Document:

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Exhibit
10.7

REGISTRATION RIGHTS AGREEMENT

This registration rights agreement (this
‘‘Agreement’’) is entered into as of the
             day of                             ,
2006, by and among Bank Street Telecom Funding Corp., a Delaware
corporation (the ‘‘COMPANY’’) and each of the
undersigned parties listed under Initial Stockholders on the signature
page hereto (each, an ‘‘INITIAL STOCKHOLDER’’
and collectively, the ‘‘INITIAL
STOCKHOLDERS’’).

WHEREAS, the Initial
Stockholders, collectively, hold all of the issued and outstanding
securities of the Company as of the date hereof;

WHEREAS, the Initial Stockholders and the Company
desire to enter into this Agreement to provide the Initial Stockholders
with certain rights relating to the registration of shares of Common
Stock and Founding Warrants (each as defined below) held by them;

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.    DEFINITIONS.    The following
capitalized terms used herein have the following meanings:

‘‘AGREEMENT’’ means this
Agreement, as amended, restated, supplemented, or otherwise modified
from time to time.

‘‘BUSINESS
COMBINATION’’ means the acquisition by the Company,
whether by merger, capital stock exchange, asset acquisition, stock
purchase or other business combination transaction, of one or more
operating businesses in the communications industry, having,
collectively, a fair market value (as calculated in accordance with the
Company's Amended and Restated Certificate of Incorporation)
equal to at least 80% of the balance (subject to certain
exclusions) of the Company's trust account at JPMorgan Chase
Bank, NA, maintained by Continental Stock Transfer & Trust Company
acting as trustee at the time of such acquisition.

‘‘BSM’’ means BSTFC Management LLC.

‘‘BSM Demand Registration’’ is defined in
Section 2.1.2.

‘‘BSM Securities’’ means
any Registrable Securities owned or held by BSM.

‘‘BUSINESS DAY’’ means any
day, except a Saturday, Sunday or legal holiday on which the banking
institutions in the City of New York are authorized or obligated by law
or executive order to close.

‘‘COMMISSION’’ means the
Securities and Exchange Commission, or such successor federal agency or
agencies as may be established in lieu thereof.

‘‘COMMON STOCK’’ means the
common stock, par value $0.0001 per share, of the Company.

‘‘COMPANY’’ is defined in the
preamble to this Agreement.

‘‘DEMAND
REGISTRATION’’ is defined in Section 2.1.1.

‘‘DEMANDING HOLDER’’ is
defined in Section 2.1.1.

‘‘EXCHANGE
ACT’’ means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated
thereunder.

‘‘FOUNDING WARRANTS’’ means
(i) the certain warrants, each of which entitles the holder thereof to
purchase one share of the Company's Common Stock, to be sold to
the Initial Stockholders pursuant to that certain Founding Warrant
Purchase Agreement, dated as of the date hereof, between the Company
and the Initial Stockholders, (ii) any shares of Common Stock purchased
upon the exercise of such warrants and (iii) any warrants, shares of
capital stock or other securities of the Company issued as a dividend
or other distribution with respect to or in exchange for or in
replacement of such shares of Common Stock.

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‘‘FORM
S-3’’ is defined in Section 2.3.

‘‘INDEMNIFIED PARTY’’ is
defined in Section 4.3.

‘‘INDEMNIFYING
PARTY’’ is defined in Section 4.3.

‘‘INITIAL STOCKHOLDER’’ is
defined in the preamble to this Agreement.

‘‘INITIAL STOCKHOLDER INDEMNIFIED
PARTY’’ is defined in Section 4.1.

‘‘INITIAL STOCKHOLDER SHARES’’ means all of
the Common Stock now owned or held or acquired after the date hereof by
the Initial Stockholders as of the date hereof and any warrants, shares
of capital stock or other securities of the Company issued as a
dividend or other distribution with respect to or in exchange for or in
replacement of such shares of Common
Stock.

‘‘MAXIMUM NUMBER OF
SHARES’’ is defined in Section 2.1.5.

‘‘NOTICES’’ is defined in
Section 6.2.

‘‘PIGGY-BACK
REGISTRATION’’ is defined in Section 2.2.1.

‘‘PROSPECTUS’’ means a
prospectus relating to a Registration Statement, as amended or
supplemented, and all materials incorporated by reference in such
Prospectus.

‘‘REGISTER,’’
‘‘REGISTERED’’ and
‘‘REGISTRATION’’ mean a
registration effected by preparing and filing a registration statement
or similar document under the Securities Act and such registration
statement becoming effective.

‘‘REGISTRABLE
SECURITIES’’ means the Initial Stockholder Shares
and the Founding Warrants; provided, however, that the
Initial Stockholder Shares and the Founding Warrants shall only be
deemed ‘‘Registrable Securities’’ after their
respective Release Dates. As to any particular Registrable Securities,
such securities shall cease to be Registrable Securities when: (a) a
Registration Statement with respect to the sale of such securities
shall have become effective under the Securities Act and such
securities shall have been sold, transferred, disposed of or exchanged
in accordance with such Registration Statement; (b) such securities
shall have been otherwise transferred, new certificates for them not
bearing a legend restricting further transfer shall have been delivered
by the Company and subsequent public distribution of them shall not
require registration under the Securities Act; (c)  such
securities shall have ceased to be outstanding; or (d) the Securities
and Exchange Commission makes a definitive determination to the Company
that the Registrable Securities are saleable under Rule 144(k). For the
purpose of this Agreement, a
‘‘majority-in-interest’’ of Registrable
Securities will be calculated assuming any warrants (or other
securities or obligations exercisable or exchangeable for or
convertible into Common Stock) held by the applicable group of holders
were exercised (or exchanged or converted) for one or more shares, as
the case may be, of Common Stock, in accordance with the terms of such
warrants (or such other securities or obligations).

‘‘REGISTRATION STATEMENT’’
means a registration statement filed by the Company with the Commission
in compliance with the Securities Act and the rules and regulations
promulgated thereunder for a public offering and sale of Common Stock
(other than a registration statement on Form S-4 or Form S-8, or their
successors, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another
entity or to register shares issued in connection with an acquisition
or a bona fide business transaction).

‘‘RELEASE DATES’’ means (i)
with respect to the Founding Warrants, the date of consummation of the
Company's initial Business Combination, and (ii) with respect to
the Initial Stockholder Shares, one year from the date of consummation
of the Company's initial Business Combination.

‘‘SECURITIES ACT’’ means the
Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder.

‘‘UNDERWRITER’’ means a
securities dealer who purchases any Registrable Securities as principal
in an underwritten offering and not as part of such dealer's
market-making activities.

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2.    REGISTRATION
RIGHTS.

2.1.    Demand
Registration.

2.1.1.    General Request for
Registration.    At any time and from time to time on or after
the first Release Date, the holders of a majority-in-interest of the
Registrable Securities (including any BSM Securities) held by the
Initial Stockholders or their transferees may make a written demand for
registration under the Securities Act of all or part of their
Registrable Securities (a ‘‘DEMAND
REGISTRATION’’). Any demand for a Demand Registration shall
specify the number of Registrable Securities proposed to be sold and
the intended method(s) of distribution thereof. The Company will notify
all holders of Registrable Securities of any demand pursuant to this
Section 2.1.1, or pursuant to Section 2.1.2 below, as the case may be,
within ten (10) Business Days, and each holder of Registrable
Securities who wishes to include all or a portion of such
holder's Registrable Securities in such Demand Registration (each
such holder including shares of Registrable Securities in such Demand
Registration, a ‘‘DEMANDING
HOLDER’’) shall so notify the Company within ten
(10) Business Days after the receipt by the holder of the notice from
the Company. Upon any such request, the Demanding Holders shall be
entitled to have their Registrable Securities included in the Demand
Registration subject to Section 2.1.5 and the provisions set forth in
Section 3.1.1. The Company shall not be obligated to effect more than
an aggregate of three (3) Demand Registrations under this Section 2.1.1
in respect of Registrable Securities; provided, however, that
the number of Demand Registrations permitted hereby shall be reduced by
the number of BSM Demand Registrations effected by the Company pursuant
to Section 2.1.2 below.

2.1.2.    BSM Request for
Registration.    At any time and from time to time on or after
the first Release Date, BSM may make a written demand for registration
under the Securities Act of all or part of the BSM Securities (a
‘‘BSM Demand Registration’’). Any demand for a
BSM Demand Registration shall specify the number of BSM Securities
proposed to be sold and the intended method(s) of distribution thereof.
The Company shall not be obligated to effect more than an aggregate of
three (3) BSM Demand Registrations under this Section 2.1.2;
provided, however, that the number of BSM Demand Registrations
permitted hereby shall be reduced by the number of Demand Registrations
effected by the Company pursuant to Section 2.1.1 above.

2.1.3.    Effective Registration.    A
registration will not count as a Demand Registration or a BSM Demand
Registration, as the case may be, until the Registration Statement
filed with the Commission with respect to such Demand Registration or
BSM Demand Registration, as the case may be, has been declared
effective and the Company has complied with all of its obligations
under this Agreement with respect thereto; provided, however, that if,
after such Registration Statement has been declared effective, the
offering of Registrable Securities pursuant to a Demand Registration or
BSM Securities pursuant to a BSM Demand Registration is interfered with
by any stop order or injunction of the Commission or any other
governmental agency or court, the Registration Statement with respect
to such Demand Registration or BSM Demand Registration will be deemed
not to have been declared effective, unless and until, (i) such stop
order or injunction is removed, rescinded or otherwise terminated, and
(ii) with respect to a Demand Registration, a majority-in-interest of
the Demanding Holders thereafter elect to continue the offering, or
with respect to a BSM Demand Registration, BSM thereafter elects to
continue the offering; provided, further, that the Company shall not be
obligated to file a second Registration Statement until any such
Registration Statement that has been filed is counted as a Demand
Registration or a BSM Demand Registration, as the case may be, or is
terminated.

2.1.4.    Underwritten
Offering.    If a majority-in- interest of the Demanding Holders
so elect and such holders so advise the Company as part of their
written demand for a Demand Registration, or if BSM elects and advises
the Company as part of its written demand for a BSM Demand
Registration, the offering of such Registrable Securities pursuant to
such Demand Registration or a BSM Demand Registration shall be in the
form of an underwritten offering. In each such case, the right of any
holder to include such holder's Registrable Securities in such
registration shall be conditioned upon such holder's
participation in such underwriting on the terms required by the
Underwriter or the Company, including, without limitation, execution of
custody agreements, 

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powers of attorney and lock-ups and agreement
to execute the underwriting agreement, and the inclusion of such
holder's Registrable Securities in the underwriting to the extent
provided herein. All Demanding Holders who propose to distribute their
Registrable Securities through such an underwriting shall enter into an
underwriting agreement in customary form with the Underwriter or
Underwriters selected for such underwriting by a majority-in-interest
of the holders initiating the Demand Registration and shall be
responsible for satisfying any closing conditions relevant to such
holder. If BSM proposes to distribute Registrable Securities through an
underwriting, BSM shall enter into an underwriting agreement in
customary form with the Underwriter or Underwriters selected by BSM,
provided that such Underwriter or Underwriters is acceptable to the
Company.

