Document:

Exhibit
10.20

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights Agreement (the “Agreement”) is made and
entered into as of this 27th day of June, 2006 by and among Trans World
Corporation, a Nevada corporation (the “Company”), and Special Situations
Private Equity Fund, L.P., a Delaware limited partnership, and Special
Situations Cayman Fund, L.P., a Delaware limited partnership (together, the “Investors”).

The parties hereby agree as follows:

1.     Certain Definitions.

As used in this Agreement, the following terms shall have the following
meanings:

“Affiliate” means, with respect to any person, any other person
which directly or indirectly controls, is controlled by, or is under common
control with, such person.

“Business Day” means a day, other than a Saturday or Sunday, on
which banks in New York City are open for the general transaction of business.

“Common Stock” shall mean the Company’s common stock, par value $0.001
per share, and any securities into which such shares may hereinafter be
reclassified.

“Investors” shall mean the Investors identified in the first
paragraph of this Agreement and any Affiliate or permitted transferee of any
Investor who is a subsequent holder of any Registrable Securities.

“Prospectus” shall mean (i) the prospectus included in any
Registration Statement, as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such prospectus, and
(ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

“Register,” “registered” and “registration” refer
to a registration made by preparing and filing a Registration Statement or
similar document in compliance with the 1933 Act (as defined below), and the
declaration or ordering of effectiveness of such Registration Statement or
document.

“Registrable Securities” shall mean (i) the Shares and (ii) any
other securities issued or issuable with respect to or in exchange for
Registrable Securities; provided, that, a security shall cease to be a
Registrable Security upon (A) sale pursuant to a Registration Statement or Rule
144 under the 1933 Act, or (B) such security becoming eligible for sale by the
Investors pursuant to Rule 144(k).

“Registration Statement” shall mean the Registration Statement
on Form SB-2 (SEC File No. 333-134766) of the Company filed with the SEC on
June 6, 2006 under the 1933 Act that covers the resale of any of the
Registrable Securities pursuant to the provisions of this Agreement, all amendments
and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

 

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“SEC” means the U.S. Securities and Exchange Commission.

“Shares” means the shares of Common Stock issued. pursuant to
the Subscription Agreements.

“Subscription Agreements” means the several Subscription
Agreements, each dated December 22, 2005, by and between the Company and each
of the Investors.

“1933 Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

“1934 Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

2.     Registration.

(a)           Registration Statements.  Pursuant to of Section 2.3 of the
Subscription Agreements, the Company was obligated to prepare and file with the
SEC the Registration Statement to effect the registration for resale of the
Registrable Securities, which the Company filed on June 6, 2006.  Subject to any SEC comments, such
Registration Statement will, at the time it is declared effective and at all
relevant times thereafter, include the plan of distribution in a form
substantially as attached hereto as Exhibit A.  Such Registration Statement also shall cover,
to the extent allowable under the 1933 Act and the rules promulgated thereunder
(including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with
respect to the Registrable Securities.

(b)          Expenses.  The Company will pay all expenses associated
with each registration, including filing and printing fees, the Company’s
counsel and accounting fees and expenses, costs associated with clearing the
Registrable Securities for sale under applicable state securities laws, and listing
fees, but excluding discounts, commissions, fees of underwriters, selling
brokers, dealer managers or similar securities industry professionals with
respect to the Registrable Securities being sold.  The Investors will promptly inform the
Company of the states in which any offers or sales of the Registrable
Securities are expected to be made on their behalf to permit the Company to
conduct the appropriate “blue sky” investigation and to make all necessary or
appropriate blue sky filings.

(c)           Effectiveness.

(i)            The Company shall use commercially
reasonable efforts to have the Registration Statement declared effective as
soon as practicable.  The Company shall
notify the Investors by facsimile or e-mail as promptly as practicable, and in
any event, within twenty-four (24) hours, after any Registration Statement is
declared effective and shall simultaneously provide the Investors with copies
of any related Prospectus to be used in connection with the sale or other
disposition of the securities covered thereby.

