##### 



EXHIBIT 10.23




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##### 



DEFINITIONS AND TERMS
 Section 1.1
    
    Certain Definitions
    
    
    1Section 1.2
    
    Other Terms
    
    
    9Section 1.3
    
    Other Definitional Provisions
    
    
    9
  PURCHASE AND SALE OF SHARES
 Section 2.1
    
    Purchase and Sale of the Shares
    
    
    10Section 2.2
    
    Conveyance
    
    
    10Section 2.3
    
    Consideration
    
    
    10
  CLOSING
 Section 3.1
    
    Closing
    
    
    11Section 3.2
    
    Deliveries by Seller and the Companies
    
    
    11Section 3.3
    
    Deliveries by Purchaser
    
    
    13Section 3.4
    
    Simultaneous Transactions
    
    
    14Section 3.5
    
    Purchase Price Adjustment
    
    
    14Section 3.6
    
    Allocation of Purchase Price
    
    
    17
  REPRESENTATIONS AND WARRANTIES OF SELLER
 Section 4.1
    
    Organization
    
    
    17Section 4.2
    
    Authority; Binding Effect
    
    
    17Section 4.3
    
    Title to Shares
    
    
    18Section 4.4
    
    No Violation
    
    
    18Section 4.5
    
    Absence of Litigation
    
    
    18




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WITH RESPECT TO THE COMPANIES
 Section 5.1
    
    Organization and Qualification
    
    
    18Section 5.2
    
    Financial Statements; Receivables; Inventories
    
    
    19Section 5.3
    
    Absence of Certain Changes or Events
    
    
    19Section 5.4
    
    Ownership of Stock; Capitalization
    
    
    20Section 5.5
    
    Consents and Approvals; No Violation
    
    
    21Section 5.6
    
    Absence of Litigation
    
    
    21Section 5.7
    
    Related Party Agreements
    
    
    21Section 5.8
    
    Permits; Compliance with Laws
    
    
    21Section 5.9
    
    Employee Benefit Plans; ERISA
    
    
    22Section 5.10
    
    Material Contracts
    
    
    23Section 5.11
    
    Personal Property
    
    
    25Section 5.12
    
    Environmental Matters
    
    
    25Section 5.13
    
    Real Property
    
    
    26Section 5.14
    
    Labor Matters
    
    
    27Section 5.15
    
    Insurance
    
    
    28Section 5.16
    
    Intellectual Property
    
    
    28Section 5.17
    
    Taxes
    
    
    28Section 5.18
    
    Products Liability
    
    
    31Section 5.19
    
    Brokers
    
    
    31Section 5.20
    
    Corporate Records
    
    
    31Section 5.21
    
    Sufficiency of Assets and Intercompany Services
    
    
    31Section 5.22
    
    Material Customers and Suppliers
    
    
    31Section 5.23
    
    Employees; Employment Contracts
    
    
    32Section 5.24
    
    No Undisclosed Liabilities
    
    
    32Section 5.25
    
    Disclaimer of Warranties
    
    
    32
  REPRESENTATIONS AND WARRANTIES OF PURCHASER
 Section 6.1
    
    Organization
    
    
    33Section 6.2
    
    Authority; Binding Effect
    
    
    33
 ii




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Section 6.3
    
    No Violation; Consents and Approvals
    
    
    33Section 6.4
    
    Acquisition of Shares for Investment
    
    
    33Section 6.5
    
    Absence of Litigation
    
    
    34Section 6.6
    
    Financing
    
    
    34Section 6.7
    
    Brokers
    
    
    34Section 6.8
    
    Investigation
    
    
    34
  COVENANTS
 Section 7.1
    
    Conduct of Business
    
    
    35Section 7.2
    
    Commercially Reasonable Efforts
    
    
    37Section 7.3
    
    Consents
    
    
    37Section 7.4
    
    Antitrust Notification
    
    
    37Section 7.5
    
    Further Assurances
    
    
    37Section 7.6
    
    Access to Information; Confidentiality
    
    
    37Section 7.8
    
    Inter-Company Obligations; Affiliate Agreements
    
    
    38Section 7.9
    
    Supplements to Disclosure Schedule
    
    
    38Section 7.10
    
    Access to Books and Records Following the Closing
    
    
    38Section 7.11
    
    Resignations
    
    
    39Section 7.12
    
    Covenant Not To Compete
    
    
    39Section 7.13
    
    Transition Services Agreement
    
    
    40Section 7.14
    
    Patent Assignment
    
    
    40Section 7.15
    
    Public Announcements
    
    
    41Section 7.16
    
    Use of Names
    
    
    41Section 7.17
    
    Employees; Employee Benefits
    
    
    41Section 7.18
    
    Assignment and Assumption of Contracts
    
    
    43Section 7.19
    
    Tax Returns
    
    
    44Section 7.20
    
    Purchasers Due Diligence Reports
    
    
    46Section 7.21
    
    Insurance
    
    
    46
 iii




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CONDITIONS TO CLOSING
 Section 8.1
    
