Document:

exv4w2

 

Exhibit 4.2

Investor Rights Agreement

Dated as of April 24, 2006

among

Cross Shore Acquisition Corporation

Sunrise Securities Corp.

and

Collins Stewart Limited

 

 

INVESTOR RIGHTS AGREEMENT

          This Investor Rights Agreement (this “Agreement”)
is made and entered into as of April 24, 2006 by and
among Cross Shore Acquisition Corporation (the
“Company”), Sunrise Securities Coip. (the “Placing
Agent”) and Collins Stewart Limited, the nominated
broker and adviser to the Company (“Collins Stewart”),
for the benefit of the holders (the “Holders”) from
time to time of the Company’s common stock, par value
$0.0001 per share (the “Shares”) and warrants (the
“Warrants”), each Warrant for the purchase of one (1)
Share.

          Reference is made to the Company’s Offering
Circular, dated April 24, 2006 (the “Offering Circular”),
relating to the offer and sale of units described therein
(the “Units”), each Unit consisting of one (1) Share and
two (2) Warrants. For the benefit of the Holders and in
consideration of the Placing Agent and Collins Stewart
entering into a Placing Agreement (defined below) with
the Company for the placing of the Units, the Company has
agreed to provide the investor rights set forth in this
Agreement.

          The parties hereby agree as follows:

     SECTION 1. DEFINITIONS

          As used in this Agreement, the following
capitalized terms shall have the following meanings:

          Business Combination: The acquisition, whether by
way of an asset acquisition, merger, share capital
exchange, scheme of arrangement or similar transaction of
all or part of one or more operating companies engaged in
the delivery of business services to companies and
consumers in the U.S.

          Commission: The U.S. Securities and
Exchange Commission.

          Demand
Registration: As defined in Section
3(a) hereof.

          Demand Registration
Default: As defined in 6(a) hereof.

          Demand Right: As defined in Section
3(a) hereof.

          Eligible Holder: Any Holder of record of at least
ten percent (10%) of the outstanding Shares of the
Company as of the record date for determining the
shareholders entitled to notice of and to vote at the
special meeting of shareholders at which a proposed
Qualified Business Combination is submitted for approval.

          Exchange Act: The U.S. Securities Exchange Act of 1934, as amended.

          Exchange Act Registration Default: As defined in Section 6(a) hereof.

 

 

          Exchange Act Registration Statement: A registration
statement of the Company on Form 10 (or such other form
which it is appropriate to use to register the Shares
under the Exchange Act), including all amendments and
supplements thereto and all exhibits and material
incorporated by reference therein.

          Founding Shareholders: Those persons holding
Shares prior to the Offering.

          GAAP: As defined in Section 7(a) hereof.

          Liquidated Damages: As defined in
Section 6(a) hereof.

          Lock-up Period:
As defined in Section 3(f) hereof.

          NASD: National Association of
Securities Dealers, Inc.

          New Shares:
Shares issued by the Company in the
Offering.

          Offering: The offering of the Units pursuant to the Offering Circular.

          Person: An individual, partnership, corporation,
limited liability company, unincorporated organization,
association, joint-stock company, trust, joint venture,
government or any agency or political subdivision thereof
or any other entity.

          Placing Agreement: The placing agreement between the
Company, the Placing Agent, Collins Stewart and the
Company’s directors dated on or about the date of this
Agreement.

          Preemptive Rights Notice: As defined in Section 10(a) hereof.

          Purchase Option: That certain Unit purchase option
dated April 24, 2006 issued by the Company to Sunrise
Securities Corp. and/or its designees.

          OBC Securities: As defined in Section 10(a) hereof.

          Qualified Business Combination: A Business
Combination which, either on its own or which when
combined with all of the Company’s previous Business
Combinations, has an aggregate Transaction Value of at
least 50% of the initial amount placed in the Trust Fund
(including such funds as are deposited in the Trust Fund
immediately following the end of the Stabilisation
Period) (as more fully described in the Offering
Circular).

          Qualified Business Combination Deadline: the date
which is (i) 12 months from the Admission Date (or the
date which is 18 months from the Admission  Date if,
within such 12 month period, the Company has signed a
letter of intent, agreement in principle or definitive
agreement in respect of a proposed Qualified

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Business Combination); or (ii) an extended date
approved by a majority of the New Shareholders.

          Piggy Back Registration: As defined in Section 4(a) hereof.

          register, registered or registration: Refer
to a registration effected by preparing and filing a
registration statement in compliance with the Securities
Act and the declaration or ordering of effectiveness of
such registration statement.

          Registrable Securities: Shares issued to Holders
pursuant to the Offering or acquired upon exercise of the
Warrants issued in connection with the Offering including
the Shares underlying the Purchase Option and Shares
issued upon exercise of the Warrants underlying the
Purchase Option. Registrable Securities shall include any
warrants, shares of capital stock or other securities of
the Company issued as a dividend or other distribution
with respect to, in exchange for, or in replacement of,
such Shares. 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 and (i) new
certificates for them not bearing a legend restricting
their transfer under the U.S. securities laws shall have
been delivered or caused to be delivered by the Company
or (ii) new securities in dematerialized or book-entry
form not subject to transfer restrictions shall have been
delivered or caused to be delivered by the Company; (c)
such securities shall have ceased to be outstanding; or
(d) such securities may be sold or transferred by a
person who is not an affiliate of the Company pursuant to
Rule 144 under the Securities Act (or any other similar
provision then in force) without any volume or manner of
sale restrictions thereunder.

          Registration Date: As defined in Section 2(a) hereof.

          Registration Default: An Exchange Act Registration
Default, a Demand Registration Default or a Shelf
Registration Default.

          Registration Request: As defined in Section 3(a) hereof.

          Registration Statement: Any registration statement
of the Company on an applicable form (including, for the
avoidance of doubt, a Shelf Registration Statement, the
Exchange Act Registration Statement and the Securities
Act Registration Statement), including the prospectus,
amendments and supplements to such registration
statement, including post-effective amendments, all
exhibits, and all material incorporated by reference or
deemed to be incorporated by reference in such
registration statement.

          Requesting Holders: As defined in Section 3(a) hereof.

          Securities Act: The U.S. Securities Act of 1933, as amended.

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          Securities Act Registration Statement: As defined in Section 2(a) hereof.

          Shelf Registration Default: As defined in Section 6(a) hereof.

          Shelf Registration Statement: A shelf registration
statement of the Company filed pursuant to the provisions
of Section 5 of this Agreement which covers all of the
Registrable Securities on an appropriate form (including
a Form S-3 or o similar short form registration
statement) under Rule 415 under the Securities Act, or
any similar rule that may be adopted by the Commission,
including all amendments and supplements thereto and all
exhibits and material incorporated by reference therein.

          Suspension Period: As defined in Section 5(b) hereof.

          Transaction
Value: the sum of:

          (i) any cash and fair market value of any
property used as consideration in connection with
a Business Combination;

          (ii) any net debt, capitalized lease obligations
and obligations under a letter of credit or similar
assumed and/or incurred in connection with such Business
Combination;

          (iii) in the case of a Qualified Business
Combination only, the value of any Shares or Preferred
Shares used as consideration in connection with such
Business Combination as determined by an unaffiliated
investment banking firm; and

          (iv) all transaction costs incurred to
complete the Business Combination.

          Trust Fund: The trust fund into which certain of
the proceeds of the Offering will be received and held
in trust by the Trustee, as more fully described in the
section titled “Use of Proceeds” in the Offering
Circular.

          Capitalized terms used, but not defined, herein
shall have the meanings given to them in the Offering
Circular.