(ii)           For not more than twenty (20)
consecutive days or for a total of not more than forty-five (45) days in any
twelve (12) month period, the Company may delay the disclosure of material
non-public information concerning the Company, by suspending the use of any
Prospectus included in any registration contemplated by this Section containing
such 

 

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information, the disclosure of which at the time is not, in the good
faith opinion of the Company, in the best interests of the Company (an “Allowed
Delay”); provided, that the Company shall promptly (a) notify the Investors in
writing of the existence of (but in no event, without the prior written consent
of an Investor, shall the Company disclose to such Investor any of the facts or
circumstances regarding) material non-public information giving rise to an
Allowed Delay, (b) advise the Investors in writing to cease all sales under the
Registration Statement until the end of the Allowed Delay and (c) use
commercially reasonable efforts to terminate an Allowed Delay as promptly as
practicable.

3.     Company Obligations. 
The Company will use commercially reasonable efforts to effect the
registration of the Registrable Securities in accordance with the terms hereof,
and pursuant thereto the Company will, as expeditiously as possible:

(a)           use commercially reasonable efforts
to cause such Registration Statement to become effective and to remain
continuously effective for a period that will terminate upon the earliest of
(i) the date on which all Registrable Securities covered by such Registration
Statement as amended from time to time, have been sold, (ii) the date on which
all Registrable Securities covered by such Registration Statement may be sold
pursuant to Rule 144(k) and (iii) December 31, 2007 (the “Effectiveness Period”)
and advise the Investors in writing when the Effectiveness Period has expired;

(b)          prepare and file with the SEC such
amendments and post-effective amendments to the Registration Statement and the
Prospectus as may be necessary to keep the Registration Statement effective for
the Effectiveness Period and to comply with the provisions of the 1933 Act and
the 1934 Act with respect to the distribution of all of the Registrable Securities
covered thereby;

(c)           provide copies to and permit counsel
designated by the Investors to review each Registration Statement and all
amendments and supplements thereto no fewer than three (3) Business Days prior
to their filing with the SEC and not file any document to which such counsel
reasonably objects;

(d)          furnish to the Investors and their
legal counsel (i) promptly after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company (but not later than two (2)
Business Days after the filing date, receipt date or sending date, as the case
may be) one (1) copy of any Registration Statement and any amendment thereto,
each preliminary prospectus and Prospectus and each amendment or supplement
thereto, and each letter written by or on behalf of the Company to the SEC or
the staff of the SEC, and each item of correspondence from the SEC or the staff
of the SEC, in each case relating to such Registration Statement (other than
any portion of any thereof which contains information for which the Company has
sought confidential treatment), and (ii) such number of copies of a Prospectus,
including a preliminary prospectus, and all amendments and supplements thereto
and such other documents as each Investor may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such Investor
that are covered by the related Registration Statement;

 

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(e)           use commercially reasonable efforts
to (i) prevent the issuance of any stop order or other suspension of
effectiveness and, (ii) if such order is issued, obtain the withdrawal of any
such order at the earliest possible moment;

(f)           prior to any public offering of
Registrable Securities, use commercially reasonable efforts to register or
qualify Registrable Securities for offer and sale under the securities or blue
sky laws of such jurisdictions requested by the Investors and do any and all
other commercially reasonable acts or things necessary or advisable to enable
the distribution in such jurisdictions of the Registrable Securities covered by
the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as a
condition thereto to (i) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(f), (ii)
subject itself to general taxation in any jurisdiction where it would not
otherwise be so subject but for this Section 3(f), or (iii) file a general
consent to service of process in any such jurisdiction;

(g)          use commercially reasonable efforts to
cause all Registrable Securities covered by a Registration Statement to be
listed on each securities exchange, interdealer quotation system or other market
on which similar securities issued by the Company are then listed;

(h)          immediately notify the Investors, at
any time prior to the end of the Effectiveness Period, upon discovery that, or
upon the happening of any event as a result of which, the Prospectus includes
an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, and promptly prepare,
file with the SEC and furnish to such holder a supplement to or an amendment of
such Prospectus as may be necessary so that such Prospectus shall not include
an untrue statement of a material fact or omit 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; and

