Document:

exv10w3

 

Exhibit 10.3

FIRST AMENDMENT AND WAIVER

          FIRST AMENDMENT AND WAIVER (this “Agreement”), dated as of August 29, 2007, by and
among RESEARCH PHARMACEUTICAL SERVICES, INC., a Pennsylvania corporation (“Borrower”), and
PNC BANK, NATIONAL ASSOCIATION, as the sole lender (in such capacity, “Lender”) and as
agent under the Credit Agreement (as hereinafter defined) (in such capacity, “Agent”).

W I T N E S S E T H:

          WHEREAS, Borrower, Lender and Agent are parties to a Revolving Credit and Security Agreement
dated as of November 1, 2006 (the “Credit Agreement”);

          WHEREAS, Borrower has advised Agent and Lender that it desires to participate in a series of
transactions (collectively, the “Transactions”) in which:

          (i) Longxia Acquisition, Inc., a Pennsylvania corporation and a wholly-owned subsidiary of
Cross Shore Acquisition Corporation, a Delaware corporation (the “Acquirer”) will first
merge with and into Borrower, and promptly thereafter Borrower will merge with and into ReSearch
Pharmaceutical Services, LLC, a Delaware limited liability company and also a wholly-owned
subsidiary of the Acquirer, with the net result that Borrower will be a Delaware limited liability
company known as ReSearch Pharmaceutical Services, LLC and a wholly-owned subsidiary of the
Acquirer (such transactions collectively, the “Merger”),

          (ii) prior to or on completion of the Merger, Borrower will pay approximately $2.6 million in
dividends to the holders of Borrower’s preferred stock (collectively, the “Preferred
Dividends”),

          (iii) prior to or on completion of the Merger, Borrower will pay approximately $4.5 million to
Merion Investment Partners L.P. as repayment in full of debt that has been subordinated to the debt
owed to the Lender (the “Subordinated Debt Repayment”),

          (iv) The Acquirer will become a guarantor of Borrower’s obligations under the Credit Agreement
pursuant to a Guaranty of even date herewith (the “Acquirer Guaranty”) and will pledge its
equity interest in Borrower to Agent as additional security for its obligations under the Acquirer
Guaranty pursuant to a Pledge Agreement of even date herewith (the “Acquirer Pledge
Agreement”, and

          (v) The Acquirer will change its name to ReSearch Pharmaceutical Services, Inc.

          WHEREAS, consummation of the Transactions would breach several of the covenants contained in
the Credit Agreement;

          WHEREAS, at the request of Borrower and based on information provided to them by Borrower,
Lender and Agent have agreed to consent to the Transactions, and to (i) waive compliance with
certain provisions of the Credit Agreement, and (ii) amend the Credit

 

 

Agreement to reflect the Transactions, all on the terms and subject to the conditions set
forth herein.

          NOW, THEREFORE, in consideration of the foregoing and for other consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

          1. Defined Terms. Unless otherwise defined herein (including in the foregoing
recitals), terms defined in the Credit Agreement are used herein as therein defined.

          2. Consent and Waiver. In accordance with Section 15.2(b) of the Credit Agreement:

               (a) Borrower has requested the consent of Agent and Lender to the Merger and the waiver of the
limitations of Sections 7.1 and 7.15 in respect thereof and the occurrence of a Change in Control
which would result in an Event of Default under Section 10.14 of the Credit Agreement. Agent and
Lender hereby consent to the Merger and agree to waive the limitations of Sections 7.1 and 7.15 and
any Event of Default under Section 10.14 with respect to the Merger, provided that the Merger is
completed by July ___, 2007 on substantially the terms described in Exhibit A hereto.

               (b) Borrower has requested the consent of Agent and Lender to the Preferred Dividend and the
waiver of the limitations of Section 7.7 of the Credit Agreement in respect thereof. Agent and
Lender hereby consent to the Preferred Dividend and agree to waive the limitations of Sections 7.7
with respect to the Preferred Dividend.

               (c) Borrower has requested the consent of Agent and Lender to the Subordinated Debt Repayment
and the waiver of the limitations of Sections 7.17 and 7.21 of the Credit Agreement in respect
thereof. Agent and Lender hereby consent to the Subordinated Debt Repayment and agree to waive the
limitations of Sections 7.17 and 7.21 with respect to the Subordinated Debt Repayment.

               (d) The foregoing waivers are given solely with respect to the Transactions on a one time
basis and shall not be deemed to operate as, or obligate Lender or Agent to grant any, future
waiver or modification of the provisions of Sections 7.1, 7.7, 7.15, 7.17, 7.21 or 10.14 or of any
other term, condition or Default or Event of Default under the Credit Agreement.

          3. Amendments to Credit Agreement. The Credit Agreement is hereby amended and
supplemented as follows:

               (a) The following definitions are hereby added to Section 1.2 of the Credit Agreement:

          “Guarantor” shall mean Cross Shore Acquisition Corporation, a Delaware
corporation, and any other Person who may hereafter guarantee payment or performance of the
whole or any part of the Obligations and “Guarantors” means collectively all such
Persons.

2

 

          “Guarantor Security Agreement” shall mean any agreement executed by any
Guarantor in favor of Agent securing the Guaranty of such Guarantor.

          “Guaranty” shall mean any guaranty of the obligations of Borrower executed by a
Guarantor in favor of Agent for its benefit and for the ratable benefit of Lenders.

               (b) The following definitions in Section 1.2 of the Credit Agreement are hereby amended and
restated to read in full as follows:

          “Fixed Charge Coverage Ratio” shall mean and include, with respect to any
fiscal period, the ratio of (a) EBITDA, minus Unfunded Capitalized Expenditures made
during such period minus cash taxes paid during such period, minus cash
dividends and distributions paid during such period (excluding the $2.6 million in dividends
to the holders of Borrower’s preferred stock on or before July ___, 2007) to (b) all Senior
Debt Payments during such period, in each case determined for Borrower and its Subsidiaries
on a consolidated basis

          “Lender-Provided Interest Rate Hedge” shall mean an Interest Rate Hedge which
is provided by any Lender and which the Agent confirms meets the following requirements:
such Interest Rate Hedge (i) is documented in a standard International Swap Dealer
Association Agreement, (ii) provides for the method of calculating the reimbursable amount
of the provider’s credit exposure in a reasonable and customary manner, and (iii) is entered
into for hedging (rather than speculative) purposes. The liabilities of the Borrower to the
provider of any Lender-Provided Interest Rate Hedge (the “Hedge Liabilities”) shall be
“Obligations” hereunder, guaranteed obligations under the Guaranty and secured obligations
under any Guarantor Security Agreement and otherwise treated as Obligations for purposes of
each of the Other Documents. The Liens securing the Hedge Liabilities shall be pari passu
with the Liens securing all other Obligations under this Agreement and the Other Documents.

          “Material Adverse Effect” shall mean a material adverse effect on (a) the
condition (financial or otherwise), results of operations, assets, business, properties or
prospects of Borrower or Borrower and Guarantor taken as a whole, (b) Borrower’s ability to
duly and punctually pay or perform the Obligations in accordance with the terms thereof, (c)
the value of the Collateral or Agent’s Liens on the Collateral or the priority of any such
Lien or (d) the practical realization of the benefits of Agent’s and each Lender’s rights
and remedies under this Agreement and the Other Documents.

          “Original Owners” shall mean Cross Shore Acquisition Corporation.

          “Other Documents” shall mean the Note, the Questionnaire, the Fee Letter, any
Guaranty, any Guarantor Security Agreement, any Lender-Provided Interest Rate Hedge and any
and all other agreements, instruments and documents, including guaranties, pledges, powers
of attorney, consents, interest or currency swap agreements or other similar agreements and
all other writings heretofore, now or hereafter executed

3

 

by Borrower or any Guarantor and/or delivered to Agent or any Lender in respect of the
transactions contemplated by this Agreement.

               (c) The following definitions in Section 1.2 of the Credit Agreement are hereby deleted:

               “Subordinated Debt Payments”

               “Subordinated Lender”

               “Subordinated Loan”

               “Subordinated Loan Documentation”

               “Subordinated Note”

               “Subordination Agreement”

               (d) Section 2.22(b) of the Credit Agreement is hereby amended and restated to read as follows:

     ”(b) Without limiting the generality of Section 2.22(a) above, neither Borrower, any
Guarantor nor any other Person which may in the future become party to this Agreement or the
Other Documents as Borrower or Guarantor, intends to use nor shall they use any portion of
the proceeds of the Advances, directly or indirectly, for any purpose in violation of the
Trading with the Enemy Act.”