     SECTION 2. EXCHANGE ACT REGISTRATION

          (a) The Company shall (i) no later than the date
that is one hundred twenty (120) days after the date of
completion of a Qualified Business Combination (or, n i
the event that the Qualified Business Combination is
completed during the fourth quarter of the applicable
fiscal year, the date that is one hundred fifty (150)
days after the date of completion of a Qualified Business
Combination) or, alternatively, in the case where no
Qualified Business Combination shall have occurred but
one or more Business Combinations shall have been
completed, the Qualified Business Combination Deadline
(either such date, subject to extension as provided in
Section 2(b) below, the “Registration Date”) cause to be
filed with the Commission the Exchange Act

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Registration Statement, and (ii) use its
commercially reasonable efforts to cause such Exchange
Act Registration Statement to be declared effective under
the Securities Act on or prior to the date that is ninety
(90) days after the Registration Date; provided, however,that in the event that the Company is obligated to file a
Registration Statement to satisfy an initial request for
a Demand Registration pursuant to Section 3(a) hereof or
files a Shelf Registration Statement pursuant to Section
5 hereof, the Company may file a Registration Statement
on Form S-1 (the “Securities Act Registration Statement”)
in lieu of the Exchange Act Registration Statement. The
Company shall abide by the same filing and effective date
deadlines with respect to the Securities Act Registration
Statement as would have been applicable to the Exchange
Act Registration Statement.

          (b) Notwithstanding the provisions of Section 2(a),
if, in connection with seeking the approval of the New
Shareholders in connection with a Qualified Business
Combination or in connection with the Company’s
continued operations after the Qualified Business
Combination Deadline, the Company requests and receives
the approval of the holders of a majority of the New
Shares to delay the Company’s obligation to file an
Exchange Act Registration Statement or Securities Act
Registration Statement, as applicable, to a later date,
the Registration Date shall be delayed to such later
date.

     SECTION 3. DEMAND REGISTRATION

          (a) Requests for Registration. At any time after the
Registration Date, one or more Holders holding, in
aggregate, at least fifteen percent (15%) of the
Registrable Securities (including both Shares and Shares
issuable upon exercise of the Warrants) shall have the
right (the “Demand Right”) to request registration under
the Securities Act of all or any portion of the
Registrable Securities held by such Holders (the
“Requesting Holders”) by delivering written notice to the
Company, which notice identifies the Requesting Holders
and specifics the amount of Registrable Securities to be
included in such registration (the “Registration
Request”). Subject to the restrictions set forth in
Section 3(d), the Company shall give prompt written
notice of any Registration Request (the “Registration
Notice”) to all other Holders of Registrable Securities
and will thereupon use its commercially reasonable
efforts to effect the registration (a “Demand
Registration”) under the Securities Act on any form
available to the Company of:

          (i) the Registrable Securities requested to be
registered by the Requesting Holders; and

          (ii) all other Registrable Securities which
the Company has received written notice to
register within thirty (30) days after the date
of the Registration Notice and any other
securities of the Company proposed to be included
in such registration by the Company for its own
account.

          (b) Time Period for Effecting Demand Registrations.
The Company shall use its commercially reasonable
efforts to:

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          (i) file the Registration Statement (A) with
respect to the initial Demand Registration, within
one hundred twenty (120) days after receipt by the
Company of a Registration Request (or within one
hundred fifty (150) days after receipt by the
Company of Registration Request in the event that a
Qualified Business Combination was completed in the
fourth quarter of the applicable fiscal year) and
(B) with respect to subsequent Demand Registrations,
within ninety (90) days after receipt by the Company
of Registration Request; and

          (ii) cause such Registration Statement to be
declared effective (A) with respect to the initial
Demand Registration, within two hundred ten (210)
days after receipt by the Company of a Registration
Request (or within two hundred forty (240) days after
receipt by the Company of a Registration Request if
the Company is permitted to file a Registration
Statement within one hundred fifty (150) days of a
Registration Request as described in clause (i)
above) and (B) with respect to subsequent Demand
Registrations, as soon as reasonably practicable
after the filing of the applicable Registration
Statement;

          in all cases such periods to be extended to the
extent that the Company exercises its deferral rights
under clause (d)(iv) below.

          (c) Priority on Demand Registration. If the managing
underwriters of a Demand Registration advise the Company
in writing that in their opinion the amount of
Registrable Securities and other securities requested to
be included exceeds the amount of Registrable Securities
and other securities which can be sold in such offering
without adversely affecting the distribution of the
securities being offered, the price that will be paid in
such offering or the marketability thereof, the Company
will include in such registration the Registrable
Securities and other securities of the Company in the
following priority:

          (i) first, the greatest number of Registrable
Securities proposed to be registered by the Holders
thereof, ratably among the Holders of Registrable
Securities based on the respective amounts of
Registrable Securities requested to be registered by
each such Holder; and

          (ii) second, after all Registrable Securities
that the Holders thereof propose to register have
been included, securities proposed to be registered
by the Company for its own account or for the
accounts of shareholders other than the Holders,
which in the opinion of such underwriters can be
sold in such offering without adversely affecting
the distribution of the securities being offered,
the price that will be paid in such offering or the
marketability thereof.

          (d) Restrictions on Demand Registration.
Notwithstanding the foregoing:

          (i) the Company shall not be obligated to
effect a Demand Registration pursuant to Section
3(a) unless the Registrable Securities proposed to

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be registered constitute at least fifteen (15%)
of the Registrable Securities outstanding at
such time;

          (ii) the Company shall not be obligated to
effect a Demand Registration pursuant to Section
3(a) within six (6) months after the effective date
of a Registration Statement in connection with a
prior Registration Request pursuant to Section 3(a);

          (iii) in the event that the Company shall have
filed a Shelf Registration Statement covering the
resales of the Registrable Securities pursuant to
Section 5 hereof, the Company shall not be obligated
to effect a Demand Registration pursuant to Section
3(a) during any period when such Shelf Registration
Statement is effective and available (including any
Suspension Periods permitted pursuant to Section
5(b)) for resales by the Holders of Registrable
Securities who would otherwise be entitled to the
benefit of a Demand Registration; provided that the
Holders of Registrable Securities shall be entitled
to request the Company to effect underwritten
offerings pursuant to such Shelf Registration
Statement which underwritten offerings shall be
treated as Demand Registrations under this Section 3
with respect to the number available and minimum
percentage and value thresholds. The Company shall
use its commercially reasonable efforts to effect
such underwritten offerings within the same time
periods applicable to effecting Demand Registrations
set forth in Section 3(b) and comply with the
procedures set forth in Section 8 hereof with
respect to such underwritten offerings;

          (iv)
the Company may defer the filing of a
Registration Statement required to be filed pursuant
to this Section 3 for up to ninety (90) days if the
Board of Directors of the Company shall have
determined in good faith that because of valid
business reasons (not including avoidance of the
Company’s obligations hereunder), including, without
limitation, proposed or pending corporate
developments, it is in the best interests of the
Company to defer such filing, and prior to such
deferral the Company provides the Holders of
Registrable Securities with written notice thereof,
which notice need not specify the nature of the
event giving rise to such deferral. The Company may
not defer the filing of a Registration Statement
pursuant to this Section 3(d)(v) for more than
ninety (90) days during any six-month period or for
more than one hundred fifty (150) days during any
twelve-month period; and

          (v) the Company shall not be obligated to
effect more than three (3) Demand Registrations
pursuant to this Section 3 (including for this
purpose any underwritten offerings requested
pursuant to the Shelf Registration Statement).

          (e) Certain Communications; Waivers. The parties
acknowledge that the notices and other communications the
Company is required to provide to Holders under this
Section 3 and Sections 4 and 5 hereof may contain or
constitute price sensitive

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information and/or material non-public information
under applicable law, and the receipt of such notices and
other communications may make it unlawful for Holders to
trade their Shares for a period of time after receipt.
Each Holder is deemed to agree to keep confidential the
fact that it may have received a notice or communication
from the Company and the contents of any such notice or
communication. Any Holder that wishes to waive its
rights under Sections 3, 4 and 5 hereof may do so at any
time by written notice to the Company. Any such waiver
shall be revocable by subsequent written notice to the
Company.

