Document:

exv10w4

 

Exhibit 10.4

 

REGISTRATION RIGHTS AGREEMENT

by and between

Sidhu Special Purpose Capital Corp.

WNH Holdings, LLC

and

THE OTHER PERSONS NAMED HEREIN

Dated as of                     , 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II REGISTRATION RIGHTS	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	 	2.1	 	Demand Registration
	 	 	3	 
	 	 	2.2	 	Piggy-Back Registration
	 	 	5	 
	 	 	2.3	 	Form S-3 Registrations
	 	 	7	 
	 	 	2.4	 	Automatic Shelf Registration Statement
	 	 	8	 
	 	 	2.5	 	Permitted Delays
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III REGISTRATION; PROCEDURES	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	 	 	3.1	 	Filings; Information
	 	 	9	 
	 	 	3.2	 	Obligation to Suspend Distribution
	 	 	12	 
	 	 	3.3	 	Registration Expenses
	 	 	12	 
	 	 	3.4	 	Information
	 	 	13	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV INDEMNIFICATION AND CONTRIBUTION	 	 	13	 
	 	 	4.1	 	Indemnification by the Company
	 	 	13	 
	 	 	4.2	 	Indemnification by Holders
	 	 	14	 
	 	 	4.3	 	Conduct of Indemnification Proceedings
	 	 	14	 
	 	 	4.4	 	Contribution
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V UNDERWRITING AND DISTRIBUTION	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	 	 	5.1	 	Rule 144
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	 	 	6.1	 	Other Registration Rights
	 	 	16	 
	 	 	6.2	 	Assignment; No Third Party Beneficiaries
	 	 	16	 
	 	 	6.3	 	Stock Splits, etc
	 	 	16	 
	 	 	6.4	 	Notices
	 	 	16	 
	 	 	6.5	 	Severability
	 	 	17	 
	 	 	6.6	 	Counterparts
	 	 	17	 
	 	 	6.7	 	Entire Agreement
	 	 	17	 
	 	 	6.8	 	Modifications and Amendments
	 	 	17	 
	 	 	6.9	 	Titles and Headings
	 	 	17	 
	 	 	6.10	 	Waivers and Extensions
	 	 	17	 
	 	 	6.11	 	Remedies Cumulative
	 	 	17	 
	 	 	6.12	 	Governing Law; Submission to Jurisdiction
	 	 	18	 
	 	 	6.13	 	Waiver of Trial by Jury
	 	 	18	 

 

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of                     , 2008, by
and between Sidhu Special Purpose Capital Corp. (the
“Company”), WNH Holdings, LLC (the
“Sponsor”), the persons listed in Schedule I hereto (the “Initial Holders”) and any
Permitted Transferee (as defined below) who hereafter becomes a party to this Agreement as
contemplated by Section 6.2 of this Agreement (each such party who holds Registrable
Securities (as defined below), a “Holder” and, collectively, the “Holders”).

     WHEREAS, the Sponsor and the Initial Holders currently hold all of the issued and outstanding
common stock, par value $0.0001 per share, of the Company (the “Common Stock”), consisting
of 4,312,500 shares of Common Stock (the “Sponsor Shares”);

     WHEREAS, the Sponsor has agreed to purchase from the Company an aggregate of 4,125,000
warrants (the “Sponsor Warrants”), entitling the Sponsor to purchase one share of Common
Stock, at a price of $1.00 per Sponsor Warrant in a private placement that will occur immediately
prior to the closing of the Company’s initial public offering; and

     WHEREAS, the Sponsor, the Initial Holders and the Company desire to enter into this Agreement
to provide the Sponsor and the Initial Holders with certain rights relating to the registration of
(i) the Sponsor Shares, the Common Stock and Warrants comprising (or that formerly were part of)
the Sponsor Shares and the Common Stock issuable upon exercise of such Warrants and (ii) the
Sponsor Warrants and the Common Stock issuable upon exercise of the Sponsor Warrants.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

ARTICLE I

DEFINITIONS

     The following capitalized terms used herein have the following meanings:

     “Affiliate” has the meaning set forth in Rule 405 promulgated under the Securities Act
(in effect on the date hereof).

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

     “Automatic Shelf Registration Statement” means an “automatic shelf registration
statement” as defined in Rule 405 promulgated under the Securities Act (in effect on the date
hereof).

     “Business Combination” means the Company’s initial business combination, through a
merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar
business combination with one or more currently unidentified domestic or international operating
businesses, meeting the conditions described in the Registration Statement.

     “Commission” means the U.S. Securities and Exchange Commission or any successor
entity.

     “Demand Registration” is defined in Section 2.1 (a).

 

 

     “Demanding Holder” is defined in Section 2.1 (a).

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

     “Free Writing Prospectus” means any “free writing prospectus” as defined in Rule 405
promulgated under the Securities Act (in effect on the date hereof).

     “Indemnified Party” is defined in Section 4.3.

     “Indemnifying Party” is defined in Section 4.3.

     “Individual Holders” means (i) the Initial Holders, (ii) any other current or future
officers or directors of the Company who receive or acquire Registrable Securities from the Sponsor
after the date hereof, and (iii) any Permitted Transferees (other than the Sponsor) of such persons
described in (i) and (ii) (but only to the extent that after the date hereof any such Permitted
Transferees acquire Registrable Securities from such persons).

     “Maximum Threshold” is defined in Section 2.1(d).

     “Permitted Transferees” means (i) the Company, any of the Company’s officers,
directors and employees, any Affiliates or Family Members of such individuals, the Sponsor, any
Affiliates of the Company or the Sponsor, and any officers, directors, members and employees of the
Sponsor or such Affiliates, (ii) any charitable organization, (iii) any individual pursuant to a
qualified domestic relations order, (iv) if the transferor is a corporation, partnership or limited
liability company, any stockholder, partner or member of the transferor and (v) any individual or
entity by virtue of laws or agreements governing descent or distribution upon the death or
dissolution of the transferor; provided, that, any such transferees agree in writing to
become a party to this Agreement. For purposes of this definition, “Family Member” of a
person means such person’s present spouse and/or domestic partner, parents, lineal ascendants or
descendants or any siblings of any of the foregoing, any descendants of any sibling of such person,
any estate planning vehicle formed primarily for the benefit of such person or any of the foregoing
persons or any corporation, partnership, limited liability company, trust, incorporated or
unincorporated association, joint venture or other entity of any kind (including any successor of
such entity) owned by any of the foregoing.

     “Piggy-Back Registration” is defined in Section 2.2(a).

     “Pro rata” is defined in Section 2.1(d).

     “Registrable Securities” means (i) the Sponsor Shares, and (ii) the Sponsor Warrants
and the Common Stock issuable upon exercise of the Sponsor Warrants. Registrable Securities
include any shares of capital stock, warrants or other securities of the Company issued as a
dividend or other distribution with respect to or in exchange for or in replacement of Registrable
Securities. As to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when: (a) a Registration Statement with respect to the sale of such
securities shall have become effective under the Securities Act and such securities shall have been
sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (b)
such securities shall have been otherwise transferred, new certificates for them not bearing a
legend restricting further transfer shall have been delivered by the Company and subsequent public
distribution of them shall not require registration under the Securities Act; (c) such securities
shall have ceased to be outstanding; or (d) the entire amount of the Registrable Securities held by
any Holder may be sold in a single sale, in the opinion of counsel reasonably satisfactory

2

 

to the Company, without any limitation as to volume or manner of sale pursuant to Rule 144 (or
any successor rule or regulation) under the Securities Act.

     “Registration Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act for a public offering and sale of Registrable
Securities (other than a registration statement on Form S-4 or S-8 (or any successor or
substantially similar form), or in connection with (i) an employee stock option, stock purchase or
compensation plan or securities issued or issuable pursuant to any such plan or (ii) a dividend
reinvestment plan).

     “Release Date” means, the 180th day following the consummation of a Business
Combination.

     “S-3 Initiating Holders” means either (i) the Holders of a majority-in-interest, on an
as-converted to Common Stock basis, of the Registrable Securities or (ii) the Holders of a
majority-in-interest, on an as-converted to Common Stock basis, of the Registrable Securities held
by the Individual Holders.

