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Exhibit 10.7    
    


 
 

FORM OF REGISTRATION RIGHTS AGREEMENT    
    


        This Registration Rights Agreement (this "Agreement"), dated as of
[                        ],
2008, is made and entered into by and among Capstar Acquisition Corp., a Delaware corporation (the "Company"), Capstar Acquisition Management, LP, a
Texas limited partnership (the "Sponsor"), the other parties listed under "Holders" on the signature page hereto and any person or entity who hereafter
becomes a party to this Agreement as contemplated by Section 4.02 of this Agreement (each such party, and the Sponsor, a
"Holder" and collectively the "Holders"). 


 
 

RECITALS    
    


        A.    Pursuant
to that certain stock purchase agreement, effective as of October 25, 2007, by and between the Company and the Sponsor (the
"Founders' Stock Purchase Agreement"), the Sponsor purchased an aggregate of 5,750,000 shares (the "Founders'
Shares") of the Company's common stock, par value $0.0001 per share (the "Common Stock"). 


        B.    Pursuant
to that certain securities assignment agreement, effective as of [                        ], 2007,
by and among the Sponsor and the other Holders (the "Securities Assignment Agreement"), the Sponsor assigned an aggregate of 86,250 Founders' Shares to
the other Holders. 


        C.    Pursuant
to that certain warrant subscription agreement, dated November 1, 2007, by and between the Company and the Sponsor (the "Sponsor
Warrants Subscription Agreement"), the Sponsor purchased warrants (the "Sponsor Warrants") entitling the Sponsor to purchase
5,000,000 shares of Common Stock. 


        D.    The
Company and the Holders desire to enter into this Agreement, pursuant to which the Company will grant the Holders certain registration rights with respect to certain
securities of the Company, as set forth in this Agreement. 


 
 

STATEMENT OF AGREEMENT    
    


        NOW, THEREFORE, in consideration of the representations, covenants
and agreements contained herein, and certain other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows: 


 
 

ARTICLE I
  DEFINITIONS    
    


        1.01 Definitions.    The terms defined in this Article I
shall have for all purposes of this Agreement the respective meanings set forth below: 


        "Adverse Disclosure" means public disclosure of material non-public information, which disclosure, in the good faith judgment
of the chief executive officer or principal financial officer of the Company after consultation with counsel to the Company, (i) would be required to be made in any Registration Statement or
prospectus in order for the applicable Registration Statement or prospectus not to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein (in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not misleading, (ii) would not be required to be made at
such time if the Registration Statement were not being filed, and (iii) the Company has a bona fide business purpose for not publicly making it. 


        "Board" shall mean the Board of Directors of the Company. 


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        "Business Combination" shall mean a business combination with one or more target businesses that have an aggregate fair market value of at
least 80% of the initial amount held in the Trust Account (excluding the amount held in the trust account representing the underwriters' deferred commission in connection with the Offering). 



        "Common Stock" shall have the meaning given in the Recitals hereto. 


        "Demand Registration" shall mean a demand registration described in Section 2.01. 


        "Exchange Act" shall mean the Securities Exchange Act of 1934, as it may be amended from time to time. 


        "Founders' Shares" shall have the meaning given in the Recitals hereto. 



        "Founders' Stock Purchase Agreement" shall have the meaning given in the Recitals hereto. 


        "Lock-up Period" shall mean, with respect to the Founders' Shares, the Sponsor Warrants and any Common Stock issued upon
exercise of the Sponsor Warrants (the "Additional Shares"), the period ending 365 days after the completion of a Business Combination with
respect to the Founders' Shares and the period ending 30 days after the completion of a Business Combination with respect to the Sponsor Warrants and any Additional Shares, during which period
such securities may not be transferred, assigned or sold. 


        "Long-Form Registration" shall mean a Registration effected through the filing with the SEC of a Form S-1
or any successor form or similar form for registration under the Securities Act. 


