Document:

Exhibit
10.3

SECURITIES ESCROW AGREEMENT

SECURITIES ESCROW AGREEMENT, dated as of                             ,
2007 (this “Agreement”) by and among Arcade Acquisition Corp., a Delaware
corporation (the “Company”), the undersigned parties listed as Initial
Stockholders on the signature page hereto (collectively, the “Initial
Stockholders”) and Continental Stock Transfer & Trust Company, a New York
corporation (the “Escrow Agent”).

WHEREAS, the Company has entered into an Underwriting
Agreement, dated                ,
2007 (the “Underwriting Agreement”) with Morgan Joseph & Co. Inc. (“Morgan
Joseph”), as representative of the underwriters named therein (collectively,
the “Underwriters”), pursuant to which, among other matters, the Underwriters
have agreed to purchase 7,500,000 units (the “Units”) of the Company. Each Unit
consists of one share of the Company’s common stock, par value $.0001 per share
(the “Common Stock”), and one warrant, each warrant to purchase one share of
Common Stock, all as more fully described in the Company’s definitive
Prospectus, dated                  ,
2007 (the “Prospectus”) comprising part of the Company’s Registration Statement
on Form S-1 (File No. 333-140814) under the Securities Act of 1933, as amended
(the “Registration Statement”), declared effective on                      ,
2007 (the “Effective Date”); and

WHEREAS, the Initial Stockholders have agreed, as a
condition of the Underwriters’ obligation to purchase the Units pursuant to the
Underwriting Agreement and to offer them to the public, to deposit all of their
shares of Common Stock as set forth opposite their respective names in Schedule
A attached hereto (collectively the “Escrow Shares”), in escrow as
hereinafter provided; and

WHEREAS, the Company has entered into a Warrant
Purchase Agreement with one of the Initial Stockholders (the “Initial
Warrantholder”), dated                    ,
2007 (the “Warrant Purchase Agreement”), pursuant to which the Initial
Warrantholder has agreed to purchase 2,000,000 warrants (the “Founding Director
Warrants”) in a private placement transaction;

WHEREAS, the Initial Warrantholder has agreed as a
condition of the sale of the Founding Director Warrants to deposit the Founding
Director Warrants (together with the Escrow Shares, the “Escrow Securities”),
with the Escrow Agent as hereinafter provided; and

WHEREAS, the Company and the Initial Stockholders
(such term as used herein includes the Initial Warrantholder) desire that the
Escrow Agent accept the Escrow Securities, in escrow, to be held and disbursed
as hereinafter provided.

NOW, THEREFORE, IT IS AGREED:

1.             Appointment of Escrow Agent. The Company
and the Initial Stockholders hereby appoint the Escrow Agent to act in
accordance with and subject to the terms of

this Agreement and the Escrow Agent hereby accepts
such appointment and agrees to act in accordance with and subject to such
terms.

2.             Deposit of Escrow Securities.  On or prior to the Effective Date, the
Initial Stockholders shall deliver to the Escrow Agent certificates representing
their respective Escrow Securities to be held and disbursed subject to the
terms and conditions of this Agreement. Each Initial Stockholder acknowledges
and agrees that the certificates representing his or her Escrow Securities will
bear a legend reflecting the deposit of such Escrow Securities under this
Agreement.

3.             Disbursement of the Escrow Securities.

3.1           Disbursement of the Escrow
Shares.  Except as set forth herein
and in Section 3.3 below, the Escrow Agent shall hold the Escrow Shares until
one year from the closing date of a Business Combination (as such term is
defined in the Registration Statement) (the “Escrow Shares Escrow Period”), on
which date it shall, upon written instructions from each Initial Stockholder,
disburse each Initial Stockholder’s Escrow Shares to such Initial Stockholder; provided,
however, that if the Escrow Agent is notified by the Company pursuant to
Section 6.7 hereof that the Company is being liquidated at any time during the Escrow
Shares Escrow Period, then the Escrow Agent shall promptly destroy the
certificates representing the Escrow Shares; provided  further,
that if, after the Company consummates a Business Combination, it (or the
surviving entity) subsequently consummates a liquidation, merger, stock exchange
or other similar transaction which results in all of its stockholders having
the right to exchange their shares of Common Stock for cash, securities or
other property, then the Escrow Agent will, upon receipt of a notice, executed
by the Chairman, Chief Executive Officer or Chief Financial Officer of the
Company, in form reasonably acceptable to the Escrow Agent, certifying that
such transaction is then being consummated, release the Escrow Shares to the
Initial Stockholders. The Escrow Agent shall have no further duties hereunder
after the disbursement or destruction of the Escrow Shares in accordance with
this Section 3.1.

3.2           The Escrow Agent shall hold
the Founding Director Warrants until such time that the Company consummates a
Business Combination (the “Founding Director Warrants Escrow Period”);
provided, however, that if the Escrow Agent is notified by the Company pursuant
to Section 6.7 hereof that the Company is being liquidated at any time during
the Founding Director Warrants Escrow Period, then immediately prior to the
effectiveness of such liquidation, the Escrow Agent shall promptly destroy the
certificates representing the Founding Director Warrants and the Founding
Director Warrants shall no longer be considered issued and outstanding
securities of the Company. The Escrow Agent shall have no further duties
hereunder after the disbursement or destruction of the Founding Director
Warrants in accordance with this Section 3.2.

