Document:

Form of Warrant to Purchase Common Stock.

 EXHIBIT 4.3 
  
 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR WITH ANY SECURITIES COMMISSION
UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING THIS WARRANT
OR THE ISSUER RECEIVES AN OPINION OF COUNSEL STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT. 
  
 No. W-         
  

	
	 Warrant to Purchase
                

	 Shares of Common Stock

	 (subject to adjustment)

  
 CARDIAC
SCIENCE, INC. 
  
 WARRANT TO PURCHASE
                 SHARES 
 OF COMMON STOCK 

 
 Cardiac Science, Inc., a Delaware corporation (the “Company”),
hereby certifies that, for good and valuable consideration,                  or its registered transferees, successors or assigns (each, a
“holder”), is the registered holder of warrants (the “Warrants”) to subscribe for and purchase from the Company,             
(                ) shares of validly issued, fully paid and nonassessable Common Stock (as adjusted pursuant to Section 4 hereof, the “Warrant Shares”)
of the Company, at a purchase price per share equal to two dollars and eighty-four cents ($2.84) (such price, as adjusted pursuant to Section 4 hereof, the “Warrant Price”), subject to the provisions and upon the terms and conditions
hereinafter set forth. As used herein, (a) the term “Common Stock” shall mean the Company’s presently authorized Common Stock, par value $.001 per share, and any stock into or for which such Common Stock may hereafter be converted or
exchanged, and (b) the term “Date of Grant” shall mean July 20, 2004. The term “Warrant” shall include any warrant issued upon transfer or partial exercise of this Warrant, unless the context clearly requires otherwise. This
Warrant is being issued pursuant to that certain Purchase Agreement (the “Purchase Agreement”) dated July 20, 2004 by and among the Company and the Purchasers named therein. Capitalized terms used in this letter and not defined herein
shall have the meanings ascribed to them in the Purchase Agreement. 
  
 1. Term. The purchase right represented by this Warrant is exercisable, in whole or in part, at any time and from time to time from the Date of Grant through and including the close of business on May 30, 2009 (the “Expiration
Date”); provided, however, that if the holder has timely surrendered this Warrant for exercise in compliance with Section 2(a), but the statutory waiting period required under HSR (as defined in Section 10(c)(ii)), and any extension thereof,
shall not have expired or been terminated before certain shares of Common Stock may be issued upon the exercise of this Warrant prior to the Expiration Date, then the Expiration Date with 

 respect to the purchase right represented by this Warrant with respect to such shares shall be automatically extended
until the third Business Day following the date of such expiration or termination. 
  
 2. Exercise. 
  
 (a)
Method of Exercise; Payment; Issuance of New Warrant. Subject to Section 1 hereof, the expiration or termination of the statutory waiting period required under HSR (and any extension thereof) in respect of the issuance of certain Warrant
Shares as provided in Section 10(c)(ii) hereof, and the expiration of the exercise delay periods, if applicable, set forth in Section 2(d) hereof, the purchase right represented by this Warrant may be exercised by the holder hereof, in whole or in
part, at any time or from time to time, from and after the Date of Grant by the surrender of this Warrant (with the notice of exercise form attached hereto as Exhibit A duly executed) at the principal office of the Company, and, except as otherwise
provided for herein, by the payment to the Company an amount in cash or by check equal to the then applicable Warrant Price multiplied by the number of Warrant Shares then being purchased. In addition and not in limitation of the foregoing, if such
holder owns Senior Notes of the Company issued pursuant to that certain Senior Note and Warrant Purchase Agreement, dated May 29, 2002, by and among the Company and the purchasers named therein (the “Senior Notes”), in lieu of paying such
Warrant Price in cash or by check, such holder shall have the right (but not the obligation) to pay such Warrant Price by agreeing to cancel and forgive the debt owed by the Company to such holder pursuant to the Senior Notes in the amount equal to
such Warrant Price. (Such debt cancellation and forgiveness shall be applied first, toward accrued and unpaid interest on the Senior Notes (if any), second, to any premium due and owing on the Senior Notes (if any), and third, to the outstanding
principal amount of the Senior Notes.) The person or persons in whose name(s) any certificate(s) representing shares of Common Stock shall be issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of record of, and shall
be treated for all purposes as the record holder(s) of, the shares represented thereby (and such shares shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which this Warrant is exercised if
exercised prior to the close of business on such date; otherwise, the date of record shall be the next Business Day. In the event of any exercise of the rights represented by this Warrant, certificates for the shares of Common Stock so purchased
shall be delivered to the holder hereof as soon as possible and in any event within five (5) Business Days after such exercise and, unless this Warrant has been fully exercised, a new Warrant representing the portion of the Warrant Shares, if any,
with respect to which this Warrant shall not then have been exercised shall also be issued to the holder hereof as soon as possible and in any event within such five (5) Business Day period. 
  
 (b) [Intentionally Omitted] 
  
 (c) Net Issue Exercise. In lieu of the payment of the aggregate
Warrant Price, the holder shall have the right (but not the obligation), to require the Company to convert this Warrant, in whole or in part, into shares of Common Stock as provided for in this Section 2(c). In connection with the foregoing and
without limiting the rights of the holder under the terms of this Warrant, the holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the
principal office of the Company (with the notice of exercise form and notice of such election attached 
  

 2 

 hereto as Exhibit A duly executed) in which event the Company shall issue to the holder a number of Warrant Shares
computed using the following formula: 
  

			
	 X    =
	 	Y(A–B)
	 	 	A

  
 Where: 
  

			
	 X =
	 	the number of shares of Common Stock to be issued to the holder
		
	 Y =
	 	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the number of shares of Common Stock to be issued upon such partial
exercise(at the date of such calculation)
		
	 A =
	 	the Fair Market Value (as defined in Section 4(j) below) of one (1) share of Common Stock
		
	 B =
	 	the Warrant Price

  
 (d) Certain
Limitations on Net Issue Exercise. Notwithstanding anything to the contrary set forth herein, and provided that a Registration Statement (as defined in the Amended and Restated Registration Agreement, dated as of the date hereof, by and among
the Company and the parties named therein) with respect to the offer and sale of all of the Warrant Shares is and remains effective, the right of the holder of this Warrant to elect to pay the Warrant Price pursuant to the terms of Section 2(c)
hereof shall be restricted as follows: 
  
 (i) [Intentionally
Omitted]; 
  
 (ii) if during the period commencing on the Date of
Grant and ending on (and excluding) the first anniversary of the Date of Grant, the holder elects to pay the Warrant Price for all or any portion of the Warrant Shares pursuant to the terms of Section 2(c) hereof, the Company shall have the right to
delay the exercise of such portion of the Warrant (the portion of the Warrant that is exercisable into such Warrant Shares, including the portion of the Warrant that would have been cancelled to pay the Warrant Price pursuant to the terms of Section
2(c) hereof, the “Warrant Portion”) for a period of up to 10 Business Days from the receipt of notice of exercise with respect to the Warrant Portion, but not longer (which period shall be deemed to include the expired portion of the
exercise delay period referenced in Section 2(d)(iii) hereof); provided that, during such 10-Business Day period, the Company uses its reasonable best efforts (at its own cost and expense) to locate a prospective third-party purchaser for the
Warrant Portion. If, prior to the expiration of such 10-Business Day period, (1) the Company is able to locate such third-party purchaser for the Warrant Portion, (2) such third-party purchaser makes a legally binding offer to purchase the Warrant
Portion on terms (including price) satisfactory to the holder, and (3) such third-party purchaser agrees to exercise the Warrant Portion immediately after purchasing it and to pay the exercise price thereon to the Company in cash, then the holder,
at the request of the Company, shall sell the Warrant Portion to such third-party purchaser on such terms; 
  

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 (iii) if during the period commencing on the Date of Grant and ending on (and excluding) the first
anniversary of the Date of Grant, the holder owns any Senior Notes and elects to pay the Warrant Price for all or any portion of the Warrant Shares pursuant to the terms of Section 2(c) hereof, the Company shall have the right to delay the exercise
of the portion of this Warrant covering such Warrant Shares for which the holder is able to pay the Warrant Price by canceling and forgiving the debt owed by the Company to such holder pursuant to the Senior Notes in the amount equal to such Warrant
Price as set forth in Section 2(a) (such portion of this Warrant, the “Tax Opinion Portion”) for a period of up to 10 Business Days from the receipt of notice of exercise with respect to such Tax Opinion Portion from the holder, but not
longer (which period shall be deemed to include the expired portion of the exercise delay period referenced in Section 2(d)(ii) hereof); provided that, during such 10-Business Day period, the Company shall use its reasonable best efforts to obtain,
in good faith, an unqualified opinion (reasonably satisfactory to the holder) addressed to the holder from a nationally recognized tax counsel acceptable to the holder that the holding period (calculated with reference to the original investment
date) of the Warrant Shares received upon the payment of the Warrant Price by canceling and forgiving the debt owed by the Company to such holder pursuant to the Senior Notes in the amount equal to such Warrant Price as set forth in Section 2(a)
will include the period for which such holder held the Senior Notes to be cancelled and the Warrants to be exercised (such opinion, the “Tax Opinion”). If, prior to the expiration of such 10-day period, the Company is able to obtain a Tax
Opinion, the holder shall not have the right to pay the Warrant Price pursuant to the terms of Section 2(c) hereof in respect of such Tax Opinion Portion until the first anniversary of the Date of Grant; and 
  
 (iv) during the period commencing on the Date of Grant and ending on (and
excluding) the first anniversary of the Date of Grant, if the Company is unable obtain the Tax Opinion pursuant to Section 2(d)(iii) above with respect to a Tax Opinion Portion elected to be exercised by the holder (or the Company reasonably
believes that it would be unable to obtain such Tax Opinion), then by written notice to the holder given not more than 3 Business Days following the later of: (x) receipt of notice of exercise from such holder by the Company in respect of such Tax
Opinion Portion or (y) if applicable, the expiration of the exercise delay period in respect of such Tax Opinion Portion pursuant to Section 2(d)(iii) above, the Company shall have the right to require the holder to exercise all or any portion of
such Tax Opinion Portion by electing to pay the Warrant Price pursuant to the methods of exercise set forth in Section 2(a) hereof (and not pursuant to the terms of Section 2(c) hereof ) if, upon the exercise of such portion of the Warrants, the
Company will pay such holder an additional amount (the “Grossed Up Taxes”) in cash which, after reduction for all Taxes payable by such holder thereon, is equal to the difference between the Taxes that would be due from such holders on the
exercise of the Warrants and the immediate sale of the resulting Warrant Shares at their fair market value if taxed as ordinary income and the Taxes that would be due on such exercise and sale if taxed at the applicable capital gains rate. (For
purposes of computing the Grossed Up Taxes, it shall be assumed that the holder is an individual resident of New York City, taxed at the maximum marginal rate of Federal, state, and local income taxation). 
  
 3. Stock Fully Paid; Reservation of Shares. All Warrant Shares that
may be issued upon the exercise of the rights represented by this Warrant will, upon issuance pursuant to the terms and conditions herein, be validly issued, fully paid and nonassessable, and free from all 
  

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 taxes, liens, charges, pre-emptive rights and other encumbrances with respect to the issue thereof. The Company shall pay
all transfer taxes, if any, attributable to the issuance of the Warrant Shares upon the exercise of this Warrant. During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized,
and reserved, and free from preemptive rights, for the purpose of the issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of its Common Stock to provide for the exercise of the rights represented by
this Warrant. 
  
 4. Adjustment of Warrant Price and Number of
Shares. The number and kind of securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows: 
  
 (a) Adjustments for Dividends in Stock. If the Company at any time or
from time to time while this Warrant, or any portion thereof, remains outstanding and unexpired declares any dividend, or authorizes any other distribution, upon any stock of the Company of any class, payable in Additional Shares of Common Stock (as
defined in this Section 4(a)) (except for any distribution specifically provided for in Section 4(b), Section 4(c), or as set forth in Section 4(f)), then, and in each such case, (A) the aggregate number of Warrant Shares for which this Warrant is
exercisable (the “Warrant Share Number”) immediately prior to such event shall be adjusted (and any other appropriate actions shall be taken by the Company) so that the holder shall be entitled to receive upon exercise of this Warrant the
number of shares of Common Stock of the Company that it would have owned or would have been entitled to receive upon or by reason of any of the events described above, had this Warrant been exercised immediately prior to the occurrence of such event
and (B) the Warrant Price payable upon the exercise of this Warrant shall be adjusted pursuant to the following formula: 
  

			
	 X =
	 	 Y(A)

	 	 	B

  
 Where: 
  

			
	 X =
	 	the Warrant Price, as adjusted pursuant to this formula
		
	 Y =
	 	the Warrant Price in effect immediately prior to such adjustment
		
	 A =
	 	the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to such adjustment
		
	 B =
	 	the number of Warrant Shares issuable upon the exercise of this Warrant immediately after such adjustment

  
 An adjustment made
pursuant to this Section 4(a) shall become effective retroactively to a date immediately following the close of business on the record date for the determination of holders of shares of Common Stock entitled to receive such dividend or distribution.
The term “Additional Shares of Common Stock” as used in this Warrant shall mean all shares of Capital Stock issued or issuable by the Company after the date of this Warrant, except for the Warrant Shares. For purposes of the foregoing,
“Capital Stock” means, with respect to any Person, any and all shares, interests, participations, rights in, or other equivalents (however designated and whether voting or non-voting) of such Person’s capital stock and any and all
rights, warrants or options exchangeable for or convertible into such capital stock. 
  

