Document:

Unassociated Document

    WARRANT
      AGREEMENT

     

    This
      Warrant Agreement made as of [_____________], 2006, between Beverage Acquisition
      Corporation, a Delaware corporation, with offices at 2670 Commercial Avenue,
      Mingo Junction, Ohio (the “Company”),
      and
      Continental Stock Transfer & Trust Company, a New York corporation, with
      offices at 17 Battery Place, New York, New York 10004 (the “Warrant
      Agent”).

     

    WHEREAS,
      the Company is engaged in a public offering (the “Public
      Offering”)
      of
      units (the “Units”)
      and,
      in connection therewith, has determined to issue and deliver up to 5,175,000
      warrants (the “Public
      Warrants”)
      to the
      public investors, each of such Public Warrants evidencing the right of the
      holder thereof to purchase one share of common stock, par value $0.0001 per
      share, of the Company (the “Common
      Stock”)
      for
      $5.50 per share, subject to adjustments as described herein; 

     

    WHEREAS,
      the Company has filed, with the Securities and Exchange Commission, a
      registration statement on Form S-1, No. 333-136323 (the “Registration
      Statement”),
      for
      the registration, under the Securities Act of 1933, as amended (the
“Act”),
      of,
      among other securities, the Public Warrants and the Common Stock issuable upon
      exercise of the Public Warrants;

     

    WHEREAS,
      the Company has determined to issue and deliver, as part of an Underwriter’s
      purchase option, up to 225,000 warrants (“Representative’s
      Warrants”)
      to
      Morgan Joseph & Co. Inc. (“Morgan
      Joseph”
and/or
      the “Representative”)
      or its
      respective designee, which warrants will be identical to the Public Warrants;
      and

     

    WHEREAS,
      immediately prior to the Public Offering, the Company intends to issue and
      sell
      1,041,667 warrants in a private placement, which warrants (the “Private
      Warrants”
and,
      with the Public Warrants and the Representative’s Warrants, the “Warrant(s)”)
      will
      be identical to the Public Warrants, subject to certain exceptions, as set
      forth
      in the Registration Statement;

     

    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;
      

     

    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.

     

    
      
        
        

      

      
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    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 Agreement.

     

    2.  Warrants.

     

    2.1  Form
      of Warrant.
      Each
      Warrant shall be issued in registered form only, shall be in substantially
      the
      form of Exhibit
      A
      hereto,
      the provisions of which are incorporated herein, and shall be signed by, or
      bear
      the facsimile signature of, the Chairman of the Board or, the Chief Executive
      Officer or the President, and the Treasurer, Secretary or Assistant Secretary
      of
      the Company, and shall bear a facsimile of the Company’s seal. 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.

     

    2.2  Effect
      of Countersignature.
      Unless
      and until countersigned by the Warrant Agent pursuant to this 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 the original issuance and transfers of the Warrants. Upon
      the initial issuance of the Warrants, 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  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.

     

    2.4  Detachability
      of Warrants.
      The
      securities comprising the Units will not be separately transferable until 90
      days after the date hereof unless Morgan Joseph informs the Company of its
      decision to allow earlier separate trading, but in no event will Morgan Joseph
      allow separate trading of the securities comprising the Units until the Company
      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. If the over-allotment option
      is
      exercised after our initial filing of a Form 8-K, we will file an amendment
      to
      the Form 8-K to provide updated financial information to reflect the exercise
      of
      the over-allotment option.

     

    3.  Terms
      and Exercise of Warrants.

     

    3.1  Warrant
      Price.
      Each
      Warrant shall, when countersigned by the Warrant Agent, entitle the registered
      holder thereof, subject to the provisions of such Warrant and of this Warrant
      Agreement, to purchase from the Company the number of shares of Common Stock
      stated therein, at the price of $5.50 per whole share, subject to the
      adjustments provided in Section 4 hereof and in the last sentence of this
      Section 3.1. 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; provided that any such
      reduction shall be identical in percentage terms among all of the Warrants,
      except that any amendment to the terms of the Representative's Warrants shall
      be
      subject to any limitations and conditions that may be imposed by NASD Corporate
      Financing Rule 2710. The Company, with the prior consent of the Representative,
      may lower the Warrant Price at any time prior to the Expiration Date (as defined
      below).