          (f) Holdback Agreement. Each Holder, if requested by
the Company and the managing underwriters of an offering
by the Company of the Shares or other securities pursuant
to a Registration Statement under the Securities Act,
shall agree not to effect any public sale or private
offer or distribution of any Registrable Securities or
other securities of the Company held by such Holder for a
specified period of time (the “Lock-up Period”) following
the effective date of such Registration Statement;
provided that such Lock-up Period shall not exceed (i)
one hundred eighty (180) days, with respect to the first
Registration Statement covering Registrable Securities or
other securities of the Company to be sold to the public
in an underwritten offering and (ii) ninety (90) days,
with respect to all subsequent underwritten offerings.

     SECTION 4. PIGGY BACK REGISTRATION

          (a)
Requests for Piggy Back Registration. If, at any
time other than as provided in Section 4(c) below, the
Company proposes to register any Shares under the
Securities Act in connection with the public offering of
such Shares, either for its own account or for the
accounts of shareholders other than the Holders,
including, without limitation, for the accounts of the
Founding Shareholders pursuant to that certain
registration rights agreement, dated on or about the date
hereof, between the Company and the Founding Shareholders
(other than registrations on Form S-4 or Form S-8 or in
connection with an exchange offer or an offering of
securities solely to the Company’s existing
shareholders), the Company shall give written notice to
each Holder of Registrable Securities at least thirty
(30) days prior to the initial filing of such
Registration Statement and of such Holder’s rights
pursuant to this Section 4. Upon the request of any
Holder of Registrable Securities made within twenty (20)
days after any such notice is given (which request shall
specify the number of Registrable Securities intended to
be disposed of by such Holder), the Company will use its
commercially reasonable efforts to effect the
registration (the “Piggy Back Registration”) under the
Securities Act of all Registrable Securities which the
Company has been so requested to register by the Holders
thereof; provided, however, that if, at any time after
giving written notice of its intention to register any
Shares and prior to the effective date of the
Registration Statement filed in connection with such
Piggy Back Registration, the Company shall determine for
any reason not to register or to delay the registration
of such Shares, the Company may, at its election, give
written notice of such determination to each Holder of
Registrable Securities and, thereupon (i) in the case of
a determination not to register the Company shall be
relieved of its obligation to register any Registrable
Securities under this Section 4(a) in connection with
such registration (but not from its

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obligation
to pay the expenses incurred in connection
therewith) and (ii) in the case of a determination to
delay registration, the Company shall be permitted to
delay registering any Registrable Securities under this
Section 4(a) during the period that the registration of
such other Shares is delayed.

          (b) Priority on Piggy Back Registration. If the
managing underwriters of a registration advise the
Company in writing that in their opinion the amount of
Registrable Securities and other Shares requested to be
included exceeds the amount of Registrable Securities and
other Shares which can be sold in such offering without
adversely affecting the distribution of the securities
being offered, the price that will be paid in such
offering or the marketability thereof, the Company will
include in such registration the maximum amount of
Registrable Securities and other Shares of the Company
proposed to be included, which in the opinion of such
underwriters can be sold in such offering, ratably among
the Holders of Registrable Securities, the Company and
the other holders of such other Shares based on the
respective amounts of Registrable Securities or other
Shares, as the case may be, requested or proposed to be
registered by each such holder or the Company.

          (c) Limitation on Piggy Back Registrations If the
Company shall have filed a Shelf Registration Statement
covering the resales of the Registrable Securities
pursuant to Section 5 hereof, the Company shall not be
obligated to permit Piggy Back Registrations (other than
in connection with firm commitment underwritten
offerings) pursuant to this Section 4 during the period
when such Shelf Registration Statement is effective and
available (including any Suspension Period permitted by
Section 5(b)) for resales by the Holders of Registrable
Securities who would otherwise be entitled to the benefit
of such Piggy Back Registration.

     SECTION 5. SHELF REGISTRATION

          (a) The Company may, at any time, cause a Shelf
Registration Statement to be filed and declared
effective by the Commission, which Shelf Registration
Statement shall provide for the resales of all
Registrable Securities held by the Holders who shall have
provided the information required pursuant to Section
5(d).
Notwithstanding the foregoing, as soon as reasonably
practicable after the Company has become a registrant
entitled to use Form S-3 (or any successor form to Form
S-3) or any similar short form Registration Statement,
the Company shall file a Shelf Registration Statement on
Form S-3 for the registration of the Registrable
Securities and use its commercially reasonable efforts
to cause such Form S-3 Registration Statement to be
declared effective.

          (b) Notwithstanding any other provision in this
Agreement, the Company may delay the initial filing of
the Shelf Registration Statement and may from time to
time suspend the use of any prospectus forming a part of
the Shelf Registration Statement for a period of up to
ninety (90) days during any six-month period or for an
aggregate of one hundred fifty (150) during any
twelve-month period (such period during which the use of
a prospectus is suspended, a “Suspension Period’”) if the
Board of

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Directors of the Company shall have determined in good faith that because of valid business reasons
(not including avoidance of the Company’s obligations hereunder), including, without limitation,
proposed or pending corporate developments and similar events or because of filings with the
Commission, it is in the best interests of the Company to suspend such use, and prior to suspending
such use the Company provides the Holders of Registrable Securities with written notice of such
suspension, which notice need not specify the nature of the event giving rise to such suspension.

          (c) No Holder of Registrable Securities may include any of its Registrable Securities in
any registration pursuant to this Section 5 unless and until such Holder furnishes to the Company
in writing, within ten (10) days after receipt of a request therefore, such information as the
Company may reasonably request for use in connection with any Shelf Registration Statement and
agrees to comply with Regulation M under the Exchange Act. Each Holder as to whose Registrable
Securities any Shelf Registration Statement is being filed or maintained effective agrees to
furnish promptly to the Company all information required to be disclosed in order to make the
information previously furnished to the Company by such Holder not materially misleading.

     SECTION 6. LIQUIDATED DAMAGES

          (a) If the Exchange Act Registration Statement or the Securities Act Registration
Statement, as applicable, shall not have been declared effective within ninety (90) days of the
Registration Date as required by Section 2(a) hereof (an “Exchange Act Registration
Default”) or if the Company does not effect a Demand Registration (or, in the case where a
Shelf Registration Statement is available for resales of the Registrable Securities, does not file
any required amendment or supplement to the prospectus contained in the Shelf Registration
Statement or any such amendment shall not be effective) within the time periods specified in
Section 3(b) hereof (a “Demand Registration Default”) or if the Company does not cause to
be declared effective a Shelf Registration Statement on Form S-3 within ninety (90) days after it
becomes a registrant entitled to use Form S-3 (a “Shelf Registration Default”), the Company
shall, as promptly as practicable and in no event later than two (2) days following the end of the
month in which such Registration Default initially occurred, pay liquidated damages
(“Liquidated Damages”) in the form of Shares:

          (i) with respect to an Exchange Act Registration Default or a Shelf
Registration Default, to each Holder of Shares in an amount equal to 1.0% of the number of
such Holder’s Shares held on the date of such Registration Default upon payment by the
Founding Shareholders (other than Sunrise Securities Corp.) to the Company of the par
value of such Shares, subject to compliance with applicable securities laws; provided,
that a Holder shall be paid Liquidated Damages only with respect to (A) any Shares that
were acquired by such Holder in the Offering or in the after-market following the Offering
and (B) any Shares that were acquired by such Holder pursuant to the exercise of the
Purchase Option;

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          (ii) with respect to a Demand Registration Default, to each Holder of Registrable
Securities which had requested its Registrable Securities to be included in such Demand
Registration (or underwritten offering in the case of a Shelf Registration Statement being
used in lieu of a Demand Registration) in an amount equal to 1.0% of the number of such
Holder’s Registrable Securities requested to be included therein upon payment by the
Founding Shareholders (other than Sunrise Securities Corp.) to the Company of the par value
of such Shares, subject to compliance with applicable securities laws.