               (e) Section 4.15(c) of the Credit Agreement is hereby amended and restated to read as follows:

     ”(c) Location of Borrower. Borrower’s chief executive office is located at
520 Virginia Drive, Fort Washington, Pennsylvania 19034. Until written notice is given to
Agent by Borrower of any other office at which Borrower keeps its records pertaining to
Receivables, all such records shall be kept at such executive office.”

               (f) Section 7.8 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “7.8. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness
(exclusive of trade debt) except in respect of (i) Indebtedness to Lenders; (ii) Indebtedness
incurred for Capital Expenditures permitted under Section 7.6 hereof; and (iii) Indebtedness due to
Borrower pursuant to Section 7.5(c) above.”

               (g) Section 7.15 of the Credit Agreement is hereby amended and restated to read in full as
follows:

          “7.15 Amendment of Documents of Formation, By-Laws, Operating Agreement.
Amend, modify or waive any term or material provision of any of its

4

 

documents of formation, by-laws or operating agreement in a manner that would
materially impact a Lender or Agent unless required by law or with consent of Agent.”

               (h) Sections 7.21 and 7.22 of the Credit Agreement are hereby deleted.

               (i) Section 9.4 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “9.4 Litigation. Promptly notify Agent in writing of any claim, litigation,
suit or administrative proceeding affecting Borrower or any Guarantor whether or not the
claim is covered by insurance, and of any litigation, suit or administrative proceeding,
which in any such case affects the Collateral or which could reasonably be expected to have
a Material Adverse Effect.”

               (j) Section 9.5(h) of the Credit Agreement is hereby amended and restated to read as follows:

     ”(h) any other development in the business or affairs of Borrower or any Guarantor,
which could reasonably be expected to have a Material Adverse Effect; in each case
describing the nature thereof and the action Borrower or such Guarantor proposes to take
with respect thereto.”

               (k) Section 9.14 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “9.14 Notice of Suits, Adverse Events. Furnish Agent with prompt written notice of
(i) any lapse or other termination of any Consent issued to Borrower by any Governmental Body or
any other Person that is material to the operation of Borrower’s business, (ii) any refusal by any
Governmental Body or any other Person to renew or extend any such Consent; and (iii) copies of any
periodic or special reports filed by Borrower or any Guarantor with any Governmental Body or
Person, if such reports indicate any material change in the business, operations, affairs or
condition of Borrower or any Guarantor, or if copies thereof are requested by Lender, and (iv)
copies of any material notices and other communications from any Governmental Body or Person which
specifically relate to Borrower or any Guarantor.”

               (l) Section 10.2 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “10.2. Breach of Representation. Any representation or warranty made or deemed made
by Borrower or any Guarantor in this Agreement, any Other Document or any related agreement or in
any certificate, document or financial or other statement furnished at any time in connection
herewith or therewith shall prove to have been misleading in any material respect on the date when
made or deemed to have been made;”

               (m) Section 10.5 of the Credit Agreement is hereby amended and restated to read in full as
follows:

5

 

     “10.5. Noncompliance. Except as otherwise provided for in Sections 10.1, 10.3 and
10.5(ii), (i) failure or neglect of Borrower or any Guarantor to perform, keep or observe any term,
provision, condition, covenant herein contained, or contained in any Other Document or any other
agreement or arrangement, now or hereafter entered into between Borrower or any Guarantor, and
Agent or any Lender, or (ii) failure or neglect of Borrower to perform, keep or observe any term,
provision, condition or covenant, contained in Sections 4.6, 4.7, 4.9, 6.1, 6.3, 6.4, 9.4 or 9.6
hereof which is not cured within ten (10) days from the occurrence of such failure or neglect;”

               (n) Section 10.8 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “10.8 Inability to Pay. Borrower or any Guarantor shall admit in writing its
inability, or be generally unable, to pay its debts as they become due or cease operations of its
present business;”

               (o) Section 10.9 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “10.9 Affiliate Bankruptcy. Any Affiliate or any Subsidiary of Borrower or any
Guarantor, shall (i) apply for, consent to or suffer the appointment of, or the taking of
possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or
of all or a substantial part of its property, (ii) admit in writing its inability, or be
generally unable, to pay its debts as they become due or cease operations of its present
business, (iii) make a general assignment for the benefit of creditors, (iv) commence a
voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect),
(v) be adjudicated a bankrupt or insolvent, (vi) file a petition seeking to take advantage
of any other law providing for the relief of debtors, (vii) acquiesce to, or fail to have
dismissed, within thirty (30) days, any petition filed against it in any involuntary case
under such bankruptcy laws, or (viii) take any action for the purpose of effecting any of
the foregoing.”

               (p) Section 10.10 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “10.10 Material Adverse Effect. Any change in Borrower’s or any Guarantor’s results
of operations or condition (financial or otherwise) which in Agent’s opinion has a Material Adverse
Effect,”

               (q) Section 10.15 of the Credit Agreement is hereby amended and restated to read in full as
follows:

     “10. 15 Invalidity. Any material provision of this Agreement or any Other Document
shall, for any reason, cease to be valid and binding on Borrower or any Guarantor, or Borrower or
any Guarantor shall so claim in writing to Agent or any Lender;”

6

 

               (r) The word “or” at the end of Section 10.18 is hereby deleted, the “.” at the end of Section
10.19 is hereby replaced with “; or” and the following new Section 10.20 is hereby added to the
Credit Agreement:

     “10.20 Breach of Guaranty. Termination or breach of any Guaranty or Guaranty Security
Agreement or similar agreement executed and delivered to Agent in connection with the Obligations
of Borrower, or if any Guarantor attempts to terminate, challenges the validity of, or its
liability under, any such Guaranty or Guaranty Security Agreement or similar agreement.”

               (s) The first paragraph of Section 14.3 of the Credit Agreement is hereby amended and restated
to read as follows:

     “14.3. Lack of Reliance on Agent and Resignation. Independently and without
reliance upon Agent or any other Lender, each Lender has made and shall continue to make (i)
its own independent investigation of the financial condition and affairs of Borrower and
each Guarantor in connection with the making and the continuance of the Advances hereunder
and the taking or not taking of any action in connection herewith, and (ii) its own
appraisal of the creditworthiness of Borrower and each Guarantor. Agent shall have no duty
or responsibility, either initially or on a continuing basis, to provide any Lender with any
credit or other information with respect thereto, whether coming into its possession before
making of the Advances or at any time or times thereafter except as shall be provided by
Borrower pursuant to the terms hereof. Agent shall not be responsible to any Lender for any
recitals, statements, information, representations or warranties herein or in any agreement,
document, certificate or a statement delivered in connection with or for the execution,
effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this
Agreement or any Other Document, or of the financial condition of Borrower or any Guarantor,
or be required to make any inquiry concerning either the performance or observance of any of
the terms, provisions or conditions of this Agreement, the Note, the Other Documents or the
financial condition of Borrower, or the existence of any Event of Default or any Default.

               (t) The word “or” at the end of Section 15.2(b)(vi) is hereby deleted, the “.” at the end of
Section 15.2(b)(vii) is hereby replaced with “; or” and the following new Section 15.2(b)(viii) is
hereby added to the Credit Agreement:

     ”(viii) release any Guarantor.”

               (u) Section 15.9(d) of the Credit Agreement is hereby amended and restated to read as follows:

     ”(d) in defending or prosecuting any actions or proceedings arising out of or relating
to Agent’s or any Lender’s transactions with Borrower or any Guarantor or”

               (v) Section 15.11 of the Credit Agreement is hereby amended and restated to read in full as
follows:

7

 

     “15.11 Damages. Neither Agent nor any Lender, nor any agent or attorney for
any of them, shall be liable to Borrower or any Guarantor (or any Affiliate of any such
Person) for indirect, punitive, exemplary or consequential damages arising from any breach
of contract, tort or other wrong relating to the establishment, administration or collection
of the Obligations or as a result of any transaction contemplated under this Agreement or
any Other Document.”