2.1.5.    Reduction of
Offering.    If the managing Underwriter or Underwriters for a
Demand Registration or BSM Demand Registration that is to be an
underwritten offering advises the Company and the Demanding Holders or
BSM in writing that the dollar amount or number of Registrable
Securities that the Demanding Holders or BSM desire to sell, taken
together with all other shares of Common Stock or other securities that
the Company desires to sell and the shares of Common Stock or Founding
Warrants, if any, as to which registration has been requested pursuant
to written contractual piggy-back registration rights held by other
holders of the Company's securities who desire to sell
securities, exceeds the maximum dollar amount or maximum number of
securities that can be sold in such offering without adversely
affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum
dollar amount or maximum number of securities, as applicable, the
‘‘MAXIMUM NUMBER OF SHARES’’), then the Company
shall include in such registration:

			
		(i) 	first, in
the case of a Demand Registration, the Registrable Securities as to
which the Demand Registration has been requested that can be sold
without exceeding the Maximum Number of Shares (all pro rata in
accordance with the number of Registrable Securities beneficially held
by any holder participating in the Offering) and in the case of a BSM
Demand Registration, the BSM securities requested to be included in
such registration that can be sold without exceeding the Maximum Number
of Shares;

			
		(ii) 	second, to the extent that the
Maximum Number of Shares has not been reached under the foregoing
clause (i),

			
		(A) 	in the case of a Demand
Registration, the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; and

			
		(B) 	in the case of a BSM
Demand Registration, the Registrable Securities as to which
registration has been requested by the Initial Stockholders other than
BSM that can be sold without exceeding the Maximum Number of Shares
(pro rata in accordance with the number of shares or other securities
which each such person has actually requested to be included in such
registration); and to the extent that the Maximum Number of Shares has
not been reached under the foregoing of this clause (B), the shares of
Common Stock or other securities that the Company desires to sell that
can be sold without exceeding the Maximum Number of Shares;

			
		(iii) 	third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (i) and (ii),
the shares of Common Stock or other securities for the account of other
persons that the Company is obligated to register pursuant to written
contractual arrangements with such persons and that can be sold without
exceeding the Maximum Number of Shares; and

			
		(iv) 	fourth, to the extent that the Maximum Number of
Shares have not been reached under the foregoing clauses (i), (ii) and
(iii), the shares of Common Stock or other securities that other
security holders desire to sell that can be sold without exceeding the
Maximum Number of Shares.

2.1.6.    Withdrawal.    In the case of a Demand
Registration, if any of the Demanding Holders disapprove of the terms
of any underwriting or are not entitled to include all of their

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Registrable Securities in any offering, such
majority-in-interest of the Demanding Holders may elect to withdraw
from such offering by giving written notice to the Company and the
Underwriter or Underwriters of their request to withdraw prior to the
effectiveness of the Registration Statement filed with the Commission
with respect to such Demand Registration. In the case of a BSM Demand
Registration, if BSM disapproves of the terms of any Underwriting or is
not entitled to include all of the BSM Securities in any offering, BSM
may elect to withdraw from such offering by giving written notice to
the Company and the Underwriter or Underwriters of their request to
withdraw prior to the effectiveness of the Registration Statement filed
with the Commission with respect to the BSM Demand Registration. In
such event, the Company need not seek effectiveness of such
Registration Statement. If the majority-in-interest of the Demanding
Holders in the case of a Demand Registration or BSM in the case of a
BSM Demand Registration withdraws from a proposed offering relating to
a Demand Registration then such registration shall not count as a
Demand Registration provided for in Sections 2.1.1 and 2.1.2.

2.2.    Piggy-Back Registration.

2.2.1.    Piggy-Back Rights.    If at any time on
or after the first Release Date the Company proposes to file by
Registration Statement with respect to a specific offering of equity
securities or securities or other obligations exercisable or
exchangeable for or convertible into equity securities, other than a
Registration Statement (i) in connection with a transaction
contemplated by Rule 145(a) promulgated under the Securities Act, (ii)
on Form S-8, (iii) for an exchange offer or offering of securities
solely to the Company's existing Stockholders, (iv) for an
offering of debt that is convertible into the equity securities of the
Company, (v) for a dividend reinvestment plan, or (vi) solely in
connection with a merger, consolidation or non-capital raising bona
fide business transaction, then the Company shall (a) give written
notice of such proposed filing to the holders of Registrable Securities
as soon as practicable but in no event less than fifteen (15) Business
Days before the printing of any red herring (or similar prospectus)
with respect thereto, which notice shall describe the amount and type
of securities to be included in such offering, the intended method(s)
of distribution, and the name of the proposed managing Underwriter or
Underwriters, if any, of the offering, and (b) offer to the holders of
Registrable Securities in such notice the opportunity to register such
number of Registrable Securities as such holders may request in writing
within ten (10) Business Days following receipt of such notice (a
‘‘PIGGY-BACK REGISTRATION’’). The Company shall
cause such Registrable Securities to be included in such registration
and shall use commercially reasonable efforts to cause the managing
Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a
Piggy-Back Registration to be included on the same terms and conditions
as any similar securities of the Company and to permit the sale or
other disposition of such Registrable Securities in accordance with the
intended method(s) of distribution thereof. All holders of Registrable
Securities who propose to distribute securities through a Piggy-Back
Registration that involves an Underwriter or Underwriters shall enter
into an underwriting agreement in customary form and agree to other
customary terms, including as to power of attorney, custody agreements
and lock up) with the Underwriter or Underwriters selected for such
Piggy-Back Registration.

2.2.2.    Reduction of
Offering.    If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises
the Company and the holders of Registrable Securities that the dollar
amount or number of shares of Common Stock or other securities that the
Company desires to sell, taken together with shares of Common Stock or
other securities, if any, as to which registration has been demanded
pursuant to written contractual arrangements with persons other than
the holders of Registrable Securities hereunder, the Registrable
Securities as to which registration has been requested under this
Section 2.2, and the shares of Common Stock or other securities, if
any, as to which registration has been requested pursuant to the
written contractual piggy-back registration rights of other
shareholders of the Company, exceeds the Maximum Number of Shares, then
the Company shall include in any such registration:

			
		(i) 	If the registration is undertaken for the
Company's account,

			
		(A) 	first, the shares of
Common Stock or other securities that the Company desires to sell that
can be sold without exceeding the Maximum Number of
Shares;

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		(B) 	second, to the extent
that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities
(including the Registrable Securities) as to which registration has
been requested pursuant to written contractual piggy-back registration
rights of security holders (including this Agreement) that can be sold
without exceeding the Maximum Number of Shares (pro rata in accordance
with the number of shares or other securities which each such person
has actually requested to be included in such registration);
and

			
		(C) 	third, to the extent that the Maximum
Number of Shares have not been reached under the foregoing clauses (A)
and (B), the shares of Common Stock or other securities that other
security holders desire to sell that can be sold without exceeding the
Maximum Number of Shares.

			
		(ii) 	If the registration
is a ‘‘demand’’ registration undertaken by
persons with demand rights pursuant to a written contractual
arrangement other than this Agreement,

			
		(A) 	first,
the shares of Common Stock or other securities for the account of the
demanding persons pursuant to such other written contractual
arrangement that can be sold without exceeding the Maximum Number of
Shares;

			
		(B) 	second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A),
the shares of Common Stock or other securities that the Company desires
to sell that can be sold without exceeding the Maximum Number of
Shares;

			
		(C) 	third, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clauses (A)
and (B), the shares of Common Stock or other securities (including the
Registrable Securities) as to which registration has been requested
pursuant to written contractual piggy-back registration rights of
security holders (including this Agreement) that can be sold without
exceeding the Maximum Number of Shares (pro rata in accordance with the
number of shares or other securities which each such person has
actually requested to be included in such registration);
and

			
		(D) 	fourth, to the extent that the Maximum
Number of Shares have not been reached under the foregoing clauses (A),
(B) and (C), the shares of Common Stock or other securities that other
security holders desire to sell that can be sold without exceeding the
Maximum Number of
Shares.

2.2.3.    Withdrawal.    Any holder of
Registrable Securities may elect to withdraw such holder's
request for inclusion of Registrable Securities in any Piggy-Back
Registration by giving written notice to the Company of such request to
withdraw prior to the effectiveness of the Registration Statement;
provided, that no withdrawal shall be permitted after red herring
prospectuses (or similar prospectuses) are printed without the consent
of the Company, which consent shall not be unreasonably withheld. The
Company may also elect to withdraw a registration statement at any time
prior to the effectiveness of the Registration Statement.
Notwithstanding any such withdrawal, the Company shall pay all expenses
incurred by the holders of Registrable Securities in connection with
such Piggy-Back Registration as provided in Section 3.3.

2.3.    Registrations on Form S-3    The holders
of Registrable Securities may at any time and from time to time after
the Release Date, request in writing that the Company register the
resale of any or all of such Registrable Securities on Form S-3 or any
similar short-form registration that may be available at such time
(‘‘FORM S-3’’); provided, however, that: (a)
Form S-3 is available for such offering, (b) the Company shall not be
obligated to effect such request through an underwritten offering and
(c) the Company shall not be obligated to effect such a request if the
Company has within the preceding twelve (12) month period effected a
registration on Form S-3, either pursuant to this Section 2.3 or
otherwise. Upon receipt of such written request, the Company will
promptly give written notice of the proposed registration to all other
holders of Registrable Securities and, as soon as practicable
thereafter, effect the registration of all or such portion of such
holder's or holders' Registrable Securities, as the case
may be, as are specified in such request, together with all or such

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portion of the Registrable Securities of any
other holder or holders joining in such request as are specified in a
written request given within five (5) Business Days after receipt of
such written notice from the Company; provided, however, that the
Company shall not be obligated to effect any such registration pursuant
to this Section 2.3: (i) if Form S-3 is not available for such
offering; or (ii) if the holders of the Registrable Securities,
together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at any aggregate price to
the public of less than $500,000. Registrations effected pursuant to
this Section 2.3 shall not be counted as Demand Registrations or BSM
Demand Registrations effected pursuant to Section 2.1.

3.    REGISTRATION PROCEDURES.

3.1.    Filings; Information.    Whenever the
Company is required to effect the registration of any Registrable
Securities pursuant to Section 2, the Company shall use commercially
reasonable efforts to effect the registration and sale of such
Registrable Securities in accordance with the intended method(s) of
distribution thereof as expeditiously as practicable, and in connection
with any such request:

3.1.1.    Filing
Registration Statement.    The Company shall, within sixty (60)
days after receipt of a request for a Demand Registration pursuant to
Section 2.1, prepare and file with the Commission a Registration
Statement on any form for which the Company then qualifies or which
counsel for the Company shall deem appropriate and which form shall be
available for the sale of all Registrable Securities to be registered
thereunder in accordance with the intended method(s) of distribution
thereof, and shall use commercially reasonable efforts to cause such
Registration Statement to become and remain effective for the period
required by Section 3.1.3; provided, however, that the Company shall
have the right to defer any Demand Registration for up to ninety (90)
days (or such longer period if the Company does not have available the
required financial statements (including those of acquired businesses)
to file and cause the Registration Statement to become effective), and
any Piggy-Back Registration for such period as may be applicable to
deferment of any demand registration to which such Piggy-Back
Registration relates, in each case if the Company shall furnish to the
holders a certificate signed by the Chief Executive Officer or Chief
Financial Officer of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, it would be
detrimental to the Company and its shareholders for such Registration
Statement to be effected at such time; provided further, however, that
the Company shall not have the right to exercise the right set forth in
the immediately preceding proviso more than twice in any 365-day period
in respect of a Demand Registration hereunder.

3.1.2.    Copies.    The Company shall, prior to
filing a Registration Statement or Prospectus, or any amendment or
supplement thereto, furnish without charge to the holders of
Registrable Securities included in such registration, and such
holders' legal counsel, copies of such Registration Statement as
proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and
documents incorporated by reference therein), the Prospectus included
in such Registration Statement (including each preliminary Prospectus),
and such other documents as the holders of Registrable Securities
included in such registration or legal counsel for any such holders may
reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such holders.

3.1.3.    Amendments and Supplements.    The
Company shall prepare and file with the Commission such amendments,
including post-effective amendments, and supplements to such
Registration Statement and the Prospectus used in connection therewith
as may be necessary to keep such Registration Statement effective and
in compliance with the provisions of the Securities Act until all
Registrable Securities, and all other securities covered by such
Registration Statement, have been disposed of in accordance with the
intended method(s) of distribution set forth in such Registration
Statement (which period shall not exceed the sum of one hundred eighty
(180) days plus any period during which any such disposition is
interfered with by any stop order or injunction of the Commission or
any governmental agency or court) or such securities have been
withdrawn.