3.3           Upon written
instructions from the Company advising that a Business Combination has been
consummated and that public stockholders holding in excess of 20% of the shares
of Common Stock issued pursuant to the Registration Statement exercise the
right to redeem their shares for cash as described in the Registration
Statement, the Escrow Agent will release and deliver to the Company for
cancellation on a pro rata basis certificates representing that number of
Escrow Shares (not to exceed 234,375 in the aggregate) which results in the
Initial Stockholders collectively owning no more than 23.81% of the Company’s
outstanding Common Stock immediately prior to the consummation of the Business
Combination after giving effect to the redemption. Such instructions shall set
forth both the number of shares the Company is redeeming and the number of
Escrow Shares to be delivered to the Company for cancellation.

4.             Rights of Initial Stockholders in Escrow
Shares.

4.1           Voting Rights as a
Stockholder. Subject to the terms of the Insider Letters described in
Section 4.4 hereof and except as herein provided, the Initial Stockholders
shall retain all of their rights as stockholders of the Company during the Escrow
Shares Escrow Period, including, without limitation, the right to vote such
shares.

4.2           Dividends and Other
Distributions in Respect of the Escrow Shares. During the Escrow Shares Escrow
Period, all dividends payable in cash with respect to the Escrow Shares shall
be paid to the Initial Stockholders, but all dividends payable in stock or
other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow
Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow
Shares” shall be deemed to include the Non-Cash Dividends distributed thereon,
if any.

4.3           Restrictions on Transfer.
During the Escrow Shares Escrow Period or the Founding Director Warrants Escrow
Period, as applicable, no sale, transfer or other disposition may be made of
any or all of the Escrow Securities except (i) by gift to a member of Initial
Stockholder’s immediate family or to a trust or other entity, the beneficiary
of which is an Initial Stockholder or a member of an Initial Stockholder’s
immediate family, or (ii) by virtue of the laws of descent and distribution
upon death of any Initial Stockholder, (iii) pursuant to a qualified domestic
relations order; provided, however, that such permitted transfers
may be implemented only upon the respective transferee’s written agreement to
be bound by the terms and conditions of this Agreement and of the Insider
Letter signed by the Initial Stockholder transferring the Escrow Securities.
During the Escrow Shares Escrow Period or the Founding Director Warrants Escrow
Period, as applicable, the Initial Stockholders shall not pledge or grant a
security interest in the Escrow Securities or grant a security interest in
their rights under this Agreement.

4.4           Insider Letters. Each
of the Initial Stockholders has executed a letter agreement with Morgan Joseph
and the Company, dated as indicated on Schedule A hereto, and which is
filed as an exhibit to the Registration Statement (“Insider Letter”),
respecting the rights and obligations of such Initial Stockholder in certain
events, including but not limited to the liquidation of the Company.

5.             Concerning the Escrow Agent.

5.1           Good Faith Reliance.
The Escrow Agent shall not be liable for any action taken or omitted by it in
good faith and in the exercise of its own best judgment, and may rely
conclusively and shall be protected in acting upon any order, notice, demand,
certificate, opinion or advice of counsel (including counsel chosen by the
Escrow Agent), statement, instrument, report or other paper or document (not
only as to its due execution and the validity and effectiveness of its
provisions, but also as to the truth and acceptability of any information
therein contained) which is believed by the Escrow Agent to be genuine and to
be signed or presented by the proper person or persons. The Escrow Agent shall
not be bound by any notice or demand, or any waiver, modification, termination
or rescission of this Agreement unless evidenced by a writing delivered to the
Escrow Agent signed by the proper party or parties and, if the duties or rights
of the Escrow Agent are affected, unless it shall have given its prior written
consent thereto.

5.2           Indemnification. The
Escrow Agent shall be indemnified and held harmless by the Company from and
against any expenses, including counsel fees and disbursements, or loss
suffered by the Escrow Agent in connection with any action, suit or other
proceeding involving any claim which in any way, directly or indirectly, arises
out of or relates to this Agreement, the services of the Escrow Agent
hereunder, or the

Escrow
Securities held by it hereunder, other than expenses or losses arising from the
gross negligence or willful misconduct of the Escrow Agent. Promptly after the
receipt by the Escrow Agent of notice of any demand or claim or the
commencement of any action, suit or proceeding, the Escrow Agent shall notify
the other parties hereto in writing. In the event of the receipt of such
notice, the Escrow Agent, in its sole discretion, may commence an action in the
nature of interpleader in an appropriate court to determine ownership or disposition
of the Escrow Securities or it may deposit the Escrow Securities with the clerk
of any appropriate court or it may retain the Escrow Securities pending receipt
of a final, non appealable order of a court having jurisdiction over all of the
parties hereto directing to whom and under what circumstances the Escrow
Securities are to be disbursed and delivered. The provisions of this Section
5.2 shall survive in the event the Escrow Agent resigns or is discharged
pursuant to Sections 5.5 or 5.6 below.

