Document:

Exhibit
4.3.2

 

Private
and Co-Investment Warrants

 

SUBJECT TO THE TERMS SET FORTH HEREIN, THIS WARRANT
CERTIFICATE (I) CANNOT BE TRANSFERRED OR EXCHANGED UNTIL FIVE BUSINESS DAYS
AFTER THE EARLIER TO OCCUR OF THE EXPIRATION OF THE UNDERWRITER’S OVER-ALLOTMENT
OPTION TO PURCHASE UP TO 7,500,000 ADDITIONAL UNITS TO COVER OVER-ALLOTMENTS OR
THE EXERCISE IN FULL BY THE UNDERWRITER OF SUCH OPTION (THE “DETACHMENT DATE”)
UNLESS INCLUDED WITH A SHARE OF COMMON STOCK OF iSTAR ACQUISITION CORP. AS PART OF
A UNIT AND (II) CANNOT BE EXERCISED IN WHOLE OR IN PART UNTIL THE
LATER OF THE COMPANY’S CONSUMMATION OF ITS INITIAL BUSINESS COMBINATION (AS
DEFINED IN THE COMPANY’S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION AND                     ,
2009 [ONE YEAR AFTER THE DATE OF THE FINAL PROSPECTUS RELATING TO THE INITIAL
PUBLIC OFFERING OF THE UNITS].

 

The securities
represented by this Warrant Certificate (including the underlying common stock
issuable upon exercise of these Warrants) have not been registered under the
Securities Act of 1933, as amended, or the securities laws of any state or
other jurisdiction, and may not be transferred in violation of such act and
laws, or an exemption from registration therefrom.

 

The securities represented by this Warrant Certificate
(including the underlying common stock issuable upon exercise of these
Warrants) are subject to additional restrictions on transfer and other
agreements set forth in (I) the Letter Agreement, dated as of     ,
2008, as may be amended from time to time, by and among the holder, the Company
and Banc of America Securities LLC and (II) the Warrant Agreement, dated
as of     , 2008, as may be amended from time to time, by
and between the Company and the Warrant Agent. 
Copies of such agreements may be obtained by the holder hereof at the
Company’s principal place of business without charge.

 

EXERCISABLE ONLY IF COUNTERSIGNED BY THE
WARRANT

AGENT AS PROVIDED HEREIN.

 

Warrant Certificate evidencing

 

Warrants to Purchase Common Stock, par value
$0.0001 per share (the “Common Stock”), 

as described herein.

 

iSTAR ACQUISITION CORP.

 

	
  No.                     

  	
   

  	
  CUSIP
  No.                       

  

 

VOID AFTER 5:00 P.M., NEW YORK
CITY TIME, ON                       ,
2013 [FIVE YEARS AFTER THE DATE OF THE FINAL PROSPECTUS RELATING TO THE INITIAL
PUBLIC OFFERING OF THE UNITS], 

OR UPON EARLIER REDEMPTION

 

This certifies that                                             ,
or its registered assigns, is the registered holder of                                                                   
warrants to purchase certain securities (each a “Warrant”).  Each Warrant entitles the holder thereof,
subject to the provisions contained herein and in the Warrant Agreement (as defined
below), to purchase from iStar Acquisition Corp., a Delaware corporation (the “Company”),
one (1) share of the Company’s Common Stock (each a “Share”), at
the exercise price set

 

 

forth in the Warrant
Agreement.  The exercise price of each
Warrant (the “Exercise Price”) shall be $7.00 initially, subject to
adjustment as set forth in the Warrant Agreement.

 

Subject to the terms of the Warrant Agreement, each
Warrant evidenced hereby may be exercised in whole, but not in part, at any
time, as specified herein, on any Business Day (as defined below) occurring
during the period (the “Exercise Period”) commencing on the later of the
date of the consummation of the Company’s initial Business Combination (as such
term is defined in the Amended and Restated Certificate of Incorporation of the
Company) and                       ,
2009 [one year after the date of the final prospectus relating to the initial
public offering of the units] and ending at 5:00 P.M., New York City time,
on the earlier to occur of                       ,
2013 [five years after the date of the final prospectus relating to the initial
public offering of the units] or the Redemption Date (the “Expiration Date”).  Each Warrant remaining unexercised after 5:00 P.M.,
New York City time on the Expiration Date shall become void, and all rights of
the holder of this Warrant Certificate evidencing such Warrant shall cease.

 

The holder of the Warrants represented by this Warrant
Certificate may exercise any Warrant evidenced hereby by delivering, not later
than 5:00 P.M., New York City time, on any Business Day during the
Exercise Period (the “Exercise Date”) to Continental Stock Transfer &
Trust Company (the “Warrant Agent,” which term includes any successor
warrant agent under the Warrant Agreement) at its corporate trust department at
17 Battery Place, New York, NY 10004, (i) this Warrant Certificate, (ii) an
election to purchase (“Election to Purchase”), properly executed by the
holder hereof on the reverse of this Warrant Certificate (the “Participant”)
substantially in the form included on the reverse of hereof, as applicable and (iii) the
Exercise Price for each Warrant to be exercised in lawful money of the United
States of America by certified or official bank check or by bank wire transfer
in immediately available funds; provided, however, that so long as these Warrants are held by their
original purchaser or its Permitted Transferees (as defined in the Warrant
Agreement), the holder of this Warrant Certificate may, in lieu of payment of
the Exercise Price, surrender its Warrants 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 surrendered Warrants,
multiplied by the difference between the fair market value and the Exercise
Price by (y) the fair market value. 
In this context, 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
trading day prior to the date on which the Election to Purchase is sent to the
Warrant Agent.

 

These Warrants are not subject to redemption by the
Company.

 

If any of (a) this Warrant Certificate, (b) the
Election to Purchase, (c) the Exercise Price therefor or (d) surrendered
Warrants  is received by the Warrant Agent after
5:00 P.M., New York City time, the Warrants will be deemed to be received
and exercised on the Business Day next succeeding the date such items are
received and such date shall be the Exercise Date for purposes hereof.  If the date such items are received is not a
Business Day, the Warrants will be deemed to be received and exercised on the
next succeeding day which is a Business Day and such date shall be the Exercise
Date.  If the Warrants to be exercised
are received or deemed to be received after the Expiration Date, the exercise
thereof will be null and void and any funds delivered to the Warrant Agent will
be returned to the holder as soon as practicable.  In no event will interest accrue on funds
deposited with the Warrant Agent in respect of an exercise or attempted exercise
of Warrants.  The validity of any
exercise of Warrants will be determined by the Warrant Agent in its sole
discretion and such determination will be final and binding upon the holder of
the Warrants and the Company.  Neither
the Warrant Agent nor the Company shall have any obligation to inform a holder
of Warrants of the invalidity of any exercise of Warrants.

