Document:

Exhibit 10.2

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of March     ,
2006, among Services Acquisition Corp. International,
a Delaware corporation (the “Company”), and
the purchasers identified on the signature pages hereto (each, an “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, subject to the terms and conditions set forth
in this Agreement and pursuant to Section 4(2) of the Securities Act (as
defined below) and Rule 506 promulgated thereunder, the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and not
jointly, desires to purchase from the Company certain securities of the
Company, as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual
covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the
Company and the Purchasers agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.  In addition
to the terms defined elsewhere in this Agreement, for all purposes of this
Agreement, the following terms shall have the meanings indicated in this
Section 1.1:

 

“Action” means any action, suit,
inquiry, notice of violation, proceeding (including any partial proceeding such
as a deposition) or investigation pending or threatened in writing against or
affecting the Company, the Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency,
regulatory authority (federal, state, county, local or foreign), stock market,
stock exchange or trading facility.

 

“Affiliate” means any Person
that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used
in and construed under Rule 144.

 

“Business Day” means any day
except Saturday, Sunday and any day which shall be a federal legal holiday or a
day on which banking institutions in the State of New York are authorized or
required by law or other governmental action to close.

 

“Closing” means the closing of
the purchase and sale of the Shares pursuant to Section 2.1.

 

“Closing Date” means the date of
the Closing, which date shall be the same day upon which the closing of the Tornado
Transaction occurs, following the satisfaction of each of the conditions
applicable to the Closing as set forth in Section 2.2 hereof.

 

“Commission” means the
Securities and Exchange Commission.

 

 

“Common Stock” means the common stock
of the Company, $0.001 par value per share, and any securities into which such
common stock may hereafter be reclassified.

 

“Common Stock Equivalents” means
any securities of the Company or the Subsidiary which entitle the holder
thereof to acquire Common Stock at any time, including without limitation, any
debt, preferred stock, rights, options, warrants or other instrument that is at
any time convertible into or exercisable or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock.

 

“Company Counsel” means Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

 

“Effective Date” means the date
that the Registration Statement is first declared effective by the Commission.

 

“Escrow Agent” shall have the
meaning set forth in the Escrow Agreement.

 

“Escrow Agreement” shall mean
the Escrow Agreement in substantially the form of Exhibit B hereto
executed and delivered contemporaneously with this Agreement.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Investment Amount” means, with
respect to each Purchaser, the investment amount indicated below such Purchaser’s
name on the signature page of this Agreement.

 

“Tornado” has
the meaning ascribed to such term in the definition of the Tornado Transaction.

 

“Tornado Merger Agreement”
has the meaning ascribed to such term in the definition of Tornado Transaction.

 

“Tornado Transaction” means the
merger of the Company previously confidentially disclosed to the Purchasers (“Tornado”)
with and into an acquisition subsidiary (the “Subsidiary”) of the Company
pursuant to a Agreement and Plan of Merger by and among the Company, Tornado,
and certain stockholders of Tornado (as so amended, the “Tornado Merger
Agreement”).  The Tornado Transaction may
also be referred to herein as the “Merger.”

 

“Lien” means any lien, charge,
encumbrance, security interest, right of first refusal, preemptive right or
other restrictions of any kind.

 

“Per Share Purchase Price”
equals $7.50.

 

“Person” means an individual or
corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind.

 

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“Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced
or threatened.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated as of the date of this
Agreement, among the Company and the Purchasers, in the form of Exhibit A
hereto.

 

“Registration Statement” means a
registration statement meeting the requirements set forth in the Registration
Rights Agreement and covering the resale by the Purchasers of the Shares.

 

“Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Reports” shall have the
meaning ascribed to such term in Section 3.1(h).

 

“Securities” means the Shares.

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

“Shares” means the shares of
Common Stock issued or issuable to the Purchasers pursuant to this Agreement.

 

“Subsidiary” means the
subsidiary formed by the Company for the purpose of effecting the Merger.

 

“Trading Day” means (i) a day on
which the Common Stock is traded on a Trading Market, or (ii) if the Common
Stock is not listed on a Trading Market, a day on which the Common Stock is
traded in the over-the-counter market is quoted in the over-the-counter market
as reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding to its functions of reporting prices);
provided, that in the event that the Common Stock is not listed or quoted as
set forth in (i) or (ii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market” means whichever
of the New York Stock Exchange, the American Stock Exchange or the NASDAQ
National Market on which the Common Stock is listed or quoted for trading on
the date in question.

 

“Transaction Documents” means
this Agreement, the Escrow Agreement, the Registration Rights Agreement, and
any other documents or agreements executed in connection with the transactions
contemplated hereunder.

 

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ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing; Escrow.

 

(a)   Subject to the
terms and conditions set forth in this Agreement, at the Closing the Company
shall issue and sell to each Purchaser, and each Purchaser shall, severally and
not jointly, purchase from the Company, the Shares representing such Purchaser’s
Investment Amount.  No later than three
(3) Business Days following the satisfaction of each of the applicable
conditions set forth in Section 2.2, the Closing shall occur at the offices of
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., 666 Third Avenue, New York,
NY 10017 or at such other location or time as the parties shall mutually agree.

 

(b)   On or prior to the
fifth Business Day prior to the date of the Company’s meeting of stockholders
to approve, among other things, the Tornado Transaction, each Purchaser shall
deliver its Investment Amount, in United States dollars and in immediately
available funds, to Continental Stock Transfer and Trust Company, as escrow
agent (the “Escrow Agent”) in accordance with the wire instructions set forth
below:

 

[WIRE INSTRUCTIONS TO BE PROVIDED SUPPLEMENTALLY]

 

(c)   All payments made
by each Purchaser as contemplated by Section 2.1(b) above will be held by the
Escrow Agent for each Purchaser’s benefit in an interest bearing escrow
account.  Such moneys placed in the
escrow account shall be disbursed by the Escrow Agent either (i) to the Company
upon the consummation of the Tornado Transaction or (ii) back to the Purchasers
in each Purchaser’s Investment Amount in the event that the Tornado Transaction
is not consummated, in accordance with the terms of the Escrow Agreement,
attached hereto as Exhibit B.

 

(d)   Notwithstanding
the foregoing, the Company may permit payment for the Shares against delivery
for those Purchasers whose organizational or other applicable documents or internal
procedures require “delivery against payment” or such similar provision.

 

2.2           Closing Conditions.  (a)  At the Closing, the Company shall deliver or
cause to be delivered to each Purchaser the following:

 

(i)            a certificate
evidencing a number of Shares registered in the name of such Purchaser or a
book-entry transfer of the Shares to such Purchaser equal to such Purchaser’s
Investment Amount divided by the Per Share Purchase Price;

 

(ii)           the legal opinion of
Company Counsel, in agreed form attached as Exhibit C, addressed to the Purchasers;

 

(iii)          the Escrow Agreement,
duly executed by the Company; and

 

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(iv)          the Registration Rights
Agreement, duly executed by the Company.

 

(b)           At the Closing, each Purchaser
shall deliver or cause to be delivered to the Company the following:

 

(i)            the Escrow Agreement,
duly executed by such Purchaser; and

 

(ii)           the Registration Rights
Agreement, duly executed by such Purchaser.

 

(c)   The obligations of
each party at the Closing to consummate the transactions contemplated at such
Closing shall be subject to the fulfillment, or waiver by the parties, of each
of the following conditions:

 

(i)            from the date hereof
to the Closing Date, trading in the Common Stock shall not have been suspended
by the Commission (except for any suspension of trading of limited duration
agreed to by the Company, which suspension shall be terminated prior to the
Closing), and, at any time prior to the Closing Date, trading in securities
generally as reported by Bloomberg Financial Markets shall not have been
suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, or on any Trading Market,
nor shall a banking moratorium have been declared either by the United States
or New York State authorities;

 

(ii)           the approval of the
Company’s stockholders of the issuance of the Shares shall have been obtained;
and

 

(iii)          on or prior to the
Closing Date, the Tornado Transaction shall have been approved by the Company’s
stockholders and Tornado’s stockholders and shall have closed.

