Document:

EX-10.2 Clendenin Consulting Agreement

 

EXHIBIT 10.2

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (the “Agreement”) is entered into as of October 29, 2007, by and
between Sunair Southeast Pest Holdings, Inc., a Florida corporation (the “Company”) and Gregory
Clendenin (the “Consultant”).

RECITALS

     WHEREAS, the Consultant is retiring from his position as the Chief Executive Officer of the
Company and Middleton Pest Control, Inc. (“Middleton”), a wholly-owned subsidiary of the Company
and any other positions held with the Company, Middleton and any affiliated companies (“Affiliated
Companies”), effective as of October 29, 2007 (the “Termination Date”) and has resigned from these
positions as of the Termination Date;

     WHEREAS, Company wishes to retain the Consultant’s services as a consultant for a period of
twelve (12) months after the Termination Date;

     NOW, THEREFORE, the parties intended to be legally bound, hereby and in consideration of the
promises contained herein, do hereby agree as follows:

     1. CONSULTANT’S SERVICES. Under the general direction of the Chief Executive Officer
of Sunair Services Corporation, the parent company of the Company, the Consultant shall provide
consulting services to the Company, Middleton and any Affiliated Companies in his area of expertise
or any matters in which he was involved while employed by the Company. These services will include
without limitation, consulting in the areas of the pest control and the lawn service industry.
Such services shall be provided at such times, locations and by such means as reasonably required
by the Company. The Company agrees to provide the Consultant with at least four (4) days notice
when his presence is required at the Company’s executive office or any other location. The
services shall not exceed twenty (20) hours per week during the first six (6) months of the term
and shall not exceed ten (10) hours per week during the second six (6) months of the term.

2. CONSIDERATION.

          2.1 In consideration for the consulting services to be performed by Consultant under this
Agreement, the Company will pay Consultant $12,750 per month during the first six (6) months of the
term.

          2.2 The Company will pay Consultant for the following expenses incurred while the Agreement
between Consultant and the Company exists: all travel expenses to and from all work sites, meal
expenses, administrative expenses, lodging expenses if work demands overnight stays and
miscellaneous travel-related expenses (parking and tolls). Consultant shall submit written
documentation and receipts where available itemizing the dates on which expenses were incurred. The
Company shall pay Consultant the amounts due pursuant to submitted reports in accordance with its
general practices.

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     3. INDEPENDENT CONTRACTOR. It is understood and agreed that the services which
Consultant shall provide hereunder shall be in the capacity of an independent contractor and not as
an officer or employee of the Company, Middleton or the Affiliated Companies. Nothing herein shall
be construed to create an employer-employee relationship between the Company and Consultant. The
consideration set forth in Section 2 shall be the sole consideration due Consultant for the
services rendered hereunder. It is understood that the Company will not withhold any amounts for
payment of taxes from the compensation of Consultant hereunder. Consultant will not represent to be
or hold himself out as an employee of the Company.

     4. CONFIDENTIALITY. In the course of performing consulting services, the parties
recognize that Consultant may come in contact with or become familiar with information which the
Company or its subsidiaries or Affiliated Companies may consider confidential. This information may
include, but is not limited to, information pertaining to the Company, such as financial,
statistical, technical, strategic, product, customer, and personnel data, which information, is not
generally available to the public, and may be of value to a competitor. Consultant agrees to keep
all such information confidential and not to discuss or divulge it to anyone other than appropriate
Company personnel or their designees. The provisions of this paragraph are in addition to, and not
in lieu of, any other obligations of confidentiality entered into by Consultant and Company,
Middleton and/or any Affiliated Companies.

     5. TERM AND TERMINATION.

          5.1 This Agreement shall commence on October 29, 2007 and shall terminate on October 29,
2008.

          5.2 If the Consultant is in breach of any material provision of this Agreement, the Company
shall give the Consultant 15 days prior written notice of the facts and circumstances surrounding
the Company’s belief that the Consultant in breach of this Agreement. If the Consultant does not
cure the issues raised in the notice within 15 days after receipt of the notice, the Company may
terminate this Agreement. The end of such 30 day priod shall constitute the termination date for
all purposes of this Agreement.

