Document:

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                                                                     EXHIBIT 4.2

            [Number                                          [Shares]
                AHP]

                     [ALLIED HEALTHCARE INTERNATIONAL INC.]

              INCORPORATED UNDER THE LAWS OF THE STATE OF NEW YORK

SERIES A CONVERTIBLE                                  SEE REVERSE FOR
PREFERRED STOCK                                       CERTAIN DEFINITIONS

THIS CERTIFIES THAT                                   CUSIP 01923A 20 8

is the owner of

     FULLY PAID AND NON-ASSESSABLE SHARES OF THE PAR VALUE OF $.01 PER SHARE
                 OF THE SERIES A CONVERTIBLE PREFERRED STOCK OF

-------------                                                    -------------
-------------         ALLIED HEALTHCARE INTERNATIONAL INC.       -------------
-------------                                                    -------------

transferable on the books of the Corporation by the holder hereof in person or
by duly authorized attorney upon surrender of this certificate properly
endorsed.

This certificate is not valid until countersigned and registered by the Transfer
Agent and Registrar.

Witness the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers.

Dated:  [CORPORATE SEAL OF ALLIED HEALTHCARE INTERNATIONAL INC. 1981]

SECRETARY                                       CHAIRMAN OF THE BOARD AND CHIEF
                                                EXECUTIVE OFFICER

COUNTERSIGNED AND REGISTERED:

AMERICAN STOCK TRANSFER & TRUST COMPANY
(NEW YORK, N.Y.) TRANSFER AGENT
AND REGISTRAR

BY

AUTHORIZED SIGNATURE

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         The Corporation will furnish to any shareholder upon request and
without charge, a full statement of the designation, relative rights,
preferences and limitations of the shares of each class authorized to be issued
and, if the Corporation is authorized to issue any class of preferred shares in
series, the designation, relative rights, preferences and limitations of each
such series so far as the same have been fixed and the authority of the board to
designate and fix the relative rights, preferences and limitations of other
series.

         The following abbreviations, when used in the inscription on the face
of this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  - as tenants in common
TEN ENT  - as tenants by the entireties
JT TEN   - as joint tenants with right of
           survivorship and not as tenants
           in common

UNIF GIFT MIN ACT -.............Custodian.............
                       (Cust)               (Minor)
            under Uniform Gifts to Minors
                  Act.....................
                          (State)

         Additional abbreviations may also be used though not in the above list.

For value received, ___________________ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

[                                 ]

--------------------------------------------------------------------------------
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

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

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-------------------------------------------------------------------------shares
of the capital stock represented by the within certificate, and do hereby
irrevocably constitute and appoint

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

Dated:
       -----------------

                             ---------------------------------------------------
                     NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND
                             WITH THE NAME AS WRITTEN UPON THE FACE OF THE
                             CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
                             OR ENLARGEMENT OR ANY CHANGE WHATEVER.<PAGE>

                                                                    EXHIBIT 10.3

               SECOND AMENDMENT TO MASTER REORGANIZATION AGREEMENT

         SECOND AMENDMENT TO MASTER REORGANIZATION AGREEMENT (this "Amendment"),
dated as of June 26, 2002, by and among Allied Healthcare International Inc.
(f/k/a "Transworld Healthcare, Inc."), a New York corporation ("TWUS"), Allied
Healthcare Group Limited (f/k/a "Transworld Holdings (UK) Limited"), a company
incorporated in England and Wales with registered number 3890177 ("AHG"),
Transworld Healthcare (UK) Limited, a company incorporated in England and Wales
with registered number 3370146 ("TWUK", and, together with TWUS and AHG, the
"Corporate Group"), the holders of ordinary shares of TWUK named in EXHIBIT A to
the Agreement (the "Ordinary Shareholders," and each individually, an "Ordinary
Shareholder"), Triumph Partners III, L.P. ("Triumph", which is sometimes
referred to herein as the "Special Share Holder"), as the holder of the "Special
Share" of TWUK (as such is designated in the Articles of Association of TWUK
(the "UK Charter"), the "Special Share"), the holders of redeemable shares of
TWUK named in EXHIBIT B to the Agreement attached hereto (the "Redeemable
Shareholders," and each individually, a "Redeemable Shareholder"), the holders
of equity warrants of TWUK named in EXHIBIT C to the Agreement (the "Equity
Warrant Holders," and each individually, an "Equity Warrant Holder") and the
holders of mezzanine warrants of TWUK named in EXHIBIT D to the Agreement (the
"Mezzanine Warrant Holders," and each individually, a "Mezzanine Warrant
Holder"). Capitalized terms used herein have the meanings ascribed to such terms
in the Agreement.

