Document:

Exhibit
      4.1

     

    WARRANT
      AGREEMENT

    

    This
      Warrant Agreement (this “Agreement”) is made as of October 4, 2007, by and
      between FMG Acquisition Corp., a Delaware corporation having its principal
      place
      of business at Four Forest Park, Farmington, CT 06032 (“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
      (“Units”) and, in connection therewith, has determined to issue and deliver up
      to (i) 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 $.0001 per share, of the Company’s Common
      Stock (“Common Stock”) for $6.00, subject to adjustment as described herein and
      (ii) 450,000 Warrants to Pali Capital, Inc. (“Pali”) as representative of the
      underwriters (the “Underwriters”) or its designees (the “Underwriter’s
      Warrants”), with each of such Underwriter’s Warrants evidencing the right of the
      holder thereof to purchase one share of Common Stock for $6.00, subject to
      adjustment as described herein;

     

    WHEREAS,
      immediately prior to the completion of the Public Offering, the Company shall
      sell and issue 1,250,000 Warrants in a private placement (the “Private
      Warrants”) pursuant to that certain Subscription Agreement dated May 22, 2007
      (the “Subscription Agreement”), each of such Private Warrants evidencing the
      right of the holder thereof (the “Initial Purchaser”) to purchase one share of
      Common Stock (the Public Warrants, the Underwriter’s Warrants and the Private
      Warrants are collectively referred to herein as the “Warrants”);

     

    WHEREAS,
      the Company has filed with the Securities and Exchange Commission (the “SEC”) a
      Registration Statement, No. 333-143466 on Form S-1 (“Registration
      Statement”) for the registration under the Securities Act of 1933, as amended
      (“Act”) of, among other securities, the Public Warrants, the Underwriter’s
      Warrants and the Common Stock issuable upon exercise of each of the Public
      Warrants and the Underwriter’s Warrants; and

     

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

     

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

     

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

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    2. Warrants.

     

    2.1 Form
      of Warrant.
      Each
      Warrant shall be issued in registered form only. The Public Warrants and the
      Underwriter’s Warrants shall be in substantially the form of Exhibit
      A
      hereto
      and the Private Warrants shall be in substantially the form of Exhibit
      B
      hereto,
      the provisions of each of which are incorporated herein, and shall be signed
      by,
      or bear the facsimile signature of, the Chief Executive Officer or President
      and
      Chief Financial Officer, 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
      original issuance and the registration of transfer 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 Public Warrants.
      The
      securities comprising the Units will begin to trade separately on the 90th
      trading day after the effective date of the Registration Statement unless Pali
      informs the Company of its decision to allow earlier trading (the “Detachment
      Date”), provided that in no event will Pali allow the separate trading of the
      securities comprising the Units until (i) the Company files with the SEC 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 sale of the Private
      Warrants and 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, (ii)
      the
      Company issues a press release and files with the SEC a Current Report on Form
      8-K announcing when such separate trading will begin, and (iii) the date on
      which separate trading begins is a business day following the earlier to occur
      of the exercise of the Underwriters’ over-allotment option or its exercise in
      full (as described more fully in the Registration Statement).

    
      
        
        

      

      
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    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 this Warrant
      Agreement, to purchase from the Company the number of shares of Common Stock
      stated therein, at the price of $6.00 per whole share, subject to the
      adjustments provided in this Section 3.1 and Section 4 hereof. The term “Warrant
      Price” as used in this Warrant Agreement refers to the price per share at which
      Common Stock may be purchased at the time a Warrant is exercised. The Company
      in
      its sole discretion may lower the Warrant Price at any time prior to the
      Expiration Date for a period of not less than ten business days, provided that
      any such reduction shall be identical among all of the Warrants.

     

    3.2 Duration
      of Warrants.
      

    

    3.2.1
      Public
      Warrants and Underwriter’s Warrants.
      A
      Public Warrant or Underwriter’s Warrant may be exercised only during the period
      commencing on the later of: (i) the consummation by the Company of a merger,
      capital stock exchange, asset acquisition or other similar business combination
      (as described more fully in the Registration Statement, “Business Combination”),
      or (ii) October 4, 2008, and terminating at 5:00 p.m., New York City time on
      the
      earlier to occur of (x) October 4, 2011 or (y) the date fixed for redemption
      of
      the Warrants as provided in Section 6 of this Agreement. Notwithstanding the
      foregoing, no Public Warrant or Underwriter’s Warrant shall be exercisable
      unless, at the time of exercise, a registration statement relating to the Common
      Stock issuable upon the exercise of such Public Warrant or Underwriter’s Warrant
      is effective and current and a prospectus is available for use by the holders
      thereof and the Common Stock has been qualified or deemed to be exempt under
      the
      securities laws of the state of residence of the holder of such Public Warrants
      or Underwriter’s Warrants.

