Document:

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                                                                    EXHIBIT 10.1

                                    ___, 2005

Stone Arcade Acquisition Corporation
c/o Stone-Kaplan Investments, LLC
One Northfield Plaza
Suite 480
Northfield, IL 60093

Morgan Joseph & Co. Inc.
600 Fifth Avenue, 19th Floor
New York, New York 10020

            Re: Initial Public Offering

Gentlemen:

            The undersigned stockholder, officer and/or director of Stone Arcade
Acquisition Corporation ("Company"), in consideration of Morgan Joseph & Co.
Inc. ("Morgan Joseph") entering into a letter of intent ("Letter of Intent") to
underwrite an initial public offering of the securities of the Company ("IPO")
and embarking on the IPO process, hereby agrees as follows (certain capitalized
terms used herein are defined in paragraph 11 hereof):

            1. If the Company solicits approval of its stockholders of a
Business Combination, the undersigned will vote all Insider Shares owned by him
in accordance with the majority of the votes cast by the holders of the IPO
Shares.

            2. In the event that the Company fails to consummate a Business
Combination within 18 months from the effective date ("Effective Date") of the
registration statement relating to the IPO (or 24 months under the circumstances
described in the prospectus relating to the IPO), the undersigned will take all
reasonable actions within his power to cause the Company to liquidate as soon as
reasonably practicable. The undersigned hereby waives any and all right, title,
interest or claim of any kind in or to any distribution of the Trust Fund (as
defined in the Letter of Intent) as a result of such liquidation with respect to
his Insider Shares ("Claim") and hereby waives any Claim the undersigned may
have in the future as a result of, or arising out of, any contracts or
agreements with the Company and will not seek recourse against the Trust Fund
for any reason whatsoever. The undersigned agrees to indemnify and hold harmless
the Company against any and all loss, liability, claims, damage and expense
whatsoever (including, but not limited to, any and all legal or other expenses
reasonably incurred in investigating, preparing or defending against any
litigation, whether pending or threatened, or any claim whatsoever) which the
Company may become subject as a result of any claim by any vendor that is owed
money by the Company for services rendered or products sold but only to the
extent necessary to ensure that such loss, liability, claim, damage or expense
does not reduce the amount in the Trust Fund (as defined in the Letter of
Intent).

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Stone Arcade Acquisition Corporation
Morgan Joseph & Co. Inc.
___, 2005
Page 2

            3. In order to minimize potential conflicts of interest which may
arise from multiple affiliations, the undersigned agrees to present to the
Company for its consideration, prior to presentation to any other person or
entity, any suitable opportunity to acquire an operating business, until the
earlier of the consummation by the Company of a Business Combination, the
liquidation of the Company or until such time as the undersigned ceases to be an
officer or director of the Company, subject to any pre-existing fiduciary
obligations the undersigned might have.

            4. The undersigned acknowledges and agrees that the Company will not
consummate any Business Combination which involves a company which is affiliated
with any of the Insiders unless the Company obtains an opinion from an
independent investment banking firm reasonably acceptable to Morgan Joseph that
the business combination is fair to the Company's stockholders from a financial
perspective.

            5. Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate of the undersigned will be entitled to receive
and will not accept any compensation for services rendered to the Company prior
to the consummation of the Business Combination; provided that commencing on the
Effective Date, Stone-Kaplan Investments, LLC ("Related Party"), shall be
allowed to charge the Company an allocable share of Related Party's overhead,
$7,500 per month, to compensate it for certain administrative, technology and
secretarial services, as well as the use of certain limited office space in
Chicago that it will provide to the Company. Related Party may use a portion of
the monthly fee to reimburse Arcade Partners LLC for certain administrative,
technology and secretarial services it incurs on behalf of the Company. Related
Party and the undersigned shall also be entitled to reimbursement from the
Company for their out-of-pocket expenses incurred in connection with seeking and
consummating a Business Combination.

            6. Neither the undersigned, any member of the family of the
undersigned, or any Affiliate of the undersigned will be entitled to receive or
accept a finder's fee or any other compensation in the event the undersigned,
any member of the family of the undersigned or any Affiliate of the undersigned
originates a Business Combination.

            7. The undersigned will escrow his Insider Shares for the period
commencing on the Effective Date and ending one year from the consummation of a
business combination, subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and an escrow agent acceptable to
the Company.

