Document:

Purchase Agreement

 EXHIBIT 4.1 
  
 Execution Copy 
  
 PURCHASE AGREEMENT 
  
 FOR THE PURCHASE 
  
 OF 
  
 COMMON STOCK AND WARRANTS 
  
 OF 
  
 CARDIAC SCIENCE,
INC. 
  
  
 CARDIAC SCIENCE, INC. 
 1900 Main Street, Suite 700 
 Irvine, California 92614 
 Telephone: (949) 797-3800 
 Facsimile: (949) 951-7315 

 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT (this “Agreement”) is made as of the 20th day of July, 2004 by and among Cardiac
Science, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and those purchasers whose names are listed on the signature pages hereto (the “Purchasers”). 
  
 To induce the Purchasers to purchase the Common Stock and the Warrants from
the Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  
 1. Sale and Purchase of the Securities. The Company has authorized
and agrees to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, agrees to purchase from the Company the aggregate number of shares of common stock, par value $0.001 per share (the “Common Stock”), and
the aggregate number of warrants (the “Warrants”) exercisable for shares of Common Stock set forth opposite such Purchaser’s name on Schedule I, for the aggregate purchase price set forth opposite such Purchaser’s name on
Schedule I, on the terms and subject to the conditions set forth in this Agreement. All of the shares of Common Stock being purchased pursuant hereto are referred to herein as the “Shares” and all of the shares of Common Stock
issuable upon exercise of the Warrants are referred to herein as the “Warrant Shares.” 
  
 2. Closing; Delivery; Conditions. 
  
 2.1 Closing. The purchase and sale of the Shares and the Warrants (the “Closing”) shall take place at the law offices of Stradling
Yocca Carlson and Rauth, P.C. on the date hereof, or at such other time, place and date agreed upon by the Company and the Purchasers (the “Closing Date”). 
  
 2.2 Delivery of the Shares and Warrants. Subject to the terms and conditions hereof and on the basis of the
representations and warranties set forth herein, on the Closing Date, the Company will deliver to each Purchaser (x) one or more stock certificates, registered in the name of such Purchaser, representing the number of Shares to be purchased by the
Purchaser and bearing an appropriate legend stating that the offer and sale of the Shares have not been registered under the Securities Act (as defined herein) and that the Shares cannot be sold unless such resale is registered under the Securities
Act, or an exemption from registration is available, and (y) Warrants, registered in the name of such Purchaser, bearing an appropriate legend stating that the offer and sale of the Warrant and the Warrant Shares have not been registered under the
Securities Act and that the Warrant and the Warrant Shares cannot be sold unless such resale is registered under the Securities Act, or an exemption from registration is available. Such deliveries shall be made to each Purchaser against payment of
the purchase price therefor by such Purchaser by wire transfer to the account designated in writing by the Company, of immediately available funds in the respective amounts set forth on Schedule I hereto. 
  
 2.3 Closing Conditions. 
  
 (a) The Company’s respective obligations to complete the purchase and
sale of the Shares and the Warrants and deliver the certificates representing the Shares and Warrants to the Purchaser at the Closing shall be subject to the following conditions, any one or more of which may be waived by the Company: 
  
 (1) receipt by the Company from each Purchaser of same-day funds in the
full amount of the purchase price in the respective amounts set forth on Schedule I hereto; and 
  

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 (2) the accuracy in all material respects of the representations and warranties made by each Purchaser
herein and the fulfillment in all material respects of those obligations of the each Purchaser to be fulfilled prior to the Closing. 
  
 (b) The obligation of each Purchaser to accept delivery of such stock certificate(s) and related Warrants and to pay for the securities evidenced thereby
shall be subject to the following conditions, any one or more of which may be waived by such Purchaser: 
  
 (1) Stradling Yocca Carlson & Rauth, counsel to the Company, shall have delivered to the Purchasers a written legal opinion relating to the
transactions contemplated herein, in form, scope and substance reasonably acceptable to the Purchasers; 
  
 (2) the Company shall have duly executed and delivered the Amended and Restated Registration Rights Agreement; and 
  
 (3) the accuracy in all material respects of the representations and
warranties made by the Company herein and the fulfillment in all material respects of those obligations of the Company to be fulfilled prior to the Closing. 
  
 3. Certain Definitions. Unless the context otherwise requires, the terms defined in this Section 3 shall have the meaning herein specified for
purposes of this Agreement. 
  
 “2004 Shelf Registration
Statement” has the meaning set forth in the Amended and Restated Registration Rights Agreement. 
  
 “Affiliate” means any Person who is an “affiliate” as defined in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act. In addition, any partner or member, as the case may be, of a Purchaser shall be deemed to be an Affiliate of such Purchaser. 
  
 “Agreement” means this agreement, including the exhibits, appendices and schedules thereto. 
  
 “Amended and Restated Registration Rights Agreement” means
the Amended and Restated Registration Rights Agreement, dated as of the date hereof, by and among the Company and the Purchasers. 
  
 “Business Day” means each day of the week except Saturdays, Sundays, and days on which banking institutions are authorized by law to
close in the State of New York or California. 
  
 “Commission” means the United States Securities and Exchange Commission. 
  
 “Exchange Act” means the Securities and Exchange Act of 1934, as amended from time to time. 
  

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 “Material Adverse Change” means a material adverse change in the condition (financial or
otherwise), properties, business, or results of operations of the Company and its Subsidiaries taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on the condition (financial or otherwise), properties, business, or results of
operations of the Company and its Subsidiaries taken as a whole. 
  
 “Person” means any individual, sole proprietorship, corporation, business trust, unincorporated organization, association, company, partnership, joint venture, limited liability company, governmental authority (whether a
national, federal, state, provincial, county, municipality or otherwise, and shall include without limitation any instrumentality, division, agency, body or department thereof), or other entity. 
  
 “SEC Filings” means all forms and reports filed by the
Company with the Commission since January 1, 2004. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
  
 4. Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, the Purchasers as
follows: 
  
 4.1 Organization and Qualification. The
Company and each such subsidiary or other entity controlled directly or indirectly by the Company (the “Subsidiaries”) is a corporation or other entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization. The Company and each of the Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation (or other entity) in each jurisdiction in which the nature of the business
conducted by it or location of the assets or properties, owned, leased or licensed by it requires such qualification, except where failure to so qualify or to be in good standing would not have a Material Adverse Effect. 
  
 4.2 Authorized Capital Stock. As of July 19, 2004, the Company had
authorized 1,000,000 shares of Preferred Stock, none of which were outstanding, and 160,000,000 shares of Common Stock, 80,927,139 of which were outstanding. All of the issued and outstanding shares of the Company’s Common Stock have been duly
authorized and validly issued, are fully paid and nonassessable, have been issued in compliance in all material respects with all federal and state securities laws, were not issued in violation of or subject to any preemptive rights or other rights
to subscribe for or purchase securities, and conform in all material respects to the description thereof contained in the Company’s SEC Filings. The Common Stock is registered pursuant to the Exchange Act, and is listed on The Nasdaq National
Market (the “Nasdaq Stock Market”). The Company has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from
the Nasdaq Stock Market. Except as disclosed in or contemplated by the Company’s SEC Filings, the Company does not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any
securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of its capital stock. 
  
 4.3 Shares and Warrants. The Shares have been duly authorized and, when issued, delivered and paid for in the manner set forth in this Agreement,
will be duly authorized, 
  

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 validly issued, fully paid and nonassessable, and will conform in all material respects to the description thereof set
forth in the Company’s SEC Filings. The Warrants have been duly authorized and, upon issuance in accordance with the terms hereof, shall be free from all taxes, liens and charges with respect to the issue thereof. No preemptive rights or other
rights to subscribe for or purchase exist with respect to the issuance and sale of the Shares or the Warrants by the Company pursuant to this Agreement. No further approval or authority of the stockholders or the Board of Directors of the Company
will be required for the issuance and sale of the Shares and related Warrants to be sold by the Company as contemplated herein. Upon exercise in accordance with the Warrants, the Warrant Shares will be validly issued, fully paid and nonassessable
and free from all taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Assuming the accuracy of each of the representations and warranties set forth in
Section 5 hereof, the offer and sale by the Company of the Shares and Warrants is exempt from registration under the Securities Act. 
  
 4.4 Corporate Acts and Proceedings. The Company has full legal right, corporate power and authority to enter into this Agreement, the Warrants and
the Amended and Restated Registration Rights Agreement (collectively, the “Transaction Documents”), to issue the Shares and the Warrants as contemplated hereby and thereby, and to perform the transactions contemplated hereby and
thereby. The Transaction Documents have been duly and validly authorized, executed and delivered by the Company. The execution, delivery and performance of the Transaction Documents by the Company and the consummation of the transactions herein
contemplated will not violate any provision of the organizational documents of the Company and will not result in the creation of any lien, charge, security interest or encumbrance upon any assets of the Company pursuant to the terms or provisions
of, or will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under any agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit
or other instrument to which the Company or the Subsidiaries are a party or by which the Company or the Subsidiaries or their respective properties may be bound or affected and in each case which would have a Material Adverse Effect or, to the
Company’s knowledge, under any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental body applicable to the Company or its Subsidiaries or
their respective properties. No consent, approval, authorization or other order of any court, regulatory body, administrative agency or other governmental body is required for the execution and delivery of this Agreement or the consummation of the
transactions contemplated by this Agreement, except for compliance with the Blue Sky laws and federal securities laws applicable to the offering of the Shares and Warrants. Upon their execution and delivery, and assuming the valid execution thereof
by the Purchaser and payment of the Purchase Price, the Transaction Documents will constitute valid and binding obligations of the Company, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Company set forth in the Amended and Restated Registration Rights Agreement may be legally unenforceable. 

