Document:

exv10w4

 

EXHIBIT
10.4

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) is entered into effective as of May 7, 2007 by and
between The Shaw Group Inc., a Louisiana corporation (collectively with the affiliates and
subsidiaries hereinafter referred to as “Company”), and Clifton Scott Rankin (“Employee”).

     WHEREAS, the Company employs Employee and desires to continue such employment relationship and
Employee desires to continue such employment;

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties, and
agreements contained herein, and for other valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties agree as follows:

     1. Employment. The Company continues to employ Employee, and Employee hereby accepts
continued employment by the Company, on the terms and conditions set forth in this Agreement.

     2. Term of Employment. Subject to the provisions for earlier termination provided in
this Agreement, the term of this agreement (the “Term”) shall be two (2) years commencing on the
date hereof and shall be automatically renewed on each day following the date hereof so that on any
given day the unexpired portion of the Term of this Agreement shall be two (2) years.
Notwithstanding the foregoing provision, at any time after the date hereof the Company or Employee
may give written notice to the other party

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that the Term of this Agreement shall not be further
renewed from and after a subsequent date specified in such notice (the “fixed term date”), in which
event the Term of this Agreement shall become fixed and this Agreement shall terminate on the
second anniversary of the fixed term date. 

     3. Employee’s Duties. During the Term of this Agreement, Employee shall serve as
Secretary and General Counsel of the Company, with such duties and responsibilities as may from
time to time be assigned to him by the board of directors of the Company (the “Board”) or the Chief
Executive Officer, as the case may be, provided that such duties are consistent with the customary
duties of such position.

     Employee agrees to devote his full attention and time during normal business hours to the
business and affairs of the Company and to use reasonable best efforts to perform faithfully and
efficiently his duties and responsibilities. Employee shall not, either directly or indirectly,
enter into any business or employment with or for any person, firm, association or corporation
other than the Company during the Term of this Agreement; provided, however, that Employee shall
not be prohibited from making financial investments in any other company or business or from
serving on the board of directors of any other company. Employee shall at all times observe and
comply with all lawful directions and instructions of the Board.

     4. Base Compensation. For services rendered by Employee under this Agreement, the
Company shall pay to Employee his current base salary as of the date of this Agreement (“Base
Compensation”), per annum payable in

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accordance with the Company’s customary pay periods and
subject to customary withholdings. The amount of Base Compensation may be reviewed by the Board on
an annual basis as of the close of each fiscal year of the Company and may be increased as the
Board may deem appropriate. In the event the Board deems it appropriate to increase Employee’s
annual base salary, said increased amount shall thereafter be the “Base Compensation”. Employee’s
Base Compensation, as increased from time to time, may not thereafter be decreased unless agreed to
by Employee. Nothing
contained herein shall prevent the Board from paying additional compensation to Employee in
the form of bonuses or otherwise during the Term of this Agreement.

     5. Additional Benefits. In addition to the Base Compensation provided for in Section
4 herein, Employee shall be entitled to the following:

     (a) Expenses. The Company shall, in accordance with any rules and
policies that it may establish from time to time for executive officers, reimburse
Employee for business expenses reasonably incurred in the performance of his duties.

     (b) Bonus. The Company shall pay Employee a bonus of not less than $50,000
for the fiscal year ending August 31, 2007, which shall be payable prior to December
31, 2007; such bonus subject to customary withholdings.

     (c) Vacation. Employee shall be entitled to three (3) weeks of vacation
per year increasing to four (4) weeks per year

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after January 1, 2008, without any
loss of compensation or benefits. Employee shall be entitled to carry forward any
unused vacation time.

     (d) General Benefits. Employee shall be entitled to participate in the
various employee benefit plans or programs provided to the employees of the company
in general, including but not limited to, health, dental, disability, 401K and life
insurance plans, subject to the eligibility requirements with respect to each of such
benefit plans or programs, and such other benefits or perquisites as may be approved
by the Board during the Term of this Agreement. Nothing in this paragraph shall be
deemed to prohibit the Company from making any changes in any of the plans, programs
or benefits described in this
Section 5, provided the change similarly affects all executive officers of the
Company similarly situated.

     6. Confidential Information. Employee, during the Term, may have access to and become
familiar with confidential information, secrets and proprietary information concerning the business
and affairs of the Company. As to such confidential information, Employee agrees as follows:

     (a) During the employment of Employee with the Company and thereafter Employee
will not, either directly or indirectly, disclose to any third party without the
written

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permission of the Company, nor use in any way (except as required in the
course of his employment with the Company) any confidential information, secret or
proprietary information of the Company. In the event of a breach or threatened breach
of the provisions of this Section 6 (a), the Company shall be entitled, in addition
to any other remedies available to the Company, to an injunction restraining Employee
from disclosing such confidential information.

     (b) Upon termination of employment of Employee, for whatever reason, Employee
shall surrender to the Company any and all documents, manuals, correspondence,
reports, records and similar items then or thereafter coming into the possession of
Employee which contain any confidential, secret or proprietary information of the
Company.

     7. Termination This Agreement may be terminated prior to the end of its Term as set
forth below:

     (a) Resignation (other than for Good Reason). Employee may resign,
including by reason of retirement, his position at any time by providing written
notice of resignation to the Company in accordance with Section 11 hereof. In the
event of such resignation, except in the case of resignation for Good Reason (as
defined below), this Agreement shall terminate and Employee shall not be entitled to
further compensation pursuant to this

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Agreement other than the payment of any unpaid
Base Compensation accrued hereunder as of the date of Employee’s resignation.

     (b) Death. If Employee’s employment is terminated due to his death, one
(1) year of Employee’s Base Compensation shall be paid by the Company in lump sum in
cash within thirty (30) days after Employee’s death to Employee’s surviving spouse or
estate, and one (1) year of paid group health and dental insurance benefits shall be
provided by the Company to Employee’s surviving spouse and minor children, and after
said payments and provision of insurance benefits, this Agreement shall terminate and
the Company shall have no obligations to Employee or his legal representatives with
respect to this Agreement other than the payment of any unpaid Base Compensation
previously accrued hereunder. This provision shall not be exclusive and shall be in
addition to death benefits payable by the Company or any insurer under any plan.

     (c) Discharge.

     (i) The Company may terminate Employee’s employment for any reason at any
time upon written notice thereof delivered to Employee in accordance with
Section 11 hereof. In the event that Employee’s employment is

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terminated
during the Term by the Company for any reason other than his Misconduct or
Disability or in the event of Death (all as defined herein), then (A) the
Company shall pay in lump sum in cash to Employee, within fifteen (15) days
following the date of termination, an amount equal to the product of (i)
Employee’s Base Compensation as in effect immediately prior to Employee’s
termination, multiplied by (ii) the Remaining Term, (B) for the Remaining
Term, the Company, at its cost, shall provide or arrange to provide Employee
(and, as applicable, Employee’s dependents) with disability, accident and
group health insurance benefits substantially similar to those which Employee
(and Employee’s dependents) were receiving immediately prior to Employee’s
termination; however, the welfare benefits otherwise receivable by Employee
pursuant to this clause (B) shall be reduced to the extent comparable welfare
benefits are actually received by Employee (and/or Employee’s dependents)
during such period under any other employer’s welfare plan(s) or program(s),
with Employee being obligated to promptly disclose to the Company any such
comparable welfare benefits, and (C) in addition to the aforementioned
compensation and benefits, the Company shall pay in lump sum in cash to
Employee within fifteen (15) days
following

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the date of termination an amount equal to the product of (i)
Employee’s highest bonus paid by the Company during the most recent two (2)
years immediately prior to the Date of Termination, multiplied by (ii) the
Remaining Term.

     (ii) Notwithstanding the foregoing provisions of this Section 7, in the
event Employee is terminated because of Misconduct, the Company shall have no
obligations pursuant to this Agreement after the Date of Termination other
than the payment of any unpaid Base Compensation accrued through the Date of
Termination. As used herein, “Misconduct” means (a) the continued failure by
Employee to substantially perform his duties with the Company (other than any
such failure resulting from Employee’s incapacity due to physical or mental
illness or any such actual or anticipated failure after the issuance of a
Notice of Termination by Employee for Good Reason), after a written demand for
substantial performance is delivered to Employee by the Board, which demand
specifically identifies the manner in which the Board believes that Employee
has not substantially performed his duties, (b) the engaging by Employee in
conduct which is demonstrably and materially injurious to the Company,
monetarily or otherwise (other than such conduct resulting from Employee’s
incapacity due

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to physical or mental illness or any such actual or anticipated
conduct after the issuance of a Notice of Termination by Employee for Good
Reason), or (c) Employee’s conviction for the commission of a felony.

     (d) Disability. If Employee shall have been absent from the full-time
performance of Employee’s duties with the Company for ninety (90) consecutive
calendar days as a result of Employee’s incapacity due to physical or mental illness,
Employee’s employment may be terminated by the Company for “Disability” and Employee
shall not be entitled to further compensation pursuant to this Agreement, except that
Employee shall (1) be paid monthly (but only for up to a twelve (12) month period
beginning with the Date of Termination) the amount by which Employee’s monthly Base
Compensation exceeds the monthly benefit received by Employee pursuant to any
disability insurance covering Employee; and (2) continue to receive paid group health
and dental insurance benefits for Employee and his dependents for the twelve (12)
month period beginning with Date of Termination.

     (e) Resignation for Good Reason. Employee shall be entitled to
terminate his employment for Good Reason as defined herein. If Employee terminates
his employment for Good Reason he shall be entitled to the compensation and benefits
provided in Paragraph 7 (c)(i) hereof. “Good Reason” shall mean the occurrence

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of any
of the following circumstances without Employee’s express written consent unless such
breach or circumstances are fully corrected prior to the Date of Termination
specified in the Notice of Termination given in respect hereof:

     (1) the material breach of any of the Company’s obligations under this
Agreement without Employee’s express written consent,

     (2) the continued assignment to Employee of any duties inconsistent with
the office of Secretary and General Counsel of the Company;

     (3) the failure by the Company to pay to Employee any portion of
Employee’s compensation on the date such compensation is due;

     (4) the failure by the Company to continue to provide Employee with
benefits substantially similar to those enjoyed by other executive officers
who have entered into similar employment agreements with Employer under any of
the Company’s medical, health, accident, and/or disability plans in which
Employee was participating immediately prior to such time; or

     (5) the occurrence of any Corporate Change (as defined below), but only
if (i) Employee is not retained, (ii) this Agreement is not assigned to a
successor person or

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entity, or (iii) Employee is retained, but is terminated
from his employment within one hundred twenty (120) days following the
effective date of such Corporate Change.

     A “Corporate Change” shall occur if (i) the Company shall not be the surviving
entity in any merger or consolidation (or survives only as a subsidiary of another
entity), (ii) the Company sells all or substantially all of its assets to any other
person or entity (other than a wholly-owned subsidiary of the Company), (iii) the
Company is to be dissolved and liquidated, (iv) any “person” as defined in Section
3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
as used in Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) of the Exchange Act but excluding any 10% or larger shareholder of
record of the Company as of January 10, 2007, directly or indirectly, becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, as amended from
time to time), of securities of the Company representing 50% or more of the combined
voting power of the Company’s then outstanding securities which are entitled to vote
with respect to the election of the directors of the Company; or (v) as a result of
or in connection with a contested election the members of the Board as of the date of
this Agreement shall cease to constitute a majority of the Board.

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“Contested” as used
herein shall not include election by a majority of the current Board.

     (f) Notice of Termination. Any purported termination of Employee’s
employment by the Company under Sections 7(c)(ii) or 7(d), or by Employee under
Section 7(e), shall be communicated by written Notice of Termination to the other
party hereto in accordance with Section 11 hereof. For purposes of this Agreement, a
“Notice of Termination” shall mean a notice which (i) if by the Company and for
Misconduct or Disability, shall set forth in reasonable detail the reason for such
termination of Employee’s employment, or (ii) in the case of resignation by Employee
for Good Reason, said notice must specify in reasonable detail the basis for such
resignation. A Notice of Termination given by Employee pursuant to Section 7(e)
shall be effective even if given after the receipt by Employee of notice that the
Board has set a meeting to consider terminating Employee for
Misconduct. Any purported termination for which a Notice of Termination is
required which is not effected pursuant to this Section 7(f) shall not be effective.

     (g) Date of Termination, Etc. “Date of Termination” shall mean the date
specified in the Notice of Termination, provided that the Date of Termination shall
be at least 15 days following the date the Notice of Termination is given.
Notwithstanding the foregoing, in the event Employee is terminated for Misconduct,
the Company

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may refuse to allow Employee access to the Company’s offices (other than
to allow Employee to collect his personal belongings under the Company’s supervision)
prior to the Date of Termination.

     (h) Mitigation. Employee shall not be required to mitigate the amount
of any payment provided for in this Section 7 by seeking other employment or
otherwise, nor shall the amount of any payment provided for in this Agreement be
reduced by any compensation earned by Employee as a result of employment by another
employer, except that any severance amounts payable to Employee pursuant to the
Company’s severance plan or policy for employees in general shall reduce the amount
otherwise payable pursuant to Sections 7(c)(i) or 7(e).

     (i) Excess Parachute Payments. Notwithstanding anything in this
Agreement to the contrary, to the extent that any payment or benefit received or to
be received by Employee hereunder in connection with the termination of Employee’s
employment would, as determined by tax counsel selected by the Company, constitute an
“Excess
Parachute Payment” (as defined in Section 280G of the Internal Revenue Code),
the Company shall fully “gross-up” such payment so that Employee is in the same “net”
after-tax position he would have been if such payment and gross-up payments had not
constituted Excess Parachute Payments.

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     8. Nondisclosure and Noncompetition. Employee agrees that, as part of the
consideration for this Agreement and as an integral part hereof, he has signed and agrees to be
bound by the Nondisclosure and Noncompetition Agreement attached hereto as Exhibit A, as well as
any subsequent addenda thereto.

     9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit
Employee’s continuing or future participation in any benefit, bonus, incentive, or other plan or
program provided by the Company or any of its affiliated companies and for which Employee may
qualify, nor shall anything herein limit or otherwise adversely affect such rights as Employee may
have under any Options with the Company or any of its affiliated companies.

     10. Assignability. The obligations of Employee hereunder are personal and may not be
assigned or delegated by him or transferred in any manner whatsoever, nor are such obligations
subject to involuntary alienation, assignment or transfer. The Company shall have the right to
assign this Agreement and to delegate all rights, duties and obligations hereunder, either in whole
or in part, to any parent, affiliate, successor or subsidiary organization or company of the
Company, so long as the obligations of the Company under this Agreement remain the obligations of
the Company.

     11. Notice. For the purpose of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed to the

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Company at its principal office
address, directed to the attention of the Board with a copy to the Secretary of the Company, and to
Employee at Employee’s residence address on the records of the Company or to such other address as
either party may have furnished to the other in writing in accordance herewith except that notice
of change of address shall be effective only upon receipt.

     12. Validity. The invalidity or unenforcability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

     13. Successors; Binding Agreement.

     (a) The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the Company
to obtain such agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle Employee to compensation from the Company
in the same amount and on the same terms as he would be entitled to hereunder if he
terminated his employment for Good Reason, except that for purposes of implementing
the foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination. As used herein,

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the term “Company” shall include any
successor to its business
and/or assets as aforesaid which executes and delivers the Agreement provided
for in this Section 13 or which otherwise becomes bound by all terms and provisions
of this Agreement by operation of law.

     (b) This Agreement and all rights of Employee hereunder shall inure to the
benefit of and be enforceable by Employee’s personal or legal representatives,
executors, administrators, successors, heirs distributees, devisees and legatees. if
Employee should die while any amounts would be payable to him hereunder if he had
continued to live, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to Employee’s devisee, legatee, or
other designee or, if there be no such designee, to Employee’s estate.

     14. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by
Employee and such officer as may be specifically authorized by the Board. No waiver by either party
hereto at any time of any breach by the other party hereto of, or in compliance with, any condition
or provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This
Agreement is an integration of the parties agreement; no agreement or representations, oral or
otherwise, express or

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implied, with respect to the subject matter hereof have been made by either
party, except those which are set forth expressly in this Agreement. THE VALIDITY, INTERPRETATION,
CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
LOUISIANA.

     15. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to ‘be an original but all of which together will constitute one and the same
instrument.

     16. Arbitration. Either party may elect that any dispute or controversy arising under
or in connection with this Agreement be settled by arbitration in Baton Rouge, Louisiana in
accordance with the rules of the American Arbitration Association then in effect. If the parties
cannot mutually agree on an arbitrator, then the arbitration shall be conducted by a three
arbitrator panel, with each party selecting one arbitrator and the two arbitrators so selected
selecting a third arbitrator. The findings of the arbitrator(s) shall be final and binding, and
judgment may be entered thereon in any court having Jurisdiction. The findings of the arbitrator(s)
shall not be subject to appeal to any court, except as otherwise provided by applicable law. The
arbitrator(s) may, in his or her (or their) own discretion, award legal fees and costs to the
prevailing party.

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     IN WITNESS WHEREOF, the parties have executed this Agreement on June 22, 2007, effective for
all purposes as provided above.

	 	 	 	 	 
	 	 	THE SHAW GROUP INC.
	 
	 	 	 	 
	 

	 	/s/ Gary P. Graphia	 	 
	 

	 	 	 	 
	 

	 	By: Gary P. Graphia, Executive Vice President	 	 

	 	 	 	 	 
	EMPLOYEE:
	 
	 	 	 	 
	Name:

	 	/s/ Clifton Rankin	 	 
	 

	 	 	 	 
	 

	 	Clifton Scott Rankin	 	 
	 

	 	Secretary and General Counsel	 	 

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THE SHAW GROUP INC.

NONDISCLOSURE AND NONCOMPETITION AGREEMENT

     This Nondisclosure and Noncompetition Agreement (“Agreement”) is made and entered into on the
date indicated below between The Shaw Group Inc. and any and all its affiliated companies, as set
forth in Exhibit A, (collectively, “the Company”) and Clifton Scott Rankin (“Executive”).

RECITALS

1. The Company desires to continue to employ Executive, and Executive desires to continue
employment with the Company, during which employment Executive shall perform those duties set forth
in his Employment Agreement as well as any other duties requested of him;

2. As part of Executive’s duties and responsibilities, Executive will have access to confidential
information of the Company and, by virtue of his employment with the Company, will have direct
contact with and will establish personal relationships with various customers of the Company; and

3. The Company and Executive recognize the Company’s need to protect the Company’s confidential and
proprietary interest in the Company’s business, business relationships, and the work product
produced by Executive on behalf of the Company in the course of Executive’s employment; and

4. As consideration, in part, for the Employment Agreement, Executive and the Company enter into
this Agreement.

     NOW, THEREFORE, Executive and Company agree as follows:

AGREEMENT

     Section 1. Confidentiality. Executive will not, during Executive’s employment or any
period thereafter, directly or indirectly, disclose or make available to any person, firm,
corporation, association or other entity, or use any “Confidential Information” for any reason or
purpose whatsoever, except as necessary in the course or performing Executive’s duties under his
Employment Agreement or unless otherwise required by court order, subpoena, or other

 

 

government or
legal process. For purposes of this section “ Confidential Information” shall mean information
disclosed to Executive or known by Executive as a consequence of or through Executive’s
relationship with the Company or its affiliates, about the Company’s and its affiliates’ customers,
employees, contractors, business methods, public relations methods, organization, pricing
information, plans, strategies, proposed bids, proposals, product information, procedures or
finances, including, without limitation, information of or relating to customers and customer
lists. Confidential Information shall not include any information that (i) was publicly known at
the time of disclosure to Executive; (ii) becomes publicly known or available thereafter other than
by any means in violation of this Agreement or any other duty owed to the Company by any person or
entity; or (iii) is lawfully disclosed to Executive by a third party. Upon termination of
Executive’s employment with the Company, regardless of the
reason, all Confidential Information in Executive’s possession, including copies, duplicates,
and electronic files, shall be returned to the Company and shall not be retained by Executive or
furnished to any third party.