               (w) To reflect the effects of the Transactions, the following Schedules to the Credit
Agreement are hereby amended and replaced with the corresponding Schedule attached hereto:

     [Borrower to select which, if any, schedules need amendment]

	 	 	 
	Schedule 1.2

	 	Permitted Encumbrances
	Schedule 4.5

	 	Equipment and Inventory Locations
	Schedule 15(c)

	 	Location of Executive Offices
	Schedule 4.15(h)

	 	Deposit and Investment Accounts
	Schedule 4.19

	 	Real Property
	Schedule 5.1

	 	Consents
	Schedule 5.2(a)

	 	States of Qualification and Good Standing
	Schedule 5.2(b)

	 	Subsidiaries
	Schedule 5.4

	 	Federal Tax Identification Number
	Schedule 5.6

	 	Prior Names
	Schedule 5.8(b)

	 	Litigation
	Schedule 5.8(d)

	 	Plans
	Schedule 5.9

	 	Intellectual Property, Source Code Escrow Agreements
	Schedule 5.10

	 	Licenses and Permits
	Schedule 5.14

	 	Labor Disputes

          4. Representations and Warranties. Borrower hereby represents and warrants to Lender
and Agent that:

               (a) After giving effect to the waivers in Section 2 hereof, there exists no Default or Event
of Default under the Credit Agreement as amended hereby;

               (b) After giving effect to the waivers in Section 2 hereof, the representations and warranties
made by Borrower in the Credit Agreement are true and correct in all material respects on and as of
the date hereof as if made on and as of the date hereof;

               (c) The execution and delivery of this Agreement by and on behalf of Borrower has been duly
authorized by all requisite action on behalf of Borrower, and this Agreement constitutes the legal,
valid and binding obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law);

8

 

               (d) The execution, delivery and performance of this Agreement will not violate any applicable
provision of law or judgment, order or regulation of any court or of any public or governmental
agency or authority nor conflict with or constitute a breach of or a default under any instrument
to which Borrower is a party or by which Borrower or any of its properties is bound; and

               (e) No approval, consent or authorization of, or registration, declaration or filing with, any
governmental or public body or authority, or any trustee or holder of any indebtedness, is required
in connection with the valid execution, delivery and performance by Borrower of this Agreement,
except such as have been obtained.

               (f) Upon consummation of the Transactions ReSearch Pharmaceutical Services, LLC, a Delaware
limited liability company and as the successor by merger to Borrower, shall thereupon be the
“Borrower” for all purposes under the Credit Agreement and all Other Documents and be liable for
all of the Obligations.

          5. Conditions Precedent. The effectiveness of the waivers and amendments set forth
herein is subject to the fulfillment, to the satisfaction of the Agent and its counsel, of the
following conditions precedent:

               (a) Borrower shall have delivered to the Agent the following, all of which shall be in form
and substance satisfactory to the Agent and shall be duly completed and executed by all parties:

                    (i) this Agreement;

                    (ii) copies of the executed merger agreement and all other material documents executed and
delivered in connection with the Transactions;

                    (iii) the Acquirer Guaranty and Acquirer Pledge Agreement, in the respective forms attached
hereto as Exhibits B and C;

                    (iv) a certificate of the Secretary or Assistant Secretary of Borrower certifying (A) the
resolutions of the board of directors of Borrower (1) approving the execution, delivery and
performance of this Agreement and (2) authorizing the Transactions, (B) true and correct copies of
the certificate or articles of formation and operating agreement of Borrower, and (C) the
incumbency and signature of the officers of Borrower executing this Agreement;

                    (v) a certificate of the Secretary or Assistant Secretary of the Acquirer certifying (A) the
resolutions of the board of directors of the Acquirer (i) acknowledging the Credit Agreement and
this Agreement and (ii) authorizing execution, delivery, and performance of the Acquirer Guaranty
(B) true and correct copies of the certificate or articles of incorporation and bylaws of the
Acquirer, and (C) the incumbency and signature of the officers of the Acquirer executing the
Acquirer Guaranty;

9

 

                    (vi) good standing certificates with respect to each of Borrower and the Acquirer issued by
the secretary of state of the respective jurisdiction of formation of each such entity as of a date
no more than thirty (30) days prior to the date hereof;

                    (vii) opinion of Drinker Biddle & Reath LLP, counsel to Borrower, covering such matters
relating to Borrower, this Agreement and the additional documents executed and delivered pursuant
hereto as the Agent may reasonably request;

                    (viii) opinion of McDermott Will & Emery LLP, counsel to the Acquirer, covering such matters
relating to the Acquirer, the Acquirer Guaranty and the Acquirer Pledge Agreement as the Agent may
reasonably request; and

                    (ix) such additional documents, certificates and information as Agent may require pursuant to
the terms hereof or otherwise reasonably request.

               (b) The Transactions shall have been consummated as described in Exhibit A hereto and in
accordance with the agreements delivered by Borrower pursuant to Section 5(a)(ii) of this
Agreement.

               (c) Amendments to the UCC-1 financing statements satisfactory to Agent shall have been filed.

               (d) The representations and warranties set forth in the Credit Agreement shall be true and
correct in all material respects on and as of the date hereof and immediately after consummation of
the Transactions.

          6. Ratification; References; No Waiver. Except as expressly amended by this
Agreement, the Credit Agreement shall continue to be, and shall remain, unaltered and in full force
and effect in accordance with its terms. All references in the Credit Agreement to “this
Agreement,” “hereof,” “hereto” and “hereunder” shall be deemed to be references to the Credit
Agreement as amended hereby, and all references in any of the Other Documents to the Credit
Agreement shall be deemed to be to the Credit Agreement as amended hereby. Except as expressly
provided in Section 2 hereof, this Agreement does not and shall not be deemed to constitute a
waiver by Agent or Lenders of any Default or Event of Default or of any of Agent’s or Lenders’
other rights or remedies.

          7. Release. In consideration of the execution of this Agreement by Agent and Lender,
Borrower hereby releases Agent and Lender and their respective officers, attorneys, agents and
employees from any liability, suit, damage, claim, loss or expense of any kind or nature whatsoever
and howsoever arising that Borrower ever had, now have, or may have against Agent or Lender arising
out of or relating to the Credit Agreement or Agent’s or Lender’s acts or omissions with respect
thereto occurring prior to the date hereof. Borrower further states that it has carefully read the
foregoing release, knows the contents thereof and grants the same as its own free act and deed.

10

 

          8.Miscellaneous.

               (a) Expenses. Borrower agrees to pay all of Agent’s reasonable out-of-pocket expenses
incurred in connection with the preparation, negotiation and execution of this Agreement,
including, without limitation, the reasonable fees and expenses of Ballard Spahr Andrews &
Ingersoll, LLP.

               (b) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania.

               (c) Successors and Assigns. The terms and provisions of this Agreement shall be
binding upon and shall inure to the benefit of Borrower, Agent and Lender and their respective
successors and assigns.

               (d) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, and all of which shall constitute one and the same
instrument.

               (e) Headings. The headings of any paragraph of this Agreement are for convenience
only and shall not be used to interpret any provision hereof.

               (f) Modifications. No modification hereof or any agreement referred to herein shall
be binding or enforceable unless in writing and signed on behalf of the party against whom
enforcement is sought.

11

 

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

	 	 	 	 	 
	 	RESEARCH PHARMACEUTICAL

SERVICES, INC.

 	 
	 	By:  	/s/ Daniel M. Perlman	 
	 	 	Name:  	Daniel M. Perlman	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

    as Lender and as Agent

 	 
	 	By:  	/s/ Craig T. Sheetz	 
	 	 	Name:  	Craig T. Sheetz	 
	 	 	Title:  	Vice President	 
	 

12exv10w4

 

Exhibit 10.4

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of April 26, 2007, by and between
Cross Shore Acquisition Corporation t/b/k/a ReSearch Pharmaceutical Services, Inc., a Delaware
corporation (together with its Affiliates, successors and assigns, the “Company”), and Daniel M.
Perlman (“Employee”). Any capitalized terms used herein and otherwise not defined shall have the
meanings assigned to them in Section 15 of this Agreement.

          In consideration of the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:

          1. Employment. The Company shall employ Employee, and Employee hereby accepts
employment with the Company, upon the terms and conditions set forth in this Agreement for the
period beginning on the Effective Date (as defined in Section 24 of this Agreement) and ending as
provided in Section 4 of this Agreement (the “Term”).

          2. Position and Duties.

          (a) Employee shall serve as the Chairman and Chief Executive Officer of the Company and each
of its Subsidiaries and shall have the normal duties, responsibilities and authority of the
Chairman and Chief Executive Officer, subject to the overall discretion and authority of the Board.