 
 4.5 Contracts. The contracts described in the Company’s SEC
Filings as being in effect on the date thereof that are material to the Company, are in full force and effect on the date hereof; and neither the Company nor its Subsidiaries, nor, to the Company’s knowledge, any other party is in breach of or
default under any of such contracts which would have a Material Adverse Effect. 
  

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 4.6 No Actions. Other than as described in the Company’s SEC Filings, there are no legal or
governmental actions, suits or proceedings pending or, to the Company’s knowledge, overtly threatened to which the Company or its Subsidiaries are or may be a party or of which property owned or leased by the Company or its Subsidiaries are or
may be the subject, or related to environmental or discrimination matters, which actions, suits or proceedings, individually or in the aggregate, might prevent or might reasonably be expected to materially and adversely affect the transactions
contemplated by this Agreement or result in a Material Adverse Change; and no labor disturbance by the employees of the Company exists, to the Company’s knowledge or is imminent which might reasonably be expected to have a Material Adverse
Effect. Neither the Company nor its Subsidiaries is a party to or subject to the provisions of any material injunction, judgment, decree or order of any court, regulatory body administrative agency or other governmental body. 
  
 4.7 Properties. The Company and each of its Subsidiaries has good and
marketable title in fee simple to all real property and good and marketable title to all personal property reflected as owned by them in the consolidated financial statements included in the Company’s SEC Filings. Such property is not subject
to any lien, mortgage, pledge, charge or encumbrance of any kind except (i) those, if any, reflected in such consolidated financial statements (including the notes thereto), or (ii) those which are not material in amount and do not adversely affect
the use of such property by the Company or its Subsidiaries. Any property or building held under lease by the Company or its Subsidiaries is held under valid, existing and enforceable leases, free and clear of all liens, encumbrances, claims, and
defects except such as would not have a Material Adverse Effect. Except as disclosed in the Company’s SEC Filings and except for the property referred to in Section 4.8, each of the Company and its Subsidiaries owns or leases all such
properties as are necessary to its operations as now conducted. 
  
 4.8 Proprietary Rights. Except as disclosed in the Company’s SEC Filings, (i) to the Company’s knowledge, the Company has filed for or holds rights, licenses or options for the inventions, patent applications, patents,
trademarks (both registered and unregistered), trade names, copyrights and trade secrets necessary for the conduct of the Company’s business as currently conducted (collectively, the “Intellectual Property”); and (ii) to the
Company’s knowledge (for each of the following subsections (a) through (e)): (a) there are no third parties who have any ownership rights to any Intellectual Property that is owned by, or has been licensed to the Company for the products
described in the Company’s SEC Filings in the case of any business the Company has or intends to conduct during the year ending December 31, 2004 that would preclude the Company from conducting its business as currently conducted and as the
Company’s SEC Filings indicates the Company contemplates conducting; (b) there are currently no sales of any products that would constitute an infringement by a third party of any Intellectual Property owned, licensed or optioned by the
Company; (c) there is no pending or threatened action, suit, proceeding or claim by others challenging the rights of the Company in or to any Intellectual Property owned, licensed or optioned by the Company, other than claims which would not be
reasonably expected to have a Material Adverse Effect; (d) there is no pending or threatened action, suit, proceeding or claim by others challenging the validity or scope of any Intellectual Property owned, licensed or optioned by the Company, other
than claims which would not be reasonably expected to have a Material Adverse Effect; and (e) there is no pending or threatened action, suit, proceeding or claim by others that the Company infringes or otherwise violates any patent, trademark,
copyright, trade secret or other proprietary right of others, other than claims which would not be reasonably expected to have a Material Adverse Effect. 
  

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 4.9 No Material Adverse Change. Since December 31, 2003, and except as disclosed in the
Company’s SEC Filings or the exhibits incorporated therein by reference, (i) neither the Company nor its Subsidiaries have incurred any material liabilities or obligations, indirect, or contingent, or entered into any material verbal or written
agreement or other transaction which is not in the ordinary course of business or which could reasonably be expected to result in a material reduction in the future earnings of the Company; (ii) neither the Company nor its Subsidiaries have
sustained any material loss or interference with its businesses or properties from fire, flood, windstorm, accident or other calamity not covered by insurance; (iii) neither the Company nor its Subsidiaries have paid or declared any dividends or
other distributions with respect to its capital stock and the Company and its Subsidiaries are not in default in the payment of principal or interest on any outstanding debt obligations; (iv) there has not been any change in the capital stock of the
Company or its Subsidiaries other than the sale of the Shares and Warrants hereunder and shares or options issued pursuant to employee equity incentive plans or purchase plans approved by the Company’s or the Subsidiaries’ Board of
Directors, as the case may be, or indebtedness material to the Company or its Subsidiaries (other than in the ordinary course of business); and (v) there has not been a Material Adverse Change. Since December 31, 2003, the Company and each of its
Subsidiaries has conducted its business only in the ordinary course, consistent with past practice. 
  
 4.10 Financial Statements. 
  
 (a) The audited consolidated financial statements and unaudited interim financial statements included in the SEC Reports (including any related notes and
schedules) (collectively, the “Financial Statements”) comply in all material respects with the applicable accounting requirements and the published rules and regulations of the Commission with respect thereto and have been prepared
in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis by the Company during the periods involved, except as otherwise described in the notes thereto and except that unaudited interim
financial statements may not contain all footnotes required by GAAP or may be condensed or summary statements, and also in the case of the unaudited interim financial statements, subject to normal year-end adjustments that have not been and are not
expected to be material in amount. The Financial Statements fairly present in all material respects the financial position of the Company and its Subsidiaries taken as a whole as of the date set forth on each of such Financial Statements and the
results of operations of the Company and its Subsidiaries for the periods indicated. Except as set forth in the SEC Reports filed and publicly available and except for liabilities and obligations incurred in the ordinary course of business
consistent with past practice, since the date of the most recent Financial Statements included in the SEC Reports filed and publicly available prior to the date hereof, neither the Company nor any of its Subsidiaries has any liabilities or
obligations of any nature (whether accrued, absolute, contingent or otherwise) which are, individually or in the aggregate, material to the business, results of operations or financial condition of the Company and its Subsidiaries, including,
without limitation, any liabilities arising or required to be accrued as a result of the consummation of the transactions contemplated hereby. 
  
 (b) PricewaterhouseCoopers LLP (a) have expressed their opinion with respect to the consolidated financial statements included in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2003, (b) have not given the Company any indication that they will not include such opinion in the 2004 Shelf Registration Statement, and (c) have confirmed to the Company that they
are independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder. 
  

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 4.11 No Defaults. Except as to defaults, violations and breaches which individually or in the
aggregate would not be material to the Company and its Subsidiaries, taken as a whole, neither the Company nor its Subsidiaries are in violation or default of any provision of their certificate of incorporation or bylaws, or other organizational
documents, or in breach of, or default with respect to, any provision of any material agreement filed as an exhibit to the Company’s SEC Filings, any judgment, decree, order, mortgage, deed of trust, lease, franchise, license, indenture, or
permit to which it is a party or by which it or any of its properties are bound; and there does not exist any state of fact which, with notice or lapse of time or both, would constitute an event of breach or default on the part of the Company or the
Subsidiaries as defined in such documents, except such breaches or defaults which individually or in the aggregate would not be material to the Company and its Subsidiaries, taken as a whole. 
  
 4.12 Compliance. Except as disclosed in the Company’s Form 8-K
filed June 1, 2004, neither the Company nor its Subsidiaries have been advised, and neither has any reason to believe, that it is not conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which
it is conducting business, including, without limitation, all applicable local, state and federal environmental laws and regulations, including the Sarbanes-Oxley Act of 2002; except where failure to be so in compliance therewith would not have a
Material Adverse Effect. 
  
 4.13 Taxes. Each of the
Company and its Subsidiaries has filed all necessary federal, state and foreign income and franchise tax returns which are required to be filed, or has received extensions thereof, and has paid or accrued all taxes shown as due thereon, and neither
the Company nor its Subsidiaries has knowledge of a tax deficiency which has been or might be asserted or threatened against it which could have a Material Adverse Effect. On the Closing Date, all stock transfer or other taxes (other than income
taxes) which are required to be paid in connection with the sale and transfer of the Shares and Warrants to be sold to the Purchaser hereunder will be, or will have been, fully paid or provided for by the Company and all laws imposing such taxes
will be or will have been fully complied with. 
  
 4.14 Books,
Records and Accounts. The books, records and accounts of the Company and its Subsidiaries accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the results of operations of, the Company
and its Subsidiaries. The Company and each of its Subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

  
 4.15 Offering Materials. The Company has not
distributed and will not distribute prior to the Closing Date any offering materials in connection with the offering and sale of the Shares and Warrants. The Company has not in the past nor will it hereafter take any action to sell, offer for sale
or solicit offers to buy any securities of the Company which would bring the offer, issuance or 
  

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 sale of the Shares or Warrants, as contemplated by this Agreement, within the provisions of Section 5 of the Securities
Act, unless such offer, issuance or sale was or shall be within the exemptions of Section 4 of the Securities Act. 
  