          5.3 The Company may also terminate this Agreement immediately, if the Consultant is in
breach of any of the terms and conditions of the Separation and Release Agreement (“Separation
Agreement”) with an effective date of October 29 2007 between the Company and the Consultant.

          5.4 Upon any termination events set forth in Section 5.2 or Section 5.3, the Company will
pay, within 30 days after the effective date of termination, all amounts owing to the Consultant
for services completed and accepted by the Company prior to the termination date and all related
expenses, if submited in accordance with the policies and procedures set forth in Section 2.2 All
other agreements that the Consultant has entered into with the Company, including but not limited
to the Separation Agreement, will remain in full force and effect.

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     6. MISCELLANEOUS.

          6.1 This Agreement constitutes the entire agreement of the parties with regard to the subject
matter hereof, and replaces and supersedes all other agreements or understandings, whether written
or oral. No amendment or extension of the Agreement shall be binding unless in writing and signed
by both parties.

          6.2 This Agreement shall be binding upon and shall inure to the benefit of Consultant and the
Company and to the Company’s successors and assigns. Nothing in this Agreement shall be construed
to permit the assignment by Consultant of any of his rights or obligations hereunder, and such
assignment is expressly prohibited without the prior written consent of the Company.

          6.3 This Agreement shall be governed by the laws of the State of Florida. The invalidity or
unenforceability of any provision of the Agreement shall not affect the validity or enforceability
of any other provision.

          6.4 Any notice or communication permitted or required by this Agreement shall be deemed
effective when personally delivered or sent via overnight delivery service, where acknowledgment of
receipt is required (such as Federal Express, DHL or similar service) to the address that the other
party has designated, in writing, as its address for notice under this Agreement.

[Signature on next page]

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     IN WITNESS WHEREOF, the aforesaid parties have hereunto set their hands and seals as of the
day below written.

	 	 	 	 	 
	 	SUNAIR SOUTHEAST PEST HOLDINGS, INC.

 	 
	 	By:  	/s/ John J. Hayes
 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	CONSULTANT

 	 
	 	/s/ Gregory Clendenin
 	 
	 	Gregory Clendenin 	 
	 	 	 
	 

4Ex-4.5 Form of Unit Purchase Option

 

EXHIBIT 4.5

[FORM OF UNIT PURCHASE OPTION]

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) LAZARD CAPITAL MARKETS LLC (THE “INITIAL HOLDER”) OR ANY OTHER UNDERWRITER OR
SELECTED DEALER PARTICIPATING IN THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF THE
INITIAL HOLDER OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF (I)                     ,
2008 [ONE YEAR FROM THE DATE OF THE PROSPECTUS] AND (II) THE CONSUMMATION BY IDEATION ACQUISITION
CORP. (THE “COMPANY”) OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION, STOCK PURCHASE OR
OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”), ASSUMING THE SECURITIES UNDERLYING
THIS PURCHASE OPTION ARE COVERED BY AN EFFECTIVE REGISTRATION STATEMENT AND A CURRENT PROSPECTUS IS
AVAILABLE OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IS
AVAILABLE (AS DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)). THIS
PURCHASE OPTION SHALL BE VOID AFTER 5:00 P.M EASTERN TIME,                     , 2012 [FIVE YEARS
FROM THE DATE OF THE PROSPECTUS].

UNIT PURCHASE OPTION

FOR THE PURCHASE OF

500,000 UNITS

OF

IDEATION ACQUISITION CORP.