     Section 2. Company Property. All personal property and equipment furnished to or
prepared by Executive in the course of or incident to Executive’s employment belong to the Company
and shall be promptly returned to the Company upon termination of Executive’s employment or at such
other time as the Company may request. Personal property includes, without limitation, all books,
manuals, records, reports, notes, contracts, lists, and other documents, electronic files, and all
other proprietary information relating to the business of the Company and/or its affiliates.
Following termination of employment, Executive will not retain any written or other tangible
material containing any proprietary information of the Company or any or all of its affiliates.

     Section 3. Non-Solicitation. At all times during Executive’s employment and for two
(2) years after the termination of Executive’s employment, Executive will not, directly or
indirectly, either on Executive’s own account or jointly with or as a manager, agent, officer,
employee, consultant, independent contractor, partner, joint venturer, owner, financier,
shareholder, or otherwise on behalf of any other person, firm, or corporation, offer employment to,
solicit, or attempt to solicit away from the Company or its affiliates any of their officers or
employees or offer employment to any person who, during the six (6) months immediately preceding
the date of such solicitation or offer, is or was an officer or employee of the Company or any of
its affiliates.

     Section 4. Covenant Not to Compete. As a condition of employment and in consideration
of the terms of the Employment Agreement pursuant to which this is being executed, Executive
acknowledges and agrees to the following:

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     Executive acknowledges that he is intimately involved in the management of the Company, its
expansion, and its acquisition or creation of the affiliated companies, as set forth in Exhibit A.
Executive acknowledges and agrees that the business of the Company is providing engineering,
construction, procurement, maintenance, environmental and infrastructure services1, and
pipe fabrication services, as more fully set forth on the Company’s Form 10-K dated October 31,
2006 (the “Form 10K”).

     Based on Executive’s high level in management of the Company and based on the knowledge,
information, and experience that the Executive has gained and will gain through his management
position in the Company and Executive’s ability to build a competing company engaging in some or
all of the services provided by the Company, Executive acknowledges that the scope of this
Agreement should be broad, both geographically and in the scope of conduct prohibited.

     Executive acknowledges that the Company now conducts business and provides services throughout
the United States to federal agencies, federally-owned facilities or federally-controlled political
subdivisions, state and local governments and political subdivisions, and domestic and non-domestic
commercial customers. Executive acknowledges that as of the date of this Agreement, the Company
delivers services through a network of over 180 locations, including approximately 22 international
locations and approximately 22 fabrication and manufacturing facilities. Executive acknowledges
and agrees that at the time of signing this agreement, the Company conducts business in the
geographic territory (the “Restricted Area”) set forth in Exhibit B. Executive agrees that the
Company may periodically revise the Restricted Area to reflect any changes in the geographic
territory in which the Company is conducting business. Executive agrees that as consideration for
the Employment Agreement, he agrees to sign addenda to this agreement which update the Restricted
Area to reflect geographic territories in which the Company conducts its business. Executive
agrees that the Company may periodically revise the description of the business of the Company to
reflect changes in the Company’s business. Executive also agrees that as consideration for the
Employment Agreement, he agrees to sign addenda to this Agreement which update the description of
the

 

			
	1	 	Environmental and infrastructure services include the
delivery of environmental restoration, regulatory compliance, facilities
management, emergency response, and design and construction services,
environmental consulting, engineering and construction services to
private-sector and state and local government customers. These environmental
services include complete life cycle management, construction management,
Operation and Maintenance (O&M) services, and environmental services including
emergency response and high hazard and toxic waste cleanups and on-site
remedial activities site selection, permitting, design, build, operation,
decontamination, demolition, remediation and redevelopment, identification of
contaminants in soil, air and water and the subsequent design and execution of
remedial solutions, project and facilities management and other related
services for non-environmental construction, watershed restoration, emergency
response services and outsourcing of privatization markets. These
Infrastructure services include program management, operations and maintenance
solutions to support and enhance domestic and global land, water and air
transportation systems, and commercial port and marine facilities.

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business of the Company to coincide with the description of the business of the Company as set
forth in the Company’s current Form 10-K.

     Executive agrees that at all times during Executive’s employment with the Company and for two
(2) years after termination (whether voluntary or not) of Executive’s employment with the Company,
Executive shall not, directly or indirectly, whether personally or through agents, associates, or
co-workers, whether individually or in connection with any corporation, partnership, or other
business entity, and whether as an employee, owner, partner, financier, joint venturer,
shareholder, officer, manager, agent, independent contractor, consultant, or otherwise, establish,
carry on, or engage in a business similar to that of the Company or any of its affiliates, in the
Restricted Area, as defined in Exhibit B, attached. This prohibition includes, without limitation,
that Executive will not perform the following in the Restricted Area:

     (a) Solicit or provide, directly or indirectly, engineering, construction, procurement,
maintenance, Environmental, and pipe fabrication services, or any of these, to any persons or
entities who are or were customers of the Company or any of its affiliates at any time prior to
Executive’s separation from employment;

     (b) Establish, own, become employed with, consult on business matters with, or participate in
any way in a business engaged in engineering, construction, procurement maintenance, Environmental,
and pipe fabrication services, or any of these, except to the extent that the Company or any of its
affiliates do not provide the same type of services as such business provides; and

     (c) Provide consulting services for, invest in, become employed by, or otherwise become
associated from a business perspective with competitors of the Company or any of its affiliates,
including but not limited to Jacobs Engineering Group Inc.; Fluor Corporation; URS
Corporation; Halliburton; Turner Industries Group, L.L.C.; Bechtel Group, Inc.; KBR, Inc.; Chicago
Bridge & Iron Company N.V.; CH2M Hill; Black & Veatch Corporation; Foster Wheeler Ltd.; and
Washington Group International, Inc., or any of their respective subsidiaries, parent companies,
affiliates, or successors.

This prohibition does not prohibit Executive from engaging in a business solely within an area or
areas not contained in the Restricted Area, so long as that business does not provide in the
Restricted Area the same or similar services or conduct the same or similar business as the Company
or its affiliates. Notwithstanding the foregoing, Executive shall not be prohibited from owning or
investing in publicly-traded debt or equity securities of any competitor of the Company or any
other entity, provided that in the case of a competitor described in clause (c)

- Page 4 of 8 -

 

 above, such
ownership or investment does not equal or exceed 5% of the issued and outstanding amount of the
debt or equity securities of said competitor.

     Executive acknowledges that the business of the Company is extremely competitive in nature,
that the remedy at law for any breach of this covenant will be inadequate, and that in the event of
a breach the Company shall be entitled to injunctive relief and specific performance, as well as
any and all other remedies at law or in equity to which the Company is entitled. Executive
acknowledges that the provisions contained in this Section are reasonable and valid in all respects
and are a reasonable and necessary protection of the legitimate interests of the Company and that
any violation of these provisions would cause substantial injury to the Company.

     Section 5. Miscellaneous Provisions.

     (a) Employment Rights. This Agreement shall not be deemed to confer upon Executive
any right to continue in the employ of the Company for any period or any right to continue
employment at Executive’s present or any other rate of compensation.

     (b) Amendment. This Agreement may only be amended or modified in a writing executed
by both the Company and Executive. No oral waivers or extensions shall be binding on the parties.

     (c) Waiver. No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement,
except by written instrument signed by the party charged with such waiver or estoppel. No such
written waiver shall be deemed a continuing waiver unless specifically stated therein, and each
such waiver shall operate only as to the specific term or condition waived and shall not constitute
a waiver of such term or condition for the future or as to any other act other than that
specifically waived.

     (d) Injunctive Relief and Arbitration. Executive and the Company each acknowledge
that the provisions of Sections 1, 3, and 4 are reasonable and necessary, that the damages that
would be suffered as a result of a breach or threatened breach by Executive of Sections 1, 3, and 4
may not be calculable, and that the award of a money judgment to the Company for such a breach or
threatened breach thereof by Executive would be an inadequate remedy. Consequently, Executive
expressly consents and agrees that the Company may, in

- Page 5 of 8 -

 

addition to any other available remedies
that the
Company may be entitled in law or in equity, enforce the provisions of Sections 1, 3, and/or 4
by injunctive or other equitable relief, including a temporary and/or permanent injunction (without
proving a breach thereof), to prevent unfair competition, the use and/or unauthorized disclosure of
trade secrets or confidential information, and/or the unauthorized solicitation of the Company’s
officers, employees, and customers. The Company shall not be obligated to post bond or other
security in seeking such relief.

     (e) Arbitration. Executive and the Company agree that any dispute regarding the
covenants herein and/or the validity of this Agreement and its addenda, if any, shall be resolved
through arbitration. Given the recitals set forth in Section 4 above, Executive and the Company
hereby expressly acknowledge that Executive’s position in the Company, and the Company’s business,
have a substantial impact on interstate commerce; and further, that Executive’s development and
involvement with the Company, and the Company’s business, have a national and international
territorial scope commercially. Thus, any arbitration-related matter or arbitration proceeding of
a dispute regarding the covenants herein and/or the validity of this Agreement and its addenda,
shall be governed, heard, and decided under the provisions and the authority of the Federal
Arbitration Act, 9 U.S.C.A. § 1 et seq., and shall be submitted for arbitration to the office of
the American Arbitration Association in New Orleans, Louisiana, on demand of either party.

     Such arbitration proceedings shall be conducted in New Orleans, Louisiana, and shall be
conducted in accordance with the then-current Employment Arbitration Rules and Mediation Procedures
of the American Arbitration Association, with the exception that the Executive expressly waives the
right to request interim measures or injunctive relief from a judicial authority. Executive
acknowledges that the Company alone retains the right to seek injunctive relief from a judicial
authority based on the nature of this Agreement and in furtherance of the terms of Section 5(d)
above. Each party shall have the right to be represented by counsel or other designated
representatives. The arbitrator shall have the right to award or include in his or her award any
relief that he or she deems proper under the circumstances, including, without limitation, all
types of relief that could be awarded by a court of law, such as money damages, (with interest on
unpaid amounts from date due), specific performance, and injunctive relief. The arbitrator shall
issue a written opinion explaining the reasons for his or her decision and award. The award and
decision of the arbitrator shall be conclusive and binding upon both parties, and judgment upon the
award may be entered in any court of competent jurisdiction. The parties acknowledge and agree
that any arbitration award may be enforced against either or both of them in a court of competent
jurisdiction and each waives any right to contest the validity or enforceability of such award.
The parties further agree to be bound by the provisions of any statute of limitations that would be
otherwise applicable to the controversy, dispute, or claim that is the subject of any arbitration
proceeding initiated hereunder. Without limiting the foregoing, the parties shall be entitled in
any such arbitration proceeding to the entry of an order by a court of competent jurisdiction
pursuant to a decision of the arbitrator for specific performance of any of the requirements of
this Agreement. The provisions of this Section 5(e) shall survive and continue in full force and
effect subsequent to and notwithstanding expiration or termination of this Agreement for any
reason. Executive agrees to pay arbitration fees in an amount not to exceed the amount required to
file a lawsuit in a court of law. The Company agrees to pay the remaining amount of arbitration
fees. Executive and the Company acknowledge and agree that any and all rights they may have to
resolve their claims by a jury trial are hereby expressly

- Page 6 of 8 -

 

waived. The provisions of this Section
5(e) do not preclude Executive from filing a complaint with any federal, state, or other
governmental administrative agency, if at all applicable. The provisions of this Section 5(e)
supersede any conflicting provision contained in any Employment Agreement or other agreement
between Executive and the Company.

     (f) Governing Law. This Agreement, and the rights and obligations of the parties
hereto, shall be governed by and construed in accordance with the laws of the State of Louisiana.
This provision supersedes any conflicting provision contained in any Employment Agreement or other
agreement between Executive and the Company.

     (g) Assignment. This Agreement may not be assigned by Executive, but may be assigned
by the Company to any successor to its business and will inure to the benefit and be binding upon
any such successor. This Agreement shall be binding upon the parties hereto, together with their
respective executors, administrators, personal representatives, and heirs, and, in the case of the
Company, permitted successors and assigns.

     (h) Severability. Each provision of this Agreement is intended to be severable. If
any term or provision of this Agreement is illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the validity or legality of the remainder of this
Agreement.

     (i) Reformation. It is the intention of the parties that if any court or arbitrator(s)
shall determine that any provision of this Agreement, including the scope, duration, or
geographical limit of any provision, is unenforceable, the provision in question and this Agreement
shall not be invalidated but shall be deemed reformed or amended only to the extent necessary to
render the provision and Agreement valid and enforceable.

     (j) Headings. The headings contained in this Agreement are for reference purposes
only and shall not in any way affect the meaning or interpretation of this Agreement.

     (k) Consent. Executive acknowledges that he has reviewed the provisions of this
Agreement carefully and has been given an opportunity to ask questions of the Company. He
acknowledges that he has had ample opportunity to consult with an attorney of his choice (at his
expense) prior to signing this Agreement and that he knowingly consents to the terms
herein.

- Page 7 of 8 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 22 day of June,
2007.

	 	 	 	 	 	 	 
	COMPANY:

	 	 	 	EXECUTIVE:
	 	 
	 
	 	 	 	 	 	 
	The Shaw Group Inc. and
	 	 	 	 	 	 
	its affiliates listed on Exhibit A:

	 	 	 	/s/ Clifton Rankin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Clifton Scott Rankin	 	 
	 
	 	 	 	 	 	 
	By:       Gary P. Graphia
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Gary P. Graphia
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:     Executive Vice President
	 	 	 	 	 	 

- Page 8 of 8 -

 

EXHIBIT A

THE SHAW GROUP INC.®

GREATER THAN 50% OWNED

SUBSIDIARIES

(Updated as of October 10, 2006)

	1.	 	ACL Piping, Inc.
	 
	2.	 	Aiton & Co Limited
	 
	3.	 	American Plastic Pipe and Supply, L.L.C.
	 
	4.	 	Arlington Avenue E Venture, LLC
	 
	5.	 	Associated Valve, Inc.
	 
	6.	 	Badger® Technologies, L.L.C.
	 
	7.	 	Badger® Technology Holdings, L.L.C.
	 
	8.	 	Benicia North Gateway II, L.L.C.
	 
	9.	 	B.F. Shaw, Inc.
	 
	10.	 	Camden Road Venture, LLC
	 
	11.	 	C.B.P. Engineering Corp.
	 
	12.	 	Chimento Wetlands, L.L.C.
	 
	13.	 	Coastal Estuary Services, L.L.C.
	 
	14.	 	Cojafex B.V.
	 
	15.	 	Eagle Industries, Inc.
	 
	16.	 	EDS Equipment Company, LLC
	 
	17.	 	EDS Puerto Rico, Inc.
	 
	18.	 	EMCON/OWT, Inc.
	 
	19.	 	Envirogen, Inc.

1

 

	20.	 	Field Services Canada Inc.
	 
	21.	 	Field Services, Inc.
	 
	22.	 	GBB International, LLC
	 
	23.	 	GBB Maintenance Company, Inc.
	 
	24.	 	Gottlieb, Barnett & Bridges, LLC
	 
	25.	 	Great Southwest Parkway Venture, LLC
	 
	26.	 	Gulf Coast Equipment Rental, Inc.
	 
	27.	 	HL Newhall II, L.L.C.
	 
	28.	 	Holdings Manufacturas Shaw South America, C.A.
	 
	29.	 	Hydro Power Solutions LLC
	 
	30.	 	Integrated Site Solutions, L.L.C.
	 
	31.	 	International Consultants, L.L.C. (f/k/a SWINC Acquisition Five, L.L.C.)
	 
	32.	 	IT Holdings Canada, Inc.
	 
	33.	 	Jernee Mill Road, L.L.C.
	 
	34.	 	Kato Road II, L.L.C.
	 
	35.	 	KIP I, L.L.C.
	 
	36.	 	LandBank Baker, L.L.C.
	 
	37.	 	LandBank Properties, L.L.C.
	 
	38.	 	LFG Specialties, L.L.C.
	 
	39.	 	Lone Star Fabricators, Inc.
	 
	40.	 	Manufacturas Shaw South America, C.A.
	 
	41.	 	Millstone River Wetland Services, L.L.C.
	 
	42.	 	MWR, Inc.

2

 

	43.	 	Norwood Venture I, L.L.C.
	 
	44.	 	Nuclear Energy Holdings, L.L.C.
	 
	45.	 	Nuclear Technology Solutions, L.L.C.
	 
	46.	 	Otay Mesa Ventures II, L.L.C.
	 
	47.	 	Pacific Support Group LLC
	 
	48.	 	Pike Properties I, Inc. (Formerly, SAON Properties, Inc.)
	 
	49.	 	Pike Properties II, Inc. (Formerly, Secorp, Inc.)
	 
	50.	 	Pipework Engineering and Developments Limited
	 
	51.	 	Plattsburg Venture, L.L.C.
	 
	52.	 	Power Technologies Asia-Pacific Sdn. Bhd.
	 
	53.	 	Prospect Industries (Holdings), Inc.
	 
	54.	 	PT Stone & Webster Indonesia
	 
	55.	 	Raritan Venture I, L.L.C.
	 
	56.	 	S C Woods, L.L.C.
	 
	57.	 	SELS Administrative Services, L.L.C.
	 
	58.	 	Shaw-ABMB, L.L.C.
	 
	59.	 	Shaw A/DE, Inc.
	 
	60.	 	Shaw Aiton Australia Pty Limited
	 
	61.	 	Shaw Alaska, Inc.
	 
	62.	 	Shaw Alloy Piping Products, Inc.
	 
	63.	 	Shaw Americas, L.L.C.
	 
	64.	 	Shaw Beale Housing, L.L.C.
	 
	65.	 	Shaw Beneco, Inc.

3

 

	66.	 	Shaw California, L.L.C.
	 
	67.	 	Shaw Capital, Inc.
	 
	68.	 	Shaw Capital (Nevada), Inc.
	 
	69.	 	Shaw CENTCOM Services, L.L.C.
	 
	70.	 	Shaw CMS, Inc.
	 
	71.	 	Shaw Coastal, Inc.
	 
	72.	 	Shaw Connex, Inc.
	 
	73.	 	Shaw Constructors, Inc.
	 
	74.	 	Shaw Dunn Limited
	 
	75.	 	Shaw E & I International Ltd.
	 
	76.	 	Shaw E & I Investment Holdings, Inc.
	 
	77.	 	Shaw Energy Delivery Services, Inc.
	 
	78.	 	Shaw Energy Services, Inc.
	 
	79.	 	Shaw Environmental, Inc.
	 
	80.	 	Shaw Environmental International, Inc.
	 
	81.	 	Shaw Environmental & Infrastructure, Inc.
	 
	82.	 	Shaw Environmental & Infrastructure Massachusetts, Inc.
	 
	83.	 	Shaw Environmental Liability Solutions, L.L.C.
	 
	84.	 	Shaw Europe, Inc. (f/k/a Shaw E & I Russia, Inc.)
	 
	85.	 	Shaw Export Company, S. de R. L. de C.V.
	 
	86.	 	Shaw Fabricators, Inc.
	 
	87.	 	Shaw Facilities, Inc.
	 
	88.	 	Shaw Field Services, Inc.

4

 