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

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

     “Warrant Agreement” means the warrant agreement, dated [                    ], 2008, between the
Company and Mellon Investors Services LLC, as warrant agent.

ARTICLE II

REGISTRATION RIGHTS

     2.1 Demand Registration.

          (a) Request for Registration. At any time on or after the date that is three months
prior to the applicable Release Date (i) the Holders of a majority-in-interest, on an as-converted
to Common Stock basis, of such Registrable Securities may make a written demand for registration
under the Securities Act of all or part of their Registrable Securities (each such demand, a
“Demand Registration”); provided that any Registration Statement filed with the
Commission with respect to a Demand Registration shall not be declared effective before the
applicable Release Date. Any demand for a Demand Registration shall specify the class and number
of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution
thereof. The Company will promptly notify all Holders of the demand, and each who wishes to
include all or a portion of such Holder’s Registrable Securities in the Demand Registration (each
such Holder including shares of Registrable Securities in such registration, a “Demanding
Holder”) shall so notify the Company in writing within 10 days after the receipt by the Holder
of the notice from the Company. Upon receipt by the Company of any such notice, the Demanding
Holders shall be entitled to have their Registrable Securities included in the Demand Registration,
subject to Sections 2.1 (d) and 2.1 (f). The Company shall not be obligated to
effect more than three Demand Registrations in respect of all Registrable Securities.

          (b) Effective Registration. A registration will not count as a Demand Registration
until the Registration Statement filed with the Commission with respect to such Demand Registration
has been declared effective and the Company has complied with all of its material obligations under
this Agreement with respect thereto; provided, however, that if, after such
Registration Statement has been declared effective, the offering of Registrable Securities pursuant
to a Demand Registration is interfered with by any stop order or injunction of the Commission or
any other governmental agency or court, the

3

 

Registration Statement with respect to such Demand Registration will be deemed not to have
been declared effective, unless and until (i) such stop order or injunction is removed, rescinded
or otherwise terminated and (ii) a majority-in-interest, on an as-converted to Common Stock basis,
of the Demanding Holders thereafter elect to continue the offering; provided,
further, that the Company shall not be obligated to file a second Registration Statement
until a Registration Statement that has been filed is counted as a Demand Registration or is
terminated.

          (c) Underwritten Offering. If a majority-in-interest, on an as-converted to Common
Stock basis, of the Demanding Holders so elects and such Holders so advise the Company as part of
their written demand for a Demand Registration, the offering of such Registrable Securities
pursuant to such Demand Registration shall be in the form of an underwritten offering with one or
more investment banking firms of national reputation to act as the managing Underwriter or
Underwriters of the offering. In such event, the right of any Holder to include its Registrable
Securities in such registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the
extent provided herein. All Demanding Holders proposing to distribute their securities through
such underwriting shall enter into an underwriting agreement in customary form with the Underwriter
or Underwriters selected for such underwriting by a majority-in-interest, on an as-converted to
Common Stock basis, of the Demanding Holders, which Underwriter or Underwriters shall be reasonably
acceptable to the Company.

          (d) Reduction of Offering. If the managing Underwriter or Underwriters for a Demand
Registration that is to be an underwritten offering advises the Company and the Demanding Holders
in writing that the dollar amount or number or amount of Registrable Securities that the Demanding
Holders desire to sell, taken together with all other shares of Common Stock or other securities
that the Company desires to sell and the shares of Common Stock, if any, as to which registration
has been requested pursuant to written contractual piggy-back registration rights held by other
stockholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number
of securities that the Company believes can be sold in such offering without adversely affecting
the proposed offering price, the timing, the distribution method or the probability of success of
such offering (such maximum dollar amount or maximum number of securities, as applicable, the
“Maximum Threshold”), then the Company shall include in such registration: (i) first, the
Registrable Securities as to which Demand Registration has been requested by the Demanding Holders
(pro rata in accordance with the number of shares (including Sponsor Warrants, on
an as-converted to Common Stock basis) that each such person has requested be included in such
registration, regardless of the number of shares held by each such person (such proportion is
referred to herein as “Pro rata”)) that can be sold without exceeding the Maximum
Threshold; (ii) second, to the extent that the Maximum Threshold has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Threshold; and (iii) third, to the extent that
the Maximum Threshold has not been reached under the foregoing clauses (i) and (ii) collectively,
the shares of Common Stock or other securities for the account of other persons that the Company is
obligated to register pursuant to written contractual arrangements with such persons and that can
be sold without exceeding the Maximum Threshold.

          (e) Withdrawal. If a majority-in-interest, on an as-converted to Common Stock basis,
of the Demanding Holders disapproves of the terms of any underwriting or is not entitled to include
all of its Registrable Securities in any offering, such majority-in-interest of the Demanding
Holders may elect to withdraw from such offering by giving written notice to the Company and the
Underwriter or Underwriters of its request to withdraw prior to the effectiveness of the
Registration Statement filed with the Commission with respect to such Demand Registration. If the
majority-in-interest, on an as-converted to Common Stock basis, of the Demanding Holders withdraws
from a proposed offering relating to a Demand Registration, then the Company shall withdraw the
Registration Statement related to such

4

 

offering with regards to all such Demanding Holders and such registration shall not count as a
Demand Registration provided for in Section 2.1(a). Notwithstanding any such withdrawal,
the Company shall pay all expenses incurred by the Holders in connection with such Demand
Registration as provided in Section 3.3.

     (f) Permitted Delays. The Company shall be entitled to postpone the filing of any
Registration Statement under this Section 2.1 if (i) at any time prior to the filing of
such Registration Statement the Board of Directors of the Company determines, in its good faith
business judgment, that such registration and offering would materially and adversely affect any
financing, acquisition, corporate reorganization or other material transaction involving the
Company and (ii) the Company delivers the Demanding Holders written notice thereof within 10
business days of the date of receipt of such request for a Demand Registration; provided
that all such periods of postponement may not exceed [45] days during any 365-day period.

     (g) Cancellation of Registration. A majority-in-interest, on an as-converted to
Common Stock basis, of the Demanding Holders shall have the right to cancel a proposed registration
of Registrable Securities pursuant to Section 2.1 when (i) in their discretion, market
conditions are so unfavorable as to be seriously detrimental to an offering pursuant to such
registration or (ii) the request for cancellation is based upon material adverse information
relating to the Company that was unknown to the Demanding Holders at the time of their written
request for a Demand Registration. Such cancellation of a registration shall not be counted as one
of the three Demand Registrations provided for in Section 2.1(a) and, notwithstanding
anything to the contrary in this Agreement, the Company shall be responsible for the expenses of
the Demanding Holders incurred in connection with the registration prior to the time of such
cancellation.

     (h) Suspension of Registration. If the filing, initial effectiveness or continued use
of a Registration Statement in respect of a Demand Registration at any time would require the
Company to make an Adverse Disclosure or would require the inclusion in such Registration Statement
of financial statements that are unavailable to the Company for reasons beyond the Company’s
control, the Company may, upon giving prompt written notice of such action to the Holders, delay
the filing or initial effectiveness of, or suspend use of, such Registration Statement for the
shortest possible period of time determined in good faith by the Company to be necessary for such
purpose. In the event the Company exercises its rights under the preceding sentence, the Holders
agree to suspend, immediately upon their receipt of notice referred to above, their use of the
prospectus relating to the Demand Registration in connection with any sale or offer to sell
Registrable Securities. The Company shall immediately notify the Holders of the expiration of any
period during which it exercised rights under this Section 2.1(h). For the purpose of this
Section 2.1(h), “Adverse Disclosure” means public disclosure of material nonpublic
information, which, in the good faith judgment of the Chairman of the Board of Directors, the
principal executive officer or the principal financial officer of the Company, after consultation
with counsel to the Company, (i) would be required to be made in any Registration Statement or
prospectus in order for the applicable Registration Statement or prospectus not to contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein in light of the circumstances under which they were made not misleading, (ii)
would not be required to be made at such time if the Registration Statement were not being filed
and (iii) the Company has a bona fide business purpose for not publicly making.

