Document:

ADVISORY SERVICES AGREEMENT

            THIS ADVISORY  SERVICES  AGREEMENT (the "Agreement") is entered into
as of this 21st day of September,  1995, by and between OSI Holdings  Corp.  (on
behalf of itself and its subsidiaries),  a Delaware corporation (the "Company"),
and MDC Management Company III, L.P., a California limited partnership ("MDC").

            WHEREAS, contemporaneously  with  the execution and delivery of this
Agreement the Company and certain  subsidiaries of the Company have acquired all
of the partnership interests in Account Portfolios, L.P., Perimeter Credit, L.P.
and Gulf State Credit, L.P. (the "Acquisition"); and

            WHEREAS,  the execution and delivery of this Agreement is a material
condition to the consummation of the Acquisition.

            NOW,  THEREFORE,  in  consideration  of the mutual  promises  of the
parties hereinafter set forth, MDC and the Company hereto agree as follows:

            1.  Retention as Management  Advisor.  Subject to each of the terms,
conditions and provisions of this  Agreement,  the Company and its  subsidiaries
hereby  retain MDC and MDC hereby  agrees to be  retained by the Company and its
subsidiaries  to perform those  financial and managerial  functions set forth in
Section 4 of this Agreement.

            2. Term.

            2.1 Subject to the provisions for termination set forth herein, this
Agreement  shall  be from  the date  hereof  through  September  21,  2005,  and
automatically  renewable annually  thereafter unless MDC receives 30 days notice
of the termination prior to the renewal date.

            2.2 The Company,  by written notice to MDC, authorized by a majority
of the directors  other than those who are partners,  principals or employees of
MDC (or an affiliate of MDC),  may  terminate  this  Agreement  for  justifiable
cause,  which shall mean any of the following events:  material breach by MDC of
any of its obligations  hereunder;  misappropriation by MDC of funds or property
of the Company or other  willful  breach in the course of the  consultancy;  any
attempt by MDC to secure  personal profit related to the business of the Company
and not fairly  disclosed  to and  approved by the Board of  Directors  or gross
neglect by MDC in the fulfillment of its obligations hereunder.

            2.3 MDC, by thirty (30) days' prior  written  notice to the Company,
may terminate this Agreement at any time.

            3. Compensation.

            3.1 Upon execution and delivery of this Agreement, the Company shall
pay MDC a transaction  fee of $1,600,000 for services  rendered on behalf of the
Company and its subsidiaries in connection with the Acquisition.

            3.2 As compensation to MDC for its management and advisory  services
to the Company and its subsidiaries under this Agreement, the Company, on behalf
of itself and its  subsidiaries,  agrees to pay MDC a fee in the amount of three
hundred  thousand  dollars  ($300,000)  per year.  Such fee shall be  payable in
arrears  in equal  quarterly  installments,  on or before the last day of March,
June, September and December, commencing on December 31, 1995.

            3.3 MDC shall also be entitled to be  reimbursed  by the Company for
all reasonable  out-of-pocket  costs and expenses incurred by MDC and any of its
partners,  employees or affiliates in connection with (i) providing the Services
under this  Agreement,  or (ii) serving as a member of the Board of Directors or
as an officer of the Company including, without limitation, all travel expenses.
Reimbursement shall be provided upon receipt by the Company of invoices from MDC
with respect to such costs and expenses.

            4. Duties as  Management  Advisor.  MDC's duties as a financial  and
management  consultant to the Company and its subsidiaries  under the provisions
of this Agreement shall include providing  services in obtaining  equity,  debt,
lease and  acquisition  financing,  as well as  providing  other  financial  and
consulting  services  for the  operation  and growth of the  Company at any time
during the term of this  Agreement  (the  "Services").  Such  Services  shall be
rendered upon the  reasonable  request of the Company.  MDC shall devote as much
time as reasonably necessary to the affairs of the Company.

            5. Decisions.  The Company  reserves the right to make all decisions
with  regard  to  any  matter  upon  which  MDC  has  rendered  its  advice  and
consultation,  and  there  shall  be no  liability  to MDC for any  such  advice
accepted by the Company pursuant to the provisions of this Agreement.

            6. Authority of Management Advisor. MDC shall have authority only to
act as a consultant  and advisor to the Company.  MDC shall have no authority to
enter into any agreement or to make any  representation,  commitment or warranty
binding  upon the  Company  or to  obtain  or incur  any  right,  obligation  or
liability on behalf of the Company.

            7. Independent Contractor. Except as may be expressly provided
elsewhere in this Agreement, MDC shall act as an independent contractor and
shall have complete charge of its personnel engaged in the performance of the
Services.

            8. Books and  Records.  MDC's books and records  with respect to the
Services and any reimbursable costs ("Books and Records") shall be kept at MDC's
office  located at 3000 Sand Hill Road,  Building  3,  Suite  290,  Menlo  Park,
California  94025.  The  Books  and  Records  shall be kept in  accordance  with
recognized accounting principles and practices,  consistently applied, and shall
be made available for the Company or the Company's  representatives'  inspection
and copying at all times during regular office hours.  MDC shall not be required
to  maintain  the  Books  and  Records  for more  than  three  (3)  years  after
termination of this Agreement.

            9. Confidential Information.

            9.1 The parties  acknowledge  that during the course of provision of
the Services,  the Company may disclose  confidential  information to MDC or its
affiliated  companies.  MDC  shall  treat  such  information  as  the  Company's
confidential  property and safeguard and keep secret all such information  about
the Company,  including reports and records,  customer lists, trade lists, trade
practices,  and  prices  pertaining  to the  Company's  business  coming  to the
attention or knowledge of MDC because of any  activities  conducted by MDC under
or pursuant to this Agreement.

            9.2 MDC shall  exercise  its best efforts and shall cause any of its
affiliated  companies to exercise their best efforts to prevent any confidential
information  from  being  disclosed  to third  parties,  except  as  necessarily
required  in  the  performance  of  the  Services  and  except  under  terms  of
confidentiality  satisfactory to the Company.  This  obligation  shall remain in
effect until the Company  shall  release MDC or its  affiliated  companies  from
their  obligations  under this paragraph 9, but in no event later than three (3)
years  after  the  completion  of the  Services.  MDC  shall  not use any of the
Company's  confidential  information  in any  way  that  is  detrimental  to the
interests of the Company, directly or indirectly, either during the term of this
Agreement or at any time thereafter.

            10.  Indemnification.  The Company  agrees to indemnify and hold MDC
and its partners,  officers,  directors and agents harmless from damages, losses
or expenses  (including,  without  limitation,  reasonable  attorneys'  fees and
expenses) incurred or paid directly or indirectly, by MDC as a result or arising
out of any  actions  taken  by MDC in  connection  with the  performance  of the
Services  under this Agreement  except to the extent that such actions  resulted
solely  from the gross  negligence  or willful  misconduct  of MDC.  The Company
hereby  further  agrees to reimburse  MDC for all  reasonable  fees and expenses
(including  attorneys fees) incurred in connection with defending any such claim
to which MDC is a party, as such fees and expenses are incurred by MDC.

            11. Notices and Communications.

            11.1  All  communications  relating  to  the  day-to-day  activities
necessary  to render the  Services  shall be  exchanged  between the  respective
representatives  of the Company and MDC, who will be  designated  by the parties
promptly upon commencement of the Services.

            11.2 All other  notices,  demands,  and  communications  required or
permitted hereunder shall be in writing and shall be delivered personally to the
respective  representatives  of the  Company and MDC set forth below or shall be
mailed by registered mail, postage prepaid,  return receipt requested.  Notices,
demands  and  communications  hereunder  shall be  effective:  (i) If  delivered
personally, on delivery; or (ii) if mailed, forty-eight (48) hours after deposit
thereof in the United  States mail  addressed  to the party to whom such notice,
demand,  or  communication is given.  Until changed by written notice,  all such
notices, demands and communications shall be addressed as follows:

            If to the Company:   OSI Holdings Corp.
                                 c/o David B. Kreiss
                                 5605 Lake Island Drive
                                 Atlanta, GA  30327
                                 Tel: (404) 250-0707
                                 Fax: (404) 250-0707

            If to MDC:           McCown De Leeuw & Co.
                                 101 East 52nd Street
                                 31st Floor
                                 New York, New York 10022
                                 Attn:  Mr. Tyler Zachem
                                 Tel: (212) 355-5500
                                 Fax: (212) 355-6283 or
                                      (212) 355-6945

            With copies to:      McCown De Leeuw & Co.
                                 3000 Sand Hill Road
                                 Building 3, Suite 290
                                 Menlo Park, CA  94025
                                 Attn: Mr. Steven A.
                                       Zuckerman
                                 Tel: (415) 854-6000
                                 Fax: (415) 854-0853

            12. Assignments.  MDC shall not assign this Agreement in whole or in
part without the prior written consent of the Company,  provided,  however, that
such consent shall not be  unreasonably  withheld with respect to assignments to
MDC's affiliates or wholly-owned  subsidiaries;  and provided further,  that any
such  assignment  shall not  relieve  MDC of any of its  obligations  under this
Agreement.

            Subject to the  foregoing,  all the terms and  conditions  contained
herein  shall  inure to the  benefit  of and shall be binding  upon the  parties
hereto and their  respective  heirs,  personal  representatives,  successors and
assigns.

            13.  Applicable Law and  Severability.  This document  shall, in all
respects,  be  governed  by the laws of the  State  of  Delaware  applicable  to
agreements  executed  and to be wholly  performed  within the State of Delaware.
Nothing  contained  herein shall be construed so as to require the commission of
any act  contrary  to law,  and  wherever  there  is any  conflict  between  any
provisions  contained  herein and any contrary  present or future statute,  law,
ordinance or  regulation,  the latter shall  prevail,  but the provision of this
document which is affected shall be curtailed and limited  only  to  the  extent
necessary to bring it within the requirements of the law.

            14. Further Assurances. Each of the parties hereto shall execute and
deliver any and all additional papers, documents and other assurances, and shall
do any and all acts and  things  reasonably  necessary  in  connection  with the
performance  of their  obligations  hereunder and to carry out the intent of the
parties hereto.

            15. Attorneys'   Fees.  In  the  event any action is instituted by a
party  to  enforce  any  of the  terms  and  provisions  contained  herein,  the
prevailing party in such action shall be entitled to such reasonable  attorneys'
fees, costs and expenses as may be fixed by the court.