 4.16 Insurance. The Company maintains insurance of the type and in the amount that the Company reasonably believes is adequate for its business,
including, but not limited to, insurance covering all real and personal property owned or leased by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies,
all of which insurance is in full force and effect. 
  
 4.17
Investment Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment
Company Act of 1940, as amended. 
  
 4.18 Contributions. At
no time since its incorporation has the Company, directly or indirectly, (i) used any corporate or other funds for gifts, entertainment or other unlawful contributions to any candidate for public office, or failed to disclose fully any contribution
in violation of law, or (ii) made any payment to any federal or state governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required or permitted by the laws of the United States or
any jurisdiction thereof. 
  
 4.19 Compliance with Government
and Regulatory Authorities. Each of the Company and its Subsidiaries has such permits, licenses, consents, exemptions, franchises, authorizations and other approvals (each, an “Authorization”) of, and has made all filings with
and given all notices to, all governmental or regulatory authorities and self-regulatory organizations and all courts and other tribunals, as are necessary to own, lease, license and operate its respective properties and to conduct its business,
except where the failure to have any such Authorization or to make any such filing or notice would not, singly or in the aggregate, have a Material Adverse Effect. Each such Authorization is valid and in full force and effect and each of the Company
and its subsidiaries is in compliance with all the terms and conditions thereof and with the rules and regulations of the authorities and governing bodies having jurisdiction with respect thereto; and no event has occurred (including) without
limitation the receipt of any notice from any authority or governing body) that allows or, after notice or lapse of time or both, would allow, revocation, suspension or termination of any such Authorization or results or, after notice or lapse of
time or both, would result in any other impairment of the rights of the holder of any such Authorization; and such Authorizations contain no restrictions that are burdensome to the Company or any of its subsidiaries; except where such failure to be
valid and in full force and effect or to be in compliance, the occurrence of any such event or the presence of any such restriction would not, singly or in the aggregate, have a Material Adverse Effect. 
  
 4.20 SEC Reports. The Company has filed with the Commission all forms,
reports, definitive proxy statements, schedules and registration statements required to be filed by it with the Commission since January 1, 2003 (the “SEC Reports”). No Subsidiary is required to file any report, form or document
with the Commission pursuant to the Exchange Act or the Securities Act. As of their respective filing dates or, if amended, as of the date of the last amendment, none of the SEC Reports contained any untrue statement of a material fact or omitted to
state any material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The SEC Reports (including, without limitation, any financial
statements and schedules included therein) when filed complied in all 
  

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 material respects with applicable requirements of the Securities Act and the Exchange Act. As of the date hereof, there
are no amendments or modifications to agreements, documents or other instruments which previously had been filed by the Company with the Commission pursuant to the Securities Act or the Exchange Act or, except for this Agreement and the documents
related thereto, any other material agreements, documents or other instruments, which have not yet been filed with the Commission but which are or will be required to be filed by the Company. 
  
 5. Representations, Warranties and Covenants of the Purchasers. Each
Purchaser, severally and not jointly, represents and warrants to, and covenants with, the Company as follows: 
  
 5.1 Investment Intent and Expense. (i) Such Purchaser is knowledgeable, sophisticated and experienced in making, and is qualified to make,
decisions with respect to investments in shares representing an investment decision like that involved in the purchase of the Shares and Warrants, including investments in securities issued by the Company, and has requested, received, reviewed and
considered all information it deems relevant in making an informed decision to purchase the Shares and Warrants; (ii) such Purchaser is acquiring the number of Shares and Warrants set forth on the signature page hereto in the ordinary course of its
business and for its own account for investment only and with no present intention of distributing any of such Shares or Warrants or any arrangement or understanding with any other persons regarding the distribution of such Shares or Warrants within
the meaning of Section 2(11) of the Securities Act; (iii) such Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of
the Shares or Warrants except in compliance with the Act and the rules and regulations thereunder; (iv) such Purchaser will complete a Registration Statement Questionnaire for use in the preparation of the 2004 Shelf Registration Statement, and the
answers thereto will be true, correct and complete as of the effective date of the 2004 Shelf Registration Statement; (v) such Purchaser has, in connection with its decision to purchase the number of Shares and Warrants set forth on Schedule I,
relied solely upon the Company’s SEC Filings and the documents included therein and the representations and warranties of the Company contained herein; and (vi) such Purchaser is an “accredited investor” as that term is defined in
Regulation D under the Securities Act. 
  
 5.2
Authorization. (i) Such Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement, and (ii) upon the execution and delivery of this Agreement, this Agreement shall constitute valid and binding obligations of such Purchaser enforceable in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and except as the indemnification agreements of the Purchaser set forth in the Amended and Restated Registration Rights Agreement may be legally unenforceable.

  
 5.3 Restriction on Sales, Short Sales and Hedging
Transactions. During the period of twenty (20) Business Days immediately prior to the execution of this Agreement, such Purchaser did not, and from such date through the effectiveness of the 2004 Shelf Registration Statement will not, directly
or indirectly, execute or effect or cause to be executed or effected any short sale, “against the box” sale, option or equity swap transactions in or with respect to the Common Stock or any other derivative security transaction.

  

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 5.4 No Legal, Tax or Investment Advice. Such Purchaser understands that nothing in the
Company’s SEC Filings, this Agreement, or any other materials presented to such Purchaser in connection with the purchase and sale of the Shares and Warrants constitutes legal, tax or investment advice. Each Purchaser has consulted such legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares and Warrants. 
  
 5.5 Further Agreements of Purchaser. 
  
 (a) Such Purchaser understands that the Shares and Warrants are being offered and sold to it in reliance upon specific exemptions from the registration
requirements of the Securities Act, the rules and regulations promulgated thereunder, and state securities laws and that the Company is relying upon the truth and accuracy of, and such Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Shares and Warrants. 
  
 (b) Such Purchaser understands that its investment in the Shares and
Warrants involves a significant degree of risk and that the market price of the Common Stock has been volatile and that no representation is being made as to the future value of the Common Stock. Each Purchaser has the knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of an investment in the Shares and Warrants and has the ability to bear the economic risks of an investment in the Shares and Warrants. 
  
 (c) Such Purchaser understands that no United States federal or state agency
or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Shares or Warrants. 
  
 (d) Such Purchaser understands that, until such time as the 2004 Shelf Registration Statement, has been declared effective or the Shares or Warrants may
be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Shares and Warrants will bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of the certificates for the Shares): 
  
 The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”) or
with any securities commission under applicable state securities laws or blue sky laws. The securities may not be offered for sale, sold, transferred, pledged, assigned, hypothecated or otherwise disposed of unless there is an effective registration
statement for the securities under the Act, or an opinion of counsel, in form, substance and scope reasonably acceptable to the Company, that such sale or transfer is exempt from the registration and prospectus delivery requirements of the Act.

  
 (e) Such Purchaser’s principal executive offices are
in the jurisdiction set forth immediately below such Purchaser’s name on the signature pages hereto. 
  

 11 

 5.6 Limitations on Future Purchases of Company Securities. Such Purchaser agrees that it will not,
without prior approval of the Company’s stockholders, acquire, or obtain the right to acquire, from another stockholder of the Company any shares of Common Stock (or securities convertible into or exercisable for Common Stock) if, after such
acquisition, such Purchaser, or a group of investors including Purchaser that have identified themselves as a group in a public filing made with the Commission, would own 20% or more of the Common Stock (or securities convertible into or exercisable
for Common Stock) or voting power of the Company on a post-transaction basis. 
  
 6. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all covenants, agreements, representations and warranties made by the Company
and the Purchasers and in the certificates for the Shares and Warrants delivered pursuant hereto shall survive the execution of this Agreement, the delivery to the Purchasers of the Shares and Warrants being purchased and the payment therefor.

  
 7. Expenses. Each party shall pay its own fees, costs
and expenses (including fees, expenses and disbursements of such party’s counsel, accountants and other advisers) in connection with the preparation, negotiation, execution, delivery and performance of the Transaction Documents and any
documents executed in connection therewith; provided, however, that, subject to completion of the Closing, the Company agrees to pay the foregoing reasonable fees and expenses of one counsel to the Purchasers, which fees and expenses
shall not exceed $50,000. 
  
 8. Assignment, Sale of
Interest. The Company may not sell, assign or transfer (“Transfer”) this Agreement without the consent of the Purchasers holding a majority of the then-outstanding Shares and Warrant Shares as a group; provided,
however, that no consent shall be required in connection with a merger, consolidation or sale of substantially all of the Company’s assets so long as the successor or transferee agrees in writing to be bound by the provisions of this
Agreement. The Purchasers may not Transfer this Agreement without the consent of the Company, except that the Purchasers may Transfer this Agreement to any Affiliate of any Purchaser (including affiliated funds or partners thereof) provided that the
transferee agrees in writing to be bound by the provisions of this Agreement. 
  
 9. Successors and Assigns. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 
  
 10. No Broker’s Fees. Each of the parties hereto hereby
represents that, on the basis of any actions and agreements by it, there are no brokers or finders entitled to compensation in connection with the sale of the Shares and Warrants to the Purchasers. 
  

