Document:

Unassociated Document

    EXHIBIT
      E 

    

    
      	 	
              WARRANT

            	 
	
              NO.
                HALC - ___

            	
              HALCYON
                JETS HOLDINGS, INC. 

            	
              ________
                Shares

            
	 	 	 

    

    WARRANT
      TO PURCHASE COMMON STOCK

     

    VOID
      AFTER 5:30 P.M., EASTERN 

    TIME,
      ON THE EXPIRATION DATE

     

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT
      BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
      COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE
      FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS
      THEREFROM.

     

    FOR
      VALUE
      RECEIVED, HALCYON JETS HOLDINGS, INC., a Delaware corporation (the “Company”),
      hereby agrees to sell upon the terms and on the conditions hereinafter set
      forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as
      hereinafter defined) to ________________
      or
      registered assigns (the “Holder”),
      under
      the terms as hereinafter set forth, __________________
      (_____________)
      fully
      paid and non-assessable shares of the Company’s Common Stock, par value $0.001
      per share (the “Warrant
      Stock”),
      at a
      purchase price of ONE DOLLAR ($1.00) per share (the “Warrant
      Price”),
      pursuant to this warrant (this “Warrant”).
      The
      number of shares of Warrant Stock to be so issued and the Warrant Price are
      subject to adjustment in certain events as hereinafter set forth. The term
      “Common
      Stock”
shall
      mean, when used herein, unless the context otherwise requires, the stock and
      other securities and property at the time receivable upon the exercise of this
      Warrant.

     

    1.  Exercise
      of Warrant.

     

    a.  The
      Holder may exercise this Warrant according to its terms by (i) surrendering
      this
      Warrant, properly endorsed, to the Company at the address set forth in Section
      10, (ii) the subscription form attached hereto having then been duly executed
      by
      the Holder, and (iii) payment of the purchase price being made to the Company
      for the number of shares of the Warrant Stock specified in the subscription
      form, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern
      Time, on __________________, 2010 (the
      “Expiration
      Date”).

     

    b.  The
      aggregate purchase price for the shares of Warrant Stock being purchased may
      be
      paid either (a) by cash, certified check or bank draft or wire transfer of
      immediately available funds, or (b) by
      surrender of a number of shares of Warrant Stock having a fair market value
      equal to the aggregate purchase price of the Warrant Stock being purchased
      (“Cashless
      Exercise”)
      as
      determined herein. If the Holder elects the Cashless Exercise method of payment,
      the Company shall issue to the Holder a number of shares of Warrant Stock
      determined in accordance with the following formula:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    X
       = Y(A
      -
      B)

                       A

    

    with:               X
      =
 the
      number of shares of Warrant Stock to be issued to the Holder;

    

    Y
      = the
      number of shares of Warrant Stock with respect to which the Warrant is being
      exercised;

    

    A
      = the
      fair
      value per share of Common
      Stock on
      the
      date of exercise of this Warrant;
      and

    

    B
      = the
      then-current Warrant Price of
      the
      Warrant

    

    For
      the
      purposes of this Section 1b., “fair value” per share of Common Stock shall mean
      (A) the average of the closing sales prices, as quoted on the primary national
      or regional stock exchange on which the Common Stock is listed, or,
      if not
      listed,
      the OTC
      Bulletin Board if quoted thereon, on the twenty
      (20)
      trading
      days immediately preceding the date on which the Notice of Exercise is deemed
      to
      have been sent to the Company, or (B) if the Common Stock is not publicly traded
      as set forth above, as reasonably and in good faith determined by the Board
      of
      Directors of the Company as of the date which the notice of exercise is deemed
      to have been sent to the Company.

    

    c.  This
      Warrant may be exercised in whole or in part so long as any exercise in part
      hereof would not involve the issuance of fractional shares of Warrant Stock.
      If
      exercised in part, the Company shall deliver to the Holder a new Warrant,
      identical in form, in the name of the Holder, evidencing the right to purchase
      the number of shares of Warrant Stock as to which this Warrant has not been
      exercised, which new Warrant shall be signed by the Chairman, Chief Executive
      Officer or President and the Secretary or Assistant Secretary of the Company.
      The term Warrant as used herein shall include any subsequent Warrant issued
      as
      provided herein.