     

    3.2.2 Private
      Warrants.
      A
      Private Warrant may be exercised only during the period following consummation
      of a Business Combination by the Company and terminating at 5:00 p.m., New
      York
      City time on the earlier to occur of (x) October 4, 2011 or (y) the date fixed
      for redemption of the Warrants as provided in Section 6 of this Agreement.
      The
      Private Warrants are not subject to redemption so long as they are held by
      their
      initial purchasers or their permitted designees. The Private Warrants may not
      be
      sold, assigned or transferred prior to the 90th
      day
      following consummation of a Business Combination

     

    3.2.3 General.
      The
      period during which a Warrant may be exercised shall be deemed the “Exercise
      Period” and the termination of such Exercise Period shall be deemed the
“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 in its sole discretion may extend
      the duration of the Warrants by delaying the Expiration Date; provided, however,
      the Company will provide notice to registered holders of the Warrants of such
      extension of not less than 20 days and, further provided that any such extension
      shall be identical in duration among all of the Warrants. 

    
      
        
        

      

      
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    3.3 Exercise
      of Warrants.

     

    3.3.1 Payment.
      Subject
      to the provisions of the Warrants 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 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,
      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, if the Warrants have been called for
      redemption, the Company will have the option to require any holder that wishes
      to exercise such Warrants to do so by surrendering his or her 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,
      multiplied by the difference between the Warrant Price and the “Fair Market
      Value” (defined below) by (y) the Fair Market Value. The “Fair Market Value”
shall mean the average reported last sale price of the Common Stock for the
      10
      trading days ending on the third business day prior to the date on which notice
      of redemption is sent to holders of the Warrant pursuant to Section 6 hereof.
      

     

    3.3.2 Exercise
      of Private Warrant.
      Notwithstanding anything contained herein to the contrary, the Private Warrant
      may, at any time, provided that at the time of exercise they are held by the
      original purchaser thereof or its permitted assigns, be exercised by
      surrendering such 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, multiplied by the difference
      between the Warrant Price and the “FMV” (defined below) by (y) the FMV. The
“FMV” shall mean the average reported last sale price of the Common Stock for
      the 10 trading days ending on the third business day prior to the date on which
      notice of exercise is received by the Company. 

     

    3.3.3 Issuance
      of Certificates.
      As soon
      as practicable after the exercise of any Warrant and the clearance of the funds
      in payment of the Warrant Price, the Company shall issue to the registered
      holder of such Warrant a certificate or certificates for the number of full
      shares of Common Stock to which he, 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 in full, a new countersigned Warrant for the number
      of
      shares as to which such Warrant shall not have been exercised. Notwithstanding
      the foregoing, the Company shall not be obligated to deliver any securities
      pursuant to the exercise of a Warrant unless: (i) a registration statement
      under
      the Act with respect to the Common Stock issuable upon such exercise 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
      holders reside. Warrants may not be exercised by, or securities issued to,
      any
      registered holder in any state in which such exercise or issuance would be
      unlawful. In no event will the Company be required to provide the registered
      holder of a warrant with a net-cash settlement or other consideration in lieu
      of
      physical settlement in shares of Common Stock, regardless of whether the Common
      Stock underlying the Warrants is registered pursuant to an effective
      registration statement. Accordingly, the Warrants may expire unexercised and
      worthless if a current registration statement covering the Common Stock is
      not
      effective.

    
      
        
        

      

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

     

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

     

    4. Adjustments.

     

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

    
      
        
        

      

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

     

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

     

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

     

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

    
      
        
        

      

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

     

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

     

    5.3 Procedure
      for Surrender of Warrants.
      Warrants may be surrendered to the Warrant Agent, together with a written
      request for exchange or transfer, and thereupon the Warrant Agent shall issue
      in
      exchange therefor one or more new Warrants as requested by the registered holder
      of the Warrants so surrendered, representing an equal aggregate number of
      Warrants; provided, however, in the event a Warrant surrendered for transfer
      bears a restrictive legend, the Warrant Agent shall not cancel such Warrant
      and
      issue new Warrants in exchange therefor until the Warrant Agent has received
      an
      opinion of counsel for the Company stating such transfer may be made and
      indicating whether the new Warrants must also bear a restrictive
      legend.

     

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

     

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

     

    5.6 Warrant
      Execution and Countersignature.
      The
      Warrant Agent is hereby authorized to countersign and 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.

    
      
        
        

      

      
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    5.7 Private
      Warrants.
      Notwithstanding anything herein to the contrary, the Warrant Agent shall not
      register for transfer any Private Warrants until the 90th day after the
      consummation of a Business Combination, except for (a) transfers of Private
      Warrants resulting from the death of any of the holders thereof, (b) transfers
      by operation of law, (c) any transfer for estate planning purposes to persons
      immediately related to the transferor by blood, marriage or adoption, or (d)
      transfers to any trust solely for the benefit of such transferor and/or the
      persons described in the preceding clause, on condition that prior to such
      registration for transfer, the Warrant Agent shall be presented with written
      documentation pursuant to which each permitted transferee or the trustee or
      legal guardian for each permitted transferee agrees to be bound by the terms
      of
      the Subscription Agreement.

