Document:

<PAGE>

                                                                     EXHIBIT 4.3

                           [FORM OF FACE OF SECURITY]

[Unless this certificate is presented by an authorized representative of the
Depository Trust Company to the Company or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized
representative of the Depository Trust Company (and any payment hereon is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of the depository trust company), any transfer, pledge or other
use hereof for value or otherwise by or to any person is wrongful since the
registered owner hereof, Cede & Co., has an interest herein. This security is a
Global Security within the meaning of the Indenture hereinafter referred to and
is registered in the name of a depositary or a nominee thereof. This security is
exchangeable for securities registered in the name of a person other than the
depositary or its nominee only in the limited circumstances described in the
Indenture and, unless and until it is exchanged in whole or in part for
securities in definitive form, this security may not be transferred except as a
whole by the depositary to a nominee of the depositary or by a nominee of the
depositary to the depositary or another nominee of the depositary or by the
depositary or any such nominee to a successor depositary or a nominee of such
successor depositary.]/1/

[This security (or its predecessor) was originally issued in a transaction
exempt from registration under the United States Securities Act of 1933, as
amended (the "Securities Act"), and this security and the shares of common stock
issuable upon conversion thereof may not be offered, sold or otherwise
transferred in the absence of such registration or an applicable exemption
therefrom. Each purchaser of this security is hereby notified that the seller of
this security may be relying on the exemption from the provisions of Section 5
of the Securities Act provided by Rule 144A thereunder.]/2/

[The holder of this security agrees for the benefit of the company that (a) this
security and the shares of common stock issuable upon conversion thereof may be
offered, resold, pledged or otherwise transferred, only [(i) in the United
States to a person whom the seller reasonably believes is a qualified
institutional buyer (as defined in Rule 144A under the Securities Act) in a
transaction meeting the requirements of Rule 144A,] (ii) outside the United
States in an offshore transaction in accordance with Rule 904 under the
Securities Act, (iii) pursuant to an exemption from registration under the
Securities Act provided by Rule 144 thereunder (if available) or (iv) pursuant
to an effective registration statement under the Securities Act, in each of
cases (i) through (iv) in accordance with any applicable securities laws of any
state of the United States, and (b) the holder will, and each subsequent holder
is required to, notify any purchaser of this security from it of the resale
restrictions referred to in (a) above. In any case, the holder hereof

-----------------------
/1/  These paragraphs should be included only if the Security is a Global
     Security.

/2/  These paragraphs to be included only if the Security is a Transfer
     Restricted Security.

                                       1

<PAGE>

will not, directly or indirectly, engage in any hedging transactions with regard
to this security except as permitted under the Securities Act.]/2/

[The holder of this security is entitled to the benefits of a Registration
Rights Agreement (as such term is defined in the Indenture referred to on the
reverse hereof) and, by its acceptance hereof, agrees to be bound by and to
comply with the provisions of such Registration Rights Agreement.]/2/

This security may not be sold or transferred to, and each purchaser by its
purchase of this security shall be deemed to have represented and covenanted
that it is not acquiring this security for or on behalf of, and will not
transfer this security to, any pension or welfare plan as defined in Section
3(1) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") except that such purchase for or on behalf of a pension or welfare
plan shall be permitted:

          (i) to the extent such purchase is made by or on behalf of a bank
     collective investment fund maintained by the purchaser in which no plan
     (together with any other plans maintained by the same employer or employee
     organization) has an interest in excess of 10% of the total assets in such
     collective investment fund, and the other applicable conditions of
     Prohibited Transaction Class Exemption 91-38 issued by the Department of
     Labor are satisfied;

          (ii) to the extent such purchase is made by or on behalf of an
     insurance company pooled separate account maintained by the purchaser in
     which, at any time while these securities are outstanding, no plan
     (together with any other plans maintained by the same employer or employee
     organization) has an interest in excess of 10% of the total of all assets
     in such pooled separate account, and the other applicable conditions of
     Prohibited Transaction Class Exemption 90-1 issued by the Department of
     Labor are satisfied;

          (iii) to the extent such purchase is made on behalf of a plan by (A)
     an investment adviser registered under the Investment Advisers Act of 1940,
     as amended (the "1940 Act"), that had as of the last day of its most recent
     fiscal year total assets under its management and control in excess of
     $50.0 million and had stockholders' or partners' equity in excess of
     $750,000, as shown in its most recent balance sheet prepared in accordance
     with generally accepted accounting principles, or (B) a bank as defined in
     Section 202(a)(2) of the 1940 Act with equity capital in excess of $1.0
     million as of the last day of its most recent fiscal year, or (C) an
     insurance company which is qualified under the laws of more than one state
     to manage, acquire or dispose of any assets of a pension or welfare plan,
     which insurance company has as of the last day of its most recent fiscal
     year, net worth in excess of $1.0 million and which is subject to
     supervision and examination by a State authority having supervision over
     insurance companies and, in any case, such investment adviser, bank or
     insurance company is otherwise a qualified professional asset manager, as
     such term is used in Prohibited Transaction Class Exemption 84-14 issued by
     the Department of Labor, and the assets of such plan when combined with the
     assets of other plans established or maintained by the same employer (or
     affiliate thereof) or employee organization and managed by such investment
     adviser, bank or insurance company, do not represent more than 20% of the
     total client assets managed by such investment adviser, bank or insurance
     company at the time of the transaction, and the other applicable conditions
     of such exemption are otherwise satisfied;

          (iv) to the extent such plan is a governmental plan (as defined as
     Section 3(33) of ERISA) which is not subject to the provisions of Title 1
     of ERISA or Section 401 of the Internal Revenue Code of 1986, as amended
     (the "Code");

                                       2

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          (v) to the extent such purchase is made by or on behalf of an
     insurance company using the assets of its general account, the reserves and
     liabilities for the general account contracts held by or on behalf of any
     plan, together with any other plans maintained by the same employer (or its
     affiliates) or employee organization, do not exceed 10% of the total
     reserves and liabilities of the insurance company general account
     (exclusive of separate account liabilities), plus surplus as set forth in
     the National Association of Insurance Commissioners Annual Statement filed
     with the state of domicile of the insurer, in accordance with Prohibited
     Transaction Class Exemption 95-60, and the other applicable conditions of
     such exemption are otherwise satisfied;

          (vi) to the extent purchase is made by an in-house asset manager
     within the meaning of Part IV(a) of Prohibited Transaction Class Exemption
     96-23, such manager has made or properly authorized the decision for such
     plan to purchase this security, under circumstances such that Prohibited
     Transaction Class Exemption 96-23 is applicable to the purchase and holding
     of this security; or

          (vii) to the extent such purchase will not otherwise give rise to a
     transaction described in Section 406 or Section 4975(c)(1) of the Code for
     which a statutory or administrative exemption is unavailable.

                                       3

<PAGE>

                                  CHIPPAC, INC.

CUSIP: ___________                                                  No. ___

               8% CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2011

ChipPAC, Inc., a Delaware corporation (the "Company", which term shall include
any successor corporation under the Indenture referred to on the reverse
hereof), promises to pay to       , or registered assigns, the principal sum of
           Dollars ($       ) on June 15, 2011 [or such greater or lesser amount
as is indicated on the Schedule of Exchanges of Securities on the other side of
this Security]/3/

Interest Payment Dates: June 15 and December 15, beginning ____________, 2001

Record Dates: June 1 and December 1

This Security is convertible as specified on the other side of this Security.
Additional provisions of this Security are set forth on the other side of this
Security.

                             SIGNATURE PAGE FOLLOWS

-----------------------
/3/  This phrase should be included only if the Security is a Global Security.

                                       4

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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

                                              CHIPPAC, INC.

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

Attest:

By:
      ---------------------------------
      Name:
      Title:

Dated:

Trustee's Certificate of Authentication: This is one of the
Securities referred to in the within-mentioned Indenture.

FIRSTAR BANK, N.A.,
as Trustee

---------------------------------------
Authorized Signatory

By:

                                       5

<PAGE>

                       [FORM OF REVERSE SIDE OF SECURITY]

                                  CHIPPAC, INC.
               8% CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2011

1.   Interest
     --------

ChipPAC, Inc. a Delaware corporation (the "Company", which term shall include
any successor corporation under the Indenture hereinafter referred to), promises
to pay interest on the principal amount of this Security at the rate of 8% per
annum. The Company shall pay interest semiannually on June 15 and December 15 of
each year, commencing December 15, 2001. Interest on the Securities shall accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from June 22, 2001; provided, however, that if there is not an
                               --------  -------
existing Default in the payment of interest and if this Security is
authenticated between a record date referred to on the face hereof and the next
succeeding interest payment date, interest shall accrue from such interest
payment date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Any reference herein to interest accrued or payable as of any
date shall include any Additional Interest accrued or payable on such date as
provided in the Registration Rights Agreement.

2.   Method of Payment
     -----------------

The Company shall pay interest on this Security (except defaulted interest) to
the person who is the Holder of this Security at the close of business on June 1
or December 1, as the case may be, next preceding the related interest payment
date. The Holder must surrender this Security to a Paying Agent to collect
payment of principal. The Company will pay principal and interest in money of
the United States that at the time of payment is legal tender for payment of
public and private debts. The Company may, however, pay principal and interest
in respect of any Certificated Security by check or wire payable in such money;
provided, however, that a Holder with an aggregate principal amount in excess of
--------  -------
$2,000,000 will be paid by wire transfer in immediately available funds at the
election of such Holder. The Company may mail an interest check to the Holder's
registered address. Notwithstanding the foregoing, so long as this Security is
registered in the name of a Depositary or its nominee, all payments hereon shall
be made by wire transfer of immediately available funds to the account of the
Depositary or its nominee.

