Document:

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                                                                     EXHIBIT 4.2

                           FORM OF WARRANT CERTIFICATE

[THE FOLLOWING PARAGRAPH SHALL APPEAR ON THE FACE OF EACH RESTRICTED WARRANT:]

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN
APPLICABLE EXEMPTION THEREFROM. THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE SECURITIES.

[THE COMPANY SHALL PLACE THE FOLLOWING PARAGRAPH ON THE FACE OF EACH WARRANT
HELD BY OR TRANSFERRED TO AN "AFFILIATE" (AS DEFINED IN RULE 501(B) OF
REGULATION D UNDER THE SECURITIES ACT) OF THE COMPANY:]

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON WHO MAY BE
DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144 PROMULGATED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY BE
SOLD ONLY IN COMPLIANCE WITH RULE 144, PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO A VALID EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT.

                              DAVE & BUSTER'S, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.:      [        ]                       Number of Shares:   [       ]
CUSIP No.:        23833N 112                            (subject to adjustment)

Date of Issuance:  August 7, 2003

         DAVE & BUSTER'S, INC., a Missouri corporation (the "Company"), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, [____________], the registered holder hereof
or its permitted assigns, is entitled, subject to the terms and conditions set
forth below, to purchase from the Company upon surrender of this Warrant (as
defined below), at any time or times on or after the date hereof, but not after
5:00 p.m., Eastern Standard Time, on the Expiration Date (as defined below),
[______________] fully paid nonassessable shares of Common Stock (as defined
below) of the Company at the Exercise Price per share provided in Section 1(d)
of this Warrant, subject to adjustment as provided below. Capitalized terms used
herein but not defined shall have the same meanings assigned to them in the
Securities

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Purchase Agreement dated as of August 6, 2003, by and between the Company and
the parties listed on the Schedule of Buyers attached thereto as Exhibit A (as
such agreement may be amended, supplemented and modified from time to time as
provided in such agreement, the "Securities Purchase Agreement").

         This Warrant (as defined below) is one of a series of Warrants issued
in connection with the transactions described in that certain (i) Securities
Purchase Agreement and (ii) certain other related documents and agreements
including, without limitation, the Transaction Documents (as defined in the
Securities Purchase Agreement). The Warrant Shares (as defined below) issued
upon exercise of this Warrant and the holder hereof and thereof shall be
entitled to all of the rights and privileges set forth in the Transaction
Documents. The Warrants are issued under and pursuant to a Warrant Agent
Agreement dated as of August 7, 2003 (herein called the "Warrant Agent
Agreement"), between the Company and The Bank of New York (herein called the
"Warrant Agent"),

SECTION 1. DEFINITIONS. The following terms as used in this Warrant shall have
the following meanings:

         (a) "Business Day" means any day other than Saturday, Sunday or other
day on which commercial banks in The City of New York are required by law to
remain closed.

         (b) "Common Stock" means (i) the common stock, $.01 par value per
share, of the Company, and (ii) any capital stock into which such Common Stock
shall have been changed or any capital stock resulting from a reclassification
of such Common Stock.

         (c) "Exercise Price" shall be equal to $13.46, subject to further
adjustment as hereinafter provided.

         (d) "Expiration Date" means August 6, 2008 or, if such date does not
fall on a Business Day or on a Trading Day, then the next Business Day.

         (e) "Person" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization or association and a government or any department or agency
thereof.

         (f) "Principal Market" means The New York Stock Exchange (the "NYSE")
or, if the Common Stock is not traded on the NYSE, then the principal securities
exchange or trading market for the Common Stock.

         (g) "Registration Rights Agreement" means that certain Registration
Rights Agreement, dated as of August 7, 2003, among the Company, the Placement
Agents and certain of the initial purchasers of the Series B Preferred Stock as
such agreement may be amended, supplemented and modified from time to time in a
writing signed by all of the signatories thereto.

         (h) "Securities Act" means the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

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         (i) "Trading Day" shall mean (x) a day on which the Principal Market is
open for business or (y) if the applicable security is not so listed on a
Principal Market or admitted for trading or quotation, a Business Day.

         (j) "Warrant" means this Warrant and the other warrants to purchase
shares of Common Stock issued pursuant to the Securities Purchase Agreement and
all warrants issued in exchange, transfer or replacement thereof.

         (k) "Warrant Shares" means all shares of Common Stock issuable upon
exercise of the Warrants.

SECTION 2. Exercise of Warrant.

         (a) Subject to the terms and conditions hereof, including the early
termination of this Warrant pursuant to Section 3(b) of this Warrant, this
Warrant may be exercised by the holder hereof then registered on the books of
the Company, in whole or in part, at any time on any Business Day on or after
the opening of business on the date hereof and prior to 5:00 p.m., Eastern Time,
on the Expiration Date by (i) delivery of a written notice, in the form of the
subscription notice attached as Exhibit A hereto or a reasonable facsimile
thereof (the "Exercise Notice"), to the Company at the principal corporate trust
office of the Warrant Agent and to the Company's designated transfer agent (the
"Transfer Agent"), of such holder's election to exercise all or a portion of
this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, (ii) (A) payment to the Warrant Agent of an amount equal to the
Exercise Price multiplied by the number of Warrant Shares as to which this
Warrant is being exercised (the "Aggregate Exercise Price") in cash or delivery
of a certified check or bank draft payable to the order of the Warrant Agent or
wire transfer of immediately available funds or (B) notification to the Company
at the principal corporate trust office of the Warrant Agent that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 2(e)
of this Warrant), and (iii) the surrender of this Warrant to a common carrier
for overnight delivery to the Warrant Agent as soon as practicable following
such date (or an indemnification undertaking or other form of security
reasonably satisfactory to the Company with respect to this Warrant in the case
of its loss, theft or destruction); provided, however, that if such Warrant
Shares are to be issued in any name other than that of the registered holder of
this Warrant, such issuance shall be deemed a transfer and the provisions of
Section 8 of this Warrant shall be applicable. In the event of any exercise of
the rights represented by this Warrant in compliance with this Section 2(a), the
Company shall use its best efforts on or before the third Business Day, but in
no event later than the fifth Business Day (the "Warrant Share Delivery Date")
following the date of receipt by the Warrant Agent of the Exercise Notice, the
Aggregate Exercise Price (or notice of Cashless Exercise) and this Warrant (or
an indemnification undertaking or other form of security reasonably satisfactory
to the Company with respect to this Warrant in the case of its loss, theft or
destruction) (the "Exercise Delivery Documents"), (A) in the case of a public
resale of such Warrant Shares, at the holder's request, to credit such aggregate
number of shares of Common Stock to which the holder shall be entitled to the
holder's or its designee's balance account with The Depository Trust Company
("DTC") through its Deposit Withdrawal Agent Commission system or (B) to issue
and deliver to the address as specified in the Exercise Notice, a certificate or
certificates in such denominations as may be requested by the holder in the
Exercise Notice, registered in the name of the holder or its designee, for the
number of shares of Common Stock to which the holder shall be

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entitled upon such exercise. Upon delivery of the Exercise Notice, this Warrant
and Aggregate Exercise Price referred to in clause (ii)(A) above or notification
of a Cashless Exercise referred to in Section 2(e) of this Warrant, the holder
of this Warrant shall be deemed for all corporate purposes to have become the
holder of record of the Warrant Shares with respect to which this Warrant has
been exercised, irrespective of the date of delivery of this Warrant as required
by clause (iii) above or the certificates evidencing such Warrant Shares. In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the number of Warrant Shares, the Company shall
promptly issue to the holder the number of shares of Common Stock that is not
disputed and shall submit the disputed determination or arithmetic calculation
to the holder via facsimile within two (2) Business Days after receipt of the
holder's Exercise Notice. If the holder and the Company are unable to agree upon
the determination of the Exercise Price or arithmetic calculation of the number
of Warrant Shares within two (2) Business Days of such disputed determination or
arithmetic calculation being submitted to the holder, then the Company shall
immediately submit via facsimile (i) the disputed determination of the Exercise
Price or the Closing Price (as defined in Section 9(f) of this Warrant) to an
independent, reputable investment banking firm selected jointly by the Company
and the holder or (ii) the disputed arithmetic calculation of the number of
Warrant Shares to its independent, outside auditor. The Company shall cause the
investment banking firm or the auditor, as the case may be, to perform the
determination or calculation and notify the Company and the holder of the
results no later than ten (10) Business Days from the time it receives the
disputed determination or calculation. Such investment banking firm's or
auditor's determination or calculation, as the case may be, shall be deemed
conclusive absent manifest error. All fees and expenses of such determinations
shall be borne solely by the Company.

         (b) Unless the rights represented by this Warrant shall have expired or
shall have been fully exercised, the Company shall, as soon as practicable but
in no event later than five (5) Business Days after any exercise (the "Warrant
Delivery Date") and at its own expense, issue a new Warrant identical in all
respects to this Warrant exercised except it shall represent rights to purchase
the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which this
Warrant is exercised.

         (c) Notwithstanding anything contained in this Warrant to the contrary,
the Company shall not be required to issue fractions of shares of Common Stock
upon exercise of this Warrant or to distribute certificates which evidence such
fractional shares. If more than one Warrant shall be presented for exercise in
full at the same time by the same holder, the number of full shares of Common
Stock which shall be issuable upon the exercise thereof shall be computed on the
basis of the aggregate number of shares of Common Stock purchasable on exercise
of all Warrants so presented. In lieu of any fractional shares, there shall be
paid to the holder an amount of cash equal to the same fraction of the current
market value of a share of Common Stock. For purposes of this Section 2(c) of
this Warrant, the current market value of a share of Common Stock shall be the
Closing Price of a share of Common Stock for the Trading Day immediately prior
to the date of such exercise or if not listed on a Principal Market, then as
determined by the holders of Warrants representing a majority of the shares of
Common Stock issuable upon exercise of all of the Warrants then outstanding.

         (d) If the Company shall fail for any reason or for no reason (except
in the case of a dispute as to the Exercise Price or the Closing Price which is
being resolved in accordance with Section 2(a)

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of this Warrant) to issue to the holder within five (5) Business Days of receipt
of the Exercise Delivery Documents, a certificate for the number of shares of
Common Stock to which the holder is entitled or to credit the holder's or its
designee's balance account with DTC, in accordance with Section 2 of this
Warrant, for such number of shares of Common Stock to which the holder is
entitled upon the holder's exercise of this Warrant or a new Warrant for the
number of shares of Common Stock to which such holder is entitled pursuant to
Section 2(b) of this Warrant, the Company shall, in addition to any other
remedies under this Warrant or the Securities Purchase Agreement or otherwise
available to such holder, including any indemnification under Section 8 of the
Securities Purchase Agreement, pay as additional damages in cash to such holder
on each day after the Warrant Share Delivery Date if such exercise is not timely
effected and/or each day after the Warrant Delivery Date if such Warrant is not
delivered, as the case may be, in an amount equal to one-half percent (0.5%) per
month multiplied by the product of (I) the sum of the number of shares of Common
Stock not issued to the holder on or prior to the Warrant Share Delivery Date
and to which such holder is entitled and, in the event the Company has failed to
deliver a Warrant to the holder on or prior to the Warrant Delivery Date and to
which such holder is entitled, the number of shares of Common Stock issuable
upon exercise of the Warrant as of the Warrant Delivery Date and (II) the
Closing Price of the Common Stock on the Warrant Share Delivery Date, in the
case of failure to deliver Common Stock, or on the Warrant Delivery Date, in the
case of failure to deliver a Warrant, provided that if the Common Stock is not
listed on a Principal Market, then the Closing Price shall be as determined in
good faith by a majority of the Company's Board of Directors, whose
determination shall be final, binding and conclusive.

         (e) Notwithstanding anything contained herein to the contrary, the
holder of this Warrant may, at its election exercised in its sole discretion,
exercise this Warrant as to all or a portion of the Warrant Shares and, in lieu
of making the cash payment otherwise contemplated to be made to the Company upon
such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the "Net Number" of shares of Common Stock determined
according to the following formula (a "Cashless Exercise"):

                           Net Number = (A x B) - (A x C)
                                        -----------------
                                                B

         For purposes of the foregoing formula:

                  A=       the total number of shares with respect to which this
                           Warrant is then being exercised.

                  B=       the Closing Price of the Common Stock on the Trading
                           Day immediately preceding the date of the Exercise
                           Notice.