        "Misstatement" shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a
Registration Statement or Prospectus or necessary to make the statements in a Registration Statement or Prospectus not misleading. 



        "Offering" shall mean the Company's initial public offering of its units, with each unit consisting of one share of Common Stock and one
warrant to purchase one share of its common stock, pursuant to a Registration Statement on Form S-1, File No. 333-147096, filed with the SEC. 


        "Person" shall mean a natural person, partnership, corporation, business trust, association, joint venture or other entity or a government
or agency or political subdivision thereof. 


        "Piggyback Registration" shall mean a piggyback registration described in  Section 2.02. 


        "Prospectus" shall mean the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and
as amended by any and all post-effective amendments and including all material incorporated by reference in such prospectus. 


        "Prospectus Date" shall mean the date of the final prospectus relating to the Offering filed with the SEC. 



        "Purchase Agreements" shall mean (a) the Sponsor Warrants Subscription Agreement, (b) the Securities Assignment Agreement
and (c) the Founders' Stock Purchase Agreement. 


        "Registrable Security" shall mean (a) the Founders' Shares, (b) the Sponsor's Warrants (including any shares of Common Stock
issuable upon the exercise of any of the Sponsor's Warrants), (c) any outstanding share of Common Stock or warrant (including the shares of Common Stock issuable upon the exercise of any such
warrant) held by a Holder on the date of this Agreement or issued by the Company to a Holder after the date of this Agreement pursuant to any Purchase Agreement and (d) any security of the
Company issued or issuable with respect to any such share of Common Stock by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or reorganization; provided, however, that any such share or security shall be 


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deemed
to be a Registrable Security only if and so long as it is also deemed to be a Transfer Restricted Security. 



        "Registration" shall mean a Demand Registration, whether such Demand Registration is effected as a Long-Form Registration or a
Short-Form Registration, and a Piggyback Registration. 


        "Registration Expenses" shall mean the out-of-pocket expenses of a Registration, including, without limitation,
the following: 



        (a)   all
registration and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority) and any securities
exchange on which the Common Stock is then listed; 


        (b)   fees
and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel for the underwriters in connection with blue sky
qualifications of the Registrable Securities); 


        (c)   printing,
messenger, telephone and delivery expenses; 


        (d)   reasonable
fees and disbursements of counsel for the Company; 


        (e)   reasonable
fees and disbursements of all independent certified public accountants of the Company incurred specifically in connection with such Registration; and 



        (f)    reasonable
fees and disbursements of one (1) counsel for the Requesting Holders, which counsel shall be selected by the Requesting Holders holding a majority of
the Registrable Securities to be registered for offer and sale in the applicable Registration. 




        "Registration Statement" shall mean any registration statement which covers Registrable Securities pursuant to the provisions of this
Agreement, including the Prospectus included in such registration statement, amendments (including post-effective amendments) and supplements to such registration statement, and all
exhibits to and all material incorporated by reference in such registration statement. 



        "Requesting Holders" shall have the meaning given in Section 2.01. 


        "SEC" shall mean the Securities and Exchange Commission. 


        "Securities Assignment Agreement" shall have the meaning given in the Recitals hereto. 


        "Securities Act" shall mean the Securities Act of 1933, as amended from time to time. 



        "Short-Form Registration" shall mean a Registration effected through the filing with the SEC of a Form S-3
or any successor form or similar form for registration under the Securities Act. 


        "Sponsor" shall have the meaning given in the Recitals hereto. 


        "Sponsor Warrants" shall have the meaning given in the Recitals hereto. 


        "Sponsor Warrants Subscription Agreement" shall have the meaning given in the Recitals hereto. 



        "Transfer Restricted Security" shall mean an issued and outstanding security that has not been sold to or through a broker, dealer or
underwriter in a public distribution or other public securities transaction or sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under
Rule 144(k) promulgated thereunder (or any successor rule) other than Rule 144A. 


