Document:

exv10w1

 

EXHIBIT 10.1

TERMINATION AND RELEASE

     THIS TERMINATION AND RELEASE (the “Agreement”), effective as of this 15th day
of May, 2007, is made by and among FSI International, Inc., a Minnesota corporation (“FSI”); Mitsui
& Co., Ltd., a company organized under the laws of Japan (“MBK”); Cholorine Engineers Corp. Ltd, a
company organized under the laws of Japan (“CEC”); MBK Project Holdings Ltd., a company organized
under the laws of Japan (“MPH”); and m•FSI Ltd., a company organized under the laws of Japan
(“m•FSI”).

     WHEREAS, FSI, MBK, CEC and MPH are parties to that certain agreement among the shareholders of
m•FSI originally dated June 5, 1991, as such agreement has been amended (the “Shareholders
Agreement”);

     WHEREAS, in connection with the Shareholders Agreement, m•FSI and FSI entered into the
following additional agreements: (i) an agreement dated September 17, 2004, as amended, under which
m•FSI appointed FSI as a distributor of its products (the “m•FSI Distribution Agreement); (ii) an
agreement dated June 5, 1991, as amended, under which FSI appointed m•FSI as a distributor of its
products (the “FSI Distribution Agreement”); (iii) an agreement dated September 17, 2004, as
amended, pursuant to which m•FSI granted to FSI a license under certain m•FSI intellectual property
and technology (the “m•FSI License Agreement”); and (iv) an agreement dated September 17, 2004, as
amended, pursuant to which FSI granted m•FSI a license under certain FSI intellectual property
rights and technology (the “FSI License Agreement”);

     WHEREAS, in connection with the Shareholders Agreement, m•FSI and CEC entered into an
agreement dated August 14, 1991, as amended, pursuant to which CEC granted m•FSI a license under
certain CEC intellectual property rights and technology (the “CEC License Agreement”);

     WHEREAS, FSI, MBK, and CEC have entered to an agreement of even date herewith with certain
third parties relating to the sale of all or part of the shares in m•FSI held by FSI, MBK, CEC and
MPH (the “Stock Purchase Agreement”) and, as a result, have agreed to terminate the Shareholders
Agreement and FSI has agreed to enter into a new shareholders agreement with the buyers and other
new shareholders of m•FSI to reflect the changed ownership structure and the various rights and
obligations of the new shareholders of m•FSI as a result thereof; and

     WHEREAS, in conjunction with the closing of the Stock Purchase Agreement and the execution of
the new shareholders agreement, FSI and m•FSI desire to enter into a new distributorship agreement
under which m•FSI will distribute certain of FSI’s products in Japan and the parties hereto desire
to terminate the agreements referenced in the second and third paragraph of this Preamble.

     NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

 

     1. Termination of Agreements. The parties hereto agree that the following agreements
shall be terminated:

           (a) FSI, MBK, CEC and MPH hereby agree that the Shareholders Agreement shall be terminated.

           (b) FSI and m•FSI hereby agree that the (i) m•FSI Distribution Agreement, (ii) the FSI
Distribution Agreement, (iii) the m•FSI License Agreement and (iv) the FSI License Agreement shall
be terminated.

           (c) CEC and m•FSI hereby agree that the CEC License Agreement shall be terminated.

All of the above referenced agreements are referred to herein as the “Terminated Agreements”. The
parties to the above agreements further acknowledge and agree that, except as set forth in Section
2 below, each and every obligation of any party under any of the Terminated Agreements has been
completely discharged and that such Terminated Agreement no longer have any force or effect.

     2. Reservation of Rights and Continuing Obligations. Notwithstanding the termination
of the Terminated Agreements, the parties acknowledge and agree that:

           (a) FSI reserves its right to enforce and seek compensation under the terms and conditions of
Article 26 of the Shareholders Agreement, No Competition, in the event that it is
determined that CEC shall have breached such Article through the development and collaboration with
Toshiba of a process for the use of electrolyzed sulfuric acid for resist stripping applications in
direct competition with FSI’s ZETA ViPR products, and FSI’s ability to enforce its rights under
such Article 26 shall survive termination of the Shareholders Agreement for a period of one (1)
year from the date of this Agreement; and

           (b) FSI shall remain obligated to honor all warranties and duties to indemnify m•FSI in
respect of its products and spare parts provided to m•FSI in accordance with the terms of the FSI
Distribution Agreement until the applicable warranty periods in respect of such products and spare
parts sold to m•FSI under the FSI Distribution Agreement all expire.

     3. Compensation for Loss of Rights. In consideration for the termination hereunder of
the m•FSI License Agreement and the m•FSI Distribution Agreement and the consequent loss by FSI of
rights under m•FSI’s technology and the right distribute m•FSI’s products outside of Japan, m•FSI
agrees to pay to FSI the sum of Seventy-three Million Yen (¥73,000,000) by wire transfer of
immediately available funds contemporaneously with the execution of this Agreement.

     4. Effective Date. This Agreement shall take effect upon the Closing of the Stock
Purchase Agreement and the transfer by FSI, CEC and MBK of their shares in m•FSI to the buyers
under the terms of the Stock Purchase Agreement.

     5. Release. Except as expressly set forth in Section 2 above, each of the parties
hereto, acting for itself, its insurers, its successors and assigns, and each of them, does hereby
release and forever discharge each of the other parties hereto and their respective shareholders,
partners, members, directors, officers, employees, agents, consultants, successors and assigns from
any and all liabilities, claims, demands and causes of action,

 

 

either in law or in equity, known or unknown, liquidated or unliquidated, which have arisen or may
arise out of or are in any way connected with the Terminated Agreements on account of any act,
omission, event, occurrence, representation, warranty, failure, default or breach, actual or
asserted, of any party hereto or its officers, employees, agents, consultants or representatives on
or prior to the date of this Agreement.

     IN WITNESS WHEREOF, each party has executed this Agreement as of the day and year first above
written.

	 	 	 
	FSI INTERNATIONAL INC	 	
MITSUI & CO., LTD.
	By:                   /s/ John C. Ely
 
	 	
By:   /s/ Koji ARAI
 

	Name:                  John C. Ely
 
	 	
Name:     Koji ARAI
 

	Title:                VP Sales/Service
 
	 	
Title: General Manager

           Infrastructure & Environment Project

           Development Dept. 

           First Projects Development Div.

	 
	CHLORINE ENTINEERS CORP., LTD	 	
MBK PROJECT HOLDINGS LTD.
	By:                   /s/ Yoshinori KATO
 
	 	
By:     /s/ Masato SHIODE
 

	Name:                 Yoshinori KATO
 
	 	
Name:  Masato SHIODE
 

	Title:                President
 
	 	
Title:              President
 

	 	 	 	 	 
	 	m•FSI LTD.

 	 
	 	By:  	/s/ Hideki Kawai
 	 
	 	 	Name: Hideki Kawai 	 	 
	 	 	Title: President & CEOexv10w2

 

Exhibit 10.2

STOCK PURCHASE AGREEMENT

by and among

FSI INTERNATIONAL, INC.,

MBK PROJECT HOLDINGS LTD.,

CHLORINE ENGINEERS CORP. LTD.

YASUDA ENTERPRISE DEVELOPMENT III, LIMITED PARTNERSHIP

MIZUHO CAPITAL CO., LTD.

MR. HIDEKI KAWAI

MR. TAKANORI YOSHIOKA

and

MR. SATOSHI SHIKAMI

May 15, 2007

 

 

	 	 	 	 	 	 	 	 	 
	1.

	    	Definitions
	 	 	1	 
	2.

	 	Sale And Purchase Of Stock
	 	 	5	 
	3.

	 	The Closing
	 	 	6	 
	 

	 	3.1	 	Closing
	 	 	6	 
	 

	 	3.2	 	Deliveries
	 	 	6	 
	 

	 	3.3	 	Consummation of Closing
	 	 	6	 
	4.

	 	REPRESENTATIONS AND
WARRANTIES OF THE SELLERS
	 	6	 
	 

	 	4.1	 	Corporate Authority of Seller
	 	 	6	 
	 

	 	4.2	 	Compliance with Laws and Other Instruments; No Conflict
	 	 	7	 
	 

	 	4.3	 	Consents and Approvals
	 	 	7	 
	 

	 	4.4	 	Litigation
	 	 	7	 
	 

	 	4.5	 	Share Ownership
	 	 	7	 
	 

	 	4.6	 	Finders and Brokers
	 	 	7	 
	 

	 	4.7	 	Good Title
	 	 	8	 
	 

	 	4.8	 	Corporate Authority of the Company
	 	 	8	 
	 

	 	4.9	 	Capitalization of Company
	 	 	8	 
	 

	 	4.10	 	Title to Assets
	 	 	9	 
	 

	 	4.11	 	Taxes
	 	 	9	 
	 

	 	4.12	 	Financial Statements
	 	 	9	 
	 

	 	4.13	 	Absence of Undisclosed Liabilities and Obligations
	 	 	9	 
	 

	 	4.14	 	Absence of Certain Changes
	 	 	9	 
	 

	 	4.15	 	Indebtedness for Borrowed Money
	 	 	10	 
	 

	 	4.16	 	Condition of Tangible Assets
	 	 	10	 
	 

	 	4.17	 	Intellectual Property
	 	 	10	 
	 

	 	4.18	 	Employment Arrangements; Labor Relations
	 	 	10	 
	 

	 	4.19	 	Licenses, Compliance with Laws, Regulations, etc
	 	 	10	 
	 

	 	4.20	 	Contracts
	 	 	11	 
	 

	 	4.21	 	Insurance
	 	 	11	 
	 

	 	4.22	 	Warranty; Product Liability
	 	 	11	 
	 

	 	4.23	 	Environmental Matters
	 	 	12	 
	 

	 	4.24	 	No Relationship with Anti-Social Organizations
	 	 	12	 
	 

	 	4.25	 	Disclosure of Information
	 	 	12	 
	5.

	 	REPRESENTATIONS AND
WARRANTIES OF THE BUYERS
	 	12	 
	 

	 	5.1	 	Authority; Capacity
	 	 	12	 
	 

	 	5.2	 	Compliance with Laws and Other Instruments; No Conflict
	 	 	13	 

-2-

 

