Document:

Exhibit 4.4

 

WARRANT AGREEMENT

 

This Warrant Agreement (the “Agreement”) made as of
                    ,
2008, between K Road Acquisition Corporation, a Delaware corporation, with
offices at 330 Madison Avenue, 25th Floor, New York, NY 10017 (the “Company”), and Continental Stock Transfer &
Trust Company, a New York corporation, with offices at 17 Battery Place, New
York, New York 10004 (the “Warrant Agent”).

 

WHEREAS, the Company is
engaged in a public offering (the “Public Offering”)
of units of the Company (“Units”) and, in
connection therewith, has determined to issue and deliver up to (i) 34,500,000
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 $7.50, subject to adjustment as described herein;

 

WHEREAS, immediately prior
to the completion of the Public Offering, the Company shall sell and issue
7,750,000 Warrants in a private placement (the “Insider
Warrants” and, together with the Public Warrants, the “Warrants”) pursuant to that certain warrant subscription
agreement between the Company and K Road Acquisition Holdings LLC (the “Sponsor”) dated
                    ,
2008 (the “Warrant  Subscription
Agreement”), each of such Insider Warrants evidencing the right of
the holder thereof to purchase one share of Common Stock for $7.50;

 

WHEREAS, the Company has
filed with the Securities and Exchange Commission (the “SEC”)
a registration statement, No. 333-149021 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;

 

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

 

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

 

WHEREAS, all acts and things
have been done and performed which are necessary to make the Warrants, when
executed on behalf of the Company and countersigned by or on behalf of the
Warrant Agent, as provided herein, the valid, binding and legal obligations of
the Company, and to authorize the execution and delivery of this 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 shall be in substantially
the form of Exhibit A hereto and the Insider 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 the
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 date (the
“Detachment Date”) that is the fifth
business day following the earlier to occur of: (i) the expiration of the
over-allotment option (the “Over-allotment Option”)
granted to Credit Suisse Securities (USA) LLC (the “Underwriter”),
(ii) the exercise in full of the Over-allotment Option (as described more
fully in the Registration Statement), or (iii) the Underwriter’s notice to
the Company of its intention not to exercise all or any remaining portion of
the Over-allotment Option; provided that in no event will separate trading of
the securities comprising the Units commence until 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
Units in the Public Offering, including the proceeds received by the Company
from the exercise of the Underwriter’s Over-allotment Option, if the
Over-allotment Option is exercised prior to the filing of the Form 8-K,
and the Company issues a press release announcing the trading date when such
separate trading will begin.

 

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 Agreement,
to purchase from the Company the number of shares of Common Stock stated
therein, at the price of $7.50 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 Agreement refers to the price per share at
which Common Stock underlying a Warrant may be purchased at the time such
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 twenty business days, provided that any such
reduction shall be identical among all of the Warrants.

 

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3.2                                 Duration of Warrants.

 

3.2.1                        Public Warrants.  A Public 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, stock purchase, reorganization, exchangeable share transaction or other similar business combination (as described more fully in the Registration Statement, a “Business Combination”), or (ii) [            ], 2009 (one year from the effective date of the Registration Statement), and terminating at 5:00 p.m., New York City time, on the earlier to occur of (x) [            ], 2012 (four years from the effective date of the Registration Statement) or (y) the date fixed for redemption of the Warrants as provided in Section 6 of this Agreement.  Notwithstanding the foregoing, no Public 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 is effective and current 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.
 

3.2.2                        Insider Warrants.  An
Insider Warrant may be exercised only during the period commencing one day
following the consummation of a Business Combination and terminating at 5:00 p.m.,
New York City time, on the earlier to occur of (x) [            ], 2012 (four years from the
effective date of the Registration Statement) or (y) the date fixed for
redemption of the Warrants as provided in Section 6 of this
Agreement.  The Insider Warrants are not
subject to redemption so long as they are held by the Sponsor or its permitted
transferees (as defined below).  Except
as set forth in Section 5.7, the Insider Warrants may not be sold,
assigned or transferred until one 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; provided, further, that any such
extension shall be identical in duration among all of the Warrants.  In the event that the Company desires to
extend the Expiration Date of the Warrants, the Company shall provide advance
notice of at least 20 days to the American Stock Exchange as required by the
American Stock Exchange.  Notwithstanding
the foregoing, a Warrant can expire unexercised regardless of whether a
registration statement is effective under the Act and a current prospectus is
available for use by the holders thereof.

 

3.3                                 Exercise of Warrants.

 

3.3.1                        Payment.  Subject to the provisions of
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, except as
set forth in Section 3.4, 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.

 

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3.3.2                        Issuance of Certificates.  As
soon as practicable after the exercise of any Warrant and the clearance of the
funds in payment of the Warrant Price, the Company shall issue to the
Registered Holder of such Warrant a certificate or certificates representing
the number of full shares of Common Stock to which he, she or it is entitled,
registered in such name or names as may be directed by such Registered Holder,
and if such Warrant shall not have been exercised in full, a new countersigned
Warrant for the number of shares of Common Stock 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 exercise is
effective and a current prospectus is available for use by the holders thereof
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 registration statement under the Act with respect
to the Common Stock issuable upon exercise is not effective and a current
prospectus is not available for use by the holders thereof at the time such
Warrant is exercised.

 

3.3.3                        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
non-assessable.

 

3.3.4                        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.

 

3.4                                 Cashless Exercise.

 

3.4.1                        Determination of Amount.  In
lieu of the payment of the Warrant Price, a Registered Holder shall have the
right (but not the obligation) to convert any exercisable but unexercised
Warrants into shares of Common Stock (the “Conversion Right”)
as follows:  upon exercise of the
Conversion Right, the Company shall deliver to the Registered Holder (without
payment by the Registered Holder of any of the Warrant Price in cash) 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 Warrants,
multiplied by the difference between the Warrant Price and the Fair Market
Value (as defined below) by (y) the Fair Market Value.  As used herein, the term “Fair Market Value” per share of Common Stock at any date
shall mean the average reported last sale price of the Common Stock for the ten
(10) trading days ending on the third trading day prior to the date on
which the Warrant Agent receives notice of the Registered Holder’s exercise of
the Conversion Right in the principal trading market for the Common Stock as
reported by any national securities exchange or quoted on the NASD OTC Bulletin
Board (or its successor entity), as the case may be; provided that if the Fair
Market Value of the Common Stock cannot be so determined, the “Fair  Market Value”
per share shall be determined by the Board of Directors of the Company, in good
faith.