        "Trust Account" shall mean the trust fund into which a portion of the net proceeds of the Offering will be deposited in accordance with
the terms of the Offering as described in the Offering Circular. 


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        "Underwritten Registration" or "Underwritten Offering" shall mean a Registration in which
securities of the Company are sold to an underwriter in a firm commitment underwriting for distribution to the public. 


 
 

ARTICLE II
  REGISTRATIONS    
    


        2.01 Demand Registration.    Subject to the restrictions set forth below, if at any time after the consummation of
the initial Business Combination, the Company shall receive from the Holders (the "Requesting Holders") owning at least twenty-five percent
(25%) of the then outstanding shares of Registrable Securities as of the date of the request, a written request to register at least fifteen percent (15%) of the aggregate number of Registrable
Securities owned by all of the Requesting Holders as of the date of such request, then the Company will give notice of such request to all Holders within ten (10) days of receiving such request
and shall effect as soon thereafter as practicable, and in any event within forty-five (45) days of the receipt of such request, the Registration under the Securities Act of all
Registrable Securities which any Holder requests to be registered. The Company shall not be obligated to effect, or to take any action to effect, any such Registration pursuant to this  Section 2.01: 



        (a)   During
the period starting with the date sixty (60) days prior to the Company's good faith estimate of the date of filing of, and ending on a date one hundred
eighty (180) days after the effective date of, a Company-initiated Registration; provided that the Company has delivered notice of such Company-initiated Registration to the Holders prior to
its receipt of the Holders' written request for a demand Registration and it continues to actively employ in good faith all reasonable efforts to cause such Registration Statement to become effective;
or 


        (b)   if
the Holders have requested an Underwritten Registration, the Company and the Holders are unable to obtain the commitment of underwriters to firmly underwrite the
offer; or 


        (c)   if
in the good faith judgment of the Board, such Registration would be seriously detrimental to the Company and the Board concludes, as a result, that it is essential to
defer the filing of such Registration Statement at such time, and the Company shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment
of the Board, it would be seriously detrimental to the Company for such Registration Statement to be filed in the near future and that it is, therefore, essential to defer the filing of such
Registration Statement. In such event, the Company shall have the right to defer such filing (except as provided in subparagraph (a) above) for a period of not more than one hundred eighty
(180) days after receipt of the request of the Holders; provided, however, that the Company shall
not defer its obligation in this manner more than once in any 12-month period. 




Notwithstanding
the foregoing, the Company shall ensure that no such Registration shall become effective with respect to any Registrable Securities subject to an applicable Lock-up Period
until after the expiration of the applicable Lock-up Period. Furthermore, the
Company shall not be required to effect more than three (3) Registrations, which may be either Long-Form Registrations or Short-Form Registrations, under this  Section 2.01 on behalf of the
Holders; provided, however, that a Registration shall not be
counted for such purposes unless such Long-Form Registration has become effective and all of the Registrable Securities requested by the Requesting Holders to be registered on behalf of
the Requesting Holders in such Long-Form Registration have been sold, in accordance with Section 3.01(a) of this Agreement; and  provided, further, however, that the Company will not be obligated to effect any such Short-Form Registration: 



        (a)   if
Form S-3 is not available for such offering; 


        (b)   if
in the good faith judgment of the Board, such Registration would be seriously detrimental to the Company and the Board concludes, as a result, that it is essential to
defer the 



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filing
of such Registration Statement at such time, and the Company shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment of the
Board, it would be seriously detrimental to the Company for such Registration Statement to be filed in the near future and that it is, therefore, essential to defer the filing of such Registration
Statement. In such event, the Company shall have the right to defer such filing (except as provided in subparagraph (a) above) for a period of not more than one hundred eighty (180) days
after receipt of the request of the Holders; provided, however, that the Company shall not defer its obligation in this manner more than once in any
12-month period; 


        (c)   if
the Company has effected one (1) Short-Form Registration within the six (6) month period prior to the current request for
Short-Form Registration; or 


        (d)   if
the Registrable Securities to be covered by such registration statement do not, in the aggregate, exceed $500,000. 