 12 

 11. Notices. All notices, requests, consents and other communications hereunder shall be in
writing, shall be mailed by first-class registered or certified airmail, confirmed facsimile or nationally recognized overnight express courier postage prepaid, and shall be deemed given when so mailed and shall be delivered as addressed as follows:

  

	 	(1)	if to the Company, to: 

  
 Cardiac Science, Inc. 
 1900 Main Street, Suite 700 
 Irvine, California 92614 
 Attention: Chief Executive Officer 
 Facsimile: (949) 951-7315 
  
 with a copy to: 
  
 Stradling Yocca Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, California 92660 
 Attention: Shivbir S. Grewal 
 Facsimile: (949) 725-4100 
  

	 	(2)	if to any Purchaser, to the name and address listed on the signature pages hereto, with a copy to: 

  
 Paul, Weiss, Rifkind, Wharton & Garrison LLP

 1285 Avenue of the Americas 
 New York, New York 10019-6064 
 Attention: Bruce A. Gutenplan, Esq. 
 Facsimile: (212) 757-3990 
  
 12. Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by an authorized representative of
the Company and the Purchasers holding a majority of the then-outstanding Shares and Warrant Shares in the aggregate. 
  
 13. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement. 
  
 14. Severability. In case
any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

  
 15. Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without regard to the conflict of laws and the federal law of the United States of America. 
  

16. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. 
  
 [Signature Page Follows] 
  

 13 

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

			
	“Company”
	
	 Cardiac Science, Inc.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 “Purchaser”

	
	 Perseus Market Opportunity Fund, L.P.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 c/o Perseus, L.L.C.

	 888 Seventh Avenue, 29th Floor

	 New York, New York 10106

	 Telecopier No.: 212-651-6399

	 Attention: Ray E. Newton, III

	
	 Winterset Master Fund, L.P.

		
	 By:
	 	Babson Capital Management LLC, as Investment Manager
		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800

	 Springfield, MA 01115

	 Telecopier No.:

	 Attention:

  

 14 

			
	 Mill River Master Fund, L.P.

		
	 By:
	 	Babson Capital Management LLC, as Investment Manager
		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800

	 Springfield, MA 01115

	 Telecopier No.:

	 Attention:

	
	 Massachusetts Mutual Life Insurance Company

		
	 By:
	 	Babson Capital Management LLC, as Investment Manager
		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800

	 Springfield, MA 01115

	 Telecopier No.:

	 Attention:

	
	

	 Walter Villiger

	
	

	

	

	 Telecopier No.:

  

 15 

 SCHEDULE I 
  

								
	 Purchaser’s Name

	  	Purchase Price

	  	Number of Shares

	  	Number of Warrant Shares

	 Perseus Market Opportunity Fund, L.P.
	  	$	5,000,000.85	  	2,109,705	  	843,882
	 Winterset Master Fund, L.P.
	  	 	474,000.00	  	200,000	  	80,000
	 Mill River Master Fund, L.P.
	  	 	355,500.00	  	150,000	  	60,000
	 Massachusetts Mutual Life Insurance Company
	  	 	4,170,498.48	  	1,759,704	  	703,881
	 Walter Villager
	  	 	2,370,000.00	  	1,000,000	  	400,000
	 Totals:
	  	$	12,369,999.33	  	5,219,409	  	2,087,763Amended and Restated Registration Rights Agreement

 EXHIBIT 4.2 
  
 Execution Copy 
  
 AMENDED AND RESTATED 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 by and among 
  
 Cardiac Science, Inc. 
  
 and 
  
 The Investors
Named Herein 
  
 Dated: July 20, 2004 

 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT 
  
 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this
“Agreement”), dated July 20, 2004 (the “Effective Date”), by and among Cardiac Science, Inc, a Delaware corporation (the “Company”) and the investors whose names are listed on the signature pages
hereto (the “Investors”). 
  
 WHEREAS, pursuant
to the Senior Note and Warrant Purchase Agreement, dated May 29, 2002 (the “Note Purchase Agreement”), by and among the Company and certain Investors, the Company issued and sold to such Investors senior notes and warrants;

  
 WHEREAS, the Company and certain Investors were parties to a
Registration Rights Agreement, dated May 30, 2002, (the “Original Registration Rights Agreement”) granting registration rights with respect to the securities issued pursuant to the Note Purchase Agreement; 
  
 WHEREAS, the Company has filed a shelf registration on Form S-3 (Registration
No. 333-110898) in connection with the senior notes and warrants issued under the Note Purchase Agreement (the “Existing Shelf Registration”), and the Existing Shelf Registration is currently effective; 
  
 WHEREAS, pursuant to the Purchase Agreement, dated the date hereof, by and
among the Company and the Investors (the “2004 Purchase Agreement”), the Company has agreed to issue and sell to certain Investors shares of Common Stock and Warrants; and 
  
 WHEREAS, in order to induce each of the Investors to enter into the 2004
Purchase Agreement and to consummate the transactions contemplated thereby, the parties hereto are entering into this Agreement to, among other things, amend and restate the Original Registration Rights Agreement in its entirety. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1 Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated: 
  
 “2004 Purchase Agreement” has the meaning set forth in the recitals to this Agreement. 
  
 “2004 Shelf Registration” has the meaning set forth in
Section 6.2. 
  
 “Affiliate” shall mean any
Person who is an “affiliate” as defined in Rule 12b-2 of the General Rules and Regulations under the Exchange Act. In addition, any partner or member, as the case may be, of an Investor shall be deemed to be an Affiliate of such Investor.

  
 “Agreement” means this Agreement as the same
may be amended, supplemented or modified in accordance with the terms hereof. 
  

 1 

 “Approved Underwriter” has the meaning set forth in Section 3.6. 
  
 “Board of Directors” means the Board of Directors of the
Company. 
  
 “Business Day” means any day other
than a Saturday, Sunday or other day on which commercial banks in the states of New York or California are authorized or required by law or executive order to close. 
  
 “Commission” means the Securities and Exchange Commission or any similar agency then having jurisdiction to
enforce the Securities Act. 
  
 “Common Stock”
means the Common Stock, par value $.001 per share, of the Company or any other capital stock of the Company into which such stock is reclassified or reconstituted. 
  
 “Company” has the meaning set forth in the preamble to this Agreement. 
  
 “Company Underwriter” has the meaning set forth in Section
4.1. 
  
 “Demand Registration” has the meaning
set forth in Section 3.1. 
  
 “Designated Holder”
means each of the Investors and any transferee of any of them to whom the Warrants or Registrable Securities have been transferred in accordance with Section 10.5 of this Agreement, other than a transferee to whom Registrable Securities have been
transferred pursuant to a Registration Statement under the Securities Act or Rule 144 or Regulation S promulgated under the Securities Act (or any successor rule thereto). 
  
 “Effective Date” has the meaning set forth in the preamble to this Agreement. 
  
 “Exchange Act” means the United States Securities Exchange
Act of 1934, as amended, and the rules and regulations of the Commission thereunder. 
  
 “Existing Shelf Registration” has the meaning set forth in the recitals to this Agreement. 
  
 “Holders’ Counsel” has the meaning set forth in Section 7.1(a). 
  
 “Incidental Registration” has the meaning set forth in Section 4.1. 
  
 “Indemnified Party” has the meaning set forth in Section
8.3. 
  
 “Indemnifying Party” has the meaning set
forth in Section 8.3. 
  
 “Initiating Holders”
has the meaning set forth in Section 3.1. 
  
 “Inspector” has the meaning set forth in Section 7.1(g). 
  
 “Investors” has the meaning set forth in the preamble to this Agreement. 
  
 “Liability” has the meaning set forth in Section 8.1. 
  
 “NASD” means the National Association of Securities Dealers, Inc. 
  

 2 

 “Note Purchase Agreement” has the meaning set forth in the recitals to this Agreement.

  
 “Person” means any individual, firm,
corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind, and shall include any
successor (by merger or otherwise) of such entity. 
  
 “Records” has the meaning set forth in Section 7.1(g). 
  
 “Registrable Securities” means each of the following: (a) any and all shares of Common Stock issued or issuable upon the exercise of the Warrants, (b) the Common Stock issued to the Investors pursuant
to the 2004 Purchase Agreement, and (c) any shares of Common Stock issued or issuable to any of the Designated Holders with respect to the Registrable Securities by way of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or otherwise and any shares of Common Stock issuable upon conversion, exercise or exchange thereof. 
  
 “Registration Expenses” has the meaning set forth in Section 7.4. 
  
 “Registration Statement” means a Registration Statement
filed pursuant to the Securities Act. 
  
 “S-3 Initiating
Holders” has the meaning set forth in Section 5.1 of this Agreement. 
  
 “S-3 Registration” has the meaning set forth in Section 5.1. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated
thereunder. 
  
 “Valid Business Reason” has the
meaning set forth in Section 3.1. 
  
 “Warrants”
mean the warrants exercisable for shares of Common Stock issued in connection with the Note Purchase Agreement (including warrants no. W-7, W-8 and W-9) and the 2004 Purchase Agreement. 
  
 ARTICLE II 
  
 GENERAL; SECURITIES SUBJECT TO THIS AGREEMENT 
  
 2.1 Grant of Rights. The Company hereby grants registration rights to the Designated Holders upon the terms and conditions set forth in this
Agreement. 
  
 2.2 Registrable Securities. For the purposes
of this Agreement, Registrable Securities will cease to be Registrable Securities, when (i) a Registration Statement covering such Registrable Securities has been declared effective under the Securities Act by the Commission and such Registrable
Securities have been disposed of pursuant to such effective Registration Statement, or (ii) such Registrable Securities are sold to the public pursuant to Rule 144 under the Securities Act. 
  
