Document:

Exhibit 4.5

THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS
PURCHASE OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS
PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF ONE YEAR FOLLOWING THE
EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) MORGAN JOSEPH & CO.
INC  (“MORGAN JOSEPH”), OR AN UNDERWRITER
OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE
OFFICER OR PARTNER OF MORGAN JOSEPH OR OF ANY SUCH UNDERWRITER OR SELECTED
DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE
LATER OF THE CONSUMMATION BY ARCADE ACQUISITION CORP. (“COMPANY”) OF A SHARE
CAPITAL EXCHANGE, ASSET ACQUISITION OR OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS
COMBINATION”) (AS DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT
(DEFINED HEREIN)) OR
                       ,
2008.  VOID AFTER 5:00 P.M.  NEW YORK CITY LOCAL TIME,
                         ,
2012.

UNIT PURCHASE OPTION

FOR THE PURCHASE OF

750,000 UNITS

OF

ARCADE ACQUISITION CORP.

1.             PURCHASE OPTION.

THIS CERTIFIES THAT, in
consideration of $100.00 duly paid by or on behalf of Morgan Joseph or its
designee (“HOLDER”), as registered owner of this Purchase Option, to Arcade
Acquisition Corp. (“COMPANY”), Holder is entitled, at any time or from time to
time upon the later of the consummation of a Business Combination or                      , 2008 (“COMMENCEMENT
DATE”), and at or before 5:00 p.m., New York City local time,
                    ,
2012 (“EXPIRATION DATE”), but not thereafter, to subscribe for, purchase and
receive, in whole or in part, up to 750,000 units (“UNITS”) of the Company,
each Unit consisting of one share of common stock of the Company, par value
$0.0001 per share (“COMMON SHARE(S)”), and one warrant (“WARRANT(S)”) expiring
four years from the effective date (“EFFECTIVE DATE”) of the registration
statement (“REGISTRATION STATEMENT”) pursuant to which Units are offered for
sale to the public (“OFFERING”).  Each
Warrant is the same as the warrants included in the Units being registered for
sale to the public by way of the Registration Statement (“PUBLIC WARRANTS”),
except that the exercise price of the Warrant is $7.00 per share.  If the Expiration Date is a day on which
banking institutions are authorized by law to close, then this Purchase Option
may be exercised on the next succeeding day which is not such a day in
accordance with the terms herein.  During
the period ending on the Expiration Date, the Company agrees not to take any
action that would terminate the Purchase Option.  This Purchase Option is initially exercisable
at $10.00 per Unit so purchased; provided, however, that upon the occurrence of
any of the events specified in Section 6 hereof, the rights granted by this
Purchase Option, including the exercise price per Unit and the number of Units
(and Common Shares and Warrants) to be received upon such exercise, shall be
adjusted as therein specified.  The term “Exercise
Price” shall mean the initial exercise price or the adjusted exercise price,
depending on the context.

2.             EXERCISE.

2.1           EXERCISE FORM.  In order to exercise this Purchase Option,
the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase 

Option
and payment of the Exercise Price for the Units being purchased payable in cash
or by certified check or official bank check. 
If the subscription rights represented hereby shall not be exercised at
or before 5:00 p.m., New York City local time, on the Expiration Date this
Purchase Option shall become and be void without further force or effect, and
all rights represented hereby shall cease and expire.

2.2           LEGEND.  Each certificate for the securities purchased
under this Purchase Option shall bear a legend as follows unless such
securities have been registered under the Securities Act of 1933, as amended (“ACT”):

“The securities represented by this certificate have
not been registered under the Securities Act of 1933, as amended (“Act”) or
applicable state law.  The securities may
not be offered for sale, sold or otherwise transferred except pursuant to an
effective registration statement under the Act, or pursuant to an exemption
from registration under the Act and applicable state law.”

2.3           CASHLESS EXERCISE.

2.3.1         DETERMINATION OF AMOUNT. 
In lieu of the payment of the Exercise Price multiplied by the number of
Units for which this Purchase Option is exercisable (and in lieu of being
entitled to receive Common Shares and Warrants) in the manner required by
Section 2.1, the Holder shall have the right (but not the obligation) to
convert any exercisable but unexercised portion of this Purchase Option into
Units (the “CONVERSION RIGHT”) as follows: upon exercise of the Conversion
Right, the Company shall deliver to the Holder (without payment by the Holder
of any of the Exercise Price in cash) that number of Common Shares and Warrants
comprising that number of Units equal to the quotient obtained by dividing (x)
the “Value” (as defined below) of the portion of the Purchase Option being
converted by (y) the Current Market Value (as defined below) of the portion of
the Purchase Option being converted.  The
“VALUE” of the portion of the Purchase Option being converted shall equal the
remainder derived from subtracting (a) (i) the Exercise Price multiplied by
(ii) the number of Units underlying the portion of this Purchase Option being
converted from (b) the CURRENT MARKET VALUE of a Unit multiplied by the number
of Units underlying the portion of the Purchase Option being converted.  As used herein, the term “CURRENT MARKET
VALUE” per Unit at any date means: (A) in the event that neither the Units nor
Warrants are still trading, the remainder derived from subtracting (x) the
exercise price of the Warrants multiplied by the number of Common Shares
issuable upon exercise of the Warrants underlying one Unit from (y) (i) the
Current Market Price of the Common Shares multiplied by (ii) the number of
Common Shares underlying one Unit, which shall include the Common Shares
underlying the Warrants included in such Unit; (B) in the event that the Units,
Common Shares and Warrants are still trading, (i) if the Units are listed on a
national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
Capital Market or NASD OTC Bulletin Board (or successor such as the Bulletin
Board Exchange), the last sale price of the Units in the principal trading
market for the Units as reported by the exchange, Nasdaq or the NASD, as the
case may be, on the last trading day preceding the date in question; or (ii) if
the Units are not listed on a national securities exchange or quoted on the
Nasdaq Global Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or
successor exchange), but is traded in the residual over-the-counter market, the
closing bid price for Units on the last trading day preceding the date in
question for which such quotations are reported by the Pink Sheets, LLC or
similar publisher of such quotations; and (C) in the event that the Units are
not still trading but the Common Shares and Warrants underlying the Units are
still trading, the Current Market Price of the Common Shares plus the product
of (x) the Current Market Price of the Warrants and (y) the number of Common
Shares underlying the Warrants included in one Unit.  The “CURRENT MARKET PRICE” shall mean (i) if
the Common Shares (or Warrants, as the case may be) are listed on a national
securities exchange or quoted on the Nasdaq Global Market, Nasdaq Capital
Market or NASD OTC Bulletin Board (or successor such as the Bulletin Board
Exchange), the last sale price of the Common Shares (or Warrants) in the
principal trading market for the Common Shares as reported by the exchange,
Nasdaq or 

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the NASD, as the case may be, on the last
trading day preceding the date in question; (ii) if the Common Shares (or
Warrants, as the case may be) are not listed on a national securities exchange
or quoted on the Nasdaq Global Market, Nasdaq Capital Market or the NASD OTC
Bulletin Board (or successor exchange), but are traded in the residual
over-the-counter market, the closing bid price for the Common Shares (or
Warrants) on the last trading day preceding the date in question for which such
quotations are reported by the Pink Sheets, LLC or similar publisher of such
quotations; and (iii) if the fair market value of the Common Shares cannot be
determined pursuant to clause (i) or (ii) above, such price as the Board of
Directors of the Company shall determine, in good faith.

2.3.2        MECHANICS OF CASHLESS EXERCISE.  The Cashless Exercise Right may be exercised
by the Holder on any business day on or after the Commencement Date and not
later than the Expiration Date by delivering the Purchase Option with the duly
executed exercise form attached hereto with the cashless exercise section
completed to the Company, exercising the Cashless Exercise Right and specifying
the total number of Units the Holder will purchase pursuant to such Cashless
Exercise Right.

3.             TRANSFER.

3.1           GENERAL RESTRICTIONS. 
The registered Holder of this Purchase Option, by its acceptance hereof,
agrees that it will not sell, transfer, assign, pledge or hypothecate this
Purchase Option for a period of one year following the Effective Date to anyone
other than (i) Morgan Joseph or an underwriter or a selected dealer in
connection with the Offering, or (ii) a bona fide officer or partner of Morgan
Joseph or of any such underwriter or selected dealer.  On and after the first anniversary of the
Effective Date, transfers to others may be made subject to compliance with or
exemptions from applicable securities laws. 
In order to make any permitted assignment, the Holder must deliver to the
Company the assignment form attached hereto duly executed and completed,
together with the Purchase Option and payment of all transfer taxes, if any,
payable in connection therewith.  The
Company shall within five business days transfer this Purchase Option on the
books of the Company and shall execute and deliver a new Purchase Option or
Purchase Options of like tenor to the appropriate assignee(s) expressly
evidencing the right to purchase the aggregate number of Units purchasable
hereunder or such portion of such number as shall be contemplated by any such
assignment.

