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Exhibit 10.4    
    

INVESTMENT MANAGEMENT TRUST AGREEMENT  

        This Agreement is made as of                        , 2005 by and
between Treehouse Partners Corporation (the "Company") and Continental Stock Transfer & Trust
Company ("Trustee"). 

        WHEREAS,
the Company's Registration Statement on Form S-1, No. 333-126355 ("Registration Statement"), for its initial public offering of securities
("IPO") has been declared effective as of the date hereof by the Securities and Exchange Commission ("Effective Date"); and 

        WHEREAS,
Merriman Curhan Ford & Co. ("Merriman") is acting as the representative of the underwriters in the IPO; and 

        WHEREAS,
as described in the Company's Registration Statement, and in accordance with the Company's Certificate of Incorporation, $43,060,000 of the net proceeds of the IPO ($49,828,000
if the underwriters over-allotment option is exercised in full) will be delivered to the Trustee to be deposited and held in a trust account for the benefit of the Company and the holders
of the Company's common stock, par value $.0001 per share, issued in the IPO as hereinafter provided and in the event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado Revised Statutes. A copy of the Colorado Statute is attached hereto and made a part hereof (the amount to be delivered to the
Trustee will be referred to herein as the "Property"; the stockholders for whose benefit the Trustee shall hold the Property will be referred to as the "Public Stockholders," and the Public
Stockholders and the Company will be referred to together as the "Beneficiaries"); and 

        WHEREAS,
the Company and the Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold the Property; 

        IT
IS AGREED: 

        1.    Agreements and Covenants of Trustee.    The Trustee hereby agrees and covenants to: 

        (a)   Hold
the Property in trust for the Beneficiaries in accordance with the terms of this Agreement, including the terms of
Section 11-51-302(6) of the Colorado Statute, in a segregated trust account ("Trust Account") established by the Trustee at a branch of JP Morgan Chase NY Bank; 

        (b)   Manage,
supervise and administer the Trust Account subject to the terms and conditions set forth herein; 

        (c)   In
a timely manner, upon the written instruction of the Company, to invest and reinvest the Property in any "Government Security" (as used herein, Government Security
means money market funds meeting conditions of the Investment Company Act of 1940 or securities issued or guaranteed by the United States); 

        (d)   Collect
and receive, when due, all principal and income arising from the Property, which shall become part of the "Property," as such term is used herein; 

        (e)   Notify
the Company of all communications received by it with respect to any Property requiring action by the Company; 

        (f)    Supply
any necessary information or documents as may be requested by the Company in connection with the Company's preparation of the tax returns for the Trust Account; 

        (g)   Participate
in any plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the Company to do so; 

        (h)   Render
to the Company and to such other person as the Company may instruct in writing, monthly statements of the activities of and amounts in the Trust Account
reflecting all receipts and disbursements of the Trust Account; 

 

        (i)    If
there is any income tax obligation relating to the income of the Property in the Trust Account, then, at the written instruction of the Company, the Trustee shall
issue a check directly to the taxing authorities designated by the Company, out of the Property in the Trust Account, the amount indicated by the Company as owing to each such taxing authority; and 

        (j)    Commence
liquidation of the Trust Account promptly after receipt of and only in accordance with the terms of a letter ("Termination Letter"), in a form substantially
similar to that attached hereto as either Exhibit A or Exhibit B, signed on behalf of the Company by its Chief Executive Officer or President and affirmed by its entire Board of
Directors, and complete the liquidation of the Trust Account and distribute the Property in the Trust Account only as directed in the Termination Letter and the other documents referred to therein;
provided, however, that in the event that a Termination Letter has not been received by                        , 2007 (or the date
that is the six month anniversary of such date, in the event that a letter of
intent, agreement in principle or definitive agreement has been executed prior to such date in connection with a Business Combination (as defined in the Termination Letter attached hereto as
Exhibit A) that has not been consummated by                        , 2007), the Trust Account shall be liquidated in
accordance with the procedures set forth in the Termination Letter attached as
Exhibit B to the stockholders of record on the record date; provided, further, that the record date shall be within ten (10) days
of                        , 2007 (or the date that is the six
month anniversary of such date, in the event that a letter of intent, agreement in principle or definitive agreement has been executed prior to such date in connection with a Business Combination that
has not been consummated by            , 2007), or as soon thereafter as is practicable. 

        2.    Agreements and Covenants of the Company.    The Company hereby agrees and covenants to: 

        (a)   Give
all instructions to the Trustee hereunder in writing, signed by the Company's Chief Executive Officer or President. In addition, except with respect to its duties
under paragraph 1(j) above, the Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it in good faith believes to be
given by any one of the persons authorized above to give written instructions, provided that the Company shall promptly confirm such instructions in writing; 

        (b)   Hold
the Trustee harmless and indemnify the Trustee from and against, any and all expenses, including reasonable counsel fees and disbursements, or loss suffered by the
Trustee in connection with any action, suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand which in any way arises out of or relates to
this Agreement, the services of the Trustee hereunder, or the Property or any income earned from investment of the Property, except
for expenses and losses resulting from the Trustee's gross negligence or willful misconduct. Promptly after the receipt by the Trustee of notice of demand or claim or the commencement of any action,
suit or proceeding, pursuant to which the Trustee intends to seek indemnification under this paragraph, it shall notify the Company in writing of such claim (hereinafter referred to as the
"Indemnified Claim"). The Trustee shall have the right to conduct and manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the consent of the Company with respect
to the selection of counsel, which consent shall not be unreasonably withheld. The Company may participate in such action with its own counsel; 

        (c)   Pay
the Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it being expressly understood that the Property shall not be used to pay such fee). The
Company shall pay the Trustee the initial acceptance fee and first year's fee at the consummation of the IPO and thereafter the annual fee on the anniversary of the Effective Date. The Trustee shall
refund to the Company the fee (on a pro rata basis) with respect to any period after the liquidation of the Trust Account. The Company shall not be responsible for any other fees or charges of the
Trustee except 

2

 

as
may be provided in paragraph 2(b) hereof (it being expressly understood that the Property shall not be used to make any payments to the Trustee under such paragraph); 

        (d)   Provide
to the Trustee any letter of intent, agreement in principle or definitive agreement that is executed prior
to                        , 2007 in connection with a Business
Combination; and 

        (e)   In
connection with any vote of the Company's stockholders regarding a Business Combination, provide to the Trustee an affidavit or certificate of a firm regularly
engaged in the business of soliciting proxies and tabulating stockholder votes (which firm may be the Trustee) verifying the vote of the Company's stockholders regarding such Business Combination. 

