Document:

exv10w6

 

Exhibit 10.6

Fairchild Semiconductor Stock Plan

Performance Unit Award Agreement

	 	 	 	 	 
	PARTICIPANT: Joseph R. Martin

	 	EMPLOYEE ID:
	 	GLOBAL ID:

	 	 	 
	GRANT DATE:

	 	July 18, 2005
	 
	 	 
	TARGET NUMBER OF PERFORMANCE UNITS:

	 	5,796
	 
	 	 
	PERFORMANCE YEAR:

	 	Fiscal Year Ending December 25, 2005

THIS AGREEMENT, effective as of the Grant Date set forth above, is between Fairchild Semiconductor
International, Inc., a Delaware corporation (the “Company”, “we”, “our” or “us”) and the
Participant named above (“you” or “yours”), pursuant to the provisions of the Fairchild
Semiconductor Stock Plan (the “Plan”) with respect to the award of the number of performance units
(“Performance Units”) specified above. Capitalized terms used and not defined in this Agreement
shall have the meanings given to them in the Plan.

By accepting this Grant, you irrevocably agree, on your own behalf and on behalf of your heirs and
any other person claiming rights under this Agreement, to all of the terms and conditions of the
Performance Unit Award as set forth in or pursuant to this Agreement and the Plan (as such may be
amended from time to time). You and the Company agree as follows:

	 	 	 
	1. Application of
Plan;

    Administration

	 	This Agreement and your rights under this Agreement are subject to all the terms and conditions of the Plan, as it may
be amended from time to time, as well as to such rules and regulations as the Committee may adopt. It is expressly
understood that the Committee that administers the Plan is authorized to administer, construe and make all
determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be
binding upon you to the extent permitted by the Plan. Any inconsistency between this Agreement and the Plan shall be
resolved in favor of the Plan.
	 
	 	 
	2. Performance Goal

	 	The issuance of Performance Units pursuant to this Agreement shall be subject to the Company achieving earnings before
interest and taxes, as determined by the Committee pursuant to the Plan, (“EBIT”) for the Performance Year set forth
above equal to at least the 50% EBIT Target established by the Committee and set forth in the table below. If EBIT for
the Performance Year does not equal or exceed the 50% EBIT Target threshold, the right to receive any Performance Units
pursuant to this Agreement shall expire without consideration.
	 
	 	 
	 

	 	Subject to the foregoing paragraph and provided that you have remained in the full time employment or service of the
Company or an Affiliate from the Grant Date set forth above, the number of Performance Units issued to you under this
Agreement (such units, the “Granted Performance Units”) shall be determined in accordance with the following schedule:
	 
	 	 

	 	 	 	 	 
	 	 	EBIT Required to	 	 
	Percentage EBIT	 	Achieve Percentage	 	Number of Granted
	Target	 	EBIT Target	 	Performance Units If Percentage EBIT Goal Achieved
	50% EBIT Target

	 	 	 	0.50 x the Target Number of Performance Units
	100% EBIT Target

	 	 	 	1.00 x the Target Number of Performance Units
	150% EBIT Target

	 	 	 	1.50 x the Target Number of Performance Units
	200% EBIT Target

	 	 	 	2.00 x the Target Number of Performance Units

In the event that the Company’s EBIT for the Performance Year falls between two of the Percentage EBIT Targets listed in
the table above, the number of Granted Performance Units shall be determined by linear interpolation. Notwithstanding
anything herein to the contrary, in no event shall more that 2.00 times the Target Number of Performance Units be issued
under this Agreement.

 

 

	 	 	 
	 

	 	Following the end of the Performance Year and the collection of relevant data necessary to determine the extent to which
the performance goal set forth in this Paragraph 2 has been satisfied, the Committee will determine: (a) the extent to
which the performance goal was achieved by the Company for the Performance Year; and (b) the percentage of the Target
Number of Performance Units to be issued pursuant to the Performance Unit Award program for the Performance Year. The
Committee shall make these determinations in its sole discretion. The number and kind of shares subject to or issued
under the Performance Unit Award shall be subject to adjustment as provided for in Section 3(c) of the Plan. The
achievement of the performance goal (or lack thereof) shall be evidenced by the Committee’s written certification. For
the avoidance of doubt, the right to receive up to 200% of the Target Number of Performance Units shall expire without
consideration to the extent that such units do not become Granted Performance Units.
	 
	 	 
	3. Vesting

	 	The Granted Performance Units will vest in full (becoming “Vested Performance Units”) on February 15, 2006 (the “Vesting
Date”) provided that you have remained in the full time employment or service of the Company or an Affiliate from the
Grant Date set forth above until the Vesting Date, provided that in no case shall the units vest before the date of the
Committee’s written certification of the performance goal achievement under Paragraph 2.
	 
	 	 
	4. Termination of

    Employment

	 	Except as otherwise provided in Paragraph 8 of this Agreement, the right to issuance of Performance Units and the rights
under any Granted Performance Units that have not become Vested Performance Units at the time your employment or service
with the Company terminates for any reason will be forfeited without consideration as of the date of termination.
	 