            16. Time  of  the Essence. Time  is of the essence of this Agreement
and all the terms, provisions, covenants and conditions hereof.

            17. Captions. The   captions  appearing  at  the commencement of the
paragraphs hereof are descriptive only and for convenience and reference. Should
there be any conflicts between any such caption and the paragraph at the head of
which it appears, the paragraph and not such caption shall control and govern in
the construction of this document.

            18.   Modifications   or   Amendments.   No  amendment,   change  or
modification  of this document shall be valid unless it is in writing and signed
by all the parties  hereto and  expressly  states that an  amendment,  change or
modification of this Agreement is intended.

            19. Separate  Counterparts.  This document may be executed in one or
more separate counterparts, each of which, when so executed, shall be  deemed to
be an original. Such counterparts shall, together, constitute and be one and the
same instrument.

            20. Entire Agreement.  This  Agreement  shall  constitute the entire
understanding  and agreement  between the parties hereto and shall supersede any
and all letters of intent,  whether  written or oral,  pertaining to the subject
matter of this Agreement.

<PAGE>

            IN WITNESS  WHEREOF,  the parties  have caused this  Agreement to be
executed by their duly authorized officers on the date first appearing above.

                                   OSI HOLDINGS CORP.

                                   By:    /s/ David B. Kreiss
                                       ---------------------------

                                       Name:  David B. Kreiss
                                       Title: President

                                   MDC MANAGEMENT COMPANY III, L.P.,
                                   a California limited partnership

                                   By:    /s/ David E. King
                                       ---------------------------
                                       General Partner

<PAGE>

                              ASSIGNMENT AGREEMENT

     This  ASSIGNMENT  AGREEMENT  (this  "Agreement"),  dated as of December 10,
1999, is by and between Madison Dearborn  Partners,  Inc.  ("MDP"),  Outsourcing
Solutions Inc.  (f/k/a  Outsourcing  Holdings  Corp.) ("OSI") and MDC Management
Company III, L.P. ("MDC").

        Reference  is  made  to the  Advisory  Services  Agreement  dated  as of
September 21, 1995 (the "Advisory Services  Agreement"),  by and between OSI and
MDC.  Capitalized  terms not otherwise defined in this Instrument shall have the
meanings given to such terms in the Advisory Services Agreement.

        In accordance with its rights under Section 12 of the Advisory  Services
Agreement,  MDC  wishes to (i)  assign  all of its  rights  in, to and under the
Advisory  Services  Agreement  to MDP and (ii)  designate  MDP as MDC  under the
Advisory Services Agreement.

        NOW,  THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency of which is hereby acknowledged,  the parties hereto hereby covenant
and agree as follows:

1.       Assignment and Assumption.

               (a)  MDC  hereby  assigns  to MDP  all of  its  obligations  with
                    respect to and  arising  from the  performance  of  advisory
                    services  to OSI after the date hereof and all of its rights
                    under the Advisory Services  Agreement,  including,  without
                    limitation,  MDC's  right to  receive  the fee set  forth in
                    Section   3.2   of   the   Advisory   Services    Agreement.
                    Notwithstanding  the foregoing,  MDC's  obligation under the
                    confidentiality  provisions  set  forth in  Section 9 of the
                    Advisory  Services  Agreement  shall  expire  on  the  first
                    anniversary   of  the  date  hereof  with   respect  to  OSI
                    information obtained prior to the date hereof.

               (b)  MDP hereby accepts the foregoing  assignment of MDC's rights
                    and  hereby  assumes  all of MDC's  obligations  to  perform
                    advisory  services  under the  Advisory  Services  Agreement
                    after the date hereof and assumes  all  obligations  arising
                    from the performance of such services.

               (c)  OSI hereby consents to MDC's  assignment of its rights under
                    the Advisory  Services  Agreement  to MDP and accepts  MDP's
                    assumption of the  obligation to perform  advisory  services
                    under the Advisory Services Agreement after the date hereof.
                    Notwithstanding   anything  to  the  contrary  contained  in
                    Section 12 of the Advisory  Services  Agreement,  OSI hereby
                    agrees that after MDC's  assignment  of its rights under the
                    Advisory Services Agreement to MDP, MDC shall be relieved of
                    all  of  its   obligations   under  the  Advisory   Services
                    Agreement.

2.      OSI hereby represents and warrants to MDP and MDC as follows:

               (a)  OSI has full power and authority to execute and deliver this
                    Agreement  and to perform  its  obligations  hereunder.  The
                    execution, delivery and performance of this Agreement by OSI
                    has  been  duly  authorized  and  approved  by its  Board of
                    Directors and no other  corporate  action on the part of OSI
                    is  necessary  to  authorize  the  execution,  delivery  and
                    performance  of this  Agreement by OSI.  This  Agreement has
                    been duly  executed and  delivered by OSI and,  assuming the
                    due execution and delivery of this Agreement by MDP and MDC,
                    is a valid and binding obligation of OSI enforceable against
                    OSI in accordance with its terms.

               (b)  The  execution  and  delivery of this  Agreement by OSI will
                    not:  (1)  violate  any  provision  of  the  Certificate  of
                    Incorporation or By-Laws of OSI or the comparable  governing
                    documents  of any  of  its  Subsidiaries;  (2)  violate  any
                    statute, ordinance, rule, regulation, order or decree of any
                    court or of any governmental or regulatory  body,  agency or
                    authority applicable to OSI or any of its Subsidiaries or by
                    which any of their  respective  properties  or assets may be
                    bound;  (3) require any filing with,  or permit,  consent or
                    approval  of, or the giving of any  notice to, or  obtaining
                    any new or  additional  licenses  from any  governmental  or
                    regulatory body, agency or authority;  and (4) except as set
                    forth in Section 3.01(d) of the Company's disclosure letter,
                    result  in  a  violation  or  breach  of,   conflict   with,
                    constitute  (with or without  due notice or lapse of time or
                    both) a  material  default  (or  give  rise to any  right of
                    termination,  cancellation,  payment or acceleration) under,
                    or result in the creation of any encumbrance upon any of the
                    properties  or  assets  of OSI  or  any of its  Subsidiaries
                    under,  any of the terms,  conditions  or  provisions of any
                    license,  franchise,  permit,  agreement,  lease,  or  other
                    instrument  or  obligation  to  which  OSI  or  any  of  its
                    Subsidiaries  is a  party,  or by  which  it or any of their
                    respective properties or assets are bound or subject.

               (c)  OSI and MDC have each fully performed all of its obligations
                    under the Advisory Services Agreement to date and neither is
                    in breach of such agreement.

3.      MDC does hereby represent and warrant to MDP and OSI as follows:

               (a)  MDC has full power and authority to execute and deliver this
                    Agreement  and to perform  its  obligations  hereunder.  The
                    execution, delivery and performance of this Agreement by MDC
                    has been  duly  authorized  by MDC and no other  partnership
                    action  on the part of MDC is  necessary  to  authorize  the
                    execution,  delivery and  performance  of this  Agreement by
                    MDC. This  Agreement has been duly executed and delivered by
                    MDC and,  assuming  the due  execution  and delivery of this
                    Agreement by MDP and OSI, is a valid and binding  obligation
                    of MDC enforceable against MDC in accordance with its terms.

               (b)  The  execution  and  delivery of this  Agreement by MDC will
                    not: (1) violate any provision of the Certificate of Limited
                    Partnership  or By-Laws of MDC;  or (2)  require  any filing
                    with,  or permit,  consent or approval  of, or the giving of
                    any notice to, or obtaining any new or  additional  licenses
                    from  any  governmental  or  regulatory   body,   agency  or
                    authority.

               (c)  MDC and OSI have each fully performed all of its obligations
                    under the Advisory Services Agreement to date and neither is
                    in breach of such agreement.

4.      MDP represents and warrants to MDC and OSI  as follows:

               (a)  MDP has all  requisite  partnership  power and  authority to
                    execute  and  deliver  this  Agreement  and to  perform  its
                    obligations   hereunder.    The   execution   delivery   and
                    performance   of  this   Agreement  by  MDP  has  been  duly
                    authorized  by MDP.  No other  action on the part of MDP (or
                    its  partners)  is necessary  to  authorize  the  execution,
                    delivery and  performance  of this  Agreement  by MDP.  This
                    Agreement  has been duly  executed and  delivered by MDP and
                    assuming the due execution and delivery of this Agreement by
                    OSI and  MDC,  is a valid  and  binding  obligation  of MDP,
                    enforceable against MDP in accordance with its terms.

               (b)  The  execution  and  delivery of this  Agreement by MDP will
                    not: (1) violate any provision of the Certificate of Limited
                    Partnership  or By-Laws of MDP;  or (2)  require  any filing
                    with,  or permit,  consent or approval  of, or the giving of
                    any notice to, or obtaining any new or  additional  licenses
                    from  any  governmental  or  regulatory   body,   agency  or
                    authority.

5.             This Agreement is executed and delivered  pursuant to Sections 18
               ("Modifications  or Amendments")  and 12  ("Assignments")  of the
               Advisory Services Agreement. From the date hereof, all references
               to MDC in the Advisory  Services  Agreement shall be deemed to be
               references to MDP.

6.      The first sentence of Section 3.2 shall be deleted and replaced with the
  following:

                      As  compensation  to MDP for its  management  and advisory
               services  to  the  Company  and  its   subsidiaries   under  this
               Agreement, the Company, on behalf of itself and its subsidiaries,
               agrees to pay MDP a fee in the  amount of five  hundred  thousand
               dollars ($500,000) per year.

1.      Section 11.2 of the Advisory Services Agreement shall be amended to read
  as follows:

                      11.2  All  other  notices,   demands,  and  communications
               required or permitted  hereunder shall be in writing and shall be
               delivered  personally to the  respective  representatives  of the
               Company and MDP set forth below or shall be mailed by  registered
               mail, postage prepaid, return receipt requested. Notices, demands
               and communications hereunder shall be effective: (i) if delivered
               personally,  on  delivery;  or (ii) if mailed,  forty-eight  (48)
               hours after deposit  thereof in the United States mail  addressed
               to the party to whom such notice,  demand,  or  communication  is
               given. Until changed by written notice, all such notices, demands
               and communication shall be addressed as follows:

                      If to the Company:    Outsourcing Solutions Inc.
                                            390 South Woods Mill Road
                                            Suite 350
                                            Chesterfield, Missouri 63017
                                            Attention:    Eric Fencl, Esq.
                                                          General Counsel

                                            Phone:        (314) 576-0022
                                            Fax:          (314) 576-1867

                      If to MDP:            Madison Dearborn Partners, Inc.
                                            Suite 3800
                                            Three First National Plaza
                                            Chicago, IL 60602
                                            Attention:    Timothy Hurd
                                            Phone:        (312) 895-1170
                                            Fax:          (312) 895-1156

                                            with a copy to:

                                            Kirkland & Ellis
                                            200 E. Randolph
                                            Chicago, IL 60601
                                            Attention:    Michael H. Kerr, P.C.
                                            Phone:        (312) 861-2000
                                            Fax:          (312) 861-2200

1.             This Agreement may be executed in one or more  counterparts,  all
               of which  shall be  considered  one and the same  Agreement,  and
               shall become effective when one or more of such counterparts have
               been  signed by each of the parties  and  delivered  to the other
               party.