        2.02 Piggyback Registration.    Each time the Company decides to file a Registration Statement under the
Securities Act (other than on Forms S-4 or S-8 or any successor form for the registration of securities issued or to be issued in connection with a merger or acquisition or
employee benefit plan), the Company shall give written notice thereof to the Holders as soon as practicable but in no event less than ten (10) business days before the intended filing date,
which notice shall disclose the amount and type of securities to be included in such Registration Statement, the intended method(s) of distribution and the name of the proposed managing underwriter or
underwriters, if any. The Company shall include in such Registration Statement such Registrable Securities for which it has received written requests for registration within ten (10) business
days after such written notice has been given. If in the good faith judgment of the managing underwriter in any Underwritten Offering, the inclusion of all of the Registrable Securities and any other
Common Stock (including shares of Common Stock issued or issuable upon the exercise or conversion of other securities of the Company) requested to be registered by third parties holding similar
registration rights (the "Other Securities") would interfere with the successful marketing of a smaller number of such securities, then the number of
Registrable Securities and Other Securities to be included in the offering (except for shares to be issued by the Company in an offering initiated by the Company) shall be reduced as provided herein.
The Company shall advise all holders of securities requesting registration of the underwriters' decision, and the number of securities that are entitled to be included in the Underwritten Registration
shall be allocated first to the Company for securities being sold for its own account and thereafter as set forth in Section 2.03 below. 


        2.03 Registration Cutback.    In any circumstance in which all of the Registrable Securities and Other Securities
requested to be included in a Registration on behalf of the Holders or other selling stockholders cannot be so included as a result of limitations of the aggregate number of Registrable Securities and
Other Securities that may be so included, the number of Registrable Securities and Other Securities that may be so included shall be allocated among the Holders and other selling stockholders
requesting inclusion of Registrable Securities and Other Securities pro rata on the basis of the number of Registrable Securities and Other Securities that would be held by such Holders and other
selling stockholders, assuming conversion. If any Holder or other selling stockholder does not request inclusion of the maximum number of shares of Registrable Securities and Other Securities
allocated to such Holder or other selling stockholder pursuant to the above-described procedure, the remaining portion of such Holder's or other selling stockholder's allocation shall be reallocated
among those requesting Holders and other selling stockholders whose allocations did not satisfy their requests, pro rata on the basis of the number of Registrable Securities and Other Securities which
would be held by such Holders and other selling stockholders, assuming conversion, and this procedure shall be repeated until all of the shares of Registrable Securities and Other Securities which may
be included in the registration on behalf of Holders and other selling stockholders have been so allocated. 


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        2.04 Cancellation of Registration.    A majority of the Requesting Holders shall have the right to cancel a
proposed Registration of Registrable Securities pursuant to Section 2.01 when, (i) in their discretion, market conditions are so
unfavorable as to be seriously detrimental to an offering pursuant to such Registration or (ii) the request for cancellation is based upon material adverse information relating to the Company
that is different from the information known to the Requesting Holders at the time of their written request for a Demand Registration. Such cancellation of a Registration shall not be counted as one
of the three (3) Registrations provided for in Section 2.01 above. 


        2.05 Suspension of Registration.    If the filing, initial effectiveness or continued use of a Registration
Statement in respect of a Demand Registration at any time would require the Company to make an Adverse Disclosure or would require the inclusion in such Registration Statement of financial statements
that are unavailable to the Company for reasons beyond the Company's control, the Company may, upon giving prompt written notice of such action to the Holders, delay the filing or initial
effectiveness of, or suspend use of, such Registration Statement for the shortest possible period of time determined in good faith by the Company to be necessary for such purpose. In the event the
Company exercises its rights under the preceding sentence, the Holders agree to suspend, immediately upon their receipt of the notice referred to above, their use of the prospectus relating to the
Demand Registration in connection with any sale or offer to sell Registrable Securities. The Company shall immediately notify the Holders of the expiration of any period during which it exercised its
rights under this Section 2.05. 