     2.2 Piggy-Back Registration.

          (a) Piggy-Back Rights. If at any time on or after the applicable Release Date, the
Company proposes to file a Registration Statement under the Securities Act with respect to an
offering of equity securities, or securities or other obligations exercisable or exchangeable for,
or convertible into,

5

 

equity securities, by the Company for its own account or for stockholders of the Company for
their account other than pursuant to Section 2.1, then the Company shall (i) give written
notice of such proposed filing to the Holders as soon as practicable but in no event less than 10
business days before the intended filing date, which notice shall disclose the amount and type of
securities to be included in such Registration Statement, the intended method(s) of distribution
and the name of the proposed managing Underwriter or Underwriters, if any and (ii) offer to the
Holders in such notice the opportunity to register the sale of such number or amount of Registrable
Securities as such Holders may request in writing within 10 days following receipt of such notice
(a “Piggy-Back Registration”). The Company shall cause such Registrable Securities to be
included in such registration and shall use its commercially reasonable efforts to cause the
managing Underwriter or Underwriters of a proposed underwritten offering to permit the Registrable
Securities requested to be included in a Piggy-Back Registration on the same terms and conditions
as any similar securities of the Company and to permit the sale or other disposition of such
Registrable Securities in accordance with the intended method(s) of distribution thereof. All
Holders proposing to distribute their securities through a Piggy-Back Registration that involves an
Underwriter or Underwriters shall enter into an underwriting agreement in customary form with the
Underwriter or Underwriters selected for such Piggy-Back Registration.

(b) Reduction of Offering. If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company and the Holders
in writing that the dollar amount or number or amount of securities which the Company desires to
sell, taken together with the shares of Common Stock or other securities, if any, as to which
registration has been demanded pursuant to written contractual arrangements with persons other than
the Holders hereunder, the Registrable Securities as to which registration has been requested under
this Section 2.2, and the securities, if any, as to which registration has been requested
pursuant to the written contractual piggy-back registration rights of other stockholders of the
Company, exceeds the Maximum Threshold, then the Company shall include in any such registration:

          (i) If the registration is undertaken for the Company’s account: (A) first, the shares
of Common Stock or other securities that the Company desires to sell that can be sold
without exceeding the Maximum Threshold; (B) second, to the extent that the Maximum
Threshold has not been reached under the foregoing clause (A), the shares of Common Stock or
other securities, if any, comprised of Registrable Securities as to which Piggy-Back
Registration has been requested pursuant to Section 2.2(a), Pro rata, that can be
sold without exceeding the Maximum Threshold; and (C) third, to the extent that the Maximum
Threshold has not been reached under the foregoing clauses (A) and (B) collectively, the
            shares of Common Stock or other securities for the account of other persons that the Company
is obligated to register pursuant to written contractual piggy-back registration rights with
such persons and that can be sold without exceeding the Maximum Threshold; and

          (ii) If the registration is a “demand” registration undertaken at the demand of persons
other than the Holders, (A) first, the shares of Common Stock or other securities for the
account of the demanding persons that can be sold without exceeding the Maximum Threshold;
(B) second, to the extent that the Maximum Threshold has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Threshold; (C) third, to the
extent that the Maximum Threshold has not been reached under the foregoing clauses (A) and
(B) collectively, the shares of Common Stock or other securities comprised of Registrable
Securities, Pro rata, as to which Piggy-Back Registration has been requested pursuant to
Section 2.2(a), that can be sold without exceeding the Maximum Threshold; and (D)
fourth, to the extent that the Maximum Threshold has not been reached under the foregoing
clauses (A), (B) and (C) collectively, the shares of Common Stock or other securities for
the account of other persons that the Company is obligated

6

 

to register pursuant to written contractual arrangements with such persons, that can be
sold without exceeding the Maximum Threshold.

          (c) Withdrawal. Any Holder may elect to withdraw such Holder’s request for inclusion
of Registrable Securities in any Piggy-Back Registration by giving written notice to the Company of
such request to withdraw prior to the effectiveness of the Registration Statement. The Company
(whether on its own determination or as the result of a withdrawal by persons making a demand
pursuant to written contractual obligations) may withdraw a Registration Statement filed pursuant
to this Section 2.2 at any time prior to the effectiveness of the Registration Statement.
Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the Holders in
connection with such Piggy-Back Registration as provided in Section 3.3.

     2.3 Form S-3 Registrations.

          (a) Requests for a Form S-3 Registration. Upon the later of (i) the Company becoming
eligible for use of Form S-3 or any successor form thereto under the Securities Act in connection
with a secondary public offering of its securities and (ii) the time at which the Holders may
request a Demand Registration under Section 2.1(a), in the event that the Company shall receive
from the S-3 Initiating Holders a written request that the Company register under the Securities
Act on Form S-3 or any successor form then in effect (an “S-3 Registration”) the sale of
all or a portion of the Registrable Securities owned by such S-3 Initiating Holders (which S-3
Registration may be a shelf registration pursuant to Rule 415 promulgated under the Securities Act
(or any successor rule or regulation)), the Company shall give written notice of such request to
all of the other Holders as promptly as practicable but in no event later than 10 days before the
anticipated filing date of such Form S-3, which notice shall describe the proposed registration,
the intended method of distribution of such Registrable Securities and any other information that
at the time would be appropriate to include in such notice, and offer such other Holders the
opportunity to register the number of Registrable Securities as each such Holder may request in
writing to the Company, given within 10 days of the date on which the Company sent the written
notice of such registration. Each request for an S-3 Registration by the S-3 Initiating Holders
shall state the amount of the Registrable Securities proposed to be sold and the intended method of
disposition thereof. With respect to each S-3 Registration, the Company shall, subject to
Section 2.3(c), (i) include in such offering the Registrable Securities of the S-3
Initiating Holders and the other Holders who have requested in writing to participate in such
registration on the same terms and conditions as the Registrable Securities of the S-3 Initiating
Holders included therein (collectively, the “S-3 Participating Holders”) and
(ii) use its commercially reasonable efforts to cause such registration pursuant to this
Section 2.3(a) to become and remain effective as soon as practicable but in no event
earlier than 90 days after the effective date of any other Registration Statement of the Company
that had been filed with the Commission but not yet declared effective at the time such
registration was requested. Notwithstanding the foregoing, immediately upon determination of the
price at which such Registrable Securities are to be sold in a S-3 Registration that is a firm
commitment underwritten offering, if such price is below the price which any S-3 Participating
Holder finds acceptable, such S-3 Participating Holder shall then have the right, by written notice
to the Company, to withdraw its Registrable Securities from being included in such offering;
provided, that such a withdrawal by any one of the S-3 Initiating Holders shall constitute
and effect an automatic withdrawal by all other S-3 Participating Holders. If the S-3 Initiating
Holders request, the Company shall cause such S-3 Registration to be made pursuant to an Automatic
Shelf Registration Statement (provided such Automatic Shelf Registration Statement is available for
use by the Company) and may omit the names of the S-3 Participating Holders and the amount of the
Registrable Securities to be offered thereunder. The Company shall not be obligated to effect more
than one S-3 Registration requested by the S-3 Initiating Holders described in clause (ii) of the
definition thereof.

7

 

          (b) Form S-3 Underwriting Procedures. If a majority-in-interest, on an as-converted
to Common Stock basis, of the S-3 Initiating Holders so elect, the Company shall use its
commercially reasonable efforts to cause such S-3 Registration pursuant to this Section 2.3
to be in the form of a firm commitment underwritten offering with one or more investment banking
firms of national reputation to act as the managing Underwriter or Underwriters. In connection
with any S-3 Registration under Section 2.3(a) involving an underwritten offering, the
Company shall not be required to include any Registrable Securities in such underwritten offering
unless the Holders thereof accept the terms of the underwritten offering as agreed upon between the
Company, the managing Underwriter or Underwriters and a majority-in-interest, on an as-converted to
Common Stock basis, of the S-3 Initiating Holders, and then only in such quantity as set forth
below.