5.3           Compensation. The
Escrow Agent shall be entitled to reasonable compensation from the Company for
all services rendered by it hereunder, as set forth on Exhibit A hereto. The
Escrow Agent shall also be entitled to reimbursement from the Company for all expenses
paid or incurred by it in the administration of its duties hereunder including,
but not limited to, all counsel, advisors’ and agents’ fees and disbursements
and all taxes or other governmental charges. The Escrow Agent shall bill the
Company on a monthly basis for services rendered.

5.4           Further Assurances.
From time to time on and after the date hereof, the Company and the Initial
Stockholders shall deliver or cause to be delivered to the Escrow Agent such
further documents and instruments and shall do or cause to be done such further
acts as the Escrow Agent shall reasonably request to carry out more effectively
the provisions and purposes of this Agreement, to evidence compliance herewith
or to assure itself that it is protected in acting hereunder.

5.5           Resignation. The Escrow
Agent may resign at any time and be discharged from its duties as escrow agent
hereunder by its giving the other parties hereto written notice and such
resignation shall become effective as hereinafter provided. Such resignation
shall become effective at such time that the Escrow Agent shall turn over to a
successor escrow agent appointed by the Company and approved by Morgan Joseph,
the Escrow Securities held hereunder. If no new escrow agent is so appointed
within the 60 day period following the giving of such notice of resignation,
the Escrow Agent may deposit the Escrow Securities with any court it deems
appropriate.

5.6           Discharge of Escrow Agent.
The Escrow Agent shall resign and be discharged from its duties as escrow agent
hereunder if so requested in writing at any time by the Company and a majority
of the Initial Stockholders, jointly, provided, however, that
such resignation shall become effective only upon acceptance of appointment by
a successor escrow agent as provided in Section 5.5.

5.7           Liability.
Notwithstanding anything herein to the contrary, the Escrow Agent shall not be
relieved from liability hereunder for its own gross negligence or its own
willful misconduct.

6.             Miscellaneous.

6.1           Governing Law. This
Agreement shall for all purposes be deemed to be made under and shall be
construed in accordance with the laws of the State of New York. Each of the
parties hereby agrees that any action, proceeding or claim against it arising
out of or relating in any way to this Agreement shall be brought and enforced
in the courts of the State of New York or the United States District Court for
the Southern District of New York (each, a “New York court”), and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. Each of
the parties hereby waives any objection to such exclusive jurisdiction and that
such courts represent an inconvenient forum.

6.2           Third-Party Beneficiaries.
Each of the Initial Shareholders hereby acknowledges that Morgan Joseph is a third-party
beneficiary of this Agreement and this Agreement may not be modified or changed
without the prior written consent of Morgan Joseph.

6.3           Entire Agreement. This
Agreement contains the entire agreement of the parties hereto with respect to
the subject matter hereof and, except as expressly provided herein, may not be
changed or modified except by an instrument in writing signed by the party to
the charged.

6.4           Headings. The headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation thereof.

6.5           Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the respective
parties hereto and their legal representatives, successors and assigns.

6.6           Notices. Any notice or
other communication required or which may be given hereunder shall be in
writing and either be delivered personally or by private national courier
service, or be mailed, certified or registered mail, return receipt requested,
postage prepaid, and shall be deemed given when so delivered personally or, if
sent by private national courier service, on the next business day after
delivery to the courier, or, if mailed, two business days after the date of
mailing, as follows:

	
  If to the Company, to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Arcade
  Acquisition Corp.

  	
   

  
	
   

  	
  c/o Arcade
  Partners, LLC

  	
   

  
	
   

  	
  62 La Salle
  Road, Suite 304

  	
   

  
	
   

  	
  West Hartford,
  CT 06107

  	
   

  
	
   

  	
  Phone:
  860-236-6320

  	
   

  
	
   

  	
  Fax:
  860-236-6325

  	
   

  
	
   

  	
  Attn: John
  Chapman

  	
   

  
	
   

  	
  If to a
  Stockholder, to his address set forth in Exhibit A.

  

 

 

	
  

  	
  and if to the
  Escrow Agent, to:

  
	
   

  	
   

  	
   

  
	
   

  	
  Continental
  Stock Transfer & Trust Company

  	
   

  
	
   

  	
  17 Battery Place

  	
   

  
	
   

  	
  New York, New
  York 10004

  	
   

  
	
   

  	
  Attn: Felix
  Orihuela, Vice President and Senior Account Executive

  
	
   

  	
   

  	
   

  
	
   

  	
  A copy of any
  notice sent hereunder shall be sent to:

  
	
   

  	
   

  	
   

  
	
   

  	
  Loeb & Loeb
  LLP

  	
   

  
	
   

  	
  345 Park Avenue

  	
   

  
	
   

  	
  New York, New
  York 10154

  	
   

  
	
   

  	
  Attn: Fran
  Stoller, Esq.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  and:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Morgan Joseph
  & Co. Inc.

