Document:

<PAGE>
                                                                     EXHIBIT 4.4

   NUMBER                                                           SHARES
                           [Image of Printing Press]
   PC
                             PRESSTEK, INC.                   CUSIP 741113 10 4
COMMON STOCK      INCORPORATED UNDER THE LAWS OF DELAWARE      SEE REVERSE FOR
                                                             CERTAIN DEFINITIONS

THIS CERTIFIES THAT

is the owner of

         FULLY PAID AND NON-ASSESSABLE SHARES OF $.01 PAR VALUE EACH OF
                              THE COMMON STOCK OF

PRESSTEK, 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 by the Transfer Agent.
     WITNESS the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized officers

Dated:

                                    PRESSTEK, INC.

                                      CORPORATE
                                        SEAL
                                        1987

                                      DELAWARE

       [Signature]                                   [Signature]

       Secretary                           President and Chief Executive Officer

Countersigned:

CONTINENTAL STOCK TRANSFER & TRUST COMPANY
            (Jersey City, New Jersey)  Transfer Agent

By

                            Authorized Signature

                           AMERICAN BANK NOTE COMPANY
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                                 PRESSTEK, INC.

     The Corporation will furnish without charge to each shareholder who so
requests the powers, designations, preferences and relative, participating,
optional or other special rights of each class of stock or series thereof which
the Corporation is authorized to issue and the qualifications, limitations or
restrictions of such preferences and/or rights.

     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           UNIF GIFT MIN ACT       Custodian
                                                              ------------------
TEN ENT  - as tenants by the entireties                      (Cust)     (Minor)
JT TEN   - as joint tenants with right                       under Uniform Gifts
           of survivorship and not as                             to Minors
           tenants in common                                 Act _______________
                                                                    (State)

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

For value receive, _______________ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
   IDENTIFYING NUMBER OF ASSIGNEE
--------------------------------------

--------------------------------------__________________________________________

________________________________________________________________________________

Please print or typewrite name and address including postal zip code of assignee

________________________________________________________________________________

________________________________________________________________________________

_________________________________________________________________________ Shares

of 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 Company
with full power of substitution in the premises.

Dated, ________________________________

                                       _________________________________________

SIGNATURE MUST BE GUARANTEED BY A COMMERCIAL
BANK OR TRUST COMPANY OR A MEMBER OF A NATIONAL
SECURITIES EXCHANGE.

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 4.1

                            CERTIFICATE OF AMENDMENT
                       OF THE CERTIFICATE OF INCORPORATION
                                       OF
                      ALLIED HEALTHCARE INTERNATIONAL INC.

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

               (UNDER SECTION 805 OF THE BUSINESS CORPORATION LAW)

         ALLIED HEALTHCARE INTERNATIONAL INC., a New York Corporation ("the
Corporation") hereby certifies as follows:

         FIRST: The name of the Corporation is "Allied Healthcare International
Inc."

         The name under which the Corporation was formed is United States Home
Health Care Corp.

         SECOND: The date the Corporation's certificate of incorporation was
filed with the Department of State is November 30, 1981.

         THIRD: The amendment of the certificate of incorporation effected by
this certificate of amendment is as follows: to designate up to eight million
shares (8,000,000) of the authorized ten million shares (10,000,000) shares of
preferred stock as Series A Convertible Preferred Stock with a par value of $.01
per share.

         FOURTH: The first paragraph of Article FOURTH of the certificate of
incorporation, relating to the aggregate number of shares which the Corporation
shall have the authority to issue, is hereby amended to read as follows:

                   "FOURTH: The aggregate number of shares of all classes that
         the Corporation shall have the authority to issue is seventy-two
         million shares (72,000,000), divided into two classes, of which
         sixty-two million shares (62,000,000) shall be designated Common Stock,
         with a par value of $.01 per share, and ten million shares (10,000,000)
         shall be designated Preferred Stock, with a par value of $.01 per
         share. Eight million shares (8,000,000) of the Preferred Stock shall be
         designated as Series A Convertible Preferred Stock, with a par value of
         $.01 per share."

         FIFTH: Section I of Article FOURTH of the certificate of incorporation,
relating to the Preferred Stock which the Corporation shall have the authority
to issue, is hereby amended by adding the following provisions at the end
thereof:

                      SERIES A CONVERTIBLE PREFERRED STOCK

         Section 1. Designation and Amount. The 8,000,000 shares of Series A
Convertible Preferred Stock, par value $.01 per share, of the Corporation shall
be designated Series A Convertible Preferred Stock (being referred to herein as
the "Series A Preferred Stock"). Such number of shares may be increased or
decreased by resolution of the Board of Directors;

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provided, that no decrease shall reduce the number of shares of Series A
Preferred Stock to a number less than that of the shares of Series A Preferred
Stock then outstanding. The Series A Preferred Stock shall have the rights,
terms and privileges set forth below.

         Section 2. Dividends and Distributions.

              (a) The holders of shares of Series A Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available therefor, cumulative dividends at the per share rate of
9.375% of the Original Issue Price per annum (as adjusted for subsequent stock
dividends, stock splits, combinations, recapitalizations or the like with
respect to such share) or such higher rate provided for in Section 17 of the
Certificate of Designations in the event of a Covenant Breach from the date of
original issuance of such share (the "Closing Date") or, in the event of such
higher rate, from the date of the Covenant Breach, which dividends shall accrue
daily in arrears starting from June 18, 2002 and be compounded quarterly,
whether or not such dividends are declared by the Board of Directors or paid.
Subject to the provisions set forth below, such dividends shall be declared by
the Board of Directors and payable quarterly in cash, in arrears, on March 31,
June 30, September 30 and December 31 of each year beginning on September 30,
2002 or if any such day is not a Business Day, on the next succeeding Business
Day; provided that such payment or declaration by the Board of Directors is not
prohibited under Applicable Laws (including lack of surplus under the laws of
the State of New York) and that the Corporation has sufficient cash available to
pay the dividend, and provided that no declaration shall be required unless
there is a respective dividend payment and, notwithstanding any such non-payment
or non-declaration, dividends shall nonetheless accrue and compound as
contemplated by the previous sentence as if such dividends had been declared on
a quarterly basis; and provided further that any such accrued dividends, which,
whether or not declared, are not paid in accordance with this sentence shall be
paid upon liquidation, redemption or conversion of the Series A Preferred Stock
as set forth in Sections 4, 5, 8 and 9 of the Certificate of Designations.
After, and only after, the foregoing dividends on the Series A Preferred Stock
are paid, then the Corporation may (when, as and if declared by the Board of
Directors) declare and distribute dividends among the holders of Common Stock
pro rata based on the number of shares of Common Stock held by each, as of the
record date with respect to the declaration of such dividends.

              (b) Unless and until all accumulated dividends on the Series A
Preferred Stock under Section 2(a) of the Certificate of Designations have been
paid for all past dividend periods and for the then current quarterly dividend
period, the Corporation may not declare or pay any dividend, make any
distribution, or set aside any funds or assets for payment or distribution, with
regard to any Junior Stock. As used with regard to the Series A Preferred Stock,
the term "Junior Stock" means all shares of Common Stock and all shares of any
other class or series of stock of the Corporation to which the shares of Series
A Preferred Stock are prior in rank. If the Series A Preferred Stock ranks prior
to another class or series of stock as to some matters, but not as to other
matters, shares of the other class or series are "Junior Stock" with regard to
the matters as to which the Series A Preferred Stock ranks prior to the other
class or series, but not as to other matters.

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              (c) Any dividend paid or other contribution made with regard to
shares of Series A Preferred Stock will be paid pro-rata on a share-by-share
basis among all such shares at the time outstanding.

         Section 3. Voting Rights.

              (a) Election of Directors. Subject to the terms hereof, until the
Lead Investor and its Affiliates (which, for purposes of this Section 3(a) of
the Certificate of Designations, shall include any limited partner or other
constituent owner of the Lead Investor) beneficially owns less than
fifty-percent (50%) of the shares of Series A Preferred Stock which it
beneficially owns as of the Closing Date, the holders of outstanding shares of
Series A Preferred Stock shall, voting together as a separate class, be entitled
to elect one Director of the Corporation (the "Series A Director"), which such
number may be increased as provided in Section 17 of the Certificate of
Designations. Such Series A Directors shall be elected by a plurality vote with
the elected candidates receiving the greatest number of affirmative votes (with
each holder of Series A Preferred Stock entitled to cast one vote for a
candidate for the directorships reserved for the holders of the Series A
Preferred Stock with respect to each share of Series A Preferred Stock held by
such holder) of the outstanding shares of Series A Preferred Stock, with votes
withheld having no legal effect. The holders of outstanding shares of Series A
Preferred Stock shall, voting together as a separate class, be entitled to
remove any of the Series A Directors, with or without cause. The election and
removal of such Series A Directors shall occur (i) at the annual meeting of
shareholders of the Corporation, (ii) at any special meeting of shareholders of
the Corporation, (iii) at any special meeting of holders of Series A Preferred
Stock called by holders of a majority of the outstanding shares of Series A
Preferred Stock or (iv) by the written consent of a Majority in Interest in the
manner and on the basis specified above. If, at any time when a sufficient
number of shares of Series A Preferred Stock are outstanding such that a Series
A Director is entitled to be elected pursuant to the first sentence of this
Section 3(a) of the Certificate of Designations, any such Series A Director
ceases to be a Series A Director for any reason, the vacancy shall only be
filled by the vote or written consent of the holders of a majority of the
outstanding shares of Series A Preferred Stock, voting together as a separate
class, in the manner and on the basis specified above or as otherwise provided
by law. So long as the Lead Investor and its Affiliates beneficially owns
fifty-percent (50%) or greater of the shares of Series A Preferred Stock which
it beneficially owns as of the Closing Date, the Lead Investor shall be entitled
to nominate the Series A Directors in its sole discretion. In addition to the
foregoing at all times, the holders of outstanding shares of Series A Preferred
Stock shall also be entitled to vote in the election of all other directors of
the Corporation together with holders of all other shares of the Corporation's
outstanding Capital Shares entitled to vote thereon, voting as a single class,
with each outstanding share of Series A Preferred Stock entitled to the number
of votes specified in Section 3(b) of the Certificate of Designations. The
holders of outstanding shares of Series A Preferred Stock may, in their
discretion, determine not to elect one or more Series A Directors as provided
herein from time to time, and during any such period the Board of Directors
nonetheless shall be deemed duly constituted.

              (b) Voting Generally. Each outstanding share of Series A Preferred
Stock shall be entitled to a number of votes equal to the number of shares of
Common Stock into which

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such share of Series A Preferred Stock is then convertible pursuant to Section 5
of the Certificate of Designations as of the record date for the vote or written
consent of shareholders, as applicable. Each holder of outstanding shares of
Series A Preferred Stock shall be entitled to notice of any shareholders meeting
in accordance with the by-laws of the Corporation and shall vote with holders of
the Common Stock, voting together as single class, upon all matters submitted to
a vote of shareholders, except those matters required to be submitted to a class
or series vote pursuant to the terms hereof or by law.

         Section 4. Liquidation.

              (a) Series A Liquidation Preference. Upon any liquidation,
dissolution or winding up of the Corporation and its subsidiaries, whether
voluntary or involuntary (a "Liquidation Event"), each holder of outstanding
shares of Series A Preferred Stock shall be entitled to be paid in cash, whether
from capital, surplus or earnings, before any amount is paid or distributed to
the holders of the Common Stock or any other Junior Stock, an amount per share
of Series A Preferred Stock equal to (i) (pound)2.867 (the "Original Issue
Price") (such amount to be adjusted appropriately for stock splits, stock
dividends, recapitalizations and the like) plus (ii) any accrued or declared but
unpaid dividends on such shares of Series A Preferred Stock (the Original Issue
Price plus such accrued or declared dividends are referred to herein as the
"Series A Preference Amount"). If the amounts available for distribution by the
Corporation to holders of Series A Preferred Stock upon a Liquidation Event are
not sufficient to pay the aggregate Series A Preference Amount due to such
holders, such holders shall share ratably in any distribution in connection with
such Liquidation Event in proportion to the full respective preferential amounts
to which they are entitled.

         Notwithstanding the preceding paragraph, if upon such Liquidation Event
the holders of outstanding shares of Series A Preferred Stock would receive more
than the aggregate amount to be received under the preceding paragraph above in
the event all of their shares of Series A Preferred Stock were converted into
shares of Common Stock (plus the payment in cash of any accrued or declared but
unpaid dividends on such shares of Series A Preferred Stock) pursuant to the
provisions of Section 5(a) of the Certificate of Designations immediately prior
to such Liquidation Event and such shares of Common Stock received a liquidating
distribution or distributions from the Corporation, then each holder of
outstanding shares of Series A Preferred Stock in connection with such
Liquidation Event shall be entitled to be paid in cash, in lieu of the payments
described in the preceding paragraph, an amount per share of Series A Preferred
Stock equal to such amount as would have been payable in respect of each share
of Common Stock (including any fractions thereof) issuable upon conversion of
such share of Series A Preferred Stock had such share of Series A Preferred
Stock been converted to Common Stock immediately prior to such Liquidation Event
pursuant to the provisions of Section 5(a) of the Certificate of Designations
(plus the payment in cash of any accrued or declared but unpaid dividends on
such shares of Series A Preferred Stock).

         The provisions of this Section 4(a) of the Certificate of Designations
shall not in any way limit the right of the holders of Series A Preferred Stock
to elect to convert their shares of Series A Preferred Stock into shares of
Common Stock (plus the payment in cash of any accrued or

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declared but unpaid dividends on such shares of Series A Preferred Stock)
pursuant to Section 5 of the Certificate of Designations prior to or in
connection with any Liquidation Event.

              (b) Remaining Assets. After the payment of all preferential
amounts required to be paid to the holders of the Series A Preferred Stock and
any other class or series of stock of the Corporation ranking on liquidation on
a parity with the Series A Preferred Stock, the remaining assets and funds of
the Corporation available for distribution to its shareholders shall be
distributed among the holders of shares of Junior Stock then outstanding.

         Section 5. Conversion into Common Stock. The holders of Series A
Preferred Stock shall have the following conversion rights:

              (a) Voluntary Conversion. Each holder of shares of Series A
Preferred Stock will have the right, upon the written election of such holder
without the payment of additional consideration, at any time on or before the
day before the date, if any, fixed for the conversion of those shares in any
notice of conversion given as provided in Section 9 of the Certificate of
Designations at the office of the Corporation or any transfer agent for those
shares, from the date of issuance until December 17, 2008, at the option of the
holder of the shares of Series A Preferred Stock, to convert some or all shares
of Series A Preferred Stock held of record by the holder into (i) such number of
fully paid and nonassessable shares of Common Stock as is determined by dividing
the Original Issue Price for each such share by the Conversion Price at the time
in effect for such Series A Preferred Stock (the "Common Conversion Rate"), and
(ii) the payment in cash of any accrued or declared but unpaid dividends on such
shares of Series A Preferred Stock. The initial "Conversion Price" per share for
shares of Series A Preferred Stock shall be the Original Issue Price, subject to
adjustment as set forth in Section 6 of the Certificate of Designations. Such
conversion may occur at any time after the date of issuance of such shares of
Series A Preferred Stock.