 

(d)   The respective
obligations of the Purchasers at the Closing to consummate the transactions
contemplated at such closing shall be subject to the fulfillment, or waiver by
the Purchasers, of the following conditions:

 

(i)            all representations
and warranties of the Company contained herein shall remain true and correct in
all material respects as of the Closing Date, as if made at and as of the
Closing Date, and the Company shall deliver a certificate by an appropriate
officer to such effect;

 

(ii)           all obligations,
covenants and agreements of the Company required to be performed at or prior to
the Closing Date shall have been performed in all material respects;

 

(iii)          the delivery by the
Company of the items set forth in Section 2.2(a) of this Agreement;

 

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(iv)          there shall have been no
Material Adverse Effect with respect to the Company since the date hereof;

 

(v)           the execution and
delivery of each of the Transaction Documents by the Company and the Subsidiary
and the consummation by it of the transactions contemplated thereby (i) do not
violate, conflict with or result in a violation of, or constitute a default (whether
after the giving of notice, lapse of time or both) under, any provision of any
law, regulation or rule, or any order of, or any restriction imposed by, any
court or U.S. state or federal or foreign governmental agency or authority, or
self-regulatory organization (any, a “Governmental Authority”),
including without limitation the Financial Services Authority, the Securities
and Exchange Commission, the Commodities Futures Trading Commission, the
National Association of Securities Dealers (the “NASD”)
and the National Futures Association (the “NFA”),
applicable to the Company and (ii) do not require from the Company or the
Subsidiary any notice to, declaration or filing with, or consent or approval of
any Governmental Authority or other third party, except for the approval of the
Company’s stockholders and as set forth in Schedule 2.2(d)(v);

 

(vi)          no court, arbitrator or
Governmental Authority shall have issued any order restraining the consummation
of the transactions contemplated by this Agreement, and no proceeding
challenging this Agreement or the transactions contemplated hereby or seeking
to prohibit or materially delay the Closing shall have been instituted by any
Person before any court, arbitrator or Governmental Authority and be pending;
and

 

(vii)         Purchasers shall have in
the aggregate purchased Shares for a total Investment Amount of at least $150
million.

 

(e)           The obligations of the
Company at the Closing to consummate the transactions contemplated at such
closing shall be subject to the fulfillment, or waiver by the Company, of the
conditions that all representations and warranties of the Purchasers contained
herein shall remain true and correct in all material respects as of the Closing
Date, as if made at and as of the Closing Date (except as affected by the Tornado
Transaction), and the Purchasers shall have performed all of their covenants
and agreements to be performed on or prior to the Closing Date.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations and Warranties of the Company. 
Except as set forth under the corresponding section of the Disclosure
Schedules, which Disclosure Schedules shall deemed a part hereof, the Company
hereby makes the following representations and warranties to each Purchaser:

 

(a)           Subsidiaries.  Except for the Subsidiary, the Company has no
direct or indirect subsidiaries.  The
Company owns, directly or indirectly, all of the capital stock of the
Subsidiary free and clear of any and all Liens, and all the issued and
outstanding shares of capital

 

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stock of the
Subsidiary are validly issued and are fully paid, non-assessable and free of
preemptive and similar rights.

 

(b)           Organization and
Qualification.  Each of the Company
and the Subsidiary is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization (as applicable), with the requisite power and
authority to own and use its properties and assets and to carry on its business
as currently conducted.  Neither the
Company nor the Subsidiary is in violation of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. 
Each of the Company and the Subsidiary is duly qualified to conduct
business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not, individually
or in the aggregate, have or reasonably be expected to result in (i) an adverse
effect on the legality, validity or enforceability of any Transaction Document,
(ii) a material and adverse effect on the results of operations, assets,
business, or condition (financial or otherwise) of the Company and the
Subsidiary, taken as a whole, or (iii) an adverse impairment to the Company’s
ability to perform on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”)
and no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and
authority or qualification.

 

(c)           Authorization;
Enforcement.  The Company has the
requisite corporate power and authority, and has taken all requisite corporate
action, other than as set forth in Section 2.2(c) with respect to the need for
stockholder approval of the issuance of the Shares in compliance with the rules
of the American Stock Exchange, to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder. 
The execution and delivery of each of the Transaction Documents by the
Company and the consummation by it of the transactions contemplated thereby
have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company in connection therewith.  Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with
its terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other
equitable remedies, and (iii) as limited by public policy.

 

(d)           No Conflicts.  Other than as set forth in Section 2.2(c)
with respect to the need for stockholder approval of the issuance of the
Shares, the execution, delivery and performance of the Transaction Documents by
the Company and the consummation by the Company of the transactions
contemplated thereby do not and will not (i) conflict with or violate any
provision of the Company’s or the Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an

 

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event that with
notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility,
debt or other instrument (evidencing a Company or Subsidiary debt or otherwise)
or other understanding to which the Company or the Subsidiary is a party or by
which any property or asset of the Company or the Subsidiary is bound or
affected, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or the Subsidiary is subject (including federal
and state securities laws and regulations), or by which any property or asset
of the Company or the Subsidiary is bound or affected; except in the case of
each of clauses (ii) and (iii), such as could not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(e)           Filings, Consents
and Approvals.  Other than as set
forth in Section 2.2(c) with respect to the need for stockholder approval of
the issuance of the Shares, the Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other
than (i) the filing with the Commission of the Registration Statement in
accordance with the requirements of the Registration Rights Agreement, (ii) the
filing of Form D with the Commission and such filings required by state
securities laws, which the Company will promptly and timely, and in any event
prior to the Effectiveness Date under the Registration Statement, make, (iii)
the application(s) to each Trading Market for the listing of the shares of
Common Stock to be sold hereunder for trading thereon in the time and manner
required thereby, (iv) the filings required in accordance with Section 4.4, and
(v) such other filings as may be required following the Closing Date under the
Securities Act and the Exchange Act.

 

(f)            Issuance of the
Securities.  The Shares have been
duly authorized and, when issued and paid for in accordance with the
Transaction Documents, will be duly and validly issued, fully paid and
nonassessable, free and clear of all Liens. 
The Company has reserved from its duly authorized capital stock all of
the Shares issuable pursuant to this Agreement.

 

(g)           Capitalization.  The capitalization of the Company conforms as
to legal matters to the description thereof contained in the Company’s most
recent periodic report filed with the Commission.  No securities of the Company are entitled to
preemptive or similar rights, and no Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents.  Except as a result of the purchase and sale
of the Shares, the shares of Common Stock and options or warrants to purchase
shares of Common Stock to be issued to stockholders, optionholders and
warrantholders of Tornado pursuant to the Tornado Merger Agreement, and except
as described in the SEC Reports, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or
acquire, any shares of Common Stock, or contracts, commitments, understandings
or

 

8

 

arrangements by
which the Company or the Subsidiary is or may become bound to issue additional
shares of Common Stock, or securities or rights convertible or exchangeable
into, or exercisable for, shares of Common Stock.  The issue and sale of the Shares will not
obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset
price under such securities. All of the outstanding shares of capital stock of
the Company are validly issued, fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. 
Other than as set forth in Section 2.2(c) with respect to the need for
stockholder approval of the issuance of the Shares, no further approval or
authorization of any stockholder, the Board of Directors of the Company or
others is required for the issuance and sale of the Shares.  Except as disclosed in the SEC Filings, there
are no stockholders agreements, voting agreements or other similar agreements
with respect to the Company’s capital stock to which the Company is a party or,
to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

(h)           SEC Reports;
Financial Statements.  The Company
and the Subsidiary have filed all reports, registrations, schedules, forms,
statements and other documents required to be filed by it under the Securities
Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
or with any Governmental Authority, for the twelve months preceding the date
hereof (or such shorter period as the Company or the Subsidiary was required by
law to file such reports) (the foregoing materials being collectively referred
to herein as the “SEC Reports” and, together with
the Schedules to this Agreement (if any), the “Disclosure
Materials”) on a timely basis or has timely filed a valid extension
of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension.  As of
their respective dates, the SEC Reports complied in all material respects with
the requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and the rules and
regulations of any other Governmental Authority with which the SEC Reports were
made or should have been made, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not
misleading.  The financial statements of
the Company included in the SEC Reports comply in all material respects with
the rules and regulations of the Commission with respect thereto as in effect
at the time of filing.  Such financial
statements have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present
in all material respects the financial position of the Company and its
consolidated subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)            Material Changes;
Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited
financial statements included within the SEC Reports, except

 

9

 

as specifically
disclosed in the SEC Reports, (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to result in a
Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with
the Commission, (iii) the Company has not altered its method of accounting or
the identity of its auditors, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock, and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company stock
option plans. The Company does not have pending before the Commission any
request for confidential treatment of information.    Except for the issuance of the Securities
contemplated by this Agreement and the contemplated Tornado Transaction or as
set forth on Schedule 3.1(i), no event, liability or development has
occurred or exists with respect to the Company or the Subsidiary or their
respective business, properties, operations or financial condition, that would
be required to be disclosed by the Company under applicable securities laws at
the time this representation is made that has not been publicly disclosed one
(1) Trading Day prior to the date that this representation is made.

 

(j)            Litigation.  There is no Action which (i) adversely
affects or challenges the legality, validity or enforceability of any of the
Transaction Documents or the Shares or (ii) except as set forth in the SEC
Reports, could, if there were an unfavorable decision, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor the Subsidiary, nor any director or officer
thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of
breach of fiduciary duty.  There has not
been, and to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the Company or the
Subsidiary or any current or former director or officer of the Company or the
Subsidiary.  The Commission has not
issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Company or the Subsidiary under the
Exchange Act or the Securities Act.

 

(k)           Compliance.  Neither the Company nor the Subsidiary (i) is
in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a
default by the Company or the Subsidiary under), nor has the Company or the
Subsidiary received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in
violation of any order of any court, arbitrator or governmental body, or (iii)
is or has been in violation of any statute, rule or regulation of any
governmental authority, including without limitation all foreign, federal,
state and local laws applicable to its business, except in each case as could
not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect.