          (b) Employee shall report to Board, and Employee shall devote his best efforts and his full
business time and attention (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the business and affairs of the Company and its Subsidiaries and
Affiliates. Employee shall perform his duties and responsibilities to the best of his abilities in
a diligent and businesslike manner.

          (c) Notwithstanding the provisions of Section 2(b) above, Employee may continue to manage his
and his family’s respective investments and serve on the board of directors or similar body of
other organizations, including publicly owned corporations or other entities, philanthropic
organizations and organizations in which Employee has made an investment, provided that (i)
Employee’s activities with respect to all of the foregoing do not, individually or in the
aggregate, in any significant way, interfere with, detract from, or affect the performance of his
duties to the Company under this Agreement, (ii) Employee notifies the Board prior to assuming a
position on the board of directors or similar body of another organization, and (iii) Employee may
not serve on the board of directors or similar body of another organization that is a competitor of
the Company.

          3. Compensation.

          (a) During the Term, Employee shall be entitled to (i) receive a base salary of $400,000 per
annum or such other higher rate as the Board may designate from time to time (the “Base Salary”),
which shall be payable in regular installments in accordance with the Company’s general payroll
practices and shall be subject to customary withholding and (ii) participate in all benefit plans,
including medical, dental, retirement, short- and long-term

 

 

disability and other such plans established by the Company from time to time for executives or
employees of the Company generally. In addition, Employee shall be eligible to receive an annual
target bonus equal to sixty percent (60%) of Base Salary with the actual amount of any bonus based
on achieving the Company’s business and financial objectives as determined by the Board or the
compensation committee thereof (if any) for the Company’s fiscal year. If the Company’s fiscal
year is the calendar year, such bonus shall be paid in the calendar year following the fiscal year
to which the bonus relates, and all such payments shall be completed by March 15 of the payment
year. If the Company’s fiscal year is other than a calendar year, all such payments shall be
completed by December 31 of the calendar year in which the Company’s fiscal year ends.

          (b) On the Effective Date, Employee shall be granted that number of Parent Options set forth
on Exhibit A. Exhibit A also sets forth the exercise price of Employee’s Parent
Options and the number of vested and unvested Parent Options which will be held by Employee as of
the Effective Date. Employee’s unvested Parent Options will vest as provided for on Exhibit
A, and in accordance with Section 5(b) if this Agreement, and will be treated to the maximum
extent possible as incentive stock options under Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”). Following the Effective Date, Employee will be eligible to receive grants
of Parent Options under the Parent Stock Option Plan as determined from time to time by the Board
or the committee appointed by the Board to administer the Parent Stock Option Plan. The Parent
Options issued by the Company to Employee shall contain terms and conditions consistent with any
requirements for such Parent Options that are set forth in this Agreement.

          (c) The Company shall reimburse Employee for all reasonable expenses incurred by him in the
course of performing his duties under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and other business
expenses, subject to the Company’s requirements with respect to reporting and documentation of such
expenses. Such reimbursements shall be made in accordance with the Company’s general payroll
practices.

          (d) Employee shall be entitled during his employment hereunder to participate in such of the
Company’s cash incentive plans and programs as may from time to time be provided by Company for its
executive officers, in each case as determined by the Board or the compensation committee thereof
(if any).

          (e) Employee shall be entitled, during his employment hereunder, to participate in such of
Company’s equity incentive plans and programs as may from time to time be provided by Company for
its executive officers at such level as shall be determined by the Board or the compensation
committee thereof (if any).

          (f) Employee shall be entitled to direct the Company to pay a portion of his Base Salary for
automobile payments and expenses, including, but not limited to, insurance and maintenance. The
Company shall pay the amount of such automobile payments and expenses directly to the provider as
directed by Employee.

          (g) The Company shall obtain and maintain a life insurance policy(s) (that is a

-2-

 

death benefit plan for purposes of Treas. Reg. Section 1.409A-1(a)(5)) covering the life of
Employee with death benefits in an aggregate amount of not less than $4,000,000, with the
beneficiaries of such policy(ies) to be selected by Employee.

          (h) During the Term, Employee shall be entitled to paid vacation of 25 days during each
calendar year or such additional number of days as is provided in the employee handbook published
from time to time by the Company (the “Company Employee Handbook”). Employee’s right to carry
forward unused vacation days for a calendar year to any future calendar year shall be governed by
the Company’s Employee Handbook as in effect from time to time.

          (i) The Company shall maintain disability insurance (that provides disability pay for purposes
of Treas. Reg. Section 1.409A-1(a)(5)) covering Employee which shall pay Employee at least sixty
percent (60%) of his Base Salary.

          4. Term.

          (a) The term shall end three (3) years from the Effective Date (the “Initial Term”), except
that at the end of the Initial Term, the term shall be automatically renewed for successive one (1)
year periods (each a “Renewal Term” and together with the Initial Term, the “Term”), after the
Initial Term unless terminated in writing by either the Company or Employee at least one (1) year
prior to the end of the Initial Term or any Renewal Term; provided that (i) the Term and
Employee’s employment shall terminate prior to such date upon Employee’s death or permanent
Disability and (ii) Employee’s employment may be terminated by the Company or Employee at any time
prior to such date subject to the terms and conditions of this Agreement.

          (b) If Employee’s employment is terminated by the Company without Cause or Employee voluntary
resigns for Good Reason during the Term of this Agreement, Employee shall be entitled to receive
from the Company (in one lump sum payment within ten (10) days of such termination or resignation),
at Employee’s option, either: (A) (i) an amount equal to 2.99 times his then-applicable Base
Salary, plus (ii) the pro rata portion (based on the number of full months of service by Employee
in the year in which Employee’s employment is terminated) of any bonus to which Employee is
entitled for the year in which Employee’s employment is terminated plus (iii) if Employee elects
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended, payment as
and when due of Employee’s premiums for a period of eighteen (18) months following such termination
or resignation; provided that, if Employee elects the severance payments and benefits
provided for in Section 4(b)(A)(i)-(iii) of this Agreement, Employee agrees to be bound by the
terms of Section 10 (Non-compete) and Section 11 (Non-solicitation) of this Agreement for a period
of eighteen (18) months from the date of such termination or resignation, or (B) (i) an amount
equal to one (1) times his then-applicable Base Salary, plus (ii) the pro rata portion (based on
the number of full months of service by Employee in the year in which Employee’s employment is
terminated) of any bonus to which Employee is entitled for the year in which Employee’s employment
is terminated plus (iii) if Employee elects coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1986, as amended, payment as and when due of Employee’s premiums for a period
of eighteen (18) months following such termination or resignation; provided that, if
Employee elects the severance payments and benefits provided for in Section 4(b)(B)(i)-(iii) of
this Agreement,

-3-

 

Employee shall not be bound by Section 10 (Non-compete) and Section 11 (Non-solicitation) of
this Agreement. As a condition to the Company’s obligations to make and provide the severance
payments and benefits pursuant to this Section 4(b), Employee shall execute and deliver a general
release in form and substance reasonably satisfactory to the Company.

          (c) If Employee’s employment is terminated by the Company due to Employee suffering a
permanent Disability during the Term of this Agreement, Employee shall be entitled to receive from
the Company (i) in one lump sum payment within ten (10) days of such termination (A) an amount
equal to two (2) times his then-applicable Base Salary, plus (B) the pro rata portion (based on the
number of full months of service by Employee in the year in which Employee’s employment is
terminated) of any bonus to which Employee is entitled for the year in which Employee’s employment
is terminated, and (ii) if Employee elects coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1986, as amended, payment as and when due of Employee’s premiums for a period
of eighteen (18) months following termination. As a condition to the Company’s obligations to make
and provide the severance payments and benefits pursuant to this Section 4(c), Employee (or
Employee’s representative) shall execute and deliver a general release in form and substance
reasonably satisfactory to the Company.

          (d) If Employee’s employment is terminated by the Company for Cause during the Term of this
Agreement, Employee shall, at Employee’s election: (A) be entitled to receive from the Company in
one lump sum payment within ten (10) days of such termination (1) an amount equal to one (1) times
his then-applicable Base Salary, plus (2) the pro rata portion (based on the number of full months
of service by Employee in the year in which Employee’s employment is terminated) of any bonus to
which Employee is entitled for the year in which Employee’s employment is terminated, and (3) if
Employee elects coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as
amended, payment as and when due of Employee’s premiums for a period of twelve (12) months
following termination; provided that, Employee agrees to be bound by the terms of Section
10 (Non-compete) and Section 11 (Non-solicitation) of this Agreement for a period of one (1) year
from the date of such termination, or (B) not be entitled to receive any severance payments and
benefits from the Company; provided that, if Employee elects not to receive any severance
payments and benefits from the Company, Employee shall not be bound by Section 10 (Non-compete) and
Section 11 (Non-solicitation) of this Agreement. As a condition to the Company’s obligations to
make and provide the severance payments and benefits pursuant to this Section 4(d), if applicable,
Employee shall execute and deliver a general release in form and substance reasonably satisfactory
to the Company.