	89.	 	Shaw Fronek Company (FCI), Inc.
	 
	90.	 	Shaw Fronek Power Services, Inc.
	 
	91.	 	Shaw Ft. Leonard Wood Housing, L.L.C.
	 
	92.	 	Shaw Global, L.L.C.
	 
	93.	 	Shaw Global Energy Services, Inc.
	 
	94.	 	Shaw Group Australia Pty Limited
	 
	95.	 	Shaw Group UK Holdings
	 
	96.	 	Shaw Group UK International Services Ltd.

	 
	97.	 	Shaw Group UK Limited
	 
	98.	 	Shaw GRP of California
	 
	99.	 	Shaw Hanscom Housing, L.L.C.
	 
	100.	 	Shaw Heat Treating Service, C.A.
	 
	101.	 	Shaw Home Louisiana, Inc.
	 
	102.	 	Shaw Industrial Supply Co., Inc.
	 
	103.	 	Shaw Infrastructure, Inc.
	 
	104.	 	Shaw Intellectual Property Holdings, Inc.
	 
	105.	 	Shaw International, Inc.
	 
	106.	 	Shaw International, Ltd. (Formerly, Shaw Caribbean (Cayman), Ltd.)
	 
	107.	 	Shaw International Management Services One, Inc.
	 
	108.	 	Shaw International Management Services Two, Inc.
	 
	109.	 	Shaw JV Holdings, L.L.C.
	 
	110.	 	Shaw Lancas, C.A.
	 
	111.	 	Shaw Liquid Solutions LLC

5

 

	112.	 	Shaw Little Rock Housing, L.L.C.
	 
	113.	 	Shaw Maintenance, Inc.
	 
	114.	 	Shaw Managed Services, Inc.
	 
	115.	 	Shaw Management Services One, Inc.
	 
	116.	 	Shaw Manufacturing and Services, Inc.
	 
	117.	 	Shaw Manpower, S. de R.L. de C.V.
	 
	118.	 	Shaw Mexican Holdings, S. de R.L. de C.V.
	 
	119.	 	Shaw Mexico, L.L.C.
	 
	120.	 	Shaw Morgan City Terminal, Inc.
	 
	121.	 	Shaw NAPTech, Inc.
	 
	122.	 	Shaw Northeast Housing, L.L.C.
	 
	123.	 	Shaw Northwest Housing, L.L.C.
	 
	124.	 	Shaw Nuclear Energy Holdings (UK), Inc.
	 
	125.	 	Shaw Nuclear Energy Holdings (US), Inc.
	 
	126.	 	Shaw Overseas (Far East) Ltd.
	 
	127.	 	Shaw Overseas (Middle East) Ltd.
	 
	128.	 	Shaw Pipe Shields, Inc.
	 
	129.	 	Shaw Pipe Supports, Inc.
	 
	130.	 	Shaw Power Delivery Systems, Inc.
	 
	131.	 	Shaw Power Services Group, L.L.C.
	 
	132.	 	Shaw Power Services, Inc.
	 
	133.	 	Shaw Power Technologies, Inc.TM (formerly Power Technologies, Inc.®)
	 
	134.	 	Shaw Power Technologies International LimitedTM

6

 

	135.	 	Shaw Process and Industrial Group, Inc.
	 
	136.	 	Shaw Process Fabricators, Inc.
	 
	137.	 	Shaw Project Services Group, Inc.
	 
	138.	 	Shaw Property Holdings, Inc.
	 
	139.	 	Shaw Remediation Services, L.L.C.
	 
	140.	 	Shaw-Robotic Environmental Services, L.L.C.
	 
	141.	 	Shaw Services, L.L.C.
	 
	142.	 	Shaw SSS Fabricators, Inc.
	 
	143.	 	Shaw Stone & Webster Arabia Co., Ltd.
	 
	144.	 	Shaw Stone & Webster Puerto Rico, Inc.
	 
	145.	 	Shaw Sunland Fabricators, Inc.
	 
	146.	 	Shaw Trading FSC, Ltd.
	 
	147.	 	Shaw Transmission & Distribution Services, Inc. (formerly, Shaw Management Services Six, Inc.)
	 
	148.	 	Shaw Tulsa Fabricators, Inc. (f/k/a Shaw Word Industries Fabricators, Inc.)
	 
	149.	 	Shaw Waste Solutions, LLC
	 
	150.	 	So-Glen Gas Co., LLC
	 
	151.	 	Stone & Webster Asia, Inc.
	 
	152.	 	Stone & Webster Canada Holding One (N.S.), ULC
	 
	153.	 	Stone & Webster Canada Holding Two, Inc.
	 
	154.	 	Stone & Webster Canada L.P.
	 
	155.	 	Stone & Webster Construction, Inc.
	 
	156.	 	Stone & Webster Construction Services, L.L.C.
	 
	157.	 	Stone & Webster Consultants Limited

7

 

	158.	 	Stone & Webster Engineering Projects Private Limited
	 
	159.	 	Stone & Webster Engineering Services Sdn. Bdh.
	 
	160.	 	Stone & Webster Holding One, Inc.
	 
	161.	 	Stone & Webster Holding Two, Inc.
	 
	162.	 	Stone & Webster, Inc.
	 
	163.	 	Stone & Webster Insaat ve Muhendislik Limited Sirketi
	 
	164.	 	Stone & Webster International B.V.
	 
	165.	 	Stone & Webster International, Inc.
	 
	166.	 	Stone & Webster International Holdings, Inc.
	 
	167.	 	Stone & Webster — JSC Management Consultants, Inc.
	 
	168.	 	Stone & Webster Limited
	 
	169.	 	Stone & Webster Management Consultants, Inc.
	 
	170.	 	Stone & Webster Massachusetts, Inc.
	 
	171.	 	Stone & Webster Michigan, Inc.
	 
	172.	 	Stone & Webster Purchasing, Inc.
	 
	173.	 	Stone & Webster Process Technologies B.V.
	 
	174.	 	Stone & Webster Process Technology, Inc.
	 
	175.	 	Stone & Webster Services, L.L.C.
	 
	176.	 	Sugar Acquisition (NVDIP), Inc.
	 
	177.	 	The LandBank Group, Inc.
	 
	178.	 	The Shaw Group Inc. Political Action Committee, Inc.
	 
	179.	 	The Shaw Group International Inc.
	 
	180.	 	The Shaw Group UK Pension Plan Limited

8

 

	181.	 	The Shaw Group UK 1997 Pension Scheme Limited
	 
	182.	 	The Shaw Group UK 2001 Pension Plan Limited
	 
	183.	 	Whessoe Piping Systems Limited
	 
	184.	 	Whippany Venture I, L.L.C.
	 
	185.	 	Worldwide Industrial Constructors, Inc.

9

 

EXHIBIT B

RESTRICTED AREA

ALASKA

Aleutians East

Aleutians West

Anchorage

Bethel

Bristol Bay

Denali

Dillingham

Fairbanks North Star

Haines

Juneau

Kenai Peninsula

Ketchikan Gateway

Kodiak Island

Lake and Peninsula

Matanuska-Susitna

Nome

North Slope

Northwest Arctic

Prince of Wales-Outer Ketchikan

Sitka

Skagway-Hoonah-Angoon

Southeast Fairbanks

Valdez-Cordova

Wade Hampton

Wrangell-Petersburg

Yakutat

Yukon-Koyukuk

ALABAMA

Autauga

Baldwin

Barbour

Bibb

Blount

Bullock

Butler

Calhoun

Chambers

Cherokee

Chilton

Choctaw

 Clarke

Clay

Cleburne

Coffee

Colbert

Conecuh

 

 

Coosa

Covington

Crenshaw

Cullman

Dale

Dallas

De Kalb

Elmore

Escambia

Etowah

Fayette

Franklin

Geneva

Greene

Hale

Henry

Houston

Jackson

Jefferson

Lamar

Lauderdale

Lawrence

Lee

Limestone

Lowndes

Macon

Madison

Marengo

Marion

Marshall

Mobile

Monroe

Montgomery

Morgan

Perry

Pickens

Pike

Randolph

Russell

St. Clair

Shelby

Sumter

Talladega

Tallapoosa

Tuscaloosa

Walker

Washington

Wilcox

Winston

ARIZONA

Apache

Cochise

Coconino

Gila

Graham

Greenlee

La Paz

Maricopa

Mohave

Navajo

Pima

Pinal

Santa Cruz

Yavapai

Yuma

- 2 -

 

ARKANSAS

Arkansas

Ashley

Baxter

Benton

Boone

Bradley

Calhoun

Carroll

Chicot

Clark

Clay

Cleburne

Cleveland

Columbia

Conway

Craighead

Crawford

Crittenden

Cross

Dallas

Desha

Drew

Faulkner

Franklin

Fulton

Garland

Grant

Greene

Hempstead

Hot Spring

Howard

Independence

Izard

Jackson

Jefferson

Johnson

Lafayette

Lawrence

Lee

Lincoln

Little River

Logan

Lonoke

Madison

Marion

Miller

Mississippi

Monroe

Montgomery

Nevada

Newton

Ouachita

Perry

Phillips

Pike

Poinsett

Polk

Pope

Prairie

Pulaski

Randolph

St. Francis

Saline

- 3 -

 

Scott

Searcy

Sebastian

Sevier

Sharp

Stone

Union

Van Buren

Washington

White

Woodruff

Yell

CALIFORNIA

Alameda

Alpine

Amador

Butte

Calaveras

Colusa

Contra Costa

Del Norte

El Dorado

Fresno

Glenn

Humboldt

Imperial

Inyo

Kern

Kings

Lake

Lassen

Los Angeles

Madera

Marin

Mariposa

Mendocino

Merced

Modoc

Mono

Monterey

Napa

Nevada

Orange

Placer

Plumas

Riverside

Sacramento

San Benito

San Bernardino

San Diego

San Francisco

San Joaquin

San Luis Obispo

San Mateo

Santa Barbara

Santa Clara

Santa Cruz

Shasta

Sierra

Siskiyou

Solano

Sonoma

Stanislaus

Sutter

- 4 -

 

Tehama

Trinity

Tulare

Tuolumne

Ventura

Yolo

Yuba

COLORADO

Adams

Alamosa

Arapahoe

Archuleta

Baca

Bent

Boulder

Broomfield

Chaffee

Cheyenne

Clear Creek

Conejos

Costilla

Crowley

Custer

Delta

Denver

Dolores

Douglas

Eagle

Elbert

El Paso

Fremont

Garfield

Gilpin

Grand

Gunnison

Hinsdale

Huerfano

Jackson

Jefferson

Kiowa

Kit Carson

Lake

La Plata

Larimer

Las Animas

Lincoln

Logan

Mesa

Mineral

Moffat

Montezuma

Montrose

Morgan

Otero

Ouray

Park

Phillips

Pitkin

Prowers

Pueblo

Rio Blanco

Rio Grande

Routt

Saguache

San Juan

- 5 -

 

San Miguel

Sedgwick

Summit

Teller

Washington

Weld

Yuma

CONNECTICUT

Fairfield

Hartford

Litchfield

Middlesex

New Haven

New London

Tolland

Windham

DISTRICT OF COLUMBIA

District of Columbia

DELAWARE

Kent

New Castle

Sussex

FLORIDA

Alachua

Baker

Bay

- 6 -

 

Bradford

Brevard

Broward

Calhoun

Charlotte

Citrus

Clay

Collier

Columbia

De Soto

Dixie

Duval

Escambia

Flagler

Franklin

Gadsden

Gilchrist

Glades

Gulf

Hamilton

Hardee

Hendry

Hernando

Highlands

Hillsborough

Holmes

Indian River

Jackson

Jefferson

Lafayette

Lake

Lee

Leon

Levy

Liberty

Madison

Manatee

Marion

Martin

Miami-Dade

Monroe

Nassau

Okaloosa

Okeechobee

Orange

Osceola

Palm Beach

Pasco

Pinellas

Polk

Putnam

St. Johns

St. Lucie

Santa Rosa

Sarasota

Seminole

Sumter

Suwannee

Taylor

Union

Volusia

Wakulla

Walton

Washington

- 7 -

 

GEORGIA

Appling

Atkinson

Bacon

Baker

Baldwin

Banks

Barrow

Bartow

Ben Hill

Berrien

Bibb

Bleckley

Brantley

Brooks

Bryan

Bulloch

Burke

Butts

Calhoun

Camden

Candler

Carroll

Catoosa

Charlton

Chatham

Chattahoochee

Chattooga

Cherokee

Clarke

Clay

Clayton

Clinch

Cobb

Coffee

Colquitt

Columbia

Cook

Coweta

Crawford

Crisp

Dade

Dawson

Decatur

De Kalb

Dodge

Dooly

Dougherty

Douglas

Early

Echols

Effingham

Elbert

Emanuel

Evans

Fannin

Fayette

Floyd

Forsyth

Franklin

Fulton

Gilmer

Glascock

Glynn

Gordon

Grady

Greene

Gwinnett

Habersham

Hall

Hancock

Haralson

Harris

- 8 -

 

Hart

Heard

Henry

Houston

Irwin

Jackson

Jasper

Jeff Davis

Jefferson

Jenkins

Johnson

Jones

Lamar

Lanier

Laurens

Lee

Liberty

Lincoln

Long

Lowndes

Lumpkin

McDuffie

McIntosh

Macon

Madison

Marion

Meriwether

Miller

Mitchell

Monroe

Montgomery

Morgan

Murray

Muscogee

Newton

Oconee

Oglethorpe

Paulding

Peach

Pickens

Pierce

Pike

Polk

Pulaski

Putnam

Quitman

Rabun

Randolph

Richmond

Rockdale

Schley

Screven

Seminole

Spalding

Stephens

Stewart

Sumter

Talbot

Taliaferro

Tattnall

Taylor

Telfair

Terrell

Thomas

Tift

Toombs

Towns

Treutlen

Troup

Turner

Twiggs

Union

Upson

Walker

Walton

- 9 -

 

Ware

Warren

Washington

Wayne

Webster

Wheeler

White

Whitfield

Wilcox

Wilkes

Wilkinson

Worth

HAWAII

Hawaii

Honolulu

Kalawao

Kauai

Maui

IOWA

Adair

Adams

Allamakee

Appanoose

Audubon

Benton

Black Hawk

Boone

Bremer

Buchanan

Buena Vista

Butler

Calhoun

Carroll

Cass

Cedar

Cerro Gordo

Cherokee

Chickasaw

Clarke

Clay

Clayton

Clinton

Crawford

Dallas

Davis

Decatur

Delaware

Des Moines

Dickinson

Dubuque

Emmet

Fayette

- 10 -

 

Floyd

Franklin

Fremont

Greene

Grundy

Guthrie

Hamilton

Hancock

Hardin

Harrison

Henry

Howard

Humboldt

Ida

Iowa

Jackson

Jasper

Jefferson

Johnson

Jones

Keokuk

Kossuth

Lee

Linn

Louisa

Lucas

Lyon

Madison

Mahaska

Marion

Marshall

Mills

Mitchell

Monona

Monroe

Montgomery

Muscatine

O’Brien

Osceola

Page

Palo Alto

Plymouth

Pocahontas

Polk

Pottawattamie

Poweshiek

Ringgold

Sac

Scott

Shelby

Sioux

Story

Tama

Taylor

Union

Van Buren

Wapello

Warren

Washington

Wayne

Webster

Winnebago

Winneshiek

Woodbury

Worth

Wright

IDAHO

- 11 -

 

Ada

Adams

Bannock

Bear Lake

Benewah

Bingham

Blaine

Boise

Bonner

Bonneville

Boundary

Butte

Camas

Canyon

Caribou

Cassia

Clark

Clearwater

Custer

Elmore

Franklin

Fremont

Gem

Gooding

Idaho

Jefferson

Jerome

Kootenai

Latah

Lemhi

Lewis

Lincoln

Madison

Minidoka

Nez Perce

Oneida

Owyhee

Payette

Power

Shoshone

Teton

Twin Falls

Valley

Washington

ILLINOIS

Adams

Alexander

Bond

Boone

Brown

Bureau

Calhoun

Carroll

Cass

Champaign

Christian

Clark

Clay

Clinton

Coles

- 12 -

 

Cook

Crawford

Cumberland

DeKalb

De Witt

Douglas

DuPage

Edgar

Edwards

Effingham

Fayette

Ford

Franklin

Fulton

Gallatin

Greene

Grundy

Hamilton

Hancock

Hardin

Henderson

Henry

Iroquois

Jackson

Jasper

Jefferson

Jersey

Jo Daviess

Johnson

Kane

Kankakee

Kendall

Knox

Lake

La Salle

Lawrence

Lee

Livingston

Logan

McDonough

McHenry

McLean

Macon

Macoupin

Madison

Marion

Marshall

Mason

Massac

Menard

Mercer

Monroe

Montgomery

Morgan

Moultrie

Ogle

Peoria

Perry

Piatt

Pike

Pope

Pulaski

Putnam

Randolph

Richland

Rock Island

St. Clair

Saline

Sangamon

Schuyler

Scott

Shelby

Stark

Stephenson

Tazewell

- 13 -

 

Union

Vermilion

Wabash

Warren

Washington

Wayne

White

Whiteside

Will

Williamson

Winnebago

Woodford

INDIANA

Adams

Allen

Bartholomew

Benton

Blackford

Boone

Brown

Carroll

Cass

Clark

Clay

Clinton

Crawford

Daviess

Dearborn

Decatur

De Kalb

Delaware

Dubois

Elkhart

Fayette

Floyd

Fountain

Franklin

Fulton

Gibson

Grant

Greene

Hamilton

Hancock

Harrison

Hendricks

Henry

Howard

Huntington

Jackson

Jasper

Jay

Jefferson

Jennings

Johnson

Knox

Kosciusko

Lagrange

Lake

La Porte

Lawrence

Madison

Marion

Marshall

Martin

- 14 -

 

Miami

Monroe

Montgomery

Morgan

Newton

Noble

Ohio

Orange

Owen

Parke

Perry

Pike

Porter

Posey

Pulaski

Putnam

Randolph

Ripley

Rush

St. Joseph

Scott

Shelby

Spencer

Starke

Steuben

Sullivan

Switzerland

Tippecanoe

Tipton

Union

Vanderburgh

Vermillion

Vigo

Wabash

Warren

Warrick

Washington

Wayne

Wells

White

Whitley

KANSAS

Allen

Anderson

Atchison

Barber

Barton

Bourbon

Brown

Butler

Chase

Chautauqua

Cherokee

Cheyenne

Clark

Clay

Cloud

Coffey

Comanche

Cowley

Crawford

Decatur

Dickinson

- 15 -

 

Doniphan

Douglas

Edwards

Elk

Ellis

Ellsworth

Finney

Ford

Franklin

Geary

Gove

Graham

Grant

Gray

Greeley

Greenwood

Hamilton

Harper

Harvey

Haskell

Hodgeman

Jackson

Jefferson

Jewell

Johnson

Kearny

Kingman

Kiowa

Labette

Lane

Leavenworth

Lincoln

Linn

Logan

Lyon

McPherson

Marion

Marshall

Meade

Miami

Mitchell

Montgomery

Morris

Morton

Nemaha

Neosho

Ness

Norton

Osage

Osborne

Ottawa

Pawnee

Phillips

Pottawatomie

Pratt

Rawlins

Reno

Republic

Rice

Riley

Rooks

Rush

Russell

Saline

Scott

Sedgwick

Seward

Shawnee

Sheridan

Sherman

Smith

Stafford

Stanton

Stevens

Sumner

- 16 -

 