1.             This  Agreement  shall be governed by,  performed,  construed and
               enforced  in  accordance  with the laws of the State of New York,
               without  giving  effect to any choice of law or  conflict  of law
               rules  or  provisions  (whether  of the  State of New York or any
               other  jurisdiction) that would cause the application of the laws
               of any jurisdiction other than the State of New York.

<PAGE>

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

                                    MADISON DEARBORN PARTNERS, INC.

                                    By: /s/ Paul R. Wood
                                        ----------------------------------------
                                    Its:

                                    MDC MANAGEMENT COMPANY III, L.P.

                                    By: /s/
                                        ----------------------------------------

                                    Its:

                                    OUTSOURCING SOLUTIONS INC.

                                    By: /s/ Eric R. Fencl
                                        ----------------------------------------

                                    Its:================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                          Dated as of December 10, 1999

                                      among

                           OUTSOURCING SOLUTIONS INC.,
                             a Delaware corporation,

                           the Purchasers named herein

                                       AND

                          certain other parties hereto

         Relating to 5,920,474.15 Shares of Common Stock, $.01 Par Value

================================================================================

<PAGE>

               THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is  made and
entered  into as of December  10,  1999,  among  Outsourcing  Solutions  Inc., a
Delaware  corporation  (the  "Company"),  Madison Dearborn Capital Partners III,
L.P.  ("MDCP"),  Madison Dearborn Special Equity III, L.P.  ("MDSE") and Special
Advisers Fund I, L.L.C.  ("SAF" and collectively with MDCP and MDSE, the "Equity
Investor") and Ares Leveraged  Investment Fund, L.P., Ares Leveraged  Investment
Fund II, L.P., DB Capital Investors,  L.P., First Union Investors,  Inc., Abbott
Capital 1330 Investors II, L.P.,  Abbott Capital  Private Equity Fund III, L.P.,
BNY Partners Fund,  L.L.C.,  Heller Financial,  Inc.,  Magnetite Asset Investors
L.L.C., FBR Financial Fund II, L.P. and Harvest Opportunity Partners, L.P. (each
a "Purchaser" and, collectively, the "Purchasers").

               This Agreement is made pursuant to the Purchase Agreement,  dated
as of December 10, 1999,  among the Company and certain of the  Purchasers  (the
"Purchase Agreement"),  relating to the sale by the Company to the Purchasers of
an  aggregate  of  (i)  25,000  shares  of  the  Company's  Class  A 14%  Senior
Mandatorily  Redeemable  Preferred Stock (the "Class A Senior Preferred Stock"),
(ii) 75,000 shares of the Company's  Class B 14% Senior  Mandatorily  Redeemable
Preferred  Stock (the "Class B Senior  Preferred  Stock",  and together with the
Class A  Senior  Preferred  Stock,  the  "Senior  Preferred  Stock")  and  (iii)
596,913.07 shares of the Company's Common Stock (as defined herein) (such shares
of Common  Stock,  together  with the Senior  Preferred  Stock,  the  "Purchased
Securities").  In order to induce  the  Purchasers  to enter  into the  Purchase
Agreement  and/or to accept an assignment of the right to purchase  Common Stock
pursuant to the Recapitalization Agreement, the Company has agreed to provide to
the Holders (as defined herein) the registration rights and other rights for the
Registrable  Securities  (as defined  herein) set forth in this  Agreement.  The
execution of this Agreement is a condition to the  obligations of the Purchasers
to purchase the Purchased Securities under the Purchase Agreement.

               In  consideration  of the foregoing,  the parties hereto agree as
        follows:

               1.  Definitions.  As  used   in  this  Agreement,  the  following
        capitalized defined termsshall have the following meanings:

               "Advice" shall have the meaning ascribed to that term in the last
        paragraph of Section 4.

               "Affiliate"  means, with respect to any specified Person: (i) any
        other Person  directly or  indirectly  controlling  or  controlled by or
        under direct or indirect common control with such specified Person; (ii)
        any other Person that owns, directly or indirectly,  10% or more of such
        specified  Person's Capital Stock; or (iii) any other Person 10% or more
        of the Voting Stock of which is  beneficially  owned or held directly or
        indirectly  by  such  specified   Person.   For  the  purposes  of  this
        definition,  "control"  when used with respect to any  specified  Person
        means the power to direct the  management  and  policies of such Person,
        directly or indirectly,  whether through ownership of voting securities,
        by contract or otherwise;  and the terms  "controlling" and "controlled"
        have  meanings  correlative  to the  foregoing.  With  respect  to  each
        Purchaser,  an Affiliate  shall also include,  without  limitation,  any
        Person  managed by, or  controlling  or under  common  control with such
        Purchaser  or any of its  Affiliates.  Notwithstanding  anything  to the
        contrary  contained  herein,  (x) no  portfolio  company of MDCP nor any
        portfolio  company of a fund managed by or affiliated with MDCP shall be
        deemed an  Affiliate of the Company and (y) no Purchaser or any of their
        respective Affiliates shall be deemed an Affiliate of the Company.

               "Agreement"  shall have the meaning  ascribed to that term in the
        preamble hereto.

               "Black Out Period"  shall have the meaning  ascribed to that term
        in Section 2.1.

               "Board of  Directors"  shall mean the Board of  Directors  of the
        Company or any authorized committee of such Board of Directors.

               "Business Day" shall mean a day that is not a Legal Holiday.

               "Capital  Stock" shall mean,  (i) with respect to any Person that
        is a corporation,  corporate stock, (ii) with respect to any association
        or business entity,  any and all shares,  interests,  participations  or
        other  equivalents  (however  designated  and  whether or not voting) of
        corporate  stock,  including  each class of common  stock and  preferred
        stock of such  Person;  (iii) with  respect to any Person  that is not a
        corporation,  any  and  all  partnership,  membership  or  other  equity
        interests  of such  Person;  and (iv) any  rights,  warrants  or options
        exchangeable for or convertible into any of the foregoing.

               "Certificate  of  Designation"  shall  mean  the  Certificate  of
        Designation for the Senior Preferred Stock.

               "Change of Control" shall have the meaning  ascribed to that term
        in the Certificate of Designation.

               "Class A Senior  Preferred Stock" shall have the meaning ascribed
        to that term in the preamble hereto.

               "Class B Senior  Preferred Stock" shall have the meaning ascribed
        to that term in the preamble hereto.

               "Common  Stock"  shall mean the  Company's  $.01 par value common
        stock of any class.

               "Company"  shall have the  meaning  ascribed  to that term in the
        preamble hereto and shall also include the Company's successors.

               "Demand" shall have the meaning  ascribed to that term in Section
        2.1.

               "Demand  Registration"  shall have the  meaning  ascribed to that
        term in Section 2.1.

               "Effectiveness  Period"  shall have the meaning  ascribed to that
        term in Section 2.1.

               "Equity Investor" shall have the meaning ascribed to that term in
        the preamble.

               "Equity  Investor Shares" shall mean (a) the Common Stock held by
        the  Equity  Investor  or its  designees  (including  all  Common  Stock
        purchased pursuant to the Recapitalization  Agreement),  whether held by
        any of them or any  subsequent  assignee or transferee and (b) any other
        securities  issued or issuable  with  respect to or in exchange for such
        Common  Stock by way of stock  dividend or stock split or in  connection
        with a combination of shares, recapitalization, merger, consolidation or
        other reorganization or otherwise.

               "Exchange Act" shall mean the Securities Exchange Act of 1934, as
        amended,   and  the  rules  and  regulations   promulgated  by  the  SEC
        thereunder.

               "Holder"  shall  mean  each  of the  Purchasers  and  the  Equity
        Investor,  for so long as the Purchasers or the Equity  Investor own any
        Registrable  Securities,  and their respective  successors,  assigns and
        direct  and  indirect   transferees  who  become  registered  owners  of
        Registrable Securities.

               "Initial  Public Equity  Offering"  means a primary  underwritten
        public  offering (but excluding any offering  pursuant to Form S-8 under
        the Securities Act or any other publicly registered offering pursuant to
        the  Securities  Act pertaining to an issuance of shares of Common Stock
        or securities  exercisable  therefor  under any benefit  plan,  employee
        compensation  plan,  or  employee or director  stock  purchase  plan) of
        Common  Stock  of the  Company  pursuant  to an  effective  registration
        statement under the Securities Act.

               "Issue Date" means December 10, 1999.

               "Legal Holiday" shall mean a Saturday, a Sunday or a day on which
        banking  institutions  in The City of New York or at a place of  payment
        are authorized by law, regulation or executive order to remain closed.

               "Lock Up Period" shall have the meaning  ascribed to that term in
        Section 2.1.

               "MDCP"  shall  have  the  meaning  ascribed  to that  term in the
        preamble hereto.

               "MDSE"  shall  have  the  meaning  ascribed  to that  term in the
        preamble hereto.

               "Person"  shall  mean an  individual,  corporation,  partnership,
        limited  liability  company,  joint  venture,  association,  joint-stock
        company, trust,  unincorporated  organization or government or agency or
        political subdivision thereof.

               "Postponement  Period"  shall have the  meaning  ascribed to that
        term in Section 2.1.

               "Preferred  Stock"  means,  with  respect to any Person,  Capital
        Stock of any class or classes (however  designated) of such Person which
        is preferred as to the payment of dividends or  distributions,  or as to
        the distribution of assets upon any voluntary or involuntary liquidation
        or dissolution of such Person,  over Capital Stock of any other class of
        such Person.  With respect to the Company,  the term  "Preferred  Stock"
        shall include the Senior Preferred Stock.

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

               "Purchase Agreement" shall have the meaning ascribed to that term
        in the preamble hereto.