                  C=       the Exercise Price then in effect for the applicable
                           Warrant Shares at the time of such exercise.

         [INCLUDE THE FOLLOWING PARAGRAPH ONLY IF HOLDER HAS ELECTED TO BE
GOVERNED BY SECTION 2(K)(i) OF THE SECURITIES PURCHASE AGREEMENT:

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         (f) The Holder hereby agrees that in no event will it exercise any of
the Warrants in excess of the number of such Warrants upon the exercise of which
(x) the number of shares of Common Stock beneficially owned by such Holder
(other than the shares which would otherwise be deemed beneficially owned except
for being subject to a limitation on conversion analogous to the limitation
contained in this paragraph plus (y) the number of shares of Common Stock
issuable upon the exercise of such Warrants, would be equal to or exceed 9.99%
of the number of shares of Common Stock then issued and outstanding (after
giving effect to such conversion), it being the intent of the Company and the
Holder that the Holder not be deemed at any time to have the power to vote or
dispose of greater than 9.99% of the number of shares of Common Stock issued and
outstanding. As used herein, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). To the extent that the limitation contained in this
paragraph applies (and without limiting any rights the Company may otherwise
have), the Company may rely on the Holder's determination of whether the
Warrants are exercisable pursuant to the terms hereof, the Company having no
obligation whatsoever to verify or confirm the accuracy of such determination,
and the submission of the Exercise Notice by the Holder shall be deemed to be
the Holder's representation that the Warrants specified therein are exercisable
pursuant to the terms hereof. Nothing contained herein shall be deemed to
restrict the right of a Holder to exercise the Warrants at such time as the
conversion thereof will not violate the provisions of this paragraph.]

         [INCLUDE THE FOLLOWING PARAGRAPHS ONLY IF HOLDER HAS ELECTED TO BE
GOVERNED BY SECTION 2(K)(ii) OF THE SECURITIES PURCHASE AGREEMENT:

         (f) Each Holder hereby agrees that in no event will it exercise any of
the Warrants in excess of the number of such Warrants upon the exercise of which
(x) the number of shares of Common Stock beneficially owned by such Holder
(other than the shares which would otherwise be deemed beneficially owned except
for being subject to a limitation on conversion analogous to the limitation
contained in this paragraph) plus (y) the number of shares of Common Stock
issuable upon the exercise of such Warrants, would be equal to or exceed 4.99%
of the number of shares of Common Stock then issued and outstanding (after
giving effect to such conversion), it being the intent of the Company and the
Holder that the Holder not be deemed at any time to have the power to vote or
dispose of greater than 4.99% of the number of shares of Common Stock issued and
outstanding. As used herein, beneficial ownership shall be determined in
accordance with the Exchange Act. To the extent that the limitation contained in
this paragraph applies (and without limiting any rights the Company may
otherwise have), the Company may rely on the Holder's determination of whether
the Warrants are exercisable pursuant to the terms hereof, the Company having no
obligation whatsoever to verify or confirm the accuracy of such determination,
and the submission of the Exercise Notice by the Holder shall be deemed to be
the Holder's representation that the Warrants specified therein are exercisable
pursuant to the terms hereof. Nothing contained herein shall be deemed to
restrict the right of a Holder to exercise the Warrants at such time as the
conversion thereof will not violate the provisions of this paragraph.

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SECTION 3. DATE; DURATION; EARLY TERMINATION OF WARRANTS.

         (a) The date of this Warrant is August 7, 2003 (the "Warrant Date").
This Warrant, in all events, shall be wholly void and of no effect at 5:00 pm
Eastern Standard Time on the Expiration Date, or the Termination Date (as
defined below), if applicable, as the case may be, except that notwithstanding
any other provisions hereof, the provisions of Section 8(c) of this Warrant
shall continue in full force and effect after such date as to any Warrant Shares
or other securities issued upon the exercise of this Warrant.

         (b) If at any time after August 6, 2006 (1) the Closing Price per share
of the Common Stock has exceeded one hundred fifty percent (150%) of the
Exercise Price then in effect for any fifteen (15) Trading Days within a period
of twenty (20) consecutive Trading Days (the "Determination Period") and (2)
either (x) a shelf registration statement covering resales of the Common Stock
issuable upon exercise of the Warrants is effective and available for use at all
times during the period beginning thirty (30) days prior to the Notice Date (as
defined below) and ending on the Termination Date, and is expected to remain
effective and available for use until at least the earlier of thirty (30) days
following the Termination Date or the last date on which the shelf registration
statement is required to be kept effective under the terms of the Registration
Rights Agreement or (y) the Warrant Shares issuable upon a Cashless Exercise may
be sold pursuant to Rule 144 under the Securities Act, then the Company may, at
its option, terminate the Warrants. By following the procedures set forth below,
the Company may exercise this right of termination only if, within ten (10) days
following the Determination Period, the Company shall mail or cause to be mailed
a notice of such termination (the "Termination Notice," and the date such
Termination Notice is mailed, the "Notice Date") to the holders of the Warrant
at the address set forth for such holder in Section 12 of this Warrant. Such
mailing shall be by first class mail and the Company shall contemporaneously
issue a press release through PRNewswire or Bloomberg Financial Markets
containing substantially the same information as the notice of termination
described below. Each such notice of termination shall specify the CUSIP number
of the Warrant, the Termination Date, that the Warrants may not be exercised
after 5:00 p.m., Eastern Standard Time, on the Termination Date and the current
Exercise Price.

         If all of the conditions described in the preceding paragraph have been
met and if no Event of Default (as that term is defined in the Indenture) shall
have occurred and be continuing under the Indenture, dated as of August 7, 2003
between the Company and The Bank of New York, as trustee, any Warrant not
exercised before the close of business on the ninetieth (90th) day after the
mailing date of the notice of termination (such ninetieth (90th) day, the
"Termination Date") shall automatically be deemed exercised in a Cashless
Exercise in accordance with Section 2(e) and the Company will deliver the number
of Warrant Shares issuable to the holder upon receipt of a completed Exercise
Notice along with the original copy of the Warrant for cancellation (or an
affidavit of lost Warrant in accordance with Section 12).

SECTION 4. COVENANTS AS TO COMMON STOCK. The Company hereby covenants and agrees
as follows:

         (a) Issuance of Warrants and Warrant Shares. This Warrant is, and any
Warrants issued in substitution for or replacement of this Warrant will, upon
issuance, be, validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issuance thereof, and

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shall not be subject to preemptive rights or other similar rights of
shareholders of the Company. All Warrant Shares which may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance and
payment hereof or Cashless Exercise in accordance with the terms hereof, be
validly issued, fully paid and nonassessable and free from all taxes, liens and
charges created by or through the Company with respect to the issue thereof,
with the holders being entitled to all rights accorded to a holder of Common
Stock.

         (b) Reservation of Shares. During the period within which the rights
represented by this Warrant may be exercised, the Company will take all actions
reasonably necessary to at all times have authorized, and reserved for the
purpose of issuance, no less than one hundred five percent (105%) of the number
of shares of Common Stock needed to provide for the issuance of the Warrant
Shares upon exercise of all of the Warrants without regard to any limitations on
conversions or exercise.

         (c) Listing. The Company shall promptly use reasonable efforts to
secure the listing of the shares of Common Stock issuable upon exercise of this
Warrant upon each national securities exchange and automated quotation system,
if any, upon which shares of Common Stock are then listed (subject to official
notice of issuance upon exercise of this Warrant) and shall use reasonable
efforts to maintain, so long as any other shares of Common Stock shall be so
listed, such listing of all shares of Common Stock issuable from time to time
upon the exercise of this Warrant; and the Company shall use reasonable efforts
to list on the Principal Market or automated quotation system, as the case may
be, and shall use reasonable efforts to maintain such listing of, any other
shares of capital stock of the Company issuable upon the exercise of this
Warrant if and so long as any shares of the same class shall be listed on such
Principal Market or automated quotation system. The Company shall pay all fees
and expenses in connection with satisfying its obligations under this Section
4(c).

         (d) Certain Actions. The Company will not, by amendment of its Articles
of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed by it hereunder. Without limiting the
generality of the foregoing, the Company (i) will not increase the par value of
any shares of Common Stock issuable upon the exercise of this Warrant above the
Exercise Price then in effect, (ii) will take all such actions as may be
reasonably necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant and (iii) will not take any action which results in any
adjustment of the Exercise Price if the total number of shares of Common Stock
issuable after the action upon the exercise of all of the Warrants would exceed
the total number of shares of Common Stock then authorized by the Company's
Articles of Incorporation and available for the purpose of issue upon such
exercise.

         (e) Obligations Binding on Successors. This Warrant will be binding
upon any entity succeeding to the Company in one or a series of transactions by
merger, consolidation or acquisition of all or substantially all of the
Company's assets or other similar transactions.

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SECTION 5. TAXES.

         (a) The Company shall pay any and all documentary, stamp, transfer and
other similar taxes which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

         (b) Notwithstanding any other provision of this Warrant or any other
Transaction Document, for income tax purposes, any assignee or transferee shall
agree that the Company and the Company's Transfer Agent shall be permitted to
withhold from any amounts payable to such assignee or transferee any taxes
required by law to be withheld from such amounts. Unless exempt from the
obligation to do so, each assignee or transferee shall execute and deliver to
the Company or the Transfer Agent, as applicable, properly completed Form W-8 or
W-9, indicating that such assignee or transferee is not subject to back-up
withholding for United States Federal income tax purposes. Each assignee or
transferee that does not deliver such a form pursuant to the preceding sentence
shall have the burden of proving to the Company's reasonable satisfaction that
it is exempt from such requirement.

SECTION 6. WARRANT HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise
specifically provided herein, prior to the exercise of the Warrants represented
hereby, the holder of this Warrant shall not be entitled, as such, to any rights
of a shareholder of the Company, including, without limitation, the right to
vote or to consent to any action of the shareholders of the Company, to receive
dividends or other distributions, to exercise any preemptive right or to receive
dividends or other distributions, to exercise any preemptive right or to receive
any notice of meetings of shareholders of the Company, and shall not be entitled
to receive any notice of any proceedings of the Company. In addition, nothing
contained in this Warrant shall be construed as imposing any liabilities on such
holder to purchase any securities (upon exercise of this Warrant or otherwise)
or as a shareholder of the Company, whether such liabilities are asserted by the
Company or by creditors of the Company.

SECTION 7. COMPLIANCE WITH SECURITIES LAWS.

         (a) The holder of this Warrant, by the acceptance hereof, represents
and warrants that (i) it is acquiring this Warrant and (ii) upon exercise of
this Warrant will acquire the Warrant Shares then issuable upon exercise thereof
for its own account for investment only and not with a view towards, or for
resale in connection with, the public sale or distribution thereof, except
pursuant to sales registered or exempted from registration under the Securities
Act; provided, however, that by making the representations herein, the holder
does not agree to hold this Warrant or any of the Warrant Shares for any minimum
or other specific term and reserves the right to dispose of this Warrant and the
Warrant Shares at any time in accordance with or pursuant to a registration
statement or an exemption under the Securities Act. The holder of this Warrant
further represents, by acceptance hereof, that, as of this date, such holder is
an "accredited investor" as such term is defined in Rule 501(a) of Regulation D
promulgated by the Securities and Exchange Commission under the Securities Act
and was not organized for the specific purpose of acquiring the Warrants or
Warrant Shares.

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         (b) This Warrant and all the Warrant Shares 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 or any securities exchange upon which such Warrant Shares may,
at the time of such exercise, be listed) on the face thereof unless at the time
of exercise such Warrant Shares shall be registered under the Securities Act:

         THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR
         APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR
         SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR
         APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM. THE
         SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
         OR OTHER LOAN SECURED BY THE SECURITIES.

         In addition, any Warrants or Warrant Shares held by or transferred to
an "affiliate" (as defined in Rule 501(b) of Regulation D under the Securities
Act) of the Company shall be stamped or imprinted with a legend substantially in
the following form:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON WHO
         MAY BE DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144
         PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"), AND MAY BE SOLD ONLY IN COMPLIANCE WITH RULE 144,
         PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
         ACT OR PURSUANT TO A VALID EXEMPTION FROM REGISTRATION UNDER THE
         SECURITIES ACT.