    Mutual Conditions to the Obligations of the Parties
    
    
    46Section 8.2
    
    Conditions to the Obligations of Purchaser
    
    
    47Section 8.3
    
    Conditions to the Obligations of Seller
    
    
    48
  INDEMNIFICATION OBLIGATIONS; SURVIVAL
 Section 9.1
    
    Agreements to Indemnify
    
    
    49Section 9.2
    
    Tax Indemnification
    
    
    50Section 9.3
    
    Sellers Limitation of Liability
    
    
    50Section 9.4
    
    Conditions of Indemnification
    
    
    52Section 9.5
    
    Survival of Representations
    
    
    52
  TERMINATION
 Section 10.1
    
    Termination
    
    
    53Section 10.2
    
    Effect of Termination
    
    
    53Section 10.3
    
    Expense Reimbursement; Breakup Fee
    
    
    54
  MISCELLANEOUS
 Section 11.1
    
    Notices
    
    
    54Section 11.2
    
    Amendment; Waiver
    
    
    55Section 11.3
    
    Assignment
    
    
    55Section 11.4
    
    Entire Agreement
    
    
    56Section 11.5
    
    Fulfillment of Obligations
    
    
    56Section 11.6
    
    Parties in Interest
    
    
    56Section 11.7
    
    Expenses
    
    
    56Section 11.8
    
    Brokers
    
    
    56Section 11.9
    
    Governing Law; Jurisdiction
    
    
    56
 iv




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Section 11.10
    
    Counterparts
    
    
    56Section 11.11
    
    Headings
    
    
    56Section 11.12
    
    Further Assurances
    
    
    56Section 11.13
    
    Specific Performance
    
    
    57Section 11.14
    
    Knowledge
    
    
    57Section 11.15
    
    Severability
    
    
    57Section 11.16
    
    No Strict Construction
    
    
    57Section 11.17
    
    UIA Form 1027
    
    
    57
 v




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LIST OF EXHIBITS AND SCHEDULES
 EXHIBITSExhibit A
    
    Accounting PrinciplesExhibit B
    
    Calculation of Base AmountExhibit C
    
    Resolution of Stockholders of the Companies re Officers and DirectorsExhibit D
    
    Financial StatementsExhibit E
    
    Form of Transition Services AgreementExhibit F
    
    Form of Patent AssignmentExhibit G
    
    Form of Escrow AgreementExhibit H
    
    Form of Amendment to the Alcoa License Agreement
 SCHEDULES2.1
    
    Ferndale Assets3.5(g)
    
    Property Tax Prorations3.6
    
    Allocation of Purchase Price4.3
    
    Title to Shares4.4
    
    No Violation4.5
    
    Absence of Litigation: Sellers5.1
    
    Organization and Qualification5.2(a)
    
    Financial Statements and Inventories: Accounting Principles5.2(b)
    
    Financial Statements and Inventories: Receivables5.3
    
    Absence of Certain Changes or Events5.4(a)
    
    Ownership of Stock; Capitalization: Issued and Outstanding Capital Stock5.4(b)
    
    Ownership of Stock; Capitalization: Options and Warrants5.4(c)
    
    Ownership of Stock; Capitalization: Liens on Shares5.5(a)
    
    Consents and Approvals; No Violation: Consents5.5(b)
    
    Consents and Approvals; No Violation: Conflicts5.6
    
    Absence of Litigation: Companies5.7
    
    Related Party Agreements5.8
    
    Permits; Compliance With Laws5.9(a)
    
    Employee Benefit Plans; ERISA: List of Plans5.9(c)
    
    Employee Benefit Plans; ERISA: ERISA Plan Assets5.9(g)
    
    Employee Benefit Plans; ERISA: Retiree Medical Plans5.9(h)
    
    Employee Benefit Plans; ERISA: Retention Agreements5.10(a)
    
    Material Contracts5.10(b)
    
    Material Contracts: Breach5.11
    
    Personal Property5.12(a)
    
    Environmental Matters: Compliance and Permits5.12(b)
    