	 	 	 	 	 	 	 	 	 
	 

	 	5.3	 	Consents and Approvals
	 	 	13	 
	 

	 	5.4	 	Litigation
	 	 	13	 
	 

	 	5.5	 	Investment Representations
	 	 	13	 
	 

	 	5.6	 	Finders and Brokers
	 	 	13	 
	 

	 	5.7	 	Investigation and Evaluation
	 	 	13	 
	6.

	 	COVENANTS
	 	 	14	 
	 

	 	6.1	 	Obligations of the Parties before Closing
	 	 	14	 
	 

	 	6.2	 	No Negotiation
	 	 	14	 
	 

	 	6.3	 	Conduct Business in Ordinary Course
	 	 	14	 
	 

	 	6.4	 	Confidentiality and Publicity
	 	 	14	 
	 

	 	6.5	 	Sellers’ Representations and Warranties; Knowledge
	 	 	16	 
	7.

	 	CONDITIONS PRECEDENT TO
OBLIGATIONS OF THE BUYER
	 	 	16	 
	 

	 	7.1	 	Representations and Warranties; Compliance with this Agreement
	 	 	16	 
	 

	 	7.2	 	No Judgment or Order
	 	 	16	 
	 

	 	7.3	 	No Litigation
	 	 	16	 
	 

	 	7.4	 	Approvals
	 	 	16	 
	 

	 	7.5	 	Execution
	 	 	17	 
	 

	 	7.6	 	Shares
	 	 	17	 
	 

	 	7.7	 	Financing
	 	 	17	 
	 

	 	7.8	 	Termination of Existing Shareholders Agreement and Existing
Distribution Agreement
	 	 	17	 
	 

	 	7.9	 	No Material Adverse Change
	 	 	17	 
	8.

	 	CONDITIONS PRECEDENT TO
OBLIGATIONS OF THE SELLERS
	 	 	17	 
	 

	 	8.1	 	Representations and Warranties; Compliance with this Agreement
	 	 	17	 
	 

	 	8.2	 	No Judgment or Order
	 	 	17	 
	 

	 	8.3	 	No Litigation
	 	 	17	 
	 

	 	8.4	 	Approvals
	 	 	18	 
	 

	 	8.5	 	Execution
	 	 	18	 
	 

	 	8.6	 	Dividend
	 	 	18	 
	9.

	 	TERMINATION OF AGREEMENT
	 	 	18	 
	 

	 	9.1	 	Termination
	 	 	18	 
	 

	 	9.2	 	Effect of Termination
	 	 	18	 
	10.

	 	INDEMNIFICATION
	 	 	19	 
	 

	 	10.1	 	Indemnification Obligation
	 	 	19	 
	 

	 	10.2	 	Limitations
	 	 	19	 

-3-

 

	 	 	 	 	 	 	 	 	 
	 

	 	10.3	 	Survival of Indemnification Obligation; Limitations
	 	 	20	 
	 

	 	10.4	 	Third Party Claims
	 	 	20	 
	 

	 	10.5	 	Indemnification by Buyers
	 	 	20	 
	 

	 	10.6	 	Sole and Exclusive Remedy
	 	 	21	 
	 

	 	10.7	 	Tax Adjustment
	 	 	21	 
	11.

	 	MISCELLANEOUS
	 	 	21	 
	 

	 	11.1	 	Governing Law
	 	 	21	 
	 

	 	11.2	 	Headings
	 	 	21	 
	 

	 	11.3	 	Notices and Other Communications
	 	 	21	 
	 

	 	11.4	 	Amendment of Agreement; No Waiver
	 	 	23	 
	 

	 	11.5	 	Severability
	 	 	23	 
	 

	 	11.6	 	Fees and Expenses
	 	 	23	 
	 

	 	11.7	 	Entire Agreement
	 	 	23	 
	 

	 	11.8	 	Successors and Assigns
	 	 	23	 
	 

	 	11.9	 	English Language
	 	 	23	 
	 

	 	11.10	 	Counterparts
	 	 	24	 
	Exhibit A
	 	Schedule of Exceptions	 	 	 
	Exhibit B
	 	Articles of Incorporation of Company	 	 	 
	Schedule 3.2
	 	Certificate of board resolution of the company approving
share transfer contemplated under the Agreement	 	 	 	 

-4-

 

STOCK PURCHASE AGREEMENT

     This STOCK PURCHASE AGREEMENT (the “Agreement”), is entered into as of May 15, 2007 by
and among FSI INTERNATIONAL, INC., a Minnesota corporation (“FSI”), CHLORINE ENGINEERS
CORP. LTD., a Japanese corporation (“CEC”), and MBK PROJECT HOLDINGS LTD., a Japanese
corporation (“MPH”) (FSI, CEC and MPH, each individually, a “Seller” and,
collectively, the “Sellers”), on one hand, and The Yasuda Enterprise Development III,
Limited Partnership, a Japanese fund (“Yasuda”), Mizuho Capital Co., Ltd., a Japanese
corporation (“Mizuho”), Mr. Hideki Kawai, a Japanese citizen and resident (“Mr.
Kawai”), Mr. Takanori Yoshioka, a Japanese citizen and resident (“Mr. Yoshioka”), and
Mr. Satoshi Shikami, a Japanese citizen and resident (“Mr. Shikami”) (Yasuda, Mizuho, Mr.
Kawai, Mr. Yoshioka and Mr. Shikami each individually, a “Buyer” and, collectively, the
“Buyers”; and Yasuda and Mizuho, each individually a “Fund Buyer” and collectively,
the “Fund Buyers” and Mr. Kawai, Mr. Yoshioka and Mr. Shikami, each individually an
“Individual Buyer” and collectively, the “Individual Buyers”) on the other hand.
The Sellers and the Buyers are also referred to herein each individually as a “Party” and
collectively as the “Parties.”

RECITALS

     WHEREAS, the Sellers currently own nine thousand (9,000) shares of common stock (the
“Shares”) of mŸFSI Ltd., a Japanese corporation (the “Company”), and desire
to sell certain of the Shares (the “Purchased Shares”) on the terms contemplated herein;
and

     WHEREAS, the Buyers desire to purchase from the Sellers, all of the Purchased Shares, subject
to the terms and conditions set forth herein.

     ACCORDINGLY, the Parties agree as follows:

1. Definitions

     1.1 “Affiliate” means, as to any Person, (a) with respect to an individual: (i) each
Member of the Immediate Family of such Person; (ii) any Person that is directly or indirectly
controlled (as defined below in this definition) by such individual or one or more Members of the
Immediate Family of such individual; and (iii) any Person with respect to which such individual or
one or more Members of the Immediate Family of such individual serves as a director, officer,
partner, executor, or trustee (or in a similar capacity); and (b) with respect to a Person other
than an individual, any Person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the entity specified. For purposes
of this Agreement, “control” of a person means the possession, directly or indirectly, of the power
to direct or cause the direction of its management or policies, whether through the ownership of
voting securities or other equity interests, by Contract or otherwise.

     1.2 “Agreement” is defined in the preamble.

     1.3 “Ancillary Agreements” means the New Shareholders Agreement, the New Distribution
Agreement, the Management Engagement Agreement and other agreements

-5-

 

reasonably requested by Buyers for purposes of effecting the transactions contemplated hereby.

     1.4 “Applicable Law” means, as to any Person, any statute, law, rule, regulation,
directive, treaty, judgment, order, decree or injunction of any Governmental Entity that is
applicable to or binding upon such Person or any of its properties or to which such Person or any
of its properties is subject.

     1.5 “Articles” means the Company’s articles of incorporation (teikan) as amended to
date.

     1.6 “Business Day” means any day other than a Saturday or Sunday or other day on which
commercial banks in Tokyo and New York are authorized or required by law to close.

     1.7 “Buyer” and “Buyers” are defined in the preamble.

     1.8 “CEC” is defined in the preamble.

     1.9 “Closing” is defined in Section 3.1.

     1.10 “Closing Date” is defined in Section 3.1.

     1.11 “Closing Payment” is defined in Section 3.2.

     1.12 “Confidential Information” is defined in Section 6.4(a).

     1.13 “Constitutional Documents” means, as applicable, articles of incorporation,
bylaws, certificate or corporate registration (tokibo-tohon), board of directors regulations, and
board of statutory auditors regulations.

     1.14 “Contracts” means contracts, agreements, commitments or binding understandings,
whether written or oral.

     1.15 “Contractual Obligation” means, as to any Person, any provision of any security
issued by such Person or of any agreement, undertaking, contract, indenture, mortgage or other
instrument to which such Person is a party or by which it or any of its properties are bound.

     1.16 “Employees” means all employees of the Company and the Subsidiary as of the date
hereof.

     1.17 “Environmental Law” means any law (statutory or common), treaty, rule or
regulation, or determination of a Governmental Entity in Japan, now in effect and applicable to the
Company or the Subsidiary regulating, relating to or imposing liability or standards of conduct
concerning air emissions, water discharges, management of solid or hazardous waste, or otherwise
concerning the protection of the environment.

     1.18 “Existing CEC License Agreement” means the CEC License Agreement pursuant to
which CEC granted the Company a license under certain of its intellectual property and technology
dated as of August 14, 1991, as amended.

-6-

 

     1.19 “Existing FSI Distribution Agreement” means the FSI Exclusive Distributorship
Agreement dated as of June 5, 1991 between FSI and the Company, as amended to date.

     1.20 “Existing FSI License Agreement” means the FSI License Agreement pursuant to
which FSI granted the Company a license under certain of its intellectual property and technology
dated as of September 17, 2004, as amended.

     1.21 “Existing mŸFSI Distribution Agreement” means the mŸFSI Exclusive
Agreement dated as of September 17, 2004 between the Company and FSI, as amended.

     1.22 “Existing mŸFSI License Agreement” means the mŸFSI License Agreement
pursuant to which the Company granted FSI a license under certain of the Company’s intellectual
property and technology dated as of September 17, 2004, as amended.