         The legends set forth above shall be removed and the Company (in the
case of Warrants) shall direct the Warrant Agent to issue a new Warrant or
Warrant(s) of like tenor and exercisable for the same number of Warrant Shares,
or the Transfer Agent (in the case of Warrant Shares) shall issue a certificate
or certificates representing Warrant Shares, as appropriate, without such
legends to the holder of the Warrant(s) or Warrant Shares upon which they are
stamped, (i) if such Warrant(s) or Warrant Shares are registered for resale
under the Securities Act and are transferred or sold pursuant to such
registration, (ii) if, pursuant to a sale transaction, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the
effect that a public sale, assignment or transfer of the Warrant(s) or Warrant
Shares may be made without registration under the Securities Act, or (iii) if
the holder of the Securities has not been an "affiliate" (as defined in Rule
501(b) of Regulation D under the Securities Act) during the preceding three (3)
months, upon expiration of the two- (2) year period under Rule 144(k)
promulgated under the Securities Act (or any successor rule). In the event Rule
144(k) (or any successor rule) is amended to change the two- (2) year or three-
(3) month periods, the reference(s) in the preceding sentence shall be deemed to
be a reference to such changed period(s), provided that such change shall not
become effective if it is otherwise prohibited by, or would otherwise cause a
violation of, the then applicable federal securities laws. The Company shall not
require such opinion of counsel for the sale of Warrant(s) or Warrant Shares in
accordance with Rule 144 of the Securities Act, provided the seller provides
such

                                      -10-
<PAGE>

representations that the Company shall reasonably request confirming compliance
with the requirements of Rule 144.

SECTION 8. OWNERSHIP AND TRANSFER.

         (a) The Company shall cause the Warrant Agent to maintain at its
principal corporate trust office (or at such other office or agency of the
Company as the Company may designate by notice to the holder hereof), a register
for this Warrant (the "Warrant Register"), in which the Warrant Agent shall
record the name and address of the Person in whose name this Warrant has been
issued, as well as the name and address of each transferee. The Company may
treat the Person in whose name any Warrant is registered on the Warrant Register
as the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, but in all events recognizing any transfers made in accordance
with the terms of this Warrant.

         (b) This Warrant and all rights hereunder shall be assignable and
transferable by the holder hereof without the consent of the Company upon
surrender of this Warrant with a properly executed assignment (in the form of
Exhibit B attached hereto) at the principal corporate trust office of the
Warrant Agent (or such other office or agency of the Company as the Company may
designate in writing to the holder hereof).

         (c) The Company is obligated to register all of the Warrants and the
Warrant Shares for resale under the Securities Act pursuant to the Registration
Rights Agreement. The Warrants and the shares of Common Stock issuable upon
exercise of this Warrant shall constitute Registrable Securities (as such term
is defined in the Registration Rights Agreement). Each holder of this Warrant
shall be entitled to all of the benefits afforded to a holder of any such
Registrable Securities under the Registration Rights Agreement and such holder,
by its acceptance of this Warrant, agrees and shall agree to be bound by and to
comply with the terms and conditions of the Registration Rights Agreement
applicable to such holder as a holder of such Registrable Securities.

SECTION 9. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES ISSUABLE. The
Exercise Price, the number of Warrant Shares issuable upon the exercise of each
Warrant and the number of Warrants outstanding are subject to adjustment from
time to time upon the occurrence of the events enumerated in this Section 9.

         (a) In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common
Stock, the Exercise Price in effect at the opening of business on the date
following the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution shall be reduced by multiplying such
Exercise Price by a fraction of which (i) the numerator shall be the number of
shares of Common Stock outstanding at the close of business on the Record Date
(as defined in Section 9(f) of this Warrant) fixed for such determination and
(ii) the denominator shall be the sum of such number of shares and the total
number of shares constituting such dividend or other distribution, such
reduction in the Exercise Price to become effective immediately after the
opening of business on the day following the Record Date. If any dividend or
distribution of the type described in this Section 9(a) of this Warrant is
declared but not so paid or made, the Exercise Price shall again be adjusted to
the Exercise Price which would then be in effect if such dividend or
distribution had not been declared.

                                      -11-
<PAGE>

         (b) In case the outstanding shares of Common Stock shall be subdivided
into a greater number of shares of Common Stock, the Exercise Price in effect at
the opening of business on the day following the day upon which such subdivision
becomes effective shall be proportionately reduced, and conversely, in case
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Exercise Price in effect at the opening of business
on the day following the day upon which such combination becomes effective shall
be proportionately increased, such reduction or increase, as the case may be, to
become effective immediately after the opening of business on the day following
the day upon which such subdivision or combination becomes effective.

         (c) In case the Company shall issue rights or warrants to all holders
of its outstanding shares of Common Stock entitling them to subscribe for or
purchase shares of Common Stock at a price per share less than the Current
Market Price (as defined in Section 9(f) of this Warrant) on the Record Date
fixed for the determination of stockholders entitled to receive such rights or
warrants, the Exercise Price shall be adjusted so that the same shall equal the
price determined by multiplying the Exercise Price in effect at the opening of
business on the date after such Record Date by a fraction (i) the numerator of
which shall be the sum of the number of shares of Common Stock outstanding at
the close of business on the Record Date plus the number of shares that the
aggregate offering price of the total number of shares so offered for
subscription or purchase would purchase at such Current Market Price and (ii)
the denominator of which shall be the sum of the number of shares of Common
Stock outstanding at the close of business on the Record Date plus the total
number of additional shares of Common Stock so offered for subscription or
purchase. Such adjustment shall become effective immediately after the opening
of business on the day following the Record Date fixed for determination of
stockholders entitled to receive such rights or warrants. To the extent that
shares of Common Stock are not delivered pursuant to such rights or warrants,
upon the expiration or termination of such rights or warrants, the Exercise
Price shall be readjusted to the Exercise Price that would then be in effect had
the adjustments made upon the issuance of such rights or warrants been made on
the basis of delivery of only the number of shares of Common Stock actually
delivered. In the event that such rights or warrants are not so issued, the
Exercise Price shall again be adjusted to be the Exercise Price that would then
be in effect if such date fixed for the determination of stockholders entitled
to receive such rights or warrants had not been fixed. In determining whether
any rights or warrants entitle the holders to subscribe for or purchase shares
of Common Stock at less than the Current Market Price, and in determining the
aggregate offering price of such shares of Common Stock, there shall be taken
into account any consideration received for such rights or warrants, the value
of such consideration, if other than cash, to be determined in good faith by the
Company's Board of Directors.

         (d) In case the Company shall, by dividend or otherwise, distribute to
all holders of its Common Stock shares of any class of capital stock of the
Company (other than any dividends or distributions to which Section 9(a) of this
Warrant applies) or evidences of its indebtedness or other assets (including
securities, but excluding (1) any rights or warrants referred to in Section 9(c)
of this Warrant and (2) dividends and distributions paid exclusively in cash
(except as set forth in Sections 9(e) and 9(f) of this Warrant, (the foregoing
hereinafter in this Section 9(d) called the "Securities")), unless the Company
elects to reserve such Securities for distribution to the holders upon exercise
of the Warrants so that any such holder converting Warrants will receive upon
such exercise, in addition to the shares of Common Stock to which such holder is
entitled, the amount and

                                      -12-
<PAGE>

kind of such Securities which such holder would have received if such holder had
exercised its Warrants into Common Stock immediately prior to the Record Date
for such distribution of the Securities, then, in each such case, the Exercise
Price shall be reduced so that the same shall be equal to the price determined
by multiplying the Exercise Price in effect immediately prior to the close of
business on the Record Date with respect to such distribution by a fraction the
numerator of which shall be the Current Market Price (as defined in Section 9(f)
of this Warrant) on such date less the fair market value (as determined in good
faith by the Company's Board of Directors, whose determination shall be
conclusive) on such date of the portion of the Securities so distributed
applicable to one share of Common Stock and the denominator of which shall be
such Current Market Price, such reduction to become effective immediately prior
to the opening of business on the day following the Record Date; provided,
however, that in the event the then fair market value (as determined in good
faith by the Company's Board of Directors, whose determination shall be
conclusive) of the portion of the Securities so distributed applicable to one
share of Common Stock is equal to or greater than the Current Market Price on
the Record Date, in lieu of the foregoing adjustment, adequate provision shall
be made so that each holder shall have the right to receive upon conversion of a
Warrant (or any portion thereof) the amount of Securities such holder would have
received had such holder converted such Warrant (or portion thereof) immediately
prior to such Record Date.

         In the event that such dividend or distribution is not so paid or made,
the Exercise Price shall again be adjusted to be the Exercise Price which would
then be in effect if such dividend or distribution had not been declared. If a
majority of the independent members of the Company's Board of Directors
determines the fair market value of any distribution for purposes of this
Section 9(d) by reference to the actual or when issued trading market for any
securities comprising all or part of such distribution, it must in doing so
consider the prices in such market over the same period (the "Reference Period")
used in computing the Current Market Price pursuant to Section 9(f) of this
Warrant to the extent possible, unless a majority of the independent members of
the Company's Board of Directors determines in good faith that determining the
fair market value during the Reference Period would not be in the best interest
of the holders.

         In the event that the Company implements a new stockholder rights plan,
such rights plan shall provide that upon exercise of the Warrants the holders
will receive, in addition to the Common Stock issuable upon such exercise, the
rights issued under such rights plan (as if the holder had exercised the Warrant
prior to implementing the rights plan and notwithstanding the occurrence of an
event causing such rights to separate from the Common Stock at or prior to the
time of exercise). Any distribution of rights or warrants pursuant to a
stockholder rights plan complying with the requirements set forth in the
immediately preceding sentence of this paragraph shall not constitute a
distribution of rights or warrants for the purposes of this Section 9(d).

         Rights or warrants distributed by the Company to all holders of Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events
("Trigger Event"), (i) are deemed to be transferred with such shares of Common
Stock, (ii) are not exercisable, and (iii) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for
purposes of this Section 9(d) (and no adjustment to the Exercise Price under
this Section 9(d) will be required) until the occurrence of the earliest

                                      -13-
<PAGE>

Trigger Event. If such right or warrant is subject to subsequent events, upon
the occurrence of which such right or warrant shall become exercisable to
purchase different securities, evidences of indebtedness or other assets or
entitle the holder to purchase a different number or amount of the foregoing or
to purchase any of the foregoing at a different purchase price, then the
occurrence of each such event shall be deemed to be the date of issuance and
record date with respect to a new right or warrant (and a termination or
expiration of the existing right or warrant without exercise by the holder
thereof). In addition, in the event of any distribution (or deemed distribution)
of rights or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto, that resulted in an
adjustment to the Exercise Price under this Section 9(d), (1) in the case of any
such rights or warrants that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Exercise Price shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder of Common
Stock with respect to such rights or warrants (assuming such holder had retained
such rights or warrants), made to all holders of Common Stock as of the date of
such redemption or repurchase, and (2) in the case of such rights or warrants
all of which shall have expired or been terminated without exercise, the
Exercise Price shall be readjusted as if such rights and warrants had never been
issued.

         For purposes of this Section 9(d) and Sections 9(a) and (c) of this
Warrant, any dividend or distribution to which this Section 9(d) is applicable
that also includes shares of Common Stock, or rights or warrants to subscribe
for or purchase shares of Common Stock to which Section 9(a) or (c) of this
Warrant applies (or both), shall be deemed instead to be (1) a dividend or
distribution of the evidences of indebtedness, assets, shares of capital stock,
rights or warrants other than such shares of Common Stock or rights or warrants
to which Section 9(c) of this Warrant applies (and any Exercise Price reduction
required by this Section 9(e) with respect to such dividend or distribution
shall then be made) immediately followed by (2) a dividend or distribution of
such shares of Common Stock or such rights or warrants (and any further Exercise
Price reduction required by Sections 9(a) and (c) of this Warrant with respect
to such dividend or distribution shall then be made), except (A) the Record Date
of such dividend or distribution shall be substituted as "the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution," "Record Date fixed for such determination" and "Record Date"
within the meaning of Section 9(a) of this Warrant and as "the date fixed for
the determination of stockholders entitled to receive such rights or warrants,"
"the Record Date fixed for the determination of the stockholders entitled to
receive such rights or warrants" and "such Record Date" within the meaning of
Section 9(c) of this Warrant and (B) any shares of Common Stock included in such
dividend or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning of Section
9(a) of this Warrant.