3.2           RESTRICTIONS IMPOSED BY THE ACT.  The securities evidenced by this Purchase
Option shall not be transferred unless and until (i) the Company has received
the opinion of counsel for the Holder that the securities may be transferred
pursuant to an exemption from registration under the Act and applicable state
securities laws, the availability of which is established to the reasonable
satisfaction of the Company (the Company hereby agreeing that the opinion of
Kramer Levin Naftalis & Frankel LLP shall be deemed satisfactory evidence
of the availability of an exemption), or (ii) a registration statement or a
post-effective amendment to the Registration Statement relating to such
securities has been filed by the Company and declared effective by the
Securities and Exchange Commission (the “COMMISSION”) and compliance with
applicable state securities law has been established.

4.             NEW PURCHASE
OPTIONS TO BE ISSUED.

4.1           PARTIAL EXERCISE OR TRANSFER.  Subject to the restrictions in Section 3
hereof, this Purchase Option may be exercised or assigned in whole or in
part.  In the event of the exercise or
assignment hereof in part only, upon surrender of this Purchase Option for
cancellation, together with the duly executed exercise or assignment form and
except in the case of an exercise of this Purchase Option contemplated by
Section 2.3 hereof, funds sufficient to pay any Exercise Price and/or transfer
tax, the Company shall cause to be delivered to the Holder without charge a new
Purchase Option of like tenor to this Purchase Option in the name of the Holder
evidencing the right of the Holder to purchase the number of Units purchasable
hereunder as to which this Purchase Option has not been exercised or assigned.

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4.2           LOST CERTIFICATE.  Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Purchase Option and of reasonably
satisfactory indemnification or the posting of a bond, the Company shall
execute and deliver a new Purchase Option of like tenor and date.  Any such new Purchase Option executed and
delivered as a result of such loss, theft, mutilation or destruction shall
constitute a substitute contractual obligation on the part of the Company.

5.             REGISTRATION
RIGHTS.

5.1           DEMAND REGISTRATION.

5.1.1        GRANT OF RIGHT.  The
Company, upon written demand (“INITIAL DEMAND NOTICE”) of the Holder(s) of at
least 51% of the Purchase Options and/or the underlying Units and/or the
underlying securities (“MAJORITY HOLDERS”), agrees to register (the “DEMAND
REGISTRATION”) under the Act on one occasion, all or any portion of the
Purchase Options requested by the Majority Holders in the Initial Demand Notice
and all of the securities underlying such Purchase Options, including the
Units, Common Shares, the Warrants and the Common Shares underlying the
Warrants (collectively, the “REGISTRABLE SECURITIES”).  On such occasion, the Company will file a
registration statement or a post-effective amendment to the Registration
Statement covering the Registrable Securities within sixty days after receipt
of the Initial Demand Notice and use its best efforts to have such registration
statement or post-effective amendment declared effective as soon as possible
thereafter.  The demand for registration
may be made at any time during a period of five years beginning on the
Effective Date.  The Initial Demand
Notice shall specify the number of shares of Registrable Securities proposed to
be sold and the intended method(s) of distribution thereof.  The Company will notify all holders of the
Purchase Options and/or Registrable Securities of the demand within ten days
from the date of the receipt of any such Initial Demand Notice.  Each holder of Registrable Securities who
wishes to include all or a portion of such holder’s Registrable Securities in
the Demand Registration (each such holder including shares of Registrable
Securities in such registration, a “DEMANDING HOLDER”) shall so notify the
Company within fifteen (15) 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 5.1.4.

5.1.2        EFFECTIVE REGISTRATION. 
A registration will not count as a Demand Registration until the
registration statement filed with the Commission with respect to such Demand
Registration 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 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 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) a majority-in-interest of the Demanding Holders thereafter
elect to continue the offering.

5.1.3        UNDERWRITTEN OFFERING. 
If the Majority Holders so elect and such holders so advise the Company
as part of the Initial Demand Notice, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an
underwritten offering.  In such event,
the right of any holder to include its Registrable Securities in such
registration shall be conditioned upon such holder’s participation in such
underwriting and the inclusion of such holder’s Registrable Securities in the
underwriting to the extent provided herein. 
All Demanding Holders proposing to distribute their securities through
such underwriting shall enter into an underwriting agreement in customary form
with the underwriter or underwriters selected for such underwriting by the
Majority Holders.

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5.1.4        REDUCTION OF OFFERING. 
If the managing underwriter or underwriters for a Demand Registration
that is to be an underwritten offering advises the Company and the Demanding
Holders in writing that the dollar amount or number of shares of Registrable
Securities which the Demanding Holders desire to sell, taken together with all
other Common Shares or other securities which the Company desires to sell and the
Common Shares, if any, as to which registration has been requested pursuant to
written contractual piggy-back registration rights held by other shareholders
of the Company who desire to sell, exceeds the maximum dollar amount or maximum
number of shares 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 shares, as applicable, the “MAXIMUM NUMBER OF SHARES”), then the
Company shall include in such registration: (i) first, the Registrable
Securities as to which Demand Registration has been requested by the Demanding
Holders (pro rata in accordance with the number of shares that each such Person
has requested be included in such registration, regardless of the number of
shares held by each such Person (such proportion is referred to herein as “PRO
RATA”)) 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), the Common Shares 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 Common Shares or
other securities registrable pursuant to the terms of the Registration Rights
Agreement between the Company and the initial investors in the Company, dated
as of
                        ,
2007 (the “REGISTRATION RIGHTS AGREEMENT” and such registrable securities, the “INVESTOR
SECURITIES”) as to which “piggy-back” registration has been requested by the
holders thereof, Pro Rata, 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 Common Shares 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.

5.1.5        WITHDRAWAL.  If a
majority-in-interest of the Demanding Holders disapprove of the terms of any
underwriting or are not entitled to include all of their 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.  If
the majority-in-interest of the Demanding Holders withdraws from a proposed
offering relating to a Demand Registration, then such registration shall not
count as a Demand Registration provided for in Section 5.1.

5.1.6        TERMS.  The Company
shall bear all fees and expenses attendant to registering the Registrable
Securities, including the expenses of any legal counsel selected by the Holders
to represent them in connection with the sale of the Registrable Securities,
but the Holders shall pay any and all underwriting commissions.  The Company agrees to use its reasonable best
efforts to qualify or register the Registrable Securities in such states as are
reasonably requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable Securities in a
state in which such registration would cause (i) the Company to be obligated to
qualify to do business in such state, or would subject the Company to taxation
as a foreign corporation doing business in such jurisdiction or (ii) the
principal shareholders of the Company to be obligated to escrow their shares of
share capital of the Company.  The
Company shall cause any registration statement or post-effective amendment
filed pursuant to the demand rights granted under Section 5.1.1 to remain
effective for a period of nine consecutive months from the effective date of
such registration statement or post-effective amendment.

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5.2           PIGGY-BACK REGISTRATION.

5.2.1        PIGGY-BACK RIGHTS.  If
at any time during the seven year period commencing on the Effective Date the
Company proposes to file a registration statement under the Act with respect to
an offering of equity securities, or securities or other obligations
exercisable or exchangeable for, or convertible into, equity securities, by the
Company for its own account or for shareholders of the Company for their
account (or by the Company and by shareholders of the Company including,
without limitation, pursuant to Section 5.1), other than a registration
statement (i) filed in connection with any employee share option or other benefit
plan, (ii) for an exchange offer or offering of securities solely to the
Company’s existing shareholders, (iii) for an offering of debt that is
convertible into equity securities of the Company or (iv) for a dividend
reinvestment plan, then the Company shall (x) give written notice of such
proposed filing to the holders of Registrable Securities as soon as practicable
but in no event less than ten (10) days before the anticipated filing date,
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 (y)
offer to the holders of Registrable Securities in such notice the opportunity
to register the sale of such number of shares of Registrable Securities as such
holders may request in writing within five (5) 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 its best 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 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
proposing to distribute their securities through a Piggy-Back Registration that
involves an underwriter or underwriters shall enter into an underwriting
agreement in customary form with the underwriter or underwriters selected for
such Piggy-Back Registration.