(i)            otherwise use commercially
reasonable efforts to comply with all applicable rules and regulations of the
SEC under the 1933 Act and the 1934 Act, including, without limitation, Rule
172 (c)(1)-(3) under the 1933 Act, file any final Prospectus, including any
supplement or amendment thereof, with the SEC pursuant to Rule 424 under the
1933 Act, promptly inform the Investors in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions specified in
Rule 172(c)(1)-(3) and, as a result thereof, the Investors are required to
deliver a Prospectus in connection with any disposition of Registrable
Securities and take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder; and make
available to its security holders, as soon as reasonably practicable, but not
later than the Availability Date (as defined below), an earnings statement
covering a period of at least twelve (12) months, beginning after the effective
date of each Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the 1933 Act, including Rule 158 promulgated
thereunder (for the purpose of this subsection 3(i), “Availability Date” means
the 45th day following the end of the fourth fiscal quarter that
includes the effective date of such Registration Statement, except that, if
such fourth fiscal quarter is the last quarter of the Company’s fiscal year, “Availability
Date” means the 90th day after the end of such fourth fiscal quarter.

 

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(j)            With
a view to making available to the Investors the benefits of Rule 144 (or its
successor rule) and any other rule or regulation of the SEC that may at any
time permit the Investors to sell shares of Common Stock to the public without
registration, the Company covenants and agrees to:  (i) make and keep public information available,
as those terms are understood and defined in Rule 144, until the earlier of (A)
six months after such date as all of the Registrable Securities may be resold
pursuant to Rule 144(k) or any other rule of similar effect or (B) such date as
all of the Registrable Securities shall have been resold; (ii) file with the
SEC in a timely manner all reports and other documents required of the Company
under the 1934 Act; and (iii) furnish to each Investor upon request, as long as
such Investor owns any Registrable Securities, (A) a written statement by the
Company that it has complied with the reporting requirements of the 1934 Act,
(B) a copy of the Company’s most recent Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, and (C) such other information as may be reasonably
requested in order to avail such Investor of any rule or regulation of the SEC
that permits the selling of any such Registrable Securities without
registration.

 

        4.     Due Diligence
Review; Information. Subject to the execution and delivery of a mutually
acceptable confidentiality agreement, the Company shall make available, during
normal business hours, for inspection and review by the Investors, advisors to
and representatives of the Investors (who may or may not be affiliated with the
Investors and who are reasonably acceptable to the Company), all financial and
other records, all SEC filings, and all other corporate documents and
properties of the Company as may be reasonably necessary for the purpose of
such review, and cause the Company’s officers, directors and employees, within
a reasonable time period, to supply all such information reasonably requested
by the Investors or any such representative, advisor or underwriter in
connection with such Registration Statement (including, without limitation, in
response to all questions and other inquiries reasonably made or submitted by
any of them), prior to and from time to time after the filing and effectiveness
of the Registration Statement for the sole purpose of enabling the Investors
and such representatives, advisors and underwriters and their respective
accountants and attorneys to conduct initial and ongoing due diligence with
respect to the Company and the accuracy of such Registration Statement.

                                The Company
shall not disclose material nonpublic information to the Investors, or to
advisors to or representatives of the Investors, unless prior to disclosure of
such information the Company identifies such information as being material
nonpublic information and provides the Investors, such advisors and
representatives with the opportunity to accept or refuse to accept such
material nonpublic information for review and any Investor wishing to obtain
such information enters into an appropriate confidentiality agreement with the
Company with respect thereto.

5.     Obligations of the Investors.

(a)           Each Investor shall furnish in
writing to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the
registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request.  At least five (5) Business Days prior to the
first anticipated filing date of any Registration Statement, the Company shall
notify each 

 

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Investor of the information the Company requires from such Investor if
such Investor elects to have any of the Registrable Securities included in the
Registration Statement.  An Investor
shall provide such information to the Company at least two (2) Business Days
prior to the first anticipated filing date of such Registration Statement if
such Investor elects to have any of the Registrable Securities included in the
Registration Statement.

(b)          Each Investor, by its acceptance of
the Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless such Investor has notified the Company
in writing of its election to exclude all of its Registrable Securities from
such Registration Statement.

