Document:

EXHIBIT 4.4

 

FORM OF WARRANT AGREEMENT

 

This Warrant
Agreement is made as of
                                
    , 2007 between Information Services Group, Inc., a
Delaware corporation, with offices at Four Stamford Plaza, 107 Elm Street,
Stamford, CT 06902 (the “Company”), and Continental Stock Transfer &
Trust Company, a New York corporation, with offices at 17 Battery Place, New
York, New York 10004 (“Warrant Agent”).

 

WHEREAS, the
Company has determined to issue and deliver to Oenoke Partners, LLC (“Oenoke”)
in a private placement 6,500,000 Warrants (the “Private Warrants”), each
of such Private Warrants evidencing the right of the holder thereof to purchase
one share of Common Stock for $6.00, subject to adjustment as provided herein;

 

WHEREAS, the
Company is engaged in a public offering (“Public Offering”) of
Units (the “Units”) and, in connection therewith, has determined to
issue and deliver to Deutsche Bank Securities Inc. (“Deutsche”), Lazard
Capital Markets (“Lazard”), and 
Morgan Joseph & Co., Inc. (“Morgan Joseph” and, together with
Deutsche and Lazard, the “Underwriters”) (i) 28,125,000 Units (the “Public
Units”), each Public consisting of one share of the Company’s Common Stock,
par value $.001 per share, and one warrant (all such warrants collectively, the
“Public Warrants”), (ii) an option to purchase up to 4,218,750
additional units (the “Over Allotment Units”), each Over Allotment Unit
consisting of one share of the Company’s Common Stock, par value $.001 per
share, and one warrant (all such warrants collectively, the “ Underwriters’
Warrants”); and (iii) an option to purchase 1,406,250 Units (all such Units
collectively, the “UPO Units”) each UPO Unit consisting of one share of
the Company’s Common Stock, par value $.001 per share, and one warrant (the “UPO
Warrants” and, together with the Public Warrants, the Private Warrants and
the Underwriter’s Warrants, the “Warrants”), each of such Warrants
evidencing the right of the holder thereof to purchase one share of Common
Stock, for $6.00 (or $7.50, in the case of the UPO Warrants), subject to
adjustment as described herein; and

 

WHEREAS, the
Company has filed with the Securities and Exchange Commission (“Commission”)
a Registration Statement, No. 333-136536 on Form S-1 (“Registration
Statement”) for the registration, under the Securities Act of 1933, as
amended (“Act”) of, among other securities, the Public Units, the
Over Allotment Units and the UPO Units, and the Common Stock issuable upon
exercise of the Public Warrants, the Underwriters’ Warrants and the UPO
Warrants; and

 

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

 

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

 

 

 

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

 

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

 

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

 

2.             WARRANTS.

 

2.1           FORM OF WARRANT. Each Warrant
shall be issued in registered form only; except as set forth herein, shall be
in substantially the form of Exhibit A attached hereto, the provisions
of which are incorporated herein; and shall be signed by, or bear the facsimile
signature of, the Chairman and Chief Executive Officer of the Company. In the
event the person whose facsimile signature has been placed upon any Warrant
shall have ceased to serve in the capacity in which such person signed the
Warrant before such Warrant is issued, it may be issued with the same effect as
if he or she had not ceased to be such at the date of issuance. All of the
Warrants shall initially be represented by one or more book-entry certificates
(each, a “Book Entry Warrant Certificate”).

 

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

 

2.3           REGISTRATION.

 

2.3.1        WARRANT REGISTER. The Warrant
Agent shall maintain books (“Warrant Register”), for the registration of
original issuance and the registration of transfer of the Warrants. Upon the
initial issuance of the Warrants, or, in the case of the Private Warrants, the
delivery of definitive warrant certificates in physical form to the Warrant
Agent, the Warrant Agent shall issue and register the Warrants in the names of
the respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Company.

 

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

 

2

 

2.4           DETACHABILITY OF WARRANTS.The
securities comprising the Units will not be separately transferable until five
business days following the earlier to occur of (i) expiration or
termination of the Underwriters’ over allotment option or (ii) its
exercise in full (the “Detachment Date”), but in no event will separate
trading of the securities comprising the Units be allowed until the Company
(a) files a Current Report on Form 8-K which includes an audited balance
sheet reflecting the receipt by the Company of the gross proceeds of the Public
Offering including the proceeds received by the Company from the exercise of
the Underwriters’ over allotment option, if the over allotment option is
exercised prior to the filing of the Form 8-K, and (b) issues a press
release announcing when such separate trading will begin.

 

2.5           PRIVATE WARRANTS, PUBLIC WARRANTS,
UPO WARRANTS AND UNDERWRITERS’ WARRANTS. The UPO Warrants shall have the
same terms and be in the same form as the Public Warrants except with respect
to the Warrant Price as set forth below in Section 3.1. The Private Warrants
shall have the same terms and be in the same form as the Public Warrants,
except that the Private Warrants may be exercised on a cashless basis, and
except with respect to the restrictions on transferability set forth in Section
3.2 hereof and such Warrants are not subject to redemption as is provided for
in Section 6.4. The Underwriters’ Warrants shall have the same terms and
be in the same form as the Public Warrants.

 

3.             TERMS
AND EXERCISE OF WARRANTS.

 

3.1           WARRANT PRICE. Each Public
Warrant, Private Warrant and Underwriters’ Warrant shall, when countersigned by
the Warrant Agent, entitle the registered holder thereof, subject to the
provisions of such Public Warrant and of this Warrant Agreement, to purchase
from the Company the number of shares of Common Stock stated therein, at an
exercise price of $6.00 per whole share, subject to the adjustments provided in
Section 4. Each UPO Warrant shall, when countersigned by the Warrant Agent,
entitle the registered holder thereof, subject to the provisions of such UPO
Warrant and of this Warrant Agreement, to purchase from the Company the number
of shares of Common Stock stated therein, at an exercise price of $7.50 per whole
share, subject to the adjustments provided in Section 4 hereof. The term “Warrant
Price” as used in this Warrant Agreement refers to the price per share at which
Common Stock may be purchased at the time a Warrant is exercised. The Company
in its sole discretion may lower the Warrant Price at any time prior to the
Expiration Date; provided, however, that any change in the Warrant Price must
apply equally to all of the Warrants, and provided further that any reduction
in Warrant Price must remain in effect for at least (20) business days.

 

3.2           DURATION OF WARRANTS. Except
as set forth in this Section 3.2, a Warrant may be exercised only during the
period (“Exercise Period”) commencing on the later of (i) the
consummation by the Company of a merger, capital stock exchange, asset or stock
acquisition or other similar business combination (“Business Combination”) (as
described more fully in the Registration Statement) and (ii)                                         
      , 2008 [One year from the effective date of
the Registration Statement], and terminating at 5:00 p.m., New York city time
on the earlier to occur of (i)                                    
, 2011 [Four years from the effective date of the Registration Statement] or
(ii) the date fixed for redemption of the Warrants as provided in Section
6 of this Warrant Agreement (“Expiration Date”). Notwithstanding the
foregoing, (1) the Private Warrants may not be sold or otherwise
transferred until that date which is one year following the date upon which the
Company consummates a Business Combination, and (2) will not be subject

 

3

 

to redemption. Except with
respect to the right to receive the Redemption Price (as set forth in Section
6 hereunder but excluding the Private Warrants), each Warrant not exercised
on or before the Expiration Date shall become void, and all rights thereunder
and all rights in respect thereof under this Warrant Agreement shall cease at
the close of business on the Expiration Date. The Company in its sole
discretion may extend the duration of the Warrants by delaying the Expiration
Date; provided, however, that any extension of the duration of the
Warrants must apply equally to all of the Warrants, except that any amendment
to the terms of the Underwriter’s Warrants shall be subject to any limitations
and conditions that may be imposed by NASD Corporate Financing Rule 2710. Should
the Company wish to extend the Expiration Date of the Warrants, the Company
shall provide advance notice to the American Stock Exchange as required by the
American Stock Exchange.

 

3.3           EXERCISE OF WARRANTS

 

3.3.1        Payment. Subject to the
provisions of the Warrant, this Warrant Agreement a Warrant, when countersigned
by the Warrant Agent, may be exercised by the registered holder thereof by
surrendering it, at the office of the Warrant Agent, or at the office of its
successor as Warrant Agent, in the Borough of Manhattan, City and State of New
York, with the subscription form, as set forth in the Warrant, duly executed,
and by paying in full, in lawful money of the United States, in cash, good
certified check or good bank draft payable to the order of the Company (or as
otherwise agreed to by the Company), the Warrant Price for each whole share of
Common Stock as to which the Warrant is exercised and any and all applicable
taxes due in connection with the exercise of the Warrant, the exchange of the
Warrant for the Common Stock, and the issuance of the Common Stock.