            8. The undersigned agrees to be ________________________ of the
Company until the earlier of the consummation by the Company of a Business
Combination or the liquidation of the Company. The undersigned's biographical
information furnished to the Company and Morgan Joseph and attached hereto as
Exhibit A is true and accurate in all respects, does not omit any material
information with respect to the undersigned's background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K,
promulgated under the Securities Act of 1933. The undersigned's Questionnaire

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Stone Arcade Acquisition Corporation
Morgan Joseph & Co. Inc.
___, 2005
Page 3

furnished to the Company and Morgan Joseph and annexed as Exhibit B hereto is
true and accurate in all respects. The undersigned represents and warrants that:

            (a) he is not subject to or a respondent in any legal action for,
any injunction, cease-and-desist order or order or stipulation to desist or
refrain from any act or practice relating to the offering of securities in any
jurisdiction;

            (b) he has never been convicted of or pleaded guilty to any crime
(i) involving any fraud or (ii) relating to any financial transaction or
handling of funds of another person, or (iii) pertaining to any dealings in any
securities and he is not currently a defendant in any such criminal proceeding;
and

            (c) he has never been suspended or expelled from membership in any
securities or commodities exchange or association or had a securities or
commodities license or registration denied, suspended or revoked.

            9. The undersigned has full right and power, without violating any
agreement by which he is bound, to enter into this letter agreement and to serve
as ____________ of the Company.

            10. The undersigned authorizes any employer, financial institution,
or consumer credit reporting agency to release to Morgan Joseph and its legal
representatives or agents (including any investigative search firm retained by
Morgan Joseph) any information they may have about the undersigned's background
and finances ("Information"), purely for the purposes of the Company's IPO (and
shall thereafter hold such information confidential). Neither Morgan Joseph nor
its agents shall be violating the undersigned's right of privacy in any manner
in requesting and obtaining the Information and the undersigned hereby releases
them from liability for any damage whatsoever in that connection.

            11. As used herein, (i) a "Business Combination" shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition,
reorganization or otherwise, of an operating business selected by the Company;
(ii) "Insiders" shall mean all officers, directors and stockholders of the
Company immediately prior to the IPO; (iii) "Insider Shares" shall mean all of
the shares of Common Stock of the Company owned by an Insider prior to the IPO;
and (iv) "IPO Shares" shall mean the shares of Common Stock issued in the
Company's IPO.

                                             ___________________

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Stone Arcade Acquisition Corporation
Morgan Joseph & Co. Inc.
___, 2005
Page 4

                                    EXHIBIT A

                      [Insider's biographical information]

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                                                                    EXHIBIT 10.2

                                 PROMISSORY NOTE

$________________                                           As of April __, 2005
Chicago, Illinois

            Stone Arcade Acquisition Corporation (the "Maker") promises to pay
to the order of ____________ (the "Payee") the principal sum of ________________
($___________) in lawful money of the United States of America on the terms and
conditions described below.

1)    Principal. The principal balance of this Note shall be repayable on the
      earlier of (i) _________ or (ii) the date on which Maker consummates an
      initial public offering of its securities.

2)    Interest. No interest shall accrue on the unpaid principal balance of this
      Note.

3)    Application of Payments. All payments shall be applied first to payment in
      full of any costs incurred in the collection of any sum due under this
      Note, including (without limitation) reasonable attorneys' fees, then to
      the payment in full of any late charges and finally to the reduction of
      the unpaid principal balance of this Note.

4)    Events of Default. The following shall constitute Events of Default:

      a)    Failure to Make Required Payments. Failure by Maker to pay the
            principal of or accrued interest on this Note within five (5)
            business days following the date when due.

      b)    Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary
            case under the Federal Bankruptcy Code, as now constituted or
            hereafter amended, or any other applicable federal or state
            bankruptcy, insolvency, reorganization, rehabilitation or other
            similar law, or the consent by it to the appointment of or taking
            possession by a receiver, liquidator, assignee, trustee, custodian,
            sequestrator (or other similar official) of Maker or for any
            substantial part of its property, or the making by it of any
            assignment for the benefit of creditors, or the failure of Maker
            generally to pay its debts as such debts become due, or the taking
            of corporate action by Maker in furtherance of any of the foregoing.