          (c) Reduction of Offering. If the managing Underwriter or Underwriters advise the
Company that the registration of all or part of the Registrable Securities which the S-3 Initiating
Holders and the other Holders have requested to be included would materially adversely affect the
distribution or sales price of the Registrable Securities in such public offering, then the Company
shall include in such underwritten offering, to the extent of the amount that the managing
Underwriter or Underwriters believes may be sold without causing such material adverse effect, (i)
first, such number of Registrable Securities of the Holders participating in the offering under
Section 2.1 (a), which Registrable Securities shall be allocated Pro rata, (ii) second, any
other securities of the Company requested by holders thereof to be included in such registration,
pro rata among such other holders on the basis of the number of securities that
each such holder requested to be included in such registration and (iii) third, securities offered
by the Company for its own account.

          (d) Expenses. Except as provided in Section 3.3, the Company shall bear all
Registration Expenses in connection with any S-3 Registration pursuant to this Section 2.3,
whether or not such S-3 Registration becomes effective.

     2.4 Automatic Shelf Registration Statement. If a Form S-3 is an Automatic Shelf
Registration Statement and such Automatic Shelf Registration Statement becomes effective without
naming the selling security holders or disclosing the amount of securities offered, upon written
request by the Holders participating in the offering, the Company shall, as promptly as practicable
after receiving such request, (i) file with the Commission a prospectus supplement naming the
selling security holders and the amount of Registrable Securities to be offered and include, to the
extent not included or incorporated by reference in the Registration Statement, any other
information omitted from the prospectus used in connection with such Registration Statement as
permitted by Rule 430B promulgated under the Securities Act (including the plan of distribution)
and (ii) pay any necessary filing fees to the Commission within the time period required.

     2.5 Permitted Delays. The Company shall be entitled to postpone the filing of any
Registration Statement under Section 2.3 if (i) at any time prior to the filing of such
Registration Statement the Board of Directors of the Company determines, in its good faith business
judgment, that such registration and offering would materially and adversely affect any financing,
acquisition, corporate reorganization or other material transaction involving the Company, and (ii)
the Company delivers the Holders requesting such registration written notice thereof within 10
business days of the date of receipt of such request; provided, that all such periods of
postponement may not exceed 45 days during any 365-day period.

8

 

ARTICLE III

REGISTRATION; PROCEDURES.

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

          (a) Filing Registration Statement. Subject to Sections 2.1 (f) and
2.5, the Company shall, as promptly as reasonably practicable, and in any event within 75
days after receipt of a request for a Demand Registration pursuant to Section 2.1 or a
request for an S-3 Registration pursuant to Section 2.3, prepare and file with the
Commission a Registration Statement on any applicable form for which the Company then qualifies or
which counsel for the Company shall deem appropriate and which form shall be available for the sale
of all Registrable Securities to be registered thereunder in accordance with the intended method(s)
of distribution thereof, and shall use its commercially reasonable efforts to cause such
Registration Statement to become and remain effective for the period required by
Section 3.1(b). Before filing with the Commission a Registration Statement or prospectus
or any amendment or supplement thereto, including documents incorporated by reference, or before
using any Free Writing Prospectus, the Company shall furnish to the Holders included in such
Registration Statement and to one firm of legal counsel selected by a majority-in-interest, on an
as-converted to Common Stock basis, of the Demanding Holders, copies of all such documents proposed
to be filed sufficiently in advance of filing to provide such Holders and legal counsel with a
reasonable opportunity to review such documents and comment thereon, and the Company shall not file
any Registration Statement or prospectus or amendment or supplement thereto, including documents
incorporated by reference, to which such Holders or their legal counsel shall reasonably object.

          (b) Amendments and Supplements. The Company shall prepare and file with the
Commission such amendments, including post-effective amendments, and supplements to such
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
such Registration Statement effective and in compliance with the provisions of the Securities Act
until all Registrable Securities and other securities covered by such Registration Statement have
been disposed of in accordance with the intended method(s) of distribution set forth in such
Registration Statement (which period shall not exceed the sum of 180 days (or, in the case of an
S-3 Registration Statement, three years from the effective date of the Registration Statement if
such Registration Statement is filed pursuant to Rule 415 promulgated under the Securities Act (or
any successor rule or regulation) plus any period during which any such disposition is interfered
with by any stop order or injunction of the Commission or any governmental agency or court).

          (c) Copies. The Company shall, upon request, furnish without charge to the Holders
included in such Registration Statement, and the Holders’ legal counsel, copies of such
Registration Statement, each amendment and supplement thereto (in each case including all exhibits
thereto and documents incorporated by reference therein), the prospectus included in such
Registration Statement (including each preliminary prospectus), any prospectus filed under Rule 424
under the Securities Act and any Free Writing Prospectus as each such Holder or their legal counsel
may reasonably request in order to facilitate the disposition of the Registrable Securities owned
by such Holders.

          (d) State Securities Laws Compliance. The Company shall, as promptly as practicable,
(i) register or qualify the Registrable Securities covered by the Registration Statement under such
securities or “blue sky” laws of such jurisdictions in the United States as the Holders included in
such Registration Statement (in light of their intended plan of distribution) may request and (ii)
take such action necessary to cause such Registrable Securities covered by the Registration
Statement to be registered

9

 

with or approved by such other governmental authorities as may be necessary by virtue of the
business and operations of the Company and do any and all other acts and things that may be
necessary or advisable to enable the Holders included in such Registration Statement to consummate
the disposition of such Registrable Securities in such jurisdictions; provided,
however, that the Company shall not be required to qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph, subject
itself to taxation in any such jurisdiction or consent to general service of process in any such
jurisdiction.

          (e) Notification. After the filing of a Registration Statement, the Company shall
promptly, and in no event more than two business days after such filing, notify the Holders
included in such Registration Statement of such filing, and shall further notify such Holders in
writing within two business days of the occurrence of any of the following: (i) when a prospectus,
any prospectus supplement, any Free Writing Prospectus, or a post-effective amendment to the
Registration Statement has been filed with the Commission, and with respect to the Registration
Statement or any post-effective amendment, when the same becomes effective; (ii) the issuance or
threatened issuance by the Commission of any stop order (and the Company shall take all reasonable
actions required to prevent the entry of such stop order or to remove it if entered); (iii) any
request by the Commission for any amendment or supplement to such Registration Statement, any
prospectus relating thereto or Free Writing Prospectus or for additional information; or (iv) the
existence of any fact or happening of any event of which the Company has knowledge which makes any
statement of a material fact in such Registration Statement, related prospectus or Free Writing
Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue or
which would require the making of any changes in such Registration Statement, prospectus or Free
Writing Prospectus in order that, in the case of the Registration Statement, 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 not misleading, and that in the case of such
prospectus or Free Writing Prospectus, 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 the light of the circumstances under which they were made, not misleading.
The Company shall, as promptly as practicable upon the occurrence of any event contemplated by the
foregoing clause (iv), prepare a supplement or amendment to such Registration Statement, related
prospectus or Free Writing Prospectus and furnish to each Holder participating in the offering to
which such Registration Statement relates a reasonable number of copies of such supplement to, or
amendment of, such Registration Statement, prospectus or Free Writing Prospectus as may be
necessary so that, after delivery to the purchasers of such Registrable Securities, in the case of
the Registration Statement, 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
not misleading, and that in the case of such prospectus or Free Writing Prospectus, 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.

          (f) Agreements for Disposition. The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable
Securities. The representations, warranties and covenants of the Company in any underwriting
agreement that are made to or for the benefit of any Underwriters, to the extent applicable, shall
also be made to and for the benefit of the Holders included in such Registration Statement. No
Holder included in such Registration Statement shall be required to make any representations or
warranties in the underwriting agreement except, if applicable, with respect to such Holder’s
organization, good standing, authority, title to Registrable Securities, lack of conflict of such
sale with such Holder’s material agreements and organizational documents, and with respect to
written information relating to such Holder that such
Holder has furnished in writing expressly for inclusion in such Registration Statement.
Holders shall

10

 

agree to such covenants and indemnification and contribution obligations from selling
stockholders as are customarily contained in underwriting agreements. Further, such Holders shall
cooperate fully in the preparation of the Registration Statement and other documents relating to
the any offering in which they include securities pursuant to Article II hereof;
provided, however, that such cooperation shall be limited to furnishing to the
Company such information regarding itself, the Registrable Securities held by such Holder and the
intended method of distribution of such securities as shall be reasonably required to effect the
registration of the Registrable Securities.