 2.3 Holders of Registrable Securities. A Person is deemed to be a
holder of Registrable Securities whenever such Person owns of record Registrable Securities, or a security convertible into or exercisable or exchangeable for, Registrable Securities whether or not such acquisition or 
  

 3 

 conversion has actually been effected. If the Company receives conflicting instructions, notices or elections from two or
more Persons with respect to the same Registrable Securities, the Company may act upon the basis of the instructions, notice or election received from the registered owner of such Registrable Securities. Registrable Securities issuable upon
conversion or exercise of another security shall be deemed outstanding for the purposes of this Agreement. 
  
 ARTICLE III 
  
 DEMAND REGISTRATION 
  
 3.1 Request for Demand
Registration. At any time after the date hereof, in the event that the Company shall become ineligible to register the Registrable Securities under the Securities Act on Form S-3 (or any successor form thereto), the Investors holding a majority
of the Registrable Securities (the “Initiating Holders”), may make a written request to the Company to register, and the Company shall register, under the Securities Act (other than pursuant to a Registration Statement on Form S-4
or S-8 or any successor thereto) (a “Demand Registration”), the offer and sale of the Registrable Securities stated in such request; provided, however, that the Company shall not be obligated to effect more than two (2) such Demand
Registrations for the Investors. For purposes of the preceding sentence, two or more Registration Statements filed in response to one demand shall be counted as one Demand Registration. If the Board of Directors, in its good faith judgment,
determines that any registration of Registrable Securities should not be made or continued because it would materially interfere with any material financing, acquisition, corporate reorganization or merger or other material transaction involving the
Company (a “Valid Business Reason”), the Company may (i) postpone filing a Demand Registration statement until such Valid Business Reason no longer exists, but in no event for more than ninety (90) days, and (ii) in the event that a
Demand Registration statement has been filed, if the Valid Business Reason has not resulted from actions taken by the Company, the Company, upon the approval of a majority of the Board of Directors, may cause such registration statement to be
withdrawn and its effectiveness terminated or may postpone amending or supplementing such registration statement. The Company shall give written notice of its determination to postpone or withdraw a registration statement and of the fact that the
Valid Business Reason for such postponement or withdrawal no longer exists, in each case, promptly after the occurrence thereof. Notwithstanding anything to the contrary contained herein, the Company may not postpone or withdraw a filing under this
Section 3.1 more than once in any twelve (12) month period. Each request for a Demand Registration shall state the amount of the Registrable Securities proposed to be sold. 
  
 3.2 Incidental or “Piggy-Back” Rights with Respect to a Demand Registration. Each of the Designated Holders
(other than Initiating Holders who have requested a registration under Section 3.1) may offer and sell its or his Registrable Securities under any Demand Registration pursuant to this Section 3.2. Within seven (7) business days after the receipt of
a request for a Demand Registration from an Initiating Holder, the Company shall (i) give written notice thereof to all of the Designated Holders (other than Initiating Holders which have requested a registration under Section 3.1), and (ii) subject
to Section 3.5, include in such registration all of the Registrable Securities held by such Designated Holders from whom the Company has received a written request for inclusion therein within ten (10) days of the receipt by such Designated Holders
of such written notice referred to in clause (i) above. Each such request by such Designated Holders shall specify the number of Registrable Securities to be included in the Registration Statement. The failure of any Designated Holder to respond
within such 10 day period referred to in clause (ii) above shall be deemed to be a waiver of such Designated Holder’s rights under this Article III with respect to such 
  

 4 

 Demand Registration. Any Designated Holder may waive its rights under this Article III prior to the expiration of such
10-day period by giving written notice to the Company, with a copy to the Initiating Holders. If a Designated Holder sends the Company a written request for inclusion of part or all of such Designated Holder’s Registrable Securities in a
registration, such Designated Holder shall not be entitled to withdraw or revoke such request without the prior written consent of the Company in its sole discretion unless, as a result of facts or circumstances relating to the Company or to market
conditions arising after the date on which such request was made, such Designated Holder reasonably determines that participation in such registration would have a material adverse effect on such Designated Holder. 
  
 3.2 Effective Demand Registration. The Company shall use its
reasonable best efforts to cause any such Demand Registration to become and remain effective not later than sixty (60) days after the expiration of the ten (10) day period referred to in clause (ii) in Section 3.2 hereof. A registration shall not
constitute a Demand Registration until it has become effective and remains continuously effective for the lesser of (i) the period during which all Registrable Securities registered in the Demand Registration are sold and (ii) 120 days; provided,
however, that a registration shall not constitute a Demand Registration if (x) after such Demand Registration has become effective, such registration or the related offer, sale or distribution of Registrable Securities thereunder is interfered with
by any stop order, injunction or other order or requirement of the Commission or other governmental agency or court for any reason not attributable to the Initiating Holders and such interference is not thereafter eliminated or (y) the conditions
specified in the underwriting agreement, if any, entered into in connection with such Demand Registration are not satisfied or waived, other than by reason of a failure by the Initiating Holder. 
  
 3.3 Expenses. Subject to Section 7.4 hereof, the Company shall pay all
Registration Expenses in connection with a Demand Registration, whether or not such Demand Registration becomes effective. 
  
 3.4 Underwriting Procedures. If the Company or the Initiating Holders holding a majority of the Registrable Securities held by all of the
Initiating Holders so elect, the Company shall use its reasonable best efforts to cause such Demand Registration to be in the form of a firm commitment underwritten offering and the managing underwriter or underwriters selected for such offering
shall be the Approved Underwriter selected in accordance with Section 3.6. In connection with any Demand Registration under this Article III involving an underwritten offering, none of the Registrable Securities held by any Designated Holder making
a request for inclusion of such Registrable Securities pursuant to Section 3.2 hereof shall be included in such underwritten offering unless such Designated Holder accepts the terms of the offering as agreed upon by the Company, the Initiating
Holders and the Approved Underwriter, and then only in such quantity as will not, in the opinion of the Approved Underwriter, jeopardize the success of such offering by the Initiating Holders. If the Approved Underwriter advises the Company that the
aggregate amount of such Registrable Securities requested to be included in such offering is sufficiently large to have a material adverse effect on the success of such offering, then the Company shall include in such registration only the aggregate
amount of Registrable Securities that the Approved Underwriter believes may be sold without any such material adverse effect and shall reduce the amount of Registrable Securities to be included in such registration, first as to the Company, second
as to the Designated Holders (who are not Initiating Holders and who requested to participate in such registration pursuant to Section 3.2 hereof) as a group, if any, and third as to the Initiating Holders as a group, pro rata within each group
based on the number of the Registrable Securities owned by each such Designated Holder or Initiating Holder, as the case may be. 
  

 5 

 3.5 Selection of Underwriters. If any Demand Registration or S-3 Registration, as the case may be,
of Registrable Securities is in the form of an underwritten offering, the Company shall use its reasonable best efforts to appoint an investment banking firm of national reputation to act as the managing underwriter of the offering (the
“Approved Underwriter”); provided, however, that the Approved Underwriter shall, in any case, also be approved by the Initiating Holders or S 3 Initiating Holders holding a majority of Registrable Securities sought to be registered,
as the case may be, such approval not to be unreasonably withheld. 
  
 ARTICLE IV 
  
 INCIDENTAL OR “PIGGY-BACK”
REGISTRATION 
  
 4.1 Request for Incidental
Registration. At any time after the date hereof, if the Company proposes to file a Registration Statement under the Securities Act with respect to an offering by the Company for its own account (other than a Registration Statement on Form S-4 or
S-8 or any successor thereto) or for the account of any stockholder of the Company other than the Designated Holders, then the Company shall give written notice of such proposed filing to each of the Designated Holders at least twenty (20) days
before the anticipated filing date, and such notice shall describe the proposed registration and distribution and offer such Designated Holders the opportunity to include the number of Registrable Securities as each such Designated Holder may
request (an “Incidental Registration”). The Company shall use its reasonable best efforts (within twenty (20) days of the notice provided for in the preceding sentence) to cause the managing underwriter or underwriters in the case
of a proposed underwritten offering (the “Company Underwriter”) to permit each of the Designated Holders who have requested in writing to participate in the Incidental Registration to include its or his Registrable Securities in
such offering on the same terms and conditions as the securities of the Company or the account of such other stockholder, as the case may be, included therein. In connection with any Incidental Registration under this Section 4.1 involving an
underwritten offering, the Company shall not be required to include any Registrable Securities in such underwritten offering unless the Designated Holders accept the terms of the underwritten offering as agreed upon between the Company, such other
stockholders, if any, and the Company Underwriter, and then only in such quantity as the Company Underwriter believes will not jeopardize the success of the offering by the Company. If the Company Underwriter determines that the registration of all
or part of the Registrable Securities which the Designated Holders have requested to be included would materially adversely affect the success of such offering, then the Company shall be required to include in such Incidental Registration, to the
extent of the amount that the Company Underwriter believes may be sold without causing such material adverse effect, first, all of the securities to be offered for the account of the Company; second, the Registrable Securities to be offered for the
account of the Designated Holders pursuant to this Article IV, pro rata based on the number of Registrable Securities owned by each such Designated Holder; and third, any other securities requested to be included in such offering. 
  