        3.    Limitations of Liability.    The Trustee shall have no responsibility or liability to: 

        (a)   Take
any action with respect to the Property, other than as directed in paragraph 1 hereof and the Trustee shall have no liability to any party except for
liability arising out of its own gross negligence or willful misconduct; 

        (b)   Institute
any proceeding for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of any kind with respect to, any
of the Property unless and until it shall have received instructions from the Company given as provided herein to do so and the Company shall have advanced or guaranteed to it funds sufficient to pay
any expenses incident thereto; 

        (c)   Change
the investment of any Property, other than in compliance with paragraph 1(c); 

        (d)   Refund
any depreciation in principal of any Property; 

        (e)   Assume
that the authority of any person designated by the Company to give instructions hereunder shall not be continuing unless provided otherwise in such designation,
or unless the Company shall have delivered a written revocation of such authority to the Trustee; 

        (f)    The
other parties hereto or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and in the exercise
of its own best judgment, except for its gross negligence or willful misconduct. The Trustee may rely conclusively and shall be protected in acting upon any order, judgment, instruction, notice,
demand, certificate, opinion or advice of counsel (including counsel chosen by the Trustee), statement, instrument, report or other paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Trustee, in good faith, to be genuine and to be signed or
presented by the proper person or persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this agreement or any of the terms hereof,
unless evidenced by a written instrument delivered to the Trustee signed by the proper party or parties and, if the duties or rights of the Trustee are affected, unless it shall give its prior written
consent thereto; 

        (g)   Verify
the correctness of the information set forth in the Registration Statement or to confirm or assure that any acquisition made by the Company or any other action
taken by it is as contemplated by the Registration Statement; and 

        (h)   Subject
to the requirements of Section 1(i) of the Trust Agreement, pay any taxes on behalf of the Trust Account to any governmental entity or taxing
authority. 

        4.    Termination.    This Agreement shall terminate as follows: 

        (a)   If
the Trustee gives written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable efforts to locate a successor
trustee. At such time that the Company notifies the Trustee that a successor trustee has been appointed by the Company and has agreed to become subject to the terms of this Agreement, the Trustee
shall 

3

 

transfer
the management of the Trust Account to the successor trustee, including but not limited to the transfer of copies of the reports and statements relating to the Trust Account, whereupon this
Agreement shall terminate; provided, however, that, in the event that the Company does not locate a successor trustee within ninety days of receipt of the resignation notice from the Trustee, the
Trustee may submit an application to have the Property deposited with the United States District Court for the Southern District of New York and upon such deposit, the Trustee shall be immune from any
liability whatsoever; or 

        (b)   At
such time that the Trustee has completed the liquidation of the Trust Account in accordance with the provisions of paragraph 1(i) hereof, and
distributed the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Paragraph 2(b). 

        5.    Miscellaneous.    

        (a)   The
Company and the Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect to funds transferred from the Trust
Account. Upon receipt of written instructions, the Trustee will confirm such instructions with an Authorized Individual at an Authorized Telephone Number listed on the attached Exhibit C. The
Company and the Trustee will each restrict access to confidential information relating to such security procedures to authorized persons. Each party must notify the other party immediately if it has
reason to believe unauthorized persons may have obtained access to such information, or of any change in its authorized personnel. In executing funds transfers, the Trustee will rely upon account
numbers or other identifying numbers of a beneficiary, beneficiary's bank or intermediary bank, rather than names. The Trustee shall not be liable for any loss, liability or expense resulting from any
error in an account number or other identifying number, provided it has accurately transmitted the numbers provided. 

        (b)   This
Agreement 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. It may be
executed in several counterparts, each one of which shall constitute an original, and together shall constitute but one instrument. 

        (c)   This
Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. The parties hereto may change, waive,
amend or modify any provision contained herein that may be defective or inconsistent with any other provision contained herein only upon the written consent of each of the parties hereto; provided
that such action shall not materially adversely affect the interests of the Public Stockholders. Any other change, waiver, amendment or modification to this Agreement shall be subject to approval by a
majority of the Public Stockholders.
As to any claim, cross-claim or counterclaim in any way relating to this Agreement, each party waives the right to trial by jury. 

        (d)   The
parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York for purposes of resolving any disputes hereunder. 

        (e)   Any
notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and shall be sent by express mail or
similar private courier service, by certified mail (return receipt requested), by hand delivery or by facsimile transmission: 

if
to the Trustee, to: 

Continental
Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

4

 

Attn:
Steven G. Nelson

Fax No.: (212) 509-5150 

if
to the Company, to: 

Treehouse
Partners Corporation

1816 Fifth Street

Berkeley, CA 94710

Attn: Robert J. Majteles

Tel. No.: (510) 652-7244 

        (f)    This
Agreement may not be assigned by the Trustee without the prior consent of the Company. 

        (g)   Each
of the Trustee and the Company hereby represents that it has the full right and power and has been duly authorized to enter into this Agreement and to perform its
respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or proceed against the Trust Account, including by way of set-off,
and shall not be entitled to any funds in the Trust Account under any circumstance. 