  	
   

  
	
   

  	
   

  	
  600 Fifth Avenue

  	
   

  
	
   

  	
   

  	
  19th Floor

  	
   

  
	
   

  	
   

  	
  New York, New
  York 10020

  	
   

  
	
   

  	
   

  	
  Attn: Tina
  Pappas

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  and:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kramer Levin
  Naftalis & Frankel LLP

  	
   

  
	
   

  	
   

  	
  1177 Avenue of
  the Americas

  	
   

  
	
   

  	
   

  	
  New York, New
  York 10036

  	
   

  
	
   

  	
   

  	
  Attn:
  Christopher Auguste, Esq.

  	
   

  
					

The parties may change the persons and addresses to
which the notices or other communications are to be sent by giving written
notice to any such change in the manner provided herein for giving notice.

6.7           Liquidation of Company.
The Company shall give the Escrow Agent written notification of the liquidation
and dissolution of the Company in the event that the Company fails to
consummate a Business Combination within the time period(s) specified in the
Prospectus.

6.8           Waiver.  Notwithstanding anything herein to the
contrary, the Escrow Agent hereby waives any and all right, title, interest or
claim of any kind (“Claim”) in or to any distribution of the Trust Account, and
hereby agrees not to seek recourse, reimbursement, payment or satisfaction for
any Claim against the Trust Account for any reason whatsoever.

WITNESS the execution of this Agreement as of
the date first above written.

	
  

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Jonathan Furer

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK TRANSFER

  
	
   

  	
  & TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  

  	
  INITIAL
  STOCKHOLDERS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jonathan Furer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  John Chapman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASIF RAHMAN
  TR0UST

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Muhit
  Rahman, Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEENA RAHMAN
  TRUST

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Muhit
  Rahman, Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAHMAN FAMILY
  TRUST

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Muhit
  Rahman, Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARCADE ACQUISITION INVESTORS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Muhit Rahman, Managing Member

  
	
   

  	
   

  	
   

  

SCHEDULE A

	
  Name and Address of

  Initial Stockholder

  	
   

  	
  Number of

  Common

  Shares

  	
   

  	
  Number of

  Warrants

  	
   

  
	
  Jonathan Furer

  	
   

  	
  505,000

  	
   

  	
  0

  	
   

  
	
  John Chapman

  	
   

  	
  505,000

  	
   

  	
  0

  	
   

  
	
  Asif Rahman
  Trust

  	
   

  	
  180,000

  	
   

  	
  0

  	
   

  
	
  Deena Rahman
  Trust

  	
   

  	
  180,000

  	
   

  	
  0

  	
   

  
	
  Rahman Family
  Trust

  	
   

  	
  145,000

  	
   

  	
  0

  	
   

  
	
  Arcade
  Acquisition Investors, LLC

  	
   

  	
  360,000

  	
   

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  1,875,000

  	
   

  	
  2,000,000

  	
   

  

 

EXHIBIT A

Escrow Agent FeesExhibit
10.5

REGISTRATION
RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is entered into as of the          
day of                   ,
2007, by and among Arcade Acquisition Corp., a Delaware corporation (the “Company”),
and the undersigned parties listed under Investors on the signature page hereto
(each, an “Investor” and collectively, the “Investors”).

WHEREAS, the Investors currently hold all of the
issued and outstanding securities of the Company;

WHEREAS, the Investors and the Company desire to enter
into this Agreement to provide the Investors with certain rights relating to
the registration of the Initial Investor Shares (as defined below), the Private
Placement Warrants (as defined below) and the Private Placement Warrant Shares
(as defined below) held by them;

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

1.             DEFINITIONS;
INTERPRETATION.  As used herein, the
word “shares” may, as context requires, be used in reference to units,
warrants, rights, options or any other security, in addition to Common
Stock.  The following capitalized terms
used herein have the following meanings:

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

“Announcement Date” means the date the Company
files a Form 8-K with the Commission announcing the entering into of a
definitive agreement for the Business Combination.

“Business Combination” means the acquisition of
direct or indirect ownership through a merger, capital stock exchange, asset or
stock acquisition or other similar type of transaction, of an operating
business or businesses having collectively, a fair market value of at least 80%
of the Company’s net assets at the time of such acquisition; provided, however, that, any acquisition of multiple
operating businesses shall occur contemporaneously with one another target
business.

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

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

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

“Demand Registration” is defined in Section
2.1.1.

 1
 

“Demanding Holder” is defined in Section 2.1.1.

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

“First Release Date” means the date the Private
Placement Warrants may be distributed from escrow pursuant to Section 3 of that
certain Securities Escrow Agreement dated as of the date hereof, by and among
the parties thereto and Continental Stock Transfer & Trust Company.

“Form S-3” is defined in Section 2.3.

“Indemnified Party” is defined in Section 4.3.

“Indemnifying Party” is defined in Section 4.3.

“Initial Investor Shares” means all of the
Common Stock held by the Investors before the IPO and the Private Placement and
any Common Stock issued as a dividend or other distribution with respect to or
in exchange for or in replacement of such shares of Common Stock.

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

“Investor Indemnified Party” is defined in
Section 4.1.

“IPO” means the Company’s initial public
offering of securities.