 5 

 (b) Subdivision or Combination of Shares. If the Company at any time or from time to time while
this Warrant, or any portion thereof, remains outstanding and unexpired shall (x) subdivide the outstanding shares of Common Stock into a larger number of shares, (y) combine the outstanding shares of Common Stock into a smaller number of shares or
(z) issue any shares of its Capital Stock in a reclassification of the Common Stock (other than any such event for which an adjustment is made pursuant to another clause of this Section 4), then, and in each such case, (A) the Warrant Share Number
immediately prior to such event shall be adjusted (and any other appropriate actions shall be taken by the Company) so that the holder shall be entitled to receive upon exercise of this Warrant the number of shares of Common Stock of the Company
that it would have owned or would have been entitled to receive upon or by reason of any of the events described above, had this Warrant been exercised immediately prior to the occurrence of such event and (B) the Warrant Price payable upon the
exercise of this Warrant shall be adjusted by multiplying such Warrant Price immediately prior to such adjustment by a fraction, the numerator of which shall be the number of Warrant Shares issuable upon the exercise of this Warrant immediately
prior to such adjustment, and the denominator of which shall be the number of Warrant Shares issuable immediately thereafter. An adjustment made pursuant to this Section 4(b) shall become effective retroactively to the close of business on the day
upon which such corporate action becomes effective. 
  
 (c)
Certain Distributions. If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall declare a dividend or otherwise make a distribution to the holders of its Common Stock (other than
dividends, distributions or issuances referred to in Section 4(a), Section 4(b), Section 4(d), Section 4(e), or Section 4(k)) in the form of: (1) cash or other property; (2) any evidence of indebtedness, any shares of its capital stock or any other
securities or property of any nature whatsoever (including securities of a subsidiary), or (3) any warrants or other rights to subscribe for or purchase any evidences of indebtedness, any shares of its capital stock, or any other securities or
property of any nature whatsoever (including securities of a subsidiary), then the Warrant Price shall be reduced by multiplying the Warrant Price in effect immediately prior to the record date for such event by a fraction (a) the numerator of which
shall be the Fair Market Value per share of Common Stock on such record date less the amount allocated to one share of Common Stock of any such cash so distributed and the Fair Market Value of any evidences of indebtedness, shares of capital stock,
other securities or property, or warrants or other subscriptions or purchase rights so distributed, and (b) the denominator of which shall be such Fair Market Value per share of Common Stock. Such adjustment shall be made successively whenever such
a record date is fixed; and in the event that such distribution is not so made, the Warrant Price shall again be adjusted to be the Warrant Price which would then be in effect if such record date had not been fixed, but such subsequent adjustment
shall not affect the number of Warrant Shares issued upon any exercise of this Warrant prior to the date such subsequent adjustment was made. 
  
 (d) Merger; Sale of Assets; Reclassification. If at any time while this Warrant, or any portion thereof, remains outstanding and unexpired there
shall be (1) a reorganization or reclassification (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), (2) a merger or consolidation of the 
  

 6 

 Company with or into another corporation in which the Company is not the surviving entity, or a reverse triangular merger
in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash, or
otherwise, or (3) a sale or transfer of the Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, reclassification, merger, consolidation, sale or transfer, lawful
provision shall be made so that the holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Warrant Price then in effect, the number of shares of stock
or other securities or property of the successor corporation (or the Company, as applicable) resulting from such reorganization, reclassification, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this
Warrant would have been entitled to receive in such reorganization, reclassification, merger, consolidation, sale or transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer, all
subject to further adjustment as provided in this Section 4. The foregoing provisions of this Section 4(d) shall similarly apply to successive reorganizations, reclassification, mergers, consolidations, sales and transfers and to the stock or
securities of any other corporation that are at the time receivable upon the exercise of this Warrant. If the per-share consideration payable to the holder hereof for shares in connection with any such transaction is in a form other than cash or
marketable securities, then the value of such consideration shall be determined in the manner set forth under Section 4(j). At the time of such event, the successor or acquiring corporation (if other than the Company) shall expressly assume the due
and punctual performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as
determined in good faith by the Board of Directors of the Company, with the consent of the holder in such instances where the rights of the holder are adversely affected in the reasonable opinion of the holder) in order to provide for adjustments of
shares of Common Stock for which this Warrant is exercisable. These adjustments shall be as nearly equivalent as practicable to the adjustments provided in this Section 4. In all events, appropriate adjustment (as determined in good faith by the
Company’s Board of Directors, with the consent of the holder in such instances where the rights of the holder are adversely affected in the reasonable opinion of the holder) shall be made in the application of the provisions of this Warrant
with respect to the rights and interests of the holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable
after that event upon exercise of this Warrant. 
  
 In case any
Additional Shares of Common Stock or evidence of indebtedness, shares of stock or other securities which are at any time, directly or indirectly, convertible into or exchangeable for Additional Shares of Common Stock or any rights or options to
purchase any Additional Shares of Common Stock or convertible securities shall be issued in connection with any merger of another corporation into the Company (with the Company surviving such merger), the amount of consideration therefor shall be
deemed to be the fair market value of such portion of the assets of such merged corporation as the Board of Directors of the Company shall in good faith determine to be attributable to such Additional Shares of Common Stock, convertible securities
or rights or options, as the case may be, and the Warrant Price shall be adjusted in accordance with this Section 4. 
  

 7 

 (e) Dissolution, Liquidation and Wind-Up. In case the Company shall, at any time prior to the
expiration of this Warrant, dissolve, liquidate or wind up its affairs, the holder of this Warrant shall be entitled, upon the exercise of this Warrant, to receive in lieu of the shares of Common Stock of the Company which such holder would have
been entitled to receive, the same kind and amount of assets as would have been issued, distributed or paid to such holder upon any such dissolution, liquidation or winding up with respect to such shares of Common Stock of the Company, had such
holder been the holder of record of the Warrant Shares receivable upon the exercise of this Warrant on the record date for the determination of those persons entitled to receive any such liquidating distribution. After such dissolution, liquidation
or winding up which shall result in any cash distribution in excess of the Warrant Price provided for by this Warrant, the holder of this Warrant may, at such holder’s option, exercise the same without making payment of the Warrant Price, and
in such case the Company shall, upon the distribution to the holder, consider that said Warrant Price has been paid in full to it and in making settlement to the holder, shall deduct from the amount payable to the holder of this Warrant an amount
equal to such Warrant Price. 
  
 (f) Issuances of Additional
Securities. 
  
 (i) Issuances of Common Stock.
If and whenever after the Date of Grant, the Company issues or sells, or in accordance with Sections 4(f)(ii) and (iii) below, is deemed to have issued or sold, any share of Common Stock for a consideration per share less than (x) the Adjusted Fair
Market Value (as defined in Section 4(j) below) of the Common Stock at such time or (y) the Warrant Price in effect immediately prior to such time (the greater of such amounts being referred to herein as the “Adjustment Multiplier”), then
immediately upon such issue or sale or deemed issue or sale, the Warrant Price shall be reduced to the amount computed using the following formula: 
  

			
	 X =
	  	 Y * [(A*B)+C]

	 	  	A*D

  
 Where: 
  

			
	 X =
	 	the Warrant Price, as adjusted pursuant to this formula
		
	 Y =
	 	the Warrant Price in effect immediately prior to such issue or sale
		
	 A =
	 	the Adjustment Multiplier
		
	 B =
	 	the number of shares of Common Stock outstanding on a fully diluted basis immediately prior to such issue or sale
		
	 C =
	 	the consideration, if any, received by the Company upon such issue or sale
		
	 D =
	 	the number of shares of Common Stock outstanding on a fully diluted basis immediately after such issue or sale

  

 8 

 Subject to Section 4(l) hereof, upon each such adjustment of the Warrant Price hereunder, the number of
shares of Common Stock acquirable upon the exercise of this Warrant shall be adjusted to the number of shares determined computed using the following formula: 
  

			
	 X =
	  	 Y(A)

	 	  	B

  
 Where: 
  

			
	 X =
	 	adjusted number of shares of Common Stock acquirable upon the exercise of this Warrant
		
	 Y =
	 	the Warrant Price in effect immediately prior to being adjusted in accordance with the formula set forth in the immediately preceding paragraph
		
	 A =
	 	the number of shares of Common Stock acquirable upon exercise of this Warrant immediately prior to adjustment in accordance with this formula
		
	 B =
	 	the Warrant Price as adjusted in accordance with the formula set forth in the immediately preceding paragraph

  
 Notwithstanding the
foregoing, there shall be no adjustment to the Warrant Price or the number of shares of Common Stock obtainable upon the exercise of this Warrant with respect to the issuance or granting of options to directors, officers or employees of the Company
or the exercise thereof pursuant to the Company’s stock option plan approved by the Board of Directors of the Company, but only to the extent that the aggregate shares of Common Stock covered by such option plan (excluding shares of Common
Stock issuable upon the exercise of options outstanding on the date hereof and disclosed in Section 4.2 of the Purchase Agreement) do not exceed 1,200,000 shares (subject to adjustment to reflect any stock split, stock dividend, reclassification,
recapitalization or other transaction having a similar effect). 
  
 (ii) Issuance of Rights or Options. For purposes of determining the adjusted Warrant Price under Section 4(f)(i) hereof, if the Company in any manner grants or sells any rights, warrants or options to subscribe for or purchase
Convertible Securities (as defined below) or Common Stock (the “Options”), and the price per share for which Common Stock is issuable upon the exercise of such Options (or upon conversion or exchange of any stock or securities (directly or
indirectly) convertible or exercisable into or exchangeable for Common Stock (the “Convertible Securities”) issuable upon exercise of such Options) is less than the greater of (x) the Adjusted Fair Market Value of the Common Stock
determined as of the time of the granting or sale of such Options or (y) the Warrant Price in effect immediately prior to such time, then the total maximum number of shares of Common Stock issuable upon the exercise of such Options (or upon
conversion or exchange of the total maximum amount of such Convertible Securities issuable upon the exercise of such Options) shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of
such Options for such price per share. For purposes of this paragraph, the “price per share for which Common Stock is issuable” shall be determined by dividing (A) the total minimum amount, if any, received or receivable by the Company as
consideration for the granting or sale 
  

 9 

 of such Options, plus the aggregate minimum amount of additional consideration payable to the Company upon exercise of
all such Options, plus in the case of such Options which relate to Convertible Securities, the aggregate minimum amount of additional consideration, if any, payable to the Company upon the issuance or sale of such Convertible Securities and the
conversion or exchange thereof, by (B) the total maximum number of shares of Common Stock issuable at any time upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable at any time upon the
exercise of such Options. No further adjustment of the Warrant Price or the number of shares of Common Stock issuable hereunder shall be made when Convertible Securities are actually issued upon the exercise of such Options or when Common Stock is
actually issued upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 
  
 (iii) Issuance of Convertible Securities. For purposes of determining the adjusted Warrant Price under Section 4(f)(i), if the Company in any
manner issues or sells any Convertible Securities and the price per share for which Common Stock is issuable upon conversion or exchange thereof is less than the greater of (x) the Adjusted Fair Market Value of the Common Stock determined as of the
time of such issue or sale or (y) the Warrant Price in effect immediately prior to such time, then the maximum number of shares of Common Stock issuable upon conversion or exchange of such Convertible Securities shall be deemed to be outstanding and
to have been issued and sold by the Company the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this paragraph, the “price per share for which Common Stock is issuable” shall be
determined by dividing (A) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Company
upon the conversion or exchange thereof, by (B) the total maximum number of shares of Common Stock issuable at any time upon the conversion or exchange of all such Convertible Securities. No further adjustment of the Warrant Price or the number of
shares of Common Stock issuable hereunder shall be made when Common Stock is actually issued upon the conversion or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any
Options for which adjustments of the Warrant Price or the number of shares of Common Stock issuable hereunder had been or are to be made pursuant to other provisions of this Section 4(f), no further adjustment of the Warrant Price or the number of
shares of Common Stock issuable hereunder shall be made by reason of such issue or sale. 
  