3.   Paying Agent, Registrar and Conversion Agent
     --------------------------------------------

Initially, Firstar Bank, N.A. (the "Trustee", which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as
Paying Agent, Registrar, Primary Registrar and Conversion Agent. The Company may
change any Paying Agent, Registrar or Conversion Agent without notice to the
Holder. The Company or any of its Subsidiaries may, subject to certain
limitations set forth in the Indenture, act as Paying Agent or Registrar.

4.   Indenture, Limitations
     ----------------------

                                       6

<PAGE>

This Security is one of a duly authorized issue of Securities of the Company
designated as its 8% Convertible Subordinated Notes Due June 15, 2011 (the
"Securities"), issued under an Indenture dated as of June 15, 2001 (together
with any supplemental indentures thereto, the "Indenture"), between the Company
and the Trustee. Capitalized terms herein are used as defined in the Indenture
unless otherwise defined herein. The terms of this Security include those stated
in the Indenture and those required by or made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended, as in effect on the
date of the Indenture. This Security is subject to all such terms, and the
Holder of this Security is referred to the Indenture and said Act for a
statement of them. The Securities are subordinated unsecured obligations of the
Company. Subject to the conditions set forth in Section 2.15 of the Indenture,
the Company may issue additional Securities ("Add On Securities"). The Indenture
does not limit other debt of the Company, secured or unsecured, including Senior
Indebtedness.

5.   Provisional and Optional Redemption
     -----------------------------------

     (a) The Company may redeem any portion of the Securities at any time prior
to June 15, 2004 (a "Provisional Redemption"), upon giving notice as set forth
in Section 6, at a redemption price equal to $1,000 per $1,000 principal amount
of the Securities redeemed plus accrued and unpaid interest, if any (such
amount, the "Provisional Redemption Price"), to but excluding the date of
redemption (the "Provisional Redemption Date") if (1) the Closing Price of the
Common Stock has exceeded 150% of the Conversion Price for at least 20 Trading
Days within a period of any 30 consecutive Trading Days ending on the Trading
Day prior to the date of mailing of the notice of Provisional Redemption (the
"Notice Date"), and (2) a shelf registration statement covering resales of the
Securities and the Common Stock issuable upon conversion thereof is effective
and available for use and is expected to remain effective and available for use
for the 30 days following the Provisional Redemption Date unless registration is
no longer required.

          (b) Except as set forth in clause (a) of this Section 5, the Company
shall not have the option to redeem the Securities pursuant to this Section 5
prior to June 15, 2004. Thereafter, the Company shall have the option to redeem
any portion of the Securities (an "Optional Redemption") upon giving notice as
set forth in Section 6. The Optional Redemption Prices (expressed as percentages
of the principal amount) are as follows for Securities redeemed during the
periods set forth below:

Period                                                        Redemption Price
------                                                        ----------------
Beginning on June 15, 2004 and ending on June 14, 2005        104.00%
Beginning on June 15, 2005 and ending on June 14, 2006        103.33%
Beginning on June 15, 2006 and ending on June 14, 2007        102.67%
Beginning on June 15, 2007 and ending on June 14, 2008        102.00%
Beginning on June 15, 2008 and ending on June 14, 2009        101.33%
Beginning on June 15, 2009 and ending on June 14, 2010        100.67%
Beginning on June 15, 2010 and thereafter                     100.00%

                                       7

<PAGE>

in each case together with accrued interest up to but not including the date of
redemption (the "Optional Redemption Date"); provided that if the Optional
                                             --------
Redemption Date falls after an interest payment record date and on or before an
interest payment date, then the interest payment will be payable to the Holders
in whose names the Securities are registered at the close of business on the
relevant record date for payment of such interest.

6.   Notice of Redemption
     --------------------

Notice of redemption will be mailed by first-class mail at least 20 days but not
more than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than
$1,000 may be redeemed in part, but only in whole multiples of $1,000. On and
after the Redemption Date, subject to the deposit with the Paying Agent of funds
sufficient to pay the Redemption Price plus accrued interest, if any, accrued
to, but excluding, the Redemption Date, interest shall cease to accrue on
Securities or portions of them called for redemption.

7.   Purchase of Securities at Option of Holder Upon a Change in Control
     -------------------------------------------------------------------

At the option of the Holder and subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase all or any part
specified by the Holder (so long as the principal amount of such part is $1,000
or an integral multiple of $1,000 in excess thereof) of the Securities held by
such Holder on the date that is not less than 20 nor more than 30 Business Days
after the date on which the Company provides Holders notice of the occurrence of
a Change in Control (or, if the Company has not provided such, 40 Business Days
following the occurrence of a Change of Control), at a purchase price equal to
100% of the principal amount thereof together with accrued interest up to, but
excluding, the Change in Control Purchase Date. The Holder shall have the right
to withdraw any Change in Control Purchase Notice (in whole or in a portion
thereof that is $1,000 or an integral multiple of $1,000 in excess thereof) at
any time prior to the close of business on the Business Day next preceding the
Change in Control Purchase Date by delivering a written notice of withdrawal to
the Paying Agent in accordance with the terms of the Indenture.

8.   Conversion
     ----------

A Holder of a Security may convert the principal amount of such Security (or any
portion thereof equal to $1,000 or any integral multiple of $1,000 in excess
thereof) into shares of Common Stock at any time prior to the close of business
on June 15, 2011; provided, however, that if the Security is called for
                  --------  -------
redemption or subject to purchase upon a Change in Control, the conversion right
will terminate at the close of business on the Business Day immediately
preceding the Redemption Date or the Change in Control Purchase Date, as the
case may be, for such Security or such earlier date as the Holder presents such
Security for redemption or purchase (unless the Company shall default in making
the redemption payment or Change in Control Purchase Price, as the case may be,
when due, in which case the conversion right shall terminate at the close of
business on the date such default is cured and such Security is redeemed or
purchased). The initial Conversion Price is $9.96 per share, subject to
adjustment under certain circumstances. The number of shares of Common Stock
issuable upon conversion of a Security is determined by dividing the principal
amount of the Security or portion thereof converted by the Conversion Price in
effect on the Conversion Date. No fractional shares will be

                                       8

<PAGE>

issued upon conversion; in lieu thereof, an amount will be paid in cash based
upon the Closing Price (as defined in the Indenture) of the Common Stock on the
Trading Day immediately prior to the Conversion Date. To convert a Security, a
Holder must (a) complete and manually sign the conversion notice set forth below
and deliver such notice to a Conversion Agent, (b) surrender the Security to a
Conversion Agent, (c) furnish appropriate endorsements and transfer documents if
required by a Registrar or a Conversion Agent, and (d) pay any transfer or
similar tax, if required. Securities so surrendered for conversion (in whole or
in part) during the period from the close of business on any regular record date
to the opening of business on the next succeeding interest payment date
(excluding Securities or portions thereof which are either (i) called for
redemption or (ii) subject to purchase following a Change in Control, in either
case, on a date during the period beginning at the close of business on a
regular record date and ending at the opening of business on the first Business
Day after the next succeeding interest payment date, or if such interest payment
date is not a Business Day, the second such Business Day) shall also be
accompanied by payment in funds acceptable to the Company of an amount equal to
the interest payable on such interest payment date on the principal amount of
such Security then being converted, and such interest shall be payable to such
registered Holder notwithstanding the conversion of such Security, subject to
the provisions of this Indenture relating to the payment of defaulted interest
by the Company. Except as otherwise provided in this paragraph, no payment or
adjustment will be made for accrued interest on a converted Security. If the
Company defaults in the payment of interest payable on such interest payment
date, the Company shall promptly repay such funds to such Holder. A Holder may
convert a portion of a Security equal to $1,000 or any integral multiple
thereof. A Security in respect of which a Holder had delivered a Change in
Control Purchase Notice exercising the option of such Holder to require the
Company to purchase such Security may be converted only if the Change in Control
Purchase Notice is withdrawn in accordance with the terms of the Indenture.

9.   Conversion Arrangement on Call for Redemption
     ---------------------------------------------

Any Securities called for redemption, unless surrendered for conversion before
the close of business on the Business Day immediately preceding the Redemption
Date, may be deemed to be purchased from the Holders of such Securities at an
amount not less than the Redemption Price, together with accrued interest, if
any, to, but not including, the Redemption Date, by one or more investment
bankers or other purchasers who may agree with the Company to purchase such
Securities from the Holders, to convert them into Common Stock of the Company
and to make payment for such Securities to the Paying Agent in trust for such
Holders.

10.  Subordination
     -------------

The indebtedness evidenced by the Securities is, to the extent and in the manner
provided in the Indenture, subordinate and junior in right of payment to the
prior payment in full of all Senior Indebtedness of the Company. Any Holder by
accepting this Security agrees to and shall be bound by such subordination
provisions and authorizes the Trustee to give them effect. In addition to all
other rights of Senior Indebtedness described in the Indenture, the Senior
Indebtedness shall continue to be Senior Indebtedness and entitled to the
benefits of the subordination provisions irrespective of any amendment,
modification or waiver of any terms of

                                       9

<PAGE>

any instrument relating to the Senior Indebtedness or any extension or renewal
of the Senior Indebtedness.

11.  Denominations, Transfer, Exchange
     ---------------------------------

The Securities are in registered form without coupons in denominations of $1,000
and integral multiples of $1,000. A Holder may register the transfer of or
exchange Securities in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes or other governmental charges that may be imposed
in relation thereto by law or permitted by the Indenture.

12.  Persons Deemed Owners
     ---------------------

The Holder of a Security may be treated as the owner of it for all purposes.

13.  Unclaimed Money
     ---------------

If money for the payment of principal or interest remains unclaimed for two
years, the Trustee or Paying Agent will pay the money back to the Company at its
written request. After that, Holders entitled to money must look to the Company
for payment.