(c)           Each Investor agrees that, upon
receipt of any notice from the Company of either (i) the commencement of an
Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event
pursuant to Section 3(h) hereof, such Investor will immediately discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities, until the Investor is advised by the
Company that such dispositions may again be made.

6.     Indemnification.

(a)           Indemnification by the Company.  The Company will indemnify and hold harmless
each Investor and its officers, directors, members, employees and agents,
successors and assigns, and each other person, if any, who controls such
Investor within the meaning of the 1933 Act, against any losses, claims,
damages or liabilities, joint or several, to which they may become subject
under the 1933 Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of any material fact contained
in any Registration Statement, any preliminary Prospectus or final Prospectus,
or any amendment or supplement thereof; (ii) any blue sky application or other
document executed by the Company specifically for that purpose or based upon
written information furnished by the Company filed in any state or other
jurisdiction in order to qualify any or all of the Registrable Securities under
the securities laws thereof (any such application, document or information
herein called a “Blue Sky Application”); (iii) the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading; (iv) any violation by the Company or its
agents of any rule or regulation promulgated under the 1933 Act applicable to
the Company or its agents and relating to action or inaction required of the
Company in connection with such registration; or (v) any failure to register or
qualify the Registrable Securities included in any such Registration in any
state where the Company or its agents has affirmatively undertaken or agreed in
writing that the Company will undertake such registration or qualification on
an Investor’s behalf and will reimburse such Investor, and each such officer,
director or member and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable in any such case if and to the extent that
any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so

 

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made in conformity with information furnished by such Investor or any
such controlling person in writing specifically for use in such Registration
Statement or Prospectus.

(b)          Indemnification by the Investors.  Each Investor agrees, severally but not jointly,
to indemnify and hold harmless, to the fullest extent permitted by law, the
Company, its directors, officers, employees, agents, stockholders, successors
and assigns and each person who controls the Company (within the meaning of the
1933 Act) against any losses, claims, damages, liabilities and expense
(including reasonable attorney fees) resulting from any untrue statement of a
material fact or any omission of a material fact required to be stated in the
Registration Statement or Prospectus or preliminary Prospectus or amendment or
supplement thereto or necessary to make the statements therein not misleading,
to the extent, but only to the extent that such untrue statement or omission is
contained, in any information furnished in writing by such Investor to the
Company specifically for inclusion in such Registration Statement or Prospectus
or amendment or supplement thereto.  In
no event shall the liability of an Investor be greater in amount than the
dollar amount of the proceeds (net of all expense paid by such Investor in
connection with any claim relating to this Section 6 and the amount of any
damages such Investor has otherwise been required to pay by reason of such
untrue statement or omission) received by such Investor upon the sale of the Registrable
Securities included in the Registration Statement giving rise to such
indemnification obligation.

(c)           Conduct of Indemnification
Proceedings.  Any person entitled to
indemnification hereunder shall (i) give prompt notice to the indemnifying party
of any claim with respect to which it seeks indemnification and (ii) permit
such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ
separate counsel and to participate in the defense of such claim, but the fees
and expenses of such counsel shall be at the expense of such person unless (a)
the indemnifying party has agreed to pay such fees or expenses, or (b) the
indemnifying party shall have failed to assume the defense of such claim and
employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its counsel, a
conflict of interest exists between such person and the indemnifying party with
respect to such claims (in which case, if the person notifies the indemnifying
party in writing that such person elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the
right to assume the defense of such claim on behalf of such person); and provided,
further, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such
claim or litigation.  It is understood
that the indemnifying party shall not, in connection with any proceeding in the
same jurisdiction, be liable for fees or expenses of more than one separate
firm of attorneys at any time for all such indemnified parties.  No indemnifying party will, except with the
consent of the indemnified party, consent to entry of any judgment or enter
into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect of such claim or litigation.