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3.1.4.    Notification.    After
the filing of a Registration Statement, the Company shall promptly, and
in no event more than five (5) Business Days after such filing, notify
the holders of Registrable Securities included in such Registration
Statement of such filing, and shall further notify such holders
promptly and confirm such advice in writing in all events within three
(3) Business Days of the occurrence of any of the following: (i) when
such Registration Statement becomes effective; (ii) when any
post-effective amendment to such Registration Statement becomes
effective; (iii) the issuance or threatened issuance by the Commission
of any stop order (and the Company shall take all actions required to
prevent the entry of such stop order or to remove it if entered); and
(iv) any request by the Commission for any amendment or supplement to
such Registration Statement or any Prospectus relating thereto or for
additional information or of the occurrence of an event requiring the
preparation of a supplement or amendment to such Prospectus so that, as
thereafter delivered to the purchasers of the securities covered by
such Registration Statement, such Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements
therein not misleading, and promptly make available upon request to the
holders of Registrable Securities included in such Registration
Statement any such supplement or amendment; except that before filing
with the Commission a Registration Statement or Prospectus or any
amendment or supplement thereto, including documents incorporated by
reference, the Company shall furnish to the holders of Registrable
Securities included in such Registration Statement and to the legal
counsel for any such holders who have requested such documents, copies
of all such documents proposed to be filed sufficiently in advance of
filing to provide such holders and legal counsel with a reasonable
opportunity to review such documents and comment thereon, and the
Company shall not file any Registration Statement or Prospectus or
amendment or supplement thereto, including documents incorporated by
reference, to which such holders or their legal counsel shall
reasonably object.

3.1.5.    State Securities Laws
Compliance.    The Company shall use commercially reasonable
efforts to (i) register or qualify the Registrable Securities covered
by the Registration Statement under such securities or
‘‘blue sky’’ laws of such jurisdictions in the
United States as the holders of Registrable Securities included in such
Registration Statement (in light of their intended plan of
distribution) may request and (ii) take such action necessary to cause
such Registrable Securities covered by the Registration Statement to be
registered with or approved by such other federal or state authorities
as may be necessary by virtue of the business and operations of the
Company and do any and all other acts and things that may be necessary
or advisable to enable the holders of Registrable Securities included
in such Registration Statement to consummate the disposition of such
Registrable Securities in such jurisdictions; provided, however, that
in no event shall the Company be required to register the Registrable
Securities in a jurisdiction in which such registration would cause (i)
the Company to be obligated to qualify to do business in any such
jurisdiction, or would subject the Company to taxation as a foreign
corporation doing business in such jurisdiction, (ii) the principal
stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company (except to the extent such shares are
already subject to an escrow in such jurisdiction), or (iii) the
Company to incur significant costs with respect to the number of shares
to be sold.

3.1.6.    Agreements for
Disposition.    The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form)
and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of such Registrable Securities.
The representations, warranties and covenants of the Company in any
underwriting agreement which are made to or for the benefit of any
Underwriters, to the extent applicable, shall also be made to and for
the benefit of the holders of Registrable Securities included in such
registration statement. No holder of Registrable Securities included in
such registration statement shall be required to make any
representations or warranties in the underwriting agreement except as
reasonably requested by the Company or as required by the Underwriters.
Holders of Registrable Securities shall agree to such covenants and
indemnification and contribution obligations for selling stockholders
as are customarily contained in agreements of that type. Further, such
holders shall cooperate fully in the preparation of the registration
statement and other documents relating to 

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any offering in which they include securities
pursuant to Section 2 hereof. Each holder shall also furnish to the
Company such information regarding itself, the Registrable Securities
held by such holder, and the intended method of disposition of such
securities as shall be reasonably required to effect the registration
of the Registrable Securities.

3.1.7.    Cooperation.    Management of the
Company shall cooperate in any offering of Registrable Securities
hereunder, which cooperation shall include, without limitation, the
preparation of the Registration Statement with respect to such offering
and all other offering materials and related documents, and
participation in customary meetings with Underwriters, attorneys,
accountants and potential investors.

3.1.8.    Records.    The Company shall make
available for inspection by the holders of Registrable Securities
included in such Registration Statement, any Underwriter participating
in any disposition pursuant to such registration statement and any
attorney, accountant or other professional retained by any holder of
Registrable Securities included in such Registration Statement or any
Underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, as shall be necessary to
enable them to exercise their due diligence responsibility, and cause
the Company's officers, directors and employees to supply all
information reasonably requested by any of them in connection with such
Registration Statement.

3.1.9.    Opinions and
Comfort Letters.    The Company shall furnish to each holder of
Registrable Securities included in any Registration Statement a signed
counterpart, addressed to such holder, of (i) any opinion of counsel to
the Company delivered to any Underwriter and (ii) any comfort letter
from the Company's independent public accountants delivered to
any Underwriter, in each case, to the extent such counsel or accountant
is willing to do so.

3.1.10.    Earnings
Statement.    The Company shall comply with all applicable rules
and regulations of the Commission and the Securities Act, and make
available to its shareholders, as soon as practicable, an earnings
statement covering a period of twelve (12) months, beginning within six
(6) months after the effective date of the registration statement,
which earnings statement shall satisfy the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder.

3.1.11.    Listing.    The Company shall use
commercially reasonable efforts to cause all Registrable Securities
included in any registration to be listed on such exchanges or
otherwise designated for trading in the same manner as similar
securities issued by the Company are then listed or designated or, if
no such similar securities are then listed or designated, in a manner
satisfactory to the holders of a majority of the Registrable Securities
that are included in such registration.

3.2.    Obligation to Suspend
Distribution.    Upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3.1.4(iv),
or, in the case of a resale registration on Form S-3 pursuant to
Section 2.3 hereof, upon any suspension by the Company, pursuant to a
written insider trading compliance program adopted by the
Company's Board of Directors or otherwise, of the ability of all
‘‘insiders’’ covered by such program to
transact in the Company's securities because of the existence of
material non-public information, each holder of Registrable Securities
included in any registration shall immediately discontinue disposition
of such Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such holder receives the
supplemented or amended Prospectus contemplated by Section 3.1.4(iv) or
the restriction on the ability of ‘‘insiders’’
to transact in the Company's securities is removed, as
applicable, and, if so directed by the Company, each such holder will
deliver to the Company all copies, other than permanent file copies
then in such holder's possession, of the most recent Prospectus
covering such Registrable Securities at the time of receipt of such
notice.

3.3.    Registration Expenses.    The
Company shall bear all costs and expenses incurred in connection with
any Demand Registration pursuant to Section 2.1, any Piggy-Back
Registration pursuant to Section 2.2, and any registration on Form S-3
effected pursuant to Section 2.3, and all expenses incurred in
performing or complying with its other obligations under this
Agreement, whether or not the Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees;
(ii) fees and expenses of compliance with securities or
‘‘blue sky’’ laws 

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(including fees and disbursements of counsel
in connection with blue sky qualifications of the Registrable
Securities); (iii) all printing, word processing, duplicating,
telephone, facsimile, messenger and delivery expenses; (iv) the
Company's internal expenses (including, without limitation, all
salaries and expenses of its officers and employees); (v) the fees and
expenses incurred in connection with the listing of the Registrable
Securities, as required by Section 3.1.11; (vi) National Association of
Securities Dealers, Inc. fees; (vii) fees and disbursements of counsel
for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs
associated with the delivery of any opinions or comfort letters
requested pursuant to Section 3.1.9); (viii) the fees and expenses of
any special experts retained by the Company in connection with such
registration; (ix) the fees and expenses of one legal counsel selected
by the holders of a majority-in-interest of the Registrable Securities
that are included in such registration; (x) all fees and disbursements
of the underwriters (other than underwriting, discounts and
commissions); (xi) all transfer taxes and (xii) all expenses incurred
in connection with promotional efforts or ‘‘road
shows’’ unless the Underwriter agrees to pay all or a
portion of such expenses. The Company shall have no obligation to pay
any underwriting discounts or selling commissions attributable to the
Registrable Securities being sold by the holders thereof, which
underwriting discounts or selling commissions shall be borne solely by
such holders.

3.4.    Information.    The
holders of Registrable Securities shall provide such information as may
reasonably be requested by the Company, or the managing Underwriter, if
any, in connection with the preparation of any Registration Statement,
including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the Securities Act
pursuant to Section 2 and in connection with the Company's
obligation to comply with federal and applicable state securities
laws.

3.5.    Holder Obligations.    No
holder of Registrable Securities may participate in any underwritten
offering pursuant to this Section 3 unless such holder (i) agrees to
sell only such holder's Registrable Securities on the basis
reasonably provided in any underwriting agreement, and (ii) completes,
executes and delivers any and all questionnaires, powers of attorney,
custody agreements, indemnities, underwriting agreements, lock-up
agreements and other documents reasonably required by or under the
terms of any underwriting agreement or as reasonably requested by the
Company.

4.    INDEMNIFICATION AND
CONTRIBUTION.

4.1.    Indemnification
by the Company.    The Company agrees to indemnify and hold
harmless each Initial Stockholder and each other holder of Registrable
Securities, and each of their respective officers, employees,
affiliates, directors, partners, members, attorneys and agents, and
each person, if any, who controls an Initial Stockholder and each other
holder of Registrable Securities (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) (each, a
‘‘STOCKHOLDER INDEMNIFIED PARTY’’), from and
against any expenses, losses, judgments, claims, damages or
liabilities, whether joint or several, arising out of or based upon any
untrue statement (or allegedly untrue statement) of a material fact
contained in any Registration Statement under which the sale of such
Registrable Securities was registered under the Securities Act, any
preliminary Prospectus, final Prospectus, free writing Prospectus or
summary Prospectus contained in the Registration Statement, or any
amendment or supplement to such Registration Statement, or arising out
of or based upon any omission (or alleged omission) to state a material
fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such expense, loss, claim,
damage or liability arises out of or is based upon any untrue statement
or allegedly untrue statement or omission or alleged omission made in
such Registration Statement, preliminary Prospectus, final Prospectus,
free writing Prospectus or summary Prospectus, or any such amendment or
supplement, in reliance upon and in conformity with information
furnished to the Company, in writing, by such selling holder expressly
for use therein; provided, however, that the foregoing indemnity shall
not inure to the benefit of any holder (or to the benefit of any person
controlling such holder) from whom the person asserting such losses,
claims or liabilities purchased the Registrable Securities, if a copy
of the Prospectus (as then amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) was not sent or
given by or on behalf of such holder to such person, if required by law
so to have been delivered at or prior to 

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the written confirmation of the sale of the
Registrable Securities to such person, and if the Prospectus (as so
amended or supplemented) would have cured the defect giving rise to
such losses, claims, damages or liabilities, unless such failure is the
result of noncompliance by the Company with Section 3.1.3 hereof. The
Company also shall indemnify the Underwriter, their officers,
employees, affiliates, directors, partners, members, attorneys and
agents, and each person who controls the Underwriter on substantially
the same basis as that of the indemnification provided above in this
Section 4.1.

4.2.    Indemnification by Holders of
Registrable Securities.    Each selling holder of Registrable
Securities will, with respect to any Registration Statement where
Registrable Securities were registered under the Securities Act,
indemnify and hold harmless the Company, each of its directors and
officers, each underwriter, if any, and each other person, if any, who
controls such selling holder, such underwriter or the Company (within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act), against any losses, claims, judgments, damages or
liabilities, whether joint or several, insofar as such losses, claims,
judgments, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or allegedly untrue
statement of a material fact contained in any Registration Statement
under which the sale of such Registrable Securities was registered
under the Securities Act, any preliminary Prospectus, final Prospectus,
free writing Prospectus or summary Prospectus contained in the
Registration Statement, or any amendment or supplement to the
Registration Statement, or arise out of or are based upon any omission
or the alleged omission to state a material fact required to be stated
therein or necessary to make the statement therein not misleading, if
the statement or omission was made in reliance upon and in conformity
with information furnished in writing to the Company by such selling
holder expressly for use therein, and shall reimburse the Company, its
directors and officers, and each such controlling person for any legal
or other expenses reasonably incurred by any of them in connection with
investigation or defending any such loss, claim, damage, liability or
action. Each selling holder's indemnification obligations
hereunder shall be several and not joint and shall be limited to the
amount of any net proceeds actually received by such selling holder in
connection with the sale of the Registrable Securities by such selling
holder pursuant to the Registration Statement containing such untrue
statement or allegedly untrue statement.