               "Purchased  Securities"  shall have the meaning  ascribed to that
        term in the preamble hereto.

               "Purchasers"  shall have the meaning ascribed to that term in the
        preamble hereto.

               "Purchaser Holder" shall mean each of the Purchasers, for so long
        as the Purchasers own any Registrable Securities,  and their successors,
        assigns and direct and indirect transferees who become registered owners
        of Registrable Securities.

               "Qualifying  IPO" shall mean an Initial  Public  Equity  Offering
        generating  aggregate  gross  proceeds  to the Company of at least $50.0
        million.

               "Recapitalization    Agreement"    means   that   certain   Stock
        Subscription and Redemption  Agreement,  dated as of October 8, 1999, by
        and among MDCP and the other  parties  thereto,  as may be amended  from
        time to time.

               "Registrable Securities" shall mean any of (i) the Shares or (ii)
        the Equity Investor Shares. As to any particular Registrable Securities,
        once issued such  securities  shall cease to be  Registrable  Securities
        when  (a) a  Registration  Statement  with  respect  to the sale of such
        securities  by the Holder  thereof  shall have been  declared  effective
        under the Securities Act and such securities shall have been disposed of
        by such Holder in accordance with such Registration Statement,  (b) such
        securities have been  distributed to the public pursuant to Rule 144 (or
        any successor provision)  promulgated under the Securities Act, (c) such
        securities  shall have been otherwise  transferred and new  certificates
        for them not bearing a legend  restricting  further  transfer shall have
        been  delivered  by the  Company  and  subsequent  disposition  of  such
        securities  shall not require  registration or  qualification  under the
        Securities  Act or any  similar  state  law  then in  force  or (d) such
        securities shall have ceased to be outstanding.

               "Registration  Expenses" shall mean all expenses  incident to the
        Company's  performance of or compliance with this Agreement,  including,
        without limitation,  all SEC and stock exchange or National  Association
        of Securities Dealers,  Inc.  registration and filing fees and expenses,
        fees  and  expenses  of  compliance  with  securities  or Blue  Sky laws
        (including,   without  limitation,  in  the  event  of  an  underwritten
        offering,   reasonable  fees  and   disbursements  of  counsel  for  the
        underwriters in connection with Blue Sky qualifications,  if any, of the
        Registrable   Securities),   rating  agency  fees,   printing  expenses,
        messenger,  telephone and delivery  expenses,  fees and disbursements of
        counsel   for  the  Company  and  all   independent   certified   public
        accountants, and, in the event of an underwritten offering, the fees and
        disbursements of underwriters  customarily paid by issuers or sellers of
        securities  (but  not  including  (i)  any  underwriting   discounts  or
        commissions  or  transfer  taxes,  if any,  attributable  to the sale of
        Registrable Securities by Holders of such Registrable Securities or (ii)
        fees and expenses of counsel and/or experts for the Holders).

               "Registration Statement" shall mean any registration statement of
        the Company which covers any of the Registrable  Securities  pursuant to
        the provisions of this  Agreement and all amendments and  supplements to
        any such Registration Statement, including post-effective amendments, in
        each case  including  the  Prospectus  contained  therein,  all exhibits
        thereto and all material incorporated by reference therein.

               "Requisite Shares" shall mean a number of Registrable  Securities
        equivalent to not less than 35% of the Registrable Securities (excluding
        Registrable  Securities which are Equity Investor Shares) outstanding as
        of any date of determination.

               "Rule 144" shall mean Rule 144 under the  Securities  Act (or any
        successor provision), as it may be amended from time to time.

               "Rule 144A" shall mean Rule 144A under the Securities Act (or any
        successor provision), as it may be amended from time to time.

               "SAF" shall have the meaning ascribed in the preamble hereto.

               "SEC" shall mean the Securities and Exchange Commission,  as from
        time to time  constituted,  created under the Exchange Act or, if at any
        time  after the  execution  of this  Agreement  such  Commission  is not
        existing and performing the duties now assigned to it under the Exchange
        Act, the body performing such duties at such time.

               "Securities  Act"  shall  mean the  Securities  Act of  1933,  as
        amended,   and  the  rules  and  regulations   promulgated  by  the  SEC
        thereunder.

               "Senior  Preferred Stock" shall have the meaning ascribed to that
        term in the preamble hereto.

               "Shares"  shall mean (a) the Common Stock held by the  Purchasers
        (including  all Purchased  Securities and all other Common Stock sold to
        the Purchasers  pursuant to the Assignment and Stock Purchase  Agreement
        dated  as of the  date  hereof),  whether  held  by any of  them  or any
        subsequent assignee or transferee and (b) any other securities issued or
        issuable  with respect to or in exchange for such Common Stock by way of
        stock  dividend or stock split or in connection  with a  combination  of
        shares, recapitalization,  merger, consolidation or other reorganization
        or otherwise.

               "Stockholders  Agreement" shall mean the  Stockholders  Agreement
        dated the date  hereof by and among the  Company,  the Equity  Investor,
        certain   stockholders,   optionholders  and   warrantholders   and  the
        Purchasers.

               "Voting  Stock" shall mean any class or classes of Capital  Stock
        pursuant to which the holders  thereof  have the  general  voting  power
        under ordinary  circumstances  to elect at least a majority of the Board
        of  Directors,  managers  or  trustees  of any Person  (irrespective  of
        whether or not, at the time,  stock of any other class or classes  shall
        have,  or might have,  voting  power by reason of the  happening  of any
        contingency).

               2.  Registration Rights and Other Rights of the Holders.

               2.1. Demand Registration. (a) Request  for  Registration.  At any
time (i) the Equity  Investor may make an unlimited  number of written  requests
(each a "Demand") for  registration  under the Securities Act of its Registrable
Securities  (a  "Demand  Registration")  and (ii) on or  after  the  third  year
anniversary  of  the  Issue  Date,  Purchasers  owning,  individually  or in the
aggregate, at least the Requisite Shares may make up to two Demands for a Demand
Registration.  Any such Demand will specify the number of Registrable Securities
proposed to be sold and will also  specify the  intended  method of  disposition
thereof.  Subject to the other provisions of this Section 2.1, the Company shall
give written  notice of such Demand within 10 days after the receipt  thereof to
all other  Holders.  Within 30 days after  receipt of such notice by any Holder,
such Holder may request in writing that its  Registrable  Securities be included
in such  registration  and the Company shall include in the Demand  Registration
the  Registrable  Securities  of any  such  selling  Holder  requested  to be so
included.  Each such request by such other  selling  Holders  shall  specify the
number of Registrable  Securities proposed to be sold and the intended method of
disposition thereof.  Upon a Demand, the Company will (i) prepare,  file and use
its commercially  reasonable efforts to cause to become effective within 90 days
of such  Demand a  Registration  Statement  in  respect  of all the  Registrable
Securities  which Holders request for inclusion  therein;  provided that if such
Demand  occurs  during a Black Out  Period or a period  (not to exceed 180 days)
during which the Company is  prohibited  or  restricted  from issuing or selling
Common Stock pursuant to any underwriting or purchase  agreement  relating to an
underwritten  public offering of Common Stock or securities  convertible into or
exchangeable for Common Stock under Rule 144A or registered under the Securities
Act  or  any  agreement  with  a  securityholder   of  the  Company   exercising
registration  rights (a "Lock Up Period"),  the Company shall not be required to
notify the Holders of such Demand or file such  Registration  Statement prior to
the end of the Black Out Period or Lock Up Period,  as the case may be, in which
event,  the Company will use its commercially  reasonable  efforts to cause such
Registration  Statement to become  effective no later than 90 days after the end
of the Black Out  Period or Lock Up  Period,  as the case may be,  and (ii) keep
such  Registration  Statement  effective  for the  shorter  of (a) 180 days (the
"Effectiveness  Period")  and (b) such period of time as all of the  Registrable
Securities  included in such  Registration  Statement have been sold thereunder.
Notwithstanding  anything set forth in the immediately  preceding sentence,  the
Company may (I) postpone the filing  period,  suspend the  effectiveness  of any
registration,  suspend  the use of any  Prospectus  and shall not be required to
amend or supplement the Registration  Statement,  any related  Prospectus or any
document incorporated therein by reference (other than an effective registration
statement being used for an underwritten  offering) in the event that, and for a
period,  in the case of any  particular  Demand  Registration,  not to exceed an
aggregate of 90 days ("Black Out Period") if (i) an event or circumstance occurs
as a result of which the Registration  Statement,  any related Prospectus or any
document  incorporated  therein by  reference  as then  amended or  supplemented
would,  in the Company's good faith judgment,  contain an untrue  statement of a
material  fact or omit to state a material  fact  necessary in order to make the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading, and (ii) the Company determines in its good faith judgment
that (A) the disclosure of such event at such time would have a material adverse
effect on the  business,  operations  or  prospects  of the  Company  or (B) the
disclosure  otherwise  relates to a material  business  transaction or any other
material matter, which has not yet been publicly disclosed;  provided,  further,
that,  if the  effectiveness  of any  Registration  Statement  is suspended as a
result of a Black Out Period, the Effectiveness  Period shall be extended by the
number of days in any Black Out  Period and (II) at any time prior to an Initial
Public  Equity  Offering  by the  Company,  postpone  the  filing of one  Demand
Registration,  by giving written notice thereof to all Holders, for a period not
to exceed an aggregate of 180 days ("Postponement  Period");  provided,  that at
the end of the  Postponement  Period  the  Company  will  use  its  commercially
reasonable  efforts  to  cause a  Registration  Statement  with  respect  to all
Registrable  Securities  of  Holders  electing  to  participate  in such  Demand
Registration  to  become   effective  within  90  days  after  the  end  of  the
Postponement Period.

               In the event of the  occurrence of any Black Out Period during an
Effectiveness  Period or Lock Up Period,  the Company will  promptly  notify the
Holders of Registrable Securities thereof in writing.