     1.23 “Existing Shareholders Agreement” means the Shareholders Agreement dated as of
June 5, 1991 among FSI, Mitsui & Co., Ltd. and CEC, as amended.

     1.24 “Facility” means the facilities of the Company and or the Subsidiary located at
(a) Harmony Tower 22nd Floor, Honcho 1 Chome, 32-2, Nakano-ku, Tokyo, Japan, (b) Okayama Research
Park, 5311 Haga, Okayama-city, Okayama, Japan, and (c) 280 Minoridai Matsudo-shi, Chiba 270-2231,
Japan, and “Facilities” means all of them.

     1.25 “Financial Statements” is defined in Section 4.12.

     1.26 “FSI” is defined in the preamble.

     1.27 “Fund Buyer” and “Fund Buyers” are defined in the preamble.

     1.28 “Governmental Entity” means any domestic or foreign government, governmental
entity, court, tribunal, agency, or other regulatory, administrative or judicial agency,
commissioner of organization, and any subdivision, branch or department of any of the foregoing.

     1.29 “Hazardous Substance” means any substance which is listed or defined in any
Environmental Law as hazardous, toxic or dangerous, including, without limitation, polychlorinated
biphenyls (pcbs).

     1.30 “Individual Buyer” and “Individual Buyers” are defined in the preamble.

     1.31 “Intellectual Property” means (i) patents, patent applications and patent
disclosures, including without limitation any reissues, extensions, divisions, continuations, or
continuations-in-part; (ii) trademarks, service marks, trade dress, logos, trade names, and
corporate names copyrights and maskworks and all applications, registrations, applications and
renewals in connection therewith; (iii) copyrights and maskworks and all applications,
registrations and renewals in connection therewith; (iv) trade secrets, confidential information,
know-how, formulas, compositions, manufacturing and production processes and techniques; (v) the
computer programs licensed to the Company or the Subsidiary and used in the business of the Company
or Subsidiary as currently conducted; (vi) all rights as a licensee or authorized user of the
intellectual property of any third party; and (vii) all copies and tangible embodiments of the
foregoing in whatever form or medium; in each case which are material to the conduct of the
Company’s or the Subsidiary’s business.

-7-

 

     1.32 “Japanese GAAP” means generally accepted accounting principles as in effect in
Japan from time to time and consistently applied.

     1.33 “Loss” and “Losses” is defined in Section 10.1.

     1.34 “Liens” is defined in Section 4.10.

     1.35 “Management Engagement Agreement” means the Management Engagement Agreement to be
entered by and between Yasuda, Mizuho and certain management members of the Company, in such form
as mutually agreed by the parties thereto.

     1.36 “Material Adverse Effect” means, with respect to any Person, any event,
occurrence, fact, condition, change, or effect that is or will be materially adverse to the
business (as currently conducted and as proposed to be conducted), operations, prospects, results
of operations, condition (financial or otherwise), properties, or assets (including intangible
assets) of such Person.

     1.37 “Material Contracts” is defined in Section 4.20(a).

     1.38 “Member of the Immediate Family” of a Person who is an individual means a spouse,
parent, child, sibling, mother- or father-in-law, son- or daughter-in-law, and brother- or
sister-in-law of such Person.

     1.39 “Minor Claim Amount” is defined in Section 10.2(a).

     1.40 “Mizuho” is defined in the preamble.

     1.41 “MPH” is defined in the preamble.

     1.42 “Mr. Kawai” is defined in the preamble.

     1.43 “New Distribution Agreement” means the Distribution Agreement to be entered by
and between FSI and the Company, in such form as mutually agreed by FSI, the Company and the
Buyers.

     1.44 “New Shareholders Agreement” means the Shareholders Agreement to be entered by
and between the Buyers and FSI, in such form as mutually agreed by the parties thereto.

     1.45 “Permitted Liens” is defined in Section 4.10.

     1.46 “Person” means any individual, partnership, limited liability company,
corporation, joint stock company, trust, unincorporated association, joint venture, Governmental
Entity, or other entity, whether acting in an individual, fiduciary or other capacity.

     1.47 “Proprietary Rights” is defined in Section 4.17.

     1.48 “Purchase Price” is defined in Section 2.

     1.49 “Remedies Exception” means the performance of a Person’s obligations except to
the extent enforceability may be limited by applicable bankruptcy, insolvency,

-8-

 

reorganization, moratorium or other laws affecting the enforcement of creditors’ rights
generally and by general equitable principles.

     1.50 “Schedule of Exceptions” means the Schedule of Exceptions to the Sellers’
representations and warranties in Section 4, in the form attached hereto as Exhibit A.

     1.51 “Seller” and “Sellers” are defined in the preamble.

     1.52 “Sellers’ Account” and “Sellers’ Accounts” are defined in Section 3.2.

     1.53 “Senior Lenders” is defined in Section 4.15.

     1.54 “Subsidiary” means any corporation, limited liability company, limited
partnership, trust or other entity with respect to which another Person has the power, directly or
indirectly through one or more intermediaries, to vote or direct the voting, whether by contract or
otherwise, of a sufficient number of securities or equity interests in such entity to elect a
majority of the directors, management committee or similar governing body of such entity. When
used without reference to a particular Person, the “Subsidiary” means Harmonix Ltd., the sole
Subsidiary of the Company.

     1.55 “Threshold Amount” is defined in Section 10.2(b).

     1.56 “Transaction Proposal” is defined in Section 6.2.

     1.57 “Yasuda” is defined in the preamble.

     1.58 “Yen” and “¥” means the lawful currency of Japan.

2. Sale And Purchase Of Stock

     Subject to the terms and conditions of this Agreement, at the Closing, each Seller hereby
agrees to sell, convey, transfer, assign and deliver to each Buyer, and such Buyer hereby agrees to
purchase from such Seller, the number of Purchased Shares set forth in the box below applicable to
such Seller and such Buyer (showing such number of Purchased Shares, and the percentage of Company
interest represented by, and Purchase Price apportioned to, such number of Purchased Shares), free
and clear of any Lien. In consideration for the Purchased Shares, the Buyers shall pay to the
Sellers the aggregate purchase price of Two Hundred Fourteen Million Three Hundred Eighty Thousand
Yen (¥214,380,000) as apportioned among the Buyers and the Sellers as below (the “Purchase
Price”).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Seller	 	 	Total for each Buyer	 
	 	 	 	 	 	 	FSI	 	 	CEC	 	 	MPH	 	 	 	 	 	 	 	 	 
	Buyer
	 	Yasuda	 	 	1,003	 	 	 	11.1	%	 	 	1,206	 	 	 	13.4	%	 	 	2,250	 	 	 	25.0	%	 	 	4,459	 	 	 	49.5	%
	 
	 	 	 	 	 	¥30,090,000	 	¥36,180,000	 	¥67,500,000	 	¥133,770,000
	 
	 	Mizuho	 	 	1,553	 	 	 	17.3	%	 	 	201	 	 	 	2.2	%	 	 	0	 	 	 	0	 	 	 	1,754	 	 	 	19.5	%
	 
	 	 	 	 	 	¥46,590,000		¥6,030,000	 	0	 	¥52,620,000
	 
	 	Mr. Kawai	 	 	0	 	 	 	0	 	 	 	633	 	 	 	7.0	%	 	 	0	 	 	 	0	 	 	 	633	 	 	 	7.0	%
	 
	 	 	 	 	 	0	 	¥18,990,000	 	0	 	¥18,990,000
	 
	 	Mr. Yoshioka	 	 	0	 	 	 	0	 	 	 	200	 	 	 	2.2	%	 	 	0	 	 	 	0	 	 	 	200	 	 	 	2.2	%
	 
	 	 	 	 	 	0	 	¥6,000,000		0	 	¥6,000,000

-9-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Seller	 	 	Total for each Buyer	 
	 	 	 	 	 	 	FSI	 	 	CEC	 	 	MPH	 	 	 	 	 	 	 	 	 
	 
	 	Mr. Shikami	 	 	0	 	 	 	0	 	 	 	100	 	 	 	1.1	%	 	 	0	 	 	 	0	 	 	 	100	 	 	 	1.1	%
	 
	 	 	 	 	 	0		¥3,000,000	 	0	 	¥3,000,000
	 
	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	 	 	 	0	 	0	 	0	 	0
	Total for
each Seller
	 	 	 	2,556	 	 	 	28.4	%	 	 	2,340	 	 	 	26.0	%	 	 	2,250	 	 	 	25.0	%	 	 	7,146	 	 	 	79.4	%
	 
	 	 	 	 	 	¥76,680,000	 	¥70,200,000	 	¥67,500,000	 	¥214,380,000

3. The Closing

     3.1 Closing. The closing of the sale and purchase of the Purchased Shares (the
“Closing”) shall take place at the offices of Ito & Mitomi/Morrison & Foerster LLP, AIG
Building, 11th Floor, 1-1-3 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan on May 15, 2007, or at
such other location and time as the Parties may mutually agree upon in writing (the “Closing
Date”).

     3.2 Deliveries. At the Closing, each Seller will deliver to each Buyer one or more
stock certificates representing the number of Purchased Shares to be sold by such Seller to such
Buyer pursuant hereto and the other items set forth in Schedule 3.2, against such Buyer’s
delivery to such Seller of an amount (the “Closing Payment”) equal to the amount set forth
in the applicable box above. Each Buyer shall deliver the Closing Payment by wire transfer of Yen
in immediately available funds to each Seller’s bank account (a “Seller’s Account” and
collectively the “Sellers’ Accounts”) designated in writing by such Seller at least five
(5) Business Days prior to the Closing Date.

     3.3 Consummation of Closing. All acts, deliveries, and confirmations comprising the
Closing shall be deemed to occur simultaneously upon the occurrence of the last act, delivery or
confirmation of the Closing, and none of such acts, deliveries or confirmations shall be effective
unless and until the last of same shall have occurred.