         (e) Subject to the provisions of Section 9(i), in case the Company
shall, by dividend or otherwise, distribute to all holders of its Common Stock
cash (excluding any cash that is distributed upon a merger or consolidation to
which Section 10 of this Warrant applies or as part of a distribution referred
to in Section 9(d) of this Warrant), then, and in each such case, immediately
after the close of business on such date, the Exercise Price shall be reduced so
that the same shall equal the price determined by multiplying the Exercise Price
in effect immediately prior to the close of business on such Record Date by a
fraction (i) the numerator of which shall be equal to the

                                      -14-
<PAGE>

Current Market Price on the Record Date less an amount equal to the quotient of
(x) the amount of such cash distribute to all holders of its Common Stock, and
(y) the number of shares of Common Stock outstanding on the Record Date and (ii)
the denominator of which shall be equal to the Current Market Price on such
date; provided, however, that in the event the portion of the cash so
distributed applicable to one share of Common Stock is equal to or greater than
the Current Market Price of the Common Stock on the Record Date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each holder shall
have the right to receive upon exercise of a Warrant (or any portion thereof)
the amount of cash such holder would have received had such holder exercised
such Warrant (or portion thereof) immediately prior to such Record Date. In the
event that such dividend or distribution is not so paid or made, the Exercise
Price shall again be adjusted to be the Exercise Price that would then be in
effect if such dividend or distribution had not been declared.

         (f) For purposes of this Section 9, the following terms shall have the
meanings indicated:

                  (1) "Closing Price" with respect to any securities on any day
shall mean the closing sale price regular way on such day or, in case no such
sale takes place on such day, the average of the reported closing bid and asked
prices, regular way, in each case on the Nasdaq National Market or New York
Stock Exchange, as applicable, or, if such security is not listed or admitted to
trading on such National Market or Exchange, on the principal national security
exchange or quotation system on which such security is quoted or listed or
admitted to trading, or, if not quoted or listed or admitted to trading on any
national securities exchange or quotation system, the average of the closing bid
and asked prices of such security on the over-the-counter market on the day in
question as reported by the National Quotation Bureau Incorporated, or a similar
generally accepted reporting service, or if not so available, in such manner as
furnished by any New York Stock Exchange member firm selected from time to time
by the Board of Directors for that purpose, whose determination shall be
conclusive

                  (2) "Current Market Price" shall mean the average of the daily
Closing Prices per share of Common Stock for the ten (10) consecutive Trading
Days immediately prior to the date in question; provided, however, that (1) if
the "ex" date (as hereinafter defined) for any event (other than the issuance or
distribution requiring such computation) that requires an adjustment to the
Exercise Price pursuant to Section 9(a), (b), (c), (d) or (e) of this Warrant
occurs during such ten (10) consecutive Trading Days, the Closing Price for each
Trading Day prior to the "ex" date for such other event shall be adjusted by
multiplying such Closing Price by the same fraction by which the Exercise Price
is so required to be adjusted as a result of such other event, (2) if the "ex"
date for any event (other than the issuance or distribution requiring such
computation) that requires an adjustment to the Exercise Price pursuant to
Section 9(a), (b), (c), (d) or (e) of this Warrant occurs on or after the "ex"
date for the issuance or distribution requiring such computation and prior to
the day in question, the Closing Price for each Trading Day on and after the
"ex" date for such other event shall be adjusted by multiplying such Closing
Price by the reciprocal of the fraction by which the Exercise Price is so
required to be adjusted as a result of such other event, and (3) if the "ex"
date for the issuance or distribution requiring such computation is prior to the
day in question, after taking into account any adjustment required pursuant to
clause (1) or (2) of this proviso, the Closing Price for each Trading Day on or
after such "ex" date shall be adjusted by adding thereto the amount of any cash
and the fair market value (as determined in good faith by the Company's Board of
Directors in a manner consistent with any determination of such value for
purposes of Section 9(d) of this

                                      -15-
<PAGE>

Warrant, whose determination shall be conclusive) of the evidences of
indebtedness, shares of capital stock or assets being distributed applicable to
one share of Common Stock as of the close of business on the day before such
"ex" date. For purposes of this paragraph, the term "ex" date, (1) when used
with respect to any issuance or distribution, means the first date on which the
Common Stock trades regular way on the relevant exchange or in the relevant
market from which the Closing Price was obtained without the right to receive
such issuance or distribution and (2) when used with respect to any subdivision
or combination of shares of Common Stock, means the first date on which the
Common Stock trades regular way on such exchange or in such market after the
time at which such subdivision or combination becomes effective. Notwithstanding
the foregoing, whenever successive adjustments to the Exercise Price are called
for pursuant to this Section 9, such adjustments shall be made to the Current
Market Price as may be necessary or appropriate to effectuate the intent of this
Section 9 and to avoid unjust or inequitable results as determined in good faith
by the Company's Board of Directors.

                  (3) "fair market value" shall mean the amount which a willing
buyer would pay a willing seller in an arm's length transaction.

                  (4) "Record Date" shall mean, with respect to any dividend,
distribution or other transaction or event in which the holders of Common Stock
have the right to receive any cash, securities or other property or in which the
Common Stock (or other applicable security) is exchanged for or converted into
any combination of cash, securities or other property, the date fixed for
determination of stockholders entitled to receive such cash, securities or other
property (whether such date is fixed by the Company's Board of Directors or by
statute, contract or otherwise).

         (g) The Company may make such reductions in the Exercise Price, in
addition to those required by Section 9(a), (b), (c), (d) or (e) of this
Warrant, as the Company's Board of Directors considers to be advisable to avoid
or diminish any income tax to holders of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock (or rights to
acquire stock) or from any event treated as such for income tax purposes.

         (h) To the extent permitted by applicable law, the Company from time to
time may reduce the Exercise Price by any amount for any period of time if the
period is at least twenty (20) days, the reduction is irrevocable during such
period and the Company's Board of Directors shall have made a determination that
such reduction would be in the best interests of the Company, which
determination shall be conclusive and described in a Board Resolution. Whenever
the Exercise Price is reduced pursuant to the preceding sentence, the Company
shall mail or cause to be mailed to the holder of each Warrant at his last
address in the Warrant Register a notice of the reduction at least five (5) days
prior to the date the reduced Exercise Price is to take effect, and such notice
shall state the reduced Exercise Price and the period during which it will be in
effect.

         (i) No adjustment in the Exercise Price shall be required under this
Section 9 unless such adjustment would require an increase or decrease of at
least one percent (1%) in the Exercise Price; provided, however, that any
adjustments which by reason of this Section 9(i) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section 9 shall be made by the Company and shall be
made to the nearest cent or to the

                                      -16-
<PAGE>

nearest one hundredth of a share, as the case may be. No adjustment need be made
for a change in the par value of the Common Stock.

         (j) Notice to Holders of Warrants Prior to Certain Actions. In case:

                  (1) the Company shall declare a dividend (or any other
distribution) on its Common Stock that would require an adjustment in the
Exercise Price pursuant to this Section 9; or

                  (2) the Company shall authorize the granting to the holders of
its Common Stock of rights or warrants to subscribe for or purchase any share of
any class or any other rights or warrants; or

                  (3) of any reclassification of the Common Stock of the Company
(other than a subdivision or combination of its outstanding Common Stock, or a
change from par value to no par value), or of any consolidation or merger to
which the Company is a party and for which approval of any shareholders of the
Company is required, or of the sale and transfer of all or substantially all of
the assets of the Company; or

                  (4) of the voluntary or involuntary dissolution, liquidation
or winding-up of the Company;

         the Company shall mail or cause to be mailed to the holder at such
address appearing in the Warrant Register as promptly as possible but in any
event at least fifteen (15) days prior to the applicable date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution or rights are to be determined, or
(y) the date on which such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding-up is expected to become effective
or occur, and the date as of which it is expected that holders of Common Stock
of record shall be entitled to exchange their Common Stock for securities or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation or winding-up and the Company shall
contemporaneously issue a press release through PRNewswire or Bloomberg
Financial Markets containing substantially the same information as the notice
described above. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such dividend, distribution,
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up. In addition, whenever the Exercise Price is adjusted
as provided in this Section 9, the Company shall prepare a notice of such
adjustment of the Exercise Price setting forth the adjusted Exercise Price and
the date on which each adjustment becomes effective and shall mail such notice
of such adjustment of the Exercise Price to the holder of each Warrant at his
last address in the Warrant Register within twenty (20) days of the effective
date of such adjustment. Failure to deliver such notice shall not effect the
legality or validity of any such adjustment.

         (k) In any case in which this Section 9 provides that an adjustment
shall become effective immediately after a Record Date for an event, the Company
may defer until the occurrence of such event (i) issuing to the holder of any
Warrant exercised after such Record Date and before the occurrence of such event
the additional shares of Common Stock issuable upon such exercise by reason of
the adjustment required by such event over and above the Common Stock issuable
upon

                                      -17-
<PAGE>

such conversion before giving effect to such adjustment and (ii) paying to such
holder any amount in cash in lieu of any fractions of shares of Common Stock
pursuant to Section 2(c) of this Warrant.

         (l) For purposes of this Section 9, the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Common Stock. The Company will not pay
any dividend or make any distribution on shares of Common Stock held in the
treasury of the Company.

         (m) Upon each adjustment of the Exercise Price pursuant to this Section
9, each Warrant shall thereupon evidence the right to purchase that number of
shares of Common Stock (calculated to the nearest hundredth of a share) obtained
by multiplying the number of shares of Common Stock purchasable immediately
prior to such adjustment upon exercise of the Warrant by the Exercise Price in
effect immediately prior to such adjustment and dividing the product so obtained
by the Exercise Price in effect immediately after such adjustment. The
adjustment pursuant to this Section 9(m) to the number of shares of Common Stock
purchasable upon exercise of a Warrant shall be made each time an adjustment of
the Exercise Price is made pursuant to this Section 9 (or would be made but for
Section 9(k) of this Warrant).

SECTION 10. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE. If any of
the following events occur, namely (i) any reclassification or change of the
outstanding shares of Common Stock (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination), (ii) any consolidation, merger or combination of
the Company with another person as a result of which holders of Common Stock
shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock (other
than as a result of a change in name, a change in par value or a change in the
jurisdiction of incorporation), (iii) any statutory exchange, as a result of
which holders of Common Stock generally shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock (such transaction, a "Statutory Exchange"), (iv)
any sale or conveyance of the properties and assets of the Company as, or
substantially as, an entirety to any other person as a result of which holders
of Common Stock shall be entitled to receive stock, securities or other property
or assets (including cash) with respect to or in exchange for such Common Stock,
then the Company or the successor or purchasing person, as the case may be,
shall issue a replacement Warrant providing that such Warrant shall be
exercisable for the kind and amount of shares of stock and other securities or
property or assets (including cash) receivable upon such reclassification,
change, consolidation, merger, combination, Statutory Exchange, sale or
conveyance by a holder of a number of shares of Common Stock issuable upon
exercise of such Warrants (assuming, for such purposes, a sufficient number of
authorized shares of Common Stock available for issuance upon exercise of all
such Warrants) immediately prior to such reclassification, change,
consolidation, merger, combination, Statutory Exchange, sale or conveyance
assuming such holder of Common Stock did not exercise his rights of election, if
any, that holders of Common Stock who were entitled to vote or consent to such
transaction had as to the kind or amount of securities, cash or other property
receivable upon such consolidation, merger, combination, Statutory Exchange,
sale or conveyance (provided that, if the kind or amount of securities, cash or
other property receivable upon such consolidation, merger, combination,
Statutory Exchange, sale or conveyance is not the same for each share of Common

                                      -18-
<PAGE>

Stock in respect of which such rights of election shall not have been exercised
("non-electing share"), then for the purposes of this Section 10, the kind and
amount of securities, cash or other property receivable upon such consolidation,
merger, combination, Statutory Exchange, sale or conveyance for each
non-electing share shall be deemed to be the kind and amount so receivable per
share by a plurality of the non-electing shares). Such replacement Warrant shall
provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in Section 9 of this Warrant. If, in
the case of any such reclassification, change, consolidation, merger,
combination, Statutory Exchange, sale or conveyance, the stock or other
securities and assets receivable thereupon by a holder of shares of Common Stock
shall include shares of stock or other securities and assets of a corporation
other than the successor or purchasing person, as the case may be, in such
reclassification, change, consolidate, merger, combination, Statutory Exchange,
sale or conveyance, then such replacement Warrant shall also be executed by such
other person and shall contain such additional provisions to protect the
interests of the holder of the Warrants as the Company's Board of Directors
shall reasonably consider necessary by reason of the foregoing. The Exercise
Price for the stock and other securities, property and assets (including cash)
so receivable upon such event shall be an amount equal to the Exercise Price
immediately prior to such event.