 
 

ARTICLE III
  COMPANY PROCEDURES    
    


        3.01 General Procedures.    If and whenever the Company is required to register Registrable Securities, the Company
will use its best efforts to effect such Registration to permit the sale of such Registrable Securities in accordance with the intended plan of distribution thereof, and pursuant thereto the Company
will as expeditiously as possible: 



        (a)   prepare
and file with the SEC as soon as practicable a Registration Statement with respect to such Registrable Securities and use its reasonable best efforts to cause
such Registration Statement to become effective and remain effective until the Registrable Securities covered by such Registration Statement have been sold; 


        (b)   prepare
and file with the SEC such amendments and post-effective amendments to the Registration Statement, and such supplements to the Prospectus, as may be
requested by the Holders or any underwriter of Registrable Securities or as may be required by the rules, regulations or instructions applicable to the registration form used by the Company or by the
Securities Act or rules and regulations thereunder to keep the Registration Statement effective until all Registrable Securities covered by such Registration Statement are sold in accordance with the
intended plan of distribution set forth in such Registration Statement or supplement to the Prospectus; 


        (c)   deliver
to the Holders and the underwriters, if any, without charge, as many copies of each Prospectus (and each preliminary prospectus) as such Persons may reasonably
request (the Company hereby consenting to the use of each such Prospectus (or preliminary prospectus) by the selling Holders and the underwriters, if any, in connection with the offering and sale of
the Registrable Securities covered by such Prospectus (or preliminary prospectus), and a reasonable number of copies of the then-effective Registration Statement and any
post-effective amendments thereto and any supplements to the Prospectus, including financial statements and schedules, all documents incorporated therein by reference and all exhibits
(including those incorporated by reference); 



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        (d)   prior
to any public offering of Registrable Securities, register or qualify or cooperate with the Holders, the underwriters, if any, and their respective counsel in
connection with the registration or qualification of such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions as such selling Holders or underwriters
may designate in writing and do anything else necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statement;  provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or
to take any action which would subject it to general service of process in any such jurisdiction where it is not then so subject; 



        (e)   cause
all such Registrable Securities to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then
listed; 


        (f)    provide
a transfer agent or warrant agent, as applicable, and registrar for all such Registrable Securities not later than the effective date of such Registration
Statement; 


        (g)   advise
each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the SEC
suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable best efforts to prevent the issuance of
any stop order or to obtain its withdrawal if such stop order should be issued; 


        (h)   at
least three (3) days prior to the filing of any Registration Statement or prospectus or any amendment or supplement to such Registration Statement or
prospectus or any document that is to be incorporated by reference into such Registration Statement or prospectus, furnish a copy thereof to each seller of such Registrable Securities or its counsel; 



        (i)    notify
the Holders at any time when a prospectus relating to such Registration Statement is required to be delivered under the Securities Act, of the happening of any
event as a result of which the prospectus included in such Registration Statement, as then in effect, includes a Misstatement, and then to correct such Misstatement as set forth in  Section 3.04;



        (j)    permit
a representative of the Holders, the underwriters, if any, and any attorney or accountant retained by such Holders or underwriter to participate, at each such
Person's own expense, in the preparation of the Registration Statement, and cause the Company's officers, directors and employees to supply all information reasonably requested by any such
representative, underwriter, attorney or accountant in connection with the Registration; provided,  however, that such representatives or underwriters enter
into a confidentiality agreement, in form and substance reasonably satisfactory to the Company,
prior to the release or disclosure of any such information; 