	 	 
	5. Settlement of

    Granted Performance

    Units and Issuance

    of Shares

	 	Each Vested Performance Unit will be settled by the delivery of one share of Common Stock (subject to adjustment under
Section 3(c) of the Plan, a “Share”) to you or, in the event of your death, to your designated beneficiary, promptly
following the Vesting Date with respect to such Shares, subject to your satisfaction of any tax withholding obligations
as described in Paragraph 10 of this Agreement. You hereby authorize any brokerage service provider determined
acceptable to the Company, to open a securities account for you to be used for the settlement of Vested Performance
Units. The date on which Shares are issued may include a delay in order to provide the Company such time as it
determines appropriate to address tax withholding and other administrative matters.
	 
	 	 
	6. Rights as
Stockholder

	 	Except as otherwise provided in this Agreement, you will not be entitled to any privileges of ownership of the shares of
Common Stock underlying your Performance Units unless and until Shares are actually delivered to you under this
Agreement.
	 
	 	 
	7. Dividends

	 	From and after the date a number of Granted Performance Units are issued to you under Paragraph 2 or Paragraph 8, you
will be credited with additional Performance Units having a value equal to declared dividends, if any, with record dates
that occur prior to the settlement of any Granted Performance Units as if such Granted Performance Units had been actual
shares of Common Stock, based on the Fair Market Value of a share of Common Stock on the applicable dividend payment
date. Any such additional Performance Units shall be considered Granted Performance Units under this Agreement and shall
also be credited with additional Performance Units as dividends, if any, are declared, and shall be subject to the same
restrictions and conditions (including the risk of forfeiture under Paragraph 4) as Granted Performance Units with
respect to which they were credited. Notwithstanding the foregoing, no such additional Performance Units will be
credited with respect to any dividend in connection with which Granted Performance Units are adjusted pursuant to
Section 3(c) of the Plan.
	 
	 	 
	8. Change in Control

	 	Notwithstanding anything to the contrary in this Agreement, the Granted Performance Units shall be subject to
acceleration of vesting upon a Change in Control as provided with respect to restricted stock under Section 11(a)(ii) of
the Plan, and shall be settled as if pursuant to Paragraph 5 of this Agreement, provided that if a Change in Control
occurs during the Performance Year, a number of Performance Units equal to 100% of the Target Number of Performance
Units shall be issued to you (and become Granted Performance Units) immediately prior to the Change in Control.

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	9. Transferability

	 	(a)
	 	Your Performance Units are not transferable, whether voluntarily or involuntarily, by operation of law or otherwise,
except as provided in the Plan. Any assignment, pledge, transfer, or other disposition, voluntary or involuntary, of
your Units made, or any attachment, execution, garnishment, or lien issued against or placed upon the Units, other than
as so permitted, shall be void.
	 
	 	 	 	 
	 

	 	(b)
	 	You acknowledge that, from time to time, the Company may be in a “blackout period” and/or subject to applicable
securities laws that could subject you to liability for engaging in any transaction involving the sale of the Company’s
shares. You further acknowledge and agree that, prior to the sale of any Shares, it is your responsibility to determine
whether or not such sale of Shares will subject you to liability under insider trading rules or other applicable
securities laws.
	 
	 	 	 	 
	10. Taxes

	 	(a)
	 	General. You are ultimately liable and responsible for all taxes owed by you in connection with your Performance
Units, regardless of any action the Company takes or any transaction pursuant to this Paragraph 10 with respect to any
tax withholding obligations that arise in connection with the Performance Units. The Company makes no representation or
undertaking regarding the treatment of any tax withholding in connection with the grant, issuance, vesting or settlement
of the Performance Units or Granted Performance Units or the subsequent sale of any of the Shares underlying the Granted
Performance Units that vest. The Company does not commit and is under no obligation to structure this Agreement to
reduce or eliminate your tax liability.
	 
	 	 	 	 
	 

	 	(b)
	 	Taxes. You will be subject to federal and state income and other tax withholding requirements on a date (generally,
the Vesting Date) determined by applicable law (any such date, the “Taxable Date”), based on the Fair Market Value of
the Shares underlying the Granted Performance Units that vest. You will be solely responsible for the payment of all
U.S. federal income and other taxes, including any state, local or non-U.S. income or employment tax obligation that may
be related to the Shares, including any such taxes that are required to be withheld and paid over to the applicable tax
authorities (the “Tax Withholding Obligation”). You will be responsible for the satisfaction of such Tax Withholding
Obligation in a manner acceptable to the Company in its sole
discretion, including through payroll withholding.

(i) By Sale of Shares. Your acceptance of this Agreement constitutes your instruction and authorization to the Company
and any brokerage firm determined acceptable to the Company for such purpose to sell on your behalf a whole number of
shares from those Shares issuable to you as the Company determines to be appropriate to generate cash proceeds
sufficient to satisfy the applicable Tax Withholding Obligation. Such shares will be sold on the Taxable Date or as soon
thereafter as practicable. You will be responsible for all brokers’ fees and other costs of sale, which fees and costs
may be deducted from the proceeds of the foregoing sale of Shares, and you agree to indemnify and hold the Company and
any brokerage firm selling such Shares harmless from any losses, costs, damages, or expenses relating to any such sale.
To the extent the proceeds of such sale exceed your Tax Withholding Obligation, such excess cash will be deposited into
the securities account established with the brokerage service provider for the settlement of your Vested Performance
Units. Such Shares will be sold through the broker at market prices; however the price you receive will reflect a
weighted average sales price based on the sales price of Shares on behalf of you and others for whom the designated
broker may be selling shares on the relevant day(s), and you acknowledge that the Company or its designee is under no
obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be
sufficient to satisfy your Tax Withholding Obligation. Accordingly, you agree to pay to the Company as soon as
practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not
satisfied by the sale of shares described above. Unless otherwise authorized by the Committee in its sole discretion,
the sale of shares will be the primary method used by the Company to satisfy the applicable Tax Withholding Obligation,
and accordingly you represent and warrant to the Company as follows:

	 	 	 	 	 
	 

	 	A.
	 	You are accepting this Agreement during a permitted trading period, and at the time of accepting this Agreement you
are not aware of any Material Nonpublic Information (as defined in the Company’s Corporate Legal Insider Trading and
Tipping Policy) concerning the Company.
	 
	 	 	 	 
	 

	 	B.
	 	You will not exercise any subsequent influence over the amount of Shares to be sold hereunder to generate funds for
the Tax Withholding Obligation or the price, date or time of such sale.
	 
	 	 	 	 
	 

	 	C.
	 	You are entering into this Agreement in good faith and have a bona fide intention to carry out the terms of this
Agreement, and you will not enter into or alter a corresponding or

3

 

	 	 	 	 	 
	 

	 	 	 	     hedging transaction or position with respect to the Shares.
	 
	 	 	 	 
	 

	 	 	 	(ii) By Share Withholding. If so elected in the sole discretion of the Committee, then in lieu of a market sale pursuant
to Paragraph 10(b)(i) you authorize the Company to withhold from the Shares issuable to you the whole number of shares
with a value equal to the Fair Market Value of the Shares on the Taxable Date or the first trading day before the
Taxable Date, sufficient to satisfy the applicable Tax Withholding Obligation. You acknowledge that the withheld shares
may not be sufficient to satisfy your Tax Withholding Obligation. Accordingly, you agree to pay to the Company as soon
as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is
not satisfied by the withholding of Shares described above.

	 	 	 
	11. Data Privacy

	 	As an essential term of this Agreement, you consent to the collection, use and transfer, in electronic or other form, of
personal data as described in this Agreement for the exclusive purpose of implementing, administering and managing your
participation in the Plan.

By entering into this Agreement and accepting the Performance Units, you acknowledge that the Company holds certain
personal information about you, including, but not limited to, your name, home address and telephone number, date of
birth, social insurance number or other identification number, salary, tax rates and amounts, nationality, job title,
any shares of stock or directorships held in the Company, details of all awards or any other entitlement to shares of
stock awarded, canceled, exercised, vested, unvested or outstanding, for the purpose of implementing, administering and
managing the Plan (“Data”). You acknowledge that Data may be transferred to any third parties assisting in the
implementation, administration and management of the Plan, that these recipients may be located in jurisdictions that
may have different data privacy laws and protections, and you authorize the recipients to receive, possess, use, retain
and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the
Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom you or
the Company may elect to deposit any shares of stock acquired under this Agreement. You acknowledges that Data may be
held only as long as is necessary to implement, administer and manage your participation in the Plan as determined by
the Company, and that you may request additional information about the storage and processing of Data, require any
necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, provided however, that
refusing or withdrawing your consent may adversely affect your ability to participate in the Plan.
	 
	 	 
	12. Electronic
Delivery

	 	The Company may, in its sole discretion, decide to deliver any documents related to any awards granted under the Plan by
electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to
receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line
or electronic system established and maintained by the Company or another third party designated by the Company, and
such consent shall remain in effect throughout your term of employment or service with the Company and thereafter until
withdrawn in writing by you.

4

 

	 	 	 	 	 
	13. Miscellaneous

	 	(a)
	 	This Agreement shall not confer upon you any right to continue as an employee, or otherwise in the service of, the
Company or any Affiliate, nor shall this Agreement interfere in any way with the Company’s or such Affiliate’s right to
terminate your employment or service at any time.
	 
	 	 	 	 
	 

	 	(b)
	 	Without limiting the generality of Paragraph 13(a) above, this Agreement and the Plan may be amended without your
consent to the extent provided in Section 14(b) of the Plan.
	 
	 	 	 	 
	 

	 	(c)
	 	This Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or stock exchanges as may be required. The Company may impose such restrictions, conditions or
limitations as it determines appropriate as to the timing and manner of any resales by you or other subsequent transfers
by you of any shares of Common Stock issued as a result of or under this Agreement, including without limitation (i)
restrictions under an insider trading policy, (ii) restrictions that may be necessary in the absence of an effective
registration statement under the Securities Act of 1933, as amended, covering the Performance Units and (iii)
restrictions as to the use of a specified brokerage firm or other agent for such resales or other transfers. Any sale
of shares of Common Stock issued pursuant to this Agreement must also comply with other applicable laws and regulations
governing the sale of such shares.
	 
	 	 	 	 
	 

	 	(d)
	 	To the extent not preempted by U.S. federal law, this Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware.
	 
	 	 	 	 
	 

	 	(e)
	 	Any question concerning the interpretation of this Agreement or the Plan, any adjustments required to be made under
the Plan, and any controversy that may arise under the Plan or this Agreement shall be determined by the Committee
(including any person(s) to whom the Committee has delegated its authority) in its sole and absolute discretion. Such
decision by the Committee shall be final and binding.

