**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-K/A**

**AMENDMENT        NO. 2**

**ANNUAL      REPORT**

**PURSUANT      TO SECTION 13 OR 15(d) OF THE **

**SECURITIES      EXCHANGE ACT OF 1934 **

**[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND**

**EXCHANGE      ACT OF 1934 **

**[_]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND**

**EXCHANGE      ACT OF 1934 **

**KapStone          Paper and Packaging Corporation**

----

----

| Delaware                                       | 20-2699372                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

**Securities      registered pursuant to Section 12(b) of the Act: None**

**Securities      registered pursuant to Section 12(g) of the Act:**

**Common      Stock, $.0001 par value **

**Common      Stock Purchase Warrants**

----

**DOCUMENTS      INCORPORATED BY REFERENCE: NONE **

----

**EXPLANATORY        NOTE **

|  Part                IV |
|------------------------------|
|                         |   |   |
| 15.                          | Exhibits                and Financial Statement Schedules | 4 |
|                         | INDEX                TO FINANCIAL STATEMENTS | F-1 |

----

**Item      15. Exhibits and Financial Statement Schedules **

**Financial      Statements.**

**Exhibits.      **

The      following Exhibits are filed as part of this report

| **Exhibit                No.** |   | **Description** |
|--------------------------------|--------|-----------------|
|                           |
|                           | 3.1    |            | Amended                and Restated Certificate of Incorporation, as amended.                (1) |
|                           |
|                           | 3.2    |            | By-laws.(1) |
|                           |
|                           | 4.1    |            | Specimen                Unit Certificate.(1) |
|                           |
|                           | 4.2    |            | Specimen                Common Stock Certificate.(1) |
|                           |
|                           | 4.3    |            | Specimen                Warrant Certificate.(1) |
|                           |
|                           | 4.4    |            | Form                of Unit Purchase Option to be granted to Representative.                (1) |
|                           |
|                           | 4.5    |            | Form                of Warrant Agreement between Continental Stock Transfer & Trust                Company and the Registrant. (1) |
|                           |
|                           | 10.1   |            | Form                of Letter Agreement among the Registrant, Morgan Joseph & Co.                Inc. and each of the Initial Stockholders. (1) |
|                           |
|                           | 10.2   |            | Form                of Promissory Note issued to each of Roger Stone, Matthew Kaplan,                John                Chapman, Jonathan Furer and Muhit Rahman. (1) |
|                           |
|                           | 10.3   |            | Form                of Investment Management Trust Agreement between Continental Stock                Transfer & Trust Company and the Registrant.                (1) |
|                           |
|                           | 10.4   |            | Form                of Stock Escrow Agreement between the Registrant, Continental Stock                Transfer & Trust Company and the Initial Stockholders.                (1) |

----

|   |
|--------|
|   | 10.5 |   | Form                of Letter Agreement between Stone-Kaplan Investments LLC and Registrant                regarding administrative support. (1) |
|   |
|   | 10.6 |   | Form                of Registration Rights Agreement among the Registrant and the Initial                Stockholders. (1) |
|   |
|   | 10.7 | Form                of Warrant Purchase Agreement among each of the Initial Stockholders                and                Morgan Joseph & Co. Inc. (1) |
|   |   |   |   |   |
|   | 31 |   | Certification                of the Chief Executive Officer and Principal Financial Officer pursuant                to                Rule 13a-14(a) of                the Securities Exchange Act, as amended |
|   |   |   |   |   |
|   | 32 |   | Certification                of the Chief Executive Officer and Principal Financial Officer pursuant                to                18                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002 . |