 

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3.4.2                        Mechanics of Cashless Exercise.  The
Conversion Right may be exercised by a Registered Holder during the Exercise
Period by surrendering the Warrant with the duly executed exercise form
attached thereto with the cashless exercise section completed to the Warrant
Agent, exercising the Conversion Right and specifying the total number of shares
of Common Stock the Registered Holder will purchase pursuant to such Conversion
Right; provided that any holder that holds Warrants in a brokerage account
shall follow the procedures of such holder’s broker and the Depository Trust
Company in order to exercise the Conversion Right.

 

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                                 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 exerciseable), 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 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
Warrant 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.

 

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

 

4.5                                 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 

 

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

 

4.7                                 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, 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.

 

4.8                                 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.

 

4.9                                 Notice of Certain
Transactions.  In the event that the Company shall (a) offer
to holders of all its Common Stock rights to subscribe for or to purchase any
securities convertible into shares of Common Stock or shares of stock of any
class or any other securities, rights or options, (b) issue any rights,
options or warrants entitling all the holders of Common Stock to subscribe for
shares of Common Stock or (c) make a tender offer, redemption offer or
exchange offer with respect to the Common Stock, the Company shall send to the
Warrant holders a notice of such action or offer.  Such notice shall be mailed to the Registered
Holders at their addresses as they appear in the Warrant Register, which shall
specify the record date for the purposes of such dividend, distribution or
rights, or the date such issuance or event is to take place and the date of
participation therein by the holders of Common Stock, if any such date is to be
fixed, and shall briefly indicate the effect of such action on the Common Stock
and on the number and kind of any other shares of stock and on other property,
if any, and the number of shares of Common Stock and other property, if any,
issuable upon exercise of each Warrant and the Warrant Price after giving
effect to any adjustment pursuant to this Section 4 which would be 

 

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required as a result of such action. 
Such notice shall be given as promptly as practicable after the Company
has taken any such action.

 

5.                                       Transfer and Exchange of Warrants.

 

5.1                                 Transfer of Public Warrants. 
Prior to the Detachment Date, the Public Warrants may be transferred or
exchanged only together with the Unit in which such Public 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 Public 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 into the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures properly guaranteed and
accompanied by appropriate instructions for transfer.  Upon any such transfer, a new Warrant
representing an equal aggregate number of Warrants shall be issued and the old
Warrant shall be cancelled by the Warrant Agent.  The Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon 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.

 

5.7                                 Insider Warrants. 
Notwithstanding anything herein to the contrary, the Warrant Agent shall
not register for transfer any Insider Warrants until one day after the
consummation of a Business Combination, except for transfers (i) to
officers or directors of the Company, (ii) to employees of the Sponsor or
its affiliates (collectively with (i), “K Road personnel”),
(iii) to funds managed by the Sponsor or its affiliates, or (iv) by
any K Road personnel (a) by gift to a member of the immediate
family of such K Road personnel
or to a trust or other entity, the beneficiary of which is such K Road personnel or an immediate
family member of such K Road personnel,
(b) by virtue of the laws of descent and distribution upon the death of
any such K Road personnel, (c) pursuant
to a qualified domestic relations order, or (d) to any person or entity controlling, controlled by, or under common
control with, the Sponsor or any K Road personnel (each such person in clauses 

 

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(i) – (iv), a “permitted transferee”),
in each case on condition that prior to such registration for transfer, the
Warrant Agent shall be presented with written documentation pursuant to which
each permitted transferee agrees to be bound by the terms of the Warrant
Subscription Agreement and the Sponsor’s Letter Agreement, except for the
indemnification provisions contained therein, filed as exhibit 10.4 to the
Registration Statement and the Escrow Agreement filed as exhibit 10.2 to the
Registration Statement.

 

6.                                       Redemption.

 

6.1                                 Redemption.  Subject to Section 6.4
hereof and the second sentence of this Section 6.1, all (and 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 $.01 per Warrant (“Redemption Price”);
provided that the last sales price of the Common Stock has been equal to or
greater than $14.25 per share (subject to adjustment for splits, dividends,
recapitalizations and other similar events), 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, pursuant to Section 7.4
hereof, a registration statement under the Act with respect to the shares of
Common Stock issuable upon exercise must be effective and a current prospectus
must be available for use by the holders thereof in order for the Company to
exercise its redemption rights pursuant to this Section 6.  The Insider Warrants are not subject to
redemption pursuant to this Section 6 provided they are held by the
Sponsor or its permitted transferees. 
The provisions of this Section 6.1 may not be modified, amended or
deleted without the prior written consent of the Underwriter.

 

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 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; provided, however, that the Company may elect to require that the
Warrant Price for any such Warrants exercised after notice of redemption be
paid through a Cashless Exercise pursuant to Section 3.4 hereof.  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 the
Underwriter.

 

6.5                                 No Other Rights to Cash Payment. 
Except for a redemption in accordance with this Section 6, no
holder of any Warrant shall be entitled to any cash payment whatsoever from the
Company 

 

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in connection with the ownership, exercise or surrender of any Warrant
under this Agreement, regardless of whether a registration statement under the
Act with respect to the shares of Common Stock issuable upon exercise is
effective and a current prospectus is available for use by the holders thereof.

 

6.6                                 Exclusion of Insider Warrants.  The
Company understands that the redemption rights provided for by this Section 6
do not apply to the Insider Warrants if on the date fixed for redemption such
Insider Warrants continue to be held by the Sponsor or its permitted
transferees.  However, once such Insider
Warrants are transferred other than to any permitted transferee, the Company
may redeem the Insider Warrants; provided that the criteria for redemption are
met, including, but not limited to, the opportunity of the Registered Holder to
exercise its Warrants 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 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 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 reasonably 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 Agreement; provided, however, that 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 or a current
prospectus is not on file with the SEC 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 under the Act is not available for the 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. 
The provisions of this Section 7.4 may not be modified, amended or
deleted without the prior written consent of the Underwriter.

 

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 Agreement without any further act.