	1.	 	Purchase Option.

     THIS CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf of LAZARD CAPITAL
MARKETS LLC (the “Initial Holder”), as registered owner of this Purchase Option (this
“Purchase Option”), to IDEATION ACQUISITION CORP. (the “Company”), the Initial
Holder is entitled, at any time or from time to time on the later of (i)                     , 2008 [one year from the date of the prospectus] and (ii) the consummation of a
Business Combination (the “Commencement Date”), and at or before 5:00 p.m., Eastern
Time,                    , 2012 [five years from the date of the prospectus] (the
“Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or
in part, up to 500,000 units (the “Units”) of the Company, each Unit consisting of one
share of common stock of the Company, par value $0.0001 per share (the “Common Stock”), and
one warrant (collectively, the “Warrant(s)”) expiring four years from the effective date
(the “Effective Date”) of the registration statement (the “Registration Statement”)
pursuant to which units are offered for sale to the public (the “Offering”). Each Warrant
is the same as the warrants included in the units (the “Public
Units”) being registered for sale to the public by way of
the Registration Statement (the “Public Warrants”), except that the Warrants included in
the Units underlying this Purchase Option have an exercise price of $7.00 per share of Common
Stock. If the Expiration Date is not a Business Day (as defined below), then this Purchase Option
may be exercised on the next succeeding Business 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 shares of Common Stock 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.

     The term “Holder” shall mean, as of any date, the Initial Holder and/or any transferee
who acquires this Purchase Option (in whole or in part) in accordance with Section 3.1 hereof.

     The term “Business Day” shall mean any day, except a Saturday, Sunday or legal holiday
on which the banking institutions in the State of New York are authorized or obligated by law or
executive order to close.

	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., Eastern time, on the Expiration Date, this Purchase
Option shall become null and 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 are covered by an effective registration
statement 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 Stock 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 (“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 Units (or that number of shares of Common Stock 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 a Unit. 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 Public Units nor Public Warrants are still trading,
the remainder derived from subtracting (x) the exercise price of the Warrants multiplied by the
number of shares of Common Stock issuable upon exercise of the Warrants underlying one Unit from
(y) (i) the Current Market Price of the Common Stock multiplied by (ii) the number of shares of
Common Stock underlying one Unit, which shall include the shares of Common Stock underlying the
Warrants included in such Unit; (B) in the event that the Public Units, Common Stock and Public
Warrants are still trading, (i) if the Public Units are listed on a national securities exchange or
quoted on the Nasdaq Global Market, Nasdaq Capital Market or the FINRA OTC Bulletin Board (or
successor exchange), the last sale price of the Public Units in the principal trading market for
the Public Units as reported by the exchange, Nasdaq or the FINRA OTC Bulletin Board, as the case
may be, on the last trading day preceding the date in question; or (ii) if the Public Units are not
listed on a national securities exchange or quoted on the Nasdaq Global Market, Nasdaq Capital
Market or the FINRA OTC Bulletin Board (or successor exchange), but are traded in the residual
over-the-counter market, the closing bid price for Public 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 Public Units are not still trading but
the Common Stock and Public Warrants underlying the Units are still trading, the Current Market
Price of the Common Stock plus the product of (x) the Current Market Price of the Public Warrants
and (y) the number of shares of Common Stock underlying the Warrants included in one Unit. The
“Current Market Price” shall mean (i) if the Common Stock (or Public Warrants, as the case
may be) is listed on a national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
Capital Market or the FINRA OTC Bulletin Board (or successor exchange), the last sale price of the
Common Stock (or Public Warrants) in the principal trading market for the Common Stock as reported
by the exchange, Nasdaq or FINRA, as the case may be, on the last trading day preceding the date in
question; (ii) if the Common Stock (or Public Warrants, as the case may be) is not listed on a
national securities exchange or quoted on the Nasdaq Global Market, Nasdaq Capital Market or the
FINRA OTC Bulletin Board (or successor exchange), but is traded in the residual over-the-counter
market, the closing bid price for the Common Stock (or Public 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 Stock (or
Public Warrants) 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. In the event the Public Warrants have
expired and are no longer exercisable, no “Value” shall be attributed to the Warrants underlying
this Purchase Option. Additionally, in the event that this Purchase Option is exercised pursuant to
this Section 2.2 and the Public Warrants are still trading, the “Value” shall be reduced by the
difference between the Warrant Exercise Price and the exercise price of the Public Warrants
multiplied by the number of Warrants underlying the Units included in the portion of this Purchase
Option being converted.

