Document:

exv10w4

 

EXHIBIT 10.4

Execution Copy

 

 

COMBINATION AGREEMENT

By and Among

INTEGRATED PRODUCTION SERVICES, INC.,

COMPLETE ENERGY SERVICES, INC.,

COMPLETE ENERGY SERVICES, LLC,

I.E. MILLER SERVICES, INC.,

and

I.E. MILLER SERVICES, LLC

Dated as of August 9, 2005

 

 

COMBINATION AGREEMENT

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II THE COMPLETE MERGER	 	 	8	 
	 
	 	Section 2.1	 	Merger of Complete into Merger Sub-CES	 	 	8	 
	 
	 	Section 2.2	 	Effect of the Merger	 	 	9	 
	 
	 	Section 2.3	 	Certificate of Formation	 	 	9	 
	 
	 	Section 2.4	 	Operating Agreement	 	 	9	 
	 
	 	Section 2.5	 	Officers and Managers	 	 	9	 
	 
	 	Section 2.6	 	Membership Interests of Merger Sub-CES	 	 	9	 
	 
	 	Section 2.7	 	Complete Common Stock	 	 	9	 
	 
	 	Section 2.8	 	Complete Stock Options	 	 	10	 
	 
	 	Section 2.9	 	IPS Common Stock	 	 	10	 
	 
	 	Section 2.10	 	Issuance of New Certificates	 	 	10	 
	 
	 	Section 2.11	 	Lost Certificates	 	 	10	 
	 
	 	Section 2.12	 	Complete Stock Transfer Books	 	 	11	 
	 
	 	Section 2.13	 	Certificate Legends	 	 	11	 
	 
	 	Section 2.14	 	Fractional Shares	 	 	11	 
	 
	 	Section 2.15	 	Appraisal Rights	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III THE I.E. MILLER MERGER	 	 	12	 
	 
	 	Section 3.1	 	Merger of I.E. Miller into Merger Sub-IEM	 	 	12	 
	 
	 	Section 3.2	 	Effect of the I.E. Miller Merger	 	 	12	 
	 
	 	Section 3.3	 	Certificate of Formation	 	 	12	 
	 
	 	Section 3.4	 	Operating Agreement	 	 	12	 
	 
	 	Section 3.5	 	Officers and Managers	 	 	12	 
	 
	 	Section 3.6	 	Membership Interests of Merger Sub-IEM	 	 	12	 
	 
	 	Section 3.7	 	I.E. Miller Common Stock	 	 	12	 
	 
	 	Section 3.8	 	I.E. Miller Stock Options	 	 	13	 
	 
	 	Section 3.9	 	IPS Common Stock	 	 	13	 
	 
	 	Section 3.10	 	Issuance of New Certificates	 	 	13	 
	 
	 	Section 3.11	 	Lost Certificates	 	 	14	 
	 
	 	Section 3.12	 	I.E. Miller Stock Transfer Books	 	 	14	 
	 
	 	Section 3.13	 	Certificate Legends	 	 	14	 
	 
	 	Section 3.14	 	Fractional Shares	 	 	14	 
	 
	 	Section 3.15	 	Appraisal Rights	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV CLOSING	 	 	15	 
	 
	 	Section 4.1	 	Time and Place	 	 	15	 
	 
	 	Section 4.2	 	Deliveries at Closing	 	 	15	 
	 
	 	Section 4.3	 	Payment of Dividend	 	 	15	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF COMPLETE	 	 	16	 
	 