14.  Amendment, Supplement and Waiver
     --------------------------------

Subject to certain exceptions, the Indenture or the Securities may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Securities then outstanding, and an existing Default or Event of
Default and its consequence or compliance with any provision of the Indenture or
the Securities may be waived in a particular instance with the consent of the
Holders of a majority in principal amount of the Securities then outstanding.
Without the consent of or notice to any Holder, the Company and the Trustee may
amend or supplement the Indenture or the Securities to, among other things, cure
any ambiguity, defect or inconsistency or make any other change that does not
adversely affect the rights of any Holder.

15.  Successor Corporation
     ---------------------

When a successor corporation assumes all the obligations of its predecessor
under the Securities and the Indenture in accordance with the terms and
conditions of the Indenture, the predecessor corporation will (except in certain
circumstances specified in the Indenture) be released from those obligations.

16.  Defaults and Remedies
     ---------------------

Under the Indenture, an Event of Default includes: (i) default for 30 days in
payment of any interest on any Securities; (ii) default in payment of any
principal (including, without limitation, any premium, if any) on the Securities
when due; (iii) failure by the Company for 60 days after notice to it to comply
with any of its other agreements contained in the Indenture or the Securities;
(iv) failure by the Company to give notice to the Trustee and Holders of a
Change in Control in accordance with the Indenture; and (v) certain events of
bankruptcy, insolvency or

                                       10

<PAGE>

reorganization of the Company. If an Event of Default (other than as a result
of certain events of bankruptcy, insolvency or reorganization of the Company)
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Securities then outstanding may declare all unpaid
principal to the date of acceleration on the Securities then outstanding to be
due and payable immediately, all as and to the extent provided in the Indenture.
If an Event of Default occurs as a result of certain events of bankruptcy,
insolvency or reorganization of the Company, unpaid principal of the Securities
then outstanding shall become due and payable immediately without any
declaration or other act on the part of the Trustee or any Holder, all as and to
the extent provided in the Indenture. Holders may not enforce the Indenture or
the Securities except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Securities.
Subject to certain limitations, Holders of a majority in principal amount of the
Securities then outstanding may direct the Trustee in its exercise of any trust
or power. The Trustee may withhold from Holders notice of any continuing Default
(except a Default in payment of principal or interest) if it determines that
withholding notice is in their interests. The Company is required to file
periodic reports with the Trustee as to the absence of Default.

17.  Trustee Dealings with the Company
     ---------------------------------
Firstar Bank, N.A., the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services for
the Company or an Affiliate of the Company, and may otherwise deal with the
Company or an Affiliate of the Company, as if it were not the Trustee.

18.  No Recourse Against Others
     --------------------------

A director, officer, employee or shareholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
the Indenture nor for any claim based on, in respect of or by reason of such
obligations or their creation. The Holder of this Security by accepting this
Security waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of this Security.

19.  Authentication
     ----------------

This Security shall not be valid until the Trustee or an authenticating agent
manually signs the certificate of authentication on the other side of this
Security.

20.  Abbreviations and Definitions
     -----------------------------

Customary abbreviations may be used in the name of the Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors Act). All terms
defined in the Indenture and used in this Security but not specifically defined
herein are defined in the Indenture and are used herein as so defined.

                                       11

<PAGE>

21.  Indenture to Control; Governing Law
     -----------------------------------

In the case of any conflict between the provisions of this Security and the
Indenture, the provisions of the Indenture shall control. This Security shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to principles of conflicts of law.

The Company will furnish to any Holder, upon written request and without charge,
a copy of the Indenture. Requests may be made to: ChipPAC, Inc., 47400 Kato
Road, Fremont, CA 94538, Attention: Robert Krakauer.

                                       12

<PAGE>

                                 ASSIGNMENT FORM
                                 ---------------

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
(Print or type assignee's name, address and zip code)
and irrevocably appoint

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

agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him or her.

                                          Your Signature:

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

*Signature guaranteed by:

By:
   ---------------------------------------

          *     Signature(s) must be guaranteed by a qualified guarantor
                institution with membership in an approved signature
                guarantee program pursuant to Rule 17Ad-15 under the
                Securities Exchange Act of 1934.

<PAGE>
                               CONVERSION NOTICE
                               -----------------

To convert this Security into Common Stock of the Company, check the box: [_]

To convert only part of this Security, state the principal amount to be
converted (must be $1,000 or a multiple of $1,000): $____________.

If you want the stock certificate made out in another person's name, fill in the
form below:

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
             (Print or type assignee's name, address and zip code)

                                          Your Signature:

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

*Signature guaranteed by:

By:
   ---------------------------------------

          *     Signature(s) must be guaranteed by a qualified guarantor
                institution with membership in an approved signature
                guarantee program pursuant to Rule 17Ad-15 under the
                Securities Exchange Act of 1934.

<PAGE>
                           OPTION TO ELECT REPURCHASE
                            UPON A CHANGE OF CONTROL
                            ------------------------

To:  ChipPAC, Inc.

The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from ChipPAC, Inc. (the "Company") as to the
occurrence of a Change in Control with respect to the Company and requests and
instructs the Company to redeem the entire principal amount of this Security, or
the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this
Security at the Change in Control Purchase Price, together with accrued interest
to, but excluding, such date, to the registered Holder hereof.

Date:
     ----------------------------------    -------------------------------------
                                           Signature(s)

                                           Signature(s) must be guaranteed by a
                                           qualified guarantor institution with
                                           membership in an approved signature
                                           guarantee program pursuant to Rule
                                           17Ad-15 under the Securities Exchange
                                           Act of 1934.

                                           -------------------------------------
                                           Signature Guaranty

Principal amount to be redeemed (in an
integral multiple of $1,000, if less
than all):

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

NOTICE:   The signature to the foregoing Election must correspond to the Name as
          written upon the face of this Security in every particular, without
          alteration or any change whatsoever.

<PAGE>
                     SCHEDULE OF EXCHANGES OF SECURITIES/4/
                     -----------------------------------

The following exchanges, redemptions, repurchases or conversions of a part of
this global Security have been made:

<TABLE>
<CAPTION>
   Principal Amount of
  this Global Security
     Following Such                                        Amount of Decrease in        Amount of Increase in
Decrease Date of Exchange     Authorized Signatory of     Principal Amount of this    Principal Amount of this
      (or Increase)             Securities Custodian          Global Security              Global Security
-------------------------     -----------------------     ------------------------    ------------------------
<S>                           <C>                         <C>                         <C>

</TABLE>
--------
/4/ This schedule should be included only if the Security is a Global Security.

<PAGE>
            CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION
                 OF TRANSFER OF TRANSFER RESTRICTED SECURITIES/5/
                 ---------------------------------------------

Re:  8% Convertible Subordinated Securities Due June 15, 2011
     (the "Securities") of ChipPAC, Inc.

This certificate relates to $_______ principal amount of Securities owned in
(check applicable box)

[ ] book-entry or [ ] definitive form by ________________ (the "Transferor").

     The Transferor has requested a Registrar or the Trustee to exchange or
register the transfer of such Securities.

     In connection with such request and in respect of each such Security, the
Transferor does hereby certify that the Transferor is familiar with transfer
restrictions relating to the Securities as provided in Section 2.12 of the
Indenture, dated as of June 15, 2001, between ChipPAC, Inc. and Firstar Bank,
N.A. (the "Indenture"), and the transfer of such Security is being made pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the "Securities Act") (check applicable box) or the transfer or
exchange, as the case may be, of such Security does not require registration
under the Securities Act because (check applicable box):

[ ]  Such Security is being transferred pursuant to an effective registration
statement under the Securities Act.

[ ]  Such Security is being acquired for the Transferor's own account, without
transfer.

[ ]  Such Security is being transferred to the Company or a Subsidiary (as
defined in the Indenture) of the Company.

[ ]  Such Security is being transferred to a person the Transferor reasonably
believes is a "qualified institutional buyer" (as defined in Rule 144A or any
successor provision thereto ("Rule 144A") under the Securities Act) that is
purchasing for its own account or for the account of a "qualified institutional
buyer", in each case to whom notice has been given that the transfer is being
made in reliance on such Rule 144A, and in each case in reliance on Rule 144A.

[ ]  Such Security is being transferred pursuant to and in compliance with an
exemption from the registration requirements under the Securities Act in
accordance with Rule 144 (or any successor thereto) ("Rule 144") under the
Securities Act.

[ ]  Such Security is being transferred pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act (other than
an exemption referred to above) and as a result of which such Security will,
upon such transfer, cease to be a "restricted security" within the meaning of
Rule 144 under the Securities Act.

--------
/5/ This certificate should only be included if this Security is a Transfer
    Restricted Security.

<PAGE>
                                      -2-

     The Transferor acknowledges and agrees that, if the transferee will hold
any such Securities in the form of beneficial interests in a global Security
which is a "restricted security" within the meaning of Rule 144 under the
Securities Act, then such transfer can only be made pursuant to Rule 144A under
the Securities Act and such transferee must be a "qualified institutional buyer"
(as defined in Rule 144A).

Date:
     -----------------------------------    ------------------------------------
                                                 (Insert Name of Transferor)NO  SALE  OR  TRANSFER OF THIS WARRANT OR THE SECURITIES UNDERLYING THIS WARRANT
MAY  BE  MADE  UNTIL  THE  EFFECTIVENESS  OF  A  REGISTRATION  STATEMENT OR OF A
POST-EFFECTIVE  AMENDMENT  THERETO  UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "ACT"), COVERING THIS WARRANT OR THE SECURITIES UNDERLYING THIS WARRANT, OR
UNTIL  THE  COMPANY  IS  IN RECEIPT OF AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY  STATING  THAT  SUCH  SALE  OR  TRANSFER IS EXEMPT FROM THE REGISTRATION
REQUIREMENTS  OF  THE  ACT.