“Majority-in-interest” of Demanding Holders, or
of any other group of holders of Registrable Securities, means (i) after the
First Release Date but prior to the Second Release Date, a majority-in-interest
of the holders of Private Placement Warrants and Private Placement Warrant
Shares, and (ii) after the Second Release Date, a majority-in-interest of the
holders of Registrable Securities.

“Maximum Number of Shares” is defined in
Section 2.1.3.

“Morgan Joseph” means Morgan Joseph & Co.
Inc.

“Notices” is defined in Section 6.3.

“Piggy-Back Registration” is defined in Section
2.2.1.

“Private Placement” means the sale by the
Company of the Private Placement Warrants.

“Private Placement Warrant Shares” means the
shares of Common Stock underlying the Private Placement Warrants.

“Private Placement Warrants” means Warrants
issued and delivered to initial stockholders of the Company.

“Pro Rata” is defined in Section 2.1.3.

 2
 

“Purchase Option” means the option to purchase 750,000
units, each unit consisting of one share of Common Stock and one Common Stock
purchase warrant, issued to Morgan Joseph 
or its designees in connection with the IPO (as may be transferred from
time to time in accordance with its terms).

“Purchase Option Securities” means the
securities underlying the Purchase Option that have been granted registration
rights by the Company pursuant to the Purchase Option.

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

“Registrable Securities” means the Private
Placement Warrants, the Private Placement Warrant Shares and the Initial
Investor Shares. As to any particular Registrable Securities, such securities
shall cease to be Registrable Securities when: (a) a Registration Statement
with respect to the sale of such securities shall have become effective under
the Securities Act and such securities shall have been sold, transferred,
disposed of or exchanged in accordance with such Registration Statement; (b)
such securities shall have been otherwise transferred, new certificates for
them not bearing a legend restricting further transfer shall have been
delivered by the Company and subsequent public distribution of them shall not
require registration under the Securities Act; (c) such securities shall have
ceased to be outstanding, or (d) the Securities and Exchange Commission makes a
definitive determination to the Company that the Registrable Securities are
saleable under Rule 144(k).

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

“Second Release Date” means the date the
Initial Investor Shares may be distributed from escrow pursuant to Section 3 of
that certain Securities Escrow Agreement dated as of the date hereof, by and
among the parties thereto and Continental Stock Transfer & Trust Company.

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

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

2.             REGISTRATION RIGHTS.

2.1           Demand
Registration.

2.1.1.       Request for Registration.  At any time and from time to time on or after
the Announcement Date, the holders of a Majority-in-interest held by the
Investors or their 

 3
 

transferees,
may make a written demand for registration under the Securities Act of all or
part of the Private Placement Warrants and Private Placement Warrant Shares
(the “First Demand Registration”); provided, however, such
Demand Registration shall not be declared effective by the Commission until
after the First Release Date.  At any
time and from time to time on or after the Second Release Date, the holders of a
Majority-in-interest held by the Investors or their transferees, may make a
written demand for registration under the Securities Act of all or part of the
Registrable Securities (the “Second Demand Registration” and together
with the First Demand Registration, a “Demand Registration”).  Any demand for a Demand Registration shall
specify the number of shares of Registrable Securities, as applicable, proposed
to be sold and the intended method(s) of distribution thereof.  The Company will notify all holders of
Registrable Securities of the Demand Registration, and each holder of
Registrable Securities who wishes to include all or a portion of such holder’s
Registrable Securities in the Demand Registration (each such holder including
shares of Registrable Securities in such registration, a “Demanding Holder”)
shall so notify the Company within fifteen (15) days after the receipt by the
holder of the notice from the Company. 
Upon any such request, the Demanding Holders shall be entitled to have
their Registrable Securities included in the Demand Registration, subject to
Section 2.1.4 and the provisos set forth in Section 3.1.1.  The Company shall not be obligated to effect
more than (i) one (1) Demand Registration prior to the First Release Date and
(ii) not more than two (2) Demand Registrations prior to the Second Release
Date under this Section 2.1.1 in respect of Registrable Securities.

2.1.2.       Effective Registration.  A registration will not count as a Demand
Registration until the Registration Statement filed with the Commission with
respect to such Demand Registration has been declared effective and the Company
has complied with all of its obligations under this Agreement with respect
thereto; provided, however, that if, after such Registration
Statement has been declared effective, the offering of Registrable Securities
pursuant to a Demand Registration is interfered with by any stop order or
injunction of the Commission or any other governmental agency or court, the
Registration Statement with respect to such Demand Registration will be deemed
not to have been declared effective, unless and until, (i) such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii) a
Majority-in-interest of the Demanding Holders thereafter elect to continue the
offering; provided, further, that the Company shall not be
obligated to file a second Registration Statement until a Registration
Statement that has been filed is counted as a Demand Registration or is
terminated.