 

8.3                                 Fees and Expenses of Warrant Agent.

 

8.3.1                        Remuneration.  The
Company agrees to pay the Warrant Agent reasonable remuneration for its
services as such Warrant Agent hereunder 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 

 

10

 

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.

 

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, Chairman of
the Board, President 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 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 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 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
non-assessable.

 

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, 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 hereon, 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 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, 

 

11

 

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:

 

	
   

  	
  K
  Road Acquisition Corporation

  	
   

  
	
   

  	
  330
  Madison Avenue, 25th Floor

  	
   

  
	
   

  	
  New
  York, NY 10017

  	
   

  
	
   

  	
  Attn:
  William V. Kriegel, Chairman,

  	
   

  
	
   

  	
  Chief
  Executive Officer and President

  	
   

  
	
   

  	
  Facsimile:
  (212) 351-0530

  	
   

  

 

Any notice, statement or demand authorized by this
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:
   Compliance Department

  	
   

  
	
   

  	
  Fax:
   (212) 509-5150

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy in each case
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ellenoff
  Grossman & Schole LLP

  	
   

  
	
   

  	
  150
  East 42nd Street

  	
   

  
	
   

  	
  New
  York, New York 10017

  	
   

  
	
   

  	
  Attn:  Douglas S. Ellenoff, Esq.

  	
   

  
	
   

  	
  Fax:  (212) 370-7889

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Skadden, Arps, Slate,
  Meagher & Flom LLP

  	
   

  
	
   

  	
  300 South Grand Avenue,
  Suite 3400

  	
   

  
	
   

  	
  Los Angeles, California
  90071

  	
   

  
	
   

  	
  Attn:  Gregg A. Noel, Esq.

  	
   

  
	
   

  	
  Fax:  (213) 687-5600

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Credit Suisse Securities (USA) LLC

  	
   

  
	
   

  	
  Eleven
  Madison Avenue

  	
   

  
	
   

  	
  New
  York, New York 10010-3629

  	
   

  
	
   

  	
  Attn:
   LCD-IBD

  	
   

  

 

9.3                                 Applicable Law.  The
validity, interpretation, and performance of this Agreement and of the Warrants
shall be governed in all respects by the laws of the State of New York, without
giving effect to conflict of laws.  The
Company and the Warrant Agent hereby agree that any action, proceeding or claim
against either of them 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 

 

12

 

District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. 
The Company and the Warrant Agent hereby waive 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 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 party receiving such
service in any action, proceeding or claim.

 

9.4                                 Persons Having Rights under this Agreement. 
Nothing in this Agreement expressed and nothing that may be implied from
any of the provisions hereof is intended, or shall be construed, to confer
upon, or give to, any person or corporation other than the parties hereto and
the Registered Holders of the Warrants and, for the purposes of Sections 2.4,
6.1, 6.4, 7.4, 9.2 and 9.8 hereof, the Underwriter, any right, remedy, or claim
under or by reason of this Agreement or of any covenant, condition,
stipulation, promise, or agreement hereof. 
The Underwriter shall be deemed to be a third-party beneficiary of this
Agreement with respect to Sections 2.4, 6.1, 6.4, 7.4, 9.2 and 9.8 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 Underwriter, with respect to Sections
2.4, 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 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 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. 
Facsimile signatures shall constitute original signatures for all
purposes of this Agreement.

 

9.7                                 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.

 

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

 

[remainder of document
continued on next page]

 

13

 

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

 

 

	
  Attest:

  	
   

  	
   

  	
  K ROAD ACQUISITION
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: William V. Kriegel

  
	
   

  	
   

  	
   

  	
  Title: Chairman, Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
  and President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  CONTINENTAL STOCK
  TRANSFER & TRUST 

  
	
   

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

14Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is
entered into as of the [       ] day
of [            ]
2008, by and among K Road Acquisition Corporation, a Delaware corporation (the “Company”), and the undersigned listed under
Investor on the signature page hereto (the “Investor”).

 

WHEREAS, the Investor
currently holds all of the issued and outstanding Common Stock of the Company;
and

 

WHEREAS, the Investor
currently hold an aggregate of 7,750,000 warrants (“Warrants”)
exercisable into an aggregate of 7,750,000 shares of Common Stock (“Warrant Shares”); each of the Warrants and Warrant Shares
shall be referred to herein as the “Warrant Securities”;

 

WHEREAS, the Investor and
the Company desire to enter into this Agreement to provide the Investor with
certain rights relating to the registration of (i) shares of Common Stock
and the (ii) Warrant Securities held by the Investor.

 

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

 

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

 

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

 

“Business
Combination” means the merger, capital stock exchange, asset
acquisition, stock purchase, reorganization, exchangeable share transaction or
other similar business combination with one or more operating businesses or
assets, having a collective fair market value of at least 80% of the assets
held in the Company’s trust account (net of taxes and excluding deferred
underwriting discounts) at the time of signing a definitive agreement in
connection with such business combination.

 

“Commission” means the Securities and Exchange Commission, or
any other federal agency then administering the Securities Act or the Exchange
Act.

 

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

 

“Company” is defined in the preamble to this Agreement.

 

“Demand Registration” is defined in Section 2.1.1.

 

“Demanding Holder” is defined in Section 2.1.1.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated
thereunder, all as the same shall be in effect at the time.

 

“Form S-3” is defined in Section 2.3.

 

“Indemnified Party” is defined in Section 4.3.

 

 

“Indemnifying Party” is defined in Section 4.3.

 

“Investor” is defined in the preamble to this Agreement.

 

“Investor Indemnified Party” is defined in Section 4.1.

 

 “Maximum Number of Shares”
is defined in Section 2.1.4.

 

“Notices” is defined in Section 6.3.

 

“Piggyback Registration” is defined in Section 2.2.1.

 

“Register,” “registered” and “registration” mean a registration effected by preparing and
filing a registration statement or similar document in compliance with the
requirements of the Securities Act, and the applicable rules and
regulations promulgated thereunder, and such registration statement becoming
effective.