               (b)  Effective  Registration.  Except  as  specifically  provided
herein,  the Company is only required to effect two Demand  Registrations  under
Section  2.1(a)(ii)  this  Agreement  (whether  or not  all of  the  Holders  of
Registrable  Securities elect to participate in such Demand  Registration on the
basis set forth herein). A registration will not be deemed to have been effected
as a Demand Registration,  and thereby satisfy the obligation hereunder,  unless
it has been  declared  effective  by the SEC and the Company has complied in all
material  respects  with its  obligations  under  this  Agreement  with  respect
thereto;  provided  that if,  after it has become  effective,  the  offering  of
Registrable  Securities  pursuant to such registration is or becomes the subject
of any stop order,  injunction or other order or  requirement  of the SEC or any
other  governmental  or  administrative  agency,  or if any  court  prevents  or
otherwise limits the sale of Registrable Securities pursuant to the registration
(for any reason  other than the act or  omissions of the Holders) for the period
of time contemplated  hereby,  such registration will be deemed not to have been
effected.  If (i) a  registration  requested  pursuant to Section  2.1(a)(ii) is
deemed not to have been effected or (ii) the registration  requested pursuant to
Section 2.1(a)(ii) does not remain effective for the Effectiveness  Period, then
the Company shall not be deemed to have effected a Demand  Registration  and its
obligations  pursuant  to  Section  2.1(a)(ii)  will  continue.  The  Holders of
Registrable  Securities  shall be  permitted  to withdraw all or any part of the
Registrable  Securities  from a Demand  Registration  at any  time  prior to the
effective  date of  such  Demand  Registration.  If at any  time a  Registration
Statement is filed pursuant to a Demand  Registration under Section  2.1(a)(ii),
and subsequently a sufficient number of the Registrable Securities are withdrawn
from the Demand Registration so that such Registration  Statement does not cover
that  number  of  Registrable  Securities  at  least  equal to  one-half  of the
Registrable Securities of the Purchaser Holders outstanding as of such date, the
Holders  who have not  withdrawn  their  Registrable  Securities  shall have the
opportunity  to include an additional  number of  Registrable  Securities in the
Demand  Registration so that such  Registration  Statement covers that number of
Registrable  Securities at least equal to one-half of the Registrable Securities
of the Purchaser Holders outstanding as of such date. If an additional number of
Registrable  Securities  is  not so  included,  the  Company  may  withdraw  the
Registration Statement.  Such withdrawn Registration Statement will not count as
a Demand  Registration  and the Company shall continue to be obligated to effect
such  registration  pursuant to Section  2.1(a)(ii).  Except as set forth in the
last  sentence  of Section  2.1(c),  without  the prior  written  consent of the
Holders of the Requisite Shares no other  securityholder of the Company shall be
permitted  to include  their  securities  in a Demand  Registration  pursuant to
Section 2.1(a)(ii).

               (c) Priority in Demand Registrations  Pursuant to Section 2.1. If
a Demand  Registration  pursuant to this  Section 2.1  involves an  underwritten
offering and the lead managing  underwriter advises the Company in writing that,
in its view, the number of Registrable Securities requested by the Holders to be
included in such registration,  together with any other securities  permitted to
be included in such  registration  exceeds the number which, in the view of such
lead  managing  underwriter,  can  be  sold,  the  number  of  such  Registrable
Securities to be included in such registration shall be allocated pro rata among
all  requesting  Holders  on the basis of the  relative  number  of  Registrable
Securities  then  held  by each  such  Holder  (provided  that  any  Registrable
Securities  thereby  allocated  to any such Holder  that  exceed  such  Holder's
request  shall be  reallocated  among the remaining  requesting  Holders in like
manner). In the event that the number of Registrable  Securities requested to be
included in such  registration is less than the number which, in the view of the
lead  managing  underwriter,  can be  sold,  the  Company  may  include  in such
registration  the  Securities  the Company  proposes to sell up to the number of
Securities  that,  in the view of the  lead  managing  underwriter,  can be sold
without adversely affecting the success of the offering,  including the price at
which the Registrable Securities can be sold.

               (d)  Selection  of  Underwriter.  If the  Holders  so elect,  the
offering of Registrable Securities pursuant to a Demand Registration shall be in
the form of an underwritten  offering.  The Holders of a majority of Registrable
Securities  to be sold in such  Demand  Registration  shall  select  one or more
nationally recognized firms of investment bankers (to whom the Company shall not
have reasonably  objected) to act as the managing underwriter or underwriters in
connection with such offering and shall select any additional investment bankers
and managers to be used in connection with the offering.

               (e) Expenses.  The Company will pay all Registration  Expenses in
connection with the  registrations  requested  pursuant to Section 2.1(a).  Each
Holder shall pay all underwriting  discounts and commissions and transfer taxes,
if any,  relating  to the  sale or  disposition  of  such  Holder's  Registrable
Securities  pursuant to any registration  statement  requested  pursuant to this
Section 2.1.

               3.   [Intentionally Omitted]

               4.   Registration Procedures.

               In connection with the obligations of the Company with respect to
any  Registration  Statement  pursuant  to Section  2.1 hereof and  pursuant  to
Section 6 of the Stockholders Agreement, the Company shall:

               (a) A reasonable  period of time prior to the initial filing of a
          Registration  Statement or Prospectus and a reasonable  period of time
          prior to the filing of any amendment or supplement thereto, furnish to
          the   Holders  of  the   Registrable   Securities   included  in  such
          Registration Statement, and the managing underwriters,  if any, copies
          of all such documents  proposed to be filed,  which  documents  (other
          than those  incorporated  or deemed to be  incorporated  by reference)
          will be subject to the review of such Holders,  and such underwriters,
          if any, and use  reasonable  commercial  efforts to cause the officers
          and directors of the Company,  counsel to the Company and  independent
          certified  public  accountants  to the  Company  to  respond  to  such
          reasonable  inquiries  as shall be  necessary,  in the  opinion of the
          respective counsel to such Holders and such underwriters, to conduct a
          reasonable investigation within the meaning of the Securities Act. The
          Company  shall not file any such  Registration  Statement  or  related
          Prospectus  or any  amendments  or  supplements  thereto  to which the
          Holders of a majority of the Registrable  Securities  included in such
          Registration Statement shall reasonably object on a timely basis;

               (b)  Prepare  and file  with the SEC such  amendments,  including
          post-effective  amendments,  to each Registration  Statement as may be
          necessary to keep such Registration  Statement  continuously effective
          for the applicable time period required  hereunder;  cause the related
          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 comply with the  provisions of the Securities Act
          and the Exchange Act with respect to the disposition of all securities
          covered  by  such   Registration   Statement  during  such  period  in
          accordance  with the intended  methods of  disposition  by the sellers
          thereof set forth in such  Registration  Statement as so amended or in
          such Prospectus as so supplemented;

               (c) Notify the Holders of  Registrable  Securities to be sold and
          the managing underwriters,  if any, promptly, and (if requested by any
          such Person), confirm such notice in writing, (i)(A) when a Prospectus
          or any Prospectus  supplement or post-effective  amendment is proposed
          to be filed and (B) with  respect to a  Registration  Statement or any
          post-effective  amendment, when the same has become effective, (ii) of
          any  request  by the SEC or any other  Federal  or state  governmental
          authority for amendments or supplements to a Registration Statement or
          related  Prospectus  or  for  additional  information,  (iii)  of  the
          issuance  by the SEC,  any  state  securities  commission,  any  other
          governmental  agency  or  any  court  of  any  stop  order,  order  or
          injunction  suspending  or enjoining  the use of a  Prospectus  or the
          effectiveness  of a  Registration  Statement or the  initiation of any
          proceedings  for that  purpose,  (iv) of the receipt by the Company of
          any notification  with respect to the suspension of the  qualification
          or exemption from  qualification of any of the Registrable  Securities
          for sale in any jurisdiction,  or the initiation or threatening of any
          proceeding for such purpose,  and (v) of the happening of any event or
          information  becoming  known  that  makes  any  statement  made  in  a
          Registration  Statement or related  Prospectus  untrue in any material
          respect  or  that   requires   the  making  of  any  changes  in  such
          Registration  Statement  or  Prospectus  so  that,  in the  case  of a
          Registration  Statement, it will not contain any untrue statement of a
          material fact or omit to state any material fact required to be stated
          therein or necessary to make the statements  therein,  in light of the
          circumstances under which they were made, not misleading,  and that in
          the case of a Prospectus,  it will not contain any untrue statement of
          a material  fact or omit to state any  material  fact  required  to be
          stated therein or necessary to make the statements  therein,  in light
          of the circumstances under which they were made, not misleading;

               (d) Use its commercially reasonable efforts to avoid the issuance
          of or, if issued,  obtain the  withdrawal  of any order  enjoining  or
          suspending  the  use  of  a  Prospectus  or  the  effectiveness  of  a
          Registration  Statement  or  the  lifting  of  any  suspension  of the
          qualification  (or  exemption  from   qualification)  of  any  of  the
          Registrable  Securities  for  sale in any  jurisdiction  described  in
          Section 4(h), at the earliest practicable moment;

               (e) If requested by the lead managing  underwriters,  if any, (i)
          promptly  incorporate  in a Prospectus  supplement  or  post-effective
          amendment  such  information  as the  managing  underwriters,  if any,
          reasonably  believe  should  be  included  therein,  and (ii) make all
          required filings of such Prospectus  supplement or such post-effective
          amendment  under the Securities  Act as soon as practicable  after the
          Company has received notification of the matters to be incorporated in
          such  Prospectus  supplement or  post-effective  amendment;  provided,
          however,  that the Company shall not  be  required  to take any action
          pursuant to this Section 4(e) that  would,  in the  opinion of counsel
          for the Company, violate applicable law;

               (f) Upon written  request to the Company,  furnish to each Holder
          of  Registrable  Securities  to be  sold  pursuant  to a  Registration
          Statement and each managing  underwriter,  if any, without charge,  at
          least  one  conformed  copy of such  Registration  Statement  and each
          amendment thereto,  including financial statements and schedules,  all
          documents  incorporated  or  deemed  to  be  incorporated  therein  by
          reference,  and all exhibits to the extent requested  (including those
          previously   furnished  or  incorporated  by  reference)  as  soon  as
          practicable after the filing of such documents with the SEC;

               (g) Deliver to each Holder of  Registrable  Securities to be sold
          pursuant to a Registration  Statement,  and the underwriters,  if any,
          without charge, as many copies of the Prospectus  (including each form
          of  prospectus)  and each  amendment  or  supplement  thereto  as such
          persons reasonably request; and the Company hereby consents to the use
          of such Prospectus and each amendment or supplement thereto by each of
          the selling Holders of Registrable Securities and the underwriters, if
          any,  in  connection  with the  offering  and sale of the  Registrable
          Securities  covered by such Prospectus and any amendment or supplement
          thereto;