5.2.2        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 in writing that the dollar amount or number
of Common Shares which the Company desires to sell, taken together with Common
Shares, 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 5.2, and the Common Shares, 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:

(a)           If
the registration is undertaken for the Company’s account: (A) first, the Common
Shares or other securities that the Company desires to sell 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 Common Shares or other securities, if any, comprised of Registrable
Securities and Investor Securities, as to which registration has been requested
pursuant to the applicable written contractual piggy-back registration rights
of such security holders, Pro Rata, that can be sold without exceeding the
Maximum Number of Shares; and (C) third, to the extent that the Maximum Number
of shares has not been reached under the foregoing clauses (A) and (B), the
Common Shares or other securities for the account of other persons that the
Company is obligated to register pursuant to written contractual piggy-back registration
rights with such persons and that can be sold without exceeding the Maximum
Number of Shares;

(b)           If
the registration is a “demand” registration undertaken at the demand of holders
of Investor Securities, (A) first, the Common Shares or other securities for
the account of the 

 6
 

demanding persons, Pro Rata, 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 Common Shares 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 Registrable Securities, Pro Rata,
as to which registration has been requested pursuant to the terms hereof, that
can be sold without exceeding the Maximum Number of Shares; and (D) fourth, to
the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A), (B) and (C), the Common Shares or other securities for
the account of other persons that the Company is obligated to register pursuant
to written contractual arrangements with such persons, that can be sold without
exceeding the Maximum Number of Shares; and

(c)           If
the registration is a “demand” registration undertaken at the demand of persons
other than either the holders of Registrable Securities or of Investor
Securities, (A) first, the Common Shares or other securities for the account of
the demanding persons 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 Common Shares 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), collectively the
Common Shares or other securities comprised of Registrable Securities and
Investor Securities, Pro Rata, as to which registration has been requested
pursuant to the terms hereof and of the Registration Rights Agreement, as
applicable, that can be sold without exceeding the Maximum Number of Shares;
and (D) fourth, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A), (B) and (C), the Common Shares or
other securities for the account of other persons that the Company is obligated
to register pursuant to written contractual arrangements with such persons,
that can be sold without exceeding the Maximum Number of Shares.

5.2.3        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. 
The Company (whether on its own determination or as the result of a withdrawal
by persons making a demand pursuant to written contractual obligations) may
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 5.2.4.

5.2.4        TERMS.  The Company
shall bear all fees and expenses attendant to registering the Registrable
Securities, including the expenses of any legal counsel selected by the Holders
to represent them in connection with the sale of the Registrable Securities but
the Holders shall pay any and all underwriting commissions related to the
Registrable Securities.  In the event of
such a proposed registration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than fifteen days written
notice prior to the proposed date of filing of such registration statement.  Such notice to the Holders shall continue to
be given for each applicable registration statement filed (during the period in
which the Purchase Option is exercisable) by the Company until such time as all
of the Registrable Securities have been registered and sold.  The Holders of the Registrable Securities
shall exercise the “piggy-back” rights provided for herein by giving written
notice, within ten days of the receipt of the Company’s notice of its intention
to file a registration statement.  The
Company shall cause any registration statement filed pursuant to the above “piggyback”
rights to remain effective for at least nine months from the date that the
Holders of the Registrable Securities are first given the opportunity to sell
all of such securities.

 7
 

5.3           NO NET-CASH SETTLEMENT OR DAMAGES UPON FAILURE OF
REGISTRATION.  In no event shall the
registered Holder of this Purchase Option be entitled to (i) net-cash
settlement of this Purchase Option, regardless of whether any or all of the
Registrable Securities have been registered by the Company pursuant to an
effective registration statement, or (ii) receive any damages if any or all of
the Registrable Securities have not been registered by the Company pursuant to
an effective registration statement, subject to the requirement that the
Company use its best efforts to have a registration statement or post-effective
amendment filed pursuant to this Section declared effective as soon as possible
after receiving the Initial Demand Notice. 
In the event there is no effective registration statement related to the
issuance or exercise of the Warrants contained within the Units, that portion
of the Units may not be exercised by the Holder and therefore may expire and be
worthless.

5.4           GENERAL TERMS.

5.4.1        INDEMNIFICATION.  The
Company shall indemnify the Holder(s) of the Registrable Securities to be sold
pursuant to any registration statement hereunder and each person, if any, who
controls such Holders within the meaning of Section 15 of the Act or Section
20(a) of the Securities Exchange Act of 1934, as amended (“EXCHANGE ACT”),
against all loss, claim, damage, expense or liability (including all reasonable
attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against litigation, commenced or threatened, or any
claim whatsoever whether arising out of any action between the underwriter and
the Company or between the underwriter and any third party or otherwise) to
which any of them may become subject under the Act, the Exchange Act or
otherwise, arising from such registration statement but only to the same extent
and with the same effect as the provisions pursuant to which the Company has
agreed to indemnify the underwriters contained in Section 5 of the Underwriting
Agreement between the Company, Morgan Joseph and the other underwriters named
therein dated the Effective Date.  The
Holder(s) of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall severally, and
not jointly, indemnify the Company, its officers and directors and each person,
if any, who controls the Company within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which they may become subject under the Act, the Exchange Act or
otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, in writing, for specific inclusion in such
registration statement to the same extent and with the same effect as the
provisions contained in Section 5 of the Underwriting Agreement pursuant to
which the underwriters have agreed to indemnify the Company.

5.4.2        EXERCISE OF PURCHASE OPTIONS. 
Nothing contained in this Purchase Option shall be construed as
requiring the Holder(s) to exercise their Purchase Options or Warrants
underlying such Purchase Options prior to or after the initial filing of any
registration statement or the effectiveness thereof.

5.4.3        DOCUMENTS DELIVERED TO HOLDERS.  The Company shall furnish Morgan Joseph, as
representative of the Holders participating in any of the foregoing offerings,
a signed counterpart, addressed to the participating Holders, of (i) an opinion
of counsel to the Company, dated the effective date of such registration
statement (and, if such registration includes an underwritten public offering,
an opinion dated the date of the closing under any underwriting agreement
related thereto), and (ii) a “cold comfort” letter dated the effective date of
such registration statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the underwriting
agreement) signed by the independent public accountants who have issued a
report on the Company’s financial statements included in such registration
statement, in each case covering substantially the same matters with respect to
such registration statement (and the prospectus included therein) and, in the
case 

 8
 

of such accountants’ letter, with respect to events subsequent to the
date of such financial statements, as are customarily covered in opinions of
issuer’s counsel and in accountants’ letters delivered to underwriters in
underwritten public offerings of securities. 
The Company shall also deliver promptly to Morgan Joseph, as
representative of the Holders participating in the offering, the correspondence
and memoranda described below and copies of all correspondence between the
Commission and the Company, its counsel or auditors and all memoranda relating
to discussions with the Commission or its staff with respect to the
registration statement and permit Morgan Joseph, as representative of the
Holders, to do such investigation, upon reasonable advance notice, with respect
to information contained in or omitted from the registration statement as it
deems reasonably necessary to comply with applicable securities laws or rules
of the National Association of Securities Dealers, Inc.  (“NASD”). 
Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and
independent auditors, all to such reasonable extent and at such reasonable
times and as often as Morgan Joseph, as representative of the Holders, shall
reasonably request.  The Company shall
not be required to disclose any confidential information or other records to
Morgan Joseph, as representative of the Holders, or to any other person, until
and unless such persons shall have entered into reasonable confidentiality
agreements (in form and substance reasonably satisfactory to the Company), with
the Company with respect thereto.

5.4.4        UNDERWRITING AGREEMENT. 
The Company shall enter into an underwriting agreement with the managing
underwriter(s), if any, selected by any Holders whose Registrable Securities
are being registered pursuant to this Section 5, which managing underwriter
shall be reasonably acceptable to the Company. 
Such agreement shall be reasonably satisfactory in form and substance to
the Company, each Holder and such managing underwriters, and shall contain such
representations, warranties and covenants by the Company and such other terms
as are customarily contained in agreements of that type used by the managing
underwriter.  The Holders shall be
parties to any underwriting agreement relating to an underwritten sale of their
Registrable Securities and may, at their option, require that any or all the
representations, warranties and covenants of the Company to or for the benefit
of such underwriters shall also be made to and for the benefit of such
Holders.  Such Holders shall not be
required to make any representations or warranties to or agreements with the
Company or the underwriters except as they may relate to such Holders and their
intended methods of distribution.  Such
Holders, however, shall agree to such covenants and indemnification and contribution
obligations for selling shareholders as are customarily contained in agreements
of that type used by the managing underwriter. 
Further, such Holders shall execute appropriate custody agreements and
otherwise cooperate fully in the preparation of the registration statement and
other documents relating to any offering in which they include securities
pursuant to this Section 5.  Each Holder
shall also furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be reasonably required to effect the registration of
the Registrable Securities.