          (b) The Company shall pay additional Liquidated Damages within two days of the end of
each month until the Registration Default shall have been cured; provided that a pro rata portion
of the Liquidated Damages shall be paid with respect to any month in which the Company shall have
been in Registration Default for a portion of such month; and provided, further, that Liquidated
Damages shall be payable for a maximum period of four (4) months following the occurrence of a
Registration Default.

          Notwithstanding any other provision of this Agreement, the liquidated damages contemplated in
this Section 6 shall be the sole and exclusive remedy available to the Holders in the event of a
Registration Default by the Company.

     SECTION 7. CURRENT PUBLIC INFORMATION

          (a) Subject to Section 7(c) below, from and after the date hereof and
until the Exchange Act Registration Statement or Securities Act Registration Statement,
as applicable, shall have become effective, the Company shall furnish to the Holders:

          (i) unaudited quarterly reports prepared in accordance with U.S. generally
accepted accounting principles (“GAAP”) within 60 days after the end of each
quarter;

          (ii) annual reports which shall contain audited financial statements prepared in
accordance with GAAP and containing non-financial information substantially equivalent to
the non-financial information that would be contained in an Annual Report on Form 10-K,
within 120 days after the end of each year, including a “Management’s Discussion and
Analysis of Financial Condition and Results of Operation”; and

          (iii) reports substantially equivalent to the reports which would be required to
be filed on Form 8-K within four business days after the event required to be reported
with respect to the information set forth in Items (3), (4) (5) and (7) of Form 8-K, and
within 10 days after the relevant event with respect to all other information required to
be reported on Form 8-K; provided that any financial statements that would be required may
be unaudited.

          (b) With respect to any proxy statement required to be prepared by the Company in connection with a Business Combination, such proxy statement shall

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contain, subject to Section 7(c) below, substantially the same information as would be required in
a proxy statement for an acquisition filed with the Commission as determined by the Board of
Directors of the Company in their judgment.

          (c) Notwithstanding Sections 7(a) and 7(b), save to the extent required by law to be
included in the Commission reports or proxy statements referred to above, such reports or proxy
statements shall not be required to contain or include (i) any certification required by the
Sarbanes-Oxley Act, (ii) any exhibits, (iii) separate financial statements for any acquired
businesses or (iv) any pro forma financial information; provided, however, that such reports or
proxy statements shall contain or include (i) at least one year of financial statements (if such
financial statements would have been required by Regulation S-X) which, if permitted by applicable
AIM requirements, may be unaudited, (ii) to the extent available, two or three years of historical
financial statements (if such second or third year of financial statements would have been required
by Regulation S-X), which may be unaudited and (ii) summaries of material contracts to the extent
applicable.

     SECTION 8. REGISTRATION PROCEDURES

          Whenever required under this Agreement to use its commercially reasonable efforts to effect
the registration of any Registrable Securities, the Company will use its commercially reasonable
efforts to effect the registration and the sale of such Registrable Securities in accordance with
the intended method of disposition thereof, and pursuant thereto the Company shall, as
expeditiously as reasonably possible:

          (a) Prepare and file with the Commission a Registration Statement
with respect to such Registrable Securities and use its best efforts to cause such
Registration Statement to become and remain effective until the distribution thereof has
been completed;

          (b) Furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the Securities Act, and such other
documents as they may reasonably request in order to facilitate the disposition of such
Registrable Securities owned by them;

          (c) Notify the selling Holders of Registrable Securities promptly (but
in any event within two (2) business days), and confirm such notice in writing (i) when a
prospectus or any prospectus supplement or post-effective amendment has been filed,
and, with respect to a Registration Statement or any post-effective amendment, when the
same has become effective, (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of a Registration Statement or of any order preventing or
suspending the use of any preliminary prospectus, (iii) if at any time when a prospectus is
required by the Securities Act to be delivered in connection with the sales of Registrable
Securities, the Company becomes aware that the representations and warranties of the
Company contained in any agreement (including, without limitation, any underwriting
agreement) contemplated in Section 8(g) below cease to be true and correct in any

13

 

material respect, (iv) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of a Registration Statement or any
of the Registrable Securities for offer or sale in any jurisdiction, or (v) if the Company becomes
aware of the happening of any event that makes any statement made in such Registration Statement or
related prospectus or document incorporated or deemed to be incorporated therein by reference
untrue in any material respect or that requires the making of any changes in such Registration
Statement, prospectus or documents so that, in the case of such 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
the 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;

          (d) Upon the occurrence of any event contemplated by Section 8(c)
above, as promptly as practicable, prepare a supplement or post-effective amendment to
the Registration Statement or a supplement to the related prospectus or any document
incorporated or deemed to be incorporated therein by reference, or file any other required
document so that, as thereafter delivered to the purchasers of the Registrable Securities
being sold thereunder, such prospectus will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading;

          (e) As promptly as practicable after the Exchange Act Registration
Statement or the Securities Act Registration Statement, as applicable, shall have been
declared effective under the Securities Act, use its commercially reasonable efforts to
cause the Shares to be authorized to be quoted and/or listed (to the extent applicable) on
the American Stock Exchange, the New York Stock Exchange, the NASDAQ National
Market (or, in each case, a successor thereto) or a similarly recognized trading platform,
if the Shares so qualify;

          (f) Use its commercially reasonable efforts to register and qualify the
Registrable Securities covered by the Registration Statement under such other securities
or “Blue Sky” laws of such jurisdictions as shall be reasonably appropriate for the
distribution of the Registrable Securities covered by the Registration Statement; provided
that the Company shall not be required in connection therewith or as a condition thereto,
to qualify to do business or to file a general consent to service of process in any such
states or jurisdictions; and provided, further that (anything in this Agreement to the
contrary notwithstanding with respect to the bearing of expenses) if any jurisdiction in
which the Registrable Securities shall be qualified requires that expenses incurred in
connection with the qualification of the securities in that jurisdiction be borne by selling
shareholders, then such expenses shall be payable by the Holders of such Registrable
Securities pro rata to the extent required by any jurisdiction;

14

 

     
     (g) In the case of any underwritten offering, enter into an underwriting agreement in
form, scope and substance as is customary in underwritten offerings and take all other actions as
are reasonably requested by the managing underwriters in order to expedite or facilitate the
registration or disposition of the Registrable Securities, and in such connection, (i) make such
representations and warranties to the underwriters, with respect to the business of the Company and
its subsidiaries, and the Registration Statement, prospectus and documents, if any, incorporated or
deemed to be incorporated by reference therein, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings, and confirm the same if and
when requested, (ii) obtain opinions of counsel to the Company and updates thereof (which opinions
(in form, scope and substance) shall be reasonably satisfactory to the managing underwriters),
addressed to the underwriters covering the matters customarily covered in opinions requested in
underwritten offerings, (iii) obtain “cold comfort” letters and updates thereof from the independent
public certified accountants of the Company (and, if necessary, any other independent certified
public accounts of any subsidiary of the Company or of any business acquired by the Company for
which financial statements and financial data are, or are required to be, included in the
Registration Statement), addressed to each of the underwriters, such letters to be in customary
form and covering matters of the type customarily covered in “cold comfort” letters in connection
with underwritten offerings and (iv) if any underwriting agreement is entered into, the same shall
contain indemnification provisions and procedures no less favorable to the Holders of Registrable
Securities than those set forth in Section 12 hereof (or such other provisions and procedures
acceptable to Holders of a majority of the Registrable Securities covered by such Registration
Statement and the managing underwriters or agents). The above actions shall be taken at each
closing under such underwriting agreement, or as and to the extent required thereunder;

          (h) Make available for inspection by any selling Holder of Registrable Securities, by any
underwriter participating in any disposition to be effected pursuant to such Registration Statement
and by any attorney, accountant or other agent retained by any such selling Holder or any such
underwriter, all pertinent financial and other records and pertinent corporate documents and
properties of the Company, and cause all of the Company’s officers, directors and employees to
supply all information reasonably requested by any such selling Holder, underwriter, attorney,
accountant or agent in connection with such Registration Statement; and

          (i) Use every reasonable effort to prevent the issuance of any stop order suspending the
effectiveness of such Registration Statement or of any order preventing or suspending the use of
any preliminary prospectus and, if any such order is issued, to obtain the lifting thereof at the
earliest reasonable time.