----

**SIGNATURES**

|                                  | KAPSTONE                  PAPER AND PACKAGING CORPORATION                                        |
|----------------------------------|--------------------------------------------------------------------------------------------------|
|                             |                                                                                             |
| January                  5, 2007 | By: /s/ Roger                  Stone                                    |
|                             | Roger                  Stone, Chairman of the Board and Chief Executive                  Officer |

| January                    5, 2007 | By: /s/ Roger                  Stone                                    |
|------------------------------------|--------------------------------------------------------------------------------------------------|
|                               | Roger                  Stone, Chairman of the Board and Chief Executive                  Officer |
|                               |                                                                                             |
| January                    5, 2007 | By:  /s/ Matthew                  Kaplan            |
|                               | Matthew                  Kaplan, President, Secretary and Director                               |
|                               |                                                                                             |
| January                    5, 2007 | By: /s/ John                  M. Chapman                                     |
|                               | John                  M. Chapman, Director                                                       |
|                               |                                                                                             |
| January                    5, 2007 | By: /s/ Jonathan                  R.Furer                |
|                               | Jonathan                  R. Furer, Director                                                     |
|                               |                                                                                             |
| January                    5, 2007 | By: /s/ Muhit                  U. Rahman                                     |
|                               | Muhit                  U. Rahman, Director                                                       |

----

**STONE      ARCADE ACQUISITION CORP.**

**INDEX      TO FINANCIAL      STATEMENTS**

|                                  |                                                                                                                                                                               | **Page** |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **Financial              Statements** |
|                                  |
|                                  | Report                of Independent Registered Public Accounting Firm                                                                                                        | F-2      |
|                                  |                                                                                                                                                                               |     |
|                                  | Balance sheet as of December 31,              2005                                                                                                                            | F-3      |
|                                  |                                                                                                                                                                               |     |
|                                  | Statement of operations for the period              from              April 15, 2005 (date of inception) through December 31,              2005                     | F-4      |
|                                  |                                                                                                                                                                               |     |
|                                  | Statement of changes in stockholders’ equity              for the period from April 15, 2005 (date of inception) through              December 31, 2005  | F-5      |
|                                  |                                                                                                                                                                               |     |
|                                  | Statement of cash flows for the period              from              April 15, 2005 (date of inception) through December 31,              2005                     | F-6      |
|                                  |                                                                                                                                                                               |     |
|                                  | Notes to financial statements                                                                                                                                                 | F-7      |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

**STONE        ARCADE ACQUISITION CORPORATION**

**Balance      Sheet**

**December 31,      2005**

| **ASSETS**                                                                                                                                                   |   |   |            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|
| Current                assets:                                                                                                                               |   |   |            |   |
| Cash                                                                                                                                                         |   | **$**  | **2,157,611**   |   |
| Short-term                investments held in trust fund (including interest receivable of                $266,239)                (fair value $112,001,836) |   |   | **111,965,034** |   |
| Prepaid                insurance                                                                                                                             |   |   | **122,500**     |   |
| Other                prepaid expenses                                                                                                                        |   |   | **6,375**       |   |
|                                                                                                                                                         |   |   |            |   |
| Total                current assets                                                                                                                          |   |   | **114,251,520** |   |
|                                                                                                                                                         |   |   |            |   |
| Deferred                income tax benefits                                                                                                                  |   |   | **54,094**      |   |
|                                                                                                                                                         |   |   |            |   |
| Total                assets                                                                                                                                  |   | **$**  | **114,305,614** |   |
|                                                                                                                                                         |   |   |            |   |
|                                                                                                                                                         |   |   |            |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                |   |   |            |   |
| Current                liabilities:                                                                                                                          |   |   |            |   |
| Accrued                expenses                                                                                                                              |   | **$**  | **76,486**      |   |
| Income                tax payable - current                                                                                                                  |   |   | **59,852**      |   |
| Deferred                income tax                                                                                                                           |   |   | **90,521**      |   |
|                                                                                                                                                         |   |   |            |   |
| Total                current liabilities                                                                                                                     |   |   | **226,859**     |   |
|                                                                                                                                                         |   |   |            |   |
| Common                stock, subject to possible redemption - 3,998,000 shares                                                                               |   |   | **22,159,715**  |   |
| Interest                income attributable to common stock subject to possible                redemption                                                    |   |   |            |   |
| (net                of taxes of $97,601)                                                                                                                     |   |   | **189,462**     |   |
|                                                                                                                                                         |   |   |            |   |
| Total                common stock, subject to possible redemption                                                                                            |   |   | **22,349,177**  |   |
|                                                                                                                                                         |   |   |            |   |
| Commitments                and contingencies (Note G)                                                                                                        |   |   |            |   |
|                                                                                                                                                         |   |   |            |   |
| Stockholders’                equity:                                                                                                                   |   |   |            |   |
| Preferred                stock - $.0001 par value; 1,000,000 shares authorized; 0 shares issued                and                outstanding                |   |   |            |   |
| Common                stock - $.0001 par value; 175,000,000 shares authorized; 25,000,000                shares                                              |   |   |            |   |
| issued                and outstanding (including 3,998,000 shares subject to possible                redemption)                                             |   |   | **2,500**       |   |
| Additional                paid-in capital                                                                                                                    |   |   | **91,098,761**  |   |
| Income                accumulated during the development stage                                                                                               |   |   | **628,317**     |   |
|                                                                                                                                                         |   |   |            |   |
| Total                stockholders' equity                                                                                                                    |   |   | **91,729,578**  |   |
|                                                                                                                                                         |   |   |            |   |
|                                                                                                                                                         |   | **$**  | **114,305,614** |   |