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

          (h) Records. The Company shall make available for inspection by the Holders included
in such Registration Statement, any Underwriter participating in any disposition pursuant to such
Registration Statement and any attorney, accountant or other professional retained by the Holders
included in such Registration Statement or any Underwriter (each an “Inspector” and,
collectively, the “Inspectors”), all financial and other records, pertinent corporate
documents and properties of the Company (collectively, the “Records”), as shall be
necessary to enable them to exercise their due diligence responsibility, and cause the Company’s
officers, directors and employees to supply all information reasonably requested by any of them in
connection with such Registration Statement. Records that the Company determines, in good faith,
to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by
the Inspectors (and the Inspectors shall confirm their agreement in writing in advance to the
Company if the Company shall so request) unless (x) the disclosure of such Records is necessary, in
the Company’s judgment, to avoid or correct a misstatement or omission in the Registration
Statement, (y) the release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction after exhaustion of all appeals therefrom or (z) the information in
such Records was known to the Inspectors on a nonconfidential basis prior to its disclosure by the
Company or has been made generally available to the public. Each Holder participating in an
offering agrees that it shall, upon learning that disclosure of such Records is sought in a court
of competent jurisdiction, promptly give notice to the Company and allow the Company, at the
Company’s expense, to undertake appropriate action to prevent disclosure of the Records deemed
confidential. In the event that the Company is unsuccessful in preventing the disclosure of such
Records, such Holder agrees that it shall furnish only such portion of those Records which it is
advised by counsel is legally required and shall, at the Company’s expense, exercise all reasonable
efforts to obtain reliable assurance that confidential treatment will be accorded to those Records.

          (i) Opinions and Comfort Letters. If a Registration Statement in respect of
Registrable Securities includes an underwritten public offering, the Company shall furnish or cause
to be furnished to the participating Holders and the managing Underwriter or Underwriters such
documents and certificates from the Company’s independent public accountants and legal counsel,
including an opinion of counsel and customary comfort letters, as may be reasonably required
pursuant to the underwriting agreement related thereto. In the event no legal opinion is to be
delivered pursuant to the Underwriting Agreement, the Company shall furnish to each Holder included
in such Registration Statement, at any time that such Holder elects to use a prospectus, an opinion
of counsel to the Company (based solely on the oral advice of the Commission) to the effect that
the Registration Statement containing such prospectus has been declared effective and that no stop
order is in effect.

11

 

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

          (k) Listing. The Company shall cause all Registrable Securities included in any
registration to be listed on such exchanges or otherwise designated for trading in the same manner
as similar securities issued by the Company are then listed or designated or, if no such similar
securities are then listed or designated, in a manner reasonably satisfactory to the holders of the
majority-in-interest, on an as-converted to Common Stock basis, of the Registrable Securities
included in such Registration, provided, in each case, that the applicable listing
requirements are satisfied.

          (l) FINRA. The Company shall cooperate with each Holder participating in the offering
and each Underwriter, if any, and their respective legal counsel in connection with any filings
required to be made with the Financial Industry Regulatory Authority.

          (m) Other Actions. The Company shall (i) take all other steps reasonably necessary to
effect the registration of the Registrable Securities contemplated hereby and reasonably cooperate
with the Holders of such Registrable Securities to facilitate the disposition of such Registrable
Securities pursuant thereto; (ii) make all required filings of all prospectuses and Free Writing
Prospectuses with the Commission within the deadlines specified by the Securities Act; and (iii)
make all required filing fee payments in respect of any Registration Statement or prospectus used
under this Agreement (and any offering covered thereby) within the deadlines specified by the
Securities Act.

     3.2 Obligation to Suspend Distribution. Each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Sections
3.1(e)(ii), (iii) or (iv) such Holder shall forthwith discontinue disposition
of Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until such Holder’s receipt of the copies of the supplemented or amended Prospectus or
Free Writing Prospectus contemplated by Section 3.1(e)(i) (or if no supplemental or amended
prospectus or Free Writing Prospectus is required, upon confirmation from the Company that use of
the prospectus or Free Writing Prospectus is once again permitted) and, if so directed by the
Company, such Holder shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus or Free Writing
Prospectus covering such Registrable Securities which is current at the time of receipt of such
notice. If the Company shall give any such notice, the Company shall extend the period during
which such Registration Statement shall be maintained effective pursuant to this Agreement
(including, without limitation, the period referred to in Section 3.1(b) by the number of
days during the period from and including the date of the giving of such notice pursuant to
Sections 3.1(e)(ii), (iii) or (iv) to and including the date when the
Holders of such Registrable Securities participating in the offering under such Registration
Statement shall have received the copies of the supplemented or amended prospectus or Free Writing
Prospectus contemplated by and meeting the requirements of Section 3.1(e) (or if no
supplemental or amended prospectus or Free Writing Prospectus is required, upon confirmation from
the Company that use of the prospectus or Free Writing Prospectus is once again permitted).

     3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in
connection with any registration of Registrable Securities under this Agreement, and all expenses
incurred in performing or complying with its other obligations under this Agreement, whether or not
the Registration Statement becomes effective, including, without limitation: (i) all registration
and filing fees; (ii) fees and expenses of compliance with securities or “blue sky” laws (including
fees and disbursements of counsel in connection with blue sky qualifications of the Registrable
Securities); (iii) printing

12

 

expenses; (iv) the Company’s internal expenses (including, without limitation, all salaries
and expenses of its officers and employees); (v) the fees and expenses incurred in connection with
the listing of the Registrable Securities as required by Section 3.1(k); (vi) Financial
Industry Regulatory Authority, Inc. fees; (vii) the fees and disbursements of counsel for the
Company and counsel for the Underwriter or Underwriters and fees and expenses for independent
certified public accountants retained by the Company (including the expenses or costs associated
with the delivery of any opinions or comfort letters requested pursuant to Section 3.1(i));
(viii) the fees and expenses of any special experts retained by the Company in connection with such
registration; and (ix) the fees and expenses of one legal counsel selected by the Holders of a
majority-in-interest, on an as-converted to Common Stock basis, of the Registrable Securities
included in such registration. The Company shall have no obligation to pay any underwriting
discounts or selling commissions attributable to the Registrable Securities being sold by the
Holders thereof, which underwriting discounts or selling commissions shall be borne by such
Holders. Additionally, in an underwritten offering, all selling stockholders and the Company shall
bear the expenses of the underwriter, if any, pro rata in proportion to the
respective amount of shares each is selling in such offering.

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

ARTICLE IV

INDEMNIFICATION AND CONTRIBUTION

     4.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless
the Sponsor and each other Holder participating in an offering pursuant to Sections 2.1,
2.2 or 2.3 hereunder, and each of their respective officers, employees, Affiliates,
directors, partners, members, attorneys and agents, and each person, if any, who controls (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Sponsor and
each other Holder participating in such offering from and against any expenses, losses, judgments,
claims, damages or liabilities, or any action or proceeding in respect thereof (including
reasonable costs of investigation and reasonable attorneys’ fees and expenses), whether joint or
several, arising out of or based upon any untrue statement (or allegedly untrue statement) of a
material fact contained in any Registration Statement under which the sale of such Holder’s
Registrable Securities was registered under the Securities Act (including each preliminary
prospectus), any prospectus filed under Rule 424 under the Securities Act, any Free Writing
Prospectus or any other information that is deemed under Rule 159 promulgated under the Securities
Act to have been conveyed to purchasers of securities at the time of sale of such securities
(including, without limitation, a contract of sale), or any amendment or supplement thereto, or
arising out of or based upon any omission (or alleged omission) to state a material fact required
to be stated therein or necessary to make the statements therein not misleading under the
circumstances such statements were made; and the Company shall promptly reimburse any such
indemnified party for any legal and any other expenses reasonably incurred by such indemnified
party in connection with investigating and defending any such expense, loss, judgment, claim,
damage, liability or action; provided, however, that the Company will not be liable
in any such case to the extent that any such expense, loss, claim, damage or liability arises out
of or is based upon any untrue statement or allegedly untrue statement or omission or alleged
omission made in such Registration Statement (including each preliminary prospectus), any
prospectus filed under Rule 424 under the Securities Act, any Free Writing Prospectus or any other
information that is deemed under Rule 159 promulgated under the Securities Act to have been
conveyed to purchasers of securities at the time of sale of such securities (including, without
limitation, a contract of sale), or any such amendment or supplement, in reliance upon and in
conformity with information furnished to the Company, in writing,

13

 

by a Holder participating in the offering expressly for use therein. The Company also shall
indemnify any Underwriter of the Registrable Securities, their officers, Affiliates, directors,
partners, members and agents and each person who controls such Underwriter on substantially the
same basis as that of the indemnification provided above in this Section 4.1.