                                WARRANT AGREEMENT

     Warrant  Agreement (the "AGREEMENT") dated August 28, 2001 between Emergent
Financial  Group,  Inc.,  a  Delaware  corporation  (the  "COMPANY"),  and Blair
Business  Development,  LLC  and  its  permitted  assigns  (the  "HOLDERS").

                             BACKGROUND INFORMATION
                             ----------------------

     WHEREAS,  the  Company  agreed  to  grant  warrants (the "Warrants") to the
Holder  to  induce the Holders to convert certain convertible securities held by
the Holders into the Company's common stock.  Under the terms agreed upon by the
parties,  the  Warrants  shall  entitle  the Holders to purchase up to 5,400,000
shares  of  the  Company's common stock, $0.01 par value ("COMMON STOCK") at any
time  prior  to June 30, 2006.  Each Warrant entitles the Holder to purchase one
duly  authorized,  fully  paid  and  nonassessable  share  of  Common Stock upon
exercise  thereof.

     WHEREAS, each Holder will be entitled to receive a certificate representing
the  Warrant  (each a "CERTIFICATE") and shall be dated effective as of the date
of  issuance.  The  shares of Common Stock issued upon exercise of the Warrants,
or  reserved  for  issuance  or otherwise issuable upon exercise of the Warrants
under  this  Agreement,  are  sometimes  hereinafter referred to as the "WARRANT
SHARES."

     WHEREAS,  the  Company  desires  to  fix  the  form  and provisions of each
Certificate  that  will  represent  one  or more issued Warrants, as well as the
terms  of  the  Warrants  themselves  with  respect  to  issuance, exercise, and
expiration,  and  the  respective rights, limitations, obligations and duties of
the  Company  and  each Holder which will be established upon any such issuance;
and  to  make  each Warrant when represented by a Certificate that has been duly
executed  by the Company (or by any substitute or replacement Certificate issued
under  the  terms  set  forth below), the valid, binding and legally enforceable
obligation  of  the  Company.

     Accordingly,  the  Company  and  the  Holders  hereby  agree  as  follows:

<PAGE>
                              OPERATIVE PROVISIONS
                              --------------------

1.   Issuance. The Company shall issue Warrant Certificates to purchase up to an
     aggregate  of  5,400,000  shares  of Common Stock (each applicable exercise
     price  shall  be referred to herein as the "EXERCISE PRICE" with respect to
     each  Warrant  Certificate,  as  applicable).

2.   Warrant  Certificates.  Each  Certificate  to be delivered pursuant to this
     ---------------------
     Agreement  shall  be  in  the  form  set  forth  in Exhibit A (the "WARRANT
     CERTIFICATE")  which  is  attached hereto and made a part hereof, with such
     appropriate  insertions,  omissions,  substitutions and other variations as
     are  required  or  permitted  by  this  Agreement.

3.   Warrants  Governed by Agreement.  This  Warrant  Agreement governs an issue
     -------------------------------
     of up to an aggregate of 5,400,000 Warrants, each of which will entitle its
     Holder  to  purchase  one  Warrant  Share  on  the terms and subject to the
     conditions  and  possible  adjustments  set  forth herein. The Warrants are
     vested  in  full  and  may  be exercised, in whole or in part, from time to
     time,  in  accordance  with  the  terms of this Agreement and the Warrants.

4.   Execution  and  Date  of  Warrant  Certificates.
     -----------------------------------------------

     a.   General.  Each  Certificate shall be executed on behalf of the Company
          -------
          by  its  chief executive officer, its president or any vice president,
          under  its  corporate  seal  which  will  be  reproduced  thereon, and
          attested  by  its  corporate  secretary  or  one  of  its  assistant
          secretaries.

     b.   Date of Certificate. Each Certificate shall be dated as of the date of
          -------------------
          execution  by  the  Company  officers  described  above.

5.   Ownership.  The  Company  shall  acknowledge  each  registered  Holder of a
     ---------
     Warrant  Certificate  as  the  absolute  owner thereof (notwithstanding any
     notation  of  ownership  or  other  writing  thereon  made  by  anyone), in
     connection  with  its  sale,  transfer or exercise, any distribution to the
     holder  thereof  and for all other purposes, and, subject to the provisions
     of Section 11 below, the Company shall not be affected by any notice to the
     contrary.

6.   Exercise  of  Warrants.
     ----------------------

     a.   Expiration  Date.  Each  Warrant  shall  expire  at 5:00 p.m., Pacific
          ----------------
          Standard  Time, on June 30, 2006, and, prior thereto, may be exercised
          at  any  time  after  the  Effective Date, provided, however, that the
          Holder of the Warrants must give not less than 90 days prior notice to
          the Company prior to any exercise of such Warrant. For purposes of the
          Warrant  Agreement,  the term "EFFECTIVE DATE" shall refer to the date
          of  issuance  of  such  Warrant.

     b.   Exercise  Price  and  Payment.  Subject  to  the  provisions  of  this
          -----------------------------
          Agreement,  the  Holder  shall  have  the  right  to purchase from the

<PAGE>
          Company  (and  the  Company  shall issue and sell to such Holder) that
          number  of  fully  paid  and  non-assessable  Warrant  Shares,  at the
          Exercise  Price  (as stated in the applicable Warrant Certificate) and
          as  shall  be  designated  in  a  completed  and  executed Election to
          Purchase  form  appearing on the reverse side of each Certificate, and
          upon  surrender to the Company of the Certificate evidencing each such
          Warrant being exercised, and payment of a monetary amount equal to the
          product  of  the Exercise Price and the number of Warrant Shares being
          purchased (the "Exercise Price Multiple"). The Exercise Price Multiple
          may  be  paid  in  cash, check, or by certified or official bank check
          payable  to  the  order  of  the  Company,  or by "cashless" or "easy"
          exercise,  as  set  forth  below.

     c.   Easy Exercise. In the event the Warrant Shares have been registered on
          -------------
          a  then effective registration statement, or if the Warrant Shares are
          otherwise  not  "restricted  securities"  under  the Securities Act of
          1933,  as  amended, and if permitted by law and applicable regulations
          (including  Nasdaq  and  NASD  rules), the Holder may pay the exercise
          price through a commitment from the Holder and a broker-dealer that is
          a  member  of  the National Association of Securities Dealers (a "NASD
          Dealer"),  whereby  the Holder irrevocably elects to exercise all or a
          portion  of  the  Warrants and to sell in an orderly manner as soon as
          possible  the Warrant Shares issuable pursuant to such exercise and to
          pay  the Exercise Price Multiple. The Holder and the NASD Dealer shall
          irrevocably  commit  upon  sale  of such Warrant Shares to forward the
          Exercise Price Multiple directly to the Company. All proceeds of sales
          of  the  Warrant Shares shall be assigned to the Company to secure the
          obligation  to  pay the Exercise Price Multiple, and all such proceeds
          shall  be  remitted  directly to the Company until such Exercise Price
          Multiple  has  been  paid  in  full.

     d.   In  the  event  the  Warrant Shares then issuable upon exercise of the
          Warrants are not registered as described in Section 6(c) above, or are
          in  any  way "restricted" securities (including any restriction in the
          volume  and  manner  of  sales  pursuant to Rule 144), than in lieu of
          exercising the Warrants or any portion thereof, the Holder or Holders,
          if  applicable,  shall  have the right to convert the Warrants, or any
          portion  thereof,  into  Warrant Shares by executing and delivering to
          the  Company,  at  its  principal  executive  office,  a duly executed
          Election  to  Purchase  Form,  specifying the number of Warrants to be
          converted,  and  accompanied  by  the  surrender of such Warrants. The
          person  or  persons  in  whose  name or names the certificates for the
          Warrant  Shares shall be issuable upon such conversion shall be deemed
          the  holder  or  holders of record of such Warrant Shares at that time
          and  date.  The  number  of  Warrant  Shares  to  be  issued upon such
          conversion  shall  be  computed  using  the  following  formula:

     X =  (P)(Y)((A-B)/A)
     X =  the  number  of  Warrant  Shares  to  be issued to such Holder for the
          percentage  of  Warrants  being  converted
     P =  the  percentage  of  the  Warrants  being  converted

<PAGE>
     Y =  the  total  number  of  Warrant  Shares then issuable upon exercise of
          the  Warrants
     A =  the  Fair  Value  (as  defined  below)  of  one  Warrant  Share
     B =  the  Exercise  Price  on  the  date  of  conversion

     e.   Within  three  (3)  business  days  following  such  surrender  of  a
          Certificate  and payment of the Exercise Price Multiple (except in the
          case of an "easy exercise" as described in subsection 6(d) above), the
          Company shall cause to be issued and delivered promptly to the Holder,
          or,  upon  the  written order of the Holder, in such other name as the
          Holder  may  designate,  a  certificate  for  the Warrant Shares being
          purchased,  as  evidenced  by  the  Election to Purchase. Such Warrant
          Share  certificate  shall be deemed to have been issued and any person
          so  designated  to be named therein shall be deemed to have become the
          Holder  of  such  Shares  as  of  the  date  of  the  surrender of the
          applicable Certificate and payment of the Exercise Price Multiple. The
          Warrants  evidenced  by  a  Certificate  shall  be exercisable, at the
          election of the Holder, either as an entirety or from time to time for
          only  part  of the number of Warrants specified in the Certificate. In
          the  event  that  less  than  all  of  the  Warrants  evidenced  by  a
          Certificate surrendered upon the exercise of Warrants are exercised at
          any  time  prior  to  the  date  of  expiration of the Warrants, a new
          Certificate  shall  be  issued  for  the  remaining number of Warrants
          evidenced  by  the  Certificate  so  surrendered.  All  Certificates
          surrendered  upon  exercise  of  Warrants  shall  be  canceled  by the
          Company.