     

    d.  No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. The Company shall pay cash in lieu of fractions
      with respect to the Warrants based upon the fair market value of such fractional
      shares of Common Stock (which shall be the closing price of such shares on
      the
      exchange or market on which the Common Stock is then traded) at the time of
      exercise of this Warrant.

     

    e.  In
      the
      event of any exercise of the rights represented by this Warrant, a certificate
      or certificates for the Warrant Stock so purchased, registered in the name
      of
      the Holder, shall be delivered to the Holder within a reasonable time after
      such
      rights shall have been so exercised. The person or entity in whose name any
      certificate for the Warrant Stock is issued upon exercise of the rights
      represented by this Warrant shall for all purposes be deemed to have become
      the
      holder of record of such shares immediately prior to the close of business
      on
      the date on which the Warrant was surrendered and payment of the Warrant Price
      and any applicable taxes was made, irrespective of the date of delivery of
      such
      certificate, except that, if the date of such surrender and payment is a date
      when the stock transfer books of the Company are closed, such person shall
      be
      deemed to have become the holder of such shares at the opening of business
      on
      the next succeeding date on which the stock transfer books are open. The Company
      shall pay any and all documentary stamp or similar issue or transfer taxes
      payable in respect of the issue or delivery of shares of Common Stock on
      exercise of this Warrant.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

     

    2.  Disposition
      of Warrant Stock and Warrant.

     

    a.  The
      Holder hereby acknowledges that this Warrant and any Warrant Stock purchased
      pursuant hereto are, as of the date hereof, not registered: (i) under the
      Securities Act of 1933, as amended (the “Act”),
      on
      the ground that the issuance of this Warrant is exempt from registration under
      Section 4(2) of the Act as not involving any public offering or (ii) under
      any
      applicable state securities law because the issuance of this Warrant does not
      involve any public offering; and that the Company’s reliance on the Section 4(2)
      exemption of the Act and under applicable state securities laws is predicated
      in
      part on the representations hereby made to the Company by the Holder that it
      is
      acquiring this Warrant and will acquire the Warrant Stock for investment for
      its
      own account, with no present intention of dividing its participation with others
      or reselling or otherwise distributing the same, subject, nevertheless, to
      any
      requirement of law that the disposition of its property shall at all times
      be
      within its control.

     

    The
      Holder hereby agrees that it will not sell or transfer all or any part of this
      Warrant and/or Warrant Stock unless and until it shall first have given notice
      to the Company describing such sale or transfer and furnished to the Company
      either (i) an opinion, reasonably satisfactory to counsel for the Company,
      of
      counsel (skilled in securities matters, selected by the Holder and reasonably
      satisfactory to the Company) to the effect that the proposed sale or transfer
      may be made without registration under the Act and without registration or
      qualification under any state law, or (ii) an interpretative letter from the
      Securities and Exchange Commission to the effect that no enforcement action
      will
      be recommended if the proposed sale or transfer is made without registration
      under the Act.

     

    b.  If,
      at
      the time of issuance of the shares issuable upon exercise of this Warrant,
      no
      registration statement is in effect with respect to such shares under applicable
      provisions of the Act, the Company may at its election require that the Holder
      provide the Company with written reconfirmation of the Holder’s investment
      intent and that any stock certificate delivered to the Holder of a surrendered
      Warrant shall bear legends reading substantially as follows:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
      DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
      OF
      THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

     

    In
      addition, so long as the foregoing legend may remain on any stock certificate
      delivered to the Holder, the Company may maintain appropriate “stop transfer”
orders with respect to such certificates and the shares represented thereby
      on
      its books and records and with those to whom it may delegate registrar and
      transfer functions.

     

    3.  Reservation
      of Shares.
      The
      Company hereby agrees that at all times there shall be reserved for issuance
      upon the exercise of this Warrant such number of shares of its Common Stock
      as
      shall be required for issuance upon exercise of this Warrant. The Company
      further agrees that all shares which may be issued upon the exercise of the
      rights represented by this Warrant will be duly authorized and will, upon
      issuance and against payment of the exercise price, be validly issued, fully
      paid and non-assessable, free from all taxes, liens, charges and preemptive
      rights with respect to the issuance thereof, other than taxes, if any, in
      respect of any transfer occurring contemporaneously with such issuance and
      other
      than transfer restrictions imposed by federal and state securities
      laws.