          (e) If Employee voluntarily resigns his employment without Good Reason during the Term of this
Agreement, and a Change of Control has not occurred prior to such resignation, the Company shall,
within five (5) days of Employee’s resignation, pay to Employee any and all compensation accrued by
Employee through the date of such resignation and Employee shall be bound by the terms of Section
10 (Non-compete) and Section 11 (Non-solicitation) of this Agreement for a period of one (1) year
from the date of such resignation.

          (f) If Employee dies during the Term of this Agreement, Employee’s estate shall not be
entitled to receive any compensation or benefits from the Company, except (i) as provided for in
Section 3(g) of this Agreement and (ii) the Company shall, within five (5) days of

-4-

 

Employee’s death, pay to Employee’s estate any and all compensation (and reimbursements)
accrued for the benefit of Employee through the date of his death.

          (g) If Employee’s employment is terminated by, or if Employee resigns his employment with, the
Company or any entity that is in the same controlled group as the Company for purposes of Sections
414(b) or 414(c) of the Code, Employee’s employment shall also automatically be terminated by, or
Employee shall also automatically resign his employment with, the Company and all entities that are
in the same controlled group as the Company for purposes of Sections 414(b) or 414(c) of the Code.

          (h) Notwithstanding the preceding subsections, if the Employee is a “specified employee,” as
defined in Treas. Reg. Section 1.409A-1(i), on the date his employment is terminated, (i) any lump
sum payments due under this Section 4 will be made on the first day of the seventh month following
the month of such termination or resignation, and (ii) any periodic payments due for the period
after termination or resignation and before payment begins will be made on the first day of the
seventh month following the month of such termination or resignation, and the remainder will be
payable at such times as such amounts would have been payable had the Employee not terminated his
employment.

          5. Change of Control.

          (a) If, during the Term, there should be a Change of Control (as defined herein), and within
six (6) months before such Change of Control or twelve (12) months thereafter either (1) Employee’s
employment shall be terminated by the Company for any reason other than for death, Disability or
Cause or (2) Employee resigns for any reason, at Employee’s option:

            (i) the Company shall, within five (5) days of such termination or resignation, pay to
Employee all amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.), that
have been fully earned by, but not yet paid to, Employee under this Agreement as of such
termination or resignation plus a lump sum cash payment equal to 2.99 times (x) Employee’s then
current annual Base Salary plus (y) Employee’s bonus for the prior annual period; provided
that, if Employee elects to receive from the Company the payment set forth in this Section
5(a)(i) and the benefits set forth in Section 5(a)(iii) below, Employee agrees to be bound by the
terms of Section 10 (Non-compete) and Section 11 (Non-solicitation) of this Agreement for a period
of eighteen (18) months from the date of such termination or resignation; or

            (ii) the Company shall, within five (5) days of such termination or resignation, pay to
Employee all amounts (including salary, bonuses, vacation pay, expense reimbursement, etc.), that
have been fully earned by, but not yet paid to, Employee under this Agreement as of such
termination or resignation plus a lump sum cash payment equal to 1 times (x) Employee’s then
current annual Base Salary plus (y) Employee’s bonus for the prior annual period; provided
that, if Employee elects to receive from the Company the payment set forth in this Section
5(a)(ii) and the benefits set forth in Section 5(a)(iv) below, Employee shall not be bound by
Section 10 (Non-compete) and Section 11 (Non-solicitation) of this Agreement.

-5-

 

            (iii) In the event Employee makes the election provided for in Section 5(a)(i) of this
Agreement, Employee shall be entitled to continue, for three (3) years, from the later of the
Change of Control or Employee’s termination or resignation, to receive medical benefits coverage
for Employee and Employee’s spouse and dependents (if any), to the extent Employee was so entitled
prior to such termination or resignation, at the Company’s expense if and to the extent the Company
was paying for such benefits to Employee and Employee’s spouse and dependents at the time of such
termination or resignation, except that, if the Company’s medical benefits plans do not permit the
foregoing for the full three (3) years, in lieu thereof, the Company shall pay to Employee within
ten (10) days after the date of the termination or resignation, in one lump sum, an amount equal to
the aggregate amount that that the Company would have paid for such coverage over the three (3)
year period had such coverage been permitted. Employee and his spouse and dependents shall be
entitled to such rights as he or they may have to continue coverage at his sole expense as are then
accorded under COBRA for the COBRA coverage period following the expiration of the period during
which Employee and his spouse and dependents (if any) continue to receive such medical benefits
coverage.

            (iv) In the event Employee makes the election provided for in Section 5(a)(ii) of this
Agreement, Employee shall be entitled to continue, for one (1) year, from the later of the Change
of Control or Employee’s termination or resignation, to receive medical benefits coverage for
Employee and Employee’s spouse and dependents (if any), to the extent Employee was so entitled
prior to such termination or resignation, at the Company’s expense if and to the extent the Company
was paying for such benefits to Employee and Employee’s spouse and dependents at the time of such
termination or resignation, except that, if the Company’s medical benefits plans do not permit the
foregoing for the full one (1) period, in lieu thereof, the Company shall pay to Employee within
ten (10) days after the date of the termination or resignation, in one lump sum, an amount equal to
the aggregate amount that that the Company would have paid for such coverage for the one (1) year
period had such coverage been permitted. Employee and his spouse and dependents shall be entitled
to such rights as he or they may have to continue coverage at his sole expense as are then accorded
under COBRA for the COBRA coverage period following the expiration of the period during which
Employee and his spouse and dependents (if any) continue to receive such medical benefits coverage.

          (b) Anything to the contrary in any other agreement or document now or hereafter existing
notwithstanding, upon a Change of Control and without regard to whether Employee’s employment is
thereafter terminated, Employee shall become fully vested as of the time immediately before such
Change of Control in all then existing stock grants, each stock option previously issued to him
thereupon shall become immediately vested and exercisable, without regard to continued employment
or performance-based vesting standards, and each NQSO shall remain exercisable until the earlier of
(i) the later of 180 days after the Change of Control or the period following a Change of Control
that is set forth in the relevant stock option agreement or (ii) the scheduled expiration date of
such option. The exercise period of any ISO granted to Employee before, on or after the date
hereof shall be governed by the terms of the relevant ISO Agreement.

-6-

 

          (c) If Employee’s employment is terminated by, or if Employee resigns his employment with, the
Company or any entity that is in the same controlled group as the Company for purposes of Sections
414(b) or 414(c) of the Code, Employee’s employment shall also automatically be terminated by, or
Employee shall also automatically resign his employment with, the Company and all entities that are
in the same controlled group as the Company for purposes of Sections 414(b) or 414(c) of the Code.

          (d) Notwithstanding the preceding subsections, if the Employee is a “specified employee,” as
defined in Treas. Reg. Section 1.409A-1(i), on the date his employment is terminated, (i) any lump
sum payments due under this Section 5 will be made on the first day of the seventh month following
the month of such termination or resignation, and (ii) any periodic payments due for the period
after termination or resignation and before payment begins will be made on the first day of the
seventh month following the month of such termination or resignation, and the remainder will be
payable at such times as such amounts would have been payable had the Employee not terminated his
employment.

          (e) In the event Employee receives the payments provided for in this Section 5, Employee shall
not be entitled to receive the payments provided for in Section 4 of this Agreement upon Employee’s
termination or resignation.