              (b) Procedure for Conversion. Upon election to convert pursuant to
Section 5(a) of the Certificate of Designations, the relevant holder or holders
of Series A Preferred Stock shall surrender the certificate or certificates
representing the Series A Preferred Stock being converted to the Corporation,
duly assigned or endorsed for transfer to the Corporation (or accompanied by
duly executed stock powers relating thereto) or if lost shall deliver to the
Corporation an affidavit of loss together with an indemnity agreement in form
reasonably satisfactory to the Corporation, at its principal executive office or
such other place as the Corporation may from time to time designate by notice to
the holders of the Series A Preferred Stock. Upon surrender of such
certificate(s) or delivery of an affidavit of loss together with an indemnity
agreement in form reasonably satisfactory to the Corporation, the Corporation
shall issue and send by hand delivery, by courier or by first class mail
(postage prepaid) to the holder thereof or to such holder's designee, at the
address designated by such holder, certificates for the number of shares of
Common Stock to which such holder shall be entitled upon conversion and shall
deliver to the holder or the holder's designee, pursuant to instructions
provided to the Corporation by the holder in immediately available funds, cash
in the amount of any accrued or declared but unpaid dividends on such shares of
Series A Preferred Stock being converted. The issuance of certificates for
Common Stock upon conversion of Series A

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Preferred Stock shall be deemed effective as of 9:00 a.m. Eastern Time of the
date of written notice of election to convert delivered pursuant to Section 5(a)
of the Certificate of Designations together with the surrender of such Series A
Preferred Stock certificates or delivery of such affidavit of loss together with
an indemnity agreement in form reasonably satisfactory to the Corporation and
shall be made without charge to the holders of such shares for any issuance tax
in respect thereof or other costs incurred by the Corporation in connection with
such conversion and the related issuance of such stock, provided, however, that
the Corporation will not be required to pay any tax which may be payable in
respect of any transfer involved in the issue or delivery of shares of Common
Stock in a name other than that of the holder of record of the Series A
Preferred Stock to be converted and no such issue or delivery will be made
unless and until the person requesting the issue or delivery has paid to the
Corporation the amount of any such tax or has established, to the satisfaction
of the Corporation, that the tax has been paid.

              (c) Reservation of Stock Issuable upon Conversion. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of effecting the conversion of
the shares of Series A Preferred Stock, such number of its shares of Common
Stock as shall from time to time be sufficient to effect the conversion of all
outstanding shares of Series A Preferred Stock. If at any time the number of
authorized but unissued shares of Common Stock is not sufficient to effect the
conversion of all outstanding shares of Series A Preferred Stock, the
Corporation shall take such corporate action as may be necessary to increase the
number of its authorized but unissued shares of Common Stock to such number of
shares as are sufficient for such purpose, and to reserve the appropriate number
of shares of Common Stock for issuance upon such conversion.

              (d) No Closing of Transfer Books. The Corporation shall not close
its books against the transfer of shares of Series A Preferred Stock in any
manner that would interfere with the timely conversion of any shares of Series A
Preferred Stock.

              (e) No Fractional Shares. No fractional shares of Common Stock
will be issued upon conversion of Series A Preferred Stock. Any fractional
interest in a share of Common Stock resulting from conversion of shares of
Series A Preferred Stock will be paid in cash (computed to the nearest cent)
based on the Conversion Price on the day next preceding the day of conversion.
If more than one share of Series A Preferred Stock is surrendered for conversion
at substantially the same time by the same holder, the number of full shares of
Common Stock issuable upon the conversion will be computed on the basis of all
the shares of Series A Preferred Stock surrendered at that time by that holder.

              (f) Failure by Corporation to Pay Dividend Amount in Cash. In the
event that the Corporation is prohibited or prevented under Applicable Laws or
under any other contractual or other arrangement (including, without limitation,
the Credit Agreements), or other legal restriction whatsoever, directly or
indirectly (which shall be deemed to encompass a similar prohibition or
prevention upon UK Parent or TWUK or other Subsidiary of the Corporation) from
paying in cash the amount of the accrued or declared but unpaid dividends on
such shares of Series A Preferred Stock of any holder requesting a voluntary
conversion of the shares in accordance with Section 5 of the Certificate of
Designations, after the Corporation shall use all

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reasonable endeavors to take such action as shall be necessary or appropriate to
review and promptly remove any impediment to its ability to pay such cash
amounts (including to cause UK Parent and/or TWUK to take substantially similar
actions) as contemplated in Section 5 of the Certificate of Designations, to the
extent there remains any such cash amounts which have not been so paid, such
holder may make the following election, in its sole discretion:

                   (i) the holder shall have the right to revoke their voluntary
         conversion exercise with respect to the applicable number of shares of
         Series A Preferred Stock with which payment of accrued or declared but
         unpaid dividends has not been provided in cash;

                   (ii) unless otherwise prohibited under Applicable Laws, the
         holder shall be entitled to accept from the Corporation, and the
         Corporation shall promptly issue to the holder, a demand note in the
         principal amount of the accrued or declared but unpaid dividends
         remaining unpaid in cash, which such demand note shall include interest
         provisions substantially identical to the dividend provisions of
         Section 2 of the Certificate of Designations (except that interest rate
         on the demand note shall be increased by two percent (2%)), and which
         such demand note shall otherwise be in form and substance reasonably
         satisfactory to such holder; or

                   (iii) the holder shall have the right to receive an
         additional number of shares of Common Stock of the Corporation equal to
         the quotient of (A) the amount of the accrued or declared but unpaid
         dividends that remain unpaid, divided by (B) the average Closing Price
         per share of Common Stock as reported by the principal securities
         exchange on which the shares of Common Stock are listed for trading for
         the five (5) Trading Days immediately preceding the date of conversion.
         In the event that the holder elects this option (iii) the procedure for
         delivery of such shares of Common Stock shall be consistent with, and
         concurrent with, the delivery and issuance of shares of Common Stock
         pursuant to Section 5(b) and 5(e) of the Certificate of Designations.

         Section 6. Adjustments.

              (a) Adjustments to the Conversion Price. Except as provided in
Section 6(b) of the Certificate of Designations and except in the case of an
event described in Section 6(c) of the Certificate of Designations, if and
whenever after the date the amendment to the Certificate of Incorporation
containing the Certificate of Designations is first filed with the Department of
State of New York (the "Filing Date") the Corporation issues, sells or
exchanges, or is, in accordance with this Section 6(a) of the Certificate of
Designations, deemed to have issued or sold or exchanged, any shares of Common
Stock for a consideration per share less than the Conversion Price in effect
immediately prior to such issuance, sale or exchange, then, upon such issuance,
sale or exchange (or deemed issuance, sale or exchange), the Conversion Price
shall be reduced to the price determined by dividing (y) the sum of (A) the
Common Stock Deemed Outstanding immediately prior to such issuance, sale or
exchange (or deemed issuance, sale or exchange) multiplied by the Conversion
Price then in effect and (B) the consideration, if any, received by the
Corporation upon such issuance, sale or exchange (or deemed issuance, sale or
exchange) by (z) the Common Stock Deemed Outstanding immediately after such
issuance, sale

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or exchange (or deemed issuance, sale or exchange). Such adjustments shall be
made successively whenever such an issuance, sale or exchange is made. For
purposes of clause (y)(B) of this Section 6(a) of the Certificate of
Designations, if applicable, "consideration" shall be denominated in sterling
converted utilizing the relevant currency exchange rate on the date of such
issuance, sale, or exchange (or deemed issuance, sale, or exchange).

         For purposes of this Section 6(a) of the Certificate of Designations,
the following shall also, subject to the provisions of Section 6(b) of the
Certificate of Designations, be applicable:

                   (i) Issuance of Rights or Options. If the Corporation, at any
         time after the Filing Date, in any manner grants (whether directly or
         by assumption in a merger or otherwise) any warrants or other rights to
         subscribe for or to purchase, or any options for the purchase of,
         Common Stock or any stock or security convertible into or exchangeable
         for Common Stock (such warrants, rights or options being called
         "Options" and such convertible or exchangeable stock or securities
         being called "Convertible Securities"), in each case for consideration
         per share (determined as provided in this paragraph and in Section
         6(a)(vi) of the Certificate of Designations less than the Conversion
         Price then in effect, whether or not such Options or the right to
         convert or exchange any such Convertible Securities are immediately
         exercisable, then the total maximum number of shares of Common Stock
         issuable upon the exercise of such Options, or upon conversion or
         exchange of the total maximum amount of such Convertible Securities
         issuable upon exercise of such Options, shall be deemed to have been
         issued as of the date of granting of such Options, at a price per share
         equal to the amount determined by dividing (A) the total amount, if
         any, received or receivable by the Corporation as consideration for the
         granting of such Options, plus the minimum aggregate amount of
         additional consideration payable to the Corporation upon the exercise
         of all such Options, plus, in the case of such Options which relate to
         Convertible Securities, the minimum aggregate amount of additional
         consideration, if any, payable upon the issuance or sale of such
         Convertible Securities and upon the conversion or exchange thereof, by
         (B) the total maximum number of shares of Common Stock deemed to have
         been so issued. Except as otherwise provided in Section 6(a)(iii) of
         the Certificate of Designations, no adjustment of the Conversion Price
         shall be made upon the actual issuance of such Common Stock or of such
         Convertible Securities upon exercise of such Options or upon the actual
         issuance of such Common Stock upon conversion or exchange of such
         Convertible Securities. To the extent that any Options or Convertible
         Securities are not so issued or expire unexercised, the Conversion
         Price then in effect shall be readjusted to the Conversion Price which
         would then be in effect if such unissued or unexercised Options or
         Convertible Securities had not been issuable.

                   (ii) Issuance of Convertible Securities. If the Corporation,
         at any time after the Filing Date, in any manner issues or sells any
         Convertible Securities for consideration per share (determined as
         provided in this paragraph and in Section 6(a)(vi) of the Certificate
         of Designations less than the Conversion Price then in effect, whether
         or not the rights to exchange or convert any such Convertible
         Securities are immediately exercisable, then the total maximum number
         of shares of Common Stock issuable upon

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<PAGE>

         conversion or exchange of all such Convertible Securities shall be
         deemed to have been issued as of the date of the issuance or sale of
         such Convertible Securities, at a price per share equal to the amount
         determined by dividing (A) the total amount, if any, received or
         receivable by the Corporation as consideration for the issuance or sale
         of such Convertible Securities, plus the minimum aggregate amount of
         additional consideration, if any, payable to the Corporation upon the
         conversion or exchange thereof, by (B) the total maximum number of
         shares of Common Stock deemed to have been so issued; provided, that
         (1) except as otherwise provided in Section 6(a)(iii) of the
         Certificate of Designations, no adjustment of the Conversion Price
         shall be made upon the actual issuance of such Common Stock upon
         conversion or exchange of such Convertible Securities and (2) if any
         such issuance or sale of such Convertible Securities is made upon
         exercise of any Options to purchase any such Convertible Securities, no
         further adjustment of the Conversion Price shall be made by reason of
         such issuance or sale. To the extent that any Convertible Securities
         are not so issued or expire unexercised, the Conversion Price then in
         effect shall be readjusted to the Conversion Price which would then be
         in effect if such unissued or unexercised Options or Convertible
         Securities had not been issuable.

                   (iii) Change in Option Price or Conversion Rate. If a change
         occurs in (A) the maximum number of shares of Common Stock issuable in
         connection with any Option referred to in Section 6(a)(i) of the
         Certificate of Designations or any Convertible Securities referred to
         in Section 6(a)(i) or (ii) of the Certificate of Designations, (B) the
         purchase price provided for in any Option referred to in Section
         6(a)(i) of the Certificate of Designations, (C) the additional
         consideration, if any, payable upon the conversion or exchange of any
         Convertible Securities referred to in Section 6(a)(i) or (ii) of the
         Certificate of Designations or (D) the rate at which Convertible
         Securities referred to in Section 6(a)(i) or (ii) of the Certificate of
         Designations are convertible into or exchangeable for Common Stock (in
         each case, other than in connection with an event described in Section
         6(b) of the Certificate of Designations), then the Conversion Price in
         effect at the time of such event shall be readjusted to the Conversion
         Price that would have been in effect at such time had such Options or
         Convertible Securities that remain outstanding provided for such
         changed maximum number of shares, purchase price, additional
         consideration or conversion rate, as the case may be, at the time
         initially granted, issued or sold, but in no circumstance shall the
         Conversion Price be increased to an amount greater than the Conversion
         Price in effect on the Filing Date. No adjustment of the Conversion
         Price shall be made under this Section 6(a)(iii) of the Certificate of
         Designations upon the issuance of any additional shares of Common Stock
         which are issued pursuant to the exercise of any Options or Convertible
         Securities if an adjustment shall previously have been made upon the
         issuance of such Options or Convertible Securities.

         Any adjustment of the Conversion Price pursuant to Sections 6(a)(i),
(ii) and (iii) of the Certificate of Designations shall be disregarded if, as
and when the rights to acquire shares of Common Stock upon exercise or
conversion of the Options or Convertible Securities which gave rise to such
adjustment expire or are canceled, redeemed or repurchased without having been

                                       9
<PAGE>

exercised, so that the Conversion Price effective immediately upon such
cancellation, redemption, repurchase or expiration shall be equal to the
Conversion Price immediate prior to the issuance of the expired, redeemed,
repurchased or cancelled Options or Convertible Securities, with such additional
adjustments as would have been made to that Conversion Price had the expired or
canceled Options or Convertible Securities not been issued.

                   (iv) Stock Dividends. If the Corporation declares, orders,
         pays or makes a dividend or makes any other distribution upon any stock
         of the Corporation payable in Common Stock, Options or Convertible
         Securities, any Common Stock, Options or Convertible Securities, as the
         case may be, issuable in payment of such dividend or distribution shall
         be deemed to have been issued or sold without consideration, and the
         Conversion Price shall be adjusted pursuant to this Section 6(a) of the
         Certificate of Designations; provided, that no adjustment shall be made
         to the Conversion Price as a result of such dividend or distribution if
         the holders of the shares of Series A Preferred Stock are entitled to,
         and do, receive such dividend or distribution in accordance with
         Sections 2 and 6(a)(v) of the Certificate of Designations; and,
         provided, further, that if any adjustment is made to the Conversion
         Price as a result of the declaration of a dividend and such dividend is
         not effected, the Conversion Price shall be appropriately readjusted.

                   (v) Other Dividends and Distributions. If the Corporation at
         any time or from time to time after the Filing Date makes, orders,
         pays, declares, or issues, or fixes a record date for the determination
         of holders of Common Stock entitled to receive, a dividend or other
         distribution (A) payable in securities or other property of the
         Corporation other than shares of Common Stock and (B) that, together
         with all such other dividends or distributions pursuant to this Section
         6(v) of the Certificate of Designations during the same fiscal year of
         the Corporation, has an aggregate Fair Value per share greater than 10%
         of the Original Issue Price (such amount to be appropriately adjusted
         for any stock split, stock dividend, recapitalization or similar
         transaction) then and in each such event provision shall be made so
         that the holders of the outstanding shares of Series A Preferred Stock
         shall receive upon conversion thereof, in addition to the number of
         shares of Common Stock receivable thereupon and the payment in cash of
         any accrued or declared but unpaid dividends on such shares of Series A
         Preferred Stock, the amount of such other securities of the Corporation
         or such other property, or an amount of cash equal to the Fair Value of
         the securities or property as of the date of such distribution that
         they would have received had the Series A Preferred Stock been
         converted into Common Stock on the date of such event and had such
         holders thereafter, during the period from the date of such event to
         and including such date of conversion, retained such securities or
         other property receivable by them during such period giving application
         to all adjustments called for during such period under Section 6 of the
         Certificate of Designations with respect to the rights of the holders
         of the outstanding shares of Series A Preferred Stock; provided,
         that in the case of a distribution or dividend in cash, the Conversion
         Price shall be reduced (without duplication) by an amount equal to the
         per share amount of the cash dividend or distribution; provided that no
         such adjustment pursuant to this Section 6(a)(v) of the Certificate of
         Designations shall be made if the

                                       10
<PAGE>

         holders of Series A Preferred Stock simultaneously receive a dividend
         or other distribution of such securities or other property in an amount
         equal to the amount of such securities or other property as they would
         have received if all outstanding shares of Series A Preferred Stock had
         been converted into Common Stock on the date of such event.