	 	Section 5.1	 	Organization; Qualification	 	 	16	 
	 
	 	Section 5.2	 	Subsidiaries	 	 	16	 
	 
	 	Section 5.3	 	Capitalization	 	 	16	 
	 
	 	Section 5.4	 	Authority, Authorization and Enforceability	 	 	17	 
	 
	 	Section 5.5	 	Financial Statements	 	 	17	 
	 
	 	Section 5.6	 	No Undisclosed Liabilities	 	 	17	 
	 
	 	Section 5.7	 	No Violation	 	 	17	 
	 
	 	Section 5.8	 	Compliance with Laws; Permits	 	 	18	 
	 
	 	Section 5.9	 	Litigation	 	 	18	 
	 
	 	Section 5.10	 	Accuracy of Confidential Solicitation Statement	 	 	19	 
	 
	 	Section 5.11	 	Title to Assets	 	 	19	 
	 
	 	Section 5.12	 	Tax Matters	 	 	19	 
	 
	 	Section 5.13	 	Intellectual Property	 	 	21	 
	 
	 	Section 5.14	 	Environmental Matters	 	 	22	 
	 
	 	Section 5.15	 	Benefit Plans and Material Documents	 	 	23	 
	 
	 	Section 5.16	 	Material Contracts	 	 	26	 
	 
	 	Section 5.17	 	Real Property	 	 	28	 
	 
	 	Section 5.18	 	Absence of Certain Changes	 	 	28	 
	 
	 	Section 5.19	 	Insurance Coverage	 	 	29	 
	 
	 	Section 5.20	 	Affiliate Transactions	 	 	29	 
	 
	 	Section 5.21	 	Customer, Supplier and Employee Relations	 	 	29	 
	 
	 	Section 5.22	 	Other Employment Matters	 	 	30	 
	 
	 	Section 5.23	 	Product and Service Warranties; Liability Defects; Liability	 	 	31	 
	 
	 	Section 5.24	 	Finders’ Fees	 	 	31	 
	 
	 	Section 5.25	 	Fairness Opinion	 	 	31	 
	 
	 	Section 5.26	 	Disclaimer of Other Representations and Warranties	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF I.E. MILLER	 	 	31	 
	 
	 	Section 6.1	 	Organization; Qualification	 	 	31	 
	 
	 	Section 6.2	 	Subsidiaries	 	 	32	 
	 
	 	Section 6.3	 	Capitalization	 	 	32	 
	 
	 	Section 6.4	 	Authority, Authorization and Enforceability	 	 	32	 
	 
	 	Section 6.5	 	Financial Statements	 	 	33	 
	 
	 	Section 6.6	 	No Undisclosed Liabilities	 	 	33	 
	 
	 	Section 6.7	 	No Violation	 	 	33	 
	 
	 	Section 6.8	 	Compliance with Laws; Permits	 	 	33	 
	 
	 	Section 6.9	 	Litigation	 	 	34	 
	 
	 	Section 6.10	 	Accuracy of Confidential Solicitation Statement	 	 	34	 
	 
	 	Section 6.11	 	Title to Assets	 	 	34	 
	 
	 	Section 6.12	 	Tax Matters	 	 	35	 
	 
	 	Section 6.13	 	Intellectual Property	 	 	37	 
	 
	 	Section 6.14	 	Environmental Matters	 	 	37	 
	 
	 	Section 6.15	 	Benefit Plans and Material Documents	 	 	39	 
	 
	 	Section 6.16	 	Material Contracts	 	 	42	 
	 
	 	Section 6.17	 	Real Property	 	 	43	 
	 
	 	Section 6.18	 	Absence of Certain Changes	 	 	44	 

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	 	 	 	 	Page	 
	 
	 	Section 6.19	 	Insurance Coverage	 	 	44	 
	 
	 	Section 6.20	 	Affiliate Transactions	 	 	45	 
	 
	 	Section 6.21	 	Customer, Supplier and Employee Relations	 	 	45	 
	 
	 	Section 6.22	 	Other Employment Matters	 	 	45	 
	 
	 	Section 6.23	 	Product and Service Warranties; Liability Defects; Liability	 	 	46	 
	 
	 	Section 6.24	 	Finders’ Fees	 	 	46	 
	 
	 	Section 6.25	 	Fairness Opinion	 	 	46	 
	 
	 	Section 6.26	 	Disclaimer of Other Representations and Warranties	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES OF IPS	 	 	47	 
	 