5.4.5        RULE 144 SALE. 
Notwithstanding anything contained in this Section 5 to the contrary,
the Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the
registration of Registrable Securities held by any Holder (i) where such Holder
would then be entitled to sell under Rule 144 within any three-month period (or
such other period prescribed under Rule 144 as may be provided by amendment
thereof) all of the Registrable Securities then held by such Holder, and (ii)
where the number of Registrable Securities held by such Holder is within the
volume limitations under paragraph (e) of Rule 144 (calculated as if such
Holder were an affiliate within the meaning of Rule 144).

5.4.6        SUPPLEMENTAL PROSPECTUS. 
Each Holder agrees, that upon receipt of any notice from the Company of
the happening of any event as a result of which the prospectus included in the
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing, such Holder will immediately discontinue 

 9
 

disposition of Registrable Securities pursuant to the registration
statement covering such Registrable Securities until such Holder’s receipt of
the copies of a supplemental or amended prospectus, and, if so desired by the
Company, such Holder shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of such
destruction) all copies, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities current at
the time of receipt of such notice.

6.             ADJUSTMENTS.

6.1           ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF
SECURITIES.  The Exercise Price and the
number of Units underlying the Purchase Option shall be subject to adjustment
from time to time as hereinafter set forth:

6.1.1        SHARE DIVIDENDS - SPLIT-UPS. 
If after the date hereof, and subject to the provisions of Section 6.3
below, the number of outstanding Common Shares is increased by a share dividend
payable in Common Shares or by a split-up of Common Shares or other similar
event, then, on the effective date thereof, the number of Common Shares
underlying each of the Units purchasable hereunder shall be increased in
proportion to such increase in outstanding shares.  In such case, the number of Common Shares,
and the exercise price applicable thereto, underlying the Warrants underlying
each of the Units purchasable hereunder shall be adjusted in accordance with
the terms of the Warrants.  For example,
if the Company declares a two-for-one share dividend and at the time of such
dividend this Purchase Option is for the purchase of one Unit at $10.00 per
whole Unit (each Warrant underlying the Units is exercisable for $6.00 per
share), upon effectiveness of the dividend, this Purchase Option will be adjusted
to allow for the purchase of one Unit at $10.00 per Unit, each Unit entitling
the holder to receive two Common Shares and two Warrants (each Warrant
exercisable for $5.00 per share).

6.1.2        EXTRAORDINARY DIVIDEND.  If the Company, at any time while this
Purchase Option is outstanding and unexpired, shall pay a dividend or make a
distribution in cash, securities or other assets to the holders of Common Stock
(or other shares of the Company’s capital stock receivable upon exercise of the
Purchase Option), other than (i) as described in Sections 6.1.1, 6.1.3 or
6.1.4, (ii) regular quarterly or other periodic dividends, (iii) in connection
with the conversion rights of the holders of Common Stock upon consummation of
the Company’s initial Business Combination or (iv) in connection with the
Company’s liquidation and the distribution of its assets upon its failure to
consummate a Business Combination (any such non-excluded event being referred
to herein as an “Extraordinary Dividend”), then the Exercise Price shall be
decreased, effective immediately after the effective date of such Extraordinary
Dividend, by the amount of cash and/or the fair market value (as determined by
the Company’s Board of Directors, in good faith) of any securities or other
assets paid on each share of Common Stock in respect of such Extraordinary
Dividend.

6.1.3        AGGREGATION OF SHARES. 
If after the date hereof, and subject to the provisions of Section 6.3,
the number of outstanding Common Shares is decreased by a consolidation, combination
or reclassification of Common Shares or other similar event, then, on the
effective date thereof, the number of Common Shares underlying each of the
Units purchasable hereunder shall be decreased in proportion to such decrease
in outstanding shares.  In such case, the
number of Common Shares, and the exercise price applicable thereto, underlying
the Warrants underlying each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants.

6.1.4        REPLACEMENT OF SECURITIES UPON REORGANIZATION, ETC.  In case of any reclassification or
reorganization of the outstanding Common Shares other than a change covered by
Section 6.1.1 or 6.1.3 hereof or that solely affects the par value of such
Common Shares, or in the case of any merger or consolidation of the Company
with or into another corporation (other than a 

 10
 

consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization
of the outstanding Common Shares), or in the case of any sale or conveyance to
another corporation or entity of the property of the Company as an entirety or
substantially as an entirety in connection with which the Company is dissolved,
the Holder of this Purchase Option shall have the right thereafter (until the
expiration of the right of exercise of this Purchase Option) to receive upon
the exercise hereof, for the same aggregate Exercise Price payable hereunder
immediately prior to such event, the kind and amount of shares or other
securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any
such sale or transfer, by a Holder of the number of Common Shares of the
Company obtainable upon exercise of this Purchase Option and the underlying
Warrants immediately prior to such event; and if any reclassification also
results in a change in Common Shares covered by Section 6.1.1 or 6.1.3, then
such adjustment shall be made pursuant to Sections 6.1.1, 6.1.3 and this
Section 6.1.4.  The provisions of this
Section 6.1.4 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

6.1.5        CHANGES IN FORM OF PURCHASE OPTION.  This form of Purchase Option need not be
changed because of any change pursuant to this Section, and Purchase Options
issued after such change may state the same Exercise Price and the same number
of Units as are stated in the Purchase Options initially issued pursuant to
this Agreement.  The acceptance by any
Holder of the issuance of new Purchase Options reflecting a required or
permissive change shall not be deemed to waive any rights to an adjustment
occurring after the Commencement Date or the computation thereof.

6.1.6        ADJUSTMENTS OF WARRANTS. 
To the extent the price of the Warrants are lowered pursuant to Section
3.1 of the Warrant Agreement, dated
                     ,
2007, between the Company and Continental Stock Transfer & Trust Company
(the “WARRANT AGREEMENT”) the price of the Warrants underlying the Purchase
Option shall be reduced on identical percentage terms.  To the extent the duration of the Warrants is
extended pursuant to Section 3.2 of the Warrant Agreement, the duration of the
Warrants underlying the Purchase Option shall be extended on identical terms.

6.2           SUBSTITUTE PURCHASE OPTION.  In case of any consolidation of the Company
with, or merger of the Company with, or merger of the Company into, another
corporation (other than a consolidation or merger which does not result in any
reclassification or change of the outstanding Common Shares), the corporation
formed by such consolidation or merger shall execute and deliver to the Holder
a supplemental Purchase Option providing that the holder of each Purchase
Option then outstanding or to be outstanding shall have the right thereafter
(until the stated expiration of such Purchase Option) to receive, upon exercise
of such Purchase Option, the kind and amount of shares and other securities and
property receivable upon such consolidation or merger, by a holder of the
number of Common Shares of the Company for which such Purchase Option might
have been exercised immediately prior to such consolidation, merger, sale or
transfer.  Such supplemental Purchase Option
shall provide for adjustments which shall be identical to the adjustments
provided in Section 6.  The above
provision of this Section shall similarly apply to successive consolidations or
mergers.

6.3           ELIMINATION OF FRACTIONAL INTERESTS.  The Company shall not be required to issue
certificates representing fractions of Common Shares or Warrants upon the
exercise of the Purchase Option, nor shall it be required to issue scrip or pay
cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up
or down to the nearest whole number of Warrants, Common Shares or other
securities, properties or rights.

7.             RESERVATION AND
LISTING.  The Company shall at all times
reserve and keep available out of its authorized Common Shares, solely for the
purpose of issuance upon exercise of the Purchase 

 11
 

Options or the Warrants underlying the Purchase Option, such number of
Common Shares or other securities, properties or rights as shall be issuable
upon the exercise thereof.  The Company
covenants and agrees that, upon exercise of the Purchase Options and payment of
the Exercise Price therefor, all Common Shares and other securities issuable upon
such exercise shall be duly and validly issued, fully paid and non-assessable
and not subject to preemptive rights of any shareholder.  The Company further covenants and agrees that
upon exercise of the Warrants underlying the Purchase Options and payment of
the respective Warrant exercise price therefor, all Common Shares and other
securities issuable upon such exercise shall be duly and validly issued, fully
paid and non-assessable and not subject to preemptive rights of any
shareholder.  As long as the Purchase
Options shall be outstanding, the Company shall use its best efforts to cause
all (i) Units and Common Shares issuable upon exercise of the Purchase Options,
(iii) Warrants issuable upon exercise of the Purchase Options and (iv) Common
Shares issuable upon exercise of the Warrants included in the Units issuable
upon exercise of the Purchase Option to be listed (subject to official notice
of issuance) on all securities exchanges (or, if applicable on the Nasdaq
Global Market, Capital Market, OTC Bulletin Board or any successor trading
market) on which the Units, the Common Shares or the Public Warrants issued to
the public in connection herewith may then be listed and/or quoted.