4.3.    Conduct of Indemnification
Proceedings.    Promptly after receipt by any person of any
notice of any loss, claim, damage or liability or any action in respect
of which indemnity may be sought pursuant to Section 4.1 or 4.2, such
person (the ‘‘INDEMNIFIED PARTY’’) shall, if a
claim in respect thereof is to be made against any other person for
indemnification hereunder, promptly notify such other person (the
‘‘INDEMNIFYING PARTY’’) in writing of the loss,
claim, judgment, damage, liability or action. If the Indemnified Party
is seeking indemnification with respect to any claim or action brought
against the Indemnified Party, then the Indemnifying Party shall be
entitled to participate in such claim or action, and, to the extent
that it elects jointly with all other Indemnifying Parties, to assume
control of the defense thereof with counsel satisfactory to the
Indemnified Party. After notice from the Indemnifying Party to the
Indemnified Party of its election to assume control of the defense of
such claim or action, the Indemnifying Party shall not be liable to the
Indemnified Party for any legal or other expenses subsequently incurred
by the Indemnified Party in connection with the defense thereof other
than reasonable costs of investigation. In any such proceeding, the
Indemnified Party shall have the right to retain its own counsel, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnified Party and the Indemnifying
Party shall have mutually agreed to the retention of such counsel, or
(ii) the named parties to any such proceeding (including any impleaded
parties) include both the Indemnified Party and the Indemnifying Party
and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interest between
them. The Indemnifying Party shall not be liable for any settlement of
any proceeding effected without its written consent, but if settled
with such consent or there is a final judgment for the plaintiff, the
Indemnifying Party agrees to indemnify the Indemnified Party from and
against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified
Party shall have requested an Indemnifying Party to reimburse the
Indemnified Party for fees and expenses of counsel as contemplated in
this Section 4.3, the Indemnifying Party agrees that it shall be liable
for any 

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settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more
than thirty (30) days after receipt by such Indemnifying Party of the
aforesaid request, and (ii) such Indemnifying Party shall not have
reimbursed the Indemnified Party in accordance with such request prior
to the date of such settlement (other than reimbursement for fees and
expenses the Indemnifying Party is contesting in good faith). No
Indemnifying Party shall, without the prior written consent of the
Indemnified Party, consent to entry of judgment or effect any
settlement of any claim or pending or threatened proceeding in respect
of which the Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party,
unless such judgment or settlement includes an unconditional release of
such Indemnified Party from all liability arising out of such claim or
proceeding.

4.4.    Contribution.

4.4.1.    If the indemnification provided for in the
foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified
Party in respect of any loss, claim, damage, liability or action
referred to herein, then each such Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such loss,
claim, damage, liability or action in such proportion as is appropriate
to reflect the relative benefits received by the Indemnified Parties on
the one hand and the Indemnifying Parties on the other from the
offering. If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the
Indemnified Party failed to give the notice required under Section 4.3
above, then each Indemnifying Party shall contribute to such amount
paid or payable by such Indemnified Party in such proportion as is
appropriate to reflect not only such relative benefits but also the
relative fault of the Indemnified Parties on the one hand and the
Indemnifying Parties on the other in connection with the actions or
omissions which resulted in such loss, claim, damage, liability or
action, as well as any other relevant equitable considerations. The
relative fault of any Indemnified Party and any Indemnifying Party
shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such Indemnifying Party and the
parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

4.4.2.    The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 4.4 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 the immediately preceding Section 4.4.1. The amount paid or payable
by an Indemnified Party as a result of any loss, claim, damage,
liability or action referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses incurred by such Indemnified Party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.4, no holder of
Registrable Securities shall be required to contribute any amount in
excess of the dollar amount of the net proceeds (after payment of any
underwriting fees, discounts, commissions or taxes) actually received
by such holder from the sale of Registrable Securities which gave rise
to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.

5.    UNDERWRITING AND DISTRIBUTION.

5.1.    Rule 144.    The Company covenants that
it shall file any reports required to be filed by it under the
Securities Act and the Exchange Act and shall take such further action
as the holders of Registrable Securities may reasonably request, all to
the extent required from time to time to enable such holders to sell
Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144 under the
Securities Act, or any similar provision thereto, but not Rule
144A.

6.    MISCELLANEOUS.

6.1.    Assignment; No Third Party
Beneficiaries.    This Agreement and the rights, duties and
obligations of the Company hereunder may not be assigned or delegated
by the Company in whole or 

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in part. This Agreement and the rights,
duties and obligations of the holders of Registrable Securities
hereunder may be freely assigned or delegated by such holder of
Registrable Securities in conjunction with and to the extent of any
permitted transfer of Registrable Securities by any such holder in
accordance with applicable law. 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 Initial Stockholder or holder of Registrable Securities or of
any assignee of the Initial Stockholder or holder of Registrable
Securities. This Agreement is not intended to confer any rights or
benefits on any persons that are not party hereto other than as
expressly set forth in Section 4 and this Section 6.1.

6.2.    Notices.    All notices, demands,
requests, consents, approvals or other communications (collectively,
‘‘NOTICES’’) required or permitted to be given
hereunder or which are given with respect to this Agreement shall be in
writing and shall be personally served, delivered by reputable air
courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex or facsimile, addressed as set forth below, or to such
other address as such party shall have specified most recently by
written notice provided in accordance with this Section 6.2. Notice
shall be deemed given on the date of service or transmission if
personally served or transmitted by telegram, telex or facsimile;
provided, that if such service or transmission is not on a Business Day
or is after normal business hours, then such notice shall be deemed
given on the next Business Day. Notice otherwise sent as provided
herein shall be deemed given on the next Business Day following timely
delivery of such notice to a reputable air courier service with an
order for next-day delivery.

To the Company:

Bank Street Telecom Funding Corp.
 One Landmark Square,
18th Floor
 Stamford, CT06901
 Facsimile: (203) 252-2810

Attention: Chief Executive Officer

with a copy to:

Fried, Frank, Harris, Shriver & Jacobson LLP
 One
New York Plaza
 New York, NY10004
 Facsimile: (212)
859-4000
 Attention: Stuart Gelfond

To a
Stockholder, to the address set forth below such Stockholder's
name on the signature pages hereof.

6.3.    Severability.    This Agreement shall be
deemed severable, and the invalidity or unenforceability of any term or
provision hereof shall not affect the validity or enforceability of
this Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the
parties hereto intend that there shall be added as a part of this
Agreement a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid and
enforceable.

6.4.    Counterparts.    This
Agreement may be executed in multiple counterparts, each of which shall
be deemed an original, and all of which taken together shall constitute
one and the same instrument.

6.5.    Entire
Agreement.    This Agreement (including all agreements entered
into pursuant hereto and all certificates and instruments delivered
pursuant hereto and thereto) constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede all
prior and contemporaneous agreements, representations, understandings,
negotiations and discussions between the parties, whether oral or
written.

6.6.    Modifications and
Amendments.    This Agreement or any provision hereof may only be
changed, amended or modified by a writing signed by an Initial
Stockholder or Initial Stockholders, then holding in the aggregate a
majority-in-interest of Registrable Securities.

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6.7.    Titles and
Headings.    Titles and headings of sections of this Agreement
are for convenience only and shall not affect the construction of any
provision of this Agreement.

6.8.    Waivers and
Extensions.    Any party to this Agreement may waive any right,
breach or default which such party has the right to waive, provided,
that such waiver will not be effective against the waiving party unless
it is in writing, is signed by such party, and specifically refers to
this Agreement. Waivers may be made in advance or after the right
waived has arisen or the breach or default waived has occurred. Any
waiver may be conditional. No waiver of any breach of any agreement or
provision herein contained shall be deemed a waiver of any preceding or
succeeding breach thereof nor of any other agreement or provision
herein contained. No waiver or extension of time for performance of any
obligations or acts shall be deemed a waiver or extension of the time
for performance of any other obligations or acts.

6.9.    Remedies Cumulative.    In the event that
the Company fails to observe or perform any covenant or agreement to be
observed or performed under this Agreement, the Initial Stockholder or
any other holder of Registrable Securities may proceed to protect and
enforce its rights by suit in equity or action at law, whether for
specific performance of any term contained in this Agreement or for an
injunction against the breach of any such term or in aid of the
exercise of any power granted in this Agreement or to enforce any other
legal or equitable right, or to take any one or more of such actions,
without being required to post a bond. None of the rights, powers or
remedies conferred under this Agreement shall be mutually exclusive,
and each such right, power or remedy shall be cumulative and in
addition to any other right, power or remedy, whether conferred by this
Agreement or now or hereafter available at law, in equity, by statute
or otherwise.

6.10.    Governing Law.    This
Agreement shall be governed by and interpreted and construed in
accordance with the laws of the State of New York applicable to
contracts formed and to be performed entirely within the State of New
York, without regard to the conflicts of law provisions thereof to the
extent such principles or rules would require or permit the application
of the laws of another jurisdiction. The Company and the holders of the
Registrable Securities irrevocably and unconditionally submit to the
exclusive jurisdiction of the United States District Court for the
Southern District of New York or, if such court does not have
jurisdiction, the New York State Supreme Court in the Borough of
Manhattan, in any action arising out of or relating to this Agreement,
agree that all claims in respect of the action may be heard and
determined in any such court and agree not to bring any action arising
out of or relating to this Agreement in any other court. In any action,
the Company and the holders of the Registrable Securities irrevocably
and unconditionally waive and agree not to assert by way of motion, as
a defense or otherwise any claims that it is not subject to the
jurisdiction of the above court, that such action is brought in an
inconvenient forum or that the venue of such action is improper.
Without limiting the foregoing, the Company and the holders of the
Registrable Securities agree that service of process at each parties
respective addresses as provided for in Section 6.2 above shall be
deemed effective service of process on such party.

6.11.    Waiver of Trial by Jury.    Each party
hereby irrevocably and unconditionally waives the right to a trial by
jury in any action, suit, counterclaim or other proceeding (whether
based on contract, tort or otherwise) arising out of, connected with or
relating to this Agreement, the transactions contemplated hereby, or
the actions of the Initial Stockholder in the negotiation,
administration, performance or enforcement hereof.

6.12.    No Inconsistent Agreements.    The
Company will not, on or after the date of this Agreement, enter into
any agreement with respect to its securities which is inconsistent with
the rights granted to the Initial Stockholders in this Agreement or
otherwise conflicts with the provisions hereof, other than any
customary lock-up agreement with the underwriters in connection with
any offering effected hereunder, pursuant to which the Company shall
agree not to register for sale, and the Company shall agree not to sell
or otherwise dispose of, Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock, for a specified
period (not to exceed 180 days) following such offering.
Notwithstanding the foregoing, for clarifying purposes, the Company may
grant other or superior registration rights to holders of its equity or
debt securities.

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6.13.    Adjustments.    At
the request of the majority-in-interest of the Registrable Securities,
in the event of any change in the capitalization of the Company as a
result of any stock split, stock dividend, reverse split, combination,
recapitalization, merger, consolidation, or otherwise, the provisions
of this Agreement shall be appropriately adjusted. The Company agrees
that it shall not effect or permit to occur any combination or
subdivision of shares which would adversely affect the ability of the
Initial Stockholders to include any Registrable Securities in any
registration contemplated by this Agreement or the marketability of
such Registrable Securities in any such registration.

6.14.    Changes in Law.    The parties hereby
agree that to the extent there are changes in law that affect the
rights of holders of Registrable Securities, the parties will act in
good faith to revise this Agreement as necessary or desirable to
provide the benefit intended as of the date this Agreement is entered
into.

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

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In witness whereof, the parties have
caused this Registration Rights Agreement to be executed and delivered
by their duly authorized representatives as of the date first written
above.

		BANK STREET TELECOM FUNDING
CORP.

		By:
                                                                    

		Name:
 Title:

		INITIAL
STOCKHOLDERS:

		By:
                                                                    

		[ADDRESS]

		By:
                                                                    

		[ADDRESS]

16AIRCASTLE INVESTMENT LIMITED

                         2005 EQUITY AND INCENTIVE PLAN

          SECTION 1. PURPOSE OF PLAN.