	 	Section 7.1	 	Organization; Qualification	 	 	47	 
	 
	 	Section 7.2	 	Subsidiaries	 	 	47	 
	 
	 	Section 7.3	 	Capitalization	 	 	47	 
	 
	 	Section 7.4	 	Authority, Authorization and Enforceability	 	 	48	 
	 
	 	Section 7.5	 	Financial Statements	 	 	48	 
	 
	 	Section 7.6	 	No Undisclosed Liabilities	 	 	49	 
	 
	 	Section 7.7	 	No Violation	 	 	49	 
	 
	 	Section 7.8	 	Compliance with Laws; Permits	 	 	49	 
	 
	 	Section 7.9	 	Litigation	 	 	50	 
	 
	 	Section 7.10	 	Accuracy of Confidential Solicitation Statement	 	 	50	 
	 
	 	Section 7.11	 	Title to Assets	 	 	50	 
	 
	 	Section 7.12	 	Tax Matters	 	 	50	 
	 
	 	Section 7.13	 	Intellectual Property	 	 	52	 
	 
	 	Section 7.14	 	Environmental Matters	 	 	53	 
	 
	 	Section 7.15	 	Benefit Plans and Material Documents	 	 	54	 
	 
	 	Section 7.16	 	Material Contracts	 	 	57	 
	 
	 	Section 7.17	 	Real Property	 	 	59	 
	 
	 	Section 7.18	 	Absence of Certain Changes	 	 	59	 
	 
	 	Section 7.19	 	Insurance Coverage	 	 	59	 
	 
	 	Section 7.20	 	Affiliate Transactions	 	 	60	 
	 
	 	Section 7.21	 	Customer, Supplier and Employee Relations	 	 	60	 
	 
	 	Section 7.22	 	Other Employment Matters	 	 	60	 
	 
	 	Section 7.23	 	Product and Service Warranties; Liability Defects; Liability	 	 	61	 
	 
	 	Section 7.24	 	Finders’ Fees	 	 	61	 
	 
	 	Section 7.25	 	Fairness Opinion	 	 	62	 
	 
	 	Section 7.26	 	Merger Sub Matters	 	 	62	 
	 
	 	Section 7.27	 	Disclaimer of Other Representations and Warranties	 	 	62	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII COVENANTS	 	 	62	 
	 
	 	Section 8.1	 	Ordinary Course of Business	 	 	62	 
	 
	 	Section 8.2	 	Restricted Activities and Transactions	 	 	62	 
	 
	 	Section 8.3	 	Insurance	 	 	64	 
	 
	 	Section 8.4	 	Confidentiality	 	 	64	 
	 
	 	Section 8.5	 	Regulatory Matters	 	 	65	 
	 
	 	Section 8.6	 	Commercially Reasonable Efforts	 	 	65	 
	 
	 	Section 8.7	 	Access to Information	 	 	65	 
	 
	 	Section 8.8	 	Tax Treatment	 	 	65	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	Section 8.9	 	Agreements	 	 	66	 
	 
	 	Section 8.10	 	Notification of Certain Matters	 	 	66	 
	 
	 	Section 8.11	 	Exclusive Dealing	 	 	66	 
	 
	 	Section 8.12	 	Further Assurances	 	 	66	 
	 
	 	Section 8.13	 	Indemnification	 	 	66	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX CONDITIONS	 	 	67	 
	 
	 	Section 9.1	 	Conditions to Obligations of Each Party	 	 	67	 
	 
	 	Section 9.2	 	Conditions to the Obligations of Complete	 	 	69	 
	 
	 	Section 9.3	 	Conditions to the Obligations of I.E. Miller	 	 	71	 
	 
	 	Section 9.4	 	Conditions to the Obligations of IPS and Merger Subs	 	 	72	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X TERMINATION	 	 	74	 
	 
	 	Section 10.1	 	Termination	 	 	74	 
	 
	 	Section 10.2	 	Effect of Termination	 	 	74	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	74	 
	 
	 	Section 11.1	 	Waiver and Amendment	 	 	74	 
	 
	 	Section 11.2	 	Nonsurvival of Representations and Warranties	 	 	74	 
	 
	 	Section 11.3	 	Assignment	 	 	75	 
	 
	 	Section 11.4	 	Notices	 	 	75	 
	 
	 	Section 11.5	 	Governing Law	 	 	76	 
	 
	 	Section 11.6	 	Severability	 	 	76	 
	 
	 	Section 11.7	 	Counterparts	 	 	76	 
	 
	 	Section 11.8	 	Headings	 	 	76	 
	 
	 	Section 11.9	 	Enforcement of the Agreement	 	 	76	 
	 
	 	Section 11.10	 	Agreement; Third Party Beneficiaries	 	 	77	 
	 
	 	Section 11.11	 	Fees and Expenses	 	 	77	 

iv

 