     

    4.  Exchange,
      Transfer or Assignment of Warrant.
      This
      Warrant is exchangeable, without expense, at the option of the Holder, upon
      presentation and surrender hereof to the Company or at the office of its stock
      transfer agent, if any, for other Warrants of different denominations, entitling
      the Holder or Holders thereof to purchase in the aggregate the same number
      of
      shares of Common Stock purchasable hereunder. Upon surrender of this Warrant
      to
      the Company or at the office of its stock transfer agent, if any, with the
      Assignment Form annexed hereto duly executed and funds sufficient to pay any
      transfer tax, the Company shall, without charge, execute and deliver a new
      Warrant in the name of the assignee named in such instrument of assignment
      and
      this Warrant shall promptly be canceled. This Warrant may be divided or combined
      with other Warrants that carry the same rights upon presentation hereof at
      the
      office of the Company or at the office of its stock transfer agent, if any,
      together with a written notice specifying the names and denominations in which
      new Warrants are to be issued and signed by the Holder hereof.

     

    5.  Capital
      Adjustments.
      This
      Warrant is subject to the following further provisions:

     

    a.  Recapitalization,
      Reclassification and Succession.
      If any
      recapitalization of the Company or reclassification of its Common Stock or
      any merger or consolidation of the Company into or with a corporation or other
      business entity, or the sale or transfer of all or substantially all of the
      Company’s assets or of any successor corporation’s assets to any other
      corporation or business entity (any such corporation or other business entity
      being included within the meaning of the term “successor corporation”) shall be
      effected, at any time while this Warrant remains outstanding and unexpired,
      then, as a condition of such recapitalization, reclassification, merger,
      consolidation, sale or transfer, lawful and adequate provision shall be made
      whereby the Holder of this Warrant thereafter shall have the right to receive
      upon the exercise hereof as provided in Section 1 and in lieu of the shares
      of
      Common Stock immediately theretofore issuable upon the exercise of this Warrant,
      such shares of capital stock, securities or other property as may be issued
      or
      payable with respect to or in exchange for a number of outstanding shares of
      Common Stock equal to the number of shares of Common Stock immediately
      theretofore issuable upon the exercise of this Warrant had such
      recapitalization, reclassification, merger, consolidation, sale or transfer
      not
      taken place, and in each such case, the terms of this Warrant shall be
      applicable to the shares of stock or other securities or property receivable
      upon the exercise of this Warrant after such consummation.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

     

    b.  Subdivision
      or Combination of Shares.
      If the
      Company at any time while this Warrant remains outstanding and unexpired shall
      subdivide or combine its Common Stock, the number of shares of Warrant Stock
      purchasable upon exercise of this Warrant and the Warrant Price shall be
      proportionately adjusted.

     

    c.  Stock
      Dividends and Distributions.
      If the
      Company at any time while this Warrant is outstanding and unexpired shall issue
      or pay the holders of its Common Stock, or take a record of the holders of
      its
      Common Stock for the purpose of entitling them to receive, a dividend payable
      in, or other distribution of, Common Stock, then (i) the Warrant Price shall
      be
      adjusted in accordance with Section 5(f) and (ii) the number of shares of
      Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to
      the
      number of shares of Common Stock that the Holder would have owned immediately
      following such action had this Warrant been exercised immediately prior
      thereto.

     

    d.  Stock
      and Rights Offering to Shareholders.
      If the
      Company shall at any time after the date of issuance of this Warrant distribute
      to all holders of its Common Stock any shares of capital stock of the Company
      (other than Common Stock) or evidences of its indebtedness or assets (excluding
      cash dividends or distributions paid from retained earnings or current year’s or
      prior year’s earnings of the Company) or rights or warrants to subscribe for or
      purchase any of its securities (excluding those referred to in the immediately
      preceding paragraph) (any of the foregoing being hereinafter in this paragraph
      called the “Securities”), then in each such case, the Company shall reserve
      shares or other units of such securities for distribution to the Holder upon
      exercise of this Warrant so that, in addition to the shares of the Common Stock
      to which such Holder is entitled, such Holder will receive upon such exercise
      the amount and kind of such Securities which such Holder would have received
      if
      the Holder had, immediately prior to the record date for the distribution of
      the
      Securities, exercised this Warrant.

