Document:

Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is
entered into as of the [       ] day of
[            ]
2008, by and among K Road Acquisition Corporation, a Delaware corporation (the “Company”), and the undersigned listed under
Investor on the signature page hereto (the “Investor”).

 

WHEREAS, the Investor
currently holds all of the issued and outstanding Common Stock of the Company;
and

 

WHEREAS, the Investor currently hold an aggregate of 7,750,000 warrants
(“Warrants”) exercisable into an
aggregate of 7,750,000 shares of Common Stock (“Warrant
Shares”); each of the Warrants and Warrant Shares shall be referred
to herein as the “Warrant Securities”;

 

WHEREAS, the Investor and
the Company desire to enter into this Agreement to provide the Investor with
certain rights relating to the registration of (i) shares of Common Stock
and the (ii) Warrant Securities held by the Investor.

 

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

 

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

 

“Agreement” means this Agreement, as amended, restated,
supplemented, or otherwise modified from time to time.

 

“Business
Combination” means the merger, capital stock exchange, asset
acquisition, stock purchase, reorganization, exchangeable share transaction, joint
venture or other similar business combination with one or more operating
businesses or assets, having a collective fair market value of at least 80% of
the assets held in the Company’s trust account (net of taxes and excluding
deferred underwriting discounts) at the time of signing a definitive agreement
in connection with such business combination.

 

“Commission” means the Securities and Exchange Commission, or
any other federal agency then administering the Securities Act or the Exchange
Act.

 

“Common Stock” means the common stock, par value $0.0001 per
share, of the Company.

 

“Company” is defined in the preamble to this Agreement.

 

“Demand Registration” is defined in Section 2.1.1.

 

“Demanding Holder” is defined in Section 2.1.1.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated
thereunder, all as the same shall be in effect at the time.

 

“Form S-3” is defined in Section 2.3.

 

“Indemnified Party” is defined in Section 4.3.

 

 

“Indemnifying Party” is defined in Section 4.3.

 

“Investor” is defined in the preamble to this Agreement.

 

“Investor Indemnified Party” is defined in Section 4.1.

 

“Majority
In Interest” of
Registrable Securities means a majority of the shares of Common Stock and
Warrants or underlying Warrant Shares included in the Registrable Securities.

 

“Maximum Number of Shares” is defined in Section 2.1.4.

 

“Notices” is defined in Section 6.3.

 

“Piggyback Registration” is defined in Section 2.2.1.

 

“Register,” “registered” and “registration” mean a registration effected by preparing and
filing a registration statement or similar document in compliance with the
requirements of the Securities Act, and the applicable rules and
regulations promulgated thereunder, and such registration statement becoming
effective.

 

“Registrable Securities” means the 8,625,000 shares of Common
Stock (of which up to 1,125,000 shares are subject to forfeiture as described
in the Company’s registration statement relating to its initial public
offering) and 7,750,000 Warrant Shares issuable upon exercise of the Warrants
owned or held by Investor prior to consummation of the Company’s initial public
offering of securities, in each case that are eligible for registration under
the Securities Act and the terms of the Securities Escrow Agreement. 
Registrable Securities include any warrants, shares of capital stock or other
securities of the Company issued as a dividend or other distribution with
respect to or in exchange for or in replacement of such Registrable
Securities.  As to any particular Registrable Securities, such securities
shall cease to be Registrable Securities when: (a) a Registration
Statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been sold,
transferred, disposed of or exchanged in accordance with such Registration
Statement; (b) such securities shall have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent public distribution of them
shall not require registration under the Securities Act; (c) such
securities shall have ceased to be outstanding; or (d) the Securities and
Exchange Commission makes a definitive determination to the Company that the
Registrable Securities are saleable under Rule 144.

 

“Registration Statement” means a registration statement filed
by the Company with the Commission in compliance with the Securities Act and
the rules and regulations promulgated thereunder for a public offering and
sale of Common Stock (other than a registration statement on Form S-4 or Form S-8,
or any successor forms, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity).

 

“Release Date I” means the date on which shares of Common Stock
are released from escrow pursuant to Section 3 of the Securities Escrow
Agreement.

 

“Release Date
II” means the date on which the Insider Warrants are released from
escrow pursuant to Section 3 of the Securities Escrow Agreement.

 

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“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

“Securities
Escrow Agreement” mean that certain securities escrow agreement,
dated as of the date hereof, by and among, the Company, the parties named
therein and Continental Stock Transfer & Trust Company.

 

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

 

“Warrants” mean the 7,750,000 Warrants to purchase 7,750,000
shares of Common Stock issued by the Company to the Investor in a private
placement pursuant to Subscription Agreement dated as of
        , 2008 between the Company and
the Investor.

 

“Warrant
Agreement” means that certain warrant agreement, dated as of the ate
hereof, by and among, the Company and Continental Stock Transfer &
Trust Company.

 

2.                                     REGISTRATION RIGHTS.

 

2.1                               Demand Registration.

 

2.1.1.
                            Request for Registration.  At any time and from time to time
beginning on or after Release Date I as it relates to the Common Stock and
Release Date II as it relates to the Warrant Shares, the holders of a Majority
In Interest of the shares of Common Stock and the Warrants or underlying
Warrant Shares may make a written demand for registration under the Securities
Act of all or part of their Registrable Securities (a “Demand Registration”).  Any demand for
a Demand Registration shall specify the number and type of Registrable
Securities proposed to be sold and the intended method(s) of distribution
thereof.  The Company will notify all holders of Registrable Securities of
the demand within ten (10) days from the receipt of the Demand
Registration and 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 Registrable Securities in such Demand
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 2.1.4 and the
provisos set forth in Section 3.1.1.  The Company shall not be
obligated to effect more than an aggregate of two (2) Demand Registrations
under this Section 2.1.1 in respect of Registrable Securities.

 

2.1.2.
                            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; provided, further, that
the Company shall not be obligated to file a second Registration Statement
until a Registration Statement that has been filed is counted as a Demand
Registration or is terminated.