     

    
      
        
        

      

      
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    3.2  Duration
      of Warrants.
      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 acquisition, stock purchase or other similar
      business combination, as described more fully in the Company’s Registration
      Statement (“Business
      Combination”)
      or
      (ii) [one year from the date of the prospectus] 2007,
      and
      terminating at 5:00 p.m., New York City time, on the earlier to occur of (i)
      [four years from the date of the prospectus], 2010 or (ii) the date fixed
      for redemption of the Warrants as provided in Section 6 of this Agreement
      (“Expiration
      Date”).
      Except with respect to the right to receive the Redemption Price (as set forth
      in Section 6 hereunder), 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 Agreement shall cease at the close of business on
      the
      Expiration Date. The Company, with the prior consent of the Representative,
      may
      extend the duration of the Warrants by delaying the Expiration
      Date.

     

    3.3  Exercise
      of Warrants.

     

    3.3.1  Payment.
      Subject
      to the provisions of the Warrant and 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 (i) 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
      full 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, or (ii) as to Private Warrants only, by surrendering his, her or its
      Private Warrant for that number of shares of Common Stock equal to the quotient
      obtained by dividing (x) the product of the number of shares of Common Stock
      underlying the Warrant (or such portion thereof as the holder of such Private
      Warrant elects), multiplied by the difference between the Warrant Price and
      the
      Fair Market Value (as hereinafter defined) by (y) the Fair Market Value. The
      “Fair
      Market Value”
shall
      mean the average reported last sale price of the Common Stock (1) during the
      10
      trading day period ending on the trading day immediately proceeding the date
      of
      surrender of such Private Warrant or, (2) in the event that the Company has
      given a notice of redemption to the holder of such Private Warrant, the third
      business day prior to the date on which any notice of redemption is sent to
      holders of the Private Warrants pursuant to Section 6 hereof.

     

    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 or upon surrender of the Private Warrant (or
      portion thereof) as set forth in Section 3.3.1(ii), the Company shall issue
      to
      the registered holder of such Warrant a certificate or certificates representing
      the number of full shares of Common Stock to which he, she or it 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 or, if applicable, surrendered in
      full, a new countersigned Warrant for the number of shares as to which such
      Warrant shall not have been exercised or, if applicable, surrendered.
      Notwithstanding the foregoing, the Company shall not be obligated to deliver
      any
      securities pursuant to the exercise of a Warrant unless (i) a registration
      statement under the Act with respect to the issuance of the Common Stock upon
      exercise of such Warrants is effective, or (ii) in the opinion of counsel to
      the
      Company, the exercise of the Warrants is exempt from the registration
      requirements of the Act and such securities are qualified for sale or exempt
      from qualification under applicable securities laws of the states or other
      jurisdictions in which the registered holder resides. Warrants may not be
      exercised by, or securities issued to, any registered holder in any state in
      which such exercise or issuance of Common Stock upon exercise thereof would
      be
      unlawful. In the event a registration statement under the Act with respect
      to
      the Common Stock underlying the Warrants is not effective, or because such
      exercise would be unlawful with respect to a registered holder in any state,
      the
      registered holder shall not be entitled to exercise such Warrants and such
      Warrants may have no value and expire worthless. In no event will the Company
      be
      obligated to pay such registered holder any cash or other consideration or
      otherwise "net cash settle" the Warrant. Furthermore, in the event that a
      registration statement is not effective under the Act with respect to the Common
      Stock underlying the Warrants, the purchaser of a Unit containing such Warrant
      will have paid the full purchase price for the Unit solely for the shares
      included in such Unit.

     

    
      
        
        

      

      
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    3.3.3  Valid
      Issuance.
      All
      shares of Common Stock issued upon the proper exercise or, if applicable,
      surrender of a Warrant in conformity with this Agreement shall be validly
      issued, fully paid and nonassessable.

     

    3.3.4  Date
      of Issuance.
      Each
      person or entity 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 or entity
      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  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.

     

    4.2  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 Sections 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, (i) 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
      (ii)
      the denominator of which shall be the number of shares of Common Stock so
      purchasable immediately thereafter.

     

    
      
        
        

      

      
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    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 Sections 4.1 or 4.2 hereof or one
      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 Sections 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 the Company shall give written notice to each 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 same
      Warrant Price and the same number of shares as is stated in the Warrants
      initially issued pursuant to this 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  Registration
      of Transfer.
      The
      Warrant Agent shall register the transfer, from time to time, of any outstanding
      Warrant into 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 the
      Company’s request.