     

    6. Redemption.

     

    6.1 Redemption.
      Not
      less than all of the outstanding Public Warrants and the Underwriter’s 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 6.3, at the price of $.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. Notwithstanding the
      foregoing, the Registration Statement must be current in order for the Company
      to exercise its redemption rights pursuant to this Section 6. The provisions
      of
      this Section 6.1 may not be modified, amended or deleted without the prior
      written consent of Pali. The Private Warrants are not subject to this Section
      6
      provided they are held by the initial purchasers thereof, or their permitted
      designees.

     

    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.

     

    6.4 Outstanding
      Warrants Only.
      The
      Company understands 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 are met,
      including the opportunity of the Warrant holder to exercise prior to redemption
      pursuant to Section 6.3. The provisions of this Section 6.4 may not be modified,
      amended or deleted without the prior written consent of Pali.

    
      
        
        

      

      
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    6.5 Exclusion
      of Private Warrants.
      The
      Company understands that the redemption rights provided for by this Section
      6 do
      not apply to the Private Warrants if at the time of redemption such warrants
      continue to be held by the Initial Purchaser or its permitted assigns. However,
      once such Private Warrants are transferred other than to any permitted assign,
      the Company may redeem the Private Warrants, provided that the criteria for
      redemption are met, including the opportunity of the Warrant holder to exercise
      prior to redemption pursuant to Section 6.3.

     

    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 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 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 SEC 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 use its best efforts to maintain the effectiveness of such registration
      statement until the expiration of the Warrants in accordance with the provisions
      of this Warrant Agreement; provided, however, the Company shall not be obligated
      to deliver Common Stock and shall not have penalties for failure to deliver
      Common Stock if a registration statement is not effective at the time of
      exercise by the holder. 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 the exercising warrant holders to the extent an exemption is not
      available. The provisions of this Section 7.4 may not be modified, amended
      or
      deleted without the prior written consent of Pali. Notwithstanding the
      foregoing, a Warrant can expire unexercised 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 or shares of Common Stock
      or other consideration as of result of the Company's non-compliance with this
      Section 7.4.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    8. Concerning
      the Warrant Agent and Other Matters.

     

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

     

    8.2 Resignation,
      Consolidation, or Merger of Warrant Agent.

     

    8.2.1 Appointment
      of Successor Warrant Agent.
      The
      Warrant Agent, or any successor to it hereafter appointed, may resign its duties
      and be discharged from all further duties and liabilities hereunder after giving
      sixty (60) days’ notice in writing to the Company. If the office of the Warrant
      Agent becomes vacant by resignation or incapacity to act or otherwise, the
      Company shall appoint in writing a successor Warrant Agent in place of the
      Warrant Agent. If the Company shall fail to make such appointment within a
      period of 30 days after it has been notified in writing of such resignation
      or
      incapacity by the Warrant Agent or by the holder of the Warrant (who shall,
      with
      such notice, submit his Warrant for inspection by the 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 having its principal office in the Borough of
      Manhattan, City and State of New York, and authorized under such laws to
      exercise corporate trust powers and subject to supervision or examination by
      federal or state authority. After appointment, any successor Warrant Agent
      shall
      be vested with all the authority, powers, rights, immunities, duties, and
      obligations of its predecessor Warrant Agent with like effect as if originally
      named as Warrant Agent hereunder, without any further act or deed; but if for
      any reason it becomes necessary or appropriate, the predecessor Warrant Agent
      shall execute and deliver, at the expense of the Company, an instrument
      transferring to such successor Warrant Agent all the authority, powers, and
      rights of such predecessor Warrant Agent hereunder; and upon request of any
      successor Warrant Agent the Company shall make, execute, acknowledge, and
      deliver any and all instruments in writing for more fully and effectually
      vesting in and confirming to such successor Warrant Agent all such authority,
      powers, rights, immunities, duties, and obligations.

     

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

     

    8.2.3 Merger
      or Consolidation of Warrant Agent.
      Any
      corporation into which the Warrant Agent may be merged or with which it may
      be
      consolidated or any corporation resulting from any merger or consolidation
      to
      which the Warrant Agent shall be a party shall be the successor Warrant Agent
      under this Warrant Agreement without any further act.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    8.3 Fees
      and Expenses of Warrant Agent.

     

    8.3.1 Remuneration.
      The
      Company agrees to pay the Warrant Agent reasonable remuneration for its services
      as such Warrant Agent hereunder as set forth on Exhibit C
      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.