               (h) Prior to any public offering of Registrable  Securities,  use
          its  commercially   reasonable  efforts  to  register  or  qualify  or
          cooperate with the Holders of  Registrable  Securities to be sold, the
          underwriters,  if any, and their respective counsel in connection with
          the registration or qualification (or exemption from such registration
          or  qualification)  of such Registrable  Securities for offer and sale
          under the  securities  or Blue Sky laws of such  jurisdictions  as any
          such Holder or underwriter  reasonably requests in writing;  keep each
          such registration or qualification (or exemption  therefrom) effective
          during the period such  Registration  Statement is required to be kept
          effective  hereunder and do any and all other acts or things necessary
          or advisable to enable the  disposition in such  jurisdictions  of the
          Registrable   Securities   covered  by  the  applicable   Registration
          Statement;  provided,  however, that the Company shall not be required
          to (i) qualify  generally to do business in any jurisdiction  where it
          is not then so qualified  or (ii) take any action which would  subject
          it to general  service of process or to taxation  in any  jurisdiction
          where they are not so subject;

               (i) In  connection  with  any  sale or  transfer  of  Registrable
          Securities  that  will  result  in such  Securities  no  longer  being
          Registrable  Securities,  cooperate  with the Holders  thereof and the
          managing  underwriters,  if any, to facilitate the timely  preparation
          and delivery of certificates representing Registrable Securities to be
          sold, which  certificates  shall not bear any restrictive  legends and
          shall be in a form  eligible  for deposit  with The  Depository  Trust
          Company,  and to  enable  such  Registrable  Securities  to be in such
          denominations   and   registered   in  such  names  as  the   managing
          underwriters,  if any,  or such  Holders  may  request  at  least  two
          Business Days prior to any sale of Registrable Securities;

               (j) Upon the  occurrence  of any event  contemplated  by  Section
          4(c)(v),   as  promptly  as  practicable,   prepare  a  supplement  or
          amendment,  including, if appropriate,  a post-effective amendment, to
          each Registration  Statement or a supplement to the related Prospectus
          or any document  incorporated or deemed to be incorporated  therein by
          reference, and file any other required document so that, as thereafter
          delivered,  such Prospectus will not contain an untrue  statement of a
          material  fact or omit to state a material  fact required to be stated
          therein or necessary to make the statements  therein,  in light of the
          circumstances under which they were made, not misleading;

               (k)  Enter  into  such  agreements   (including  an  underwriting
          agreement in form, scope and substance as is customary in underwritten
          offerings)  and take all such other  reasonable  actions in connection
          therewith  (including  those  reasonably  requested  by  the  managing
          underwriters,   if  any)  in  order  to  expedite  or  facilitate  the
          disposition of such  Registrable  Securities,  and,  whether or not an
          underwriting  agreement  is  entered  into  and  whether  or  not  the
          registration   is  an   underwritten   registration:   (i)  make  such
          representations   and  warranties  to  the  underwriters  and  selling
          Holders,  if any,  with respect to the business of the Company and its
          subsidiaries  (including with respect to businesses or assets acquired
          or to be acquired  by any of them),  and the  Registration  Statement,
          Prospectus  and  documents,  if  any,  incorporated  or  deemed  to be
          incorporated by reference  therein,  in each case, in form,  substance
          and  scope as are  customarily  made by  issuers  to  underwriters  in
          underwritten  offerings,  and confirm the same if and when  requested;
          (ii) obtain  opinions  of counsel to the  Company and updates  thereof
          (which counsel and opinions (in form,  scope and  substance)  shall be
          reasonably satisfactory to the managing underwriters if any, addressed
          to each of the underwriters,  and selling Holders,  if any),  covering
          the matters  customarily covered in opinions requested in underwritten
          offerings  and such other  matters as may be  reasonably  requested by
          such  underwriters or selling  Holders;  (iii) use their  commercially
          reasonable  efforts to obtain  customary  "cold  comfort"  letters and
          updates thereof from the independent  certified public  accountants of
          the Company (and, if necessary, any other independent certified public
          accountants  of any  subsidiary  of  the  Company  or of any  business
          acquired by the Company for which  financial  statements and financial
          data  is,  or  is  required  to  be,  included  in  the   Registration
          Statement),  addressed  (where  reasonably  possible)  to  each of the
          underwriters  and  selling  Holders,  if any,  such  letters  to be in
          customary form and covering matters of the type customarily covered in
          "cold comfort" letters in connection with underwritten offerings; (iv)
          if an  underwriting  agreement is entered into, the same shall contain
          indemnification  provisions  and  procedures no less  favorable to the
          underwriters,  if any,  than  those set forth in  Section 5 hereof (or
          such  other  provisions  and  procedures  acceptable  to the  managing
          underwriters, if any); and (v) deliver such documents and certificates
          as may be reasonably requested by the managing  underwriters,  if any,
          to  evidence  the  continued  validity  of  the   representations  and
          warranties   made  pursuant  to  clause  (i)  above  and  to  evidence
          compliance with any customary conditions contained in the underwriting
          agreement or other agreement entered into by the Company;

               (l) Make  available  for  inspection by a  representative  of any
          underwriter  participating  in any  such  disposition  of  Registrable
          Securities,  and any attorney,  consultant  or accountant  retained by
          such selling  Holders or  underwriter,  at the offices where  normally
          kept,  during reasonable  business hours, all pertinent  financial and
          other records,  corporate  documents and properties of the Company and
          its  subsidiaries  (including  with respect to  businesses  and assets
          acquired  or to be acquired  to the extent  that such  information  is
          available to the Company), and cause the officers,  directors,  agents
          and  employees  of the Company and its  subsidiaries  (including  with
          respect to  businesses  and assets  acquired  or to be acquired to the
          extent that such  information  is  available to the Company) to supply
          all  information  in  each  case  reasonably  requested  by  any  such
          representative,  underwriter,  attorney,  consultant  or accountant in
          connection with such Registration Statement;  provided,  however, that
          such  Persons  shall first agree in writing  with the Company that any
          information  that is  reasonably  and in good faith  designated by the
          Company in writing as  confidential  at the time of  delivery  of such
          information  shall be kept  confidential  by such Persons,  unless (i)
          disclosure of such information is required by court or  administrative
          order  or  is  necessary   to  respond  to  inquiries  of   regulatory
          authorities,  (ii)  disclosure of such  information is required by law
          (including any disclosure  requirements pursuant to Federal securities
          laws in connection  with the filing of the  Registration  Statement or
          the use of any Prospectus),  (iii) such information  becomes generally
          available  to the  public  other than as a result of a  disclosure  or
          failure to  safeguard  such  information  by such  Person or (iv) such
          information  becomes available to such Person from a source other than
          the  Company  and its  subsidiaries  and such source is not bound by a
          confidentiality agreement;

               (m) Comply with all applicable  rules and  regulations of the SEC
          and  make  generally  available  to  their  securityholders   earnings
          statements   satisfying   the  provisions  of  Section  11(a)  of  the
          Securities Act and Rule 158 under the Securities Act, no later than 45
          days after the end of any 12-month period (or 90 days after the end of
          any 12-month period if such period is a fiscal year) (i) commencing at
          the end of any fiscal quarter in which Registrable Securities are sold
          to   underwriters   in  a  firm   commitment  or  reasonable   efforts
          underwritten  offering and (ii) if not sold to underwriters in such an
          offering,  commencing  on the first day of the  first  fiscal  quarter
          after the effective date of a Registration Statement,  which statement
          shall cover said period,  consistent with the requirements of Rule 158
          under the Securities Act; and

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

               The Company may require a Holder of Registrable  Securities to be
included in a Registration  Statement to furnish to the Company such information
regarding (i) the intended method of distribution of such Registrable Securities
(ii) such Holder and (iii) the Registrable  Securities held by such Holder as is
required by law to be disclosed in such  Registration  Statement and the Company
may exclude from such Registration  Statement the Registrable  Securities of any
Holder who unreasonably  fails to furnish such  information  within a reasonable
time after receiving such request.  The Company shall not be required to provide
indemnification  to any  underwriter or any other person relating to information
referred  to in  clauses  (i)  and  (ii)  provided  to the  Company  in  writing
specifically for inclusion in such Registration Statement.

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

               Each Holder of  Registrable  Securities  agrees by acquisition of
such Registrable Securities that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 4(c)(ii), 4(c)(iii),
4(c)(iv) or 4(c)(v) hereof, such Holder will forthwith  discontinue  disposition
of such  Registrable  Securities  covered  by  such  Registration  Statement  or
Prospectus  until such  Holder's  receipt of the copies of the  supplemented  or
amended  Prospectus  contemplated by Section 4(j) hereof, or until it is advised
in  writing  (the  "Advice")  by the  Company  that  the  use of the  applicable
Prospectus  may be resumed,  and, in either  case,  has  received  copies of any
additional  or  supplemental  filings  that are  incorporated  or  deemed  to be
incorporated by reference in such Prospectus. If the Company shall give any such
notice, the Effectiveness  Period shall be extended by the number of days during
such  period  from and  including  the date of the giving of such  notice to and
including the date when each Holder of  Registrable  Securities  covered by such
Registration Statement shall have received (x) the copies of the supplemented or
amended Prospectus  contemplated by Section 4(j) hereof or (y) the Advice,  and,
in either case, has received  copies of any additional or  supplemental  filings
that  are  incorporated  or  deemed  to be  incorporated  by  reference  in such
Prospectus.