          (f) A “Change of Control” of the Company shall mean:

            (1) the acquisition by an individual, entity, or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
thirty five percent (35%) or more of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Shares”); provided, however, that the following acquisitions shall not constitute a Change of
Control: (i) any acquisition directly from the Company unless, in connection therewith, a majority
of the individuals who constitute the Board as of the date immediately preceding such transaction
cease to constitute at least a majority of the Board after such transaction, (ii) any acquisition
by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by Company or any entity controlled by the Company, (iv) any acquisition by any
individual, entity, or group in connection with a Business Combination (as defined below) that
fails to qualify as a Change of Control pursuant to paragraphs (3) or (4) below, or (v) any
acquisition by any Person entitled to file Form 13G under the Exchange Act with respect to such
acquisition; or

            (2) individuals who, on the date following the Effective Date, constitute the Board cease for
any reason to constitute at least a majority of the Board; provided, however, that any individual
becoming a member of the Board subsequent to the date hereof whose appointment, election, or
nomination for election by the Company’s shareholders was approved by a vote of at least a majority
of the Board then comprising the Board or by a majority of the members of a committee authorized by
the Board to approve such appointment, election, or nomination (other than an appointment,
election, or nomination of an individual whose initial assumption of office is in connection with
an actual or threatened election contest relating to the

-7-

 

election of directors of the Company) shall be, for purposes of this Agreement, considered as
though such person were a member of the Board; or

            (3) completion by the Company of a reorganization, merger, or consolidation, or sale or other
disposition of all or substantially all of the assets of the Company (a “Business Combination”), in
each case, if, following such Business Combination all or substantially all of the individuals and
entities who were the beneficial owners of the Outstanding Shares immediately prior to such
Business Combination beneficially own, directly or indirectly, less than forty percent (40%) of,
respectively, the then outstanding shares of equity securities and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the
case may be, of the entity resulting from such Business Combination (including, without limitation,
an entity which, as a result of such transaction, owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries); or

            (4) completion by the Company of a Business Combination, if, following such Business
Combination all or substantially all of the Persons who were the beneficial owners of the
Outstanding Shares immediately prior to such Business Combination beneficially own, directly or
indirectly, forty percent (40%) or more but less than sixty percent (60%) of, respectively, the
then outstanding shares of equity securities and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of
the entity resulting from such Business Combination (including, without limitation, an entity
which, as a result of such transaction, owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries), and (i) any Person
(excluding any employee benefit plan (or related trust) of the Company or such entity resulting
from such Business Combination) beneficially owns, directly or indirectly, thirty percent (30%) or
more of, respectively, the then outstanding shares of equity securities of the entity resulting
from such Business Combination or the combined voting power of the then outstanding voting
securities of such entity except to the extent that such ownership existed prior to the Business
Combination, or (ii) at least a majority of the members of the board of directors of the entity
resulting from such Business Combination were not members of the Board at the time of the execution
of the initial agreement or of the action of the Board providing for such Business Combination, or
(iii) Employee is not appointed or elected to a comparable or higher position with the entity
resulting from such Business Combination, or (iv) the executive officers of Company holding the
title of Vice President or higher at the time of the execution of the initial agreement for such
Business Combination constitute less than a majority of the executive officers holding comparable
or higher titles of the entity resulting from such Business Combination; or

            (5) a complete liquidation or dissolution of the Company.

The completion by the Company of a Business Combination following which all or substantially all of
the individuals and entities who were the beneficial owners of the Outstanding Shares immediately
prior to such Business Combination beneficially own, directly or indirectly, sixty percent (60%) or
more of, respectively, the then outstanding shares of equity securities and the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the entity resulting from such Business Combination

-8-

 

(including, without limitation, an entity which, as a result of such transaction, owns the Company
or all or substantially all of the Company’s assets either directly or through one or more
subsidiaries) shall not constitute a “Change of Control” unless following such transaction the
provisions of paragraphs (1) or (2) are independently satisfied.

          6. Possible Reduction in Payments. Following any Change of Control, if all or any
portion of the payments and other benefits provided to Employee under this Agreement, either alone
or together with other payments and benefits which Employee receives or is entitled to receive from
the Company, constitute an “excess parachute payment” within the meaning of Section 280G of the
Code and thus would result in the imposition of excise taxes on Employee under Section 4999 of the
Code, then the Employee may, in his sole discretion, direct the Company to reduce such payments and
benefits to the extent necessary to avoid the imposition of any such excise taxes. If the Employee
elects to direct the Company to reduce such payments and benefits, the Employee shall also
determine and direct the Company as to which and how much of the payments and benefits shall be
eliminated or reduced to avoid any excess parachute payment. All determinations required to be
made under this Section 6 and the assumptions to be utilized in arriving at such determinations
shall be made by an accounting firm engaged by Employee which shall provide detailed supporting
calculations both to the Company and Employee within fifteen (15) business days of the receipt of
notice from Employee or the Company that there is the possibility of an excess parachute payment.
All fees and expenses of such accounting firm shall be borne solely by the Company. Any
determination by the accounting firm shall be binding upon the Company and Employee.

          7. Indemnification/Litigation Assistance. The Company shall indemnify and defend
Employee against all claims arising out of Employee’s activities as an officer, director or
employee of the Company or its Subsidiaries or Affiliates, or any of their respective predecessors,
to the fullest extent permitted by law and under Company’s Certificate of Incorporation and
By-laws. In addition to the foregoing, Employee shall, upon reasonable notice, furnish such
information and proper assistance to the Company as may reasonably be required by the Company in
connection with any litigation in which it or its Subsidiaries or Affiliates are, or may become,
parties. After termination or resignation of Employee’s employment, Employee shall be fairly
compensated for providing assistance to the Company that is more than incidental; provided,
however, that the failure of the Company and Employee to agree on such compensation shall not be
the basis on which Employee withholds any information or assistance

          8. Confidential Information. Employee acknowledges that the information obtained by
him while employed by the Company and its Subsidiaries and Affiliates concerning the business or
affairs of the Company or any Subsidiary or Affiliate (“Confidential Information”) are the property
of the Company or such Subsidiary. Therefore, Employee agrees that he shall not disclose to any
unauthorized person or use for his own purposes any Confidential Information without the prior
written consent of the Board, unless and to the extent that the aforementioned matters become
generally known to and available for use by the public other than as a result of Employee’s acts or
omissions, or Employee disclosed Confidential Information in response to an order of any court,
governmental agency or adjudicative body; provided that Employee shall have promptly notified the
Company prior to any such disclosure and provided reasonable cooperation in the Company’s efforts,
if any, to contest or limit the

-9-

 

scope of such disclosure, and provided further that if such disclosure is the subject of any
protective or similar order, such information will still be considered Confidential Information
except for the limited purpose of disclosure to such court, governmental agency or adjudicative
body. Employee shall deliver to the Company at the termination or resignation of his employment,
or at any other time the Company may request, all memoranda, notes, plans, records, reports,
computer tapes, printouts and software and other documents and data (and copies thereof) relating
to the Confidential Information, Work Product (as defined below) or the business of the Company or
any Subsidiary which he may then possess or have under his control.

          9. Inventions and Patents. Employee acknowledges that all inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports and all similar or
related information (whether or not patentable) which relate to the Company’s or any of its
Subsidiaries’ or Affiliates’ actual or anticipated business, research and development or existing
or future products or services and which are conceived, developed or made by Employee while
employed by the Company and its Subsidiaries and Affiliates (“Work Product”) belong to the Company
or such Subsidiary or Affiliate. Employee shall promptly disclose such Work Product to the Board
and perform all actions reasonably requested by the Board (whether during or after Employee’s
employment with the Company) to establish and confirm such ownership (including, without
limitation, assignments, consents, powers of attorney and other instruments).

          10. Non-Compete. In further consideration of the compensation to be paid to Employee
hereunder, Employee acknowledges that in the course of his employment with the Company he shall
become familiar, and during his employment with the Company he has become familiar, with the
Company’s and its Subsidiaries’ and Affiliates’ trade secrets and with other Confidential
Information concerning the Company and its Subsidiaries and Affiliates and that his services have
been and shall be of special, unique and extraordinary value to the Company and its Subsidiaries.
Therefore, Employee agrees that:

          (i) if he is terminated for Cause and he elects and receives the severance
payments and benefits provided for in Section 4(d)(A) of this Agreement, he shall
not for a period of one (1) year, directly or indirectly own any interest in,
manage, control, participate in, consult with, render services for, or in any manner
engage in any business which is involved (or has definite plans to get involved) in
business activities that engage in the business of contract research organization,
recruiting, staffing and placement of personnel in the areas of clinical research,
medical writing, biostatistics and programming. Nothing herein shall prohibit
Employee from being a passive owner of not more than 3% of the outstanding stock of
any class of a corporation which is publicly traded, so long as Employee has no
active participation in the business of such corporation, or