          2.3.2 Mechanics of Cashless Exercise. The Conversion Right described in this Section
2.3 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 this Purchase Option, with the duly executed exercise
form attached hereto and with

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the cashless exercise section completed, specifying the total number of Units the Holder will
purchase pursuant to such Conversion Right, to the Company.

     2.4 No Obligation to Net Cash Settle. Notwithstanding anything to the contrary
contained in this Purchase Option, if the Company is unable to deliver any securities pursuant to
the exercise of this Purchase Option, the Purchase Option and underlying securities may expire
unexercised or unredeemed. In no event will the Company be obligated to pay the registered Holder
of the Purchase Option any cash or otherwise “net cash settle” the Purchase Option or the Warrants
underlying the Purchase Option.

     2.5 Warrant Exercise. Any Warrants underlying the Units shall be issued pursuant and
subject to the terms and conditions set forth in the Warrant Agreement, entered into by and between
the Company and Continental Stock Transfer & Trust Company, dated as of                     ,
2007.

	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 (in whole or in part) or any interest herein for a period of one year following the
Effective Date to anyone other than (i) [the Initial Holder] or an underwriter or a selected dealer
participating in the Offering or (ii) a bona fide officer or partner of [the Initial Holder] or of
any such underwriter or selected dealer (each, a “Permitted Transferee”). On and after the
first anniversary of the Effective Date, this Purchase Option may be sold, transferred, assigned,
pledged, hypothecated or otherwise disposed of, in whole or in part, subject to compliance with
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 (5) Business Days following receipt thereof, 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 (a) the Company has received a written 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 agrees that the opinion of Mintz Levin
Cohn Ferris Glovsky and Popeo, P.C. shall be deemed satisfactory evidence of the availability of an
exemption) or (b) a new 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”), a current prospectus is available
and compliance with applicable state securities laws 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 funds sufficient to pay any
Exercise Price (except to the extent the Holder elects to exercise this Purchase Option by means of
a cashless exercise as provided by Section 2.3 above) 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. In
addition, the Company shall cause to be delivered to any Permitted Transferee without charge a new
Purchase Option of like tenor to this Purchase Option in the name of such transferee evidencing the
right of such transferee to purchase the number of Units purchasable hereunder as to which this
Purchase Option has been transferred to such transferee.

     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

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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 General. As used in this Section 5, the term “Registrable Securities”
means the securities underlying this Purchase Option, including the Units, the shares of Common
Stock and Warrants issued as part of the Units and the shares of Common Stock underlying the
Warrants; provided, that, any 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 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 transferred
pursuant to Rule 144 of the Act (or any similar rule or regulation then in force), new certificates
for them not bearing a legend restricting further transfer shall have been delivered by the Company
and they may be publicly resold without volume or method of sale restrictions without registration
under the Securities Act; (c) such securities may be sold under Rule 144 by the Holder without
volume limitation restrictions; or (d) such securities shall have ceased to be outstanding. A
“majority” of the Registrable Securities shall be calculated by assuming that any outstanding
Purchase Options are exercised for Units in accordance with the terms of such Purchase Options and
that any Warrants are exercised for shares of Common Stock in accordance with the terms of such
Warrants.

     5.2 Demand Registration.

          5.2.1 Grant of Right. At any one time (and not more than one time) during the five
year period following the Effective Date, the Holders of at least 51% of the Registrable Securities
(“Majority Holders”) may make a written demand for registration under the Act of all or
part of their Registrable Securities (a “Demand Registration”). Any request for a Demand
Registration (a “Demand Request”) 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, and any Holder of Registrable
Securities who wishes to include all or a portion of such Holder’s Registrable Securities in the
Demand Registration shall so notify the Company within fifteen (15) Business Days following
delivery of the notice from the Company (such Holders who timely deliver notice together with the
Majority Holders, the “Demanding Holders”). The Company will then use its reasonable best
efforts (a) to prepare and file within sixty (60) days a new registration statement or a
post-effective amendment to the Registration Statement covering the resale of the Registrable
Securities which the Demanding Holders have requested to be registered and (b) to cause such
registration statement to be declared effective as soon as possible thereafter, subject to Section
5.2.4.