                                    RECITALS

         WHEREAS, the Corporate Group and certain of the Investors have
previously entered into that certain Master Reorganization Agreement, dated as
of April 24, 2002 and amended by a First Amendment dated May 16, 2002 (the
"Agreement"); and

         WHEREAS, the parties desire to further amend certain provisions of the
Agreement as fully set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, TWUS, TWUK, AHG and the Investors hereby agree as follows:

         1. Amendment of Section 1.1(g). Section 1.1(g) of the Agreement is
hereby amended and restated by deleting it in its entirety and substituting the
following:

              "(g) Payment of PIK Interest. The PIK Interest will be treated in
         the Reorganization as follows:

                        (i) with respect to those holders of AHG Notes who are
              taxpayers in the United Kingdom (ZRH Nominees (0051) Limited,
              Orion Nominees Limited, Charles Kernahan, David Johnson, Charles
              Murphy, and Steve Gullick), by the issuance of funding notes (the
              "Loan Notes") by AHG to such holders in an amount representing the
              accrued PIK Interest amount minus UK tax

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              withholding at the required 20% rate, as set forth on the
              Valuation Matrix, which Loan Notes will thereupon be exchanged for
              a number of shares of TWUS Common Stock to be determined by
              reference to the Valuation Matrix. Following such exchange, AHG
              will satisfy its obligations to TWUS under the Loan Notes by the
              issue of AHG ordinary shares;

                        (ii) with respect to the AHG Notes held by BNP Paribas,
              by the issuance of Loan Notes by AHG to BNP Paribas in an amount
              representing the accrued PIK Interest amount set forth on the
              Valuation Matrix, which Loan Notes will thereupon be exchanged for
              a number of shares of TWUS Common Stock to be determined by
              reference to the Valuation Matrix. Following such exchange, AHG
              will satisfy its obligations to TWUS under the Loan Notes by the
              issue of AHG ordinary shares; and

                        (iii) with respect to Triumph, Triumph III Investors,
              L.P. (the "Triumph Investors", Aitken (English) Company Limited,
              Tim Aitken, Sarah Eames and Wayne Palladino (together with the
              Triumph Investors, the "Continuing Investors"), the amount
              representing accrued PIK Interest on these holders' AHG Notes
              shall not be paid, but instead shall remain a liability of AHG
              following the Reorganization, without any further interest
              accruing thereon (the "Unpaid PIK Interest"). After the Effective
              Time, each Continuing Investor shall have the assignable right,
              exercisable at any time or from time to time in whole or in part
              in its sole discretion, to require AHG to issue to it or its
              successor(s) or assignee(s) Loan Notes in an aggregate amount
              equal to its Unpaid PIK Interest. Upon exercise of such right, AHG
              shall issue the required amount of Loan Notes in the name of the
              Continuing Investor, or its successor(s) or assignee(s) as
              instructed by the Continuing Investor, within three (3) business
              days, which Loan Notes will thereupon be exchanged by TWUS for a
              number of shares of TWUS Common Stock to be determined by
              reference to the Valuation Matrix (it being understood and agreed
              that the number of shares to be received in exchange for such Loan
              Notes shall be fixed as set forth on the Valuation Matrix and
              shall not increase or decrease after the Effective Time regardless
              of whether the value of a share of TWUS Common Stock decreases or
              increases after such date). Following such exchange, AHG will
              satisfy its obligations to TWUS under the Loan Notes by the issue
              of AHG ordinary shares."