2.1.3.       Reduction of Offering.  Subject to the registration rights set forth
in the Purchase Option, which rights in no way shall be limited by the Maximum
Number of Shares to be included in the Registration Statement pursuant to this
Section 2.1.3, if the Company chooses to engage in an underwriter public
offering of a Demand Registration and if the managing Underwriter or
Underwriters for a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the dollar amount
or number of shares of Registrable Securities which the Demanding Holders
desire to sell, taken together with all other shares of Common Stock or other
securities which the Company desires to sell and the shares of Common Stock, if
any, as to which registration has been requested pursuant to written
contractual piggy-back registration rights held by other stockholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number
of shares that can be sold in such offering without adversely affecting the
proposed offering price, the timing, the distribution method, or the
probability of success of such offering (such maximum dollar amount or 

 4
 

maximum number
of shares, as applicable, the “Maximum Number of Shares”), then the
Company shall include in such registration: (i) first, the Registrable
Securities as to which Demand Registration has been requested (pro rata
in accordance with the number of shares that each such person has requested be
included in such registration, regardless of the number of shares held by each
such person (such proportion is referred to herein as “Pro Rata”)) that
can be sold without exceeding the Maximum Number of Shares; (ii) second,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number
of Shares; and (iii) third, to the extent that the Maximum Number of Shares has
not been reached under the foregoing clauses (i) and (ii), the shares of Common
Stock or other securities for the account of other persons that the Company is
obligated to register pursuant to written contractual arrangements with such
persons and that can be sold without exceeding the Maximum Number of Shares.

2.1.4.       Withdrawal.  If a Majority-in-interest of the Demanding
Holders disapprove of the terms of any underwriting or are not entitled to
include all of their Registrable Securities in any offering, such
Majority-in-interest of the Demanding Holders may elect to withdraw from such
offering by giving written notice to the Company and the Underwriter or
Underwriters of their request to withdraw prior to the effectiveness of the
Registration Statement filed with the Commission with respect to such Demand
Registration. If the Majority-in-interest of the Demanding Holders withdraws
from a proposed offering relating to a Demand Registration, then such
registration shall not count as a Demand Registration provided for in Section
2.1.1.

2.2           Piggy-Back
Registration.

2.2.1.       Piggy-Back Rights.  If at any time on or after the Second Release
Date the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other
obligations exercisable or exchangeable for, or convertible into, equity
securities, by the Company for its own account or for stockholders of the
Company for their account (or by the Company and by stockholders of the Company
including, without limitation, pursuant to Section 2.1), other than a
Registration Statement (i) filed in connection with any employee stock option
or other benefit plan, (ii) for an exchange offer or offering of securities
solely to the Company’s existing stockholders, (iii) for an offering of debt
that is convertible into equity securities of the Company or (iv) for a
dividend reinvestment plan, then the Company shall (x) give written notice of
such proposed filing to the holders of Registrable Securities as soon as
practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to
be included in such offering, the intended method(s) of distribution, and the
name of the proposed managing Underwriter or Underwriters, if any, of the
offering, and (y) offer to the holders of Registrable Securities in such notice
the opportunity to register the sale of such number of shares of Registrable
Securities as such holders may request in writing within fifteen (15) days
following receipt of such notice (a “Piggy-Back Registration”). The
Company shall cause such Registrable Securities to be included in such
registration and shall use its best efforts to cause the managing Underwriter
or Underwriters of a proposed underwritten offering to permit the Registrable
Securities requested to be included in a Piggy-Back Registration to be included
on the same terms and conditions as any similar securities of the Company and
to permit the sale or 

 5
 

other
disposition of such Registrable Securities in accordance with the intended
method(s) of distribution thereof. All holders of Registrable Securities
proposing to distribute their securities through a Piggy-Back Registration that
involves an Underwriter or Underwriters shall enter into an underwriting
agreement in customary form with the Underwriter or Underwriters selected for
such Piggy-Back Registration.

2.2.2.       Reduction of Offering.  Subject to the registration rights set forth
in the Purchase Option, which rights in no way shall be limited by the Maximum
Number of Shares to be included in the Registration Statement pursuant to this
Section 2.2.2, if the managing Underwriter or Underwriters for a Piggy-Back
Registration that is to be an underwritten offering advises the Company and the
holders of Registrable Securities in writing that the dollar amount or number
of shares of Common Stock or other securities which the Company desires to
sell, taken together with shares of Common Stock or other securities, if any,
as to which registration has been demanded pursuant to written contractual
arrangements with persons other than the holders of Registrable Securities
hereunder, the Registrable Securities as to which registration has been
requested under this Section 2.2, and the shares of Common Stock or other
securities, if any, as to which registration has been requested pursuant to the
written contractual piggy-back registration rights of other stockholders of the
Company, exceeds the Maximum Number of Shares, then the Company shall include
in any such registration:

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

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

 6
 

arrangements with such
persons, that can be sold without exceeding the Maximum Number of Shares.