        (k)   obtain
a "cold comfort" letter from the Company's independent public accountants in the event of an Underwritten Registration, in customary form and covering such
matters of the type customarily covered by "cold comfort" letters as the managing underwriter may reasonably request, and reasonably satisfactory to a majority in interest of the participating
Holders; 


        (l)    on
the date the Registrable Securities are delivered for sale pursuant to such Registration, obtain an opinion, dated such date, of counsel representing the Company for
the purposes of such Registration, addressed to the Holders, the placement agent or sales agent, if any, and the underwriters, if any, covering such legal matters with respect to the Registration in
respect of which such opinion is being given as the Holders, placement agent, sales agent, or underwriter may reasonably request and as are customarily included in such opinions, and reasonably
satisfactory to a majority in interest of the participating Holders; 



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        (m)  in
the event of any Underwritten Offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing
underwriter of such offering; 


        (n)   make
available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first
day of the Company's first full calendar quarter after the effective date of the Registration Statement which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder; 


        (o)   if
the Registration involves the registration of Registrable Securities involving gross proceeds in excess of $100,000,000, use its reasonable efforts to make available
senior executives of the Company
and its subsidiaries to participate in customary "road show" presentations that may be reasonably requested by the underwriter in any Underwritten Offering; and 



        (p)   otherwise
cooperate reasonably with, and take such customary actions as may reasonably be requested by the Holders, in connection with such Registration. 




        3.02 Registration Expenses.    The Registration Expenses of all Registrations shall be borne by the Company. It is
acknowledged by the Holders that the Holders will bear all incremental selling expenses relating to the sale of the Registrable Securities, such as underwriters' commissions and discounts, brokerage
fees, underwriter marketing costs and, other than as set forth in the definition of "Registration Expenses," all fees and expenses of any legal counsel representing the Holders. 



        3.03 Requirements for Participation in Underwritten Offerings.    No person may participate in any Underwritten
Offering for equity securities of the Company pursuant to a Registration initiated by the Company hereunder unless such Person (a) agrees to sell such Person's securities on the basis provided
in any underwriting arrangements approved by the Company and (b) completes and executes all questionnaires, powers of attorney, indemnities, lock-up agreements, underwriting
agreements and other documents required under the terms of such underwriting arrangements. 


        3.04 Suspension of Sales.    Upon receipt of written notice from the Company that a Registration Statement or
Prospectus contains a Misstatement, each of the Holders shall forthwith discontinue disposition of Registrable Securities until it has received copies of a supplemented or amended Prospectus
correcting the Misstatement (it being understood that the Company hereby covenants to prepare and file such supplement or amendment as soon as practicable after the time of such notice), or until it
is advised in writing by the Company that the use of the Prospectus may be resumed. 


        3.05 Reporting Obligations.    As long as any Holder shall own Registrable Securities, the Company, at all times
while it shall be reporting under the Exchange Act, covenants to file timely (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders with true and complete copies of all such filings. The Company
further covenants that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell shares of Common Stock held by
such Holder without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act
("Rule 144"), including providing any legal opinions. Upon the request of any Holder, the Company shall deliver to such Holder a written
certification of a duly authorized officer as to whether it has complied with such requirements. 


        3.06 Indemnification. 



        (a)   The
Company agrees to indemnify, to the extent permitted by law, the Holder of Registrable Securities, its officers and directors and each Person who controls such
Holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses (including attorneys' fees) caused by any untrue or alleged untrue statement of material
fact 



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contained
in any Registration Statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such Holder
expressly for use therein. The Company will indemnify the underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the
same extent as provided above with respect to the indemnification of the Holder. 



        (b)   In
connection with any Registration Statement in which a Holder of Registrable Securities is participating, such Holder will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or prospectus and, to the extent permitted by law, will indemnify the Company,
its directors and officers and agents and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses (including
without limitation reasonable attorneys' fees) resulting from any untrue statement of material fact contained in the Registration Statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue
statement or omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein; provided, however,
that the obligation to indemnify will be several, not joint and several, among such Holders of Registrable Securities, and the liability of each such Holder of Registrable Securities will be in
proportion to and limited to the gross proceeds received by such Holder from the sale or Registrable Securities pursuant to such Registration Statement. The Holders of Registrable Securities will
indemnify the underwriters, their officers, directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to
indemnification of the Company. 