 

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2.1.3.
                            Underwritten Offering.  If a Majority In Interest of the
Demanding Holders so elect and such holders so advise the Company as part of
their written demand for a Demand Registration, 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 of
Registrable Securities 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 a Majority In Interest of the
holders initiating the Demand Registration.

 

2.1.4.
                            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 Registrable Securities which the Demanding Holders desire to sell,
taken together with all other shares of Common Stock or other securities which
the Company desires to sell and the shares of Common Stock or other Securities,
if any, as to which registration has been requested pursuant to written
contractual piggyback registration rights held by other securityholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number
of securities that can be sold in such offering without adversely affecting the
proposed offering price, the timing, the distribution method, or the probability
of success of such offering (such maximum dollar amount or maximum number of
securities, as applicable, the “Maximum
Number of Shares”), then the Company shall include in such
registration:  (i) first, the Registrable Securities as to which
Demand Registration has been requested by the Demanding Holders (pro rata in accordance with the number of
shares of Registrable Securities which such Demanding Holder has requested be
included in such registration, regardless of the number of Registrable
Securities held by each Demanding Holder) 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
shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares; (iii) third,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i) and (ii), the shares of Common Stock or other securities
for the account of other persons that the Company is obligated to register
pursuant to written contractual arrangements with such persons and that can be
sold without exceeding the Maximum Number of Shares; and (iv) fourth, to
the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i), (ii), and (iii), the shares of Common Stock or other
securities that other securityholders desire to sell that can be sold without
exceeding the Maximum Number of Shares.

 

2.1.5.
                            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.  In such event, the Company need not
seek effectiveness of such Registration Statement for the benefit of other
Investors, unless otherwise required to do so. 
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 2.1.1, provided that the Majority In Interest of
the Demanding Holders electing to so withdraw from the offering pays all costs
and expenses incurred by the Company in connection with such withdrawn Demand
Registration.  If the Majority In
Interest of the Demanding Holders does not pay all costs and expenses incurred
by the Company in connection with such withdrawn Demand Registration, then it
shall count as a Demand Registration provided for in Section 2.1.1.

 

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2.1.6.                               Permitted Delays. The Company shall be entitled to postpone,
for up to sixty (60) days, the filing of any Registration Statement under this Section 2.1,
if (a) at any time prior to the filing of such Registration Statement the
Company’s Board of Directors determines, in its good faith business judgment,
that such registration and offering would materially and adversely affect any
financing, acquisition, corporate reorganization, or other material transaction
involving the Company, and (b) the Company delivers to the Demanding
Holders written notice thereof within five (5) business days of the date
of receipt of such request for Demand Registration.

 

2.2                               Piggyback Registration.

 

2.2.1.                               Piggyback Rights.  If at any time on or after Release
Date I as it relates to shares of the Common Stock and Release Date II as it
relates to Warrant Shares the Company proposes to file a Registration Statement
under the Securities 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 securityholders
of the Company for their accounts (or by the Company and by securityholders of
the Company including, without limitation, pursuant to Section 2.1), other
than a Registration Statement (i) filed in connection with any employee
stock option or other benefit plan, (ii) for an exchange offer or offering
of securities solely to the Company’s existing securityholders, (iii) for
an offering of debt that is convertible into equity securities of the Company, (iv) filed
in connection with the registration of Common Stock pursuant to Section 7.4
of the Warrant Agreement or (v) 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 fifteen (15) 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 ten (10) days following receipt of such notice
(a “Piggyback 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 Piggyback Registration to be included
on the same terms and conditions as any similar securities of the Company and
to permit the sale or other disposition of such Registrable Securities in
accordance with the intended method(s) of distribution thereof.  All
holders of Registrable Securities proposing to distribute their securities
through a Piggyback Registration that involves an Underwriter or Underwriters
shall enter into an underwriting agreement in customary form with the
Underwriter or Underwriters selected for such Piggyback Registration.

 

2.2.2.                               Reduction of Offering.  If the managing Underwriter or
Underwriters for a Piggyback 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 shares of Common Stock or other
securities which the Company desires to sell, taken together with shares of
Common Stock or other securities, if any, as to which registration has been
demanded pursuant to written contractual arrangements with persons other than
the holders of Registrable Securities hereunder, the Registrable Securities as
to which registration has been requested under this Section 2.2, and the
shares of Common Stock or other securities, if any, as to which registration
has been requested pursuant to the written contractual piggyback registration
rights of other securityholders of the Company, exceeds the Maximum Number of
Shares, then the Company shall include in any such registration:

 

(i)                                   If the registration is undertaken for the
Company’s account: (A) first, the shares of Common Stock or other
securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Shares; (B) second, to the extent that the Maximum
Number of 

 

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Shares has not been reached
under the foregoing clause (A), the shares of Common Stock and other
securities, if any, including the Registrable Securities, as to which
registration has been requested pursuant to the applicable written contractual
piggyback registration rights of security holders (pro rata in accordance with
the number of shares of Common Stock and other securities which each such
person has actually requested to be included in such registration, regardless
of the number of shares of Common Stock and other securities with respect to
which such persons have the right to request such inclusion) 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 shares of Common Stock or other
securities for the account of other persons that the Company is obligated to
register pursuant to written contractual piggyback registration rights with
such persons (pro rata in accordance with the number of shares of Common
Stock which each such person has actually requested to be included in such
registration, regardless of the number of shares of Common Stock with respect
to which such persons have the right to request such inclusion) that can be
sold without exceeding the Maximum Number of Shares; and

 

(ii)                                If the registration is a “demand”
registration undertaken at the demand of persons other than the holders of
Registrable Securities pursuant to written contractual arrangements with such
persons, (A) first, the shares of Common Stock and 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
shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares; and (C) third,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A) and (B), the Registrable Securities as to which
registration has been requested under this Section 2.2 (pro rata in accordance with the number of
shares of Registrable Securities which each such person has actually requested
to be included in such registration, regardless of the number of shares of
Common Stock and other securities with respect to which such persons have the
right to request such inclusion by such holder); 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 shares of Common Stock or
other securities, for the account of other persons that the Company is
obligated to register, if any, as to which registration has been requested
pursuant to written contractual arrangements with such person that can be sold
without exceeding the Maximum Number of Shares.