4. REPRESENTATIONS AND WARRANTIES OF THE SELLERS

     Except as otherwise provided herein, each Seller, severally, and not jointly, hereby
represents and warrants the following Section 4 in its entirety to the Fund Buyers and Sections 4.1
through 4.7 to the Individual Buyers, as of the date hereof and as of the Closing Date, except as
set forth in the Schedule of Exceptions; provided that neither MPH nor CEC makes representations
nor warranties set forth in Sections 4.17, 4.22 and 4.23:

     4.1 Corporate Authority of Seller.

     (a) Organization. Such Seller is (i) a corporation duly organized and validly
existing under the laws of its jurisdiction of organization, and (ii) is in good standing
under the laws of its jurisdiction of organization.

     (b) Authority. Such Seller has the requisite corporate power and authority to
enter into and to perform its obligations under this Agreement and the Ancillary Agreements
to which it is or will be a party. The execution, delivery and performance of this
Agreement and the Ancillary Agreements to which it is or will be a party and the
transactions contemplated hereby and thereby have been duly authorized by all necessary
proceedings.

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     (c) Enforceability. Each of this Agreement and the Ancillary Agreements to
which it is a party constitutes, or upon execution and delivery will constitute, valid and
legally binding obligations of such Seller enforceable against it in accordance with their
respective terms, subject to the Remedies Exception.

     4.2 Compliance with Laws and Other Instruments; No Conflict. Neither the Company nor
the Subsidiary is in violation of or default under, and no condition exists that with notice or
lapse of time or both, would constitute a violation of or default under, (i) the Company’s or the
Subsidiary’s Constitutional Documents, or (ii) any Contractual Obligation, except for violations or
defaults which, both individually and in the aggregate, would not have a Material Adverse Effect on
the Company or the Subsidiary. The execution and delivery of this Agreement and the Ancillary
Agreements to which it is party by such Seller and the performance by such Seller of its
obligations hereunder and thereunder do not and will not (i) conflict with or contravene any
provision of such Seller’s Constitutional Documents or the Articles, (ii) violate or conflict with
any provision of Applicable Law which is applicable to such Seller, to the Company or to the
Subsidiary or any of their respective assets, (iii) conflict with, result in any breach of, or
constitute a default (or an event which would, with the passage of time or the giving of notice or
both, constitute a default) under, or give rise to a right of payment under or the right to
terminate, amend, modify, abandon or accelerate, any Contractual Obligation to which such Seller,
the Company or the Subsidiary is a party or by which any of their respective properties or assets
are bound, or (iv) result in or require the creation or imposition of any Lien upon or with respect
to any of the property or assets of such Seller, the Company or the Subsidiary.

     4.3 Consents and Approvals. No consent, approval, order or authorization of, or
registration, declaration or filing with, any Governmental Entity or other Person is required by or
with respect to such Seller, the Company or the Subsidiary in connection with the execution and
delivery of this Agreement or the Ancillary Agreements to which it is a party, or the consummation
of the transactions contemplated hereby or thereby.

     4.4 Litigation. There is no material action, suit, or other legal or administrative
proceeding or governmental investigation pending or, to the best of such Seller’s knowledge,
threatened against such Seller, the Company or the Subsidiary, or any of their respective assets,
which materially question the validity or enforceability of this Agreement or the transactions
contemplated hereby, and to such Sellers’ knowledge, there is no basis for any of the foregoing.

     4.5 Share Ownership. Such Seller is the record and beneficial owner of the number of
Purchased Shares set forth opposite such Seller’s name in Section 2 and the record and beneficial
owner of the number of Shares set forth opposite such Seller’s name in Schedule 4.5. Such
Seller does not own any other securities issued by, or other obligations of, the Company or the
Subsidiary. The Shares and the certificates representing the Shares are owned by such Seller, free
and clear of all Liens whatsoever.

     4.6 Finders and Brokers. Neither such Seller nor any Person acting on behalf of such
Seller has negotiated with or retained any finder, broker, intermediary or any similar Person in
connection with any of the transactions contemplated hereunder, nor incurred or agreed to pay, or
taken any other action that would entitle any Person to receive, any brokerage fee, finder’s fee or
other similar fee or commission with respect to any of the transactions contemplated hereunder for
which any Buyer or the Company is or could be liable.

-11-

 

     4.7 Good Title. The stock certificates to be delivered by such Seller to each Buyer
at the Closing will effectively vest in such Buyer good, valid and marketable title to the
Purchased Shares, free and clear of all Liens.

     4.8 Corporate Authority of the Company.

     (a) Organization; Subsidiary. Each of the Company and the Subsidiary is a
corporation duly organized and validly existing under the laws of Japan. The Company’s sole
Subsidiary is Harmonix Ltd. and the Company does not own any shares or other ownership
interest in any other entity. The Subsidiary does not own any shares or other ownership
interest in any entity. Each of the Company and the Subsidiary is duly qualified to conduct
business in each jurisdiction in which the nature of its business or the ownership of its
properties requires such qualification, and where the failure to be so qualified would
reasonably be expected to have a Material Adverse Effect.

     (b) Power and Authority. Each of the Company and the Subsidiary has all
requisite power to own its properties and conduct its business as currently conducted and as
proposed to be conducted. The copy of the Articles attached hereto as Exhibit B is
a true and complete copy of the Company’s articles of incorporation, as amended to date.

     4.9 Capitalization of Company.

     (a) The authorized capital stock of the Company and the Subsidiary, and the issued and
outstanding shares of common stock of the Company and the Subsidiary, are set forth in
Schedule 4.9. All of the Shares are duly authorized, validly issued, and the
Purchased Shares owned by the Seller are fully paid and non-assessable. Except as set forth
in Schedule 4.9, no securities of the Company or the Subsidiary are authorized or
outstanding.

     (b) Except pursuant to this Agreement, there are no subscriptions, securities
exercisable for or convertible into shares of capital stock of the Company or the
Subsidiary, calls, preemptive rights, options or other agreements or rights to purchase or
otherwise to receive from or sell to the Company or the Subsidiary securities of any kind.
Neither the Company nor the Subsidiary has any obligation or agreement under any contingency
whatsoever to issue any equity or debt securities, or to pay, perform, guaranty, or satisfy
in whole or in part any debt, obligation or agreement incurred or made by any Person other
than the Company or the Subsidiary, as applicable, and neither the Company nor the
Subsidiary has any obligation under any contingency whatsoever to share its income with any
Person, or to make, accrue or set aside any payment or amount measured in any way by any
part or all of its income.

     (c) All of the Shares have been issued, in compliance with Applicable Law. All of the
shares of the Subsidiary have been issued in compliance with Applicable Law.

     4.10 Title to Assets. Each of the Company and the Subsidiary has, good and marketable
title to, or a valid leasehold interest in, all of its properties and assets, free and clear of all
liens, charges, security interests, pledges, fects options,

-12-

 

encumbrances, and other restrictions on use and third party rights of any kind (collectively,
“Liens”) except for (a) Liens for current taxes, assessments and governmental charges or
levies not yet delinquent for which appropriate accruals have been created, (b) statutory Liens
imposed by law which are incurred in the ordinary course of business for obligations not yet due to
carriers, warehousemen, employees, mechanics and suppliers and (c) Liens as described in
Schedule 4.10 hereof (collectively, “Permitted Liens”). Such properties and assets
constitute all of the assets necessary for the conduct of the Company’s and the Subsidiary’s
business as currently conducted and proposed to be conducted.

     4.11 Taxes. Each of the Company and the Subsidiary has filed all tax returns and
reports required by Applicable Law and has paid or will have paid prior to the Closing Date all
taxes, assessments and penalties due and payable as of the Closing Date, the non payment of which
would have Material Adverse Effect. The tax returns and reports filed by the Company and the
Subsidiary are true and correct in all material respects and there is no basis for imposition of
interest, penalty or other duties for tax delinquency. There are no material tax Liens upon any of
the assets of the Company or the Subsidiary. No national or local tax return or tax return
liability of the Company or the Subsidiary is presently under audit by any tax authority, nor has
such audit been proposed in writing by any tax authority.

     4.12 Financial Statements. Schedule 4.12 sets forth the audited financial
statements of the Company on an unconsolidated basis for each of last three fiscal years ending on
June 30, 2004, 2005 and 2006 (the “Financial Statements”) The Financial Statements fairly
and accurately reflect the books and accounts of the Company, and present the financial position of
the Company as of the dates indicated and the results of the operations of the Company for the
periods indicated, in accordance with Japanese GAAP. The records and books of account of the
Company fairly and accurately reflect all of its items of income and expense and all assets and
liabilities and accruals, on a consistent basis, throughout the period covered thereby, except as
otherwise disclosed in the Financial Statements. The Financial Statements have been audited and
reviewed by the Company’s then current corporate auditors, whose opinions on such statements are
unqualified. As reflected in the Financial Statements, except for the deficiency described in
Section 4.13, the Company has fully funded all pension liabilities and retirement allowances
required to be funded by it in respect of the Employees of the Company under Applicable Law and any
applicable collective bargaining or other labor agreements.

     4.13 Absence of Undisclosed Liabilities and Obligations. Except as set forth in
Schedule 4.13, neither the Company nor the Subsidiary has any liability or obligation,
whether accrued, absolute, direct, contingent, or otherwise, which is not reflected in the
Financial Statements, other than obligations and liabilities incurred in the ordinary course of
business that are not required under the Japanese GAAP to be reflected therein and other than
obligations and liabilities incurred in the ordinary course of business since the Financial
Statements for the Fiscal Year ended June 30, 2006. The Company’s funding deficiency owing to the
pension fund of Mitsui & Co., Ltd. is Eleven Million Five Hundred Fifty-Seven Thousand Eighty Yen
(¥11,557,080).

     4.14 Absence of Certain Changes. Since June 30, 2006, (i) the Company has not paid
any dividend or otherwise distributed assets to its shareholders, except as contemplated in Section
8.6, (ii) there has occurred no change in the capital stock of the Company and (iii) there has
occurred no event or condition of any character that has either individually or in the aggregate
had, or that could be reasonably expected to have, a Material Adverse Effect on the Company.