     SECTION 9. INFORMATION FURNISHED BY HOLDERS

          It shall be a condition precedent to the obligations of the Company to take any action
pursuant to this Agreement with respect to the registration of any Holder’s Registrable Securities
that such Holder furnish to the Company such information

15

 

regarding itself, the Registrable Securities held by such Holder, and the intended method of
disposition of such Registrable Securities as the Company shall reasonably request and as shall
be required in connection with the action to be taken by the Company.

     SECTION 10. RIGHT OF PREEMPTION

          (a) The Company shall give each Eligible Holder at least ten (10) days
prior written notice (“Preemptive Rights Notice”) of the issuance by the Company for
cash in connection with a Qualified Business Combination of any Shares or any other
shares of capital stock and any options, warrants, convertible or exchangeable securities,
or other rights to acquire Shares or other capital stock of the Company or securities
exercisable, convertible or exchangeable for Shares or other capital stock of the Company
(collectively, “QBC Securities”).

          (b) The Preemptive Rights Notice must set forth (i) the approximate
number and type of QBC Securities proposed to be issued and sold and the proposed
material terms of such QBC Securities, (ii) the proposed price or range of prices at which
such QBC Securities are proposed to be sold and the terms of payment, and (iii) any other
material feature, term or condition relating to such QBC Securities or the proposed sale
thereof. Upon receipt of a Preemptive Rights Notice, each Eligible Holder will have the
right, but not the obligation, to elect, within five (5) business days of receipt of the
Preemptive Rights Notice, to purchase up to its pro rata share of such QBC Securities.
Such pro rata share, for any Eligible Holder, shall be the ratio of (x) the sum, without
duplication, of the total number of Shares held by such Eligible Holder prior to the
issuance of QBC Securities to (y) the sum, without duplication, of the total number of
Shares of the Company outstanding immediately prior to the issuance of QBC Securities
held by all shareholders of the Company (in the case of both (x) and (y), assuming the
full exercise, conversion or exchange of any options, warrants, convertible or
exchangeable securities or other rights to acquire Shares of the Company). Any such
election, if made, shall be irrevocable.

          (c) Each Eligible Holder’s purchase must be on the same terms and
conditions as the balance of such issuance of QBC Securities. The closing of each
Eligible Holder’s purchase of its portion of such QBC Securities will occur
simultaneously with and will be conditioned upon the closing of the balance of the
issuance of such QBC Securities. Any Holder of Shares that for any reason is not able to
complete the purchase on such terms and conditions and on such closing date shall not be
deemed an Eligible Holder and shall have no rights in respect of QBC Securities.

     SECTION 11. REGISTRATION EXPENSES

          (a) All expenses incident to the Company’s performance of or compliance with this
Agreement will be borne by the Company regardless of whether any Registration Statement hereunder
is filed or becomes effective, including without limitation and as applicable: (i) all Commission,
securities exchange or NASD registration and filing fees and expenses; (ii) all fees and expenses
of compliance with

16

 

U.S. federal securities and state blue sky laws and compliance with the rules of a securities
exchange or NASD, as applicable; (iii) all expenses of printing, messenger and delivery services;
(iv) all fees and disbursements of counsel for the Company; (v) all fees and disbursements of
independent certified public accountants of the Company (including the expenses of any special
audit and comfort letters required by or incident to such performance); and (vi) underwriters’ fees
and expenses (but excluding discounts, commissions, or fees of underwriters, selling brokers,
dealer directors or similar security industry professionals relating to the distribution of the
Registrable Securities and the fees for counsel of the selling Holders).

          (b) The Company will, in any event, bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expenses of any annual audit and the fees and expenses of any Person, including
special experts, retained by the Company.

     SECTION 12. INDEMNIFICATION

          (a) The Company shall indemnify and hold harmless each Holder, its
officers and employees and each Person, if any, who controls any such Holders, within
the meaning of the Securities Act, from and against any loss, claim, damage or liability,
joint or several, or any action in respect thereof, to which that Holder, officer, employee
or controlling Person may become subject, under the Securities Act or otherwise, insofar
as such loss, claim, damage, liability or action arises out of, or is based upon (i) any
untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement filed pursuant hereto or in any amendment or supplement thereto;
(ii) the omission or alleged omission to state in any Registration Statement filed pursuant
hereto or in any amendment or supplement thereto 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, and shall reimburse each Holder and each such
officer, employee or controlling Person promptly upon demand for any legal or other
expenses reasonably incurred by that Holder, officer, employee or controlling Person in
connection with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided that no Holder
shall be indemnified for untrue statements or alleged untrue statements or omissions or
alleged omissions arising from information provided by the Holder in writing for
inclusion in any Registration Statement filed pursuant hereto. The foregoing indemnity
agreement is in addition to any liability which the Company may otherwise have to any
Holder or to any officer, employee or controlling Person of that Holder.

          (b) Promptly after receipt by an indemnified party under this Section
12 of notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the Company under this Section
12, notify the Company in writing of the claim or the commencement of that action;
provided, however, that the failure to notify the Company shall not relieve it from any
liability which it may have under this Section 12 except to the extent it has been
materially prejudiced by such failure; and provided, further, that the failure to notify the

17

 

Company shall not relieve it from
any liability which it may have to an indemnified party otherwise
than under this Section 12. If any such claim or action shall be brought against an indemnified
party, and it shall notify the Company thereof, the Company shall be entitled to participate
therein and, to the extent that it wishes to assume the defense thereof with counsel reasonably
satisfactory to the indemnified party. After notice from the Company to the indemnified party of
its election to assume the defense of such claim or action, the Company shall not be liable to the
indemnified party under this Section 12 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, any indemnified party shall have the right to employ separate
counsel in any such action and to participate in the defense thereof but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the employment of such
counsel has been specifically authorized by the Company in writing, or (ii) such indemnified party
shall have been advised by such counsel that there may be one or more legal defenses available to
it which are different from or additional to those available to the Company and in the reasonable
judgment of such counsel it is advisable for such indemnified party to employ separate counsel or
(iii) the Company has failed to assume the defense of such action and employ counsel reasonably
satisfactory to the indemnified party, in which case, if such indemnified party notifies the
Company in writing that it elects to employ separate counsel at the expense of the Company, the
Company shall not, in connection with any one such action or separate but substantially similar or
related actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one separate firm of
attorneys (in addition to one local counsel) at any time for all such indemnified parties, which
firm shall be designated in writing by the Holders of a majority in principal amount of the
outstanding Shares and the Shares issuable upon exercise of the Warrants. The Company shall not (i)
without the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the entry of any judgment with respect
to any pending or threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent includes
an unconditional release of each indemnified party from all liability arising out of such claim,
action, suit or proceeding or (ii) be liable for any settlement of any such action effected without
its written consent (which consent shall not be unreasonably withheld), but if settled with the
consent of the Company or if there be a final judgment of the plaintiff in any such action, the
Company agrees to indemnify and hold harmless any indemnified party from and against any loss or
liability by reason of such settlement or judgment.