 

2.2.3.                               Withdrawal.  Any holder of Registrable Securities may elect to withdraw such
holder’s request for inclusion of Registrable Securities in any Piggy-Back
Registration by giving written notice to the Company of such request to
withdraw prior to the effectiveness of the Registration Statement.  The
Company (whether on its own determination or as a result of the withdrawal by
persons making a demand pursuant to written contractual obligations) may also
elect to withdraw a registration statement at any time prior to the
effectiveness of the Registration Statement.  Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggyback Registration as
provided in Section 3.3.

 

2.2.4.                                 Permitted Delays. The Company shall be entitled to postpone,
for up to sixty (60) days, the filing of any Registration Statement under this Section 2.2,
if (a) at any time prior to the filing of such Registration Statement the
Company’s Board of Directors determines, in its good faith business judgment,
that such registration and offering would materially and adversely affect any
financing, acquisition, corporate reorganization, or other material transaction
involving the Company, and (b) the Company delivers to the holder of the
Registrable Securities requesting a Piggyback Registration, written notice
thereof within five (5) business days of the date of receipt of such
request for Piggyback Registration.

 

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2.3                               Registrations on Form S-3.  The holders of Registrable Securities
may at any time and from time to time beginning on or after Release Date I or
Release Date II, as the case may be, request in writing that the Company
register the resale of any or all of such Registrable Securities on Form S-3
or any similar short-form registration which may be available at such time (“Form S-3”); provided, however, that the Company shall not be obligated
to effect such request through an underwritten offering.  Upon receipt of
such written request, the Company will promptly give written notice of the
proposed registration to all other holders of Registrable Securities, and, as
soon as practicable thereafter, effect the registration of all or such portion
of such holder’s or holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other holder or holders joining in such request as are specified in a written
request given within fifteen (15) days after receipt of such written notice
from the Company; provided, however,
that the Company shall not be obligated to effect any such registration
pursuant to this Section 2.3: (i) if Form S-3 is not available
for such offering; or (ii) if the holders of the Registrable Securities,
together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at any aggregate price to the public of less than
$500,000. Registrations effected pursuant to this Section 2.3 shall not be
counted as Demand Registrations effected pursuant to Section 2.1.

 

2.4.                              No Net Cash Settlement Value.  In
connection with the exercise of the Warrants, the Company will not be obligated
to deliver securities, and there are no contractual penalties for failure to
deliver securities, if a registration statement is not effective at the time of
exercise; provided, however, the Company may satisfy its obligation by delivering
unregistered shares of Common Stock.  In
no event will the Company be required to net cash settle an exercise of a
Warrant.

 

3.                                       REGISTRATION PROCEDURES.

 

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

 

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

 

3.1.2.
                                     Copies.  The Company shall, prior to filing a Registration Statement or
prospectus, or any amendment or supplement thereto, furnish without charge to
the holders of Registrable 

 

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Securities included in such
registration, and such holders’ legal counsel, copies of such Registration
Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and
documents incorporated by reference therein), the prospectus included in such
Registration Statement (including each preliminary prospectus), and such other
documents as the holders of Registrable Securities included in such registration
or legal counsel for any such holders may request in order to facilitate the
disposition of the Registrable Securities owned by such holders.

 

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

 

3.1.4.
                                     Notification.  After the filing of a Registration
Statement, the Company shall promptly, and in no event more than two (2) business
days after such filing, notify the holders of Registrable Securities included
in such Registration Statement of such filing, and shall further notify such
holders promptly and confirm such advice in writing in all events within two (2) business
days of the occurrence of any of the following:  (i) when such
Registration Statement becomes effective; (ii) when any post-effective
amendment to such Registration Statement becomes effective; (iii) the
issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order
or to remove it if entered); and (iv) any request by the Commission for
any amendment or supplement to such Registration Statement or any prospectus
relating thereto or for additional information or of the occurrence of an event
requiring the preparation of a supplement or amendment to such prospectus so that,
as thereafter delivered to the purchasers of the securities covered by such
Registration Statement, such prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, and
promptly make available to the holders of Registrable Securities included in
such Registration Statement any such supplement or amendment; except that
before filing with the Commission a Registration Statement or prospectus or any
amendment or supplement thereto, including documents incorporated by reference,
the Company shall furnish to the holders of Registrable Securities included in
such Registration Statement and to the legal counsel for any such holders,
copies of all such documents proposed to be filed sufficiently in advance of
filing to provide such holders and legal counsel with a reasonable opportunity
to review such documents and comment thereon, and the Company shall not file
any Registration Statement or prospectus or amendment or supplement thereto,
including documents incorporated by reference, to which such holders or their
legal counsel shall reasonably object.

 

3.1.5.
                                      State
Securities Laws Compliance.  The Company shall use its best efforts to
(i) register or qualify the Registrable Securities covered by the
Registration Statement under such securities or “blue sky” laws of such
jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended plan of
distribution) may request, and (ii) take such action necessary to cause
such Registrable Securities covered by the Registration Statement to be
registered with or approved by such other Governmental Authorities as may be
necessary by virtue of the business and operations of the Company and do any
and all other acts and things that may be necessary or advisable to enable the
holders of Registrable Securities included in such Registration Statement to
consummate the disposition of such Registrable Securities in such
jurisdictions; provided, however,
that the Company shall not be required to qualify generally to do business in
any 

 

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jurisdiction where it would
not otherwise be required to qualify but for this Section 3.1.5 or subject
itself to taxation in any such jurisdiction.