 

2

 

As used herein, the term “Business Day” means
any day that is not a Saturday or Sunday and is not a United States federal
holiday or a day on which banking institutions generally are authorized or
obligated by law or regulation to close in New York City.

 

Warrants may be exercised only in whole numbers of
Warrants.  No fractional shares of Common
Stock are to be issued upon the exercise of any Warrant, but rather the number
of shares of Common Stock to be issued shall be rounded up to the nearest whole
number.  If fewer than all of the
Warrants evidenced by this Warrant Certificate are exercised, a new Warrant
Certificate for the number of Warrants remaining unexercised shall be executed
by the Company and countersigned by the Warrant Agent as provided in Sections 2.1
and 2.2 of the Warrant Agreement, and delivered to the holder of this Warrant
Certificate at the address specified on the books of the Warrant Agent or as
otherwise specified by such Registered Holder.

 

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

 

This Warrant Certificate is issued under and in
accordance with the Warrant Agreement, dated as of                     ,
2008 (the “Warrant Agreement”), between the Company and the Warrant
Agent and is subject to the terms and provisions contained in the Warrant
Agreement, to all of which terms and provisions the holder of this Warrant
Certificate and the beneficial owners of the Warrants represented by this
Warrant Certificate consent by acceptance hereof.  Copies of the Warrant Agreement are on file
and can be inspected at the above-mentioned office of the Warrant Agent and at
the office of the Company at 1114 Avenue of the Americas, 39th Floor, New York,
New York  10036.

 

The accrual of dividends, if any, on the Shares issued
upon the valid exercise of any Warrant will be governed by the terms generally
applicable to such Shares.  From and
after the issuance of such Shares, the former holder of the Warrants exercised
will be entitled to the benefits generally available to other holders of Shares
and such former holder’s right to receive payments of dividends and any other
amounts payable in respect of the Shares shall be governed by, and shall be
subject to, the terms and provisions generally applicable to such Shares.

 

The Exercise Price, the trading price and the number
of Shares purchasable upon the exercise of each Warrant shall be subject to
adjustment as provided pursuant to Section 4 of the Warrant Agreement.

 

Prior to the Detachment Date, the Warrants represented
by this Warrant Certificate may be exchanged or transferred only together with
the Shares to which such Warrant is attached (together, a “Unit”), and
only for the purpose of effecting, or in conjunction with, an exchange or
transfer of such Unit.  Additionally,
prior to the Detachment Date, each transfer of such Unit on the register of the
Units shall operate also to transfer the Warrants included in such Units.  From and after the Detachment Date, the above
provisions shall be of no further force and effect.  Upon due presentment for registration of
transfer or exchange of this Warrant Certificate at the stock transfer division
of the Warrant Agent, the

 

3

 

Company shall execute,
and the Warrant Agent shall countersign and deliver, as provided in Section 5
of the Warrant Agreement, in the name of the designated transferee one or more
new Warrant Certificates of any authorized denomination evidencing in the
aggregate a like number of unexercised Warrants, subject to the limitations
provided in the Warrant Agreement.

 

Neither this Warrant Certificate nor the Warrants
evidenced hereby shall entitle the holder hereof or thereof to any of the
rights of a holder of the Shares, including, without limitation, the right to
receive dividends, if any, or payments upon the liquidation, dissolution or
winding up of the Company or to exercise voting rights, if any, until the
Warrants evidenced hereby are exercised.

 

The Warrant Agreement and this Warrant Certificate may
be amended as provided in the Warrant Agreement, including, under certain
circumstances described therein, without the consent of the holder of this
Warrant Certificate or the Warrants evidenced hereby.

 

THIS WARRANT CERTIFICATE AND ALL RIGHTS HEREUNDER
AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES
OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.

 

This Warrant Certificate shall not be entitled to any
benefit under the Warrant Agreement or be valid or obligatory for any purpose,
and no Warrant evidenced hereby may be exercised, unless this Warrant
Certificate has been countersigned by the manual or facsimile signature of the
Warrant Agent.

 

4

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed.

 

	
  Dated as of
                      ,
  2008

  	
   

  
	
   

  	
   

  
	
   

  	
  iSTAR
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer and Secretary

  
	
   

  
	
   

  
	
  CONTINENTAL
  STOCK TRANSFER & TRUST COMPANY,

  
	
  as Warrant Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  
					

 

5

 

[REVERSE]

 

Instructions for Exercise of
Warrant

 

To exercise the Warrants evidenced hereby, the holder
or Participant must, by 5:00 P.M., New York City time, on the specified
Exercise Date, deliver to the Warrant Agent at the office of the Warrant Agent,
or at the office of its successor as Warrant Agent, in the Borough of
Manhattan, City of New York, cash, a certified or official bank check or a wire
transfer in immediately available funds, in each case payable to the Warrant
Agent at Account No.           ,
in an amount equal to the Exercise Price in full for the Warrants exercised; provided, however, that
the holder of these Warrants may elect to, in lieu of payment of the Exercise
Price, surrender its Warrants 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 surrendered Warrants, multiplied by the
difference between the fair market value and the Exercise Price by (y) the
fair market value.  In addition, the
Warrant holder or Participant must provide the information required below and
deliver this Warrant Certificate to the Warrant Agent at the address set forth
below.  The Warrant Certificate and this
Election to Purchase must be received by the Warrant Agent by 5:00 P.M.,
New York time, on the specified Exercise Date.

 

ELECTION TO PURCHASE

TO BE EXECUTED IF WARRANT HOLDER DESIRES

TO EXERCISE THE WARRANTS EVIDENCED HEREBY

 

The undersigned hereby irrevocably elects to exercise,
on                     ,
                    
(the “Exercise Date”),                     
Warrants, evidenced by this Warrant Certificate, to purchase,                     
of the shares of Common Stock (each a “Share”) of iStar Acquisition Corp.,
a Delaware corporation (the “Company”), and represents that, on or
before the Exercise Date, such holder has tendered payment for such Shares by
cash, certified or official bank check or bank wire transfer in immediately
available funds to the order of the Company, c/o Continental Stock Transfer &
Trust Company, 17 Battery Place, New York, New York 10004, in the amount of $                    
in accordance with the terms hereof or, at the election of the holder, the
holder (in lieu of payment of the Exercise Price for the Warrants) has
surrendered Warrants 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 surrendered Warrants, multiplied by the difference
between the fair market value and the Exercise Price by (y) the fair
market value in accordance with the terms hereof.  The undersigned requests that said number of
Shares be in fully registered form, registered in such names and delivered, all
as specified in accordance with the instructions set forth below.

 

If said number of Shares is less than all of the
Shares purchasable hereunder, the undersigned requests that a new Warrant
Certificate evidencing the remaining balance of the Warrants evidenced hereby
be issued and delivered to the holder of the Warrant Certificate unless
otherwise specified in the instructions below.