 

10

 

(l)            Regulatory Permits.  The Company and the Subsidiary possess all
certificates, authorizations, licenses, registrations and permits issued by any
Governmental Authority which are necessary to conduct their respective
businesses as described in the SEC Reports, except where the failure to possess
such permits would not, individually or in the aggregate, have or reasonably be
expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor the Subsidiary has received
any notice of proceedings relating to the revocation or modification of any
Material Permit.

 

(m)          Transactions With
Affiliates and Employees.  Except as
set forth in the SEC Reports, none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company is
presently a party to any transaction with the Company or the Subsidiary (other
than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer,
director, trustee or partner.

 

(n)           Sarbanes-Oxley;
Internal Accounting Controls.  The
Company and the Subsidiary are in material compliance with all provisions of
the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing
Date.  The Company and the Subsidiary
maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and
(iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to
any differences.  The Company has
established disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls
and procedures to ensure that material information relating to the Company,
including its Subsidiary, is made known to the certifying officers by others
within those entities, particularly during the period in which the Company’s
Form 10-K or 10-Q, as the case may be, is being prepared.  The Company’s certifying officers have
evaluated the effectiveness of the Company’s controls and procedures as of the
end of the Company’s most recently ended fiscal quarter (such date, the “Evaluation Date”). 
The Company presented in its most recently filed Form 10-Q the
conclusions of the certifying officers about the effectiveness of the
disclosure controls and procedures based on their evaluations as of the
Evaluation Date.  Since the Evaluation
Date, there have been no significant changes in the Company’s internal controls
(as such term is defined in Item 307(b) of Regulation S-K under the Exchange
Act) or, to the Company’s knowledge, in other factors that could significantly
affect the Company’s internal controls.

 

(o)           Private Placement.
Assuming the accuracy of the Purchasers’ representations and warranties set
forth in Section 3.2, no registration under the Securities Act is required for
the offer and sale of the Shares by the Company to the Purchasers as
contemplated

 

11

 

hereby. Upon
satisfaction of the condition set forth in Section 2.2(c) hereof with respect
to stockholder approval of the issuance of the Shares, the issuance and sale of
the Shares hereunder will not contravene the rules and regulations of the
Trading Market..

 

(p)           Listing and
Maintenance Requirements.  The
Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge
is likely to have the effect of terminating the registration of the Common
Stock under the Exchange Act.  Except as
specified in the SEC Reports, the Company has not, in the two years preceding
the date hereof, received notice from any Trading Market to the effect that the
Company is not in compliance with the listing or maintenance requirements
thereof.  The Company is, and has no
reason to believe that it will not in the foreseeable future continue to be, in
compliance with the listing and maintenance requirements for continued listing
of the Common Stock on the applicable Trading Market, including the Eligibility
Rules thereunder. Upon satisfaction of the condition set forth in Section
2.2(c) hereof with respect to stockholder approval of the issuance of the
Shares, the issuance and sale of the Shares under the Transaction Documents
does not contravene the rules and regulations of the Trading Market on which
the Common Stock is currently listed or quoted.

 

(q)           Investment Company.  The Company is not, and is not an Affiliate
of, and immediately after receipt of payment for the Shares, will not be an
Affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.  The
Company and the Subsidiary shall conduct their business in a manner so that
they will not become subject to the Investment Company Act, as amended.

 

(r)            Registration Rights.  Other than each of the Purchasers, and as
disclosed in SEC filings, no Person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the
Company.

 

(s)           No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, neither the Company, nor any of its
affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Shares to be integrated with prior offerings by the Company for purposes of the
Securities Act any state securities law or any applicable shareholder approval
provisions, including, without limitation, under the rules and regulations of
any Trading Market on which any of the securities of the Company are listed or
designated.

 

(t)            Form S-3
Eligibility. The Company expects to be eligible by July 7, 2006, to
register the resale of the Shares for resale by the Purchasers on Form S-3
promulgated under the Securities Act.

 

(u)           Tax Status.  Except for matters that would not, individually
or in the aggregate, have or reasonably be expected to result in a Company
Material Adverse Effect, the Company and the Subsidiary have filed all
necessary federal, state and foreign income and franchise tax returns and has
paid or accrued all taxes shown as due thereon, and the Company

 

12

 

has no knowledge
of a tax deficiency which has been asserted or threatened against the Company
or any Subsidiary.

 

(v)           Tornado.  To the Company’s knowledge, all of the representations
and warranties of Tornado contained in the Tornado Merger Agreement or any
other agreement, instrument or document entered into by Tornado in connection
with the Tornado Transaction are true and correct in all material respects, and
no event, condition or circumstance has occurred or exists that, individually
or in the aggregate, has resulted, or could reasonably be expected to result
(i) in a breach or inaccuracy of any of the representations or warranties of Tornado
contained in the Tornado Merger Agreement or in any other agreement, instrument
or document entered into by Tornado in connection with the Tornado Merger
Agreement or (ii) in a material adverse effect on the results of operations,
assets, business or financial condition of Tornado.  The Company has not agreed to any amendments
of, or any amendment to or waiver of any of its rights or any of the conditions
to closing contained in, the Tornado Merger Agreement or any other agreement,
instrument or document entered into by the Company with respect to the Tornado
Transaction.

 

3.2           Representations and Warranties of the Purchasers. 
Each Purchaser hereby, for itself and for no other Purchaser, represents
and warrants as of the date hereof and as of the Closing Date to the Company as
follows:

 

(a)           Organization;
Authority.  Such Purchaser is an
entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with the requisite corporate or
partnership power and authority to enter into and to consummate the
transactions contemplated by the applicable Transaction Documents and otherwise
to carry out its obligations thereunder. The execution, delivery and
performance by such Purchaser of the transactions contemplated by this
Agreement has been duly authorized by all necessary corporate or, if such Purchaser
is not a corporation, such partnership, limited liability company or other
applicable like action, on the part of such Purchaser.  Each of this Agreement and the Registration
Rights Agreement has been duly executed by such Purchaser, and when delivered
by such Purchaser in accordance with terms hereof, will constitute the valid
and legally binding obligation of such Purchaser, enforceable against it in
accordance with its terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the
enforcement of creditors’ rights generally and (ii) as limited by equitable
principles generally.

 

(b)           Investment Intent.  Such Purchaser understands that the Shares
are “restricted securities” and have not been registered under the Securities
Act or any applicable state securities law and is acquiring the Shares as
principal for its own account for investment purposes only and not with a
present view to or for distributing or reselling such Shares or any part
thereof, has no present intention of distributing any of such Shares and has no
arrangement or understanding with any other person or persons regarding the
distribution of such Shares (this representation and warranty not limiting such
Purchaser’s right to sell the Shares pursuant to the Registration Statement or
otherwise in compliance with applicable federal and state securities
laws).  Such Purchaser has not engaged,
during the one month prior to the date of this

 

13

 

Agreement, in any
short sales with respect to the Common Stock. 
The Purchaser further represents that, between the time it became aware
of the transactions contemplated by this Agreement and the public announcement
of this Agreement or the termination hereof, it has not engaged and will not
engage in any trades, whether purchases, sales, short sales or otherwise, with
respect to the Common Stock.

 

(c)           Purchaser
Status/Residence.  At the time such Purchaser
was offered the Shares, it was, and at the date hereof it is (a) an “accredited
investor” as defined in Rule 501(a) under the Securities Act, and/or (b) a “qualified
institutional buyer” as defined in Rule 144A under the Securities Act.  Such Purchaser is not a registered
broker-dealer under Section 15 of the Exchange Act.  Each Purchaser represents that, to the extent
that he or she is an individual, that he or she is a resident of the state set
forth opposite his or her name on signature page, and, to the extent that it is
an organizational entity, they it has been organized under the laws of the
state or country set forth opposite its name on signature page.

 

(d)           Experience of Such Purchaser.  Such Purchaser, either alone or together with
its representatives, has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and
risks of the prospective investment in the Shares, and has so evaluated the
merits and risks of such investment. 
Such Purchaser is able to bear the economic risk of an investment in the
Shares and is able to afford a complete loss of such investment.

 

(e)           General Solicitation.  Such Purchaser is not purchasing the Shares
as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

 

(f)            Access to
Information.  Such Purchaser
acknowledges that it has reviewed the Disclosure Materials and has been
afforded (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the offering of the Shares and the merits and risks of
investing in the Shares; (ii) access to information about the Company and the
Subsidiary and their respective financial condition, results of operations,
business, properties, management and prospects sufficient to enable it to
evaluate its investment; and (iii) the opportunity to obtain such additional
information that the Company possesses or can acquire without unreasonable
effort or expense that is necessary to make an informed investment decision
with respect to the investment.  Neither
such inquiries nor any other investigation conducted by or on behalf of such Purchaser
or its representatives or counsel shall modify, amend or affect such Purchaser’s
right to rely on the truth, accuracy and completeness of the Disclosure
Materials and the Company’s representations and warranties contained in the
Transaction Documents.