          5.2.2 Terms. The Company shall bear all fees and expenses attendant to registering the
Registrable Securities, including the reasonable fees and expenses of one legal counsel selected by
the Majority Holders to represent them in connection with the sale of the Registrable Securities,
except that the Company shall not be required to pay any underwriting commissions (which
commissions, if any, shall be borne by the Demanding Holders participating in the registration).
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 (a) 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 (b) the principal stockholders of the Company to be obligated to escrow their
shares of capital stock of the Company. The Company shall use its reasonable best efforts to cause
any registration statement or post-effective amendment filed pursuant to the demand rights granted
under Section 5.2.1 to remain effective for a period of twelve consecutive months from the
effective date of such registration statement or post-effective amendment, plus any period during
which disposition of securities thereunder is interfered with by any stop order or injunction of
the Commission or any governmental agency or court.

          5.2.3 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

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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.

          5.2.4 Underwritten Offerings. If a majority-in-interest (based on the number of
Registrable Securities being registered (assuming any securities exercisable for shares of Common
Stock are so exercised)) of the Demanding Holders so elect and such holders so advise the Company
in writing as part of the Demand Request, 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 the majority-in-interest of the Demanding Holders subject to the approval of the Company, which approval may not be unreasonably withheld. 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 securities
which the Company desires to sell and all other securities, if any, as to which registration has
been requested pursuant to written contractual piggy-back registration rights held by other
stockholders of the Company, 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 Securities”), then
the Company shall include in such registration: (i) first, Registrable Securities as to which
Demand Registration has been requested by the Demanding Holders (allocated pro rata in accordance
with the number of shares or other securities 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
Securities; (ii) second, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clause (i), securities that the Company desires to sell that can be sold
without exceeding the Maximum Number of Securities; (iii) third, to the extent that the Maximum
Number of Securities has not been reached under the foregoing clauses (i) and (ii), 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 Securities; and (iv) fourth, to the extent that the Maximum
Number of Securities have not been reached under the foregoing clauses (i), (ii), and (iii),
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 Securities.

          5.2.5 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 the Company
shall cease all efforts to secure such registration, and such registration shall not count as a
Demand Registration provided for in Section 5.2.

          5.2.6 Permitted Delays. The Company shall be entitled to postpone, for up to sixty
(60) days from the date of receipt of a Demand Request, the filing of any registration statement
under this Section 5.2, 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 Demanding Holders written notice thereof within five (5) business days from the
date of receipt of a Demand Request; provided, that the Company may not exercise this postponement
right more than once during any twelve-month period.

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     5.3 “Piggy-Back” Registration.

          5.3.1 Grant of Right. If at any time during the first seven years following the
Effective Date the Company proposes to file a registration statement under the Act with respect to
an offering of equity securities, or securities 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 5.2.1), other than (A) a registration of securities relating solely
to an offering and sale to employees or directors of the Company pursuant to any employee stock
plan or other employee benefit plan arrangement, (B) a registration on Form S-4 or S-8 or any
successor form to such forms, (C) an exchange offer or offering of securities solely to the
Company’s existing stockholders, (D) an offering of debt that is convertible into equity
securities, (E) a dividend reinvestment plan, or (F) solely in connection with a merger,
consolidation or non-capital raising bona fide business transaction, then the Company shall (i)
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 (ii) 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 reasonable 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 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 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. If at any time after giving written notice of its intention to register any
securities and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any
reason not to register or to delay registration of such securities, the Company
may, at its election, give written notice of such determination to each holder
of Registrable Securities and, (x) in the case of a determination not to
register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration, and (y) in the case of a
determination to delay registering, shall be permitted to delay registering any
Registrable Securities for the same period as the delay in registering such
other securities.