 

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

 

3.3.3        Limitations. Notwithstanding the
foregoing, and except with respect to the Private Warrants, the Company shall
not be obligated to deliver any Shares pursuant to the exercise of a Warrant
and shall have no obligation to settle the Warrant exercise unless a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), with respect to the Shares is effective and a current Prospectus is
on file with the Commission. Except with respect to the Private Warrants, in
the event that a registration statement with respect to the Shares underlying a
Warrant is not effective under the Securities Act or a current Prospectus is
not on file with the Commission, the holder of such Warrant shall not be
entitled to exercise such Warrant. Notwithstanding anything to the contrary in
this Warrant Agreement, under no circumstances will the Company be required to
net cash settle the Warrant exercise. Warrants may not be exercised by, or
Shares issued to, any registered holder in any state in which such exercise or
issuance would be unlawful. For the avoidance of doubt, as a result of

 

 

4

 

this Section 3.3.3, any
or all of the Warrants may expire unexercised. In no event shall the registered
Holder of a Warrant be entitled to receive any monetary damages if the Common
Stock underlying the Warrants have not been registered by the Company pursuant
to an effective registration statement or if a current prospectus is available
for delivery by the Warrant Agent, provided the Company has fulfilled its
obligation to use its reasonable best efforts to effect such registration and
ensure a current prospectus is available for delivery by the Warrant Agent.

 

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

 

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

 

4.             ADJUSTMENTS.

 

4.1.1        Stock Dividends — Split-Ups. If
after the date hereof, and subject to the provisions of Section 4.6 below, the
number of outstanding shares of Common Stock is increased by a stock dividend
payable in shares of Common Stock, or by a split-up of shares of Common Stock,
or other similar event, then, on the effective date of such stock dividend,
split-up or similar event, the number of shares of Common Stock issuable on
exercise of each Warrant shall be increased in proportion to such increase in
outstanding shares of Common Stock.

 

4.1.2        Extraordinary Dividend. If the
Company, at any time while the Warrants are outstanding and unexpired, shall
pay a dividend in cash or securities to the holders of the Common Stock (or
shares of the Company’s capital stock into which the Warrants are convertible),
then upon the exercise of the Warrants, the registered holder shall be entitled
to a proportionate share of any such dividend as if the shares of Common Stock
purchased upon exercise hereof by such registered holder had been purchased and
outstanding on the record date fixed for the determination of the holders of
the Common Stock entitled to receive such dividend.

 

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

 

4.3           ADJUSTMENTS IN EXERCISE PRICE.
Whenever the number of shares of Common Stock purchasable upon the exercise of
the Warrants is adjusted, as provided in Section

 

5

 

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

 

4.4           REPLACEMENT OF SECURITIES UPON
REORGANIZATION, ETC. In case of any reclassification or reorganization of
the outstanding shares of Common Stock (other than a change covered by Section
4.1 or 4.2 hereof or that solely affects the par value of such shares of Common
Stock), or in the case of any merger or consolidation of the Company with or
into another corporation (other than a consolidation or merger in which the
Company is the continuing corporation and that does not result in any
reclassification or reorganization of the outstanding shares of Common Stock),
or in the case of any sale or conveyance to another corporation or entity of
the assets or other property of the Company as an entirety or substantially as
an entirety in connection with which the Company is dissolved, the Warrant
holders shall thereafter have the right to purchase and receive, upon the basis
and upon the terms and conditions specified in the Warrants and in lieu of the
shares of Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented thereby, the kind and
amount of shares of stock or other securities or property (including
cash) receivable upon such reclassification, reorganization, merger or
consolidation, or upon a dissolution following any such sale or transfer, that
the Warrant holder would have received if such Warrant holder had exercised
his, her or its Warrant(s) immediately prior to such event; and if any
reclassification also results in a change in shares of Common Stock covered by
Section 4.1 or 4.2, then such adjustment shall be made pursuant to Sections
4.1, 4.2, 4.3 and this Section 4.4. The provisions of this Section 4.4 shall similarly
apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

 

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

 

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

 

4.7           FORM OF WARRANT. The form of
Warrant need not be changed because of any adjustment pursuant to this Section
4, and Warrants issued after such adjustment may state the

 

 

6

 

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

 

5.             TRANSFER
AND EXCHANGE OF WARRANTS.

 

5.1           TRANSFER OF WARRANTS. Prior to
the Detachment Date, the Public Warrants may be transferred or exchanged only
together with the Unit in which such Warrant is included, and only for the
purpose of effecting, or in conjunction with, a transfer or exchange of such
Unit. Furthermore, each transfer of a Public Unit on the register relating to
such Units shall operate also to transfer the Warrants included in such Unit. From
and after the Detachment Date this Section 5.1 will have no further force and
effect.

 

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

 

5.3           PROCEDURE FOR SURRENDER OF
WARRANTS. Warrants may be surrendered to the Warrant Agent, together with a
written request for exchange or transfer, and thereupon the Warrant Agent shall
issue in exchange therefor one or more new Warrants as requested by the
registered holder of the Warrants so surrendered, representing an equal
aggregate number of Warrants; provided, however, that except as otherwise
provided herein or in any Book-Entry Warrant Certificate, each Book-Entry
Warrant Certificate may be transferred only in whole and only to the
Depository, to another nominee of the depository, to a successor depository, or
to a nominee of a successor depository; provided further, however, that in the
event that a Warrant surrendered for transfer bears a restrictive legend, the
Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange
therefore until the Warrant Agent has received an opinion of counsel for the
Company stating that such transfer may be made and indicating whether the new
Warrants must also bear a restrictive legend.

 

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

 

5.5           SERVICE CHARGES. No service
charge shall be made for any exchange or registration of transfer of Warrants.

 

5.6           WARRANT EXECUTION AND
COUNTERSIGNATURE. The Warrant Agent is hereby authorized to countersign and
to deliver, in accordance with the terms of this Warrant Agreement, the
Warrants required to be issued pursuant to the provisions of this Section 5,
and

 

 

7

 

the Company, whenever required
by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed
on behalf of the Company for such purpose.

 

6.             REDEMPTION.

 

6.1           REDEMPTION. Subject to
Sections 6.4 and 6.5 hereof, not less than all of the outstanding Warrants may
be redeemed, at the option of the Company, at any time after they become
exercisable and prior to their expiration, at the office of the Warrant Agent,
upon the notice referred to in Section 6.2. hereof at a redemption price of
$.01 per Warrant (the “Redemption Price”), provided that the last sales
price of the Common Stock has been at least $11.50 per share, on any twenty
(20) trading days within a thirty (30) trading day period ending on
the third business day prior to the date on which notice of redemption is given.

 

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

 

6.3           EXERCISE AFTER NOTICE OF
REDEMPTION. The Warrants may be exercised in accordance with Section 3 of
this Warrant Agreement at any time after notice of redemption shall have been
given by the Company pursuant to Section 6.2 hereof and prior to the time and
date fixed for redemption. On and after the redemption date, the record holder
of the Warrants shall have no further rights except to receive, upon surrender
of the Warrants, the Redemption Price.

 

6.4           OUTSTANDING WARRANTS ONLY;
REGISTRATION OR QUALIFICATION OF COMMON STOCK. The Company understands that
the redemption rights provided for by this Section 6 apply only to outstanding
Warrants. To the extent a person holds rights to purchase Warrants, such
purchase rights shall not be extinguished by redemption. However, once such
purchase rights are exercised, the Company may redeem the Warrants issued upon
such exercise provided that the criteria for redemption is met. In the event
that the common stock issuable upon exercise of the Warrants has not been
registered or qualified or deemed to be exempt under the securities laws of the
state of residence of the holder of the Warrants, the Company will not have the
right to redeem the Warrants.

 

6.5           EXCLUSION OF PRIVATE WARRANTS.
Notwithstanding anything in this Warrant Agreement to the contrary, the Private
Warrants shall not be subject to redemption.