 

“Registrable Securities” means the 8,625,000 shares of Common
Stock (of which up to 1,125,000 shares are subject to forfeiture as described
in the Company’s registration statement relating to its initial public
offering), 7,750,000 Warrants and 7,750,000 Warrant Shares issuable upon
exercise of the Warrants owned or held by Investor prior to consummation of the
Company’s initial public offering of securities, in each case that are eligible
for registration under the Securities Act and the terms of the Securities
Escrow Agreement.  Registrable Securities include any warrants, shares of
capital stock or other securities of the Company issued as a dividend or other
distribution with respect to or in exchange for or in replacement of such
Registrable Securities.  As to any particular Registrable Securities, such
securities shall cease to be Registrable Securities when: (a) a
Registration Statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
sold, transferred, disposed of or exchanged in accordance with such
Registration Statement; (b) such securities shall have been otherwise
transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent public
distribution of them shall not require registration under the Securities Act; (c) such
securities shall have ceased to be outstanding; or (d) the Securities and
Exchange Commission makes a definitive determination to the Company that the
Registrable Securities are saleable under Rule 144.

 

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

 

“Release Date I” means the date on which shares of Common Stock
are released from escrow pursuant to Section 3 of the Securities Escrow
Agreement.

 

“Release Date
II” means the date on which the Insider Warrants are released from
escrow pursuant to Section 3 of the Securities Escrow Agreement.

 

“Securities Act” means the Securities Act of 1933, as amended,
and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

2

 

“Securities
Escrow Agreement” mean that certain securities escrow agreement,
dated as of the date hereof, by and among, the Company, the parties named
therein and Continental Stock Transfer & Trust Company.

 

“Underwriter” means a securities dealer who purchases any
Registrable Securities as principal in an underwritten offering and not as part
of such dealer’s market-making activities.

 

“Warrants” mean the 7,750,000 Warrants to purchase 7,750,000
shares of Common Stock issued by the Company to the Investor in a private
placement pursuant to Subscription Agreement dated as of         ,
2008 between the Company and the Investor.

 

“Warrant
Agreement” means that certain warrant agreement, dated as of the ate
hereof, by and among, the Company and Continental Stock Transfer &
Trust Company.

 

2.            
REGISTRATION RIGHTS.

 

2.1          
Demand Registration.

 

2.1.1.      
Request for Registration.  At any time and from time to time
beginning on or after Release Date I as it relates to the Common Stock and
Release Date II as it relates to the Warrant Shares, the holders of a majority
in interest of the outstanding Registrable Securities may make a written demand
for registration under the Securities Act of all or part of their Registrable
Securities (a “Demand Registration”). 
Any demand for a Demand Registration shall specify the number and type of
Registrable Securities proposed to be sold and the intended method(s) of
distribution thereof.  The Company will notify all holders of Registrable
Securities of the demand within ten (10) days from the receipt of the
Demand Registration and 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 Registrable Securities in such Demand
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 2.1.4 and the
provisos set forth in Section 3.1.1.  The Company shall not be
obligated to effect more than an aggregate of two (2) Demand Registrations
under this Section 2.1.1 in respect of Registrable Securities.

 

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

 

2.1.3.      
Underwritten Offering.  If a majority in interest of the Demanding
Holders so elect and such holders so advise the Company as part of their
written demand for a Demand Registration, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an
underwritten offering. In such event, the right of any holder of Registrable
Securities to include its 

 

3

 

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 a majority in interest of the holders
initiating the Demand Registration.

 

2.1.4.      
Reduction of Offering.  If the managing Underwriter or Underwriters
for a Demand Registration that is to be an underwritten offering advises the
Company and the Demanding Holders in writing that the dollar amount or number
of Registrable Securities which the Demanding Holders desire to sell, taken
together with all other shares of Common Stock or other securities which the
Company desires to sell and the shares of Common Stock or other Securities, if
any, as to which registration has been requested pursuant to written
contractual piggyback registration rights held by other securityholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number
of securities 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 securities, 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 of Registrable Securities which such Demanding Holder has requested be
included in such registration, regardless of the number of Registrable
Securities held by each Demanding Holder) that can be sold without exceeding
the Maximum Number of Shares; (ii) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (i), the
shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares; (iii) third,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i) and (ii), the shares of Common Stock or other
securities for the account of other persons that the Company is obligated to
register pursuant to written contractual arrangements with such persons and that
can be sold without exceeding the Maximum Number of Shares; and (iv) fourth,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i), (ii), and (iii), the shares of Common Stock or other
securities that other securityholders desire to sell that can be sold without
exceeding the Maximum Number of Shares.

 

2.1.5.      
Withdrawal. If a majority in interest of the Demanding Holders
disapprove of the terms of any underwriting or are not entitled to include all
of their 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.  In
such event, the Company need not seek effectiveness of such Registration
Statement for the benefit of other Investors, unless otherwise required to do
so.  If the majority in interest of the
Demanding Holders withdraws from a proposed offering relating to a Demand
Registration, then such registration shall not count as a Demand Registration
provided for in Section 2.1.1, provided that the majority in interest of
the Demanding Holders electing to so withdraw from the offering pays all costs
and expenses incurred by the Company in connection with such withdrawn Demand
Registration.  If the majority in
interest of the Demanding Holders does not pay all costs and expenses incurred
by the Company in connection with such withdrawn Demand Registration, then it
shall count as a Demand Registration provided for in Section 2.1.1.

 

2.1.6.       Permitted Delays. The Company
shall be entitled to postpone, for up to sixty (60) days, the filing of any
Registration Statement under this Section 2.1, if (a) at any time
prior to the filing of such Registration Statement the Company’s Board of
Directors determines, in its good faith business judgment, that such registration
and offering would materially and adversely affect any financing, 

 

4

 

acquisition,
corporate reorganization, or other material transaction involving the Company,
and (b) the Company delivers to the Demanding Holders written notice
thereof within five (5) business days of the date of receipt of such
request for Demand Registration.