        (c)   Any
Person entitled to indemnification herein will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not impair any Person's right to indemnification hereunder to the extent such failure has not materially prejudiced the
indemnifying party) and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such
claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party will not be
subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or
elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such
claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim.
No indemnifying party shall, without the consent of the indemnified party, consent to the entry
of any judgment or enter into any settlement which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such
settlement) or which settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such
claim or litigation. 


        (d)   The
indemnification provided for under this Agreement will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party
or any officer, director or controlling person of such indemnified party and will survive the transfer of securities. The Company and each Holder of Registrable Securities participating in the
offering also agrees to 



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make
such provisions as are reasonably requested by any indemnified party for contribution to such party in the event the Company's or such Holder's indemnification is unavailable for any reason. 


        (e)   If
the indemnification provided for in this Section 3.06 from the indemnifying party is unavailable or
insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party, in lieu of indemnifying the
indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to
reflect the relative fault of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and indemnified
party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, was made by, or relates to information supplied by, such indemnifying party or indemnified party, and the indemnifying party's and indemnified party's relative intent,
knowledge, access to information and opportunity to correct or prevent such action; provided, however, that the liability of any Holder under this  Section 3.06(e)
 shall be limited to the amount of the gross proceeds received by such Holder in the offering giving rise to such liability. The
amount paid or payable by a party as a result of the losses or other liabilities referred to above shall be deemed to include, subject to the limitations set forth in subsections (a) through
(c) above, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 3.06(e) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in this Section 3.06(e). No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this  Section 3.06(e) from any Person
who was not guilty of such fraudulent misrepresentation. 



 
 

ARTICLE IV
  MISCELLANEOUS    
    


        4.01 Notices.    Any notice or communication under this Agreement must be in writing and given by
(a) deposit in the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested, (b) delivery in person or by
courier service providing evidence of delivery, or (c) transmission by telecopy. Each notice or communication that is mailed, delivered, or transmitted in the manner described above shall be
deemed sufficiently given, served, sent, and received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in the case of notices delivered by hand,
courier service, or telecopy, at such time as it is delivered to the addressee (with the delivery receipt or the affidavit of messenger) or at such time as delivery is refused by the addressee upon
presentation. Any notice or communication under this Agreement must be addressed to the addressee at the address set forth below such Person's signature on the signature pages to this Agreement. Any
party may change its address for notice at any time and from time to time by written notice to the other parties hereto, and such change of address will become effective thirty (30) days after
delivery of such notice as provided in this Section 4.01. 


        4.02 Assignment; No Third Party Beneficiaries. 



        (a)   This
Agreement and the rights, duties and obligations of the Company hereunder may not be assigned by the Company in whole or in part. Prior to the expiration of the
Lock-up Period, this Agreement and the rights, duties and obligations of the Holders hereunder may be assigned by any Holder of Registrable Securities in conjunction with and to the extent
of any valid transfer of such Registrable Securities by any such Holder. Following the expiration of the Lock-up Period, 



10







 

only
the Sponsor may assign or delegate their rights, duties and obligations hereunder in conjunction with and to the extent of any valid transfer of the Registrable Securities held by the Sponsor. 


        (b)   No
assignment by any party hereto of such party's rights, duties and obligations hereunder shall be binding upon or obligate the Company unless and until the Company
shall have received (i) written notice of such assignment as provided in Section 4.01 hereof and (ii) the written agreement of the
assignee, in a form reasonably satisfactory to the Company, to be bound by the terms and provisions of this Agreement (which may be accomplished by an addendum or certificate of joinder to this
Agreement). Any transfer or assignment made other than as provided in this Section 4.02 shall be null and void. 