 

7.             OTHER
PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANTS.

 

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

 

 

8

 

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

 

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

 

7.4           REGISTRATION OF COMMON STOCK. The
Company agrees that prior to the commencement of the Exercise Period, it shall
file with the Securities and Exchange Commission a post-effective amendment to
the Registration Statement, or a new registration statement, for the
registration, under the Act, of, and it shall use its reasonable best efforts
to take such action as is necessary to qualify for sale, in those states in
which the Warrants were initially offered by the Company, the Common Stock
issuable upon exercise of the Warrants. In either case, the Company will use
its reasonable best efforts to cause the same to become effective and to maintain
the effectiveness of such registration statement until the expiration or
redemption of the Warrants in accordance with the provisions of this Warrant
Agreement; provided, however, that the Company shall not be obligated to
deliver Shares, and shall not have penalties nor be liable to the Warrant
holder for failure to deliver Shares pursuant to Section 3, if a registration
statement is not effective or a current Prospectus is not on file with the
Commission at the time of exercise of the Warrant by the holder. For the
avoidance of doubt, the Company may be liable to a Warrant holder for failure
to fulfill its obligations to use reasonable best efforts pursuant to this
Section 7.4.

 

8.             CONCERNING
THE WARRANT AGENT AND OTHER MATTERS.

 

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

 

8.2           RESIGNATION, CONSOLIDATION, OR
MERGER OF WARRANT AGENT.

 

8.2.1        APPOINTMENT OF SUCCESSOR WARRANT
AGENT. The Warrant Agent, or any successor to it hereafter appointed, may
resign its duties and be discharged from all further duties and liabilities
hereunder after giving sixty (60) days’ notice in writing to the Company. If
the office of the Warrant Agent becomes vacant by resignation or incapacity to
act or otherwise, the Company shall appoint in writing a successor Warrant
Agent in place of the Warrant Agent. If the Company shall fail to make such
appointment within a period of 30 days after it has been notified in writing of
such resignation or incapacity by the Warrant Agent or by the holder of the
Warrant (who shall, with such notice, submit his Warrant for inspection by the

 

 

9

 

Company), then the holder of
any Warrant may apply to the Supreme Court of the State of New York for the
County of New York for the appointment of a successor Warrant Agent at the
Company’s cost. Any successor Warrant Agent, whether appointed by the Company
or by such court, shall be a corporation organized and existing under the laws
of the State of New York, in good standing and having its principal office in
the Borough of Manhattan, City and State of New York, and authorized under such
laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authority. After appointment, any successor
Warrant Agent shall be vested with all the authority, powers, rights,
immunities, duties, and obligations of its predecessor Warrant Agent with like
effect as if originally named as Warrant Agent hereunder, without any further act
or deed; but if for any reason it becomes necessary or appropriate, the
predecessor Warrant Agent shall execute and deliver, at the expense of the
Company, an instrument transferring to such successor Warrant Agent all the
authority, powers, and rights of such predecessor Warrant Agent hereunder; and
upon request of any successor Warrant Agent the Company shall make, execute,
acknowledge, and deliver any and all instruments in writing for more fully and
effectually vesting in and confirming to such successor Warrant Agent all such
authority, powers, rights, immunities, duties, and obligations.

 

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

 

8.2.3        MERGER OR CONSOLIDATION OF WARRANT
AGENT. Any corporation into which the Warrant Agent may be merged or with
which it may be consolidated or any corporation resulting from any merger or
consolidation to which the Warrant Agent shall be a party shall be the
successor Warrant Agent under this Warrant Agreement without any further act.

 

8.3           FEES AND EXPENSES OF WARRANT AGENT.

 

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

 

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

 

8.4           LIABILITY OF WARRANT AGENT.

 

8.4.1        RELIANCE ON COMPANY STATEMENT. Whenever
in the performance of its duties under this Warrant Agreement, the Warrant
Agent shall deem it necessary or desirable that any fact or matter be proved or
established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein
specifically prescribed) may be deemed to be conclusively proved and

 

 

10

 

established by a statement
signed by the Chairman and Chief Executive Officer of the Company and delivered
to the Warrant Agent. The Warrant Agent may rely upon such statement for any
action taken or suffered in good faith by it pursuant to the provisions of this
Warrant Agreement.

 

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

 

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

 

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

 

8.6           Waiver. The Warrant Agent
hereby waives any and all right, title, interest or claim of any kind (“Claim”) in
or to any distribution of the Trust Account (as defined in that certain
Investment Management Trust Agreement, dated as of the date hereof, by and
between the Company and the Warrant Agent as trustee thereunder), and hereby
agrees not to seek recourse, reimbursement, payment or satisfaction for any
Claim against the Trust Account for any reason whatsoever.

 

9.             MISCELLANEOUS
PROVISIONS.

 

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

 

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

 

11

 

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

 

Information
Services Group, Inc. 

Four Stamford Plaza

107 Elm Street

Stamford, CT  06902

Attn:  Michael P. Connors

 

with a copy
to:

 

Information
Services Group, Inc. 

Four Stamford Plaza

107 Elm Street

Stamford, CT  06902

Attn:  Earl H. Doppelt

 

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

 

Continental
Stock Transfer & Trust Company

17 Battery Place

New York, New York  10004

Attn:  Compliance Department

 

with a copy in
each case to:

 

Deutsche Bank
Securities, Inc.

60 Wall Street, 4th Floor

New York, New York  10005

Attn:  [                            ]

 

And

 

Morgan Joseph
& Co., Inc.

600 Fifth
Avenue, 19th Floor

New York, New
York  10020

Attn: [                            ]

 

And

 

 

12

 

Lazard Capital
Markets

30 Rockefeller
Plaza

New York, New
York  10020

Attn: [                       ]

 

And

 

Rothstein Kass
& Company, P.C.

4 Becker Farm
Road

Roseland, NJ
07068

Attn:  Jeff Sommers

 

9.3           APPLICABLE LAW. The validity,
interpretation, and performance of this Agreement and of the Warrants shall be
governed in all respects by the laws of the State of New York, without giving
effect to the conflicts of law principle thereof. The Company and the Warrant
Agent each hereby agrees that any action, proceeding or claim against it
arising out of or relating in any way to this Agreement shall be brought and
enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to such
jurisdiction, which jurisdiction shall be exclusive. The Company and the
Warrant Agent each hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenience forum. Any such process or
summons to be served upon the Company or the Warrant Agent may be served by
transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section
9.2 hereof. Such mailing shall be deemed personal service and shall be legal
and binding upon the Company or the Warrant Agent in any action, proceeding or
claim.

 

9.4           AMENDMENT. This Agreement and
the warrant certificate issued hereunder may be amended by the parties hereto
without the consent of any registered holder for the purpose of curing any
ambiguity, or curing, correcting or supplementing any defective provision
contained herein or adding or changing any other provisions with respect to
matters or questions arising under this Agreement as the parties may deem
necessary or desirable and that the parties deem shall not adversely affect the
interest of the registered holders. All other modifications or amendments,
including any amendment to increase the Warrant Price or shorten the Exercise
Period, shall require the written consent of each of (i) Deutsche, as
representative of the Underwriters and (ii) the registered holders of a
majority of the then outstanding Warrants and no modification or amendment
shall affect the Public Warrants and the Private Warrants differently from one
another. Notwithstanding the foregoing, the Company may lower the Warrant Price
or extend the duration of the Exercise Period in accordance with Sections 3.1
and 3.2 hereof, without such consent.

 

9.5           PERSONS HAVING RIGHTS UNDER THIS
AGREEMENT. Nothing in this Agreement expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed,
to confer upon, or give to, any person or corporation other than the parties
hereto and the registered holders of the Warrants, any right, remedy, or claim
under or by reason of this Warrant Agreement or of any covenant, condition,
stipulation, promise, or

 

13

 

agreement hereof. All
covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties
hereto  and their successors and assigns and of the registered holders of
the Warrants.

 

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

 

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

 

9.8           EFFECT OF HEADINGS. The
Section headings herein are for convenience only and are not part of this
Warrant Agreement and shall not affect the interpretation thereof.

 

14

 

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

 

	
  Attest:

  	
  INFORMATION
  SERVICES GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael P.
  Connors

  
	
   

  	
  Title:

  	
  Chairman and
  Chief Executive Officer

  
	
   

  	
   

  
	
  Attest:

  	
  CONTINENTAL
  STOCK TRANSFER & TRUST

  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
							

 

15Exhibit 4.5

 

THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS
PURCHASE OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS
PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF 180 DAYS FOLLOWING THE
EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) DEUTSCHE BANK
SECURITIES INC.  (“DEUTSCHE BANK”) OR AN
UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING (DEFINED
BELOW), OR (II) A BONA FIDE OFFICER OR PARTNER OF DEUTSCHE BANK OR OF ANY SUCH
UNDERWRITER OR SELECTED DEALER.  THIS
PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF (I) THE CONSUMMATION
BY INFORMATION SERVICES GROUP, INC. (“COMPANY”) OF A MERGER, CAPITAL STOCK
EXCHANGE, ASSET OR STOCK ACQUISITION OR OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS
COMBINATION”) (AS DESCRIBED MORE FULLY
IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)) AND (II)                   ,
2008.  VOID AFTER 5:00 P.M. NEW YORK
CITY LOCAL TIME,                   ,
2011.