Thomas

Trego

Wabaunsee

Wallace

Washington

Wichita

Wilson

Woodson

Wyandotte

KENTUCKY

Adair

Allen

Anderson

Ballard

Barren

Bath

Bell

Boone

Bourbon

Boyd

Boyle

Bracken

Breathitt

Breckinridge

Bullitt

Butler

Caldwell

Calloway

Campbell

Carlisle

Carroll

Carter

Casey

Christian

Clark

Clay

Clinton

Crittenden

Cumberland

Daviess

Edmonson

Elliott

Estill

Fayette

Fleming

Floyd

Franklin

Fulton

Gallatin

Garrard

Grant

Graves

Grayson

Green

Greenup

Hancock

Hardin

Harlan

Harrison

Hart

Henderson

Henry

Hickman

Hopkins

- 17 -

 

Jackson

Jefferson

Jessamine

Johnson

Kenton

Knott

Knox

Larue

Laurel

Lawrence

Lee

Leslie

Letcher

Lewis

Lincoln

Livingston

Logan

Lyon

McCracken

McCreary

McLean

Madison

Magoffin

Marion

Marshall

Martin

Mason

Meade

Menifee

Mercer

Metcalfe

Monroe

Montgomery

Morgan

Muhlenberg

Nelson

Nicholas

Ohio

Oldham

Owen

Owsley

Pendleton

Perry

Pike

Powell

Pulaski

Robertson

Rockcastle

Rowan

Russell

Scott

Shelby

Simpson

Spencer

Taylor

Todd

Trigg

Trimble

Union

Warren

Washington

Wayne

Webster

Whitley

Wolfe

Woodford

- 18 -

 

LOUISIANA

Acadia

Allen

Ascension

Assumption

Avoyelles

Beauregard

Bienville

Bossier

Caddo

Calcasieu

Caldwell

Cameron

Catahoula

Claiborne

Concordia

De Soto

East Baton Rouge

East Carroll

East Feliciana

Evangeline

Franklin

Grant

Iberia

Iberville

Jackson

Jefferson

Jefferson Davis

Lafayette

Lafourche

La Salle

Lincoln

Livingston

Madison

Morehouse

Natchitoches

Orleans

Ouachita

Plaquemines

Pointe Coupee

Rapides

Red River

Richland

Sabine

St. Bernard

St. Charles

St. Helena

St. James

St. John the Baptist

St. Landry

St. Martin

St. Mary

St. Tammany

Tangipahoa

Tensas

Terrebonne

Union

Vermilion

Vernon

Washington

Webster

West Baton Rouge

West Carroll

West Feliciana

Winn

- 19 -

 

MASSACHUSETTS

Barnstable

Berkshire

Bristol

Dukes

Essex

Franklin

Hampden

Hampshire

Middlesex

Nantucket

 Norfolk

Plymouth

Suffolk

Worcester

MARYLAND

Allegany

Anne Arundel

Baltimore

Calvert

Caroline

Carroll

Cecil

Charles

Dorchester

Frederick

Garrett

Harford

Howard

Kent

Montgomery

Prince George’s

Queen Anne’s

St. Mary’s

Somerset

Talbot

Washington

Wicomico

Worcester

Baltimore City

MAINE

Androscoggin

Aroostook

Cumberland

Franklin

Hancock

Kennebec

- 20 -

 

Knox

Lincoln

Oxford

Penobscot

Piscataquis

Sagadahoc

Somerset

Waldo

Washington

York

MICHIGAN

Alcona

Alger

Allegan

Alpena

Antrim

Arenac

Baraga

Barry

Bay

Benzie

Berrien

Branch

Calhoun

Cass

Charlevoix

Cheboygan

Chippewa

Clare

Clinton

Crawford

Delta

Dickinson

Eaton

Emmet

Genesee

Gladwin

Gogebic

Grand Traverse

Gratiot

Hillsdale

Houghton

Huron

Ingham

Ionia

Iosco

Iron

Isabella

Jackson

Kalamazoo

Kalkaska

Kent

Keweenaw

Lake

Lapeer

Leelanau

Lenawee

Livingston

Luce

Mackinac

Macomb

Manistee

- 21 -

 

Marquette

Mason

Mecosta

Menominee

Midland

Missaukee

Monroe

Montcalm

Montmorency

Muskegon

Newaygo

Oakland

Oceana

Ogemaw

Ontonagon

Osceola

Oscoda

Otsego

Ottawa

Presque Isle

Roscommon

Saginaw

St. Clair

St. Joseph

Sanilac

Schoolcraft

Shiawassee

Tuscola

Van Buren

Washtenaw

Wayne

Wexford

MINNESOTA

Aitkin

Anoka

Becker

Beltrami

Benton

Big Stone

Blue Earth

Brown

Carlton

Carver

Cass

Chippewa

Chisago

Clay

Clearwater

Cook

Cottonwood

Crow Wing

Dakota

Dodge

Douglas

Faribault

Fillmore

Freeborn

Goodhue

Grant

Hennepin

Houston

Hubbard

Isanti

- 22 -

 

Itasca

Jackson

Kanabec

Kandiyohi

Kittson

Koochiching

Lac qui Parle

Lake

Lake of the Woods

Le Sueur

Lincoln

Lyon

McLeod

Mahnomen

Marshall

Martin

Meeker

Mille Lacs

Morrison

Mower

Murray

Nicollet

Nobles

Norman

Olmsted

Otter Tail

Pennington

Pine

Pipestone

Polk

Pope

Ramsey

Red Lake

Redwood

Renville

Rice

Rock

Roseau

St. Louis

Scott

Sherburne

Sibley

Stearns

Steele

Stevens

Swift

Todd

Traverse

Wabasha

Wadena

Waseca

Washington

Watonwan

Wilkin

Winona

Wright

Yellow Medicine

MISSOURI

Adair

Andrew

Atchison

Audrain

Barry

Barton

- 23 -

 

Bates

Benton

Bollinger

Boone

Buchanan

Butler

Caldwell

Callaway

Camden

Cape Girardeau

Carroll

Carter

Cass

Cedar

Chariton

Christian

Clark

Clay

Clinton

Cole

Cooper

Crawford

Dade

Dallas

Daviess

De Kalb

Dent

Douglas

Dunklin

Franklin

Gasconade

Gentry

Greene

Grundy

Harrison

Henry

Hickory

Holt

Howard

Howell

Iron

Jackson

Jasper

Jefferson

Johnson

Knox

Laclede

Lafayette

Lawrence

Lewis

Lincoln

Linn

Livingston

McDonald

Macon

Madison

Maries

Marion

Mercer

Miller

Mississippi

Moniteau

Monroe

Montgomery

Morgan

New Madrid

Newton

Nodaway

Oregon

Osage

Ozark

Pemiscot

Perry

Pettis

Phelps

- 24 -

 

Pike

Platte

Polk

Pulaski

Putnam

Ralls

Randolph

Ray

Reynolds

Ripley

St. Charles

St. Clair

Ste. Genevieve

St. Francois

St. Louis

Saline

Schuyler

Scotland

Scott

Shannon

Shelby

Stoddard

Stone

Sullivan

Taney

Texas

Vernon

Warren

Washington

Wayne

Webster

Worth

Wright

St. Louis City

MISSISSIPPI

Adams

Alcorn

Amite

Attala

Benton

Bolivar

Calhoun

Carroll

Chickasaw

Choctaw

Claiborne

Clarke

Clay

Coahoma

Copiah

Covington

DeSoto

Forrest

Franklin

George

Greene

Grenada

Hancock

Harrison

Hinds

Holmes

Humphreys

- 25 -

 

Issaquena

Itawamba

Jackson

Jasper

Jefferson

Jefferson Davis

Jones

Kemper

Lafayette

Lamar

Lauderdale

Lawrence

Leake

Lee

Leflore

Lincoln

Lowndes

Madison

Marion

Marshall

Monroe

Montgomery

Neshoba

Newton

Noxubee

Oktibbeha

Panola

Pearl River

Perry

Pike

Pontotoc

Prentiss

Quitman

Rankin

Scott

Sharkey

Simpson

Smith

Stone

Sunflower

Tallahatchie

Tate

Tippah

Tishomingo

Tunica

Union

Walthall

Warren

Washington

Wayne

Webster

Wilkinson

Winston

Yalobusha

Yazoo

MONTANA

Beaverhead

Big Horn

Blaine

Broadwater

Carbon

Carter

- 26 -

 

Cascade

Chouteau

Custer

Daniels

Dawson

Deer Lodge

Fallon

Fergus

Flathead

Gallatin

Garfield

Glacier

Golden Valley

Granite

Hill

Jefferson

Judith Basin

Lake

Lewis and Clark

Liberty

Lincoln

McCone

Madison

Meagher

Mineral

Missoula

Musselshell

Park

Petroleum

Phillips

Pondera

Powder River

Powell

Prairie

Ravalli

Richland

Roosevelt

Rosebud

Sanders

Sheridan

Silver Bow

Stillwater

Sweet Grass

Teton

Toole

Treasure

Valley

Wheatland

Wibaux

Yellowstone

Yellowstone National Park

NORTH CAROLINA

Alamance

Alexander

Alleghany

Anson

Ashe

Avery

Beaufort

Bertie

Bladen

Brunswick

Buncombe

Burke

- 27 -

 

Cabarrus

Caldwell

Camden

Carteret

Caswell

Catawba

Chatham

Cherokee

Chowan

Clay

Cleveland

Columbus

Craven

Cumberland

Currituck

Dare

Davidson

Davie

Duplin

Durham

Edgecombe

Forsyth

Franklin

Gaston

Gates

Graham

Granville

Greene

Guilford

Halifax

Harnett

Haywood

Henderson

Hertford

Hoke

Hyde

Iredell

Jackson

Johnston

Jones

Lee

Lenoir

Lincoln

McDowell

Macon

Madison

Martin

Mecklenburg

Mitchell

Montgomery

Moore

Nash

New Hanover

Northampton

Onslow

Orange

Pamlico

Pasquotank

Pender

Perquimans

Person

Pitt

Polk

Randolph

Richmond

Robeson

Rockingham

Rowan

Rutherford

Sampson

Scotland

Stanly

Stokes

Surry

Swain

- 28 -

 

Transylvania

Tyrrell

Union

Vance

Wake

Warren

Washington

Watauga

Wayne

Wilkes

Wilson

Yadkin

Yancey

NORTH DAKOTA

Adams

Barnes

Benson

Billings

Bottineau

Bowman

Burke

Burleigh

Cass

Cavalier

Dickey

Divide

Dunn

Eddy

Emmons

Foster

Golden Valley

Grand Forks

Grant

Griggs

Hettinger

Kidder

La Moure

Logan

McHenry

McIntosh

McKenzie

McLean

Mercer

Morton

Mountrail

Nelson

Oliver

Pembina

Pierce

Ramsey

Ransom

Renville

Richland

Rolette

Sargent

Sheridan

Sioux

Slope

Stark

Steele

Stutsman

Towner

- 29 -

 

Traill

Walsh

Ward

Wells

Williams

NEBRASKA

Adams

Antelope

Arthur

Banner

Blaine

Boone

Box Butte

Boyd

Brown

Buffalo

Burt

Butler

Cass

Cedar

Chase

Cherry

Cheyenne

Clay

Colfax

Cuming

Custer

Dakota

Dawes

Dawson

Deuel

Dixon

Dodge

Douglas

Dundy

Fillmore

Franklin

Frontier

Furnas

Gage

Garden

Garfield

Gosper

Grant

Greeley

Hall

Hamilton

Harlan

Hayes

Hitchcock

Holt

Hooker

Howard

Jefferson

Johnson

Kearney

Keith

Keya Paha

Kimball

Knox

Lancaster

Lincoln

Logan

- 30 -

 

Loup

McPherson

Madison

Merrick

Morrill

Nance

Nemaha

Nuckolls

Otoe

Pawnee

Perkins

Phelps

Pierce

Platte

Polk

Red Willow

Richardson

Rock

Saline

Sarpy

Saunders

Scotts Bluff

Seward

Sheridan

Sherman

Sioux

Stanton

Thayer

Thomas

Thurston

Valley

Washington

Wayne

Webster

Wheeler

York

NEW HAMPSHIRE

Belknap

Carroll

Cheshire

Coos

Grafton

Hillsborough

Merrimack

Rockingham

Strafford

Sullivan

NEW JERSEY

Atlantic

Bergen

Burlington

- 31 -

 

Camden

Cape May

Cumberland

Essex

Gloucester

Hudson

Hunterdon

Mercer

Middlesex

Monmouth

Morris

Ocean

Passaic

Salem

Somerset

Sussex

Union

Warren

NEW MEXICO

Bernalillo

Catron

Chaves

Cibola

Colfax

Curry

De Baca

Dona Ana

Eddy

Grant

Guadalupe

Harding

Hidalgo

Lea

Lincoln

Los Alamos

Luna

McKinley

Mora

Otero

Quay

Rio Arriba

Roosevelt

Sandoval

San Juan

San Miguel

Santa Fe

Sierra

Socorro

Taos

Torrance

Union

Valencia

- 32 -

 

NEVADA

Churchill

Clark

Douglas

Elko

Esmeralda

Eureka

Humboldt

Lander

Lincoln

Lyon

Mineral

Nye

Pershing

Storey

Washoe

White Pine

Carson City

NEW YORK

Albany

Allegany

Bronx

Broome

Cattaraugus

Cayuga

Chautauqua

Chemung

Chenango

Clinton

Columbia

Cortland

Delaware

Dutchess

Erie

Essex

Franklin

Fulton

Genesee

Greene

Hamilton

Herkimer

Jefferson

Kings

Lewis

Livingston

Madison

Monroe

Montgomery

Nassau

New York

Niagara

Oneida

Onondaga

Ontario

Orange

Orleans

Oswego

Otsego

Putnam

Queens

Rensselaer

Richmond

Rockland

St. Lawrence

- 33 -

 

Saratoga

Schenectady

Schoharie

Schuyler

Seneca

Steuben

Suffolk

Sullivan

Tioga

Tompkins

Ulster

Warren

Washington

Wayne

Westchester

Wyoming

Yates

OHIO

Adams

Allen

Ashland

Ashtabula

Athens

Auglaize

Belmont

Brown

Butler

Carroll

Champaign

Clark

Clermont

Clinton

Columbiana

Coshocton

Crawford

Cuyahoga

Darke

Defiance

Delaware

Erie

Fairfield

Fayette

Franklin

Fulton

Gallia

Geauga

Greene

Guernsey

Hamilton

Hancock

Hardin

Harrison

Henry

Highland

Hocking

Holmes

Huron

Jackson

Jefferson

Knox

- 34 -

 

Lake

Lawrence

Licking

Logan

Lorain

Lucas

Madison

Mahoning

Marion

Medina

Meigs

Mercer

Miami

Monroe

Montgomery

Morgan

Morrow

Muskingum

Noble

Ottawa

Paulding

Perry

Pickaway

Pike

Portage

Preble

Putnam

Richland

Ross

Sandusky

Scioto

Seneca

Shelby

Stark

Summit

Trumbull

Tuscarawas

Union

Van Wert

Vinton

Warren

Washington

Wayne

Williams

Wood

Wyandot

OKLAHOMA

Adair

Alfalfa

Atoka

Beaver

Beckham

Blaine

Bryan

Caddo

Canadian

Carter

Cherokee

Choctaw

Cimarron

Cleveland

Coal

- 35 -

 

Comanche

Cotton

Craig

Creek

Custer

Delaware

Dewey

Ellis

Garfield

Garvin

Grady

Grant

Greer

Harmon

Harper

Haskell

Hughes

Jackson

Jefferson

Johnston

Kay

Kingfisher

Kiowa

Latimer

Le Flore

Lincoln

Logan

Love

McClain

McCurtain

McIntosh

Major

Marshall

Mayes

Murray

Muskogee

Noble

Nowata

Okfuskee

Oklahoma

Okmulgee

Osage

Ottawa

Pawnee

Payne

Pittsburg

Pontotoc

Pottawatomie

Pushmataha

Roger Mills

Rogers

Seminole

Sequoyah

Stephens

Texas

Tillman

Tulsa

Wagoner

Washington

Washita

Woods

Woodward

OREGON

- 36 -

 

Baker

Benton

Clackamas

Clatsop

Columbia

Coos

Crook

Curry

Deschutes

Douglas

Gilliam

Grant

Harney

Hood River

Jackson

Jefferson

Josephine

Klamath

Lake

Lane

Lincoln

Linn

Malheur

Marion

Morrow

Multnomah

Polk

Sherman

Tillamook

Umatilla

Union

Wallowa

Wasco

Washington

Wheeler

Yamhill

PENNSYLVANIA

Adams

Allegheny

Armstrong

Beaver

Bedford

Berks

Blair

Bradford

Bucks

Butler

Cambria

Cameron

Carbon

Centre

Chester

Clarion

Clearfield

Clinton

Columbia

Crawford

Cumberland

Dauphin

Delaware

Elk

Erie

Fayette

Forest

- 37 -

 

Franklin

Fulton

Greene

Huntingdon

Indiana

Jefferson

Juniata

Lackawanna

Lancaster

Lawrence

Lebanon

Lehigh

Luzerne

Lycoming

McKean

Mercer

Mifflin

Monroe

Montgomery

Montour

Northampton

Northumberland

Perry

Philadelphia

Pike

Potter

Schuylkill

Snyder

Somerset

Sullivan

Susquehanna

Tioga

Union

Venango

Warren

Washington

Wayne

Westmoreland

Wyoming

York

RHODE ISLAND

Bristol

Kent

Newport

Providence

Washington

SOUTH CAROLINA

Abbeville

Aiken

     Allendale

- 38 -

 

Anderson

Bamberg

Barnwell

Beaufort

Berkeley

Calhoun

Charleston

Cherokee

Chester

Chesterfield

Clarendon

Colleton

Darlington

Dillon

Dorchester

Edgefield

Fairfield

Florence

Georgetown

Greenville

Greenwood

Hampton

Horry

Jasper

Kershaw

Lancaster

Laurens

Lee

Lexington

McCormick

Marion

Marlboro

Newberry

Oconee

Orangeburg

Pickens

Richland

Saluda

Spartanburg

Sumter

Union

Williamsburg

York

SOUTH DAKOTA

Aurora

Beadle

Bennett

Bon Homme

Brookings

Brown

Brule

Buffalo

Butte

Campbell

Charles Mix

Clark

Clay

Codington

Corson

Custer

Davison

Day

- 39 -

 

Deuel

Dewey

Douglas

Edmunds

Fall River

Faulk

Grant

Gregory

Haakon

Hamlin

Hand

Hanson

Harding

Hughes

Hutchinson

Hyde

Jackson

Jerauld

Jones

Kingsbury

Lake

Lawrence

Lincoln

Lyman

McCook

McPherson

Marshall

Meade

Mellette

Miner

Minnehaha

Moody

Pennington

Perkins

Potter

Roberts

Sanborn

Shannon

Spink

Stanley

Sully

Todd

Tripp

Turner

Union

Walworth

Yankton

Ziebach

TENNESSEE

Anderson

Bedford

Benton

Bledsoe

Blount

Bradley

Campbell

Cannon

Carroll

Carter

Cheatham

Chester

Claiborne

Clay

Cocke

- 40 -

 