        (h)   The
Trustee hereby waives any and all right, title, interest or claim of any kind ("Claim") in or to any distribution of the Trust Account, and hereby agrees not to seek
recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. 

        (i)    The
Trustee hereby consents to the inclusion of Continental Stock Transfer & Trust Company in the Registration Statement and other materials relating to the IPO. 

[Signature
page follows.] 

5

 

        IN
WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement as of the date first written above. 

	 	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Trustee
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:

Title:	 	 
	

 	
 	
TREEHOUSE PARTNERS CORPORATION
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	Robert J. Majteles
	 	 	 	 	Title:	 	Chief Executive Officer

6

EXHIBIT A  

[Letterhead of Company]  

 [Insert date]  

Continental
Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson 

	Re:
	Trust Account No. --------------- Termination Letter

Gentlemen:

        Pursuant
to paragraph 1(j) of the Investment Management Trust Agreement between Treehouse Partners Corporation ("Company") and Continental Stock Transfer & Trust Company
("Trustee"), dated as of                        , 2005 ("Trust Agreement"), this is to advise you that the Company has entered
into an agreement ("Business Agreement") with                        ("Target Business")
to consummate a business combination with the Target Business ("Business Combination") on or about [insert date]. The Company shall notify you at least two business days in
advance of the actual date of the consummation of the Business Combination ("Consummation Date"). 

        Pursuant
to paragraph 2(e) of the Trust Agreement, we are providing you with [an affidavit][a certificate] of                        ,
which verifies the vote of the
Company's stockholders in connection with the Business Combination. In accordance with the terms of the Trust Agreement, we hereby authorize you to commence liquidation of the Trust Account to the
effect that, on the Consummation Date, all of funds held in the Trust Account will be immediately available for transfer to the account or accounts that the Company shall direct on the Consummation
Date. 

        On
the Consummation Date (i) counsel for the Company shall deliver to you written notification that (a) the Business Combination has been consummated and (b) the
provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute have been met, and (ii) the Company shall deliver to you written
instructions with respect to the transfer of the funds held in the Trust Account ("Instruction Letter"). You are hereby directed and authorized to transfer the funds held in the Trust Account
immediately upon your receipt of the counsel's letter and the Instruction Letter, in accordance with the terms of the Instruction Letter. In the event that certain deposits held in the Trust Account
may not be liquidated by the Consummation Date without penalty, you will notify the Company of the same and the Company shall direct you as to whether such funds should remain in the Trust Account and
be distributed after the Consummation Date to the Company. Upon the distribution of all the funds in the Trust Account pursuant to the terms hereof, the Trust Agreement shall be terminated and the
Trust Account closed. 

        In
the event that the Business Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the original Consummation
Date of a new Consummation Date, then the funds held in the Trust Account shall be reinvested as provided in the Trust Agreement on the business day immediately following the Consummation Date as set
forth in the notice. 

	 	 	Very truly yours,
	

 	
 	
TREEHOUSE PARTNERS CORPORATION
	

 	
 	
By:	

 
	 	 	 	
 Robert J. Majteles, Chief Executive Officer

EXHIBIT B  

[Letterhead of Company]

[Insert date]  

Continental
Stock Transfer

  & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson 

	Re:
	Trust Account No.[                        ] Termination
Letter

Gentlemen:

        Pursuant
to the Investment Management Trust Agreement between Treehouse Partners Corporation ("Company") and Continental Stock Transfer & Trust Company ("Trustee"), dated as of
                        , 2005 ("Trust Agreement"), this is to advise you that the Board of Directors of the Company has voted to
dissolve and liquidate the Trust Account. Attached hereto is a copy of the
minutes of the meeting of the Board of Directors of the Company relating thereto, certified by the Secretary of the Company as true and correct and in full force and effect. 

        In
accordance with the terms of the Trust Agreement, we hereby (a) certify to you that the provisions of Section 11-51-302(6) and
Rule 51-3.4 of the Colorado Statute have been met and (b) authorize you, to commence liquidation of the Trust Account. In connection with this liquidation, you are hereby
authorized to establish a record date for the purposes of determining the stockholders of record entitled to receive their per share portion of the Trust Account. The record date shall be within ten
(10) days of the liquidation date, or as soon thereafter as is practicable.You will notify the Company and JP Morgan Chase NY Bank ("Designated Paying Agent") in writing as to when all of the
funds in the Trust Account will be available for immediate transfer ("Transfer Date") in accordance with the terms of the Trust Agreement and the Certificate of Incorporation of the Company. You shall
commence distribution of such funds in accordance with the terms of the Trust Agreement and the Certificate of Incorporation of the Company and you shall oversee the distribution of the funds. Upon
the payment of all the funds in the Trust Account, the Trust Agreement shall be terminated. 

	 	 	Very truly yours,
	

 	
 	
TREEHOUSE PARTNERS CORPORATION
	

 	
 	
By:	

 
	 	 	 	
 Robert J. Majteles, Chief Executive Officer

EXHIBIT C  

	AUTHORIZED INDIVIDUAL(S)

FOR TELEPHONE CALL BACK
 
	 	AUTHORIZED

TELEPHONE NUMBER(S)

	Company:	 	 
	

Treehouse Partners Corporation

1816 Fifth Street

Berkeley, California 94710

Attn: Robert J. Majteles, Chief Executive Officer	
 	

(510) 652-7244
	
Trustee:	
 	

 
	

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven G. Nelson, Chairman	
 	

(212) 845-3200

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Exhibit 10.7    
    

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered
into as of the    day of                        , 2005, by and among Treehouse Partners Corporation, a
Delaware corporation (the "Company") and each
of the undersigned parties listed under Insiders on the signature page hereto (each, an "Insider" and collectively, the  "Insiders"). 