 

UNIT PURCHASE OPTION

FOR THE PURCHASE OF

1,406,250 UNITS

OF

INFORMATION SERVICES GROUP, INC.

 

1.                                       PURCHASE OPTION.

 

THIS CERTIFIES THAT, in consideration of $100.00
duly paid by or on behalf of                   
(“HOLDER”), as registered owner of this Purchase Option (“PURCHASE OPTION”), to
Information Services Group, Inc. (“COMPANY”), Holder is entitled, at any
time or from time to time upon the later of the consummation of a Business
Combination or                   ,
2008 (“COMMENCEMENT DATE”), and at or before 5:00 p.m., New York City
local time,                   ,
2011 (“EXPIRATION DATE”), but not thereafter, to subscribe for, purchase and
receive, in whole or in part, up to 1,406,250 units (“UNITS”) of the Company,
each Unit consisting of one share of common stock of the Company, par value
$0.001 per share (“COMMON STOCK”), and one warrant (“WARRANT”) expiring four
years from the effective date (“EFFECTIVE DATE”) of the registration statement
(“REGISTRATION STATEMENT”) pursuant to which Units are offered for sale to the
public (“OFFERING”).  Each Warrant is the
same as the warrants included in the Units being registered for sale to the
public by way of the Registration Statement (“PUBLIC WARRANTS”), except that
the exercise price of the Warrant is $7.50 per share (such exercise price, as
it may be adjusted hereunder, the “Underwriter’s Warrant Price”).  If the Expiration Date is a day on which
banking institutions are authorized by law to close in New York City, then this
Purchase Option may be exercised on the next succeeding day which is not such a
day in accordance with the terms herein. 
During the period ending on the Expiration Date, the Company agrees not
to take any action that would terminate the Purchase Option.  This Purchase Option is initially exercisable
at $9.60 per Unit so purchased; provided, however, that upon the occurrence of
any of the events specified in Section 6 hereof, the rights granted by
this Purchase Option, including the exercise price per Unit and the number of
Units (and shares of Common Stock and Warrants) to be received upon such
exercise, shall be adjusted as therein specified.  The term “EXERCISE PRICE” shall mean the
initial exercise price per Unit or the adjusted exercise price per Unit,
depending on the context.

 

 

2.                                       EXERCISE.

 

2.1.                              EXERCISE FORM.  In order to exercise this Purchase Option,
the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Option and payment of the
Exercise Price for the Units being purchased payable in cash or by certified
check or official bank check.  If the
subscription rights represented hereby shall not be exercised at or before 5:00 p.m.,
New York City local time, on the Expiration Date, this Purchase Option shall
become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2.                              CASHLESS EXERCISE.

 

2.2.1.                     DETERMINATION OF AMOUNT.  In lieu of the payment of the Exercise Price
multiplied by the number of Units for which this Purchase Option is exercisable
(and in lieu of being entitled to receive Common Stock and Warrants) in the
manner required by Section 2.1, the Holder shall have the right (but not
the obligation) to convert any exercisable but unexercised portion of this
Purchase Option into Units (“CONVERSION RIGHT”) as follows:  upon exercise of the Conversion Right, the
Company shall deliver to the Holder (without payment by the Holder of any of
the Exercise Price in cash) that number of Units (or that number of shares of
Common Stock and Warrants comprising that number of Units) equal to the quotient
obtained by dividing (x) the Value (as defined below) of the portion of the
Purchase Option being converted by (y) the Current Market Value (as defined
below) of a Unit.  The “VALUE” of the
portion of the Purchase Option being converted shall equal the remainder
derived from subtracting (a) (i) the Exercise Price multiplied by (ii) the
number of Units underlying the portion of this Purchase Option being converted
from (b) the Current Market Value of a Unit multiplied by the number of
Units underlying the portion of the Purchase Option being converted.  As used herein, the term “CURRENT MARKET
VALUE” per Unit at any date means: (A) in the event that neither the Units
nor Public Warrants are still trading, the remainder derived from subtracting
(x) the exercise price of the Warrants multiplied by the number of shares of
Common Stock issuable upon exercise of the Warrants underlying one Unit from
(y) (i) the Current Market Price of the Common Stock multiplied by (ii) the
number of shares of Common Stock underlying one Unit, which shall include the
shares of Common Stock underlying the Warrants included in such Unit; (B) in
the event that the Units, Common Stock and Public Warrants are still trading, (i) if
the Units are listed on a national securities exchange or quoted on the Nasdaq
Global Market, Nasdaq Capital Market or NASD OTC Bulletin Board (or successor
exchange), the last sale price of the Units in the principal trading market for
the Units as reported by the exchange, Nasdaq or the NASD, as the case may be,
on the last trading day preceding the date in question; or (ii) if the
Units are not listed on a national securities exchange or quoted on the Nasdaq
Global Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or
successor exchange), but is traded in the residual over-the-counter market, the
closing bid price for Units on the last trading day preceding the date in
question for which such quotations are reported by the Pink Sheets, LLC or
similar publisher of such quotations; and (C) in the event that the Units
are not still trading but the Common Stock and Public Warrants underlying the
Units are still trading, the Current Market Price of the Common Stock plus the product
of (x) the Current Market Price of the Public Warrants and (y) the number of
shares of Common Stock underlying the Warrants included in one Unit.  The “CURRENT MARKET PRICE” shall mean (i) if
the Common Stock (or Public Warrants, as the case may be) is listed on a
national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
Capital Market or NASD OTC Bulletin Board (or successor exchange), the last sale
price of the Common Stock (or Public Warrants) in the principal trading market
for the Common Stock as reported by the exchange, Nasdaq or the NASD, as the
case may be, on the last trading day preceding the date in question; (ii) if
the Common Stock (or Public Warrants, as the case may be) is not listed on a national
securities exchange or quoted on the Nasdaq Global

 

2

 

Market, Nasdaq
Capital Market or the NASD OTC Bulletin Board (or successor exchange), but is
traded in the residual over-the-counter market, the closing bid price for the
Common Stock (or Public Warrants) on the last trading day preceding the date in
question for which such quotations are reported by the Pink Sheets, LLC or
similar publisher of such quotations; and (iii) if the fair market value
of the Common Stock cannot be determined pursuant to clause (i) or (ii) above,
such price as the Board of Directors of the Company shall determine, in good
faith.  In the event the Public Warrants
have expired and are no longer exercisable, no “VALUE” shall be attributed to
the Warrants underlying this Purchase Option. 
Additionally, in the event that this Purchase Option is exercised
pursuant to this Section 2.2 and the Public Warrants are still trading,
the “VALUE” shall be reduced by the difference between the Warrant Exercise
Price and the exercise price of the Public Warrants multiplied by the number of
Warrants underlying the Units included in the portion of this Purchase Option
being converted.

 

2.2.2.                     MECHANICS OF CASHLESS EXERCISE.  The cashless exercise right described in this
Section 2.2 (the “CASHLESS EXERCISE RIGHT”) may be exercised by the Holder
on any business day on or after the Commencement Date and not later than the
Expiration Date by delivering the Purchase Option with the duly executed
exercise form attached hereto with the cashless exercise section completed
to the Company, exercising the Cashless Exercise Right and specifying the total
number of Units the Holder will purchase pursuant to such Cashless Exercise
Right.

 

2.3.                              LIMITATIONS.  Notwithstanding the foregoing, the Company
shall not be obligated to deliver any securities pursuant to the exercise of a
Purchase Option and shall have no obligation to settle the Purchase Option
exercise unless a registration statement under the Securities Act of 1933, as
amended (the “SECURITIES ACT”), with respect to the securities underlying the
Purchase Option is effective and a current prospectus is on file with the
Securities and Exchange Commission (the “COMMISSION”).  In the event that a registration statement
with respect to the securities underlying a Purchase Option is not effective
under the Securities Act or a current prospectus is not on file with the
Commission, the holder of such Purchase Option shall not be entitled to
exercise such Purchase Option. 
Notwithstanding anything to the contrary in this Purchase Option, under
no circumstances will the Company be required to net cash settle the Purchase
Option exercise.  Purchase Options may
not be exercised by, or securities underlying such Purchase Option issued to,
any registered holder in any state in which such exercise or issuance would be
unlawful.  For the avoidance of doubt, as
a result of this Section 2.3, any or all of the Purchase Option may expire
unexercised.  In no event shall the
registered Holder of this Purchase Option be entitled to receive any monetary
damages if the securities underlying this Purchase Option have not been registered
by the Company pursuant to an effective registration statement or if a current
prospectus is not on file with the Commission, provided the Company has
fulfilled its obligation to use its reasonable best efforts to effect such
registration and ensure a current prospectus is on file with the Commission.