|  *See notes to financial              statements * |  F-3 |
|--------------------------------------------------------------|-----------|
|                                                         |      |

----

**STONE      ARCADE ACQUISITION CORPORATION**

**Statement      of Operations**

**For      the Period From April 15, 2005 (Date of Inception) Through December 31,      2005**

| Expenses:                                                                                                                               |   |   |           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|
| Operating                costs                                                                                                          |   | **$**  | **221,100**    |   |
|                                                                                                                                    |   |   |           |   |
| Other                income:                                                                                                            |   |   |           |   |
| Bank                interest                                                                                                            |   |   | **24,124**     |   |
| Interest                on cash and short term investments held in trust                                                                |   |   | **1,436,034**  |   |
|                                                                                                                                    |   |   |           |   |
| Total                other income                                                                                                       |   |   | **1,460,158**  |   |
|                                                                                                                                    |   |   |           |   |
| **Income                before provision for income taxes**                                                                             |   |   | **1,239,058**  |   |
| Provision                for income taxes:                                                                                              |   |   |           |   |
| Current                                                                                                                                 |   |   | **(384,852**   | **)**  |
| Deferred                                                                                                                                |   |   | **(36,427**    | **)**  |
|                                                                                                                                    |   |   |           |   |
| **Net                income for the period**                                                                                            |   |   | **817,779**    |   |
| Interest                  income attributable to common stock subject to possible redemption                  (net of taxes of $97,601) |   |   | **(189,462**   | **)**  |
|                                                                                                                                    |   |   |           |   |
| **Net                income allocable to common stockholders not subject to possible                redemption**                        |   | **$**  | **628,317**    |   |
|                                                                                                                                    |   |   |           |   |
| **Weighted                average number of shares outstanding:**                                                                       |   |   |           |   |
| **Basic**                                                                                                                               |   |   | **15,307,692** |   |
| **Diluted**                                                                                                                             |   |   | **16,547,715** |   |
|                                                                                                                                    |   |   |           |   |
| **Net                income per share:**                                                                                                |   |   |           |   |
| **Basic**                                                                                                                               |   | **$**  | **.05**        |   |
| **Diluted**                                                                                                                             |   | **$**  | **.05**        |   |
|                                                                                                                                    |   |   |           |   |
| **Weighted                average number of shares outstanding exclusive of shares subject                to**                          |   |   |           |   |
| **possible                redemption:**                                                                                                 |   |   |           |   |
| **Basic**                                                                                                                               |   |   | **13,247,185** |   |
| **Diluted**                                                                                                                             |   |   | **14,487,208** |   |
|                                                                                                                                    |   |   |           |   |
| **Net                income per share subject to possible redemption:**                                                                 |   |   |           |   |
| **Basic**                                                                                                                               |   | **$**  | **.05**        |   |
| **Diluted**                                                                                                                             |   | **$**  | **.04**        |   |

|  *See notes to financial                statements * |  F-4 |
|----------------------------------------------------------------|-----------|