(d)          Contribution.  If for any reason the indemnification
provided for in the preceding paragraphs (a) and (b) is unavailable to an
indemnified party or insufficient to hold

 

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it harmless, other than as expressly specified therein, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such loss, claim, damage or liability in such
proportion as is appropriate to reflect the relative fault of the indemnified party
and the indemnifying party, as well as any other relevant equitable
considerations.  No person guilty of
fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person not guilty of such
fraudulent misrepresentation.  In no
event shall the contribution obligation of a holder of Registrable Securities
be greater in amount than the dollar amount of the proceeds (net of all
expenses paid by such holder in connection with any claim relating to this
Section 6 and the amount of any damages such holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission) received by it upon the sale of the Registrable Securities
giving rise to such contribution obligation.

7.     Miscellaneous.

(a)           Amendments and Waivers.  This Agreement may be amended only by a
writing signed by the Company and the Investors.  The Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company shall have obtained the written consent to such amendment,
action or omission to act, of the Investors.

(b)          Notices.  All notices and other communications provided
for or permitted hereunder shall be made as set forth in Sections 1 and 5 of
the signature pages to the Subscription Agreements.

(c)           Assignments and Transfers by
Investors.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the Investors and
their respective successors and assigns. 
An Investor may transfer or assign, in whole or from time to time in
part, to one or more persons its rights hereunder in connection with the
transfer of Registrable Securities by such Investor to such person, provided
that such Investor complies with all laws applicable thereto and provides
written notice of assignment to the Company promptly after such assignment is
effected.

(d)          Assignments and Transfers by the
Company.  This Agreement may not be
assigned by the Company without the prior written consent of the Investors,
provided, however, that the Company may assign its rights and delegate its
duties hereunder to any surviving or successor corporation in connection with a
merger or consolidation of the Company with another corporation, or a sale,
transfer or other disposition of all or substantially all of the Company’s
assets to another corporation, without the prior written consent of the
Investors, after notice duly given by the Company to each Investor.

(e)           Benefits of the Agreement.  The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective permitted
successors and assigns of the parties. 
Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement.

 

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(f)           Counterparts; Faxes.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This Agreement may also be executed via
facsimile, which shall be deemed an original.

(g)          Titles and Subtitles.  The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

(h)          Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof but shall be interpreted as if it
were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.  To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders
any provisions hereof prohibited or unenforceable in any respect.

(i)            Further Assurances.  The parties shall execute and deliver all
such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to
evidence the fulfillment of the agreements herein contained.

(j)            Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. 
This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

(k)           Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial. 
This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to the choice of law
principles thereof.  Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts of the
State of New York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and
the transactions contemplated hereby. 
Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this Agreement.  Each of the parties hereto irrevocably
consents to the jurisdiction of any such court in any such suit, action or
proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding brought
in such courts and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.
 EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

 

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                                IN WITNESS
WHEREOF, the parties have executed this Agreement or caused their duly
authorized officers to execute this Agreement as of the date first above
written.

 

 

	
  The Company:

  	
  TRANS WORLD CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: /s/ Rami S. Ramadan

  	
   

  
	
   

  	
  Name: Rami S. Ramadan

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
  The Investors:

  	
  SPECIAL SITUATIONS CAYMAN FUND, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: /s/ Austin W. Marxe

  	
   

  
	
   

  	
  Name: Austin W. Marxe

  
	
   

  	
  Title: General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPECIAL SITUATIONS PRIVATE EQUITY FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Austin W. Marxe

  	
   

  
	
   

  	
  Name: Austin W. Marxe

  
	
   

  	
  Title: General Partner

  

 

 

10

 

Exhibit A

 

Plan of Distribution

 

                The Investors, which as used
herein includes donees, pledgees, transferees or other successors-in-interest
selling shares of common stock or interests in shares of common stock received
after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell,
transfer or otherwise dispose of any or all of their shares of common stock or
interests in shares of common stock on any stock exchange, market or trading
facility on which the shares are traded or in private transactions.  These dispositions may be at fixed prices, at
prevailing market prices at the time of sale, at prices related to the
prevailing market price, at varying prices determined at the time of sale, or
at negotiated prices.