     

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

     

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

     

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

     

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

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

     

    9. Miscellaneous
      Provisions.

     

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

     

    9.2 Notices.
      Any
      notice or other communication required or which may be given hereunder shall
      be
      in writing and either be delivered personally or by private national courier
      service, or be mailed, certified or registered mail, return receipt requested,
      postage prepaid, and shall be deemed given when so delivered personally or,
      if
      sent by private national courier service, on the next business day after
      delivery to the courier, or, if mailed, two business days after the date of
      mailing, as follows:

     

    FMG
      Acquisition Corp.

    Four
      Forest Park

    Farmington,
      CT 06032

    Attn:
       Gordon Pratt, Chief Executive Officer and President

     

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

    

    Continental
      Stock Transfer & Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      Frank DiPaolo

     

    with
      a
      copy in each case to:

    

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Attn:
      Christopher S. Auguste, Esq.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    and

    Ellenoff
      Grossman & Schole LLP

    370
      Lexington Avenue

    New
      York,
      New York 10017

    Attn:
        Douglas Ellenoff, Esq.

     

    and

    Pali
      Capital, Inc.

    650
      Fifth
      Avenue, 6th
      floor

    New
      York,
      New York 10019

    Attn:
      R.
      Michael Powell, Managing Director

     

    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 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 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.

     

    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, 9.2 and 9.8 hereof, Pali, any right, remedy, or claim under or by reason
      of
      this Warrant Agreement or of any covenant, condition, stipulation, promise,
      or
      agreement hereof. Pali shall be deemed to be a third-party beneficiary of this
      Warrant Agreement with respect to Sections 6.1, 6.4, 7.4, 9.2 and 9.8 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 Pali with respect to the Sections 6.1, 6.4, 7.4, 9.2 and
      9.8
      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 Agreement shall be available at all reasonable times at the office
      of
      the Warrant Agent in the Borough of Manhattan, City and State of New York,
      for
      inspection by the registered holder of any Warrant. The Warrant Agent may
      require any such holder to submit his Warrant for inspection by it.

     

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

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    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, shall require the
      written consent of each of Pali 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 document continued on next page]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

        
        

      

    

     

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

    

    
      	 Attest:	
               /s/
                Cheryl L. Benvenuto

            	 	
              FMG
                ACQUISITION CORP.

            
	 	 	 	 	 
	 	 	 	
              By:

            	
              /s/
                Gordon Pratt

            
	 	 	 	 	
              Gordon
                Pratt

            
	 	 	 	 	
              Chief
                Executive Officer

            
	 	 	 	 
	 Attest:
              	
              /s/
                John W. Comer

            	 	
              CONTINENTAL STOCK TRANSFER & TRUST COMPANY

            
	 	 	 	 
	 	 	 	
              By:
                

            	
              /s/
                Gregory P. Denman

            
	 	 	 	
              Name:

            	
              Gregory
                P. Denman

            
	 	 	 	
              Title:

            	
              Vice
                PresidentExhibit
      4.2

     

    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) PALI CAPITAL, INC. ("PALI"), OR AN UNDERWRITER OR A SELECTED DEALER
      IN
      CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF PALI
      OR
      OF ANY SUCH UNDERWRITER OR SELECTED DEALER. 

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF THE CONSUMMATION BY
      FMG
      ACQUISITION CORP. ("COMPANY") OF A SHARE CAPITAL EXCHANGE, ASSET ACQUISITION
      OR
      OTHER SIMILAR BUSINESS COMBINATION ("BUSINESS COMBINATION") (AS DESCRIBED MORE
      FULLY IN THE COMPANY'S REGISTRATION STATEMENT (DEFINED HEREIN)) OR OCTOBER
      4,
      2008. VOID AFTER 5:00 P.M. NEW YORK CITY LOCAL TIME, OCTOBER 4, 2012.

     

    UNIT
      PURCHASE OPTION 

    FOR
      THE PURCHASE OF 

    [  
         ] UNITS 

    OF
      

    FMG
      ACQUISITION CORP. 

    

    1. PURCHASE
      OPTION. 

     

    THIS
      CERTIFIES THAT,
      in
      consideration of $[     ] duly paid by or
      on behalf of [     ] or its designee
      ("HOLDER"), as registered owner of this Purchase Option, to FMG Acquisition
      Corp. ("COMPANY"), Holder is entitled, at any time or from time to time upon
      the
      later of the consummation of a Business Combination or October 4, 2008
      ("COMMENCEMENT DATE"), and at or before 5:00 p.m., New York City local time,
      October 4, 2012 ("EXPIRATION DATE"), but not thereafter, to subscribe for,
      purchase and receive, in whole or in part, up to [   
 ] units ("UNITS") of the Company, each Unit consisting of
      one share of common stock of the Company, par value $0.0001 per share ("COMMON
      SHARE(S)"), 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 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 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 Common Shares 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 or by certified check or official bank
      check. If the subscription rights represented hereby shall not be exercised
      at
      or before 5:00 p.m., New York City local time, on the Expiration Date this
      Purchase Option shall become and be void without further force or effect, and
      all rights represented hereby shall cease and expire. 