 

(g)           Independent
Investment Decision.  Such Purchaser
has independently evaluated the merits of its decision to purchase Shares
pursuant to this Agreement, such decision has been independently made by such Purchaser
and such Purchaser confirms that it has only

 

14

 

relied on the
advice of its own business and/or legal counsel and not on the advice of any
other Purchaser’s business and/or legal counsel in making such decision.

 

(h)           No Tax or Legal
Advice.  Such Purchaser understands
that nothing in this Agreement, any other Transaction Document or any other materials
presented to such Purchaser in connection with the purchase and sale of the
Shares constitutes legal, tax or investment advice.  Such Purchaser has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of Shares.

 

(i)            Short Sales.  Each Purchaser represents that from the date
that it was approached to participate in the transaction contemplated by this
Agreement through the Closing Date, neither it nor its affiliates have engaged
in any trades with respect to, or made any net Short Sales of, or granted any
option for the purchase of or entered into any hedging or similar transaction
with the same economic effect as a net Short Sale of the Common Stock.  For the purposes of this Agreement, “Short
Sale” by a Purchaser means a sale of Common Stock that is marked as a short
sale and that is executed at a time when such Purchaser has no equivalent
offsetting long position in the Common Stock, exclusive of the Shares.  For purposes of determining whether a
Purchaser has an equivalent offsetting long position in the Common Stock, all
Common Stock that would be issuable upon exercise in full of all options then
held by such Purchaser (assuming that such options were then fully exercisable,
notwithstanding any provisions to the contrary, and giving effect to any
exercise price adjustments scheduled to take effect in the future) shall be
deemed to be held long by such Purchaser.

 

The Company acknowledges and agrees that each Purchaser does not make
or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in
this Section 3.2.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Transfer.

 

(a)   Securities may
only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Shares
other than pursuant to an effective registration statement or Rule 144, to the
Company, to an Affiliate of a Purchaser or in connection with a pledge as
contemplated in Section 4.1(b), the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor, the
form and substance of which opinion shall be reasonably satisfactory to the
Company, to the effect that such transfer does not require registration of such
transferred Shares under the Securities Act. 
As a condition of transfer, any such transferee shall agree in writing
to be bound by the terms of this Agreement and shall have the rights of a
Purchaser under this Agreement and the Registration Rights Agreement.

 

(b)           Certificates evidencing
the Shares will contain the following legend, until such time as they are not
required under Section 4.1(c):

 

15

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.  THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.

 

The Company acknowledges and agrees that a Purchaser may from time to
time pledge, and/or grant a security interest in some or all of the Shares
pursuant to a bona fide margin agreement in connection with a bona fide margin
account and, if required under the terms of such agreement or account, such Purchaser
may transfer pledged or secured Shares to the pledgees or secured parties.  Such a pledge or transfer would not be
subject to approval or consent of the Company and no legal opinion of legal
counsel to the pledgee, secured party or pledgor shall be required in
connection with the pledge, but such legal opinion may be required in
connection with a subsequent transfer following default by the Purchaser
transferee of the pledge.  No notice
shall be required of such pledge.  At the
appropriate Purchaser’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Shares may reasonably
request in connection with a pledge or transfer of the Shares including the
preparation and filing of any required prospectus supplement under Rule
424(b)(3) of the Securities Act or other applicable provision of the Securities
Act to appropriately amend the list of Selling Stockholders thereunder.

 

(c)           Certificates
evidencing the Shares shall not contain any legend (including the legend set
forth in Section 4.1(b)): (i) on the Effective Date, or (ii) following a sale
of such Shares pursuant to an effective registration statement (including the
Registration Statement) so long as the purchaser of the Shares is not an
Affiliate of the Company, or (iii) following a sale of such Shares pursuant to
Rule 144, or (iv) while such Shares are eligible for sale under Rule 144(k), or
(v) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
the Staff of the Commission) provided in the case of (v), however, that the
beneficial owner of the Shares is not an Affiliate of the Company.  Following such time as restrictive legends
are not required to be placed on certificates representing Shares under this
Section 4.1(c), the Company will, not later than three Trading Days following
the delivery by a Purchaser to the Company or the Company’s transfer agent of a
certificate representing such Shares containing a restrictive legend (such
third Trading Day, the “Legend Removal Date”),
deliver or cause to be delivered to such Purchaser a

 

16

 

certificate representing such Shares that is free from all restrictive
and other legends.  The Company may not
make any notation on its records or give instructions to any transfer agent of
the Company that enlarge the restrictions on transfer set forth in this
Section.  Certificates for Shares subject
to legend removal hereunder shall be transmitted by the transfer agent of the
Company to the Purchasers by crediting the account of the Purchaser’s prime broker
with the Depository Trust Company System.

 

(d)           Each Purchaser,
severally and not jointly with the other Purchasers, agrees that the removal of
the restrictive legend from certificates representing Shares as set forth in
this Section 4.1 is predicated upon the Company’s reliance that the Purchaser
will sell any Shares pursuant to either the registration requirements of the
Securities Act, including any applicable prospectus delivery requirements, or
an exemption therefrom.

 

4.2           Furnishing of Information. 
As long as any Purchaser owns the Shares, the Company covenants to
timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. 
As long as any Purchaser owns Shares, if the Company is not required to
file reports pursuant to such laws, it will prepare and furnish to the Purchasers
and make publicly available in accordance with Rule 144(c) such information as
is required for the Purchasers to sell such Shares under Rule 144. The Company
further covenants that it will take such further action as any holder of Shares
may reasonably request, all to the extent required from time to time to enable
such Person to sell such Shares without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144.

 

4.3           Integration.  The Company
shall not sell, offer for sale or solicit offers to buy or otherwise negotiate
in respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Shares in a manner that would
require the registration under the Securities Act of the sale of the Shares to
the Purchasers, or that would be integrated with the offer or sale of the
Shares for purposes of the rules and regulations of any Trading Market.

 

4.4           Securities Laws Disclosure; Publicity. 
By 8:30 a.m. (New York time) on the second Business Day following the
date of this Agreement, the Company shall issue a press release reasonably
acceptable to the Purchasers disclosing the transactions contemplated hereby
and file a Current Report on Form 8-K disclosing the material terms of the
transactions contemplated hereby.  In
addition, the Company will make such other filings and notices in the manner
and time required by the Commission and the Trading Market on which the Common
Stock is listed.  Notwithstanding the
foregoing, nothing herein shall prevent the Company from selling Shares to
additional purchasers, provided that, the Company shall make the filings and
disclosures as required by this Section 4.4.

 

4.5           Non-Public Information. 
The Company covenants and agrees that, following the termination of the
existing confidentiality agreements between the Company and the Purchasers, neither
it nor any other Person acting on its behalf will provide any Purchaser or its
agents or counsel with any information that the Company believes constitutes
material non-public

 

17

 

information, unless
prior thereto such Purchaser shall have executed a written agreement regarding
the confidentiality and use of such information.  The Company understands and confirms that
each Purchaser shall be relying on the foregoing representations in effecting
transactions in securities of the Company.   A definitive proxy statement will be
delivered in connection with the Tornado Transaction that will publicly
disclose all of the material written information heretofore provided to the
Purchasers.

 

4.6           Use of Proceeds.  The Company
shall use the net proceeds from the sale of the Shares hereunder for payment of
a portion of the cash consideration to be paid to Tornado stockholders in the
Merger and for working capital purposes following the Tornado Transaction.

 

4.7           Reservation of Stock. 
As of the date hereof, the Company has reserved and the Company shall
continue to reserve and keep available at all times, free of preemptive rights,
a sufficient number of shares of Common Stock for the purpose of enabling the
Company to issue Shares pursuant to this Agreement.

 

4.8           Listing of Common Stock. 
The Company hereby agrees to use commercially reasonably efforts to
maintain the listing of the Common Stock on the Trading Market, and as soon as
reasonably practicable following the Closing (but not later than the earlier of
the Effective Date applicable to such Shares and the three (3) month
anniversary of the Closing Date) to list the applicable Shares on the Trading
Market. The Company further agrees, if the Company applies to have the Common
Stock traded on any other Trading Market, it will include in such application
the Common Stock sold hereunder.

 

4.9           Short Sales.  The Purchaser
agrees that beginning on the date hereof until at least sixty (60) days from
the Closing, the Purchaser will not enter into any Short Sales.

 

4.10         Termination Fee.  Upon receipt
of any termination fee under the terms of the Tornado Merger Agreement, the
Company shall pay to each the Purchaser one percent (1%) of such Purchaser’s Investment
Amount, net of any costs and expenses incurred by the Company in the collection
of any such termination fee, to the extent that the Company has sufficient
funds to pay such amounts after payment of any such collection costs and
expenses.