                   (vi) Consideration for Stock. In case any shares of Common
         Stock are issued or sold, or deemed issued or sold, for cash, the
         consideration received therefor shall be deemed to be the amount
         received or to be received by the Corporation therefor (determined with
         respect to deemed issuances and sales in connection with Options and
         Convertible Securities in accordance with clause (A) of Section 6(a)(i)
         or Section 6(a)(ii) of the Certificate of Designations, as appropriate)
         determined in the manner set forth below in this Section 6(a)(vi) of
         the Certificate of Designations. In case any shares of Common Stock are
         issued or sold, or deemed issued or sold, for a consideration other
         than cash, the amount of the consideration other than cash received by
         the Corporation shall be deemed to be the Fair Value of such
         consideration received or to be received by the Corporation (determined
         with respect to deemed issuances and sales in connection with Options
         and Convertible Securities in accordance with clause (A) of Section
         6(a)(i) or Section 6(a)(ii) of the Certificate of Designations, as
         appropriate). If any Options are issued in connection with the issuance
         and sale of other securities of the Corporation, together comprising
         one integral transaction in which no specific consideration is
         allocated to such Options by the parties thereto, such Options shall be
         deemed to have been issued for such consideration as determined in good
         faith by the Board of Directors of the Corporation.

                   (vii) Record Date. If the Corporation takes a record of the
         holders of its Common Stock for the purpose of entitling them (A) to
         receive a dividend or other distribution payable in Common Stock,
         Options or Convertible Securities or (B) to subscribe for or purchase
         Common Stock, Options or Convertible Securities, then such record date
         shall be deemed to be the date of the issuance or sale of the shares of
         Common Stock deemed to have been issued or sold upon the declaration of
         such dividend or the making of such other distribution or the date of
         the granting of such right of subscription or purchase, as the case may
         be.

                   (viii) Treasury Shares. The number of shares of Common Stock
         outstanding at any given time shall not include shares owned or held by
         or for the account of the Corporation; provided, that the disposition
         of any such shares to any third party shall be considered an issuance
         or sale of Common Stock for the purpose of this Section 6 of the
         Certificate of Designations.

                   (ix) Other Issuances or Sales; Indeterminable Amounts. In
         calculating any adjustment to the Conversion Price pursuant to this
         Section 6(a) of the Certificate of Designations, any Options or
         Convertible Securities that provide, as of the effective date of such
         adjustment, for the issuance upon exercise or conversion thereof of an
         indeterminable number of shares of Common Stock shall (together with
         the shares of Common Stock issuable upon exercise or conversion
         thereof) be disregarded for purposes

                                       11
<PAGE>

         of the calculation and what shares are deemed to be outstanding;
         provided, that at such time as time as a number of shares of Common
         Stock issuable upon exercise or conversion of such Options or
         Convertible Securities becomes determinable, then the Conversion Price
         shall be adjusted as provided in Section 6(a)(iii) of the Certificate
         of Designations.

                   (x) Common Stock Deemed Outstanding. For purposes of this
         Section 6 of the Certificate of Designations, the term "Common Stock
         Deemed Outstanding" shall mean, at any time, the sum of (A) the number
         of shares of Common Stock outstanding immediately prior to the Filing
         Date (including for this purpose all shares of Common Stock issuable
         upon exercise or conversion of any Options or Convertible Securities
         outstanding immediately prior to the Filing Date), plus (B) the number
         of shares of Common Stock issued, sold or exchanged (or deemed issued,
         sold or exchanged ) after the Filing Date, the issuance, sale or
         exchange of which resulted in an adjustment to the Conversion Price
         pursuant to Section 6(a) of the Certificate of Designations; provided,
         that Common Stock Deemed Outstanding shall not include the Series A
         Preferred Stock or any shares of Common Stock issuable upon exercise of
         the Series A Preferred Stock or any shares of Common Stock issuable
         pursuant to Section 1.1 (g)(iii) of the Master Reorganization
         Agreement.

              (b) Certain Issues of Common Stock Excepted. Anything herein to
the contrary notwithstanding, the Corporation shall not be required to make any
adjustment of the Conversion Price pursuant to Section 6(a) of the Certificate
of Designations in the case of the issuance from and after the Filing Date of
(i) shares of Common Stock upon conversion of shares of Series A Preferred
Stock, (ii) shares of Common Stock issued to the Investors (as such term is
defined in the Master Reorganization Agreement) as contemplated in the Master
Reorganization Agreement, (iii) up to 3,000,000, 1,394,000 and 100,000 (such
amount to be appropriately adjusted for stock splits, stock dividends,
recapitalizations and the like) shares of Common Stock or options therefore to
directors, officers, employees or consultants of the Corporation or any
Subsidiary or their retention as consultants by the Corporation or any
Subsidiary, in each case authorized by the Board of Directors and issued
pursuant to the Corporation's 2002 Stock Option Plan, 1992 Stock Option Plan and
1997 Option Plan for Non-Employee Directors, respectively; provided, however
that, except with respect to the Corporation's 2002 Stock Option Plan this
Section 6(b) of the Certificate of Designations shall not apply to any such
shares of Common Stock or options issued upon regrant of any redeemed,
cancelled, exercised or expired shares of Common Stock or options, (iv) any
issuance or sale (or deemed issuance or sale) which (A) is not otherwise
addressed by Sections 6(d) and/or 6(e) of the Certificate of Designations, (B)
involves a bona fide statutory merger or consolidation or acquisition, or a bona
fide transfer of assets, the terms of which have been negotiated on an
arm's-length basis in good faith, whereby, in whole or in part, in consideration
thereof Securities of the Corporation are issued in exchange for securities
and/or assets of another Person, (C) does not include an issuance or sale (or
deemed issuance or sale) to any Affiliate of the Corporation, and (D) would not
satisfy the definition of "Liquidity Event" if 50% were substituted for 90%
therein, or (v) any issuance or sale (or deemed issuance or sale) for a gross
consideration per share (determined consistently with the provisions of this
Section 6 of the Certificate of Designations, but inclusive of any

                                       12
<PAGE>

amounts applicable to reasonable and customary underwriting commissions and
offering expenses incurred in connection with such issuance or sale (or deemed
issuance or sale)) equal to or greater than (X) 90% of the current market price
with respect to a placement generally known as or structured substantially
similar to a "PIPE" transaction, (Y) 85% of the current market price with
respect to other private placement transactions to non-Affiliates of the
Corporation and (Z) 95% of the current market price per share otherwise. For
purposes of this Section 6(b) of the Certificate of Designations, "current
market price per share" of Common Stock shall be deemed to be the average of the
Closing Prices of the Common Stock for the 20 consecutive Trading Days ending
the earlier of (x) the date a binding agreement with respect to such issuance or
sale is entered into and (y) the date of such issuance or sale, as reported by
the principal securities exchange on which the shares of Common Stock are listed
for trading, so long as such exchange is the New York Stock Exchange, the NASDAQ
National Market, the American Stock Exchange or a Designated Offshore Securities
Market.

              (c) Subdivision or Combination of Common Stock. If the Corporation
shall at any time after the Closing Date subdivide its outstanding shares of
Common Stock into a greater number of shares (by any stock split, stock
dividend, recapitalization or otherwise), then the Conversion Price in effect
immediately prior to such subdivision shall be proportionately reduced, and,
conversely, if the Corporation shall at any time after the Closing Date combine
or consolidates its outstanding shares of Common Stock into a smaller number of
shares (by any reverse stock split or otherwise), then the Conversion Price in
effect immediately prior to such combination shall be proportionately increased.

              (d) Reorganization or Reclassification. If any capital
reorganization or reclassification of the Capital Shares of the Corporation
shall be effected in such a way that holders of Common Stock shall be entitled
to receive stock, securities or assets with respect to or in exchange for Common
Stock, then, as a condition of such reorganization or reclassification, lawful
and adequate provisions shall be made whereby each holder of a share or shares
of Series A Preferred Stock shall thereupon have the right to receive, upon the
basis and upon the terms and conditions specified herein and in lieu of the
shares of Common Stock immediately theretofore receivable upon the conversion of
such share or shares of Series A Preferred Stock, as the case may be (but not in
lieu of the payment in cash of any accrued or declared but unpaid dividends on
such shares of Series A Preferred Stock), the amount (if a single amount) or the
greatest amounts (if there are alterative amounts) of such shares of stock,
securities or assets as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of
shares of such Common Stock immediately theretofore receivable upon such
conversion had such reorganization or reclassification not taken place, and in
any such case appropriate provisions shall be made with respect to the rights
and interests of such holder to the end that the provisions of the Certificate
of Designations (including, without limitation, provisions for adjustments of
the Conversion Price) shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets thereafter deliverable
upon the exercise of such conversion rights.

              (e) Adjustment for Merger or Reorganization, etc. Upon any merger
or consolidation of the Corporation with or into another corporation, or any
sale or transfer of all or

                                       13
<PAGE>

substantially all of the assets of the Corporation to another corporation, each
share of Series A Preferred Stock shall thereafter be convertible (or shall be
converted into a security that shall be convertible) into the amount (if a
single amount) or the greatest amounts (if there are alternative amounts) of the
kind and amount of shares of stock or other securities or property to which a
holder of the number of shares of Common Stock of the Corporation deliverable
upon conversion of such Series A Preferred Stock would have been entitled upon
such merger, consolidation, or asset sale (plus the payment in cash of any
accrued or declared but unpaid dividends on such shares of Series A Preferred
Stock); and, in such case, appropriate adjustment (as determined in good faith
by the Board of Directors) shall be made in the application of the provisions
set forth in Section 6 of the Certificate of Designations with respect to the
rights and interests thereafter of the holders of the Series A Preferred Stock,
to the end that the provisions set forth in Section 6 of the Certificate of
Designations (including provisions with respect to changes in and other
adjustments of the Conversion Price) shall thereafter be applicable, as nearly
as practicable, in relation to any shares of stock or other property thereafter
deliverable upon the conversion of the Series A Preferred Stock.

              (f) Assumption of Obligations. Notwithstanding anything contained
in the Certificate of Designations to the contrary, the Corporation will not
effect any of the transactions contemplated by Section 6(d) or 6(e) of the
Certificate of Designations unless prior to the consummation thereof, each
Person (other than the Corporation) which may be required to deliver any shares,
securities, cash or property upon the conversion of the Series A Preferred Stock
as provided herein shall, by written instrument delivered to, and reasonably
satisfactory to, the holder, assume in a form reasonably satisfactory to a
Majority in Interest (a) the obligations of the Corporation under the
Certificate of Designations (and if the Corporation shall survive the
consummation of such transaction, such assumption shall be in addition to, and
shall not release the Corporation from, any continuing obligations of the
Corporation under the Certificate of Designations) or shall agree to such
alternative obligations, such that, following such assumption and agreement, the
holders will continue to have the right to achieve practical realization of the
principal benefits intended to be provided to them by the Certificate of
Designations and (b) the obligation to deliver to the holder such shares, cash
or property as, in accordance with the provisions of Sections 6(d) or 6(e) of
the Certificate of Designations the holder may be entitled to receive.

              (g) Notices; Adjustments.

                   (i) Liquidation Events, Extraordinary Transactions, Etc. In
         the event (x) the Corporation establishes a record date to determine
         the holders of any class of securities who are entitled to receive any
         dividend or other distribution or who are entitled to vote at a meeting
         (or by written consent) in connection with any of the transactions
         identified in clause (y) hereof, or (y) any Liquidation Event,
         Liquidity Event, or any public or private offering of the Corporation's
         securities becomes reasonably likely to occur, the Corporation shall
         mail or cause to be mailed by first class mail (postage prepaid) to
         each holder of Series A Preferred Stock at least thirty (30) days prior
         to such record date specified therein or the expected effective date of
         any such transaction, whichever is earlier, a notice specifying (A) the
         date of such record date for

                                       14
<PAGE>

         the purpose of such dividend or distribution or meeting or consent and
         a description of such dividend or distribution or the action to be
         taken at such meeting or by such consent, (B) the date on which any
         such Liquidation Event, Liquidity Event, or public or private offering
         is expected to become effective, and (C) the date on which the books of
         the Corporation are expected to close or a record shall be taken with
         respect to any such event. Such notice shall be accompanied by a
         certificate prepared by the chief financial officer of the Corporation
         describing in detail (1) the material facts of such transaction, (2)
         the estimated amount(s) per share of Series A Preferred Stock or Common
         Stock (and cash of any accrued or undeclared but unpaid dividends on
         such shares of Series A Preferred Stock) each holder of Series A
         Preferred Stock would be expected to receive under all elections and
         options reasonably available to holders of Series A Preferred Stock
         pursuant to the applicable provisions of the Certificate of
         Designations, and (3) the facts upon which such amounts were
         determined.

                   (ii) Adjustments; Calculations. Upon the occurrence of each
         adjustment or readjustment of the Conversion Price pursuant to Section
         6 of the Certificate of Designations, the Corporation at its expense
         shall promptly compute such adjustment or readjustment in accordance
         with the terms hereof and prepare and furnish to each holder of Series
         A Preferred Stock a certificate setting forth in reasonable detail (i)
         such adjustment or readjustment, (ii) the Conversion Price before and
         after such adjustment or readjustment, and (iii) the number of shares
         of Common Stock and the amount, if any, of other property which at the
         time would be received upon the conversion of such holder's shares of
         Series A Preferred Stock (including any cash of any accrued or
         undeclared but unpaid dividends on such shares of Series A Preferred
         Stock). All such calculations shall be made to the nearest cent or to
         the nearest one hundredth (1/100) of a share as the case may be.
         Notwithstanding anything to the contrary contained herein, no
         adjustment in the Conversion Price need be made until all cumulative
         adjustments amount to an adjustment to the Conversion Price of at least
         (pound).07. Any adjustments that are not made shall be carried forward
         and taken into account in any subsequent adjustment.

              (h) Taxes. The Corporation will pay any documentary stamp or
similar issue or transfer taxes payable in respect of the issue or delivery of
shares of Common Stock on conversion of Series A Preferred Stock; provided,
however, that the Corporation will not be required to pay any tax which may be
payable in respect of any transfer involved in the issue or delivery of shares
of Common Stock in a name other than that of the holder of record of the Series
A Preferred Stock to be converted and no such issue or delivery will be made
unless and until the person requesting the issue or delivery has paid to the
Corporation the amount of any such tax or has established, to the satisfaction
of the Corporation, that the tax has been paid.

              (i) Other Dilutive Events. In case any event shall occur as to
which the provisions of Section 6 of the Certificate of Designations are not
strictly applicable but the failure to make any adjustment would not, in the
reasonable opinion of the holder, fairly protect the rights represented by the
Certificate of Designations in accordance with the essential intent and
principles of such Section, then, in each such case, at the reasonable request
of the holder,

                                       15
<PAGE>

the Corporation shall appoint a firm of Independent Financial Advisors (which
shall be completely independent of the Corporation, which shall give their
opinion upon the adjustment, if any, on a basis consistent with the essential
intent and principles established in Section 6 of the Certificate of
Designations, necessary to preserve, without dilution, the rights represented by
the Certificate of Designations. Upon receipt of such opinion, the Corporation
will promptly mail a copy thereof to the Holder and shall make the adjustments
described therein.

              (j) Accountants' Report as to Adjustments. In each case of any
adjustment or readjustment in the Conversion Price, the Corporation will
promptly compute such adjustment or readjustment (in accordance with Section
6(g)(ii) of the Certificate of Designations). In the event of a dispute in
connection with such adjustment, the Corporation will cause independent
accountants of recognized international standing (which may be the regular
auditors of the Corporation) to verify such computation (other than any
computation of the Fair Value of property as determined in good faith by the
Board of Directors of the Corporation) and prepare a report setting forth such
adjustment or readjustment and showing in reasonable detail the method of
calculation thereof and the facts upon which such adjustment or re-adjustment is
based. The Corporation will promptly mail a copy of each such report to each
holder and will, upon the written request at any time of any holder, furnish to
such holder a like report setting forth the Conversion Price at the time in
effect and showing in reasonable detail how it was calculated. The Corporation
will also keep copies of all such reports at its registered office and will
cause the same to be available for inspection at such office during normal
business hours by the holders.