f.        No  Fractional  Shares  to be Issued.  No fraction of a Share shall be
          ------------------------------------
          issued upon any exercise of Warrants, but, in lieu thereof, the number
          of  shares  issuable upon exercise of the Warrants shall be rounded up
          to  the  nearest  full  share  of Common Stock. No fractional Warrants
          shall  be  issued.

     g.   In  the event of a breach of this Agreement by the Company, or a delay
          or  other failure to issue, transfer or clear the Warrant Shares under
          the  terms  hereof,  or a failure of the Company to promptly authorize
          the  Company's  transfer  agent  to  remove  restrictive  legends  as
          permitted  by law or clear any transfer permitted by law, or any other
          breach  of  any  obligation  of  the  Company  which has the effect of
          delaying  the ability of the Holder to sell any Warrant Shares without
          restriction  in  an  open  market transaction which would otherwise be
          permitted  by  law  (a "Transfer Breach"), would result in substantial
          damages  to  the  Holder. Such damages are impracticable and extremely
          difficult to ascertain under the circumstances existing as of the date
          of  this  Agreement.  In  the  event  the  Company  intentionally  or
          negligently  commits a Transfer Breach, or otherwise delays or impedes
          the  issuance,  clearance  or  transfer  of Warrant Shares within five
          business  days  after a written request therefor has been delivered to
          the  Company (the "Certificate Request"), the Company agrees to pay to
          the  Holder or its assignee or designee an amount equal to the greater
          of  (i)  $1,000 per business day for each 500,000 Warrant Shares owned
          by  the  Holder  (including,  without  limitation,  Warrant  Shares
          previously  issued  upon  exercise  of  Warrants (but not yet sold) or
          issuable  upon  exercise  of  any then outstanding Warrants), (ii) the

<PAGE>
          product  of (x) the last sale price of the Common Stock as reported on
          any  securities  market  or  exchange  designated by Holder (the "Last
          Reported Sale Price") on the date the certificates are properly issued
          and delivered to the Holder or its assignee or designee, less the Last
          Reported  Sales  Price  on  the  date  of  the  Certificate  Request,
          multiplied  by  (y) the number of Warrant Shares beneficially owned by
          such  Holder, including, without limitation, Warrant Shares previously
          issued  upon  exercise of Warrants (but not yet sold) or issuable upon
          exercise  of  any  then  outstanding  Warrants  ("Warrant  Shares
          Beneficially  Owned"),  or (iii) the quotient of (x) the Last Reported
          Sale  Price  on  the day prior to the date of the Certificate Request,
          multiplied  by  the number of Warrant Shares Beneficially Owned by the
          Holder,  divided  by  (y) 200 (the "Delay Damages"), for each business
          day  after  the  fifth  business  day  following  the  delivery of the
          Certificate  Request to the Company through and including the day such
          certificates  (without  legend  or  restriction)  are delivered to the
          Holder  or  its  assignee or designee at the address set forth in such
          Certificate  Request  or  are  otherwise  cleared  or transferred. THE
          LIQUIDATED DAMAGES AS DESCRIBED HEREIN REPRESENT A REASONABLE ESTIMATE
          OF  DAMAGES.  THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES FOR THE
          BREACH  OF  THIS  PARAGRAPH IS NOT INTENDED AS A FORFEITURE OR PENALTY
          WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT
          IS  INTENDED  TO  CONSTITUTE LIQUIDATED DAMAGES PURSUANT TO CALIFORNIA
          CIVIL  CODE SECTION 1671, 1676, AND 1677. THE LIQUIDATED DAMAGES SHALL
          CONSTITUTE  THE  SOLE AND EXCLUSIVE REMEDY FOR THE COMPANY'S BREACH OF
          THIS AGREEMENT AS DESCRIBED HEREIN. IN THE EVENT THE COMPANY RESTRICTS
          OR DELAYS THE TRANSFER OR CLEARANCE OF SUCH CERTIFICATES BY THE HOLDER
          OR  ITS  ASSIGNEE  OR  DESIGNEE  (WHETHER  BY  STOP  TRANSFER  ORDER,
          UNREASONABLE  DELAY OR OTHERWISE), THE COMPANY SHALL PAY TO THE HOLDER
          OR ITS ASSIGNEE OR DESIGNEE THE DELAY DAMAGES FOR EACH BUSINESS DAY OF
          SUCH  RESTRICTION  OR  DELAY.  To  the  extent necessary to effect the
          foregoing,  the Company agrees (i) to file in a timely manner and keep
          current  information  on  file  with  the  Securities  and  Exchange
          Commission  as  provided  in  Rule  144(c)  and  (ii)  to  keep  any
          registration  statement pursuant to which the Warrant Shares have been
          registered  for  resale  under the Securities Act current. The parties
          have  set  forth their initials below to indicate their agreement with
          the  liquidated  damage  provision  in  this  paragraph.

                 THE COMPANY          THE HOLDER

                     JG                   DG
                 -----------          ----------
                 INITIALS             INITIALS

7.   Payment  of  Taxes.  The  Company  will  pay  all  documentary  stamp taxes
     ------------------
     attributable  to  the  initial  issuance  of  Shares  upon  the exercise of
     Warrants;  provided  that the Company shall not be required to pay any such
     taxes which may be payable in respect of any transfer involved in the issue
     of  any  Certificates  or  any certificates for Shares in a name other than
     that  of  the  Holder  of  a Certificate surrendered upon the exercise of a
     Warrant.

<PAGE>
8.   Reservation  and  Issuance  of  Shares.  The  Company  will  at  all  times
     --------------------------------------
     reserve  and  keep  available,  free  from  preemptive  rights,  out of the
     aggregate  of  its  authorized  but  unissued shares of Common Stock or its
     authorized  and issued shares of Common Stock held in its treasury, for the
     purpose  of  enabling  it to satisfy any obligation to issue Warrant Shares
     upon  exercise  of  Warrants, the full number of Warrant Shares deliverable
     upon  the  exercise  of  all outstanding Warrants. Before taking any action
     which  would  cause  an  adjustment  pursuant  to  Section  10 reducing the
     Exercise  Price  below  the  then  par value (if any) of the Warrant Shares
     issuable upon exercise of the Warrants, the Company will take any corporate
     action which may, in the opinion of its counsel, be necessary in order that
     the  Company  may  validly  and legally issue fully paid and non-assessable
     Warrant  Shares at the Exercise Price as so adjusted. The Company covenants
     that  all Warrant Shares which may be issued upon exercise of Warrants will
     be validly issued, fully paid and non-assessable outstanding Warrant Shares
     of  the  Company  or  any  successor.

9.   Mutilated or Missing Warrant Certificates.  In  case  any Certificate shall
     -----------------------------------------
     be  mutilated,  lost,  stolen  or  destroyed,  the  Company  shall issue in
     exchange  and  substitution  for  and  upon  cancellation  of the mutilated
     Certificate,  or  in  lieu  of  and  substitution for the Certificate lost,
     stolen or destroyed, a new Certificate, of the same series and representing
     an  equivalent  right  or  interest,  but  only  upon  receipt  of evidence
     satisfactory  to  the  Company  of  such loss, theft or destruction of such
     Certificate  and  indemnity,  if  requested,  also  satisfactory  to  it.
     Applicants  for  such  substitute  Certificates shall also comply with such
     other  reasonable  regulations and pay such other reasonable charges as the
     Company  may  prescribe.

10.  Adjustment  of  Exercise  Price  and  Number  of  Shares  Purchasable.  The
     ---------------------------------------------------------------------
     Exercise  Price  and  the  number  of  Warrant  Shares purchasable upon the
     exercise of each Warrant are subject to adjustment from time to time as set
     forth  in  this  Section  10.

     a.   Decrease  or  Increase  in  Exercise  Price  Upon  Subdivision  or
          ------------------------------------------------------------------
          Combination. If the Company shall at any time subdivide or combine the
          -----------
          outstanding  shares  of its Common Stock, the Exercise Price in effect
          immediately  prior  to  such  subdivision  or  combination  shall  be
          proportionately increased in the case of a combination or decreased in
          the  case  of a subdivision, effective at the close of business on the
          date  of  such  subdivision  or  combination,  as  the  case  may  be.

     b.   Adjustment  in  Number  of  Shares Upon Change of Exercise Price. Upon
          ----------------------------------------------------------------
          each  adjustment  of  the  Exercise  Price  pursuant  to Section 10(a)
          hereof,  each  Holder shall thereafter (until another such adjustment)
          be entitled to purchase, at the adjusted Exercise Price, the number of
          shares of Common Stock, calculated to the nearest full share, obtained
          by  multiplying  the  number  of  shares  of  Common Stock purchasable
          hereunder  immediately  prior to such adjustment by the Exercise Price
          in  effect  immediately  prior  to  such  adjustment  and dividing the
          product  so  obtained  by  the  adjusted  Exercise  Price.

     c.   Merger.  If  the  Company,  at  any  time  while  any  Warrants remain
          ------
          outstanding  and  unexpired,  consolidates with or merges into or with

<PAGE>
          any  other  corporation,  the  Warrants  shall thereafter evidence the
          right  of  the Holder to purchase the number and kind of securities in
          respect  of  the  surviving corporation as would have been issuable or
          distributable  to  the  Holder  had  he,  she  or  it  exercised  the
          unexercised  portion  of  the  Warrants  immediately  prior  to  such
          consolidation  or  merger.

     d.   Distribution  of  Company  Assets.  If  the  Company  shall  make  any
          ---------------------------------
          distribution  of  its  assets  to the holders of its Common Stock as a
          partial  or  complete  liquidating  dividend,  a  return of capital or
          otherwise,  each  Holder  shall  be  entitled, after occurrence of the
          record  date  for  determining  shareholders  entitled  to  such
          distribution,  but  before  the date of such distribution, to exercise
          any  Warrants  then  owned  and  purchase  any or all of the shares of
          Common  Stock then subject hereto, and thereupon to receive the amount
          of  such  assets  (or  at the option of the Company a sum equal to the
          value  thereof  at  the time of such distribution to holders of Common
          Stock as such value is determined in good faith by the Company's Board
          of Directors) which would have been payable to such Holder had he, she
          or  it been the holder of record of such shares of Common Stock on the
          referenced  record  date.