          The name of this plan is the Aircastle Investment Limited 2005 Equity
and Incentive Plan (the "Plan"). The Plan was adopted by the Board (as
hereinafter defined) on January 17, 2006 and approved by the shareholders of the
Company on January 31, 2006 prior to the initial public offering of shares in
the capital of the Company (the "Initial Public Offering"). The purpose of the
Plan is to provide additional incentive to selected management employees,
directors and Consultants of the Company or its Subsidiaries whose contributions
are essential to the growth and success of the Company's business, in order to
strengthen the commitment of such persons to the Company and its Subsidiaries,
motivate such persons to faithfully and diligently perform their
responsibilities and attract and retain competent and dedicated persons whose
efforts will result in the long-term growth and profitability of the Company. To
accomplish such purposes, the Plan provides that the Company may grant (a)
Options, (b) Share Appreciation Rights, (c) awards of Restricted Shares,
Deferred Shares, Performance Shares, unrestricted Shares or Other Share-Based
Awards, or (d) any combination of the foregoing.

          SECTION 2. DEFINITIONS.

          For purposes of the Plan, the following terms shall be defined as set
forth below:

                    (a) "Administrator" means the Board, or if and to the extent
          the Board does not administer the Plan, the Committee in accordance
          with Section 3 hereof.

                    (b) "Affiliate" means an affiliate of the Company (or other
          referenced entity, as the case may be) as defined in Rule 12b-2
          promulgated under Section 12 of the Exchange Act.

                    (c) "Award" means any Option, Share Appreciation Right,
          Restricted Share, Deferred Share, unrestricted Share or Other
          Share-Based Award granted under the Plan.

                    (d) "Award Agreement" means any written agreement, contract
          or other instrument or document evidencing an Award.

                    (e) "Beneficial Owner" (or any variant thereof) has the
          meaning defined in Rule 13d-3 under the Exchange Act.

                                      -1-

                    (f) "Board" means the Board of Directors of the Company.

                    (g) "Cause" means (i) the continued failure by the
          Participant substantially to perform his or her duties and obligations
          to the Company or any Subsidiary or Affiliate, including without
          limitation repeated refusal to follow the reasonable directions of his
          or her employer, knowing violation of law in the course of performance
          of the duties of Participant's employment with the Company or any
          Subsidiary or Affiliate, engagement in misconduct which is materially
          injurious to the Company or any Subsidiary or Affiliate, repeated
          absences from work without a reasonable excuse, or intoxication with
          alcohol or illegal drugs while on the Company's or any Subsidiary's or
          Affiliate's premises during regular business hours (other than any
          such failure resulting from his or her incapacity due to physical or
          mental illness); (ii) fraud or material dishonesty against the Company
          or any Subsidiary or Affiliate; or (iii) a conviction or plea of
          guilty or nolo contendere for the commission of a felony or a crime
          involving material dishonesty. Determination of Cause shall be made by
          the Administrator in its sole discretion. Notwithstanding the
          foregoing, to the extent that a Participant's employment agreement
          with the Company, any Subsidiary or any Affiliate expressly states
          that the definition of cause set forth in such agreement shall
          override the definition of Cause in this Plan, then the definition of
          cause in such employment shall constitute "Cause" for such Participant
          under this Plan.

                    (h) "Change in Capitalization" means any (i) merger,
          amalgamation, consolidation, reclassification, recapitalization,
          spin-off, spin-out, repurchase or other reorganization or corporate
          transaction or event, (ii) dividend (whether in the form of cash,
          Shares or other property), share split or reverse share split
          consolidation or subdivision, (iii) combination or exchange of shares,
          (iv) other change in corporate structure or (v) declaration of a
          special dividend (including a cash dividend) or other distribution,
          which, in any such case, the Administrator determines, in its sole
          discretion, affects the Shares such that an adjustment pursuant to
          Section 5 hereof is appropriate.

                    (i) "Change in Control" shall be deemed to have occurred if
          an event set forth in any one of the following paragraphs shall have
          occurred:

          (i) any Person other than any Permitted Transferee is or becomes the
     Beneficial Owner, directly or indirectly, of securities of the Company
     representing 50% or more of the combined voting power of the Company's then
     outstanding securities; or

          (ii) the following individuals cease for any reason to constitute a
     majority of the number of directors then serving on the Board: individuals
     who,

                                      -2-

     on the date hereof, constitute the Board and any new director (other than a
     director whose initial assumption of office is in connection with an actual
     or threatened election contest, including but not limited to a consent
     solicitation, relating to the election of directors of the Company) whose
     appointment or election by the Board or nomination for election by the
     Company's shareholders was approved or recommended by a vote of at least
     two-thirds (2/3) of the directors then still in office who either were
     directors on the date hereof or whose appointment, election or nomination
     for election was previously so approved or recommended; or;

          (iii) there is consummated a merger or amalgamation or consolidation
     of the Company or any direct or indirect subsidiary of the Company with any
     other corporation, other than a merger or consolidation immediately
     following which the individuals who comprise the Board immediately prior
     thereto constitute at least a majority of the Board of the entity surviving
     such merger or amalgamation or consolidation or, if the Company or the
     entity surviving such merger or amalgamation is then a subsidiary, the
     ultimate parent thereof; or

          (iv) the shareholders of the Company approve a plan of complete
     liquidation or dissolution of the Company or there is consummated an
     agreement for the sale or disposition by the Company of all or
     substantially all of the Company's assets, other than (a) a sale or
     disposition by the Company of all or substantially all of the Company's
     assets to an entity, at least 50% of the combined voting power of the
     voting securities of which are owned by shareholders of the Company
     following the completion of such transaction in substantially the same
     proportions as their ownership of the Company immediately prior to such
     sale or (b) a sale or disposition of all or substantially all of the
     Company's assets immediately following which the individuals who comprise
     the Board immediately prior thereto constitute at least a majority of the
     board of directors of the entity to which such assets are sold or disposed
     or, if such entity is a subsidiary, the ultimate parent thereof (it being
     understood that no transaction determined by the Administrator, in its good
     faith, to be a securitization or financing transaction shall be deemed a
     sale of all or substantially all of the assets of the Company).

     Notwithstanding the foregoing, a "Change in Control" shall not be deemed to
have occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the holders of shares in the
capital of the Company immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in
an entity which owns all or substantially all of the assets of the Company
immediately following such transaction or series of transactions.

                    (j) "Code" means the Internal Revenue Code of 1986, as
          amended from time to time, or any successor thereto.

                                      -3-

                    (k) "Committee" means any committee or subcommittee the
          Board may appoint to administer the Plan. Subject to the discretion of
          the Board, the Committee shall be composed entirely of individuals who
          meet the qualifications of an "outside director" within the meaning of
          Section 162(m) of the Code, a "non-employee director" within the
          meaning of Rule 16b-3 under the Exchange Act and any other
          qualifications required by the applicable share exchange on which the
          Shares are traded. If at any time or to any extent the Board shall not
          administer the Plan, then the functions of the Administrator specified
          in the Plan shall be exercised by the Committee. Except as otherwise
          provided in the Company's Certificate of Incorporation or Bylaws, as
          amended from time to time, any action of the Committee with respect to
          the administration of the Plan shall be taken by a majority vote at a
          meeting at which a quorum is duly constituted or unanimous written
          consent of the Committee's members.

                    (l) "Company" means Aircastle Investment Limited, a Bermuda
          exempted company (or any successor corporation).

                    (m) "Consultant" means a consultant or advisor who is a
          natural person, engaged to render bona fide services to the Company,
          or any of Subsidiary.

                    (n) "Deferred Shares" means the right to receive Shares at
          the end of a specified deferral period granted pursuant to Section 9
          below.

                    (o) "Disability" means that a Participant (i) is unable to
          engage in any substantial gainful activity by reason of any medically
          determinable physical or mental impairment which can be expected to
          result in death or can be expected to last for a continuous period of
          not less than 12 months, or (ii) is, by reason of any medically
          determinable physical or mental impairment which can be expected to
          result in death or can be expected to last for a continuous period of
          not less than 12 months, receiving income replacement benefits for a
          period of not less than 3 months under an accident and health plan, or
          disability plan, covering employees of the Company or an Affiliate of
          the Company.

                    (p) "Eligible Recipient" means a key employee, director or
          Consultant of the Company or any Subsidiary who has been selected as
          an eligible participant by the Administrator.

                    (q) "Exchange Act" shall mean the Securities Exchange Act of
          1934, as amended from time to time.

                                      -4-

                    (r) "Exercise Price" means the per share price at which a
          holder of an award granted hereunder may purchase the Shares issuable
          upon exercise of such award.

                    (s) "Fair Market Value" as of a particular date shall mean
          the fair market value of the Shares as determined by the Administrator
          in its sole discretion; provided, however, that (i) if the Shares are
          admitted to trading on a national securities exchange, fair market
          value of the Shares on any date shall be the closing sale price
          reported for such Shares on such last day preceding such date on which
          a sale was reported, (ii) if the Shares are admitted to quotation on
          the National Association of Securities Dealers Automated Quotation
          ("Nasdaq") System or other comparable quotation system and has been
          designated as a National Market System ("NMS") security, fair market
          value of the Shares on any date shall be the closing sale price
          reported for such Shares on such system on the last date preceding
          such date on which a sale was reported, or (iii) if the Shares are
          admitted to quotation on the Nasdaq System but have not been
          designated as an NMS security, fair market value of the Shares on any
          date shall be the average of the highest bid and lowest asked prices
          of such Shares on such system on the last date preceding such date on
          which both bid and ask prices were reported.

                    (t) "Incentive Share Option" shall mean an Option that is an
          "incentive share option" within the meaning of section 422 of the
          Code, or any successor provision, and that is designated in the
          applicable Option agreement as an Incentive Share Option.

                    (u) "Non-Officer Director" means a director of the Company
          who is not (i) an officer or employee of the Company or of any
          Subsidiary or (ii) the Beneficial Owner, whether directly or
          indirectly, of ten percent (10%) or more of the Shares.

                    (v) "Nonqualified Share Option" means any Option that is not
          an Incentive Share Option, including any Option that provides (as of
          the time such Option is granted) that it will not be treated as an
          Incentive Share Option.

                    (w) "Option" means an option to purchase Shares granted
          pursuant to Section 7 hereof.

                    (x) "Other Share-Based Awards" means a right or other
          interest granted to a Participant under the Plan that may be
          denominated or payable in, valued in whole or in part by reference to,
          or otherwise based on or related to, the Shares, including but not
          limited to restricted share units, dividend equivalents or performance
          units, each of which may be subject to the attainment of Performance
          Goals or a period of continued employment or other terms or conditions
          as permitted under the Plan.

                                      -5-

                    (y) "Participant" means (i) any Eligible Recipient selected
          by the Administrator, pursuant to the Administrator's authority in
          Section 3 below, to receive grants of Options, Share Appreciation
          Rights, awards of Restricted Shares, awards of unrestricted Shares,
          Deferred Shares, Performance Shares, Other Share-Based Awards or any
          combination of the foregoing, and upon his or her death, his or her
          successors, heirs, executors and administrators, as the case may be
          and (ii) any Non-Officer Director who is eligible to receive Shares
          pursuant to Section 11 below.