	 	 	 
	14. Signatures

	 	By the signatures below, you and the authorized representative of the Company acknowledge agreement to this Performance
Unit Award Agreement as of the Grant Date specified above.

	 	 	 	 
	 	PARTICIPANT:

	 	FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC.
	 	 
	 	 
	 	/s/ Joseph R. Martin

	 	/s/ Paul D. Delva
	 	 

	 	 
	 	Joseph R. Martin

	 	Paul D. Delva
	 	 

	 	Vice President, General Counsel and Secretary

To accept your Performance Unit grant:

	 	(a)	 	Sign BOTH copies of this Performance Unit Award Agreement;

	 
	 	(b)	 	Retain one copy of each for your records;
	 
	 	(c)	 	Return one copy of each in the enclosed envelope by August 22, 2005.

5WARRANT AGREEMENT

         Agreement made as of _____________, 2005 between Jaguar Acquisition
Corporation, a Delaware corporation, with offices at 1200 River Road, Suite
1302, Conshohocken, Pennsylvania 19428 ("Company"), and Continental Stock
Transfer & Trust Company, a New York corporation, with offices at 17 Battery
Place, New York, New York 10004 ("Warrant Agent").

         WHEREAS, the Company is engaged in a public offering ("Public
Offering") of Units ("Units") and, in connection therewith, has determined to
issue and deliver up to (i) 6,900,000 Warrants ("Public Warrants") to the public
investors, and (ii) 600,000 Warrants to EarlyBirdCapital, Inc. ("EBC") or its
designees ("Representative's Warrants" and, together with the Public Warrants,
the "Warrants"), each of such Public Warrants evidencing the right of the holder
thereof to purchase one share of the Company's common stock, par value $.0001
per share ("Common Stock"), subject to adjustment as described herein; and

         WHEREAS, the Company has filed with the Securities and Exchange
Commission a Registration Statement on Form S-1, No. 333-127135
("Registration Statement"), for the registration, under the Securities Act of
1933, as amended ("Act") of, among other securities, the Warrants and the Common
Stock issuable upon exercise of the Warrants; and

         WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing to so act, in connection with the
issuance, registration, transfer, exchange, redemption and exercise of the
Warrants; and

         WHEREAS, the Company desires to provide for the form and provisions of
the Warrants, the terms upon which they shall be issued and exercised, and the
respective rights, limitation of rights, and immunities of the Company, the
Warrant Agent, and the holders of the Warrants; and

         WHEREAS, all acts and things have been done and performed which are
necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the
valid, binding and legal obligations of the Company, and to authorize the
execution and delivery of this Agreement.

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows:

1.   Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent
to act as agent for the Company for the Warrants, and the Warrant Agent hereby
accepts such appointment and agrees to perform the same in accordance with the
terms and conditions set forth in this Agreement.

2.   Warrants.

     2.1. Form of Warrant. Each Warrant shall be issued in registered form only,
shall be in substantially the form of Exhibit A hereto, the provisions of which
are incorporated herein and shall be signed by, or bear the facsimile signature
of, the Chairman of the Board or President and Treasurer, Secretary or Assistant
Secretary of the Company and shall bear a facsimile of the Company's seal. In
the event the person whose facsimile signature has been placed upon any Warrant
shall have ceased to serve in the capacity in which such person signed the
Warrant before such Warrant is issued, it may be issued with the same effect as
if he or she had not ceased to be such at the date of issuance.

     2.2. Effect of Countersignature. Unless and until countersigned by the
Warrant Agent pursuant to this Agreement, a Warrant shall be invalid and of no
effect and may not be exercised by the holder thereof.

     2.3. Registration.

          2.3.1. Warrant Register. The Warrant Agent shall maintain books
("Warrant Register"), for the registration of original issuance and the
registration of transfer of the Warrants. Upon the initial issuance of the
Warrants, the Warrant Agent shall issue and register the Warrants in the names
of the respective holders thereof in such denominations and otherwise in
accordance with instructions delivered to the Warrant Agent by the Company.

          2.3.2. Registered Holder. Prior to due presentment for registration of
transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose name such Warrant shall be registered upon the Warrant
Register ("registered holder"), as the absolute owner of such Warrant and of
each Warrant represented thereby (notwithstanding any notation of ownership or
other writing on the Warrant Certificate made by anyone other than the Company
or the Warrant Agent), for the purpose of any exercise thereof, and for all
other purposes, and neither the Company nor the Warrant Agent shall be affected
by any notice to the contrary.

                                       2

     2.4. Detachability of Warrants. The securities comprising the Units will
not be separately transferable until 90 days after the date hereof unless EBC
informs the Company of its decision to allow earlier separate trading, but in no
event will EBC allow separate trading of the securities comprising the Units
until (i) the Company files a Current Report on Form 8-K which includes an
audited balance sheet reflecting the receipt by the Company of the gross
proceeds of the Public Offering including the proceeds received by the Company
from the exercise of the Underwriter's over-allotment option, if the
over-allotment option is exercised prior to the filing of the Form 8-K and (ii)
at least 60 days have passed since the distribution of the Units in the Public
Offering has been completed.