11.  Transfer  Restrictions.  The  Holder acknowledges that neither this Warrant
     ----------------------
     nor  the  Warrant  Shares  may  be  offered  or  sold except pursuant to an
     effective  registration  statement  under  the  Securities Act or a written
     opinion  of  counsel  satisfactory  to  the  Company that an exemption from
     registration under the Securities Act is available. Each Holder agrees that
     prior  to making any disposition of the Warrant or Warrant Shares, unless a
     registration  statement  under  the Securities Act is in effect with regard
     thereto,  the  Holder  shall  give written notice to the Company describing
     briefly  the  manner  in which any such proposed disposition is to be made,
     along with an opinion of counsel satisfactory to the Company which provides
     that  no  registration  statement  or  other notification or post-effective
     amendment  thereto  (hereinafter  collectively  a "REGISTRATION STATEMENT")
     under  the  Securities  Act  is  required with respect to such disposition.

12.  Transfer  -  General.  Subject  to  the terms hereof, the Warrants shall be
     --------------------
     transferable  only  on the books of the Company maintained at its principal
     office  upon  delivery  thereof  duly endorsed by the Holder or by his duly
     authorized attorney or representative, or accompanied by proper evidence of
     succession,  assignment  or authority to transfer. In all cases of transfer
     by  an  attorney,  the original power of attorney, duly approved, or a copy
     thereof, duly certified, shall be deposited and remain with the Company. In
     case  of  transfer  by  executors, administrators, guardians or other legal
     representatives,  duly  authenticated  evidence of their authority shall be
     produced,  and  may  be  required  to  be  deposited and to remain with the
     Company in its discretion. Upon any registration of transfer, the person to
     whom  such  transfer  is made shall receive a new Warrant or Warrants as to
     the  portion  of  the  Warrant  transferred, and the Holder of such Warrant
     shall  be entitled to receive a new Warrant or Warrants from the Company as
     to  the  portion thereof retained. The Company may require the payment of a

<PAGE>
     sum  sufficient to cover any tax or governmental charge that may be imposed
     in  connection  with  any  such  transfer.

13.  Piggyback  Registration  Rights.
     -------------------------------

     a.   In case the Company shall at any time determine to register any of its
          securities  under  the Securities Act, other than by way of Securities
          and  Exchange  Commission  (the "COMMISSION") Forms S-4 or S-8, or any
          successor  form  thereto, at its own initiative, the Company will give
          prompt notice thereof to the Holder, and if so requested in writing by
          any person to which such notice shall have been properly provided, the
          Company  will  include among the securities which it then endeavors to
          make  the  subject  of  a registration statement to be filed under the
          Securities Act, or to qualify under such state securities laws, all or
          any  part  of  such  previously  issued  shares, or of the shares then
          eligible  for  issuance  upon  exercise  of  the  Warrants as shall be
          specified  in  such request (the "DESIGNATED SHARES"), and the Company
          will  use  its  best  efforts  to  cause  all  such  registrations,
          qualifications  or compliances to be effected and to be kept effective
          for  not  less  than  90  days.

     b.   Notwithstanding  the  foregoing,  if at any time after the date hereof
          the  Company files a registration statement with respect to any of its
          securities in connection with a bona fide underwritten public offering
          of the same, then (a) any Designated Shares which shall have been made
          the  subject  of  a  registration  statement  filed for the purpose of
          qualifying  shares  under  the Securities Act for future sale or which
          are,  in  connection with such a registration, being or to be included
          pursuant  to  Section  13,  shall,  if  so  requested  by the managing
          underwriter(s)  and  consented  to  by  each  applicable  holder  of
          Designated Shares, be offered for sale through the underwriters on the
          same  terms and conditions under which the Company's securities are to
          be  distributed, provided that if the managing underwriter(s) elect to
                           --------
          include  less  than  all  Designated  Shares  to be offered by selling
          shareholders,  those to be included in the underwritten portion of the
          offering  shall  be,  as  to  each  holder thereof, as nearly equal in
          number  as  is  practicable; and (b) those Designated Shares which are
          not  being  distributed  by  the  underwriters in such public offering
          shall  be  withheld  from the market by the selling shareholders for a
          period,  not  to  exceed 180 days, measured from the effective date of
          the  registration  statement  by  which  such public offering is being
          effected,  which  the  managing  underwriter(s) determine necessary in
          order  to  stabilize  the  market  for  the  underwritten  shares.
          Notwithstanding  the foregoing, in the event in the written opinion of
          such  managing  underwriter(s),  the  Designated  Shares  may  not  be
          included  in  the  registration  statement  without  having a material
          adverse  effect  on  the  Company's  offering  of  it  securities, the
          managing  underwriter(s)  shall  have the right to eliminate or reduce
          the  number  of  Designated  Shares proportionately among the Holders.

<PAGE>
     c.   All  expenses  incurred  in  connection  with  any  registration,
          qualification  or  compliance  effected  by  the  Company  pursuant to
          Section 13, including, without limitation, all registration and filing
          fees, fees and expenses of complying with federal and state securities
          laws,  printing  expenses,  fees  and disbursements of counsel for the
          Company,  and  all  expenses  of  any  special audits incidental to or
          required  by  such  registration  (collectively,  the  "REGISTRATION
          EXPENSES") shall be borne by the Company, provided that each holder of
          Designated  Shares  shall  be  responsible  for  that  portion  of any
          underwriting  commission  incurred in connection with the underwritten
          distribution  of  the securities made the subject of such registration
          effort as shall bear the same ratio to such commission as the value of
          the  Designated Shares sold by the holder in the offering bears to the
          value  of  all  Company  securities  sold  in  such  offering.

     d.   Indemnification  by  the  Company:  In  case  of  each  registration,
          ---------------------------------
          qualification  or  compliance  effected  by  the  Company  pursuant to
          Section  13,  the Company will indemnify and hold harmless each holder
          of  Designated Shares from and against all claims, losses, damages and
          liabilities  of  such  holder  arising  out  of or based on any untrue
          statement  (or  alleged untrue statement) of a material fact contained
          in  any  prospectus  or  other document incident to such registration,
          qualification  or  compliance  or  any  omission  to  state  therein a
          material  fact  required to be stated therein or necessary to make the
          statements therein not misleading, or necessary to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading,  or any violation by the Company of any rule or regulation
          promulgated under the Securities Act or the Exchange Act applicable to
          the Company and relating to action or inaction required of the Company
          in connection with any such registration, qualification or compliance;
          provided that the Company will not be liable to any such person to the
          extent that any such claim, loss, damage or liability arises out of or
          is  based  on  any  untrue  statement  or  omission based upon written
          information furnished to the Company by an instrument duly executed by
          such  person  and  stated  to  be  specifically  for  use  therein.

     e.   Indemnification  by  the  Holders.  Each  Holder hereby agrees, and by
          ---------------------------------
          requesting registration of Designated Shares, each Holder agrees, that
          in  connection  with  each  registration  statement  effected pursuant
          hereto  in  which  Common  Stock  issued  upon  exercise of all or any
          portion  of the Warrants (the "Holder Common Stock") is to be disposed
          of,  each  of  the  participating  Holders  shall,  severally  but not
          jointly,  indemnify and hold harmless, to the fullest extent permitted
          by  law,  the  Company, each other selling Holder and their respective
          directors, officers, agents and employees and each person who controls
          the  Company  and each other selling Holder (within the meaning of the
          Securities  Act  and the Exchange Act) and the managing underwriter if
          any,  and  its  directors,  officers,  agents,  and employees and each
          person  who  controls  such  underwriter  (within  the  meaning of the
          Securities  Act  and  Exchange  Act), in each case against any losses,
          claims,  damages,  liabilities  and expenses resulting from any untrue

<PAGE>
          statement  of  a  material  fact  or  any  omission of a material fact
          required  to be stated in such registration statement or prospectus or
          preliminary prospectus or necessary to make the statements therein not
          misleading,  to  the  extent that such untrue statement or omission is
          contained  in  any information furnished by such Holder to the Company
          expressly  for inclusion in such registration statement or prospectus.

     f.   Conduct  of  Indemnification  Proceedings.  Any  person  entitled  to
          -----------------------------------------
          indemnification hereunder shall give prompt notice to the indemnifying
          party of any claim with respect to which it shall seek indemnification
          and shall permit such indemnifying party to assume the defense of such
          claim  with  counsel reasonably satisfactory to the indemnified party;
          provided,  however,  that  any  person  entitled  to  indemnification
          --------
          hereunder  shall  have  the  right  to  employ separate counsel and to
          participate in the defense of such claim, but the fees and expenses of
          such  counsel  shall  be  at the expense of such person unless (i) the
          indemnifying  party shall have agreed to pay such fees or expenses, or
          (ii) the indemnifying party shall have failed to assume the defense of
          such  claim  and  to  employ  counsel  reasonably satisfactory to such
          person or (iii) such assumption would constitute an actual conflict of
          interest (in which case, if the person notifies the indemnifying party
          in  writing  that such person elects to employ separate counsel at the
          expense  of  the  indemnifying party, the indemnifying party shall not
          have  the  right to assume the defense of such claim on behalf of such
          person). If such defense is not assumed by the indemnifying party, the
          indemnifying  party  shall  not  be  subject  to any liability for any
          settlement  made  without  its  consent (but such consent shall not be
          unreasonably  withheld).  No  indemnified  party  shall be required to
          consent  to  entry  of  any judgment or enter into any settlement that
          does  not  include  as an unconditional term thereof the giving by the
          claimant  or  plaintiff to such indemnified party of a written release
          in  form  and  substance  reasonably  satisfactory to such indemnified
          party  from  all  liability in respect of such claim or litigation. An
          indemnifying  party  who  is not entitled to, or elects not to, assume
          the  defense  of  a  claim  shall not be obligated to pay the fees and
          expenses  of  more  than one firm of counsel (and, if necessary, local
          counsel)  for  all parties indemnified by such indemnifying party with
          respect to such claim, unless a conflict of interest as to the subject
          matter  exists  between such indemnified party and another indemnified
          party  with  respect  to  such  claim, in which event the indemnifying
          party  shall  be  obligated to pay the fees and expenses of additional
          counsel  for  such  indemnified  party.