 

4.11         No Registration.  The Company
agrees not to issue any securities pursuant to any registration statement or
register for resale on behalf of others any securities prior to the Effective
Date, except for (i) securities subject to a registration statement on Form
S-8, (ii) the resale of shares of common stock underlying outstanding warrants,
and (iii) securities issued in connection with an acquisition by the Company,
whether by merger, consolidation, sale of assets, sale or exchange of stock or
otherwise.

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Termination.  This Agreement may be terminated by any
Purchaser, as to such Purchaser’s obligations hereunder only and without any
effect whatsoever on the obligations between the Company and the other
Purchasers, by written notice to the other parties, on the

 

18

 

earlier of (i) 180
days from the date of this Agreement or (ii) the termination of the Tornado
Merger Agreement; provided, however, that no such termination will affect the
right of any party to sue for any breach by the other party (or parties).

 

5.2           Fees and Expenses.  Each
Purchaser and the Company shall pay the fees and expenses of its own advisers,
counsel, accountants and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery and
performance of the Transaction Documents. 
The Company shall pay all stamp and other taxes and duties levied in
connection with the issuance of the Shares under this Agreement.

 

5.3           Entire Agreement.  The
Transaction Documents, together with the Exhibits and Schedules thereto,
contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

 

5.4           Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section prior to 5:00 p.m. (New York City time) on a Trading Day, (b) the
next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in
this Section on a day that is not a Trading Day or later than 5:00 p.m. (New
York City time) on any Trading Day, (c) the Trading Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, or
(d) upon actual receipt by the party to whom such notice is required to be
given.  The address for such notices and
communications shall be as follows:

 

	
  If to the Company:

  	
   

  	
  Services Acquisition Corp. International

  
	
   

  	
   

  	
  401 East Olas Boulevard, Suite 1140

  
	
   

  	
   

  	
  Fort Lauderdale, FL 33301

  
	
   

  	
   

  	
  Attn: Steven R. Berrard

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

  
	
   

  	
   

  	
  666 Third Avenue

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
  Attn: Kenneth R. Koch, Esq.

  
	
   

  	
   

  	
   

  
	
  If to a
  Purchaser:

  	
   

  	
  To the address
  set forth under such Purchaser’s name

  
	
   

  	
   

  	
  on the signature
  pages hereof;

  

 

or such other address as may be designated in writing hereafter, in the
same manner, by such Person.

 

19

 

5.5           Amendments; Waivers. 
No provision of this Agreement may be waived or amended except in a
written instrument signed by the Company and the Purchaser or Purchasers
holding no less than a majority of the outstanding Shares; provided, however,
that if any amendment or waiver adversely affects any Purchaser or Purchasers
in a disproportionate manner, then the written consent of any Purchaser so
affected shall also be obtained.  No
waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a
waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such
right.

 

5.6           Construction.  The headings
herein are for convenience only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions hereof.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.  This Agreement shall be construed as if
drafted jointly by the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement or any of the Transaction Documents.

 

5.7           Successors and Assigns. 
This Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns.  The Company may not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Purchasers.
Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers any Shares, provided such
transferee agrees in writing to be bound, with respect to the transferred
Shares, by the provisions hereof that apply to the “Purchasers.”

 

5.8           No Third-Party Beneficiaries. 
This Agreement is intended for the benefit of the parties hereto and
their respective successors and permitted assigns and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.8 (as to each Purchaser Party).

 

5.9           Governing Law.  All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with
the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof.  Each party
agrees that all Proceedings concerning the interpretations, enforcement and
defense of the transactions contemplated by this Agreement and any other
Transaction Documents (whether brought against a party hereto or its respective
Affiliates, employees or agents) may be commenced exclusively in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). 
Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of the any of
the Transaction Documents), and hereby irrevocably waives, and agrees not to
assert in any Proceeding, any claim that it is not personally subject to the
jurisdiction of any such New York Court, or that such Proceeding has been
commenced in an improper or inconvenient forum. 
Each party hereto

 

20

 

hereby irrevocably
waives personal service of process and consents to process being served in any
such Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner
permitted by law.  Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby.  If either party shall commence a Proceeding
to enforce any provisions of a Transaction Document, then the prevailing party
in such Proceeding shall be reimbursed by the other party for its attorney’s
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such Proceeding.

 

5.10         Survival.  The
representations, warranties, agreements and covenants contained herein shall
survive the Closing and the delivery of the Shares.

 

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

 

5.12         Severability.  If any
provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

 

5.13         Rescission and Withdrawal Right. 
Notwithstanding anything to the contrary contained in (and without
limiting any similar provisions of) the Transaction Documents, whenever any Purchaser
exercises a right, election, demand or option under a Transaction Document and
the Company does not timely perform its related obligations within the periods
therein provided, then such Purchaser may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future
actions and rights.

 

5.14         Replacement of Securities. 
If any certificate or instrument evidencing any Shares is mutilated,
lost, stolen or destroyed, the Company shall issue or cause to be issued in
exchange and substitution for and upon cancellation thereof, or in lieu of and
substitution therefor, a new certificate or instrument, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction
and customary and reasonable indemnity, if requested.  The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party
costs associated with the issuance of such replacement Shares.  If

 

21

 

a replacement
certificate or instrument evidencing any Shares is requested due to a
mutilation thereof, the Company may require delivery of such mutilated
certificate or instrument as a condition precedent to any issuance of a
replacement.

 

5.15         Remedies.  In addition
to being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, each of the Purchasers and the Company will be
entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agrees to waive in
any action for specific performance of any such obligation the defense that a
remedy at law would be adequate.

 

5.16         Independent Nature of Purchasers’ Obligations and
Rights.  The obligations of each Purchaser under any
Transaction Document are several and not joint with the obligations of any
other Purchaser, and no Purchaser shall be responsible in any way for the
performance of the obligations of any other Purchaser under any Transaction
Document.  The decision of each Purchaser
to purchase Shares pursuant to the Transaction Documents has been made by such Purchaser
independently of any other Purchaser. 
Nothing contained herein or in any Transaction Document, and no action
taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Purchasers are in any way acting in concert or
as a group with respect to such obligations or the transactions contemplated by
the Transaction Document.  Each Purchaser
acknowledges that no other Purchaser has acted as agent for such Purchaser in
connection with making its investment hereunder and that no Purchaser will be
acting as agent of such Purchaser in connection with monitoring its investment
in the Shares or enforcing its rights under the Transaction Documents.  Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

 

 

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SIGNATURE PAGES FOLLOW]

 

22

 

IN WITNESS WHEREOF, the parties hereto have caused
this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

 

	
   

  	
  SERVICES ACQUISITION CORP.

  INTERNATIONAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

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INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASERS FOLLOW]

 

 

IN WITNESS WHEREOF, the parties have executed this
Securities Purchase Agreement as of the date first written above.

 

 

	
   

  	
  PURCHASER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Number
  of Shares: 

  	
   

  	
   

  
	
   

  	
  Investment
  Amount: 

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address
  for Notice:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tel: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
									

 

 

EXHIBIT
A

 

FORM OF
REGISTRATION RIGHTS AGREEMENT

 

 

EXHIBIT
B

 

FORM OF
ESCROW AGREEMENT

 

 

EXHIBIT C

 

FORM OF
OPINION

 

1.     The Company is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business and to own, lease and
operate its properties and assets as described in the Company’s SEC Reports.

 

2.     The Company has the requisite corporate power and authority to enter
into and perform its obligations under the Transaction Documents and to issue
the Shares.  The execution and delivery
of the Transaction Documents by the Company and the consummation by it of the
transactions contemplated thereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its
Board of Directors or stockholders is required. Each of the Transaction
Documents has been duly executed and delivered by the Company and each of the
Transaction Documents constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with their respective terms.

 

3.     The execution, delivery and performance of the Transaction Documents by
the Company and the consummation by the Company of the transactions
contemplated thereby, does not and will not (i) result in a violation of the
Company’s Certificate of Incorporation or Bylaws, (ii) conflict with, or
constitute a material default (or an event that with notice or lapse of time or
both would become a default) under, or give rise to any rights of termination,
amendment, acceleration or cancellation of, any material agreement included as
an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2005, (iii) result in a violation of any federal or state
law, rule or regulation applicable to the Company or by which any property or
asset of the Company is bound or affected, or (iv) require any third party
consents or government filings, except, with respect to clauses (ii), (iii) and
(iv) above, for such violations, conflicts or defaults, or failures to obtain
third party consents or make government filings, as would not, individually or
in the aggregate, have a Material Adverse Effect.

 

4.     Assuming the truth and accuracy of the
representations and warranties of the Purchasers included in Section 3.2 of the
Securities Purchase Agreement, the issuance of the Shares in accordance with
the Securities Purchase Agreement will be exempt from registration under the
Securities Act of 1933, as amended.  The
Shares, when issued, sold and delivered against payment therefor in accordance
with the provisions of the Securities Purchase Agreement will be duly and
validly issued, fully paid and nonassessable and, to our knowledge, free and
clear of all liens, charges, restrictions and encumbrances imposed by or
through the Company except as set forth in the Transaction Documents.Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of March     , 2006, by and
among Services Acquisition Corp. International, a Delaware corporation (the “Company”),
and the investors signatory hereto (each a “Purchaser” and collectively,
the “Purchasers”).