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

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

3.             REGISTRATION PROCEDURES.

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

3.1.1.       Filing Registration Statement.  The Company shall, as expeditiously as
possible and in any event within sixty (60) days after receipt of a request for
a Demand Registration pursuant to Section 2.1, prepare and file with the
Commission a Registration Statement on any form for which the Company then
qualifies or which counsel for the Company shall deem appropriate and which
form shall be available for the sale of all Registrable Securities to be
registered thereunder in accordance with the intended method(s) of distribution
thereof, and shall use its best efforts to cause such Registration Statement to
become and remain effective for the period required by Section 3.1.3; provided,
however, that the Company shall have the right to 

 7
 

defer any
Demand Registration for up to thirty (30) days, and any Piggy-Back Registration
for such period as may be applicable to deferment of any demand registration to
which such Piggy-Back Registration relates, in each case if the Company shall
furnish to the holders a certificate signed by the Chief Executive Officer of
the Company stating that, in the good faith judgment of the Board of Directors
of the Company, it would be materially detrimental to the Company and its
stockholders for such Registration Statement to be effected at such time; provided, further, the Company
shall not have the right to exercise the right set forth in the immediately
preceding proviso more than once in any 365-day period in respect of a Demand
Registration hereunder.

3.1.2.       Copies.  The Company shall, prior to filing a
Registration Statement or prospectus, or any amendment or supplement thereto,
furnish without charge to the holders of Registrable Securities included in
such registration, and such holders’ legal counsel, copies of such Registration
Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and
documents incorporated by reference therein), the prospectus included in such
Registration Statement (including each preliminary prospectus), and such other
documents as the holders of Registrable Securities included in such
registration or legal counsel for any such holders may request in order to
facilitate the disposition of the Registrable Securities owned by such holders.

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

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

 8
 

supplement
thereto, including documents incorporated by reference, the Company shall
furnish to the holders of Registrable Securities included in such Registration
Statement and to the legal counsel for any such holders, copies of all such
documents proposed to be filed sufficiently in advance of filing to provide
such holders and legal counsel with a reasonable opportunity to review such
documents and comment thereon, and the Company shall not file any Registration
Statement or prospectus or amendment or supplement thereto, including documents
incorporated by reference, to which such holders or their legal counsel shall
object.

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

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

3.1.7.       Cooperation.  The principal executive officer of the
Company, the principal financial officer of the Company, the principal
accounting officer of the Company and all other officers and members of the
management of the Company shall cooperate fully in any offering of Registrable
Securities hereunder, which cooperation shall include, without limitation, 

 9
 

the
preparation of the Registration Statement with respect to such offering and all
other offering materials and related documents, and participation in meetings
with Underwriters, attorneys, accountants and potential investors.

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

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

3.1.10.     Earnings Statement.  The Company shall comply with all applicable
rules and regulations of the Commission and the Securities Act, and make
available to its stockholders, as soon as practicable, an earnings statement
covering a period of twelve (12) months, beginning within three (3) months
after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder.

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

3.2           Obligation to
Suspend Distribution.  Upon receipt
of any notice from the Company of the happening of any event of the kind
described in Section 3.1.4(iv), or, in the case of a resale registration on
Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the Company,
pursuant to a written insider trading compliance program adopted by the Company’s
Board of Directors, of the ability of all “insiders” covered by such program to
transact in the Company’s securities because of the existence of material
non-public information, each holder of Registrable Securities included in any
registration shall immediately discontinue disposition of such Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such holder receives the supplemented or amended prospectus
contemplated by Section 3.1.4(iv) or the restriction on the ability of “insiders”
to transact in the Company’s 

 10
 

securities is
removed, as applicable, and, if so directed by the Company, each such holder
will deliver to the Company all copies, other than permanent file copies then
in such holder’s possession, of the most recent prospectus covering such
Registrable Securities at the time of receipt of such notice.

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

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

4.             INDEMNIFICATION AND
CONTRIBUTION.

4.1           Indemnification
by the Company.  The Company agrees
to indemnify and hold harmless each Investor and each other holder of
Registrable Securities, and each of their respective officers, employees,
affiliates, directors, partners, members, attorneys and agents, and each
person, if any, who controls an Investor and each other holder of Registrable
Securities (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) (each, an “Investor Indemnified Party”), from
and against any expenses, losses, judgments, claims, damages or liabilities,
whether joint or several, arising out of or based upon any untrue statement (or
allegedly untrue statement) of a material fact contained in any Registration
Statement under which the sale of such Registrable Securities was registered
under the Securities 

 11
 

Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration
Statement, or arising out of or based upon any omission (or alleged omission)
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Company of the
Securities Act or any rule or regulation promulgated thereunder applicable to
the Company and relating to action or inaction required of the Company in
connection with any such registration; and the Company shall promptly reimburse
the Investor Indemnified Party for any legal and any other expenses reasonably
incurred by such Investor Indemnified Party in connection with investigating
and defending any such expense, loss, judgment, claim, damage, liability or
action; provided, however, that the Company will not be liable in
any such case to the extent that any such expense, loss, claim, damage or
liability arises out of or is based upon any untrue statement or allegedly untrue
statement or omission or alleged omission made in such Registration Statement,
preliminary prospectus, final prospectus, or summary prospectus, or any such
amendment or supplement, in reliance upon and in conformity with information
furnished to the Company, in writing, by such selling holder expressly for use
therein. The Company also shall indemnify any Underwriter of the Registrable
Securities, their officers, employees, affiliates, directors, partners, members
and agents and each person who controls such Underwriter on substantially the
same basis as that of the indemnification provided above in this Section 4.1.