     4.2 Indemnification by Holders. Each Holder will, in the event that any registration
is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities
held by such Holder, indemnify and hold harmless the Company, each of its directors and officers
and each Underwriter (if any), and each other Holder participating in the offering and each other
person, if any, who controls another participating Holder or such Underwriter within the meaning of
the Securities Act, against any expenses, losses, judgments, claims, damages or liabilities, or any
action or proceeding in respect thereof (including reasonable costs of investigation and reasonable
attorneys’ fees and expenses), whether joint or several, insofar as such expenses, losses,
judgments, claims, damages or liabilities, or any action or proceeding in respect thereof, arise
out of or are based upon any untrue statement (or allegedly untrue statement) of a material fact
contained in the Registration Statement under which the sale of such Registrable Securities was
registered under the Securities Act, any preliminary prospectus, any prospectus filed under Rule
424 under the Securities Act, any Free Writing Prospectus or any other information that is deemed
under Rule 159 promulgated under the Securities Act to have been conveyed to purchasers of
securities at the time of sale of such securities (including, without limitation, a contract of
sale), or any amendment or supplement thereto, or arise out of or are based upon any omission (or
alleged omission) to state a material fact required to be stated therein or necessary to make the
statements therein not misleading under the circumstances such statements were made, if the
statement or omission was made in reliance upon and in conformity with information furnished in
writing to the Company by such Holder participating in the offering expressly for use therein, and
shall reimburse the Company, its directors and officers, and each other Holder participating in the
offering or controlling person for any legal or other expenses reasonably incurred by any of them
in connection with investigating or defending any such expense, loss, judgment, claim, damage,
liability or action. Each Holder’s indemnification obligations hereunder shall be several and not
joint and shall be limited to the amount of any net proceeds actually received by such Holder in
the offering.

     4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any person of
any notice of any loss, claim, damage or liability or any action in respect of which indemnity may
be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified
Party”) shall, if a claim in respect thereof is to be made against any other person for
indemnification hereunder, notify such other person (the “Indemnifying Party”) in writing
of the loss, claim, judgment, damage, liability or action; provided, however, that
the failure by the Indemnified Party to notify the Indemnifying Party shall not relieve the
Indemnifying Party from any liability which the Indemnifying Party may have to such Indemnified
Party hereunder, except and solely to the extent the Indemnifying Party is actually prejudiced by
such failure. If the Indemnified Party is seeking indemnification with respect to any claim or
action brought against the Indemnified Party, then the Indemnifying Party shall be entitled to
participate in such claim or action, and, to the extent that it wishes, jointly with all other
Indemnifying Parties, to assume control of the defense thereof with counsel reasonably satisfactory
to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its
election to assume control of the defense of such claim or action, the Indemnifying Party shall not
be liable to the Indemnified Party for any legal or other expenses subsequently incurred by the
Indemnified Party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that in any action in which both the Indemnified
Party and the Indemnifying Party are named as defendants, the Indemnified Party shall have the
right to employ separate counsel (but no more than one such separate counsel in addition to local
counsel) to represent the Indemnified Party and its controlling persons who may be subject to
liability arising out of any claim in respect of which indemnity may be sought by the Indemnified
Party against the Indemnifying
Party, with the reasonable fees and expenses of such counsel to be paid by such Indemnifying
Party if,

14

 

based upon the written opinion of counsel of such Indemnified Party, representation of
both parties by the same counsel would be inappropriate due to actual or potential differing
interests between them. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, consent to entry of judgment or effect any settlement of any claim or pending or
threatened proceeding in respect of which the Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless such judgment or
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such claim or proceeding.

     4.4 Contribution.

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

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

ARTICLE V

UNDERWRITING AND DISTRIBUTION

     5.1 Rule 144. The Company covenants that it shall use its reasonable best efforts to
file any reports required to be filed by it under the Securities Act and the Exchange Act and shall
use its reasonable efforts to take such further action as the Holders may reasonably request, all
to the extent required from time to time to enable such Holders to sell Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission.

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ARTICLE VI

MISCELLANEOUS

     6.1 Other Registration Rights. Except as set forth in the Warrant Agreement, the
Company represents and warrants that no person, other than the Sponsor and any Permitted Transferee
who holds Registrable Securities has any right to require the Company to register any shares of the
Company’s capital stock for sale or to include shares of the Company’s capital stock in any
registration filed by the Company for the sale of shares of capital stock for its own account or
for the account of any other person.

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

     6.3 Stock Splits, etc. The provisions of this Agreement shall be appropriately
adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the
like occurring after the date hereof.

     6.4 Notices. All notices, demands, requests, consents, approvals or other
communications required or permitted to be given hereunder or which are given with respect to this
Agreement shall be in writing and shall be delivered by nationally recognized commercial courier
service promising next business day delivery and requiring receipt for delivery (such as Federal
Express), or transmitted by hand delivery, addressed as set forth below, or to such other address
as such party shall have specified most recently by written notice. Notice shall be deemed given
on the date of delivery if hand delivered or one business day after following timely delivery of
such notice to such commercial courier service with an order for next-day delivery.

To the Company:

Sidhu Special Purpose Capital Corp.

485 Madison Avenue, 20th Floor

New York, New York 10022

Attention: Jay S. Sidhu

with a copy to:

Stevens & Lee

620 Freedom Business Center, Suite 200

King of Prussia, PA 19406

Attention: Jeffrey P. Waldron

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To the Sponsor:

WNH Holdings, LLC

Center City Executive Centre

607 Washington Street

Reading, PA 19601

Attention: Joseph M. Harenza

To each of the other Holders:

at such addresses as shall have been provided by such Holders to the Company.

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

     6.6 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument.

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

     6.8 Modifications and Amendments. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless consented to in writing by the Company and the holders of a
majority-in-interest, on an as-converted to Common Stock basis, of the Registrable Securities.

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

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

     6.11 Remedies Cumulative. In the event that the Company fails to observe or perform
any covenant or agreement to be observed or performed under this Agreement, the Sponsor or any
other Holder may proceed to protect and enforce its rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for an injunction
against the breach of any such

17

 

term or in aid of the exercise of any power granted in this Agreement or to enforce any other
legal or equitable right, or to take any one or more of such actions, without being required to
post a bond. None of the rights, powers or remedies conferred under this Agreement shall be
mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to any
other right, power or remedy, whether conferred by this Agreement or now or hereafter available at
law, in equity, by statute or otherwise.

     6.12 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by
the laws of the State of Delaware, without giving effect to any choice-of-law provisions thereof
that would compel the application of the substantive laws of any other jurisdiction. The parties
hereto agree that any action, proceeding or claim against it arising out of or relating in any way
to this Agreement shall be brought and enforced in the courts of the State of Delaware or the
United States District Court for Delaware, and the parties hereto irrevocably submit to such
jurisdiction, which jurisdiction shall be exclusive. The parties hereto hereby waive any objection
to such exclusive jurisdiction and that such courts represent and inconvenient forum.

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

[Remainder of page intentionally left blank.]

