transfer this Security on the books of the              __________________________________________
Company. The agent may substitute another               __________________________________________
to act for him.                                         __________________________________________
                                                        __________________________________________
                                                        (Print or type other person's name,
                                                        address and zip code)
</TABLE>

Date: ___________________ Your Signature: ______________________________________
________________________________________________________________________________

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

Signature Guaranteed

_____________________________________

Participant in a Recognized Signature

Guarantee Medallion Program

By:__________________________________
         Authorized Signatory

                                       13

<PAGE>

                       SCHEDULE OF INCREASES AND DECREASES
                               OF GLOBAL SECURITY

Initial Principal Amount of Global Security: $125,000,000

<TABLE>
<CAPTION>
                 Amount of        Amount of          Principal
                Increase in      Decrease in         Amount of
                 Principal        Principal           Global            Notation by
                 Amount of        Amount of        Security After       Registrar or
                  Global           Global           Increase or           Security
Date             Security         Security           Decrease            Custodian
------------------------------------------------------------------------------------
<S>             <C>              <C>               <C>                  <C>
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
</TABLE>

                                       14

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