Coffee

Crockett

Cumberland

Davidson

Decatur

DeKalb

Dickson

Dyer

Fayette

Fentress

Franklin

Gibson

Giles

Grainger

Greene

Grundy

Hamblen

Hamilton

Hancock

Hardeman

Hardin

Hawkins

Haywood

Henderson

Henry

Hickman

Houston

Humphreys

Jackson

Jefferson

Johnson

Knox

Lake

Lauderdale

Lawrence

Lewis

Lincoln

Loudon

McMinn

McNairy

Macon

Madison

Marion

Marshall

Maury

Meigs

Monroe

Montgomery

Moore

Morgan

Obion

Overton

Perry

Pickett

Polk

Putnam

Rhea

Roane

Robertson

Rutherford

Scott

Sequatchie

Sevier

Shelby

Smith

Stewart

Sullivan

Sumner

Tipton

Trousdale

Unicoi

Union

Van Buren

Warren

Washington

- 41 -

 

Wayne

Weakley

White

Williamson

Wilson

TEXAS

Anderson

Andrews

Angelina

Aransas

Archer

Armstrong

Atascosa

Austin

Bailey

Bandera

Bastrop

Baylor

Bee

Bell

Bexar

Blanco

Borden

Bosque

Bowie

Brazoria

Brazos

Brewster

Briscoe

Brooks

Brown

Burleson

Burnet

Caldwell

Calhoun

Callahan

Cameron

Camp

Carson

Cass

Castro

Chambers

Cherokee

Childress

Clay

Cochran

Coke

Coleman

Collin

Collingsworth

Colorado

Comal

Comanche

Concho

Cooke

Coryell

Cottle

Crane

Crockett

Crosby

Culberson

Dallam

Dallas

- 42 -

 

Dawson

Deaf Smith

Delta

Denton

De Witt

Dickens

Dimmit

Donley

Duval

Eastland

Ector

Edwards

Ellis

El Paso

Erath

Falls

Fannin

Fayette

Fisher

Floyd

Foard

Fort Bend

Franklin

Freestone

Frio

Gaines

Galveston

Garza

Gillespie

Glasscock

Goliad

Gonzales

Gray

Grayson

Gregg

Grimes

Guadalupe

Hale

Hall

Hamilton

Hansford

Hardeman

Hardin

Harris

Harrison

Hartley

Haskell

Hays

Hemphill

Henderson

Hidalgo

Hill

Hockley

Hood

Hopkins

Houston

Howard

Hudspeth

Hunt

Hutchinson

Irion

Jack

Jackson

Jasper

Jeff Davis

Jefferson

Jim Hogg

Jim Wells

Johnson

Jones

Karnes

Kaufman

Kendall

Kenedy

Kent

- 43 -

 

Kerr

Kimble

King

Kinney

Kleberg

Knox

Lamar

Lamb

Lampasas

La Salle

Lavaca

Lee

Leon

Liberty

Limestone

Lipscomb

Live Oak

Llano

Loving

Lubbock

Lynn

McCulloch

McLennan

McMullen

Madison

Marion

Martin

Mason

Matagorda

Maverick

Medina

Menard

Midland

Milam

Mills

Mitchell

Montague

Montgomery

Moore

Morris

Motley

Nacogdoches

Navarro

Newton

Nolan

Nueces

Ochiltree

Oldham

Orange

Palo Pinto

Panola

Parker

Parmer

Pecos

Polk

Potter

Presidio

Rains

Randall

Reagan

Real

Red River

Reeves

Refugio

Roberts

Robertson

Rockwall

Runnels

Rusk

Sabine

San Augustine

San Jacinto

San Patricio

San Saba

Schleicher

- 44 -

 

Scurry

Shackelford

Shelby

Sherman

Smith

Somervell

Starr

Stephens

Sterling

Stonewall

Sutton

Swisher

Tarrant

Taylor

Terrell

Terry

Throckmorton

Titus

Tom Green

Travis

Trinity

Tyler

Upshur

Upton

Uvalde

Val Verde

Van Zandt

Victoria

Walker

Waller

Ward

Washington

Webb

Wharton

Wheeler

Wichita

Wilbarger

Willacy

Williamson

Wilson

Winkler

Wise

Wood

Yoakum

Young

Zapata

Zavala

UTAH

Beaver

Box Elder

Cache

Carbon

Daggett

Davis

Duchesne

Emery

Garfield

Grand

Iron

Juab

Kane

Millard

Morgan

- 45 -

 

Piute

Rich

Salt Lake

San Juan

Sanpete

Sevier

Summit

Tooele

Uintah

Utah

Wasatch

Washington

Wayne

Weber

VERMONT

Addison

Bennington

Caledonia

Chittenden

Essex

Franklin

Grand Isle

Lamoille

Orange

Orleans

Rutland

Washington

Windham

Windsor

VIRGINIA

Accomack

Albemarle

Alleghany

Amelia

Amherst

Appomattox

Arlington

Augusta

Bath

Bedford

Bland

Botetourt

Brunswick

Buchanan

Buckingham

Campbell

Caroline

Carroll

Charles City

Charlotte

Chesterfield

Clarke

Craig

Culpeper

Cumberland

Dickenson

Dinwiddie

- 46 -

 

Essex

Fairfax

Fauquier

Floyd

Fluvanna

Franklin

Frederick

Giles

Gloucester

Goochland

Grayson

Greene

Greensville

Halifax

Hanover

Henrico

Henry

Highland

Isle of Wight

James City

King and Queen

King George

King William

Lancaster

Lee

Loudoun

Louisa

Lunenburg

Madison

Mathews

Mecklenburg

Middlesex

Montgomery

Nelson

New Kent

Northampton

Northumberland

Nottoway

Orange

Page

Patrick

Pittsylvania

Powhatan

Prince Edward

Prince George

Prince William

Pulaski

Rappahannock

Richmond

Roanoke

Rockbridge

Rockingham

Russell

Scott

Shenandoah

Smyth

Southampton

Spotsylvania

Stafford

Surry

Sussex

Tazewell

Warren

Washington

Westmoreland

Wise

Wythe

York

      

Alexandria

Bedford

Bristol

- 47 -

 

Buena Vista

Charlottesville

Chesapeake

Clifton Forge

Colonial Heights

Covington

Danville

Emporia

Fairfax

Falls Church

Franklin

Fredericksburg

Galax

Hampton

Harrisonburg

Hopewell

Lexington

Lynchburg

Manassas

Manassas Park

Martinsville

Newport News

Norfolk

Norton

Petersburg

Poquoson

Portsmouth

Radford

Richmond

Roanoke

Salem

South Boston

Staunton

Suffolk

Virginia Beach

Waynesboro

Williamsburg

Winchester

WASHINGTON

Adams

Asotin

Benton

Chelan

Clallam

Clark

Columbia

Cowlitz

Douglas

Ferry

Franklin

Garfield

Grant

Grays Harbor

Island

Jefferson

King

Kitsap

Kittitas

Klickitat

Lewis

Lincoln

Mason

Okanogan

- 48 -

 

Pacific

Pend Oreille

Pierce

San Juan

Skagit

Skamania

Snohomish

Spokane

Stevens

Thurston

Wahkiakum

Walla Walla

Whatcom

Whitman

Yakima

WEST VIRGINIA

Barbour

Berkeley

Boone

Braxton

Brooke

Cabell

Calhoun

Clay

Doddridge

Fayette

Gilmer

Grant

Greenbrier

Hampshire

Hancock

Hardy

Harrison

Jackson

Jefferson

Kanawha

Lewis

Lincoln

Logan

McDowell

Marion

Marshall

Mason

Mercer

Mineral

Mingo

Monongalia

Monroe

Morgan

Nicholas

Ohio

Pendleton

Pleasants

Pocahontas

Preston

Putnam

Raleigh

Randolph

Ritchie

Roane

Summers

Taylor

Tucker

Tyler

- 49 -

 

Upshur

Wayne

Webster

Wetzel

Wirt

Wood

Wyoming

WISCONSIN

Adams

Ashland

Barron

Bayfield

Brown

Buffalo

Burnett

Calumet

Chippewa

Clark

Columbia

Crawford

Dane

Dodge

Door

Douglas

Dunn

Eau Claire

Florence

Fond du Lac

Forest

Grant

Green

Green Lake

Iowa

Iron

Jackson

Jefferson

Juneau

Kenosha

Kewaunee

La Crosse

Lafayette

Langlade

Lincoln

Manitowoc

Marathon

Marinette

Marquette

Menominee

Milwaukee

Monroe

Oconto

Oneida

Outagamie

Ozaukee

Pepin

Pierce

Polk

Portage

Price

Racine

Richland

Rock

- 50 -

 

Rusk

St. Croix

Sauk

Sawyer

Shawano

Sheboygan

Taylor

Trempealeau

Vernon

Vilas

Walworth

Washburn

Washington

Waukesha

Waupaca

Waushara

Winnebago

Wood

WYOMING

Albany

Big Horn

Campbell

Carbon

Converse

Crook

Fremont

Goshen

Hot Springs

Johnson

Laramie

Lincoln

Natrona

Niobrara

Park

Platte

Sheridan

Sublette

Sweetwater

Teton

Uinta

Washakie

Weston

- 51 -exv4w3

Table of Contents

Exhibit 4.3

WARRANT AGREEMENT

HCM ACQUISITION COMPANY

and

AMERICAN STOCK TRANSFER & TRUST COMPANY, as Warrant Agent

 

WARRANT AGREEMENT

Dated as of ____________ ___, 2007

 

Table of Contents

WARRANT AGREEMENT

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.

	 	Appointment of Warrant Agent
	 	 	1	 
	SECTION 2.

	 	Warrant Certificates
	 	 	1	 
	SECTION 3.

	 	Execution of Warrant Certificates
	 	 	1	 
	SECTION 4.

	 	Registration and Countersignature
	 	 	2	 
	SECTION 5.

	 	Registration of Transfers and Exchanges; Transfer Restrictions
	 	 	2	 
	SECTION 6.

	 	Terms of Warrants.
	 	 	4	 
	SECTION 7.

	 	Payment of Taxes
	 	 	9	 
	SECTION 8.

	 	Mutilated or Missing Warrant Certificates
	 	 	9	 
	SECTION 9.

	 	Reservation of Warrant Shares
	 	 	9	 
	SECTION 10.

	 	Obtaining Stock Exchange Listings; State Registration
	 	 	10	 
	SECTION 11.

	 	Adjustment of Number of Warrant Shares.
	 	 	10	 
	SECTION 12.

	 	Fractional Interests
	 	 	20	 
	SECTION 13.

	 	Notices to Warrant Holders
	 	 	21	 
	SECTION 14.

	 	Merger, Consolidation or Change of Name of Warrant Agent
	 	 	22	 
	SECTION 15.

	 	Warrant Agent
	 	 	22	 
	SECTION 16.

	 	Change of Warrant Agent
	 	 	25	 
	SECTION 17.

	 	Notices to Company and Warrant Agent
	 	 	26	 
	SECTION 18.

	 	Supplements and Amendments
	 	 	26	 
	SECTION 19.

	 	Successors
	 	 	27	 
	SECTION 20.

	 	Termination
	 	 	27	 
	SECTION 21.

	 	Governing Law
	 	 	27	 
	SECTION 22.

	 	Benefits of This Agreement
	 	 	27	 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 23.

	 	Counterparts
	 	 	27	 
	SECTION 24.

	 	Force Majeure
	 	 	27	 
	Exhibit A

	 	Form of Warrant Certificate	 	 	 	 
	Exhibit B

	 	Legend for Private Warrants	 	 	 	 

 

Table of Contents

     WARRANT AGREEMENT dated as of ___, 2007, between HCM Acquisition Company, a
Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, a New
York corporation, as Warrant Agent (the “Warrant Agent”).

     WHEREAS, the Company intends to file a registration statement (the “Registration Statement”)
with the Securities Exchange Commission for the initial public offering of units (the “Initial
Public Offering”), each unit (“Unit”) consisting of one share of the Company’s common
stock, par value $0.001 per share (“Common Stock”), and one warrant to purchase one share
of Common Stock at an exercise price of $7.50 per share;

     WHEREAS, the Company has agreed to issue (i) in a private placement to occur concurrently with
the execution of that certain Founder’s Securities Purchase Agreement, dated October 4, 2007, by
and between the Company and HCM Acquisition Holdings, LLC, a Delaware limited liability company
(the “Founding Stockholder”), 7,187,500 Units (the “Founder’s Units”), each unit
consisting of one share of Common Stock (the “Founder’s Shares”), and one warrant to
purchase one share of Common Stock at an exercise price of $7.50 per share (the “Founder’s
Warrants”) to the Founding Stockholder, (ii) in a private placement to occur concurrently with
the closing of the Initial Public Offering, 5,000,000 warrants, each to purchase one share of
Common Stock at an exercise price of $7.50 per share (the “Private Placement Warrants” and
together with the Founder’s Warrants, the “Private Warrants”) to the Founding Stockholder,
and (iii) up to 28,750,000 warrants to purchase shares of Common Stock to be offered to the public
pursuant to the Registration Statement (the “Public Warrants” and together with the Private
Warrants, the “Warrants”). The shares of Common Stock issuable on exercise of the Warrants
are referred to as the “Warrant Shares”; and

     WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, transfer, exchange and
exercise of Warrants and other matters as provided herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto agree as follows:

     SECTION 1. Appointment of Warrant Agent. The Company hereby appoints the Warrant
Agent to act as agent for the Company in accordance with the instructions set forth hereinafter in
this Agreement, and the Warrant Agent hereby accepts such appointment.

     SECTION 2. Warrant Certificates. The certificates evidencing the Warrants (the
“Warrant Certificates”) to be delivered pursuant to this Agreement shall be in registered
form only and shall be substantially in the form set forth in Exhibit A attached hereto,
the warrant certificates for the Private Warrants shall bear the legend set forth in Exhibit
B except as set forth herein.

     SECTION 3. Execution of Warrant Certificates. Warrant Certificates shall be signed
on behalf of the Company by its Chairman of the Board or its President or Chief Executive Officer
or a Vice President and by its Secretary or an Assistant Secretary. Each such signature upon the
Warrant Certificates may be in the form of a facsimile signature of the present or any future
Chairman of the Board, President, Chief Executive Officer, Vice President, Secretary or

 

Table of Contents

Assistant Secretary and may be imprinted or otherwise reproduced on the Warrant Certificates
and for that purpose the Company may adopt and use the facsimile signature of any person who shall
have been Chairman of the Board, President, Chief Executive Officer, Vice President, Secretary or
Assistant Secretary, notwithstanding the fact that at the time the Warrant Certificates shall be
countersigned and delivered or disposed of he or she shall have ceased to hold such office.

     In case any officer of the Company who shall have signed any of the Warrant Certificates shall
cease to be such officer before the Warrant Certificates so signed shall have been countersigned by
the Warrant Agent, or disposed of by the Company, such Warrant Certificates nevertheless may be
countersigned and delivered or disposed of as though such person had not ceased to be such officer
of the Company; and any Warrant Certificate may be signed on behalf of the Company by any person
who, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of
the Company to sign such Warrant Certificate, although at the date of the execution of this Warrant
Agreement any such person was not such officer.

     Warrant Certificates shall be dated the date of countersignature by the Warrant Agent.

     SECTION 4. Registration and Countersignature. Warrant Certificates shall be
countersigned by the Warrant Agent and shall not be valid for any purpose unless so countersigned.
The Warrant Agent shall, upon written instructions of the Chairman of the Board, the President or
Chief Executive Officer, a Vice President, the Treasurer or the Chief Financial Officer of the
Company, countersign, issue and deliver Warrants as provided in this Agreement.

     The Company and the Warrant Agent may deem and treat the registered holder(s) of the Warrant
Certificates as the absolute owner(s) thereof (notwithstanding any notation of ownership or other
writing thereon made by anyone), for all purposes, and neither the Company nor the Warrant Agent
shall be affected by any notice to the contrary.

     SECTION 5. Registration of Transfers and Exchanges; Transfer Restrictions. The
Warrant Agent shall from time to time, subject to the limitations of this Section 5, register the
transfer of any outstanding Warrant Certificates upon the records to be maintained by it for that
purpose, upon surrender thereof duly endorsed or accompanied (if so required by the Warrant Agent)
by a written instrument or instruments of transfer in form satisfactory to the Warrant Agent, duly
executed by the registered holder or holders thereof or by the duly appointed legal representative
thereof or by a duly authorized attorney. Upon any such registration of transfer, a new Warrant
Certificate shall be issued to the transferee(s) and the surrendered Warrant Certificate shall be
cancelled by the Warrant Agent. Cancelled Warrant Certificates shall thereafter be disposed of by
the Warrant Agent in its customary manner.

     The Founder’s Warrants may not be sold or transferred until the date that is 180 days after
the Company completes its Initial Business Combination and the Private Placement Warrants may not
be sold or transferred until the date immediately following the date on which the Company completes
its Initial Business Combination, in either event except in each case to a Permitted Transferee who
agrees in writing with the Company to be subject to such transfer restrictions and in the case of
the Founder’s Warrants the forfeiture of such Warrants as

2

Table of Contents

described in Section 6(g) below. The Founder’s Warrants shall cease to be subject to the
foregoing transfer restrictions if, subsequent to the Company’s completion of its Initial Business
Combination, (i) the Last Reported Sale Price (as defined in Section 6(a) below) of the Common
Stock equals or exceeds $13.75 per share for any 20 trading days within a 30-trading day period
beginning 90 days after the Initial Business Combination, or (ii) the Company consummates a
subsequent liquidation, merger, stock exchange or other similar transaction that results in all of
the Company’s stockholders having the right to exchange their shares of Common Stock for cash,
securities or other property. As used herein, “Permitted Transferee” means (a) any
officer, director or employee of the Company; or (b) any other person or entity associated or
affiliated with Highland Capital Management, L.P.

     The holders of any Private Warrants or Warrant Shares issued upon exercise of any Private
Warrants further agree prior to any transfer of such securities, to give written notice to the
Company expressing its desire to effect such transfer and describing briefly the proposed transfer.
Upon receiving such notice, the Company shall present copies thereof to its counsel and the holder
agrees not to make any disposition of all or any portion of such securities unless and until:

          (a)     there is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with such registration statement,
in which case the legends set forth in Exhibit B or Section 6(c) hereof, as the case may be
(collectively the “Legends”) with respect to such securities sold pursuant to such
registration statement shall be removed; or

          (b)     if reasonably requested by the Company, (A) the holder shall have furnished the Company
with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such Securities under the Securities Act, (B) the Company shall have
received customary representations and warranties regarding the transferee that are reasonably
satisfactory to the Company signed by the proposed transferee and (C) the Company shall have
received an agreement by such transferee to the restrictions contained in the Legends.

     Each Public Warrant shall initially be issued together with one share of Common Stock as a
Unit. The share of Common Stock and Public Warrant comprising a Unit shall not be separately
transferable before the 35th day following the date of the prospectus with respect to the Company’s
Initial Public Offering unless the underwriter with respect thereto informs the Company of its
decision to allow earlier separate trading, in which case the Company shall notify the Warrant
Agent of the effective date of the separation, subject to the Company having filed a Form 8-K with
the Securities and Exchange Commission containing an audited balance sheet reflecting the Company’s
receipt of the gross proceeds of the offering of the Units and has issued a press release
announcing when such separate trading will begin (the later of such dates, the “Detachment
Date”). 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, prior to the
Detachment Date, each transfer of a Unit on the register relating to such Units shall operate also
to transfer the Public Warrant included in such Unit.