    Environmental Matters: Claims and Releases5.12(c)
    
    Environmental Matters: Hazardous Materials5.12(e)
    
    Environmental Claims




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SCHEDULES5.13(a)
    
    Real Property: Owned Realty5.13(b)
    
    Real Property: Liens5.14
    
    Labor Matters5.15
    
    Insurance5.16
    
    Intellectual Property5.17
    
    Taxes5.18
    
    Products Liability5.20
    
    Corporate Records5.21
    
    Sufficiency of Assets and Intercompany Services5.22
    
    Material Customers and Suppliers5.23
    
    Employees; Employment Contracts5.24
    
    No Undisclosed Liabilities6.3(b)
    
    No Violation; Consents and Approvals: Consents7.1
    
    Conduct of Business7.8
    
    Intercompany Obligations; Affiliate Agreements7.11
    
    Resignations7.14
    
    Patent Assignment7.17(a)
    
    Continuing Ferndale Employees7.17(f)
    
    Continuing Employees Receiving Short-Term Disability Benefits7.18
    
    Assignment and Assumption of Contracts8.1(c)
    
    Consents
 vii




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Agreement Purchaser HLI Opco HLI Suspension
   HLI Bristol HLI Montague
 Business Plants
 Stock
Purchase
    DEFINITIONS AND TERMS
  Accounting Firm
 1




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Accounting Principles Exhibit A
 Affiliate control controlled by under common control with
 Affiliate Agreements
 Agreement
 Balance Sheets
 Base Amount Exhibit B Exhibit B
 Business
 Business Day
 Capital Expenditures Adjustment
 Capital Expenditures Budget
 Closing
 Closing Date
 Closing Working Capital
 Code
 Companies
 2




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Confidentiality Agreement
 Consents
 Continuing Employees
 Continuing Ferndale Employees
 Contracts
 Credit Agreement
 Damages
 Environmental Claim
 Environmental Laws
 ERISA
 ERISA Affiliate
 3




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ERISA Plans
 Escrow Agent
 Escrow Agreement
 Escrow Amount
 Estimated Closing Working Capital
 Excepted Seller Claims
 Final Closing Working Capital
 Financial Statements
 GAAP
 Governmental Authority
 HLI Bristol
 HLI Bristol Shares
 HLI Montague
 HLI Montague Shares
 HLI Suspension
 Hazardous Materials
 HSR Act
 Indebtedness
 4




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Indenture 1 2
 Initial Purchase Price
 Intellectual Property
 IRS
 Knowledge of Purchaser
 Knowledge of Seller
 Labor Laws
 Laws
 Liens
 Litigation
 Material Adverse Effect
 Material Contracts
 Multiemployer Plan
 Net Sales
 5




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Non-Production Inventory
 Non-Production Inventory Shortfall
 Owned Realty
 Patent Assignment
 Permits
 Permitted Liens Schedule 5.11 Schedule 5.13(b) Schedule 5.11 Schedule 5.13(b) Schedule 5.17
 Person
 Plans
 Plants
 Pre-Closing Tax Period
 Purchase Price Adjustment
 Purchaser
 Purchaser Group
 6




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Purchaser Plans
 Purchasers Closing Schedule
 Purchasers Savings Plan
 Related Party Agreements
 Release
 Schedule
 Securities Act
 Seller
 Seller Claims
 Sellers Business
 Sellers Dispute Notice
 Sellers Estimated Closing Schedule
 Sellers Plans
 Sellers Savings Plan
 Shares
 Stock Purchase
 Tax Law
 Tax Return
 7




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Taxes
 Threshold Indemnification Amount
 Transition Services Agreement
 WARN Act
 Wenzler Lease
 Wenzler Montague Debt
 Wenzler Montague Equipment
 Working Capital
 8




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hereof herein hereto hereunder hereinafter
  dollars $
 including
  PURCHASE AND SALE OF SHARES
 9




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Schedule 2.1
    10




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Sellers
Estimated Closing Schedule Estimated Closing Working Capital
  CLOSING
 Closing Closing Date
   Exhibit C Schedule 7.11
 11




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Schedule 7.18
   Schedule 7.11
 Schedule 7.8,
 Schedule 7.8
    12




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Schedule 7.18
   13




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Purchase Price Adjustment Purchasers Closing Schedule Closing Working Capital Sellers Dispute
Notice
 14




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Accounting Firm
 Final Closing Working Capital.
      15