          (c) If the indemnification provided for in this Section 12 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 12(a) in
respect of any loss, claim, damage or liability, or any action in respect thereof, referred to
therein, then the Company shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss, claim, damage or
liability, or action in respect thereof, (i) in such

18

 

proportion as shall be appropriate to reflect the relative benefits received by the Company, on the
one hand, and the Holders on the other, from the sale of the Shares or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above but any other
relevant equitable considerations. The Company and the Holders agree that it would not be just and
equitable if contributions pursuant to this Section 12(c) were to be determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or by any other method
of allocation which does not take into account the equitable considerations referred to herein. The
amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability,
or action in respect thereof, referred to above in this Section 12 shall be deemed to include, for
purposes of this Section 12(c), 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 12(c), no Holder shall be required to contribute any amount in excess of
the amount by which the net proceeds received by it in connection with its sale of Shares exceeds
the amount of any damages which such Holder has otherwise paid or become liable to pay by reason of
the untrue or alleged untrue statement or omission or alleged omission. 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.
The Holders’ obligations to contribute as provided in this Section 12(c) are several and not joint.

     SECTION 13. MISCELLANEOUS

    
      (a) No Inconsistent Agreements. The Company shall not, on or after
the date of this Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise
conflicts with the provisions hereof. Except as disclosed in the Offering Circular, the
Company has not previously entered into any agreement granting any registration rights
with respect to its Shares to any Person except for the registration rights given to the
Founding Shareholders and the Placing Agent. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the rights granted
to the holders of the Company’s Shares under any agreement in effect on the date hereof.

     
     (b) Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has obtained the written
consent of Holders of eighty-five percent (85%) of the Registrable Securities at such time
outstanding (it being understood, for the avoidance of doubt, that any Holder may waive
any provision of this Agreement as to itself and its Shares).

     
     (c) Third Party Beneficiaries. The Holders shall be third party
beneficiaries under this Agreement, entitled to enforce all of their rights hereunder.
Other than as provided in the preceding sentence, nothing in this Agreement shall create

19

 

or be deemed to create any third parly beneficiary rights in any Person not a party to this
Agreement.

     
     (d) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified,
return receipt requested), telex, facsimile or air courier guaranteeing overnight delivery:

          (i) if to a Holder, at the address set forth in the record books of the Company;
and

if to the Company to:

Cross Shore Acquisition Corporation

c/o Glencoe Capital

222 West Adam Street

Suite 100

Chicago, Illinois 60606

Attn: Chairman

with a copy to:

Fried, Frank, Harris, Shriver & Jacobson (London), LLP

99 City Road

London EC1Y 1AX

Attn: Karen C. Wiedemann

with copies to:

Sunrise Securities Corp.

641 Lexington Avenue

New York, NY 10022

Attn: President

and

Collins Stewart Limited

9th Floor

88 Wood Street

London EC2V 7QR

          Any such notices and communications shall take effect at the time of receipt thereof.

    
      (e) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties.

20

 

     
     (f) Counterparts. This Agreement may be executed in any
number of counterparts
and by the parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.

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

     
     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED, IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

      
    (i) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     
     (j) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein with respect to the investor rights granted by the Company herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

21

 

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

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CROSS SHORE ACQUISITION CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dennis Smith	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Dennis Smith	 	 
	 

	 	 	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SUNRISE SECURITIES CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Marcia Kucher	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Marcia Kucher	 	 
	 

	 	 	 	Title:	 	CFO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COLLINS STEWART LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ SEEMA PATERSON	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Seema Paterson	 	 
	 

	 	 	 	Title:
	 	Director, Corporate Financeexv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

     THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of 24 April, 2006, by
and among Cross Shore Acquisition Corporation, a corporation organized under the laws of the State
of Delaware (the “Company”) and the undersigned parties listed on the signature page hereto (each,
an “Investor” and collectively, the “Investors”).

     WHEREAS, the Investors currently hold all of the issued and outstanding securities of the
Company;

     WHEREAS, the Investors and the Company desire to enter into this Agreement to provide the
Investors with certain rights relating to the registration of the Common Shares held by them;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows;

     1. DEFINITIONS. The following capitalized terms used herein have the following
meanings:

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

          “Commission” means the Securities and Exchange Commission, or any other federal agency
then administering the Securities Act or the Exchange Act.

          “Common Shares” means the common shares, par value $0.0001 per share, of the Company.

          “Company” is defined in the preamble to this
Agreement.

          “Demand Registration” is defined in Section 2.1.1.

          “Demanding Holder” is defined in Section 2.1.1.

          “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.

          “Form S-3” is defined in Section 2.3.

          “Indemnified Party” is defined in Section 4.3.

          “Indemnifying Party” is defined in Section 4.3.

1

 

          “Investor” is defined in the preamble to this Agreement.

          “Investor Indemnified Party” is defined in Section 4.1.

          “Maximum Number of Shares” is defined in Section 2.1.4.

          “Notices” is defined in Section 6.3.

          “Piggy-Back Registration” is defined in Section 2.2.1.

          “Register,”
“registered” and “registration” mean a registration effected by
preparing and filing a registration statement or similar document in compliance with the
requirements of the Securities Act, and the applicable rules and regulations promulgated
thereunder, and such registration statement becoming effective.

          “Registrable Securities” mean all of the Common Shares owned or held by Investors.
Registrable Securities include any warrants, shares in the share capital or other securities of the
Company issued as a dividend or other distribution with respect to or in exchange for or in
replacement of such Common Shares. 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 and new certificates for them
not bearing a legend restricting further transfer shall have been delivered by the Company; (c)
such securities shall have ceased to be issued and outstanding, or (d) the Securities and Exchange
Commission makes a definitive determination or US securities counsel to the Company delivers an
opinion to the Company that the Registrable Securities are salable under Rule 144(k).

          “Registration Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act and the rules and regulations promulgated
thereunder for a public offering and sale of the Common Shares (other than a registration statement
on Form S-4 or Form S-8, or their successors, or any registration statement covering only
securities proposed to be issued in exchange for securities or assets of another entity).

          “Release
Date” means the date on which Common Shares are disbursed from escrow pursuant
to Section 3 of that certain Share Escrow Agreement dated as
of     , 2006 by and among the parties
hereto and Collins Stewart Limited, as escrow agent.

          “Reporting Date” means the date on which the Company has become obligated to file
reports under the Exchange Act.

          “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

2

 

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.

     2. REGISTRATION RIGHTS.

     2.1 Demand Registration.

          2.1.1.
Request for Registration. At any time and from time to time on or after the
later of the Release Date and the Reporting Date, the holders of a majority-in-interest of the
Registrable Securities held by the Investors or the transferees of
the Investors may make a written
demand for registration under the Securities Act of all or part of
their Registrable Securities (a
“Demand Registration”). Any demand for a Demand Registration shall specify the number of shares of
Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The
Company will notify all holders of Registrable Securities of the demand, and each holder of
Registrable Securities 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 within fifteen (15) days
after the receipt by the holder of the notice from the Company. Upon any such request, the
Demanding Holders shall be entitled to have their Registrable Securities included in the Demand
Registration, subject to Section 2.1.4 and the provisos set forth in Section 3.1.1. The Company
shall not be obligated to effect more than an aggregate of two (2) Demand Registrations under this
Section 2.1.1 in respect of Registrable Securities.

          2.1.2. 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 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 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 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.

          2.1.3. Underwritten Offering. If a majority-in-interest of the Demanding Holders so
elect 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. 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

3

 

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 of the holders initiating the Demand Registration.

          2.1.4. 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 of shares of Registrable Securities which the Demanding
Holders desire to sell, taken together with all other Common Shares or other securities which the
Company desires to sell and the Common Shares, if any, as to which registration has been requested
pursuant to written contractual piggy-back registration rights held by other shareholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares that 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 shares, as applicable, the “Maximum Number
of Shares”), 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 of Registrable Securities which such Demanding Holder has requested be included in
such registration, regardless of the number of shares of Registrable Securities held by each
Demanding Holder) that can be sold without exceeding the Maximum
Number of Shares; (ii) second, to
the extent that the Maximum Number of Shares has not been reached under the foregoing clause (i),
the Common Shares or other securities that the Company desires to sell that can be sold without
exceeding the Maximum Number of Shares; (iii) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (i) and (ii), the Common Shares 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 Number of Shares;
and (v) fourth, to the extent that the Maximum Number of Shares have not been reached under the
foregoing clauses (i), (ii), and (iii), the Common Shares that other shareholders desire to sell
that can be sold without exceeding the Maximum Number of Shares.