        WHEREAS, the Insiders, collectively, hold all of the issued and outstanding securities of the Company as of the date hereof; 

        WHEREAS, the Insiders and the Company desire to enter into this Agreement to provide the Insiders with certain rights relating to the
registration of shares of Common Stock (as defined below) held by them; 

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

	1.
	DEFINITIONS.
The following capitalized terms used herein have the following meanings: 

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

        "Business Combination" shall mean the acquisition by the Company, whether by merger, capital stock exchange, asset acquisition or other
similar type of transaction of one or more operating businesses in the technology-related sector (collectively, the "Target Business") having,
collectively, a fair market value (as calculated in accordance with the Company's Certificate of Incorporation) at least equal to 80% of the Company's net assets at the time of such merger, capital
stock exchange, asset acquisition or other similar type of transaction; provided, that any acquisition of multiple operating businesses shall occur
contemporaneously with one another. 

        "Business Day" means any day, except a Saturday, Sunday or legal holiday on which the banking institutions in the City of New York are
authorized or obligated by law or executive order to close. 

        "Commission" means the Securities and Exchange Commission, or such successor federal agency or agencies as may be established in lieu
thereof. 

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

        "Company" is defined in the preamble to this Agreement. 

        "Demand Registration" is defined in Section 2.1.1. 

        "Demanding Holder" is defined in Section 2.1.1. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder. 

        "Form S-3" is defined in Section 2.3. 

        "Indemnified Party" is defined in Section 4.3. 

        "Indemnifying Party" is defined in Section 4.3. 

        "Insider" is defined in the preamble to this Agreement. 

        "Insider Indemnified Party" is defined in Section 4.1. 

        "Insider Shares" mean all of the shares of Common Stock owned or held by Insiders;  provided, that such shares shall cease to be Insider Shares when: (a) a
Registration Statement with 

 

respect
to the sale of such securities shall have become effective under the Securities Act (as defined below) and such securities shall have been sold, transferred, disposed of or exchanged in
accordance with such Registration Statement; (b) such securities shall have been otherwise transferred pursuant to Rule 144 of the Securities Act (or any similar provisions thereunder,
but not Rule 144A), and new certificates for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution of them shall not
require registration under the Securities Act; or (c) such securities shall have ceased to be outstanding. 

        "Maximum Number Of Shares" is defined in Section 2.1.4. 

        "Notices" is defined in Section 6.2. 

        "Piggy-Back Registration" is defined in Section 2.2.1. 

        "Prospectus" means a prospectus relating to a Registration Statement, as amended or supplemented, and all materials incorporated by
reference in such Prospectus. 

        "Purchase Option" means the option to purchase 300,000 units (345,000 units if the underwriters overallotment option is exercised in full
in connection with the Company's initial public offering) (each unit consisting of one share of common stock and one warrant) issued to Merriman Curhan Ford & Co. or its designees in connection
with the Company's initial public offering (as transferred from time to time in accordance with its terms). 

        "Purchase Option Shares" means the Purchase Option, the units issuable pursuant to the Purchase Option, the Common Stock and warrants
included in such units and the Common Stock issuable upon exercise of such warrants. 

        "Register," "registered" and "registration" mean a registration effected by preparing and
filing a registration statement or similar document under the Securities Act and such registration statement becoming effective. 

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

        "Release Date" means the date that is six months after the consummation of a Business Combination. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder. 

        "Underwriter" means a securities dealer who purchases any Insider Shares as principal in an underwritten offering and not as part of such
dealer's market-making activities. 

	2.
	REGISTRATION
RIGHTS.

	2.1
	Demand
Registration. 

        2.1.1    General Request for Registration.    At any time and from time to time on or after the Release Date, the
holders of a majority-in-interest of the Insider Shares held by the Insiders or the transferees of the Insider Shares, may make a written demand for registration under the
Securities Act of all or part of their Insider Shares (a "Demand Registration"). Any demand for a Demand Registration shall specify the number of
Insider Shares proposed to be sold and the intended method(s) of distribution thereof. The Company will notify all holders of Insider Shares of any demand pursuant to this Section 2.1.1, or
pursuant to Section 2.1.2 

2

 

below,
as the case may be, within five (5) Business Days, and each holder of Insider Shares who wishes to include all or a portion of such holder's Insider Shares in such Demand Registration
(each such holder including shares of Insider Shares in such Demand Registration, a "Demanding Holder") shall so notify the Company within ten
(10) Business 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 Insider Shares included in the
Demand Registration subject to Section 2.1.4 and the provisions set forth in Section 3.1.1. The Company shall not be obligated to effect more than an aggregate of two (2) Demand
Registrations under this Section 2.1.1 in respect of Insider Shares. 

        2.1.2    Effective Registration.    A registration will not count as a Demand Registration until the Registration
Statement filed with the Commission with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under this Agreement with respect
thereto; provided, however, that if, after such Registration Statement has been declared effective, the offering of Insider Shares 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) with respect to a Demand
Registration, a majority-in-interest of the Demanding Holders thereafter elect to continue the offering; provided, further, that
the Company shall not be obligated to file a second Registration Statement until any such Registration Statement that has been filed is counted as a Demand Registration or is terminated. 

        2.1.3    Underwritten Offering.    If a majority-in-interest of the Demanding Holders so elect
and such holders so advise the Company as part of their written demand for a Demand Registration, the offering of such Insider Shares pursuant to such Demand Registration shall be in the form of an
underwritten offering. In each such case, the right of any holder to include such holder's Insider Shares in such registration shall be conditioned upon such holder's participation in such
underwriting and the inclusion of such holder's Insider Shares in the underwriting to the extent provided herein. All Demanding Holders who propose to distribute their Insider Shares through such an
underwriting shall enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such underwriting by a majority-in-interest of the
holders initiating the Demand Registration. 