-13-

 

     4.15 Indebtedness for Borrowed Money. Schedule 4.15 lists each Person to
which the Company is indebted for borrowed money in an aggregate outstanding amount that exceeds
¥10,000,000 (the “Senior Lenders”), the principal amount of such indebtedness (as of the
date hereof), and the principal agreements under which such indebtedness was incurred. The Company
has provided to the Buyers a complete list of all other loan or similar agreements to which the
Company is a party or otherwise obligated with respect thereto, and there is no default, or
condition that with the giving of notice or lapse of time or both would constitute a default, under
any such agreements by the Company listed in Schedule 4.15.

     4.16 Condition of Tangible Assets. To the knowledge of such Seller, all items of
machinery, equipment, and other tangible assets used by the Company are in good operational
condition, ordinary wear and tear excepted, as warranted by the respective suppliers under the
relevant contracts.

     4.17 Intellectual Property. The Company is the legal and beneficial owner of all
right, title and interest in and to the Intellectual Property, having good title thereto, free and
clear of any and all Liens, or has a valid license to use the Intellectual Property. The
Intellectual Property is valid, in good standing, enforceable and not the subject of any challenge,
and the Company has taken all necessary measures and precautions to maintain the enforceability,
value and confidentiality of the Intellectual Property. The Company has not previously assigned,
transferred, conveyed or otherwise encumbered any right, title or interest in or to the
Intellectual Property, and except as set forth in Schedule 4.17, has not granted to any
third party any license to use any of the Intellectual Property in any manner, or any covenant not
to sue for any use of any of the Intellectual Property. The use of the Intellectual Property by
the Company in its business, does not violate, infringe or otherwise conflict with any copyright,
trade secret, trademark, servicemark or patent (the “Proprietary Rights”) of any third
party. No claim has been brought by any person or entity alleging that the use of Intellectual
Property by the Company in its business violates, infringes or otherwise conflicts or interferes
with any Proprietary Rights of any third party. Each current and former employee, consultant and
contractor of the Company (a “Contract Party”) has executed an agreement requiring the
Contract Party to maintain the confidentiality of any confidential information to which the
Contract Party was exposed during the course of performing any work for the Company, and to assign
to the Company, as applicable, all right, title and interest in and to any Proprietary Rights
authored, invented, developed, created or reduced to practice by the Contract Party.

     4.18 Employment Arrangements; Labor Relations. All amounts owing to the Employees in
connection with their employment with, or provision of services to, the Company through the Closing
Date have been timely paid in full. There are no pending strikes, lockouts or other labor disputes
against the Company or between the Company and their employees, and no significant unfair labor
practice complaint is pending in respect of the Company before any Governmental Entity. There are
no collective bargaining agreements to which the Company is subject.

     4.19 Licenses, Compliance with Laws, Regulations, etc. Schedule 4.19 sets
forth all material permits, licenses and other approvals and authorizations held by the Company and
which are necessary for the conduct of its business as presently conducted, and without which the
current business of Company would suffer a Material Adverse Effect, and all of such licenses,
permits and other approvals and authorizations are in good standing full force and effect. The
Company has not received any notice that any of such licenses, permits, approvals or authorizations
will lapse or be terminated by action of a Governmental Entity on

-14-

 

and/or before the Closing Date. Except where failure to comply would not have a Material
Adverse Effect upon the Company, the Company has complied, and is in compliance, in all material
respects, with all Applicable Law.

     4.20 Contracts.

     (a) Schedule 4.20 sets forth a listing of all of the Contracts to which the
Company is a party or by or to which any of its assets or properties are bound or subject
which are material to the business of the Company, except for one or more agreements
evidencing the senior debt facility specified in Section 7.7 (the “Material
Contracts”). Except as provided in the Schedule 4.20, each of the Material
Contracts constitutes a valid and binding obligation of the Company, is in full force and
effect on the Closing Date, and will not be affected by the transactions contemplated
hereby. The Company has fulfilled and performed in all material respects its obligations
under each of the Material Contracts.

     (b) Except as set forth in Schedule 4.20, none of the Material Contracts is
subject to any existing default by or event of default with respect to the Company, which
would reasonably be expected to have a Material Adverse Effect or event which with the
giving of notice or the passage of time or both would constitute a default by the Company
and which would reasonably be expected to have a Material Adverse Effect. To the knowledge
of such Seller, no default or event of default which would reasonably be expected to have a
Material Adverse Effect exists with regard to any other party to a Material Contract.

     (c) Except as set forth in Schedule 4.20, the Company is not a party to any
Material Contract where any consent is necessary to consummate the transactions contemplated
herein or in any Ancillary Agreement to which it is a party.

     (d) Except as set forth in Schedule 4.20, to the knowledge of the Seller, there
are no agreements or contracts between the Company and any of its employees, agents,
officers, directors, shareholders or any entity in which any officer, director or
shareholder owns a more than five percent equity interest.

     (e) Except as set forth in Schedule 4.20, the Company is not a party to any
agreement which materially limits the freedom of the Company or the Subsidiary to compete in
any line of business or with any firm or person.

     4.21 Insurance. The Company has maintained and does maintain insurance policies with
responsible and reputable insurance companies or associations in such amounts and covering such
risks as may be customary for similarly situated entities, including product liability insurance.

     4.22 Warranty; Product Liability. Schedule 4.22 sets forth an accurate,
correct and complete list and summary description of all existing claims arising from or alleged to
arise from the breach of product warranties given in sales contracts between the Company and its
customers (“Warranty Claims”), and any injury to person or property or economic damage (“Product
Liability Claims”) exceeding the amount of ¥2.5 million arising prior to the Closing Date.

-15-

 

     4.23 Environmental Matters. The Company has complied in all material respects with
all Environmental Laws, and no citations, notices, or orders have been issued to the Company under
any such laws. Such Seller does not have any knowledge of any deposit, storage, disposal, burial,
discharge, spillage, uncontrolled loss, seepage or filtration of any Hazardous Substance at, upon,
under, or within the Facility. The Company has not caused or permitted to occur any condition
which may cause a discharge of any Hazardous Substance at, upon, under or within any premises
currently or previously occupied by the Company.

     4.24 No Relationship with Anti-Social Organizations. To such Seller’s knowledge, none
of such Seller and/or the Company is or belongs to any illegal or anti-social organizations or any
organizations which promote illegal or anti-social activities or behaviors as prohibited under the
Anti-Social Organization Law (Bouryokudan-in ni yoru Futou-na Koui no Boushi-to-ni Kansuru Horitsu)
(Law No. 77 of 1991, as amended).

     4.25 Disclosure of Information. Except to the extent set forth in the Schedule of
Exceptions, all representations and warranties made by such Seller in this Agreement are true,
complete and correct in all material respects and do not and will not contain any untrue statement
of material fact or omit to state any material fact required to be stated or necessary to make the
statements in light of the circumstances in which they were made not misleading.

5. REPRESENTATIONS AND WARRANTIES OF THE BUYERS

     Each Buyer, severally, and not jointly, hereby represents and warrants to the Sellers as of
the date hereof and as of the Closing Date as follows, provided that the Individual Buyers do not
make represents and warranties set forth in Section 5.1(a) and (b):

     5.1 Authority; Capacity.

     (a) Organization. Such Buyer is (i) a duly organized and validly existing
under the laws of Japan, and (ii) is in good standing under the laws of Japan.

     (b) Authority. Such Buyer has the requisite power and authority to enter into
and to perform its obligations under this Agreement and the Ancillary Agreements to which it
is or will be a party. The execution, delivery and performance of this Agreement and the
Ancillary Agreements to which it is or will be a party and the transactions contemplated
hereby and thereby have been duly authorized by all necessary proceedings.

     (c) Enforceability. Each of this Agreement and the Ancillary Agreements to
which it is a party constitutes, or upon execution and delivery will constitute, valid and
legally binding obligations of the Buyer enforceable against it in accordance with their
respective terms, subject to the Remedies Exception.

     (d) Capacity. Such Buyer has all requisite legal capacity to execute and
deliver this Agreement and the Ancillary Agreements to which it is a party, and to
consummate the transactions contemplated hereby and thereby.

     5.2 Compliance with Laws and Other Instruments; No Conflict. Such Buyer is not in
violation of or default under, and no condition exists that with notice or lapse of time or both,
would constitute a violation of or default under (i) the Constitutional Documents, if any, of such
Buyer, (ii) any Contractual Obligation, except for violations or defaults which,

-16-

 

both individually and in the aggregate, would not have a Material Adverse Effect on such
Buyer. The execution and delivery of this Agreement and the Ancillary Agreements to which it is
party by such Buyer and the performance by such Buyer of its obligations hereunder and thereunder
do not and will not (i) conflict with or contravene any provision of the Constitutional Documents,
if any, of such Buyer, (ii) violate or conflict with any provision of Applicable Law which is
applicable to such Buyer or any of its assets, (iii) conflict with, result in any breach of, or
constitute a default (or an event which would, with the passage of time or the giving of notice or
both, constitute a default) under, or give rise to a right of payment under or the right to
terminate, amend, modify, abandon or accelerate, any Contractual Obligation to which such Buyer is
a party or by which any of its properties or assets are bound, or (iv) result in or require the
creation or imposition of any Lien upon or with respect to any of the property or assets of such
Buyer.

     5.3 Consents and Approvals. No consent, approval, order or authorization of, or
registration, declaration or filing with, any Governmental Entity or other Person is required by or
with respect to such Buyer in connection with the execution and delivery of this Agreement or the
Ancillary Agreements to which it is a party, or the consummation of the transactions contemplated
hereby or thereby.

     5.4 Litigation. There is no material action, suit, or other legal or administrative
proceeding or governmental investigation pending or, to such Buyer’s knowledge, threatened against
such Buyer, or any of its properties or assets, or which materially question the validity or
enforceability of this Agreement or the transactions contemplated hereby and, to such Buyer’s
knowledge, there is no basis for any of the foregoing.

     5.5 Investment Representations. Such Buyer is acquiring the Purchased Shares for its
own account and for investment, and not with a view to any distribution of any of such Purchased
Shares.

     5.6 Finders and Brokers. Neither such Buyer nor any Person acting on behalf of such
Buyer has negotiated with or retained any finder, broker, intermediary or any similar Person in
connection with any of the transactions contemplated hereunder for whose brokerage fee, finder’s
fee or other similar fee or commission shall be or could be payable by the Company or any Seller.