 

3.1.6.
                                     Agreements for Disposition.  The Company shall enter into
customary agreements (including, if applicable, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order
to expedite or facilitate the disposition of such Registrable Securities. 
The representations, warranties and covenants of the Company in any
underwriting agreement which are made to or for the benefit of any
Underwriters, to the extent applicable, shall also be made to and for the
benefit of the holders of Registrable Securities included in such registration
statement.  No holder of Registrable Securities included in such registration
statement shall be required to make any representations or warranties in the
underwriting agreement except, if applicable, with respect to such holder’s
organization, good standing, authority, title to Registrable Securities, lack
of conflict of such sale with such holder’s material agreements and
organizational documents, and with respect to written information relating to
such holder that such holder has furnished in writing expressly for inclusion
in such Registration Statement. Holders of Registrable Securities shall agree
to such covenants and indemnification and contribution obligations for selling
stockholders as are customarily contained in agreements of that type. Further,
such holders shall cooperate fully in the preparation of the registration
statement and other documents relating to any offering in which they include
securities pursuant to Section 2 hereof; provided, however, that such
cooperation shall be limited to furnishing to the Company such information
regarding itself, the Registrable Securities held by such holder and the
intended method of disposition of such securities as shall be reasonably
required to effect the registration of the Registrable Securities.

 

3.1.7.
                                     Cooperation.  The principal executive officer of the Company, the principal
financial officer of the Company, the principal accounting officer of the
Company and all other officers and members of the management of the Company
shall cooperate fully in any offering of Registrable Securities hereunder,
which cooperation shall include, without limitation, the preparation of the
Registration Statement with respect to such offering and all other offering
materials and related documents, and participation in meetings with
Underwriters, attorneys, accountants and potential investors.

 

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

 

3.1.9.
                                     Opinions and Comfort Letters.  The Company shall furnish to each
holder of Registrable Securities included in any Registration Statement a
signed counterpart, addressed to such holder, of (i) any opinion of
counsel to the Company delivered to any Underwriter, and (ii) any comfort
letter from the Company’s independent public accountants delivered to any
Underwriter.  In the event no legal opinion is delivered to any
Underwriter, the Company shall furnish to each holder of Registrable Securities
included in such Registration Statement, at any time that such holder elects to
use a prospectus, an opinion of counsel to the Company to the effect that the
Registration Statement containing such prospectus has been declared effective
and that no stop order is in effect.

 

3.1.10.
                               Earnings Statement.  The Company shall comply with all
applicable rules and regulations of the Commission and the Securities Act,
and make available to its stockholders, as soon as 

 

9

 

practicable, an earnings
statement covering a period of twelve (12) months, beginning within three (3) months
after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder.

 

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

 

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

 

3.3                               Registration Expenses.  The Company shall bear all costs and
expenses incurred in connection with any Demand Registration pursuant to Section 2.1,
any Piggy-Back Registration pursuant to Section 2.2, and any registration
on Form S-3 effected pursuant to Section 2.3, and all expenses
incurred in performing or complying with its other obligations under this
Agreement, whether or not the Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees; (ii) fees
and expenses of compliance with securities or “blue sky” laws (including fees
and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities); (iii) printing expenses; (iv) the Company’s
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees); (v) the fees and expenses incurred in
connection with the listing of the Registrable Securities as required by Section 3.1.11;
(vi) Financial Industry Regulatory Authority (“FINRA”)
fees; (vii) fees and disbursements of counsel for the Company and fees and
expenses for independent certified public accountants retained by the Company
(including the expenses or costs associated with the delivery of any opinions
or comfort letters requested pursuant to Section 3.1.9); (viii) the fees
and expenses of any special experts retained by the Company in connection with
such registration; and (ix)  the fees and expenses of one legal
counsel selected by the holders of a Majority In Interest of the Registrable
Securities included in such registration.  The Company shall have no
obligation to pay any underwriting discounts or selling commissions
attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions shall be borne solely by
such holders.  Additionally, in an underwritten offering, all selling
securityholders and the Company shall bear the expenses of the underwriter pro
rata in proportion to the respective dollar amount of securities each is
selling in such offering.

 

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

 

10

 

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

 

4.                                       INDEMNIFICATION
AND CONTRIBUTION.

 

4.1                                 Indemnification
by the Company.  The Company agrees to indemnify and hold
harmless each Investor and each other holder of Registrable Securities, and
each of their respective officers, employees, affiliates, directors, partners,
members, attorneys and agents, and each person, if any, who controls an
Investor and each other holder of Registrable Securities (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act)
(each, an “Investor Indemnified Party”),
from and against any expenses, losses, judgments, claims, damages or
liabilities, whether joint or several, arising out of or based upon any untrue
statement (or allegedly untrue statement) of a material fact contained in any
Registration Statement under which the sale of such Registrable Securities was
registered under the Securities Act, any preliminary prospectus, final
prospectus or summary prospectus contained in the Registration Statement, or
any amendment or supplement to such Registration Statement, or arising out of
or based upon any omission (or alleged omission) to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any rule or
regulation promulgated thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any such
registration; and the Company shall promptly reimburse the Investor Indemnified
Party for any legal and any other expenses reasonably incurred by such Investor
Indemnified Party in connection with investigating and defending any such
expense, loss, judgment, claim, damage, liability or action; provided, however, that the Company will
not be liable in any such case to the extent that any such expense, loss,
claim, damage or liability arises out of or is based upon any untrue statement
or allegedly untrue statement or omission or alleged omission made in such
Registration Statement, preliminary prospectus, final prospectus, or summary
prospectus, or any such amendment or supplement, in reliance upon and in
conformity with information furnished to the Company, in writing, by such
selling holder expressly for use therein or (ii) for the use by any
selling holder of a prospectus in violation of any stop order or other
suspension of the Registration Statement of which the Company made the selling
holder aware.  The Company also shall
indemnify any Underwriter of the Registrable Securities, their officers,
employees, affiliates, directors, partners, members, attorneys and agents and
each person who controls such Underwriter on substantially the same basis as
that of the indemnification provided above in this Section 4.1.