8.             CERTAIN NOTICE
REQUIREMENTS.

8.1           HOLDER’S RIGHT TO RECEIVE NOTICE.  Nothing herein shall be construed as conferring
upon the Holders the right to vote or consent as a shareholder for the election
of directors or any other matter, or as having any rights whatsoever as a
shareholder of the Company.  If, however,
at any time prior to the expiration of the Purchase Options and their exercise,
any of the events described in Section 8.2 shall occur, then, in one or more of
said events, the Company shall give written notice of such event at least
fifteen days prior to the date fixed as a record date or the date of closing
the transfer books for the determination of the shareholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale.  Such notice shall specify
such record date or the date of the closing of the transfer books, as the case
may be.  Notwithstanding the foregoing,
the Company shall deliver to each Holder a copy of each notice given to the
other shareholders of the Company at the same time and in the same manner that
such notice is given to the shareholders.

8.2           EVENTS REQUIRING NOTICE. 
The Company shall be required to give the notice described in this
Section 8 upon one or more of the following events: (i) if the Company shall
take a record of the holders of its Common Shares for the purpose of entitling
them to receive a dividend or distribution payable otherwise than in cash, or a
cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on
the books of the Company, or (ii) the Company shall offer to all the holders of
its Common Shares any additional shares of share capital of the Company or
securities convertible into or exchangeable for shares of share capital of the
Company, or any option, right or warrant to subscribe therefor, or (iii) a
dissolution, liquidation or winding up of the Company (other than in connection
with a consolidation or merger) or a sale of all or substantially all of its
property, assets and business shall be proposed.

8.3           NOTICE OF CHANGE IN EXERCISE PRICE.  The Company shall, promptly after an event
requiring a change in the Exercise Price pursuant to Section 6 hereof, send
notice to the Holders of such event and change (“PRICE NOTICE”).  The Price Notice shall describe the event
causing the change and the method of calculating same and shall be certified as
being true and accurate by the Company’s President and Chief Financial Officer.

8.4           TRANSMITTAL OF NOTICES. 
All notices, requests, consents and other communications under this
Purchase Option shall be in writing and shall be deemed to have been duly 

 12
 

made when hand delivered, or mailed by express mail or private courier
service: (i) if to the registered Holder of the Purchase Option, to the address
of such Holder as shown on the books of the Company, or (ii) if to the Company,
to the following address or to such other address as the Company may designate
by notice to the Holders:

Arcade Acquisition Corp.

c/o Arcade Partners, LLC

62 LaSalle Road, Suite 304

West Hartford, CT 06107

Attn:  John Chapman, Chief Financial
Officer

Facsimile:  (860) 236-6325

9.             MISCELLANEOUS.

9.1           AMENDMENTS.  The
Company and Morgan Joseph may from time to time supplement or amend this
Purchase Option without the approval of any of the Holders in order to cure any
ambiguity, to correct or supplement any provision contained herein that may be
defective or inconsistent with any other provisions herein, or to make any
other provisions in regard to matters or questions arising hereunder that the
Company and Morgan Joseph may deem necessary or desirable and that the Company
and Morgan Joseph deem shall not adversely affect the interest of the
Holders.  All other modifications or
amendments shall require the written consent of and be signed by the party
against whom enforcement of the modification or amendment is sought.

9.2           HEADINGS.  The
headings contained herein are for the sole purpose of convenience of reference,
and shall not in any way limit or affect the meaning or interpretation of any
of the terms or provisions of this Purchase Option.

9.3           ENTIRE AGREEMENT. 
This Purchase Option (together with the other agreements and documents
being delivered pursuant to or in connection with this Purchase Option)
constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof, and supersedes all prior agreements and understandings
of the parties, oral and written, with respect to the subject matter hereof.

9.4           BINDING EFFECT. 
This Purchase Option shall inure solely to the benefit of and shall be
binding upon, the Holder and the Company and their permitted assignees,
respective successors, legal representative and assigns, and no other person
shall have or be construed to have any legal or equitable right, remedy or
claim under or in respect of or by virtue of this Purchase Option or any
provisions herein contained.

9.5           GOVERNING LAW; SUBMISSION TO JURISDICTION.  This Purchase Option shall be governed by and
construed and enforced in accordance with the laws of the State of New York,
without giving effect to conflict of laws. 
The Company hereby agrees that any action, proceeding or claim against
it arising out of, or relating in any way to this Purchase Option shall be
brought and enforced in the courts of the State of New York or of the United
States of America for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive.  The Company hereby waives any objection to
such exclusive jurisdiction and that such courts represent an inconvenient
forum.  Any process or summons to be
served upon the Company may be served by transmitting a copy thereof by
registered or certified mail, return receipt requested, postage prepaid,
addressed to it at the address set forth in Section 8 hereof.  Such mailing shall be deemed personal service
and shall be legal and binding upon the Company in any action, proceeding or
claim.  The Company and the Holder agree
that the prevailing party(ies) in any such action shall be entitled to recover
from the 

 13
 

other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the
preparation therefor.

9.6           WAIVER, ETC.  The
failure of the Company or the Holder to at any time enforce any of the
provisions of this Purchase Option shall not be deemed or construed to be a
waiver of any such provision, nor to in any way affect the validity of this
Purchase Option or any provision hereof or the right of the Company or any
Holder to thereafter enforce each and every provision of this Purchase
Option.  No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Purchase
Option shall be effective unless set forth in a written instrument executed by
the party or parties against whom or which enforcement of such waiver is
sought; and no waiver of any such breach, non-compliance or non- fulfillment
shall be construed or deemed to be a waiver of any other or subsequent breach
or non-compliance.

9.7           EXECUTION IN COUNTERPARTS. 
This Purchase Option may be executed in one or more counterparts, and by
the different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one
and the same agreement, and shall become effective when one or more
counterparts has been signed by each of the parties hereto and delivered to
each of the other parties hereto.

9.8           EXCHANGE AGREEMENT. 
As a condition of the Holder’s receipt and acceptance of this Purchase
Option, Holder agrees that, at any time prior to the complete exercise of this
Purchase Option by Holder, if the Company and Morgan Joseph enter into an
agreement (“EXCHANGE AGREEMENT”) pursuant to which they agree that all
outstanding Purchase Options will be exchanged for securities or cash or a
combination of both, then Holder shall agree to such exchange and become a
party to the Exchange Agreement.

9.9           UNDERLYING WARRANTS. 
At any time after exercise by the Holder of this Purchase Option, the
Holder may exchange its Warrants (with an initial exercise price of $7.00) for
Public Warrants (with an initial exercise price of $6.00) upon payment to the
Company of the difference between the exercise price of its Warrant and the
exercise price of the Public Warrants. 
Any such Public Warrants and the Common Stock underlying such Public
Warrants shall constitute Registrable Securities.

 14
 

IN WITNESS WHEREOF, the Company has
caused this Purchase Option to be signed by its duly authorized officer as of
the        day of
                      
2007.

	
  

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 15
 

Form to be used to exercise Purchase Option:

Arcade
Acquisition Corp.

c/o Arcade Partners, LLC

62 LaSalle Road, Suite 304

West Hartford, CT 06107

Attn:  John Chapman, Chief Financial
Officer

Facsimile:  (860) 236-6325

Date:                          ,
20   

The undersigned hereby elects
irrevocably to exercise all or a portion of the within Purchase Option and to
purchase ____ Units of Arcade Acquisition Corp. and hereby makes payment of
$                 
(at the rate of $         per Unit) in
payment of the Exercise Price pursuant thereto. 
Please issue the Common Shares and Warrants as to which this Purchase
Option is exercised in accordance with the instructions given below.

or

The undersigned hereby elects
irrevocably to convert its right to purchase
                    
Units purchasable under the within Purchase Option by surrender of the
unexercised portion of the attached Purchase Option (with a “Value” of
$                 
based on a “Market Price” of
$                    ).  Please issue the securities comprising the
Units as to which this Purchase Option is exercised in accordance with the
instructions given below.

NOTICE:
The signature to this assignment must correspond with the name as written upon
the face of the purchase option in every particular, without alteration or
enlargement or any change whatever.

	
  Signature(s) Guaranteed:

  	
   

  

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM,
PURSUANT TO S.E.C.  RULE 17Ad-15).