     5.7 Investigation and Evaluation. Such Buyer acknowledges that (i) such Buyer is
experienced in the purchase of shares in companies similar to the Company, (ii) such Buyer and its
directors, officers, attorneys, accountants and advisors have been given the opportunity to examine
to the full extent deemed necessary and desirable all the books, records and other information with
respect to the Company, (iii) such Buyer is fully capable of evaluating the adequacy and accuracy
of the information obtained by such Buyer in the course of its investigations, (iv) such Buyer has
not relied on Sellers with respect to any matter in connection with such Buyer’s evaluation of the
Company other than the representations and warranties of Sellers specifically set forth in Section
4 hereof and (v) SELLERS ARE MAKING NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH
RESPECT TO THE COMPANY OTHER THAN THOSE EXPRESSLY SET FORTH IN SECTION 4 HEREOF.

-17-

 

6. COVENANTS

     6.1 Obligations of the Parties before Closing. From the date of this Agreement
through the Closing Date, the following undertakings of the Parties shall apply:

     (a) Notice of Certain Events Pending Closing. During the period prior to the
Closing Date, each of the Sellers shall promptly notify the Buyers in writing of (i) any
material change in the business of the Company or the Subsidiary, (ii) the threat or
commencement of any material litigation by or against the Company or the Subsidiary, or
(iii) any event, condition, fact or circumstance that may make the timely satisfaction of
any of the conditions set forth in Section 7 impossible or unlikely.

     (b) Mutual Consultation. Buyers and Sellers will consult with each other
Parties regarding all significant developments, transactions, and proposals relating to the
Company as notified by Sellers in accordance with Section 6.1(a) above.

     (c) Further Assurances. Subject to the terms and conditions hereof, each Party
agrees to use all commercially reasonable efforts to take, or cause to be taken, all actions
and to do, or cause to be done, all things necessary, proper or advisable to consummate and
make effective the transactions contemplated by this Agreement.

     6.2 No Negotiation. Other than discussions with the Buyers regarding the transactions
contemplated hereby, no Seller shall and the Sellers shall cause the Company not to, directly or
indirectly, through any officer, director, agent or otherwise, make, solicit, initiate or encourage
submission of any proposal or offer from any Person (including any of its officers or employees)
relating to any merger, consolidation, acquisition, purchase or other significant transaction
relating to, the Company’s shares, business or assets or by such Person (a “Transaction
Proposal”). The Sellers shall immediately cease and cause to be terminated all ongoing
contacts or negotiations, if any, with respect to any Transaction Proposal. The Sellers shall
promptly notify the Buyers if any Transaction Proposal, or any inquiry or contact with any Person
with respect thereto, is made and shall promptly provide the Buyers with such information regarding
such Transaction Proposal, inquiry or contact as any Buyer may reasonably request.

     6.3 Conduct Business in Ordinary Course. Through the Closing Date, the Sellers and
Mr. Kawai and any other Individual Buyers currently a part of the senior management of the Company
shall, severally but not jointly, cause each of the Company and the Subsidiary to conduct its
business only in the ordinary course and, in addition, shall cause each of the Company and the
Subsidiary not to: (i) enter into any agreement which may have a Material Adverse Effect on the
Company or the Subsidiary; (ii) place or allow to be placed any Liens other than Permitted Liens,
on any of the Company’s or the Subsidiary’s assets; (iii) sell or otherwise dispose of any interest
in any of its assets other than in the ordinary course of business; (iv) issue or cause to be
issued any new shares or securities or any options or rights to purchase shares or securities; (v)
except as contemplated by Section 8.6 hereof, declare or pay any dividend or other distributions;
or (vi) commit any act or omit to do any act, or engage in any activity or transaction or incur any
obligation (by contract or otherwise) which (individually or in the aggregate) could be reasonably
expected to have a Material Adverse Effect on the Company, the Subsidiary or on any of the
transactions contemplated hereby.

     6.4 Confidentiality and Publicity.

-18-

 

     (a) Each Party and its Affiliates shall maintain in confidence all confidential
information (oral or written) identified as such received from any other Party in connection
with this Agreement (including the Company Information, “Confidential Information”),
shall use such Confidential Information only in connection with the transactions
contemplated hereby, shall not disclose any such Confidential Information to a third party
or make any unauthorized use thereof and shall not use for its benefit, or disclose,
communicate or divulge to, or use for the direct or indirect benefit of any person or
entity, any Company Information. “Company Information,” as used in the preceding
sentence, means any information regarding the Company’s and the Subsidiary’s business
methods, business policies, procedures, techniques, research or development projects or
results; historical or projected financial information, budgets, trade secrets or other
knowledge or processes of or developed by the Company or the Subsidiary; any names and
addresses of customers or clients or any data on or relating to past, present or prospective
Company or Subsidiary customers or clients; or any other confidential information relating
to or dealing with the business, or operations or activities of the Company or the
Subsidiary, excepting in each case information otherwise lawfully known generally by, or
readily accessible to, the trade or the general public. Each Party and its Affiliates shall
treat such Confidential Information with the same degree of care against disclosure or
unauthorized use which it affords to its own confidential information of a similar nature or
a reasonable degree of care, whichever is greater. Notwithstanding the foregoing,
Confidential Information shall not include any information that (i) has become generally
available in the public domain, (ii) was in the receiving party’s possession prior to
disclosure, (iii) was independently developed by the receiving party, or (iv) was received
from a third party who had a right to disclose such information.

     (b) In the event that a Party is requested or required (by Applicable Law or by oral
questions, interrogatories, requests for information or documents by any Governmental Entity
or other Person in legal proceedings, subpoenas, civil investigative demands or other
similar processes) to disclose any Confidential Information received from a disclosing
party, the recipient party so requested or required shall provide the disclosing party with
prompt written notice of any such request or requirement so that the disclosing party may
object to production, seek a protective order or other appropriate remedy and/or waive
compliance with the provisions of this Agreement. If, in the absence of a protective order
or other remedy or the receipt of a waiver of the disclosing party, such recipient party is
nonetheless legally compelled to disclose such Confidential Information, such recipient
party may, without liability hereunder, disclose that portion of the Confidential
Information which is legally required to be disclosed.

     (c) Except as may be required by Applicable Law, including, without limitation, the
securities laws of any relevant jurisdiction, no press release, publicity, disclosure or
notice to any Person concerning any of the transactions contemplated hereby shall be issued,
given, made or otherwise disseminated by any Party or any of its Affiliates at any time
(whether prior to, at or after the Closing) without the prior written approval of, in the
case the disclosing party is a Seller or a Buyer, all of the other Parties or, in the case
the disclosing party is the Company, either the Buyers (before the Closing Date) or all of
the Sellers (after the Closing Date), which approval shall not be unreasonably withheld;
provided, that promptly after the date hereof (and

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in any event within one (1) week after the date hereof), the Sellers and the Buyers
shall (or the Buyers, acting alone, at any time after the expiration of such one (1) week
period, may, if the Sellers and the Buyers have not by then acted jointly) issue a press
release announcing the signing of this Agreement and the effect of this Agreement on the
ownership of the Company, and provided, further, that any Buyer may freely circulate such
press release and that any Buyer, following notice to the Sellers at any time after the date
hereof may make appropriate inquiries of the Company’s customers and suppliers.

     6.5 Sellers’ Representations and Warranties; Knowledge. For purposes of this
Agreement, any representation herein “to such Seller’s knowledge” means that the statement in
question is true and accurate to the best knowledge of any of (i) directors; (ii) officers; or
(iii) employees (who are in charge of managing the investment in, and the distribution
relationship, with the Company) of such Seller.

7. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE BUYER

     The obligation of each Buyer to consummate the transactions contemplated by this Agreement is
subject to the satisfaction, or written waiver by such Buyer, of each of the following conditions
on or prior to Closing; and the occurrence of the Closing without any Seller’s notifying the Buyers
prior thereto that conditions set forth in Sections 7.1 through 7.4 have not been satisfied shall
cause the Sellers to be deemed to have stated conclusively that conditions set forth in Sections
7.1 through 7.4 have been satisfied.

     7.1 Representations and Warranties; Compliance with this Agreement. Subject to the
Schedule of Exceptions, the representations and warranties of the Sellers contained in Section 4
hereof shall be true and correct in all material respects as of the Closing Date. The Sellers
shall have performed and complied in all material respects with all of their agreements and
covenants contained herein and in the Ancillary Agreements which are required to be performed by
any of them on or before the Closing Date, including, without limitation, delivery of the Purchased
Shares and the other items set forth in Schedule 3.2 to the Buyers on the Closing Date.

     7.2 No Judgment or Order. There shall not be any judgment or order of a court of
competent jurisdiction, any ruling of any Governmental Entity, or any condition imposed under
Applicable Law which would prohibit the purchase and sale of the Purchased Shares hereunder or
subject any Buyer to any penalty or other onerous condition under any Applicable Law if the
Purchased Shares were to be purchased hereunder.

     7.3 No Litigation. No action, suit or proceeding before any court or any other
Governmental Entity shall have been commenced or threatened (i) seeking to restrain, prevent or
change the terms of the transactions contemplated hereby or challenging the validity or legality of
any such transactions, or (ii) which would, if resolved adversely, severally or in the aggregate,
have a Material Adverse Effect on any Party, the Company or the Subsidiary.

     7.4 Approvals. All filings, consents, approvals, qualifications, and registrations
required by any Governmental Entity or other Person which are necessary or otherwise appropriate
for the Sellers to consummate the transactions contemplated by this Agreement shall have occurred,
been made or been obtained, all waiting periods under Applicable Law shall have expired, shall not
have been revoked, rescinded or otherwise modified.

-20-

 

     7.5 Execution. The Sellers shall have duly executed and delivered, on or prior to the
Closing, the Agreement, the Ancillary Agreements to which the Sellers respectively are party and
any other documents in respect of the transactions contemplated herein and therein, in each case,
in the form and substance acceptable to the Fund Buyers.

     7.6 Shares. The Sellers shall have owned the Shares from the date of this Agreement
through the Closing Date free and clear of all Liens.