     

    
      
        
        

      

      
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    5.2  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, in the event a Warrant surrendered for
      transfer bears a restrictive legend, the Warrant Agent shall not cancel such
      Warrant and shall issue new Warrants in exchange therefor 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.

     

    5.3  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.

     

    5.4  Service
      Charges.
      No
      service charge shall be made for any exchange or registration of transfer of
      Warrants.

     

    5.5  Warrant
      Execution and Countersignature.
      The
      Warrant Agent is hereby authorized to countersign and to deliver, in accordance
      with the terms of this Agreement, the Warrants required to be issued pursuant
      to
      the provisions of this Section 5, and 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 Section 6.4 hereof and the penultimate sentence of this Section 6.1, 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, at the price of $0.01 per Warrant (“Redemption
      Price”),
      provided that the last sales price of the Common Stock has been equal to or
      greater than $11.50 per share on each of twenty (20) trading days within any
      thirty (30) trading day period ending on the third business day prior to the
      date on which notice of redemption is given. No Private Warrants shall be
      redeemable so long as such Private Warrant is held by the original person or
      entity to which the Company issued such Private Warrant. The provisions of
      this
      Section 6.1 may not be modified, amended or deleted without the prior
      written consent of Morgan Joseph.

     

    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 Warrant Register.
      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.

     

    
      
        
        

      

      
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    6.4  Outstanding
      Warrants Only.
      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. The provisions of this Section 6.4 may not be modified,
      amended or deleted without the prior written consent of Morgan
      Joseph.

     

    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.

     

    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 terms 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 the Common Stock issuable upon exercise of the
      Warrants, and it shall 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 best efforts to cause the same to become effective on or prior
      to
      the commencement of the Exercise Period and to maintain the effectiveness of
      such registration statement until the expiration of the Warrants in accordance
      with the provisions of this Warrant Agreement. In addition, the Company agrees
      to use its reasonable efforts to register such securities under the blue sky
      laws of the states of residence of exercising warrant holders, if permitted
      by
      the blue sky laws of such jurisdictions, in the event that an exemption is
      not
      available. Notwithstanding the foregoing, a Warrant may expire worthless
      regardless of whether a registration statement is current under the Act with
      respect to the Common Stock issuable upon exercise of the Warrants. In no event
      will the registered holder of a Warrant be entitled to receive a net-cash
      settlement, shares of Common Stock or other consideration in lieu of physical
      settlement in shares of Common Stock, regardless of whether the Company complies
      with this Section 7.4. The provisions of this Section 7.4 may not be
      modified, amended or deleted without the prior written consent of Morgan
      Joseph.

     

    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.

     

    
      
        
        

      

      
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    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, her or its Warrant for inspection by the 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. 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 have its principal office in the Borough
      of
      Manhattan, City and State of New York, and be authorized under such laws to
      exercise corporate trust powers and subject to supervision or examination by
      federal or state authorities. 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 on the part of the Company
      or the Warrant Agent.

     

    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 Warrant Agent hereunder as set forth on Exhibit
      B
      hereto
      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

        
          

        

      

      
        
        

      

    

     

    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
      established by a statement signed by the Chief Executive Officer or Chairman
      of
      the Board 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 Common Stock
      through the exercise of Warrants.

     

    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 delivered by hand or sent by registered or certified mail or overnight
      courier service, addressed (until another address is filed in writing by the
      Company with the Warrant Agent) as follows:

     

    
      	 	
              Beverage
                Acquisition Corporation

              2670
                Commercial Avenue

              Mingo
                Junction, Ohio 43938

              Attn:
                Chief Executive Officer

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    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 delivered by hand or sent by registered or certified mail or overnight
      courier service, 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 (which shall not constitute notice) to:

    
      
         

        
          	 	
                  Skadden,
                    Arps, Slate, Meagher & Flom LLP

                  Four
                    Times Square

                  New
                    York, New York 10036

                  Attn:
                    Phyllis G. Korff, Esq.

                

        

      

    

     

    and

    
      
         

        
          	 	
                  Mintz,
                    Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

                  666
                    Third Avenue

                  New
                    York, New York 10017

                  Attn:
                    Jeffrey P. Schultz,
                    Esq.

                

        

      

    

     

    and

    
      
         

        
          	 	
                  Morgan
                    Joseph & Co. Inc.