         Section 7. No Reissuance of Series A Preferred Stock. Upon any
conversion, exchange or redemption of shares of Series A Preferred Stock, the
shares of Series A Preferred Stock which are converted, exchanged or redeemed
will be canceled, retired and eliminated from the shares the Corporation is
authorized to issue and the number of shares of Series A Preferred Stock which
the Corporation will have authority to issue will be reduced so that the shares
of Series A Preferred Stock which were converted, exchanged or redeemed may not
be re-issued.

         Section 8. Redemption at the Option of the Holder.

              (a) At the option of a Majority in Interest of the holders, the
holders of Series A Preferred Stock will have the right to require the
Corporation to redeem any or all the shares of Series A Preferred Stock owned of
record by any such electing holder at the Series A Purchase Price (the "Holders'
Redemption"), upon and after the occurrence of a Redemption Event; provided,
however, that the Holders' Redemption cannot be exercised on more than three (3)
separate occasions or for an aggregate Series A Purchase Price equal to less
than (i) (pound)5.0 million on any occasion or (ii) 100% of the remaining shares
of Series A Preferred Stock outstanding at the time if exercise of the Holders'
Redemption would result in less than (pound)5.0 million of Original Issue Price
being owed with respect to all remaining outstanding shares of Series A
Preferred Stock in the aggregate. In such event, the Corporation shall be
required to redeem, subject to the limitations of Section 8(d) of the
Certificate of Designations, the Mirror Preferred Stock in the manner provided
in Section 8(c) of the Certificate of Designations and shall be required to
cause, subject to the limitations of Section 8(d) of the Certificate of

                                       16
<PAGE>

Designations, UK Parent to redeem the Mirror Notes and Mirror PIK Notes, if any,
in the manner provided in Section 8(c) of the Certificate of Designations. The
date on which such Redemption Event occurs is referred to as the "Redemption
Event Trigger Date." A "Redemption Event" shall mean, with respect to the shares
of Series A Preferred Stock elected to be purchased by the holders, (i) any
Liquidity Event or (ii) a date subsequent to December 17, 2007 if the Bank
Indebtedness and the Mezzanine Indebtedness have been paid in full on or before
such date. The "Series A Purchase Price" shall be equal to the Series A
Preference Amount.

              (b) Holders Redemption Offer Procedures. Within five (5) Business
Days after the Corporation becomes aware of the occurrence of a Redemption Event
and in any event not later than the Redemption Event Trigger Date, the
Corporation shall mail a notice (the "Holders' Redemption Offer") to each of the
holders notifying them that the shares of Series A Preferred Stock will be
purchased and redeemed, respectively, at the election of the holders in
accordance with Section 8 of the Certificate of Designations. If a Majority in
Interest of the holders elect to exercise their redemption rights pursuant to
Section 8 of the Certificate of Designations, they shall give notice to the
Corporation setting forth the number of shares of Series A Preferred Stock to be
redeemed and the purchase date shall be the earlier of (i) a date selected by
the Corporation, but not later than 30 days from the date such notice is given,
or (ii) if such notice relates to a Liquidity Event and is given prior to the
occurrence of the Liquidity Event, the date of completion of the Liquidity Event
(the "Holders' Redemption Purchase Date"). An election to exercise purchase and
redemption rights pursuant to this Section 8 of the Certificate of Designations
in connection with a Liquidity Event shall in all circumstances be conditional
upon the completion of the Liquidity Event and no obligation to purchase or
redeem, as the case may be, shares of Series A Preferred Stock shall arise if
the Liquidity Event is not completed. In the event a Holders' Redemption is
exercised with respect to a Liquidity Event, the holders will be entitled to
withdraw their election to tender the shares of Series A Preferred Stock by
delivering to the Corporation, for receipt not later than the close of business
on the second Business Day preceding the Holders' Redemption Purchase Date, a
facsimile transmission or letter to that effect. Upon a holder's election to
tender any shares of Series A Preferred Stock, the holder will be required to
surrender such shares of Series A Preferred Stock to the Corporation prior to
the close of business on the Business Day preceding the Holders' Redemption
Purchase Date. On the Holders' Redemption Purchase Date, the Corporation will
purchase the shares of Series A Preferred Stock tendered pursuant to Section
8(a) of the Certificate of Designations for cash in an amount equal to the
aggregate Series A Purchase Price for all shares of Series A Preferred Stock
tendered for purchase. If not all of the shares of Series A Preferred Stock
tendered pursuant to a Holders' Redemption Offer can be purchased or redeemed,
respectively, by the Corporation for any reason, the Corporation shall select,
on or prior to the Holders' Redemption Purchase Date, the shares of Series A
Preferred Stock (or portions thereof) to be purchased and redeemed, as the case
may be, pro rata among the holders and dividends shall continue to accrue on all
shares of Series A Preferred Stock not redeemed, provided, however, that nothing
in this Section 8 of the Certificate of Designations shall be deemed a waiver or
contractual impairment of the right of the holders to have all shares of Series
A Preferred Stock purchased and redeemed in full pursuant to Section 8(a) of the
Certificate of Designations and the Corporation shall not be relieved of its
obligations to redeem

                                       17
<PAGE>

unredeemed shares of Series A Preferred Stock in full. Promptly after the
Holders' Redemption Purchase Date, the Corporation shall, with respect to any
shares of Series A Preferred Stock not purchased or redeemed, respectively, in
whole, return to the appropriate holders, the unredeemed shares of Series A
Preferred Stock or a new stock certificate, as the case may be, equal in number,
to the unredeemed portion of the tendered shares of Series A Preferred Stock.

              (c) Mandatory Redemption of Mirror Preferred Stock. Upon written
notice to UK Parent of the Corporation's intention to purchase and redeem the
shares of Series A Preferred Stock pursuant to Section 8(a) and (b) of the
Certificate of Designations (which notice the Corporation will be required to
serve as soon as reasonably practical after notice of election is given to the
Corporation pursuant to Section 8(b) of the Certificate of Designations), and
subject to the limitations of Section 8(d) of the Certificate of Designations,
the Corporation shall cause UK Parent to, immediately prior to such purchase and
redemption by the Corporation, redeem the Mirror Preferred Stock. Concurrently,
and subject to the limitations of Section 8(d) of the Certificate of
Designations, the Corporation shall cause TWUK to immediately prior to such
purchase and redemption by UK Parent, to redeem the Mirror Notes and the Mirror
PIK Notes. The Corporation shall use the funds it receives from such redemption
of the Mirror Preferred Stock (which in turn will have been derived from funds
UK Parent receives from the redemption of the Mirror Notes and the Mirror PIK
Notes) to purchase and redeem the shares of Series A Preferred Stock tendered by
the holders and accepted for redemption by the Corporation pursuant to Section
8(b) of the Certificate of Designations.

              (d) Holders' Redemption Prohibited. If, at a Holders' Redemption
Purchase Date the Corporation is prohibited or prevented under Applicable Laws
(including lack of surplus under the laws of the State of New York) or under any
other contractual or other arrangement, or other legal restriction whatsoever,
directly or indirectly (which shall be deemed to encompass a similar prohibition
or prevention with respect to UK Parent's or TWUK's or other Subsidiary's of the
Corporation compliance with the provisions of Section 8(c) of the Certificate of
Designations), from purchasing all shares of Series A Preferred Stock for which
purchase is elected hereunder pursuant to the Holders' Redemption, then the
Corporation shall purchase such shares of Series A Preferred Stock to the extent
permissible and shall purchase the remaining shares of Series A Preferred Stock
as soon as the Corporation is not so prohibited. The Corporation shall use all
reasonable endeavors to take such action as shall be necessary or appropriate to
review and promptly remove any impediment to its ability to purchase the shares
of Series A Preferred Stock under the circumstances contemplated by Section 8(a)
of the Certificate of Designations, respectively (including to cause UK Parent
and/or TWUK to take substantially similar actions); provided, however, that this
provision shall not require the repayment of Designated Indebtedness other then
upon the occurrence of a Liquidity Event. In the event that the Corporation
fails for any reason to purchase any shares of Series A Preferred Stock for
which purchase is required pursuant to Section 8(a) of the Certificate of
Designations, then (i) the holders shall have the right to revoke their
exercises of the Holders' Redemption at any time and (ii) if the holders do not
elect to so revoke such exercise, during the period from the applicable Holders'
Redemption Purchase Date through the date on which such shares of Series A
Preferred Stock are purchased and redeemed, the Corporation shall pay, in
addition to such amounts due pursuant to exercise of the Holders' Redemption, to
the holders an amount equal to

                                       18
<PAGE>

two percent (2%) per annum of the Series A Purchase Price for any of the shares
of Series A Preferred Stock not purchased hereunder and the shares of Series A
Preferred Stock which remain outstanding shall continue to accrue dividends at
the rate provided in Section 2 of the Certificate of Designations, plus two
percent (2%) per annum. Nothing in this Section 8(d) of the Certificate of
Designations shall impair or be deemed to limit, modify or affect the rights of
the holder to pursue any available remedy, at law or in equity, to enforce or
seek to enforce, in any manner whatsoever, the Corporation's obligations under
this Section 8 of the Certificate of Designations, including without limitation
filing any suit or complaint or seeking to file a suit or complaint with any
court of competent jurisdiction to obtain injunctive or other equitable relief
and/or damages arising from a breach of the Corporation's obligation to purchase
the shares of Series A Preferred Stock and enforcing any judgment obtained in
any such suit in any manner available under Applicable Laws to judgment
creditors in general.

         Section 9. Conversion at the Option of the Corporation.

              (a) Subject to the provisions of the Business Corporation Law of
New York and to any other applicable restrictions on the right of a corporation
to redeem its own shares, the Corporation, at the option of the Board of
Directors, may at any time or from time to time convert the outstanding Series A
Preferred Stock, in whole, but not in part, without the payment of any
additional consideration, into (i) fully paid and nonassessable shares of Common
Stock (at the Common Conversion Rate) and (ii) the payment in cash of any
accrued or declared but unpaid dividends on such shares of Series A Preferred
Stock. Notwithstanding the foregoing, the Corporation shall not have the right
to convert the shares of Series A Preferred Stock unless and until a Qualified
Public Value is achieved; provided further, that, if the Corporation converts
the shares of Series A Preferred Stock prior to December 17, 2002, for purposes
of this Section 9 of the Certificate of Designations, the cash payment required
by clause (ii) of this Section 9(a) of the Certificate of Designations shall be
increased by such amounts necessary to give effect to all accrued or declared
but unpaid dividends on such shares of Series A Preferred Stock which have not
yet accrued but will accrue assuming that such Conversion Date occurred on
December 17, 2002. In the event the Corporation elects to convert the shares of
Series A Preferred Stock pursuant to this Section 9(a) of the Certificate of
Designations, it shall promptly notify the holders in writing of such proposed
conversion. The holders will have the right (which right if exercised, will take
priority over the Corporation's right of conversion) to convert the shares of
Series A Preferred Stock, in whole or in part, at any time on or before the
Conversion Date (such date shall be referred to herein as the "Conversion Date")
of the shares of Series A Preferred Stock complying with the provisions for
voluntary conversion set forth in Section 5 of the Certificate of Designations
(the "Holders' Conversion Right"). The Corporation shall not be permitted to
exercise its conversion right pursuant to this Section 9(a) of the Certificate
of Designations unless contemporaneously with the delivery of the notice to the
holders referred to above it complies with the provisions of Section 9(c) of the
Certificate of Designations.

              (b) Conversion Procedures for Series A Preferred Stock. The
election of the Corporation to convert shares of Series A Preferred Stock
pursuant to Section 9(a) of the Certificate of Designations shall be evidenced
by a Board Resolution. Notice of conversion of the shares of Series A Preferred
Stock ("Conversion Securities") shall be mailed, at the

                                       19
<PAGE>

Corporation's expense, not less than thirty (30) nor more than sixty (60) days
prior to the Conversion Date, to each holder. All notices of conversion shall
include the following information: (1) the Conversion Date; (2) the number of
shares of Common Stock to be issued to each holder at the Common Conversion Rate
plus the amount of cash to be paid with respect to all accrued or declared but
unpaid dividends on the shares of Series A Preferred Stock; (3) the place or
places where such Conversion Securities are to be surrendered; (4) that the
holders may convert the shares of Series A Preferred Stock prior to the
Conversion Date; and (5) a copy of the Board Resolution, certified by the
Secretary of the Corporation.

              (c) Deposit of Dividend Amounts. Prior to any Conversion Date with
respect to the shares of Series A Preferred Stock, the Corporation shall deposit
with a paying agent, or into a segregated account of the Corporation, an amount
of money sufficient to pay the amount of accrued or declared but unpaid
dividends (as calculated pursuant to Section 9(a) of the Certificate of
Designations) on all shares of Series A Preferred Stock which are to be
converted. The holders' obligation to tender the shares of Series A Preferred
Stock called for conversion by the Corporation or the exercise of the Holders'
Conversion Right shall not arise until such time as sufficient funds have been
deposited to pay such amounts for the Conversion Securities to be redeemed.

              (d) Conversion Securities Payable on Conversion Date. Notice of
conversion having been given as provided in Section 9(b) of the Certificate of
Designations, the Conversion Securities to be converted on the Conversion Date,
shall be converted into shares of Common Stock (plus applicable cash in the
amount of any accrued or declared but unpaid dividends on the shares of Series A
Preferred Stock. Upon conversion in accordance with this Section 9 of the
Certificate of Designations, all rights with respect to the Series A Preferred
Stock so converted shall terminate, except the rights of the holders thereof
upon surrender of their certificate or certificates therefore or delivery of an
affidavit of loss thereof together with an indemnity agreement in form
reasonably satisfactory to the Corporation to receive certificates for the
number of shares of Common Stock (plus cash in the amount of any accrued or
declared but unpaid dividends on the shares of Series A Preferred Stock) into
which such shares of the Conversion Securities have been converted. If so
required by the Corporation, certificates surrendered for conversion shall be
endorsed or accompanied by a written instrument or instruments of transfer, in
form satisfactory to the Corporation, duly executed by the registered holder or
by an attorney-in-fact duly authorized in writing. Upon surrender of such
certificates or affidavit of loss together with an indemnity agreement in form
reasonably satisfactory to the Corporation, the Corporation shall issue and
deliver to such holder, promptly at such office and in its name as shown on such
surrendered certificate or certificates, a certificate or certificates for the
number of shares of Common Stock (plus cash in the amount of any accrued or
declared but unpaid dividends on the shares of Series A Preferred Stock) into
which the shares of the Series A Preferred Stock surrendered are convertible on
the Conversion Date. If any of the Conversion Securities called for conversion
by the Corporation shall not be paid upon surrender thereof by the holders for
the proper and correct number of shares of Common Stock (plus cash in the amount
of the accrued or declared but unpaid dividends on the shares of Series A
Preferred Stock), dividends shall continue to accrue at the rates borne by the
Conversion Securities on any amount payable thereon, the conversion of the
Series A Preferred Stock shall be deemed not to

                                       20
<PAGE>

have occurred, the shares of Series A Preferred Stock shall be deemed owned and
outstanding by the holders thereof, and any conversion of the shares of Series A
Preferred Stock by the Corporation henceforth shall comply with the provisions
of this Section 9 of the Certificate of Designations in its entirety, including
without limitation, a new notice of conversion mailing and applicable time
periods as provided in Section 9(b) of the Certificate of Designations.