        2.1.4    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 Insider Shares that the Demanding Holders desire to sell, taken together
with all other shares of Common Stock or other securities that 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 holders of the Company's securities who desire to sell securities, 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 Insider Shares as to which the Demand Registration has been requested together with all other shares of Common Stock or other securities that the Company desires to sell and the
shares of Common Stock, if any, as to which registration has been requested pursuant to the Purchase Option, that can be sold without exceeding the Maximum Number of Shares (all pro rata in accordance
with the number of such shares that the Company or such holders shall have requested to be included 

3

 

in
such registration); (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 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; and (iii),
third, to the extent that the Maximum Number of Shares have not been reached under the foregoing clauses (i) and (ii), the shares of Common Stock that other stockholders desire to sell that can
be sold without exceeding the Maximum Number of Shares. 

        2.1.5    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 Insider Shares 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. In such event, the Company need not seek effectiveness of such Registration Statement for the benefit of other Insiders. If the
majority-in-interest of the Demanding Holders withdraws from a proposed offering relating to a Demand Registration then such registration shall not count as a Demand
Registration provided for in Section 2.1.1. 

	2.2
	Piggy-Back Registration.

        2.2.1    Piggy-Back Rights.    If at any time on or after the Release Date the Company proposes to file by
Registration Statement, other than a Registration Statement in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to
Form S-8, then the Company shall (a) give written notice of such proposed filing to the
holders of Insider Shares as soon as practicable but in no event less than ten (10) Business Days before the anticipated filing date, which notice shall describe the amount and type of
securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the offering, and (b) offer to
the holders of Insider Shares in such notice the opportunity to register such number of Insider Shares as such holders may request in writing within five (5) Business Days following receipt of
such notice (a "Piggy-Back Registration"). The Company shall cause such Insider Shares to be included in such registration and shall use
commercially reasonable efforts to cause the managing Underwriter or Underwriters of a proposed underwritten offering to permit the Insider Shares requested to be included in a Piggy-Back
Registration to be included on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Insider Shares in accordance with the intended
method(s) of distribution thereof. All holders of Insider Shares who propose to distribute securities through a Piggy-Back Registration that involves an Underwriter or Underwriters shall
enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such Piggy-Back Registration. 

        2.2.2    Reduction of Offering.    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 Insider Shares in writing that the dollar amount or number of shares of Common Stock that 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 Insider
Shares hereunder, the Insider Shares as to which registration has been requested under this Section 2.2, and the shares of Common Stock, if any, as to which registration has been requested
pursuant to the written contractual piggy-back 

4

 

registration
rights of other shareholders of the Company, exceeds the Maximum Number of Shares, then the Company shall include in any such registration: 

        (i)    first, subject to the demand registration rights granted to the holders of the Purchase Option Shares, 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 together with the Insider Shares as to which registration has been
requested and any other shares of Common Stock or other securities as to which registration has been requested pursuant to the Purchase Option (pro rata in accordance with the number of shares which
each such person has actually requested to be included in such registration 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, if any, as to which registration has been requested pursuant to written contractual piggy-back registration rights which other shareholders desire to sell that can
be sold without exceeding the Maximum Number of Shares, and 

        (iii) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (i) and
(ii), the shares of Common Stock, if any, that other stockholders desire to sell that can be sold without exceeding the Maximum Number of Shares. 

        2.2.3    Withdrawal.    Any holder of Insider Shares may elect to withdraw such holder's request for inclusion of
Insider Shares 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 may
also elect to withdraw a registration statement at any time prior to the effectiveness of the Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred
by the holders of Insider Shares in connection with such Piggy-Back Registration as provided in Section 3.3. 

        2.3   Registrations
on Form S-3. The holders of Insider Shares may at any time and from time to time after the Release Date, request in writing that the
Company register the resale of any or all of such Insider Shares on Form S-3 or any similar short-form registration that may be available at such time
("Form S-3"); provided, however, that: (a) the Company shall not be obligated
to effect such request through an underwritten offering and (b) the Company shall not be obligated to effect such a request if the Company has within the preceding twelve (12) month
period effected two (2) registrations on Form S-3. Upon receipt of such written request, the Company will promptly give written notice of the proposed registration to all
other holders of Insider Shares and, as soon as practicable thereafter, effect the registration of all or such portion of such holder's or holders' Insider Shares, as the case may be, as are specified
in such request, together with all or such portion of the Insider Shares of any other holder or holders joining in such request as are specified in a written request given within five
(5) Business Days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any
such registration pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or (ii) if the holders of the Insider Shares, together with
the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Insider Shares and such other securities (if any) at any aggregate price to the public of
less than $500,000. Registrations effected pursuant to this Section 2.3 shall not be counted as Demand Registrations effected pursuant to Section 2.1. 

5

 

	3.
	REGISTRATION
PROCEDURES. 

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

        3.1.1    Filing Registration Statement.    The Company shall, as expeditiously as possible and in any event within
sixty (60) days after receipt of a request for a Demand Registration pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any form for which the
Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of all Insider Shares to be registered thereunder in accordance with the
intended method(s) of distribution thereof, and shall use commercially reasonable efforts to cause such Registration Statement to become and remain effective for the period required by
Section 3.1.3; provided, however, that the Company shall have the right to defer any Demand Registration for up to ninety (90) days, and
any Piggy-Back Registration for such period as may be applicable to deferment of any demand registration to which such Piggy-Back Registration relates, in each case if the
Company shall furnish to the holders a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be
materially detrimental to the Company and its shareholders for such Registration Statement to be effected at such time; provided further, however, that
the Company shall not have the right to exercise the right set forth in the immediately preceding proviso more than once in any 365-day period in respect of a Demand Registration
hereunder. 