4.2           Indemnification
by Holders of Registrable Securities. 
Each selling holder of Registrable Securities will, in the event that
any registration is being effected under the Securities Act pursuant to this
Agreement of any Registrable Securities held by such selling holder, indemnify
and hold harmless the Company, each of its directors and officers and each
Underwriter (if any), and each other selling holder and each other person, if
any, who controls another selling holder or such Underwriter or the Company
within the meaning of the Securities Act or the Exchange Act, against any
losses, claims, judgments, damages or liabilities, whether joint or several,
insofar as such losses, claims, judgments, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or
allegedly untrue statement of a material fact contained in any Registration
Statement under which the sale of such Registrable Securities was registered
under the Securities Act, any preliminary prospectus, final prospectus or
summary prospectus contained in the Registration Statement, or any amendment or
supplement to the Registration Statement, or arise out of or are based upon any
omission or the alleged omission to state a material fact required to be stated
therein or necessary to make the statement therein not misleading, if the
statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by such selling holder
expressly for use therein, and shall reimburse the Company, its directors and
officers, and each other selling holder or controlling person for any legal or
other expenses reasonably incurred by any of them in connection with
investigation or defending any such loss, claim, damage, liability or action.
Each selling holder’s indemnification obligations hereunder shall be several
and not joint and shall be limited to the amount of any net proceeds actually
received by such selling holder from the sale of Registrable Securities which
gave rise to such indemnification obligation.

4.3           Conduct of
Indemnification Proceedings. 
Promptly after receipt by any person of any notice of any loss, claim,
damage or liability or any action in respect of which indemnity may be sought
pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”)
shall, if a claim in respect thereof is to be made against any other person for
indemnification hereunder, 

 12
 

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

4.4           Contribution.

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

4.4.2.       The parties hereto agree that it
would not be just and equitable if contribution pursuant to this Section 4.4
were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding Section 4.4.1. 
The amount paid or payable by an Indemnified Party 

 13
 

as a result of
any loss, claim, damage, liability or action referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such Indemnified Party in
connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this
Section 4.4, no holder of Registrable Securities shall be required to
contribute any amount in excess of the dollar amount of the net proceeds (after
payment of any underwriting fees, discounts, commissions or taxes) actually
received by such holder from the sale of Registrable Securities which gave rise
to such contribution obligation.  No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

5.             COVENANT.

5.1           Rule 144.  The Company covenants that it shall file any
reports required to be filed by it under the Securities Act and the Exchange
Act and shall take such further action as the holders of Registrable Securities
may reasonably request, all to the extent required from time to time to enable
such holders to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144
under the Securities Act, as such Rules may be amended from time to time, or
any similar Rule or regulation hereafter adopted by the Commission.

6.             MISCELLANEOUS.

6.1           Other
Registration Rights. Except with respect to those securities issued or
issuable upon exercise of that certain Purchase Option to be issued to Morgan
Joseph or its designees in connection with the IPO on
             2007,
the Company represents and warrants that no person, other than a holder of the
Registrable Securities, has any right to require the Company to register any
shares of the Company’s capital stock for sale or to include shares of the
Company’s capital stock in any registration filed by the Company for the sale
of shares of capital stock for its own account or for the account of any other
person.

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

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

 14
 

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

To the Company:

Arcade Acquisition Corp.

c/o Arcade Partners, LLC

62 La Salle Road, Suite 304

West Hartford, CT 
06107

Attn: John M. Chapman, Chief Financial Officer

with a copy to:

Loeb & Loeb
LLP 

345 Park Avenue 

New York, New York 10154

Attn:       Fran Stoller, Esq.

To an Investor, to:

Their address of record on the books of the Company

with a copy to:

Loeb & Loeb
LLP 

345 Park Avenue 

New York, New York 10154

Attn:       Fran Stoller, Esq.

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

6.5           Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which taken
together shall constitute one and the same instrument.

 15
 

6.6           Entire
Agreement.  This Agreement (including
all agreements entered into pursuant hereto and all certificates and
instruments delivered pursuant hereto and thereto) constitutes the entire
agreement of the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous agreements, representations,
understandings, negotiations and discussions between the parties, whether oral
or written.

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

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

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

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

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

6.12         Waiver
of Trial by Jury.  Each party hereby
irrevocably and unconditionally waives the right to a trial by jury in any
action, suit, counterclaim or other proceeding (whether 

 16
 

based on contract, tort or otherwise) arising out of, connected with or
relating to this Agreement, the transactions contemplated hereby, or the
actions of the Investor in the negotiation, administration, performance or
enforcement hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 17
 

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

	
  

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan Furer

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

- Signature
page of the Investors immediately follows -

 18
 

 

	
  

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
  ARCADE ACQUISITION INVESTORS, LLC

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Jonathan Furer

  
	
   

  	
   

  
	
   

  	
  John Chapman

  
	
   

  	
   

  
	
   

  	
  Deena Rahman Trust

  
	
   

  	
   

  
	
   

  	
  Asif Rahman Trust

  
	
   

  	
   

  
	
   

  	
  Rahman Family Trust

  

 

 19

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