 

2.2          
Piggyback Registration.

 

2.2.1.      
Piggyback Rights.  If at any time on or after Release Date I as it
relates to shares of the Common Stock and Release Date II as it relates to
Warrant Shares the Company proposes to file a Registration Statement under the
Securities Act with respect to an offering of equity securities, or securities
or other obligations exercisable or exchangeable for, or convertible into,
equity securities, by the Company for its own account or for securityholders of
the Company for their accounts (or by the Company and by securityholders of the
Company including, without limitation, pursuant to Section 2.1), other
than a Registration Statement (i) filed in connection with any employee
stock option or other benefit plan, (ii) for an exchange offer or offering
of securities solely to the Company’s existing securityholders, (iii) for
an offering of debt that is convertible into equity securities of the Company, (iv) filed
in connection with the registration of Common Stock pursuant to Section 7.4
of the Warrant Agreement or (v) for a dividend reinvestment plan, then the
Company shall (x) give written notice of such proposed filing to the
holders of Registrable Securities as soon as practicable but in no event less
than fifteen (15) 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 ten (10) days following receipt of such notice
(a “Piggyback 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 Piggyback Registration to be included
on the same terms and conditions as any similar securities of the Company and
to permit the sale or other disposition of such Registrable Securities in
accordance with the intended method(s) of distribution thereof.  All
holders of Registrable Securities proposing to distribute their securities
through a Piggyback Registration that involves an Underwriter or Underwriters
shall enter into an underwriting agreement in customary form with the
Underwriter or Underwriters selected for such Piggyback Registration.

 

2.2.2.      
Reduction of Offering.  If the managing Underwriter or Underwriters
for a Piggyback Registration that is to be an underwritten offering advises the
Company and the holders of Registrable Securities in writing that the dollar
amount or number of shares of Common Stock or other securities which the
Company desires to sell, taken together with shares of Common Stock or other
securities, 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 2.2, and the shares of Common Stock or
other securities, if any, as to which registration has been requested pursuant
to the written contractual piggyback registration rights of other
securityholders of the Company, exceeds the Maximum Number of Shares, then the
Company shall include in any such registration:

 

(i)           If
the registration is undertaken for the Company’s account: (A) first, the
shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares; (B) second,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock and other securities, if any,
including the Registrable Securities, as to which registration has been
requested pursuant to the applicable written contractual piggyback registration
rights of security holders (pro rata in accordance with the number of shares of
Common Stock and other securities which each such person has 

 

5

 

actually requested to be
included in such registration, regardless of the number of shares of Common
Stock and other securities with respect to which such persons have the right to
request such inclusion) that can be sold without exceeding the Maximum Number
of Shares; and (C) third, to the extent that the Maximum Number of shares
has not been reached under the foregoing clauses (A) and (B), the shares
of Common Stock or other securities for the account of other persons that the
Company is obligated to register pursuant to written contractual piggyback
registration rights with such persons (pro rata in accordance with the
number of shares of Common Stock which each such person has actually requested
to be included in such registration, regardless of the number of shares of
Common Stock with respect to which such persons have the right to request such
inclusion) that can be sold without exceeding the Maximum Number of Shares; and

 

(ii)          If
the registration is a “demand” registration undertaken at the demand of persons
other than the holders of Registrable Securities pursuant to written
contractual arrangements with such persons, (A) first, the shares of
Common Stock and other securities for the account of the demanding persons that
can be sold without exceeding the Maximum Number of Shares; (B) second, to
the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number
of Shares; and (C) third, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clauses (A) and (B), the
Registrable Securities as to which registration has been requested under this Section 2.2
(pro rata in accordance with the
number of shares of Registrable Securities which each such person has actually
requested to be included in such registration, regardless of the number of
shares of Common Stock and other securities with respect to which such persons
have the right to request such inclusion by such holder); and (D) fourth,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A), (B) and (C), the shares of Common Stock or
other securities, for the account of other persons that the Company is
obligated to register, if any, as to which registration has been requested
pursuant to written contractual arrangements with such person that can be sold
without exceeding the Maximum Number of Shares.

 

2.2.3.      
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 a result of the withdrawal by
persons making a demand pursuant to written contractual obligations) may also
elect to withdraw a registration statement at any time prior to the
effectiveness of the Registration Statement.  Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggyback Registration as
provided in Section 3.3.

 

2.2.4.      
Permitted Delays. The Company shall be entitled to postpone, for up to
sixty (60) days, the filing of any Registration Statement under this Section 2.2,
if (a) at any time prior to the filing of such Registration Statement the
Company’s Board of Directors determines, in its good faith business judgment,
that such registration and offering would materially and adversely affect any
financing, acquisition, corporate reorganization, or other material transaction
involving the Company, and (b) the Company delivers to the holder of the
Registrable Securities requesting a Piggyback Registration, written notice
thereof within five (5) business days of the date of receipt of such
request for Piggyback Registration.

 

2.3          
Registrations on Form S-3.  The holders of Registrable
Securities may at any time and from time to time beginning on or after Release
Date I or Release Date II, as the case may be, request in 

 

6

 

writing that the Company
register the resale of any or all of such Registrable Securities on Form S-3
or any similar short-form registration which may be available at such time (“Form S-3”); provided, however, that the Company shall not be obligated
to effect such request through an underwritten offering.  Upon receipt of
such written request, the Company will promptly give written notice of the
proposed registration to all other holders of Registrable Securities, and, as
soon as practicable thereafter, effect the registration of all or such portion
of such holder’s or holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other holder or holders joining in such request as are specified in a written
request given within fifteen (15) days after receipt of such written notice
from the Company; provided, however,
that the Company shall not be obligated to effect any such registration
pursuant to this Section 2.3: (i) if Form S-3 is not available
for such offering; or (ii) if the holders of the Registrable Securities,
together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at any aggregate price to the public of less than
$500,000. Registrations effected pursuant to this Section 2.3 shall not be
counted as Demand Registrations effected pursuant to Section 2.1.

 

2.4.          No Net Cash Settlement Value.  In connection with the exercise of the
Warrants, the Company will not be obligated to deliver securities, and there
are no contractual penalties for failure to deliver securities, if a
registration statement is not effective at the time of exercise; provided,
however, the Company may satisfy its obligation by delivering unregistered
shares of Common Stock.  In no event will
the Company be required to net cash settle an exercise of a Warrant.

 

3.            REGISTRATION
PROCEDURES.

 

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

 

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

 

3.1.2.      
Copies.  The Company shall, prior to filing a Registration
Statement or prospectus, or any amendment or supplement thereto, furnish
without charge to the holders of Registrable Securities included in such
registration, and such holders’ legal counsel, copies of such Registration
Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and
documents incorporated by reference therein), the prospectus included in such
Registration Statement (including each preliminary prospectus), and such other 

 

7

 

documents as the holders of
Registrable Securities included in such registration or legal counsel for any
such holders may request in order to facilitate the disposition of the
Registrable Securities owned by such holders.