 

3.                                       TRANSFER.

 

3.1.                              GENERAL RESTRICTIONS.  The registered Holder of this Purchase
Option, by its acceptance hereof, agrees that it will not sell, transfer,
assign, pledge or hypothecate, or enter into any hedging, short sale,
derivative, put, or call transaction that would result in the effective
economic disposition of, this Purchase Option for a period of 180 days
following the Effective Date to anyone other than (i) Deutsche Bank or an
underwriter or a selected dealer in connection with the Offering, or (ii) a
bona fide officer or partner of Deutsche Bank or of any such underwriter or
selected dealer.  On and after the 181st
day after the Effective Date, transfers to others may be made subject to
compliance with or exemptions from applicable securities laws.  In order to make any permitted assignment,
the Holder must deliver to the Company the assignment form attached hereto duly
executed and completed, together with the Purchase Option and payment of all
transfer taxes, if any, payable in connection therewith.  The

 

3

 

Company
shall within five business days transfer this Purchase Option on the books of
the Company and shall execute and deliver a new Purchase Option or Purchase
Options of like tenor to the appropriate assignee(s) expressly evidencing the
right to purchase the aggregate number of Units purchasable hereunder or such
portion of such number as shall be contemplated by any such assignment.

 

3.2.                              RESTRICTIONS IMPOSED BY THE SECURITIES ACT.  The securities evidenced by this Purchase
Option shall not be transferred unless and until (i) the Company has
received the opinion of counsel for the Holder that the securities may be
transferred pursuant to an exemption from registration under the Securities Act
and applicable state securities laws, the availability of which is established
to the reasonable satisfaction of the Company (the Company hereby agreeing that
the opinion of Kramer Levin Naftalis & Frankel LLP shall be deemed
satisfactory evidence of the availability of an exemption), or (ii) a
registration statement or a post-effective amendment to the Registration
Statement relating to such securities has been filed by the Company and
declared effective by the Commission and compliance with applicable state
securities law has been established.

 

4.                                       NEW PURCHASE OPTIONS TO BE ISSUED.

 

4.1.                              PARTIAL EXERCISE OR TRANSFER.  Subject to the restrictions in Section 3
hereof, this Purchase Option may be exercised or assigned in whole or in
part.  In the event of the exercise or
assignment hereof in part only, upon surrender of this Purchase Option for
cancellation, together with the duly executed exercise or assignment form and
funds sufficient to pay any Exercise Price and/or transfer tax, the Company shall
cause to be delivered to the Holder without charge a new Purchase Option of
like tenor to this Purchase Option in the name of the Holder evidencing the
right of the Holder to purchase the number of Units purchasable hereunder as to
which this Purchase Option has not been exercised or assigned.

 

4.2.                              LOST CERTIFICATE.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Option and of reasonably satisfactory indemnification or the posting
of a bond, the Company shall execute and deliver a new Purchase Option of like
tenor and date.  Any such new Purchase
Option executed and delivered as a result of such loss, theft, mutilation or
destruction shall constitute a substitute contractual obligation on the part of
the Company.

 

5.                                       REGISTRATION RIGHTS.

 

5.1.                              DEMAND REGISTRATION.

 

5.1.1.                     GRANT OF RIGHT. 
The Company, upon written demand (“INITIAL DEMAND NOTICE”) of the
Holder(s) of at least 50.1% of the Purchase Options and/or the underlying Units
and/or the underlying securities (“MAJORITY HOLDERS”), agrees to use its
reasonable best efforts to register (the “DEMAND REGISTRATION”) under the
Securities Act on one occasion, all of the Purchase Options requested by the
Majority Holders in the Initial Demand Notice and all of the securities
underlying such Purchase Options, including the Units, Common Stock, the
Warrants and the Common Stock underlying the Warrants (collectively, the “REGISTRABLE
SECURITIES”).  On such occasion, the
Company will file a registration statement for use in an offering of the
Registrable Securities from time-to-time or a post-effective amendment to the
Registration Statement covering all of the Registrable Securities that will
permit an offering of the Registrable Securities from time-to-time within sixty
days after receipt of the Initial Demand Notice and use its reasonable best
efforts to have such registration statement or post-effective amendment
declared effective as soon as possible thereafter.  The demand for registration may be made at
any time during a period of four years beginning on the

 

4

 

Effective
Date.  The Initial Demand Notice shall
specify the intended method(s) of distribution of the Registrable Securities.  The Company will notify all holders of the
Purchase Options and/or Registrable Securities of the demand within ten days
from the date of the receipt of any such Initial Demand Notice.  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 5.1.4.

 

5.1.2.                     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.

 

5.1.3.                     UNDERWRITTEN OFFERING. 
If the Majority Holders so elect and such holders so advise the Company
as part of the Initial Demand Notice, the offering of all or any portion of the
Registrable Securities pursuant to such Demand Registration shall be in the
form of one underwritten offering.  All
Demanding Holders proposing to distribute their securities through such
underwriting shall enter into an underwriting agreement in customary form with
the underwriter or underwriters selected for such underwriting by the Majority
Holders.

 

5.1.4.                     REDUCTION OF OFFERING. 
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 pursuant to the
underwritten offering, 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 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 by the Demanding Holders that want
to participate in such underwritten offering (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; (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
registrable pursuant to the terms of the Registration Rights Agreement between
the Company and the initial investors in the Company, dated as of

 

5

 

                  ,
2007 (the “REGISTRATION RIGHTS AGREEMENT” and such registrable securities, the “INVESTOR
SECURITIES”) as to which “piggy-back” registration has been requested by the
holders thereof, Pro Rata, that can be sold without exceeding the Maximum
Number of Shares; and (iv) fourth, to the extent that the Maximum Number
of Shares have not been reached under the foregoing clauses (i), (ii), and
(iii), 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.

 

5.1.5.                     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 5.1, provided that
the majority-in-interest of the Demanding Holders electing to so withdraw from
the offering pays all costs and expenses incurred by the Company in connection
with such withdrawn Demand Registration.

 

5.1.6.                     TERMS.  The
Company shall bear all fees and expenses attendant to registering the
Registrable Securities, including the expenses of any legal counsel selected by
the Holders to represent them in connection with the sale of the Registrable
Securities, but the Holders shall pay any and all underwriting
commissions.  The Company agrees to use
its reasonable best efforts to qualify or register the Registrable Securities
in such states as are reasonably requested by the Majority Holder(s); provided,
however, that in no event shall the Company be required to register the
Registrable Securities in a state in which such registration would cause (i) the
Company to be obligated to qualify to do business in such state, or would subject
the Company to taxation as a foreign corporation doing business in such
jurisdiction or (ii) the principal stockholders of the Company to be obligated
to escrow their shares of capital stock of the Company.  The Company shall use its reasonable best
efforts to cause any registration statement or post-effective amendment filed
pursuant to the demand rights granted under Section 5.1.1 to remain
effective until the expiration of the Warrants in accordance with the terms and
conditions of that certain Warrant Agreement, dated as of                       ,
2007, between the Company and Continental Stock Transfer & Trust
Company.

 

5.1.7.                     PERMITTED DELAYS. 
The Company shall be entitled to postpone, for up to 60 days, the filing
of any registration statement under this Section 5.1, if (a) at any
time prior to the filing of such registration statement the Company’s Board of
Directors determines, in its good faith business judgment, that such
registration and offering would materially and adversely affect any financing,
acquisition, corporate reorganization, or other material transaction involving
the Company, and (b) the Company delivers to the Demanding Holders written
notice thereof within five (5) business days of the date of receipt of a request
for Demand Registration.

 

5.2.                              PIGGY-BACK REGISTRATION.

 

5.2.1.                     PIGGY-BACK RIGHTS. 
If at any time during the seven year period commencing on the Effective
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

 

6

 

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 5.1),
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, (v) on
Form S-4 filed in connection with an acquisition transaction or (v) 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 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 five 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 reasonable 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 on the same terms and conditions as any
similar securities of the Company and to permit the sale or 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.