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

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

        3.1.4    Notification.    After the filing of a Registration Statement, the Company shall promptly, and in no event
more than two (2) Business Days after such filing, notify the holders of Insider Shares included in such Registration Statement of such filing, and shall further notify such holders promptly
and confirm such advice in writing in all events within two (2) Business Days of the occurrence of any of the following: (i) when such Registration Statement becomes effective;
(ii) when any post-effective amendment to such Registration Statement becomes effective; (iii) the issuance or threatened issuance by the Commission of 

6

 

any
stop order (and the Company shall take all actions required to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the Commission for any amendment or
supplement to such Registration Statement or any Prospectus relating thereto or for additional information or of the occurrence of an event requiring the preparation of a supplement or amendment to
such Prospectus so that, as thereafter delivered to the purchasers of the securities covered by such Registration Statement, such Prospectus will not contain an untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and promptly make available to the holders of Insider Shares included in such
Registration Statement any such supplement or amendment; except that before filing with the Commission a Registration Statement or Prospectus or any amendment or supplement thereto, including
documents incorporated by reference, the Company shall furnish to the holders of Insider Shares included in such Registration Statement and to the legal counsel for any such holders, copies of all
such documents proposed to be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable opportunity to review such documents and comment thereon, and the
Company shall not file any Registration Statement or Prospectus or amendment or supplement thereto, including documents incorporated by reference, to which such holders or their legal counsel shall
reasonably object. 

        3.1.5    State Securities Laws Compliance.    The Company shall use commercially reasonable efforts to
(i) register or qualify the Insider Shares covered by the Registration Statement under such securities or "blue sky" laws of such jurisdictions in the United States as the holders of Insider
Shares included in such Registration Statement (in light of their intended plan of distribution) may request and (ii) take such action necessary to cause such Insider Shares covered by the
Registration Statement to be registered with or approved by such other federal or state authorities as may be necessary by virtue of the business and operations of the Company and do any and all other
acts and things that may be necessary or advisable to enable the holders of Insider Shares included in such Registration Statement to consummate the disposition of such Insider Shares in such
jurisdictions; provided, however, that in no event shall the Company be required to register the Insider Shares in a jurisdiction in which such
registration would cause (i) the Company to be obligated to qualify to do business in any such jurisdiction, 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 (except to the extent such shares are already subject
to an escrow in such jurisdiction). 

        3.1.6    Agreements for Disposition.    The Company shall enter into customary agreements (including, if applicable,
an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such Insider Shares. The representations,
warranties and covenants of the Company in any underwriting agreement which are made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of
the holders of Insider Shares included in such registration statement. No holder of Insider Shares included in such registration statement shall be required to make any representations or warranties
in the underwriting agreement except as reasonably requested by the Company and, if applicable, with respect to such holder's organization, good standing, authority, title to Insider Shares, lack of
conflict of such sale with such holder's material agreements and organizational documents, and with respect to written information relating to such holder that such holder has furnished in writing
expressly for inclusion in such Registration Statement. Holders of Insider Shares shall agree to such covenants and indemnification and contribution obligations for selling stockholders as are
customarily contained in agreements of that type. Further, such holders shall cooperate fully in the preparation of the registration statement and other 

7

 

documents
relating to any offering in which they include securities pursuant to Section 2 hereof. Each holder shall also furnish to the Company such information regarding itself, the Insider
Shares held by such holder, and the intended method of disposition of such securities as shall be reasonably required to effect the registration of the Insider Shares. 

        3.1.7    Cooperation.    The principal executive officer of the Company, the principal financial officer of the
Company, the principal accounting officer of the Company and all other officers and members of the management of the Company shall cooperate fully in any offering of Insider Shares hereunder, which
cooperation shall include, without limitation, the preparation of the Registration Statement with respect to such offering and all other offering materials and related documents, and participation in
meetings with Underwriters, attorneys, accountants and potential investors. 

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

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

        3.1.10    Earnings Statement.    The Company shall comply with all applicable rules and regulations of the Commission
and the Securities Act, and make available to its shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, beginning within six (6) months
after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 

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

        3.2   Obligation to Suspend Distribution.    Upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the
Company, pursuant to a written insider trading compliance program adopted by the Company's Board of Directors, of the ability of all "insiders" covered by such program to transact in the Company's
securities because of the existence of material non-public information, each holder of Insider Shares included in any registration shall immediately discontinue disposition of such Insider
Shares 

8

 

pursuant
to the Registration Statement covering such Insider Shares until such holder receives the supplemented or amended Prospectus contemplated by Section 3.1.4(iv) or the restriction
on the ability of "insiders" to transact in the Company's securities is removed, as applicable, and, if so directed by the Company, each such holder will deliver to the Company all copies, other than
permanent file copies then in such holder's possession, of the most recent Prospectus covering such Insider Shares at the time of receipt of such notice. 

        3.3   Registration Expenses.    The Company shall bear all customary costs and expenses incurred in connection with
any Demand Registration pursuant to Section 2.1, any Piggy-Back Registration pursuant to Section 2.2, and any registration on Form S-3 effected pursuant to
Section 2.3, and all reasonable expenses incurred in performing or complying with its other obligations under this Agreement, whether or not the Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with securities or "blue sky" laws (including fees and disbursements of counsel
in connection with blue sky qualifications of the Insider Shares, subject to the limit set forth in paragraph (ix) below); (iii) printing expenses; (iv) the Company's internal
expenses (including, without limitation, all salaries and expenses of its officers and employees); (v) the fees and expenses incurred in connection with the listing of the Insider Shares, as
required by Section 3.1.11; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and disbursements of counsel for the Company and fees and expenses for
independent
certified public accountants retained by the Company (including the expenses or costs associated with the delivery of any opinions or comfort letters requested pursuant to Section 3.1.9);
(viii) the fees and expenses of any special experts retained by the Company in connection with such registration and (ix) the fees and expenses of one legal counsel selected by the
holders of a majority-in-interest of the Insider Shares that are included in such registration (not to exceed, including the fees and disbursements to counsel in
clause (ii) of this Section 3.3, $[20,000]). The Company shall have no obligation to pay any underwriting discounts or selling commissions attributable to the
Insider Shares being sold by the holders thereof, which underwriting discounts or selling commissions shall be borne solely by such holders. Additionally, in an underwritten offering, all selling
shareholders and the Company shall bear the expenses of the underwriter pro rata in proportion to the respective amount of shares each is selling in such offering. 