     

    2.2 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 Shares 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
      (the
      "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 Common Shares and Warrants comprising
      that number of Units equal to the quotient obtained by dividing (x) the "Value"
      (as defined below) of the portion of the Purchase Option being converted by
      (y)
      the Current Market Value (as defined below) of the portion of the Purchase
      Option being converted. 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 Common Shares issuable upon exercise of
      the
      Warrants underlying one Unit from (y) (i) the Current Market Price of the Common
      Shares multiplied by (ii) the number of Common Shares underlying one Unit,
      which
      shall include the Common Shares underlying the Warrants included in such Unit;
      (B) in the event that the Units, Common Shares and Warrants are still trading,
      (i) if the Units are listed on a national securities exchange or quoted on
      the
      Nasdaq Global Market, Nasdaq Capital Market or NASD OTC Bulletin Board (or
      successor 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 Global Market, Nasdaq Capital Market or the
      NASD OTC Bulletin Board (or successor exchange), but is traded in the residual
      over-the-counter market, the closing bid price for Units on the last trading
      day
      preceding the date in question for which such quotations are reported by the
      Pink Sheets, LLC or similar publisher of such quotations; and (C) in the event
      that the Units are not still trading but the Common Shares and Warrants
      underlying the Units are still trading, the Current Market Price of the Common
      Shares plus the product of (x) the Current Market Price of the Warrants and
      (y)
      the number of Warrants included in one Unit. The "CURRENT MARKET PRICE" shall
      mean (i) if the Common Shares (or Warrants, as the case may be) are listed
      on a
      national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
      Capital Market or NASD OTC Bulletin Board (or successor such as the Bulletin
      Board Exchange), the last sale price of the Common Shares (or Warrants) in
      the
      principal trading market for the Common Shares as reported by the exchange,
      Nasdaq or the NASD, as the case may be, on the last trading day preceding the
      date in question; (ii) if the Common Shares (or Warrants, as the case may be)
      are not listed on a national securities exchange or quoted on the Nasdaq Global
      Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or successor
      exchange), but are traded in the residual over-the-counter market, the closing
      bid price for the Common Shares (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 Shares 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. 

     

    
      
        
        

      

      
        -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 hereto with the cashless exercise section completed
      to
      the Company, exercising the Cashless Exercise Right and specifying the total
      number of Units the Holder will purchase pursuant to such Cashless Exercise
      Right. 

     

    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) Pali or an underwriter or a selected dealer in connection
      with the Offering, or (ii) a bona fide officer or partner of Pali 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. 

     

    3.2 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 Kramer Levin Naftalis
      & Frankel LLP shall be deemed satisfactory evidence of the availability of
      an exemption), or (ii) a registration statement or a post-effective amendment
      to
      the Registration Statement relating to such securities has been filed by the
      Company and declared effective by the Securities and Exchange Commission (the
      "COMMISSION") and compliance with applicable state securities law has been
      established. 

     

    4. NEW
      PURCHASE OPTIONS TO BE ISSUED. 

     

    4.1 PARTIAL
      EXERCISE OR TRANSFER. Subject to the restrictions in Section 3 hereof, this
      Purchase Option may be exercised or assigned in whole or in part. In the event
      of the exercise or assignment hereof in part only, upon surrender of this
      Purchase Option for cancellation, together with the duly executed exercise
      or
      assignment form and except in the case of an exercise of this Purchase Option
      contemplated by Section 2.3 hereof, 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. 

     

    
      
        
        

      

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

     

    5. REGISTRATION
      RIGHTS. 

     

    5.1 DEMAND
      REGISTRATION. 

     

    5.1.1 GRANT
      OF
      RIGHT. The Company, upon written demand ("INITIAL DEMAND NOTICE") of the
      Holder(s) of at least 51% of the Purchase Options and/or the underlying Units
      and/or the underlying securities ("MAJORITY HOLDERS"), agrees to register (the
      "DEMAND REGISTRATION") under the Act 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 Shares, the Warrants and the Common Shares 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
      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. 

     

    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. 

     

    
      
        
        

      

      
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    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 Common Shares or other securities which the Company
      desires to sell and the Common Shares, if any, as to which registration has been
      requested pursuant to written contractual piggy-back registration rights held
      by
      other shareholders 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 Common Shares 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 Common Shares 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 October __,
      2007 (the "REGISTRATION RIGHTS AGREEMENT" and such registrable securities,
      the
      "INVESTOR SECURITIES") as to which "piggy-back" registration has been requested
      by the holders thereof, Pro Rata, that can be sold without exceeding the Maximum
      Number of Shares; and (iv) fourth, to the extent that the Maximum Number of
      Shares have not been reached under the foregoing clauses (i), (ii), and (iii),
      the Common Shares 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. 