     

    e.  Warrant
      Price Adjustment.
      Except
      as otherwise provided herein, whenever the number of shares of Warrant Stock
      purchasable upon exercise of this Warrant is adjusted, as herein provided,
      the
      Warrant Price payable upon the exercise of this Warrant shall be adjusted to
      that price determined by multiplying the Warrant Price immediately prior to
      such
      adjustment by a fraction (i) the numerator of which shall be the number of
      shares of Warrant Stock purchasable upon exercise of this Warrant immediately
      prior to such adjustment, and (ii) the denominator of which shall be the number
      of shares of Warrant Stock purchasable upon exercise of this Warrant immediately
      thereafter.

     

    f.  Certain
      Shares Excluded.
      The
      number of shares of Common Stock outstanding at any given time for purposes
      of
      the adjustments set forth in this Section 5 shall exclude any shares then
      directly or indirectly held in the treasury of the Company.

     

    g.  Deferral
      and Cumulation of De Minimis Adjustments.
      The
      Company shall not be required to make any adjustment pursuant to this Section
      5
      if the amount of such adjustment would be less than one percent (1%) of the
      Warrant Price in effect immediately before the event that would otherwise have
      given rise to such adjustment. In such case, however, any adjustment that would
      otherwise have been required to be made shall be made at the time of and
      together with the next subsequent adjustment which, together with any adjustment
      or adjustments so carried forward, shall amount to not less than one percent
      (1%) of the Warrant Price in effect immediately before the event giving rise
      to
      such next subsequent adjustment.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

     

    h.  Duration
      of Adjustment.
      Following each computation or readjustment as provided in this Section 5, the
      new adjusted Warrant Price and number of shares of Warrant Stock purchasable
      upon exercise of this Warrant shall remain in effect until a further computation
      or readjustment thereof is required.

     

    6.  Redemption.
      This
      Warrant may be redeemed prior to the Expiration Date, at the option of the
      Company, at a price of $0.001 per share of Warrant Stock (“Redemption Price”),
      upon not less than 10 days prior written notice (“Redemption Period”) to Holder
      notifying Holder of the Company’s intent to exercise such right and setting
      forth a time and date for such redemption; provided,
      however,
      that no
      redemption under this Section 6 may occur unless (i) the Company’s Common Stock
      has had a closing sales price greater than $2.00 per share for ten (10)
      consecutive trading days and (ii) at the date of redemption notice and during
      the entire Redemption Period there is an effective registration statement
      covering the resale of the Warrant Stock. This Warrant may be exercised by
      Holder, for cash, at any time after notice of redemption has been given by
      the
      Company and prior to the time and date fixed for redemption. On and after the
      redemption date, the Holder shall have no further rights except to receive,
      upon
      surrender of this Warrant, the Redemption Price.

     

    7.  Notice
      to Holders.

     

    a.  Notice
      of Record Date.
      In
      case:

     

    (i)  the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of this Warrant) for
      the
      purpose of entitling them to receive any dividend (other than a cash dividend
      payable out of earned surplus of the Company) or other distribution, or any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities, or to receive any other right;

     

    (ii)  of
      any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, any consolidation with or merger of the Company into another
      corporation, or any conveyance of all or substantially all of the assets of
      the
      Company to another corporation; or

     

    (iii)  of
      any
      voluntary dissolution, liquidation or winding-up of the Company;

     

    then,
      and
      in each such case, the Company will mail or cause to be mailed to the Holder
      hereof at the time outstanding a notice specifying, as the case may be, (i)
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution or right, and stating the amount and character of such dividend,
      distribution or right, or (ii) the date on which such reorganization,
      reclassification, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding-up is to take place, and the time, if any, is to be fixed, as of which
      the holders of record of Common Stock (or such stock or securities at the
      time receivable upon the exercise of this Warrant) shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities) for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, dissolution or winding-up. Such notice shall
      be mailed at least thirty (30) days prior to the record date therein specified,
      or if no record date shall have been specified therein, at least thirty (30)
      days prior to such specified date, provided, however, failure to provide any
      such notice shall not affect the validity of such transaction.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

     

    b.  Certificate
      of Adjustment.
      Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company
      shall promptly make a certificate signed by its Chairman, Chief Executive
      Officer, President, Vice President, Chief Financial Officer or Treasurer,
      setting forth in reasonable detail the event requiring the adjustment, the
      amount of the adjustment, the method by which such adjustment was calculated
      and
      the Warrant Price and number of shares of Warrant Stock purchasable upon
      exercise of this Warrant after giving effect to such adjustment, and shall
      promptly cause copies of such certificates to be mailed (by first class mail,
      postage prepaid) to the Holder of this Warrant.