 

This Agreement is made pursuant to the
Securities Purchase Agreement, dated as of the date hereof among the Company
and the Purchasers (the “Purchase Agreement”).

 

The Company and the Purchasers hereby agree
as follows:

 

1.             Definitions.  Capitalized terms used and not otherwise
defined herein that are defined in the Purchase Agreement shall have the
meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Business Day” means any day except
Saturday, Sunday and any day which shall be a federal legal holiday or a day on
which banking institutions in the State of New York are authorized or required
by law or other governmental action to close.

 

“Effectiveness
Date” means, with respect to the Registration Statement required to be
filed hereunder, the earlier of (a) the 60th calendar day following
the Filing Date (90th calendar day in the event of a full review by
the Commission) and (b) the fifth (5th) Business Day following the
date on which the Company is notified by the Commission that the Registration
Statement will not be reviewed or is no longer subject to further review and
comments.

 

“Effectiveness Period” shall have the
meaning set forth in Section 2(a).

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Filing Date” means, with respect to
the Registration Statement required to be filed hereunder, the later of (i) the
30th calendar day following the Closing Date or (ii) July 7, 2006.

 

“Holder” or “Holders” means the
holder or holders, as the case may be, from time to time of Registrable
Securities.

 

“Indemnified Party” shall have the
meaning set forth in Section 5(c).

 

“Indemnifying Party” shall have the
meaning set forth in Section 5(c).

 

“Losses” shall have the meaning set
forth in Section 5(a).

 

“Proceeding” means an action, claim,
suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced
or threatened.

 

1

 

“Prospectus” means the prospectus
included in the Registration Statement (including, without limitation, a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by the Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be incorporated
by reference in such Prospectus.

 

“Registrable Securities” means the
shares of Common Stock issued in connection with the transactions contemplated
by the Purchase Agreement, together with any Securities issued or issuable upon
any stock split, dividend or other distribution, recapitalization or similar
event with respect to the foregoing.

 

“Registration Statement” means the
registration statement required to be filed hereunder, including the
Prospectus, amendments and supplements to the registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in the Registration Statement.

 

“Rule 415” means Rule 415 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

 

“Rule 424” means Rule 424 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

 

“Securities Act” means the Securities
Act of 1933, as amended.

 

“Trading Market” means whichever of
the New York Stock Exchange, the American Stock Exchange or the NASDAQ National
Market on which the Common Stock is listed or quoted for trading on the date in
question.

 

2.             Registration.

 

(a)           On or prior to the Filing Date,
the Company shall prepare and file with the Commission the Registration
Statement covering the resale of all of the Registrable Securities sold in the
Closing for an offering to be made on a continuous basis pursuant to Rule 415, or
if Rule 415 is not available for offers or sales of the Registrable Securities,
for such other means of distribution of Registrable Securities as the Holders
may specify.  The Registration Statement
required hereunder shall be on Form S-3 (except if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, in
which case the Registration shall be on another appropriate form in accordance
herewith).  The Registration Statement required
hereunder shall contain (except if otherwise

 

2

 

directed by the
Holders) the “Plan of Distribution” attached hereto as Annex A.  The Company shall use its commercially
reasonable efforts to cause the Registration Statement to be declared effective
under the Securities Act as promptly as possible after the filing thereof, and
shall use its commercially reasonable efforts to keep such Registration
Statement continuously effective under the Securities Act (including the filing
of any necessary amendments, post-effective amendments and supplements) until
the date which is two years after the Closing Date or such later date when all
Registrable Securities covered by the Registration Statement (A) have been sold
pursuant to the Registration Statement or an exemption from the registration
requirements of the Securities Act or (B) may be sold without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act, as
determined by the counsel to the Company pursuant to a written opinion letter
to such effect, addressed and reasonably acceptable to the Company’s transfer
agent and the affected Holders (the “Effectiveness Period”).  The Company shall telephonically request
effectiveness of the Registration Statement as of 5:00 pm Eastern Time on a
Trading Day.  The Company shall
immediately notify the Holders via facsimile of the effectiveness of a
Registration Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date requested
for effectiveness of a Registration Statement. 
The Company shall, by 9:30 am Eastern Time on the Trading Day after the
Effective Date (as defined in the Purchase Agreement), file a Rule 424(b)
prospectus with the Commission.

 

(b)           If: (i) the Registration
Statement is not filed on or prior to the Filing Date (if the Company files the
Registration Statement without affording the Holders the opportunity to review
and comment on the same as required by Section 3(a), the Company shall not be
deemed to have satisfied this clause (i)); or (ii) the Registration Statement
is not declared effective by the Commission on or before the Effectiveness Date
or (iii) after the Effectiveness Date, a Registration Statement ceases for any
reason to remain continuously effective as to all Registrable Securities for
which it is required to be effective, or the Holders are not permitted to
utilize the Prospectus therein to resell such Registrable Securities for 30
consecutive calendar days or for more than an aggregate of 90 calendar days
during any 12-month period (which need not be consecutive Trading Days) (any
such failure or breach being referred to as an “Event,” and for purposes
of clause (i) or (ii) the date on which such breach being occurs, for purposes
of clause (iii) the date on which such 30 or 90 calendar day period, as
applicable, is exceeded, being referred to as an “Event Date”), then in
addition to any other rights the Holders may have hereunder or under applicable
law: (x) on each such Event Date and on each monthly anniversary of each such
Event Date (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Holder an
amount in cash, as liquidated damages and not as a penalty, equal to 0.5% of
the aggregate purchase price paid by such Holder pursuant to the Purchase
Agreement for any Registrable Securities then held by such Holder.  Notwithstanding anything to the contrary
contained herein, no Holder shall be entitled to be included in the
Registration Statement or receive liquidated damages unless such Holder has

 

3

 

provided such
information to the Company as the Company shall have reasonably requested in
connection with such Registration Statement.

 

3.             Registration Procedures

 

In connection with the Company’s registration
obligations hereunder, the Company shall:

 

(a)           Not less than three (3) Business
Days prior to the filing of the Registration Statement or any related
Prospectus or any amendment or supplement thereto, (i) furnish to the Holders
copies of all such documents proposed to be filed (including documents
incorporated or deemed incorporated by reference to the extent requested by
such Person) which documents will be subject to the review of such Holders, and
(ii) cause its officers and directors, counsel and independent certified public
accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective legal counsel to conduct a reasonable
investigation within the meaning of the Securities Act.  The Company shall not file the Registration
Statement or any such Prospectus or any amendments or supplements thereto to
which the Holders of a majority of the Registrable Securities shall reasonably
object in good faith.

 

(b)           (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the Registrable Securities
for the Effectiveness Period; (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement, and as so supplemented
or amended to be filed pursuant to Rule 424; (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect
to the Registration Statement or any amendment thereto; and (iv) comply in all
material respects with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by
the Registration Statement in accordance with the intended methods of
disposition by the Holders thereof set forth in the Registration Statement as
so amended or in such Prospectus as so supplemented.

 

(c)           Notify the Holders of Registrable Securities to be sold as
promptly as reasonably possible (and, in the case of (i)(A) below, not less
than two (2) Business Days prior to such filing) and (if requested by any such
Person) confirm such notice in writing promptly following the day (i) (A) when
a Prospectus or any Prospectus supplement or post-effective amendment to the
Registration Statement is proposed to be filed; (B) when the Commission
notifies the Company whether there will be a “review” of the Registration
Statement and whenever the Commission comments in writing on the Registration
Statement (the Company shall upon request provide true and complete copies
thereof and all written responses thereto as promptly as reasonably possible to
each of the Holders who so requests provided such requesting Holders agree to
keep such information confidential until it is publicly disclosed and to waive
Section 4.5 of

 

4

 

the Purchase Agreement with respect thereto); and (C) with respect to
the Registration Statement or any post-effective amendment, when the same has
become effective; (ii) of any request by the Commission or any other Federal or
state governmental authority during the period of effectiveness of the
Registration Statement for amendments or supplements to the Registration
Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement covering any
or all of the Registrable Securities or the initiation of any Proceedings for
that purpose; (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose, and (v) of the
occurrence of any event or passage of time that makes the financial statements
included in the Registration Statement ineligible for inclusion therein or any
statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration
Statement or the Prospectus, as the case may be, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading (provided that such
Holder of Registrable Securities agrees to keep such information confidential
until it is publicly disclosed and to waive Section 4.5 of the Purchase
Agreement with respect thereto).

 

(d)           Use its commercially reasonable efforts to avoid the
issuance of, or, if issued, obtain the withdrawal of (i) any order suspending
the effectiveness of the Registration Statement, or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(e)           To the extent requested by such Holders, furnish to each
Holder, without charge, at least one conformed copy of the Registration
Statement and each amendment thereto, including financial statements and
schedules, all documents incorporated or deemed to be incorporated therein by
reference, and all exhibits (including those previously furnished or
incorporated by reference) promptly after the filing of such documents with the
Commission.