----

**STONE      ARCADE ACQUISITION CORPORATION**

**Statement      of Changes in Stockholders' Equity**

**For      the Period From April 15, 2005 (Date of Inception) Through December 31,      2005**

|                                                                                                                                                                                                               |   |                            |           |                 |   |  **Income**                    |   |      |           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------------|----------------------|--------|-------------------------------------|--------|-----------|----------------|
|                                                                                                                                                                                                               |   |                            |           |                 |   |  **Accumulated**               |   |      |           |
|                                                                                                                                                                                                               |   |                            |           |  **Additional** |   |  **During                the** |   |      |           |
|                                                                                                                                                                                                               |   | **Common                Stock** |           |  **Paid-In**    |   |  **Development**               |   |      |           |
|                                                                                                                                                                                                               |   |  **Shares**                |           |  **Amount**     |   |  **Capital**                   |   | **Stage** |           | **Total** |   |
|                                                                                                                                                                                                               |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| **Balance                - April 15, 2005 (date of inception)**                                                                                                                                                    |   |                            | 0              |                 | $      | 0                                   |   | $         | 0              |   | $ | 0 |   | $ | 0 |   |
| Initial                capital from founding stockholders                                                                                                                                                          |   |                            | 5,000,000      |                 |   | 500                                 |   |      | 24,500         |   |   |   |   |   | 25,000 |   |
| Sale                of 20,000,000 units and underwriter's                                                                                                                                                          |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| option                      (including 3,998,000 shares of common stock subject to                      possible redemption), net of underwriter’s  discount and offering                      expenses |   |                            | 20,000,000     |                 |   | 2,000                               |   |      | 113,233,976    |   |   |   |   |   | 113,235,976 |   |
| Reclassification                as a result of 3,998,000                                                                                                                                                           |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| shares                of common stock being subject                                                                                                                                                                |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| to                possible redemption                                                                                                                                                                              |   |                            |           |                 |   |                                |   |      | (22,159,715    | ) |   |   |   |   | (22,159,715 | ) |
| Accretion                of trust fund relating to common                                                                                                                                                          |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| stock                subject to possible redemption                                                                                                                                                                |   |                            |           |                 |   |                                |   |      |           |   | $ | (189,462 | ) |   | (189,462 | ) |
| Net                income for the period                                                                                                                                                                           |   |                            |           |                 |   |                                |   |      |           |   |   | 817,779 |   |   | 817,779 |   |
|                                                                                                                                                                                                               |   |                            |           |                 |   |                                |   |      |           |   |   |   |   |   |   |   |
| **Balance                - December 31, 2005**                                                                                                                                                                |   |                            | **25,000,000** |                 | **$**  | **2,500**                           |   | **$**     | **91,098,761** |   | **$** | **628,317** |   | **$** | **91,729,578** |   |

|  *See notes to financial                  statements * |  F-5 |
|------------------------------------------------------------------|-----------|