     

    5.1.6 TERMS.
      The Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of any legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions. The Company agrees to use its reasonable best efforts to qualify
      or
      register the Registrable Securities in such states as are reasonably requested
      by the Majority Holder(s); provided, however, that in no event shall the Company
      be required to register the Registrable Securities in a state in which such
      registration would cause (i) the Company to be obligated to qualify to do
      business in such state, or would subject the Company to taxation as a foreign
      corporation doing business in such jurisdiction or (ii) the principal
      shareholders of the Company to be obligated to escrow their shares of share
      capital of the Company. The Company shall 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 nine consecutive months from
      the effective date of such registration statement or post-effective amendment.
      

     

    
      
        
        

      

      
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    5.2 PIGGY-BACK
      REGISTRATION. 

     

    5.2.1 PIGGY-BACK
      RIGHTS. If at any time during the seven year period commencing on the Effective
      Date the Company proposes to file a registration statement under the Act with
      respect to an offering of equity securities, or securities or other obligations
      exercisable or exchangeable for, or convertible into, equity securities, by
      the
      Company for its own account or for shareholders of the Company for their account
      (or by the Company and by shareholders of the Company including, without
      limitation, pursuant to Section 5.1), other than a registration statement (i)
      filed in connection with any employee share option or other benefit plan, (ii)
      for an exchange offer or offering of securities solely to the Company's existing
      shareholders, (iii) for an offering of debt that is convertible into equity
      securities of the Company or (iv) for a dividend reinvestment plan, then the
      Company shall (x) give written notice of such proposed filing to the holders
      of
      Registrable Securities as soon as practicable but in no event less than ten
      (10)
      days before the anticipated filing date, which notice shall describe the amount
      and type of securities to be included in such offering, the intended method(s)
      of distribution, and the name of the proposed managing underwriter or
      underwriters, if any, of the offering, and (y) offer to the holders of
      Registrable Securities in such notice the opportunity to register the sale
      of
      such number of shares of Registrable Securities as such holders may request
      in
      writing within five (5) days following receipt of such notice (a "PIGGY-BACK
      REGISTRATION"). The Company shall cause such Registrable Securities to be
      included in such registration and shall use its best efforts to cause the
      managing underwriter or underwriters of a proposed underwritten offering to
      permit the Registrable Securities requested to be included in a Piggy-Back
      Registration on the same terms and conditions as any similar securities of
      the
      Company and to permit the sale or other disposition of such Registrable
      Securities in accordance with the intended method(s) of distribution thereof.
      All holders of Registrable Securities proposing to distribute their securities
      through a Piggy-Back Registration that involves an underwriter or underwriters
      shall enter into an underwriting agreement in customary form with the
      underwriter or underwriters selected for such Piggy-Back Registration.

     

    5.2.2 REDUCTION
      OF OFFERING. If the managing underwriter or underwriters for a Piggy-Back
      Registration that is to be an underwritten offering advises the Company and
      the
      holders of Registrable Securities in writing that the dollar amount or number
      of
      Common Shares which the Company desires to sell, taken together with Common
      Shares, 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 Common Shares, if any, as to
      which registration has been requested pursuant to the written contractual
      piggy-back registration rights of other shareholders 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 Common Shares 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 Common Shares 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 Common Shares 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 Common Shares 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 Common Shares
      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 Common Shares 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 Common Shares 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 Common Shares 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
      Common Shares 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 Common Shares or other
      securities for the account of other persons that the Company is obligated to
      register pursuant to written contractual arrangements with such persons, that
      can be sold without exceeding the Maximum Number of Shares. 

     

    5.2.3 WITHDRAWAL.
      Any holder of Registrable Securities may elect to withdraw such holder's request
      for inclusion of Registrable Securities in any Piggy-Back Registration by giving
      written notice to the Company of such request to withdraw prior to the
      effectiveness of the registration statement. The Company (whether on its own
      determination or as the result of a withdrawal by persons making a demand
      pursuant to written contractual obligations) may withdraw a registration
      statement at any time prior to the effectiveness of the registration statement.
      Notwithstanding any such withdrawal, the Company shall pay all expenses incurred
      by the holders of Registrable Securities in connection with such Piggy-Back
      Registration as provided in Section 5.2.4. 

     

    5.2.4 TERMS.
      The Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of any legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities but the Holders shall pay any and all underwriting
      commissions related to the Registrable Securities. In the event of such a
      proposed registration, the Company shall furnish the then Holders of outstanding
      Registrable Securities with not less than fifteen days written notice prior
      to
      the proposed date of filing of such registration statement. Such notice to
      the
      Holders shall continue to be given for each applicable registration statement
      filed (during the period in which the Purchase Option is exercisable) by the
      Company until such time as all of the Registrable Securities have been
      registered and sold. The Holders of the Registrable Securities shall exercise
      the "piggy-back" rights provided for herein by giving written notice, within
      ten
      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 nine
      months from the date that the Holders of the Registrable Securities are first
      given the opportunity to sell all of such securities. 