     

    8.  Loss,
      Theft, Destruction or Mutilation.
      Upon
      receipt by the Company of evidence satisfactory to it, in the exercise of its
      reasonable discretion, of the ownership and the loss, theft, destruction or
      mutilation of this Warrant and, in the case of loss, theft or destruction,
      of
      indemnity reasonably satisfactory to the Company and, in the case of mutilation,
      upon surrender and cancellation thereof, the Company will execute and deliver
      in
      lieu thereof, without expense to the Holder, a new Warrant of like tenor dated
      the date hereof.

     

    9.  Warrant
      Holder Not a Stockholder.
      The
      Holder of this Warrant, as such, shall not be entitled by reason of this Warrant
      to any rights whatsoever as a stockholder of the Company.

     

    10.  Notices.
      Any
      notice required or contemplated by this Warrant shall be deemed to have been
      duly given if transmitted by registered or certified mail, return receipt
      requested, or nationally recognized overnight delivery service,
      to
      the
      Company at its principal executive offices located at 336 W. 37th
      Street,
      8th
      Floor,
      New York, New York, 10018 Attention: Jonathan Gilbert, Chief Executive Officer,
      or to the Holder at the name and address set forth in the Warrant Register
      maintained by the Company.

     

    11.  Choice
      of Law.
      THIS
      WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED
      IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
      EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

     

    12.  Jurisdiction
      and Venue.
      The
      Company and Holder hereby agree that any dispute which may arise between them
      arising out of or in connection with this Warrant shall be adjudicated before
      a
      court located in New York County, New York and they hereby submit to the
      exclusive jurisdiction of the federal and state courts of the State of New
      York
      located in New York County with respect to any action or legal proceeding
      commenced by any party, and irrevocably waive any objection they now or
      hereafter may have respecting the venue of any such action or proceeding brought
      in such a court or respecting the fact that such court is an inconvenient forum,
      relating to or arising out of this Warrant or any acts or omissions relating
      to
      the sale of the securities hereunder, and consent to the service of process
      in
      any such action or legal proceeding by means of registered or certified mail,
      return receipt requested, in care of the address set forth herein or such other
      address as either party shall furnish in writing to the other.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on its
      behalf, in its corporate name and by its duly authorized officers, as of this
      __
      day of _____________________, 2007.

     

    

      
        	 	
                HALCYON
                  JETS HOLDINGS, INC.

                 

              
	 	
                By:

              	 
	
                 

              	 	
                Name:
                  Jonathan Gilbert

              
	
                 

              	 	
                Title:
                  Chief Executive Officer

              

      

    

     

     

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    FORM
      OF
      EXERCISE

     

    (to
      be
      executed by the registered holder hereof)

     

     

     

    The
      undersigned hereby exercises the right to purchase _________ shares of common
      stock, par value $0.001 per share (“Common Stock”), of Halcyon Jets Holdings,
      Inc. evidenced by the within Warrant Certificate for a Warrant Price of $1.00
      per share and herewith makes payment of the purchase price in full of (i)
      $__________ in cash or (ii) shares of Common Stock (pursuant to a Cashless
      Exercise in accordance with Section 1b.). Kindly issue certificates for shares
      of Common Stock (and for the unexercised balance of the Warrants evidenced
      by
      the within Warrant Certificate, if any) in accordance with the instructions
      given below.

     

     

     

    Dated:____________________
      , 20___ .