                  600
                    Fifth Avenue, 19th
                    Floor

                  New
                    York, New York 10020-2302

                  Attn:  Chief
                    Executive Officer

                

        

      

    

    

     

    Any
      notice, sent pursuant to this Warrant Agreement shall be effective, if delivered
      by hand, upon receipt thereof by the party to whom it is addressed, if sent
      by
      overnight courier, on the next business day of the delivery to the courier,
      and
      if sent by registered or certified mail on the third day after registration
      or
      certification thereof. 

     

    9.3  Applicable
      Law.
      The
      validity, interpretation, and performance of this Warrant Agreement and of
      the
      Warrants shall be governed in all respects by the laws of the State of New
      York,
      without giving effect to conflict of laws. The Company hereby agrees that any
      action, proceeding or claim against it arising out of or relating in any way
      to
      this Warrant 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 exclusive jurisdiction. The Company hereby
      waives any objection to such exclusive jurisdiction and that such courts
      represent an inconvenient forum. Any such 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 9.2 hereof. Such mailing shall be deemed
      personal service and shall be legal and binding upon the Company in any action,
      proceeding or claim.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    9.4  Persons
      Having Rights under this Warrant Agreement.
      Nothing
      in this Warrant 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 and, for the purposes of Sections 6.1, 6.4,
      7.4 and 9.2 hereof, Morgan Joseph, any right, remedy or claim under or by reason
      of this Warrant Agreement or of any covenant, condition, stipulation, promise
      or
      agreement hereof. Morgan Joseph shall be deemed to be a third-party beneficiary
      of this Warrant Agreement with respect to Sections 6.1, 6.4, 7.4 and 9.2 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 Morgan Joseph, with respect to the Sections 6.1, 6.4, 7.4
      and 9.2 hereof) and their successors and assigns and of the registered holders
      of the Warrants.

     

    9.5  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, her or its Warrant for
      inspection.

     

    9.6  Counterparts;
      Facsimile Signatures.
      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 one and the same instrument.
      Facsimile signatures shall constitute original signatures for all purposes
      of
      this Warrant Agreement.

     

    9.7  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.

     

    9.8  Amendments.
      This
      Warrant Agreement may be amended by the parties hereto without the consent
      of
      any registered holder for the purpose of curing any ambiguity, or of 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 Warrant 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, other than in
      accordance with Section 6 hereof, shall require the written consent of each
      of
      Morgan Joseph and the registered holders of a majority of the then outstanding
      Warrants. 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, respectively, without such consent.

     

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

     

    (Remainder
      of page intentionally left blank. Signature page immediately
      follows.)

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	
              Attest

            	
              BEVERAGE ACQUISITION CORPORATION

            
	 
 	 
 	 
 
	 	By:  	 
	
              
 	
              

              Name:
                 

              Title:
                 

            

      	 	 	 
	 	 	 
	 

              Attest

            	
              CONTINENTAL
                STOCK TRANSFER

                &
                TRUST COMPANY

            
	 
 	 
 	 
 
	 	By:  	 
	
              
 	
              

              Name: Steven
                Nelson

              Title: Chairman

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      A

     

    Form
      of Public Warrant

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    Warrant
      Agent FeesUNIT
      PURCHASE OPTION

     

    FOR
      THE
      PURCHASE OF

     

    225,000
      UNITS

     

    OF

     

    BEVERAGE
      ACQUISITION CORPORATION

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    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 ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
      THAN (I) MORGAN JOSEPH & CO. INC. (“MORGAN JOSEPH”) OR AN UNDERWRITER OR A
      SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER
      OR
      PARTNER OF MORGAN JOSEPH OR OF ANY SUCH UNDERWRITER OR SELECTED
      DEALER.

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF (I)                      ,
      2007
      AND (II) THE CONSUMMATION BY BEVERAGE ACQUISITION CORPORATION (“COMPANY”) OF A
      MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION, STOCK PURCHASE OR OTHER
      SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS DESCRIBED MORE FULLY
      IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)). 