      c)    Involuntary Bankruptcy, Etc. The entry of a decree or order for
            relief by a court having jurisdiction in the premises in respect of
            maker in an involuntary case under the Federal Bankruptcy Code, as
            now or hereafter constituted, or any other applicable federal or
            state bankruptcy, insolvency or other similar law, or appointing a
            receiver, liquidator, assignee, custodian, trustee, sequestrator (or
            similar official) of Maker or for any substantial part of its
            property, or ordering the winding-up or liquidation of the affairs
            of Maker, and the continuance of any such decree or order unstayed
            and in effect for a period of 60 consecutive days.

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5)    Remedies.

      a)    Upon the occurrence of an Event of Default specified in Section
            4(a), Payee may, by written notice to Maker, declare this Note to be
            due and payable, whereupon the principal amount of this Note, and
            all other amounts payable thereunder, shall become immediately due
            and payable without presentment, demand, protest or other notice of
            any kind, all of which are hereby expressly waived, anything
            contained herein or in the documents evidencing the same to the
            contrary notwithstanding.

      b)    Upon the occurrence of an Event of Default specified in Sections
            4(b) and 4(c), the unpaid principal balance of, and all other sums
            payable with regard to, this Note shall automatically and
            immediately become due and payable, in all cases without any action
            on the part of Payee.

6)    Waivers. Maker and all endorsers and guarantors of, and sureties for, this
      Note waive presentment for payment, demand, notice of dishonor, protest,
      and notice of protest with regard to the Note, all errors, defects and
      imperfections in any proceedings instituted by Payee under the terms of
      this Note, and all benefits that might accrue to Maker by virtue of any
      present or future laws exempting any property, real or personal, or any
      part of the proceeds arising from any sale of any such property, from
      attachment, levy or sale under execution, or providing for any stay of
      execution, exemption from civil process, or extension of time for payment;
      and Maker agrees that any real estate that may be levied upon pursuant to
      a judgment obtained by virtue hereof, on any writ of execution issued
      hereon, may be sold upon any such writ in whole or in part in any order
      desired by Payee.

7)    Unconditional Liability. Maker hereby waives all notices in connection
      with the delivery, acceptance, performance, default, or enforcement of the
      payment of this Note, and agrees that its liability shall be
      unconditional, without regard to the liability of any other party, and
      shall not be affected in any manner by any indulgence, extension of time,
      renewal, waiver or modification granted or consented to by Payee, and
      consents to any and all extensions of time, renewals, waivers, or
      modifications that may be granted by Payee with respect to the payment or
      other provisions of this Note, and agrees that additional makers,
      endorsers, guarantors, or sureties may become parties hereto without
      notice to them or affecting their liability hereunder.

8)    Notices. Any notice called for hereunder shall be deemed properly given if
      (i) sent by certified mail, return receipt requested, (ii) personally
      delivered, (iii) dispatched by any form of private or governmental express
      mail or delivery service providing receipted delivery, (iv) sent by
      telefacsimile or (v) sent by e-mail, to the following addresses or to such
      other address as either party may designate by notice in accordance with
      this Section:

            If to Maker:

            Stone Arcade Acquisition Corporation
            c/o Stone-Kaplan Investments, LLC
            One Northfield Plaza, Suite 480

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            Northfield, IL 60093
            Attn: Matthew Kaplan, President

            If to Payee:

            [                      ]

9)    Notice shall be deemed given on the earlier of (i) actual receipt by the
      receiving party, (ii) the date shown on a telefacsimile transmission
      confirmation, (iii) the date on which an e-mail transmission was received
      by the receiving party's on-line access provider (iv) the date reflected
      on a signed delivery receipt, or (vi) two (2) Business Days following
      tender of delivery or dispatch by express mail or delivery service.

10)   Construction. This Note shall be construed and enforced in accordance with
      the domestic, internal law, but not the law of conflict of laws, of the
      State of ___________.

11)   Severability. Any provision contained in this Note which 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, and any such prohibition or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction.

            IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has
caused this Note to be duly executed by its _______________ the day and year
first above written.

                                            STONE ARCADE ACQUISITION CORPORATION

                                            By: ________________________________
                                                Name:
                                                Title:

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