     2.5 Warrants and Representative's Warrants. The Representative's Warrants
shall have the same terms and be in the same form as the Public Warrants except
with respect to the Warrant Price as set forth below in Section 3.1.

3.   Terms and Exercise of Warrants

     3.1. Warrant Price. Each Public Warrant shall, when countersigned by the
Warrant Agent, entitle the registered holder thereof, subject to the provisions
of such Public Warrant and of this Warrant Agreement, to purchase from the
Company the number of shares of Common Stock stated therein, at the price of
$5.00 per whole share, subject to the adjustments provided in Section 4 hereof
and in the last sentence of this Section 3.1. Each Representative's Warrant
shall, when countersigned by the Warrant Agent, entitle the registered holder
thereof, subject to the provisions of such Representative's Warrant and of this
Warrant Agreement, to purchase from the Company the number of shares of Common
Stock stated therein, at the price of $___ per whole share, subject to the
adjustments provided in Section 4 hereof. The term "Warrant Price" as used in
this Warrant Agreement refers to the price per share at which Common Stock may
be purchased at the time a Warrant is exercised. The Company in its sole
discretion may lower the Warrant Price at any time prior to the Expiration Date.

     3.2. Duration of Warrants. A Warrant may be exercised only during the
period ("Exercise Period") commencing on the later of (i) the consummation by
the Company of a merger, capital stock exchange, asset acquisition or other
similar business combination ("Business Combination") (as described more fully
in the Company's Registration Statement) and (ii) __________, 2006, and
terminating at 5:00 p.m., New York City time on the earlier to occur of (i)
___________, 2009 or (ii) the date fixed for redemption of the Warrants as
provided in Section 6 of this Agreement ("Expiration Date"). Except with respect
to the right to receive the Redemption Price (as set forth in Section 6
hereunder), each Warrant not exercised on or before the Expiration Date shall
become void, and all rights thereunder and all rights in respect thereof under
this Agreement shall cease at the close of business on the Expiration Date. The

                                       3

Company in its sole discretion may extend the duration of the Warrants by
delaying the Expiration Date.

     3.3. Exercise of Warrants.

          3.3.1. Payment. Subject to the provisions of the Warrant and this
Warrant Agreement, a Warrant, when countersigned by the Warrant Agent, may be
exercised by the registered holder thereof by surrendering it, at the office of
the Warrant Agent, or at the office of its successor as Warrant Agent, in the
Borough of Manhattan, City and State of New York, with the subscription form, as
set forth in the Warrant, duly executed, and by paying in full, in lawful money
of the United States, in cash, good certified check or good bank draft payable
to the order of the Company (or as otherwise agreed to by the Company), the
Warrant Price for each full share of Common Stock as to which the Warrant is
exercised and any and all applicable taxes due in connection with the exercise
of the Warrant, the exchange of the Warrant for the Common Stock, and the
issuance of the Common Stock; provided, however, that with respect to any
Warrants purchased by the Company's initial stockholders during the ten-month
period following separate trading of the Warrants included in the Company's
Units pursuant to the agreement between such individuals and EBC, in the event
of redemption pursuant to Section 6 hereof, such stockholders may pay the
Warrant Price by surrendering his or her Warrant for that number of shares of
Common Stock equal to the quotient obtained by dividing (x) the product of the
number of shares of Common Stock underlying the Warrant, multiplied by the
difference between the Warrant Price and the "Fair Market Value" (defined below)
by (y) the Fair Market Value. The "Fair Market Value" shall mean the average
reported last sale price of the Common Stock for the 10 trading days ending on
the 3rd trading day prior to the date on which the notice of redemption is sent
to holders of Warrant pursuant to Section 6 hereof.

          3.3.2. Issuance of Certificates. As soon as practicable after the
exercise of any Warrant and the clearance of the funds in payment of the Warrant
Price, the Company shall issue to the registered holder of such Warrant a
certificate or certificates for the number of full shares of Common Stock to
which he is entitled, registered in such name or names as may be directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new
countersigned Warrant for the number of shares as to which such Warrant shall
not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of a Warrant unless
a registration statement under the Act with respect to the Common Stock is
effective. Warrants may not be exercised by, or securities issued to, any
registered holder in any state in which such exercise would be unlawful.

          3.3.3. Valid Issuance. All shares of Common Stock issued upon the
proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

                                       4

          3.3.4. Date of Issuance. Each person in whose name any such
certificate for shares of Common Stock is issued shall for all purposes be
deemed to have become the holder of record of such shares on the date on which
the Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such certificate, except that, if the
date of such surrender and payment is a date when the stock transfer books of
the Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

          3.3.5. Intentionally Omitted.

4.   Adjustments.

          4.1. Stock Dividends - Split-Ups. If after the date hereof, and
     subject to the provisions of Section 4.6 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 of such stock dividend, split-up
     or similar event, the number of shares of Common Stock issuable on exercise
     of each Warrant shall be increased in proportion to such increase in
     outstanding shares of Common Stock.

          4.2. Aggregation of Shares. If after the date hereof, and subject to
     the provisions of Section 4.6, the number of outstanding shares of Common
     Stock is decreased by a consolidation, combination, reverse stock split or
     reclassification of shares of Common Stock or other similar event, then, on
     the effective date of such consolidation, combination, reverse stock split,
     reclassification or similar event, the number of shares of Common Stock
     issuable on exercise of each Warrant shall be decreased in proportion to
     such decrease in outstanding shares of Common Stock.