     

    
      
        
        

      

      
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    5.3 NO
      NET-CASH SETTLEMENT OR DAMAGES UPON FAILURE OF REGISTRATION. In no event shall
      the registered Holder of this Purchase Option be entitled to (i) net-cash
      settlement of this Purchase Option, regardless of whether any or all of the
      Registrable Securities have been registered by the Company pursuant to an
      effective registration statement, or (ii) receive any damages if any or all
      of
      the Registrable Securities have not been registered by the Company pursuant
      to
      an effective registration statement, subject to the requirement that the Company
      use its best efforts to have a registration statement or post-effective
      amendment filed pursuant to this Section declared effective as soon as possible
      after receiving the Initial Demand Notice. In the event there is no effective
      registration statement related to the issuance or exercise of the Warrants
      contained within the Units, that portion of the Units may not be exercised
      by
      the Holder and therefore may expire and be worthless. 

     

    5.4 GENERAL
      TERMS. 

     

    5.4.1 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, Pali 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. 

     

    5.4.2 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. 

     

    
      
        
        

      

      
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    5.4.3 DOCUMENTS
      DELIVERED TO HOLDERS. The Company shall furnish Pali, 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)
      in
      the case of an underwritten offering, a "cold comfort" letter dated the
      effective date of such registration statement (and 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 Pali, 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 Pali, 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 it
      deems reasonably necessary to comply with applicable securities laws or rules
      of
      the National Association of Securities Dealers, Inc. ("NASD"). Such
      investigation shall include access to books, records and properties and
      opportunities to discuss the business of the Company with its officers and
      independent auditors, all to such reasonable extent and at such reasonable
      times
      and as often as Pali, as representative of the Holders, shall reasonably
      request. The Company shall not be required to disclose any confidential
      information or other records to Pali, 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.

     

    5.4.4 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
      shareholders as are customarily contained in agreements of that type used by
      the
      managing underwriter. Further, such Holders shall execute appropriate custody
      agreements and otherwise cooperate fully in the preparation of the registration
      statement and other documents relating to any offering in which they include
      securities pursuant to this Section 5. Each Holder shall also furnish to the
      Company such information regarding itself, the Registrable Securities held
      by
      it, and the intended method of disposition of such securities as shall be
      reasonably required to effect the registration of the Registrable Securities.
      

     

    5.4.5 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). 

     

    
      
        
        

      

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

     

    6. ADJUSTMENTS.
      

     

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

     

    6.1.1 SHARE
      DIVIDENDS - SPLIT-UPS. If after the date hereof, and subject to the provisions
      of Section 6.3 below, the number of outstanding Common Shares is increased
      by a
      share dividend payable in Common Shares or by a split-up of Common Shares or
      other similar event, then, on the effective date thereof, the number of Common
      Shares underlying each of the Units purchasable hereunder shall be increased
      in
      proportion to such increase in outstanding shares. In such case, the number
      of
      Common Shares, 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 share 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 $6.00 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 Common Shares and two Warrants (each Warrant exercisable for
      $3.00 per share). 

     

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

     

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

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    6.1.4 REPLACEMENT
      OF SECURITIES UPON REORGANIZATION, ETC. In case of any reclassification or
      reorganization of the outstanding Common Shares other than a change covered
      by
      Section 6.1.1 or 6.1.3 hereof or that solely affects the par value of such
      Common Shares, 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 Common Shares), 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 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
      Common Shares 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 Common Shares covered by Section
      6.1.1 or 6.1.3, then such adjustment shall be made pursuant to Sections 6.1.1,
      6.1.3 and this Section 6.1.4.
      The provisions of this Section 6.1.4 shall similarly apply to successive
      reclassifications, reorganizations, mergers or consolidations, sales or other
      transfers. 

     

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

     

    6.1.6 ADJUSTMENTS
      OF WARRANTS. To the extent the price of the Warrants are lowered pursuant to
      Section 3.1 of the Warrant Agreement, dated October __, 2007, between the
      Company and Continental Stock Transfer & Trust Company (the "WARRANT
      AGREEMENT") the price of the Warrants underlying the Purchase Option shall
      be
      reduced on identical percentage terms. 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. 

     

    6.2 SUBSTITUTE
      PURCHASE OPTION. In case of any consolidation of the Company with, or merger
      of
      the Company with, or merger of the Company into, another corporation (other
      than
      a consolidation or merger which does not result in any reclassification or
      change of the outstanding Common Shares), 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 and other securities and property
      receivable upon such consolidation or merger, by a holder of the number of
      Common Shares of the Company for which such Purchase Option might have been
      exercised immediately prior to such consolidation, merger, sale or transfer.
      Such supplemental Purchase Option shall provide for adjustments which shall
      be
      identical to the adjustments provided in Section 6. The above provision of
      this
      Section shall similarly apply to successive consolidations or mergers.