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Schedule 3.5(g)
 16




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Schedule 3.6
  REPRESENTATIONS AND WARRANTIES OF SELLER
    17




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Schedule 4.3
 Schedule 4.4
 Schedule 4.5
  WITH RESPECT TO THE COMPANIES
  Schedule 5.1
 18




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Exhibit D Financial Statements Schedule 5.2(a) Balance Sheets
 Schedule 5.2(b)
  Schedule
5.3
 19




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Schedule 5.4(a) Schedule 5.4(a)
 Schedule 5.4(b)
 Schedule 5.4(c)
 20




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Consents Governmental Authority Schedule 5.5(a)
 Schedule 5.5(a) Schedule 5.5(b)
 Schedule 5.6 Litigation
 Schedule 5.7 Related Party Agreements
  21




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Permits Schedule 5.8
  Schedule 5.9(a) Plans Schedule 5.9(a) ERISA Plans
  Schedule 5.9(c)
 22




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Schedule 5.9(g)
 Schedule 5.9(h)
  Schedule 5.10(a) Contracts
 23




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Schedule 5.9(a) Schedule 5.7
            24




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Schedule 5.10 Material Contracts Schedule 5.10(b)
 Schedule 5.11 Schedule 5.11
  Schedule 5.12(a) Schedule 5.12(a) Schedule 5.12(a)
 Schedule 5.12(b)
 25




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Schedule 5.12(c)
  Schedule 5.12(e)
  Schedule 5.13(a) Owned Realty Schedule 5.13(a) Schedule 5.13(a)
 Schedule 5.13(a) Schedule 5.13(b)
 26




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Schedule 5.14 Labor Laws WARN Act
 27




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Schedule 5.15 Schedule 5.15
 Intellectual
Property Schedule 5.16 Schedule
5.16 Schedule 5.16
 Schedule 5.17
   28




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29




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30




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Schedule 5.18 Schedule 5.18
  Schedule 5.20
 Schedule 5.21 Schedule 5.21
 Schedule 5.22 Schedule 5.22 Schedule 5.22
 31




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Schedule 5.23 Schedule 5.23
 Schedule 5.24
   REPRESENTATIONS AND WARRANTIES OF PURCHASER
  32




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Schedule 6.3(b)
  33




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COVENANTS
 34




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Schedule 7.1 Schedule 7.1
       35




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36




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37




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Schedule 7.8 Affiliate Agreements
   38




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Schedule 7.11
  th th
 39




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Exhibit E Transition Services Agreement
 Schedule 7.14
 40




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Exhibit F Patent Assignment
    Schedule 7.17(a) Continuing Ferndale
Employees
 Purchaser
Plans
 41




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provided however Seller Plans
  Sellers
Savings Plan Purchasers Savings Plan
 42




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Schedule 7.17(f)
 Schedule 7.18
 43




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Tax Periods Ending on or Before the Closing Date
 Tax Periods Beginning Before and Ending After the Closing Date
 44




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Cooperation on Tax Matters
    Tax Sharing Agreements
 Tax Positions
 45




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CONDITIONS TO CLOSING
  No Injunctions or Legal Prohibitions provided however
 HSR Act
 Consents
 46




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Credit Agreement Consent
  Representations and Warranties
 Performance
 No Material Adverse Effect
 Officers Certificate
 Changes to Schedules
 Termination of Financing Commitment Letters
 Trimarc Lease
 47




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Merrill Lynch Lease
  Representations and Warranties
 Performance
 Officers Certificate
 Trimarc Lease
 Merrill Lynch Lease
 Merrill Lynch Guaranty
 48




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INDEMNIFICATION OBLIGATIONS; SURVIVAL
  Purchaser Group Damages
  49




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nd
 Excepted Seller Claims Threshold Indemnification Amount
  50




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Exhibit G Escrow Agreement
    51




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52




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TERMINATION
        53




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MISCELLANEOUS
 provided
  
  
 54




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st
  
   provided however
 55




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56




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[SIGNATURE PAGE FOLLOWS]
 57




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Purchaser
    
    SellerDIVERSIFIED MACHINE, INC.
    
    HLI OPERATING COMPANY, INC.By:
    
    /s/ Bruce Swift
    
    By:
    
    /s/ John A. SalvetteName: Bruce Swift
    
    
    
    Name: John A. SalvetteTitle: CEO
    
    
    
    Title: Vice President, Business DevelopmentHLI SUSPENSION HOLDING COMPANY, INC.By:
    
    /s/ John A. SalvetteName: John A. SalvetteTitle: Vice President, Business Development
 58