 (iv) Treatment of Expired Options and Unexercised Convertible Securities. Upon the expiration of any Option or the termination of any right to convert or exchange any Convertible Security without the
exercise of any such Option or right, any decrease in the Warrant Price or any increase in the number of shares of Common Stock for which this Warrant may be exercised, to the extent in any way affected by or computed using such expired or
terminated Options or Convertible Securities, shall be recomputed to reflect the issuance of only the number of shares of Common Stock actually issued (or deemed issued in accordance with Sections 4(f)(ii) and (iii) above, which have not expired or
terminated) upon the exercise, conversion or exchange of such Options or Convertible Securities. Notwithstanding anything to the contrary set forth in the preceding sentence, no such adjustment to the Warrant Price or the number of shares of Common
Stock for which this Warrant may be exercised shall be made to the extent that such adjustment would put the holder in a worse economic position than he or it would have been in, had such Option or Convertible Security never been issued. 

 

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 (v) Other Matters. If any Common Stock, Option or Convertible Security is issued or sold,
or deemed to have been issued or sold for cash, the consideration received therefor shall be deemed to be the amount received by the Company therefor (net of discounts, commissions and related expenses). In case any Option is issued in connection
with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Option by the parties thereto, the consideration for the Option shall be the Fair
Market Value thereof. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any shares so owned or held shall be considered an issue or
sale of Common Stock. 
  
 (g) Consideration Other than
Cash. In case the Company at any time prior to the expiration of this Warrant shall issue or sell any shares of Common Stock or convertible securities or other common stock equivalents for a consideration other than cash, the amount of the
consideration other than cash payable to the Company shall be deemed to be the fair value (as determined in accordance with Section 4(j) below) of such consideration. Whether or not the consideration so received is cash, the amount thereof shall be
determined after deducting therefrom any expenses incurred or any underwriting commissions or concessions or discounts paid or allowed by the Company in connection therewith. 
  
 (h) Record Date. In case at any time the Company shall fix a record date of the holders of its Common Stock for the
purpose of entitling them (1) to receive a dividend or other distribution payable in Common Stock or convertible securities or other common stock equivalents or rights or options to purchase either thereof, or (2) to subscribe for or purchase Common
Stock or convertible securities or other common stock equivalents or rights or options to purchase either thereof, then such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 
  
 (i) [Intentionally Deleted.] 
  
 (j) Maximum Warrant Price; Fair Market Value. The Warrant Price in effect at any time shall not be increased as a result of any event described in
this Section 4, unless specifically indicated. Fair Market Value as of a particular date shall mean the average of the daily closing prices for the preceding thirty (30) trading days before the day in question. The closing price for each day shall
be the last reported sale price or, in case no such reported sale takes place on such day, the average of the reported closing bid and asked prices, in either case on the principal national securities exchange on which the Common Stock is listed or
admitted to trading or, if not listed or admitted to trading on any national securities exchange, the average of the closing bid and asked prices as reported by the National Association of Securities Dealers Automated Quotation System. If such
quotations are unavailable, or with respect to other appropriate security, property, assets, business or entity, Fair Market Value shall be determined mutually by the Board of Directors and the holder or, if the Board of Directors and the holder

  

 11 

 shall fail to agree, at the Company’s expense, by a firm of independent certified public accountants of recognized
national standing (who have not been employed by the Company within the last five years) acceptable to the holder (an “Appraiser”). Any determination of the Fair Market Value by an Appraiser shall be based on a valuation of the Company as
an entirety without regard to any discount for minority interests or disparate voting rights among classes of capital stock. The Adjusted Fair Market Value per share of a security shall be equal to the Fair Market Value of such security, less 10% of
such Fair Market Value, and less the amount of reasonable and documented out-of-pocket fees and expenses, if any, incurred by the Company as a result of the issuance of the securities being evaluated, divided by the total number of securities so
issued on a fully diluted basis, which amount of reasonable and documented fees and expenses so subtracted shall, for all purposes under this Warrant, be capped at 5% of such security’s Fair Market Value. 
  
 (k) Company to Prevent Dilution. The Company shall not, by amendment
of its organizational documents, by entering into any contract, agreement or understanding with any third party or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the carrying out of all the provisions of this Section 4 with the tenor and purpose of such section. 
  
 (l) Share Adjustment Limit. Notwithstanding anything to the contrary set forth in Section 4(f) hereof, the maximum number of additional shares of
Common Stock acquirable upon the exercise of all warrants issued pursuant to the Purchase Agreement pursuant to the anti-dilution provisions set forth in Section 4(f) therein shall not exceed the Pre-Stockholder Approval Number (as defined in
Section 4 (m)). Accordingly, the adjustment to the number of shares of Common Stock acquirable upon the exercise of all warrants issued pursuant to the Purchase Agreement pursuant to the anti-dilution provisions set forth in Section 4(f) therein
shall be made on a pro rata basis (based on the number of additional shares of Common Stock that would have been acquirable upon the exercise of each such warrant pursuant to the anti-dilution provisions set forth in Section 4(f) therein had the
Adjustment Limit (as defined below) not been reached) among all such warrants entitled to such adjustment (at the time of such entitlement) until the Adjustment Limit is reached. Once a number of shares of Common Stock equal to the Pre-Stockholder
Approval Number is issued pursuant to the anti-dilution provisions set forth in Section 4(f) of the warrants issued pursuant to the Purchase Agreement upon the exercise thereof, no additional shares of Common Stock may be issued upon the exercise of
any such warrant issued pursuant to the Purchase Agreement pursuant to the anti-dilution provisions set forth in Section 4(f) therein (such limitation, the “Adjustment Limit”). Any share of Common Stock issued pursuant to any warrant
issued pursuant to the Purchase Agreement in excess of the Adjustment Limit shall automatically be deemed cancelled. The Adjustment Limit shall act merely to limit the number of additional shares of Common Stock issuable upon the exercise of the
Warrants after giving effect to the provisions set forth in Section 4(f) therein, and not to restrict any adjustments to the Warrant Price pursuant to this Warrant, and shall not affect any matter other than the exercise of the Warrants into shares
of Common Stock. In addition, once the Adjustment Limit has been reached, upon (and in addition) to each adjustment of the Warrant Price pursuant to Section 4(f) hereof (the Warrant Price as so adjusted, the “Initially Adjusted Price”),
the Warrant Price per share of Common 
  

 12 

 Stock shall be further adjusted to the amount computed using the following formula (the Warrant Price as
so further adjusted, the “Further Adjusted Price”): 
  

			
	 X =
	 	 Y-(A)

	 	 	B

  
 Where: 
  

			
	 X =
	 	the Further Adjusted Price
		
	 Y =
	 	the Initially Adjusted Price
		
	 A =
	 	the Adjusted Fair Market Value (as of the date of issue or sale, or deemed issue or sale, of securities by the Company that triggered the anti-dilution adjustments pursuant to Section 4(f)
hereof) of the additional number of shares of Common Stock that would have been issuable upon the exercise of this Warrant pursuant to Section 4(f), but became non-issuable pursuant to this Section 4(l) because the Adjustment Limit has been
reached
		
	 B =
	 	the total number of Shares of Common Stock acquirable upon the exercise of this Warrant on an “as fully exercised basis” at the time of such adjustment (giving effect to the
Adjustment Limit)

  
 (m) Pre-Stockholder
Approval Number. For purposes of this Warrant, “Pre-Stockholder Approval Number” shall equal to 4,000,500 shares of Common Stock (subject to adjustment to reflect stock splits, stock dividends, stock combinations, recapitalizations and
like occurrences). 
  
 (n) Minimum Warrant Price.
Notwithstanding anything to the contrary set forth in Section 4(f) hereof, in accordance with the rules and regulations of The Nasdaq Stock Market, Inc. (“NASDAQ”), the minimum Warrant Price in effect at any time pursuant to the
anti-dilution provisions set forth in Section 4(f) hereof shall not be less than $2.37. The foregoing shall act merely to limit adjustments to the Warrant Price, and shall not limit the number of additional shares of Common Stock issuable upon the
exercise of the Warrants after giving effect to the provisions set forth in Section 4(f) hereof or any matter with respect to the exercise of the Warrants into shares of Common Stock. 
  
 5. Notice of Adjustments. Whenever the Warrant Price or the number of Warrant Shares purchasable hereunder shall be
adjusted pursuant to Section 4 hereof, the Company shall make a certificate signed by its chief financial officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated, and the Warrant Price and the number of Warrant Shares purchasable hereunder after giving effect to such adjustment, which shall be mailed, by first class mail, postage prepaid to the holder of this Warrant. 
  
 6. Fractional Shares. No fractional shares of Common Stock will be
issued in connection with any exercise hereunder, but in lieu of such fractional shares the Company shall make a cash payment therefor based on the Fair Market Value of a share of Common Stock on the date of exercise. 
  

 13 

 7. Transfer of Warrant. 
  
 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing the names
and addresses of the holder or holders of the Warrants. Any holder of this Warrant, or any portion thereof may change his or her address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the holder may be delivered or given by mail to such holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant
Register of the Company, the Company may treat the holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the contrary. 
  
 (b) Warrant Agent. The Company may, by written notice to the holder,
appoint an agent for the purpose of maintaining the Warrant Register referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or
any or all of the foregoing. Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
  
 (c) Transferability and Nonnegotiability of Warrant. This Warrant may not be transferred or assigned in whole or in
part without compliance with all applicable federal and state securities laws by the transferor and the transferee. Subject to the provisions of this Warrant with respect to compliance with the Securities Act of 1933, as amended (the
“Securities Act”), title to this Warrant may be transferred by endorsement (by the holder executing the Assignment Form attached hereto as Exhibit B) and delivery in the same manner as a negotiable instrument transferable by endorsement
and delivery. 
  
 (d) Exchange of Warrant Upon a Transfer.
On surrender of this Warrant for exchange, properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Securities Act and with the limitations on assignments and transfers contained in
this Section 7, the Company at its expense shall issue to or on the order of the holder a new warrant or warrants of like tenor, in the name of the holder or as the holder may direct, for the number of shares issuable upon exercise hereof.

  
 (e) Compliance with Securities Laws. 
  

	 	(1)	The holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Common Stock to be issued upon exercise hereof or conversion thereof are being
acquired solely for the holder’s own account and not as a nominee for any other party, and for investment, and that the holder will not offer, sell or otherwise dispose of this Warrant or any shares of Common Stock to be issued upon exercise
hereof or conversion thereof except under circumstances that will not result in a violation of the Securities Act or any state securities laws. 

  

 14 

	 	(2)	The Warrant Shares and any other securities issued upon exercise hereof or conversion thereof shall be stamped or imprinted with a legend in substantially the following form (in
addition to any legend required by state securities laws): 

  
 “THE SECURITIES EVIDENCED 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 OR
BLUE SKY LAWS AND HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING SUCH SECURITIES OR THE ISSUER RECEIVES AN OPINION OF COUNSEL STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE ACT.” 
  
 8. Replacement of Warrants
or Stock Certificates. The Company covenants to the holder hereof that, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant or any stock certificate and, in the case of
any loss, theft or destruction, upon receipt of an executed lost securities bond or indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant or stock certificate, the
Company will make and deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate. 
  
 9. Rights as Stockholders; Information. No holder of this Warrant, as such, shall be entitled to vote or receive
dividends or be deemed the holder of Common Stock or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the holder of this
Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of the directors or upon any matter submitted to stockholders at any meeting thereof, or to receive notice of meetings, or to receive dividends
or subscription rights or otherwise, until this Warrant shall have been exercised and the Warrant Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. The foregoing notwithstanding, the Company will transmit
to the holder of this Warrant such information, documents and reports as are generally distributed to the holders of any class or series of the securities of the Company concurrently with the distribution thereof to the stockholders. 
  

 15 

 (a) Registration. Holders of the Warrant Shares shall have the registration rights set forth in
the Registration Agreement, including, without limitation, the right to require the Company into maintain the effectiveness of the Shelf Registration Statement covering the Warrant Shares until such time as all the Warrant Shares have been sold.

  
 10. Special Agreements of the Company. 
  
 (a) Reservation of Shares. The Company covenants and agrees that all
Warrant Shares will, upon issuance, be validly issued, fully paid and non-assessable and free from all preemptive rights of any shareholder, and from all taxes, liens and charges with respect to the issue thereof. The Company further covenants and
agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved, a sufficient number of shares of Common Stock to provide for the exercise of the rights
represented by this Warrant. The Company hereby covenants and agrees to take all such action as may be necessary to assure that the par value per share of the Common Stock is at all times equal to or less than the Warrant Price. 
  
 (b) Avoidance of Certain Actions. The Company will not, by amendment
of its articles of incorporation, certificate of incorporation or any other charter document through any reorganization, transfer of assets, consolidation, merger, issue or sale of securities or otherwise, avoid or take any action which would have
the effect of avoiding the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in carrying out all of the provisions of this Warrant and in taking all of such
action as may be necessary or appropriate in order to protect the rights of the holders against dilution or other impairment of their rights hereunder. 
  
 (c) Securing Governmental Approvals. 
  
 (i) If any shares of Common Stock required to be reserved for the purposes of exercise of this Warrant require registration with or approval of any
governmental authority under any federal law (other than the Securities Act) or under any state law before such shares may be issued upon exercise of this Warrant, the Company will, at its expense, as expeditiously as possible, cause such shares to
be duly registered or approved, as the case may be. 
  