 

(f)            Promptly deliver to each Holder,
without charge, as many copies of the Prospectus or Prospectuses (including
each form of prospectus) and each amendment or supplement thereto as such
Persons may reasonably request in connection with resales by the Holder of
Registrable Securities.  The Company
hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale
of the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto, except after the giving of any notice pursuant to Section
3(c).

 

5

 

(g)           Use its commercially reasonable efforts to register or
qualify or cooperate with the selling Holders in connection with the
registration or qualification (or exemption from the Registration or
qualification) of such Registrable Securities for the resale by the Holder
under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each of the
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by the Registration Statement; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified, subject the Company to any material tax in
any such jurisdiction where it is not then so subject or file a general consent
to service of process in any such jurisdiction.

 

(h)           If requested by the Holders, cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to the
Registration Statement, which certificates shall be free, to the extent
permitted by the Purchase Agreement, of all restrictive legends, and to enable
such Registrable Securities to be in such denominations and registered in such
names as any such Holders may request.

 

(i)            Upon the occurrence of any event
contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a
supplement or amendment, including a post-effective amendment, to the
Registration Statement or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither the
Registration Statement nor such Prospectus will contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(j)            Use commercially reasonable
efforts to make available to its security holders no later than the
Availability Date (as defined below), an earning statement covering a period of
at least twelve (12) months, beginning after the effective date of the
Registration Statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act, including Rule 158 promulgated
thereunder. For the purpose of this subsection, “Availability Date”
shall mean the 45th day following the end of the fourth fiscal
quarter after the fiscal quarter that includes the effective date of the
Registration Statement, except that, if such fourth fiscal quarter is the last
quarter of the Company’s fiscal year, “Availability Date” means the 90th
day after the end of such fourth fiscal quarter.

 

(k)           Comply with all applicable rules and regulations of the
Commission and use its commercially reasonable efforts to cause all Registrable
Securities to be listed for trading on a Trading Market.

 

6

 

(l)            If
requested by Holders, in the event of an underwritten offering of the
Registrable Securities by the Holders, furnish on the date that Registrable
Securities are delivered to the underwriters for sale pursuant to any such
registration (i) an opinion dated such date of counsel representing the Company
for the purposes of such registration, addressed to the underwriters to such
effects as reasonably may be requested by counsel for the underwriters and
executed counterparts of such opinion addressed to the sellers of Registrable
Securities to the same effect as requested by counsel for the underwriters and
(ii) a letter dated such date from the independent public accountants retained
by the Company, addressed to the underwriters stating that they are independent
public accountants within the meaning of the Securities Act and that, in the
opinion of such accountants, the financial statements of the Company included
in the registration statement or the prospectus, or any amendment or supplement
thereof, comply as to form in all material respects with the applicable
accounting requirements of the Securities Act and such letter shall
additionally cover such other financial matters (including information as to
the period ending no more than five (5) business days prior to the date of such
letter) with respect to such registration as such underwriters reasonably may
request.

 

The Company may require each selling Holder
to furnish to the Company a certified statement as to the number of shares of
Common Stock beneficially owned by such Holder and, if required by the
Commission, the person thereof that has voting and dispositive control over the
Shares.

 

4.             Registration Expenses.  All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement.  The fees and
expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made
with the Trading Market on which the Common Stock is then listed for trading,
and (B) for compliance with applicable state securities or Blue Sky laws), (ii)
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is reasonably requested by the Holders of a majority
of the Registrable Securities included in the Registration Statement), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement.  In
addition, the Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), the expense
of any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required
hereunder.  In no event shall the Company
be responsible for any broker or similar commissions or any legal fees or other
costs of the Holders.

 

7

 

5.             Indemnification

 

(a)           Indemnification by the Company.  The Company shall, notwithstanding any
termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, members, partners, agents, brokers, investment advisors
and employees (and any other Persons with a functionally equivalent role of a
Person holding such titles, notwithstanding a lack of such title or any other
title) of each of them, each Person who controls any such Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, members, partners, agents and employees (and any
other Persons with a functionally equivalent role of a Person holding such titles,
notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, to the extent arising out of or relating to any untrue or alleged
untrue statement of a material fact contained in the Registration Statement,
any Prospectus or any form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any Prospectus or
form of prospectus or supplement thereto, in light of the circumstances under
which they were made) not misleading, or any violation or alleged violation by
the Company of the Securities Act, Exchange Act or any state securities law, or
any rule or regulation thereunder, in connection with the performance of its
obligations under this Agreement, except to the extent, but only to the extent,
that (1) such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to
such Holder or such Holder’s proposed method of distribution of Registrable
Securities as set forth in Annex A hereto or any changes to Annex A
hereto that are expressly approved in writing by such Holder expressly for use
in the Registration Statement, such Prospectus or such form of Prospectus or in
any amendment or supplement thereto or (2) in the case of an occurrence of an
event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of
an outdated or defective Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 6(c).  The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding of which the Company
is aware in connection with the transactions contemplated by this Agreement.

 

(b)           Indemnification by Holders. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
Act), and the directors, officers, agents or employees of such controlling
Persons, to the fullest extent permitted by applicable law, from and against
all Losses, as incurred, to the extent arising out of or based upon: (x) such
Holder’s failure to comply with the

 

8

 

prospectus delivery requirements of the Securities Act or (y) any
untrue or alleged untrue statement of a material fact contained in the
Registration Statement, any Prospectus, or any form of prospectus, or in any
amendment or supplement thereto or in any preliminary prospectus, or arising
out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading (i) to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing
by such Holder to the Company specifically for inclusion in the Registration
Statement or such Prospectus or (ii) to the extent that (1) such untrue
statements or omissions are based solely upon information regarding such Holder
furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities as set forth in Annex
A hereto or any changes to Annex A hereto that are expressly
approved in writing by such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto, or (2) in the case of an occurrence of an event of the type
specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder
of the Advice contemplated in Section 6(b). 
In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities covered by the Registration
Statement giving rise to such indemnification obligation.

 

(c)           Conduct of Indemnification
Proceedings. If
any Proceeding shall be brought or asserted against any Person entitled to
indemnity hereunder (an “Indemnified Party”), such Indemnified Party
shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to
assume the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided, that the failure of any
Indemnified Party to give such notice shall not relieve the Indemnifying Party
of its obligations or liabilities pursuant to this Agreement, except (and only)
to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless:  (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying
Party shall have failed promptly to assume the defense of such Proceeding and
to employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding; or (3) the named parties to any such Proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such

 

9

 

Indemnified Party shall have been advised by counsel that a conflict of
interest is reasonably likely to exist if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
the reasonable fees and expenses of one separate counsel shall be at the
expense of the Indemnifying Party).  The
Indemnifying Party shall not be liable for any settlement of any such Proceeding
effected without its written consent.  No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

 

All reasonable fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten Business Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the
parties.

 

(d)           Contribution.  If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy
or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable
considerations.  The relative fault of
such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission.  The
amount paid or payable by a party as a result of any Losses shall be deemed to
include, subject to the limitations set forth in Section 5(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in
connection with any Proceeding to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in
this Section was available to such party in accordance with its terms.

 

10

 

The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding
paragraph.  Notwithstanding the
provisions of this Section 5(d), no Holder shall be required to contribute, in
the aggregate, any amount in excess of the amount by which the proceeds
actually received by such Holder from the sale of the Registrable Securities
subject to the Proceeding exceeds the amount of any damages that such Holder
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, except in the case of fraud by such
Holder.  The indemnity and contribution
agreements contained in this Section are in addition to any liability that the
Indemnifying Parties may have to the Indemnified Parties.

 

6.             Miscellaneous

 

(a)           Compliance.  Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
the Registration Statement.

 

(b)           Discontinued Disposition.  Each Holder agrees by its acquisition of such
Registrable Securities that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 3(c), such Holder will
forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until such Holder’s receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement or until it is
advised in writing (the “Advice”) by the Company that the use of the
applicable Prospectus may be resumed, and, in either case, has received copies
of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such Prospectus or Registration Statement.  In the event of a discontinued disposition
under this Section 6(b), the Company will use its commercially reasonable
efforts to ensure that the use of the Prospectus may be resumed as promptly as
is practicable and to provide copies of the supplemented Prospectus and/or
amended Registration Statement or the Advice as soon as possible in order to
enable each Holder to resume dispositions of the Registrable Securities. The
Company may provide appropriate stop orders to enforce the provisions of this
paragraph.  The Company agrees and
acknowledges that any periods during which the Holder is required to
discontinue the disposition of the Registrable Securities hereunder shall be
subject to the provisions of Section 2(b).

 

(c)           Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and each
Holder of the then outstanding Registrable Securities.