          5.3.2 Terms. The Company shall bear all fees and expenses attendant to registering
the Registrable Securities, including the reasonable fees and expenses of any legal counsel
selected by a majority-in-interest of the Holders requesting inclusion of securities pursuant to
Section 5.3 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-in-interest of the 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 (a) 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 (b) the principal stockholders of the Company to be obligated to escrow their
shares of capital stock of the Company. The Company shall use its commercially reasonable efforts
to cause any registration statement or post-effective amendment filed pursuant to the “piggyback”
rights granted under Section 5.3 to remain effective for a period of nine consecutive months from
the effective date of such registration statement or post-effective amendment.

          5.3.3 Underwritten Offerings. 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 securities which the
Company desires to sell, taken together with the securities, if any, as to which registration has
been demanded pursuant to written contractual arrangements with persons other than the holders of
Registrable Securities and the Registrable Securities as to which registration has been requested
under Section 5.3, exceeds the Maximum Number of Securities, then the Company shall include in any
such registration:

               (a) If the registration is undertaken for the Company’s account: (A) first, securities that
the Company desires to sell that can be sold without exceeding the Maximum Number of Securities;
(B) second, to the extent that the Maximum Number of Securities has not been reached under the
foregoing clause (A), 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
Securities; and (C) third, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clauses (A) and (B), securities for the account of other persons that the

6

 

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 Securities;

               (b) If the registration is a “demand” registration undertaken at the demand of holders of
Investor Securities, (A) first, securities for the account of the demanding persons, Pro Rata, that
can be sold without exceeding the Maximum Number of Securities; (B) second, to the extent that the
Maximum Number of Securities has not been reached under the foregoing clause (A), securities that
the Company desires to sell that can be sold without exceeding the Maximum Number of Securities;
(C) third, to the extent that the Maximum Number of Securities has not been reached under the
foregoing clauses (A) and (B), 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
Securities; and (D) fourth, to the extent that the Maximum Number of Securities has not been
reached under the foregoing clauses (A), (B) and (C), 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 Securities;
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, securities
for the account of the demanding persons that can be sold without exceeding the Maximum Number of
Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clause (A), securities that the Company desires to sell that can be sold
without exceeding the Maximum Number of Securities; (C) third, to the extent that the Maximum
Number of Securities has not been reached under the foregoing clauses (A) and (B), 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 Securities; and (D) fourth, to the extent
that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B) and
(C), 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 Securities.

          5.3.4 Maintenance of Priority. So long as there are Registrable Securities hereunder,
the Company shall not grant to any person piggy-back rights superior to or on parity with the
rights of the Holders of Registrable Securities hereunder.

          5.3.5 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 at least five (5) Business Days prior to
the effectiveness of the Registration Statement. Notwithstanding any such withdrawal, the Company
shall pay all expenses incurred in connection with the withdrawn registration statement in
accordance with Section 5.3.2 above.

     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 any such Holder 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 any 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, based upon 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 Initial Holder contained in Section [7] of the Underwriting
Agreement (the “Underwriting Agreement”) among the Company and the Initial Holder, as
Representative, dated the [Effective Date], pursuant to which the Company has agreed to indemnify
the Initial Holder. 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 any 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

7

 

threatened, or 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 [7]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 this Purchase Option or Warrants underlying this
Purchase Option prior to or after the initial filing of any registration statement or the
effectiveness thereof.

          5.4.3 Documents Delivered to Holders. In case of an underwritten offering which
includes Registrable Securities pursuant to the terms hereof, the Company shall furnish, or cause
to be furnished, to the Initial Holder, as representative of the Holders participating in the
offering, (i) an opinion of counsel substantially in the form furnished to the underwriter or
underwriters and (ii) a comfort letter from the Company’s independent public accountants
substantially in the form furnished to the underwriter or underwriters; provided, that, comfort
letters are at the time being customarily furnished by independent public accountants to selling
securityholders in similar circumstances. The Company shall deliver promptly to the Initial
Holder, as representative of the Holders participating in the offering, copies of all
correspondence between the Commission, on the one hand, and the Company, its counsel and/or
auditors, on the other hand, and permit the Initial Holder, as representative of the Holders
participating in the offering, 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 the Initial Holder, as representative of the Holders participating in the offering, shall
reasonably request. The Company shall not be required to disclose any confidential information or
other records to the Initial Holder, as representative of the Holders participating in the
offering, 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. If an underwritten offering is requested pursuant to
Section 5.2.4, the Company shall enter into an underwriting agreement with the managing
underwriter(s), if any, selected by any Holders pursuant to Section 5.2.4 or Section 5.3.3, which
managing underwriter shall be reasonably acceptable to the Company. Such agreement shall be
reasonably satisfactory in form and substance to the Company, each participating Holder and such
managing underwriter(s), 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 participating Holders shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and shall agree to such covenants
and indemnification and contribution obligations of selling stockholders 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
Registrable 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 Obligation to Suspend Distribution. The 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 any registration statement covering Registrable Securities, 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 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 at the time of receipt
of such notice.