         Section 10. Ranking. The shares of Series A Preferred Stock will, with
respect to the payment of dividends and the distribution of assets on
liquidation, dissolution or winding-up of the Corporation, unless otherwise
provided in the Corporation's Certificate of Incorporation or a certificate of
amendment setting forth the designations, rights and preferences relating to a
subsequently issued series of preference stock of the Corporation, rank (i) on a
parity with any other class or series of preferred stock issued by the
Corporation and (ii) prior to the Common Stock.

         Section 11. Miscellaneous.

              (a) Except as otherwise expressly provided in the Certificate of
Designations, whenever a notice or other communication is required or permitted
to be given to holders of shares of Series A Preferred Stock, the notice or
other communication will be deemed properly given if deposited in the United
States mail, postage prepaid, addressed to the persons shown on the books of the
Corporation as the holders of the shares at the addresses as they appear in the
books of the Corporation, as of a record date or dates determined in accordance
with the Corporation's Certificate of Incorporation and By-laws, these
resolutions and applicable law, as in effect from time to time. Such notice will
be deemed received when so deposited.

              (b) Except as may otherwise be required by law, shares of Series A
Preferred Stock will not have any designations, preferences, limitations or
relative rights, other than those specifically set forth in the Certificate of
Designations and in the Certificate of Incorporation.

              (c) The headings of the various subdivisions of the Certificate of
Designations are for convenience only and will not affect the meaning or
interpretation of any of the provisions of the Certificate of Designations.

              (d) (i) Except as otherwise provided in this Section 11(d) of the
Certificate of Designations, the preferences, special rights or powers of the
Series A Preferred Stock may be waived, and any of the provisions of the Series
A Preferred Stock may be amended (and any existing Covenant Breach or Insolvency
Breach or compliance with any provision of the Certificate of Designations may
be waived) only by the affirmative vote at a meeting or the written consent of a
Majority in Interest of the holders.

                  (ii) Without the consent of every affected holder who is a
registered owner of shares of Series A Preferred Stock with an aggregate
Original Issue Price of (pound)500,000 or more, which such consent shall be
binding upon all holders, no amendment, supplement or waiver to the Certificate
of Designations shall: (i) reduce the Original Issue Price, principal amount or
value of the Series A Preferred Stock, Mirror Preferred Stock, Mirror Note
and/or Mirror PIK Note; (ii) reduce the number of shares of Common Stock
issuable upon conversion

                                       21
<PAGE>

of any shares of Series A Preferred Stock (except pursuant to adjustment
provisions as provided herein), change the fixed maturity date of any Mirror
Note or Mirror PIK Note or alter the provisions with respect to the redemption
of the Series A Preferred Stock, Mirror Preferred Stock, Mirror Note and/or
Mirror PIK Note in a manner adverse to the holders; (iii) reduce the rate of or
change the time for payment of dividends or interest on shares of Series A
Preferred Stock, Mirror Preferred Stock, Mirror Note and/or Mirror PIK Note;
(iv) waive a Covenant Breach or Insolvency Breach in the payment of principal
of, or interest or dividends on, any share of Series A Preferred Stock, Mirror
Preferred Stock, Mirror Note or Mirror PIK Note or on the payment of the Series
A Purchase Price or Series A Preference Amount or the Mirror Preferred Stock
Purchase Price or the Mirror Preferred Stock Preference Amount or the Mirror
Note Redemption Price or the Mirror PIK Note Redemption Price (except that a
Majority in Interest of the holders may (A) rescind an Accelerated Liquidity
that resulted from a non-payment default, and (B) waive the payment default that
resulted from such Accelerated Liquidity); (v) make any share of Series A
Preferred Stock or Mirror Preferred Stock or Mirror Note or Mirror PIK Note
payable in consideration other than that stated in such instruments; (vi) waive
a payment of the Series A Purchase Price, Series A Preference Amount, Mirror
Preferred Stock Purchase Price, Mirror Preferred Stock Preference Amount, Mirror
Note Redemption Price or Mirror PIK Note Redemption Price upon redemption or
purchase of the relevant Security; or (vii) make any change in this Section
11(d)(ii) of the Certificate of Designations.

                  (iii) After an amendment, supplement or waiver under this
Section 11(d) of the Certificate of Designations becomes effective, the
Corporation shall mail to the holders a notice briefly describing the amendment,
supplement or waiver. Any failure of the Corporation to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such amendment, supplement or waiver.

         Section 12. Defined Terms.

         In addition to any terms defined elsewhere in the Certificate of
Designations, unless otherwise specifically provided herein, the following terms
shall have the following meanings for all purposes when used in the Certificate
of Designations:

              "Accelerated Liquidity" shall have the meaning set forth in
Section 17(c)(ii) of the Certificate of Designations.

              "Accrued Earnout" means, as of any date and with respect to any
Earnout , an amount equal to the greater of (a) the product of (1) the Maximum
Earnout with respect to such Earnout and (2)(A) the Actual Measure minus the
Base Measure divided by (B) the Target Measure minus the Base Measure and (b)
zero. "Actual Measure" means, with respect to any Earnout, the amount of the
financial performance measure of the acquired business or assets on which such
Earnout is based as of the end of such Company's most recently ended fiscal
quarter. "Base Measure" means, with respect to any Earnout, the amount of the
financial performance measure of the acquired business or assets on which such
Earnout is based on the date of the acquisition in connection with which such
Earnout was created. "Target Measure" means, with respect to any Earnout, the
minimum amount of the financial performance measure of the acquired business or
assets that, if attained, would result in the Maximum Earnout becoming due.

                                       22
<PAGE>

              "Acquired Person" means, with respect to any specified Person, any
other Person, or the assets of any other Person, acquired by such specified
Person, whether by acquisition, merger, consolidation, other business
combination or otherwise.

              "Additional Series A Director" has the meaning ascribed thereto in
Section 17(c)(i)(2) of the Certificate of Designations.

              "Affiliates" means, with respect to any specified Person, any
other Person directly or indirectly controlling (including, but not limited to,
each director and executive officer of such Person), controlled by or under
direct or indirect common control with such specified Person. A Person shall be
deemed to control a company if such Person possesses, directly or indirectly,
the power to direct or cause the direction of the management and policies of
such company whether through the ownership of voting securities, by contract or
otherwise. Notwithstanding the foregoing, in no event shall the Institutional
Investors be considered Affiliates of the Corporation for purposes of the
Certificate of Designations.

              "Affiliate Transaction" has the meaning ascribed thereto in
Section 13(f)(i) of the Certificate of Designations.

              "Applicable Laws" means, with respect to any Person, property,
transaction or event, all applicable laws (including, without, limitation,
Environmental Laws), statutes, legislation, regulations, treaties, judgments and
decrees and (whether or not having the force of law) all applicable official
directives, rules, consents, licenses, recognitions, grants, confirmations,
permissions, determinations, certifications, approvals, authorizations,
guidelines, orders and policies of any Governmental Entity having authority over
such Person.

              "Attributable Debt" in respect of a Sale/Leaseback Transaction
means, at the time of determination, the present value (discounted at the
average interest rate borne by the Credit Agreements, compounded annually) of
the total obligations of the lessee for rental payments during the remaining
term of the lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended).

              "Bank Indebtedness" means any and all amounts payable by any of
the Group Companies under or in respect of the Credit Facility and any
Refinancing Indebtedness of any of the Group Companies with respect thereto, as
amended from time to time, including principal, premium (if any), interest
(including interest accruing on or after the filing of any Insolvency
Proceedings relating to any of the Group Companies whether or not a claim for
post-filing interest is allowed in such proceedings), fees, charges, expenses,
reimbursement obligations, guarantees and all other amounts payable thereunder
or in respect thereof.

              "Banks" means Paribas, as arranger of the Credit Facilities, and
Barclays Bank, as agent.

              "Board of Directors" or "Board" means, with respect to any Person,
the Board of Directors or other

                                       23
<PAGE>

governing body of such Person or any committee thereof duly authorized, with
respect to any particular matter, to exercise the power of the Board of
Directors or other governing body of such Person. When used without any
reference to a specific Person, the term "Board of Directors" or "Board" shall
be deemed to mean the Board of Directors of the Corporation.

              "Board Resolution" means a resolution of the Board of Directors of
the Corporation which has been (i) duly passed at a meeting duly convened and
held with the affirmative vote of not less than a majority of all members of the
Board of Directors then serving as such, whether or not all such directors are
present and voting at the meeting, or (ii) adopted by written consent in lieu of
a meeting of the Board of Directors signed by each of the members of the Board
of Directors then serving as such.

              "Breach" means any event which is, or after notice or passage of
time or both would be, an Insolvency Breach.

              "Breach Interest Rate" shall have the meaning set forth in Section
17(c)(i)(1) of the Certificate of Designations.

              "Budget" means the annual operating budget referred to in Section
14(a)(iii) of the Certificate of Designations.

              "Business Day" means any day other than a Legal Holiday.

              "Capital Shares" of any Person means any and all shares,
interests, participations, and/or other equivalents of or in (however
designated) shares or equity securities of such Person, including each class of
common stock, ordinary shares and preferred shares of such Person, and
partnership or limited liability company interests, whether general or limited,
of such Person, and including any securities convertible into or exercisable or
exchangeable for rights to subscribe for, and any options, warrants or other
rights to acquire, any such shares or equity securities of such Person,
including for the avoidance of doubt, the Series A Preferred Stock. When used
without any reference to a specific Person, the term "Capital Shares" shall be
deemed to mean the Capital Shares of the Corporation.

              "Certificate of Designations" means that portion of Section I of
Article Fourth of the Certificate of Incorporation of the Corporation entitled
Series A Convertible Preferred Stock.

              "Charter Documents" means the certificate of incorporation and
bylaws and/or other applicable constitutional documents of an entity each as
amended to date and as presently in effect.

              "Closing" has the meaning ascribed thereto in Section 1.2 of the
Master Reorganization Agreement.

              "Closing Date" has the meaning ascribed thereto in Section 2(a) of
the Certificate of Designations.

                                       24
<PAGE>

              "Closing Price" means the last sale price or the closing mid-price
(whichever shall be the usual method of reporting for the relevant market)
reported for the publicly traded shares of Common Stock on the New York Stock
Exchange, the NASDAQ National Market, the American Stock Exchange or a
Designated Offshore Securities Market, or if the context so requires, any other
established securities market including over-the-counter markets.

              "Code" means the Internal Revenue Code of 1986, as amended, and
any successor thereto, and any regulations promulgated thereunder.

              "Common Conversion Rate" shall have the meaning set forth in
Section 5(a) of the Certificate of Designations.

              "Common Stock" means the common stock, par value $.01 per share,
of the Corporation.

              "Common Stock Deemed Outstanding" shall have the meaning set forth
in Section 6(a)(x) of the Certificate of Designations.

              "Companies" means collectively, the Corporation, UK Parent and
TWUK considered as a single enterprise, until a successor replaces the
Corporation, UK Parent or TWUK and thereafter includes the successor or
successors, as the case may be.

              "Consolidated" or "consolidated", when used with reference to any
accounting term, means the amount described by such accounting term, determined
on a consolidated basis in accordance with Applicable Laws and in accordance
with accounting principles, standards and practices generally accepted at the
relevant date in the United States consistently applied, after elimination of
intercompany items.

              "Covenant Breach" has the meaning ascribed thereto in Section
17(a) of the Certificate of Designations.

              "Conversion Date" shall have the meaning set forth in Section 9(a)
of the Certificate of Designations.

              "Conversion Price" shall have the meaning set forth in Section
5(a) of the Certificate of Designations.

              "Conversion Securities" shall have the meaning set forth in
Section 9(b) of the Certificate of Designations.

               "Convertible Securities" shall have the meaning set forth in
Section 6(a)(i) of the Certificate of Designations.

               "Credit Agreements" means the Credit Facility and the Mezzanine
Facility.

              "Credit Facility" means the credit agreement dated as of December
17, 1999 among the Group Companies named therein, the Banks and the other
lenders, if any, parties

                                       25
<PAGE>

thereto from time to time, as amended, restated, supplemented, waived, replaced
(whether or not upon termination, and whether with the original lenders or
otherwise), refinanced, restructured, or otherwise modified from time to time
(except to the extent that any such amendment, restatement, supplement, waiver,
replacement, refinancing, restructuring, or other modification thereto would be
prohibited by Section 13(i) of the Certificate of Designations unless otherwise
agreed by a Majority in Interest of the holders).

              "Designated Indebtedness" means: (a) Bank Indebtedness; (b)
Mezzanine Indebtedness; or (c) Refinancing Indebtedness with respect thereto.

              "Designated Offshore Securities Market" means the London Stock
Exchange, the New Market of the Frankfurt Stock Exchange or, if approved in
writing by a Majority in Interest of the holders, any other recognized
investment exchange (as such term is used in the Financial Services Act of
1986).

              "Disposition" means, with respect to any Person, any disposal,
merger, consolidation or other business combination involving such Person
(whether or not such Person is the Surviving Person) or the sale, assignment,
transfer, lease, conveyance or other disposition, in any such case, of all or
substantially all of such Person's assets in one transaction or a series of
related transactions.

              "Disqualified Capital Shares" means, with respect to any Person,
any Capital Shares of such Person that, by their terms, by the terms of any
agreement related thereto or by the terms of any security into which they are
convertible or exchangeable, are, or upon the happening of an event or the
passage of time would be, required to be redeemed or repurchased by such Person
or its Subsidiaries, including at the option of the holder, in whole or in part,
or have, or upon the happening of an event or passage of time would have, a
sinking fund or similar payment due, including without limitation the Series A
Preferred Stock.

              "Earnout" means, with respect to any acquisition, any arrangement
pursuant to which any of the Group Companies is, or may become, obligated to
make one or more payments to the seller of an Acquired Person or acquired
Property or assets based upon the financial performance of the company, business
or assets being acquired by any of the Group Companies.

              "Environment" means soil, surface waters, groundwater, land,
sediments, surface or subsurface strata, air or any environmental medium.

              "Environmental Law(s)" means and includes any federal, state,
local, municipal or foreign statute, law (including, without limitation, common
law), ordinance, rule, regulation, code, order, writ, judgment, permit,
authorization, approval, consent, concession, grant, franchise, license,
agreement, injunction, decree or other government restriction or judicial or
agency interpretation, policy or guidance, in each case having the force of law,
relating to the Environment, pollution, chemical use, health, occupational
health, health protection, safety or natural resources.

                                       26
<PAGE>

              "Fair Value" means the fair market value as determined in good
faith by the Board of Directors of the Corporation.

              "Filing Date" shall have the meaning set forth in Section 6(a) of
the Certificate of Designations.

              "Finance Lease Obligation" of any Person means the obligation to
pay rent or other payment amounts under a lease of (or other Indebtedness
arrangements conveying the right to use) real or personal property owned by or
used by such Person which is required to be classified and accounted for as a
finance lease or a liability on the face of a balance sheet of such Person
prepared in accordance with Applicable Laws and in accordance with accounting
principles, standards and practices generally accepted at the Filing Date in the
United Kingdom or, if the Person is an American entity, the United States,
consistently applied. The stated maturity of such obligation shall be the date
of the last payment of rent or any other amount due under such lease prior to
the first date upon which such lease may be terminated by the lessee without
payment of a penalty.

              "Governmental Entity" means any governmental or quasi-governmental
authority or regulatory authority including, without limitation, the National
Health Service, any federal, state, provincial, territorial, county, municipal
or other governmental or quasi-governmental agency, board, parliament,
legislature, regulatory authority, local health authority, agency, tribunal,
commission, branch, bureau, commission, court, arbitrator, department or other
law, regulation or rule-making entity or other instrumentality or political unit
or subdivision having or purporting to have jurisdiction on behalf of any
nation, state, province, municipality, district or any subdivision thereof.

              "Group Assets" means the Consolidated assets of the Group
Companies.

              "Group Companies" means the Corporation, UK Parent, TWUK and their
respective Subsidiaries (each such entity, a "Group Company").