     7.7 Financing. The Company shall have obtained a senior debt facility from one or
more banks on terms and conditions acceptable to the Fund Buyers and in an amount sufficient for
the Company to pay dividends as contemplated by Section 8.6.

     7.8 Termination of Existing Shareholders Agreement and Existing Distribution
Agreement. The termination agreement for the Existing Shareholders Agreement, the Existing FSI
License Agreement, the Existing mŸFSI License Agreement, the Existing FSI Distributorship
Agreement, the Existing mŸFSI Distributorship Agreement and the Existing CEC License
Agreement shall have been executed under which the above mentioned agreements shall be terminated
upon the completion of the Closing and thereafter shall be of no further force and effect and the
parties to such Agreements shall have provided a release of the other parties, as applicable.

     7.9 No Material Adverse Change. There shall not have occurred since the execution of
this Agreement any event, fact, circumstance or action that would reasonably likely have a Material
Adverse Effect on the Company or the Subsidiary.

8. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SELLERS

     The obligation of each Seller to consummate the transactions contemplated by this Agreement is
subject to the satisfaction, or written waiver by such Seller, of each of the following conditions
on or prior to Closing; and the occurrence of the Closing without any Buyer’s notifying the Sellers
prior thereto that conditions set forth in Sections 8.1 through 8.4 have not been satisfied shall
cause the Buyers to be deemed to have stated conclusively that conditions set forth in Sections 8.1
through 8.4 have been satisfied

     8.1 Representations and Warranties; Compliance with this Agreement. The
representations and warranties of the Buyers contained in Section 5 hereof shall be true and
correct in all material respects as of the Closing Date. The Buyers shall have performed and
complied in all material respects with all of its agreements and covenants contained herein and the
Ancillary Agreements which are required to be performed by them on or before the Closing Date,
including, without limitation, delivery of the Closing Payment to the Sellers on the Closing Date.

     8.2 No Judgment or Order. There shall not be any judgment or order of a court of
competent jurisdiction, any ruling of any Governmental Entity, or any condition imposed under
Applicable Law which would prohibit the purchase and sale of the shares hereunder or subject any
Seller to any penalty or other onerous condition under any Applicable Law if the Purchased Shares
were to be purchased hereunder.

     8.3 No Litigation. No action, suit or proceeding before any court or any other
Governmental Entity shall have been commenced or threatened (i) seeking to restrain, prevent or
change the terms of the transactions contemplated hereby or challenging the

-21-

 

validity or legality of any such transactions, or (ii) which would, if resolved adversely,
severally or in the aggregate, have a Material Adverse Effect on any Party, the Company or the
Subsidiary.

     8.4 Approvals. All filings, consents, approvals, qualifications, and registrations
required by any Governmental Entity or other Person which are necessary or otherwise appropriate
for the Buyers to consummate the transactions contemplated by this Agreement shall have occurred,
been made or been obtained, all waiting periods under Applicable Law shall have expired, shall not
have been revoked, rescinded or otherwise modified.

     8.5 Execution. The Buyers shall have duly executed and delivered, on or prior to the
Closing, the Agreement, the Ancillary Agreements to which they are party and any other documents in
respect of the transactions contemplated herein and therein.

     8.6 Dividend. The Company shall have declared dividends in the aggregate amount of
Five Hundred Five Million Eight Thousand Yen (¥505,008,000), and such dividends have been paid
proportionately to each of the Sellers (subject to applicable withholding taxes to be withheld by
the Company) on the Closing Date immediately prior to the Closing, subject to the fulfillment or
waiver, as applicable, of all other conditions to the Closing.

9. TERMINATION OF AGREEMENT

     9.1 Termination. This Agreement may be terminated prior to Closing as follows:

     (a) at the election of the Sellers or the Buyers, if the Closing shall not have
occurred on or prior to August 31, 2007, other than as a result of a breach of any material
term of condition hereof by the Party seeking to so terminate;

     (b) at the election of the Sellers or the Buyers, if the other Party (the Sellers in
the case of a breach by any Buyer, and the Buyers in the case of a breach by any Seller)
breaches any material term or condition of this Agreement and there is no reasonable
possibility of cure prior to the Closing Date;

     (c) at the election of the Sellers or the Buyers, if any action, suit or proceeding
shall have been instituted or threatened before, or instituted or threatened by, any
Governmental Entity to restrain or prevent the consummation of the transactions contemplated
hereby or to seek damages in connection with such transactions, and the Sellers or the
Buyers, as the case may be, reasonably and in good faith deems it impractical or inadvisable
to proceed in view of such legal proceedings or threat thereof; or

     (d) at any time on or prior to the Closing Date, by mutual written consent of the
Parties.

     9.2 Effect of Termination. Except for the obligations set forth in Sections 10 and 11
and this Section 9.2, if this Agreement shall be terminated pursuant to the preceding Section 9.1,
all obligations, representations and warranties of the Parties hereto under this Agreement that
relate to the Closing (or the transactions contemplated thereby or in connection therewith) that
have not been consummated shall terminate, provided, that

-22-

 

nothing in this Section 9.2 shall relieve any Party of liability for breach of any warranty,
covenant or agreement herein.

10. INDEMNIFICATION

     10.1 Indemnification Obligation. Each Seller (in such capacity, an “Indemnifying
Party”) hereby agrees to indemnify the Buyers (an “Indemnified Party”) severally and
not jointly, in proportion to the number of the Purchased Shares each Indemnifying Party
transferred to the Indemnified Parties, from and against any and all claims, demands, liabilities,
costs, damages, expenses (including, without limitation, reasonable attorneys’ fees and expenses
and reasonable costs of investigation), and causes of action of any nature whatsoever (a
“Loss” and, collectively, “Losses”) arising from breach in any material respect of
any representation, warranty (regardless of any due diligence, examinations, inspections, audits
and other investigations a Buyer has heretofore made or may hereafter make, with respect to such
representations and warranties), covenant, agreement or obligation made or to be performed by such
Indemnifying Party hereunder or under the Ancillary Agreements to which it is a party; provided
that Losses arising from a breach of the representations and warranties set forth in Sections 4.17,
4.22 and 4.23 shall be indemnified in their entirety solely by FSI. Each Seller acknowledges and
agrees that, if there is any such breach relating to or affecting the Company or the Subsidiary, or
the condition of the Company or the Subsidiary, then a Buyer itself shall be deemed, by virtue of
its ownership of capital stock of the Company, to have incurred Losses, which shall be deemed to
include, without limitation, such Buyer’s pro rata share of an amount equal to the difference
between (i) the total net assets of the Company had such breach not occurred and (ii) the total net
assets of the Company as decreased by, or relating to, or reflecting, such breach; provided that
such difference shall be computed by an independent certified public accountant to be designated by
the mutual agreement between Indemnifying Party and the Indemnified Party.

     10.2 Limitations. Notwithstanding the terms of Section 10.1 above, the Sellers’
obligation to indemnify Buyers for Losses asserted by Sellers shall be subject to the following
limitations:

     (a) The Sellers will have no obligation to indemnify Buyers for any Losses asserted by
Buyers unless the amount of such Loss is equal to or greater than ¥2,500,000 (the “Minor
Claim Amount”), and any Loss that does not equal or exceed the Minor Claim Amount shall not
count towards the Threshold Amount;

     (b) Buyers shall first be obligated to use commercially reasonable efforts to obtain
and apply the proceeds of any insurance available to compensate the Company for the Losses
subject to the indemnification claim (whether such insurance is maintained by the Buyers or
by the Company), and to the extent any Loss is reimbursed to the Buyers or the Company under
an applicable insurance policy, the Sellers will have no obligation to indemnify Buyers for
such Loss and such Loss shall not count toward the Threshold Amount;

     (c) The Sellers will have no obligation to indemnify Buyers for Losses unless and until
the cumulative aggregate amount of such Losses equals or exceeds ¥10,000,000 (the “Threshold
Amount”), in which case the Sellers will be liable for all Losses in excess of such amount,
subject to subsection (d) immediately below; and

-23-

 

     (d) The aggregate liability of the Sellers to Buyers for Losses claimed under this
Section 10 shall not exceed an amount equal to fourty percent (40 %) of the sum of (i) the
Purchase Price and (ii) the amount of dividend (before withholding tax) contemplated under
Section 8.6 hereunder, that the Sellers have received from the Buyers or the Company, as
applicable.

     10.3 Survival of Indemnification Obligation; Limitations. Except as set forth below
in this Section 10.3, all representations, warranties and covenants made by each Seller in this
Agreement shall be deemed to have been made or given, as the case may be, as of the date hereof and
as of the Closing and shall survive the Closing for a period of one (1) year; provided,
however, the representations, warranties and covenants of each Seller set forth in Sections
4.11 and 4.23 shall survive the Closing for a period of three (3) years.

     10.4 Third Party Claims. If any lawsuit or enforcement action is filed against an
Indemnified Party with respect to which such Indemnified Party is entitled to indemnification under
this Section 10 or an Indemnified Party becomes aware of any fact, condition or event which may
give rise to Losses for which indemnification may be sought under this Section 10, then such
Indemnified Party shall give notice thereof (a “Claim Notice”) to the Party against whom
indemnity is (or may be) sought as promptly as practicable. If within thirty (30) days after
receipt of the Claim Notice the Indemnifying Party acknowledges in writing to the Indemnified Party
that the Indemnifying Party is obligated under the terms hereof to defend such lawsuit or action or
that it will defend under a reservation of rights and without any assumption of liability, then the
Indemnifying Party shall be entitled, if it so elects at its own cost, risk and expense, (a) to
take control of the defense and investigation of such lawsuit or action, (b) to employ and engage
attorneys at its discretion and the Indemnified Party to handle and defend the same, and (c) to
compromise or settle such claim. In connection with the Indemnifying Party’s defense as described
in the foregoing sentence, each Indemnified Party shall, as expressly required by such Indemnifying
Party, (at the Indemnifying Party’s cost and expense) cooperate in all reasonable respects with the
Indemnifying Party and its attorneys in the investigation, trial and defense of such lawsuit or
action and any appeal arising therefrom; provided, however, that subject to the
foregoing control, discretion and rights of the Indemnifying Party, an Indemnified Party may, at
its own cost, participate in the investigation, trial and defense of such lawsuit or action and any
appeal arising therefrom. The Parties shall cooperate with each other in any notifications to
insurers. If the Indemnifying Party fails to assume the defense of such claim within thirty (30)
calendar days after receipt of the Claim Notice as provided above, then the Party against which
such claim has been asserted, or to which such facts or condition relates, shall (upon delivering
notice to such effect to the Indemnifying Party) have the right (but not the obligation) to
undertake, at the Indemnifying Party’s cost and expense, the defense, compromise or settlement of
such claim on behalf of, and for the account and risk of, the Indemnifying Party. In the event the
Indemnified Party assumes the defense of the claim, the Indemnified Party will seek to keep the
Indemnifying Party timely informed of the progress of any such defense, compromise or settlement.
The Indemnifying Party shall be liable for any settlement of any action effected pursuant to and in
accordance with this Section 10 and for any final judgment (subject to any right of appeal), and
the Indemnifying Party agrees to indemnify and hold harmless the Indemnified Party from and against
any Losses by reason of such settlement or judgment.