         2. Amendment of Section 2.1(h). Section 2.1(h) of the Agreement is
hereby amended and restated by deleting it in its entirety and substituting the
following:

                                       2
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                  "(h) The PIK Interest with respect to the AHG Notes for all
         holders of AHG Notes other than the Continuing Investors shall be
         exchanged into and represent the right to receive that number of fully
         paid and nonassessable shares of TWUS Common Stock set forth in
         accordance with the Valuation Matrix."

         3. Amendment to Section 3.1. Section 3.1 of this Agreement is hereby
amended and restated by deleting it in its entirety and substituting the
following:

                  "EXCHANGE OF TWUK ORDINARY SHARES FOR SHARES OF TWUS COMMON
         STOCK AND PREFERRED STOCK. At or prior to the Effective Time, TWUS
         shall deposit, or TWUS shall otherwise take all steps necessary to
         cause to be deposited, with American Stock Transfer & Trust Co., its
         transfer agent (the "Transfer Agent"), certificates representing the
         shares of TWUS Common Stock and TWUS Preferred Stock to be issued
         pursuant to Section 2.1 in exchange for those outstanding TWUK Ordinary
         Shares, Redeemable Shares and for the PIK Interest as described in
         Section 2.1."

         4. Amendment to Section 8.2(d). Section 8.2(d) of the Agreement is
hereby amended and restated by deleting it in its entirety and substituting the
following:

                  "The Equity Warrant Holders (other than the Continuing
         Investors) shall have received certificates for that number of shares
         of TWUS Common Stock, in exchange for their PIK Interest, as determined
         in accordance with the Valuation Matrix."

         5. Amendment to Article XI. Article XI of the Agreement shall be
amended and restated by adding the following defined term thereto:

                 DEFINED TERM                       SECTION
                 ------------                       -------
                 Continuing Investors               1.1(g)

         6. Terms and Conditions. Except as specifically modified herein all
other terms and conditions of the Agreement shall remain in full force and
effect.

                     [Remainder of Page Intentionally Blank]

                                       3
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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date first set forth above individually or by their duly
authorized representatives.

                                         ALLIED HEALTHCARE INTERNATIONAL INC.
                                         (F/K/A TRANSWORLD HEALTHCARE, INC.)

                                         By:/s/ Tim Aitken
                                            ---------------------------------
                                         Name: Tim Aitken
                                               ------------------------------
                                         Title: Chairman/CEO
                                                -----------------------------

                                            TRIUMPH PARTNERS III, L.P.

                                            By: Triumph III Advisors, L.P.,
                                                its general partner

                                            By: Triumph III Advisors, Inc.,
                                                its general partner

                                            By:/s/ Carl M. Youngman
                                               ---------------------------------
                                            Name:  Carl M. Youngman
                                            Title: Managing Director

                                            TRIUMPH III INVESTORS, L.P.

                                            By:  Triumph III Investors, Inc.,
                                                 its general partner

                                            /s/ Carl M. Youngman
                                            ------------------------------------
                                            Name:  Carl M. Youngman
                                            Title: Managing Director

<PAGE>

The foregoing Second Amendment to the Master Reorganization Agreement is hereby
consented and agreed to:

                                            /s/ Tim Aitken
                                            ------------------------------------
                                            Timothy M. Aitken

                                            /s/ Sarah L. Eames
                                            ------------------------------------
                                            Sarah L. Eames

                                            /s/ Wayne Palladino
                                            ------------------------------------
                                            Wayne Palladino

                                            AITKEN (ENGLISH) COMPANY
                                            LIMITED

                                            /s/ Tim Aitken
                                            ------------------------------------
                                            Name: Tim Aitken
                                                  ------------------------------
                                            Title: Chairman
                                                   -----------------------------

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