     5.4.6
Rule 144 Sale. Notwithstanding anything contained in this Section 5
to the contrary, the Company shall have no obligation to register Registrable
Securities held by any Holder where such Holder would then be entitled to sell
under Rule 144(k) all of the Registrable Securities then held by such Holder.

8

 

	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 Stock Dividends — Split-Ups. If after the date hereof, and subject to the
provisions of Section 6.4 below, the number of outstanding shares of Common Stock is increased by a
stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares of Common Stock
included in each of the Units purchasable hereunder shall be increased in proportion to such
increase in outstanding shares. In such case, the number of shares of Common Stock, and the
exercise price applicable thereto, underlying the Warrants included in 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 stock dividend and, at the time of such dividend, this
Purchase Option entitles the holder to purchase one Unit at a price of $10.00 (and the Warrant
issued as part of such Unit would entitle the holder to purchase one share of Common Stock at a
price of $7.00), 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
shares of Common Stock and two Warrants (each Warrant exercisable for $3.50 per share).

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

          6.1.3 Replacement of Securities upon Reorganization, etc. In the case of any
reclassification or reorganization of the outstanding shares of Common Stock other than a change
covered by Section 6.1.1 or 6.1.2 hereof or one that solely affects the par value of such
shares of Common Stock, or in the case of any merger or consolidation of the Company with or into
another corporation other than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification or reorganization of the outstanding
shares of Common Stock, 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 of stock 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 shares of Common
Stock 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 shares of
Common Stock covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to
Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section

9

 

6.1.3 shall similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

          6.1.4 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.

          6.1.5 Adjustments of Warrants. To the extent the exercise 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 exercise price of the Warrants underlying this 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 this
Purchase Option shall be extended on identical terms.

     6.2 Substitute Purchase Option. In the 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 Stock), 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 of stock and other securities and property receivable upon such consolidation or merger, by
a holder of the number of shares of Common Stock 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 shares of Common Stock or Warrants upon the exercise of this
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, shares of Common Stock or
other securities, properties or rights.

     6.4 Limitations on Monetary Damages. In no event shall the registered holder of this
Purchase Option be entitled to receive any monetary damages if the securities underlying this
Purchase Option have not been registered by the Company pursuant to an effective registration
statement or a current prospectus is not available, provided the Company has fulfilled its
obligation to use reasonable best efforts to effect such registration and to make such prospectus
available.

7.
Reservation and Listing. The Company shall at all times reserve and keep available out
of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of this
Purchase Option or the Warrants underlying this Purchase Option, such number of shares of Common
Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The
Company covenants and agrees that, upon exercise of this Purchase Option and payment of the
Exercise Price therefor, all shares of Common Stock and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and non-assessable. The Company further
covenants and agrees that upon exercise of the Warrants underlying this Purchase Option and payment
of the Warrant exercise price therefor, all shares of Common Stock and other securities issuable
upon such exercise shall be duly and validly issued, fully paid and non-assessable. As long as this
Purchase Option shall be outstanding, except in connection with a going private transaction, the Company shall use its reasonable best efforts to cause
all (a) shares of Common Stock issuable upon exercise of this Purchase Option and (b) shares of Common Stock issuable
upon exercise of the Warrants included in the Units issuable upon exercise of this Purchase Option
to be listed (subject to official notice of issuance) on all securities exchanges on which the
units, the shares of common stock or the Public Warrants issued in connection with the Offering may
then be listed and/or quoted.