 

5.2.2.                     REDUCTION OF OFFERING. 
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 which the Company desires to sell, taken together
with shares of Common Stock, 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 5.2, and the
shares of Common Stock, 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:

 

(a)  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 Investor 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;

 

(b)  If the registration is a “DEMAND” registration undertaken at the
demand of holders of Investor Securities, (A) first, the shares of Common
Stock or other securities

 

7

 

for
the account of the demanding persons, Pro Rata, 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 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 arrangements with such persons, that can be
sold without exceeding the Maximum Number of Shares; and

 

(c)  If the registration is a “DEMAND” registration undertaken at the
demand of persons other than either the holders of Registrable Securities or of
Investor Securities, (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), collectively the shares of Common Stock or
other securities comprised of Registrable Securities and Investor Securities,
Pro Rata, as to which registration has been requested pursuant to the terms
hereof and of the Registration Rights Agreement, as applicable, 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 arrangements with such persons, that can be
sold without exceeding the Maximum Number of Shares.

 

5.2.3.                     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 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 5.2.4.

 

5.2.4.                     TERMS.  The
Company shall bear all fees and expenses attendant to registering the
Registrable Securities but the Holders shall pay any and all underwriting
commissions related to the Registrable Securities.  In the event of such a proposed registration,
the Company shall furnish the then Holders of outstanding Registrable
Securities with not less than fifteen days written notice prior to the proposed
date of filing of such registration statement. 
Such notice to the Holders shall continue to be given for each
applicable registration statement filed (during the period in which the
Purchase Option is exercisable) by the Company until such time as all of the
Registrable Securities have been registered and sold.  The Holders of the Registrable Securities
shall exercise the “piggy-back” rights provided for herein by giving written
notice, within ten

 

8

 

days of the
receipt of the Company’s notice of its intention to file a registration
statement.  The Company shall use its reasonable
best efforts to cause any registration statement filed pursuant to the above “piggy-back”
rights to remain effective for at least nine months from the date that the
Holders of the Registrable Securities are first given the opportunity to sell
all of such securities.

 

5.2.5.                     PERMITTED DELAYS. 
The Company shall be entitled to postpone, for up to 60 days, the filing
of any registration statement under this Section 5.2, if (a) at any
time prior to the filing of such registration statement the Company’s Board of
Directors determines, in its good faith business judgment, that such
registration and offering would materially and adversely affect any financing,
acquisition, corporate reorganization, or other material transaction involving
the Company, and (b) the Company delivers to the Holders of the
Registrable Securities exercising their “piggy-back” rights written notice
thereof within five (5) business days of the date of receipt by the
Company of such requests for Piggy-Back Registration.

 

5.3.                              GENERAL TERMS.

 

5.3.1.                     INDEMNIFICATION. 
The Company shall indemnify the Holder(s) of the Registrable Securities
to be sold pursuant to any registration statement hereunder and each person, if
any, who controls such Holders within the meaning of Section 15 of the
Securities Act or Section 20(a) of the Securities Exchange Act of
1934, as amended (“EXCHANGE ACT”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against
litigation, commenced or threatened, or any claim whatsoever whether arising
out of any action between the underwriter and the Company or between the
underwriter and any third party or otherwise) to which any of them may become
subject under the Securities Act, the Exchange Act or otherwise, arising from
such registration statement but only to the same extent and with the same
effect as the provisions pursuant to which the Company has agreed to indemnify
the underwriter contained in Section 8(a) of the Underwriting
Agreement between the Company and Deutsche Bank dated the Effective Date.  The Holder(s) of the Registrable Securities
to be sold pursuant to such registration statement, and their successors and
assigns, shall severally, and not jointly, indemnify the Company, its officers
and directors and each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20(a) of
the Exchange Act, against all loss, claim, damage, expense or liability (including
all reasonable attorneys’ fees and other expenses reasonably incurred in
investigating, preparing or defending against litigation, commenced or
threatened, or any claim whatsoever whether arising out of any action between
the underwriter and the Company or between the Company and any third party or
otherwise) to which they may become subject under the Securities Act, the
Exchange Act or otherwise, arising from information furnished by or on behalf
of such Holders, or their successors or assigns, in writing, for specific
inclusion in such registration statement to the same extent and with the same
effect as the provisions contained in Section 8(b) of the
Underwriting Agreement pursuant to which the underwriters have agreed to
indemnify the Company.

 

5.3.2.                     EXERCISE OF PURCHASE OPTIONS.  Nothing contained in this Purchase Option
shall be construed as requiring the Holder(s) to exercise their Purchase
Options or Warrants underlying such Purchase Options prior to or after the
initial filing of any registration statement or the effectiveness thereof.

 

5.3.3.                     DOCUMENTS DELIVERED TO HOLDERS.  The Company shall furnish to the Holders
participating in any of the foregoing offerings, a signed counterpart,
addressed to the participating Holders, of (i) an opinion of counsel to
the Company, dated the effective date of such registration statement (and, if
such registration includes an underwritten public offering, an

 

9

 

opinion dated the
date of the closing under any underwriting agreement related thereto), and (ii) a
“cold comfort” letter dated the effective date of such registration statement
(and, if such registration includes an underwritten public offering, a letter
dated the date of the closing under the underwriting agreement) signed by the
independent public accountants who have issued a report on the Company’s
financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration
statement (and the prospectus included therein) and, in the case of such
accountants’ letter, with respect to events subsequent to the date of such
financial statements, as are customarily covered in opinions of issuer’s
counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities.  The
Company shall also deliver promptly to the Holders participating in the
offering, the correspondence and memoranda described below and copies of all
correspondence between the Commission and the Company, its counsel or auditors
and all memoranda relating to discussions with the Commission or its staff with
respect to the registration statement and permit the Holders, to do such
investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the
National Association of Securities Dealers, Inc. (“NASD”).  Such investigation shall include access to
books, records and properties and opportunities to discuss the business of the
Company with its officers and independent auditors, all to such reasonable
extent and at such reasonable times and as often as the Holders shall
reasonably request.  The Company shall
not be required to disclose any confidential information or other records to the
Holders, or to any other person, until and unless such persons shall have
entered into reasonable confidentiality agreements (in form and substance
reasonably satisfactory to the Company), with the Company with respect thereto.

 

5.4.                              UNDERWRITING AGREEMENT.  The Company shall enter into an underwriting
agreement with the managing underwriter(s), if any, selected by any Holders
whose Registrable Securities are being registered pursuant to this Section 5,
which managing underwriter shall be reasonably acceptable to the Company.  Such agreement shall be reasonably
satisfactory in form and substance to the Company, each Holder and such
managing underwriters, and shall contain such representations, warranties and
covenants by the Company and such other terms as are customarily contained in
agreements of that type used by the managing underwriter.  The Holders shall be parties to any
underwriting agreement relating to an underwritten sale of their Registrable
Securities and may, at their option, require that any or all the
representations, warranties and covenants of the Company to or for the benefit
of such underwriters shall also be made to and for the benefit of such
Holders.  Such Holders shall not be
required to make any representations or warranties to or agreements with the
Company or the underwriters except as they may relate to such Holders and their
intended methods of distribution.  Such
Holders, however, shall agree to such covenants and indemnification and contribution
obligations for selling stockholders as are customarily contained in agreements
of that type used by the managing underwriter. 
Further, such Holders shall execute appropriate custody agreements and
otherwise cooperate fully in the preparation of the registration statement and
other documents relating to any offering in which they include securities
pursuant to this Section 5.  Each
Holder shall also furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such
securities as shall be reasonably required to effect the registration of the
Registrable Securities.

 

5.4.1.                     RULE 144 SALE. 
Notwithstanding anything contained in this Section 5 to the
contrary, the Company shall have no obligation pursuant to Sections 5.1 or 5.2
for the registration of Registrable Securities held by any Holder (i) where
such Holder would then be entitled to sell under Rule 144 within any
three-month period (or such other period prescribed under Rule 144 as may
be provided by amendment thereof) all of the Registrable Securities then held
by such Holder, and (ii) where the number of Registrable Securities held
by such Holder is within the

 

10

 

volume limitations
under paragraph (e) of Rule 144 (calculated as if such Holder were an
affiliate within the meaning of Rule 144).

 

5.4.2.                     SUPPLEMENTAL PROSPECTUS.  Each Holder agrees, that upon receipt of any
notice from the Company of the happening of any event as a result of which the
prospectus included in the registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, such Holder will
immediately discontinue disposition of Registrable Securities pursuant to the registration
statement covering such Registrable Securities until such Holder’s receipt of
the copies of a supplemental or amended prospectus, and, if so desired by the
Company, such Holder shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of such
destruction) all copies, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities current at
the time of receipt of such notice.