3

Table of Contents

     Subject to the terms of this Agreement, Warrant Certificates may be exchanged at the option of
the holder(s) thereof, when surrendered to the Warrant Agent at its principal corporate trust
office, which is currently located at the address listed in Section 17 hereof, for another Warrant
Certificate or other Warrant Certificates of like tenor and representing in the aggregate a like
number of Warrants. Any holder desiring to exchange a Warrant Certificate shall deliver a written
request to the Warrant Agent, and shall surrender, duly endorsed or accompanied (if so required by
the Warrant Agent) by a written instrument or instruments of transfer in form satisfactory to the
Warrant Agent, the Warrant Certificate or Certificates to be so exchanged. Warrant Certificates
surrendered for exchange shall be cancelled by the Warrant Agent. Such cancelled Warrant
Certificates shall then be disposed of by such Warrant Agent in its customary manner.

     The Warrant Agent is hereby authorized to countersign, in accordance with the provisions of
this Section 5 and of Section 4 hereof, the new Warrant Certificates required pursuant to the
provisions of this Section 5.

     SECTION 6. Terms of Warrants.

          (a)     Exercise Price and Exercise Period.

     The initial exercise price per share that Warrant Shares shall be purchasable upon the
exercise of Warrants (the “Exercise Price”) shall be $7.50 per share, and each Warrant
shall be initially exercisable to purchase one share of Common Stock.

     Subject to the terms of this Agreement (including without limitation Section 6(e) below), each
Warrant holder shall have the right, which may be exercised commencing at the opening of business
on the first day of the applicable Warrant Exercise Period set forth below and until 5:00 p.m., New
York time, on the last day of such Warrant Exercise Period, to receive from the Company the number
of fully paid and nonassessable Warrant Shares which the holder may at the time be entitled to
receive on exercise of such Warrants and payment of the Exercise Price then in effect for such
Warrant Shares or on a cashless basis pursuant to Section 6(d), if applicable. No adjustments as
to dividends will be made upon exercise of the Warrants.

     The “Warrant Exercise Period” shall (x) commence (subject to Section 6(e) below), (A)
for all Warrants other than the Founder’s Warrants on the later of: (i) the date that is one year
from the date of the final prospectus for the Initial Public Offering or (ii) the date on which the
Company completes its Initial Business Combination, and (B) for the Founder’s Warrants on the date
that the Last Reported Sale Price of the Common Stock equals or exceeds $13.75 per share for any 20
trading days within a 30-trading day period beginning 90 days after the Initial Business
Combination, and (y) shall end on the earlier of: (i) the date that is five years from the date of
the final prospectus for the Initial Public Offering or (ii) the Business Day preceding the date on
which such Warrants are redeemed pursuant to Section 6(b) below or expire pursuant to Section 6(f)
below.

     The “Last Reported Sale Price” of the Common Stock on any date of determination means:

4

Table of Contents

	 	(i)	 	the last reported sale price for the regular
trading session (without considering after hours or other trading
outside regular trading session hours) of the Common Stock (regular
way) on the American Stock Exchange on that date,
	 
	 	(ii)	 	if the Common Stock is not listed for trading
on the American Stock Exchange on that date, last reported sale price
as reported in the composite transactions for the principal United
States securities exchange on which the Common Stock is so listed,
	 
	 	(iii)	 	if the Common Stock is not so reported, the
last quoted bid price for the Common Stock in the over-the-counter
market as reported by the OTC Bulletin Board, the National Quotation
Bureau or similar organization, or
	 
	 	(iv)	 	if the Common Stock is not so quoted, the
average of the mid-point of the last bid and ask prices for the Common
Stock from at least three nationally recognized investment-banking
firms that the Company selects for this purpose.

     Each Warrant not exercised or redeemed prior to 5:00 p.m., New York time, on the last day of
the Warrant Exercise Period shall become void and all rights thereunder and all rights in respect
thereof under this Agreement shall cease as of such time.

          (b)     Redemption of Warrants.

     The Company may call the Warrants for redemption, in whole and not in part, at a price of $.01
per Warrant, upon not less than 30 days’ prior written notice of redemption to each Warrant holder,
at any time after such Warrants have become exercisable pursuant to Section 6(a), if, and only if,
(i) the Last Reported Sale Price has equaled or exceeded $13.75 per share for any 20 trading days
within a 30-trading day period ending on the third Business Day prior to the notice of redemption
to Warrant holders and (ii) at all times between the date of such notice of redemption and the
redemption date a registration statement is in effect covering the Warrant Shares issuable upon
exercise of the Warrants and a current prospectus relating to those Warrant Shares is available.

     Upon a call for redemption of Warrants by the Company, the Company shall have the right to
require all holders of Warrants subject to redemption who exercise such Warrants after the
Company’s call for redemption to do so on a cashless basis in accordance with the procedures set
forth in Section 6(d).

     Notwithstanding the foregoing, no Private Warrants shall be redeemable at the option of the
Company so long as they are held by the Founding Stockholder or its Permitted Transferees;
provided that the fact that one or more Private Warrants are non-redeemable because of the
reason described above shall not affect the Company’s right to redeem the Public Warrants and all
Private Warrants that are not held by the Founding Stockholder or its Permitted Transferees.

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          (c)     Exercise Procedure.

     A Warrant may be exercised upon surrender to the Company at the principal stock transfer
office of the Warrant Agent, which is currently located at the address listed in Section 17 hereof,
of the certificate or certificates evidencing the Warrants to be exercised with the form of
election to purchase on the reverse thereof duly filled in and signed and such other documentation
as the Warrant Agent may reasonably request, and upon payment to the Warrant Agent for the account
of the Company of the Exercise Price (adjusted as herein provided if applicable) or on a cashless
basis pursuant to Section 6(d), if applicable, for the number of Warrant Shares in respect of which
such Warrants are then exercised. Payment of the aggregate Exercise Price (unless on a cashless
basis pursuant to Section 6(d)) shall be made by certified or official bank check payable to the
order of the Company in New York Clearing House Funds, or the equivalent thereof. In no event will
any Warrants be settled on a net cash basis.

     Subject to the provisions of Section 7 hereof, upon such surrender of Warrants and payment of
the Exercise Price or on a cashless basis pursuant to Section 6(d), if applicable, the Company
shall issue and cause to be delivered with all reasonable dispatch to and in such name or names as
the Warrant holder may designate, a certificate or certificates for the number of full Warrant
Shares issuable upon the exercise of such Warrants. Such certificate or certificates shall be
deemed to have been issued and any person so designated to be named therein shall be deemed to have
become a holder of record of such Warrant Shares as of the date of the surrender of such Warrants
and payment of the Exercise Price or on a cashless basis pursuant to Section 6(d), if applicable.

     The Warrants shall be exercisable, at the election of the holders thereof, either in full or
from time to time in part and, in the event that a certificate evidencing Warrants is exercised in
respect of fewer than all of the Warrant Shares issuable on such exercise at any time prior to the
date of expiration of the Warrants, a new certificate evidencing the remaining Warrant or Warrants
will be issued, and the Warrant Agent is hereby irrevocably authorized to countersign and to
deliver the required new Warrant Certificate or Certificates pursuant to the provisions of this
Section 6 and of Section 4 hereof, and the Company, whenever required by the Warrant Agent, shall
supply the Warrant Agent with Warrant Certificates duly executed on behalf of the Company for such
purpose. The Warrant Agent may assume that any Warrant presented for exercise is permitted to be
so exercised under applicable law and shall have no liability for acting in reliance on such
assumption.

     All Warrant Certificates surrendered upon exercise of Warrants shall be canceled by the
Warrant Agent. Such canceled Warrant Certificates shall then be disposed of by the Warrant Agent
in its customary manner. The Warrant Agent shall account promptly to the Company with respect to
Warrants exercised and concurrently pay to the Company all monies received by the Warrant Agent for
the purchase of the Warrant Shares through the exercise of such Warrants.

     The Warrant Agent shall keep copies of this Agreement and any notices given or received
hereunder available for inspection by the holders with reasonable prior written notice during
normal business hours at its office. The Company shall supply the Warrant Agent from time to time
with such numbers of copies of this Agreement as the Warrant Agent may request.

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     Certificates evidencing Warrant Shares issued upon exercise of a Private Warrant shall contain
the following legend:

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

     SECURITIES EVIDENCED BY THIS CERTIFICATE WILL BE ENTITLED TO REGISTRATION RIGHTS UNDER A
REGISTRATION RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.

          (d)     Cashless Exercise.

               (i)     The Private Warrants may be exercised on a cashless basis by the Founding Stockholder and
any Permitted Transferees, at the Founding Stockholder or such Permitted Transferee’s election (the
“Cashless Exercise Election”).

               (ii)     Upon a call for redemption of Warrants on a cashless basis by the Company pursuant to
Section 6(b) (the “Cashless Exercise Demand”), all holders of Warrants subject to
redemption who exercise such Warrants shall do so on a cashless basis.

               (iii)     If the Founding Stockholder or any Permitted Transferee makes a Cashless Exercise
Election with respect to any Private Warrants or if the Company makes a Cashless Exercise Demand
with respect to the Warrants subject to redemption that the holders thereof have elected to
exercise after the Company’s call for redemption, then upon surrender of such Warrants in
accordance with Section 6(c), the Company shall issue and cause to be delivered with all reasonable
dispatch to and in such name or names as the Founding Stockholder or such Permitted Transferee or
such Warrant holder, as the case may be, may designate, a certificate or certificates for the
number of full Warrant Shares to be issued upon such cashless exercise, computed by using the
following formula:

	 	 	 	 	 
	X

	 	=
	 	The Warrant Shares to be issued in connection with such cashless
exercise to the holder of the Warrants being exercised.
	Y

	 	=
	 	The number of Warrant Shares underlying the Warrants being exercised.
	A

	 	=
	 	The value of one Warrant as of the date of the exercise, which shall
be determined by using the following formula:
	 

	 	 	 	A = B – the Exercise Price

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	B

	 	=
	 	The Fair Market Value of a share of Common Stock.

For purposes of this Section 6(d), the “Fair Market Value” of a share of Common Stock shall
mean the average of the Last Reported Sale Prices for the ten trading days ending on the third
trading day prior to (x) with respect to the Private Warrants subject a Cashless Exercise Election,
the date on which the Warrant exercise notice is sent to the Warrant Agent, and (y) with respect to
the Warrants subject to a Cashless Exercise Demand, the date on which the notice of redemption is
sent to the holders of the Warrants.

               (iv)     If the Company makes a Cashless Exercise Demand, the notice of redemption shall contain
the information necessary to calculate the number of Warrant Shares to be received by Warrant
holders upon exercise of the Warrants, including the Fair Market Value in such case.

          (e)     Registration Requirement. Notwithstanding anything else in this Section 6, no
Warrants (including any Private Warrants) may be exercised unless at the time of exercise (i) a
registration statement covering the Warrant Shares to be issued upon exercise (other than Warrant
Shares to be issued upon exercise of any Private Warrant) is effective under the Act and (ii) a
prospectus thereunder relating to the Warrant Shares (other than Warrant Shares to be issued upon
exercise of any Private Warrant) is current. The Company shall use its best efforts to have a
registration statement in effect covering Warrant Shares issuable upon exercise of the Warrants
(other than Warrant Shares to be issued upon exercise of any Private Warrant) from the date the
Warrants become exercisable and to maintain a current prospectus relating to those Warrant Shares
until the Warrants expire or are redeemed. In the event that, at the end of the Warrant Exercise
Period, a registration statement covering the Warrant Shares to be issued upon exercise (other than
Warrant Shares to be issued upon exercise of any Private Warrant) is not effective under the Act,
all the rights of holders hereunder shall terminate and all of the Warrants shall expire
unexercised and worthless, and as a result purchasers of the Units will have paid the full Unit
price solely for the share of Common Stock included in each Unit. In no event shall the Warrants
be settled on a net cash basis nor shall the Company be required to issue unregistered shares upon
the exercise of any Warrant that is not a Private Warrant.

          (f)     Expiry Upon Liquidation of Trust Account. If the Company is dissolved because it
fails to effect an Initial Business Combination, all of the rights of holders hereunder shall
terminate and all of the Warrants shall expire unexercised and worthless and as a result purchasers
of the Units will have paid the full Unit purchase price solely for the share of Common Stock
included in each Unit.

          (g)     Adjustment of Founder’s Warrants.

               (i)     If the underwriters with respect to the Initial Public Offering do not exercise the
over-allotment option granted to them by the Company, the number of Founder’s Units necessary to
ensure that the aggregate amount of Founder’s Shares held by the Founding Stockholder and any
Permitted Transferee does not exceed 20% of the issued and outstanding Common Stock of the Company
upon consummation of the Initial Public Offering shall be immediately forfeited to the Company by
their holders. The Company will not make any cash

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payment to the Founding Stockholder or any Permitted Transferee in respect of any such
adjustment.

               (ii)     If the number of Units offered to the public in connection with the Initial Public
Offering is increased or decreased, the Founder’s Units (including the Founder’s Units subject to
forfeiture) will be adjusted in the same proportion as the increase or decrease of the Units
offered to the public in order to ensure that the aggregate amount of Founder’s Shares held by the
Founding Stockholder and any Permitted Transferee does not fall below or exceed 20% of the issued
and outstanding Common Stock of the Company upon consummation of the Initial Public Offering
(including any shares of Common Stock issued pursuant to the underwriter’s over-allotment option).
The Company will not make or receive any cash payment to or from the Founding Stockholder or any
Permitted Transferees in respect of any such adjustment.

               (iii)     Any additional Units, shares of Common Stock and Warrants the Founding Stockholder or
any of its Permitted Transferees may hold pursuant to (ii) above shall be deemed to be Founder’s
Units, Founder’s Shares and Founder’s Warrants hereunder and any such Warrants (A) shall be subject
to the transfer restrictions and adjustment provisions set forth in this Agreement with respect
thereto, and (B) shall bear the legend set forth in this Agreement with respect thereto.

     SECTION 7. Payment of Taxes. The Company will pay all documentary stamp taxes
attributable to the initial issuance of Warrant Shares upon the exercise of Warrants; provided,
however, that the Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issue of any Warrant Certificates or any certificates for
Warrant Shares in a name other than that of the registered holder of a Warrant Certificate
surrendered upon the exercise of a Warrant, and the Company shall not be required to issue or
deliver such Warrant Certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

     SECTION 8. Mutilated or Missing Warrant Certificates. In case any of the Warrant
Certificates shall be mutilated, lost, stolen or destroyed, the Company shall issue and the Warrant
Agent shall countersign, in exchange and substitution for and upon cancellation of the mutilated
Warrant Certificate, or in lieu of and substitution for the Warrant Certificate lost, stolen or
destroyed, a new Warrant Certificate of like tenor and representing an equivalent number of
Warrants, but only upon receipt of evidence satisfactory to the Company and the Warrant Agent of
such loss, theft or destruction of such Warrant Certificate and indemnity, also satisfactory to the
Company and the Warrant Agent. Applicants for such new Warrant Certificates must pay such
reasonable charges as the Company may prescribe.

     SECTION 9. Reservation of Warrant Shares. The Company will at all times reserve and
keep available, free from preemptive rights, out of the aggregate of its authorized but unissued
Common Stock or its authorized and issued Common Stock held in its treasury, for the purpose of
enabling it to satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the
maximum number of shares of Common Stock which may then be deliverable

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upon the exercise of all outstanding Warrants. The Warrant Agent shall have no duty to verify
availability of such shares set aside by the Company.

     The Company or, if appointed, the transfer agent for the Common Stock (the “Transfer Agent”)
and every subsequent transfer agent for any shares of the Common Stock issuable upon the exercise
of any of the Warrants will be irrevocably authorized and directed at all times to reserve such
number of authorized shares as shall be required for such purpose. The Company will keep a copy of
this Agreement on file with the Transfer Agent and with every subsequent transfer agent for any
shares of the Common Stock issuable upon the exercise of the Warrants. The Warrant Agent is hereby
irrevocably authorized to requisition from time to time from such Transfer Agent the stock
certificates required to honor outstanding Warrants upon exercise thereof in accordance with the
terms of this Agreement. The Company will supply such Transfer Agent with duly executed
certificates for such purposes. The Company will furnish such Transfer Agent a copy of all notices
of adjustments and certificates related thereto, transmitted to each holder pursuant to Section 13
hereof.

     Before taking any action which would cause an adjustment pursuant to Section 11 hereof to
reduce the Exercise Price below the then par value (if any) of the Warrant Shares, the Company will
take any commercially reasonable corporate action which may, in the opinion of its counsel (which
may be counsel employed by the Company), be necessary in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares at the Exercise Price as so adjusted.

     The Company covenants that all Warrant Shares which may be issued upon exercise of Warrants
will, upon payment of the Exercise Price therefor or on a cashless basis pursuant to Section 6(d),
if applicable, and issue, be fully paid, nonassessable, free of preemptive rights and free from all
taxes, liens, charges and security interests with respect to the issue thereof.

     SECTION 10. Obtaining Stock Exchange Listings; State Registration. The Company will
from time to time take all commercially reasonable actions which may be necessary so that the
Warrant Shares, immediately upon their issuance upon the exercise of Warrants, will be listed on
the principal securities exchanges and markets within the United States of America, if any, on
which other shares of Common Stock are then listed. To the extent that the Common Stock is not
listed on a national securities exchange or there is no exemption from state “blue sky” securities
laws for the issuance of the Warrant Shares, the Company will take all commercially reasonable
actions which may be necessary so that the Warrant Shares are registered in all states in which the
holders of the Warrants reside.

     SECTION 11. Adjustment of Number of Warrant Shares.

     The number of Warrant Shares issuable upon the exercise of each Warrant is subject to
adjustment from time to time upon the occurrence of the events enumerated in this Section 11. For
purposes of this Section 11, “Common Stock” means shares now or hereafter authorized of any class
of common stock of the Company and any other stock of the Company, however designated, that has the
right (subject to any prior rights of any class or series of preferred stock) to participate in any
distribution of the assets or earnings of the Company without limit as to per share amount.

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          (a)     Adjustment for Change in Capital Stock.

     If the Company:

     (1) pays a dividend or makes a distribution on its Common Stock in either case in shares of its Common Stock;

     (2) subdivides its outstanding shares of Common Stock into a greater number of shares;

     (3) combines its outstanding shares of Common Stock into a smaller number of shares;

     (4) makes a distribution on its Common Stock in shares of its capital stock other than
Common Stock; or

     (5) issues by reclassification of its Common Stock any shares of its capital stock,

then the number of shares of Common Stock issuable upon exercise of each Warrant immediately prior
to such action shall be proportionately adjusted so that the holder of any Warrant thereafter
exercised shall receive the aggregate number and kind of shares of capital stock of the Company
which he would have owned immediately following such action if such Warrant had been exercised
immediately prior to such action.

     The adjustment shall become effective immediately after the record date in the case of a
dividend or distribution and immediately after the effective date in the case of a subdivision,
combination or reclassification.

     Such adjustment shall be made successively whenever any event listed above shall occur.

          (b)     Adjustment for Rights Issue.

     If the Company distributes any rights, options or warrants to all holders of its Common Stock
entitling them to purchase shares of Common Stock at a price per share less than the Closing Price
per share on the Business Day immediately preceding the ex-dividend date for such distribution of
rights, options or warrants, the number of shares of Common Stock issuable upon exercise of each
Warrant shall be adjusted in accordance with the formula:

     

     where:

     N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.

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     N = the current number of shares of Common Stock issuable upon exercise of each Warrant.

     O = the number of shares of Common Stock outstanding on the record date for such distribution.

     A = the number of additional shares of Common Stock issuable pursuant to such rights, options
or warrants.

     P = the purchase price per share of the additional shares.

     M = the Closing Price per share of Common Stock on the record date.