        (c)   This
Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective successors and the permitted
assigns of the Holders or of any assignee of the Holders. This Agreement is not intended to confer any rights or benefits on any persons not a party hereto other than as expressly set forth in this  Section 4.02. 




        4.03 Counterparts.    This Agreement may be executed in multiple counterparts (including facsimile counterparts),
each of which shall be deemed an original, and all of which together shall constitute the same instrument, but only one of which need be produced. 


        4.04 Governing Law; Venue.    NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES
HERETO, THE PARTIES EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF DELAWARE AS APPLIED TO AGREEMENTS AMONG DELAWARE RESIDENTS ENTERED INTO AND TO
BE PERFORMED ENTIRELY WITHIN DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS OF SUCH JURISDICTION. 



        4.05 Amendments and Modifications.    Upon the written consent of the Company and the Holders who hold at least
sixty-six and two-thirds percent (662/3%) of the Registrable Securities, compliance with any of the provisions, covenants and conditions set forth in this
Agreement may be waived, or any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the
foregoing, any amendment hereto or waiver hereof that adversely affects one Holder, solely in its capacity as a holder of the shares of capital stock of the Company, in a manner that is materially
different from the other Holders (in such capacity) shall require the consent of the Holder so affected. No course of dealing between any Holder or the Company and any other party hereto or any
failure or delay on the part of a Holder or the Company in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or remedies of any Holder or the Company. No
single or partial exercise of any rights or remedies under this Agreement by a party shall operate as a waiver or preclude the exercise of any other rights or remedies hereunder or thereunder by such
party. 


        4.06 Other Registration Rights.    The Company will not grant to any Person the right to require the Company to
register any equity securities of the Company, or any securities convertible or exchangeable into or exercisable for such securities, which conflicts with the registration rights granted hereunder. 



        4.07 Termination.    This Agreement shall terminate and the registration rights granted hereunder shall expire on
the date that is five (5) years after the Prospectus Date; provided that such termination and expiration shall not affect registration rights exercised prior to such date. 


[SIGNATURE PAGES FOLLOW]


11









        IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above. 



	 	COMPANY:
	

 	
CAPSTAR ACQUISITION CORP.,

a Delaware corporation
	

 	

By:	

    
 John D. Cullen
 President
	

 	

 	

Address:	
 	

600 Congress Ave., Suite 1400

Austin, Texas 78701

Fax: (            )            -            
	

 	
HOLDERS:
	

 	
CAPSTAR ACQUISITION MANAGEMENT, LP,

a Texas limited partnership
	

 	

By:	

Capstar Acquisition Management GP, LLC,

its general partner
	

 	

By:	

    
 R. Steven Hicks
 Sole Member
	

 	

 	

Address:	
 	

600 Congress Ave., Suite 1400

Austin, Texas 78701

Fax: (            )            -            
	

 	

 	

    
 James R. Huffines
	

 	

 	

Address:	
 	

919 Congress Ave., Suite 600

Austin, Texas 78701

Fax: (            )            -            




Signature Page to

Registration Rights Agreement  









	 	 	    
 Frederick G. Kraegel
	

 	

 	

Address:	
 	

1225 Hyde Lane

Richmond, Virginia 23229

Fax: (            )            -            
	

 	

 	

    
 Timothy J. Lindgren
	

 	

 	

Address:	
 	

c/o Hyatt Regency Atlanta

Regional Offices

265 Peachtree Street, NE

Atlanta, Georgia 30303

Fax: (            )            -            




Signature Page to

Registration Rights Agreement  











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Exhibit 10.7


FORM OF REGISTRATION RIGHTS AGREEMENT

RECITALS

STATEMENT OF AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II REGISTRATIONS

ARTICLE III COMPANY PROCEDURES

ARTICLE IV MISCELLANEOUS