     g.   Contribution.  If  for  any  reason  the  indemnification provided for
          ------------
          herein  is  unavailable  to an indemnified party or is insufficient to
          hold  it  harmless as contemplated hereby, then the indemnifying party
          shall  contribute  to  the  amount  paid or payable by the indemnified
          party  as  a  result  of such loss, claim, damage or liability in such
          proportion as is appropriate to reflect not only the relative benefits
          received by the indemnified party and the indemnifying party, but also
          the  relative  fault  of  the  indemnified  party and the indemnifying
          party,  as  well  as  any  other  relevant  equitable  considerations,

<PAGE>
          provided  that  in no event shall the liability of any Holder for such
          contribution  and indemnification exceed, in the aggregate, the dollar
          amount  of the proceeds received or to be received by such Holder upon
          the  sale  of  securities  giving  rise  to  such  indemnification and
          contribution  obligation.

     h.   The  Company may require each selling Holder to furnish to the Company
          such  information  and documents regarding such selling Holder and the
          distribution  of  such securities as the Company may from time to time
          reasonably  request  in writing in order to comply with the Securities
          Act.

     i.   Each  of  the  selling Holders agrees that, upon receipt of any notice
          from  the  Company of the happening of any event which would cause any
          then  effective  registration  statement  to  be inaccurate, no longer
          effective,  subject  to  a  stop  order  issued  by the Securities and
          Exchange  Commission,  or  which  would  otherwise  require  by law or
          regulation  that  such  selling  Holders  to  discontinue  sales  of
          securities  under  such  registration  statement,  it  will  forthwith
          discontinue disposition pursuant to such registration statement of any
          shares  of  Common  Stock  covered  by  such registration statement or
          prospectus  until  its  receipt  of  the  copies  of a supplemented or
          amended  prospectus  relating  to  such  registration  statement  or
          prospectus  or  until it is advised in writing by the Company that the
          use of the applicable prospectus may be resumed and, if so directed by
          the  Company,  will  deliver  to  the  Company  all copies, other than
          permanent  file  copies  then  in  their possession, of the prospectus
          covering  such  securities  in  effect  at the time of receipt of such
          notice.

     j.   The  obligations of the Company to use its reasonable efforts to cause
          the  Holder Common Stock to be registered under the Securities Act are
          subject  to  each  of  the  following  limitations,  conditions  and
          qualifications:

          i.   The  Company  shall be entitled to abandon, discontinue, withdraw
               or  postpone  for  any period of time the filing or effectiveness
               of,  or  suspend  the  rights  of  selling  Holders to make sales
               pursuant  to, any registration statement otherwise required to be
               prepared,  filed  and  made and kept effective by it hereunder if
               the  Board  of  Directors of the Company reasonably determines in
               good  faith  that (i) there is a material undisclosed development
               in  the business or affairs of the Company (including any pending
               or  proposed  financing,  recapitalization,  acquisition  or
               disposition),  the  disclosure  of  which  at  such time would be
               adverse  to  the  Company's  interests  or  (ii)  such  filing or
               effectiveness  would  be  disadvantageous  to  the Company or its
               shareholders.

          ii.  The  Company's obligations shall be subject to the obligations of
               the  selling  Holders,  which  each  of  the  Holders  hereby
               acknowledges,  to  furnish  all  information and materials and to
               take  any  and  all  actions  as may be required under applicable

<PAGE>
               federal  and  state securities laws and regulations to permit the
               Company to comply with all applicable requirements of the SEC and
               state  securities  regulations  and to obtain any acceleration of
               the effective date of such registration statement or maintain the
               effectiveness  or  currency  thereof.

          iii. If  requested by an underwriter in an underwritten offering, each
               Holder  agrees  not  to  effect  any public sale or distribution,
               including any sale pursuant to Rule 144 under the Securities Act,
               of  any  Common  Stock within 30 days before or 60 days after the
               effective  date  of  a  registration  statement filed pursuant to
               Section  13.

14.  Miscellaneous  Provisions.
     -------------------------

     a.   Limitation of Rights Conferred. This Warrant Agreement does not confer
          ------------------------------
          upon any Holder of a Warrant Certificate any right as a shareholder of
          the  Company,  nor shall anything contained herein be deemed to affect
          the  right  or  power  of  the  Company  to  make  adjustments,
          reclassifications, reorganizations other changes in and to its capital
          stock  or  business  organization  or  to  limit its right to merge or
          consolidate  or  to sell, transfer or liquidate all or any part of its
          business  or  assets.

     b.   Notices:  All notices or other communications required or permitted to
          -------
          be  given  pursuant to this Agreement shall be in writing and shall be
          considered  as  properly  given or made if hand delivered, mailed from
          within  the  United States by certified or registered mail, or sent by
          prepaid  telegram:

               if  to  the  Company:

                    Emergent  Financial  Group,  Inc.
                    3550  N.  Central  Avenue,  Suite  1800
                    Phoenix,  Arizona  85012
               Attention:  President

                    if  to  a  Holder,  in  care of the address set forth in the
               Company's records established at the time of the Holder's receipt
               of  a  Certificate,

                    or  to  such  other  address  as  any  such  party  may have
               designated  by  like  notice forwarded to the other party hereto.
               Notwithstanding the foregoing, notices of change of address shall
               be  furnished  only  when  received.

15.  Governing  Law  and  Jurisdiction.  This  Agreement  and  the  rights  and
     ---------------------------------
     obligations  of  the  parties under this Agreement shall be governed by and
     construed  and  interpreted  in  accordance  with  the laws of the State of
     California,  without regard to the principles of conflicts of laws thereof.
     In  the  event  of  litigation,  the  prevailing party shall be entitled to
     reasonable  attorneys  fees  and  costs.  Any controversy arising hereunder

<PAGE>
     shall  be  resolved  in  the state or federal courts sitting in Los Angeles
     County, California. In the event a Holder alleges in any complaint that the
     Company  has committed or permitted to exist a Transfer Breach, the Company
     shall,  within  30 days following service of such complaint on the Company,
     provide  a  bond,  which  shall  be  payable to the plaintiffs in the event
     judgment is entered in their favor, up to the amount of such judgment. Such
     bond  shall be in an amount equal to the product of the Last Reported Sales
     Price on the date of the applicable Certificate Request (or the date of the
     filing  of  the  complaint,  if  no  Certificate  Request  was  delivered),
     multiplied  by  the  number  of  Warrant  Shares  Beneficially Owned by the
     Holders  who  are  plaintiffs  in  such complaint. The Holders shall not be
     required  to  post  any  bond.

     WAIVER  OF  JURY  TRIAL. THE COMPANY AND THE HOLDERS HEREBY IRREVOCABLY AND
     UNCONDITIONALLY  WAIVE  TRIAL  BY  JURY  IN  ANY LEGAL ACTION OR PROCEEDING
     RELATING  TO  THIS  AGREEMENT  OR  FOR  ANY  COUNTERCLAIM  THEREIN.

16.  Supplements  and  Amendments.  The Company may from time to time supplement
     ----------------------------
     or  amend  this  Agreement  in order to cure any ambiguity or to correct or
     supplement  any  provision  contained  herein  which  may  be  defective or
     inconsistent  with  any  other  provision  herein,  or  to  make  any other
     provisions  in  regard  to matters or questions arising hereunder which the
     Company may deem necessary or desirable and which shall not be inconsistent
     with  the  provisions  of the Warrants and which shall not adversely affect
     the  interests  of  the  Holders.

17.  Successors  and Assigns.  This  Agreement  shall  be binding upon and inure
     -----------------------
     to  the  benefit  of  the  Company  and  the  Holders  and their respective
     successors  and  assigns.

18.  Merger  or  Consolidation  of  the Company.  So long as the Warrant remains
     ------------------------------------------
     outstanding,  the  Company  will  not merge or consolidate with or into, or
     sell,  transfer  or  lease all or substantially all of its property to, any
     other  corporation  unless  the successor or purchasing corporation, as the
     case  may  be (if not the Company), shall expressly assume, by supplemental
     agreement,  the  due  and  punctual  performance and observance of each and
     every covenant and condition of this Agreement to be performed and observed
     by  the  Company.

19.  Benefits  of  this Agreement.  Nothing in this Agreement shall be construed
     ----------------------------
     to  confer  upon  any  person  other  than the Company, the Holders and any
     successors,  assignees,  transferees or designees of the Holders, any legal
     or equitable right, remedy or claim under this Agreement and this Agreement
     shall be for the sole and exclusive benefit of the Company, the Holders and
     any  successors,  assignees,  transferees  or  designees  of  the  Holders.

20.  Captions. The captions of the Sections of this Agreement have been inserted
     --------
     for  convenience  only  and  shall  have  no  substantive  effect.