                    (z) "Performance Goals" means performance goals based on one
          or more of the following criteria: (i) earnings including operating
          income, earnings before or after taxes, earnings before or after
          interest, depreciation, amortization, or extraordinary or special
          items or book value per share (which may exclude nonrecurring items);
          (ii) pre-tax income or after-tax income; (iii) earnings per Share
          (basic or diluted); (iv) operating profit; (v) revenue, revenue growth
          or rate of revenue growth; (vi) return on assets (gross or net),
          return on investment, return on capital, or return on equity; (vii)
          returns on sales or revenues; (viii) operating expenses; (ix) share
          price appreciation; (x) cash flow, free cash flow, cash flow return on
          investment (discounted or otherwise), net cash provided by operations,
          or cash flow in excess of cost of capital; (xi) implementation or
          completion of critical projects or processes; (xii) economic value
          created; (xiii) cumulative earnings per share growth; (xiv) operating
          margin or profit margin; (xv) share price or total shareholder return;
          (xvi) cost targets, reductions and savings, productivity and
          efficiencies; (xvii) strategic business criteria, consisting of one or
          more objectives based on meeting specified market penetration,
          geographic business expansion, customer satisfaction, employee
          satisfaction, human resources management, supervision of litigation,
          information technology, and goals relating to acquisitions,
          divestitures, joint ventures and similar transactions, and budget
          comparisons; (xviii) personal professional objectives, including any
          of the foregoing performance goals, the implementation of policies and
          plans, the negotiation of transactions, the development of long term
          business goals, formation of joint ventures, research or development
          collaborations, and the completion of other corporate transactions;
          and (xix) any combination of, or a specified increase in, any of the
          foregoing. Where applicable, the Performance Goals may be expressed in
          terms of attaining a specified level of the particular criteria or the
          attainment of a percentage increase or decrease in the particular
          criteria, and may be applied to one or more of the Company, a
          Subsidiary or Affiliate, or a division or strategic business unit of
          the Company, or may be applied to the performance of the Company
          relative to a market index, a group of other companies or a
          combination thereof, all as determined by the Committee. The
          Performance Goals may include a threshold level of performance below
          which no payment will be made (or no vesting will occur), levels of
          performance at which specified payments will be made (or specified
          vesting will occur), and a

                                      -6-

          maximum level of performance above which no additional payment will be
          made (or at which full vesting will occur). Each of the foregoing
          Performance Goals shall be determined in accordance with generally
          accepted accounting principles and shall be subject to certification
          by the Committee; provided that the Committee shall have the authority
          to make equitable adjustments to the Performance Goals in recognition
          of unusual or non-recurring events affecting the Company or any
          Subsidiary or Affiliate or the financial statements of the Company or
          any Subsidiary or Affiliate, in response to changes in applicable laws
          or regulations, or to account for items of gain, loss or expense
          determined to be extraordinary or unusual in nature or infrequent in
          occurrence or related to the disposal of a segment of a business or
          related to a change in accounting principles.

                    (aa) "Performance Shares" means Shares that are subject to
          restrictions based upon the attainment of specified performance
          objectives granted pursuant to Section 9 below.

                    (bb) "Permitted Transferee" shall mean, (i) any Affiliate of
          Fortress Investment Fund III LP, a Delaware limited partnership, (ii)
          any investment vehicle (whether formed as a private investment fund,
          stock company or otherwise) managed directly or indirectly by Fortress
          Investment Group LLC, a Delaware limited liability company, or any of
          its (or its successors' or assigns') Affiliates (a "FIG Fund"), or
          (iii) any general partner, limited partner, managing member or person
          occupying a similar role of or with respect to any FIG Fund.

                    (cc) "Person" shall have the meaning given in Section
          3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)
          and 14(d) thereof, except that such term shall not include (i) the
          Company or any of its subsidiaries, (ii) a trustee or other fiduciary
          holding securities under an employee benefit plan of the Company or
          any of its Subsidiaries, (iii) an underwriter temporarily holding
          securities pursuant to an offering of such securities, or (iv) a
          corporation owned, directly or indirectly, by the shareholders of the
          Company in substantially the same proportions as their ownership of
          share of the Company.

                    (dd) "Restricted Shares" means Shares subject to certain
          restrictions granted pursuant to Section 9 below.

                    (ee) "Retirement" means a termination of a Participant's
          employment, other than for Cause, on or after attainment of age 65.

                    (ff) "Shares" means shares of $0.01 per share each in the
          capital of the Company reserved for issuance under the Plan, as
          adjusted

                                      -7-

          pursuant to the Plan, and any successor (pursuant to a merger,
          consolidation or other reorganization) security.

                    (gg) "Share Appreciation Right" means the right pursuant to
          an award granted under Section 8 below to receive an amount equal to
          the excess, if any, of (i) the aggregate Fair Market Value, as of the
          date such Share Appreciation Right or portion thereof is surrendered,
          of the Shares covered by such right or such portion thereof, over (ii)
          the aggregate Exercise Price of such right or such portion thereof.

                    (hh) "Subsidiary" means any company or corporation in an
          unbroken chain of corporations beginning with the Company if, at the
          time of granting of an Award, each of the corporations (other than the
          last corporation in the unbroken chain) owns share possessing 50% or
          more of the total combined voting power of all classes of share in one
          of the other corporations in the chain.

          SECTION 3. ADMINISTRATION.

                    (a) The Plan shall be administered by the Administrator and
          shall be administered in accordance with the requirements of Section
          162(m) of the Code (but only to the extent necessary and desirable to
          maintain qualification of awards under the Plan under Section 162(m)
          of the Code) and, to the extent applicable, Rule 16b-3 under the
          Exchange Act ("Rule 16b-3").

                    (b) Pursuant to the terms of the Plan, the Administrator,
          subject, in the case of any Committee, to any restrictions on the
          authority delegated to it by the Board, shall have the power and
          authority, without limitation:

                         (1) to select those Eligible Recipients who shall be
               Participants;

                         (2) to determine whether and to what extent Share
               Options, Share Appreciation Rights, awards of Restricted Shares,
               Deferred Shares, Performance Shares, Other Share-Based Awards or
               a combination of any of the foregoing, are to be granted
               hereunder to Participants;

                         (3) to determine whether Options are intended to be
               Incentive Share Options or Nonqualified Share Options, provided,
               however, that Incentive Share Options can only be granted to
               employees of the Company or any Subsidiary (within the meaning of
               Section 424(e) and (f) of the Code);

                                      -8-

                         (4) to determine the number of Shares to be covered by
               each award granted hereunder;

                         (5) to determine the terms and conditions, not
               inconsistent with the terms of the Plan, of each award granted
               hereunder (including, but not limited to, (x) the restrictions
               applicable to awards of Restricted Shares or Deferred Shares and
               the conditions under which restrictions applicable to such awards
               of Restricted Shares or Deferred Shares shall lapse, and (y) the
               performance goals and periods applicable to awards of Performance
               Shares);

                         (6) to determine the terms and conditions, not
               inconsistent with the terms of the Plan, which shall govern all
               written instruments evidencing Share Options, Share Appreciation
               Rights, awards of Restricted Shares, Deferred Shares or
               Performance Shares or any combination of the foregoing granted
               hereunder;

                         (7) to determine the Fair Market Value;

                         (8) to determine the duration and purpose of leaves of
               absence which may be granted to a Participant without
               constituting termination of their employment for purposes
               Nonqualified Share Options granted under the Plan;

                         (9) to adopt, alter and repeal such administrative
               rules, guidelines and practices governing the Plan as it shall
               from time to time deem advisable; and

                         (10) to construe and interpret the terms and provisions
               of the Plan and any award issued under the Plan (and any Award
               Agreement relating thereto), and to otherwise supervise the
               administration of the Plan and to exercise all powers and
               authorities either specifically granted under the Plan or
               necessary and advisable in the administration of the Plan.

                    (c) Notwithstanding paragraph (b) of this Section 3, (i) the
          automatic, nondiscretionary grants of Shares shall be made to
          Non-Officer Directors pursuant to and in accordance with the terms of
          Section 10 below and (ii) neither the Board, the Committee nor their
          respective delegates shall have the authority to reprice (or cancel
          and regrant) any Option or, if applicable, other Award at a lower
          exercise, base or purchase price without first obtaining the approval
          of the Company's shareholders.

                    (d) All decisions made by the Administrator pursuant to the
          provisions of the Plan shall be final, conclusive and binding on all
          persons, including the Company and the Participants. No member of the

                                      -9-

          Board or the Committee, nor any officer or employee of the Company or
          any Subsidiary acting on behalf of the Board or the Committee, shall
          be personally liable for any action, omission, determination, or
          interpretation taken or made in good faith with respect to the Plan,
          and all members of the Board or the Committee and each and any officer
          or employee of the Company and of any Subsidiary acting on their
          behalf shall, to the maximum extent permitted by law, be fully
          indemnified and protected by the Company in respect of any such
          action, omission, determination or interpretation.

          SECTION 4. SHARES RESERVED FOR ISSUANCE UNDER THE PLAN.

                    (a) Subject to Section 5 hereof, the total number of Shares
          reserved and available for issuance under the Plan shall be equal to
          4,000,000 shares. Such Shares may consist, in whole or in part, of
          authorized and unissued Shares. From and after such time as the Plan
          is subject to Code Section 162(m), the aggregate Awards granted during
          any fiscal year to any single individual who is likely to be a
          "covered employee" as defined under Code Section 162(m) shall not
          exceed 2,500,000 Shares. Determinations made in respect of the
          limitation set forth in the preceding sentence shall be made in a
          manner consistent with Section 162(m) of the Code.

                    (b) Shares issued under the Plan shall be authorized but
          unissued Shares. If any Shares subject to an Award are repurchased or
          if an Award otherwise terminates or expires without a distribution of
          shares to the Participant, the Shares (or in the event of a repurchase
          of Shares the equivalent number of Shares) with respect to such Award
          shall, to the extent of any such repurchase, termination or
          expiration, again be available for Awards under the Plan.

          SECTION 5. EQUITABLE ADJUSTMENTS.

          In the event of any Change in Capitalization, an equitable
substitution or proportionate adjustment shall be made, in each case, as may be
determined by the Administrator, in its sole discretion, in (i) the aggregate
number of Shares reserved for issuance under the Plan and the maximum number of
Shares that may be subject to Awards granted to any Participant in any calendar
year, (ii) the kind, number and Exercise Price subject to outstanding Options
and Share Appreciation Rights granted under the Plan, and (iii) the kind, number
and purchase price of Shares subject to outstanding awards of Restricted Shares,
Deferred Shares, Performance Shares or Other Share-Based Awards granted under
the Plan, in each case as may be determined by the Administrator, in its sole
discretion, provided, however, that any fractional shares resulting from the
adjustment shall be eliminated. Such other equitable substitutions or
adjustments shall be made as may be determined by the Administrator, in its sole
discretion. Without limiting the generality of the foregoing, in connection with
a Change in Capitalization, the Administrator may provide, in its sole
discretion, for the cancellation of any outstanding award granted hereunder
(except fully vested Restricted

                                      -10-

Shares, fully vested Deferred Shares and fully vested Performance Shares as to
which all restrictions, except any restrictions described in Section 16(d)
hereof, have lapsed) in exchange for payment in cash or other property of the
aggregate Fair Market Value of the Shares covered by such award, reduced by the
aggregate Exercise Price or purchase price thereof, if any. Notwithstanding the
foregoing, with respect to Incentive Share Options, any adjustment shall be made
in accordance with the provisions of Section 424(h) of the Code and any
regulations or guidance promulgated thereunder, and provided further that no
such adjustment shall cause any Award hereunder which is or becomes subject to
Section 409A of the Code to fail to comply with the requirements of such
section. The Administrator's determinations pursuant to this Section 5 shall be
final, binding and conclusive.

          SECTION 6. ELIGIBILITY.

          Except as set forth in Section 11 below, the Participants under the
Plan shall be selected from time to time by the Administrator, in its sole
discretion, from among Eligible Recipients; provided however that Incentive
Share Options may only be granted to employees of the Company or any Subsidiary.
Notwithstanding the foregoing, Non-Officer Directors shall be eligible for
awards other than those set forth in Section 10, as determined by the
Administrator from time to time.

          SECTION 7. OPTIONS.

                    (a) General. Each Participant who is granted an Option shall
          enter into an Award Agreement with the Company, containing such terms
          and conditions as the Administrator shall determine, in its
          discretion, which Award Agreement shall set forth, among other things,
          the Exercise Price of the Option, the term of the Option and
          provisions regarding exercisability of the Option granted thereunder.
          Each Option shall be clearly identified in the applicable Award
          Agreement as either an Incentive Share Option or a Nonqualified Share
          Option. The provisions of each Option need not be the same with
          respect to each Participant. More than one Option may be granted to
          the same Participant and be outstanding concurrently hereunder.
          Options granted under the Plan shall be subject to the terms and
          conditions set forth in this Section 7 and shall contain such
          additional terms and conditions, not inconsistent with the terms of
          the Plan, as the Administrator shall deem desirable and set forth in
          the applicable Award Agreement.

                    (b) Exercise Price. The Exercise Price of Shares purchasable
          under an Option shall be determined by the Administrator in its sole
          discretion at the time of grant. If a Participant owns or is deemed to
          own (by reason of the attribution rules applicable under Section
          424(d) of the Code) more than 10% of the combined voting power of all
          classes of share of the Company or of any Subsidiary and an Incentive
          Share Option is granted to such Participant, the option price of such
          Incentive Share Option (to the extent

                                      -11-

          required at the time of grant by the Code) shall be no less than 110%
          of the Fair Market Value on the date such Incentive Share Option is
          granted.