     

    UNIT
      PURCHASE OPTION

     

    FOR
      THE
      PURCHASE OF

     

    225,000
      UNITS

     

    OF

     

    BEVERAGE
      ACQUISITION CORPORATION

     

    1.  Purchase
      Option.

     

    THIS
      CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf of Morgan
      Joseph (“Holder”), as registered owner of this Purchase Option (the “Purchase
      Option”), to Beverage Acquisition Corporation (“Company”), Holder is entitled,
      at any time or from time to time upon the later of (i)                      ,
      2007
      and (ii) the consummation of a Business Combination (“Commencement Date”), and
      at or before 5:00 p.m., New York City Time,                      ,
      2011
      (“Expiration Date”), but not thereafter, to subscribe for, purchase and receive,
      in whole or in part, up to Two Hundred Twenty-Five Thousand (225,000) units
      (“Units”) of the Company, each Unit consisting of one share of common stock of
      the Company, par value $0.0001 per share (“Common Stock”), and one warrant
      (“Warrant(s)”) 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”). If the Expiration Date is a day
      on which banking institutions in the State of New York are authorized by law
      to
      close, 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
      beginning on the date hereof and 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 $10.00 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 or
      the adjusted exercise price, 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, by certified check, official bank check or wire transfer.
      If
      the subscription rights represented hereby shall not be exercised at or before
      5:00 p.m., New York City 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  Legend.
      Each
      certificate for the securities purchased under this Purchase Option shall bear
      a
      legend as follows unless such securities have been registered under the
      Securities Act of 1933, as amended (“Act”):

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (“Act”) or applicable state law. The
      securities may not be offered for sale, sold or otherwise transferred except
      pursuant to an effective registration statement under the Act, or pursuant
      to an
      exemption from registration under the Act and applicable state
      law.”

     

    2.3  Cashless
      Exercise.

     

    2.3.1  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). 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 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 Warrants are still trading, (i) if the Units
      are listed on a national securities exchange or quoted on the Nasdaq National
      Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor such
      as
      the Bulletin Board 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 National Market, Nasdaq SmallCap 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 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 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 Warrants, as the case may be) is
      listed on a national securities exchange or quoted on the Nasdaq National
      Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor such
      as
      the Bulletin Board Exchange), the last sale price of the Common Stock (or
      Warrants) in the principal trading market for the Common Stock as reported
      by
      the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin
      Board (or successor exchange), as the case may be, on the last trading day
      preceding the date in question; (ii) if the Common Stock (or Warrants, as the
      case may be) is not listed on a national securities exchange or quoted on the
      Nasdaq National Market, Nasdaq SmallCap 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 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 2.3 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

        
          

        

      

      
         

      

    

     

    2.3.2  Mechanics
      of Cashless Exercise.
      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 thereto 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.

     

    2.4  No
      Obligation to Net Cash Settle.
      Notwithstanding anything to the contrary contained in this Purchase Option,
      in
      no event will the Company be required to net cash settle the exercise of the
      Purchase Option or the Warrants underlying the Purchase Option. The holder
      of
      the Purchase Option and the Warrants underlying the Purchase Option will not
      be
      entitled to exercise the Purchase Option or the Warrants underlying such
      Purchase Option unless a registration statement is effective, or an exemption
      from the registration requirements is available at such time and, if the holder
      is not able to exercise the Purchase Option or underlying Warrants, the Purchase
      Option and/or the underlying Warrants, as applicable, will expire
      worthless.

     

    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 this Purchase Option
      for a period of one year following the Effective Date to anyone other than
      (i)
      Morgan Joseph or an underwriter or a selected dealer in connection with the
      Offering, or (ii) a bona fide officer or partner of Morgan Joseph or of any
      such
      underwriter or selected dealer. On and after the first anniversary of 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
      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

        
          

        

      

      
         

      

    

     

    3.2  Restrictions
      Imposed by the 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 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 Skadden, Arps, Slate, Meagher & Flom LLP
      (“Skadden”) shall be deemed satisfactory evidence of the availability of an
      exemption), or (ii) a registration statement or a post-effective amendment
      to a
      registration statement relating to such securities has been filed by the Company
      and declared effective by the Securities and Exchange 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 or other security reasonably
      satisfactory to the Company, 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 51% of the Purchase Options and/or the underlying Units and/or the
      underlying securities (“Majority Holders”), agrees to use its best efforts to
      register on one occasion, all or any portion 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 or a post-effective amendment to the Registration
      Statement covering the Registrable Securities within sixty (60) days after
      receipt of the Initial Demand Notice and use its 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 five years beginning on the Effective Date. The
      Initial Demand Notice shall specify the number of shares of Registrable
      Securities proposed to be sold and the intended method(s) of distribution
      thereof. 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.