         The Company shall mail or cause to be mailed such replacement Warrant
to each holder of Warrants, at such holder's address appearing in the Warrant
Register within twenty (20) days after execution thereof. Failure to deliver
such notice shall not affect the legality or validity of such replacement
Warrant.

         The above provisions of this Section 10 shall similarly apply to
successive reclassifications, changes, consolidations, mergers, combinations,
sales and conveyances.

         If this Section 10 applies to any event or occurrence, Section 9 of
this Warrant shall not apply.

SECTION 11. LOST, STOLEN, MUTILATED OR DESTROYED WARRANTS. If this Warrant is
lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt of
an indemnification undertaking or other form of security reasonably acceptable
to the Company (or in the case of a mutilated Warrant, the Warrant), cause the
Warrant Agent to issue a new Warrant of like denomination and tenor as this
Warrant so lost, stolen, mutilated or destroyed. Notwithstanding the foregoing,
if this Warrant is lost by, stolen from or destroyed by the original holder
hereof, the affidavit of such original holder setting forth the circumstances of
such loss, theft or destruction shall be accepted as satisfactory evidence
thereof, and no indemnification bond or other security shall be required by the
Company as a condition to the execution and delivery by the Company of a new
Warrant to such original holder other than such original holder's unsecured
written agreement to indemnify the Company solely for losses actually incurred
by the Company as a direct consequence of the loss, theft or destruction of the
Warrant.

SECTION 12. NOTICE. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Warrant must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile; or (iii) one
(1) Business Day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same. If
notice is to be sent to the

                                      -19-
<PAGE>
Company, the holder shall use its reasonable best efforts to provide additional
copies to the individuals listed below; provided, however, that the failure of
such holder to send such additional copies shall in no way limit the
effectiveness of any notice sent to the Company to the attention of Chief
Financial Officer as provided for below. The addresses and facsimile numbers for
such communications shall be:

              If to the Company:
                       Dave & Buster's, Inc.
                       2481 Manana Drive
                       Dallas, Texas  75220
                       Telephone:  (214) 357-9588
                       Facsimile:  (214) 357-1536
                       Attention:  John Davis, Esq.
                                   Senior Vice President and General Counsel

              with a copy to:
                       Hallett & Perrin, P.C.
                       2001 Bryan Street, Suite 3900
                       Dallas, Texas  75201
                       Telephone:  (214) 922-4120
                       Facsimile:  (214) 922-4170
                       Attention:  Bruce H. Hallett, Esq.

              If to the Transfer Agent:
                       Mellon Investor Services LLC
                       Overpeck Centre
                       Ridgefield Park, NJ 07660
                       Telephone:  (   )    -
                                    ---  --- ----
                       Facsimile:  (   )    -
                                    ---  --- ----
                       Attention:
                                   ---------------

              If to the Warrant Agent:
                       The Bank of New York
                       101 Barclay Street, Floor 8W
                       New York, New York  10286
                       Telephone:  (212) 815-6907
                       Facsimile:  (212) 815-5707
                       Attention:  Corporate Trust Administration

         If to a holder of this Warrant, to it at the address and facsimile
number set forth on the Schedule of Buyers to the Securities Purchase Agreement,
with copies to such holder's representatives as set forth on such Schedule of
Buyers, or at such other address and facsimile as shall be delivered to the
Company upon the issuance or transfer of this Warrant. Each party shall provide
five days' prior written notice to the other party of any change in address or
facsimile number. Written confirmation of receipt (A) given by the recipient of
such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile

                                      -20-
<PAGE>

machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission or (C) provided by a nationally recognized
overnight delivery service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

SECTION 13. AMENDMENTS. This Warrant and any term hereof may be amended,
changed, waived, discharged, or terminated only by an instrument in writing
signed by the Company and holders of a majority of Warrant Shares represented by
all Warrants. Such amendment, change, waiver, discharge or termination shall be
binding on the Company and all of the Warrant holder's assignees and
transferees; provided, however, that no such action may increase the Exercise
Price, including by a waiver of or an amendment to Section 9 of this Agreement,
or decrease the number of shares or class of stock issuable upon exercise of any
Warrants without the written consent of the holder of such Warrant. No waivers
of any term, condition or provision of this Warrant in any one or more instances
shall be deemed to be or construed as a further or continuing waiver of any such
term, condition or provision.

SECTION 14. GOVERNING LAW; JURISDICTION; JURY TRIAL. The corporate laws of the
State of Missouri shall govern all issues concerning the relative rights of the
Company and its stockholders. All other questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be governed by
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting in the City of New York, borough of Manhattan, for the adjudication of
any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Warrant and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Warrant shall
be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Warrant in that jurisdiction or the validity or enforceability
of any provision of this Warrant in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

SECTION 15. DESCRIPTIVE HEADINGS. The headings of this Warrant are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                                      -21-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed as of day and year first above written.

                                       "COMPANY"

                                       DAVE & BUSTER'S, INC.

                                       By:
                                            ------------------------------------
                                       Its:
                                            ------------------------------------

                                      S-1
<PAGE>

                              EXHIBIT A TO WARRANT

                             FORM OF EXERCISE NOTICE

         The undersigned holder hereby exercises the right to purchase
______________ shares of Common Stock ("Warrant Shares") of DAVE & BUSTER'S,
INC, a Missouri corporation (the "Company"), evidenced by the attached Warrant
(the "Warrant"). Capitalized terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant.

         1. Form of Exercise Price. The Holder intends that payment of the
Exercise Price shall be made as:

           ______   "Cash Exercise" with respect to ________ Warrant Shares;
                    and/or

           ______   "Cashless Exercise" with respect to ______ Warrant Shares
                    (to the extent permitted by the terms of the Warrant).

         2. Payment of Exercise Price. In the event that the holder has elected
a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the sum of $___________________ to the
Company in accordance with the terms of the Warrant.

         3. Delivery of Warrant Shares. The holder of this warrant has sold or
will sell the shares of common stock issuable pursuant to this Notice pursuant
to a registration statement or an exemption from registration under the
Securities Act of 1933, as amended.

         4. Private Placement Representations. The holder of this Warrant
confirms the continuing validity of, and reaffirms as of the date hereof, its
representations and warranties set forth in Section 7 of the Warrant.

Date: _______________, ____

---------------------------------               --------------------------------
Name of Registered Holder                       Tax ID of Registered Holder
                                                (if applicable)

By:
      ---------------------------
Its:
      ---------------------------

                                      A-1
<PAGE>

                                 ACKNOWLEDGMENT

         The Company hereby acknowledges this Exercise Notice and hereby directs
Mellon Investor Services LLC to issue the above indicated number of shares of
Common Stock in accordance with the Irrevocable Transfer Agent Instructions
dated August 7, 2003 from the Company and acknowledged and agreed to by
[_____________].

                                          DAVE & BUSTERS'S, INC.

                                          By:
                                               ---------------------------------
                                          Its:
                                               ---------------------------------

                                       A-2
<PAGE>

                              EXHIBIT B TO WARRANT

                               FORM OF ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of DAVE & BUSTER'S, INC., a Missouri
corporation, represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint ______________, attorney to transfer the
warrants of said corporation, with full power of substitution in the premises.

Dated:  _________, 200_

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

                                             By:
                                                  ------------------------------
                                             Its:
                                                  ------------------------------

                                             Taxpayer I.D. No. or Soc. Sec. No:

                                             -----------------------------------
                                             Address:

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

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

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

          Name in which new Warrant(s) should be registered:

          Right to Purchase No. of Shares of Common Stock:
                                                            -----------------
          Name:
                 -----------------------------------------
          Taxpayer I.D. No. or Soc. Sec. No:
                                              ------------
          Address:
                   ----------------------------------------

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

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

          The balance of the attached Warrant not so transferred shall be
returned to the transferor in the form of a new Warrant reflecting such reduced
amount.<PAGE>
                                                                     EXHIBIT 4.3

================================================================================

                              DAVE & BUSTERS, INC.,

                                 as the Company

                        U.S. BANCORP PIPER JAFFRAY INC.,

                                as PIPER JAFFRAY

                                       and

                                     BUYERS,

                                as defined herein

                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of August 6, 2003

                                  Common Stock

================================================================================

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement"), is
entered into as of August 6, 2003, by and among Dave & Busters, Inc., a Missouri
corporation (the "Company"), U.S. Bancorp Piper Jaffray Inc. ("Piper Jaffray")
and the buyers listed on the Schedule of Buyers attached hereto as Exhibit A
(each, a "Buyer" and, collectively, the "Buyers").

                  THE PARTIES TO THIS AGREEMENT enter into this agreement on the
basis of the following facts, intentions and understanding:

                  A. The Company and the Buyers entered into that certain
Securities Purchase Agreement of even date herewith (the "Securities Purchase
Agreement"), and, upon the terms and subject to the conditions of the Securities
Purchase Agreement, the Company has agreed (i) to issue and sell to the Buyers
an aggregate of up to (A) Thirty Million United States Dollars ($30,000,000) of
the Company's 5.0% Convertible Subordinated Notes due 2008 (such Convertible
Subordinated Notes, as the same may be amended, modified or supplemented from
time to time in accordance with the terms thereof (the "Notes")), which shall be
convertible into shares of common stock, $0.01 par value per share (the "Common
Stock") of the Company (as converted, the "Conversion Shares"), and (B) Warrants
(such Warrants, as the same may be amended, modified or supplemented from time
to time in accordance with the terms thereof, the "Buyer Warrants") to purchase
up to Five Hundred Twenty-Two Thousand Four Hundred Forty-Six (522,446) shares
of Common Stock (as exercised collectively, the "Buyer Warrant Shares"), and
(ii) to issue to Piper Jaffray Warrants (such Warrants, as the same may be
amended, modified or supplemented from time to time in accordance with the terms
thereof, the "Piper Jaffray Warrants" and, together with the Buyer Warrants, the
"Warrants") to purchase the number of shares of Common Stock set forth on the
Schedule of Fees attached as Exhibit D to the Securities Purchase Agreement (as
exercised collectively, the "Piper Jaffray Warrant Shares" and, together with
the Buyer Warrant Shares, the "Warrant Shares").

                  B. To induce the Buyers to execute and deliver the Securities
Purchase Agreement and to induce Piper Jaffray to act as the Company's exclusive
placement agent, the Company has agreed to provide certain registration rights
to the Buyers and Piper Jaffray under the Securities Act of 1933, as amended,
and the rules and regulations thereunder, or any similar successor statute
(collectively, the "Securities Act"), and applicable state securities laws.

                  NOW, THEREFORE, in consideration of the promises and the
mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company, Piper
Jaffray and each of the Buyers hereby agree as follows:

                  SECTION 1. DEFINITIONS. As used in this Agreement, the
following terms shall have the following meanings:

                  (a) "Business Day" means any day other than Saturday, Sunday
or any other day on which commercial banks in The City of New York are required
by law to remain closed

                                       1
<PAGE>

                  (b) "Commission" means the Securities and Exchange Commission.

                  (c) "Investor" means Piper Jaffray and each Buyer and any
transferee or assignee thereof to whom Piper Jaffray or a Buyer assigns its
rights under this Agreement and who agrees to become bound by the provisions of
this Agreement in accordance with Section 9 of this Agreement, and any
subsequent transferee or assignee thereof to whom a transferee or assignee
assigns its rights under this Agreement and who agrees to become bound by the
provisions of this Agreement in accordance with Section 9 of this Agreement.

                  (d) "Person" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization or association and governmental or any department or agency
thereof.

                  (e) "register," "registered," and "registration" means a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the Securities Act and pursuant
to Rule 415 under the Securities Act or any successor rule providing for
offering securities on a continuous or delayed basis ("Rule 415"), and the
declaration or ordering of effectiveness of such Registration Statements by the
Commission.