                    (c) Option Term. The maximum term of each Option shall be
          fixed by the Administrator, but no Option shall be exercisable more
          than ten years after the date such Option is granted. Each Option's
          term is subject to earlier expiration pursuant to the applicable
          provisions in the Plan and the Award Agreement. Notwithstanding the
          foregoing, the Administrator shall have the authority to accelerate
          the exercisability of any outstanding Option at such time and under
          such circumstances as it, in it sole discretion, deems appropriate.

                    (d) Exercisability. Each Option shall be exercisable at such
          time or times and subject to such terms and conditions, including the
          attainment of preestablished corporate performance goals, as shall be
          determined by the Administrator in the applicable Option agreement.
          The Administrator may also provide that any Option shall be
          exercisable only in installments, and the Administrator may waive such
          installment exercise provisions at any time, in whole or in part,
          based on such factors as the Administrator may determine in its sole
          discretion. Notwithstanding anything to the contrary contained herein,
          an Option may not be exercised for a fraction of a share.

                    (e) Method of Exercise. Options may be exercised in whole or
          in part by giving written notice of exercise to the Company specifying
          the number of Shares to be purchased, accompanied by payment in full
          of the aggregate Exercise Price of the Shares so purchased in cash or
          its equivalent, as determined by the Administrator. As determined by
          the Administrator, in its sole discretion, with respect to any Option
          or category of Options, payment in whole or in part may also be made
          (i) in the form of a net repurchase of Shares by the Company at Fair
          Market Value equal to the aggregate exercise price of such Shares
          purchase by the Participant upon exercise and issued by the Company to
          the Participant (ii) in the form of repurchase for par value of
          unrestricted Shares already owned by the Participant which, (x) in the
          case of unrestricted Shares acquired upon exercise of an Option, have
          been owned by the Participant for more than six months on the date of
          surrender, and (y) have a Fair Market Value on the date of surrender
          equal to the aggregate option price of the Shares as to which such
          Option shall be exercised, (iii) any other form of consideration
          approved by the Administrator and permitted by applicable law, (iv) if
          the Shares are traded on a public exchange, through an arrangement
          with a broker whereby payment of the exercise price is made with the
          proceeds of the sale of Shares or (iv) any combination of the
          foregoing.

                    (f) Limitations on Incentive Share Options. To the extent
          that the aggregate Fair Market Value with respect to which Incentive

                                      -12-

          Share Options are exercisable for the first time by a Participant
          during any calendar year under the Plan and any other share option
          plan of the Company shall exceed $100,000, the portion of such
          Incentive Share Options in excess of $100,000 shall be treated as
          Nonqualified Share Options. Such Fair Market Value shall be determined
          as of the date on which each such Incentive Share Option is granted.
          No Incentive Share Option may be granted to an individual if, at the
          time of the proposed grant, such individual owns (or is deemed to own
          under the Code) share possessing more than 10% of the total combined
          voting power of all classes of share of the Company unless (i) the
          Exercise Price of such Incentive Share Option is at least 110% of the
          Fair Market Value per Share at the time such Incentive Share Option is
          granted and (ii) such Incentive Share Option is not exercisable after
          the expiration of five years from the date such Incentive Share Option
          is granted.

                    (g) Rights as Shareholder. A Participant shall have no
          rights to dividends or any other rights of a shareholder with respect
          to the Shares subject to an Option until the Participant has given
          written notice of exercise, has paid in full for such Shares, has
          satisfied the requirements of Section 15 hereof and, if requested, has
          given the representation described in paragraph (b) of Section 16
          hereof.

                    (h) Transfers of Options. Except as otherwise determined by
          the Administrator, and in any event in the case of an Incentive Share
          Option, no Option granted under the Plan shall be transferable by a
          Participant otherwise than by will or the laws of descent and
          distribution. Unless otherwise determined by the Administrator in
          accord with the provisions of the immediately preceding sentence, an
          Option may be exercised, during the lifetime of the Participant, only
          by the Participant or, during the period the Participant is under a
          legal disability, by the Participant's guardian or legal
          representative. The Administrator may, in its sole discretion, subject
          to applicable law, permit the gratuitous transfer during a
          Participant's lifetime of a Nonqualified Share Option, (i) by gift to
          a member of the Participant's immediate family, (ii) by transfer by
          instrument to a trust for the benefit of such immediate family
          members, or (iii) to a partnership or limited liability company in
          which such family members are the only partners or members; provided,
          however, that, in addition to such other terms and conditions as the
          Administrator may determine in connection with any such transfer, no
          transferee may further assign, sell, hypothecate, charge or otherwise
          transfer the transferred Option, in whole or in part, other than by
          will or by operation of the laws of descent and distribution. Each
          permitted transferee shall agree to be bound by the provisions of this
          Plan and the applicable Option agreement.

                    (i) Termination of Employment or Service.

                                      -13-

                         (1) Unless the applicable Award Agreement provides
               otherwise, in the event that the employment or service of a
               Participant with the Company or any Subsidiary shall terminate
               for any reason other than Cause, Retirement, Disability, or
               death, (A) Options granted to such Participant, to the extent
               that they are exercisable at the time of such termination, shall
               remain exercisable until the date that is 90 days after such
               termination, on which date they shall expire, and (B) Options
               granted to such Participant, to the extent that they were not
               exercisable at the time of such termination, shall expire at the
               close of business on the date of such termination. The 90-day
               period described in this Section 7(i)(1) shall be extended to one
               year after the date of such termination in the event of the
               Participant's death during such 90-day period. Notwithstanding
               the foregoing, no Option shall be exercisable after the
               expiration of its term.

                         (2) Unless the applicable Award Agreement provides
               otherwise, in the event that the employment or service of a
               Participant with the Company or any Subsidiary shall terminate on
               account of the Retirement, Disability, or death of the
               Participant, (A) Options granted to such Participant, to the
               extent that they were exercisable at the time of such
               termination, shall remain exercisable until the date that is one
               year after such termination, on which date they shall expire and
               (B) Options granted to such Participant, to the extent that they
               were not exercisable at the time of such termination, shall
               expire at the close of business on the date of such termination.
               Notwithstanding the foregoing, no Option shall be exercisable
               after the expiration of its term.

                         (3) In the event of the termination of a Participant's
               employment or service for Cause, all outstanding Options granted
               to such Participant shall expire at the commencement of business
               on the date of such termination.

                    (j) Other Change in Employment Status. An Option shall be
          affected, both with regard to vesting schedule and termination, by
          leaves of absence, changes from full-time to part-time employment,
          partial disability or other changes in the employment status of an
          Participant, in the discretion of the Administrator. The Administrator
          shall follow the written policies of the Company (if any), including
          such rules, guidelines and practices as may be adopted pursuant to
          Section 3 hereof, as they may be in effect from time to time, with
          regard to such matters.

          SECTION 8. SHARE APPRECIATION RIGHTS.

          (a) General. Share Appreciation Rights may be granted either alone
("Free Standing Rights") or in conjunction with all or part of any Share Option
granted under the Plan ("Related Rights"), provided that, in each case, the
Shares underlying the

                                      -14-

Share Appreciation Rights are traded on an "established securities market"
within the meaning of Section 409A of the Code. In the case of a Nonqualified
Share Option, Related Rights may be granted either at or after the time of the
grant of such Share Option. In the case of an Incentive Share Option, Related
Rights may be granted only at the time of the grant of the Incentive Share
Option. The Administrator shall determine the Eligible Recipients to whom, and
the time or times at which, grants of Share Appreciation Rights shall be made;
the number of Shares to be awarded, the price per share, and all other
conditions of Share Appreciation Rights. Notwithstanding the foregoing, no
Related Right may be granted for more shares than are subject to the Share
Option to which it relates and any Share Appreciation Right must be granted with
an exercise price not less than the Fair Market Value of the Shares on the date
of grant. The provisions of Share Appreciation Rights need not be the same with
respect to each Participant. Share Appreciation Rights granted under the Plan
shall be subject to the following terms and conditions set forth in this Section
8 and shall contain such additional terms and conditions, not inconsistent with
the terms of the Plan, as the Administrator shall deem desirable, as set forth
in the applicable Award Agreement.

          (b) Awards. The prospective recipient of a Share Appreciation Right
shall not have any rights with respect to such Award, unless and until such
recipient has executed an Award Agreement and delivered a fully executed copy
thereof to the Company, within a period of sixty days (or such other period as
the Administrator may specify) after the award date. Participants who are
granted Share Appreciation Rights shall have no rights as shareholders of the
Company with respect to the grant or exercise of such rights.

          (c) Exercisability.

               (1) Share Appreciation Rights that are Free Standing Rights
("Free Standing Share Appreciation Rights") shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Administrator at or after grant; provided, however, that no Free Standing Share
Appreciation Right shall be exercisable during the first six months of its term,
except that this additional limitation shall not apply in the event of a
Participant's death or Disability prior to the expiration of such six-month
period.

               (2) Share Appreciation Rights that are Related Rights ("Related
Share Appreciation Rights") shall be exercisable only at such time or times and
to the extent that the Share Options to which they relate shall be exercisable
in accordance with the provisions of Section 7 above and this Section 8 of the
Plan; provided, however, that a Related Share Appreciation Right granted in
connection with an Incentive Share Option shall be exercisable only if and when
the Fair Market Value of the Shares subject to the Incentive Share Option
exceeds the Exercise Price of such Option; provided, further, that no Related
Share Appreciation Right shall be exercisable during the first six months of its
term, except that this additional limitation shall not apply in the event of a
Participant's death or Disability prior to the expiration of such six-month
period.

                                      -15-

          (d) Payment Upon Exercise.

               (1) Upon the exercise of a Free Standing Share Appreciation
Right, the Participant shall be entitled to receive up to, but not more than,
that number of Shares equal in value to the excess of the Fair Market Value as
of the date of exercise over the price per share specified in the Free Standing
Share Appreciation Right (which price shall be no less than 100% of the Fair
Market Value on the date of grant) multiplied by the number of Shares in respect
of which the Free Standing Share Appreciation Right is being exercised, with the
Administrator having the right to determine the form of payment.

               (2) A Related Right may be exercised by a Participant by
surrendering the applicable portion of the related Option. Upon such exercise
and surrender, the Participant shall be entitled to receive up to, but not more
than, that number of Shares equal in value to the excess of the Fair Market
Value as of the date of exercise over the Exercise Price specified in the
related Option (which price shall be no less than 100% of the Fair Market Value
on the date of grant) multiplied by the number of Shares in respect of which the
Related Share Appreciation Right is being exercised, with the Administrator
having the right to determine the form of payment. Options which have been so
surrendered, in whole or in part, shall no longer be exercisable to the extent
the Related Rights have been so exercised.

               (3) Notwithstanding the foregoing, the Administrator may
determine to settle the exercise of a Share Appreciation Right in cash (or in
any combination of Shares and cash) to the extent that such settlement does not
result in an excise tax being payable pursuant to Section 409A of the Code.

          (e) Non-Transferability.

               (1) Free Standing Share Appreciation Rights shall be transferable
only when and to the extent that an Option would be transferable under Section 7
of the Plan.

               (2) Related Share Appreciation Rights shall be transferable only
when and to the extent that the underlying Option would be transferable under
Section 7 of the Plan.

          (f) Termination of Employment or Service.

               (1) In the event of the termination of employment or service with
the Company or any Subsidiary of a Participant who has been granted one or more
Free Standing Share Appreciation Rights, such rights shall be exercisable at
such time or times and subject to such terms and conditions as shall be
determined by the Administrator at or after grant.

               (2) In the event of the termination of employment or service with
the Company or any Subsidiary of a Participant who has been granted one or more

                                      -16-

Related Share Appreciation Rights, such rights shall be exercisable at such time
or times and subject to such terms and conditions as set forth in the related
Share Options.

          (g) Term.

               (1) The term of each Free Standing Share Appreciation Right shall
be fixed by the Administrator, but no Free Standing Share Appreciation Right
shall be exercisable more than ten years after the date such right is granted.

               (2) The term of each Related Share Appreciation Right shall be
the term of the Share Option to which it relates, but no Related Share
Appreciation Right shall be exercisable more than ten years after the date such
right is granted.