 

6

 

	
  Dated: 

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
  (Please Print)

  
	
   

  	
   

  
	
  / / / /-/ / /-/
  / / / /

  	
   

  	
   

  
	
  (Insert Social
  Security or Other Identifying Number

  	
  Address

  	
   

  
	
  of Holder)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  	
   

  
											

 

This Warrant may only be exercised by presentation to the
Warrant Agent at one of the following locations:

 

By hand at:

 

By mail at:

 

The method of delivery of this Warrant Certificate is
at the option and risk of the exercising holder and the delivery of this
Warrant Certificate will be deemed to be made only when actually received by
the Warrant Agent.  If delivery is by
mail, registered mail with return receipt requested, properly insured, is
recommended.  In all cases, sufficient
time should be allowed to assure timely delivery.

 

(Instructions as to form and delivery of Shares and/or
Warrant Certificates)

 

	
  Name in which
  Shares are to be registered if other than in the name of the registered
  holder of this Warrant Certificate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address to which
  Shares are to be mailed if other than to the

  	
   

  	
   

  
	
  address of the
  registered holder of this Warrant Certificate as

  	
   

  	
   

  
	
  shown on the
  books of the Warrant Agent:

  	
   

  	
  (Street Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City and State)
  (Zip Code)

  
	
   

  	
   

  	
   

  
	
  Name in which
  Warrant Certificate evidencing unexercised

  	
   

  	
   

  
	
  Warrants, if
  any, are to be registered if other than in the name of

  	
   

  	
   

  
	
  the registered
  holder of this Warrant Certificate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address to which
  certificate representing unexercised Warrants, if 

  	
   

  	
   

  
	
  any, are to be
  mailed if other than to the address of the registered

  	
   

  	
   

  
	
  holder of this
  Warrant Certificate as shown on the books of the

  	
   

  	
   

  
	
  Warrant Agent:

  	
   

  	
  (Street Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City and State)
  (Zip Code)

  

 

7

 

	
   

  	
   

  	
  Dated:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  must conform in all respects to the name of the holder as specified on the
  face of this Warrant Certificate. If Shares, or a Warrant Certificate
  evidencing unexercised Warrants, are to be issued in a name other than that
  of the registered holder hereof or are to be delivered to an address other
  than the address of such holder as shown on the books of the Warrant Agent,
  the above signature must be guaranteed by an Eligible Guarantor Institution
  (as that term is defined in Rule 17Ad-15 of the Securities Exchange Act
  of 1934, as amended).

  

 

	
  SIGNATURE
  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  Name of Firm

  	
   

  	
   

  
	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  	
   

  
	
  Area Code and
  Number

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorized
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
  20

  	
   

  	
   

  
											

 

8

 

ASSIGNMENT

 

(FORM OF ASSIGNMENT TO BE EXECUTED
IF WARRANT HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

 

FOR VALUE RECEIVED,                                         
HEREBY SELL(S), ASSIGN(S) AND TRANSFER(S) UNTO                                                                                             

 

	
   

  	
   

  	
   

  
	
  (Please print
  name and address,

  	
   

  	
  (Please insert
  social security or

  
	
  including zip
  code of assignee)

  	
   

  	
  other
  identifying number of assignee)

  

 

the rights represented by the within Warrant
Certificate and does hereby irrevocably constitute and appoint                   
Attorney to transfer said Warrant Certificate on the books of the Warrant Agent
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
  (Signature
  must conform in all respects to the name of the holder as specified on the
  face of this Warrant Certificate and must bear a signature guarantee by an
  Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15
  of the Securities Exchange Act of 1934, as amended).

  

 

	
  SIGNATURE
  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  Name of Firm

  	
   

  	
   

  
	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  	
   

  
	
  Area Code and
  Number

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorized
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
  ,

  	
  20

  	
   

  	
   

  
												

 

9Exhibit
10.1

 

THIS WARRANT AGREEMENT is made as of     ,
2008, between iStar Acquisition Corp., a Delaware corporation, with offices at
1114 Avenue of the Americas, 39th Floor, New York, NY 10036 (the “Company”),
and Continental Stock Transfer & Trust Company, a New York
corporation, with offices at 17 Battery Place, New York, NY 10004 (the “Warrant
Agent”).

 

WHEREAS, in connection with the Company’s formation, the
Company issued 14,375,000 units the (“Initial Units”), each Initial Unit
consisting of one share of common stock of the Company, par value $0.0001 per
share (the “Common Stock”), and one warrant entitling the holder thereof
to purchase one share of Common Stock for $7.00, subject to adjustment as
described herein (such warrants, the “Initial Warrants”);

 

WHEREAS, the Company has filed a registration statement (as
amended, the “Registration Statement”), No. 333-147305, on Form S-1
under the Securities Act of 1933, as amended (the “Securities Act”) with
the Securities and Exchange Commission (the “Commission”) in connection
with an initial public offering (the “Initial Public Offering”) of
50,000,000 units of the Company (or up to 57,500,000 units if and to the extent
that the underwriters exercise their over-allotment option) (the “Public
Units”), each Public Unit consisting of one share of Common Stock and one
warrant entitling the holder thereof to purchase one share of Common Stock for
$7.00, subject to adjustment as described herein (such warrants, the “Public
Warrants”);

 

WHEREAS, immediately prior to the completion of the Initial
Public Offering, the Company shall sell and issue in a private placement to
iStar Financial Inc., Jay Sugarman and Jay Nydick an aggregate of 10,000,000
Warrants (the “Private Placement Warrants”), each such Private Placement
Warrant entitling the holder thereof to purchase one share of Common Stock for
$7.00, subject to adjustment as described herein;

 

WHEREAS, immediately prior to the completion of the Initial
Public Offering, the Company shall sell and issue in a private placement to
iStar Financial Inc. an aggregate of 2,500,000 units (the “Private Placement
Units”), each Private Placement Unit consisting of one share of Common
Stock and one warrant entitling the holder thereof to purchase one share of
Common Stock for $7.00, subject to adjustment as described herein (such
warrants, the “Private Placement Unit Component Warrants”);

 

WHEREAS, immediately prior to the consummation of the Company’s
Business Combination (as defined below), iStar Financial Inc. may purchase from
the Company up to $25,000,000 of the Company’s units (the “Co-Investment
Units”) at a price of $10.00 per Co-Investment Unit (to the extent such
funds have not previously been used to make open market purchases of Common
Stock pursuant to an agreement to be entered into by and among iStar Financial
Inc., the Company and Banc of America Securities LLC), each such Co-Investment
Unit consisting of one share of Common Stock and one warrant entitling the
holder thereof to purchase one share of Common Stock for $7.00, subject to
adjustment as described herein (such warrants, the “Co-Investment Warrants,”
and together with the Initial Warrants, the Private Placement Warrants and the
Private Placement Unit Component Warrants, the “Private Warrants”);

 