 

4.2                                 Indemnification
by Holders of Registrable Securities.  Each selling holder
of Registrable Securities will, in the event that any registration is being
effected under the Securities Act pursuant to this Agreement of any Registrable
Securities held by such selling holder, indemnify and hold harmless the
Company, each of its directors and officers and each underwriter (if any), and
each other person, if any, who controls the Company or such underwriter within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, against any losses, claims, judgments, damages or liabilities,
whether joint or several, insofar as such losses, claims, judgments, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or allegedly untrue statement of a material fact contained in
any Registration Statement under which the sale of such Registrable Securities
was registered under the Securities Act, any preliminary prospectus, final
prospectus or summary prospectus contained in the Registration Statement, or
any amendment or supplement to the Registration Statement, or arise out of or
are based upon any omission or the alleged 

 

11

 

omission to state a material
fact required to be stated therein or necessary to make the statement therein
not misleading, if the statement or omission was made in reliance upon and in
conformity with information furnished in writing to the Company by such selling
holder expressly for use therein, and shall reimburse the Company, its
directors and officers, and each such controlling person for any legal or other
expenses reasonably incurred by any of them in connection with investigation or
defending any such loss, claim, damage, liability or action.  Each selling
holder’s indemnification obligations hereunder shall be several and not joint
and shall be limited to the amount of any net proceeds actually received by
such selling holder in connection with the sale of the Registrable Securities
by such selling holder pursuant to the Registration Statement containing such
untrue statement or allegedly untrue statement.

 

4.3                                 Conduct of
Indemnification Proceedings.  Promptly after
receipt by any person of any notice of any loss, claim, damage or liability or
any action in respect of which indemnity may be sought pursuant to Section 4.1
or 4.2, such person (the “Indemnified Party”)
shall, if a claim in respect thereof is to be made against any other person for
indemnification hereunder, promptly notify such other person (the “Indemnifying Party”) in writing of the
loss, claim, judgment, damage, liability or action; provided, however, that the failure by the Indemnified Party
to notify the Indemnifying Party shall not relieve the Indemnifying Party from
any liability which the Indemnifying Party may have to such Indemnified Party
hereunder, except and solely to the extent the Indemnifying Party is actually
prejudiced by such failure.  If the Indemnified Party is seeking indemnification
with respect to any claim or action brought against the Indemnified Party, then
the Indemnifying Party shall be entitled to participate in such claim or
action, and, to the extent that it elects, jointly with all other Indemnifying
Parties, to assume control of the defense thereof with counsel satisfactory to
the Indemnified Party.  After notice from the Indemnifying Party to the
Indemnified Party of its election to assume control of the defense of such
claim or action, the Indemnifying Party shall not be liable to the Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified
Party in connection with the defense thereof other than reasonable costs of
investigation; provided, however,
that in any action in which both the Indemnified Party and the Indemnifying
Party are named as defendants, the Indemnified Party shall have the right to
employ separate counsel (but no more than one such separate counsel) to
represent the Indemnified Party and its controlling persons who may be subject
to liability arising out of any claim in respect of which indemnity may be
sought by the Indemnified Party against the Indemnifying Party, with the fees
and expenses of such counsel to be paid by such Indemnifying Party if, based
upon the written opinion of counsel of such Indemnified Party, representation
of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them.  No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, consent to entry of
judgment or effect any settlement of any claim or pending or threatened
proceeding in respect of which the Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party,
unless such judgment or settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such claim or proceeding.

 

4.4                                 Contribution.

 

4.4.1.                     If the indemnification
provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to
any Indemnified Party in respect of any loss, claim, damage, liability or
action referred to herein, then each such Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such loss, claim, damage,
liability or action in such proportion as is appropriate to the relative fault
of the Indemnified Parties and the Indemnifying Parties in connection with the
actions or omissions which resulted in such loss, claim, damage, liability or
action, as well as any other relevant equitable considerations.  The
relative fault of any Indemnified Party and any Indemnifying Party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by such Indemnified Party
or such 

 

12

 

Indemnifying Party and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

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

 

5.                                       OTHER
COVENANTS.

 

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

 

6.                                       MISCELLANEOUS.

 

6.1                                 Other
Registration Rights.  Except for the registration of Common Stock
pursuant to Section 7.4 of the Warrant Agreement, the Company represents
and warrants that no person, other than a holder of the Registrable Securities,
currently has any right to require the Company to register any shares of the
Company’s capital stock for sale or to include shares of the Company’s capital
stock in any registration filed by the Company for the sale of shares of
capital stock for its own account or for the account of any other person.  The Company shall not grant to any other
person any right to register his securities of the Company which are
inconsistent with the rights granted hereunder.

 

6.2                                 Assignment; No
Third Party Beneficiaries.  This Agreement and the rights, duties
and obligations of the Company hereunder may not be assigned or delegated by
the Company in whole or in part.  This Agreement and the rights, duties
and obligations of the holders of Registrable Securities hereunder may be freely
assigned or delegated by such holder of Registrable Securities in conjunction
with and to the extent of any transfer of Registrable Securities by any such
holder in accordance with applicable law.  This Agreement and the
provisions hereof shall be binding upon and shall inure to the benefit of each
of the parties and their respective successors and the permitted assigns of the
Investor or holder of Registrable Securities or of any assignee of the Investor
or holder of Registrable Securities.  This Agreement is not intended to
confer any rights or benefits on any persons that are not party hereto other
than as expressly set forth in Article 4 and this Section 6.2.

 

6.3                                 Notices. All notices,
demands, requests, consents, approvals or other communications (collectively, “Notices”) required or permitted to be given
hereunder or which are given with respect to this Agreement shall be in writing
and shall be personally served, sent by registered or certified mail, return
receipt requested, or sent by reputable air courier service with charges
prepaid, or transmitted by 

 

13

 

hand delivery, telegram,
telex or facsimile, addressed as set forth below, or to such other address as
such party shall have specified most recently by written notice provided in
accordance with this Section 6.3.  Notice shall be deemed given on
the date of service or transmission if personally served or transmitted by
telegram, telex or facsimile; provided, that if such service or transmission is
not on a business day or is after normal business hours, then such notice shall
be deemed given on the next business day. Notice otherwise sent as provided
herein shall be deemed given on the next business day following timely delivery
of such notice to a reputable air courier service with an order for next-day
delivery.