          4.3 Adjustments in Exercise Price. Whenever the number of shares of
     Common Stock purchasable upon the exercise of the Warrants is adjusted, as
     provided in Section 4.1 and 4.2 above, the Warrant Price shall be adjusted
     (to the nearest cent) by multiplying such Warrant Price immediately prior
     to such adjustment by a fraction (x) the numerator of which shall be the
     number of shares of Common Stock purchasable upon the exercise of the
     Warrants immediately prior to such adjustment, and (y) the denominator of
     which shall be the number of shares of Common Stock so purchasable
     immediately thereafter.

                                       5

     4.4. Replacement of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of Common Stock
(other than a change covered by Section 4.1 or 4.2 hereof or 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
that 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 assets or other property of the Company as
an entirety or substantially as an entirety in connection with which the Company
is dissolved, the Warrant holders shall thereafter have the right to purchase
and receive, upon the basis and upon the terms and conditions specified in the
Warrants and in lieu of the shares of Common Stock of the Company immediately
theretofore purchasable and receivable upon the exercise of the rights
represented thereby, 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, that the Warrant holder would have received if such
Warrant holder had exercised his, her or its Warrant(s) immediately prior to
such event; and if any reclassification also results in a change in shares of
Common Stock covered by Section 4.1 or 4.2, then such adjustment shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of this
Section 4.4 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

     4.5. Notices of Changes in Warrant. Upon every adjustment of the Warrant
Price or the number of shares issuable upon exercise of a Warrant, the Company
shall give written notice thereof to the Warrant Agent, which notice shall state
the Warrant Price resulting from such adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of a
Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based. Upon the occurrence of any event
specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company
shall give written notice to each Warrant holder, at the last address set forth
for such holder in the warrant register, of the record date or the effective
date of the event. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such event.

     4.6. No Fractional Shares. Notwithstanding any provision contained in this
Warrant Agreement to the contrary, the Company shall not issue fractional shares
upon exercise of Warrants. If, by reason of any adjustment made pursuant to this
Section 4, the holder of any Warrant would be entitled, upon the exercise of
such Warrant, to receive a fractional interest in a share, the Company shall,
upon such exercise, round up to the nearest whole number the number of the
shares of Common Stock to be issued to the Warrant holder.

                                       6

     4.7. Form of Warrant. The form of Warrant need not be changed because of
any adjustment pursuant to this Section 4, and Warrants issued after such
adjustment may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant to this Agreement. However, the
Company may at any time in its sole discretion make any change in the form of
Warrant that the Company may deem appropriate and that does not affect the
substance thereof, and any Warrant thereafter issued or countersigned, whether
in exchange or substitution for an outstanding Warrant or otherwise, may be in
the form as so changed.

5.   Transfer and Exchange of Warrants.

     5.1. Registration of Transfer. The Warrant Agent shall register the
transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with
signatures properly guaranteed and accompanied by appropriate instructions for
transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the
Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent
to the Company from time to time upon request.

     5.2. Procedure for Surrender of Warrants. Warrants may be surrendered to
the Warrant Agent, together with a written request for exchange or transfer, and
thereupon the Warrant Agent shall issue in exchange therefor one or more new
Warrants as requested by the registered holder of the Warrants so surrendered,
representing an equal aggregate number of Warrants; provided, however, that in
the event that a Warrant surrendered for transfer bears a restrictive legend,
the Warrant Agent shall not cancel such Warrant and issue new Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company stating that such transfer may be made and indicating whether the
new Warrants must also bear a restrictive legend.

     5.3. Fractional Warrants. The Warrant Agent shall not be required to effect
any registration of transfer or exchange which will result in the issuance of a
warrant certificate for a fraction of a warrant.

     5.4. Service Charges. No service charge shall be made for any exchange or
registration of transfer of Warrants.

     5.5. Warrant Execution and Countersignature. The Warrant Agent is hereby
authorized to countersign and to deliver, in accordance with the terms of this
Agreement, the Warrants required to be

                                       7

issued pursuant to the provisions of this Section 5, and the Company, whenever
required by the Warrant Agent, will supply the Warrant Agent with Warrants duly
executed on behalf of the Company for such purpose.

6.   Redemption.

     6.1. Redemption. Subject to Section 6.4 hereof, not less than all of the
outstanding Warrants may be redeemed, at the option of the Company, at any time
after they become exercisable and prior to their expiration, at the office of
the Warrant Agent, upon the notice referred to in Section 6.2, at the price of
$.01 per Warrant ("Redemption Price"), provided that the last sales price of the
Common Stock has been at least $8.50 per share, on each of twenty (20) trading
days within any thirty (30) trading day period ending on the third business day
prior to the date on which notice of redemption is given. The provisions of this
Section 6.1 may not be modified, amended or deleted without the prior written
consent of EBC.

     6.2. Date Fixed for, and Notice of, Redemption. In the event the Company
shall elect to redeem all of the Warrants, the Company shall fix a date for the
redemption. Notice of redemption shall be mailed by first class mail, postage
prepaid, by the Company not less than 30 days prior to the date fixed for
redemption to the registered holders of the Warrants to be redeemed at their
last addresses as they shall appear on the registration books. Any notice mailed
in the manner herein provided shall be conclusively presumed to have been duly
given whether or not the registered holder received such notice.