              "Group Revenues" means the Consolidated revenues (turnover) of the
Group Companies.

              "Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person guaranteeing any Indebtedness of any other Person (the
"Primary Obligor") in any manner, whether directly or indirectly, and including,
without limitation, any obligation of such Person, (a) to purchase or pay (or
advance or supply funds, for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (b) to purchase property, securities or
services for the purpose of assuring the holder of such Indebtedness of the
payment of such Indebtedness, or (c) to maintain working capital, equity capital
or other financial statement, condition or liquidity of the Primary Obligor so
as to enable the Primary Obligor to pay such Indebtedness (and "Guaranteed,"
"Guaranteeing" and "Guarantor" shall have meanings correlative to the
foregoing); provided, however, that the Guarantee by any Person shall not
include endorsements by such Person for collection or deposit, in either case,
in the ordinary course of business.

                                       27
<PAGE>

              "Hedging Obligations" means, with respect to any Person, any
interest rate option agreement, interest rate collar agreement, interest rate
swap agreement, interest rate cap agreement, cross currency rate swap agreement,
currency swap agreement, interest rate protection agreement or other financial
agreement or arrangement designed to protect any of the Group Companies against
fluctuations in interest rates or currency exchange rates and which shall have a
notional amount no greater than the payments due with respect to Indebtedness
being hedged thereby.

              "holders" shall mean the holders of the Series A Preferred Stock,
unless such other meaning is clearly ascribed herein.

              "Holders' Conversion Right" shall have the meaning set forth in
Section 9(a) of the Certificate of Designations.

              "Holders' Redemption" shall have the meaning set forth in Section
8(a) of the Certificate of Designations.

              "Holders' Redemption Offer" shall have the meaning set forth in
Section 8(b) of the Certificate of Designations.

              "Holders' Redemption Purchase Date" shall have the meaning set
forth in Section 8(b) of the Certificate of Designations.

              "Incur" or "incur" means, with respect to any Indebtedness or
other obligation of any Person, to create, issue, incur (by conversion, exchange
or otherwise), assume, Guarantee, including by way of merger with, or
acquisition of, another Person (and "Incurrence," "Incurred," "Incurrable" and
"Incurring" shall have meanings correlative to the foregoing).

              "Indebtedness" means, with respect to any Person on any date of
determination, (a) all liabilities, contingent or otherwise, of such Person (i)
for borrowed money (whether or not the recourse of the lender is to the whole of
the assets of such Person or only to a portion thereof and whether short-term or
long-term, secured or unsecured), (ii) evidenced by bonds, notes, debentures,
drafts accepted or other similar instruments or letters of credit (including (A)
liabilities representing the deferred or contingent purchase price of, or the
balance deferred and unpaid of the purchase price of any Property, except for
trade accounts payable in the ordinary course of business, and (B) Earnouts in
an amount equal to the Accrued Earnout), (iii) for the payment of money relating
to Finance Lease Obligations; (iv) for payment of money relating to all
Attributable Debt with respect to Sale/Leaseback Transactions or (v) under the
terms of any amendment, renewal, extension or refunding of any liability of the
types referred to in the preceding clauses (i), (ii), (iii) or (iv); (b) the
maximum fixed repurchase price of all Disqualified Capital Shares of such Person
or, if there is no such maximum fixed repurchase price, the liquidation
preference of such Disqualified Capital Shares, plus accrued but unpaid
dividends (including, without limitation, the Series A Preference Amount); (c)
reimbursement obligations of such Person with respect to letters of credit or
bankers' acceptances issued for the benefit of such Person; (d) Hedging
Obligations, on a net basis, of such Person; (e) all liabilities of others of
the kind described in the preceding clauses (a), (b), (c) and (d) that such
Person has

                                       28
<PAGE>

Guaranteed or that is otherwise such Person's legal liability; and (f) all
obligations of others secured by a Lien on any asset of such Person, whether or
not such Indebtedness is assumed by such Person; provided, however, that if the
obligations so secured have not been assumed by such Person or are not otherwise
such Person's legal liability, the amount of Indebtedness of such Person shall
be deemed to be the lesser of: (1) the fair market value of such asset at such
date of determination, as determined in good faith by the Board of Directors of
such Person, which determination shall be evidenced by a Board Resolution and
(2) the amount of such Indebtedness of such other Persons. For purposes of the
preceding sentence, the "maximum fixed repurchase price" of any Disqualified
Capital Shares that does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Capital Shares as if such
Disqualified Capital Shares were purchased on any date on which Indebtedness
shall be required to be determined pursuant to the Certificate of Designations,
and if such price is based upon, or measured by, the fair market value of such
Disqualified Capital Shares (or any equity security for or into which it may be
exchanged or converted), such fair market value shall be determined in good
faith by the Board of Directors of such Person.

              "Independent Financial Advisor" means a reputable accounting,
appraisal or a nationally recognized investment banking firm that is, in the
reasonable judgment of the Board of Directors of the Corporation (evidenced by a
certified copy of a Board Resolution of the Corporation in this regard),
qualified to perform the task for which such firm has been engaged hereunder and
disinterested and independent with respect to the Corporation and its
Affiliates.

              "Insolvency Breach" shall have the meaning set forth in Section
17(b) of the Certificate of Designations.

              "Insolvency Event" means, with respect to any Person, the
commencement of proceedings taken with a view to liquidation, bankruptcy,
winding-up, administration, administrative receivership, dissolution or any
other insolvency proceedings of that Person or analogous proceedings under the
laws of any other jurisdiction (other than for purposes of a solvent
reorganization).

              "Insolvency Proceedings" means, with respect to any Person, any
corporate action or other steps are taken or formal insolvency proceedings are
started (whether by way of voluntary arrangement, scheme of arrangement or
otherwise, save for any solvent reorganization previously approved in writing by
the Institutional Investors) for the enforcement of a Lien over all or any of
such Person's revenues or assets or for the appointment of a liquidator,
receiver, administrator, administrative receiver, conservator, custodian,
trustee or similar officer of it or of any or all of its revenues or assets (or
any event occurs or proceedings are taken with respect to any such Person which
has a similar or equivalent effect to any of the foregoing).

              "Institutional Investors" means Triumph Partners III, L.P.,
Triumph III Investors, L.P., and Paribas.

              "Investment" means any investment by any Person in any other
Person, whether by a purchase of assets, in any transaction or series of related
transactions, individually or in the aggregate, subscription for Capital Shares,
capital contribution, loan, advance (other than

                                       29
<PAGE>

reasonable loans and advances to employees for moving and travel expenses, as
salary advances, and other similar expenses incurred, in each case in the
ordinary course of business consistent with past practice) and any Guarantee of
Indebtedness of such other Person.

              "Junior Stock" has the meaning set forth in Section 2(b) of the
Certificate of Designations.

              "Lead Investor" shall mean Triumph Partners III, L.P.

              "Lien" means any mortgage, pledge, lien, encumbrance, option,
charge or adverse claim affecting title or resulting in an encumbrance against
real or personal property, or right of pre-emption, right of first refusal,
retention of title or a security interest of any kind, whether or not filed,
recorded or otherwise perfected under applicable law; provided that in no event
shall an operating lease (as opposed to a Finance Lease Obligation) be deemed to
constitute a Lien hereunder.

              "Legal Holiday" means a Saturday, Sunday or a day on which banking
institutions in New York, New York, are not required to be open.

              "Liquidation Event" has the meaning set forth in Section 4(a) of
the Certificate of Designations.

              "Liquidity Event" means (i) a sale, assignment, transfer, lease,
conveyance or other disposal of 90% or more of the Capital Shares of either the
Corporation, UK Parent or TWUK to a Person who is not an Institutional Investor
or an Affiliate of an Institutional Investor, including by way of scheme of
arrangement or other business combination (whether or not the Corporation, UK
Parent or TWUK is the Surviving Person), whether in one transaction or a series
of related transactions, (ii) a sale, assignment, transfer, lease, conveyance or
disposal of Property or assets of the Group Companies representing in the
aggregate 90% or more of the total value of all Group Assets or generating in
the aggregate 90% or more of all Group Revenues, whether voluntary or
involuntary, in one transaction or a series of related transactions, or (iii) an
Insolvency Event with respect to the Corporation, UK Parent or TWUK, other than
by reason of action taken by or on behalf of the Series A Director(s) or the
holders as a group.

              "Majority in Interest" means the holders of greater than 50% of
the sum of (i) all shares of Common Stock issuable upon conversion of all shares
of Series A Preferred Stock that remain outstanding as of the time of
determination and (ii) shares of Common Stock issued upon conversion of the
shares of Series A Preferred Stock; provided, however, that with respect to
clause (ii) only those shares of Common Stock beneficially owned by the Person
who converted the corresponding Series A Preferred Stock (or their Affiliates)
shall be included in the calculation of a Majority in Interest.

              "Master Reorganization Agreement" means the Master Reorganization
Agreement, dated as of April 24, 2002, by and among the Corporation, UK Parent,
TWUK, the Lead Investor, and the Investors named therein, as the same may be
amended from time to time.

                                       30
<PAGE>

              "Maximum Earnout" means, with respect to any Earnout, the maximum
amount that may (without regard to the likelihood of such an occurrence) become
payable under such Earnout.

              "Mezzanine Facility" means the credit agreement dated as of
December 17, 1999 among TWUK, the Subsidiaries of TWUK named therein, the
lenders named therein, as amended, restated, supplemented, waived, replaced
(whether or not upon termination, and whether with the original lenders or
otherwise), refinanced, restructured or otherwise modified from time to time
(except to the extent that any such amendment, restatement, supplement, waiver,
replacement, refinancing, restructuring or other modification thereto would be
prohibited by Section 9.2(h) of the Securities Purchase Agreement unless
otherwise agreed by a Majority in Interest of the holders).

              "Mezzanine Indebtedness" means any and all amounts payable by any
of the Companies under or in respect of the Mezzanine Facility, as amended from
time to time, including principal, premium (if any), interest (including
interest accruing on or after the filing of any Insolvency Proceedings relating
to TWUK whether or not a claim for post-filing interest is allowed in such
proceedings), fees, charges, expenses, reimbursement obligations, guarantees and
all other amounts payable thereunder or in respect thereof.

              "Mirror Notes" has the meaning ascribed thereto in the Securities
Purchase Agreement.

              "Mirror Note Redemption Price" means at any given time, the amount
of principal plus unpaid interest with respect to the Mirror Note.

              "Mirror PIK Notes" has the meaning ascribed thereto in the
Securities Purchase Agreement.

              "Mirror PIK Note Redemption Price" means, at any given time, the
amount of principal plus unpaid interest with respect to any Mirror PIK Note.

              "Mirror Preferred Stock" means the cumulative redeemable
preference shares of 1 pound each in the capital of UK Parent.

              "Mirror Preferred Stock Preference Amount" means the Preference
Share Amount (as such term is defined in the Articles of Association of UK
Parent).

              "Mirror Preferred Stock Purchase Price" means the Preference Share
Amount (as such term is defined in the Articles of Association of UK Parent).

              "Officer" means, with respect to any of the Companies, the chief
executive officer, the president, the chief financial officer, or group managing
director of such Company.

              "Officers' Certificate" means a certificate executed on behalf of
a Company by two Officers of such Company.

                                       31
<PAGE>

              "Options" shall have the meaning set forth in Section 6(a)(i) of
the Certificate of Designations.

              "Original Issue Price" has the meaning set forth in Section 4(a)
of the Certificate of Designations.

              "Payment Restriction" means, with respect to a Subsidiary of any
Person, any encumbrance, restriction or limitation or operation of the terms of
its Charter Documents, on the ability of (a) such Subsidiary to (i) pay
dividends or make other distributions on its Capital Shares or make payments on
any obligation, liability or Indebtedness owed to such Person or any other
Subsidiary or holding company of such Person, (ii) make loans or advances to
such Person or any other Subsidiary or holding company of such Person, or (iii)
transfer any of its properties or assets to such Person or any other Subsidiary
or holding company of such Person, or (b) such Person or any other Subsidiary or
holding company of such Person to receive or retain any such (i) dividends,
distributions or payments, (ii) loans or advances, or (iii) transfers of
properties or assets.

              "Person" means any individual, corporation, limited or general
partnership, company, business trust, firm, or other association or business
entity created and/or recognized under Applicable Law, or any Governmental
Entity.

              "Property" or "property" means any assets or property of any kind
or nature whatsoever, real, personal, or mixed (including fixtures), whether
tangible or intangible.

              "Qualified Average Price" means the Closing Price per share of
Common Stock as reported by the principal securities exchange on which the
shares of Common Stock are listed for trading, so long as such exchange is the
New York Stock Exchange, the NASDAQ National Market, the American Stock Exchange
or a Designated Offshore Securities Market, for 30 consecutive Trading Days,
provided that (i) on each one of such Trading Days the Closing Price is equal to
or higher than the minimum price required to achieve a Qualified Public Value if
such price alone was deemed to equal the Qualified Average Price and (ii)
throughout such 30-day period at least 20% of the shares of Common Stock
outstanding are held by Persons who are not Affiliates of the Corporation, any
Group Company or any holder and are freely transferable in the public trading
market.

              "Qualified Public Value" means a Qualified Average Price such that
the product of such Qualified Average Price times the aggregate number of shares
of Common Stock issued pursuant to or issuable upon conversion of the shares of
Series A Preferred Stock is equal to or greater than 2.5 times the Total
Investment.

              "Redemption Event" shall have the meaning set forth in Section
8(a) of the Certificate of Designations.

              "Redemption Event Trigger Date" shall have the meaning set forth
in Section 8(a) of the Certificate of Designations.

                                       32
<PAGE>

              "Refinancing Indebtedness" means Indebtedness that is Incurred to
refund, refinance, replace, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) any Indebtedness of the Group Companies
existing on the Closing Date or Incurred in compliance with this Agreement
(including Indebtedness of the Group Companies that refinances Refinancing
Indebtedness); provided, however, that: such Refinancing Indebtedness is
Incurred in an aggregate principal amount (or if issued with original issue
discount, an aggregate issue price) that is equal to or less than the aggregate
principal amount (or if issued with original issue discount, the aggregate
accredited value) then outstanding of the Indebtedness, plus accrued and unpaid,
interest thereon (if any) being Refinanced.

              "Sale/Leaseback Transaction" means an arrangement relating to
property now owned or hereafter acquired by a Group Company whereby a Group
Company transfers such property to a Person and such Group Company leases it
from such Person, other than leases between the Companies and a Wholly-Owned
Subsidiary or between Wholly-Owned Subsidiaries.

              "Securities" mean, collectively, the Series A Preferred Stock, the
shares of Common Stock issued or issuable upon conversion of the Series A
Preferred Stock (but only those shares of Common Stock beneficially owned by the
Persons who converted the corresponding Series A Preferred Stock or such
Person's Affiliates upon Transfer of such Securities), the Mirror Preferred
Stock and the Mirror Notes.

              "Securities Purchase Agreement" means that certain Securities
Purchase Agreement dated December 17, 1999 by and among the Companies and the
Purchasers, as defined therein, as amended.

              "Series A Director" has the meaning set forth in Section 3(a) of
the Certificate of Designations.

              "Series A Preference Amount" shall have the meaning set forth in
Section 4(a) of the Certificate of Designations.

              "Series A Preferred Stock" shall have the meaning set forth in
Section 1 of the Certificate of Designations.

              "Series A Purchase Price" shall have the meaning set forth in
Section 8(a) of the Certificate of Designations.

              "Subsidiary" of any Person means any other Person with respect to
which either (i) more than 50% of the interests having voting power (a)
generally exercisable at a general meeting of shareholders or (b) to elect a
majority of the directors or individuals having similar functions of such other
Person (irrespective of whether at the time interests of any other class or
classes of such Person shall or might have voting power upon the occurrence of
any contingency), or (ii) more than 50% of the equity interests of such other
Person, is at the time directly or indirectly owned or controlled by such
Person, by such Person and/or one or more of its other Subsidiaries and/or any
holding company of such Person or of any of its Subsidiaries or

                                       33
<PAGE>

by one or more of such Person's other Subsidiaries. When used herein without
reference to any Person, Subsidiary means a Subsidiary of the Corporation.