     The adjustment shall be made successively whenever any such rights, options or warrants are
issued and shall become effective immediately after the record date for the determination of
stockholders entitled to receive the rights, options or warrants. If at the end of the period
during which such rights, options or warrants are exercisable, not all rights, options or warrants
shall have been exercised, the number of shares of Common Stock issuable upon exercise of each
Warrant shall be immediately readjusted to what it would have been if “N” in the above formula had
been the number of shares actually issued.

          (c)     Adjustment for Other Distributions.

     If the Company distributes to all holders of its Common Stock any of its assets (including
cash) or debt securities or any rights, options or warrants to purchase debt securities, assets or
other securities of the Company (other than Common Stock), the number of shares of Common Stock
issuable upon exercise of each Warrant shall be adjusted in accordance with the formula:

     

     where:

     N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.

     N = the current number of shares of Common Stock issuable upon exercise of each Warrant.

     M = the Closing Price per share of Common Stock on the Business Day immediately preceding the
ex-dividend date for such distribution.

     F = the fair market value on the ex-dividend date for such distribution of the assets,
securities, rights, options or warrants distributable to one share of Common Stock after taking
into account, in the case of any rights, options or warrants, the consideration required to be paid
upon exercise thereof. The Board of Directors shall reasonably determine the fair market value in
good faith.

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     The adjustment shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of stockholders entitled
to receive such distribution.

     This subsection (c) does not apply to regular quarterly cash dividends including increases
thereof or rights, options or warrants referred to in subsection (b) of this Section 11. If any
adjustment is made pursuant to this subsection (c) as a result of the issuance of rights, options
or warrants and at the end of the period during which any such rights, options or warrants are
exercisable, not all such rights, options or warrants shall have been exercised, the Warrant shall
be immediately readjusted as if “F” in the above formula was the fair market value on the
ex-dividend date for such distribution of the indebtedness or assets actually distributed upon
exercise of such rights, options or warrants divided by the number of shares of Common Stock
outstanding on the ex-dividend date for such distribution. Notwithstanding anything to the
contrary contained in this subsection (c), if “M-F” in the above formula is less than $1.00, the
Company may elect to, and if “M-F” or is a negative number, the Company shall, in lieu of the
adjustment otherwise required by this subsection (c), distribute to the holders of the Warrants,
upon exercise thereof, the evidences of indebtedness, assets, rights, options or warrants (or the
proceeds thereof) which would have been distributed to such holders had such Warrants been
exercised immediately prior to the record date for such distribution.

          (d)     Adjustment for Common Stock Issue.

     If the Company issues shares of Common Stock for a consideration per share less than the
Closing Price per share on the date the Company fixes the offering price of such additional shares,
the number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in
accordance with the formula:

     

     where:

     N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.

     N = the current number of shares of Common Stock issuable upon exercise of each Warrant.

     O = the number of shares outstanding immediately prior to the issuance of such additional
shares.

     P = the aggregate consideration received for the issuance of such additional shares.

     M = the Closing Price per share on the date of issuance of such additional shares.

     A = the number of shares outstanding immediately after the issuance of such additional shares.

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     The adjustment shall be made successively whenever any such issuance is made, and shall become
effective immediately after such issuance.

     This subsection (d) does not apply to:

     (1) any of the transactions described in subsections (b) and (c) of this Section 11,

     (2) the exercise of Warrants, or the conversion or exchange of other securities
convertible or exchangeable for Common Stock, or the issuance of Common Stock upon the
exercise of rights or warrants issued to the holders of Common Stock,

     (3) Common Stock (and options exercisable therefor) issued to the Company’s employees,
officers, directors, consultants or advisors (whether or not still in such capacity on the
date of exercise) under bona fide employee benefit plans or stock option plans adopted by
the Board of Directors of the Company and approved by the holders of Common Stock when
required by law, if such Common Stock would otherwise be covered by this subsection (d),

     (4) Common Stock issued in a bona fide public offering for cash,

     (5) Common Stock issued in a bona fide private placement to non-affiliates of the
Company, including without limitation the issuance of equity as consideration or partial
consideration for acquisitions from persons that are not affiliates of the Company.

          (e)     Adjustment for Convertible Securities Issue.

     If the Company issues any securities convertible into or exchangeable for Common Stock (other
than securities issued in transactions described in subsections (b) and (c) of this Section 11) for
a consideration per share of Common Stock initially deliverable upon conversion or exchange of such
securities less than the Closing Price per share on the date of issuance of such securities, the
number of shares of Common Stock issuable upon exercise of each Warrant shall be adjusted in
accordance with this formula:

     

     where:

     N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant.

     N = the current number of shares of Common Stock issuable upon exercise of each Warrant.

     O = the number of shares outstanding immediately prior to the issuance of such securities.

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     P = the aggregate consideration received for the issuance of such securities.

     M = the Closing Price per share on the date of issuance of such securities.

     D = the maximum number of shares deliverable upon conversion or in exchange for such
securities at the initial conversion or exchange rate.

     The adjustment shall be made successively whenever any such issuance is made, and shall become
effective immediately after such issuance.

     If all of the Common Stock deliverable upon conversion or exchange of such securities have not
been issued when such securities are no longer outstanding, then the number of shares of Common
Stock issuable upon exercise of each Warrant shall promptly be readjusted to what it would have
been had the adjustment upon the issuance of such securities been made on the basis of the actual
number of shares of Common Stock issued upon conversion or exchange of such securities.

     This subsection (e) does not apply to:

     (1) convertible securities issued in a bona fide public offering for cash; or

     (2) convertible securities issued in a bona fide private placement to non-affiliates of
the Company, including the issuance of convertible securities as consideration or partial
consideration for acquisitions from persons that are not affiliates of the Company.

          (f)     Adjustment for Tender or Exchange Offer. If the Company or any of its
subsidiaries makes a payment in respect of a tender offer or exchange offer for the Common Stock,
if the cash and value of any other consideration included in the payment per share of the Common
Stock exceeds the Closing Price of the Common Stock on the trading day next succeeding the last
date on which tenders or exchanges may be made pursuant to such tender or exchange offer, the
number of shares of Common Stock issuable upon exercise of each Warrant will be increased based on
the following formula:

     

where,

     N’ = the adjusted number of shares of Common Stock issuable upon exercise of each Warrant;

     No = the current number of shares of Common Stock issuable upon exercise of each warrant;

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     AC = the aggregate value of all cash and any other consideration (as determined by the Board
of Directors of the Company) paid or payable for shares purchased in such tender or exchange offer;

     OSo = the number of shares of Common Stock outstanding immediately prior to the date such
tender or exchange offer expires;

     OS’ = the number of shares of Common Stock outstanding immediately after the date such tender
or exchange offer expires; and

     SP’ = the Closing Price of the Common Stock on the trading day next succeeding the date such
tender or exchange offer expires.

     The adjustment shall be made successively and shall become effective immediately following the
date such tender or exchange offer expires.

          (g)     Consideration Received.

     For purposes of any computation respecting consideration received pursuant to subsections (d),
(e) and (f) of this Section 11, the following shall apply:

     (1) in the case of the issuance of shares of Common Stock for cash, the consideration
shall be the amount of such cash, provided that in no case shall any deduction be made for
any commissions, discounts or other expenses incurred by the Company for any underwriting or
other sale or disposition of the issue or otherwise in connection therewith;

     (2) in the case of the issuance of shares of Common Stock for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed to be the fair
market value thereof as reasonably determined by the Board of Directors of the Company
(irrespective of the accounting treatment thereof) and described in a Board resolution which
shall be filed with the Warrant Agent; and

     (3)
in the case of the issuance of securities convertible into or exchangeable for shares, the aggregate consideration received therefor shall be deemed to be the
consideration received by the Company for the issuance of such securities plus the
additional minimum consideration, if any, to be received by the Company upon the conversion
or exchange thereof for the maximum number of shares used to calculate the adjustment (the
consideration in each case to be determined in the same manner as provided in clauses (1)
and (2) of this subsection).

          (h)     Defined Terms; When De Minimis Adjustment May Be Deferred.

     As used in this section 11:

     (1) “ex-dividend date” means the first date on which the shares of Common Stock trade
on the applicable exchange or in the applicable market, regular way, without the right to
receive the issuance or distribution in question;

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     (2) “trading day” means, with respect to the Common Stock or any other security, a day
during which (i) trading in the Common Stock or such other security generally occurs, (ii)
there is no market disruption event (as defined below) and (iii) a Closing Price for the
Common Stock or such other security (other than a Closing Price referred to in the next to
last clause of such definition) is available for such day; provided that if the Common Stock
or such other security is not admitted for trading or quotation on or by any exchange,
bureau or other organization, “trading day” will mean any Business Day;

     (3) “market disruption event” means, with respect to the Common Stock or any other
security, the occurrence or existence of more than one-half hour period in the aggregate or
any scheduled trading day for the Common Stock or such other security of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by
the stock exchange or otherwise) in the Common Stock or such other security or in any
options, contract, or future contracts relating to the Common Stock or such other security,
and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York
time) on such day; and

     (4) “Business Day” means, any day on which the American Stock Exchange is open for
trading and which is not a Saturday, a Sunday or any other day on which banks in the City of
New York, New York, are authorized or required by law to close.

     No adjustment in the number of shares of Common Stock issuable upon exercise of each Warrant
need be made unless the adjustment would require an increase or decrease of at least 1% in such
number. Any adjustments that are not made shall be carried forward and taken into account in any
subsequent adjustment.

     All calculations under this Section 11 shall be made to the nearest cent or to the nearest
1/100th of a share, as the case may be.

          (i)     When No Adjustment Required.

     No adjustment need be made for a transaction referred to in subsections (b), (c), (d), (e) or
(f) of this Section 11 if Warrant holders are to participate, without requiring the Warrants to be
exercised, in the transaction on a basis and with notice that the Board of Directors of the Company
reasonably determines to be fair and appropriate in light of the basis and notice on which holders
of Common Stock participate in the transaction.

     No adjustment need be made for a change in the par value or no par value of the Common Stock.

     To the extent the Warrants become convertible into cash, no adjustment need be made thereafter
as to the amount of cash into which such Warrants are exercisable. Interest will not accrue on the
cash.

          (j)     Notice of Adjustment.

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     Whenever the number of shares of Common Stock issuable upon exercise of each Warrant is
adjusted, the Company shall provide the notices required by Section 13 hereof.

          (k)     Notice of Certain Transactions.

     If:

     (1) the Company takes any action that would require an adjustment in the Exercise Price
pursuant to subsections (a), (b), (c), (d), (e) or (f) of this Section 11 and if the Company
does not arrange for Warrant holders to participate pursuant to subsection (i) of this
Section 11;

     (2) the Company takes any action that would require a supplemental Warrant Agreement
pursuant to subsection (l) of this Section 11; or

     (3) there is a liquidation or dissolution of the Company,

     the Company shall mail to Warrant holders a notice stating the proposed record date for a
dividend or distribution or the proposed effective date of a subdivision, combination,
reclassification, consolidation, merger, transfer, lease, liquidation or dissolution. The Company
shall mail the notice at least 15 days before such date. Failure to mail the notice or any defect
in it shall not affect the validity of the transaction.

          (l)     Reorganization of Company.

     If the Company consolidates or merges with or into, or transfers or leases all or
substantially all its assets to, any person, upon consummation of such transaction the Warrants
shall automatically become exercisable for the kind and amount of securities, cash or other assets
which the holder of a Warrant would have owned immediately after the consolidation, merger,
transfer or lease if such holder had exercised the Warrant immediately before the effective date of
the transaction; provided that (i) if the holders of Common Stock were entitled to exercise a right
of election as to the kind or amount of securities, cash or other assets receivable upon such
consolidation or merger, then the kind and amount of securities, cash or other assets for which
each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and
amount received per share by the holders of Common Stock in such consolidation or merger that
affirmatively make such election or (ii) if a tender or exchange offer shall have been made to and
accepted by the holders of Common Stock under circumstances in which, upon completion of such
tender or exchange offer, the maker thereof, together with members of any group (within the meaning
of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of
which such maker is a part, and together with any affiliate or associate of such maker (within the
meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such
affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the
Exchange Act) more than 50% of the outstanding shares of Common Stock, the holder of a Warrant
shall be entitled to receive the highest amount of cash, securities or other property to which such
holder would actually have been entitled as a shareholder if such Warrant holder had exercised the
Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of
the Common Stock held by such holder had been purchased pursuant to such tender or exchange offer,
subject to adjustments (from and

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after the consummation of such tender or exchange offer) as nearly equivalent as possible to
the adjustments provided for in this Section 11. Concurrently with the consummation of any such
transaction, the corporation or other entity formed by or surviving any such consolidation or
merger if other than the Company, or the person to which such sale or conveyance shall have been
made, shall enter into a supplemental Warrant Agreement so providing and further providing for
adjustments which shall be as nearly equivalent as may be practical to the adjustments provided for
in this Section. The successor Company shall mail to Warrant holders a notice describing the
supplemental Warrant Agreement.

     If the issuer of securities deliverable upon exercise of Warrants under the supplemental
Warrant Agreement is an affiliate of the formed, surviving, transferee or lessee corporation, that
issuer shall join in the supplemental Warrant Agreement.

     If this subsection (l) applies, subsections (a), (b), (c), (d), (e) and (f) of this Section 11
do not apply.

          (m)     Warrant Agent’s Disclaimer.

     The Warrant Agent has no duty to determine when an adjustment under this Section 11 should be
made, how it should be made or what it should be. The Warrant Agent has no duty to determine
whether any provisions of a supplemental Warrant Agreement under subsection (l) of this Section 11
are correct. The Warrant Agent makes no representation as to the validity or value of any
securities or assets issued upon exercise of Warrants. The Warrant Agent shall not be responsible
for the Company’s failure to comply with this Section.

          (n)     When Issuance May Be Deferred.

     In any case in which this Section 11 shall require that an adjustment in the number of shares
of Common Stock issuable upon exercise of each Warrant be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such event issuing to the
holder of any Warrant exercised after such record date the Warrant Shares and other capital stock
of the Company, if any, issuable upon such exercise over and above the Warrant Shares and other
capital stock of the Company, if any, issuable upon such exercise on the basis of the number of
shares of Common Stock issuable upon exercise of each Warrant; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional Warrant Shares and other capital stock upon the occurrence of the
event requiring such adjustment.

          (o)     Adjustment in Exercise Price.

     Upon each event that provides for an adjustment of the number of shares of Common Stock
issuable upon exercise of each Warrant pursuant to this Section 11, each Warrant outstanding prior
to the making of the adjustment shall thereafter have an adjusted Exercise Price (calculated to the
nearest ten millionth) obtained from the following formula:

     

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     where:

     E’ = the adjusted Exercise Price.

     E = the Exercise Price prior to adjustment.

     N’ = the adjusted number of Warrant Shares issuable upon exercise of a Warrant by payment of
the adjusted Exercise Price.

     N = the number of Warrant Shares previously issuable upon exercise of a Warrant by payment of
the Exercise Price prior to adjustment.

     Following any adjustment to the Exercise Price pursuant to this Section 11, the amount
payable, when adjusted and together with any consideration allocated to the issuance of the
Warrants, shall never be less than the par value per Warrant Share at the time of such adjustment.
Such adjustment shall be made successively whenever any event listed above shall occur.

          (p)     Form of Warrants.

     Irrespective of any adjustments in the number or kind of shares issuable upon the exercise of
the Warrants or the Exercise Price, Warrants theretofore or thereafter issued may continue to
express the same number and kind of shares and Exercise Price as are stated in the Warrants
initially issuable pursuant to this Agreement.

          (q)     Other Dilutive Events.

     In case any event shall occur affecting the Company, as to which the provisions of this
Section 11 are not strictly applicable, but would impact the holders of Warrants adversely as
compared to holders of Common Stock, and the failure to make any adjustment would not fairly
protect the purchase rights represented by the Warrants in accordance with the essential intent and
principles of this Section then, in each such case, the Company shall appoint a firm of independent
public accountants, investment banking or other appraisal firm of recognized national standing
which shall give their opinion upon the adjustment, if any, on a basis consistent with the
essential intent and principles established in this Section 11, necessary to preserve, without
dilution, the purchase rights represented by the Warrants.

     The provisions of this Section 11 shall not apply until issuance of the Public Warrants.

     SECTION 12. Fractional Interests. The Company shall not be required to issue
fractional Warrant Shares on the exercise of Warrants. If more than one Warrant shall be presented
for exercise in full at the same time by the same holder, the number of full Warrant Shares which
shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number
of Warrant Shares purchasable on exercise of the Warrants so presented. If any fraction of a
Warrant Share would, except for the provisions of this Section 12, be issuable on the exercise of
any Warrants (or specified portion thereof), the Company shall, upon such exercise, round up to the
nearest whole number of number of Warrant Shares to be issued to the Warrant holder.

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     SECTION 13. Notices to Warrant Holders. Upon any adjustment of the Exercise Price
pursuant to Section 11, the Company shall promptly thereafter, and in any event within five days,
(i) cause to be filed with the Warrant Agent a certificate executed by the Chief Financial Officer
or principal financial officer of the Company setting forth the number of Warrant Shares issuable
upon exercise of each Warrant after such adjustment and setting forth in reasonable detail the
method of calculation and the facts upon which such calculations are based, and (ii) cause to be
given to each of the registered holders of the Warrant Certificates at his address appearing on the
Warrant register written notice of such adjustments by first-class mail, postage prepaid. Where
appropriate, such notice may be given in advance and included as a part of the notice required to
be mailed under the other provisions of this Section 13. The Warrant Agent shall be fully
protected in relying on any such certificate and on any adjustment therein contained and shall not
be deemed to have knowledge of such adjustment unless and until it shall have received such
certificate.

     In case:

          (a)     the Company shall authorize the issuance to all holders of shares of Common Stock of
rights, options or warrants to subscribe for or purchase shares of Common Stock or of any other
subscription rights or warrants; or

          (b)     the Company shall authorize the distribution to all holders of shares of Common Stock of
evidences of its indebtedness or assets (other than regular cash dividends or dividends payable in
shares of Common Stock or distributions referred to in subsection (b) of Section 11 hereof); or

          (c)     of any consolidation or merger to which the Company is a party and for which approval of
any shareholders of the Company is required, or of the conveyance or transfer of the properties and
assets of the Company substantially as an entirety, or of any reclassification or change of Common
Stock issuable upon exercise of the Warrants (other than a change in par value, or from par value
to no par value, or from no par value to par value, or as a result of a subdivision or
combination), or a tender offer or exchange offer for shares of Common Stock; or

          (d)     of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or

          (e)     the Company proposes to take any action not specified above which would require an
adjustment of the Exercise Price pursuant to Section 11 hereof;

     then the Company shall cause to be filed with the Warrant Agent and shall cause to be given to each
of the registered holders of the Warrant Certificates at his address appearing on the Warrant
register, at least 10 calendar days prior to the applicable record date hereinafter specified, or
as promptly as practicable under the circumstances in the case of events for which there is no
record date, by first-class mail, postage prepaid, a written notice stating (i) the date as of
which the holders of record of shares of Common Stock to be entitled to receive any such rights,
options, warrants or distribution are to be determined, or (ii) the initial expiration date set
forth in any tender offer or exchange offer for shares of Common Stock, or (iii) the date on which
any such consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up is
expected to

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become effective or consummated, and the date as of which it is expected that holders of record of
shares of Common Stock shall be entitled to exchange such shares for securities or other property,
if any, deliverable upon such reclassification, consolidation, merger, conveyance, transfer,
dissolution, liquidation or winding up. The failure to give the notice required by this Section 13
or any defect therein shall not affect the legality or validity of any distribution, right, option,
warrant, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up, or
the vote upon any action.