          SECTION 9. RESTRICTED SHARES, DEFERRED SHARES AND PERFORMANCE SHARES.

          (a) General. Awards of Restricted Shares, Deferred Shares or
Performance Shares may be issued either alone or in addition to other awards
granted under the Plan. The Administrator shall determine the Eligible
Recipients to whom, and the time or times at which, awards of Restricted Shares,
Deferred Shares or Performance Shares shall be made; the number of Shares to be
awarded; the price, if any, to be paid by the Participant for the acquisition of
Restricted Shares, Deferred Shares or Performance Shares; the Restricted Period
(as defined in paragraph (c) of this Section 9), if any, applicable to awards of
Restricted Shares or Deferred Shares; the performance objectives applicable to
awards of Restricted Shares, Deferred Shares or Performance Shares; and all
other conditions of the awards of Restricted Shares, Deferred Shares and
Performance Shares. The Administrator may also condition the grant of the award
of Restricted Shares, Deferred Shares or Performance Shares upon the exercise of
Options, or upon such other criteria as the Administrator may determine, in its
sole discretion. The provisions of the awards of Restricted Shares, Deferred
Shares or Performance Shares need not be the same with respect to each
Participant.

          (b) Awards and Certificates. The prospective recipient of awards of
Restricted Shares, Deferred Shares or Performance Shares shall not have any
rights with respect to any such award, unless and until such recipient has
executed an Award Agreement and delivered a fully executed copy thereof to the
Company, within a period of sixty days (or such other period as the
Administrator may specify) after the award date. Except as otherwise provided
below in this Section 9(c), (i) each Participant who is granted an award of
Restricted Shares or Performance Shares shall be issued a share certificate in
respect of such shares of Restricted Shares or Performance Shares; and (ii) such
certificate shall be registered in the name of the Participant, and shall bear
an appropriate legend referring to the terms, conditions, and restrictions
applicable to any such award.

          The Company may require that the share certificates evidencing
Restricted Shares or Performance Shares granted hereunder be held in the custody
of the Company until the restrictions thereon shall have lapsed, and that, as a
condition of any award of

                                      -17-

Restricted Shares or Performance Shares, the Participant shall have delivered a
share transfer form relating to the Shares covered by such award.

          With respect to awards of Deferred Shares, at the expiration of the
Restricted Period, share certificates in respect of such shares of Deferred
Shares shall be delivered to the Participant, or his legal representative, in a
number equal to the number of Shares covered by the Deferred Shares award.

          (c) Restrictions and Conditions. The awards of Restricted Shares,
Deferred Shares and Performance Shares granted pursuant to this Section 9 shall
be subject to the following restrictions and conditions and any additional
restrictions or conditions as determined by the Administrator at the time of
grant or thereafter:

               (1) Subject to the provisions of the Plan and the Restricted
Shares Award Agreement, Deferred Shares Award Agreement or Performance Shares
Award Agreement, as appropriate, governing any such award, during such period as
may be set by the Administrator commencing on the date of grant (the "Restricted
Period"), the Participant shall not be permitted to sell, transfer, charge,
pledge or assign shares of Restricted Shares, Deferred Shares or Performance
Shares awarded under the Plan; provided, however, that the Administrator may, in
its sole discretion, provide for the lapse of such restrictions in installments
and may accelerate or waive such restrictions in whole or in part based on such
factors and such circumstances as the Administrator may determine, in its sole
discretion, including, but not limited to, the attainment of certain performance
related goals, the Participant's termination of employment or service as a
director or Consultant to the Company or any Subsidiary, the Participant's death
or Disability. Notwithstanding the foregoing, upon a Change in Control, the
provisions of Section 12 shall apply to such outstanding Awards.

               (2) Except as provided in paragraph (c)(l) of this Section 9 or
in any relevant Award Agreement, the Participant shall generally have the rights
of a shareholder of the Company with respect to Restricted Shares or Performance
Shares during the Restricted Period. The Participant shall generally not have
the rights of a shareholder with respect to Shares subject to awards of Deferred
Shares during the Restricted Period; provided, however, that dividends declared
during the Restricted Period with respect to all or any number of Shares covered
by such award of Deferred Shares may be paid to the Participant in accordance
with a Deferred Shares Award Agreement approved by the Administrator at the time
of the grant of such award. Certificates for unrestricted Shares shall be
delivered to the Participant promptly after, and only after, the Restricted
Period shall expire without forfeiture in respect of such awards of Restricted
Shares, Deferred Shares or Performance Shares except as the Administrator, in
its sole discretion, shall otherwise determine.

               (3) The rights of Participants granted awards of Restricted
Shares, Deferred Shares or Performance Shares upon termination of employment or
service as a director or Consultant to the Company or to any Subsidiary
terminates for any reason during the Restricted Period shall be set forth in the
Award Agreement.

                                      -18-

          SECTION 10. OTHER SHARE-BASED AWARDS.

                    (a) The Administrator is authorized to grant Awards to
          Participants in the form of Other Share-Based Awards, as deemed by the
          Administrator to be consistent with the purposes of the Plan and as
          evidenced by an Award Agreement. The Administrator shall determine the
          terms and conditions of such Awards, consistent with the terms of the
          Plan, at the date of grant or thereafter, including any Performance
          Goals and performance periods. Shares or other securities or property
          delivered pursuant to an Award in the nature of a purchase right
          granted under this Section 10 shall be purchased for such
          consideration, paid for at such times, by such methods, and in such
          forms, including, without limitation, Shares repurchased, other
          Awards, notes or other property, as the Administrator shall determine
          (provided that the par value of my issued Share is paid), subject to
          any required corporate action.

                    (b) To the extent that the Plan is subject to Section 162(m)
          of the Code, no payment shall be made to a "covered employee" (within
          the meaning of Section 162(m) of the Code) prior to the certification
          by the Committee that the Performance Goals have been attained. The
          Committee may establish such other rules applicable to the Other
          Share-Based Awards, provided, however, that in the event that the Plan
          is subject to Section 162(m) of the Code, such rules shall be in
          compliance with Section 162(m) of the Code.

          SECTION 11. NON-EMPLOYEE DIRECTOR GRANTS.

          (a) Annual Grant. Except as otherwise provided by the Administrator,
on the first business day after the annual shareholders' meeting of the Company
and each annual shareholders' meeting thereafter during the term of the Plan
(beginning with the annual shareholders' meeting in 2007) each Non-Employee
Director shall be granted that number of Shares, the aggregate Fair Market Value
of which shall equal $15,000 on the date of grant (the "Non-Employee Director
Shares"). The Non-Employee Director Shares shall be fully vested as of the date
of grant.

          (b) Share Availability. In the event that the number of Shares
available for grant under the Plan is not sufficient to accommodate the awards
of Non-Employee Director Shares, then the remaining Shares available for such
automatic awards shall be granted to each Non-Employee Director who is to
receive such an award on a pro-rata basis. No further grants shall be made until
such time, if any, as additional Shares become available for grant under the
Plan.

          SECTION 12. ACCELERATED VESTING UPON A CHANGE IN CONTROL.

          Unless otherwise determined by the Administrator and evidenced in an
Award Agreement, in the event of a termination of employment by the Company
without Cause

                                      -19-

within twelve (12) months following a Change of Control, and in the case of
those Participants who are entitled to receive severance under an employment
agreement with the Company upon a termination by the Participant for good reason
(as defined in such employment agreement) upon such a termination for good
reason within twelve (12) months following a Change in Control:

                    (a) any Award carrying a right to exercise that was not
          previously vested and exercisable shall become fully vested and
          exercisable and shall remain exercisable; and

                    (b) the restrictions, deferral limitations, payment
          conditions, and forfeiture conditions applicable to any other Award
          granted under the Plan shall immediately lapse and such Awards shall
          be deemed fully vested, and any performance conditions imposed with
          respect to Awards shall be deemed to be fully achieved.

          SECTION 13. AMENDMENT AND TERMINATION.

          The Board may amend, alter or terminate the Plan, but no amendment,
alteration, or termination shall be made that would impair the rights of a
Participant under any award theretofore granted without such Participant's
consent. Unless the Board determines otherwise, the Board shall obtain approval
of the Company's shareholders for any amendment that would require such approval
in order to satisfy the requirements of sections 162(m) or 422 of the Code, any
rules of the share exchange on which the Shares are traded or other applicable
law. The Administrator may amend the terms of any award theretofore granted,
prospectively or retroactively, but, subject to Section 5 of Plan, no such
amendment shall impair the rights of any Participant without his or her consent.

          SECTION 14. UNFUNDED STATUS OF PLAN.

          The Plan is intended to constitute an "unfunded" plan for incentive
compensation. With respect to any payments not yet made to a Participant by the
Company, nothing contained herein shall give any such Participant any rights
that are greater than those of a general creditor of the Company.

          SECTION 15. WITHHOLDING TAXES.

          Whenever cash is to be paid pursuant to an award granted hereunder,
the Company shall have the right to deduct therefrom an amount sufficient to
satisfy any federal, state and local withholding tax requirements related
thereto. Whenever Shares are to be issued or become vested pursuant to an award,
the Company shall have the right to require the Participant to remit to the
Company in cash an amount sufficient to satisfy any federal, state and local
withholding tax requirements related thereto. With the approval of the
Administrator, in its sole discretion, the Participant may satisfy the foregoing
requirement by electing to have the Company repurchase Shares which the
Participant already owns and in such event the Company shall repurchase such
number of

                                      -20-

Shares having a value equal to the minimum amount of tax required to be
withheld. Such Shares shall be valued at their Fair Market Value on the date as
of which the amount of tax to be withheld is determined. Any fractional amounts
shall be settled in cash. Such an election may be made with respect to all or
any portion of the Shares to be delivered pursuant to an award.

          SECTION 16. GENERAL PROVISIONS.

                    (a) Shares shall not be issued pursuant to the exercise of
          any Option granted hereunder unless the exercise of such Option and
          the issuance and delivery of such Shares pursuant thereto shall comply
          with all relevant provisions of law, including, without limitation,
          Bermuda law, the Securities Act of 1933, as amended, the Exchange Act
          and the requirements of any share exchange upon which the Shares may
          then be listed, and shall be further subject to the approval of
          counsel for the Company with respect to such compliance.

                    (b) The Administrator may require each person acquiring
          Shares to represent to and agree with the Company in writing that such
          person is acquiring the Shares without a view to distribution thereof.
          The certificates for such Shares may include any legend that the
          Administrator deems appropriate to reflect any restrictions on
          transfer which the Administrator determines, in its sole discretion,
          arise under applicable securities laws or are otherwise applicable.

                    (c) All certificates for Shares delivered under the Plan
          shall be subject to such stop-transfer orders and other restrictions
          as the Administrator may deem advisable under the rules, regulations,
          and other requirements of the Securities and Exchange Commission, any
          share exchange upon which the Shares may then be listed, and Bermuda
          law any applicable federal or state securities law, and the
          Administrator may cause a legend or legends to be placed on any such
          certificates to make appropriate reference to such restrictions.

                    (d) The Administrator may require a Participant receiving
          Shares pursuant to the Plan, as a condition precedent to receipt of
          such Shares, to enter into a shareholder agreement or "lock-up"
          agreement in such form as the Committee shall determine is necessary
          or desirable to further the Company's interests.

                    (e) The adoption of the Plan shall not confer upon any
          Eligible Recipient any right to continued employment or service with
          the Company or any Subsidiary, as the case may be, nor shall it
          interfere in any way with the right of the Company or any Subsidiary
          to terminate the employment or service of any of its Eligible
          Recipients at any time.

                                      -21-

          SECTION 17. EFFECTIVE DATE.

     The Plan became effective upon adoption by the Board on January 17, 2006
(the "Effective Date"), subject to requisite approval of shareholders of the
Company and subject to permission being granted by the Bermuda Monetary
Authority pursuant to the Exchange Control Act 1972 (as amended) for the issue
of the Shares pursuant to the Plan.

          SECTION 18. TERM OF PLAN.

          No award shall be granted pursuant to the Plan on or after the tenth
anniversary of the Effective Date, but awards theretofore granted may extend
beyond that date.

          SECTION 19. GOVERNING LAW.

          The Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the Bermuda.

                                      -22-

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