 

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

 

3.1.4.      
Notification.  After the filing of a Registration Statement, the Company
shall promptly, and in no event more than two (2) business days after such
filing, notify the holders of Registrable Securities included in such
Registration Statement of such filing, and shall further notify such holders
promptly and confirm such advice in writing in all events within two (2) business
days of the occurrence of any of the following:  (i) when such
Registration Statement becomes effective; (ii) when any post-effective
amendment to such Registration Statement becomes effective; (iii) the
issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order
or to remove it if entered); and (iv) any request by the Commission for
any amendment or supplement to such Registration Statement or any prospectus
relating thereto or for additional information or of the occurrence of an event
requiring the preparation of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of the securities covered by
such Registration Statement, such prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
promptly make available to the holders of Registrable Securities included in
such Registration Statement any such supplement or amendment; except that
before filing with the Commission a Registration Statement or prospectus or any
amendment or supplement thereto, including documents incorporated by reference,
the Company shall furnish to the holders of Registrable Securities included in
such Registration Statement and to the legal counsel for any such holders,
copies of all such documents proposed to be filed sufficiently in advance of
filing to provide such holders and legal counsel with a reasonable opportunity
to review such documents and comment thereon, and the Company shall not file
any Registration Statement or prospectus or amendment or supplement thereto,
including documents incorporated by reference, to which such holders or their
legal counsel shall reasonably object.

 

3.1.5.      
State Securities Laws Compliance.  The Company shall use its best
efforts to (i) register or qualify the Registrable Securities covered by
the Registration Statement under such securities or “blue sky” laws of such
jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended plan of distribution)
may request, and (ii) take such action necessary to cause such Registrable
Securities covered by the Registration Statement to be registered with or
approved by such other Governmental Authorities as may be necessary by virtue
of the business and operations of the Company and do any and all other acts and
things that may be necessary or advisable to enable the holders of Registrable
Securities included in such Registration Statement to consummate the
disposition of such Registrable Securities in such jurisdictions; provided, however, that the Company shall
not be required to qualify generally to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3.1.5
or subject itself to taxation in any such jurisdiction.

 

8

 

3.1.6.      
Agreements for Disposition.  The Company shall enter into customary
agreements (including, if applicable, an underwriting agreement in customary
form) and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of such Registrable Securities. 
The representations, warranties and covenants of the Company in any
underwriting agreement which are made to or for the benefit of any Underwriters,
to the extent applicable, shall also be made to and for the benefit of the
holders of Registrable Securities included in such registration
statement.  No holder of Registrable Securities included in such
registration statement shall be required to make any representations or
warranties in the underwriting agreement except, if applicable, with respect to
such holder’s organization, good standing, authority, title to Registrable
Securities, lack of conflict of such sale with such holder’s material agreements
and organizational documents, and with respect to written information relating
to such holder that such holder has furnished in writing expressly for
inclusion in such Registration Statement. Holders of Registrable Securities
shall agree to such covenants and indemnification and contribution obligations
for selling stockholders as are customarily contained in agreements of that
type. Further, such holders shall cooperate fully in the preparation of the
registration statement and other documents relating to any offering in which
they include securities pursuant to Section 2 hereof; provided, however,
that such cooperation shall be limited to furnishing to the Company such
information regarding itself, the Registrable Securities held by such holder
and the intended method of disposition of such securities as shall be
reasonably required to effect the registration of the Registrable Securities.

 

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

 

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

 

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

 

3.1.10.    
Earnings Statement.  The Company shall comply with all applicable rules and
regulations of the Commission and the Securities Act, and make available to its
stockholders, as soon as practicable, an earnings statement covering a period
of twelve (12) months, beginning within three (3) months after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

 

9

 

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

 

3.2          
Obligation to Suspend Distribution.  Upon receipt of any notice
from the Company of the happening of any event of the kind described in Sections
3.1.4(iii) or 3.1.4(iv), or, in the case of a resale registration on Form S-3
pursuant to Section 2.3 hereof, upon any suspension by the Company,
pursuant to a written insider trading compliance program adopted by the Company’s
Board of Directors, of the ability of all “insiders” covered by such program to
transact in the Company’s securities because of the existence of material
non-public information, each holder of Registrable Securities included in any
registration shall immediately discontinue disposition of such Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such holder receives the supplemented or amended prospectus
contemplated by Section 3.1.4(iv) or the restriction on the ability
of “insiders” to transact in the Company’s securities is removed, as
applicable, and, if so directed by the Company, each such holder will deliver
to the Company all copies, other than permanent file copies then in such holder’s
possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice.

 

3.3          
Registration Expenses.  The Company shall bear all costs and
expenses incurred in connection with any Demand Registration pursuant to Section 2.1,
any Piggy-Back Registration pursuant to Section 2.2, and any registration
on Form S-3 effected pursuant to Section 2.3, and all expenses
incurred in performing or complying with its other obligations under this
Agreement, whether or not the Registration Statement becomes effective,
including, without limitation: (i) all registration and filing fees; (ii) fees
and expenses of compliance with securities or “blue sky” laws (including fees
and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities); (iii) printing expenses; (iv) the Company’s
internal expenses (including, without limitation, all salaries and expenses of its
officers and employees); (v) the fees and expenses incurred in connection
with the listing of the Registrable Securities as required by Section 3.1.11;
(vi) Financial Industry Regulatory Authority (“FINRA”)
fees; (vii) fees and disbursements of counsel for the Company and fees and
expenses for independent certified public accountants retained by the Company
(including the expenses or costs associated with the delivery of any opinions
or comfort letters requested pursuant to Section 3.1.9); (viii) the
fees and expenses of any special experts retained by the Company in connection
with such registration; and (ix)  the fees and expenses of one legal
counsel selected by the holders of a majority in interest of the Registrable
Securities included in such registration.  The Company shall have no
obligation to pay any underwriting discounts or selling commissions
attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions shall be borne solely by
such holders.  Additionally, in an underwritten offering, all selling
securityholders and the Company shall bear the expenses of the underwriter pro
rata in proportion to the respective dollar amount of securities each is
selling in such offering.