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

	
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print in Block
  Letters)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 16
 

Form to be used to assign Purchase Option:

ASSIGNMENT

(To be executed by the registered
Holder to effect a transfer of the within Purchase Option):

FOR VALUE RECEIVED,
                                                                            
does hereby sell, assign and transfer unto
                                                                                                         
the right to purchase
                       
Units of Arcade Acquisition Corp. (“COMPANY”) evidenced by the within Purchase
Option and does hereby authorize the Company to transfer such right on the books
of the Company.

Dated:                         ,
20     

	
  Signature

  	
   

  

 

NOTICE:
The signature to this assignment must correspond with the name as written upon
the face of the purchase option in every particular, without alteration or
enlargement or any change whatever.

	
  Signature(s) Guaranteed:

  	
   

  

 

THE
SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C.  RULE 17Ad-15).

 

 17Exhibit 10.2

INVESTMENT MANAGEMENT TRUST AGREEMENT

This Agreement is made as of              ,
2007 by and between Arcade Acquisition Corp. (the “Company”) and Continental
Stock Transfer & Trust Company (“Trustee”).

WHEREAS, the Company’s Registration Statement on Form
S-1, No. 333-140814 (as amended from time to time) (“Registration Statement”),
for its initial public offering of securities (“IPO”) has been declared
effective as of the date hereof by the Securities and Exchange Commission (“Effective
Date”); and

WHEREAS, Morgan Joseph & Co. Inc. is acting as the
representative (the “Representative”) of the underwriters in the IPO; and

WHEREAS, the Company has agreed to issue securities in
a private placement that will occur immediately prior to the IPO (the “Placement”);
and

WHEREAS, as described in the Company’s Registration
Statement, and in accordance with the Company’s Certificate of Incorporation, $57,050,000
of the proceeds of the IPO, net of all discounts and commissions including the
Deferred Compensation (as defined below) and expenses of the IPO ($63,420,000
if the underwriters’ over-allotment option is exercised in full), will be
delivered to the Trustee to be deposited and held in a trust account (the “Trust
Account”) for the benefit of the Company and the holder’s of the Company’s
Common Stock, par value $.0001 per share, issued in the IPO as hereinafter
provided, and in the event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado revised statutes (the “CRS”). A copy of
Section 11-51-302(6) of the CRS is attached hereto and made a part hereof; and

WHEREAS, pursuant to the Warrant Purchase Agreement,
dated as of                  ,
2007, among the Company and certain purchasers, the entire proceeds of the
private placement of warrants with the Company’s purchasers, equal to
$2,000,000, will be delivered to the Trustee to be deposited in the Trust
Account; and

WHEREAS, pursuant to the Underwriting Agreement, an
additional $2,100,000, (or the amount specified in the notice delivered
pursuant to Section 2(d) hereof), representing a portion of the underwriters’
discount (the “Deferred Compensation”) which the Representative, on behalf of
the underwriters, has agreed to deposit into the Trust Account; and

WHEREAS, the amount to be delivered to the Trustee,
including the proceeds of the IPO and the private placement and the Deferred
Compensation, will be referred to herein as the “Property,” the stockholders
for whose benefit the Trustee shall hold the Property will be referred to as
the “Public Stockholders;” and the Public Stockholders, the Representative and
the Company will be referred to together as the “Beneficiaries;” and the
Company and the Trustee desire to enter into this Agreement to set forth the terms
and conditions pursuant to which the Trustee shall hold the Property; and

 1
 

WHEREAS, the Company and the Trustee desire to enter
into this Agreement to set forth the terms and conditions pursuant to which the
Trustee shall hold the Property;

IT IS AGREED:

1.             Agreements and Covenants of Trustee. The
Trustee hereby agrees and covenants to:

(a)           Hold the Property in trust for the Beneficiaries in
accordance with the terms of this Agreement, including without limitation, the
terms of Section 11-51-302(6) of the CRS, in segregated trust accounts
established by the Trustee at JPMorgan Chase N.A. and at a brokerage
institution selected by the Trustee;

(b)           Manage, supervise and administer the Trust Account
subject to the terms and conditions set forth herein;

(c)           In a timely manner, upon the instruction of the
Company, to invest and reinvest the Property in any “Government Security.” As
used herein, Government Security means any Treasury Bill issued by the United
States, having a maturity of 180 days or less or any open ended investment
company selected by the Company and registered under the Investment Company Act
of 1940 that holds itself out as a money market fund meeting the conditions of
paragraphs (c)(2), (c)(3) and (c)(4) under Rule 2a-7 promulgated under the
Investment Company Act of 1940 as determined by the Company;

(d)           Collect and receive, when due, all principal and
income arising from the Property, which shall become part of the “Property,” as
such term is used herein;

(e)           Notify the Company and the Representative of all
communications received by it with respect to any Property requiring action by
the Company;

(f)            Supply any necessary information or documents as
may be requested by the Company in connection with the Company’s preparation of
its tax returns;

(g)           Participate in any plan or proceeding for
protecting or enforcing any right or interest arising from the Property if, as
and when instructed by the Company and/or the Representative to do so;

(h)           Render to the Company and to the Representative,
and to such other person as the Company may instruct, monthly written
statements of the activities of and amounts in the Trust Account reflecting all
receipts and disbursements of the Trust Account; and

(i)            If there is any income or other tax obligation
relating to the income from the Property in the Trust Account as determined by
the Company, then, from time to time, at the written instruction of the
Company, the Trustee shall promptly, to the extent there is not sufficient cash
in the Trust Account to pay such tax obligation, liquidate such assets held in
the Trust Account as shall be designated by the Company in writing, and
disburse to the Company by wire transfer, out of the Property in the Trust
Account, the amount indicated by the Company as owing in respect of such income
tax obligation; and

 2
 

(j)            Commence liquidation of the Trust Account promptly
after receipt of and only in accordance with the terms of a letter (“Termination
Letter”), in a form substantially similar to that attached hereto as either
Exhibit A or Exhibit B, signed on behalf of the Company by its (i) Chief
Executive Officer or Chairman of the Board and (ii) Chief Financial Officer and
complete the liquidation of the Trust Account and disburse the Property in the
Trust Account (which disbursement shall include, in the event of a Business
Combination, payment of the Deferred Compensation to the Representative) only
as directed in the Termination Letter and the other documents referred to
therein; provided, however, that in the event a Termination Letter has not been
received by the 24-month anniversary of the effective date of the Registration
Statement (the “Last Date”), the Trust Account shall be liquidated in
accordance with the procedures set forth in the Termination Letter attached
hereto as Exhibit B and paid to the stockholders of record on the Last
Date.  The provisions of this Section
1(i) may not be modified, amended or deleted under any circumstances.  The Trustee understands and agrees that,
except as provided in paragraphs 1(i), 1(k) and 6(a) hereof, disbursements from
the Trust Account shall be made only pursuant to a duly executed Termination
Letter, together with the other documents referenced herein; and

(k)           Upon one or more written requests from the Company,
which may be given not more than once in any calendar month period, the Trustee
shall distribute to the Company interest earned on the Trust Account, net of
taxes payable, up to a maximum of $2,000,000. The distributions requested by
the Company may be for any amount, provided that (i) in the aggregate, all
distributions under this Section 1(k) may not exceed $2,000,000 (subject to the
limitation imposed by Section (1)(l) below and (ii) that such distributions may
only be made if and to the extent that interest has been earned and collected,
net of taxes, on the amount initially deposited into the Trust Account; and

(l)            Permit or effect no distribution from the Trust
Account except in accordance with Sections 1(i), 1(j) and 1(k); and

(m)          It is acknowledged and agreed that the
Trustee’s only responsibility under Sections 1(i), 1(j) and 1(k) is to follow
the instructions of the Company.