 (ii) If
approvals of, or filings or registrations with, the Federal Trade Commission and Department of Justice pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”) are required under applicable law before
certain shares of Common Stock may be issued upon exercise of this Warrant, and the holder desires to exercise this Warrant for such shares, then, the Company shall: (x) within 10 Business Days of receipt of notice of exercise for such shares from
such holder, prepare and make all filings required to be made by the Company pursuant to the notification and reporting obligations of HSR and (y) use its best efforts to as promptly as possible take, or cause to be taken, and cooperate with such
holder to take, all other actions and do, or cause to be done, all things 
  

 16 

 necessary, proper or appropriate under applicable laws and regulations to consummate and make effective the exercise of
this Warrant for such shares. The Company shall pay the filing fees associated with the filings under HSR. 
  
 (d) Listing on Securities Exchanges; Registration. If, and so long as, any class of the Company’s Common Stock shall be listed on any national
securities exchange (as defined in the Exchange Act) or NASDAQ, the Company will, at its expense, obtain and maintain the approval for listing upon official notice of issuance of all Warrant Shares and maintain the listing of Warrant Shares after
their issuance; and the Company will so list on such national securities exchange or NASDAQ, will register under the Exchange Act (or any similar statute then in effect), and will maintain such listing of, any other securities that at any time are
issuable upon exercise of this Warrant if and at the time any securities of the same class shall be listed on such national securities exchange or NASDAQ by the Company. 
  
 (e) Compliance with Law. The Company shall comply with all applicable laws, rules and regulations of the United
States and of all states, municipalities and agencies and of any other jurisdiction applicable to the Company and shall do all things necessary to preserve, renew and keep in full force and effect and in good standing its corporate existence and
authority necessary to continue its business. 
  
 (f) Notices
of Stock Dividends, Subscriptions, Reclassifications, Consolidations, Mergers, etc. If at any time: (1) the Company shall declare a cash dividend (or an increase in the then existing dividend rate), or declare a dividend on Common Stock payable
otherwise than in cash out of its net earnings after taxes for the prior fiscal year; or (2) the Company shall authorize the granting to the holders of Common Stock of rights to subscribe for or purchase any shares of capital stock of any class or
of any other rights; or (3) there shall be any capital reorganization, or reclassification, or redemption of the capital stock of the Company, or consolidation or merger of the Company with, or sale of all or substantially all of its assets to,
another corporation or firm; or (4) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company, then the Company shall give to the holders at the addresses of such holders as shown on the books of the Company, at
least twenty (20) days prior to the applicable record date hereinafter specified, a written notice summarizing such action or event and stating the record date for any such dividend or rights (or, if a record date is not to be selected, the date as
of which the holders of Common Stock of record entitled to such dividend or rights are to be determined), the date on which any such reorganization, reclassification, consolidation, merger, sale of assets, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected the holders of Common Stock of record shall be entitled to effect any exchange of their shares of Common Stock for cash (or cash equivalent), securities or other property
deliverable upon any such reorganization, reclassification, consolidation, merger, sale of assets, dissolution, liquidation or winding up. 
  
 11. Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought. 
  

 17 

 12. Notices. Unless otherwise specifically provided herein, all communications under this Warrant
shall be in writing and shall be deemed to have been duly given if given in accordance with Section 11 of the Purchase Agreement. 
  
 13. Governing Law. It is the intention of the parties that the internal substantive laws, and not the laws of conflicts, of Delaware should govern
the enforceability and validity of this Warrant, the construction of its terms and the interpretation of the rights and duties of the parties. 
  
 14. Acceptance. Receipt of this Warrant by the holder hereof shall constitute acceptance of and agreement to the foregoing terms and conditions.

  
 [Signature page follows.] 
  

 18 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed on its behalf by one of its
officers thereunto duly authorized. 
  

			
	 CARDIAC SCIENCE, INC.
  

	 By:
	 	  

	 Name:
	 	 Roderick de Greef

	 Title:
	 	 Executive Vice President
 Chief Financial Officer and Secretary

	 Address:
	 	         1900 Main Street, Suite 700
         Irvine, California 92614
         U.S.A.

  
 Dated: as of July 20,
2004 
  

 19 

 EXHIBIT A 
 NOTICE OF EXERCISE 
  
 To: CARDIAC
SCIENCE, INC. 
  
 Capitalized terms used in this Notice of
Exercise and not otherwise defined herein shall have the meanings ascribed to them in the attached Warrant (“Warrant”). 
  
 1. The undersigned hereby: 
  

	 	•	Elects to exercise this Warrant to purchase                      shares of
Common Stock pursuant to the terms of Section 2(a) of the attached Warrant, and tenders herewith payment of the Warrant Price of such shares in full. 

  

	 	•	Elects to exercise this Warrant to purchase                      shares of
Common Stock through the cancellation of indebtedness owed by the Company to the undersigned pursuant to the Senior Notes in the amount equal to the Warrant Price of such shares (such cancellation to be applied as set forth in paragraph 4 hereto) in
accordance with the terms of Section 2(a) of the attached Warrant, and executes herewith the agreements set forth in paragraph 4 hereto. 

  

	 	•	Elects to exercise this Warrant to purchase                      shares of
Common Stock pursuant to the terms of Section 2(c) of the attached Warrant. 

  
 2. Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are specified
below: 
  

			
	
 (Name)
	  	
  

	 	  	 (Address)

 3. Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of the
undersigned or in such other name as is specified below: 
  

									
	 	 	 	 	 	 	  

	 	 	 	 	 	 	By: (Warrantholder)	 	  

	Date:	 	  

	 	 	 	Name: (Print)	 	  

	 	 	 	 	 	 	Its:	 	  

  
 4. The undersigned
hereby forgives and cancels indebtedness owed by the Company to the undersigned in the amount of $                     pursuant to the Senior
Notes held by the undersigned, applying such amount first, toward accrued and unpaid interest on such Senior Notes (if any), second, to any premium due and owing on such Senior Notes (if any) and third, to the outstanding principal amount of such
Senior Notes. 
  

									
	 	 	 	 	 	 	  

	 	 	 	 	 	 	By: (Warrantholder)	 	  

	Date:	 	  

	 	 	 	Name: (Print)	 	  

	 	 	 	 	 	 	Its:	 	  

 EXHIBIT B 
 FORM OF ASSIGNMENT 
  
 FOR VALUE
RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with respect to the number of shares of Common Stock set
forth below: 
  

					
	 Name of Assignee

	 	 Address

	 	 No. of Shares

  
  
 and does hereby irrevocably constitute and appoint
                     Attorney to make such transfer on the books of Cardiac Science, Inc., maintained for the purpose, with full power of
substitution in the premises. 
  
 The undersigned also represents
that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of stock to be issued upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose
of this Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws.

  

							
	Dated:	 	  

	 	 	  	  

 Signature of
Holder<PAGE>

                                                                     EXHIBIT 4.4

                                                               EXECUTION VERSION

                           NEW ASAT (FINANCE) LIMITED

                           9.25% Senior Notes due 2011

                          REGISTRATION RIGHTS AGREEMENT

                                                                January 26, 2004

Citigroup Global Markets Limited
As Representative of the Initial Purchasers
Citigroup Centre, Canada Square
Canry Wharf, London E14 51B
United Kingdom

Ladies and Gentlemen:

New ASAT (Finance) Limited, an exempt company with limited liability under the
Companies Law (2003 Revision) of the Cayman Islands (the "Issuer"), proposes to
issue and sell to certain purchasers (the "Initial Purchasers"), for whom you
(the "Representatives") are acting as representatives, its U.S.$150 million
principal amount of 9.25% Senior Notes Due 2011 (the "Securities"), upon the
terms set forth in the Purchase Agreement among the Issuer, ASAT Holdings
Limited, an exempt company with limited liability under the Companies Law (2003
Revision) of the Cayman Islands ("Holdings"), certain of Holdings' direct and
indirect subsidiaries set forth therein and the Representatives, dated as of
January 16, 2004 (the "Purchase Agreement") relating to the initial placement
(the "Initial Placement") of the Securities. Pursuant to the Indenture and
subject to the limitations set forth therein, each of Holdings' current and
future direct and indirect subsidiaries shall agree to guarantee the securities
(Holdings and each such direct or indirect subsidiary issuing a guarantee, the
"Guarantors.") The Issuer and the Guarantors are referred to herein collectively
as the "Obligors." To the extent there are no additional Initial Purchasers
other than you, the terms Representatives and Initial Purchasers shall mean
either the singular or plural as the context requires. To induce the Initial
Purchasers to enter into the Purchase Agreement and to satisfy a condition to
your obligations thereunder, the Obligors agree with you for your benefit and
the benefit of the holders from time to time of the Securities (including the
Initial Purchasers) (each a "Holder" and, collectively, the "Holders"), as
follows:

          1.   Definitions. Capitalized terms used herein without definition
shall have their respective meanings set forth in the Purchase Agreement. As
used in this Agreement, the following capitalized defined terms shall have the
following meanings:

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

<PAGE>

          "Affiliate" shall have the meaning specified in Rule 405 under the Act
and the terms "controlling" and "controlled" shall have meanings correlative
thereto.

          "Broker-Dealer" shall mean any broker or dealer registered as such
with the Commission under the Exchange Act.

          "Business Day" shall mean any day other than a Saturday, a Sunday or a
legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in New York City or Hong Kong.

          "Closing Date" shall mean the date hereof.

          "Commission" shall mean the United States Securities and Exchange
Commission.

          "Deferral Period" shall have the meaning indicated in Section 4(k)(ii)
hereof.

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

          "Exchange Offer Registration Period" shall mean the 270-day period
following the consummation of the Registered Exchange Offer, exclusive of any
period during which any stop order shall be in effect suspending the
effectiveness of the Exchange Offer Registration Statement.

          "Exchange Offer Registration Statement" shall mean a registration
statement of the Obligors on an appropriate form under the Act with respect to
the Registered Exchange Offer, all amendments and supplements to such
registration statement, including post-effective amendments thereto, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          "Exchanging Dealer" shall mean any Holder (which may include any
Initial Purchaser) that is a Broker-Dealer and elects to exchange for New
Securities any Securities that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Obligor or any Affiliate of any Obligor) for New Securities.

          "Final Memorandum" shall mean the offering memorandum, dated January
16, 2004 relating to the Securities, including any and all exhibits thereto and
any information incorporated by reference therein as of such date.

          "Holder" shall have the meaning set forth in the preamble hereto.

          "Indenture" shall mean the Indenture relating to the Securities, dated
as of the date hereof, among the Issuer, the Guarantors and The Bank of New
York, as trustee, as the same may be amended from time to time in accordance
with the terms thereof.

          "Initial Placement" shall have the meaning set forth in the preamble
hereto.

                                        2

<PAGE>

          "Initial Purchaser" shall have the meaning set forth in the preamble
hereto.

          "Losses" shall have the meaning set forth in Section 6(d) hereof.

          "Majority Holders" shall mean, on any date, Holders of a majority of
the aggregate principal amount of Transfer Restricted Notes registered under a
Registration Statement.

          "Managing Underwriters" shall mean the investment banker or investment
bankers and manager or managers that administer an underwritten offering, if
any, under a Registration Statement.

          "NASD Rules" shall mean the Conduct Rules and the By-Laws of the
National Association of Securities Dealers, Inc.

          "New Securities" shall mean debt securities of the Issuer identical in
all material respects to the Securities (except that the transfer restrictions
shall be modified or eliminated, as appropriate and provisions regarding the
payment of Registration Default Damages by the Obligors shall be eliminated) to
be issued under the New Securities Indenture.

          "New Securities Indenture" shall mean an indenture among the Issuer,
the Guarantors and the New Securities Trustee, identical in all material
respects to the Indenture (except that the transfer restrictions shall be
modified or eliminated, as appropriate and provisions regarding the payment of
Registration Default Damages by the Obligors shall be eliminated), which may be
the Indenture if in the terms thereof appropriate provision is made for the New
Securities.

          "New Securities Trustee" shall mean a bank or trust company reasonably
satisfactory to the Initial Purchasers, as trustee with respect to the New
Securities under the New Securities Indenture.

          "Prospectus" shall mean the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or the New Securities covered by such
Registration Statement, and all amendments and supplements thereto, including
any and all exhibits thereto and any information incorporated by reference
therein.

          "Purchase Agreement" shall have the meaning set forth in the preamble
hereto.

          "Registered Exchange Offer" shall mean the proposed offer of the
Obligors to issue and deliver to the Holders of the Transfer Restricted Notes
who are not prohibited by any law or policy of the Commission from participating
in such offer, in exchange for the Transfer Restricted Notes, a like aggregate
principal amount of the New Securities.

          "Registration Default Damages" shall have the meaning set forth in
Section 8 hereof.