 4.2 Expenses. Subject to Section 7.4 hereof, the Company shall bear
all Registration Expenses in connection with any Incidental Registration pursuant to this Article IV, whether or not such Incidental Registration becomes effective. 
  

 6 

 ARTICLE V 
  
 FORM S-3 REGISTRATION 
  
 5.1 Request for a Form S-3 Registration. At any time after the date hereof, if the Existing Shelf Registration or the 2004 Shelf Registration is
not effective (each, a “Non-Effective Registration Statement”), Designated Holders who propose to sell their Registrable Securities entitled to be covered by a Non-Effective Registration Statement to the public at an aggregate price
of at least $1,000,000 (the “S-3 Initiating Holders”), shall have the right to make a written request that the Company register, under the Securities Act on Form S-3 (or any successor form then in effect) (an “S-3
Registration”), all or a portion of the Registrable Securities owned by such S-3 Initiating Holders and entitled to be covered by such Non-Effective Registration Statement. The Company shall give written notice of such request to all of the
Designated Holders (other than S-3 Initiating Holders which have requested an S-3 Registration under this Section 5.1) at least ten (10) days before the anticipated filing date of such Form S-3, and such notice shall describe the proposed
registration and offer such Designated Holders the opportunity to register the number of Registrable Securities entitled to be covered by such Non-Effective Registration Statement as each such Designated Holder may request in writing to the Company,
given within seven (7) days after their receipt from the Company of the written notice of such registration. With respect to each S-3 Registration, the Company shall, subject to Section 5.2 (i) include in such offering the Registrable Securities of
the S-3 Initiating Holders entitled to be covered by such Non-Effective Registration Statement and (ii) use its reasonable best efforts to (x) cause such registration pursuant to this Section 5.1 to become and remain effective as soon as practicable
and (y) include in such offering the Registrable Securities of the Designated Holders entitled to be covered by such Non-Effective Registration Statement (other than S-3 Initiating Holders which have requested an S-3 Registration under this Section
5.1) who have requested in writing to participate in such registration on the same terms and conditions as the Registrable Securities of the S-3 Initiating Holders included therein. 
  
 5.2 Form S-3 Underwriting Procedures. If the S-3 Initiating Holders holding a majority of the Registrable Securities
entitled to be covered by such Non-Effective Registration Statement held by all of the S-3 Initiating Holders so elect, the Company shall use its reasonable best efforts to cause such S-3 Registration pursuant to this Article V to be in the form of
a firm commitment underwritten offering and the managing underwriter or underwriters selected for such offering shall be the Approved Underwriter selected in accordance with Section 3.6. In connection with any S-3 Registration under Section 5.1
involving an underwritten offering, the Company shall not be required to include any Registrable Securities in such underwritten offering unless the Designated Holders thereof accept the terms of the underwritten offering as agreed upon between the
Company, the Approved Underwriter and the S-3 Initiating Holders, and then only in such quantity as such underwriter believes will not jeopardize the success of such offering by the S-3 Initiating Holders. If the Approved Underwriter believes that
the registration of all or part of the Registrable Securities which the S-3 Initiating Holders and the other Designated Holders have requested to be included would materially adversely affect the success of such public offering, then the Company
shall be required to include in the underwritten offering, to the extent of the amount that the Approved Underwriter believes may be sold without causing such material adverse effect, first, all of the Registrable Securities entitled to be covered
by such Non-Effective Registration Statement to be offered for the account of the S-3 Initiating Holders, pro rata based on the number of Registrable Securities entitled to be covered by such Non-Effective Registration Statement owned by such S-3
Initiating Holders; second, the Registrable Securities entitled to be covered by such Non-Effective Registration Statement to be offered for the account of the other Designated Holders who requested 
  

 7 

 inclusion of their Registrable Securities pursuant to Section 5.1, pro rata based on the number of Registrable Securities
owned by such Designated Holders and entitled to be covered by such Non-Effective Registration Statement; and third, any other securities requested to be included in such offering. 
  
 5.3 Limitations on Form S-3 Registrations. If the Board of Directors has a Valid Business Reason, the Company may (x)
postpone filing a registration statement relating to a S-3 Registration until such Valid Business Reason no longer exists, but in no event for more than ninety (90) days, and (y) in case a registration statement has been filed relating to a S-3
Registration, if the Valid Business Reason has not resulted from actions taken by the Company, the Company, upon the approval of a majority of the Board of Directors, may cause such registration statement to be withdrawn and its effectiveness
terminated or may postpone amending or supplementing such registration statement. The Company shall give written notice of its determination to postpone or withdraw a registration statement and of the fact that the Valid Business Reason for such
postponement or withdrawal no longer exists, in each case, promptly after the occurrence thereof. Notwithstanding anything to the contrary contained herein, the Company may not postpone or withdraw a filing due to a Valid Business Reason more than
once in any twelve (12) month period. 
  
 5.4 Expenses.
Subject to Section 7.4 hereof, the Company shall bear all Registration Expenses in connection with any S-3 Registration pursuant to this Article V and Article VI, whether or not such S-3 Registration becomes effective. 
  
 5.5 No Demand Registration. No registration requested by any S 3
Initiating Holder pursuant to this Article V shall be deemed a Demand Registration pursuant to Article III. 
  
 ARTICLE VI 
  
 SHELF REGISTRATION 
  
 6.1 Existing Shelf
Registration. The Company shall use its reasonable best efforts to keep the Existing Shelf Registration continuously effective under the Securities Act, subject to the provisions of Section 7.3, until all Registrable Securities registered under
the Existing Shelf Registration are sold or are eligible for resale without registration by reason of Rule 144(k) under the Securities Act or any other rule of similar effect. 
  
 6.2 Shelf Registration. Not later than sixty (60) days after the date hereof, the Company shall, at its own cost and
expense, file with the Commission a shelf registration statement pursuant to Rule 415 of the Securities Act (the “2004 Shelf Registration”) on Form S-3 (or any successor form thereto), with respect to the resale, from time to time,
of all of (a) the Common Stock issued to the Investors pursuant to the 2004 Purchase Agreement, (b) the Common Stock issued or issuable upon the exercise of the Warrants issued pursuant to the 2004 Purchase Agreement, and (c) any shares of Common
Stock issued or issuable to any of the Designated Holders with respect to clauses (a) and (b) hereof by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise and any shares of Common Stock issuable upon conversion, exercise or exchange thereof. 
  
 6.3 Effective Shelf Registration. The Company shall use its reasonable best efforts to cause the 2004 Shelf Registration to become effective as
soon as practicable after the date hereof, and shall keep the 2004 Shelf Registration continuously effective under the Securities Act, subject to 
  

 8 

 the provisions of Section 7.3, until all Registrable Securities registered under the 2004 Shelf Registration are sold or
are eligible for resale without registration by reason of Rule 144(k) under the Securities Act or any other rule of similar effect. 
  
 ARTICLE VII 
  
 REGISTRATION PROCEDURES 
  
 7.1 Obligations of the Company. Whenever registration of Registrable Securities has been requested pursuant to Article III, Article IV, Article V or Article VI of this Agreement, the Company shall use its
reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof as quickly as practicable, and in connection with any such request, the Company shall, as
expeditiously as reasonably practicable: 
  
 (a) prepare and file
with the Commission a Registration Statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of such Registrable Securities in accordance with
the intended method of distribution thereof, and cause such Registration Statement to become effective; provided, however, that (x) before filing a Registration Statement or prospectus or any amendments or supplements thereto, the Company shall
provide counsel selected by the Designated Holders holding a majority of the Registrable Securities being registered in such registration (“Holders’ Counsel”) and any other Inspector with an adequate and appropriate opportunity
to review and comment on such Registration Statement and each prospectus included therein (and each amendment or supplement thereto) to be filed with the Commission, subject to such documents being under the Company’s control, and (y) the
Company shall notify the Holders’ Counsel and each seller of Registrable Securities of any stop order issued or threatened by the Commission and take all action required to prevent the entry of such stop order or to remove it if entered;

  
 (b) prepare and file with the Commission such amendments and
supplements to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the lesser of (x) 180 days and (y) such shorter period which will terminate when all
Registrable Securities covered by such Registration Statement have been sold; and shall comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during such period in
accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement; 
  
 (c) furnish to each seller of Registrable Securities, prior to filing a Registration Statement, at least one copy of such Registration Statement as is
proposed to be filed, and thereafter such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits thereto), and the prospectus included in such Registration Statement (including
each preliminary prospectus) and any prospectus filed under Rule 424 under the Securities Act as each such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller; 
  
 (d) register or qualify the offer and sale of such Registrable Securities
under such other securities or “blue sky” laws of such jurisdictions as any seller of Registrable Securities may request, and to continue such qualification in effect in such jurisdiction for as long as permissible pursuant to the laws of
such jurisdiction, or for as long as any such seller requests or until all of such 
  

 9 

 Registrable Securities are sold, whichever is shortest, and do any and all other acts and things which may be reasonably
necessary or advisable to enable any such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller; provided, however, that the Company shall not be required to (x) qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify but for this Section 7.1(d), (y) subject itself to taxation in any such jurisdiction or (z) consent to general service of process in any such jurisdiction; 

 
 (e) notify each seller of Registrable Securities at any time when a
prospectus relating thereto is required to be delivered under the Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such Registration Statement contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and the Company shall promptly prepare a supplement
or amendment to such prospectus and furnish to each seller of Registrable Securities a reasonable number of copies of such supplement to or an amendment of such prospectus as may be necessary so that, after delivery to the purchasers of such
Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading; 
  