          (ii) if he is terminated without Cause and he elects and receives the severance
payments and benefits provided for in Section 4(b)(A) of this Agreement, or he
terminates this Agreement for Good Reason and he elects and receives the severance
payments and benefits provided for in Section 4(b)(A) of this Agreement, he shall
not for a period of eighteen (18) months, directly or indirectly own any interest
in, manage, control, participate in, consult with, render services for, or in any
manner engage in any business which is involved (or has

-10-

 

definite plans to get involved) in business activities that engage in the business
of contract research organization, recruiting, staffing and placement of personnel
in the areas of clinical research, medical writing, biostatistics and programming.
Nothing herein shall prohibit Employee from being a passive owner of not more than
3% of the outstanding stock of any class of a corporation which is publicly traded,
so long as Employee has no active participation in the business of such corporation,
or

          (iii) if Employee voluntarily resigns during the Term, without Good Reason,
and there has not been a Change of Control at the time of Employee’s resignation, he
shall not for a period of one (1) year, directly or indirectly own any interest in,
manage, control, participate in, consult with, render services for, or in any manner
engage in any business which is involved (or has definite plans to get involved) in
business activities that engage in the business of contract research organization,
recruiting, staffing and placement of personnel in the areas of clinical research,
medical writing, biostatistics and programming. Nothing herein shall prohibit
Employee from being a passive owner of not more than 3% of the outstanding stock of
any class of a corporation which is publicly traded, so long as Employee has no
active participation in the business of such corporation; or

          (iv) if there is a Change of Control and Employee resigns for any reason or is
terminated other than for Cause or as a result of Employee’s death or Disability and
he elects and receives the payments and benefits set forth in Sections 5(a)(i) and
5(a)(iii) of this Agreement, he shall not for a period of eighteen (18) months,
directly or indirectly own any interest in, manage, control, participate in, consult
with, render services for, or in any manner engage in any business which is involved
(or has definite plans to get involved) in business activities that engage in the
business of contract research organization, recruiting, staffing and placement of
personnel in the areas of clinical research, medical writing, biostatistics and
programming. Nothing herein shall prohibit Employee from being a passive owner of
not more than 3% of the outstanding stock of any class of a corporation which is
publicly traded, so long as Employee has no active participation in the business of
such corporation.

     11. Non-Solicitation. Employee agrees that:

     (i) if he is terminated for Cause and he elects and receives the severance
payments and benefits provided for in Section 4(d)(A) of this Agreement, he shall
not for a period of one (1) year, he shall not for a period of one (1) year,
directly or indirectly through another entity (A) induce or attempt to induce any
employee of the Company or any Subsidiary or Affiliate to leave the employ of the
Company or such Subsidiary or Affiliate, or in any way interfere with the
relationship between the Company or any Subsidiary or Affiliate and any employee
thereof, (B) hire any person, who was an employee of the Company or any Subsidiary
or Affiliate at any time during the one (1) year immediately preceding Employee’s
termination or resignation, (C) induce or attempt to induce

-11-

 

any customer, supplier, licensee, licensor, franchisee or other business relation of
the Company or any Subsidiary or Affiliate to cease doing business with the Company
or such Subsidiary or Affiliate, or in any way interfere with the relationship
between any such customer, supplier, licensee, licensor, franchisee or other
business relation and the Company or any Subsidiary or Affiliate (including, without
limitation, making any negative statements or communications about the Company or
its Subsidiaries or Affiliates) or (D) service (except in the capacity of an
employee) any customer, licensee, agent or franchisee of the Company or any
Subsidiary or Affiliate who was a customer, licensee, agent or franchisee of the
Company or any Subsidiary or Affiliate at any time during the one (1) year
immediately preceding Employee’s termination or resignation, or

     (ii) if he is terminated without Cause and he elects and receives the severance
payments and benefits provided for in Section 4(b)(A) of this Agreement, or he
terminates this Agreement for Good Reason and he elects and receives the severance
payments and benefits provided for in Section 4(b)(A) of this Agreement, he shall
not for a period of eighteen (18) months, directly or indirectly through another
entity (A) induce or attempt to induce any employee of the Company or any Subsidiary
or Affiliate to leave the employ of the Company or such Subsidiary or Affiliate, or
in any way interfere with the relationship between the Company or any Subsidiary or
Affiliate and any employee thereof, (B) hire any person, who was an employee of the
Company or any Subsidiary or Affiliate at any time during the one (1) year
immediately preceding Employee’s termination or resignation, (C) induce or attempt
to induce any customer, supplier, licensee, licensor, franchisee or other business
relation of the Company or any Subsidiary or Affiliate to cease doing business with
the Company or such Subsidiary or Affiliate, or in any way interfere with the
relationship between any such customer, supplier, licensee, licensor, franchisee or
other business relation and the Company or any Subsidiary or Affiliate (including,
without limitation, making any negative statements or communications about the
Company or its Subsidiaries or Affiliates) or (D) service (except in the capacity of
an employee) any customer, licensee, agent or franchisee of the Company or any
Subsidiary or Affiliate who was a customer, licensee, agent or franchisee of the
Company or any Subsidiary or Affiliate at any time during the one (1) year
immediately preceding Employee’s termination or resignation; or

     (iii) if Employee voluntarily resigns during the Term, without Good Reason, and
there has not been a Change of Control at the time of Employee’s resignation, he
shall not for a period of one (1) year, directly or indirectly through another
entity (A) induce or attempt to induce any employee of the Company or any Subsidiary
or Affiliate to leave the employ of the Company or such Subsidiary or Affiliate, or
in any way interfere with the relationship between the Company or any Subsidiary or
Affiliate and any employee thereof, (B) hire any person, who was an employee of the
Company or any Subsidiary or Affiliate at any time during the one (1) year
immediately preceding Employee’s termination or resignation, (C) induce or attempt
to induce any customer, supplier, licensee, licensor, franchisee or other business
relation of the Company or any Subsidiary

-12-

 

or Affiliate to cease doing business with the Company or such Subsidiary or
Affiliate, or in any way interfere with the relationship between any such customer,
supplier, licensee, licensor, franchisee or other business relation and the Company
or any Subsidiary or Affiliate (including, without limitation, making any negative
statements or communications about the Company or its Subsidiaries or Affiliates) or
(D) service (except in the capacity of an employee) any customer, licensee, agent or
franchisee of the Company or any Subsidiary or Affiliate who was a customer,
licensee, agent or franchisee of the Company or any Subsidiary or Affiliate at any
time during the one (1) year immediately preceding Employee’s termination or
resignation; or

     (iv) if there is a Change of Control and Employee resigns for any reason or is
terminated other than for Cause or as a result of Employee’s death or Disability and
he elects and receives the payments and benefits set forth in Sections 5(a)(i) and
5(a)(iii) of this Agreement, he shall not for a period of eighteen (18) months,
directly or indirectly through another entity (A) induce or attempt to induce any
employee of the Company or any Subsidiary or Affiliate to leave the employ of the
Company or such Subsidiary or Affiliate, or in any way interfere with the
relationship between the Company or any Subsidiary or Affiliate and any employee
thereof, (B) hire any person, who was an employee of the Company or any Subsidiary
or Affiliate at any time during the one (1) year immediately preceding Employee’s
termination or resignation, (C) induce or attempt to induce any customer, supplier,
licensee, licensor, franchisee or other business relation of the Company or any
Subsidiary or Affiliate to cease doing business with the Company or such Subsidiary
or Affiliate, or in any way interfere with the relationship between any such
customer, supplier, licensee, licensor, franchisee or other business relation and
the Company or any Subsidiary or Affiliate (including, without limitation, making
any negative statements or communications about the Company or its Subsidiaries or
Affiliates) or (D) service (except in the capacity of an employee) any customer,
licensee, agent or franchisee of the Company or any Subsidiary or Affiliate who was
a customer, licensee, agent or franchisee of the Company or any Subsidiary or
Affiliate at any time during the one (1) year immediately preceding Employee’s
termination or resignation.

          12. Enforcement. If, at the time of enforcement of Sections 8, 9, 10 or 11 of this
Agreement, a court holds that the restrictions stated herein are unreasonable under circumstances
then existing, the parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period, scope or area. The
parties hereto agree that money damages would not be an adequate remedy for any breach of this
Agreement because the services provided by Employee pursuant to this Agreement are unique and
because Employee has access to Confidential Information and Work Product. As such, in the event a
breach or threatened breach of this Agreement the Company or its successors or assigns may, in
addition to other rights and remedies existing in their favor, apply to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or
prevent any violations of, the provisions hereof (without posting a bond or other security). In
addition, in the event of an actual breach or violation by Employee of

-13-

 

Sections 10 or 11, the Non-Compete Period and the Non-Solicitation Period shall be tolled until
such breach or violation has been duly cured. Employee hereby acknowledges and agrees that the
restrictions contained in Sections 10 and 11 are reasonable.