              "Surviving Person" means, with respect to any Person involved in
or that makes any Disposition, the Person formed by or surviving such
Disposition or the Person to which such Disposition is made.

              "Total Investment" shall mean (pound)22,286,869.

              "Trading Days" means with respect to the shares of Common Stock
listed on NYSE, NASDAQ National Market, the American Stock Exchange or a
Designated Offshore Securities Market, days on which trades may be made on such
system and on which a trade occurs.

              "Transaction Documents" means, collectively, the Transaction
Documents (as defined in the Securities Purchase Agreement) and the Master
Reorganization Agreement and any and all agreements, certificates, instruments
and other documents contemplated hereby or thereby or executed and delivered in
connection herewith or therewith.

              "Transfer" or "transfer" means any sale, gift, transfer (whether
voluntary or otherwise) or other disposition of (including the granting of any
security encumbrance over) any security (including, for the avoidance of doubt,
any shares of Series A Preferred Stock) or any option, right, beneficial
interest, derivative interest or other interest (legal or equitable) therein.

              "Trustee" shall mean Richard Green (or any successor) under the
Voting Trust Agreement.

              "TWUK" means Transworld Healthcare (UK) Limited.

              "UK Parent" means Allied Healthcare Group (UK) Limited.

              "Voting Trust Agreement" means the Voting Trust Agreement, dated
as of the date hereof, by and among TWUK, UK Parent, the Corporation, the
Purchasers' Representative (as defined in the Securities Purchase Agreement) and
the Trustee, as such may be amended from time to time.

              "Wholly-Owned Subsidiary" means, with respect to any Person, a
Subsidiary, 100% of the equity interests in which (however measured) are owned
by such Person or a Wholly-Owned Subsidiary of such Person or such Person and
one or more Wholly-Owned Subsidiaries of such Person taken together.

         Section 13. Covenants. Notwithstanding anything to the contrary
contained herein, until the earlier of (i) Common Stock achieving a Qualified
Public Value or (ii) the Lead Investor (or any of its Affiliates, which, for
purposes of Section 13 of the Certificate of Designations, shall include any
limited partner or other constituent owner of the Lead Investor) holding less
than fifty percent (50%) of the shares of Series A Preferred Stock issued to the
Lead Investor on

                                       34
<PAGE>

the Closing Date, the Corporation shall make, uphold and comply with the
following covenants, and shall cause each of its Subsidiaries to so uphold and
comply with such covenants where applicable:

              (a) Payment of Securities. The Corporation shall deliver shares of
Common Stock (plus applicable payment in cash of any accrued or declared but
unpaid dividends on such shares of Series A Preferred Stock) upon the conversion
of the shares of Series A Preferred Stock, and pay when due the Series A
Purchase Price or Series A Preferred Amount, as applicable, of shares of Series
A Preferred Stock (plus applicable payment in cash of any accrued or declared
but unpaid dividends on such shares of Series A Preferred Stock) in the manner
provided herein. The Companies shall not, or permit any of their respective
Subsidiaries to, enter into any agreement with any party which by its express
terms: (a) restricts payments due the holders hereunder; or (b) otherwise
conflicts with or impairs any of the express rights or privileges granted to the
holders hereunder or under any other Transaction Document.

              (b) Accounting Methods; Organizational Existence.

                   (i) Unless consistent with Applicable Laws and with
         accounting principles, standards and practices generally accepted at
         the relevant date in the United States of America or the United
         Kingdom, as applicable, consistently applied, the Companies will not,
         and they will not permit any Subsidiary to, change or introduce any new
         method of accounting which differs in any substantive respect from the
         accounting as reflected in the audited financial statements included in
         the Registration Statement on Form S-4 by the Corporation filed with
         the Securities and Exchange Commission on May 1, 2002 and Amendment
         Number 1 to the Registration Statement on Form S-4 by the Corporation
         filed with the Securities and Exchange Commission on May 21, 2002,
         unless such change or introduction is mandated after the Filing Date
         under generally accepted accounting principles in the United States or
         the United Kingdom, as applicable.

                   (ii) The Companies will use their commercially reasonable
         efforts to do or cause to be done all things necessary to preserve and
         keep in full force and effect their respective and their respective
         Subsidiaries' organizational existence as limited liability companies
         and the rights (charter and statutory), licenses and franchises of the
         Companies and their respective Subsidiaries; provided, however, that
         the Companies shall not be required to preserve any such right, license
         or franchise, or the corporate, organizational or similar existence of
         any Subsidiary, if the Board of Directors of the Corporation shall
         determine that the preservation thereof is no longer desirable in the
         conduct of the business of the Group Companies taken as a whole.

              (c) Payment of Directors' Expenses. Each of the Companies shall
promptly reimburse each such member of the Board of Directors of such Company
for his reasonable out-of-pocket expenses in accordance with the regular
policies of the Companies incurred in attending each meeting of the Board of
Directors of such Company or any committee thereof of which he or she is a
member.

              (d) Compliance Certificate and Opinion.

                                       35
<PAGE>

                   (i) The Corporation shall deliver, and the Corporation shall
         cause each of UK Parent and TWUK to deliver to the holders, within one
         hundred and twenty (120) days after the end of each fiscal year of the
         Corporation, UK Parent and TWUK, and within forty five (45) days after
         the end of each of the first three quarters of each fiscal year of the
         Corporation, UK Parent and TWUK, an Officers' Certificate on behalf of
         each of the Corporation, UK Parent and TWUK stating that (i) a review
         of the activities of the Corporation, UK Parent and TWUK during the
         preceding fiscal year or quarter, as the case may be, has been made to
         determine whether the Companies have kept, observed, performed and
         fulfilled all of their respective obligations under the Certificate of
         Designations and the Transaction Documents, (ii) such review was
         supervised by the Officers of the Companies signing such certificate,
         and (iii) to the best knowledge of each Officer signing such
         certificate, (A) the Companies have kept, observed, performed and
         fulfilled the covenants contained in the Certificate of Designations
         and are not in default in the performance or observance of any of the
         terms, provisions and conditions of the Certificate of Designations,
         except where the failure to so keep, observe, perform or fulfill any
         such covenant, and any such default, could not, individually or in the
         aggregate, have a material adverse effect on the Companies (or, if a
         Covenant Breach or Insolvency Breach occurred, describing all such
         Covenant Breaches or Insolvency Breaches of which each such Officer may
         have knowledge and what action the Companies have taken or proposes to
         take with respect thereto), and (B) no event has occurred and remains
         in existence by reason of which Common Stock upon the conversion of the
         Series A Preferred Stock (plus applicable payment in cash of any
         accrued or declared but unpaid dividends on such shares of Series A
         Preferred Stock), or the payment as applicable of the Series A Purchase
         Price or Series A Preference Amount as contemplated in the Certificate
         of Designations, are prohibited or if such event has occurred, a
         description of the event and what action the Companies are taking or
         proposes to take with respect thereto.

                   (ii) The Corporation shall deliver to the holders promptly
         after any Officer of the Companies becomes aware of (i) any Covenant
         Breach or Insolvency Breach, or (ii) any default or event of default
         under any mortgage, agreement or instrument that could result in an
         Insolvency Breach under Section 17 of the Certificate of Designations,
         an Officers' Certificate specifying such default or event of default
         and what action the Companies are taking or proposes to take with
         respect thereto.

                   (iii) To the extent not disclosed in the reports provided
         under this Section 13(d) of the Certificate of Designations, the
         Companies shall promptly advise the holders of any event (including
         without limitation each suit or proceeding commenced or threatened
         against the Companies, assuming for purposes of this Section 13(d)(iii)
         of the Certificate of Designations that such action is or will be
         adversely determined) which, in the reasonable judgment of the
         Companies, has resulted in or, insofar as the Companies can reasonably
         foresee, may result or will result in a material adverse effect on the
         rights of holders.

                                       36
<PAGE>

         (e) Restrictive Covenants. The Companies shall not, and shall procure
that each of its Subsidiaries shall not, without the consent of a Majority in
Interest of the holders:

                   (i) amend, alter or repeal any provision of, or add any
         provision to, any of the Charter Documents in a manner that adversely
         alters or adversely affects the designations, preferences, powers
         and/or relative participating optional or other special rights, or the
         restrictions provided for the benefit of, the Series A Preferred Stock;

                   (ii) except as explicitly permitted herein, create, obligate
         itself to create, authorize, reclassify or issue any Capital Shares of
         any Subsidiary of the Corporation or of any Subsidiary of such
         Subsidiaries, except with respect to issuances solely to one or more
         Group Companies or with respect to directors qualifying shares; or

                   (iii) with respect solely to the Corporation, declare or pay
         any dividends or make any distributions of cash, Property or securities
         in respect of its respective Capital Shares, or apply any of its assets
         to the redemption, retirement, purchase or other acquisition of its
         respective Capital Shares, directly or indirectly, or otherwise, except
         for (A) dividends with respect to the shares of Series A Preferred
         Stock and Common Stock consistent with and pursuant to the provisions
         of Section 2 of the Certificate of Designations and (B) the redemption
         of Series A Preferred Stock pursuant to and as provided in Sections 8
         and 9 of this Certificate of Designations (provided that with respect
         to such redemptions the Companies shall exercise or direct the exercise
         of their voting rights for the purpose of passing or authorizing and
         giving effect to such redemption and any related dividend or
         distribution).

        (f) Limitation on Transactions with Affiliates.

                   (i) None of the Corporation, UK Parent nor TWUK shall, nor
         shall the Companies permit any of their respective Subsidiaries to,
         enter into any transaction or series of transactions to sell, lease,
         transfer, exchange or otherwise dispose of any of its properties or
         assets to or to purchase any property or assets from, or for the direct
         or indirect benefit of, any holder (other than relating to the
         Transaction Documents and the transactions contemplated thereby) or any
         Affiliate of any holder, the Corporation, UK Parent or TWUK, make any
         Investment in or enter into any contract, agreement, understanding,
         loan, advance or Guarantee with, or for the direct or indirect benefit
         of, any holder (other than relating to the Transaction Documents and
         the transactions contemplated thereby) or any Affiliate of any holder,
         the Corporation, UK Parent or of TWUK (each, including any series of
         transactions with one or more holder, or Affiliates, an "Affiliate
         Transaction"), unless:

                        (1) the Board of Directors of the Corporation
                   determines, as evidenced by a Board Resolution, that the
                   terms of such Affiliate Transaction are fair and reasonable
                   to the Group Companies and no less favorable to the Group
                   Companies than those that could have been obtained at that
                   time in a comparable arms-length transaction by the
                   applicable Group Company with an unrelated Person; and

                                       37
<PAGE>

                        (2) such transaction has been approved by a majority of
                   members of the Board of Directors of the Corporation who have
                   no direct or indirect interest in the Affiliate Transaction
                   itself or in the Affiliate that is a party to the Affiliate
                   Transaction, or in any other party that is an Affiliate of
                   any such Affiliate, and the Corporation shall have delivered
                   to the holders an Officers' Certificate certifying that the
                   conditions of this clause (2) have been satisfied; and

                        (3) with respect to an Affiliate Transaction involving
                   or having a potential aggregate value of more than
                   (pound)1,000,000, the Board of Directors of the Corporation
                   shall first have received a written opinion from an
                   Independent Financial Advisor for the benefit of the
                   Corporation and the holders which firm is not receiving any
                   contingent fee or other consideration directly or indirectly
                   related to the successful completion of the Affiliate
                   Transaction, to the effect that the proposed Affiliate
                   Transaction is fair to the Group Companies from a financial
                   point of view.

                   (ii) The provisions of this Section 13(f) of the Certificate
         of Designations shall not apply to (i) the reasonable and customary
         fees and compensation paid to or indemnity provided on behalf of,
         officers, directors, employees or consultants of the Group Companies,
         as determined by the Board of Directors of the Corporation (with
         respect to officers and directors of the Corporation) or the senior
         management of the Corporation in good faith (with respect to other
         employees and consultants of the Group Companies), (ii) transactions
         exclusively between or among the Corporation, UK Parent and TWUK and
         any Wholly-Owned Subsidiary or exclusively between or among
         Wholly-Owned Subsidiaries, provided such transactions are not otherwise
         prohibited by the Certificate of Designations, (iii) any Affiliate
         Transaction in existence as of the Filing Date, or (iv) any amendment,
         restructuring or modification of the terms of the Series A Preferred
         Stock or the rights and obligations of the holders under the
         Certificate of Designations or the Institutional Investors in other
         Transaction Documents which is approved by a majority of the members of
         the Board of Directors other than the Series A Director.

         (g) Restrictions Against Limitations on Upstream Payments. Without the
consent of a Majority in Interest, none of the Corporation, UK Parent nor TWUK
shall, nor shall it permit any Subsidiary to, create or otherwise cause or to
become effective any Payment Restriction, except for such Payment Restrictions
existing under or by reason of: (i) Applicable Laws; (ii) the terms of the
Transaction Documents; (iii) the terms of the Credit Agreements as in existence
on the date hereof and any other document entered into in connection therewith;
(iv) any instrument governing Indebtedness or Capital Shares of an Acquired
Person as in effect at the time of such acquisition (except to the extent such
Indebtedness was Incurred in contemplation of or in connection with such
acquisition), provided, that such restriction is not applicable to any Person,
or the Property or assets of any Person, other than the Acquired Person; (v)
non-assignment provisions in leases entered into in the ordinary course of
business and consistent with past practices; (vi) instruments governing purchase
money Indebtedness for Property acquired in the ordinary course of business that
only impose restrictions on the Property

                                       38
<PAGE>

so acquired; or (vii) Refinancing Indebtedness approved by the Boards of
Directors of the Corporation, and, if applicable, TWUK, with respect to
Indebtedness described in clauses (ii), (iii) or (iv), provided that the
restrictions contained in the agreements governing such Refinancing Indebtedness
are no more restrictive in the aggregate than those contained in the instrument
governing the Indebtedness being refinanced immediately prior to such
refinancing.

              (h) Protection of Series A Preferred Stock Holders' Rights
Generally.

                   (i) None of the Corporation, UK Parent, or TWUK shall, or
         shall permit any of its Subsidiaries to, by amendment of any Charter
         Document or through any reorganization, transfer of assets,
         consolidation, merger, dissolution, issue or sale of securities,
         agreement or any other voluntary action, avoid or seek to avoid the
         observance or performance of any of the terms to be observed or
         performed hereunder by the Corporation, UK Parent and TWUK.

                   (ii) Upon request by the Majority in Interest, the Companies
         shall do, execute, acknowledge and deliver or cause to be done,
         executed, acknowledged and delivered such reasonable further act, deed,
         conveyance, transfer and assurance necessary or desirable to carry out
         the terms, provisions, purposes and intents of the Certificate of
         Designations and the other Transaction Documents, and all other
         agreements, securities and instruments contemplated hereby and thereby,
         and to ensure the effectiveness of the rights, benefits and remedies
         provided for hereby and thereby.

        (i) Amendments and Supplements Requiring Consent of Holders.

                   (i) Except as otherwise provided in this Section 13(i)(i) or
         11(d) of the Certificate of Designations, the Mirror Preferred Stock
         and Mirror Note may be amended or supplemented only with the written
         consent of a Majority in Interest, and any existing Covenant Breach or
         Insolvency Breach or compliance with any provision of the Mirror
         Preferred Stock and Mirror Note may be waived only with the consent of
         a Majority in Interest of the holders.