WHEREAS, the Initial Warrants, the Public Warrants, the
Private Placement Warrants, the Private Placement Unit Component Warrants and
the Co-Investment Warrants are collectively referred to herein as the “Warrants”;

 

 

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,
exercise and cancellation of the Warrants;

 

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

 

WHEREAS, all acts and things have been done and performed
which are necessary to make the Warrants, when executed on behalf of the
Company and countersigned by or on behalf of the Warrant Agent, as provided
herein, the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this 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 with respect to 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. 
The Public Warrants shall be issued in registered form in substantially
the form of Exhibit A hereto, the Initial Warrants shall be issued
in registered form in substantially the form of Exhibit B hereto
and the Private Placement Warrants, the Private Placement Unit Component
Warrants and the Co-Investment Warrants shall be issued in registered form in
substantially the form of Exhibit C  hereto,
the provisions of which exhibits are incorporated herein.  Each Warrant shall be signed by, or bear the
facsimile signature of, (i) the Chairman of the Board of Directors, the
President, the Chief Executive Officer or any Vice President of the Company and
(ii) the Treasurer or an Assistant Treasurer or the Secretary or an
Assistant Secretary of the Company.  In
the event the person whose facsimile signature has been placed upon any Warrant
shall have ceased to serve in the capacity in which such person signed the
Warrant before such Warrant is issued, it may be issued with the same effect as
if he or she had not ceased to be such at the date of issuance.  All of the Public Warrants shall initially be
represented by one or more book-entry certificates (each a “Book-Entry
Warrant Certificate”).

 

2.2                                 Effect of Countersignature. 
Unless and until countersigned by the Warrant Agent pursuant to this
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 transfers of the Warrants.  Upon the initial issuance of the Warrants,
the Warrant Agent shall issue and register such 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.  All of the Public Warrants shall initially be
represented by one or more Book-Entry Warrant Certificates deposited with the
Depository Trust Company (the “Depository”) and registered in the name
of Cede & Co., a nominee of the Depository.  Ownership of beneficial interests in the
Public Warrants shall be shown on, and the transfer of such ownership shall be
effected through, records maintained by (i) the Depository or its nominee
for each Book-Entry Warrant Certificate, or (ii) institutions that 

 

2

 

have accounts with the
Depository (such institution, with respect to a Public Warrant in its account,
a “Participant”).

 

If the Depository subsequently ceases to make its book-entry
settlement system available for the Public Warrants, the Company may instruct
the Warrant Agent regarding making other arrangements for book-entry
settlement.  In the event that the Public
Warrants are not eligible for, or it is no longer necessary to have the Public
Warrants available in, book-entry form, the Warrant Agent shall provide written
instructions to the Depository to deliver to the Warrant Agent for cancellation
each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant
Agent to deliver to the Depository definitive certificates in physical form
evidencing such Warrants (“Definitive Warrant Certificates”).

 

2.3.2                        Beneficial Owner; Registered Holder. 
The term “beneficial owner” shall mean, on or after the
Detachment Date (as defined below), any person in whose name ownership of a
beneficial interest in the Public Warrants evidenced by a Book-Entry Warrant
Certificate is recorded in the records maintained by the Depository or its
nominee, and prior to the Detachment Date, the person in whose name the Public
Unit of which such Public Warrant or part thereof was originally part of, as
registered upon the register relating to such Public Units.  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 (a “Registered Holder”) as the absolute owner of such Warrant
(notwithstanding any notation of ownership or other writing on the Warrant
Certificate made by anyone other than the Company or the Warrant Agent), for
the purpose of any exercise thereof, and for all other purposes, and neither
the Company nor the Warrant Agent shall be affected by any notice to the
contrary.

 

2.4                                 Detachability of Warrants.

 

2.4.1                        Public Units.  The
securities comprising the Public Units will not be separately transferable
until five Business Days (or as soon as practicable thereafter) following the
earlier to occur of (a) the expiration or termination of the underwriters’
over-allotment option or (b) the exercise in full by the underwriters of
such option (the “Detachment Date”), subject in each case to the Company
having filed a Current Report on Form 8-K with the Commission containing
an audited balance sheet reflecting the receipt by the Company of the gross
proceeds of the Initial Public Offering, including the proceeds received by the
Company from the exercise of the underwriters’ over-allotment option, and
having issued a press release announcing when the separate trading of such
securities will begin.  For purposes of
this Agreement, “Business Day” shall mean any day that is not a Saturday
or Sunday and is not a United States federal holiday or a day on which banking
institutions generally are authorized or obligated by law or regulation to
close in New York City.

 

2.4.1                        Private Warrants.  The
securities comprising the Private Warrants will be separately transferable at
any time, subject to the transfer restrictions described in Section 5.

 

3.                                       Terms and Exercise of Warrants.

 

3.1                                 Exercise Price. 
Each Warrant shall, when countersigned by the Warrant Agent, entitle the
Registered Holder thereof, subject to the provisions of such Warrant
and this Agreement, to purchase from the Company the number of shares of
Common Stock stated therein, at the price of $7.00 per whole share, subject to
the adjustments provided in Section 4 hereof and in the last sentence of
this Section 3.1.  The term “Exercise
Price” as used in this Agreement refers to the price per share at which
Common Stock 

 

3

 

may be purchased at the
time a Warrant is exercised.  The Company
in its sole discretion may lower the Exercise Price at any time prior to the Expiration
Date (as defined below); provided, however, that any change in the Exercise Price must apply
equally to all of the Warrants, and provided, further,
that any reduction in the Exercise Price must remain in effect for at least 20
Business Days.

 

3.2                                 Duration of Warrants. 
The Warrants may be exercised only during the periods indicated below
(the “Exercise Period”):

 

(i)                                     The Initial Warrants may only be
exercised on a Business Day occurring after the last sale price of the Company’s
Common Stock as reported on the American Stock Exchange LLC (“AMEX”), or
any other principal stock exchange or automated quotation system on which the
Common Stock is traded or quoted, equals or exceeds $13.75 per share, as such
price may be adjusted pursuant to Section 4.3 (the “Floor Price”),
for any 20 trading days within any 30 trading day period beginning on or after
the date of the Company’s consummation of the Business Combination.

 

(ii)                                  The Public Warrants, the Private
Placement Warrants, the Private Placement Unit Component Warrants and the
Co-Investment Warrants may only be exercised on a Business Day occurring on or
after the later of the consummation of the Business Combination by the Company
and the first anniversary of the date of the final prospectus that forms a part
of the Registration Statement.

 

“Business Combination” means the Company’s initial
business combination, through a merger, capital stock exchange, stock purchase,
asset acquisition, or other similar business combination with one or more
operating businesses meeting the conditions described in the Registration
Statement and the Company’s amended and restated certificate of incorporation,
as the same may be amended from time to time.