EXHIBITS AND SCHEDULES

	 	 	 	 	 
	 

	 	EXHIBITS	 	 
	 
	 	 	 	 
	Exhibit A

	 	Form of Amended and Restated Shareholders Agreement of IPS
	 	 
	Exhibit B

	 	Combined Company Financial Statements	 	 
	Exhibit C

	 	Form of Shareholders Consent of SCF and the stockholders of Complete	 	 
	Exhibit D

	 	Form of Shareholders Consent of SCF and the stockholders of I.E. Miller	 	 
	Exhibit E

	 	Form of Shareholders Consent of SCF and the stockholders of IPS	 	 
	Exhibit F

	 	Form of Amended and Restated Certificate of Incorporation for IPS	 	 
	Exhibit G

	 	Form of Amended and Restated Bylaws of IPS	 	 
	Exhibit H

	 	Commitment Letter	 	 
	 
	 	 	 	 
	 

	 	SCHEDULES	 	 
	 
	 	 	 	 
	Complete Disclosure Schedule	 	 
	 
	 	 	 	 
	Section 5.2

	 	Subsidiaries	 	 
	Section 5.3

	 	Capitalization	 	 
	Section 5.6

	 	No Undisclosed Liabilities	 	 
	Section 5.7

	 	No Violation	 	 
	Section 5.8

	 	Compliance with Laws; Permits	 	 
	Section 5.9

	 	Litigation	 	 
	Section 5.11

	 	Title of Assets	 	 
	Section 5.12

	 	Tax Matters	 	 
	Section 5.13

	 	Intellectual Property	 	 
	Section 5.14

	 	Environmental Matters	 	 
	Section 5.15

	 	Benefit Plans and Material Documents	 	 
	Section 5.16

	 	Material Contracts	 	 
	Section 5.17

	 	Real Property	 	 
	Section 5.18

	 	Absence of Certain Changes	 	 
	Section 5.19

	 	Insurance Coverage	 	 
	Section 5.20

	 	Affiliate Transactions	 	 
	Section 5.21

	 	Customer, Supplier and Employee Relations	 	 
	Section 5.22

	 	Other Employment Matters	 	 
	Section 5.23

	 	Product and Service Warranties; Liability Defects; Liability	 	 
	Section 8.2(h)

	 	Proposed Acquisitions	 	 
	 
	 	 	 	 
	I.E. Miller Disclosure Schedule	 	 
	 
	 	 	 	 
	Section 6.2

	 	Subsidiaries	 	 
	Section 6.3

	 	Capitalization	 	 
	Section 6.6

	 	No Undisclosed Liabilities	 	 
	Section 6.7

	 	No Violation	 	 
	Section 6.8

	 	Compliance with Laws; Permits	 	 
	Section 6.9

	 	Litigation	 	 
	Section 6.11

	 	Title of Assets	 	 

v

 