2.             Agreements and Covenants of the Company.
The Company hereby agrees and covenants to:

(a)           Provide all instructions to the Trustee hereunder
in writing, signed by the Company’s Chief Executive Officer, President,
Chairman of the Board or Chief Financial Officer. In addition, except with
respect to its duties under Section 1(i) above, the Trustee shall be entitled
to rely on, and shall be protected in relying on, any verbal or telephonic
advice or instruction which it in good faith believes to be given by any one of
the persons authorized above to give written instructions, provided that the
Company shall promptly confirm such instructions in writing;

(b)           Subject to the provisions of Section 4 hereof, hold
the Trustee harmless and indemnify the Trustee from and against any and all
expenses, including reasonable counsel fees and disbursements, or loss suffered
by the Trustee in connection with any action, suit or other proceeding brought
against the Trustee involving any claim, or in connection with any claim or
demand which in any way arises out of or relates to this Agreement, the
services of the Trustee hereunder, or the Property or any income earned from
investment of the Property, except for

 3
 

expenses and
losses resulting from the Trustee’s gross negligence or willful misconduct.
Promptly after the receipt by the Trustee of notice of demand or claim or the
commencement of any action, suit or proceeding, pursuant to which the Trustee
intends to seek indemnification under this paragraph, it shall notify the
Company in writing of such claim (hereinafter referred to as the “Indemnified
Claim”). The Trustee shall have the right to conduct and manage the defense
against such Indemnified Claim, provided, that the Trustee shall obtain the
consent of the Company with respect to the selection of counsel, which consent
shall not be unreasonably withheld.  The
Company may participate in such action with its own counsel;

(c)           Pay the Trustee an initial acceptance fee, an
annual fee and a transaction processing fee for each disbursement made pursuant
to Sections 1(i) and 1(k) as set forth on Schedule A hereto, which fees shall
be subject to modification by the parties from time to time. It is expressly
understood that the Property shall not be used to pay such fees and further
agreed that said transaction processing fees shall be deducted by the Trustee
from the disbursements made to the Company pursuant to Section 1(k). The
Company shall pay the Trustee the initial acceptance fee and first year’s fee
at the consummation of the IPO and shall thereafter pay the annual fee on the
anniversary of the Effective Date. The Trustee shall refund to the Company the
fee (on a pro rata basis) with respect to any period after the liquidation of
the Trust Account. The Company shall not be responsible for any other fees or
charges of the Trustee except as set forth in this Section 2(c) and as may be
provided in Section 2(b) hereof (it being expressly understood that the
Property shall not be used to make any payments to the Trustee under such
Section);

(d)           In all cases, the Company shall provide the
Representative with a copy of any Termination Letters and/or any other
correspondence that it issues to the Trustee with respect to any proposed
withdrawal from the Trust Account.

(e)           Provide to the Trustee any letter of intent,
agreement in principle or definitive agreement that is executed in connection
with a Business Combination, together with a certified copy of a unanimous
resolution of the Board of Directors of the Company affirming that such letter
of intent, agreement in principle or definitive agreement is in effect; and

(f)            In connection with any vote of the Company’s
stockholders regarding a Business Combination, provide to the Trustee an
affidavit or certificate of a firm regularly engaged in the business of
soliciting proxies and tabulating stockholder votes verifying the vote of the
Company’s stockholders regarding such Business Combination.

3.             Limitations of Liability. The Trustee
shall have no responsibility or liability to:

(a)           Take any action with respect to the Property, other
than as directed in Section 1 hereof and the Trustee shall have no liability to
any party except for liability arising out of its own gross negligence or
willful misconduct;

(b)           Institute any proceeding for the collection of any
principal and income arising from, or institute, appear in or defend any
proceeding of any kind with respect to, any of the Property unless and until it
shall have received written instructions from the Company given as

 4
 

provided
herein to do so and the Company shall have advanced or guaranteed to it funds
sufficient to pay any expenses incident thereto;

(c)           Change the investment of any Property, other than
in compliance with Section 1(c);

(d)           Refund any depreciation in principal of any
Property;

(e)           Assume that the authority of any person designated
by the Company or the Representative to give instructions hereunder shall not
be continuing unless provided otherwise in such designation, or unless the
Company or the Representative shall have delivered a written revocation of such
authority to the Trustee;

(f)            The other parties hereto or to anyone else for any
action taken or omitted by it, or any action suffered by it to be taken or
omitted, in good faith and in the exercise of its own best judgment, except for
its gross negligence or willful misconduct. The Trustee may rely conclusively
and shall be protected in acting upon any order, notice, demand, certificate,
opinion or advice of counsel (including counsel chosen by the Trustee),
statement, instrument, report or other paper or document (not only as to its
due execution and the validity and effectiveness of its provisions, but also as
to the truth and acceptability of any information therein contained) which is
believed by the Trustee, in good faith, to be genuine and to be signed or
presented by the proper person or persons. The Trustee shall not be bound by
any notice or demand, or any waiver, modification, termination or rescission of
this Agreement or any of the terms hereof, unless evidenced by a written
instrument delivered to the Trustee signed by the proper party or parties and,
if the duties or rights of the Trustee are affected, unless it shall give its
prior written consent thereto;

(g)           Verify the correctness of the information set forth
in the Registration Statement or to confirm or assure that any acquisition made
by the Company or any other action taken by it is as contemplated by the
Registration Statement, unless an officer of the Trustee has actual knowledge
thereof, written notice of such event is sent to the Trustee or as otherwise
required under Section 1(j) hereof;

(h)           Pay any taxes on behalf of the Trust Account (it
being expressly understood that, as set forth in Section 1(i), if there is any
income tax obligation relating to the income of the Property in the Trust
Account, then, at the written instruction of the Company, the Trustee shall
disburse to the Company the amount indicated by the Company as owing in respect
of such income tax obligation); and

(i)            Verify calculations, qualify or otherwise approve
Company requests for distributions pursuant to Section 1(i) or 1(k).

4.             No Right of Set-Off. The Trustee waives any right of set-off or any right, title, interest or
claim of any kind that the Trustee may
have against the Property held in the Trust Account. In the event that the
Trustee has a claim against the Company under this Agreement, including,
without limitation, under Section 3(b), the Trustee will pursue such claim
solely against the Company and not against the Property held in the Trust
Account.

 5
 

5.             Termination. This Agreement shall terminate as
follows:

(a)           If the Trustee gives written notice to the Company that it desires to
resign under this Agreement, the Company shall use its reasonable efforts to
locate a successor trustee. At such time that the Company notifies the Trustee
that a successor trustee has been appointed by the Company and has agreed to
become subject to the terms of this Agreement, the Trustee shall transfer the management
of the Trust Account to the successor trustee, including but not limited to the
transfer of copies of the reports and statements relating to the Trust Account,
whereupon this Agreement shall terminate; provided, however, that, in the event
that the Company does not locate a successor trustee within ninety days of
receipt of the resignation notice from the Trustee, the Trustee may submit an
application to have the Property deposited with the United States District
Court for the Southern District of New York and upon such deposit, the Trustee
shall be immune from any liability whatsoever that arises due to any actions or
omissions to act by any party after such deposit; or

(b)           At such time that the Trustee has completed the liquidation of the Trust Account
in accordance with the provisions of Section 1(j) hereof, and distributed the
Property in accordance with the provisions of the Termination Letter, this
Agreement shall terminate except with respect to Section 2(b).

6.             Miscellaneous.

(a)           The Company and the Trustee each acknowledge that the Trustee will follow
the security procedures set forth below with respect to funds transferred from
the Trust Account. Upon receipt of written instructions, the Trustee will
confirm such instructions with an Authorized Individual at an Authorized
Telephone Number listed on the attached Exhibit C. The Company and the
Trustee will each restrict access to confidential information relating to such
security procedures to authorized persons. Each party must notify the other
party immediately if it has reason to believe unauthorized persons may have
obtained access to such information, or of any change in its authorized
personnel. In executing funds transfers, the Trustee will rely upon account
numbers or other identifying numbers of a beneficiary, beneficiary’s bank or
intermediary bank, rather than names. The Trustee shall not be liable for any
loss, liability or expense resulting from any error in an account number or
other identifying number, provided it has accurately transmitted the numbers
provided.

(b)           This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York, without giving effect to
conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. It may be executed in several counterparts, each
one of which shall constitute an original, and together shall constitute but
one instrument.

(c)           This Agreement contains the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof. This Agreement or any
provision hereof may only be changed, amended or modified by a writing signed
by each of the parties hereto; provided, however, that no such change,
amendment or modification (other than to correct a typographical or similar
technical error) may be made to Sections 1(i), 1(j), 1(k) and 1(l) hereof
without the consent of 95% of the Public Stockholders, it being the specific
intention of the parties hereto that each Public Stockholder is and shall be a
third-party beneficiary of this

 6
 

Section 6(c) with the
same right and power to enforce this Section 6(c) as either of the parties hereto. For purposes of this Section 6(c), the “consent of 95% of the Public Stockholders”
shall mean receipt by the Trustee of a certificate from an entity certifying
that (i) such entity regularly engages in the business of serving as inspector
of elections for companies whose securities are publicly traded, and (ii)
either (a) 95% of the Public Stockholders of record as of a record date
established in accordance with Section 213(a) of the Delaware General
Corporation Law, as amended (the “DGCL”), have voted in favor of such amendment
or modification or (b) 95% of the Public Stockholders of record as of a record
date established in accordance with Section 213(b) of the DGCL has delivered to
such entity a signed writing approving such amendment or modification.

(d)           As to any claim, cross-claim or counterclaim in any way relating to this
Agreement, each party waives the right to trial by jury.

(e)           The parties hereto consent to the jurisdiction and venue of any state or
federal court located in the City of New York, Borough of Manhattan, for
purposes of resolving any disputes hereunder.