 

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

 

3.5   Holder
Obligations. No holder of Registrable Securities may participate in any
underwritten offering pursuant to this Section 3 unless such holder (i) agrees
to sell only such holder’s Registrable 

 

10

 

Securities on the basis
reasonably provided in any underwriting agreement, and (ii) completes,
executes and delivers any and all questionnaires, powers of attorney, custody
agreements, indemnities, underwriting agreements and other documents reasonably
required by or under the terms of any underwriting agreement or as reasonably
requested by the Company.

 

4.            INDEMNIFICATION
AND CONTRIBUTION.

 

4.1         
Indemnification by the Company.  The Company agrees to indemnify
and hold harmless each Investor and each other holder of Registrable
Securities, and each of their respective officers, employees, affiliates,
directors, partners, members, attorneys and agents, and each person, if any,
who controls an Investor and each other holder of Registrable Securities
(within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) (each, an “Investor
Indemnified Party”), from and against any expenses, losses,
judgments, claims, damages or liabilities, whether joint or several, arising
out of or based upon any untrue statement (or allegedly untrue statement) of a
material fact contained in any Registration Statement under which the sale of
such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration
Statement, or arising out of or based upon any omission (or alleged omission)
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Company of the
Securities Act or any rule or regulation promulgated thereunder applicable
to the Company and relating to action or inaction required of the Company in
connection with any such registration; and the Company shall promptly reimburse
the Investor Indemnified Party for any legal and any other expenses reasonably
incurred by such Investor Indemnified Party in connection with investigating
and defending any such expense, loss, judgment, claim, damage, liability or
action; provided, however, that
the Company will not be liable in any such case to the extent that any such
expense, loss, claim, damage or liability arises out of or is based upon any
untrue statement or allegedly untrue statement or omission or alleged omission
made in such Registration Statement, preliminary prospectus, final prospectus,
or summary prospectus, or any such amendment or supplement, in reliance upon
and in conformity with information furnished to the Company, in writing, by
such selling holder expressly for use therein or (ii) for the use by any
selling holder of a prospectus in violation of any stop order or other
suspension of the Registration Statement of which the Company made the selling
holder aware.  The Company also shall
indemnify any Underwriter of the Registrable Securities, their officers,
employees, affiliates, directors, partners, members, attorneys and agents and
each person who controls such Underwriter on substantially the same basis as
that of the indemnification provided above in this Section 4.1.

 

4.2          
Indemnification by Holders of Registrable Securities.  Each selling
holder of Registrable Securities will, in the event that any registration is
being effected under the Securities Act pursuant to this Agreement of any
Registrable Securities held by such selling holder, indemnify and hold harmless
the Company, each of its directors and officers and each underwriter (if any),
and each other person, if any, who controls the Company or such underwriter
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, against any losses, claims, judgments, damages or
liabilities, whether joint or several, insofar as such losses, claims, judgments,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or allegedly untrue statement of a material
fact contained in any Registration Statement under which the sale of such
Registrable Securities was registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to the Registration
Statement, or arise out of or are based upon any omission or the alleged
omission to state a material fact required to be stated therein or necessary to
make the statement therein not misleading, if the statement or omission was
made in reliance upon and in conformity with information furnished in writing
to the Company by such selling holder expressly for use therein, and 

 

11

 

shall reimburse the Company,
its directors and officers, and each such controlling person for any legal or
other expenses reasonably incurred by any of them in connection with
investigation or defending any such loss, claim, damage, liability or
action.  Each selling holder’s indemnification obligations hereunder shall
be several and not joint and shall be limited to the amount of any net proceeds
actually received by such selling holder in connection with the sale of the
Registrable Securities by such selling holder pursuant to the Registration
Statement containing such untrue statement or allegedly untrue statement.

 

4.3          
Conduct of Indemnification Proceedings.  Promptly after receipt by
any person of any notice of any loss, claim, damage or liability or any action
in respect of which indemnity may be sought pursuant to Section 4.1 or
4.2, such person (the “Indemnified Party”)
shall, if a claim in respect thereof is to be made against any other person for
indemnification hereunder, promptly notify such other person (the “Indemnifying Party”) in writing of the
loss, claim, judgment, damage, liability or action; provided, however, that the failure by the Indemnified Party
to notify the Indemnifying Party shall not relieve the Indemnifying Party from
any liability which the Indemnifying Party may have to such Indemnified Party
hereunder, except and solely to the extent the Indemnifying Party is actually
prejudiced by such failure.  If the Indemnified Party is seeking
indemnification with respect to any claim or action brought against the
Indemnified Party, then the Indemnifying Party shall be entitled to participate
in such claim or action, and, to the extent that it elects, jointly with all
other Indemnifying Parties, to assume control of the defense thereof with
counsel satisfactory to the Indemnified Party.  After notice from the
Indemnifying Party to the Indemnified Party of its election to assume control
of the defense of such claim or action, the Indemnifying Party shall not be
liable to the Indemnified Party for any legal or other expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof other
than reasonable costs of investigation; provided,
however, that in any action in which both the Indemnified Party and
the Indemnifying Party are named as defendants, the Indemnified Party shall
have the right to employ separate counsel (but no more than one such separate
counsel) to represent the Indemnified Party and its controlling persons who may
be subject to liability arising out of any claim in respect of which indemnity
may be sought by the Indemnified Party against the Indemnifying Party, with the
fees and expenses of such counsel to be paid by such Indemnifying Party if,
based upon the written opinion of counsel of such Indemnified Party,
representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them.  No Indemnifying
Party shall, without the prior written consent of the Indemnified Party,
consent to entry of judgment or effect any settlement of any claim or pending
or threatened proceeding in respect of which the Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such judgment or settlement includes an unconditional
release of such Indemnified Party from all liability arising out of such claim
or proceeding.

 

4.4          
Contribution.

 

4.4.1.      If
the indemnification provided for in the foregoing Sections 4.1, 4.2 and
4.3 is unavailable to any Indemnified Party in respect of any loss, claim,
damage, liability or action referred to herein, then each such Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such loss,
claim, damage, liability or action in such proportion as is appropriate to the
relative fault of the Indemnified Parties and the Indemnifying Parties in
connection with the actions or omissions which resulted in such loss, claim,
damage, liability or action, as well as any other relevant equitable
considerations.  The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied
by such Indemnified Party or such Indemnifying Party and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

12

 

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

 

5.            OTHER
COVENANTS.

 

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

 

6.            MISCELLANEOUS.

 

6.1          
Other Registration Rights.  Except for the registration of Common
Stock pursuant to Section 7.4 of the Warrant Agreement, the Company
represents and warrants that no person, other than a holder of the Registrable
Securities, currently has any right to require the Company to register any
shares of the Company’s capital stock for sale or to include shares of the
Company’s capital stock in any registration filed by the Company for the sale
of shares of capital stock for its own account or for the account of any other
person.  The Company shall not grant to
any other person any right to register his securities of the Company which are
inconsistent with the rights granted hereunder.