 (f) enter into and perform
customary agreements (including an underwriting agreement in customary form with the Approved Underwriter or Company Underwriter, if any, selected as provided in Article III, Article IV or Article V, as the case may be) and take such other actions
as are prudent and reasonably required in order to expedite or facilitate the disposition of such Registrable Securities, including causing its officers to participate in “road shows” and other information meetings organized by the
Approved Underwriter or Company Underwriter; 
  
 (g) make
available at reasonable times for inspection by any seller of Registrable Securities, any managing underwriter participating in any disposition of such Registrable Securities pursuant to a Registration Statement, Holders’ Counsel and any
attorney, accountant or other agent retained by any such seller or any managing underwriter (each, an “Inspector” and collectively, the “Inspectors”) (provided that the Designated Holders shall cooperate with each
other to minimize, to the extent practicable, the number of such attorneys, accountants and other agents who are Inspectors so as not to unduly interfere with the day-to-day operations of the Company and its subsidiaries) all financial and other
records, pertinent corporate documents and properties of the Company and its subsidiaries (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
Company’s and its subsidiaries’ officers, directors and employees, and the independent public accountants of the Company, to supply all information reasonably requested by any such Inspector in connection with such Registration Statement.
Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors (and the Inspectors shall confirm their agreement in writing in advance to the
Company if the Company shall so request) unless (x) the disclosure of such Records is necessary, in the Company’s judgment, to avoid or correct a misstatement or omission in the Registration Statement, (y) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction after exhaustion of all appeals therefrom or (z) the information in such Records was known to the Inspectors on a non-confidential basis prior to its disclosure by the
Company or has been made generally available to the public. Each seller of Registrable Securities agrees that it shall, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and
allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential; 
  

 10 

 (h) if such sale is pursuant to an underwritten offering, obtain “cold comfort” letters dated
the effective date of the registration statement and the date of the closing under the underwriting agreement from the Company’s independent public accountants in customary form and covering such matters of the type customarily covered by
“cold comfort” letters as Holders’ Counsel or the managing underwriter reasonably requests; 
  
 (i) furnish, at the request of any seller of Registrable Securities on the date such securities are delivered to the underwriters for sale pursuant to
such registration or, if such securities are not being sold through underwriters, on the date the Registration Statement with respect to such securities becomes effective, an opinion, dated such date, of counsel representing the Company for the
purposes of such registration, addressed to the underwriters, if any, and to the seller making such request, covering such legal matters with respect to the registration in respect of which such opinion is being given as the underwriters, if any,
and such seller may reasonably request and are customarily included in such opinions; 
  
 (j) comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable but no later than fifteen (15) months after the effective date of
the Registration Statement, an earnings statement covering a period of twelve (12) months beginning after the effective date of the Registration Statement, in a manner which satisfies the provisions of Section 11(a) of the Securities Act and Rule
158 thereunder; 
  
 (k) cause all such Registrable Securities to
be listed on each securities exchange on which similar securities issued by the Company are then listed, provided that the applicable listing requirements are satisfied; 
  
 (l) keep Holders’ Counsel advised in writing as to the initiation and progress of any registration under Article III,
Article IV, Article V or Article VI hereunder; 
  
 (m) cooperate
with each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD; and 
  
 (n) take all other steps reasonably necessary to effect the registration of
the Registrable Securities contemplated hereby. 
  
 7.2 Seller
Information. The Company may require each seller of Registrable Securities as to which any registration is being effected to furnish, and such seller shall furnish, to the Company such information regarding the distribution of such securities as
the Company may from time to time reasonably request in writing. 
  
 7.3 Notice to Discontinue. Each Designated Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 7.1(e), such Designated Holder shall forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Designated Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 7.1(e) and,
if so directed by the Company, such Designated Holder shall deliver to the Company (at the Company’s 
  

 11 

 expense) all copies, other than permanent file copies then in such Designated Holder’s possession, of the prospectus
covering such Registrable Securities which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective
pursuant to this Agreement (including, without limitation, the period referred to in Section 7.1(b)) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 7.1(e) to and including the
date when sellers of such Registrable Securities under such Registration Statement shall have received the copies of the supplemented or amended prospectus contemplated by and meeting the requirements of Section 7.1(e). 
  
 7.4 Registration Expenses. The Company shall pay all expenses arising
from or incident to its performance of, or compliance with, this Agreement, including, without limitation, (i) Commission, stock exchange and NASD registration and filing fees, (ii) all fees and expenses incurred in complying with securities or
“blue sky” laws (including reasonable fees, charges and disbursements of counsel to any underwriter incurred in connection with “blue sky” qualifications of the Registrable Securities as may be set forth in any underwriting
agreement), (iii) all printing, messenger and delivery expenses, (iv) the fees, charges and disbursements of counsel to the Company and of its independent public accountants and any other accounting fees, charges and expenses incurred by the Company
(including, without limitation, any expenses arising from any “cold comfort” letters or any special audits incident to or required by any registration or qualification), (v) the fees, charges and expenses of one counsel to the Designated
Holders and (vi) any liability insurance or other premiums for insurance obtained in connection with any Demand Registration or piggy-back registration thereon, Incidental Registration or S 3 Registration pursuant to the terms of this Agreement,
regardless of whether such Registration Statement is declared effective of the expenses described in the preceding sentence of this Section 7.4 are referred to herein as “Registration Expenses.” Notwithstanding the foregoing, the fees,
charges and expenses of legal counsel (and other professionals retained by) the Designated Holders and/or the Approved Underwriter in excess of $250,000 during any twelve-month period, in the aggregate, shall not be deemed Registration Expenses for
all purposes under this Agreement (and the Company shall be under no obligation to make any payments in connection therewith); provided, however, that if the Designated Holders shall cease to own a sufficient number of Registrable Securities to have
the right to designate at least one member to the Company’s Board of Directors pursuant to Section 9.1 of the 2004 Purchase Agreement, such fees, charges and expenses in excess of $75,000 during any twelve-month period, in the aggregate, shall
not be deemed Registration Expenses for all purposes under this Agreement (and the Company shall be under no obligation to make any payments in connection therewith); and provided, further, that if the Designated Holders shall cease to own at least
10% of the Registrable Securities acquired by the Investors on the Effective Date, all such fees and expenses shall not be deemed Registration Expenses for all purposes under this Agreement (and the Company shall be under no obligation to make any
payments in connection therewith). In addition, the Designated Holders of Registrable Securities sold pursuant to a Registration Statement shall bear the expense of any broker’s commission or underwriter’s discount or commission relating
to registration and sale of such Designated Holders’ Registrable Securities and, subject to clause (v) above, shall bear the fees and expenses of their own counsel. 
  

 12 

 ARTICLE VIII 
  
 INDEMNIFICATION; CONTRIBUTION 
  
 8.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless each Designated Holder, its partners, directors, officers,
affiliates and each Person who controls (within the meaning of Section 15 of the Securities Act) such Designated Holder from and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation)
(each, a “Liability” and collectively, “Liabilities”), arising out of or based upon any untrue, or allegedly untrue, statement of a material fact contained in any Registration Statement, prospectus or preliminary
prospectus or notification or offering circular (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading under the circumstances such statements were made, except insofar as such Liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission contained in such Registration Statement, preliminary prospectus or final prospectus in reliance and in conformity with information concerning such Designated Holder furnished in writing to the Company by
such Designated Holder expressly for use therein, including, without limitation, the information furnished to the Company pursuant to Section 8.2. The Company shall also provide customary indemnities to any underwriters of the Registrable
Securities, their officers, directors and employees and each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act) to the same extent as provided above with respect to the indemnification of the Designated
Holders of Registrable Securities. 
  
 8.2 Indemnification by
Designated Holders. In connection with any Registration Statement in which a Designated Holder is participating pursuant to Article III, Article IV Article V or Article VI hereof, each such Designated Holder shall promptly furnish to the Company
in writing such information with respect to such Designated Holder as the Company may reasonably request or as may be required by law for use in connection with any such Registration Statement or prospectus and all information required to be
disclosed in order to make the information previously furnished to the Company by such Designated Holder not materially misleading or necessary to cause such Registration Statement not to omit a material fact with respect to such Designated Holder
necessary in order to make the statements therein not misleading. Each Designated Holder agrees to indemnify and hold harmless the Company, any underwriter retained by the Company and each Person who controls the Company or such underwriter (within
the meaning of Section 15 of the Securities Act) to the same extent as the foregoing indemnity from the Company to the Designated Holders, but only if such statement or alleged statement or omission or alleged omission was made in reliance upon and
in conformity with information with respect to such Designated Holder furnished in writing to the Company by such Designated Holder expressly for use in such registration statement or prospectus, including, without limitation, the information
furnished to the Company pursuant to this Section 8.2; provided, however, that the total amount to be indemnified by such Designated Holder pursuant to this Section 8.2 shall be limited to the net proceeds received by such Designated Holder in the
offering to which the Registration Statement or prospectus relates. 
  