     10.5 Indemnification by Buyers. Each Buyer (in such capacity an Indemnifying Party)
agrees to indemnify the Sellers (each such Seller an Indemnified Party) severally, and

-24-

 

not jointly, from and against any and all Losses incurred by Sellers arising from a breach in
any material respect of any representation, warranty, covenant, agreement or obligation made or to
be performed by such Indemnifying Party hereunder or under the Ancillary Agreements. The
limitations on the indemnification obligations of the Sellers under Section 10.2 above shall apply
mutatis mutandis to the indemnification obligations of the Buyers under this Section 10.5.

     10.6 Sole and Exclusive Remedy. After the Closing, the rights set forth in Sections
10.1 through 10.5 will be the exclusive remedy for (a) any breach of any of the representations and
warranties contained in Sections 4 and 5 of this Agreement and (b) any breach by a Party of any of
the agreements and covenants contained in this Agreement, in each case in lieu of contract
remedies; provided, however, that the Parties otherwise will also have available to them all other
remedies available under law, including specific performance or other equitable remedies, to
enforce the obligations set forth in Section 6.4 hereof.

     10.7 Tax Adjustment. Any payment to a Party contemplated under this Section 10 will
be, for tax purposes, to the extent permitted by law, an adjustment to the Purchase Price. The
Parties acknowledge and agree that such payment is subject to withholding taxes to be withheld by
the Company and that none of the Company or the Buyers shall be obligated to “gross-up” such
payment.

11. MISCELLANEOUS

     11.1 Governing Law. This Agreement shall be construed in accordance with and governed
by the laws of Japan. Each Party hereby submits to the non-exclusive jurisdiction of the Tokyo
District Court for purposes of all legal proceedings arising out of or relating to this Agreement
and the transactions contemplated hereby.

     11.2 Headings. The headings of the sections of this Agreement are for convenience and
shall not by themselves determine the interpretation of this Agreement. Unless otherwise provided,
all references to articles, sections, exhibits and Schedules in this Agreement are to articles,
sections, exhibits and Schedules of this Agreement.

     11.3 Notices and Other Communications. Any and all notices, requests, demands and
other communications required or otherwise contemplated to be made under this Agreement shall be in
writing and in English and shall be provided by one or more of the following means and shall be
deemed to have been duly given (a) if delivered personally, when received, (b) if transmitted by
facsimile, on the date of transmission with receipt of a transmittal confirmation, or (c) if by
international courier service, on the fourth (4th) business day following the date of deposit with
such courier service, or such earlier delivery date as may be confirmed in writing to the sender by
such courier service. All such notices, requests, demands and other communications shall be
addressed as follows:

-25-

 

     If to Buyers:

Yasuda Enterprise Development III, Limited Partnership

Kojimachi 4-chome Kyodo Bldg. 9F

4-2-7 Kojimachi,

Chiyoda-ku, Tokyo 102-0083

Japan

Facsimile: +81-3-6811-7092

Attention: Taisuke Hitomi

Mizuho Capital Co., Ltd.

4-3, Nihombashi-kabutocho

Chuo-ku, Tokyo 103-0026

Japan

Facsimile: +81-3-3664-3449

Attention: Kenichi Ohta

Mr. Hideki Kawai

Harmony Tower 22F

32-2, Hon-cho 1-chome

Nakano-ku, Tokyo 164-0012

Japan

Facsimile: +81-3-5309-8401

Mr. Takanori Yoshioka

Harmony Tower 22F

32-2, Hon-cho 1-chome

Nakano-ku, Tokyo 164-0012

Japan

Facsimile: +81-3-5309-8401

Mr. Satoshi Shikami

Harmony Tower 22F

32-2, Hon-cho 1-chome

Nakano-ku, Tokyo 164-0012

Japan

Facsimile: +81-3-5309-8401

     If to the Sellers:

FSI International, Inc.

3455 Lyman Boulevard

Chaska,

Minnesota 55318-3052

U.S.A.

Facsimile: +1-952-448-1300

Attention: Benno Sand

-26-

 

Chlorine Engineers Corp. Ltd.

Tomiokabashi Building

6-11 Fukagawa 2-chome

Koto-ku, Tokyo 135-0033

Japan

Facsimile: +81-5245-8128

Attention: Keisuke Nakayama

MBK Project Holdings Ltd.

2-1 Ohtemachi 1-chome

Chiyoda-ku, Tokyo 100-0004

Japan

Facsimile: +81-3-3285-9116

Attention: Yasuhiro Tanaka

or to such other address or facsimile number as a Party may have specified to the other parties in
writing delivered in accordance with this Section 11.3.

     11.4 Amendment of Agreement; No Waiver. Any provision of this Agreement may be
amended only upon the Parties’ mutual written agreement. No failure to exercise and no delay in
exercising any right, power or privilege granted under this Agreement shall operate as a waiver of
such right, power or privilege. No single or partial exercise of any right, power or privilege
granted under this Agreement shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

     11.5 Severability. If any provision of this Agreement is determined by a court of law
to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible
and other provisions will remain fully effective and enforceable, and if no feasible interpretation
would save such provision, it shall be severed from the remainder of this Agreement, which shall
remain in full force and effect unless the severed provision is essential to the rights or benefits
intended by the Parties. In such event, the Parties hereto shall use best efforts to negotiate, in
good faith, a substitute, valid and enforceable provision or agreement which most nearly effects
the intent of the Parties hereto in entering into this Agreement.

     11.6 Fees and Expenses. Each Party shall be solely responsible for the payment of the
fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such Party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement.

     11.7 Entire Agreement. This Agreement, including the Exhibits and Schedules attached
hereto, constitutes the entire agreement among the Parties regarding the subject matter hereof.
Any previous agreement between the Parties is superseded by this Agreement.

     11.8 Successors and Assigns. Except as expressly provided herein, the rights and
obligations hereunder may not be assigned or delegated by any Party without the prior written
consent of all other Parties. Subject to the foregoing, the provisions hereof shall inure to the
benefit of, and be binding upon, the successors and permitted assigns of the Parties. Each Party
agrees that this Agreement shall not benefit or create any right or cause of action in or on behalf
of any Person other than the Parties, except as otherwise provided in Section 10.1.

-27-

 

     11.9 English Language. This Agreement is in the English language only, which language
shall be controlling in all respects. No translation, if any, of this Agreement into Japanese or
any other language shall have any force or effect in the interpretation of or in the determination
of the intent of the Parties with respect hereto. Notwithstanding the foregoing, the Parties
acknowledge and agree that certain portions of Schedules are in the Japanese language and that such
Japanese language portions shall be controlling to the extent of the matters set forth therein.

     11.10 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

-28-

 

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

	 	 	 	 	 
	 	FSI INTERNATIONAL, INC.

 	 
	 	By:  	/s/ John C. Ely
 	 
	 	 	Name:  	John C. Ely 	 
	 	 	Title:  	VP Sales/Service 	 
	 

	 	 	 	 	 
	 	CHLORINE ENGINEERS CORP. LTD.

 	 
	 	By:  	/s/ Yoshinori KATO
 	 
	 	 	Name:  	Yoshinori KATO 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	MBK PROJECT HOLDINGS LTD.

 	 
	 	By:  	/s/ Masato SHIODE
 	 
	 	 	Name:  	Masato SHIODE 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	YASUDA ENTERPRISE DEVELOPMENT III,

LIMITED PARTNERSHIP

 	 
	 	By:  	/s/ Kazushige Tachibana
 	 
	 	 	Name:  	Kazushige Tachibana 	 
	 	 	Title:  	President and Representative Director
Yasuda Enterprise Development Co., Ltd.

General Partner 	 

-29-

 

	 	 	 	 	 

	 	 	 	 	 
	 	MIZUHO CAPITAL CO., LTD.

 	 
	 	By:  	/s/ Akira Kiyohara
 	 
	 	 	Name:  	Akira Kiyohara 	 
	 	 	Title:  	President

Mizuho Capital Co., Ltd. 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                                   /s/ Hideki Kawai
 	 
	 	Hideki Kawai 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                                   /s/ Takanori Yoshioka
 	 
	 	Takanori Yoshioka 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                                    /s/ Satoshi Shikami
 	 
	 	Satoshi Shikami 	 
	 	 	 

-30-

 

	 	 	 	 	 

Exhibit A            Schedule of Exceptions

     Schedule 4.5         Share Ownership

     Schedule 4.8         Corporate Authority of the Company

     Schedule 4.9         Capitalization of Company

     Schedule 4.10       Title to Assets

     Schedule 4.12       Financial Statements

     Schedule 4.13       Absence of Undisclosed Liabilities and Obligations

     Schedule 4.15       Indebtedness for Borrowed Money

     Schedule 4.17       Intellectual Property

     Schedule 4.19       License, Compliance with Laws, Regulations, etc.

     Schedule 4.20       Contracts

     Schedule 4.22       Warranty — Product Liability

Exhibit B            Articles of Incorporation of Company

Schedule 3.2       Certificate of the board resolution of the company approving share transfer contemplated under the Agreement

-31-

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