               5.   Indemnification and Contribution.

               (a) The  Company  shall  indemnify and hold harmless each Holder,
each  underwriter  who  participates  in an offering of Registrable  Securities,
their  respective  Affiliates,  each  Person,  if any,  who controls any of such
parties  within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act and each of their respective directors, officers, employees and
agents, as follows:

               (i) from and against any and all loss,  liability,  claim, damage
          and expense whatsoever,  joint or several, as incurred, arising out of
          any untrue  statement or alleged  untrue  statement of a material fact
          contained in any  Registration  Statement (or any amendment  thereto),
          covering Registrable Securities,  including all documents incorporated
          therein by reference, or the omission or alleged omission therefrom of
          a material fact required to be stated therein or necessary to make the
          statements therein, in the light of the circumstances under which they
          were made,  not  misleading or arising out of any untrue  statement or
          alleged  untrue   statement  of  a  material  fact  contained  in  any
          Prospectus (or any amendment or supplement thereto) or the omission or
          alleged  omission  therefrom of a material fact  necessary in order to
          make the statements  therein,  in the light of the circumstances under
          which they were made, not misleading;

               (ii) from and against any and all loss, liability,  claim, damage
          and expense whatsoever,  joint or several, as incurred,  to the extent
          of the aggregate  amount paid in settlement of any  litigation  (other
          than  amounts  the  Holders  agree  to pay in any  written  settlement
          agreement),  or  any  investigation  or  proceeding  by any  court  or
          governmental agency or body, commenced or threatened,  or of any claim
          whatsoever  based upon any such untrue  statement or omission,  or any
          such  alleged  untrue  statement or omission,  if such  settlement  is
          effected with the prior written consent of the Company; and

               (iii)  from  and  against  any and all  expenses  whatsoever,  as
          incurred  (including  reasonable fees and disbursements of one counsel
          chosen  by  the  Holders  or any  underwriter  (except  to the  extent
          otherwise  expressly  provided in Section  5(c)  hereof)),  reasonably
          incurred  in   investigating,   preparing  or  defending  against  any
          litigation,  or  any  investigation  or  proceeding  by any  court  or
          governmental  agency or body,  commenced or  threatened,  or any claim
          whatsoever  based upon any such untrue  statement or omission,  or any
          such alleged untrue statement or omission, to the extent that any such
          expense is not paid  under  subparagraph  (i) or (ii) of this  Section
          5(a);

provided  that this  indemnity  does not apply to any  loss,  liability,  claim,
damage or expense to the extent  arising out of an untrue  statement or omission
or  alleged  untrue  statement  or  omission  (i) made in  reliance  upon and in
conformity with written information  furnished to the Company by a Holder or any
underwriter in writing  expressly for use in the Registration  Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto) or
(ii) contained in any preliminary  prospectus if such Holder or such underwriter
failed  to send or  deliver a copy of the  Prospectus  (in the form it was first
provided to such parties for confirmation of sales) to the Person asserting such
losses,  claims,  damages or  liabilities on or prior to the delivery of written
confirmation  of any sale of  securities  covered  thereby to such Person in any
case where such delivery is required by the Securities  Act and such  Prospectus
would have corrected such untrue statement or omission.  Any amounts advanced by
the Company to an  indemnified  party  pursuant to this Section 5 as a result of
such losses  shall be returned to the Company if it shall be finally  determined
by such a court in a judgment  not  subject to appeal or final  review that such
indemnified party was not entitled to indemnification by the Company.

               (b) By  accepting  the  benefits  of this Agreement,  each Holder
agrees,  severally and not jointly,  to indemnify and hold harmless the Company,
each underwriter who  participates in an offering of Registrable  Securities and
the other  selling  Holders  and each of their  respective  directors,  officers
(including each officer of the Company who signed the  Registration  Statement),
employees  and agents and each Person,  if any,  who  controls the Company,  any
underwriter  or any other selling Holder within the meaning of Section 15 of the
Securities  Act or Section 20 of the Exchange  Act, from and against any and all
loss, liability, claim, damage and expense whatsoever described in the indemnity
contained in Section 5(a) hereof,  as incurred,  but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions,  made in the
Registration  Statement (or any  amendment  thereto) or any  Prospectus  (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such selling Holder expressly for use in
the Registration  Statement (or any amendment  thereto),  or any such Prospectus
(or any amendment or supplement thereto). Notwithstanding the provisions of this
Section 5(b), a Holder of  Registrable  Securities  shall not be required to pay
any  indemnification in an amount in excess of the net proceeds received by such
Holder in the offering to which such Registration Statement relates.

               (c) Each indemnified party  shall  give  prompt  notice  to  each
indemnifying  party of any  action  commenced  against  it in  respect  of which
indemnity  may be sought  hereunder,  enclosing  a copy of all  papers  properly
served on such indemnified party, but failure to so notify an indemnifying party
shall not relieve such  indemnifying  party from any liability which it may have
other than on account of this indemnity  agreement.  An  indemnifying  party may
participate  at its  own  expense  in the  defense  of any  such  action.  If an
indemnifying  party so elects  within a  reasonable  time after  receipt of such
notice, such indemnifying party,  jointly with any other indemnifying party, may
assume the defense of such action with  counsel  chosen  thereby and approved by
the  indemnified  parties  defendant in such action;  provided  that if any such
indemnified party reasonably determines,  based on advice of counsel, that there
may be legal defenses  available to such  indemnified  party which are different
from or in  addition  to  those  available  to such  indemnifying  party or that
representation of such indemnifying  party and any indemnified party by the same
counsel would present a conflict of interest,  then such  indemnifying  party or
parties shall not be entitled to assume such defense.  If an indemnifying  party
is not  entitled to assume the defense of such action as a result of the proviso
to the preceding sentence, counsel for such indemnifying party shall be entitled
to  conduct  the  defense  of such  indemnifying  party  and  counsel  for  each
indemnified  party or parties  shall be  entitled to conduct the defense of such
indemnified party or parties. If an indemnifying party assumes the defense of an
action in accordance  with and as permitted by the provisions of this paragraph,
such indemnifying party shall not be liable for any fees and expenses of counsel
for the indemnified  parties incurred thereafter in connection with such action.
In no event shall the  indemnifying  party or parties be liable for the fees and
expenses of more than one counsel (in addition to any local  counsel),  separate
from its own counsel,  for all  indemnified  parties in connection  with any one
action or  separate  but  similar  or related  actions in the same  jurisdiction
arising out of the same general allegations or circumstances.

               (d) In order to provide for just and  equitable  contribution  in
circumstances  under  which any of the  indemnity  provisions  set forth in this
Section 5 is for any reason held to be  unavailable to the  indemnified  parties
although  applicable in accordance  with its terms,  the Company and the Holders
shall  contribute  to the aggregate  losses,  liabilities,  claims,  damages and
expenses of the nature  contemplated by such indemnity agreement incurred by the
Company  and  the  Holders,  as  incurred;  provided  that  notwithstanding  the
provisions of this Section 5(d), a Holder of Registrable Securities shall not be
required  to  contribute  any  amount in  excess of the  amount by which the net
proceeds  received  by such Holder in the  offering  to which such  Registration
Statement  relates  exceeds  the  amount of any  damages  that such  Holder  has
otherwise   been   required   to  pay  and  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 that was not guilty of such
fraudulent  misrepresentation.  As between  the Company  and the  Holders,  such
parties shall contribute to such aggregate losses, liabilities,  claims, damages
and  expenses of the nature  contemplated  by such  indemnity  agreement in such
proportion as shall be appropriate to reflect the relative fault of the Company,
on the one hand, and Holders,  on the other hand, with respect to the statements
or omissions which resulted in such loss,  liability,  claim, damage or expense,
or  action  in  respect  thereof,  as  well  as  any  other  relevant  equitable
considerations.  The relative fault of the Company,  on the one hand, and of the
Holders,  on the other hand,  shall be  determined  by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged  omission to state a material  fact  relates to  information
supplied by the Company,  on the one hand, or by or on behalf of the Holders, on
the other, and the parties'  relative intent,  knowledge,  access to information
and  opportunity to correct or prevent such  statement or omission.  The Company
and the Holders of the  Registrable  Securities  agree that it would not be just
and equitable if  contribution  pursuant to this Section 5 were to be determined
by pro rata  allocation or by any other method of allocation  that does not take
into account the relevant equitable considerations. For purposes of this Section
5, each Affiliate of each Holder, and each director,  officer,  employee,  agent
and Person,  if any, who controls a Holder or such Affiliate  within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same  rights  to  contribution  as such  Holder,  and each  director  of the
Company, each officer of the Company who signed the Registration Statement,  and
each Person,  if any, who controls the Company  within the meaning of Section 15
of the  Securities  Act or  Section 20 of the  Exchange  Act shall have the same
rights to contribution as the Company.

               (e) The indemnity and contribution  covenants  contained in  this
Section 5 shall remain operative and in full force and effect  regardless of (i)
any investigation  made by or on behalf of a Holder or any Person  controlling a
Holder,  (ii) any sale of any Registrable  Securities pursuant to this Agreement
and receipt by the Holders of the proceeds thereof,  or (iii) any termination of
this  Agreement  for any  reason,  including  after  the  initial  filing of the
Registration  Statement  to which these  indemnity  and  contribution  covenants
relate.

               6.   Rule 144A

               The Company shall use its commercially reasonable efforts to file
the reports required to be filed by it under the Securities Act and the Exchange
Act in a timely  manner  and,  if at any time it is not  required  to file  such
reports but in the past had been required to or did file such reports,  it will,
upon the request of any Holder or beneficial  owner of  Registrable  Securities,
make  available  other  information  as required by, and so long as necessary to
permit, sales of Registrable  Securities pursuant to Rule 144A.  Notwithstanding
the foregoing,  nothing in this Section 6 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act.

               7.   Underwritten Registrations

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

               8.   Miscellaneous

               (a)  Remedies.  In the event of  a  breach by the Company or by a
Holder of any of its  obligations  under  this  Agreement,  each  Holder and the
Company,  in addition to being  entitled to exercise all rights  granted by law,
including recovery of damages,  will be entitled to specific  performance of its
rights under this  Agreement.  The Company and each Holder  agrees that monetary
damages would not be adequate  compensation for any loss incurred by reason of a
breach of any of the provisions of this Agreement and each hereby further agrees
that,  in the event of any action for  specific  performance  in respect of such
breach, it shall waive the defense that a remedy at law would be adequate.

               (b) No Inconsistent  Agreements.  Neither  the  Company  nor  the
Equity  Investor will enter into any  agreement  that is  inconsistent  with the
rights  granted to the  Holders and  indemnified  persons in this  Agreement  or
otherwise  conflicts with the provisions hereof.  Without the written consent of
the Purchaser Holders of a majority of the outstanding  Shares held by Purchaser
Holders,  the Company and the Equity  Investor shall not grant to any Person any
rights which  conflict  with or are  inconsistent  with the  provisions  of this
Agreement;  it being  acknowledged  that the Company may grant  rights to Demand
Registrations without requiring that the Purchaser Holders be granted any rights
with  respect  thereto  (including  but not limited to  piggy-back  registration
rights) so long as the  Purchaser  Holders  are  treated in the same manner with
respect to such newly granted rights as the Equity Investor is treated.