----

**STONE      ARCADE ACQUISITION CORPORATION**

**Statement      of Cash Flows **

**For      the Period From April 15, 2005 (Date of Inception) Through December 31,      2005**

| **Cash                flows used in operating activities:**                                                   |   |   |             |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|
| Net                income                                                                                     |   | **$**  | **817,779**      |   |
| Changes                in:                                                                                    |   |   |             |   |
| Prepaid                insurance                                                                              |   |   | **(122,500**     | **)**  |
| Interest                receivable on short-term investments                                                  |   |   | **(266,239**     | **)**  |
| Other                prepaid expenses                                                                         |   |   | **(6,375**       | **)**  |
| Accrued                expenses                                                                               |   |   | **76,486**       |   |
| Income                taxes payable - current                                                                 |   |   | **59,852**       |   |
| Income                taxes payable - deferred                                                                |   |   | **36,427**       |   |
|                                                                                                          |   |   |             |   |
| Net                cash provided by operating activities                                                      |   |   | **595,430**      |   |
|                                                                                                          |   |   |             |   |
| **Cash                flows used in investing activities:**                                                   |   |   |             |   |
| Purchase                of U.S. Government Securities held in Trust Fund                                      |   |   | **(556,765,009** | **)**  |
| Maturities                of U.S. Government Securities held in Trust Fund                                    |   |   | **445,066,214**  |   |
|                                                                                                          |   |   |             |   |
| Net                cash used in investing activities                                                          |   |   | **(111,698,795** | **)**  |
|                                                                                                          |   |   |             |   |
| **Cash                flows provided by financing activities:**                                               |   |   |             |   |
| Proceeds                from public offering, net of expenses                                                 |   |   | **113,235,876**  |   |
| Proceeds                from sale of common stock to founding stockholders                                    |   |   | **25,000**       |   |
| Proceeds                from notes payable to stockholders                                                    |   |   | **200,000**      |   |
| Repayment                of notes to stockholders                                                             |   |   | **(200,000**     | **)**  |
| Proceeds                from issuance of underwriter’s option                                           |   |   | **100**          |   |
|                                                                                                          |   |   |             |   |
| Net                cash provided by financing activities                                                      |   |   | **113,260,976**  |   |
|                                                                                                          |   |   |             |   |
| **Net                increase in cash**                                                                       |   |   | **2,157,611**    |   |
| Cash                - beginning of period                                                                     |   |   | **0**            |   |
|                                                                                                          |   |   |             |   |
| **Cash                - end of period**                                                                       |   | **$**  | **2,157,611**    |   |
|                                                                                                          |   |   |             |   |
|                                                                                                          |   |   |             |   |
| **Supplemental                disclosure of noncash activities:**                                             |   |   |             |   |
| Reclassification                of common stock subject to possible redemption                                |   | **$**  | **22,159,715**   |   |
| Accretion                of trust fund relating to common stock subject to possible                redemption |   |   | **189,462**      |   |
|                                                                                                          |   |   |             |   |
| **Cash                paid during the period:**                                                               |   |   |             |   |
| Federal                income taxes                                                                           |   | **$**  | **325,000**      |   |
|                                                                                                          |   |   |             |   |

|  *See notes to financial                  statements * |  F-6 |
|------------------------------------------------------------------|-----------|

----

**STONE      ARCADE ACQUISITION CORPORATION**

**Notes        to Financial Statements**

**December 31,        2005**

**Note      A - Organization, Business Operations and Subsequent      Events**

**Note      B - Summary of Significant Accounting Policies**

| **[1]                   ** | **Cash                and cash equivalents:** |
|-----------------------------------------------------|-----------------------------------------------|

|   |   |
|--------|--------|

|   | All                highly liquid investments with original maturities of three months                or less                are considered to be cash                equivalents. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[2]                   ** | **Earnings                per common share:** |
|-----------------------------------------------------|-----------------------------------------------|

|   |   |
|--------|--------|

|   | Basic                income per share is based on the weighted average number of common                shares                outstanding during the period. Diluted income per share reflects                the                potential dilution assuming common shares were issued upon the exercise                of                outstanding in-the-money warrants and the proceeds thereof were used                to                purchase common shares at the average market price during the                period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  F-7 |
|--|-----------|

----

**STONE        ARCADE ACQUISITION CORPORATION**

**Notes          to Financial Statements**

**December 31,          2005**

**Note      B - Summary of Significant Accounting Policies (continued)**

| **[3]                   ** | **Use                of estimates:** |
|-----------------------------------------------------|--------------------------------------|

|   |   |
|--------|--------|

|   | The** **preparation                of financial statements in conformity with accounting principles                generally                accepted in the United States of America requires management to make                estimates and assumptions that affect the amounts in the financial                statements and accompanying notes. Actual results could differ from                those                estimates. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **[4]                   ** | **Income                taxes:** |
|-----------------------------------------------------|----------------------------------|

|   |   |
|--------|--------|

|   | Deferred income taxes are provided for the differences              between the bases of assets and liabilities for financial reporting              and              income tax purposes. Deferred tax assets and liabilities are measured              using tax rates in effect for the year in which those temporary              differences are expected to be recovered or settled. A valuation allowance              is established when necessary to reduce deferred tax assets to the              amount              expected to be realized. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