	 	 	 	 	 
	Section 6.12

	 	Tax Matters	 	 
	Section 6.13

	 	Intellectual Property	 	 
	Section 6.14

	 	Environmental Matters	 	 
	Section 6.15

	 	Benefit Plans and Material Documents	 	 
	Section 6.16

	 	Material Contracts	 	 
	Section 6.17

	 	Real Property	 	 
	Section 6.18

	 	Absence of Certain Changes	 	 
	Section 6.19

	 	Insurance Coverage	 	 
	Section 6.20

	 	Affiliate Transactions	 	 
	Section 6.21

	 	Customer, Supplier and Employee Relations	 	 
	Section 6.22

	 	Other Employment Matters	 	 
	Section 6.23

	 	Product and Service Warranties; Liability Defects; Liability	 	 
	 
	 	 	 	 
	 IPS Disclosure Schedules	 	 
	 
	 	 	 	 
	Section 7.2

	 	Subsidiaries	 	 
	Section 7.3

	 	Capitalization	 	 
	Section 7.6

	 	No Undisclosed Liabilities	 	 
	Section 7.7

	 	No Violation	 	 
	Section 7.8

	 	Compliance with Laws; Permits	 	 
	Section 7.9

	 	Litigation	 	 
	Section 7.11

	 	Title of Assets	 	 
	Section 7.12

	 	Tax Matters	 	 
	Section 7.13

	 	Intellectual Property	 	 
	Section 7.14

	 	Environmental Matters	 	 
	Section 7.15

	 	Benefit Plans and Material Documents	 	 
	Section 7.16

	 	Material Contracts	 	 
	Section 7.17

	 	Real Property	 	 
	Section 7.18

	 	Absence of Certain Changes	 	 
	Section 7.19

	 	Insurance Coverage	 	 
	Section 7.20

	 	Affiliate Transactions	 	 
	Section 7.21

	 	Customer, Supplier and Employee Relations	 	 
	Section 7.22

	 	Other Employment Matters	 	 
	Section 7.23

	 	Product and Service Warranties; Liability Defects; Liability	 	 
	 
	 	 	 	 
	Condition Schedules	 	 
	 
	 	 	 	 
	Schedule 8.9

	 	Agreements to be Terminated at Closing	 	 
	Schedule 9.1(i)

	 	 IPS Directors	 	 
	Schedule 9.2(h)

	 	 Indebtedness to be Paid at Closing	 	 
	Schedule 9.2(i)

	 	 Third Party Consents and Approvals	 	 
	Schedule 9.2(j)

	 	 Form of Legal Opinion	 	 

vi

 

COMBINATION AGREEMENT

     This Combination Agreement, dated as of August 9, 2005 (this “Agreement”), is by and
among Integrated Production Services, Inc., a Delaware corporation (“IPS”), Complete Energy
Services, Inc., a Delaware corporation (“Complete”), Complete Energy Services, LLC, a
Delaware limited liability company (“Merger Sub-CES”), I.E. Miller Services, Inc., a
Delaware corporation (“I.E. Miller”) and I.E. Miller Services, LLC, a Delaware limited
liability company (“Merger Sub-IEM”).

W I T N E S S E T H:

     WHEREAS, the parties to this Agreement desire to effect a combination of the businesses
conducted by IPS, Complete and I.E. Miller (collectively, the “Combining Companies”);

     WHEREAS, in order to effectuate the foregoing, Complete, upon the terms and subject to the
conditions of this Agreement and in accordance with the General Corporation Law of the State of
Delaware (the “DGCL”) and the Limited Liability Company Act of the State of Delaware (the
“DLLCA”), will merge with and into Merger Sub-CES in a merger (the “Complete
Merger”) in which Merger Sub-CES shall be the surviving company, and I.E. Miller, upon the
terms and subject to the conditions of this Agreement and in accordance with the DGCL and the
DLLCA, will merge with and into Merger Sub-IEM in a merger (the “I.E. Miller Merger” and
together with the Complete Merger, the “Mergers”) in which Merger Sub-IEM shall be the
surviving company;

     WHEREAS, the respective committees of independent directors (not affiliated with SCF) (the
“Independent Committees”) of the Boards of Directors of IPS, Complete and I.E. Miller have
each recommended this Agreement to its respective Board of Directors; and

     WHEREAS, the respective Boards of Directors of IPS, Complete and I.E. Miller have each
determined that the Mergers are advisable and in the best interest of their respective stockholders
and have approved this Agreement upon the terms and subject to the conditions set forth in this
Agreement and the sole members of Merger Sub—CES and Merger Sub—IEM have approved the Mergers upon
the terms and subject to the conditions set forth in this Agreement.

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

1

 

ARTICLE I

DEFINITIONS

     The terms set forth below in this Article I shall have the meanings ascribed to them
below or in the part of this Agreement referred to below:

     “Affiliate” shall mean a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified. As used in this definition, the term “control” (including the terms “controlling,”
“controlled by,” and “under common control with”) means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

     “Agreement” shall have the meaning specified in the opening paragraph hereof.

     “Benefit Plan” shall mean any employee benefit plan within the meaning of Section 3(3)
of ERISA, and any other plan, program, agreement, arrangement, policy, contract, commitment or
scheme, written or oral, statutory or contractual, that provides for compensation or benefits,
including any deferred compensation, executive compensation, bonus or incentive plan, any cafeteria
plan or any holiday or vacation plan or practice.

     “Business Day” shall mean any day other than a Saturday, a Sunday or any other day
when banks are not open for business in Houston, Texas.