               (c) Amendments  and Waivers.  The  provisions of this  Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  otherwise than with the prior written consent of MDCP and the
Holders  of  not  less  than  a  majority  of  the  then   outstanding   Shares.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof  with  respect  to a matter  that  relates  exclusively  to the rights of
Holders whose securities are being sold pursuant to a Registration Statement and
that does not directly or  indirectly  affect the rights of other Holders may be
given by Holders of a majority of the Registrable  Securities being sold by such
Holders pursuant to such Registration  Statement;  provided,  however,  that the
provisions of this sentence may not be amended,  modified or supplemented except
in  accordance  with  the  provisions  of the  immediately  preceding  sentence.
Notwithstanding the foregoing, no amendment, modification, supplement, waiver or
consent with respect to Section 5 shall be made or given otherwise than with the
prior written consent of each Holder or former Holder affected thereby.

               (d) Notices. All notices and other  communications  provided  for
herein  shall  be  made in  writing  by  hand-delivery,  next-day  air  courier,
certified first-class mail, return receipt requested, telex or telecopier:

               (i)     if to the Company, as provided in the Purchase Agreement,

               (ii)    if to the Equity Investor:

                       Madison Dearborn Capital Partners III, L.P.
                       Suite 3800, Three First National Plaza
                       Chicago, IL  60602
                       Attention:  Timothy M. Hurd

               (iii)   if to the Purchasers, as provided in the Purchase
        Agreement, or

               (iv)   if to any other  Person who is then the registered  Holder
        of Shares or  Registrable  Securities,  to the address of such Holder as
        it appears in the register therefor of the Company.

               Except  as  otherwise  provided  in  this  Agreement,   all  such
communications  shall be deemed to have been duly given: when delivered by hand,
if  personally  delivered;  one Business  Day after being timely  delivered to a
next-day  air courier;  five  Business  Days after being  deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed;  and when receipt is
acknowledged by the recipient's telecopier machine, if telecopied.

               (e) Successors and Assigns.  This Agreement shall  inure  to  the
benefit of and be binding upon the successors  and permitted  assigns of each of
the  parties  and shall inure to the benefit of each Holder of Shares and Equity
Investor Shares.  The Company may not assign any of its rights hereunder without
the prior written consent of each Holder of Shares and Equity  Investor  Shares;
provided  that a merger or  consolidation  of the Company  with  another  Person
pursuant to which the issuer or issuers of any  securities  issued to Holders of
Shares  and  Equity   Investor   Shares  in  connection   with  such  merger  or
consolidation  becomes obligated under this Agreement shall not be considered an
assignment.  Notwithstanding  the  foregoing,  no  successor  or assignee of the
Company  shall have any of the rights  granted under this  Agreement  until such
Person  shall  acknowledge  its rights  and  obligations  hereunder  by a signed
written statement of such person's acceptance of such rights and obligations. If
any transferee of any Holder shall acquire Shares and/or Equity  Investor Shares
in any manner,  whether by operation of law or otherwise,  such Shares or Equity
Investor Shares shall be held subject to all of the terms of this Agreement, and
by taking and holding such Shares or Equity Investor Shares such person shall be
conclusively  deemed  to have  agreed to be bound by and to  perform  all of the
terms and  provisions  of this  Agreement  and such person  shall be entitled to
receive the benefits hereof.

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

               (g) Governing Law; Submission  to  Jurisdiction.  THIS  AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF
NEW YORK,  AS APPLIED TO CONTRACTS  MADE AND  PERFORMED  WITHIN THE STATE OF NEW
YORK. THE COMPANY,  THE EQUITY  INVESTOR AND THE PURCHASERS  HEREBY  IRREVOCABLY
SUBMIT TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT,  ACTION OR  PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT,  AND EACH IRREVOCABLY  ACCEPTS FOR
ITSELF  AND  IN  RESPECT  OF  ITS  PROPERTY,   GENERALLY  AND   UNCONDITIONALLY,
JURISDICTION OF THE AFORESAID COURTS.

               (h) Severability.  The remedies provided  herein  are  cumulative
and not  exclusive  of any  remedies  provided by law.  If any term,  provision,
covenant  or  restriction  of this  Agreement  is held by a court  of  competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms,  provisions,  covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected,  impaired or invalidated,
and the parties hereto shall use their reasonable  efforts to find and employ an
alternative  means to achieve the same or substantially  the same result as that
contemplated  by such term,  provision,  covenant or  restriction.  It is hereby
stipulated  and declared to be the intention of the parties that they would have
executed the remaining terms,  provisions,  covenants and  restrictions  without
including any of such that may be hereafter declared invalid,  illegal,  void or
unenforceable.

               (i) Headings.  The headings in this Agreement are for convenience
of reference  only and shall not limit or otherwise  affect the meaning  hereof.
All references made in this Agreement to "Section" and "paragraph" refer to such
Section or paragraph of this Agreement, unless expressly stated otherwise

               (j) Legends.  Each Holder  agrees that the following legend shall
be placed on  certificates  representing  any Shares or Equity  Investor  Shares
owned by them:

        THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  MAY NOT BE TRANSFERRED
        UNLESS SUCH  TRANSFER  COMPLIES WITH THE  PROVISIONS  OF A  REGISTRATION
        RIGHTS  AGREEMENT  DATED AS OF December  10, 1999, A COPY OF WHICH IS ON
        FILE WITH THE SECRETARY OF  OUTSOURCING  SOLUTIONS INC. AND IS AVAILABLE
        WITHOUT  CHARGE  UPON  WRITTEN  REQUEST  THEREFOR.  THE  HOLDER  OF THIS
        CERTIFICATE,  BY ACCEPTANCE OF THIS  CERTIFICATE,  AGREES TO BE BOUND BY
        ALL OF THE PROVISIONS OF THE AFORESAID AGREEMENT.

The Company agrees to remove the legend on the Shares and Equity Investor Shares
upon the resale of such Shares and Equity Investor Shares in accordance with the
terms of this Agreement.

               (k)  Notwithstanding   anything   to    the   contrary,   nothing
contained  in this  Agreement  shall  affect,  limit or impair  the  rights  and
remedies  of  Heller  Financial,  Inc.  in its  capacity  as (i) a lender to the
Company or any Subsidiary  pursuant to any agreement  under which the Company or
any Subsidiary has borrowed or may borrow money, and (ii) the beneficiary of any
and all agreements entered into by the Company or any Subsidiary for the benefit
of Heller Financial, Inc. as lender.

<PAGE>

               IN WITNESS  WHEREOF,  the parties  have caused this  Registration
Rights Agreement to be duly executed as of the date first written above.

                                            OUTSOURCING SOLUTIONS INC.

                                            By: /s/ Gary L. Weller
                                                --------------------------------
                                                 Name: Gary L. Weller
                                                 Title: EVP

                                            MADISON DEARBORN CAPITAL PARTNERS
                                                  III, L.P.

                                            By:  Madison Dearborn Partners III,
                                                   L.P.
                                                      Its General Partners

                                            By:  Madison Dearborn Partners, Inc.
                                                      Its General Partner

                                            By: /s/ Paul R. Wood
                                                --------------------------------
                                                 Name: Paul R. Wood
                                                 Title:

                                            ARES LEVERAGED INVESTMENT FUND, L.P.

                                            By:  Ares Management, L.P.,
                                                   its General Partner

                                            By: /s/ Jeffrey Serota
                                                --------------------------------
                                                 Name: Jeffrey Serota
                                                 Title: VP
<PAGE>
                                            ARES LEVERAGED INVESTMENT FUND II,
                                                L.P.,

                                            By:  Ares Management II, L.P.,
                                                      its General Partner

                                            By: /s/ Jeffrey Serota
                                                --------------------------------
                                                 Name: Jeffrey Serota
                                                 Title: VP

                                            DB CAPITAL INVESTORS, L.P.

                                            By: DB Capital Partners, L.P.
                                                    its General Partner

                                            By: DB Capital Partners, Inc.

                                            By: /s/ Tyler Zachem
                                                --------------------------------
                                                 Name: Tyler Zachem
                                                 Title: Managing Director

                                            FIRST UNION INVESTORS, INC.

                                            By: /s/
                                                --------------------------------
                                                 Name:
                                                 Title:

                                            ABBOTT CAPITAL 1330 INVESTORS II,
                                                L.P.

                                            By:  Abbott Capital 1330 GenPar II,
                                                    L.L.C.,
                                                    its General Partner

                                            By: /s/ Thomas W. Hallagan
                                                --------------------------------
                                                 Name: Thomas W. Hallagan
                                                 Title: Manager
<PAGE>

                                            ABBOTT CAPITAL PRIVATE EQUITY FUND
                                                III, L.P.

                                            By:  Abbott Capital Management,
                                                   L.L.C.,
                                                   its General Partner

                                            By: /s/ Raymond L. Held
                                                --------------------------------
                                                 Name: Raymond L. Held
                                                 Title: Managing Director

                                            BNY PARTNERS FUND, L.L.C.

                                            By:  BNY Private Investment
                                                   Management, Inc.,
                                                   its Member Manager

                                            By: /s/ Burton Siegal
                                                --------------------------------
                                                 Name: Burton Siegal
                                                 Title: Senior V.P.

                                            HELLER FINANCIAL, INC.

                                            By: /s/ Timothy P. Davitt
                                                --------------------------------
                                                 Name: Timothy P. Davitt
                                                 Title: Vice President

                                            MAGNETITE ASSET INVESTORS L.L.C.

                                            By:  Blackrock Financial Management,
                                                   Inc.
                                                   as Managing Member

                                            By: /s/ Dennis M. Schaney
                                                --------------------------------
                                                 Name: Dennis M. Schaney
                                                 Title: Managing Director
<PAGE>

                                            FBR FINANCIAL FUND II, L.P.

                                            By: /s/ Edward M. Wheeler
                                                --------------------------------
                                                 Name: Edward M. Wheeler
                                                 Title: Senior Managing Director

                                            HARVEST OPPORTUNITY PARTNERS, L.P.

                                            By: /s/ Joseph A. Jolson
                                                --------------------------------
                                                 Name: Joseph A. Jolson
                                                 Title:Managing Member

                                            MADISON DEARBORN SPECIAL EQUITY
                                                III, L.P.

                                            By: Madison Dearborn Partners
                                                   III, L.P.,
                                                   Its General Partners

                                            By: Madison Dearborn Partners, Inc.,
                                                   Its General Partner

                                            By: /s/ Paul R. Wood
                                                --------------------------------
                                                 Name:
                                                 Title:

                                            SPECIAL ADVISORS FUND I, LLC

                                            By: /s/ Paul R. Wood
                                                --------------------------------
                                                 Name:
                                                 Title:

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