18

 

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

	 	 	 	 	 
	 	SIDHU SPECIAL PURPOSE CAPITAL CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WNH HOLDINGS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	INITIAL HOLDERS:

Name:exv10w5

 

Exhibit 10.5

INDEMNITY AGREEMENT

     This Indemnity Agreement (“Agreement”) is made as of                      ___, 200___, by and
between Sidhu Special Purpose Capital Corp., a Delaware corporation (the “Company”), and
                     (“Indemnitee”).

RECITALS

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as [directors] [officers] or in other capacities unless they are provided with
adequate protection through insurance or adequate indemnification against inordinate risks of
claims and actions against them arising out of their service to and activities on behalf of the
corporation;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in
order to attract and retain qualified individuals, the Company will attempt to maintain on an
ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and
its subsidiaries, if any, from certain liabilities. Although the furnishing of such insurance has
been a customary and widespread practice among United States-based corporations and other business
enterprises, the Company believes that, given current market conditions and trends, such insurance
may be available to it in the future only at higher premiums and with more exclusions. At the same
time, directors, officers, and other persons in service to corporations or business enterprises are
being increasingly subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the Company or business
enterprise itself. The By-laws and Amended and Restated Certificate of Incorporation of the
Company require indemnification of the officers and directors of the Company. Indemnitee may also
be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware
(the “DGCL”). The Amended and Restated Certificate of Incorporation expressly provides for
the Company to indemnify its officers and directors to the full extent permitted by Section 145 of
the DGCL, and thereby contemplates that contracts may be entered into between the Company and
members of the Board and officers with respect to indemnification;

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons;

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified;

1

 

     WHEREAS, this Agreement is a supplement to and in furtherance of the By-laws of the Company
and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder;

     WHEREAS, Indemnitee does not regard the protection available under the Company’s By-laws and
insurance as adequate in the present circumstances, and may not be willing to serve as a [director]
[officer] without adequate protection, and the Company desires Indemnitee to serve in such
capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for
or on behalf of the Company on the condition that he be so indemnified; and

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to serve as a [director]
[officer] of the Company. Indemnitee may at any time and for any reason resign from such position
(subject to any other contractual obligation or any obligation imposed by operation of law), in
which event the Company shall have no obligation under this Agreement to continue Indemnitee in
such position. This Agreement shall not be deemed an employment contract between the Company (or
any of its subsidiaries or any Enterprise (as defined below)) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries
or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any
reason, with or without cause, except as may be otherwise provided in any written employment
contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other
applicable formal severance policies duly adopted by the Board, or, with respect to service as a
director or officer of the Company, by the Company’s Amended and Restated Certificate of
Incorporation, the Company’s By-laws, and the DGCL. The foregoing notwithstanding, this Agreement
shall continue in force after Indemnitee has ceased to serve as an [officer] [director] of the
Company.

     Section 2. Definitions. As used in this Agreement:

          (a) A “Change in Control” shall be deemed to occur upon the earliest to occur after
the date of this Agreement of any of the following events:

               (i) Acquisition of Stock by Third Party. Any Person (as defined below) other than WNH
Holdings, LLC, a Pennsylvania limited liability company, is or becomes the Beneficial Owner (as
defined below), directly or indirectly, of securities of the Company representing forty percent
(40%) or more of the combined voting power of the Company’s then-outstanding securities;

               (ii) Change in Board. During any period of two (2) consecutive years (not including
any period prior to the execution of this Agreement), individuals who at the beginning of such
period constitute the Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction described in
Sections 2(a)(i) or 2(a)(iii)) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in
office who either were directors at the beginning of the period or whose election or

2

 

nomination for election was previously so approved, cease for any reason to constitute at
least a majority of the members of the Board; and

               (iii) Corporate Transactions. The effective date of a merger or consolidation of the
Company with any other entity, other than a merger or consolidation that would result in the voting
securities of the Company outstanding immediately prior to such merger or consolidation continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 51% of the combined voting power of the voting securities of the
surviving entity outstanding immediately after such merger or consolidation and with the power to
elect at least a majority of the board of directors or other governing body of such surviving
entity.

     For purposes of this Section 2(a), the following terms shall have the following meanings:

                    A. “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”); provided, however, that
Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under
an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly,
by the stockholders of the Company in substantially the same proportions as their ownership of
stock of the Company.

                    B. “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under
the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise
becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the
Company with another entity.

          (b) “Corporate Status” describes the status of a person who is or was a director,
officer, employee or agent of the Company or of any Enterprise.

          (c) “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding (as defined below) in respect of which indemnification is sought by
Indemnitee.

          (d) “Enterprise” shall mean the Company and any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise of which
Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent
or fiduciary.

          (e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent, and (ii) for purposes of Section 13(d) only, Expenses incurred by Indemnitee in

3

 

connection with the interpretation, enforcement or defense of Indemnitee’s rights under this
Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

          (f) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
of other indemnitees under similar indemnity agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The
Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above
and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages
arising out of or relating to this Agreement or its engagement pursuant hereto.

          (g) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative, legislative, or
investigative nature, including any appeal therefrom, in which Indemnitee was, is or will be
involved as a party, potential party, non-party witness or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or
of any action on his part while acting as director or officer of the Company, or by reason of the
fact that he is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, limited liability company, partnership, joint venture, trust or other
enterprise, in each case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement; except one initiated by an Indemnitee to enforce his rights under
this Agreement.

          (h) Reference to “other enterprise” shall include employee benefit plans; references
to “fines” shall include any excise tax assessed with respect to any employee benefit plan;
references to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company that imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably
believed to be in the best interests of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee

4

 

shall be indemnified to the fullest extent permitted by applicable law against all Expenses,
judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or
on his behalf in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause
to believe that his conduct was unlawful.

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue
or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall
have been finally adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery or any court in which the Proceeding was brought shall
determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by
applicable law and to the extent that Indemnitee is a party to (or a participant in) and is
successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or
matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf in connection with
each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in
such Proceeding, the Company also shall indemnify Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim, issue, or matter on
which the Indemnitee was successful. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

     Section 6. Indemnification For Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the fullest extent permitted by applicable law and to the extent
that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which
Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

5

 

     Section 7. Additional Indemnification.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or
threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the
Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid
in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding.

          (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent
permitted by applicable law” shall include, but not be limited to:

               (i) to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL, and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify its officers and directors.

     Section 8. Exclusions. Notwithstanding any provision in this Agreement, the Company
shall not be obligated under this Agreement to make any indemnity in connection with any claim:

          (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
such insurance policy or other indemnity provision, or

          (b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as
defined in Section 2(a) hereof) or similar provisions of state statutory law or common law, or
(ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or
equity-based compensation or of any profits realized by the Indemnitee from the sale of securities
of the Company, as required in each case under the Exchange Act (including any such reimbursements
that arise from an accounting restatement of the Company pursuant to Section 304 of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306
of the Sarbanes-Oxley Act), or

          (c) except as provided in Section 13(d) of this Agreement, in connection with any Proceeding
(or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of
any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees
or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any
Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law.

     Section 9. Advances of Expenses. Notwithstanding any provision of this Agreement to
the contrary, the Company shall advance, to the extent not prohibited by law, the Expenses

6

 

incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made
within thirty (30) days after the receipt by the Company of a statement or statements requesting
such advances from time to time, whether prior to or after final disposition of any Proceeding.
Advances shall be unsecured and interest free. Advances shall be made without regard to
Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement
to indemnification under the other provisions of this Agreement. Advances shall include any and
all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including
Expenses incurred preparing and forwarding statements to the Company to support the advances
claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company
of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes
to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled
to be indemnified by the Company. This Section 9 shall not apply to any claim made by Indemnitee
for which indemnity is excluded pursuant to Section 8.

     Section 10. Procedure for Notification and Defense of Claim.

          (a) Indemnitee shall notify the Company in writing of any matter with respect to which
Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as
reasonably practicable following the receipt by Indemnitee of written notice thereof. The written
notification to the Company shall include a description of the nature of the Proceeding and the
facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall
submit to the Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification following the final
disposition of such action, suit or proceeding. The omission by Indemnitee to notify the Company
hereunder will not relieve the Company from any liability that it may have to Indemnitee hereunder
or otherwise than under this Agreement, and any delay in so notifying the Company shall not
constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company
shall, promptly upon receipt of such a request for indemnification, advise the Board in writing
that Indemnitee has requested indemnification.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

     Section 11. Procedure Upon Application for Indemnification.

