0000950123-05-005529 Sample Contracts

Exhibit 10.7 Morgan Joseph & Co. Inc. 600 Fifth Avenue, 19th Floor New York, New York 10020 Re: Stone Arcade Acquisition Corporation Gentlemen: This letter will confirm the agreement of the undersigned to purchase warrants ("Warrants") of Stone Arcade...
Warrant Purchase Agreement • May 3rd, 2005 • Stone Arcade Acquisition CORP

This letter will confirm the agreement of the undersigned to purchase warrants ("Warrants") of Stone Arcade Acquisition Corporation ("Company") included in the units ("Units") being sold in the Company's initial public offering ("IPO") upon the terms and conditions set forth herein. Each Unit is comprised of one share of Common Stock and two Warrants. The shares of Common Stock and Warrants will not be separately tradeable until 90 days after the effective date of the Company's IPO unless Morgan Joseph & Co. Inc. ("Morgan Joseph") informs the Company of its decision to allow earlier separate trading.

BETWEEN
Underwriting Agreement • May 3rd, 2005 • Stone Arcade Acquisition CORP • New York
OF
Purchase Option Agreement • May 3rd, 2005 • Stone Arcade Acquisition CORP • New York