 8.3 Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying
Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for 
  

 13 

 which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided,
however, that the failure so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any Liability that it may have to the Indemnified Party hereunder (except to the extent that the Indemnifying Party is materially prejudiced or
otherwise forfeits substantive rights or defenses by reason of such failure). If notice of commencement of any such action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the
extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party. The Indemnified Party shall
have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the
Indemnifying Party fails to assume the defense of such action with counsel reasonably satisfactory to the Indemnified Party or (iii) the named parties to any such action (including any impleaded parties) include both the Indemnifying Party and the
Indemnified Party and such parties have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or
(y) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such cases, the Indemnifying Party shall not have the right to assume the
defense of such action on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for
all Indemnified Parties. No Indemnifying Party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the consent of such Indemnified Party,
effect any settlement of any pending or threatened proceeding in respect of which such Indemnified Party is a party and indemnity has been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability for claims that are the subject matter of such proceeding. 
  
 8.4 Contribution. If the indemnification provided for in this Article VIII from the Indemnifying Party is unavailable to an Indemnified Party
hereunder in respect of any Liabilities referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such Liabilities, as well as any other relevant equitable considerations. The relative faults
of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The
amount paid or payable by a party as a result of the Liabilities referred to above shall be deemed to include, subject to the limitations set forth in Sections 8.1, 8.2 and 8.3, any legal or other fees, charges or expenses reasonably incurred by
such party in connection with any investigation or proceeding; provided that the total amount to be contributed by such Designated Holder shall be limited to the net proceeds received by such Designated Holder in the offering. 
  
 The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 8.4 were determined by pro rata allocation or by any other method of allocation which does 
  

 14 

 not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
  
 ARTICLE IX 
  
 COVENANTS 
  
 9.1 Rule 144. The Company covenants that from and after the date hereof, it shall (a) file any reports required to be filed by it under the
Exchange Act and (b) take such further action as each Designated Holder of Registrable Securities may reasonably request (including providing any information necessary to comply with Rule 144 under the Securities Act), all to the extent required
from time to time to enable such Designated Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the Securities Act, as such rule may be amended
from time to time, or Regulation S under the Securities Act or (ii) any similar rules or regulations hereafter adopted by the Commission. The Company shall, upon the request of any Designated Holder of Registrable Securities, deliver to such
Designated Holder a written statement as to whether it has complied with such requirements. 
  
 9.2 Restrictions on Public Sale by the Company. The Company agrees not to effect any public sale or distribution of any of its securities, or any securities convertible into or exchangeable or exercisable for
such securities (except pursuant to registrations on Form S-4 or S-8 or any successor thereto), during the period beginning on the effective date of the first Registration Statement under Article III or Article V in which at least two-thirds of the
Registrable Securities requested to be included in such Registration Statement were included in such Registration Statement and ending on the earlier of (i) the date that all Registrable Securities registered on such Registration Statement are sold
and (ii) thirty (30) days after the effective date of such Registration Statement (except as part of such registration). 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1 Recapitalizations, Exchanges, etc. The provisions of this Agreement shall apply to the full extent set forth herein with respect to (i) the shares of Common Stock, (ii) any and all shares of common stock
of the Company into which the shares of Common Stock are converted, exchanged or substituted in any recapitalization or other capital reorganization by the Company and (iii) any and all equity securities of the Company or any successor or assign of
the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in conversion of, in exchange for or in substitution of, the shares of Common Stock and shall be appropriately adjusted for any stock
dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof. The Company shall cause any successor or assign (whether by merger, consolidation, sale of assets or otherwise) to enter into a new
registration rights agreement with the Designated Holders on terms substantially the same as this Agreement as a condition of any such transaction. 
  
 10.2 No Inconsistent Agreements. The Company represents and warrants that, except as set forth on Schedule 10.2 hereto, it has not granted to any
Person the right to request or require the 
  

 15 

 Company to register any securities issued by the Company, other than the rights granted to the Designated Holders herein.
The Company shall not enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Designated Holders in this Agreement or grant any additional registration rights to any Person or with respect to any
securities which are not Registrable Securities which are prior in right to or inconsistent with the rights granted in this Agreement. 
  
 10.3 Remedies. The Designated Holders, in addition to being entitled to exercise all rights granted by law, including recovery of damages, shall be
entitled to specific performance of their rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby
agrees to waive in any action for specific performance the defense that a remedy at law would be adequate. 
  
 10.4 Notices. All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be made by
registered or certified first-class mail, return receipt requested, telecopier, courier service or personal delivery: 
  
 (a) if to the Company: 
  
 Cardiac Science, Inc. 
 16931 Millikan
Avenue 
 Irvine, California 92606 
 Telecopier No.: 949-951-7315 
 Attention: Roderick de Greef 
  
 with a copy to: 
  
 Stradling Yocca Carlson & Rauth 
 660
Newport Center Drive, Suite 1600 
 Newport Beach, California 92660 
 Telecopier No.: (949) 725-4100 
 Attention:
Shivbir S. Grewal, Esq. 
  
 if to any Investor, to such Investor
at the address set forth on the signature pages hereto, with a copy to: 
  
 Paul, Weiss, Rifkind, Wharton & Garrison LLP 
 1285 Avenue of the Americas 
 New York, NY 10019-6064 
 Telecopy: (212)
757-3990 
 Attention: Bruce A. Gutenplan, Esq 
  
 (b) if to any other Designated Holder, at its address as it appears on the record books of the Company. 
  
 All such notices, demands and other communications shall be deemed to have
been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five (5) Business Days after being deposited in the mail, postage 
  

 16 

 prepaid, if mailed; and when receipt is mechanically acknowledged, if telecopied. Any party may by notice given in
accordance with this Section 10.4 designate another address or Person for receipt of notices hereunder. 
  
 10.5 Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto as hereinafter provided. The rights of the Designated Holder contained in Articles III, IV, V and VI hereof shall be, with respect to any Registrable Security that is transferred, automatically transferred to
such transferee. All of the obligations of the Company hereunder shall survive any such transfer. Except as provided in Article VIII, no Person other than the parties hereto and their successors and permitted assigns are intended to be a beneficiary
of this Agreement. 
  
 10.6 Amendments and Waivers. Except
as otherwise provided herein, the provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless consented to in writing by the Company and
Designated Holders that hold at least 70% of the Registrable Securities; provided that any such amendment, modification, supplement, waiver or consent to departure that adversely affects a Designated Holder in a manner differently than it affects
the other Designated Holders shall be effective only with the prior written consent of such Designated Holder. 
  
 10.7 Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 10.8 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

  
 10.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. 
  
 10.10 Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid,
illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof. 
  
 10.11 Rules of Construction. Unless the context otherwise requires, references to sections or subsections refer to sections or subsections of this
Agreement. 
  
 10.12 Entire Agreement. This Agreement is
intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject matter contained herein. There are no
restrictions, promises, representations, warranties or undertakings with respect to the subject matter contained herein, other than those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings among the
parties with respect to such subject matter. 
  

 17 

 10.13 Further Assurances. Each of the parties shall, and shall cause their respective Affiliates
to, execute such documents and perform such further acts as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement. 
  

10.14 Other Agreements. Nothing contained in this Agreement shall be deemed to be a waiver of, or release from, any obligations any party hereto
may have under, or any restrictions on the transfer of Registrable Securities or other securities of the Company imposed by, any other agreement including, but not limited to, the Warrants. 
  
 [Remainder of page intentionally left blank] 
  

 18 

 IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Amended and
Restated Registration Rights Agreement on the date first written above. 
  

			
	Cardiac Science, Inc.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	Investors:
	
	Perseus Market Opportunity Fund, L.P.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 c/o Perseus, L.L.C.

	 888 Seventh Avenue, 29th Floor

	 New York, New York 10106

	 Telecopier No.: 212-651-6399

	 Attention: Ray E. Newton, III

	
	Winterset Master Fund, L.P.
		
	 By:
	 	Babson Capital Management LLC, as Investment Manager
		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800

	 Springfield, MA 01115

	 Telecopier No.:

	 Attention:

  

 19 

			
	Mill River Master Fund, L.P.
		
	 By:
	 	 Babson Capital Management LLC, as
 Investment
Manager

		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800

	 Springfield, MA 01115

	 Telecopier No.:

	 Attention:

	
	Massachusetts Mutual Life Insurance Company
		
	 By:
	 	 Babson Capital Management LLC, as
 Investment
Manager

		
	 By:
	 	  

	
	 c/o Babson Capital Management LLC

	 1500 Main Street, Suite 2800
 Springfield, MA 01115

	 Telecopier No.:
 Attention:

	
	

	 Walter Villiger

	
	  

	  

	  

	 Telecopier No.:

  

 20 

 EXHIBIT 4.1 
  

Schedule 10.2 
  
 Registration Rights 
  
 The Company has outstanding registration rights as follows: 
  

	 	1.	In October 2003, the Company granted certain registration rights to Complient Corporation and its shareholders in connection with the acquisition of such corporation’s assets.

  

	 	2.	In September 2003, the Company granted certain registration rights to investors in an equity financing. 

  

	 	3.	In May 2002, the Company granted certain registration rights to investors in a debt financing. 

  

	 	4.	In August/September 2001, the Company granted certain registration rights to investors in an equity financing. 

  

	 	5.	In September 2001, the Company granted certain registration rights to the shareholders of Survivalink Corporation in connection with the acquisition of such corporation.

  

	 	6.	In November 2001, the Company granted certain registration rights to the shareholders of Artema Medical AB in connection with the acquisition of such corporation.

  

	 	7.	In July 2000, the Company granted certain registration rights to the shareholders of Cadent Medical Corporation in connection with the acquisition of such corporation.

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