          (a) Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or
(ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested
Directors designated by a majority vote of the Disinterested Directors, even though less than a
quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested
Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which
shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the
Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within ten (10) days after such

7

 

determination. Indemnitee shall cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any documentation or information
that is not privileged or otherwise protected from disclosure and that is reasonably available to
Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including
attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the
determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom.

          (b) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as
provided in this Section 11(b). If a Change in Control shall not have occurred, the Independent
Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee
advising him of the identity of the Independent Counsel so selected. If a Change in Control shall
have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board, in which event the preceding sentence shall
apply), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be,
may, within ten (10) days after such written notice of selection shall have been given, deliver to
the Company or to Indemnitee, as the case may be, a written objection to such selection; provided,
however, that such objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this
Agreement, and the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person so selected shall act as Independent
Counsel. If such written objection is so made and substantiated, the Independent Counsel so
selected may not serve as Independent Counsel unless and until such objection is withdrawn or a
court has determined that such objection is without merit. If, within twenty (20) days after the
later of submission by Indemnitee of a written request for indemnification pursuant to
Section 10(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have
been selected and not objected to, either the Company or Indemnitee may petition a court of
competent jurisdiction for resolution of any objection that shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the due commencement
of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent
Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to
the applicable standards of professional conduct then prevailing).

     Section 12. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall, to the fullest extent not prohibited
by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with

8

 

Section 10(a) of this Agreement, and the Company shall, to the fullest extent not prohibited
by law, have the burden of proof to overcome that presumption in connection with the making by any
person, persons or entity of any determination contrary to that presumption. Neither the failure
of the Company (including by its directors or Independent Counsel) to have made a determination
prior to the commencement of any action pursuant to this Agreement that indemnification is proper
in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or Independent Counsel) that Indemnitee
has not met such applicable standard of conduct, shall be a defense to the action or create a
presumption that Indemnitee has not met the applicable standard of conduct.

          (b) Subject to Section 13(e), if the person, persons or entity empowered or selected under
Section 11 of this Agreement to determine whether Indemnitee is entitled to indemnification shall
not have made a determination within sixty (60) days after receipt by the Company of the request
therefor, the requisite determination of entitlement to indemnification shall, to the fullest
extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such
indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statement not materially misleading, in connection
with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 60-day period may be extended for a reasonable time,
not to exceed an additional thirty (30) days, if the person, persons or entity making the
determination with respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information relating thereto; and
provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the
determination of entitlement to indemnification is to be made by the stockholders pursuant to
Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of
the request for such determination the Board has resolved to submit such determination to the
stockholders for their consideration at an annual meeting thereof to be held within seventy-five
(75) days after such receipt and such determination is made thereat, or (B) a special meeting of
stockholders is called within fifteen (15) days after such receipt for the purpose of making such
determination, such meeting is held for such purpose within sixty (60) days after having been so
called and such determination is made thereat, or (ii) if the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement.

          (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner that he reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

          (d) Reliance as Safe Harbor. For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the
records or books of account of the Enterprise, including financial statements, or on information
supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the

9

 

advice of legal counsel for the Enterprise or on information or records given or reports made
to the Enterprise by an independent certified public accountant or by an appraiser or other expert
selected with the reasonable care by the Enterprise. The provisions of this Section 12(d) shall
not be deemed to be exclusive or to limit in any way the other circumstances in which the
Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

          (e) Actions of Others. The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for
purposes of determining the right to indemnification under this Agreement.

     Section 13. Remedies of Indemnitee.

          (a) Subject to Section 13(e), in the event that (i) a determination is made pursuant to
Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 11(a) of this Agreement within ninety (90) days after receipt by the Company of the request
for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 or the
last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company
of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 7 of this
Agreement is not made within ten (10) days after a determination has been made that Indemnitee is
entitled to indemnification, or (vi) in the event that the Company or any other person takes or
threatens to take any action to declare this Agreement void or unenforceable, or institutes any
litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the
benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be
entitled to an adjudication by a court of his entitlement to such indemnification or advancement of
Expenses.

          (b) In the event that a determination shall have been made pursuant to Section 11(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this
Section 13, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be.

          (c) If a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

          (d) The Company shall, to the fullest extent not prohibited by law, be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall

10

 

stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. It is the intent of the Company that the Indemnitee not be required
to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of
Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense
thereof would substantially detract from the benefits intended to be extended to the Indemnitee
hereunder. The Company shall indemnify Indemnitee against any and all Expenses and, if requested
by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request
therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or
advance of Expenses from the Company under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately
is determined to be entitled to such indemnification, advancement of Expenses or insurance
recovery, as the case may be.

          (e) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.

     Section 14. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Company’s Amended and Restated Certificate of Incorporation, the
Company’s By-laws, any agreement, a vote of stockholders or a resolution of directors, or
otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall
limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or
omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.
To the extent that a change in Delaware law, whether by statute or judicial decision, permits
greater indemnification or advancement of Expenses than would be afforded currently under the
Company’s By-laws, Amended and Restated Certificate of Incorporation and this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so
afforded by such change. No right or remedy herein conferred is intended to be exclusive of any
other right or remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other right or remedy.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents of the Company or of any
Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their
terms to the maximum extent of the coverage available for any such director, officer, employee or
agent under such policy or policies. If, at the time of the receipt of a notice of a claim
pursuant to the terms hereof, the Company has director and officer liability insurance in effect,
the Company shall give prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of

11

 

the Indemnitee, all amounts payable as a result of such proceeding in accordance with the
terms of such policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company’s obligation to indemnify or advance Expenses hereunder in respect of
Indemnitee’s service to an Enterprise shall be reduced by any amount Indemnitee has actually
received as indemnification or advancement of Expenses from such Enterprise.

     Section 15. Duration of Agreement. This Agreement shall continue until and terminate
upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as
a [director] [officer] of the Company or (b) one (1) year after the final termination of any
Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or
advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to
Section 13 of this Agreement relating thereto. This Agreement shall be binding upon the Company
and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs,
executors and administrators.

     Section 16. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including without limitation,
each portion of any Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by
law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to
the fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

     Section 17. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director
or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a director or officer of the Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof; provided, however,
that this Agreement is a supplement to and in furtherance of the Amended and Restated Certificate
of Incorporation of the Company, the By-laws of the Company and

12

 

applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any
rights of Indemnitee thereunder.

     Section 18. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver.

     Section 19. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter that may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation that it may have to the Indemnitee under this
Agreement or otherwise.

     Section 20. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication shall have been
directed, (b) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed, (c) delivered to a nationally recognized commercial
courier service promising next business day delivery and requiring receipt for delivery or (d) sent
by facsimile transmission, with receipt of oral confirmation that such transmission has been
received:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide to the Company.

          (b) If to the Company, to

Sidhu Special Purpose Capital Corp.

Center City Executive Centre

607 Washington Street

Reading, Pennsylvania 19601

Attention: Jay S. Sidhu, President and Chief Executive Officer

or to any other address as may have been furnished to Indemnitee by the Company.

     Section 21. Contribution. To the fullest extent permissible under applicable law, if
the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

13

 

     Section 22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or
federal court in the United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding
arising out of or in connection with this Agreement, (iii) waive any objection to the laying of
venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to
plead or to make, any claim that any such action or proceeding brought in the Delaware Court has
been brought in an improper or inconvenient forum.

     Section 23. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original, but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

     Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or
to affect the construction thereof.

[Signature Page Follows]

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

	 	 	 	 	 
	SIDHU
SPECIAL PURPOSE CAPITAL CORP.	 	INDEMNITEE
	 
	By: 

	 	 	 	 
	 

	 	 
	 	 
	Name: 

	 	 	 	Name: 
	Office: 

	 	 	 	Address: 

15

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