                                        3

<PAGE>

          "Registration Statement" shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or
the New Securities pursuant to the provisions of this Agreement, any amendments
and supplements to such registration statement, including post-effective
amendments (in each case including the Prospectus contained therein), all
exhibits thereto and all material incorporated by reference therein.

          "Securities" shall have the meaning set forth in the preamble hereto.

          "Shelf Registration" shall mean a registration effected pursuant to
Section 3 hereof.

          "Shelf Registration Period" has the meaning set forth in Section 3(b)
hereof.

          "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Obligors pursuant to the provisions of Section 3 hereof which
covers some or all of the Transfer Restricted Notes, on an appropriate form
under Rule 415 under the Act, or any similar rule that may be adopted by the
Commission, amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

          "Transfer Restricted Note" means each Security and each New Security,
in each case upon the original issuance thereof and at all times subsequent
thereto until the earliest to occur of (A) the date on which such Security has
been exchanged by a person other than a Broker-Dealer for a New Security (other
than with respect to any Holder (other than an Initial Purchaser) that notifies
Holdings in writing that it may not resell the New Security to be acquired by it
in the Registered Exchange Offer to the public without delivering a prospectus
and the prospectus contained in the Exchange Offer Registration Statement cannot
be used for such resale by such Holder) pursuant to the Registered Exchange
Offer, (B) with respect to New Securities received by Broker- Dealers in the
Registered Exchange Offer the date on which such New Security has been sold by
such Broker-Dealer by means of the prospectus contained in the Exchange Offer
Registration Statement, (C) a Shelf Registration Statement covering such
Security or New Security, as the case may be, has been declared effective by the
Commission and such Security or New Security, as the case may be, has been
disposed of in accordance with and pursuant to such effective Shelf Registration
Statement, (D) such Security or New Security, as the case may be, is sold
pursuant to Rule 144 under circumstances in which the legend borne by such
Security or New Security relating to restrictions on transferability thereof,
under the Act or otherwise, is and is permitted to be removed by the Obligors
pursuant to the Indenture; or (E) the date on which such Security or New
Security, as the case may be, is eligible for distribution to the public without
volume or manner of sale restrictions pursuant to Rule 144(k).

          "Trustee" shall mean the trustee with respect to the Securities under
the Indenture.

          "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Commission promulgated thereunder.

          "underwriter" shall mean any underwriter of Securities in connection
with an offering thereof under a Shelf Registration Statement.

                                        4

<PAGE>

          2.   Registered Exchange Offer. (a) The Obligors shall prepare and,
not later than 90 days following the Closing Date, shall file with the
Commission the Exchange Offer Registration Statement with respect to the
Registered Exchange Offer. The Obligors shall use their respective reasonable
efforts to cause the Exchange Offer Registration Statement to become effective
under the Act within 180 days of the Closing Date.

          (b)  Upon the effectiveness of the Exchange Offer Registration
Statement, the Obligors shall promptly commence the Registered Exchange Offer.

          (c)  In connection with the Registered Exchange Offer, the Obligors
shall:

               (i)   after effectiveness of the Exchange Offer Registration
          Statement, promptly mail to each Holder a copy of the final Prospectus
          forming part of the Exchange Offer Registration Statement, together
          with an appropriate letter of transmittal and related documents;

               (ii)  keep the Registered Exchange Offer open for not less than
          20 Business Days after the date notice thereof is mailed to the
          Holders (or longer if required by applicable law);

               (iii) use their respective reasonable efforts to keep the
          Exchange Offer Registration Statement continuously effective under the
          Act, supplemented and amended as required, under the Act to ensure
          that it is available for sales of New Securities by Exchanging Dealers
          during the Exchange Offer Registration Period;

               (iv)  utilize the services of a depositary for the Registered
          Exchange Offer with an address in the Borough of Manhattan in New York
          City, which may be the Trustee, the New Securities Trustee or an
          Affiliate of either of them;

               (v)   permit Holders to withdraw tendered Securities at any time
          prior to the close of business, New York time, on the last Business
          Day on which the Registered Exchange Offer is open;

               (vi)  prior to effectiveness of the Exchange Offer Registration
          Statement, provide a supplemental letter to the Commission
          substantially to the following effect: (A) stating that the Obligors
          are conducting the Registered Exchange Offer in reliance on the
          position of the Commission in Exxon Capital Holdings Corporation (pub.
          avail. May 13, 1988), Morgan Stanley and Co., Inc. (pub. avail. June
          5, 1991) and other similar no-action letters; and (B) including a
          representation that none of the Obligors has entered into any
          arrangement or understanding with any person to distribute the New
          Securities to be received in the Registered Exchange Offer and that,
          to the best of the Obligors' information and belief, each Holder
          participating in the Registered Exchange Offer is acquiring the New
          Securities in the ordinary course of business and has no arrangement
          or understanding with any person to participate in the distribution of
          the New Securities; and

               (vii) comply in all respects with all applicable laws.

                                        5

<PAGE>

          (d)  As soon as practicable after the close of the Registered Exchange
Offer, the Obligors shall:

               (i)   accept for exchange all Securities validly tendered and not
          validly withdrawn pursuant to the Registered Exchange Offer;

               (ii)  deliver to the Trustee for cancellation in accordance with
          Section 4(s) all Securities so accepted for exchange; and

               (iii) cause the New Securities Trustee promptly to authenticate
          and deliver to each Holder of Securities a principal amount of New
          Securities equal to the principal amount of the Securities of such
          Holder so accepted for exchange.

          (e)  Each Holder hereby acknowledges and agrees that any Broker-Dealer
and any such Holder using the Registered Exchange Offer to participate in a
distribution of the New Securities (x) could not under Commission policy as in
effect on the date of this Agreement rely on the position of the Commission in
Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley
and Co., Inc. (pub. avail. June 5, 1991), as interpreted in the Commission's
letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters;
and (y) must comply with the registration and prospectus delivery requirements
of the Act in connection with any secondary resale transaction, which must be
covered by an effective registration statement containing the selling security
holder information required by Item 507 or 508, as applicable, of Regulation S-K
under the Act if the resales are of New Securities obtained by such Holder in
exchange for Securities acquired by such Holder directly from the Obligors or
any of their Affiliates. Accordingly, each Holder participating in the
Registered Exchange Offer shall be required to represent in writing (which may
be contained in the applicable letter of transmittal for the Registered Exchange
Offer) to the Obligors that, at the time of the consummation of the Registered
Exchange Offer:

               (i)   any New Securities received by such Holder will be acquired
          in the ordinary course of its business;

               (ii)  such Holder will have no arrangement or understanding with
          any person to participate in the distribution of the Securities or the
          New Securities within the meaning of the Act; and

               (iii) such Holder is not an Affiliate of any Obligor or if it is
          an Affiliate, such Holder will comply with the registration and
          prospectus delivery requirements of the Securities Act to the extent
          applicable;

               (iv)  if the Holder is not a Broker-Dealer, such Holder is not
          engaged in, and does not intend to engage in, the distribution of the
          New Securities; and

               (v)   if the Holder is a Broker-Dealer that it will receive New
          Securities for its own account in exchange for the Securities that
          were acquired as a result of market-making activities or other trading
          activities and that it will be required to acknowledge that it will
          deliver a prospectus in connection with any resale of such New
          Securities.

                                        6

<PAGE>

          (f)  If any Initial Purchaser determines that it is not eligible to
participate in the Registered Exchange Offer with respect to the exchange of
Securities constituting any portion of an unsold allotment, at the request of
such Initial Purchaser, the Obligors shall issue and deliver to such Initial
Purchaser or the person purchasing New Securities registered under a Shelf
Registration Statement as contemplated by Section 3 hereof from such Initial
Purchaser, in exchange for such Securities, a like principal amount of New
Securities, provided that such exchange is permitted by applicable law and the
policies of The Depository Trust Company. The Obligors shall use their
respective reasonable efforts to cause the CUSIP Service Bureau to issue the
same CUSIP number for such New Securities as for New Securities issued pursuant
to the Registered Exchange Offer.

          3.   Shelf Registration. (a) If (i) due to any change in applicable
interpretations thereof by the Commission's staff, the Obligors determine upon
advice of its outside counsel that they are not permitted to effect the
Registered Exchange Offer as contemplated by Section 2 hereof; or (ii) for any
other reason the Exchange Offer Registration Statement is not declared effective
within 180 days after the Closing Date or the Registered Exchange Offer is not
consummated within 215 days after the Closing Date; (iii) any Initial Purchaser
so requests with respect to Securities that are not eligible to be exchanged for
New Securities in the Registered Exchange Offer and that are held by it
following consummation of the Registered Exchange Offer; or (iv) any Holder of
Securities (other than an Initial Purchaser) notifies Holdings in writing that
(a) it is not eligible to participate in the Registered Exchange Offer or (b) it
may not resell the New Securities to be acquired by it in the Registered
Exchange Offer to the public without delivery of a prospectus and the prospectus
contained in the Exchange Offer Registration Statement could be used for such
resales by such Holder, the Obligors shall effect a Shelf Registration Statement
in accordance with subsection (b) below.

          (b)  (i)   The Obligors shall as promptly as practicable (but in no
event more than 45 days after such filing obligation arises), file with the
Commission and shall use their respective reasonable efforts to cause to be
declared effective under the Act within 60 days after filing the Shelf
Registration Statement, a Shelf Registration Statement relating to the offer and
sale of Transfer Restricted Notes by the Holders thereof from time to time in
accordance with the methods of distribution elected by such Holders and set
forth in such Shelf Registration Statement; provided, however, that no Holder
(other than an Initial Purchaser) shall be entitled to have the Transfer
Restricted Note held by it covered by such Shelf Registration Statement unless
such Holder agrees in writing to be bound by all of the provisions of this
Agreement applicable to such Holder; and provided, further, that with respect to
New Securities received by an Initial Purchaser in exchange for Securities
constituting any portion of an unsold allotment, the Obligors may, if permitted
by current interpretations by the Commission's staff, file a post-effective
amendment to the Exchange Offer Registration Statement containing the
information required by Item 507 or 508 of Regulation S-K, as applicable, in
satisfaction of its obligations under this subsection with respect thereto, and
any such Exchange Offer Registration Statement, as so amended, shall be referred
to herein as, and governed by the provisions herein applicable to, a Shelf
Registration Statement.

                                        7

<PAGE>

               (ii)  The Obligors shall use their respective reasonable efforts
          to keep the Shelf Registration Statement continuously effective,
          supplemented and amended as required by the Act, in order to permit
          the Prospectus forming part thereof to be usable by Holders for a
          period (the "Shelf Registration Period") from the date the Shelf
          Registration Statement is declared effective by the Commission until
          the earlier of (A) two years (or such shorter period as may be
          established by an amendment to the two-year period set forth in Rule
          144(k) under the Act) following the Closing Date and (B) the date
          immediately following the date all Transfer Restricted Notes covered
          by the Shelf Registration Statement cease to be Transfer Restricted
          Notes. The Obligors shall be deemed not to have used their reasonable
          efforts to keep the Shelf Registration Statement effective during the
          Shelf Registration Period if any Obligor voluntarily takes any action
          that would result in Holders of Transfer Restricted Notes, covered
          thereby not being able to offer and sell such Transfer Restricted
          Notes, at any time during the Shelf Registration Period, unless such
          action is (x) required by applicable law or the Commission, (y)
          otherwise undertaken by the Obligors in good faith and for valid
          business reasons (not including avoidance of the Obligors' obligations
          hereunder), including, without limitation, the acquisition or
          divestiture of assets, and (z) permitted pursuant to Section 4(k)(ii)
          hereof.

               (iii) The Obligors shall cause the Shelf Registration Statement
          and the related Prospectus and any amendment or supplement thereto, as
          of the effective date of the Shelf Registration Statement or such
          amendment or supplement, (A) to comply in all material respects with
          the applicable requirements of the Act; and (B) not to contain any
          untrue statement of a material fact or omit to state a material fact
          required to be stated therein or necessary in order to make the
          statements therein (in the case of the Prospectus, in the light of the
          circumstances under which they were made) not misleading.

          4.   Additional Registration Procedures. In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply.

          (a)  The Obligors shall:

               (i)   furnish to each of the Representatives and to counsel for
          the Holders, not less than three Business Days prior to the filing
          thereof with the Commission, a copy of any draft Exchange Offer
          Registration Statement and any draft Shelf Registration Statement, and
          each amendment thereof and each amendment or supplement, if any, to
          the Prospectus included therein (including all documents incorporated
          by reference therein after the initial filing) and shall use their
          respective reasonable efforts to reflect in each such document, when
          so filed with the Commission, such comments as the Representatives
          reasonably propose;

               (ii)  include the information set forth in Annex A hereto on the
          facing page of the Exchange Offer Registration Statement or on the
          outside back cover page, in Annex B hereto in the forepart of the
          Exchange Offer Registration Statement in a section setting forth
          details of the Exchange Offer, in Annex C hereto in the underwriting
          or plan of distribution section of the Prospectus contained in the
          Exchange Offer Registration Statement, and in Annex D hereto in the
          letter of transmittal delivered pursuant to the Registered Exchange
          Offer to the extent permitted under the Act and by the SEC;

                                        8

<PAGE>

               (iii) if requested by an Initial Purchaser, include the
          information required by Item 507 or 508 of Regulation S-K, as
          applicable, in the Prospectus contained in the Exchange Offer
          Registration Statement to the extent permitted under the Act and by
          the SEC; and

               (iv)  in the case of a Shelf Registration Statement, include the
          names of the Holders that have provided the Selling Stockholder
          Information within a reasonable time period after being requested to
          so provide such information and that propose to sell Securities
          pursuant to the Shelf Registration Statement as selling security
          holders.