                  (f) "Registrable Securities" means (i) the Notes, (ii) the
Warrants, (iii) the Conversion Shares issued or issuable upon conversion of the
Notes, (iv the Warrant Shares issued or issuable upon exercise of the Warrants,
(v) any shares of capital stock issued or issuable with respect to the
Conversion Shares or the Warrant Shares as a result of any stock split, stock
dividend, recapitalization, exchange or similar event or otherwise, without
regard to any limitations on conversions of the Notes or the exercise of the
Warrants, and (vi) any shares of capital stock of any entity issued in respect
of the capital stock referenced in the immediately preceding clauses (i), (ii),
(iii), (iv) and (v) as a result of a merger, consolidation, sale of assets, sale
or exchange of capital stock or other similar transaction; provided, that any
Registrable Securities that have been sold pursuant to a Registration Statement
or Rule 144 promulgated under the Securities Act shall no longer be Registrable
Securities.

                  (g) "Registration Statement" means a registration statement or
registration statements of the Company filed under the Securities Act and
covering all of the Registrable Securities.

                  (h) Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Securities Purchase
Agreement.

                  SECTION 2. REGISTRATION.

                  (a) Mandatory Registration. The Company shall use its best
efforts to prepare and, as soon as practicable but in no event later than 30
calendar days after the Closing Date (as that term is defined in the Securities
Purchase Agreement) (the "Filing Deadline"), file with the Commission a
Registration Statement on Form S-3 covering the resale of all of the Registrable
Securities. In the event that Form S-3 is unavailable for such a registration,
the Company shall use such other form as is available for such a registration,
subject to the provisions of Section 2(d) of this Agreement. The Registration
Statement prepared pursuant hereto shall register the Registrable Securities for
resale, including at least 105% of the number of shares of Common

                                       2

<PAGE>

Stock issuable upon conversion of the Notes and exercise of the Warrants by the
Investors from time to time in accordance with the methods of distribution
elected by such Investors or such other amount as required by Section 4(e) of
the Securities Purchase Agreement. The Company shall use reasonable efforts to
have the Registration Statement declared effective by the Commission as soon as
practicable, but not later than 90 calendar days after the Closing Date (the
"Effectiveness Deadline"); provided, however, that if the Commission reviews the
Registration Statement and requires the Company to make modifications thereto,
then the Effectiveness Deadline shall be extended to 120 calendar days after the
Closing Date. In the event that, after the Closing Date and before the
Registration Statement is declared effective, the offices of the Commission are
closed due to acts of God, war or terror, the Effectiveness Deadline will be
extended by a number of days equal to the days of any such closure.

                  (b) Allocation of Conversion Shares and Warrant Shares. The
initial number of Conversion Shares and Warrant Shares included in any
Registration Statement and each increase in the number thereof included therein
shall be allocated pro rata among the Investors based on the number of
Registrable Securities held by each Investor at the time the Registration
Statement covering such initial number of Registrable Securities or increase
thereof is declared effective by the Commission. In the event that an Investor
sells or otherwise transfers any of such Investor's Registrable Securities, each
transferee shall be allocated the portion of the then remaining number of
Conversion Shares and Warrant Shares included in such Registration Statement
allocable to the transferor. In no event shall the Company include any
securities other than Registrable Securities on any Registration Statement
without the prior written consent of the Investors holding at least a majority
of the Conversion Shares and Warrant Shares, determined as if all of the Notes
held by Investors then outstanding have been converted into Conversion Shares
and all Warrants then outstanding have been exercised for Warrant Shares without
regard to any limitations on conversion of the Notes or exercise of the
Warrants.

                  (c) Legal Counsel. Subject to Section 5 of this Agreement, the
Investors holding at least a majority of the Conversion Shares and Warrant
Shares, determined as if all of the Notes held by Investors then outstanding
have been converted into Conversion Shares and all Warrants then outstanding
have been exercised for Warrant Shares without regard to any limitations on
conversion of the Notes or on the exercise of the Warrants, shall have the right
to select one legal counsel to review and comment upon any registration pursuant
to this Agreement (the "Legal Counsel"), which the Investors agree shall be
Gibson, Dunn & Crutcher LLP or such other counsel as thereafter designated in
writing by the holders of at least a majority of the Conversion Shares and
Warrant Shares, determined as set forth above. Gibson, Dunn & Crutcher LLP, or
any other counsel designated in writing by the holders of at least a majority of
the Conversion Shares and Warrant Shares, shall not represent any Investor that
sends such counsel written notice that such Investor does not wish such counsel
to represent it in connection with the matters discussed in this Section 2(c).
The Investors, other than any Investor that delivers the notice discussed in the
preceding sentence, hereby waive any conflict of interest or potential conflict
of interest that may arise as a result of the representation of such Investors
by Gibson, Dunn & Crutcher LLP in connection with the subject matter of this
Agreement. The provision will not prohibit any other counsel to an Investor from
reviewing and commenting on any registration filed pursuant to this Agreement at
no cost to the Company.

                                       3
<PAGE>

                  (d) Ineligibility for Form S-3. If Form S-3 is not available
for the registration of the resale of the Registrable Securities hereunder or
the Company is not permitted by the Securities Act or the Commission to use Form
S-3, then the Company shall (i) register the resale of the Registrable
Securities on another appropriate form reasonably acceptable to the holders of
at least a majority of the Conversion Shares and Warrant Shares, determined as
if all of the Notes held by Investors then outstanding have been converted into
Conversion Shares and all Warrants then outstanding have been exercised for
Warrant Shares without regard to any limitations on conversion of the Notes or
on the exercise of the Warrants and (ii) undertake to register the Registrable
Securities on Form S-3 as soon as such form is available; provided, however,
that the Company shall maintain the effectiveness of the Registration Statement
then in effect until such time as a Registration Statement on Form S-3 covering
all of the Registrable Securities has been declared effective by the Commission
or, if earlier, until the end of the Registration Period (as defined in Section
3(a) .

                  (e) Sufficient Number of Shares Registered. In the event the
number of shares registered under a Registration Statement filed pursuant to
Section 2(a) of this Agreement is insufficient to cover all of the Conversion
Shares and Warrant Shares or all of an Investor's allocated portion of the
Conversion Shares and Warrant Shares pursuant to Section 2(b) of this Agreement,
the Company shall amend the Registration Statement, or file a new Registration
Statement (on the short form available therefor, if applicable), or both, so as
to cover at least one hundred five percent (105%) of the number of such
Conversion Shares and Warrant Shares as of the trading day immediately preceding
the date of the filing of such amendment and/or new Registration Statement, in
each case, as soon as practicable, but in no event later than fifteen (15) days
after the necessity therefor arises. The Company shall use its reasonable
efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof. The calculation
of the number of shares sufficient to cover all of the Conversion Shares and
Warrant Shares shall be made without regard to any limitations on the conversion
of the Notes or the exercise of the Warrants, and such calculation shall assume
that all of the Notes are then convertible into, and all of the Warrants are
then exercisable for, shares of Common Stock at the then prevailing Conversion
Rate (as defined in the Notes) or Warrant Exercise Price (as defined in the
Warrants), as applicable.

                  (f) Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. Subject to any elections made pursuant
to Section 4(b), if (i) a Registration Statement covering all the Registrable
Securities is not filed with the Commission on or before the Filing Deadline or
is not declared effective by the Commission on or before the Effectiveness
Deadline, (ii) a Registration Statement covering all of the Registrable
Securities required to be covered thereby, as described in Section 2(e) of this
Agreement, is not filed with the Commission on or before the deadline described
in Section 2(e) of this Agreement or is not declared effective by the Commission
on or before the deadline described in Section 2(e) of this Agreement, (iii) on
any day after such Registration Statement has been declared effective by the
Commission, sales of all of the Registrable Securities required to be included
on such Registration Statement cannot be made as a matter of law (other than
during an Allowable Grace Period (as defined in Section 3(n) of this Agreement)
pursuant to such Registration Statement (including, without limitation, because
of a failure to keep such Registration Statement effective, to disclose such
information as is necessary for sales to be made pursuant to such Registration
Statement or to register a sufficient number of shares of Common Stock), or (iv)
a Grace Period

                                       4
<PAGE>

(as defined in Section 3(n) of this Agreement) exceeds the length of an
Allowable Grace Period (each of the items described in clauses (i), (ii), (iii)
and (iv) above shall be referred to as a "Registration Delay"), then the Company
shall pay (1) to each holder of the Notes or Conversion Shares an amount in cash
equal to the product of (i) the initial principal amount paid for the Note, held
by such holder or the related Conversion Shares multiplied by (ii) the product
of (I) the percentage determined by dividing (A) the Applicable Percentage by
(B) 30, multiplied by (II) the sum of (x) the number of days (including any
partial days) after the Filing Deadline or the deadline described in Section
2(e) of this Agreement, as applicable, that the Registration Statement is not
filed with the Commission, plus (y) the number of days (including any partial
days) after the Effectiveness Deadline or the deadline described in Section 2(e)
of this Agreement that the Registration Statement is not declared effective by
the Commission, plus (z) after the Registration Statement has been declared
effective by the Commission, the number of days (including any partial days)
that such Registration Statement is not available (other than during an
Allowable Grace Period) for the sale of all the Registrable Securities and (2)
to each holder of the Warrants or Warrant Shares an amount in cash equal to the
product of (i) the Exercise Price for such Warrant or the related Warrant Shares
multiplied by (ii) the product of (I) the percentage determined by dividing (A)
the Applicable Percentage by (B) 30, multiplied by (II) the sum of (x) the
number of days (including any partial days) after the Filing Deadline or the
deadline described in Section 2(e) of this Agreement, as applicable, that the
Registration Statement is not filed with the Commission, plus (y) the number of
days (including any partial days) after the Effectiveness Deadline or the
deadline described in Section 2(e) of this Agreement, as applicable, that the
Registration Statement is not declared effective by the Commission, plus (z)
after the Registration Statement has been declared effective by the Commission,
the number of days (including any partial days) that such Registration Statement
is not available (other than during an Allowable Grace Period) for the sale of
all Registrable Securities. The "Applicable Percentage" shall mean (A) for the
period that only include days on or before the day that is 60 days after the
commencement of a Registration Delay, eight-tenths percent (0.8%), (B) for
periods that only include days after the date that is 60 days after the
commencement of a Registration Delay, one percent (1.0%) and (C) for periods
that include days both before and after the date that is 60 days after the
commencement of a Registration Delay, a percentage equal to a fraction, the
numerator of which shall be the sum of (i) the number of days in such period
that are on or before the date that is 60 days after the commencement of such
Registration Delay multiplied by eight-tenths percent (0.8%) and (ii) the number
of days in such period that are after the date that is 60 days after the
commencement of such Registration Delay multiplied by one percent (1.0%) and the
denominator of which shall be the total number of days comprising such period.
The payments to which a holder shall be entitled pursuant to this Section 2(f)
are referred to herein as "Registration Delay Payments." The Registration Delay
Payments shall be paid in cash on the earlier of (A) the last day of the
calendar month during which such Registration Delay Payments are incurred and
(B) the third Business Day after the event or failure giving rise to the
Registration Delay Payments is cured. In the event the Company fails to make
Registration Delay Payments in a timely manner, such Registration Delay Payments
shall bear interest at the rate of one and two-tenths percent (1.2%) per month
(prorated for partial months) until paid in full.

                  SECTION 3. RELATED OBLIGATIONS. At such time as the Company is
obligated to file a Registration Statement with the Commission pursuant to
Section 2(a), 2(d) or 2(e) of this Agreement, the Company will use reasonable
efforts to effect the registration of all of the

                                       5
<PAGE>

Registrable Securities in accordance with the intended method of disposition
thereof and, pursuant thereto, the Company shall have the following obligations:

                  (a) The Company shall promptly prepare and file with the
Commission a Registration Statement with respect to all of the Registrable
Securities (but in no event later than the applicable Filing Deadline) and use
reasonable efforts to cause such Registration Statement relating to all of the
Registrable Securities required to be covered thereby to become effective as
soon as practicable after such filing (but in no event later than the applicable
Effectiveness Deadline). The Company shall, subject to the terms of this
Agreement, keep each Registration Statement effective pursuant to Rule 415 at
all times during the period from the date it is initially declared effective
until the earliest of (i) the second anniversary of the date such Registration
Statement is filed, (ii) the date as of which all of the Investors (other than
any Investors who are "affiliates" of the Company as such term is used in Rule
144(k) promulgated under the Securities Act) may sell all of the Registrable
Securities without restriction pursuant to Rule 144(k) (or the successor rule
thereto) promulgated under the Securities Act or (iii) the date on which all of
the Investors shall have sold all of the Registrable Securities (the
"Registration Period"), which Registration Statement, as of its filing and
effective dates and each day thereafter (including all amendments or supplements
thereto, as of their respective filing and effective dates and each day
thereafter), shall not contain any 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, and the prospectus contained in such
Registration Statement, as of its filing date and each day thereafter (including
all amendments and supplements thereto, as of their respective filing dates and
each day thereafter), shall not contain any untrue statement of a material fact
or omit to state a material fact required to be stated thereon, or necessary to
make the statements therein, in light of the circumstances in which they were
made, not misleading.