     

    

    

    ______________________________

    

    Instructions
      for registration of stock

    

    

    _____________________________

      Name
      (Please Print)

    

    Social
      Security or other identifying Number:

    

    Address:__________________________________

       City/State
      and Zip Code

     

    

    Instructions
      for registration of certificate representing 

    the
      unexercised balance of Warrants (if any)

     

    

    _____________________________
      

    Name
      (Please Print)

     

    Social
      Security or other identifying Number: ___________

    

    Address:____________________________________

       City,
      State and Zip Code

     

     

     

    
      
        
        

      

      -10-FORM OF LOCK-UP
      AGREEMENT

     

    August
      __, 2007        

     

    Ladies
      and Gentlemen:

     

    The
      undersigned is a director, executive officer or beneficial owner of shares
      of
      common stock (“Company
      Shares”)
      of
      Halcyon Jets, Inc., a Nevada corporation (the “Company”).
      The
      undersigned understands that the Company will merge (the “Merger”)
      with a
      wholly-owned subsidiary of a publicly traded company (the “Parent”),
      concurrently with a private placement by the Parent of up to 100 units (the
      “Units”)
      of the
      Parent, each Unit consisting of 100,000 shares of common stock, par value $0.001
      per share, of the Parent (“Parent
      Stock”)
      and a
      detachable transferable warrant to purchase 50,000 shares of Parent Stock at
      an
      exercise price of $1.00 per share (the “Funding
      Transaction”).
      The
      undersigned also understands that Meyers & Associates, Manhattan Global
      Asset Corp. and Derek Alexander and Company have acted as placement agents
      with
      respect to the Funding Transaction (the “Placement
      Agents”).
      The
      undersigned understands that the Company, the Parent and the Placement Agents
      will proceed with the Funding Transaction in reliance on this
      agreement.

     

    In
      recognition of the benefit that the Funding Transaction will confer upon the
      undersigned, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the undersigned agrees, for the
      benefit of the Company, the Parent, the Placement Agents and each investor
      in
      the Funding Transaction, that, during the period beginning on the initial
      closing of the Funding Transaction (the “Closing
      Date”)
      and
      ending eighteen (18) months after such date, the undersigned will not, without
      the prior written consent of the Placement Agents, directly or indirectly,
      offer, sell, contract to sell, grant any option to purchase, hypothecate,
      pledge, or otherwise dispose of or transfer title to any of the Parent Stock
      acquired by the undersigned in exchange for Company Shares in the
      Merger.

     

    In
      furtherance of the foregoing, the Company, the Parent and the transfer agent
      of
      the Parent are hereby authorized to decline to make any transfer of any Company
      Shares or Parent Stock if such transfer would constitute a violation or breach
      of this agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, the undersigned (and any transferee of the undersigned) may
      transfer any Company Shares or Parent Stock (i) as a bona fide gift or gifts,
      provided that prior to such transfer the donee or donees thereof agree in
      writing to be bound by the restrictions set forth herein, (ii) to any
      trust, partnership, corporation or other entity formed for the direct or
      indirect benefit of the undersigned or the immediate family of the undersigned,
      provided that prior to such transfer a duly authorized officer, representative
      or trustee of such transferee agrees in writing to be bound by the restrictions
      set forth herein, and provided further that any such transfer shall not involve
      a disposition for value, (iii) to non-profit organizations qualified as
      charitable organizations under Section 501(c)(3) of the Internal Revenue Code
      of
      1986, as amended, or (iv) if such transfer occurs by operation of law, such
      as rules of descent and distribution, statutes governing the effects of a merger
      or a qualified domestic order, provided that prior to such transfer the
      transferee executes an agreement stating that the transferee is receiving and
      holding any Company Shares or Parent Stock subject to the provisions of this
      agreement. For purposes hereof, “immediate family” shall mean any relationship
      by blood, marriage or adoption, not more remote than first cousin. In addition,
      the foregoing shall not prohibit privately negotiated transactions, provided
      the
      transferees agree, in writing, to be bound to the terms of the lock-up
      agreements for the balance of the lock-up period.

     

    [Signature
      Page Follows]

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    The
      undersigned hereby represents and warrants that the undersigned has full power
      and authority to enter into this agreement and that, upon request, the
      undersigned will execute any additional documents necessary or desirable in
      connection with the enforcement hereof. Any obligations of the undersigned
      shall
      be binding upon the heirs, personal representatives, successors and assigns
      of
      the undersigned.

     

     

      
        	 	
                Very
                  truly yours,

              
	 	
                Signature:
                  ___________________________

              
	 	
                Print
                  Name: __________________________

              
	 	
                Date:
                  August ___, 2007

              

      

    

    

     

    
      
         

      

        -3-

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