 

                The selling stockholders may use
any one or more of the following methods when disposing of shares or interests
therein:

 

                - ordinary brokerage
transactions and transactions in which the broker-dealer solicits purchasers;

 

                - block trades in which the
broker-dealer will attempt to sell the shares as agent, but may position and
resell a portion of the block as principal to facilitate the transaction;

 

                - purchases by a broker-dealer
as principal and resale by the broker-dealer for its account;

 

                - an exchange distribution in
accordance with the rules of the applicable exchange;

 

                - privately negotiated
transactions;

 

                - short sales effected after the
date the registration statement of which the Prospectus is a part is declared
effective by the SEC;

 

                - through the writing or
settlement of options or other hedging transactions, whether through an options
exchange or otherwise;

 

                - broker-dealers may agree with
the selling stockholders to sell a specified number of such shares at a
stipulated price per share; and

 

                - a combination of any such
methods of sale.

 

                The selling stockholders may,
from time to time, pledge or grant a security interest in some or all of the
shares of common stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell
the shares of common stock, from time to time, under this prospectus, or under
an amendment to this prospectus under Rule 424(b)(3) or other applicable
provision of the Securities Act amending the list of selling stockholders to
include the pledgee, transferee or other successors in interest as 

 

11

 

selling
stockholders under this prospectus.  The
selling stockholders also may transfer the shares of common stock in other
circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.

 

                In connection with the sale of
our common stock or interests therein, the selling stockholders may enter into
hedging transactions with broker-dealers or other financial institutions, which
may in turn engage in short sales of the common stock in the course of hedging
the positions they assume.  The selling
stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities.  The selling stockholders may also enter into
option or other transactions with broker-dealers or other financial
institutions or the creation of one or more derivative securities which require
the delivery to such broker-dealer or other financial institution of shares
offered by this prospectus, which shares such broker-dealer or other financial
institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction).

 

                The aggregate proceeds to the selling stockholders
from the sale of the common stock offered by them will be the purchase price of
the common stock less discounts or commissions, if any.  Each of the selling stockholders reserves the
right to accept and, together with their agents from time to time, to reject,
in whole or in part, any proposed purchase of common stock to be made directly
or through agents.  We will not receive
any of the proceeds from this offering.

 

                The selling stockholders also
may resell all or a portion of the shares in open market transactions in
reliance upon Rule 144 under the Securities Act of 1933, provided that they
meet the criteria and conform to the requirements of that rule.

 

                The selling stockholders and any underwriters,
broker-dealers or agents that participate in the sale of the common stock or
interests therein may be “underwriters” within the meaning of Section 2(11) of
the Securities Act.  Any discounts,
commissions, concessions or profit they earn on any resale of the shares may be
underwriting discounts and commissions under the Securities Act.  Selling stockholders who are “underwriters”
within the meaning of Section 2(11) of the Securities Act will be subject to
the prospectus delivery requirements of the Securities Act.

 

                To the extent required, the
shares of our common stock to be sold, the names of the selling stockholders,
the respective purchase prices and public offering prices, the names of any
agents, dealer or underwriter, any applicable commissions or discounts with
respect to a particular offer will be set forth in an accompanying prospectus
supplement or, if appropriate, a post-effective amendment to the registration
statement that includes this prospectus.

 

                In order to comply with the securities laws of some
states, if applicable, the common stock may be sold in these jurisdictions only
through registered or licensed brokers or dealers.  In addition, in some states the common stock
may not be sold unless it has been registered or qualified for sale or an
exemption from registration or qualification requirements is available and is
complied with.

 

12

 

                We have advised the selling stockholders that the
anti-manipulation rules of Regulation M under the Exchange Act may apply to
sales of shares in the market and to the activities of the selling stockholders
and their affiliates.  In addition, to
the extent applicable we will make copies of this prospectus (as it may be
supplemented or amended from time to time) available to the selling
stockholders for the purpose of satisfying the prospectus delivery requirements
of the Securities Act.  The selling
stockholders may indemnify any broker-dealer that participates in transactions
involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities Act.

 

                We have agreed to indemnify the selling stockholders
against liabilities, including liabilities under the Securities Act and state
securities laws, relating to the registration of the shares offered by this
prospectus.