                   (ii) It shall not be necessary for the consent of the
         Majority in Interest under Section 13(i) or 11(d) of the Certificate of
         Designations to approve the particular form of any proposed amendment
         or waiver, but it shall be sufficient if such consent approves the
         substance thereof. After an amendment, supplement or waiver under
         Section 13(i) or 11(d) of the Certificate of Designations becomes
         effective, the Companies shall mail to each holder a notice briefly
         describing the amendment, supplement or waiver. Any failure of the
         Companies to mail such notice, or any defect therein, shall not,
         however, in any way impair or affect the validity of any such amendment
         or waiver.

         Section 14. Provision of Information

                                       39
<PAGE>

              (a) Provision of Information. Until the Common Stock has achieved
a Qualified Public Value the Corporation shall, and shall cause each of its
Subsidiaries to, where applicable:

                   (i) prepare at the cost of the Corporation and deliver to the
         Lead Investor (on behalf of the holders):

                        (1) within 25 days of the end of each month consolidated
                   monthly management accounts of the Group Companies including
                   a profit and loss account and a balance sheet, cash flow
                   statement and 12 month cash flow forecast in each case with a
                   comparison against the Budget together with a commentary on
                   the trading and prospects of the Group Companies; and

                        (2) such other information as the holders may reasonably
                   require;

                   (ii) dispatch the audited accounts of the Group Companies for
         each financial period of the Corporation to the Purchasers not later
         than 120 days after the end of each financial period;

                   (iii) procure that not later than the beginning of each
         annual financial accounting reference period there is prepared and
         delivered to the holders a detailed operating budget for such financial
         accounting reference period (including a schedule of all forecast
         capital expenditure and cash flow forecast for the Group Companies in
         respect of such financial accounting reference period) of the Group
         Companies; and

                   (iv) procure that all material developments regarding any of
         the Group Companies' affairs are communicated to the Series A Director
         at meetings of the Board of Directors (or through Board of Directors
         papers) or in writing to the holders and that the holders are given
         such information and such access to the officers, employees and
         premises of the Group Companies as they may reasonably require.

              (b) Communication of Information. The Series A Director may
communicate any information received by him or her pursuant to the Certificate
of Designations or otherwise in his or her capacity as director of the
Corporation to the Lead Investor. The Lead Investor may communicate any such
information to any company or other entity which is its Subsidiary or holding
company or a Subsidiary of its ultimate holding company or to its partners,
members, manager or investment or other professional adviser or any Person or
Persons on behalf of whom it holds Securities; provided, that it shall use its
reasonable endeavors to procure that such recipient is aware of the confidential
nature of such information and does not use any such information other than for
the purpose of reviewing its or clients' investment in the Companies.

         Section 15. Conduct of the Group Companies and Management. Until the
Common Stock has achieved a Qualified Public Value, the Corporation shall, and
shall cause each of its Subsidiaries to, where applicable:

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<PAGE>

              (a) send to the Series A Director:

                   (i) reasonable advance notice of each meeting of the Board of
         Directors or committee of the Board of Directors or of a meeting of the
         Directors of any member of the Group Companies of which that Person is
         a director (such notice to be not less than seven days' notice unless
         otherwise agreed by the Series A Director) and, contemporaneously with
         any distribution to the other directors of the Corporation, an agenda
         of the business to be transacted at such meeting (together with all
         papers circulated or presented to the same);

                   (ii) as soon as practicable after each such meeting of the
         Board of Directors or of a committee of the Board of Directors, a copy
         of the draft minutes thereof;

              (b) procure that at least four Board of Directors meetings of the
Corporation shall be held each year (at not more than sixteen weekly intervals);

              (c) procure that if the holders have not for the time being
appointed the Series A Director(s) pursuant to Section 3(a) of the Certificate
of Designations, they shall be entitled themselves to send a representative to
any such meeting of the Board of Directors and Board of Directors meetings of
all members of the Group Companies; and

              (d) procure that if the holders have not for the time being
appointed any directors to which they may be entitled to appoint to the Board of
Directors of any Group Company (other than the Corporation) by virtue of the
Voting Trust Agreement, or otherwise, they shall be entitled themselves to send
a representative to any such meeting of the Board of Directors and Board of
Directors meetings of all members of the Group Companies (other than the
Corporation).

         Section 16. Successors.

              (a) The Corporation shall not directly or indirectly, by operation
of law or otherwise (i) be acquired by any other Person; (ii) permit
substantially all of its assets to be acquired by any other Person (including an
acquisition of stock of Subsidiaries which in the aggregate account for
substantially all of the Corporation's assets); (iii) consolidate, merge, or
otherwise combine with or into any other Person; (iv) permit any other Person to
acquire, consolidate, merge, or otherwise combine with or into the Companies;
(v) permit any other Person to acquire, consolidate, merge, or otherwise combine
with or into or be consolidated, merged, or otherwise combined with or into by,
any Subsidiary (in a transaction in which such Subsidiary (or successor Person)
remains (or becomes) a Subsidiary); or (vi) directly or indirectly, transfer,
convey, sell, lease or otherwise dispose of all or substantially all of the
properties and assets of any of the Subsidiaries as an entirety or permit any of
the Subsidiaries to do any of the foregoing (except for merger, consolidation or
other combination of any Subsidiary of the Companies with or into, or the
disposition of all or substantially all of the assets of any Subsidiary of the
Companies to, the Companies or any Wholly-Owned Subsidiary of the Companies),
unless:

                                       41
<PAGE>

                   (1) in any such transaction in which the Person acquires by
         transfer, conveyance, consolidation, merger, combination, sale, lease
         or other disposition, as applicable, all or substantially all of the
         properties and assets of the Companies as an entirety (for purposes of
         this Section 16 of the Certificate of Designations, "Successor
         Companies"), such Successor Companies (i) shall be a corporation or
         limited liability company, (ii) shall be organized, duly incorporated
         and validly existing under the laws of the United States or England,
         (iii) shall expressly assume in form reasonably satisfactory to a
         Majority in Interest, the obligations with respect to the Series A
         Preferred Stock then outstanding, and the performance of the covenants
         and obligations set forth in the Certificate of Designations and the
         Transaction Documents on the part of the Companies to be performed or
         observed or shall agree to such alternative obligations, such that,
         following such assumption and agreement, the holders will continue to
         have the right to achieve practical realization of the principal
         benefits intended to be provided to them hereby, which the Companies
         understand to include, without limitation, the practical realization of
         the principal benefits intended to be provided under (A) the Holders'
         Redemption as provided in Section 8 of the Certificate of Designations,
         (B) the covenants as provided in Section 13 of the Certificate of
         Designations, and (C) the enforcement against the Companies of any
         Covenant Breach or Insolvency Breach as provided in Section 17 of the
         Certificate of Designations, as nearly as may be, in relation to the
         circumstances of such Successor Companies, and (iv) shall take all such
         action and pass all such resolutions as may be necessary to enable it
         to assume and agree on all such obligations.

                   (2) immediately before and after giving effect to such
         transaction, no Covenant Breach or Insolvency Breach shall have
         occurred and be continuing; and

                   (3) the Companies have delivered to the holders an Officers'
         Certificate and a written opinion from legal counsel, each stating that
         such consolidation, merger, amalgamation, combination, conveyance,
         transfer, lease or acquisition and, if the assumption of the
         obligations of the holders under the Certificate of Designations and
         the Transaction Documents is required in connection with such
         transaction, such documents effecting such assumption, complies with
         this Section 16 of the Certificate of Designations and that all
         conditions precedent herein for relating to such transaction have been
         complied with and satisfied.

         (b) For purposes of the foregoing, the transfer (by lease, assignment,
sale or otherwise), in a single transaction or series of transactions, of all or
substantially all of the properties and assets of one or more Subsidiaries, the
Capital Shares of which constitutes all or substantially all of the properties
and assets of the Companies shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Companies.

                                       42
<PAGE>

         Section 17. Breaches and Remedies

              (a) Covenant Breaches. The following constitutes a "Covenant
Breach": the Companies shall fail to make any payment in respect of (A) the
principal of the Mirror Notes or the Mirror PIK Notes as the same shall become
due, whether at maturity, upon acceleration, redemption or otherwise, (B)
interest or dividends on or in respect of any shares of the Series A Preferred
Stock, the Mirror Preferred Stock, the Mirror Notes or the Mirror PIK Notes as
the same shall become due where each of the Corporation, UK Parent or TWUK, as
applicable, had the ability to make such interest or dividend payments under the
Credit Agreements, and such failure shall relate to two quarterly interest or
dividend payments or more; or (C) the Series A Purchase Price, Series A
Preference Amount, the Mirror Preferred Stock Purchase Price, Mirror Preferred
Stock Preference Amount, the Mirror Note Redemption Price or the Mirror PIK Note
Redemption Price as the same shall become due upon redemption or purchase; or
failure by the Companies for thirty (30) days after receipt of notice from the
holders representing at least one-half of a Majority in Interest to comply with
Section 13(e) or 13(f) of the Certificate of Designations or Section 16 of the
Certificate of Designations.

              (b) Breaches on Insolvency. Each of the following constitutes an
"Insolvency Breach":

                   (i) a default under any Designated Indebtedness if such
         default results in the acceleration of such Indebtedness prior to its
         express maturity or shall constitute a default in the payment of such
         Indebtedness at final maturity and such acceleration has not been cured
         or waived within 30 days of such default; or

                   (ii) an Insolvency Event occurs with respect to any of the
         Companies which is not discharged or discontinued within 14 days of the
         commencement of the relevant proceedings save that such 14 day period
         shall not apply or shall cease to apply forthwith in the event of any
         of the following occurring in connection with any of the Companies:

                        (1) an administrative receiver or liquidator being
              appointed;

                        (2) an order being made for the appointment of an
              administrator;

                        (3) an order being made for the liquidation, bankruptcy,
              winding-up, dissolution or any other Insolvency Proceedings or
              analogous proceedings under the laws of any jurisdiction; or

                        (4) a corporate voluntary arrangement or scheme of
              arrangement (other than a solvent members' scheme of arrangement
              under Section 425 of the Companies Act 1985) being made by any of
              the Companies or any other Person in relation to any of the
              Companies.

                                       43
<PAGE>

              (c) Remedies.

                   (i) If a Covenant Breach arising under Section 17(a) of the
         Certificate of Designations occurs, then beginning upon such occurrence
         and for so long as the Covenant Breach is continuing:

                        (1) the dividend rate accruing on the shares of Series A
              Preferred Stock and Mirror Preferred Stock, and the interest rate
              on the Mirror Notes and Mirror PIK Notes, commencing from (and
              including) the date of such Covenant Breach, shall be increased
              each quarter by 0.5% (for the avoidance of doubt, from 9.375% per
              annum to 9.875% upon the occurrence of the Covenant Breach, to
              10.375% one quarter after such date, to 10.875% two quarters after
              such date, etc.) (the "Breach Interest Rate") and such dividends
              and interest shall continue to accrue at the Breach Interest Rate
              while such Covenant Breach is continuing; provided, that the
              Breach Interest Rate shall forthwith be reduced back to the rate
              set forth in Section 2 of the Certificate of Designations if, and
              when, the original Covenant Breach and all other Covenant Breaches
              that may have arisen while such original Covenant Breach was
              continuing have been eliminated or waived in writing by a Majority
              in Interest of the holders and are no longer continuing; and

                        (2) the number of directors of the Corporation shall be
              increased as follows: the holders will be entitled to elect one
              additional Series A Director to be appointed to the Board of
              Directors (an "Additional Series A Director") and thereafter on
              each six month anniversary of the occurrence of such Covenant
              Breach, so long as such Covenant Breach continues, the holders
              will be entitled to nominate one Additional Series A Director to
              be appointed to the Board of Directors. Each appointment of an
              Additional Series A Director shall take place at an extraordinary
              meeting of shareholders called for such purpose by the Board of
              Directors or as otherwise provided in Section 3(a) of the
              Certificate of Designations. The Corporation shall take all such
              action and exercise all its powers (including voting powers) to
              procure the appointment of all such Additional Series A Directors
              as may be nominated by the holders pursuant to Section 17(c)(i)(2)
              of the Certificate of Designations. If and when the original
              Covenant Breach and all other Covenant Breaches that may have
              arisen while such original Covenant Breach was continuing have
              been eliminated or waived in writing by a Majority in Interest of
              the holders and are no longer continuing, the right of the holders
              to nominate Additional Series A Directors shall lapse and all
              Additional Series A Directors shall resign or, in the absence of
              such resignation, be removed, subject to the rights set forth in
              this paragraph revesting in the event of each and every Covenant
              Breach.

                   (ii) If an Insolvency Breach under Section 17(b) of the
         Certificate of Designations occurs, a Majority in Interest may declare
         an "Accelerated Liquidity." Upon such declaration of Accelerated
         Liquidity, the respective Series A Purchase Price,

                                       44
<PAGE>

         Mirror Preferred Stock Purchase Price, Mirror Note Redemption Price
         and/or Mirror PIK Notes Redemption Price (each calculated to the date
         of actual payment) of all outstanding shares of Series A Preferred
         Stock and Mirror Preferred Stock and the Mirror Note and Mirror PIK
         Notes, respectively, in addition to all accrued unpaid interest and
         dividends thereon, shall be due and payable immediately. In the event
         of a declaration of Accelerated Liquidity under this Certificate of
         Designations because an Insolvency Breach set forth in Section 17(b)(i)
         of the Certificate of Designations has occurred and is continuing, such
         declaration of Accelerated Liquidity shall be automatically rescinded
         and annulled if either (i) the holders of the Designated Indebtedness
         have waived such failure to pay at maturity or have rescinded the
         Accelerated Liquidity in respect of such Indebtedness, or (ii) such
         Indebtedness shall have been discharged or the maturity thereof shall
         have been extended such that it is not then due and payable, or the
         underlying default has been cured.

                   (iii) In the event of a Covenant Breach or breach of
         warranties under Article IV of the Securities Purchase Agreement that
         results in a judgment as determined by an appropriate court or other
         administrative body in favor of the holders in an amount equal to or
         greater than (pound)5.0 million and such amount due to the holders is
         not permitted to be paid, then in such event (A) interest on such
         entire amount due the holders shall accrue at a rate of 9.375% per
         annum and such rate of interest shall be increased each quarter by 0.5%
         (same as described in Section 17(c)(i) of the Certificate of
         Designations) until such time as the full amount due to the holders has
         been paid by the Companies and (B) the number of directors of the
         Companies shall be increased as provided in Sections 17(c)(i)(2) of the
         Certificate of Designations. For purposes of clarity, "entire amount
         due the holders" for Section 17(b)(iii)(A) shall refer to the amounts
         resulting from any such judgment, and is not intended to include actual
         shares of Series A Preferred Stock.

              (d) Waiver of Breach. To the extent permitted under Section
11(d)(ii) of the Certificate of Designations, a Majority in Interest of the
holders by notice to the Corporation may on behalf of all holders waive any
existing Covenant Breach or Insolvency Breach and its consequences under the
Certificate of Designations and rescind any declaration of Accelerated Liquidity
and its consequences. Upon any such waiver, such Covenant Breach shall cease to
exist be deemed to have been cured for every purpose of the Certificate of
Designations; provided that no such waiver shall extend to any subsequent or
other Covenant Breach or Insolvency Breach.

         SIXTH: The foregoing amendment was authorized and approved by the vote
of the board of directors of the Corporation. Under Section 502 of the Business
Corporation Law, shareholder approval was not required for this action.

                                       45
<PAGE>

         IN WITNESS WHEREOF, Allied Healthcare International Inc. has caused
this certificate to be signed by a duly authorized officer and its corporate
seal, to be hereunto affixed this 26th day of June, 2002.

                                            ALLIED HEALTHCARE INTERNATIONAL INC.

                                            By: /s/ John B. Wynne
                                                --------------------------------
                                                Name: John B. Wynne
                                                Title:  Vice President and Chief
                                                Financial Officer

                                       46

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