                  (b) Subject to Section 3(n) of this Agreement, the Company
shall prepare and file with the Commission such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with such Registration Statement, which prospectus
is to be filed pursuant to Rule 424 (or any successor rule thereto) promulgated
under the Securities Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the Securities Act. In the case of
amendments and supplements to a Registration Statement and the prospectus used
in connection with such Registration Statement which are required to be filed
pursuant to this Agreement (including pursuant to this Section 3(b)) by reason
of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any
analogous report under the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, or any similar successor statute (the
"Exchange Act"), the Company shall have incorporated such report by reference
into such Registration Statement, if applicable, or shall file such amendments
or supplements with the Commission on the same day on which the Exchange Act
report is filed which created the requirement for the Company to amend or
supplement such Registration Statement and prospectus.

                  (c) The Company shall permit Legal Counsel, or if no Legal
Counsel shall have been chosen by the Investors, the Investors, to review and
provide written comment upon each Registration Statement, prospectus and all
amendments and supplements thereto at least three (3) Business Days prior to
their filing with the Commission. The Company shall furnish to the

                                       6
<PAGE>

Investors and Legal Counsel, without charge, (i) promptly after receipt of such
correspondence, copies of all correspondence from the Commission or the staff of
the Commission to the Company or its representatives relating to each
Registration Statement, prospectus and all amendments and supplements thereto,
(ii) promptly after the same is prepared and filed with the Commission, one (1)
copy of each Registration Statement, prospectus and all amendments and
supplements thereto, including all exhibits and financial statements related
thereto, and (iii) promptly upon the effectiveness of each Registration
Statement and each amendment and supplement thereto, one (1) copy of the
prospectus included in each such Registration Statement and all amendments and
supplements thereto. The Company agrees that it will, and it will cause its
counsel to, consider in good faith any comments or objections from Legal
Counsel, or if no Legal Counsel shall have been selected, the Investors, as to
the form or content of each Registration Statement, prospectus and all
amendments or supplements thereto or any request for acceleration of the
effectiveness of each Registration Statement, prospectus and all amendments or
supplements thereto.

                  (d) The Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement, without
charge to such Investor, (i) promptly after the same is prepared and filed with
the Commission, at least one copy of such Registration Statement and all
amendments and supplements thereto, including all exhibits and financial
statements and each preliminary prospectus, (ii) upon the effectiveness of each
Registration Statement, such number of copies of the prospectus included in such
Registration Statement and all amendments and supplements thereto as such
Investor may reasonably request, and (iii) such other documents, including
copies of any preliminary or final prospectus, as such Investor may reasonably
request from time to time in order to facilitate the disposition of the
Registrable Securities.

                  (e) Subject to Section 3(n) of this Agreement, and excluding
any Registrable Shares held by Investors electing to exclude their Registrable
Shares from the Registration Statement under Section 4(b), the Company shall use
reasonable efforts to (i) promptly register and qualify, unless an exemption
from registration and qualification applies, the resale of the Registrable
Securities under such other securities or "blue sky" laws of all applicable
jurisdictions in the United States as any holder of Registrable Shares
reasonably requests in writing, (ii) promptly prepare and file in those
jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii)
promptly take such other actions as may be reasonably necessary to maintain such
registrations and qualifications in effect at all times during the Registration
Period, and (iv) promptly take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to file a general consent to service of
process in any such jurisdiction, except in such jurisdictions where the Company
is subject to service of process. The Company shall promptly notify each
Investor who holds Registrable Securities and Legal Counsel of the receipt by
the Company of any notification with respect to the suspension of the
registration or qualification of any of the Registrable Securities for sale
under the securities or "blue sky" laws of any jurisdiction in the United States
or its receipt of notice of the initiation or threatening of any proceeding for
such purpose.

                                       7
<PAGE>

                  (f) Notwithstanding anything to the contrary set forth herein,
as promptly as practicable after becoming aware of such event, the Company shall
notify each Investor and Legal Counsel in writing of the happening of any event
as a result of which (i) the Registration Statement or any amendment or
supplement thereto, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading or (ii) the
prospectus related to such Registration Statement or any amendment or supplement
thereto includes an untrue statement of a material fact or omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and, subject to Section 3(n) of this Agreement, promptly prepare a
supplement or amendment to such Registration Statement and prospectus to correct
such untrue statement or omission, and deliver such number of copies of such
supplement or amendment to each Investor and Legal Counsel as such Investor or
Legal Counsel may reasonably request. The Company shall also promptly notify
each Investor and Legal Counsel in writing (i) when a prospectus and each
prospectus supplement or amendment thereto has been filed, and when a
Registration Statement and each amendment (including post-effective amendments)
and supplement thereto has been declared effective by the Commission
(notification of such effectiveness shall be delivered to each Investor and
Legal Counsel by facsimile on the same day of such effectiveness and by
overnight mail), (ii) of any request by the Commission for amendments or
supplements to a Registration Statement or related prospectus or related
information, and (iii) of the Company's reasonable determination that an
amendment (including any post-effective amendment) or supplement to a
Registration Statement or prospectus would be appropriate (subject to Section
3(n) hereof).

                  (g) Subject to Section 3(n) of this Agreement, the Company
shall use reasonable efforts to (i) prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the suspension
of the qualification of any of the Registrable Securities for sale in any
jurisdiction, (ii) if such an order or suspension is issued, obtain the
withdrawal of such order or suspension at the earliest practicable moment and
notify each holder of Registrable Securities and Legal Counsel of the issuance
of such order and the resolution thereof or its receipt of notice of the
initiation or threat of any proceeding for such purpose.

                  (h) The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with United States
federal or state securities laws, (ii) the disclosure of such information is
necessary to avoid or correct a misstatement or omission in any Registration
Statement, prospectus or any amendment or supplement thereto, (iii) the release
of such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning an Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, unless
ordered or requested by the Commission or other governmental authority not to do
so, give prompt written notice to such Investor and allow such Investor, at the
Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

                                       8
<PAGE>

                  (i) The Company shall use reasonable efforts to cause all the
Conversion Shares and Warrant Shares to be listed on each securities exchange on
which securities of the same class or series issued by the Company are then
listed, if any, if the listing of such Conversion Shares and Warrant Shares is
then permitted under the rules of such exchange. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section
3(i).

                  (j) In connection with any sale or transfer of Registrable
Securities pursuant to a Registration Statement, the Company shall cooperate
with the Investors who hold Registrable Securities being offered and, to the
extent applicable, facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the
Investors may reasonably request and, registered in such names as the Investors
may request.

                  (k) If requested by an Investor, the Company shall (i) as soon
as practicable, incorporate in each prospectus supplement or post-effective
amendment to the Registration Statement such information as an Investor provides
in writing and reasonably requests to be included therein relating to the sale
and distribution of the Registrable Securities, and (ii) as soon as practicable,
make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such
prospectus supplement or post-effective amendment.

                  (l) The Company shall comply with all applicable rules and
regulations of the Commission in connection with any registration hereunder.

                  (m) Within two (2) Business Days after a Registration
Statement is ordered effective by the Commission the Company will so notify the
transfer agent for the Registrable Securities and the Investors whose
Registrable Securities are included in the Registration Statement.

                  (n) Notwithstanding anything to the contrary herein, at any
time after a Registration Statement has been declared effective by the
Commission, the Company may delay the disclosure of material non-public
information concerning the Company if the disclosure of such information at the
time is not, in the good faith judgment of the Board of Directors of the Company
relying upon the opinion of counsel, in the best interests of the Company (a
"Grace Period"); provided, however, that the Company shall promptly (i) notify
the Investors in writing of the existence of material non-public information
giving rise to a Grace Period (provided that the Company shall not disclose the
content of such material non-public information to the Investors) and the date
on which the Grace Period will begin, and (ii) notify the Investors in writing
of the date on which the Grace Period ends; provided further, that no single
Grace Period shall exceed thirty (30) consecutive days, and during any three
hundred sixty-five (365) day period, the aggregate of all of the Grace Periods
shall not exceed an aggregate of sixty (60) days and the first day of any Grace
Period must be at least ten (10) trading days after the last day of any prior
Grace Period (each Grace Period complying with this provision being an
"Allowable Grace Period"). For purposes of determining the length of a Grace
Period, the Grace Period shall be deemed to begin on and include the date the
Investors receive the notice referred to in clause (i) above and shall end on
and include the later of the date the Investors receive the notice

                                       9
<PAGE>

referred to in clause (ii) above and the date referred to in such notice;
provided, however, that no Grace Period shall be longer than an Allowable Grace
Period. The provisions of Section 3(g) of this Agreement shall not be applicable
during the period of any Allowable Grace Period. Upon expiration of the Grace
Period, the Company shall again be bound by the first sentence of Section 3(f)
of this Agreement.

                  SECTION 4. OBLIGATIONS OF THE INVESTORS.

                  (a) At least three (3) Business Days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such
Investor if such Investor elects to have any of such Investor's Registrable
Securities included in such Registration Statement. It shall be a condition
precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the effectiveness of the registration of such
Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request. Each Investor shall promptly
notify the Company of any material change with respect to such information
previously provided to the Company by such Investor.

                  (b) Each Investor agrees to cooperate with the Company as
reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder, unless such Investor has
notified the Company in writing of such Investor's election to exclude all of
such Investor's Registrable Securities from such Registration Statement, in
which case, such Investor does not need to cooperate with the Company until it
notifies the Company of its desire to include one or more shares of the
Registrable Securities in such Registration Statement.

                  (c) Each Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(g)
or 3(n) of this Agreement or the first sentence of Section 3(f) of this
Agreement, such Investor will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statements covering such Registrable
Securities until such Investor's receipt of the copies of the amended or
supplemented prospectus contemplated by Section 3(g) of this Agreement or the
first sentence of Section 3(f) of this Agreement or receipt of notice that no
amendment or supplement is required and, if so directed by the Company, such
Investor shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a certificate of destruction) all copies of the
prospectus covering such Registrable Securities current at the time of receipt
of such notice (other than a single file copy, which such Investor may keep) in
such Investor's possession.

                  SECTION 5. EXPENSES OF REGISTRATION. All expenses, other than
underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3 of this
Agreement, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, transfer agent fees and fees
and disbursements of counsel for the Company, shall be paid by the Company. The
Company shall pay all of the Investors' reasonable costs (including reasonable
fees and disbursements of Legal

                                       10
<PAGE>

Counsel) incurred in connection with the successful enforcement of the
Investors' rights under this Agreement.

                  SECTION 6. INDEMNIFICATION. In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

                  (a) To the fullest extent permitted by law, the Company will,
and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, members, partners, employees, agents, representatives of,
and each Person, if any, who controls any Investor within the meaning of the
Securities Act or the Exchange Act (each, an "Indemnified Person"), against any
losses, claims, damages, liabilities, judgments, fines, penalties, charges,
costs, reasonable attorneys' fees, amounts paid in settlement or expenses, joint
or several, (collectively, "Claims") incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the Commission, whether pending or
threatened, whether or not an indemnified party is or may be a party thereto
("Indemnified Damages"), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or any amendment
(including post-effective amendments) or supplement thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which the Registrable Securities
are offered ("Blue Sky Filing"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary prospectus if authorized for use by
the Company prior to the effective date of such Registration Statement, or
contained in the final prospectus (as amended or supplemented, if any) or the
omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement, or (iv) any material violation
of this Agreement by the Company (the matters in the foregoing clauses (i)
through (iv) being, collectively, "Violations"). Subject to Section 6(c) of this
Agreement, the Company shall reimburse the Indemnified Persons, promptly as such
expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall
not apply to a Claim by an Indemnified Person arising out of or based upon a
Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Person or its Legal
Counsel expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto; (ii) shall not be
available to the extent such Claim is based on a failure of the Investor to
deliver or to cause to be delivered the prospectus made available by the
Company, including a corrected prospectus, if such prospectus or corrected
prospectus was timely made available by the Company pursuant to Section 3(d) of
this Agreement; and (iii) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of

                                       11
<PAGE>

the Company, which consent shall not be unreasonably withheld, conditioned or
delayed. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to Section
9 of this Agreement.