     “Capital Stock” shall mean (a) with respect to any Person that is a corporation, any
and all shares, interests, participation or other equivalents (however designated and whether or
not voting) of corporate stock, including the common stock of such Person, and (b) with respect to
any Person that is not a corporation, any and all partnership, membership or other equity interests
of such Person.

     “Capitalized Lease Obligations” shall mean the obligations of such Person that are
required to be classified and accounted for as capital lease obligations under GAAP, together with
all obligations to make termination payments under such capitalized lease obligations.

     “Closing” shall have the meaning set forth in Section 4.1.

     “Closing Date” shall have the meaning set forth in Section 4.1.

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Combining Companies” shall have the meaning set forth in the recitals hereof.

     “Complete” shall have the meaning specified in the opening paragraph hereof.

     “Complete Common Stock” shall mean the common stock, par value $.01 per share, of
Complete.

2

 

     “Complete Disclosure Schedule” shall have the meaning set forth in Article V.

     “Complete Dissenting Shares” shall have the meaning set forth in Section 2.15.

     “Complete Dissenting Stockholders” shall have the meaning set forth in Section
2.15.

     “Complete Financial Statements” shall have the meaning set forth in Section
5.5.

     “Complete Leased Real Property” shall have the meaning set forth in Section
5.17(b).

     “Complete Material Contract” shall have the meaning set forth in Section
5.16(a).

     “Complete Merger” shall have the meaning set forth in the recitals hereof.

     “Complete Option” shall have the meaning set forth in Section 2.8.

     “Complete Option Plan” shall mean the Complete Energy Services, Inc. 2003 Stock
Incentive Plan.

     “Complete Owned Real Property” shall have the meaning set forth in Section
5.17(a).

     “Complete Per Share Merger Consideration” shall have the meaning set forth in
Section 2.7(a).

     “Complete Real Property” shall have the meaning set forth in Section 5.17(a).

     “Complete Surviving Company” shall have the meaning set forth in Section 2.1.

     “Confidential Solicitation Statement” shall mean a solicitation statement to be mailed
as soon as reasonably practicable after the date hereof to the holders of Complete Common Stock,
the holders of I.E. Miller Common Stock and the holders of IPS Common Stock seeking their consent
for the Mergers.

     “Constituents of Concern” shall mean any substance defined as a hazardous substance,
hazardous waste, hazardous material, pollutant or contaminant by any Environmental Law, any
petroleum hydrocarbon and any degradation product of a petroleum hydrocarbon, asbestos in a friable
condition, PCB or similar substance, the generation, recycling, use, treatment, storage,
transportation, Release, disposal or exposure of or to which is subject to regulation under any
Environmental Law.

     “Contract” shall mean any lease, agreement, contract, commitment or other legally
binding contractual right or obligation (whether written or oral).

     “DGCL” shall have the meaning set forth in the recitals hereof.

     “Dividend” shall mean an aggregate dividend of $150 million to be paid to the
stockholders of IPS on or as soon as reasonably practicable after the Closing Date and following
the Effective Time.

3

 

     “DLLCA” shall have the meaning set forth in the recitals hereof.

     “Effective Time” shall mean (a) when used in the context of the Complete Merger, the
time and date of the filing of a certificate of merger with the Secretary of State of the State of
Delaware with respect to the Complete Merger or such later time and date as is specified in such
certificate of merger, (b) when used in the context of the I.E. Miller Merger, the time and date of
the filing of a certificate of merger with the Secretary of State of the State of Delaware with
respect to the I.E. Miller Merger or such later time and date as is specified in such certificate
of merger and (c) when used in the context of the Mergers collectively, the latest time and date of
the foregoing times and dates specified in clauses (a) and (b).

     “Environmental Claims” shall mean administrative, regulatory or judicial actions,
suits, written demands, demand letters, written claims, liens, citations, summonses, written
notices of non-compliance or violation, requests for information, investigations or proceedings
relating in any way to the Release of Constituents of Concern or any Environmental Law, including
(a) Environmental Claims by Governmental Authorities for enforcement, cleanup, removal, response,
remedial or other actions or damages pursuant to any applicable Environmental Law and (b)
Environmental Claims by any third party seeking damages, contribution, indemnification, cost
recovery, compensation or injunctive relief resulting from Constituents of Concern or arising from
an alleged injury or threat of injury to human health and safety or the environment.