 

                We have agreed with the selling stockholders to keep
the registration statement of which this prospectus constitutes a part
effective until the earliest of (1) such time as all of the shares covered by
this prospectus have been disposed of pursuant to and in accordance with the
registration statement, (2) the date on which the shares may be sold pursuant
to Rule 144(k) of the Securities Act or (3) December 31, 2007.

 

13Exhibit
10.21

FORM

OF

AMENDMENT

TO

SELLING
STOCKHOLDER AGREEMENT

 

                THIS
AMENDMENT (“Amendment) is by and between Trans World Corporation, a Nevada
corporation (the “Company”), and the undersigned (the “Selling Stockholder”).

 

                WHEREAS, the Company and the Selling Stockholder entered
into a Selling Stockholder Agreement (the “Selling Stockholder Agreement”) for
the sale of a number of unregistered shares of the Common Stock of the Company;

 

                WHEREAS, the Company and the Selling Stockholder desire to
amend the Selling Stockholder Agreement hereby;

 

                NOW, THEREFORE, in consideration of the mutual promises and
agreements contained herein and for other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the Company and the
Selling Stockholder do hereby covenant and agree as follows:

 

                1.  This Amendment amends the Selling Stockholder
Agreement pursuant to Section 19 of the Selling Stockholder Agreement and is
approved, adopted and effectuated in accordance therewith.

 

                2.  Unless defined herein or unless the context
shall require otherwise, all defined terms contained in the Selling Stockholder
Agreement shall have the same respective meanings in this Amendment as such
defined terms are given in the Selling Stockholder Agreement.  Terms defined in this Amendment and not
defined in the Selling Stockholder Agreement shall have the meanings set forth
herein.

 

                3.  As used in this Amendment, except as
otherwise expressly provided or unless the context shall otherwise require:  (a) this “Amendment” means this instrument as
originally executed or as it may, from time to time, be amended as permitted
pursuant to the applicable provisions of the Selling Stockholder Agreement; and
(b) all references in this Amendment to “Sections” and other subdivisions are
to the designated sections and other subdivisions of this Amendment as
originally executed.

 

                4.  Except as amended by this Amendment, the
Selling Stockholder Agreement shall remain in full force and effect as to the
matters covered therein.

 

                5.  All covenants and agreements in this
Amendment by the Company and the Selling Stockholder shall bind the Company and
the Selling Stockholder and their respective successors and permitted assigns.

 

 

 

                6.  Nothing in this Amendment or in the Selling
Stockholder Agreement, express or implied, shall give any person or entity,
other than the parties hereto and their respective successors and permitted
assigns, any benefit or any legal or equitable rights, remedy or claim under
this Amendment.

 

                7.  The Company and the Selling Stockholder
hereby agree to amend the Selling Stockholder Agreement as follows:

 

                                a.
There shall be added to Section 2 of the Selling Stockholder Agreement the
following subsection (i):

 

“(i)  With a view to making available
to the Selling Stockholder the benefits of Rule 144 (or its successor rule) and
any other rule or regulation of the SEC that may at any time permit the Selling
Stockholder to sell shares of the Registrable Securities to the public without
registration, the Company covenants and agrees to:  (i) make and keep public information
available, as those terms are understood and defined in Rule 144, until the
earlier of (A) six months after such date as all of the Registrable Securities
may be resold pursuant to Rule 144(k) or any other rule of similar effect or
(B) such date as all of the Registrable Securities shall have been resold; (ii)
file with the SEC in a timely manner all reports and other documents required
of the Company under the Securities Exchange Act of 1934, as amended (the “1934
Act”); and (iii) furnish to each Selling Stockholder upon request, as long as
such Selling Stockholder owns any Registrable Securities, (A) a written
statement by the Company that it has complied with the reporting requirements
of the 1934 Act, (B) a copy of the Company’s most recent Annual Report on Form
10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be
reasonably requested in order to avail such Selling Stockholder of any rule or
regulation of the SEC that permits the selling of any such Registrable
Securities without registration.”

 

 

                                b.
The first sentence of Section 5(c) of the Selling Stockholder Agreement shall
be deleted in its entirety and replaced with:

 

“The
Selling Stockholder hereby acknowledges receipt of the Company’s Insider
Trading Policy, a copy of which is attached hereto as Exhibit B.”