 

The Exercise Period will terminate at 5:00 P.M.,
New York City time on the earlier to occur of (i) the fifth anniversary of
the date of the final prospectus that forms a part of the Registration
Statement and (ii) the date fixed for redemption of the Warrants as
provided in Section 6 of this Agreement (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.  Should the Company wish to extend the
Expiration Date of the Warrants, the Company shall provide advance notice to
the AMEX or any stock exchange on which the Warrants are listed in accordance
with the applicable requirements of such exchange.

 

3.3                                 Terms and Exercise of Warrants.

 

3.3.1                        Method of Exercise.  A Registered
Holder may exercise a Warrant by delivering, not later than 5:00 P.M., New
York City time, on any Business Day during the Exercise Period (the “Exercise
Date”) to the Warrant Agent at its corporate trust department (i) the
Definitive Warrant Certificate evidencing the Warrants to be exercised, or, in
the case of a Book-Entry Warrant Certificate, the Warrants to be exercised (the
“Book-Entry Warrants”) on the records of the Depository to an account of
the Warrant Agent at the Depository designated for such purpose in writing by
the Warrant Agent to the Depository from time to time, (ii) an election to
purchase (“Election to Purchase”) any shares of Common Stock pursuant to
the exercise of a Warrant, properly completed and executed by the Registered
Holder on the reverse of the Definitive Warrant Certificate or, in the case of
a Book-Entry Warrant Certificate, properly delivered by the 

 

4

 

Participant in accordance
with the Depository’s procedures, and (iii) the Exercise Price for each
Warrant to be exercised and all applicable taxes due in connection with the
exercise of the Warrants, in lawful money of the United States of America; provided, however, that (1) holders
of Public Warrants who exercise Public Warrants on an Exercise Date occurring
after the date of a Redemption Notice and prior to the date fixed for
redemption of the Public Warrants shall, if the Company so requires, pay the
Exercise Price by surrendering such Public Warrants 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 surrendered Public
Warrants, multiplied by the difference between the Redemption Fair Market Value
and the Exercise Price of the Public Warrants by (y) the Redemption Fair
Market Value and (2) with respect to the Private Warrants, so long as the
Private Warrants are held by their original purchaser or its Permitted
Transferees (defined below), any holder of Private Warrants may, in lieu of
payment of the Exercise Price, surrender its Private Warrants 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 surrendered
Private Warrants, multiplied by the difference between the Fair Market Value
(defined below) and the Exercise Price by (y) the Fair Market Value.  For avoidance of doubt, in no event may a
Registered Holder expect or compel the Company to deliver any consideration
under a Warrant other than shares of Common Stock as described immediately
above. “Fair Market Value” shall mean the average reported last sale
price of the Common Stock for the 10 trading days ending on the third trading
day prior to the date on which the Election to Purchase by a holder of Private
Warrants is sent to the Warrant Agent.   “Redemption
Fair Market Value” shall mean the average reported last sale price of the
Common Stock for the 10 trading days ending on the third trading day prior to
the date on which the notice of redemption is sent to the Registered Holders of
such Public Warrants.  “Permitted
Transferees” shall mean (i) immediate family members of the Registered
Holder, (ii) affiliates of the Registered Holder, (iii) current and
former directors, officers and employees of the Registered Holder, (iv) any
charitable organizations, (v) trusts, the beneficiary of which is a member
of the Registered Holder’s immediate family, (vi) any individual by virtue
of the laws of descent and distribution upon the death of the Registered
Holder, (vii) officers or directors of the Company, (viii) any
individual pursuant to a qualified domestic relations order or (ix) corporations,
partnerships, limited liability companies or other organizations, in the
event of a merger, capital stock exchange, stock purchase, asset acquisition or
other similar transaction which results in all the Company’s stockholders
having the right to exchange their shares of Common Stock for cash, securities
or other property subsequent to the Company’s consummating a Business
Combination with an acquisition target.

 

If any of (A) the Definitive Warrant Certificate
or the Book-Entry Warrant Certificate, (B) the Election to Purchase, (C) the
Exercise Price therefor or (D) surrendered Warrants is received by the
Warrant Agent after 5:00 P.M., New York City time, on the specified
Exercise Date, the Warrants will be deemed to be received and exercised on the
Business Day next succeeding the Exercise Date. 
If the date specified as the Exercise Date is not a Business Day, the
Warrants will be deemed to be received and exercised on the next succeeding day
that is a Business Day.  If the Warrants
are received or deemed to be received after the Expiration Date, the exercise
thereof will be null and void and any funds delivered to the Warrant Agent will
be returned to the Registered Holder or Participant, as the case may be, as
soon as practicable.  In no event will
interest accrue on funds deposited with the Warrant Agent in respect of an
exercise or attempted exercise of Warrants. 
The validity of any exercise of Warrants will be determined by the
Company in its sole discretion and such determination will be final and binding
upon the Registered Holder and the Warrant Agent.  Neither the Company nor the Warrant Agent
shall have any obligation to inform a Registered Holder of the invalidity of
any exercise of Warrants.

 

5

 

The Warrant Agent shall deposit all funds received by
it in payment of the Exercise Price in the account of the Company maintained
with the Warrant Agent for such purpose and shall advise the Company at the end
of each day on which funds for the exercise of the Warrants are received of the
amount so deposited to its account.  The
Warrant Agent shall promptly confirm such telephonic advice to the Company in
writing.

 

The Warrant Agent shall, by 11:00 A.M., New York
City time, on the Business Day following the Exercise Date of any Warrant,
advise the Company and the transfer agent and registrar in respect of (a) the
shares of Common Stock issuable upon such exercise in accordance with the terms
and conditions of this Agreement, (b) the instructions of each Registered
Holder or Participant, as the case may be, with respect to delivery of the shares
of Common Stock issuable upon such exercise, and the delivery of Definitive
Warrant Certificates, as appropriate, evidencing the balance, if any, of the
Warrants remaining after such exercise, (c) in case of a Book-Entry
Warrant Certificate, the notation that shall be made to the records maintained
by the Depository, its nominee for each Book-Entry Warrant Certificate, or a
Participant, as appropriate, evidencing the balance, if any, of the Warrants
remaining after such exercise and (d) such other information as the
Company or such transfer agent and registrar shall reasonably require.

 

The Company shall, by 5:00 P.M., New York City
time, on the third Business Day next succeeding the Exercise Date of any
Warrant and the clearance of the funds in payment of the Exercise Price,
execute, issue and deliver to the Warrant Agent, the shares of Common Stock to
which such Registered Holder or Participant, as the case may be, is entitled,
in fully registered form, registered in such name or names as may be directed
by such Registered Holder or the Participant, as the case may be.  Upon receipt of such shares of Common Stock,
the Warrant Agent shall, by 5:00 P.M., New York City time, on the fifth
Business Day next succeeding such Exercise Date, transmit such shares of Common
Stock to or upon the order of the Registered Holder or Participant, as the case
may be.