          13. Employee’s Representations. Employee hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement by Employee do not and
shall not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which Employee is a party or by which he is bound, (ii)
Employee is not a party to or bound by any employment agreement, non-compete agreement or
confidentiality agreement with any other person or entity except the Prior Agreement, and (iii) as
of the Effective Date, this Agreement shall be the valid and binding obligation of Employee,
enforceable in accordance with its terms.

          14. Company’s Representations. The Company hereby represents and warrants to Employee
that (i) the execution, delivery and performance of this Agreement by the Company does not and
shall not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which the Company or any of its Subsidiaries or Affiliates
is a party or by which it/they is/are bound, (ii) it has all requisite corporate power and
authority to enter into, execute and deliver this Agreement, and (iii) as of the Effective Date,
this Agreement shall be the valid and binding obligation of the Company, enforceable in accordance
with its terms. The Company further represents that it shall take all actions necessary to comply
with the AIM Rules for companies issued by the Alternative Investment Market of the London Stock
Exchange in connection with its obligations under this Agreement.

          15. Definitions.

          “Affiliates” shall mean any person or entity controlling, controlled by, or under common
control with, the Company. “Control,” as used in the definition of Affiliate, means the power to
direct the management and policies of a person or entity, directly or indirectly, whether through
the ownership of voting securities, by contract, or otherwise; the terms “controlling” and
“controlled” shall have correlative meanings. Further, any person or entity that owns
beneficially, either directly or through one or more intermediaries, more than ten percent (10%) of
the ownership interests in a specified entity shall be presumed to control such entity for purposes
of the definition of Affiliate

          “Board” shall mean the board of directors of the Company.

          “Cause” shall mean Employee’s (i) conviction of a felony, (ii) indictment for a felony
involving dishonesty or fraud or the commission of any act or omission involving dishonesty or
fraud, or (iii) gross negligence or willful misconduct with respect to the Company or any of its
Subsidiaries or Affiliates.

          “Company Options” shall mean options to purchase shares of the Company’s common stock, no par
value, granted pursuant to the ReSearch Pharmaceutical Services, Inc. 2002 Equity Incentive Plan
effective as of June 6, 2002.

-14-

 

          “Disability” (i) shall mean any physical or mental incapacitation which results in Employee’s
inability to perform his duties and responsibilities for the Company for a total of one hundred
twenty (120) days during any twelve (12)-month period, as determined by an Independent Medical
Doctor and (ii) shall be deemed to have occurred on the later of either the 120th day of such
inability to perform or the date on which the benefits under the Company’s long term disability
insurance become payable to Employee. For the purposes of this definition, an “Independent Medical
Doctor” shall be a medical doctor chosen in the following manner: Employee and the Board shall
each choose a medical doctor and such medical doctors, together, shall choose a third medical
doctor who shall be the Independent Medical Doctor.

          “Good Reason” shall mean the following:

                    (i) a material breach of the Company’s obligations to Employee hereunder, provided that
Employee shall have given written notice thereof to the Company, and the Company shall have failed
to remedy the breach within 20 calendar days after such notice;

                    (ii) the relocation of Employee’s principal business office outside the metropolitan
Philadelphia area without the consent of Employee;

                    (iii) the Company materially changes the job description, office title and/or responsibilities
provided for in this Agreement, excluding promotions or increased responsibilities,
provided that Employee shall have given written notice thereof to the Company, and the
Company shall have failed to remedy the breach within 20 calendar days after such notice;

                    (iv) Employee is removed from the Board without Cause; or

                    (v) failure of the Company to nominate Employee as a candidate for election to the Board.

provided that in each such case, Good Reason shall be deemed to exist only if Employee
shall have resigned from the Company within one hundred twenty (120) days after the occurrence of
one of the events described above.

          “Parent Options” shall mean options to purchase shares of the common stock, par value $0.0001
per share, of Parent granted pursuant to the Parent Option Plan.

          “Parent Option Plan” shall mean the [Parent Option Plan] substantially in the form attached
hereto as Exhibit B.

          “Subsidiaries” shall mean any entity of which a majority of the securities or other ownership
interests are, at the time of determination, owned by the Company, directly or through one or more
Subsidiaries.

          16. Survival. Sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 15 and Sections 16 through 25
shall survive and continue in full force in accordance with their terms notwithstanding any
termination or resignation of Employee’s employment by the Company.

-15-

 

          17. Notices. Any notice provided for in this Agreement shall be in writing and shall
be personally delivered, sent by facsimile (with hard copy to follow by regular mail) or mailed by
overnight courier (by a reputable courier service) or first class mail, return receipt requested,
to the recipient at the address below indicated:

Notices to Employee:

Daniel M. Perlman

c/o ReSearch Pharmaceutical Services, Inc.

520 Virginia Drive

Ft. Washington, PA 19034

Fax: (484) 533-2018

Notices to the Company:

ReSearch Pharmaceutical Services, Inc.

520 Virginia Drive

Ft. Washington, PA 19034

Fax: (484) 533-2018

Attention: [                                        ]

With a copy to:

Chair, Compensation Committee

ReSearch Pharmaceutical Services, Inc.

520 Virginia Drive

Ft. Washington, PA 19034

Fax: (484) 533-2018

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement shall be
deemed to have been given when so delivered, sent or mailed.

     18. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     19. Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding between
the parties and supersede and preempt any prior understandings, agreements or representations by or
between the parties, written or oral, which may have related to the subject matter hereof in any
way including, without limitation, that certain Employment

-16-

 

Agreement, entered into in 2001, by and between ReSearch Pharmaceutical Services, Inc. and Employee
(the “Prior Agreement”).

          20. No Strict Construction. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.

          21. Counterparts. This Agreement may be executed in separate counterparts (including
by facsimile signature pages), each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

          22. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Employee, the Company and their respective heirs, successors and
assigns, except that Employee may not assign his rights or delegate his duties or obligations
hereunder without the prior written consent of the Company. Subject to Article 5 of this
Agreement, the Company may freely assign its rights and obligations hereunder (including by
operation of law), without the consent of, or notice to, Employee.

          23. Choice of Law; Consent to Jurisdiction. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the exhibits and
schedules hereto shall be governed by, and construed in accordance with, the laws of the
Commonwealth of Pennsylvania, without giving effect to any choice of law or conflict of law rules
or provisions (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the Commonwealth of Pennsylvania.
In the case of any dispute under or in connection with this Agreement, Employee may only bring suit
against the Company in the Courts of the State of Pennsylvania in and for the County of Montgomery
or in the Federal District Court for such geographic location. Employee hereby consents to the
jurisdiction and venue of the courts of the Commonwealth of Pennsylvania in and for the County of
Montgomery or the Federal District Court for such geographic location, provided that such Federal
Court has subject matter jurisdiction over such dispute, and Employee hereby waives any claim he
may have at any time as to forum non conveniens with respect to such venue. The Company shall have
the right to institute any legal action arising out of or relating to this Agreement in any
appropriate court and in any jurisdiction. Any judgment entered against either of the parties in
any proceeding hereunder may be entered and enforced by any court of competent jurisdiction.

          24. Effective Date. This Agreement will become effective on the date (the “Effective
Date”) on which the merger of Longxia Acquisition, Inc. (“Longxia”) with and into Research
Pharmaceutical Services, Inc. (“RPS”), pursuant to the Agreement and Plan of Merger by and among
the Company, Longxia, RPS, the RPS Securityholders named therein, and Daniel M. Perlman and Daniel
Raynor as the RPS Securityholders Committee, (the “Merger”) is consummated. If for any reason the
Merger does not occur, then this Agreement will not be effective and will be of no force or effect.

-17-

 

          25. Amendment and Waiver. The provisions of this Agreement may be amended or waived
only with the prior written consent of the Company and Employee, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement.

*      *      *

-18-

 

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

	 	 	 	 	 
	 	CROSS SHORE ACQUISITION CORPORATION

 	 
	 	By:  	/s/ Dennis M. Smith
 	 
	 	 	Name:  	Dennis M. Smith 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	 	 
	 	/s/ Daniel M. Perlman
 	 
	 	Daniel M. Perlman 	 
	 	 	 
	 

-19-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]