 

 

	
   

  	
  To the Company:

  
	
   

  	
   

  
	
   

  	
  K Road Acquisition
  Corporation

  
	
   

  	
  330 Madison Avenue, 25th
  Floor

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Attention:  William
  V. Kriegel

  
	
   

  	
   Fax: (212) 351-0530

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ellenoff
  Grossman & Schole LLP

  
	
   

  	
  150 East 42nd
  Street

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Attn:   Douglas
  S. Ellenoff, Esq.

  
	
   

  	
  Fax: (212) 370-7889

  
	
   

  	
   

  
	
   

  	
  And

  
	
   

  	
   

  
	
   

  	
  To an Investor, to the
  attention of the Investor at the address set forth opposite his, her or its
  respective name on the signature page hereto.

  

 

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

 

6.5                                 Counterparts;
Facsimile Signatures.  This Agreement may be executed in one or
more counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood that
both parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or “.pdf” signature page were
an original thereof.

 

6.6                                 Entire
Agreement.  This Agreement (including all agreements
entered into pursuant hereto and all certificates and instruments delivered
pursuant hereto and thereto) constitute the entire 

 

14

 

agreement of the parties
with respect to the subject matter hereof and supersede all prior and
contemporaneous agreements, representations, understandings, negotiations and
discussions between the parties, whether oral or written.

 

6.7                                 Modifications
and Amendments.  No amendment, modification or termination of
this Agreement shall be binding upon any party unless executed in writing by
such party.

 

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

 

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

 

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

 

6.11                           Governing Law. This
Agreement shall be governed by, interpreted under, and construed in accordance
with the internal laws of the State of New York applicable to agreements made
and to be performed within the State of New York, without giving effect to any
choice-of-law provisions thereof that would compel the application of the
substantive laws of any other jurisdiction. 
Each of the parties hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Agreement shall be
brought and enforced in the courts of the State of New York or the United
States District Court for the Southern District of New York (each, a “New York
Court”), and irrevocably submits to such jurisdiction, which jurisdiction shall
be exclusive. Each of the parties hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum.

 

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

 

(The remainder of this page intentionally left blank.
Signature pages to follow.)

 

15

 

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

 

	
   

  	
  K ROAD
  ACQUISITION CORPORATION

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: William V. Kriegel  

  Title:
  Chairman, Chief Executive Officer  

  and President

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
  K ROAD ACQUISITION HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: William V. Kriegel

  
	
   

  	
   

  	
  Title: Managing Member

  

 

16Exhibit 10.11

 

K Road Acquisition
Corporation

330 Madison Avenue,
25th Floor

New York, New York
10017

 

January 24,
2008

 

K
Road Acquisition Holdings LLC

330
Madison Avenue

New
York, New York 10017

 

RE:          Securities
Subscription Agreement

 

Ladies and Gentlemen:

 

We are pleased to
accept the offer you (the “Subscriber”) have made to purchase 8,625,000 shares
(the “Shares”) of common stock, $0.0001 par value per share (the “Common Stock”),
of K Road Acquisition Corporation, a Delaware corporation (the “Company”).  The terms on which the Company is willing to
sell the Shares to the Subscriber, and the Company and the Subscriber’s
agreements regarding such Shares, are as follows:

 

1.             Purchase
of Shares.  
For the sum of $37,500 (the “Purchase Price”), which the Company
acknowledges receiving in cash, the Company hereby sells and issues the Shares
to the Subscriber, and the Subscriber hereby purchases the Shares from the
Company, on the terms and subject to the conditions set forth in this
Agreement.  Concurrently with the
Subscriber’s execution of this Agreement, the Company is delivering to the
Subscriber a certificate registered in the Subscriber’s name representing the
Shares, receipt of which the Subscriber hereby acknowledges.

 

2.             The
Subscriber’s Representations, Warranties and Agreements.  To induce the Company to issue the Shares to
the Subscriber, the Subscriber hereby represents and warrants to the Company
and agrees with the Company as follows:

 

2.1.          No Government Recommendation or
Approval.  The Subscriber understands
that no United States federal or state agency or similar agency of any other
country, has passed upon or made any recommendation or endorsement of the
offering of the Shares.

 

2.2.          Experience, Financial Capability
and Suitability.  The Subscriber is
sufficiently experienced in financial and business matters to be capable of
evaluating the merits and risks of this investment and to make an informed
decision relating thereto. The Subscriber is aware its investment in the
Company is a speculative investment that has limited liquidity, because there
may never be an established market for the Company’s securities.  The Subscriber has the financial capability
for making the investment and the investment is a suitable one for the
Subscriber.  The Subscriber can, without
impairing its financial condition, hold the Shares for an indefinite period of
time and can afford a complete loss of the investment. The Subscriber
acknowledges that the Company has urged the Subscriber to seek independent
advice from

 

 

professional advisors relating to the
suitability of an investment in the Company and in connection with this
Agreement, and that the Subscriber has sought and received such independent
professional advice with respect to such investment and this Agreement or,
after careful consideration, the Subscriber has determined to waive its right
to seek and/or receive such independent professional advice.

 

2.3.          Access to Information.   Prior to the execution of this Agreement,
the Subscriber has had the opportunity to ask questions of and receive answers
from representatives of the Company concerning an investment in the Company, as
well as the finances, operations, business and prospects of the Company, and
the opportunity to obtain additional information to verify the accuracy of all
information so obtained.

 

2.4.          Regulation D Offering.  Subscriber represents that it is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D under the Securities
Act of 1933, as amended (the “Securities Act”) and acknowledges the sale contemplated hereby is being made in
reliance on a private placement exemption to “Accredited Investors” within the
meaning of Section 501(a) of Regulation D under the Securities Act or
similar exemptions under state law; and, accordingly, such securities will be “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities
Act, and therefore may not be offered, pledged or sold by Subscriber, directly
or indirectly, in the United States without registration under United States
federal and state securities laws and Subscriber understands the certificates
representing such securities will contain a legend in respect of such
restrictions.

 

2.5.          Investment
Purposes.  Subscriber is purchasing
the Shares solely for investment purposes, for the Subscriber’s own account and
not for the account or benefit of any U.S. Person, and not with a view towards
the distribution thereof and Subscriber has no present arrangement to sell the
Shares to or through any person or entity. Subscriber shall not engage in
hedging transactions with regard to the Shares unless in compliance with the
Securities Act.