 

In lieu of delivering physical certificates
representing the shares of Common Stock issuable upon exercise, provided the
Company’s transfer agent is participating in the Depository Fast Automated
Securities Transfer program, the Company shall use its reasonable efforts to
cause its transfer agent to electronically transmit the shares of Common Stock
issuable upon exercise to the Registered Holder or the Participant by crediting
the account of the Registered Holder’s prime broker with the Depository or of
the Participant through its Deposit Withdrawal Agent Commission system.  The time periods for delivery described in
the immediately preceding paragraph shall apply to the electronic transmittals
described herein.

 

The accrual of dividends, if any, on the shares of
Common Stock issued upon the valid exercise of any Warrant will be governed by
the terms generally applicable to such shares of Common Stock.  Starting with the Exercise Date, the former
holder of the Warrants exercised will be entitled to the benefits generally
available to other holders of shares of Common Stock and such former holder’s
right to receive payments of dividends and any other amounts payable in respect
of the shares of Common Stock shall be governed by, and shall be subject to,
the terms and provisions generally applicable to such shares of Common Stock.

 

Warrants may be exercised only in whole numbers of
shares of Common Stock.  No fractional
shares of Common Stock are to be issued upon the exercise of the Warrant, but
rather the number of shares of Common Stock to be issued shall be rounded up to
the nearest whole number.  If fewer than
all of the Warrants evidenced by a Warrant Certificate are exercised, a new
Warrant Certificate for the number of unexercised Warrants remaining shall be
executed by the Company and countersigned by the Warrant Agent as provided in Section 2.1
of this 

 

6

 

Agreement, and delivered
to the holder of this Warrant Certificate at the address specified on the books
of the Warrant Agent or as otherwise specified by such Registered Holder.  If fewer than all the Warrants evidenced by a
Book-Entry Warrant Certificate are exercised, a notation shall be made to the
records maintained by the Depository, its nominee for each Book-Entry Warrant
Certificate, or a Participant, as appropriate, evidencing the balance of the
Warrants remaining after such exercise.

 

The Company shall not be required to pay any stamp or
other tax or governmental charge required to be paid in connection with any
transfer involved in the issue of the shares of Common Stock upon the exercise
of Warrants; and in the event that any such transfer is involved, the Company
shall not be required to issue or deliver any shares of Common Stock until such
tax or other charge shall have been paid or it has been established to the
Company’s satisfaction that no such tax or other charge is due.

 

3.3.2.                     Payment.  Subject to
the provisions of the Warrant (including, but not limited to, the cashless
exercise provisions applicable to the Warrants) and this Agreement, a Warrant,
when countersigned by the Warrant Agent, may be exercised by the Registered
Holder thereof by surrendering it, at the office of the Warrant Agent, or at
the office of its successor as Warrant Agent, in the Borough of Manhattan, City
and State of New York, with the subscription form, as set forth in the Warrant,
duly executed, and by paying in full, in lawful money of the United States, in
cash, good certified check or good bank draft payable to the order of the
Company (or as otherwise agreed to by the Company), the Exercise Price for each
whole share of Common Stock as to which the Warrant is exercised and any and
all applicable taxes due in connection with the exercise of the Warrant, the
exchange of the Warrant for the Common Stock, and the issuance of the Common
Stock.

 

3.3.3.                     Issuance of Certificates. 
As soon as practicable after the exercise of any Warrant and the
clearance of the funds in payment of the Exercise Price, the Company shall
issue to the Registered Holder of such Warrant a certificate or certificates
for the number of full shares of Common Stock to which he is entitled, registered
in such name or names as may be directed by him, her or it, and if such Warrant
shall not have been exercised in full, a new countersigned Warrant for the
number of shares as to which such Warrant shall not have been exercised.  Notwithstanding the foregoing and subject to Section 7.4
of this Agreement, the Company shall not be obligated to deliver any shares of
Common Stock and shall have no obligation to settle the Warrant exercise unless
a registration statement under the Securities Act relating to the shares of
Common Stock issuable upon exercise of the Warrants is effective and a current
prospectus is on file with the Commission and available for use or, in the
opinion of counsel to the Company, the issuance of the Common Stock upon the
exercise of the Warrants is exempt from the registration requirements of the
Securities Act and such securities are qualified for sale or exempt from
qualification under applicable securities laws of the states or other
jurisdictions in which the Registered Holder resides.  Notwithstanding anything to the contrary in
this Agreement, and other than with respect to the cashless exercise provisions
applicable to the Warrants, under no circumstances will the Company be required
to net cash settle the Warrant exercise. 
Warrants may not be exercised by, or shares of Common Stock issued to,
any Registered Holder in any state in which such exercise or issuance would be
unlawful.  For the avoidance of doubt, as
a result of this Section 3.3.3, any or all of the Warrants may expire
unexercised.

 

In no event shall the registered Holder of a Warrant
be entitled to receive any monetary damages if the Common Stock underlying the
Warrants have not been registered by the Company pursuant to an effective
registration statement or if a current prospectus is not available for delivery
by the Warrant Agent, provided the Company has fulfilled its obligation to use
its 

 

7

 

reasonable efforts to
effect such registration and ensure a current prospectus is available for
delivery by the Warrant Agent.

 

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

 

3.5                                 Date of Issuance. 
Each person in whose name any such certificate for shares of Common
Stock is issued shall for all purposes be deemed to have become the holder of
record of such shares on the date on which the Warrant was surrendered and
payment of the Exercise 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 4.7,
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                                 Extraordinary Dividend. 
If the Company, at any time during the Exercise Period, 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 into
which the Warrants are convertible), other than (a) as described in
Sections 4.1, 4.3 or 4.5, (b) regular quarterly or other periodic
dividends, (c) in connection with the conversion rights of the holders of
Common Stock upon consummation by the Company of a Business Combination, or (d) 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 and the Floor 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 (or other shares of the Company’s capital stock, into which the
Warrants are convertible) in respect of such Extraordinary Dividend.

 

4.3                                 Aggregation of Shares. 
If after the date hereof, and subject to the provisions of Section 4.7,
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.

 

4.4                                 Adjustments in Exercise Price and Floor
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 4.3 above, each of the Exercise Price and the Floor Price shall be adjusted
(to the nearest cent) by multiplying such Exercise Price and Floor Price, as
the case may be, immediately prior to such adjustment by a fraction (a) 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 (b) the
denominator of which shall be the number of shares of Common Stock so
purchasable immediately thereafter; provided, 

 

8

 

that, with respect to any
adjustments occurring prior to the completion of the Initial Public Offering,
the Company may determine not to adjust the Exercise Price and the Floor Price.