          (b)  The Obligors shall ensure that:

               (i)   any Registration Statement and any amendment thereto and
          any Prospectus forming part thereof and any amendment or supplement
          thereto complies in all material respects with the Act; and

               (ii)  any Registration Statement and any amendment thereto does
          not, when it becomes effective, contain an untrue statement of a
          material fact or omit to state a material fact required to be stated
          therein or necessary to make the statements therein not misleading.

          (c)  The Obligors shall advise the Representatives, the Holders of
Transfer Restricted Notes covered by any Shelf Registration Statement and any
Exchanging Dealer under any Exchange Offer Registration Statement that has
provided in writing to Holdings a telephone or facsimile number and address for
notices, and, if requested by any Representative or any such Holder or
Exchanging Dealer, shall confirm such advice in writing (which notice pursuant
to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend the
use of the Prospectus until the Obligors shall have remedied the basis for such
suspension):

               (i)   when a Registration Statement and any amendment thereto has
          been filed with the Commission and when the Registration Statement or
          any post-effective amendment thereto has become effective;

               (ii)  of any request by the Commission for any amendment or
          supplement to the Registration Statement or the Prospectus or for
          additional information;

               (iii) of the issuance by the Commission of any stop order
          suspending the effectiveness of the Registration Statement or the
          institution or threatening of any proceeding for that purpose;

               (iv)  of the receipt by the Issuer of any notification with
          respect to the suspension of the qualification of the securities
          included therein for sale in any jurisdiction or the institution or
          threatening of any proceeding for such purpose; and

                                        9

<PAGE>

               (v)   of the happening of any event that requires any change in
          the Registration Statement or the Prospectus so that, as of such date,
          they (A) do not contain any untrue statement of a material fact and
          (B) do not omit to state a material fact required to be stated therein
          or necessary to make the statements therein (in the case of the
          Prospectus, in the light of the circumstances under which they were
          made) not misleading.

          (d)  The Obligors shall use their respective reasonable efforts to
prevent the issuance of any order suspending the effectiveness of any
Registration Statement or the qualification of the securities therein for sale
in any jurisdiction and, if issued, to obtain as soon as possible the withdrawal
thereof.

          (e)  The Obligors shall furnish to each Holder of Transfer Restricted
Notes covered by any Shelf Registration Statement, without charge, at least one
copy of such Shelf Registration Statement and any post-effective amendment
thereto, including all material incorporated therein by reference, and, if the
Holder so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein).

          (f)  The Obligors shall, during the Shelf Registration Period, deliver
to each Holder of Transfer Restricted Notes covered by any Shelf Registration
Statement, without charge, as many copies of the Prospectus (including the
Preliminary Prospectus) included in such Shelf Registration Statement and any
amendment or supplement thereto as such Holder may reasonably request in
writing. The Obligors consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Transfer Restricted Notes
in connection with the offering and sale of the Transfer Restricted Notes
covered by the Prospectus, or any amendment or supplement thereto, included in
the Shelf Registration Statement.

          (g)  The Obligors shall furnish to each Exchanging Dealer which so
requests in writing, without charge, at least one copy of the Exchange Offer
Registration Statement and any post-effective amendment thereto, including all
material incorporated by reference therein, and, if the Exchanging Dealer so
requests in writing, all exhibits thereto (including exhibits incorporated by
reference therein).

          (h)  The Obligors shall promptly deliver to each Initial Purchaser,
each Exchanging Dealer and each other person required to deliver a Prospectus
during the Exchange Offer Registration Period, without charge, as many copies of
the Prospectus included in such Exchange Offer Registration Statement and any
amendment or supplement thereto as any such person may reasonably request in
writing. The Obligors consent to the use of the Prospectus or any amendment or
supplement thereto by any Initial Purchaser, any Exchanging Dealer and any such
other person that may be required to deliver a Prospectus following the
Registered Exchange Offer in connection with the offering and sale of the
Transfer Restricted Notes covered by the Prospectus, or any amendment or
supplement thereto, included in the Exchange Offer Registration Statement.

          (i)  Prior to the Registered Exchange Offer or any other offering of
Transfer Restricted Notes pursuant to any Registration Statement, the Obligors
shall arrange, if necessary, for the qualification of the Transfer Restricted
Notes for sale under the laws of such jurisdictions as any Holder shall
reasonably request and shall maintain such qualification in effect so long as
required; provided that in no event shall the Obligors be obligated to qualify
to do business in any jurisdiction where it is not then so qualified or to take
any action that would subject it to service of process in suits, other than
those arising out of the Initial Placement, the Registered Exchange Offer or any
offering pursuant to a Shelf Registration Statement, in any such jurisdiction
where it is not then so subject.

          (j)  The Obligors shall cooperate with the Holders of Transfer
Restricted Notes to facilitate the timely preparation and delivery of
certificates representing New Securities or Securities to be issued or sold
pursuant to any Registration Statement free of any restrictive legends and in
such denominations and registered in such names as Holders may request.

          (k)  (i)   Upon the occurrence of any event contemplated by
subsections (c)(ii) through (v) above, the Obligors shall promptly (or within
the time period provided for by clause (ii) hereof, if applicable) prepare a
post-effective amendment to the applicable Registration Statement or an
amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to Initial Purchasers of the
securities included therein, the Prospectus will not include 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 the light of the
circumstances under which they were made, not misleading. In such circumstances,
the period of effectiveness of the Exchange Offer Registration Statement
provided for in Section 2 shall be extended by the number of days from and
including the date of the giving of a notice of suspension pursuant to Section
4(c) to and including the date (a) when the Obligors shall have mailed to the
Initial Purchasers, the Holders of the Securities and any known Exchanging
Dealer such amended or supplemented Prospectus pursuant to this Section, in the
event the Prospectus requires an amendment or supplement to terminate such
suspension or (b) in the event such suspension is terminated other than by
amending or supplementing the Prospectus, when such suspension shall have been
terminated and the Holders shall have been so notified in writing by the
Obligors.

               (ii)  Upon the occurrence or existence of any pending corporate
          development or any other material event that, in the reasonable
          judgment of the Obligors, makes it appropriate to suspend the
          availability of a Shelf Registration Statement and the related
          Prospectus, the Obligors shall cause the issuance of a notice (without
          notice of the nature or details of such events) to the Holders that
          the availability of the Shelf Registration is suspended and, upon
          actual receipt of any such notice, each Holder agrees not to sell any
          Transfer Restricted Notes pursuant to the Shelf Registration until
          such Holder's receipt of copies of the supplemented or amended
          Prospectus provided for in Section 4(k) (i) hereof, or until it is
          advised in writing by the Issuer that the Prospectus may be used, and
          the Obligors shall have mailed to such Holders any additional or
          supplemental filings that are incorporated or deemed incorporated by
          reference in such Prospectus. The period during which the availability
          of the Shelf Registration and any Prospectus is suspended (the
          "Deferral Period") shall not exceed 45 days in any three-month period
          or 90 days in any twelve-month period.

                                       10

<PAGE>

          (l)  Not later than the effective date of any Registration Statement,
the Obligors shall provide a CUSIP number for the Securities or the New
Securities, as the case may be, registered under such Registration Statement and
provide the Trustee with printed certificates for such Securities or New
Securities, in a form eligible for deposit with The Depository Trust Company.

          (m)  The Obligors shall comply with all applicable rules and
regulations of the Commission and shall make generally available to its security
holders an earnings statement satisfying the provisions of Section 11(a) of the
Act as soon as practicable after the effective date of the applicable
Registration Statement and in any event no later than 45 days after the end of a
12-month period (or 90 days, if such period is a fiscal year) beginning with the
first month of the Holdings' first fiscal quarter commencing after the effective
date of the applicable Registration Statement.

          (n)  The Obligors shall cause the New Securities Indenture to be
qualified under the Trust Indenture Act in a timely manner.

          (o)  The Obligors may require each Holder of Transfer Restricted Notes
to be sold pursuant to any Shelf Registration Statement to furnish in writing to
the Obligors such information regarding the Holder and the distribution of such
securities as the Obligors may from time to time reasonably require for
inclusion in such Registration Statement (the "Selling Stockholder
Information"). The Obligors shall use reasonable efforts to contact each Holder
and solicit such information. The Obligors may exclude from such Shelf
Registration Statement the Transfer Restricted Notes of any Holder that
unreasonably fails to furnish such information within a reasonable time after
receiving such request.

          (p)  In the case of any Shelf Registration Statement, the Obligors
shall enter into customary agreements (including, if requested, an underwriting
agreement in customary form), including without limitation customary indemnity
contribution provisions and take all other appropriate actions in order to
expedite or facilitate the registration or the disposition of the Securities,
and in connection therewith, if an underwriting agreement is entered into, cause
the same to contain indemnification provisions and procedures no less favorable
than those set forth in Section 6 hereof. If an underwriting agreement is
entered into, the commissions and expenses of any underwriter shall be borne by
the Holders selling Securities pursuant to such underwriting agreement and not
by the Obligors.

          (q)  In the case of any Shelf Registration Statement, the Obligors
shall:

               (i)   subject to the execution of reasonable and customary
          confidentiality agreements (provided such execution shall not affect
          the Obligors' obligations with respect to the accuracy and
          completeness of such Shelf Registration Statement) make reasonably
          available for inspection by the Holders of Transfer Restricted Notes
          to be registered thereunder, any underwriter participating in any
          disposition pursuant to such Registration Statement, and any attorney,
          accountant or other agent retained by the Holders or any such
          underwriter all relevant financial and other records and pertinent
          corporate documents of the Obligors and their subsidiaries;

                                       11

<PAGE>

               (ii)  subject to the execution of reasonable and customary
          confidentiality agreement (provided such execution shall not affect
          the Obligor's obligations with respect to the accuracy and
          completeness of such Shelf Registration Statement) cause the officers,
          directors, employees, accountants and auditors of any Obligor to
          supply all relevant information reasonably requested by the Holders or
          any such underwriter, attorney, accountant or agent in connection with
          any such Registration Statement as is customary for similar due
          diligence examinations;

               (iii) make such representations and warranties to the Holders of
          Transfer Restricted Notes registered thereunder and the underwriters,
          if any, in form, substance and scope as are customarily made by
          issuers to underwriters in underwritten offerings of non-convertible
          debt securities and addressing such matters including, but not limited
          to, those set forth in the Purchase Agreement;

               (iv)  obtain opinions of counsel to the Obligors and updates
          thereof (which counsel and opinions (in form, scope and substance)
          shall be reasonably satisfactory to the Managing Underwriters, if any)
          addressed to each selling Holder and the underwriters, if any,
          covering such matters as are customarily covered in opinions requested
          in underwritten offerings of non-convertible debt securities;

               (v)   obtain "comfort" letters and updates thereof from the
          independent certified public accountants of the Obligors (and, if
          necessary, any other independent certified public accountants of any
          subsidiary of any Obligor or of any business acquired by any Obligor
          for which financial statements and financial data are, or are required
          to be, included in the Registration Statement), addressed to each
          selling Holder of Transfer Restricted Notes registered thereunder and
          the underwriters, if any, in customary form and covering matters of
          the type customarily covered in "comfort" letters in connection with
          underwritten offerings of non-convertible debt securities; and

               (vi)  deliver such documents and certificates as may be timely
          and reasonably requested by the Majority Holders or the Managing
          Underwriters, if any, including those to evidence compliance with
          Section 4(k) and with any customary conditions contained in the
          underwriting agreement or other agreement entered into by an Obligor
          of non-convertible debt securities.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this paragraph (q)
shall be performed at (A) the effectiveness of such Shelf Registration Statement
and each post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required thereunder.