     

    
      
         

      

      
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    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 such Registrable Securities pursuant
      to
      such Demand Registration shall be in the form of an underwritten offering.
      In
      such event, the right of any holder to include its Registrable Securities in
      such registration shall be conditioned upon such holder’s participation in such
      underwriting and the inclusion of such holder’s Registrable Securities in the
      underwriting to the extent provided herein. 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, 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 (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                      ,
      2006
      (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.

     

    
      
         

      

      
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    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 Holder to represent them in connection with the sale of the Registrable
      Securities, but the Holder 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 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 for a period of twelve
      consecutive months from the effective date of such registration statement or
      post-effective amendment.

     

    5.2  “Piggy-Back”
      Registration.

     

    5.2.1  Grant
      of Right.
      In
      addition to the demand right of registration, the Holder of the Purchase Options
      shall have the right for a period of seven years commencing on the Effective
      Date, to include the Registrable Securities as part of any other registration
      of
      securities filed by the Company (other than in connection with a transaction
      contemplated by Rule 145(a) promulgated under the Act or pursuant to Form S-8);
      provided, however, that if, in the written opinion of the Company’s managing
      underwriter or underwriters, if any, for such offering, the inclusion of the
      Registrable Securities, when added to the securities being registered by the
      Company or the selling stockholder(s), will exceed the maximum amount of the
      Company’s securities which can be marketed (i) at a price reasonably related to
      their then current market value, and (ii) without materially and adversely
      affecting the entire offering, 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 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

     

    
      
         

      

      
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    (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.

     

    5.2.2  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 Holder to represent them in connection with the sale of the Registrable
      Securities but the Holder 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 (15) 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 (10) days of the
      receipt of the Company’s notice of its intention to file a registration
      statement. The Company shall cause any registration statement filed pursuant
      to
      the above “piggyback” rights to remain effective for at least twelve (12) months
      from the date that the Holder of the Registrable Securities are first given
      the
      opportunity to sell all of such securities.

     

    5.2.3  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; 

     

    
      
         

      

      
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      (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
      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.

     

    5.2.4  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 5.2.2.

     

    
      
         

      

      
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    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 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 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 underwriters contained in Section 5 of the Underwriting Agreement
      between the Company, Morgan Joseph and the other underwriters named therein
      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 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
      any claim whatsoever) to which they may become subject under the 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 5 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 Holder.
      The
      Company shall furnish Morgan Joseph, as representative of 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 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 Morgan Joseph, as
      representative of 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 Morgan Joseph, as representative of the holders, to do
      such
      investigation, upon reasonable advance notice, with respect to information
      contained in or omitted from the registration statement as they deem 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 Morgan Joseph,
      as
      representative of the holders, shall reasonably request. The Company shall
      not
      be required to disclose any confidential information or other records to Morgan
      Joseph, as representative of 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.

     

    
      
         

      

      
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    5.3.4  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.

     

    5.3.5  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
      volume limitations under paragraph (e) of Rule 144 (calculated as if such holder
      were an affiliate within the meaning of Rule 144).

     

    5.3.6  Supplemental
      Prospectus.
      The
      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 any 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.

     

    
      
         

      

      
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    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 6.4 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 $10.00 per whole Unit
      (each Warrant underlying the Units is exercisable for $5.50 per share), upon
      effectiveness of the dividend, this Purchase Option will be adjusted to allow
      for the purchase of one Unit at $10.00 per Unit, each Unit entitling the holder
      to receive two shares of Common Stock and two Warrants (each Warrant exercisable
      for $3.00 per share).

     

    6.1.2  Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 6.4, 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.

     

    6.1.3  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 6.1.2 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 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 6.1.2, then such adjustment shall be made pursuant to Sections
      6.1.1, 6.1.2 and this Section 6.1.3 The provisions of this Section 6.1.3 shall
      similarly apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    6.1.4  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.

     

    6.1.5  Adjustments
      of Warrants.
      To the
      extent the price of the Warrants are lowered pursuant to Section 3.1 of the
      Warrant Agreement,
      dated             
, 2006, between the Company and Continental Stock Transfer & Trust Company
      (the “Warrant Agreement”), the price of the Warrants underlying the Purchase
      Option shall be reduced on identical percentage terms, subject to any
      limitations and conditions that may be imposed by NASD Corporate Financing
      Rule
      2710. 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.