 

6.                                       ADJUSTMENTS.

 

6.1.                              ADJUSTMENTS TO EXERCISE PRICE AND NUMBER
OF SECURITIES.  The Exercise Price and
the number of Units underlying the Purchase Option shall be subject to
adjustment from time to time as hereinafter set forth:

 

6.1.1.                     STOCK DIVIDENDS--SPLIT-UPS.  If after the date hereof, and subject to the
provisions of Section 6.3 below, the number of outstanding shares of
Common Stock is increased by a stock dividend payable in shares of Common
Stock, or by a split-up of shares of Common Stock or other similar event, then,
on the effective date thereof, the number of shares of Common Stock underlying
each of the Units purchasable hereunder shall be increased in proportion to
such increase in outstanding shares.  In
such case, the number of shares of Common Stock, and the exercise price applicable
thereto, underlying the Warrants underlying each of the Units purchasable
hereunder shall be adjusted in accordance with the terms of the Warrants.  For example, if the Company declares a
two-for-one stock dividend and at the time of such dividend this Purchase
Option is for the purchase of one Unit at $9.60 per whole Unit (each Warrant
underlying the Units is exercisable for $7.50 per share), upon effectiveness of
the dividend, this Purchase Option will be adjusted to allow for the purchase
of one Unit at $9.60 per Unit, each Unit entitling the holder to receive two
shares of Common Stock and two Warrants (each Warrant exercisable for $3.75 per
share).

 

6.1.2.                     EXTRAORDINARY DIVIDEND.  If the Company, at any time while this
Purchase Option is outstanding and unexpired, shall pay a dividend or make a
distribution in cash, securities or other assets to the holders of Common Stock
(or other shares of the Company’s capital stock receivable upon exercise of the
Purchase Option), other than (i) as described in Sections 6.1.1, 6.1.3 or
6.1.4, (ii) regular quarterly or other periodic dividends, (iii) in
connection with the conversion rights of the holders of Common Stock upon
consummation of the Company’s initial Business Combination or (iv) in
connection with the Company’s liquidation and the distribution of its assets
upon its failure to consummate a Business Combination (any such non-excluded
event being referred to herein as an “Extraordinary Dividend”), then the
Exercise Price shall be decreased, effective immediately after the effective
date of such Extraordinary Dividend, by the amount of cash and/or the fair
market value (as determined by the Company’s Board of Directors, in good faith)
of any securities or other assets paid on each share of Common Stock in respect
of such Extraordinary Dividend.

 

11

 

6.1.3.                     AGGREGATION OF SHARES. 
If after the date hereof, and subject to the provisions of Section 6.3,
the number of outstanding shares of Common Stock is decreased by a
consolidation, combination or reclassification of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares
of Common Stock underlying each of the Units purchasable hereunder shall be
decreased in proportion to such decrease in outstanding shares.  In such case, the number of shares of Common
Stock, and the exercise price applicable thereto, underlying the Warrants
underlying each of the Units purchasable hereunder shall be adjusted in
accordance with the terms of the Warrants.

 

6.1.4.                     REPLACEMENT OF SECURITIES UPON REORGANIZATION,
ETC.  In case of any reclassification or
reorganization of the outstanding shares of Common Stock other than a change
covered by Section 6.1.1 or 6.1.3 hereof or that solely affects the par
value of such shares of Common Stock, or in the case of any merger or
consolidation of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the continuing corporation and
that does not result in any reclassification or reorganization of the
outstanding shares of Common Stock), or in the case of any sale or conveyance
to another corporation or entity of the property of the Company as an entirety
or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Option shall have the right thereafter
(until the expiration of the right of exercise of this Purchase Option) to
receive upon the exercise hereof, for the same aggregate Exercise Price payable
hereunder immediately prior to such event, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a
dissolution following any such sale or transfer, by a Holder of the number of
shares of Common Stock of the Company obtainable upon exercise of this Purchase
Option and the underlying Warrants immediately prior to such event; and if any reclassification
also results in a change in shares of Common Stock covered by Section 6.1.1
or 6.1.3, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.3
and this Section 6.1.4.  The
provisions of this Section 6.1.4 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other
transfers.

 

6.1.5.                     CHANGES IN FORM OF PURCHASE OPTION.  This form of Purchase Option need not be
changed because of any change pursuant to this Section, and Purchase Options
issued after such change may state the same Exercise Price and the same number
of Units as are stated in the Purchase Options initially issued pursuant to
this Agreement.  The acceptance by any
Holder of the issuance of new Purchase Options reflecting a required or
permissive change shall not be deemed to waive any rights to an adjustment
occurring after the Commencement Date or the computation thereof.

 

6.1.6.                     ADJUSTMENTS OF WARRANTS.  To the extent the price of the Warrants is
lowered pursuant to Section 3.1 of the Warrant Agreement, dated                             ,
2007, between the Company and Continental Stock Transfer & Trust
Company (the “WARRANT AGREEMENT”) the price of the Warrants underlying the
Purchase Option shall be reduced equally (except that the Warrant Price (as
defined in the Warrant Agreement) for the Warrants shall always remain equal to
125% of the Warrant Price for the Public Warrants), subject to any limitations
and conditions that may be imposed by NASD Corporate Financing Rule 2710
and any such reduction must remain in effect for at least twenty (20) business
days.  To the extent the duration of the Warrants
is extended pursuant to Section 3.2 of the Warrant Agreement, the duration
of the Warrants underlying the Purchase Option shall be extended on identical
terms, subject to any limitations that may be imposed by NASD Corporate
Financing Rule 2710.

 

12

 

6.2.                              SUBSTITUTE PURCHASE OPTION.  In case of any consolidation of the Company
with, or merger of the Company with, or merger of the Company into, another
corporation (other than a consolidation or merger which does not result in any
reclassification or change of the outstanding Common Stock), the corporation
formed by such consolidation or merger shall execute and deliver to the Holder
a supplemental Purchase Option providing that the holder of each Purchase
Option then outstanding or to be outstanding shall have the right thereafter
(until the stated expiration of such Purchase Option) to receive, upon exercise
of such Purchase Option, the kind and amount of shares of stock and other
securities and property receivable upon such consolidation or merger, by a
holder of the number of shares of Common Stock of the Company for which such
Purchase Option might have been exercised immediately prior to such
consolidation, merger, sale or transfer. 
Such supplemental Purchase Option shall provide for adjustments which
shall be identical to the adjustments provided in Section 6.  The above provision of this Section shall
similarly apply to successive consolidations or mergers.

 

6.3.                              ELIMINATION OF FRACTIONAL INTERESTS.  The Company shall not be required to issue
certificates representing fractions of shares of Common Stock or Warrants upon
the exercise of the Purchase Option, nor shall it be required to issue scrip or
pay cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up
to the nearest whole number of Warrants, shares of Common Stock or other
securities, properties or rights.

 

7.                                       RESERVATION AND LISTING.  The Company shall at all times reserve and
keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon exercise of the Purchase Options or the Warrants
underlying the Purchase Option, such number of shares of Common Stock or other
securities, properties or rights as shall be issuable upon the exercise
thereof.  The Company covenants and
agrees that, upon exercise of the Purchase Options and payment of the Exercise
Price therefor, all shares of Common Stock and other securities issuable upon
such exercise shall be duly and validly issued, fully paid and non-assessable
and not subject to preemptive rights of any stockholder.  The Company further covenants and agrees that
upon exercise of the Warrants underlying the Purchase Options and payment of
the respective Warrant exercise price therefor, all shares of Common Stock and
other securities issuable upon such exercise shall be duly and validly issued,
fully paid and non-assessable and not subject to preemptive rights of any
stockholder.  As long as the Purchase
Options shall be outstanding, the Company shall use its reasonable best efforts
to cause all (i) Units and shares of Common Stock issuable upon exercise
of the Purchase Options, (ii) Warrants issuable upon exercise of the
Purchase Options and (iii) shares of Common Stock issuable upon exercise
of the Warrants included in the Units issuable upon exercise of the Purchase
Option to be listed (subject to official notice of issuance) on all securities
exchanges (or, if applicable on the Nasdaq Global Market, Capital Market, OTC
Bulletin Board or any successor trading market) on which the Units, the Common
Stock or the Public Warrants issued to the public in connection herewith may
then be listed and/or quoted.