     

    6.3 ELIMINATION
      OF FRACTIONAL INTERESTS. The Company shall not be required to issue certificates
      representing fractions of Common Shares 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 or down to the nearest
      whole number of Warrants, Common Shares or other securities, properties or
      rights. 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    7. RESERVATION
      AND LISTING. The Company shall at all times reserve and keep available out
      of
      its authorized Common Shares, solely for the purpose of issuance upon exercise
      of the Purchase Options or the Warrants underlying the Purchase Option, such
      number of Common Shares 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
      Common Shares 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 shareholder. 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 Common Shares 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 shareholder.
      As long as the Purchase Options shall be outstanding, the Company shall use
      its
      best efforts to cause all (i) Units and Common Shares issuable upon exercise
      of
      the Purchase Options, (iii) Warrants issuable upon exercise of the Purchase
      Options and (iv) Common Shares issuable upon exercise of the Warrants included
      in the Units issuable upon exercise of the Purchase Option to be listed (subject
      to official notice of issuance) on all securities exchanges (or, if applicable
      on the Nasdaq Global Market, Capital Market, OTC Bulletin Board or any successor
      trading market) on which the Units, the Common Shares or the Public Warrants
      issued to the public in connection herewith may then be listed and/or quoted.
      

     

    8. CERTAIN
      NOTICE REQUIREMENTS. 

     

    8.1 HOLDER'S
      RIGHT TO RECEIVE NOTICE. Nothing herein shall be construed as conferring upon
      the Holders the right to vote or consent as a shareholder for the election
      of
      directors or any other matter, or as having any rights whatsoever as a
      shareholder of the Company. If, however, at any time prior to the expiration
      of
      the Purchase Options and their exercise, any of the events described in Section
      8.2 shall occur, then, in one or more of said events, the Company shall give
      written notice of such event at least fifteen days prior to the date fixed
      as a
      record date or the date of closing the transfer books for the determination
      of
      the shareholders 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 shareholders of the Company at the same
      time and in the same manner that such notice is given to the shareholders.
      

     

    8.2 EVENTS
      REQUIRING NOTICE. The Company shall be required to give the notice described
      in
      this Section 8 upon one or more of the following events: (i) if the Company
      shall take a record of the holders of its Common Shares 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 Shares any additional shares of share capital of
      the
      Company or securities convertible into or exchangeable for shares of share
      capital of the Company, or any option, right or warrant to subscribe therefor,
      or (iii) a dissolution, liquidation or winding up of the Company (other than
      in
      connection with a consolidation or merger) or a sale of all or substantially
      all
      of its property, assets and business shall be proposed. 

     

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

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

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

     

    FMG
      Acquisition Corp.

    Four
      Forest Park

    Farmington,
      CT 06032

    Attn:
      Gordon Pratt, Chief Executive Officer and President 

    Facsimile:
      (860) 674-1163

    

    9. MISCELLANEOUS.
      

     

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

     

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

     

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

     

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

     

    9.5 GOVERNING
      LAW; SUBMISSION TO JURISDICTION. This Purchase Option shall be governed by
      and
      construed and enforced in accordance with the laws of the State of New York,
      without giving effect to 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. 

    
       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

         

      

    

    9.6 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 or non-compliance. 

     

    9.7 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 Pali 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. 

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the 11th
      day of
      October 2007. 

     

    
      	 	 	 
	 	FMG
              ACQUISITION CORP. 
	 
 	 
 	 
 
	 	By:  	Larry
              G.
              Swets, Jr.
	 	
              

              Name:
                Larry G. Swets, Jr.

              Title:
                Executive
                Vice President

            

    

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    Form
      to
      be used to exercise Purchase Option:

     

    FMG
      Acquisition Corp.

    Four
      Forest Park

    Farmington,
      CT 06032

    Attn:
      Gordon Pratt, Chief Executive Officer and President 

    Facsimile:
      (860) 674-1163

     

    Date:_________________,
      20__ 

     

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

     

    or
      

     

    The
      undersigned hereby elects irrevocably to convert its right to purchase _________
      Units purchasable under the within Purchase Option by surrender of the
      unexercised portion of the attached Purchase Option (with a "Value" of $_______
      based on a "Market Price" of $_______). Please issue the securities comprising
      the Units as to which this Purchase Option is exercised in accordance with
      the
      instructions given below. 

     

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

    

    
      
        	 
	Signature(s)
                Guaranteed: 

      

    

     

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

     

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES 

     

    
      
        	Name  
	 
	 
	(Print
                in Block Letters)  
	 
	Address  
	 
	 

      

    

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    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 FMG Acquisition Corp. ("COMPANY") evidenced by
      the
      within Purchase Option and does hereby authorize the Company to transfer such
      right on the books of the Company. 

     

    Dated:___________________,
      20__ 

     

    
      	 
	Signature  

    

     

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

     

    
      
        	 
	Signature(s)
                Guaranteed:  

      

       

    

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

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