          2.1.5. Withdrawal. If a majority-in-interest of the Demanding Holders disapprove of
the terms of any underwriting or are not entitled to include all of
their 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 their
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 of the Demanding
Holders withdraws from a proposed offering relating to a Demand Registration, then such
registration shall not count as a Demand Registration provided for in Section 2.1.1.

     2.2 Piggy-Back Registration.

          2.2.1. Piggy-Back Rights. If at any time on or after the later of the
Release Date

4

 

and the Reporting 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, equity securities, by the Company for its own
account or for shareholders of the Company for their account (or by the Company and by shareholders
of the Company including, without limitation, pursuant to Section 2.1), other than a Registration
Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an
exchange offer or offering of securities solely to the Company’s existing shareholders, (iii) for
an offering of debt that is convertible into equity securities of the Company or (iv) for a
dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing
to the holders of Registrable Securities as soon as practicable but in no event less than ten (10)
days before the anticipated filing date, which notice shall describe the amount and type of
securities to be included in such offering, the intended method(s) of distribution, and the name of
the proposed managing Underwriter or Underwriters, if any, of the offering, and (y) offer to the
holders of Registrable Securities in such notice the opportunity to register the sale of such
number of shares of Registrable Securities as such holders may request in writing within fifteen
(15) 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 best 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 to be included 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 of Registrable Securities 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 respect to selling shareholders) with
the Underwriter or Underwriters selected for such Piggy-Back Registration.

          2.2.2 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
of Registrable Securities in writing that the dollar amount or number of Common Shares which the
Company desires to sell, taken together with Common Shares, if any, as to which registration has
been demanded pursuant to written contractual arrangements with persons other than the holders of
Registrable Securities hereunder, the Registrable Securities as to which registration has been
requested under this Section 2.2, and the Common Shares, if any, as to which registration has been
requested pursuant to the written contractual piggy-back registration rights of other shareholders
of the Company, exceeds the Maximum Number of Shares, then the Company shall include in any such
registration:

               (i) If the registration is undertaken for the Company’s account: (A) first, the Common Shares
or other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), the Common Shares, if any, including the Registrable Securities, as
to which registration has been requested pursuant to written contractual piggy-back registration
rights of security holders (pro rata in accordance with the number of Common Shares which each such
person has actually requested to be included in

5

 

such registration, regardless of the number of Common Shares with respect to which such
persons have the right to request such inclusion) that can be sold without exceeding the
Maximum Number of Shares; and

               (ii) If the registration is a “demand” registration undertaken at the demand of persons
other than the holders of Registrable Securities pursuant to written contractual arrangements with
such persons, (A) first, the Common Shares for the account of the demanding persons that can be
sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A), the Common Shares or other
securities that the Company desires to sell that can be sold without exceeding the Maximum Number
of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clauses (A) and (B), the Registrable Securities as to which registration has
been requested under this Section 2.2 (pro rata in accordance with the number of shares of
Registrable Securities held by each such holder); and (D) fourth, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clauses (A), (B) and (C), the Common
Shares, if any, as to which registration has been requested pursuant to written contractual
piggy-back registration rights which other shareholders desire to sell that can be sold without
exceeding the Maximum Number of Shares.

          2.2.3. Withdrawal. Any holder of Registrable Securities 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 may also elect to withdraw a registration statement 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 of Registrable Securities
in connection with such Piggy-Back Registration as provided in Section 3.3.

     2.3 Registrations on Form S-3. The holders of Registrable Securities may at any
time and from time to time, request in writing that the Company register the resale of any or all
of such Registrable Securities on Form S-3 or any similar short-form registration which may be
available at such time (“Form S-3”); provided, however, that the Company is eligible to use such
form and provided further that the Company shall not be obligated to effect such request through an
underwritten offering. Upon receipt of such written request, the Company will promptly give written
notice of the proposed registration to all other holders of Registrable Securities, and, as soon as
practicable thereafter, effect the registration of all or such portion of such holder’s or holders’
Registrable Securities as are specified in such request, together with all or such portion of the
Registrable Securities of any other holder or holders joining in such request as are specified in a
written request given within fifteen (15) days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to effect any such
registration pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or
(ii) if the holders of the Registrable Securities, together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at any aggregate price to the public of less than
$2,000,000. Registrations effected pursuant to this Section 2.3 shall not be counted as Demand
Registrations

6

 

effected pursuant to Section 2.1.

     3. REGISTRATION PROCEDURES.

     3.1 Filings; Information. Whenever the Company is required to effect the
registration of any Registrable Securities pursuant to Section 2, the Company shall use
commercially reasonable efforts to effect the registration and sale of such Registrable Securities
in accordance with the intended method(s) of distribution thereof as expeditiously as practicable,
and in connection with any such request:

          3.1.1.
Filing Registration Statement. The Company shall, as expeditiously as possible
and in any event within sixty (60) days after receipt of a request for a Demand Registration
pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any 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
commercially reasonable efforts to cause such Registration Statement to become and remain effective
for the period required by Section 3.1.3; provided, however, that the Company shall have the right
to defer any Demand Registration for up to sixty (60) days, and any Piggy-Back Registration for
such period as may be applicable to deferment of any demand registration to which such Piggy-Back
Registration relates, in each case if the Company shall furnish to the holders a certificate signed
by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board
of Directors of the Company, it would be materially detrimental to the Company and its shareholders
for such Registration Statement to be effected at such time; provided further, however, that the
Company shall not have the right to exercise the right set forth in the immediately preceding
proviso more than once in any 365-day period in respect of a Demand Registration hereunder.

          3.1.2. Copies. The Company shall, prior to filing a Registration Statement or
prospectus, or any amendment or supplement thereto, furnish without charge to the holders
of Registrable Securities included in such registration that have so requested in writing, and such
holders’ legal counsel, copies of such Registration Statement as proposed to be filed, each
amendment and supplement to such Registration Statement, the prospectus included in such
Registration Statement (including each preliminary prospectus), and such other documents as the
holders of Registrable Securities included in such registration or legal counsel for any such
holders may request in order to facilitate the disposition of the Registrable Securities owned by
such holders.

          3.1.3. 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

7

 

one hundred twenty (120) days 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) or such
securities have been withdrawn.

          3.1.4. Notification. After the filing of a Registration Statement, the Company shall
promptly, and in no event more than two (2) business days after such filing, notify the holders of
Registrable Securities included in such Registration Statement of such filing, and shall further
notify such holders promptly and confirm such advice in writing in
all events within two (2)
business days of the occurrence of any of the following: (i) when such Registration Statement
becomes effective; (ii) when any post-effective amendment to such Registration Statement becomes
effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order or to remove it if
entered); and (iv) any request by the Commission for any amendment or supplement to such
Registration Statement or any prospectus relating thereto or for additional information or of the
occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of the securities covered by such Registration
Statement, such prospectus will not contain an 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 promptly make available to the holders of Registrable Securities included in such
Registration Statement any such supplement or amendment; except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement thereto, the
Company shall furnish to the holders of Registrable Securities included in such Registration
Statement, that have so requested in writing, and to the legal counsel for any such 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.

          3.1.5. State Securities Laws Compliance. The Company shall use commercially reasonable
efforts to (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
of Registrable Securities 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 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 of Registrable Securities 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 (e) or subject itself to taxation
in any such jurisdiction.