 

8.                                       CERTAIN NOTICE REQUIREMENTS.

 

8.1.                              HOLDER’S RIGHT TO RECEIVE NOTICE.  Nothing herein shall be construed as
conferring upon the Holders the right to vote or consent as a stockholder for
the election of directors or any other matter, or as having any rights whatsoever
as a stockholder of the Company.  If,
however, at any time prior to the expiration of the Purchase Options and their
exercise, any of the events described in Section 8.2 shall occur, then, in
one or more of said events, the Company shall give written notice of such event
at least fifteen days prior to the date fixed as a record date or the date of
closing the transfer books for the determination of the stockholders entitled
to such dividend, distribution, conversion or exchange of securities or
subscription rights, or entitled to vote on such proposed dissolution,
liquidation, winding up or sale.  Such
notice shall specify such record date or the date of the closing of the
transfer books, as the case may be. 
Notwithstanding the foregoing, the Company shall deliver to each Holder
a copy of

 

13

 

each
notice given to the other stockholders of the Company at the same time and in
the same manner that such notice is given to the stockholders.

 

8.2.                              EVENTS REQUIRING NOTICE.  The Company shall be required to give the
notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its
shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or
distribution payable otherwise than out of retained earnings, as indicated by
the accounting treatment of such dividend or distribution on the books of the
Company, or (ii) the Company shall offer to all the holders of its Common
Stock any additional shares of capital stock of the Company or securities
convertible into or exchangeable for shares of capital stock of the Company, or
any option, right or warrant to subscribe therefor, or (iii) a
dissolution, liquidation or winding up of the Company (other than in connection
with a consolidation or merger) or a sale of all or substantially all of its
property, assets and business shall be proposed.

 

8.3.                              NOTICE OF CHANGE IN EXERCISE PRICE.  The Company shall, promptly after an event
requiring a change in the Exercise Price pursuant to Section 6 hereof,
send notice to the Holders of such event and change (“PRICE NOTICE”).  The Price Notice shall describe the event
causing the change and the method of calculating same and shall be certified as
being true and accurate by the Company’s President and Chief Financial Officer.

 

8.4.                              TRANSMITTAL OF NOTICES.  All notices, requests, consents and other
communications under this Purchase Option shall be in writing and shall be deemed
to have been duly made when hand delivered, or mailed by express mail or
private courier service: (i) if to the registered Holder of the Purchase
Option, to the address of such Holder as shown on the books of the Company, or (ii) if
to the Company, to the following address or to such other address as the
Company may designate by notice to the Holders:

 

Information Services Group, Inc.

Four
Stamford Plaza

107 Elm St. 

Stamford, CT 06902

Attn: Chief Executive Officer and General Counsel

 

With a copy to:

 

Kaye Scholer LLP

425 Park Avenue

New York, NY  10022

Attn:  Emanuel Cherney, Esq.

 

9.                                       MISCELLANEOUS.

 

9.1.                              AMENDMENTS.  The Company may from time to time supplement
or amend this Purchase Option without the approval of any of the Holders in
order to cure any ambiguity, to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provisions herein,
or to make any other provisions in regard to matters or questions arising
hereunder that the Company may deem necessary or desirable and that the
Company, in the exercise of reasonable judgment, determines that it shall not
adversely affect the interest of the Holders. 
All other modifications or amendments shall require the written consent
of and be signed by the party against whom enforcement of the modification or
amendment is sought.

 

14

 

9.2.                              HEADINGS. 
The headings contained herein are for the sole purpose of convenience of
reference, and shall not in any way limit or affect the meaning or
interpretation of any of the terms or provisions of this Purchase Option.

 

9.3.                              ENTIRE AGREEMENT.  This Purchase Option (together with the other
agreements and documents being delivered pursuant to or in connection with this
Purchase Option) constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject
matter hereof.

 

9.4.                              BINDING EFFECT.  This Purchase Option shall inure solely to
the benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representative and assigns,
and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Purchase
Option or any provisions herein contained.

 

9.5.                              GOVERNING LAW; SUBMISSION TO
JURISDICTION.  This Purchase Option shall
be governed by and construed and enforced in accordance with the laws of the
State of New York, without giving effect to the conflicts of law principles
thereof.  The Company hereby agrees that
any action, proceeding or claim against it arising out of, or relating in any
way to this Purchase Option shall be brought and enforced in the courts of the
State of New York or the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive.  The Company hereby
waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.  Any
process or summons to be served upon the Company may be served by transmitting
a copy thereof by registered or certified mail, return receipt requested,
postage prepaid, addressed to it at the address set forth in Section 8
hereof.  Such mailing shall be deemed
personal service and shall be legal and binding upon the Company in any action,
proceeding or claim.  The Company and the
Holder agree that the prevailing party(ies) in any such action shall be
entitled to recover from the other party(ies) all of its reasonable attorneys’
fees and expenses relating to such action or proceeding and/or incurred in
connection with the preparation therefor.

 

9.6.                              WAIVER. 
The failure of the Company or the Holder to at any time enforce any of
the provisions of this Purchase Option shall not be deemed or construed to be a
waiver of any such provision, nor to in any way affect the validity of this
Purchase Option or any provision hereof or the right of the Company or any
Holder to thereafter enforce each and every provision of this Purchase
Option.  No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Purchase
Option shall be effective unless set forth in a written instrument executed by
the party or parties against whom or which enforcement of such waiver is
sought; and no waiver of any such breach, non-compliance or non- fulfillment
shall be construed or deemed to be a waiver of any other or subsequent breach
or non-compliance.

 

9.7.                              EXECUTION IN COUNTERPARTS.  This Purchase Option may be executed in one
or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement, and shall become
effective when one or more counterparts has been signed by each of the parties
hereto and delivered to each of the other parties hereto.

 

9.8.                              UNDERLYING WARRANTS.  At any time after exercise by the Holder of
this Purchase Option, the Holder may exchange his Warrants (with an initial
exercise price of $7.50) for Public Warrants (with an initial exercise price of
$6.00) upon payment to the Company of the difference between the exercise price
of his Warrant and the exercise price of the Public Warrants.  Any such Public Warrants and the Common Stock
underlying such Public Warrants shall constitute Registrable Securities.

 

15

 

IN WITNESS WHEREOF, the
Company has caused this Purchase Option to be signed by its duly authorized
officer as of the                   day
of                   ,
2007.

 

	
   

  	
  INFORMATION
  SERVICES GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

16

 

Form to be used to exercise Purchase Option:

 

Information
Services Group, Inc.

Four Stamford Plaza

107 Elm St.

Stamford, CT 06902

Attn: Chief Executive Officer

 

Date:                                 ,
200      

 

The undersigned hereby
elects irrevocably to exercise all or a portion of the within Purchase Option
and to purchase Units of Information Services Group, Inc. and hereby makes
payment of $           (at
the rate of $           per
Unit) in payment of the Exercise Price pursuant thereto.  Please issue the Common Stock and Warrants as
to which this Purchase Option is exercised in accordance with the instructions
given below.

 

or

 

The undersigned hereby
elects irrevocably to convert its right to purchase           
Units purchasable under the within Purchase Option by surrender of the
unexercised portion of the attached Purchase Option (with a “VALUE” of $          
based on a “CURRENT MARKET PRICE” of $          ).  Please issue the securities comprising the
Units as to which this Purchase Option is exercised in accordance with the
instructions given below.

 

NOTICE: The signature to
this exercise notice must correspond with the name as written upon the face of
the Purchase Option in every particular, without alteration or any change
whatever.

 

	
   

  	
   

  
	
   

  	
  Signature(s)
  Guaranteed:

  

 

THE SIGNATURE(S) SHOULD BE
GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C.  RULE 17Ad-15).

 

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print
  in Block Letters)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address
  

  	
   

  

 

 

Form to be used to assign Purchase Option:

 

ASSIGNMENT

 

(To be executed by the registered Holder

to effect a transfer of the within Purchase Option):

 

FOR VALUE RECEIVED,                                                               
does hereby sell, assign and transfer unto                                                               
the right to purchase                         
Units of Information Services Group, Inc. (“COMPANY”) evidenced by the
within Purchase Option and does hereby authorize the Company to transfer such
right on the books of the Company.  Dated:
                                    ,
200      

 

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

NOTICE: The signature to
this assignment must correspond with the name as written upon the face of the
Purchase Option in every particular, without alteration or any change whatever.

 

 

	
   

  	
   

  
	
   

  	
  Signature(s)
  Guaranteed:

  

 

THE SIGNATURE(S) SHOULD BE
GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS
AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C.  RULE 17Ad-15).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]