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

        3.5   Holder Obligations.    No holder of Insider Shares may participate in any underwritten offering pursuant to
this Section 3 unless such holder (i) agrees to sell only such holder's Insider Shares on the basis reasonably provided in any underwriting agreement, and (ii) completes, executes
and delivers any and all questionnaires, powers of attorney, custody agreements, indemnities, underwriting agreements and other documents reasonably required by or under the terms of any underwriting
agreement or as reasonably requested by the Company. 

	4.
	INDEMNIFICATION
AND CONTRIBUTION. 

        4.1   Indemnification by the Company.    The Company agrees to indemnify and hold harmless each Insider and each
other holder of Insider Shares, and each of their respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and each person, if any, who controls an Insider and
each other holder of Insider Shares (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, an "Insider Indemnified
Party"), 

9

 

from
and against any expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon any untrue statement (or allegedly untrue statement) of a
material fact contained in any Registration Statement under which the sale of such Insider Shares was registered under the Securities Act, any preliminary Prospectus, final Prospectus or summary
Prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement, or arising out of or based upon any omission (or alleged omission) to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such expense, loss, claim, damage or liability arises out of or is based upon
any untrue statement or allegedly untrue statement or omission or alleged omission made in such Registration Statement, preliminary Prospectus, final Prospectus, or summary Prospectus, or any such
amendment or supplement, in reliance upon and in conformity with information furnished to the Company, in writing, by such selling holder expressly for use therein; provided,
however, that the foregoing indemnity shall not inure to the benefit of any holder (or to the benefit of any person controlling such holder) from whom the person asserting such
losses, claims or liabilities purchased the Insider Shares, if a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was
not sent or given by or on behalf of such holder to such person, if required by law so to have been delivered at or prior to the written confirmation of the sale of the Insider Shares to such person,
and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities, unless such failure is the result of noncompliance by the
Company with Section 3.1.3 hereof. The Company also shall indemnify the Underwriter, their officers, employees, affiliates, directors, partners, members, attorneys and agents, and each person
who controls the Underwriter on substantially the same basis as that of the indemnification provided above in this Section 4.1. 

        4.2   Indemnification by Holders of Insider Shares.    Each selling holder of Insider Shares will, with respect to
any Registration Statement where Insider Shares were registered under the Securities Act, indemnify and hold harmless the Company, each of its directors and officers, each underwriter, if any, and
each other person, if any, who controls such selling holder, such underwriter or the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act),
against any losses, claims, judgments, damages or liabilities, whether joint or several, insofar as such losses, claims, judgments, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or allegedly untrue statement of a material fact contained in any Registration Statement under which the sale of such Insider Shares was registered under the
Securities Act, any preliminary Prospectus, final Prospectus or summary Prospectus contained in the Registration Statement, or any amendment or supplement to the Registration Statement, or arise out
of or are based upon any omission or the alleged omission to state a material fact required to be stated therein or necessary to make the statement therein not misleading, if the statement or omission
was made in reliance upon and in conformity with information furnished in writing to the Company by such selling holder expressly for use therein, and shall reimburse the Company, its directors and
officers, and each such controlling person for any legal or other expenses reasonably incurred by any of them in connection with investigation or defending any such loss, claim, damage, liability or
action. Each selling holder's indemnification obligations hereunder shall be several and not joint and shall be limited to the
amount of any net proceeds actually received by such selling holder in connection with the sale of the Insider Shares by such selling holder pursuant to the Registration Statement containing such
untrue statement or allegedly untrue statement. 

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

10

 

notify
such other person (the "Indemnifying Party") in writing of the loss, claim, judgment, damage, liability or action. If the Indemnified Party is
seeking indemnification with respect to any claim or action brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim or action, and, to the
extent that it elects jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel satisfactory to the Indemnified Party. After notice from the Indemnifying Party
to the Indemnified Party of its election to assume control of the defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense thereof other than reasonable costs of investigation. In any such proceeding, the Indemnified Party shall have the right
to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnified Party and the Indemnifying Party shall have
mutually agreed to the retention of such counsel, or (ii) the named parties to any such proceeding (including any impleaded parties) include both the Indemnified Party and the Indemnifying
Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interest between them. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent or there is a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the
Indemnified Party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested an
Indemnifying Party to reimburse the Indemnified Party for fees and expenses of counsel as contemplated in this Section 4.3, the Indemnifying Party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than thirty (30) days after receipt by such Indemnifying Party of the
aforesaid request, and (ii) such Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement (other than
reimbursement for fees and expenses the Indemnifying Party is contesting in good faith). No Indemnifying Party shall, without the prior written consent of the Indemnified Party, consent to entry of
judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which the Indemnified Party is or could have been a party and indemnity could have been sought
hereunder by such Indemnified Party, unless such judgment or settlement includes an unconditional release of such Indemnified Party from all liability arising out of such claim or proceeding. 