 

11

 

(d)           Lock-up.  During the 12 month period following the
Closing, if the Company delivers to the Purchasers a certificate signed by an
officer of the Company stating that the managing underwriter of a registered
public offering of equity securities of the Company, all of which relates to
securities to be sold on a primary basis by the Company (the “Offering”),
has requested that the Purchasers refrain from selling or otherwise
transferring or disposing of any Registrable Securities then held by the
Purchasers for a specified period of time during the Offering, the Purchasers
shall refrain from selling or otherwise transferring or disposing of any
Registrable Securities then held by the Purchasers beginning on the later of
(i) the 10th Business Day after receipt of such certificate from the
Company and (ii) the commencement of the Offering (which shall be the effective
date of the registration statement for such Offering) and ending following a
specified period of time that is customary under the circumstances (not to
exceed ninety (90) days).

 

(e)           Suspension of Trading.  At any time after the Registrable Securities
are covered by an effective Registration Statement, the Company may deliver to
the Holders of such Registrable Securities a certificate (the “Suspension
Certificate”) approved by the Chief Executive Officer of the Company and
signed by an officer of the Company stating that the effectiveness of and sales
of Registrable Securities under the Registration Statement would:

 

(i)            materially interfere
with any transaction that would require the Company to prepare financial
statements under the Securities Act that the Company would otherwise not be
required to prepare in order to comply with its obligations under the Exchange
Act, or

 

(ii)           require public
disclosure of any transaction of the type discussed in Section 6(e)(i) prior to
the time such disclosure might otherwise be required.

 

Beginning ten (10) Business Days after the
receipt of a Suspension Certificate by Holders of Registrable Securities, the
Company may, in its discretion, require such Holders of Registrable Securities
to refrain from selling or otherwise transferring or disposing of any
Registrable Securities or other Company securities then held by such Holders
for a specified period of time that is customary under the circumstances (not
to exceed thirty (30) days). 
Notwithstanding the foregoing sentence, the Company shall be permitted
to cause Holders of Registrable Securities to so refrain from selling or
otherwise transferring or disposing of any Registrable Securities or other
securities of the Company on only one occasion during each twelve (12) consecutive
month period that the Registration Statement remains effective.  The Company may impose stop transfer
instructions to enforce any required agreement of the Holders under this
Section 6(e).

 

(f)            Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (i) the date
of transmission,

 

12

 

if such notice or communication is delivered via facsimile at the
facsimile number provided for below prior to 5:00 p.m. (New York City time) on
a Business Day, (ii) the Business Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
provided for below later than 5:00 p.m. (New York City time) on any date and
earlier than 11:59 p.m. (New York City time) on such date, (iii) the Business
Day following the date of mailing, if sent by nationally recognized overnight
courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given.  The address and
delivery requirements for such notices and communications shall be as set forth
in the Purchase Agreement.

 

(g)           Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of the parties
and shall inure to the benefit of each Holder. 
The Company may not assign its rights or obligations hereunder without
the prior written consent of all of the Holders of the then-outstanding
Registrable Securities, provided a sale of the Company shall not be deemed an
assignment.  Each Holder may assign their
respective rights hereunder in the manner and to the Persons as permitted under
the Purchase Agreement.

 

(h)           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

 

(i)            Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law thereof.

 

(j)            Cumulative Remedies.  The remedies provided herein are cumulative
and not exclusive of any remedies provided by law.

 

(k)           Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

13

 

(l)            Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(m)          Independent Nature of Purchasers’
Obligations and Rights.  The obligations of each Purchaser hereunder
are several and not joint with the obligations of any other Purchaser
hereunder, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser hereunder.  Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any
Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement.  Each Purchaser shall be
entitled to protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such
purpose.

 

*************************

 

14

 

IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

 

	
   

  	
  SERVICES ACQUISITION CORP.

  INTERNATIONAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Steven R.
  Berrard, Chief Executive Officer

  

 

 

[PURCHASERS’ SIGNATURE PAGES TO FOLLOW]

 

 

[PURCHASERS’ SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

 

 

	
   

  	
  PURCHASER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Fax Number:

  
				

 

 

[ADDITIONAL PURCHASER SIGNATURES FOLLOW]

 

 

ANNEX A

 

Plan of Distribution

 

The shares covered by this prospectus may be
offered and sold from time to time by the selling stockholders. The term “selling
stockholder” includes pledgees, donees, transferees or other successors in
interest selling shares received after the date of this prospectus from each
selling stockholder as a pledge, gift, partnership distribution or other
non-sale related transfer. The number of shares beneficially owned by a selling
stockholder will decrease as and when it effects any such transfers. The plan
of distribution for the selling stockholders’ shares sold hereunder will
otherwise remain unchanged, except that the transferees, pledgees, donees or
other successors will be selling stockholders hereunder. To the extent
required, we may amend and supplement this prospectus from time to time to
describe a specific plan of distribution.

 

The selling stockholders will act
independently of us in making decisions with respect to the timing, manner and
size of each sale. The selling stockholders may make these sales at prices and
under terms then prevailing or at prices related to the then current market
price. The selling stockholders may also make sales in negotiated transactions.
The selling stockholders may offer their shares from time to time pursuant to
one or more of the following methods:

 

•             ordinary
brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

 

•             one or
more block trades in which the broker-dealer will attempt to sell the shares as
agent but may position and resell a portion of the block as principal to
facilitate the transaction;

 

•             purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;

 

•             an
exchange distribution in accordance with the rules of the applicable exchange;

 

•             public
or privately negotiated transactions;

 

•             on the American Stock Exchange or Nasdaq
National Market (or through the facilities of any national securities exchange
or U.S. inter-dealer quotation system of a registered national securities
association, on which the shares are then listed, admitted to unlisted trading
privileges or included for quotation);

 

•             through underwriters, brokers or dealers (who
may act as agents or principals) or directly to one or more purchasers;

 

•             a
combination of any such methods of sale; and

 

•             any
other method permitted pursuant to applicable law.

 

A-1

 

In connection with distributions of the
shares or otherwise, the selling stockholders may:

 

•             enter
into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the shares in the course of hedging
the positions they assume;

 

•             sell the
shares short and redeliver the shares to close out such short positions;

 

•             enter
into option or other transactions with broker-dealers or other financial
institutions which require the delivery to them of shares offered by this
prospectus, which they may in turn resell; and

 

•             pledge
shares to a broker-dealer or other financial institution, which, upon a
default, they may in turn resell.

 

In addition to the foregoing methods, the
selling stockholders may offer their shares from time to time in transactions
involving principals or brokers not otherwise contemplated above, in a
combination of such methods or described above or any other lawful methods. The
selling stockholders may also transfer, donate or assign their shares to
lenders, family members and others and each of such persons will be deemed to
be a selling stockholder for purposes of this prospectus. The selling
stockholders or their successors in interest may from time to time pledge or
grant a security interest in some or all of the shares of common stock, and if
the selling stockholders default in the performance of their secured obligations,
the pledgees or secured parties may offer and sell the shares of common stock
from to time under this prospectus; provided however in the event of a pledge
or then default on a secured obligation by the selling stockholder, in order
for the shares to be sold under this registration statement, unless permitted
by law, we must distribute a prospectus supplement and/or amendment to this
registration statement amending the list of selling stockholders to include the
pledgee, secured party or other successors in interest of the selling
stockholder under this prospectus.

 

The selling stockholders may also sell their
shares pursuant to Rule 144 under the Securities Act, which permits
limited resale of shares purchased in a private placement subject to the satisfaction
of certain conditions, including, among other things, the availability of
certain current public information concerning the issuer, the resale occurring
following the required holding period under Rule 144 and the number of
shares being sold during any three-month period not exceeding certain
limitations.

 

Sales through brokers may be made by any
method of trading authorized by any stock exchange or market on which the
shares may be listed or quoted, including block trading in negotiated transactions.
Without limiting the foregoing, such brokers may act as dealers by purchasing
any or all of the shares covered by this prospectus, either as agents for
others or as principals for their own accounts, and reselling such shares
pursuant to this prospectus. The selling stockholders may effect such
transactions directly, or indirectly through underwriters, broker-dealers or
agents acting on their behalf. In effecting sales, broker-dealers or agents
engaged by the selling stockholders may arrange for other broker-dealers to
participate. Broker-dealers or agents may receive commissions, discounts or
concessions from the selling

 

A-2

 

stockholders, in amounts to be negotiated
immediately prior to the sale (which compensation as to a particular
broker-dealer might be in excess of customary commissions for routine market
transactions).

 

In offering the shares covered by this
prospectus, the selling stockholders, and any broker-dealers and any other
participating broker-dealers who execute sales for the selling stockholders,
may be deemed to be “underwriters” within the meaning of the Securities Act in
connection with these sales. Any profits realized by the selling stockholders
and the compensation of such broker-dealers may be deemed to be underwriting
discounts and commissions.

 

The Company is required to pay all fees and
expenses incident to the registration of the shares.

 

The Company has agreed to indemnify the
selling stockholders against certain losses, claims, damages and liabilities,
including liabilities under the Securities Act.

 

A-3

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