 

                                c.
After the last sentence in Section 5(c) of the Selling Stockholder Agreement,
there shall be added the following:

 

“For not more than twenty (20) consecutive
days or for a total of not more than forty-five (45) days in any twelve (12)
month period, the Company may delay the disclosure of material non-public
information concerning the Company, by suspending the use of any Prospectus
included in any registration contemplated by this Section containing such
information, the disclosure of which at the time is not, in the good faith
opinion of the Company, in the best interests of the Company (an “Allowed Delay”);
provided, that the Company shall promptly (i) notify the Selling Stockholder in
writing of

 

2

 

the existence of (but in no event, without
the prior written consent of the Selling Stockholder, shall the Company
disclose to such Selling Stockholder any of the facts or circumstances
regarding) material non-public information giving rise to an Allowed Delay, (ii)
advise the Selling Stockholder in writing to cease all sales under the
Registration Statement until the end of the Allowed Delay and (iii) use
commercially reasonable efforts to terminate an Allowed Delay as promptly as
practicable.”

                                d.
After the last sentence in Section 7(b), there shall be added the following:

 

“In
no event shall the liability of the Selling Stockholder be greater in amount
than the dollar amount of the proceeds (net of all expense paid by such Selling
Stockholder in connection with any claim relating to this Section 7 and the
amount of any damages such Selling Stockholder has otherwise been required to
pay by reason of such untrue statement or omission) received by such Selling
Stockholder upon the sale of the Registrable Securities included in the
Registration Statement giving rise to such indemnification obligation.”

 

                                e.
There shall be added to Section 7 the following subsection (e):

 

“(e)  If for any reason the indemnification
provided for in the preceding paragraphs (a) and (b) is unavailable to an
indemnified party or insufficient to hold it harmless, other than as expressly
specified therein, then the indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect the
relative fault of the indemnified party and the indemnifying party, as well as
any other relevant equitable considerations. 
No person guilty of fraudulent misrepresentation within the meaning of
Section 11(f) of the Securities Act shall be entitled to contribution from any
person not guilty of such fraudulent misrepresentation.  In no event shall the contribution obligation
of a holder of Registrable Securities be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such holder in connection
with any claim relating to this Section 7 and the amount of any damages such
holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission) received by it upon the sale
of the Registrable Securities giving rise to such contribution obligation.”

 

                8.  The Company and the Selling Stockholder
hereby ratify and reaffirm all of the terms and conditions of the Selling
Stockholder Agreement as specifically amended hereby by this Amendment.  No changes, modifications or additions are
made to the Selling Stockholder Agreement other than as set forth herein.

 

                9.  This Amendment may be executed in
counterparts, all of which shall constitute one and the same instrument and
each of which shall be, and shall be deemed to be, an original.

 

 

[SIGNATURES APPEAR ON

NEXT PAGE.]

 

3

 

SIGNATURE
PAGE

 

                The
parties have caused this Amendment to the Selling Stockholder Agreement to be
duly executed and delivered by the Company and the individual stockholder or by
its duly authorized officers or representatives as of the date and year set
forth below.

 

 

	
  COMPANY:

  	
  TRANS
  WORLD CORPORATION

  
	
   

  	
  545 Fifth Avenue

  
	
   

  	
  Suite 940

  
	
   

  	
  New York, New York 10017

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  
	
  Name:

  	
   

  
	
   

  
	
  Title:

  	
   

  
	
   

  
	
  Date:          ,
  2006

  
	
   

  
	
  SELLING STOCKHOLDER

  
	
   

  
	
  Name of 

  
	
  Selling

  
	
  Stockholder:

  	
   

  
	
   

  	
  (Please Print)

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  (Sign Here)

  
	
   

  
	
  By:

  	
   

  
	
  (Sign
  Here. If the Registrable Securities are held by more than one person or
  entity, all such persons or entities must sign. For individuals in community
  property states, your spouse must sign here even if the spouse is not a
  registered or beneficial owner.)

  
	
   

  
	
  Title:

  	
   

  
	
   

  
	
  Date:          ,
  2006

  
					

 

 

 

 

4

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