 

4.5                                 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 4.3 hereof or that solely affects the par value
of such shares of Common Stock), or in the case of any merger or consolidation
of the Company with or into another corporation (other than a consolidation or
merger in which the Company is the continuing corporation and that does not
result in any reclassification or reorganization of the outstanding shares of
Common Stock), or in the case of any sale or conveyance to another corporation
or entity of the assets or other property of the Company as an entirety or substantially
as an entirety in connection with which the Company is dissolved, the
Registered 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, by
a Registered Holder of the number of shares of Common Stock of the Company
obtainable upon exercise of the Warrants 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 4.3, then such adjustment shall be made pursuant
to Sections 4.1, 4.3, 4.4 and this Section 4.5.  The provisions of this Section 4.5 shall
similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

 

4.6                                 Notices of Changes in Warrant. 
Upon every adjustment of the Exercise Price, Floor Price or the number
of shares issuable upon exercise of a Warrant, the Company shall give written
notice thereof to the Warrant Agent, which notice shall state the Exercise
Price or Floor 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, 4.4 or 4.5, then, in any such event, the Company
shall give written notice to each Registered 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.

 

4.7                                 No Fractional Shares. 
Notwithstanding any provision contained in this 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 or by reason of any cashless exercise
pursuant to Sections 3.3.1 or 6.1, the Registered Holder 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 Registered Holder.

 

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 Exercise 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.

 

 

9

 

5.                                       Transfer and Exchange of Warrants.

 

5.1                                 Transfer of Warrants.

 

(a)                                  Prior to the Detachment Date, the Public
Warrants may be transferred or exchanged only as part of the Public Units in
which such Warrants are included, and only for the purpose of effecting, or in
conjunction with, a transfer or exchange of such Public Unit.  For the avoidance of doubt, each transfer of
a Public Unit on the register relating to such Public Units shall operate also
to transfer the Warrants included in such Public Unit;

 

(b)                                 the Initial Warrants and the
Co-Investment Warrants (and the Common Stock issuable upon exercise of such
Warrants) may not be transferred, assigned or sold, other than to a Permitted
Transferee, until one year after the consummation by the Company of a Business
Combination, unless, in the case of the Initial Warrants, subsequent to the
consummation by the Company of a Business Combination, (i) the closing
price of the Common Stock equals or exceeds the Floor Price for any 20 trading
days within a 30 trading day period or (ii) the Company consummates a
subsequent merger, stock exchange or other similar transaction which results in
all of the Company’s stockholders having the right to exchange their shares of
Common Stock for cash, securities or other property; and

 

(c)                                  the Private Placement Warrants and the
Private Placement Unit Component Warrants (and the Common Stock issuable upon
exercise of such Warrants) may not be transferred, assigned or sold, other than
to a Permitted Transferee, until after the consummation by the Company of a
Business Combination.

 

5.2                                 Registration of Transfer. 
Subject to Section 5.3 below, the Warrant Agent shall register the
transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with
signatures properly guaranteed and accompanied by appropriate instructions for
transfer.  Upon any such transfer, a new
Warrant representing an equal aggregate number of Warrants shall be issued and
the old Warrant shall be cancelled by the Warrant Agent.  The Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon request.

 

5.3                                 Procedure for Surrender of Warrants.  Warrants may be surrendered to the Warrant
Agent, together with a written request for exchange or transfer, and thereupon
the Warrant Agent shall issue in exchange therefor one or more new Warrants as
requested by the Registered Holder of the Warrants so surrendered, representing
an equal aggregate number of Warrants; provided, however, that except as otherwise provided herein or in any
Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be
transferred only in whole and only to the Depository, to another nominee of the
Depository, to a successor depository, or to a nominee of a successor
depository; provided further, however,
that in the event that a Warrant surrendered for transfer bears a restrictive
legend, the Warrant Agent shall not cancel such Warrant and issue new Warrants
in exchange therefor until the Warrant Agent has received an opinion of counsel
for the Company stating that such transfer may be made and indicating whether
the new Warrants must also bear a restrictive legend.  Upon any such registration of transfer, the
Company shall execute, and the Warrant Agent shall countersign and deliver, in
the name of the designated transferee a new Warrant Certificate or Warrant
Certificates of any authorized denomination evidencing in the aggregate a like
number of unexercised Warrants.

 

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

 

10

 

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

 

5.6                                 Warrant Execution and Countersignature. 
The Warrant Agent is hereby authorized to countersign and to deliver, in
accordance with the terms of this Agreement, the Warrants required to be issued
pursuant to the provisions of this Section 5, and the Company, whenever
required by the Warrant Agent, shall supply the Warrant Agent with Warrants
duly executed on behalf of the Company for such purpose.

 

6.                                       Redemption.

 

6.1                                 Redemption.

 

(a)                                  Subject to Section 6.4 hereof, not
less than all of the outstanding Public Warrants may be redeemed at the option
of the Company, at any time after they become exercisable and prior to their
expiration, at the office of the Warrant Agent, upon the notice referred to in Section 6.2,
at the price of $0.01 per Warrant (the “Redemption Price”), provided that the last sale price of the Common Stock on the
AMEX, or any other principal stock exchange or automated quotation system on
which the Common Stock may be traded or quoted, equals or exceeds the Floor
Price (subject to proportionate adjustment to reflect adjustment to the
Exercise Price as provided in Section 4.4) for any 20 trading days within
a 30 trading day period ending three Business Days prior to the date on which
notice of redemption is given, and a registration statement under the
Securities Act relating to shares of Common Stock issuable upon exercise of the
Public Warrants is effective and expected to remain effective to and including
the Redemption Date (as defined below) and a prospectus relating to the shares
of Common Stock issuable upon exercise of the Public Warrants is filed and
available for use to and including the Redemption Date.

 

(b)                                 The Private Warrants shall not be subject
to redemption by the Company.

 

6.2                                 Date Fixed for, and Notice of, Redemption. 
In the event the Company shall elect to redeem all of the outstanding
Public Warrants, the Company shall fix a date for the redemption, which date
shall be prior to the expiration of the Warrants (the “Redemption Date”).  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 Public Warrants at
their last addresses as they shall appear in the Warrant Register (the “Redemption
Notice”).  Any notice mailed in the
manner herein provided shall be conclusively presumed to have been duly given
on the date sent whether or not the Registered Holder received such notice.

 

6.3                                 Exercise After Notice of Redemption. 
The Public Warrants may be exercised for cash or, if required by the
Company, on a cashless basis, in accordance with Section 3.3.1 of this
Agreement at any time after the Redemption Notice 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 Registered Holder of the Public Warrants shall have no
further rights except to receive, upon surrender of the Public Warrants, the
Redemption Price.

 

6.4                                 Outstanding Warrants Only. 
The Company understands that the redemption rights provided for by this Section 6
apply only to outstanding Public Warrants. 
To the extent a person holds rights to purchase Public Warrants, such
purchase rights shall not be extinguished by redemption.  However, once such purchase rights are
exercised, the Company may redeem the Public Warrants issued 

 

11

 

upon such exercise, provided that the criteria for redemption are met, including
the opportunity of the Public Warrant holders to exercise prior to redemption
pursuant to Section 3.3.1.