 

6.2          
Assignment; No Third Party Beneficiaries.  This Agreement and the
rights, duties and obligations of the Company hereunder may not be assigned or
delegated by the Company in whole or in part.  This Agreement and the
rights, duties and obligations of the holders of Registrable Securities
hereunder may be freely assigned or delegated by such holder of Registrable
Securities in conjunction with and to the extent of any transfer of Registrable
Securities by any such holder in accordance with applicable law.  This
Agreement and the provisions hereof shall be binding upon and shall inure to
the benefit of each of the parties and their respective successors and the
permitted assigns of the Investor or holder of Registrable Securities or of any
assignee of the Investor or holder of Registrable Securities.  This
Agreement is not intended to confer any rights or benefits on any persons that
are not party hereto other than as expressly set forth in Article 4 and
this Section 6.2.

 

6.3          
Notices. All notices, demands, requests, consents, approvals or other
communications (collectively, “Notices”)
required or permitted to be given hereunder or which are given with respect to
this Agreement shall be in writing and shall be personally served, sent by
registered or certified mail, return receipt requested, or sent by reputable
air courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex or facsimile, addressed as set forth below, or to such other
address as such party shall have specified most recently by written notice provided
in accordance with this Section 6.3.  Notice shall be deemed given on
the date of service or transmission if personally served or transmitted by 

 

13

 

telegram, telex or
facsimile; provided, that if such service or transmission is not on a business
day or is after normal business hours, then such notice shall be deemed given
on the next business day. Notice otherwise sent as provided herein shall be
deemed given on the next business day following timely delivery of such notice
to a reputable air courier service with an order for next-day delivery.

 

	
   

  	
  To the Company:

  
	
   

  	
   

  
	
   

  	
  K Road Acquisition
  Corporation

  
	
   

  	
  330 Madison Avenue, 25th
  Floor

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Attention:  William
  V. Kriegel

  
	
   

  	
  Fax: (212) 351-0530

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Ellenoff Grossman &
  Schole LLP

  
	
   

  	
  150 East 42nd
  Street

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Attn:   Douglas
  S. Ellenoff, Esq.

  
	
   

  	
  Fax: (212) 370-7889

  
	
   

  	
   

  
	
   

  	
  And

  
	
   

  	
   

  
	
   

  	
  To an Investor, to the
  attention of the Investor at the address set forth opposite his, her or its
  respective name on the signature page hereto.

  

 

6.4           Severability. 
This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity
or enforceability of this Agreement or of any other term or provision hereof.
Furthermore,

in lieu of any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be
possible and be valid and enforceable.

 

6.5           
Counterparts; Facsimile Signatures.  This Agreement may be executed
in one or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission or by
e-mail delivery of a “.pdf” format data file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

6.6           
Entire Agreement.  This Agreement (including all agreements entered
into pursuant hereto and all certificates and instruments delivered pursuant
hereto and thereto) constitute the entire agreement of the parties with respect
to the subject matter hereof and supersede all prior and contemporaneous
agreements, representations, understandings, negotiations and discussions
between the parties, whether oral or written.

 

14

 

6.7           
Modifications and Amendments.  No amendment, modification or termination
of this Agreement shall be binding upon any party unless executed in writing by
such party.

 

6.8           
Titles and Headings.  Titles and headings of sections of this
Agreement are for convenience only and shall not affect the construction of any
provision of this Agreement.

 

6.9           
Waivers and Extensions.  Any party to this Agreement may waive any
right, breach or default which such party has the right to waive, provided that such waiver will not be
effective against the waiving party unless it is in writing, is signed by such
party, and specifically refers to this Agreement.  Waivers may be made in
advance or after the right waived has arisen or the breach or default waived
has occurred.  Any waiver may be conditional.  No waiver of any breach
of any agreement or provision herein contained shall be deemed a waiver of any
preceding or succeeding breach thereof nor of any other agreement or provision
herein contained.  No waiver or extension of time for performance of any
obligations or acts shall be deemed a waiver or extension of the time for
performance of any other obligations or acts.

 

6.10           
Remedies Cumulative.  In the event that the Company fails to
observe or perform any covenant or agreement to be observed or performed under
this Agreement, any Investor or any other holder of Registrable Securities may
proceed to protect and enforce its rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for
an injunction against the breach of any such term or in aid of the exercise of
any power granted in this Agreement or to enforce any other legal or equitable
right, or to take any one or more of such actions, without being required to
post a bond.  None of the rights, powers or remedies conferred under this
Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy,
whether conferred by this Agreement or now or hereafter available at law, in
equity, by statute or otherwise.

 

6.11           
Governing Law. This Agreement shall be governed by, interpreted under,
and construed in accordance with the internal laws of the State of New York
applicable to agreements made and to be performed within the State of New York,
without giving effect to any choice-of-law provisions thereof that would compel
the application of the substantive laws of any other jurisdiction.  Each of the parties 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
(each, a “New York Court”), and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. Each of the parties hereby waives any
objection to such exclusive jurisdiction and that such courts represent an
inconvenient forum.

 

6.12           
Waiver of Trial by Jury.  Each party hereby irrevocably and
unconditionally waives the right to a trial by jury in any action, suit,
counterclaim or other proceeding (whether based on contract, tort or otherwise)
arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of any Investor in the negotiation,
administration, performance or enforcement hereof.

 

(The remainder of this page intentionally left blank.
Signature pages to follow.)

 

15

 

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

 

	
   

  	
  K ROAD
  ACQUISITION CORPORATION

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: William V. Kriegel
  

  
	
   

  	
   

  	
  Title: Chairman, Chief
  Executive Officer

            and President

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   K ROAD ACQUISITION
  HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: William V. Kriegel

  
	
   

  	
   

  	
  Title: Managing Member

  

 

16

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