     Nothing contained in this Agreement or in any of the Warrant Certificates shall be construed
as conferring upon the holders thereof the right to vote or to consent or to receive notice as
shareholders in respect of the meetings of shareholders or the election of Directors of the Company
or any other matter, or any rights whatsoever as shareholders of the Company.

     SECTION 14. Merger, Consolidation or Change of Name 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,
or any corporation succeeding to all or substantially all the corporate trust or agency business of
the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution or
filing of any paper or any further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor warrant agent under the provisions of
Section 16. In case at the time such successor to the Warrant Agent shall succeed to the agency
created by this Agreement, and in case at that time any of the Warrant Certificates shall have been
countersigned but not delivered, any such successor to the Warrant Agent may adopt the
countersignature of the original Warrant Agent; and in case at that time any of the Warrant
Certificates shall not have been countersigned, any successor to the Warrant Agent may countersign
such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the
successor to the Warrant Agent; and in all such cases such Warrant Certificates shall have the full
force and effect provided in the Warrant Certificates and in this Agreement.

     In case at any time the name of the Warrant Agent shall be changed and at such time any of the
Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent whose name
has been changed may adopt the countersignature under its prior name, and in case at that time any
of the Warrant Certificates shall not have been countersigned, the Warrant Agent may countersign
such Warrant Certificates either in its prior name or in its changed name, and in all such cases
such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates
and in this Agreement.

     SECTION 15. Warrant Agent. The Warrant Agent undertakes the duties and obligations
imposed by this Agreement (and no implied duties or obligations shall be read into this Agreement
against the Warrant Agent) upon the following terms and conditions, by all of which the Company and
the holders of Warrants, by their acceptance thereof, shall be bound:

          (a)     The statements contained herein and in the Warrant Certificates shall be taken as
statements of the Company and the Warrant Agent assumes no responsibility for the correctness of
any of the same except such as describe the Warrant Agent or action taken or to be

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taken by it. The Warrant Agent assumes no responsibility with respect to the distribution of
the Warrant Certificates except as herein otherwise provided.

          (b)     The Warrant Agent shall not be responsible for any failure of the Company to comply with
any of the covenants contained in this Agreement or in the Warrant Certificates to be complied with
by the Company.

          (c)     The Warrant Agent may consult at any time with counsel of its own selection (who may be
counsel for the Company) and the Warrant Agent shall incur no liability or responsibility to the
Company or to any holder of any Warrant Certificate in respect of any action taken, suffered or
omitted by it hereunder in good faith and in accordance with the opinion or the advice of such
counsel. The Warrant Agent may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or through agents or attorneys and the Warrant Agent shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

          (d)     The Warrant Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to the
Warrant Agent and conforming to the requirements of this Agreement. The Warrant Agent shall incur
no liability or responsibility to the Company or to any holder of any Warrant Certificate for any
action taken in reliance on any Warrant Certificate, certificate of shares, notice, resolution,
waiver, consent, order, certificate, or other paper, document or instrument (whether in its
original or facsimile form) believed by it to be genuine and to have been signed, sent or presented
by the proper party or parties.

          (e)     The Company agrees to pay to the Warrant Agent such compensation for all services rendered
by the Warrant Agent in the administration and execution of this Agreement as the Company and the
Warrant Agent shall agree in writing to reimburse the Warrant Agent for all expenses, taxes and
governmental charges and other charges of any kind and nature incurred by the Warrant Agent in the
execution of this Agreement (including fees and expenses of its counsel) and to indemnify the
Warrant Agent (and any predecessor Warrant Agent) and save it harmless against any and all claims
(whether asserted by the Company, a holder or any other person), damages, losses, expenses
(including taxes other than taxes based on the income of the Warrant Agent), liabilities, including
judgments, costs and counsel fees and expenses, for anything done or omitted by the Warrant Agent
in the execution of this Agreement except as a result of its negligence or willful misconduct. The
provisions of this Section 15(e) shall survive the expiration of the Warrants and the termination
of this Agreement.

          (f)     The Warrant Agent shall be under no obligation to institute any action, suit or legal
proceeding or to take any other action likely to involve expense unless the Company or one or more
registered holders of Warrant Certificates shall furnish the Warrant Agent with security and
indemnity satisfactory to it for any costs and expenses which may be incurred, but this provision
shall not affect the power of the Warrant Agent to take such action as it may consider proper,
whether with or without any such security or indemnity. All rights of action under this Agreement
or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of
the Warrant Certificates or the production thereof at any trial or other proceeding relative
thereto, and any such action, suit or proceeding instituted by the

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Warrant Agent shall be brought in its name as Warrant Agent and any recovery of judgment shall
be for the ratable benefit of the registered holders of the Warrants, as their respective rights or
interests may appear.

          (g)     The Warrant Agent, and any stockholder, director, officer or employee of it, may buy, sell
or deal in any of the Warrants or other securities of the Company or become pecuniarily interested
in any transaction in which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Warrant Agent under this
Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for
the Company or for any other legal entity.

          (h)     The Warrant Agent shall act hereunder solely as agent for the Company, and its duties
shall be determined solely by the provisions hereof. The Warrant Agent shall not be liable for
anything that it may do or refrain from doing in connection with this Agreement except for its own
negligence or willful misconduct. The Warrant Agent shall not be liable for any error of judgment
made in good faith by it, unless it shall be proved that the Warrant Agent was negligent in
ascertaining the pertinent facts. Notwithstanding anything in this Agreement to the contrary, in
no event shall the Warrant Agent be liable for special, indirect, punitive or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits), even if the Warrant
Agent has been advised of the likelihood of the loss or damage and regardless of the form of the
action.

          (i)     The Warrant Agent shall not at any time be under any duty or responsibility to any holder
of any Warrant Certificate to make or cause to be made any adjustment of the Exercise Price or
number of the Warrant Shares or other securities or property deliverable as provided in this
Agreement, or to determine whether any facts exist which may require any of such adjustments, or
with respect to the nature or extent of any such adjustments, when made, or with respect to the
method employed in making the same. The Warrant Agent shall not be accountable with respect to the
validity or value or the kind or amount of any Warrant Shares or of any securities or property
which may at any time be issued or delivered upon the exercise of any Warrant or with respect to
whether any such Warrant Shares or other securities will when issued be validly issued and fully
paid and nonassessable, and makes no representation with respect thereto.

          (j)     Notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Warrant Agent shall have any liability to any holder of a Warrant Certificate or other Person as a
result of its inability to perform any of its obligations under this Agreement by reason of any
preliminary or permanent injunction or other order, decree or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any governmental authority
prohibiting or otherwise restraining performance of such obligation; provided that (i) the Company
must use its reasonable best efforts to have any such order, decree or ruling lifted or otherwise
overturned as soon as possible and (ii) nothing in this Section 15(j) shall affect the Company’s
obligation under Section 6(e) to use its best efforts to have a registration statement in effect
covering the Warrant Shares issuable upon exercise of the Warrants and to maintain a current
prospectus relating to those Warrant Shares.

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          (k)     Any application by the Warrant Agent for written instructions from the Company may, at the
option of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the
Warrant Agent under this Agreement and the date on and/or after which such action shall be taken or
such omission shall be effective. The Warrant Agent shall not be liable for any action taken by,
or omission of, the Warrant Agent in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than three Business Days
after the date any officer of the Company actually receives such application, unless any such
officer shall have consented in writing to any earlier date) unless prior to taking any such action
(or the effective date in the case of an omission), the Warrant Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.

          (l)     No provision of this Agreement shall require the Warrant Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights.

          (m)     In addition to the foregoing, the Warrant Agent shall be protected and shall incur no
liability for, or in respect of, any action taken or omitted by it in connection with its
administration of this Agreement if such acts or omissions are not the result of the Warrant
Agent’s reckless disregard of its duty, gross negligence or willful misconduct and are in reliance
upon (i) the proper execution of the certification concerning beneficial ownership appended to the
form of assignment and the form of the election attached hereto unless the Warrant Agent shall have
actual knowledge that, as executed, such certification is untrue, or (ii) the non-execution of such
certification including, without limitation, any refusal to honor any otherwise permissible
assignment or election by reason of such non-execution.

     SECTION 16. Change of Warrant Agent. The Warrant Agent may at any time resign as
Warrant Agent upon written notice to the Company. If the Warrant Agent shall become incapable of
acting as Warrant Agent, the Company shall appoint a successor to such 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 of such incapacity by the Warrant Agent or by the registered
holder of a Warrant Certificate, then the registered holder of any Warrant Certificate or the
Warrant Agent may apply, at the expense of the Company, to any court of competent jurisdiction for
the appointment of a successor to the Warrant Agent. Pending appointment of a successor to such
Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be
carried out by the Company. The holders of a majority of the unexercised Warrants shall be
entitled at any time to remove the Warrant Agent and appoint a successor to such Warrant Agent. If
a Successor Warrant Agent shall not have been appointed within 30 days of such removal, the Warrant
Agent may apply, at the expense of the Company, to any court of competent jurisdiction for the
appointment of a successor to the Warrant Agent. Such successor to the Warrant Agent need not be
approved by the Company or the former Warrant Agent. After appointment the successor to the
Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it
had been originally named as Warrant Agent without further act or deed; but the former Warrant
Agent upon payment of all fees and expenses due it and its agents and counsel shall deliver and
transfer to the successor to the Warrant Agent any property at the time held by it hereunder and
execute and deliver any further assurance, conveyance, act or deed necessary for the purpose.
Failure to give any notice

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provided for in this Section 16, however, or any defect therein, shall not affect the legality
or validity of the appointment of a successor to the Warrant Agent.

     SECTION 17. Notices to Company and Warrant Agent. Any notice or demand authorized by
this Agreement to be given or made by the Warrant Agent or by the registered holder of any Warrant
Certificate to or on the Company shall be sufficiently given or made when and if deposited in the
mail, first class or registered, postage prepaid, addressed (until another address is filed in
writing by the Company with the Warrant Agent), as follows:

HCM Acquisition Company

13455 Noel Road, Suite 800

Dallas, Texas 75240

Fax No.: [(____) ___-______]

Attention: Chief Executive Officer

     In case the Company shall fail to maintain such office or agency or shall fail to give such
notice of the location or of any change in the location thereof, presentations may be made and
notices and demands may be served at the principal corporate trust office of the Warrant Agent.

     Any notice pursuant to this Agreement to be given by the Company or by the registered
holder(s) of any Warrant Certificate to the Warrant Agent shall be sufficiently given when and if
deposited in the mail, first-class or registered, postage prepaid, addressed (until another address
is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as follows:

American Stock Transfer & Trust Company

59 Maiden Lane, Plaza Level

New York, New York 10038

Attention: Compliance Department

     SECTION 18. Supplements and Amendments. The Company and the Warrant Agent may from
time to time supplement or amend this Agreement without the approval of any holders of Warrant
Certificates in order to cure any ambiguity or to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provision herein, or to make any other
provisions in regard to matters or questions arising hereunder which the Company and the Warrant
Agent may deem necessary or desirable and which shall not in any way adversely affect the interests
of the holders of Warrant Certificates theretofore issued. Upon the delivery of a certificate from
an appropriate officer of the Company that states that the proposed supplement or amendment is in
compliance with the terms of this Section 18, the Warrant Agent shall execute such supplement or
amendment. Notwithstanding anything in this Agreement to the contrary, the prior written consent
of the Warrant Agent must be obtained in connection with any supplement or amendment that alters
the rights or duties of the Warrant Agent. The Company and the Warrant Agent may amend any
provision herein with the consent of the holders of Warrants exercisable for a majority of the
Warrant Shares issuable on exercise of all outstanding Warrants that would be affected by such
amendment; provided that any amendment affecting the Public Warrants must be approved by
the holders of a majority of the Public Warrants. Without limiting the generality of the
foregoing, prior to the issuance of any Public Warrants, this Agreement (including Exhibit
A hereto) may be amended by the Company

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and the Warrant Agent, without the consent of any holder of Private Warrants, to modify in any
way or provide for the terms of the Public Warrants.

     SECTION 19. 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 hereunder.

     SECTION 20. Termination. This Agreement will terminate on any earlier date if all
Warrants have been exercised or expired without exercise. The provisions of Section 15 hereof
shall survive such termination.

     SECTION 21. Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of New York and for all
purposes shall be construed in accordance with the internal laws of said State. The parties agree
that, all actions and proceedings arising out of this Agreement or any of the transactions
contemplated hereby, shall be brought in the United States District Court for the Southern District
of New York or in a New York State Court in the County of New York and that, in connection with any
such action or proceeding, submit to the jurisdiction of, and venue in, such court. Each of the
parties hereto also irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim arising out of this Agreement or the transactions contemplated hereby.

     SECTION 22. Benefits of This Agreement. Nothing in this Agreement shall be construed
to give to any person or corporation other than the Company, the Warrant Agent and the registered
holders of the Warrant Certificates any legal or equitable right, remedy or claim under this
Agreement, and this Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent and the registered holders of the Warrant Certificates.

     SECTION 23. 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.

     SECTION 24. Force Majeure. In no event shall the Warrant Agent be responsible or
liable for any failure or delay in the performance of its obligations under this Agreement arising
out of or caused by, directly or indirectly, forces beyond its reasonable control, including
without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware) services.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of
the day and year first above written.

	 	 	 	 	 
	 	HCM ACQUISITION COMPANY 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST 

COMPANY, as Warrant Agent 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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EXHIBIT A

[Form of Warrant Certificate]

[Face]

Warrant Certificate

HCM ACQUISITION COMPANY.

     This Warrant Certificate certifies that ___, or registered assigns, is
the registered holder of ___warrants (the “Warrants”) to purchase shares of Common
Stock, $.001 par value (the “Common Stock”), of HCM Acquisition Company, a Delaware
corporation (the “Company”). Each Warrant entitles the holder, upon exercise during the
period set forth in the Warrant Agreement referred to below, to receive from the Company that
number of fully paid and nonassessable shares of Common Stock (each, a “Warrant Share”) as
set forth below at the exercise price (the “Exercise Price”) as determined pursuant to the
Warrant Agreement payable in lawful money of the United States of America upon surrender of this
Warrant Certificate and payment of the Exercise Price (or on a cashless basis, if applicable,
pursuant to the terms of the Warrant Agreement) at the office or agency of the Warrant Agent, but
only subject to the conditions set forth herein and in the Warrant Agreement.

     Each Warrant is initially exercisable for one share of Common Stock. The number of Warrant
Shares issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of
certain events set forth in the Warrant Agreement.

     The initial Exercise Price per share of Common Stock for any Warrant is equal to $7.50 per
share. The Exercise Price is subject to adjustment upon the occurrence of certain events set forth
in the Warrant Agreement.

     Warrants may be exercised only during the Warrant Exercise Period subject to the conditions
set forth in the Warrant Agreement and to the extent not exercised by the end of such Warrant
Exercise Period such Warrants shall become void.

     Reference is hereby made to the further provisions of this Warrant Certificate set forth on
the reverse hereof and such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

     This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent, as such
term is used in the Warrant Agreement.

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     This Warrant Certificate shall be governed and construed in accordance with the internal laws
of the State of New York, without regard to conflicts of laws principles thereof.

	 	 	 	 	 
	 	HCM ACQUISITION COMPANY 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Countersigned:

Dated: , 20

	 	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST 

COMPANY, as Warrant Agent 

By 

————————————————

Authorized Signatory 

 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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[Form of Warrant Certificate]

[Reverse]

     The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of
Warrants entitling the holder on exercise to receive shares of Common Stock, par value $0.001 per
share, of the Company (the “Common Stock”), and are issued or to be issued pursuant to a Warrant
Agreement dated as of [_________ ___, 2007] (the “Warrant Agreement”), duly executed and
delivered by the Company to American Stock Transfer & Trust Company, a New York corporation, as
warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by
reference in and made a part of this instrument and is hereby referred to for a description of the
rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent,
the Company and the holders (the words “holders” or “holder” meaning the registered holders or
registered holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder
hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not
defined herein shall have the meanings given to them in the Warrant Agreement.

     Warrants may be exercised at any time during the Warrant Exercise Period set forth in the
Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them
by surrendering this Warrant Certificate, with the form of election to purchase set forth hereon
properly completed and executed, together with payment of the Exercise Price as specified in the
Warrant Agreement (or on a cashless basis, if applicable, pursuant to the terms of the Warrant
Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon
any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the
total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his
assignee a new Warrant Certificate evidencing the number of Warrants not exercised. No adjustment
shall be made for any dividends on any Common Stock issuable upon exercise of this Warrant.

     Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant
may be exercised unless at the time of exercise (i) a registration statement covering the Warrant
Shares to be issued upon exercise (other than Warrant Shares to be issued upon exercise of any
Private Warrant) is effective under the Act and (ii) a prospectus thereunder relating to the
Warrant Shares (other than Warrant Shares to be issued upon exercise of any Private Warrant) is
current. In no event shall the Warrants be settled on a net cash basis during the Warrant Exercise
Period nor shall the Company be required to issue unregistered shares upon the exercise of any
Warrant that is not a Private Warrant.

     The Warrant Agreement provides that upon the occurrence of certain events the number of
Warrant Shares set forth on the face hereof may, subject to certain conditions, be adjusted. No
fractions of a share of Common Stock will be issued upon the exercise of any Warrant, but the
Company shall round up to the nearest whole number the number of Warrant Shares to be issued as
provided in the Warrant Agreement.

     Warrant Certificates, when surrendered at the principal corporate trust office of the Warrant
Agent by the registered holder thereof in person or by legal representative or attorney

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duly authorized in writing, may be exchanged, in the manner and subject to the limitations
provided in the Warrant Agreement, but without payment of any service charge, for another Warrant
Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like number of
Warrants.

     Upon due presentation for registration of transfer of this Warrant Certificate at the office
of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for
this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without
charge except for any tax or other governmental charge imposed in connection therewith.

     The Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate
entitles any holder hereof to any rights of a stockholder of the Company.

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Election to Purchase

(To Be Executed Upon Exercise Of Warrant)

     The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant
Certificate, to receive ___shares of Common Stock and herewith tenders payment for such
shares to the order of HCM Acquisition Company in the amount of $___in accordance with the
terms hereof. The undersigned requests that a certificate for such shares be registered in the
name of ___, whose address is ___and that such shares be delivered
to ___whose address is ___ ___. If said number of shares
is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that
a new Warrant Certificate representing the remaining balance of such shares be registered in the
name of ___, whose address is ___, and that such Warrant
Certificate be delivered to ___, whose address is ___.

	 	 	 	 	 
	 	Signature:	 
	Date:          , 20	 	 
	 	Signature Guaranteed:	 
	 	 	 
	 	 	 
	 	 	 
	 

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EXHIBIT B

LEGEND FOR PRIVATE WARRANTS

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING THE SHARES OF COMMON STOCK OF THE
COMPANY ISSUABLE UPON EXERCISE OF SUCH SECURITIES) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER RESTRICTIONS SET FORTH
IN THE WARRANT AGREEMENT REFERRED TO HEREIN [AND ARE SUBJECT TO FORFEITURE IN CERTAIN
CIRCUMSTANCES].1

     SECURITIES EVIDENCED BY THIS CERTIFICATE AND SHARES OF COMMON STOCK OF THE COMPANY ISSUABLE
UPON EXERCISE OF SUCH SECURITIES WILL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION
RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.

			
	No. ___
	 	___Warrants

 

			
	1	 	Only applies to Founder’s Warrants.

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