     6.3. Exercise After Notice of Redemption. The Warrants may be exercised,
for cash (or on a "cashless basis" in accordance with Section 3.3.1 of this
Agreement at any time after notice of redemption shall have been given by the
Company pursuant to Section 6.2 hereof and prior to the time and date fixed for
redemption. On and after the redemption date, the record holder of the Warrants
shall have no further rights except to receive, upon surrender of the Warrants,
the Redemption Price.

     6.4 Outstanding Warrants Only. The Company understands that the redemption
rights provided for by this Section 6 apply only to outstanding Warrants. To the
extent a person holds rights to purchase Warrants, such purchase rights shall
not be extinguished by redemption. However, once such purchase rights are
exercised, the Company may redeem the Warrants issued upon such exercise
provided that the criteria for redemption is met. The provisions of this Section
6.4 may not be modified, amended or deleted without the prior written consent of
EBC.

                                       8

7.   Other Provisions Relating to Rights of Holders of Warrants.

     7.1. No Rights as Stockholder. A Warrant does not entitle the registered
holder thereof to any of the rights of a stockholder of the Company, including,
without limitation, the right to receive dividends, or other distributions,
exercise any preemptive rights to vote or to consent or to receive notice as
stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

     7.2. Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is
lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on
such terms as to indemnity or otherwise as they may in their discretion impose
(which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination, tenor, and date as the
Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall
constitute a substitute contractual obligation of the Company, whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.

     7.3. Reservation of Common Stock. The Company shall at all times reserve
and keep available a number of its authorized but unissued shares of Common
Stock that will be sufficient to permit the exercise in full of all outstanding
Warrants issued pursuant to this Agreement.

     7.4. Registration of Common Stock. The Company agrees that prior to the
commencement of the Exercise Period, it shall file with the Securities and
Exchange Commission a post-effective amendment to the Registration Statement, or
a new registration statement, for the registration, under the Act, of, and it
shall take such action as is necessary to qualify for sale, in those states in
which the Warrants were initially offered by the Company, the Common Stock
issuable upon exercise of the Warrants. In either case, the Company will use its
best efforts to cause the same to become effective and to maintain the
effectiveness of such registration statement until the expiration of the
Warrants in accordance with the provisions of this Agreement. The provisions of
this Section 7.4 may not be modified, amended or deleted without the prior
written consent of EBC.

                                       9

8.   Concerning the Warrant Agent and Other Matters.

     8.1. Payment of Taxes. The Company will from time to time promptly pay all
taxes and charges that may be imposed upon the Company or the Warrant Agent in
respect of the issuance or delivery of shares of Common Stock upon the exercise
of Warrants, but the Company shall not be obligated to pay any transfer taxes in
respect of the Warrants or such shares.

     8.2. Resignation, Consolidation, or Merger of Warrant Agent.

          8.2.1. Appointment of Successor Warrant Agent. The Warrant Agent, or
any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days'
notice in writing to the Company. If the office of the Warrant Agent becomes
vacant by resignation or incapacity to act or otherwise, the Company shall
appoint in writing a successor Warrant Agent in place of the Warrant Agent. If
the Company shall fail to make such appointment within a period of 30 days after
it has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the holder of the Warrant (who shall, with such notice, submit his
Warrant for inspection by the Company), then the holder of any Warrant may apply
to the Supreme Court of the State of New York for the County of New York for the
appointment of a successor Warrant Agent at the Company's cost. Any successor
Warrant Agent, whether appointed by the Company or by such court, shall be a
corporation organized and existing under the laws of the State of New York, in
good standing and having its principal office in the Borough of Manhattan, City
and State of New York, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor Warrant Agent shall be vested with
all the authority, powers, rights, immunities, duties, and obligations of its
predecessor Warrant Agent with like effect as if originally named as Warrant
Agent hereunder, without any further act or deed; but if for any reason it
becomes necessary or appropriate, the predecessor Warrant Agent shall execute
and deliver, at the expense of the Company, an instrument transferring to such
successor Warrant Agent all the authority, powers, and rights of such
predecessor Warrant Agent hereunder; and upon request of any successor Warrant
Agent the Company shall make, execute, acknowledge, and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming
to such successor Warrant Agent all such authority, powers, rights, immunities,
duties, and obligations.

          8.2.2. Notice of Successor Warrant Agent. In the event a successor
Warrant Agent shall be appointed, the Company shall give notice thereof to the
predecessor Warrant Agent and the transfer agent for the Common Stock not later
than the effective date of any such appointment.

                                       10

          8.2.3. Merger or Consolidation of Warrant Agent. Any corporation into
which the Warrant Agent may be merged or with which it may be consolidated or
any corporation resulting from any merger or consolidation to which the Warrant
Agent shall be a party shall be the successor Warrant Agent under this Agreement
without any further act.

     8.3. Fees and Expenses of Warrant Agent.

          8.3.1. Remuneration. The Company agrees to pay the Warrant Agent
reasonable remuneration for its services as such Warrant Agent hereunder and
will reimburse the Warrant Agent upon demand for all expenditures that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

          8.3.2. Further Assurances. The Company agrees to perform, execute,
acknowledge, and deliver or cause to be performed, executed, acknowledged, and
delivered all such further and other acts, instruments, and assurances as may
reasonably be required by the Warrant Agent for the carrying out or performing
of the provisions of this Agreement.