 

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 for 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 that will be sufficient to
permit the exercise in full of all outstanding Warrants issued pursuant to this
Agreement.

 

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

 

7.5                                 Delivery of Prospectus or Notice. 
Upon the exercise of any Warrant, if the Company requests, the Warrant
Agent shall deliver to the Holder of such Warrant, prior to or concurrently
with the delivery of the shares of Common Stock issued upon such exercise, in
accordance with the Company’s request, either (a) a prospectus relating to
the shares of Common Stock deliverable upon exercise of Warrants and complying
in all material respects with the Securities Act, or (ii) the notice
referred to in Rule 173 under the Securities Act.

 

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 

 

12

 

delivery of shares of
Common Stock upon the exercise of the Warrants, but the Company shall not be
obligated to pay any transfer taxes in respect of the Warrants or such shares
of Common Stock.

 

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

 

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

 

8.2.3                        Merger or Consolidation of Warrant Agent. 
Any corporation or other entity 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 Agreement without any further act.

 

8.3                                 Fees and Expenses of Warrant Agent.

 

8.3.1                        Remuneration.  The Company
agrees to pay the Warrant Agent reasonable remuneration for its services as
Warrant Agent hereunder and shall reimburse the Warrant Agent upon written
demand for all reasonable 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 acts, instruments, and
assurances as may reasonably be required by the Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

 

13

 

8.4                                 Liability of Warrant Agent.

 

8.4.1                        Reliance on Company Statement. 
Whenever in the performance of its duties under this 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, President or
Chairman of the Board of the Company and delivered to the Warrant Agent.  The Warrant Agent may rely upon such
statement for any action taken or suffered in good faith by it pursuant to the
provisions of this Agreement.

 

8.4.2                        Indemnity.

 

(i)                                     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 Agreement except as a result of the
Warrant Agent’s negligence, willful misconduct, or bad faith.

 

(ii)                                  In case any action arising out of this
Agreement is brought against the Warrant Agent, the Company will be entitled to
participate therein and, to the extent that it may wish, to assume the defense
thereof, and after notice from the Company to the Warrant Agent of its election
so to assume the defense, the Company will not be liable to the Warrant Agent
under this Section 8.4.2(ii) for any legal or other expenses
subsequently incurred by the Warrant Agent in connection with the defense
thereof.  The Warrant Agent shall not,
without the prior written consent of the Company, effect any settlement of any
pending or threatened action hereunder.

 

8.4.3                        Exclusions.  The Warrant
Agent shall have no responsibility with respect to the validity of this
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 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
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
Agreement and agrees to perform the same upon the terms and conditions herein set
forth and among other things, shall account promptly to the Company with
respect to Warrants exercised and concurrently account for, and pay to the
Company, all moneys received by the Warrant Agent for the purchase of shares of
the Company’s Common Stock through the exercise of Warrants.

 

8.6                                 Waiver.  The Warrant
Agent hereby waives any and all right, or set-off of any and all 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, to be entered into 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 funds in the Trust Account
for any reason whatsoever including, without limitation, pursuant to Section 8.4.2.

 

14

 

9.                                       Miscellaneous Provisions.

 

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

 

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

 

iStar Acquisition Corp.

1114 Avenue of the Americas, 39th Floor

New York, NY 10036

Attn:  Jay Nydick, Chief Executive
Officer and President

 

with a copy in each case to:

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Attn:  Kathleen L. Werner, Esq.

 

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

 

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Compliance Department

 

9.3                                 Applicable Law. 
The validity, interpretation, and performance of this Agreement and of
the Warrants shall be governed in all respects by the laws of the State of New
York applicable to contracts formed and to be performed entirely within the
State of New York, without giving effect to conflict of law provisions thereof
to the extent such principles or rules would require or permit the
application of the laws of another jurisdiction.  Each of the Company and the Warrant Agent
hereby agrees that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the
courts of the State of New York or the United States District Court for the
Southern District of New York.  The
Company and the Warrant Agent hereby waive any objections to such non-exclusive
jurisdiction and that such courts represent an inconvenience forum.  Any such process or summons to be served upon
the Company or the Warrant Agent may be served by transmitting a copy thereof
by registered or certified mail, return receipt requested, postage prepaid,
addressed to it at the address set forth in Section 9.2 hereof.  Such mailing shall be deemed personal service
and shall be legal and binding upon the Company or the Warrant Agent in any
action, proceeding or claim; provided, that,
such service shall not preclude any other manner of service permitted by law.

 

15

 

9.4                                 Amendment.  This
Agreement and the Warrant Certificate issued hereunder may be amended by the
parties hereto without the consent of any Registered Holder or any underwriter
for the purpose of curing any ambiguity, or curing, correcting or supplementing
any defective provision contained herein or adding or changing any other
provisions with respect to matters or questions arising under this Agreement as
the parties may deem necessary or desirable and that the parties deem shall not
adversely affect the interest of the Registered Holders.  All other modifications or amendments,
including any amendment to increase the Exercise Price or shorten the Exercise
Period, shall require the written consent of the Registered Holders of a
majority of the then outstanding Warrants and no modification or amendment
shall affect the Initial Warrants, the Public Warrants, the Private Placement
Warrants, the Private Placement Unit Component Warrants and the Co-Investment
Warrants differently from one another. 
Notwithstanding the foregoing, the Company may lower the Exercise Price
or extend the duration of the Exercise Period in accordance with Sections 3.1
and 3.2 hereof, without such consent.

 

9.5                                 Persons Having Rights under this
Agreement.  Nothing in this Agreement expressed and
nothing that may be implied from any of the provisions hereof is intended, or
shall be construed, to confer upon, or give to, any person or corporation other
than the parties hereto and the Registered Holders and, for the purposes of
Sections 6.4 and 7.4 hereof, the underwriters, any right, remedy, or claim
under or by reason of this Agreement or of any covenant, condition,
stipulation, promise, or agreement hereof. 
The underwriters shall be deemed to be third-party beneficiaries of this
Agreement with respect to Sections 6.4 and 7.4 hereof.  All covenants, conditions, stipulations,
promises, and agreements contained in this Agreement shall be for the sole and
exclusive benefit of the parties hereto (and the underwriters with respect to
Sections 6.4 and 7.4 hereof) and their successors and assigns and of the
Registered Holders of the Warrants.

 

9.6                                 Examination of the 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.

 

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

 

9.8                                 Effect of Headings. 
The Section headings herein are for convenience only and are not
part of this Agreement and shall not affect the interpretation thereof.

 

[Remainder of page intentionally left blank]

 

16

 

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

 

	
  Attest:

  	
  iSTAR
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Jay Nydick

  
	
   

  	
   

  	
  Title: Chief Executive Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
  CONTINENTAL
  STOCK TRANSFER & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title: 

  

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]