                                       12

<PAGE>

          (r)  In the case of any Exchange Offer Registration Statement, the
Obligors shall, if requested by an Initial Purchaser, or by a Broker-Dealer that
holds Transfer Restricted Securities that were acquired as a result of market
making or other trading activities:

               (i)   subject to the execution of reasonable and customary
          confidentiality agreement (provided such execution shall not affect
          the Obligor's obligations with respect to the accuracy and
          completeness of such Exchange Offer Registration Statement) make
          reasonably available for inspection by the requesting party, and any
          attorney, accountant or other agent retained by the requesting party,
          all relevant financial and other records, pertinent corporate
          documents and properties of the Obligors and their subsidiaries;

               (ii)  subject to the execution of reasonable and customary
          confidentiality agreement (provided such execution shall not affect
          the Obligor's obligations with respect to the accuracy and
          completeness of such Exchange Offer Registration Statement) cause the
          officers, directors, employees, accountants and auditors of any
          Obligor to supply all relevant information reasonably requested by the
          requesting party or any such attorney, accountant or agent in
          connection with any such Registration Statement as is customary for
          similar due diligence examinations;

               (iii) make such representations and warranties to the requesting
          party, in form, substance and scope as are customarily made by issuers
          to underwriters in underwritten offerings of non-convertible debt
          securities and addressing matters including, but not limited to, those
          set forth in the Purchase Agreement;

               (iv)  obtain opinions of counsel to the Obligors and updates
          thereof (which counsel and opinions (in form, scope and substance)
          shall be reasonably satisfactory to the requesting party and its
          counsel, addressed to the requesting party, covering such matters as
          are customarily covered in opinions requested in underwritten
          offerings of non-convertible debt securities;

               (v)   obtain "comfort" letters and updates thereof from the
          independent certified public accountants of the Obligors (and, if
          necessary, any other independent certified public accountants of any
          subsidiary of any Obligor or of any business acquired by an Obligor
          for which financial statements and financial data are, or are required
          to be, included in the Registration Statement), addressed to the
          requesting party, in customary form and covering matters of the type
          customarily covered in "comfort" letters in connection with
          underwritten offerings of non-convertible debt securities, or if
          requested by the requesting party or its counsel in lieu of a
          "comfort" letter, an agreed-upon procedures letter under Statement on
          Auditing Standards No. 35, covering matters requested by the
          requesting party or its counsel; and

               (vi)  deliver such documents and certificates as may be timely
          and reasonably requested by the requesting party or its counsel,
          including those to evidence compliance with Section 4(k) and with
          conditions customarily contained in underwriting agreements of
          non-convertible debt securities.

                                       13

<PAGE>

The foregoing actions set forth in clauses (iii), (iv), (v), and (vi) of this
Section shall be performed at the close of the Registered Exchange Offer and the
effective date of any post-effective amendment to the Exchange Offer
Registration Statement.

          (s)  If a Registered Exchange Offer is to be consummated, upon
delivery of the Securities by Holders to the Obligors (or to such other person
as directed by the Issuer) in exchange for the New Securities, the Obligors
shall mark, or caused to be marked, on the Securities so exchanged that such
Securities are being cancelled in exchange for the New Securities; provided,
however, if the procedures of the Depository Trust Company ("DTC") with respect
to the Securities held in global form conflict with the procedures set forth in
this Section 4(s), compliance by the Obligors with such DTC procedures shall not
breach nor be deemed a breach of this Section 4(s). In no event shall the
Securities subject to the exchange be marked as paid or otherwise satisfied.

          (t)  The Obligors shall use their respective reasonable efforts if the
Securities have been rated prior to the initial sale of such Securities, to
confirm such ratings will apply to the Securities or the New Securities, as the
case may be, covered by a Registration Statement.

          (u)  In the event that any Broker-Dealer shall underwrite any
Securities or participate as a member of an underwriting syndicate or selling
group or "assist in the distribution" (within the meaning of the NASD Rules)
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or otherwise,
the Obligors shall assist such Broker-Dealer in complying with the NASD Rules.

          (v)  The Obligors shall use their reasonable efforts to take all other
steps necessary to effect the registration of the Securities or the New
Securities, as the case may be, covered by a Registration Statement.

          5.   Registration Expenses. The Obligors shall bear all expenses
incurred in connection with the performance of its obligations under Sections 2,
3 and 4 hereof and, in the event of any Shelf Registration Statement, will
reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel (which shall initially be Skadden, Arps, Slate, Meagher & Flom LLP, but
which may be another nationally recognized law firm experienced in securities
matters designated by the Majority Holders) to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration
Statement, will reimburse the Initial Purchasers for the reasonable fees and
disbursements of counsel acting in connection therewith.

          6.   Indemnification and Contribution. (a) Each Obligor agrees,
jointly and severally, to indemnify and hold harmless each Holder of Securities
or New Securities, as the case may be, covered by any Registration Statement,
each Initial Purchaser and, with respect to any Prospectus delivery as
contemplated in Section 4(h) hereof, each Exchanging Dealer, the directors,
officers, employees, Affiliates and agents of each such Holder, Initial
Purchaser or

                                       14

<PAGE>

Exchanging Dealer and each person who controls any such Holder, Initial
Purchaser or Exchanging Dealer within the meaning of either the Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the Act, the
Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Registration
Statement as originally filed or in any amendment thereof, or in any preliminary
Prospectus or the Prospectus, or in any amendment thereof or supplement thereto,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of any preliminary Prospectus or the Prospectus,
in the light of the circumstances under which they were made) not misleading,
and agrees to reimburse each such indemnified party, as incurred, for any legal
or other expenses reasonably incurred by it in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Obligors will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon any such
untrue statement or alleged untrue statement or omission or alleged omission
made therein in reliance upon and in conformity with written information
furnished to any Obligor by or on behalf of any party claiming indemnification
specifically for inclusion therein. This indemnity agreement shall be in
addition to any liability that any Obligor may otherwise have.

          Each Obligor agrees, jointly and severally, to indemnify as provided
in this Section 6(a) or contribute as provided in Section 6(d) hereof to Losses
of each underwriter, if any, of Securities or New Securities, as the case may
be, registered under a Shelf Registration Statement, their directors, officers,
employees, Affiliates or agents and each person who controls such underwriter on
substantially the same basis as that of the indemnification of the Initial
Purchasers and the selling Holders provided in this Section 6(a) and shall, if
requested by the Holder, enter into an underwriting agreement reflecting such
agreement, as provided in Section 4(p) hereof.

          (b)  Each Holder of securities covered by a Registration Statement
(including each Initial Purchaser that is a Holder, in such capacity) severally
and not jointly agrees to indemnify and hold harmless the Obligors, each of
their respective directors, each of their respective officers who signs such
Registration Statement and each person who controls the Obligors within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Obligors to each such Holder, but only with
reference to written information relating to such Holder furnished to the
Obligors by or on behalf of such Holder specifically for inclusion in the
documents referred to in the foregoing indemnity. This indemnity agreement will
be in addition to any liability that any such Holder may otherwise have.

                                       15

<PAGE>

          (c)  Promptly after receipt by an indemnified party under this Section
6 or notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 6, notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses or if the indemnifying
party has been materially prejudiced by such failure; and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or (b)
above. The indemnifying party shall be entitled to appoint counsel (including
local counsel) of the indemnifying party's choice at the indemnifying party's
expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel,
other than local counsel if not appointed by the indemnifying party, retained by
the indemnified party or parties except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party's election to appoint counsel (including
local counsel) to represent the indemnified party in an action, the indemnified
party shall have the right to employ separate counsel (including local counsel),
and the indemnifying party shall bear the reasonable fees, costs and expenses of
such separate counsel if (i) the use of counsel chosen by the indemnifying party
to represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties that are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after notice of the institution of such action; or (iv) the indemnifying
party shall authorize the indemnified party to employ separate counsel at the
expense of the indemnifying party. The indemnifying party shall not, in
connection with any one action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) at any time for
all indemnified parties. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or
consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

                                       16

<PAGE>

          (d) In the event that the indemnity provided in paragraph (a) or (b)
of this Section is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party shall
have a joint and several obligation to contribute to the aggregate losses,
claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending any loss, claim,
liability, damage or action) (collectively "Losses") to which such indemnified
party may be subject in such proportion as is appropriate to reflect the
relative benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and the
Registration Statement which resulted in such Losses; provided, however, that in
no case shall any Initial Purchaser be responsible, in the aggregate, for any
amount in excess of the purchase discount or commission applicable to such
Security, or in the case of a New Security, applicable to the Security that was
exchangeable into such New Security, as set forth in the Final Memorandum, nor
shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the securities purchased by
such underwriter under the Registration Statement which resulted in such Losses.
If the allocation provided by the immediately preceding sentence is unavailable
for any reason, the indemnifying party and the indemnified party shall
contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of such indemnifying party, on the
one hand, and such indemnified party, on the other hand, in connection with the
statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Obligors shall be
deemed to be equal to the total net proceeds from the Initial Placement (before
deducting expenses) as set forth in the Final Memorandum. Benefits received by
the Initial Purchasers shall be deemed to be equal to the total purchase
discounts and commissions as set forth on the cover page of the Final
Memorandum, and benefits received by any other Holders shall be deemed to be
equal to the value of receiving Securities or New Securities, as applicable,
registered under the Act. Benefits received by any underwriter shall be deemed
to be equal to the total underwriting discounts and commissions, as set forth on
the cover page of the Prospectus forming a part of the Registration Statement
which resulted in such Losses. Relative fault shall be determined by reference
to, among other things, whether any untrue or any alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission. The parties agree that it would not be just
and equitable if contribution were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or any other method of
allocation which does not take account of the equitable considerations referred
to above. Notwithstanding the provisions of this paragraph (d), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section, each person who
controls a Holder within the meaning of either the Act or the Exchange Act and
each director, officer, employee and agent of such Holder shall have the same
rights to contribution as such Holder, and each person who controls an Obligor
within the meaning of either the Act or the Exchange Act, each officer of an
Obligor who shall have signed the Registration Statement and each director of an
Obligor shall have the same rights to contribution as such Obligor, subject in
each case to the applicable terms and conditions of this paragraph (d). The
Initial Purchasers' obligations to contribute as provided in this Section 6(d)
are several in proportion to their respective underwriting obligations and not
joint.

          (e)  The provisions of this Section will remain in full force and
effect, regardless of any investigation made by or on behalf of any Holder or
the Obligors or any of the indemnified persons referred to in this Section 6,
and will survive the sale by a Holder of securities covered by a Registration
Statement.

          7.   Underwritten Registrations. (a) If any of the Transfer Restricted
Notes covered by any Shelf Registration Statement are to be sold in an
underwritten offering, the Managing Underwriters shall be selected by the
Majority Holders.

          (b)  No person may participate in any underwritten offering pursuant
to any Shelf Registration Statement, unless such person (i) agrees to sell such
person's Transfer Restricted Notes on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements; and (ii) timely completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

                                       17

<PAGE>

          8.   Registration Defaults. If any of the following events shall
occur, then the Obligors shall pay liquidated damages (the "Registration Default
Damages") to the Holders as follows:

          (a)  if any Registration Statement required by this Agreement is not
filed with the Commission on or prior to the date specified for such filing in
this Agreement, then Registration Default Damages shall accrue on the Transfer
Restricted Notes at a rate of 0.25% per annum for the first 90-day period from
and including such specified date. The Registration Default Damages shall
increase by an additional 0.25% per annum with respect to each subsequent 90-day
period until the default set forth in this Section 8(a) shall have been cured,
up to a maximum of 1.0% per annum; or

          (b)  if any Registration Statement required by this Agreement is not
declared effective by the Commission on or prior to the date by which reasonable
efforts are to be used to cause such effectiveness under this Agreement, then
commencing on the day after such specified date, Registration Default Damages
shall accrue on the Transfer Restricted Notes at a rate of 0.25% per annum for
the first 90-day period from and including such specified date. The Registration
Default Damages shall increase by an additional 0.25% per annum with respect to
each subsequent 90-day period until the default set forth in this Section 8(b)
shall have been cured, up to a maximum of 1.0% per annum;

          (c)  if on or prior to the 215th day following the Closing Date,
neither the Registered Exchange Offer has been consummated nor the Shelf
Registration Statement has been declared effective, then commencing on the day
after such specified date, Registration Default Damages shall accrue on the
Transfer Restricted Notes at a rate of 0.25% per annum for the first 90-day
period from and including such specified date. The Registration Default Damages
shall increase by an additional 0.25% per annum with respect to each subsequent
90-day period until the default set forth in this Section 8(c) shall have been
cured, up to a maximum of 1.0% per annum; or

          (d)  if any Registration Statement required by this Agreement has been
declared effective but ceases to be effective at any time at which it is
required to be effective under this Agreement, then commencing on the day the
Registration Statement ceases to be effective, Registration Default Damages
shall accrue on the Transfer Restricted Notes at a rate of 0.25% per annum for
the first 90-day period from and including such specified date. The Registration
Default Damages shall increase by an additional 0.25% per annum with respect to
each subsequent 90-day period until the default set forth in this Section 8(d)
shall have been cured, up to a maximum of 1.0% per annum;

provided, however, that (1) upon the filing of the Registration Statement (in
the case of Section 8(a) above), (2) upon the effectiveness of the Registration
Statement (in the case of Section 8(b) above), (3) upon the consummation of the
Registered Exchange Offer or the Shelf Registration Statement is declared
effective, in each case following the 215th day after the Closing Date (in the
case of Section 8(c) above) or (4) upon the effectiveness of the Registration
Statement which had ceased to remain effective (in the case of Section 8(d)
above), Registration Default Damages shall cease to accrue; provided, further,
the Obligors will not pay Registration Default Damages with respect to more than
one default set forth in Section 8(a), (b), (c) or (d), and, provided, further,
to the extent the Obligors have reasonably requested Selling Stockholder
Information from a Holder of Securities or New Securities in connection with the
preparation and submission of a Shelf Registration Statement and such Holder has
not provided the Obligors such Selling Stockholder Information within a
reasonable time after receiving the Obligors' request, such Holder shall have no
right to seek Registration Default Damages that may accrue as a result of a
default of the Obligors relating to such Shelf Registration Statement.