     8.4. Liability of Warrant Agent.

          8.4.1. Reliance on Company Statement. Whenever in the performance of
its duties under this Warrant Agreement, the Warrant Agent shall deem it
necessary or desirable that any fact or matter be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a statement signed by the
President or Chairman of the Board of the Company and delivered to the Warrant
Agent. The Warrant Agent may rely upon such statement for any action taken or
suffered in good faith by it pursuant to the provisions of this Agreement.

          8.4.2. Indemnity. The Warrant Agent shall be liable hereunder only for
its own negligence, willful misconduct or bad faith. The Company agrees to
indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and reasonable counsel fees, for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of the Warrant Agent's negligence, willful misconduct, or bad
faith.

                                       11

          8.4.3. Exclusions. The Warrant Agent shall have no responsibility with
respect to the validity of this Agreement or with respect to the validity or
execution of any Warrant (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Warrant; nor shall it be responsible to make any
adjustments required under the provisions of Section 4 hereof or responsible for
the manner, method, or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment; nor shall it by any
act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock to be issued pursuant
to this Agreement or any Warrant or as to whether any shares of Common Stock
will when issued be valid and fully paid and nonassessable.

     8.5. Acceptance of Agency. The Warrant Agent hereby accepts the agency
established by this Agreement and agrees to perform the same upon the terms and
conditions herein set forth and among other things, shall account promptly to
the Company with respect to Warrants exercised and concurrently account for, and
pay to the Company, all moneys received by the Warrant Agent for the purchase of
shares of Common Stock through the exercise of Warrants.

     9.   Miscellaneous Provisions.

     9.1. Successors. All the covenants and provisions of this Agreement by or
for the benefit of the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns.

     9.2. Notices. Any notice, statement or demand authorized by this Warrant
Agreement to be given or made by the Warrant Agent or by the holder of any
Warrant to or on the Company shall be sufficiently given when so delivered if by
hand or overnight delivery or if sent by certified mail or private courier
service within five days after deposit of such notice, postage prepaid,
addressed (until another address is filed in writing by the Company with the
Warrant Agent), as follows:

                           Jaguar Acquisition Corporation
                           1200 River Road, Suite 1302
                           Conshohocken, Pennsylvania 19428
                           Attn: Chairman

Any notice, statement or demand authorized by this Agreement to be given or made
by the holder of any Warrant or by the Company to or on the Warrant Agent shall
be sufficiently given when so delivered if by hand or overnight delivery or if
sent by certified mail or private courier service within five days after deposit

                                       12

of such notice, postage prepaid, addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:

                           Continental Stock Transfer & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn: Compliance Department

with a copy in each case to:

                           Greenburg Traurig, LLP
                           Met Life Building
                           200 Park Avenue
                           New York, New York 10166
                           Attn: Alan I. Annex, Esq.

and

                           Graubard Miller
                           The Chrysler Building
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn: David Alan Miller, Esq.

and

                           EarlyBirdCapital, Inc.
                           275 Madison Avenue, Suite 1203
                           New York, New York 10016
                           Attn: Steven Levine

     9.3. Applicable law. The validity, interpretation, and performance of this
Agreement and of the Warrants shall be governed in all respects by the laws of
the State of New York, without giving effect to conflicts of law principles that
would result in the application of the substantive laws of another jurisdiction.
The Company 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, 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
inconvenience forum. Any such 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

                                       13

9.2 hereof. Such mailing shall be deemed personal service and shall be legal and
binding upon the Company in any action, proceeding or claim.

     9.4. Persons Having Rights under this Agreement. Nothing in this Agreement
expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or
corporation other than the parties hereto and the registered holders of the
Warrants and, for the purposes of Sections 6.1, 6.4, 7.4 and 9.2 hereof, EBC,
any right, remedy, or claim under or by reason of this Warrant Agreement or of
any covenant, condition, stipulation, promise, or agreement hereof. EBC shall be
deemed to be a third-party beneficiary of this Agreement with respect to
Sections 6.1, 6.4, 7.4 and 9.2 hereof. All covenants, conditions, stipulations,
promises, and agreements contained in this Warrant Agreement shall be for the
sole and exclusive benefit of the parties hereto (and EBC with respect to the
Sections 6.1, 6.4, 7.4 and 9.2 hereof) and their successors and assigns and of
the registered holders of the Warrants.

     9.5. Examination of the Warrant Agreement. A copy of this Agreement shall
be available at all reasonable times at the office of the Warrant Agent in the
Borough of Manhattan, City and State of New York, for inspection by the
registered holder of any Warrant. The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

     9.6. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

     9.7. Effect of Headings. The Section headings herein are for convenience
only and are not part of this Warrant Agreement and shall not affect the
interpretation thereof.

                                       14

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the day and year first above written.

                         JAGUAR ACQUISITION CORPORATION

                         By:
                             ------------------------------
                             Name:  Jonathan Kalman
                             Title: Chairman and Chief Executive Officer

                         CONTINENTAL STOCK TRANSFER
                           & TRUST COMPANY

                         By:
                             -------------------------------
                             Name:  Steven Nelson
                             Title: Chairman

                                       15

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