     

    
      
         

      

      
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    6.2  [Intentionally
      Omitted].

     

    6.3  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.

     

    6.4  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.  Warrant
      Redemption.
      Notwithstanding anything to the contrary contained herein or in the Warrant
      Agreement, (i) this Purchase Option shall, if not earlier exercised in full,
      be
      automatically exercised, on a cashless basis as described in Section 2.3 hereof,
      immediately prior to the time and dated fixed for redemption upon redemption
      of
      the Company’s outstanding warrants pursuant to Section 6 of the Warrant
      Agreement (provided that notice is provided to the Holder on the same terms
      as
      provided to the holders of Warrants pursuant to the Warrant Agreement), and
      (ii)
      each Warrant that is part of a Unit issued hereunder upon such automatic
      conversion shall be redeemed by the Company as part of such redemption for
      the
      Redemption Price (as defined in the Warrant Agreement).

     

    8.  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 best efforts to cause all (i) Units and shares of Common
      Stock issuable upon exercise of the Purchase Options, (iii) Warrants issuable
      upon exercise of the Purchase Options and (iv) 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 National Market, SmallCap
      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.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    9.  Certain
      Notice Requirements.

     

    9.1  Holder’s
      Right to Receive Notice.
      Nothing
      herein shall be construed as conferring upon the Holder 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 9.2 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 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.

     

    9.2  Events
      Requiring Notice.
      The
      Company shall be required to give the notice described in this Section 9 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.

     

    9.3  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 Holder 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.

     

    9.4  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:

     

    Beverage
      Acquisition Corporation

    2670
      Commercial Avenue

    Mingo
      Junction, Ohio 43938

    Attn:
      Chairman

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    10.  Miscellaneous.

     

    10.1  Amendments.
      The
      Company and Morgan Joseph may from time to time supplement or amend this
      Purchase Option without the approval of any 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
      and Morgan Joseph may deem necessary or desirable and that the Company and
      Morgan Joseph deem shall not adversely affect the interest of such 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.

     

    10.2  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.

     

    11.  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.

     

    11.1  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.

     

    11.2  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 conflict of
      laws. 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 of the United States
      of
      America 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.

     

    11.3  Waiver,
      Etc.
      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, non-compliance or non-fulfillment.

     

    11.4  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.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    11.5  Exchange
      Agreement.
      As a
      condition of the Holder’s receipt and acceptance of this Purchase Option, Holder
      agrees that, at any time prior to the complete exercise of this Purchase Option
      by Holder, if the Company and Morgan Joseph enter into an agreement (“Exchange
      Agreement”) pursuant to which they agree that all outstanding Purchase Options
      will be exchanged for securities or cash or a combination of both, then Holder
      shall agree to such exchange and become a party to the Exchange
      Agreement.

     

    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the      
      day of
      ___________, 2006.

     

    
      	 	 	 
	 	BEVERAGE
              ACQUISITION CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name: 

            
	 	Title: 

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Form
      to
      be used to exercise Purchase Option:

     

    Beverage
      Acquisition Corporation

                                                       

                                                       

    

    Date:_________________,
      200__

     

    The
      undersigned hereby elects irrevocably to exercise all or a portion of the within
      Purchase Option and to purchase ____ Units of Beverage Acquisition Corporation
      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” based of
      $_______ based on a “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.

    
      	 	 	 
	 
 	 
 	 
 
	 	 	 
	 	
              
Signature
	 	
               

               

              
                

              

              Signature
                Guaranteed

            

    

     

    
      INSTRUCTIONS
        FOR REGISTRATION OF
        SECURITIES

    

     

    
      Name
        _____________________________________________

      (Print
        in
        Block Letters)

       

      Address
        ___________________________________________

       

      
        NOTICE:
          THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
          THE
          FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION
          OR
          ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK,
          OTHER
          THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP
          ON A
          REGISTERED NATIONAL SECURITIES EXCHANGE.

         

        
          
             

          

          
             

            
              

            

          

          
             

          

          

            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 Beverage Acquisition Corporation (“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
	 	
                       

                       

                      
                        

                      

                      Signature
                        Guaranteed

                    

            

            
               

            

            NOTICE:
              THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN
              UPON THE
              FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION
              OR
              ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK,
              OTHER
              THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP
              ON A
              REGISTERED NATIONAL SECURITIES EXCHANGE.

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