10

 

8. Certain Notice Requirements.

     8.1 Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring
upon the Holder the right to vote or consent as a stockholder for the election of directors or any
other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at
any time prior to the expiration of this Purchase Option and its 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 (15) days prior to the date fixed as a record date or
the date of closing the transfer books for the determination of the stockholders 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
stockholders of the Company at the same time and in the same manner that such notice is given to
the stockholders.

     8.2 Events Requiring Notice. The Company shall be required to give the notice
described in Section 8.1 upon the following events: (a) the Company shall offer to all the holders
of its Common Stock any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to
subscribe therefor, (b) the Company shall take a record of the holders of its Common Stock for the
purpose of entitling them to receive a dividend or distribution payable other than in cash, or a
cash dividend or distribution payable other than out of retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the Company, or (c) the
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 the change and shall be certified as being true
and accurate by the Company’s Chief Executive Officer, President or 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 made when hand
delivered, or mailed by express mail or private courier service: (a) if to the registered Holder of
the Purchase Option, to the address of such Holder as shown on the books of the Company, or (b) if
to the Company, to the following address or to such other address as the Company may designate by
notice to the Holders:

			
	                         	 	Ideation Acquisition Corp.

100 North Crescent Drive

Beverly Hills, CA 90210

Attention: Chief Executive Officer

with a copy to:

Akerman Senterfitt

One SE Third Avenue

Suite 2500

Miami, FL 33131

Attention: Teddy D. Klinghoffer, Esq.

	9.	 	Miscellaneous.

     9.1 Amendments. The Company and the Initial Holder 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 the Initial Holder may deem necessary or
desirable and that the Company and the Initial Holder deem shall not adversely

11

 

affect the interest of the Holders. All other modifications or amendments to this Purchase
Option shall require the written consent of and be signed by the Holder hereof.

     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) constitute 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 respective successors, legal
representatives and permitted 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 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, the Initial Holder or any 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, the Initial Holder 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, non-compliance or
non-fulfillment.

     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, the Holder agrees that, at any time prior to the complete exercise of this
Purchase Option by the Holder, if the Company and the Initial Holder 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 the Holder shall agree to
such exchange and become a party to the Exchange Agreement.

[Remainder of this page left intentionally blank]

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

	 	 	 	 	 
	 	IDEATION ACCQUISITION CORP.

 	 
	 	By:  	 
 	 
	 	 	Robert N. Fried 	 
	 	 	President and Chief Executive Officer 	 

13

 

	 	 	 	 	 

Form to be used to exercise Purchase Option:

Ideation Acquisition Corp.

100 North Crescent Drive

Beverly Hills, CA 90210

Date:                    , 200     

The undersigned hereby irrevocably elects to exercise all or a portion of the within Purchase
Option and to purchase            Units of IDEATION 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 Stock and Warrants as to which this Purchase Option is exercised
in accordance with the instructions given below.

or

     The undersigned hereby irrevocably elects 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 $                    ). Please issue the securities comprising the Units as to which
this Purchase Option is exercised in accordance with the instructions given below.

	 	 	 	 	 
	 	 	 
	 	      
 	 
	 	Signature 	 
	 	 	 
	 
	 	 	 
	 	      
 	 
	 	Signature Guaranteed 	 
	 	 	 
	 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

			
	Name	 	

 

(Print in Block Letters)

			
	Address	 	

 

     NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

14

 

Form to be used to assign Purchase Option:

Ideation Acquisition Corp.

100 North Crescent Drive

Beverly Hills, CA 90210

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 IDEATION 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:                    , 200_

	 	 	 	 	 
	 	 	 
	 	 
 	 
	 	Signature 	 
	 	 	 
	 
	 	 	 
	 	 
 	 
	 	Signature Guaranteed 	 
	 	 	 
	 

     NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

15

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