(f)            Any notice, consent or request to be given in connection with any of the
terms or provisions of this Agreement shall be in writing and shall be sent by
express mail or similar private courier service, by certified mail (return
receipt requested), by hand delivery or by facsimile transmission:

if to
the Trustee, to:

Continental
Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steve Nelson

Fax No.: (212) 509-4000

if to
the Company, to:

Arcade Acquisition Corp.

c/o Arcade Partners, LLC

62 La Salle Road, Suite 304

West Hartford, CT  06107

Phone: 860-236-6320

Attn: John Chapman, Chief Financial Officer

Fax: (860) 236-6325

in
either case with a copy to:

Morgan
Joseph & Co. Inc.

600 Fifth Avenue, 19th Floor

New York, NY 10020

Attn:  Tina Pappas

Fax No.: (212) 218-3719

 7
 

and

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attn:  Christopher Auguste, Esq.

Fax No.: (212) 715- 8000

and

Loeb
& Loeb LLP

345 Park Avenue

New York, New York 10154

Attn:  Fran Stoller, Esq.

Fax No.: (212) 407-4990

(g)           This Agreement may not be assigned by the Trustee without the prior written
consent of the Company.

(h)           Each of the Trustee and the Company hereby represents that it has the full
right and power and has been duly authorized to enter into this Agreement and
to perform its respective obligations as contemplated hereunder. The Trustee
acknowledges and agrees that it shall not make any claims or proceed against
the Trust Account, including by way of set-off, and shall not be entitled to any
funds in the Trust Account under any circumstance.

(i)            The Trustee
hereby consents to the inclusion of Continental Stock Transfer & Trust
Company in the Registration Statement and other materials relating to the IPO.

(j)            The
underwriters shall be third party beneficiaries of this Agreement and this
Agreement may not be modified or changed without the prior written consent of
the Representative.

[Signature page follows]

 8
 

IN
WITNESS WHEREOF, the parties have duly executed this Investment Management
Trust Agreement as of the date first written above.

	
  

  	
  CONTINENTAL STOCK TRANSFER &
  TRUST COMPANY, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Jonathan Furer

  
	
   

  	
  Title: Chief Executive Officer

  

 

 9

SCHEDULE
A

Schedule of fees
pursuant to Section 2(c) of Investment Management Trust Agreement

between Arcade Acquisition Corp. and Continental Stock Transfer & Trust
Company

	
  Fee Item

  	
   

  	
  Time and method of payment

  	
   

  	
  Amount

  
	
  Initial acceptance fee

  	
   

  	
  Initial closing of IPO by wire
  transfer

  	
   

  	
  $

  	
  1,000

  
	
  Annual fee

  	
   

  	
  First year, initial closing of IPO
  by wire transfer; thereafter on the anniversary of the effective date of the
  IPO by wire transfer or check

  	
   

  	
  $

  	
  3,000

  
	
  Transaction processing fee for 

  disbursements to Company under Sections 1(i) and 1(k)

  	
   

  	
  Deduction by Trustee from
  disbursement made to Company under Section 1(k)

  	
   

  	
  $

  	
  250

  

Agreed:

Dated: 
                   ,
2007

	
  ARCADE ACQUISITION CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Jonathan Furer

  
	
  Title: Chief Executive Officer

  
	
   

  
	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title: Authorized Officer

  

 

EXHIBIT A

[Letterhead of Company]

[Insert
date]

Continental
Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:

Re:          Trust Account No. [               ] Termination Letter

Gentlemen:

Pursuant to Section 1(i) of the
Investment Management Trust Agreement between Arcade Acquisition Corp. (“Company”)
and Continental Stock Transfer & Trust Company (“Trustee”), dated as of
              ,
2007 (“Trust Agreement”), this is to advise you that the Company has entered
into an agreement (“Business Agreement”) with
                      
(“Target Business”) to consummate a business combination with Target Business (“Business
Combination”) on or about [insert date]. The Company shall notify you at least
48 hours in advance of the actual date of the consummation of the Business
Combination (“Consummation Date”) and shall provide you with a certificate or
affidavit in accordance with Section 2(f) of the Trust Agreement. Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
them in the Trust Agreement.

In accordance with the terms of the
Trust Agreement, we hereby authorize you to commence liquidation of the Trust
Account to the effect that, on the Consummation Date, all of funds held in the
Trust Account will be immediately available for transfer to the account or
accounts that the Company shall direct on the Consummation Date.

On the Consummation Date (i) counsel
for the Company shall deliver to you written notification that (a) the Business
Combination has been consummated and [(b) the provisions of Section
11-51-302(6) and Rule 51-3.4 of the CRS have been met,] and (ii) the Company
and Morgan Joseph & Co. Inc., as representative of the underwriters of the
Company’s IPO (the “Representative”) shall deliver to you joint written
instructions with respect to the transfer of the funds held in the Trust
Account (“Instructions”). You are hereby directed and authorized to transfer
the funds held in the Trust Account immediately upon your receipt of the
counsel’s letter, the Officer’s Certificate and the Instructions, in accordance
with the terms of the Instructions. In the event that certain deposits held in
the Trust Account may not be liquidated by the Consummation Date without
penalty, you will notify the Company the same. Upon the distribution of all the
funds in the Trust Account pursuant to the terms hereof, the Trust Agreement
shall be terminated.

In the event that the Business
Combination is not consummated on the Consummation Date described in the notice
thereof and we have not notified you on or before the original Consummation
Date of a new Consummation Date, then, upon the Trustee’s receipt of written
instructions from the Company, the funds held in the Trust Account shall be
reinvested as provided in the Trust Agreement on the business day immediately
following the Consummation Date as set forth in the notice.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

EXHIBIT
B

[Letterhead of Arcade Acquisition
Corp.]

[Insert
date]

Continental Stock Transfer &
Trust Company

17 Battery Place, 8th Floor

New York, New York 10004

Attn:  Steven G. Nelson

Re:          Trust Account No. [ ]
Termination Letter

Gentlemen:

Pursuant to Section 1(j) of the
Investment Management Trust Agreement between Arcade Acquisition Corp. (“Company”)
and Continental Stock Transfer & Trust Company (“Trustee”), dated as of
                 ,
2007 (“Trust Agreement”), this is to advise you that the Company has
been unable to effect a Business Combination with a Target Company within the
time frame specified in the Company’s Certificate of Incorporation, as
described in the Company’s prospectus relating to its IPO.

In accordance with the terms of the
Trust Agreement, we hereby (a) certify to you that, if applicable, the
provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute have
been met and (b) authorize you, to commence liquidation of the Trust Account
as promptly as practicable to the stockholders of record on the Last Date (as
defined in the Trust Agreement). The Company
will establish a record date for the purposes of determining the stockholders
entitled to receive their share of liquidation proceeds. The record date shall
be within ten (10) days of the date of this letter or as soon thereafter as is
reasonably practicable and legally permissible.  You will notify the Company and [Name
of the Bank appointed by the Company to be paying agent] (the “Designated
Paying Agent”) in writing as to when all of the funds in the Trust Account will
be available for immediate transfer (the “Transfer Date”) in accordance with
the plan of dissolution and liquidation approved by the stockholders of the
Company.  The Designated Paying Agent
shall thereafter notify you as to the account or accounts of the Designated
Paying Agent that the funds in the Trust Account should be transferred to on
the Transfer Date so that the Designated Paying Agent may commence distribution
of such funds in accordance with the Company’s instructions.  You shall have no obligation to oversee the
Designated Paying Agent’s distribution of the funds.   Upon the payment to the Designated Paying
Agent of all the funds in the Trust Account, the Trust Agreement shall
terminate in accordance with the terms thereof and the Trust Account shall be
closed.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  

  	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

Agreed:

Dated: 
                      ,
200  

	
  ARCADE ACQUISITION CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title: Authorized Officer

  

 

 

EXHIBIT C

	
  AUTHORIZED INDIVIDUAL(S)

  FOR TELEPHONE CALL BACK

  	
   

  	
   

  	
   

  	
  AUTHORIZED

  TELEPHONE NUMBER(S)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Arcade Acquisition Corp.

  	
   

  	
  ( )

  
	
  c/o Arcade Partners, LLC

  	
   

  	
   

  
	
  62 LaSalle Road, Suite 304

  	
   

  	
   

  
	
  West Hartford, Connecticut 06107

  	
   

  	
   

  
	
  Attn: Jonathan Furer, Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Continental Stock Transfer & Trust Company 

  17 Battery Place 

  New York, New York 10004 

  Attn: Steve Nelson

  	
   

  	
  (212)

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