	4.4
	Contribution.

        4.4.1     If
the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified Party in respect of any loss, claim,
damage, liability or action referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative benefits received by the Indemnified Parties on the one hand and the
Indemnifying Parties on the other from the offering. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to
give the notice required under Section 4.3 above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Indemnified Parties on the one hand and the Indemnifying Parties on the other in connection with the actions or omissions
which resulted in such loss, claim, damage, liability or action, as well as any other relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying Party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such 

11

 

Indemnifying
Party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

        4.4.2     The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.4 were determined by  pro rata allocation or by any other method of allocation which does not
take account of the equitable considerations referred to in the immediately
preceding Section 4.4.1. The amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately preceding paragraph shall
be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.4, no holder of Insider Shares shall be required to contribute any amount in excess of the dollar amount of the net proceeds (after payment of
any underwriting fees, discounts, commissions or taxes) actually received by such holder from the sale of Insider Shares which gave rise to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

	5.
	UNDERWRITING
AND DISTRIBUTION. 

        5.1   Rule 144. The Company covenants that it shall file any reports required to be filed by it under the Securities Act
and the Exchange Act and shall take such further action as the holders of Insider Shares may reasonably request, all to the extent required from time to time to enable such holders to sell Insider
Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, or any similar provision thereto, but not
Rule 144A. 

	6.
	MISCELLANEOUS.

        6.1   Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder
may not be assigned or delegated by the Company in whole or in part. This Agreement and the rights, duties and obligations of the holders of Insider Shares hereunder may be freely assigned or
delegated by such holder of Insider Shares in conjunction with and to the extent of any permitted transfer of Insider Shares by any such holder in accordance with applicable law. This Agreement and
the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective successors and the permitted assigns of the Insider or holder of Insider Shares
or of any assignee of the Insider or holder of Insider Shares. This Agreement is not intended to confer any rights or benefits on any persons that are not party hereto other than as expressly set
forth in Section 4 and this Section 6.1. 

        6.2   Notices. All notices, demands, requests, consents, approvals or other communications (collectively,  "Notices") required or permitted to be given hereunder or which are
given with respect to this Agreement shall be in writing and shall be personally
served, delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery, telegram, telex or facsimile, addressed as set forth below, or to such other address as such
party shall have specified most recently by written notice provided in accordance with this Section 6.2. Notice shall be deemed given on the date of service or transmission if personally served
or transmitted by telegram, telex or facsimile; provided, that if such service or transmission is not on a Business Day or is after normal business
hours, then such notice shall be deemed given on the next Business Day. Notice otherwise sent as provided herein shall be deemed given on the next Business Day following timely delivery of such notice
to a reputable air courier service with an order for next-day delivery. 

12

 

To
the Company: 

Treehouse
Partners Corporation

1816 Fifth Street

Berkeley, CA 94710

Attention: Robert J. Majteles 

with
a copy to: 

Lowenstein
Sandler, PC

65 Livingston Avenue

Roseland, NJ 07068

Attention: John D. Hogoboom, Esq. 

To
an Insider, to the address set forth below such Insider's name on the signature pages hereof. 

with
a copy to: 

Lowenstein
Sandler, PC

65 Livingston Avenue

Roseland, NJ 07068

Attention: John D. Hogoboom, Esq. 

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

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

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

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

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

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

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

        6.10 Governing Law. This Agreement shall be governed by and interpreted and construed in accordance with the laws of the
State of New York applicable to contracts formed and to be performed entirely within the State of New York, without regard to the conflicts of law provisions thereof to the extent such principles or
rules would require or permit the application of the laws of another jurisdiction. The Company and the holders of the Insider Shares irrevocably and unconditionally submit to the exclusive
jurisdiction of the United States District Court for the Southern District of New York or, if such court does not have jurisdiction, the New York State Supreme Court in the Borough of Manhattan, in
any action arising out of or relating to this Agreement, agree that all claims in respect of the action may be heard and determined in any such court and agree not to bring any action arising out of
or relating to this Agreement in any other court. In any action, the Company and the holders of the Insider Shares irrevocably and unconditionally waive and agree not to assert by way of motion, as a
defense or otherwise any claims that it is not subject to the jurisdiction of the above court, that such action is brought in an inconvenient forum or that the venue of such action is improper.
Without limiting the foregoing, the Company and the holders of the Insider Shares agree that service of process at each parties respective addresses as provided for in Section 6.2 above shall
be deemed effective service of process on such party. 

        6.11 Waiver of Trial by Jury. Each party hereby irrevocably and unconditionally waives the right to a trial by jury in any
action, suit, counterclaim or other proceeding (whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions contemplated hereby, or the
actions of the Insider in the negotiation, administration, performance or enforcement hereof. 

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

	 
	 	 
	 	 

	 	 	TREEHOUSE PARTNERS CORPORATION
	

 	
 	

By:	
 	

	 	 	Name:	 	Robert J. Majteles
	 	 	Title:	 	President

	 
	 	 
	 	 

	 	 	INSIDERS:
	

 	
 	

By:	
 	

	 	 	 	 	Robert J. Majteles
	

 	
 	

c/o Treehouse Partners Corporation

1816 Fifth Street

Berkeley, CA 94710
	

 	
 	

By:	
 	

	 	 	 	 	Steven G. Blank
	

 	
 	

c/o Treehouse Partners Corporation

1816 Fifth Street

Berkeley, CA 94710
	

 	
 	

By:	
 	

	 	 	 	 	Robert M. Bozeman
	

 	
 	

c/o Treehouse Partners Corporation

1816 Fifth Street

Berkeley, CA 94710
	

 	
 	

By:	
 	

	 	 	 	 	Jon R. Norberg
	

 	
 	

c/o Treehouse Partners Corporation

1816 Fifth Street

Berkeley, CA 94710
	

 	
 	

By:	
 	

	 	 	 	 	David J. Robbins
	

 	
 	

c/o Treehouse Partners Corporation

1816 Fifth Street

Berkeley, CA 94710
	

 	
 	

MGS PARTNERS, LLC
	

 	
 	

By:	
 	

	

 	
 	

c/o Special Situations Funds

153 E. 53rd Street, 55th Floor

New York, NY 10022

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QuickLinks

Exhibit 10.7

REGISTRATION RIGHTS AGREEMENT

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