 

2.6.          Restrictions
on Transfer. Subscriber understands the Shares are being offered in a
transaction not involving a public offering within the meaning of the
Securities Act. The Shares have not been registered under the Securities Act,
and, if in the future the Subscriber decides to offer, resell, pledge or
otherwise transfer the Shares, such Shares may be offered, resold, pledged or
otherwise transferred only (A) pursuant to an effective registration
statement filed under the Securities Act, (B) pursuant to an exemption
from registration under Rule 144 promulgated under the Securities Act, if
available, or (C) pursuant to any other exemption from the registration
requirements of the Securities Act, and in each case in accordance with any
applicable securities laws of any state or any other jurisdiction.  Subscriber agrees that if any transfer of its
Shares or any interest therein is proposed to be made, as a condition precedent
to any such transfer, Subscriber may be required to deliver to the Company an
opinion of counsel satisfactory to the Company. 
Absent registration or another exemption from registration, the
Subscriber agrees that he will not resell the Shares.  Subscriber further understands and
acknowledges the Securities and Exchange Commission (the “SEC”) has taken the
position the Subscriber would be considered a promoter under the Securities Act
and that promoters or affiliates of a blank check company and their
transferees, both before and after a business combination, would act as “underwriters”
under the Securities Act when reselling the securities of that blank check
company.  Accordingly, Rule 144
promulgated under the Securities Act will not be available to the Subscriber
for the resale of the Shares despite technical compliance with 

 

2

 

the
requirements of Rule 144, in which event the resale transactions would
need to be made through a registered offering.

 

2.7           Due
Authorization. Subscriber is an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization with
full right, corporate or partnership power and authority to enter into and to
consummate the transaction contemplated by this Agreement and otherwise to
carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement
and performance by Subscriber of the transactions contemplated by this
Agreement have been duly authorized by all necessary corporate or similar
action on the part of Subscriber.

 

3.             Forfeiture
of Shares; Escrow of Shares.

 

3.1.          Failure to Consummate Business
Combination; Partial or No Exercise of the Over-allotment Option.   All of the Shares initially shall be subject
to forfeiture to the Company in accordance with this Section 3.  The Shares shall be forfeited to the Company
in the event the Company does not consummate a Business Combination, as such
term is defined in the Company’s registration statement on Form S-1 under
the Securities Act (the “Registration Statement”), with respect the Company’s
initial public offering (the “IPO”) of its securities.  Furthermore, in the even the over-allotment
option (the “Over-allotment Option”) granted to the representative of the
underwriters of the Company’s IPO is not exercised in full, the Subscriber
acknowledges and agrees that it shall forfeit any and all rights to such number
of Shares (up to an aggregate of 1,125,000 Shares and pro rata based upon the
percentage of the Over-allotment Option exercised) such that immediately
following such forfeiture, the Subscriber will own a number of shares of Common
Stock (not including shares of common stock issuable upon exercise of any
warrants owned by Subscriber or any shares purchased by Subscriber in the
Company’s IPO or in the aftermarket) equal to 20% of the issued and outstanding
shares of Common Stock of the Company immediately following the IPO.

 

3.2.          Termination of Rights as
Stockholder.  If the Shares are
forfeited in accordance with this Section 3, then after such time the
Subscriber (or successor in interest), shall no longer have any rights as a
holder of such Shares, and the Company shall take such action as is appropriate
to cancel such Shares.  In addition, the
Subscriber hereby irrevocably grants the Company a limited power of attorney
for the purpose of effectuating the foregoing.

 

3.3.          Escrow.  Upon consummation of the IPO, the Subscriber,
and its designees, shall enter into a securities escrow agreement (the “Escrow
Agreement”) with Continental Stock Transfer & Trust Company (the “Escrow
Agent”), whereby the Shares shall be held in escrow until one year following
consummation of a Business Combination.

 

4.             Waiver of Liquidation Distributions; Conversion Rights.  In connection with the Shares
purchased pursuant to this Agreement and any other Company securities purchased
on a private placement basis, the Subscriber hereby waives any and all right,
title, interest or claim of any kind in or to any distributions by the Company
from the Trust Account (as defined in that certain Investment Management Trust
Agreement, dated as of the date hereof, by and between the Company and the
trustee thereunder), in the event of a liquidation of the Company upon the
Company’s failure to timely complete a Business Combination.  For purposes of clarity, in the event the
Subscriber purchases shares of Common Stock in the IPO or in the aftermarket,
any

 

3

 

additional shares so purchased shall be eligible to receive any
liquidating distributions by the Company. 
However, in no event will Subscriber have the right to convert any
Shares into funds held in the Trust Account with the Escrow Agent in connection
with a vote by the IPO shareholders on either (i) the Extended Period (as
defined in the Registration Statement “Extended Period”) or (ii) the
Business Combination.

 

5.             Restrictions
on Transfer.

 

5.1.          Securities Law Restrictions.  In addition to the restrictions contained in
the Escrow Agreement, Subscriber agrees not to sell, transfer, pledge,
hypothecate or otherwise dispose of all or any part of the Shares unless, prior
thereto (a) a registration statement on the appropriate form under the
Securities Act and applicable state securities laws with respect to the Shares
proposed to be transferred shall then be effective or (b) the Company
shall have received an opinion from counsel reasonably satisfactory to the
Company, that such registration is not required because such transaction is
exempt from registration under the Securities Act and the rules promulgated
by the Securities and Exchange Commission thereunder and with all applicable
state securities laws.

 

5.2           Restrictive Legends.  All certificates representing the Shares
shall have endorsed thereon legends substantially as follows:

 

“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER THE
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION OF
COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS
CONTAINED IN A STOCK ESCROW AGREEMENT (THE “AGREEMENT”) AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF
THE ESCROW PERIOD (AS DEFINED IN THE AGREEMENT).”