                  (b) In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a) of this Agreement, the Company, each of
its directors, each of its officers who signs the Registration Statement, its
agents and each Person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act (each, an "Indemnified Party"), against
any Claims or Indemnified Damages to which any of them may become subject, under
the Securities Act, the Exchange Act or otherwise, insofar as such Claims or
Indemnified Damages arise out of or are based upon any Violation (including for
purposes of this paragraph, a material violation of this Agreement by the
Investor), in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor or its Legal Counsel expressly for use
in connection with such Registration Statement and, subject to Section 6(c) of
this Agreement, such Investor will reimburse any legal or other expenses
reasonably incurred by an Indemnified Party in connection with investigating or
defending any such Claim; provided, however, that the indemnification agreement
contained in this Section 6(b) and the agreement with respect to contribution
contained in Section 7 of this Agreement shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of such Investor, which consent shall not be unreasonably withheld or
delayed; provided, further, that the Investor shall be liable under this Section
6(b) for only that amount of the Claims and Indemnified Damages as does not
exceed the net proceeds to such Investors as a result of the sale of Registrable
Securities pursuant to such Registration Statement. Such indemnification
agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the Registrable Securities by the Investors pursuant to Section 9 of this
Agreement. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(b) shall not inure to the
benefit of any Indemnified Party if the untrue statement or omission of material
fact contained in the preliminary prospectus was corrected on a timely basis in
the prospectus, as then amended or supplemented.

                  (c) Promptly after an Indemnified Person or Indemnified Party
under this Section 6 has knowledge of any Claim as to which such Indemnified
Person or Indemnified Party reasonably believes indemnity may be sought or
promptly after such Indemnified Person or Indemnified Party receives notice of
the commencement of any action or proceeding (including any governmental action
or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying
party under this Section 6, deliver to the indemnifying party a written notice
of such Claim, and the indemnifying party shall have the right to participate
in, and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such

                                       12
<PAGE>

counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests
between such Indemnified Person or Indemnified Party and any other party
represented by such counsel in such proceeding; provided, further, that the
indemnifying party shall not be responsible for the reasonable fees and expense
of more than one (1) separate legal counsel for such Indemnified Person or
Indemnified Party. In the case of an Indemnified Person, the legal counsel
referred to in the immediately preceding sentence shall be selected by the
Investors holding at least a majority in interest of the Conversion Shares and
Warrant Shares included in the Registration Statement to which the Claim
relates. The Indemnified Party or Indemnified Person shall cooperate fully with
the indemnifying party in connection with any negotiation or defense of any such
action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or
Indemnified Person which relates to such action or Claim. The indemnifying party
shall keep the Indemnified Party or Indemnified Person fully apprised at all
times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding effected without its prior written consent;
provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person of a full release from all
liability in respect to such Claim and action and proceeding. After
indemnification as provided for under this Agreement, the rights of the
indemnifying party shall be subrogated to all rights of the Indemnified Party or
Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party as provided in this Agreement
shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action.

                  (d) No Person involved in the sale of Registrable Securities
who is guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) in connection with such sale shall be entitled to
indemnification from any Person involved in such sale of Registrable Securities
who is not guilty of fraudulent misrepresentation.

                  (e) The indemnification required by this Section 6 shall be
made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages
are incurred.

                  (f) The indemnification agreements contained herein shall be
in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

                  SECTION 7. CONTRIBUTION. To the extent any indemnification by
an indemnifying party is prohibited or limited by law, the indemnifying party
agrees to make the maximum contribution with respect to any amounts for which it
would otherwise be liable under Section 6 of this Agreement to the fullest
extent permitted by law; provided, however, that:

                                       13
<PAGE>

(i) no contribution shall be made under circumstances where the maker would not
have been liable for indemnification under the fault standards set forth in
Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable
Securities who is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) in connection with such sale shall be
entitled to contribution from any Person involved in such sale of Registrable
Securities who is not guilty of fraudulent misrepresentation, and (iii)
contribution by any seller of Registrable Securities shall be limited in amount
to the net amount of proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement. The provisions
of this Section 7 shall remain in full force and effect, regardless of the
investigation made by or on behalf of the beneficiaries of this Section 7 and
shall survive the transfer of Registrable Securities by the Investors pursuant
to Section 9 of this Agreement.

                  SECTION 8. REPORTING.

                  (a) Reports Under The Exchange Act. With a view to making
available to the Investors the benefits of Rule 144 promulgated under the
Securities Act or any other similar rule or regulation of the Commission that
may at any time permit the Investors to sell securities of the Company to the
public without registration ("Rule 144"), the Company shall use reasonable
efforts to:

                           (1) make and keep public information available, as
                  those terms are understood and defined in Rule 144;

                           (2) file with the Commission in a timely manner all
                  reports and other documents required of the Company under the
                  Securities Act and the Exchange Act; and

                           (3) furnish to each Investor, so long as such
                  Investor owns Registrable Securities, promptly upon request,
                  (A) a written statement by the Company, if true, that it has
                  complied with the applicable reporting requirements of Rule
                  144, the Securities Act and the Exchange Act, (B) a copy of
                  the most recent annual or quarterly report of the Company and
                  copies of such other reports and documents so filed by the
                  Company, and (C) such other information as may be reasonably
                  requested to permit the Investors to sell such securities
                  pursuant to Rule 144 without registration.

                  (b) Rule 144A Information. The Company shall, upon request of
any Investor, make available to such Investor the information required by Rule
144A(d)(4) (or any successor rule) under the Securities Act.

                  SECTION 9. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under
this Agreement shall be automatically assignable by the Investors to any
transferee of all or any portion of such Investor's Registrable Securities if:
(i) the Investor agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment; (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with
respect to which such

                                       14
<PAGE>

rights are being transferred or assigned; (iii) immediately following such
transfer or assignment, the further disposition of such securities by the
transferee or assignee is restricted under the Securities Act and applicable
state securities laws; (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this sentence, the transferee or
assignee agrees in writing with the Company to be bound by all of the
obligations of an Investor under this Agreement; (v) such transfer shall have
been made in accordance with the applicable requirements of the Securities
Purchase Agreement, the Indenture, the Notes, the Warrant Agent Agreement and
the Warrants; and (vi) such transfer shall have been conducted in accordance
with all applicable federal and state securities laws.

                  SECTION 10. AMENDMENT OF REGISTRATION RIGHTS. Any provision of
this Agreement may be amended and the observance of any provision of this
Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Investors who then hold at least a majority of the Conversion Shares and
Warrant Shares, determined as if all of the Notes held by Investors then
outstanding have been converted into Conversion Shares and all Warrants then
outstanding have been exercised for Warrant Shares without regard to any
limitations on conversion of the Notes or on the exercise of the Warrants. Any
amendment or waiver affected in accordance with this Section 10 shall be binding
upon each Investor and the Company. No such amendment shall be effective to the
extent that it applies to less than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of this Agreement
unless the same consideration also is offered to all of the parties to this
Agreement.

                  SECTION 11. MISCELLANEOUS.

                  (a) A Person is deemed to be a holder of Registrable
Securities whenever such Person owns or is deemed to own of record such
Registrable Securities. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from such record owner of such Registrable
Securities.

                  (b) Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (evidenced by
mechanically or electronically generated receipt by the sender's facsimile
machine); or (iii) one (1) Business Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

                                       15
<PAGE>

                   If to the Company:

                         Dave & Buster's, Inc.
                         2481 Manana Drive
                         Dallas, Texas  75220
                         Telephone: (214) 357-9588
                         Facsimile: (214) 357-1536
                         Attention: John Davis, Esq.,
                                    Senior Vice President and General Counsel

                   with a copy to:

                         Hallett & Perrin, P.C.
                         2001 Bryan Street, Suite 3900
                         Dallas, Texas  75201
                         Telephone: (214) 922-4120
                         Facsimile: (214) 922-4170
                         Attention: Bruce H. Hallett, Esq.

                   If to U.S. Bancorp Piper Jaffray Inc.:

                         U.S. Bancorp Piper Jaffray Inc.
                         345 California Street, Suite 2100
                         San Francisco, California  94104
                         Telephone: (415) 984-5127
                         Facsimile: (415) 984-5121
                         Attention: Mr. David Fullerton

                   with a copy to:

                         Gibson, Dunn & Crutcher LLP
                         1050 Connecticut Avenue NW
                         Washington, DC 20036
                         Telephone: (202) 955-8500
                         Facsimile: (202) 467-0539
                         Attention: Brian Lane, Esq.

                   If to Legal Counsel:

                         Gibson, Dunn & Crutcher LLP
                         1050 Connecticut Avenue NW
                         Washington, DC 20036
                         Telephone: (202) 955-8500
                         Facsimile: (202) 467-0539
                         Attention: Brian Lane, Esq.

                                       16
<PAGE>

If to a Buyer, to its address and facsimile number set forth on the Schedule of
Buyers attached hereto as Exhibit A, with copies to such Buyer's representatives
as set forth on the Schedule of Buyers, or to such other address and/or
facsimile number and/or to the attention of such other Person as the recipient
party has specified by written notice given to each other party

                  (c) Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

                  (d) All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting the City of New York, borough of Manhattan, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                  (e) This Agreement, the Securities Purchase Agreement, the
Indenture, the Notes, the Warrants, the Warrant Agent Agreement and the
documents referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement, the Indenture, the
Securities Purchase Agreement, the Notes, the Warrants and the Warrant Agent
Agreement supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

                  (f) Subject to the requirements of Section 9 of this
Agreement, this Agreement shall inure to the benefit of and be binding upon the
permitted successors and assigns of each of the parties hereto.

                                       17
<PAGE>

                  (g) The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                  (h) This Agreement may be executed in identical counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party, may be
delivered to the other parties hereto by facsimile transmission of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

                  (i) Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  (j) All consents and other determinations required to be made
by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Investors holding at least a majority of the
majority of the Conversion Shares and Warrant Shares, determined as if all of
the Notes held by Investors then outstanding have been converted into Conversion
Shares and all Warrants then outstanding have been exercised for Warrant Shares
without regard to any limitations on conversion of the Notes or on the exercise
of the Warrants.

                  (k) This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                                       18

<PAGE>

                  IN WITNESS WHEREOF, the parties have caused this Registration
Rights Agreement to be duly executed as of day and year first above written.

                                 "COMPANY"

                                 DAVE & BUSTERS, INC.

                                 By:
                                     -----------------------------------------
                                     Its:
                                          ------------------------------------

                                 "PIPER JAFFRAY"

                                 U.S. BANCORP PIPER JAFFRAY INC.

                                 By:
                                     -----------------------------------------
                                     Its:
                                          ------------------------------------

                    [Signatures of Buyers on Following Page]

<PAGE>

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

                                 "BUYER"

                                 ----------------------------------------------
                                        (print full legal name of Buyer)

                                 By:
                                     ------------------------------------------
                                      (signature of authorized representative)

                                 Name:
                                       ----------------------------------------

                                 Its:
                                      -----------------------------------------

<PAGE>

                   EXHIBIT A TO REGISTRATION RIGHTS AGREEMENT

                               SCHEDULE OF BUYERS

<Table>
<Caption>
           NAME OF BUYERS                    PRINCIPAL AMOUNT OF NOTES          NUMBER OF WARRANTS
-------------------------------------        -------------------------          ------------------
<S>                                          <C>                                <C>
1.   [Name of Buyer]                                $
     [Contact Information for Buyer]
</Table>

                                   Exhibit A-1

<PAGE>

<Table>
<S>                                                                                                             <C>
SECTION 1.            Definitions................................................................................1

SECTION 2.            Registration...............................................................................2

SECTION 3.            Related Obligations........................................................................5

SECTION 4.            Obligations Of The Investors..............................................................10

SECTION 5.            Expenses Of Registration..................................................................10

SECTION 6.            Indemnification...........................................................................11

SECTION 7.            Contribution..............................................................................13

SECTION 8.            Reporting.................................................................................14

SECTION 9.            Assignment of Registration Rights.........................................................14

SECTION 10.           Amendment of Registration Rights..........................................................15

SECTION 11.           Miscellaneous.............................................................................15

EXHIBIT A             Schedule of Buyers.......................................................................A-1
</Table>

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