<PAGE>
21.  Counterparts.  This Agreement may be executed in any number of counterparts
     ------------
     (including  by  telecopy) each of which when so executed shall be deemed to
     be an original; and all of which counterparts together shall constitute one
     and  the  same  instrument.

22.  Limitation of Liability. No provision hereof, in the absence of affirmative
     -----------------------
     action by any Holder to purchase shares of Common Stock, and no enumeration
     herein  of  the rights or privileges of any Holder of a Warrant, shall give
     rise  to  any liability of such Holder for the purchase price of any Common
     Stock  or  as  a  shareholder  of  the  Company,  whether such liability is
     asserted  by  the  Company  or  by  the  creditors  of  the  Company.

23.  No  Waiver;  Cumulative  Remedies.  No  failure to exercise and no delay in
     ---------------------------------
     exercising,  on  the  part of any Holder or the Company, any right, remedy,
     power  or  privilege hereunder shall operate as a waiver thereof, nor shall
     any  single  or  partial  exercise or any right, remedy, power or privilege
     hereunder preclude any other or further exercise thereof or the exercise of
     any  other  right, remedy, power or privilege. The rights, remedies, powers
     and  privileges  herein  provided  are  cumulative and not exclusive of any
     rights,  remedies,  powers  and  privileges  provided  by  law.

24.  Compliance  with  Governmental  Regulations.  The  Holder acknowledges that
     -------------------------------------------
     none  of  the  Warrants  or  Warrant  Shares have been registered under the
     Securities  Act,  and therefore may be sold or disposed of only pursuant to
     an  effective  registration  statement  under  the  Securities  Act,  or an
     exemption  from  such  registration, and in accordance with this Agreement.
     The  Warrant  Shares  will  bear  a  legend  to  the  following  effect:

          "THE  SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE
          SECURITIES  AND  EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933,
          AS  AMENDED,  OR WITH THE SECURITIES COMMISSION OF ANY STATE UNDER ANY
          APPLICABLE  STATE  SECURITIES  OR BLUE SKY LAWS AND ARE SUBJECT TO THE
          WARRANT  AGREEMENT,  DATED  AS  OF  AUGUST  28,  2001,  AMONG EMERGENT
          FINANCIAL  GROUP,  INC. AND THE ORIGINAL HOLDER HEREOF (A COPY OF EACH
          SUCH AGREEMENT IS ON FILE WITH THE SECRETARY OF THE COMPANY AND MAY BE
          OBTAINED  UPON  WRITTEN  REQUEST  TO  THE  COMPANY).  THE  SECURITIES
          REPRESENTED  HEREBY  MAY  NOT  BE SOLD OR OTHERWISE TRANSFERRED EXCEPT
          PURSUANT  TO  AN  EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION
          EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THOSE SECURITIES LAWS AND
          UPON  PROVISION  OF  AN OPINION OF COUNSEL IN FORM SATISFACTORY TO THE
          COMPANY."

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

                          EMERGENT  FINANCIAL  GROUP,  INC.

                          By: /s/  Jason  Galanis
                              ---------------------------------
                              Jason  Galanis,  President

                          BLAIR  BUSINESS  DEVELOPMENT,  LLC

                          By: /s/  Derek  Galanis
                              ---------------------------------
                              Name:   Derek  Galanis
                              Title:  Managing  Member

<PAGE>
                                    EXHIBIT A

                           Form of Warrant Certificate
                           ---------------------------

<PAGE>
THE  SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND  EXCHANGE  COMMISSION  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR WITH
THE  SECURITIES COMMISSION OF ANY STATE UNDER ANY APPLICABLE STATE SECURITIES OR
BLUE  SKY  LAWS AND ARE SUBJECT TO THE WARRANT AGREEMENT, DATED AS OF AUGUST 28,
2001,  AMONG  EMERGENT  FINANCIAL  GROUP, INC. AND THE ORIGINAL HOLDER HEREOF (A
COPY OF EACH SUCH AGREEMENT IS ON FILE WITH THE SECRETARY OF THE COMPANY AND MAY
BE  OBTAINED  UPON  WRITTEN  REQUEST TO THE COMPANY). THE SECURITIES REPRESENTED
HEREBY  MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION  STATEMENT  OR  IN  A  TRANSACTION  EXEMPT  FROM  THE  REGISTRATION
REQUIREMENTS  OF  THOSE  SECURITIES  LAWS  AND  UPON  PROVISION OF AN OPINION OF
COUNSEL  IN  FORM  SATISFACTORY  TO  THE  COMPANY.

Certificate  No.  A2801-1

                            CERTIFICATE REPRESENTING
                         COMMON STOCK PURCHASE WARRANTS

         For the purchase of Common Stock, Par Value $.01 per share, of

                         EMERGENT FINANCIAL GROUP, INC.

                               5,400,000 WARRANTS
                         ______________________________

     THIS  CERTIFIES  THAT, for value received, BLAIR BUSINESS DEVELOPMENT, LLC,
the  registered  holder of this Common Stock Purchase Warrant (the "Warrant") or
permitted  assigns  (the  "Holder"),  is  entitled  to  purchase  from  Emergent
Financial  Group,  Inc., a Delaware corporation (the "Company"), at any time and
from  time  to  time, upon 90 days prior notice, until 5:00 p.m. Pacific Time on
June  30,  2006  (the  "Expiration  Date"),  up  to  5,400,000  fully  paid  and
nonassessable  shares  of  the  common stock of the Company, $0.01 par value per
share  (the "Shares") at a price per share of $0.25 (the "Exercise Price").  The
number  of  shares  purchasable  upon  exercise of this Warrant and the Purchase
Price per share shall be subject to adjustment from time to time as set forth in
the  Warrant  Agreement  referred  to  below.

This  Warrant  is issued under and in accordance with a Warrant Agreement, dated
as  of  August 28, 2001, between the Company and Blair Business Development, LLC
(the  "Warrant  Agreement") and is subject to the terms and provisions contained
in  the  Warrant Agreement, all of which are incorporated herein by reference. A
copy  of  the  Warrant  Agreement  may  be obtained for inspection by the Holder
hereof  upon  written  request  to  the  Company.

     The Warrants represented by this Certificate may be exercised by the Holder
as  to  all  or  any lesser number of Shares upon surrender of this Certificate,
together with a completed and executed Election to Purchase in the form attached

                                       1
<PAGE>
to  this  Certificate, on or before the date above designated, at the principal
office  of  the Company (or at such other address as is designated in writing by
the  Company);  and  upon payment, by cash, check or cashier's check, payable to
the  Company,  of a sum equal to the product of the Exercise Price multiplied by
the  number  of  Shares being purchased, or upon conversion of the Warrant under
the cashless exercise or easy exercise provisions set forth in Sections 6(c) and
(d)  of  the  Warrant  Agreement;  provided,  that  no fractional share shall be
issuable  upon  any  such exercise and the Company shall issue one full share in
lieu  of  any  fractional  share.  If  this  Certificate shall be exercised with
respect  to less than all of the Shares, the Holder shall be entitled to receive
a  new  Certificate  covering  the  number  of Shares with respect to which this
Certificate  shall  not have been exercised (if such shares are then purchasable
hereunder).

     This  Certificate  is  issued  subject to the condition, and the Holder, by
accepting  the  same,  agrees  with every subsequent holder and with the Company
that title hereto and all rights hereunder shall be transferable (subject to the
provisions of the Warrant Agreement) only by delivery of this Certificate to the
Company,  together  with  the assignment form attached hereto completed and duly
executed  by  the Holder; and that the Company and all persons dealing with this
Certificate  may treat the registered owner hereof as its absolute owner for all
purposes,  until  notified  in  writing  by  such  owner  of  a  transfer.

                                      EMERGENT  FINANCIAL  GROUP,  INC.

                                      By: /s/  Jason  Galanis
                                          Jason  Galanis,  President

DATED:  As of August 28, 2001

                                       2
<PAGE>
                            ELECTION  TO  PURCHASE
                    (To be executed upon exercise of Warrant)

The  undersigned hereby irrevocably elects to exercise the right, represented by
this  Warrant  Certificate,  to  purchase  ________________  Shares and herewith
tenders  in  payment for such Shares cash, check or a certified or official bank
check,  payable to the order of Emergent Financial Group, Inc., in the amount of
$____________________, all in accordance with the terms hereof.  The undersigned
requests  that  a  certificate  of  such  Shares  be  registered  in the name of
_____________________whose  address  is ________________________________________
and  that  such  certificate  be delivered to _________________ whose address is
_________________ __________________________________________.   If the number of
Shares  being  acquired  is less than all purchasable hereunder, the undersigned
requests  that  a  new  Certificate  representing  the  remaining balance of the
Warrants  be  registered  in  the  name  of  and  delivered  to
_____________________whose  address  is  ________________________________.

Dated: _______________________         Signature: ______________________________
(Insert Social Security or Other       (Signature  must  conform  in  all
Identifying  Number  of Holder)        respects  to  name of holder as specified
                                       on the face of  the  Warrant Certificate)

                                      __________________________________________
                                      (Printed  Name)

                                   ASSIGNMENT
                      (To be executed if Holder desires to
                        transfer the Warrant Certificate)

For Value Received, the undersigned hereby sells, assigns and transfers to

                  (please print name and address of transferee)
this  Warrant  Certificate, together with all right, title and interest therein,
and  hereby  irrevocably  constitutes  and  appoints____________________________
______________________ as attorney-in-fact to transfer  the same on the books of
the Company, with full power of substitution.

Dated:________________________         Signature: ______________________________
                                       (Signature  must  conform in all respects
                                       to  name  of  holder  as specified on the
                                       face  of  the  Warrant  Certificate)

___________________________________    _________________________________________
(Insert Social Security or Other       (Printed  Name)
Identifying Number of Holder)

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]