                                       18

<PAGE>

          9.   No Inconsistent Agreements. The Obligors have not entered into,
and each of them agrees not to enter into, any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders herein or
that otherwise conflicts with the provisions hereof.

          10.  Amendments and Waivers. The provisions of this Agreement may not
be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Obligors have
obtained the written consent of the Holders of a majority of the aggregate
principal amount of the Transfer Restricted Notes outstanding; provided that,
with respect to any matter that directly affects the rights of any Initial
Purchaser (in its capacity as Initial Purchaser and not in its capacity as a
Holder) hereunder, the Obligors shall obtain the written consent of each such
Initial Purchaser against which such amendment, qualification, supplement,
waiver or consent is to be effective; provided, further, that no amendment,
qualification, supplement, waiver or consent with respect to Section 8 hereof
shall be effective as against any Holder of Registered Securities unless
consented to in writing by such Holder; and provided, further, that the
provisions of this Article 10 may not be amended, qualified, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Obligors have obtained the written consent of the
Initial Purchasers and each Holder. Notwithstanding the foregoing (except the
foregoing provisos), a waiver or consent to departure from the provisions hereof
with respect to a matter that relates exclusively to the rights of Holders whose
Securities or New Securities, as the case may be, are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by the Holders of a majority of the
aggregate principal amount of Securities or New Securities, as the case may be,
being sold rather than registered under such Registration Statement.

          11.  Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telex, telecopier or air courier guaranteeing overnight delivery:

          (a)  if to a Holder, at the most current address given by such holder
to the Issuer in accordance with the provisions of this Section 11, which
address initially is, with respect to each Holder, the address of such Holder
maintained by the Registrar under the Indenture;

                                       19

<PAGE>

          (b)  if to the Representatives, initially at the address or addresses
set forth in the Purchase Agreement; and

          (c)  if to any of the Obligors, initially at its address set forth in
the Purchase Agreement.

          All such notices and communications shall be deemed to have been duly
given when received.

          The Initial Purchasers or the Obligors by notice to the other parties
may designate additional or different addresses for subsequent notices or
communications.

          12.  Remedies. Each Holder, in addition to being entitled to exercise
all rights provided to it herein, in the Indenture or in the Purchase Agreement
or granted by law will be entitled to specific performance of its rights under
this Agreement. The Obligors agree 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.

          13.  Successors. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their respective successors and assigns,
including, without the need for an express assignment or any consent by the
Obligors thereto, subsequent Holders of Securities and the New Securities, and
the indemnified persons referred to in Section 6 hereof. The Obligors hereby
agree to extend the benefits of this Agreement to any Holder of Securities and
the New Securities, and any such Holder may specifically enforce the provisions
of this Agreement as if an original party hereto.

          14.  Jurisdiction. Each Obligor agrees that any suit, action or
proceeding against such Obligor brought by any Holder or Initial Purchaser, the
directors, officers, employees, Affiliates and agents of any Holder or Initial
Purchaser, or by any person who controls any Holder or Initial Purchaser,
arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any State or U.S. federal court in The City of New
York and County of New York, and waives any objection which it may now or
hereafter have to the laying of venue of any such proceeding, and irrevocably
submits to the non-exclusive jurisdiction of such courts in any suit, action or
proceeding. The Obligors hereby appoint CT Corporation System as their
authorized agent (the "Authorized Agent") upon whom process may be served in any
suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated herein which may be instituted in any State or U.S.
federal court in The City of New York and County of New York, by any Holder or
Initial Purchaser, the directors, officers, employees, Affiliates and agents of
any Holder or Initial Purchaser, or by any person who controls any Holder or
Initial Purchaser, and expressly accepts the non-exclusive jurisdiction of any
such court in respect of any such suit, action or proceeding. Each Obligor
hereby represents and warrants that the Authorized Agent has accepted such
appointment and has agreed to act as said agent for service of process, and the
Obligors agree to take any and all action, including the filing of any and all
documents that may be necessary to continue such appointment in full force and
effect as aforesaid. Service of process upon the Authorized Agent shall be
deemed, in every respect, effective service of process upon each Obligor. The
Obligors further agree to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment in full force and effect so long as
any of the Securities shall be outstanding. Notwithstanding the foregoing, any
action arising out of or based upon this Agreement may be instituted against an
Obligor by any Holder or Initial Purchaser, the directors, officers, employees,
Affiliates and agents of any Holder or Initial Purchaser, or by any person who
controls any Holder or Initial Purchaser, in any court of competent jurisdiction
in the jurisdiction of incorporation of such Obligor. The parties hereto each
hereby waive any right to trial by jury in any action, proceedings or
counterclaim arising out of or relating to this Agreement.

                                       20

<PAGE>

          15.  Currency. Each reference in this Agreement to U.S. dollars (the
"relevant currency") is of the essence. To the fullest extent permitted by law,
the obligation of the Obligors or the Initial Purchasers, as the case may be, in
respect of any amount due under this Agreement will, notwithstanding any payment
in any other currency (whether pursuant to a judgment or otherwise), be
discharged only to the extent of the amount in the relevant currency that the
party entitled to receive such payment may, in accordance with its normal
procedures, purchase with the sum paid in such other currency (after any premium
and costs of exchange) on the Business Day immediately following the day on
which such party receives such payment. If the amount in the relevant currency
that may be so purchased for any reason falls short of the amount originally
due, the Obligors or the Initial Purchasers, as the case may be, will pay such
additional amounts, in the relevant currency, as may be necessary to compensate
for the shortfall. If the amount in the relevant currency that may be so
purchased for any reason exceeds the amount originally due, the Obligors or the
Initial Purchasers, as the case may be, will return such excess amount, in the
relevant currency, to the party that paid such amounts. Any obligation of the
Obligors or the Initial Purchasers, as the case may be, not discharged by such
payment will, to the fullest extent permitted by applicable law, be due as a
separate and independent obligation and, until discharged as provided herein,
will continue in full force and effect.

          16.  Waiver of Immunity. To the extent that the Obligors or an Initial
Purchaser have or hereafter may acquire any immunity (sovereign or otherwise)
from any legal action, suit or proceeding, from jurisdiction of any court or
from set-off or any legal process (whether service or notice, attachment in aid
or otherwise) with respect to itself or any of its property, the Obligors or
such Initial Purchasers, as the case may be, hereby irrevocably waive and agree
not to plead or claim such immunity in respect of their obligations under this
Agreement.

          17.  Counterparts. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.

          18.  Headings. The section headings used herein are for convenience
only and shall not affect the construction hereof.

          19.  Applicable Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York. The parties hereto each
hereby waive any right to trial by jury in any action, proceeding or
counterclaim arising out of or relating to this Agreement.

          20.  Severability. In the event that any one of more of the provisions
contained herein, or the application thereof in any circumstances, 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 or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

          21.  Securities Held by the Issuer, etc. Whenever the consent or
approval of Holders of a specified percentage of principal amount of Securities
or New Securities is required hereunder, Securities or New Securities, as
applicable, held by any Obligor or their respective Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

                                       21

<PAGE>

          22.  Obligations of Holdings. Notwithstanding anything herein to the
contrary, Holdings shall have no obligations under this Agreement to the extent
(i) it is not permitted to have such obligations under Section 4.20 of the
Indenture by and among ASAT (Finance) LLC, Holdings, certain subsidiaries of
Holdings a party thereto and U.S. Bank National Association (as successor to
JPMorgan Chase Bank), as trustee, dated as of October 29, 1999 relating to the
issuance of the 12 1/2 Senior Notes due 2006 and (ii) Section 4.20 of such
Indenture then remains in effect.

                                       22

<PAGE>

          If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among each
of the Obligors and the several Initial Purchasers.

                                          Very truly yours,

                                          New ASAT (Finance) Limited

                                          By:  /s/ Harry R. Rozakis
                                             -----------------------------------
                                             Name: Harry R. Rozakis
                                             Title: Director

                                          ASAT Holdings Limited

                                          By:  /s/ Harry R. Rozakis
                                             -----------------------------------
                                             Name: Harry R. Rozakis
                                             Title: Chief Executive Officer

                                          ASAT Limited

The COMMON SEAL of                   )
ASAT LIMITED                         )      /s/ George Shaw
was hereunto affixed                 )    --------------------------------------
in the presence of:                  )    Name: George Shaw
                                          Title: Director

                                          Timerson Limited

The COMMON SEAL of                   )
TIMERSON LIMITED                     )      /s/ George Shaw
was hereunto affixed                 )    --------------------------------------
in the presence of:                  )    Name: George Shaw
                                          Title: Director

                                            /s/ Harry R. Rozakis
                                          --------------------------------------
                                          Name: Harry R. Rozakis
                                          Title: Director

                                          ASAT, Inc.

                                          By:  /s/ Harry R. Rozakis
                                             -----------------------------------
                                             Name: Harry R. Rozakis
                                             Title: Director

                                       23

<PAGE>

The foregoing Agreement is hereby
confirmed and accepted as of the date
first above written.

Citigroup Global Markets Limited

By   /s/ Adrian Khoo
   -------------------------------------
   Name: Adrian Khoo
   Title: Director

For itself and the other several Initial
 Purchasers named in Schedule I to the
 Purchase Agreement.

                                       24

<PAGE>

                                     ANNEX A

          Each broker-dealer that receives new securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus meeting the requirement of the Act in connection with any resale of
such new securities. The Letter of Transmittal states that by so acknowledging
and by delivering a prospectus, a broker-dealer will not be deemed to admit that
it is an "underwriter" within the meaning of the Act. This prospectus, as it may
be amended or supplemented from time to time, may be used by a broker-dealer in
connection with resales of new securities received in exchange for securities
where such securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Obligors have agreed
that, starting on the expiration date and ending on the close of business 270
days after the expiration date, they will make this prospectus available to any
broker-dealer for use in connection with any such resale. See "Plan of
Distribution".

<PAGE>

                                     ANNEX B

          Each broker-dealer that receives new securities for its own account in
exchange for securities, where such securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such new securities. See "Plan of Distribution".

<PAGE>

                                     ANNEX C

                              PLAN OF DISTRIBUTION

          Each broker-dealer that receives new securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus meeting the requirements of the Act in connection with any resale of
such new securities. This prospectus, as it may be amended or supplemented from
time to time, may be used by a broker-dealer in connection with resales of new
securities received in exchange for securities where such securities were
acquired as a result of market-making activities or other trading activities.
The Issuer has agreed that, starting on the expiration date and ending on the
close of business 270 days after the expiration date of the exchange offer, it
will make this prospectus, as amended or supplemented, available to any
broker-dealer for use in connection with any such resale. In addition, until
__________, ______, all dealers effecting transactions in the new securities may
be required to deliver a prospectus.

          The Issuer will not receive any proceeds from any sale of new
securities by brokers-dealers. New securities received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the new securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer and/or the purchasers of any such new
securities. Any broker-dealer that resells new securities that were received by
it for its own account pursuant to the Exchange Offer and any broker or dealer
that participates in a distribution of such new securities may be deemed to be
an "underwriter" within the meaning of the Act and any profit of any such resale
of new securities and any commissions or concessions received by any such
persons may be deemed to be underwriting compensation under the Act. The Letter
of Transmittal states that by acknowledging that it will deliver and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is
an "underwriter" within the meaning of the Act.

          For a period of 270 days after the expiration date, the Issuer will
promptly send additional copies of this prospectus and any amendment or
supplement to this prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Issuer has agreed to pay all expenses incident
to the Exchange Offer (including the expenses of one counsel for the holder of
the securities) other than commissions or concessions of any brokers or dealers
and will indemnify the holders of the securities (including any broker-dealers)
against certain liabilities, including liabilities under the Act.

<PAGE>

                                     ANNEX D

Rider A
-------

PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH
TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
AMENDMENTS OR SUPPLEMENTS THERETO.

Name:
          ------------------------------
Address:
          ------------------------------

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

Rider B
-------

If the undersigned is not a Broker-Dealer, the undersigned represents that it
acquired the New Securities in the ordinary course of its business, it is not
engaged in, and does not intend to engage in, a distribution of New Securities
and it has no arrangements or understandings with any person to participate in a
distribution of the New Securities. If the undersigned is a Broker-Dealer that
will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Act.

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