**Note      C - Initial Public Offering**

|   |  F-8 |
|--------|-----------|

----

**STONE        ARCADE ACQUISITION CORPORATION**

**Notes          to Financial Statements**

**December 31,          2005**

**Note      C - Initial Public Offering (continued)**

**Note      D - Income Taxes**

| Current  |   | $      | 384,852 |   |
|----------|--------|--------|---------|--------|
| Deferred |   |   | 36,427  |   |
|     |   |   |    |   |
| Total    |   | $      | 421,279 |   |

| Deferred                tax assets - start up costs                 |   | $      | 54,094  |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|
| Deferred                tax liability - accrued interest receivable |   |   | (90,521 | )      |
|                                                                |   |   |    |   |
| Net                deferred tax liability                           |   | $      | (36,427 | )      |

**Note      E - Notes Payable to Stockholders**

|   |  F-9 |
|--------|-----------|

----

**STONE      ARCADE ACQUISITION CORPORATION**

**Notes        to Financial Statements**

**December 31,        2005**

**Note      F - Related-Party Transactions**

**Note      G - Commitments**

**Note      H - Common Stock Reserved for Issuance**

**EXHIBIT      INDEX **

| **Exhibit                No.** |   | **Description** |
|--------------------------------|--------|-----------------|
|                           |   |            |
|                           |
|                           | 3      | .1              |   | Amended                and Restated Certificate of Incorporation, as amended.                (1) |
|                           |
|                           | 3      | .2              |   | By-laws.(1) |
|                           |
|                           | 4      | .1              |   | Specimen                Unit Certificate.(1) |
|                           |
|                           | 4      | .2              |   | Specimen                Common Stock Certificate.(1) |
|                           |
|                           | 4      | .3              |   | Specimen                Warrant Certificate.(1) |
|                           |
|                           | 4      | .4              |   | Form                of Unit Purchase Option to be granted to Representative.                (1) |
|                           |
|                           | 4      | .5              |   | Form                of Warrant Agreement between Continental Stock Transfer & Trust                Company and the Registrant. (1) |
|                           |
|                           | 10     | .1              |   | Form                of Letter Agreement among the Registrant, Morgan Joseph & Co.                Inc. and each of the Initial Stockholders. (1) |
|                           |
|                           | 10     | .2              |   | Form                of Promissory Note issued to each of Roger Stone, Matthew Kaplan,                John                Chapman, Jonathan Furer and Muhit Rahman. (1) |
|                           |
|                           | 10     | .3              |   | Form                of Investment Management Trust Agreement between Continental Stock                Transfer & Trust Company and the Registrant.                (1) |

|   |  F-10 |
|--------|------------|

----

**STONE        ARCADE ACQUISITION CORPORATION**

**Notes          to Financial Statements**

**December 31,          2005**

|   |
|--------|
|   | 10 | .4 |   | Form                of Stock Escrow Agreement between the Registrant, Continental Stock                Transfer & Trust Company and the Initial Stockholders.                (1) |
|   |
|   | 10 | .5 |   | Form                of Letter Agreement between Stone-Kaplan Investments LLC and Registrant                regarding administrative support. (1) |
|   |
|   | 10 | .6 |   | Form                of Registration Rights Agreement among the Registrant and the Initial                Stockholders. (1) |
|   |
|   | 10 | .7 |   | Form                of Warrant Purchase Agreement among each of the Initial Stockholders                and                Morgan Joseph & Co. Inc. (1) |
|   |
|   |   |   |   |   |
|   | 31 |   |   | Certification                of the Chief Executive Officer and Principal Financial Officer pursuant                to                Rule 13a-14(a) of                the Securities Exchange Act, as amended |
|   |   |   |   |   |
|   | 32 |   |   | Certification                of the Chief Executive Officer and Principal Financial Officer pursuant                to                18                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002 . |

|   |  F-11 |
|--------|------------|

----