          3.1.6. Agreements for Disposition. The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take

8

 

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 which 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 of Registrable Securities
included in such registration statement. No holder of Registrable Securities 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.

          3.1.7. 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.

          3.1.8. Records. The Company shall make available for inspection by the holders of
Registrable Securities 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 any holder of Registrable Securities included in such Registration
Statement or any Underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, 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
requested by any of them in connection with such Registration Statement.

          3.1.9. Opinions and Comfort Letters. The Company shall furnish to each holder of
Registrable Securities included in any Registration Statement a signed counterpart, addressed to
such holder, of (i) any opinion of counsel to the Company
delivered to any Underwriter and (ii)
provided that such holder has furnished customary representations and certifications, any comfort
letter from the Company’s independent public accountants delivered to any Underwriter.

          3.1.10. Listing. The Company shall use its best efforts to 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.

     3.2 Obligation to Suspend Distribution. Upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3.1.4(iv), or, in the case
of a resale registration on Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the
Company, pursuant to a written insider trading compliance program adopted by the Company’s

9

 

Board of Directors, of the ability of all “insiders” covered by such program to transact in the
Company’s securities because of the existence of material non-public information, each holder of
Registrable Securities included in any registration shall immediately discontinue disposition of
such Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until such holder receives the supplemented or amended prospectus contemplated by
Section 3.1.4(iv) or the restriction on the ability of “insiders” to transact in the Company’s
securities is removed, as applicable, and, if so directed by the Company, each such holder will
deliver to the Company all copies, other than permanent file copies then in such holder’s
possession, of the most recent prospectus covering such Registrable Securities at the time of
receipt of such notice.

     3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in
connection with any Demand Registration pursuant to Section 2.1, any Piggy-Back Registration
pursuant to Section 2.2, and any registration on Form S-3 effected pursuant to Section 2.3, 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 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 3.1.11; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and
disbursements of counsel for the Company 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 3.1.9); (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
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 shareholders and the
Company shall bear the expenses of the underwriter pro rata in proportion to the respective amount
of shares each is selling in such offering.

     3.4 Information. The holders of Registrable Securities shall provide such
information’s 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 Section 2 and in connection with the Company’s obligation to comply with federal and
applicable state securities laws.

     4. INDEMNIFICATION AND CONTRIBUTION.

     4.1 Indemnification by the Company. The Company agrees to indemnify and hold

10

 

harmless each Investor and each other holder of Registrable Securities, and each of their
respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and
each person, if any, who controls an Investor and each other holder of Registrable Securities
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each,
an “Investor Indemnified Party”), from and against any expenses, losses, judgments, claims, damages
or liabilities, 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 Registrable Securities was registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any
amendment or supplement to such Registration Statement, 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, or any violation by the Company of the Securities
Act or any rule or regulation promulgated thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any such registration; and the
Company shall promptly reimburse the Investor Indemnified Party for any legal and any other
expenses reasonably incurred by such Investor 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, preliminary
prospectus, final prospectus, or summary prospectus, or any such amendment or supplement, in
reliance upon and in conformity with information furnished to the Company, in writing, by such
selling holder 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 of Registrable Securities. Each selling holder of
Registrable Securities 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 selling
holder, indemnify and hold harmless the Company, each of its directors and officers and each
underwriter (if any), and each other person, if any, who controls such selling holder or such
underwriter within the meaning of the Securities Act, against any losses, claims, judgments,
damages or liabilities, whether joint or several, insofar as such losses, claims, judgments,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue
statement or allegedly untrue statement of a material fact contained in any Registration Statement
under which the sale of such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the Registration
Statement, or any amendment or supplement to the Registration Statement, or arise out of or are
based upon any omission or the alleged omission to state a material fact required to be stated
therein or necessary to make the statement therein not misleading, if the statement or omission was
made in reliance upon and in conformity with information furnished in writing to the Company by
such selling holder expressly for use therein, and shall reimburse the Company, its directors and
officers, and each such controlling person for any legal or other expenses

11

 

reasonably incurred by any of them in connection with investigation or
defending any such loss, claim, damage, liability or action. Each selling
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 selling holder.

     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 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) 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
fees and expenses of such counsel to be paid by such Indemnifying Party if,
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.

     4.4.1. If the indemnification provided for in the foregoing Sections
4.1, 4.2 and 4.3 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

12

 

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.

     4.4.2. 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 4.4.1. 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 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 of Registrable Securities 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.

     5. UNDERWRITING AND DISTRIBUTION.

     5.1 Rule 144. The Company covenants that it shall file any reports
required to be filed by it under the Securities Act and the Exchange Act
and shall take such further action as the holders of Registrable Securities
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 Rules may be amended from
time to time, or any similar Rule or regulation hereafter adopted by the
Commission.

     6. MISCELLANEOUS.

     6.1 Other Registration Rights. The Company represents and warrants
that no person, other than a holder of the Registrable Securities, has any
right to require the Company to register any shares of the Company’s share
capital for sale or to include shares of the Company’s share capital in any
registration filed by the Company for the sale of shares of share capital
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 of Registrable
Securities hereunder may be freely assigned or delegated by such holder of
Registrable Securities in conjunction with and to the extent of any
transfer of Registrable

13

 

Securities by any such holder. This Agreement and the provisions
hereof shall be binding upon and shall inure to the benefit of each of the
parties and their respective successors and the permitted assigns of the
Investor or holder of Registrable Securities or of any assignee of the
Investor or holder of Registrable Securities. 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 4 and this Section 6.2.

     6.3 Notices. All notices, demands, requests, consents, approvals or
other communications (collectively, “Notices”) required or permitted to be
given hereunder or which are given with respect to this Agreement shall be
in writing and shall be personally served, delivered by reputable air
courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex or facsimile, 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 service or transmission
if personally served or transmitted by telegram, telex or facsimile;
provided, that if such service or transmission is not on a business day or
is after normal business hours, then such notice shall be deemed given on
the next business day. Notice otherwise sent as provided herein shall be
deemed given on the next business day following timely delivery of such
notice to a reputable air courier service with an order for next-day
delivery.

To the Company:

Cross Shore Acquisition Corporation

c/o Glencoe Capital

222 West Adams Street

Suite 100

Chicago, Illinois 60606

Attn: Chairman

with a copy to:

Fried, Frank, Harris, Shriver & Jacobson (London) LLP

99 City Road

London

EC1Y 1AX

Attention: Karen C. Wiedemann

To an Investor, to the address of such investor on the books of the Company,

with a copy to:

Sunrise Securities Corp.

641 Lexington Avenue, 25th Floor

New York, New York 10022

Attn: Sheldon Gloldman

14

 

     6.4
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 and be valid and
enforceable.

     6.5 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.

     6.6 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.

     6.7 Modifications and Amendments. No amendment, modification or
termination of this Agreement shall be binding upon any party unless
executed in writing by such party.

     6.8 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.

     6.9 Waivers and Extensions. Any party to this Agreement may waive any
right, breach or default which such party has the right to waive, provided
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.

     6.10 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 Investor or any other holder of Registrable
Securities 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 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.

15

 

     6.11 Governing Law. This Agreement shall be governed by, interpreted
under, and construed in accordance with the internal laws of the State of
New York applicable to agreements made and to be performed within the State
of New York, without giving effect to any choice-of-law provisions thereof
that would compel the application of the substantive laws of any other
jurisdiction.

     6.12
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 Investor in the
negotiation, administration, performance or enforcement hereof.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

16

 

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

	 	 	 	 	 	 	 
	 	 	 	 	CROSS SHORE ACQUISITION CORPORATION
	 	 	 	 	A Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dennis Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	INVESTORS:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Stephen Stonefield	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	STEPHEN STONEFIELD	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Jon Burgman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	JON BURGMAN	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Dennis Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	CSA I, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Dennis Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	CSA II, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Dennis Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	CSA III, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Marcia Kucher	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	SUNRlSE SECURITIES CORP.

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