 

5.3.          Additional Shares or Substituted
Securities.   In the event of the
declaration of a stock dividend, the declaration of an extraordinary dividend
payable in a form other than stock, a spin-off, a stock split, an adjustment in
conversion ratio, a recapitalization or a similar transaction affecting the
Company’s outstanding capital stock without receipt of consideration, any new,
substituted or additional securities or other property which are by reason of
such transaction distributed with respect to any Shares subject to this Section 5
or into which such Shares thereby become convertible shall immediately be
subject to this Section 5 and

 

4

 

Section 3.3.  Appropriate adjustments to reflect the
distribution of such securities or property shall be made to the number and/or
class of Shares subject to this Section 5 and Section 3.3.

 

6.             Other
Agreements.

 

6.1.          Further Assurances.  Subscriber agrees to execute such further
instruments and to take such further action as may reasonably be necessary to
carry out the intent of this Agreement.

 

6.2           No Obligation as to Employment.     The Company is not by reason of this
Agreement obligated to employ, or continue to employ, the Subscriber in any
capacity.

 

6.3.          Notices.   All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party’s address set forth on the first page of this Agreement or
to such other address as a party may designate by notice hereunder, and shall
be either (a) delivered by hand, (b) sent by overnight courier, or (c) sent
by certified mail, return receipt requested, postage prepaid.  All notices, requests, consents and other
communications hereunder shall be deemed to have been given either (i) if
by hand, at the time of the delivery thereof to the receiving party at the
address of such party set forth above, (ii) if sent by overnight courier,
on the next business day following the day such notice is delivered to the
courier service, or (iii) if sent by certified mail, on the (5th)
business day following the day such mailing is made.

 

6.4.          Entire Agreement.  This Agreement, together with that certain
letter agreement between Subscriber and the Company, substantially in the form
filed as an exhibit to the Registration Statement, embodies the entire
agreement and understanding between the Subscriber and the Company with respect
to the subject matter hereof and supersedes all prior oral or written
agreements and understandings relating to the subject matter hereof.  No statement, representation, warranty,
covenant or agreement of any kind not expressly set forth in this Agreement
shall affect, or be used to interpret, change or restrict, the express terms
and provisions of this Agreement.

 

6.5.          Modifications and Amendments.   The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by all parties
hereto.

 

6.6.          Waivers and Consents.   The terms and provisions of this Agreement
may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or
provisions.  No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to
any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

 

6.7.          Assignment.   The rights and obligations under this
Agreement may not be assigned by either party hereto without the prior written
consent of the other party.

 

5

 

6.8.          Benefit.   All statements, representations, warranties,
covenants and agreements in this Agreement shall be binding on the parties
hereto and shall inure to the benefit of the respective successors and
permitted assigns of each party hereto. 
Nothing in this Agreement shall be construed to create any rights or
obligations except among the parties hereto, and no person or entity shall be regarded
as a third-party beneficiary of this Agreement.

 

6.9.          Governing Law.    This Agreement and the rights and
obligations of the parties hereunder shall be construed in accordance with and
governed by the law of State of New York, without giving effect to the conflict
of law principles thereof.

 

6.10.        Severability.   In the event that any court of competent
jurisdiction shall determine that any provision, or any portion thereof,
contained in this Agreement shall be unreasonable or unenforceable in any
respect, then such provision shall be deemed limited to the extent that such
court deems it reasonable and enforceable, and as so limited shall remain in
full force and effect.  In the event that
such court shall deem any such provision, or portion thereof, wholly
unenforceable, the remaining provisions of this Agreement shall nevertheless
remain in full force and effect.

 

6.11.        No Waiver of Rights, Powers and
Remedies.   No failure or delay by a
party hereto in exercising any right, power or remedy under this Agreement, and
no course of dealing between the parties hereto, shall operate as a waiver of
any such right, power or remedy of such party. 
No single or partial exercise of any right, power or remedy under this
Agreement by a party hereto, nor any abandonment or discontinuance of steps to
enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or
remedy hereunder.  The election of any
remedy by a party hereto shall not constitute a waiver of the right of such
party to pursue other available remedies. 
No notice to or demand on a party not expressly required under this
Agreement shall entitle the party receiving such notice or demand to any other
or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or
further action in any circumstances without such notice or demand.

 

6.12.        Survival of Representations and
Warranties.   All representations and
warranties made by the parties hereto in this Agreement or in any other
agreement, certificate or instrument provided for or contemplated hereby, shall
survive the execution and delivery hereof and any investigations made by or on
behalf of the parties.

 

6.13.        No Broker or Finder.   Each of the parties hereto represents and
warrants to the other that no broker, finder or other financial consultant has
acted on its behalf in connection with this Agreement or the transactions
contemplated hereby in such a way as to create any liability on the other.  Each of the parties hereto agrees to
indemnify and save the other harmless from any claim or demand for commission
or other compensation by any broker, finder, financial consultant or similar
agent claiming to have been employed by or on behalf of such party and to bear
the cost of legal expenses incurred in defending against any such claim.

 

6.14.        Headings and Captions.   The headings and captions of the various
subdivisions of this Agreement are for convenience of reference only and shall
in no way modify or affect the meaning or construction of any of the terms or
provisions hereof.

 

6

 

6.15.        Counterparts.   This Agreement may be executed in one or
more counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood that
both parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or “.pdf” signature page were
an original thereof.

 

(Signature
page to follow)

 

7

 

If any foregoing
accurately sets forth our understanding and agreement, please sign the enclosed
copy of this agreement and return it to us.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  K ROAD ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   
  /s/ William V. Kriegel

  
	
   

  	
   

  	
  Name: William Kriegel

  
	
   

  	
   

  	
  Title: Chairman, Chief Executive

  
	
   

  	
   

  	
  Officer
  and President

  

 

 

Accepted and agreed this

January 24, 2008

 

K ROAD ACQUISITION HOLDINGS LLC

 

 

	
  By:

  	
   
  /s/ William V. Kriegel

  	
   

  
	
   

  	
  Name: William Kriegel

  	
   

  
	
   

  	
  Title: Chairman, Chief Executive
  Officer

  	
   

  
	
   

  	
  and
  President

  	
   

  

 

8

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