     “Environmental Condition” shall mean with respect to a particular Combining Company or
its Subsidiaries a condition with respect to the environment that has resulted or would reasonably
be expected to result in a material loss, liability, cost or expense to such Combining Company or
its Subsidiaries.

     “Environmental Law” shall mean any Law, administrative interpretation having the force
and effect of law, administrative order, consent decree or judgment relating to the environment,
human health and safety, including CERCLA, and any state and local counterparts or equivalents.

     “Environmental Permits” shall mean all Permits issued by Governmental Authorities that
are required by Environmental Laws.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Existing Policy” shall mean have the meaning set forth in Section 8.13(b).

     “Financing” shall mean the debt financing described in the commitment letter attached
hereto as Exhibit H.

     “Foreign Plan” shall mean each Benefit Plan that is a governmental or nongovernmental
and/or industrial or nonindustrial retirement, welfare or other benefit plan, program, agreement or
arrangement respecting the foreign operations of any Subsidiary of a Combining Company

4

 

organized outside the United States or its territories and for the benefit of any current or
former employee, officer or director of any Subsidiary of a Combining Company organized outside the
United States or its territories.

     “GAAP” shall mean U.S. generally accepted accounting principles, consistently applied.

     “Governmental Authorities” shall mean the country, state, province, county, city and
political subdivisions in which any property of IPS, Complete or I.E. Miller, respectively, is
located or which exercises jurisdiction over any such property or entity, and any agency,
department, commission, board, bureau or instrumentality of any of them which exercises
jurisdiction over any such property or entity.

     “I.E. Miller” shall have the meaning specified in the opening paragraph hereof.

     “I.E. Miller Common Stock” shall mean the common stock, par value $.01 per share, of
I.E. Miller.

     “I.E. Miller Disclosure Schedule” shall have the meaning set forth in Article
VI.

     “I.E Miller Dissenting Shares” shall have the meaning set forth in Section
3.15.

     “I.E Miller Dissenting Stockholders” shall have the meaning set forth in Section
3.15.

     “I.E. Miller Financial Statements” shall have the meaning set forth in Section
6.5.

     “I.E. Miller Leased Real Property” shall have the meaning set forth in Section
6.17(b).

     “I.E. Miller Material Contracts” shall have the meaning set forth in Section
6.16(a).

     “I.E. Miller Merger” shall have the meaning set forth in the recitals hereof.

     “I.E. Miller Option” shall have the meaning set forth in Section 3.8.

     “I.E. Miller Option Plan” shall mean the I.E. Miller Services, Inc. 2004 Stock
Incentive Plan.

     “I.E. Miller Owned Real Property” shall have the meaning set forth in Section
6.17(a).

     “I.E. Miller Per Share Merger Consideration” shall have the meaning set forth in
Section 3.7(a).

     “I.E. Miller Real Property” shall have the meaning set forth in Section
6.17(b).

     “I.E. Miller Surviving Company” shall have the meaning set forth in Section
3.1.

     “Indebtedness” shall mean with respect to any Person, at any date, without
duplication, (a) all obligations of such Person for borrowed money, including all principal,
interest, premiums, fees, expenses, overdrafts and penalties with respect thereto, (b) all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c)
all

5

 

obligations of such Person to pay the deferred purchase price of the property or services,
except trade payables incurred in the ordinary course of business, (d) all obligations of such
Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit or
similar instrument that have been drawn upon, (e) all Capitalized Lease Obligations, (f) all other
obligations of a Person which would be required to be shown as indebtedness on a balance sheet of
such Person prepared in accordance with GAAP, and (g) all indebtedness of any other Person of the
type referred to in clauses (a) to (f) above directly or indirectly guaranteed by such Person or
secured by any assets of such Person, whether or not such Indebtedness has been assumed by such
Person.

     “Indemnified Persons” shall have the meaning set forth in Section 8.13.

     “Independent Committees” shall have the meaning set forth in the recitals hereof.

     “Intellectual Property Right” means any trademark, service mark, trade name, trade
secret, patent, copyright, domain name (including applications for registration or renewal of any
of the foregoing), or any other similar type of proprietary intellectual property right.

     “IPS” shall have the meaning specified in the opening paragraph hereof.

     “IPS Common Stock” shall mean the common stock of IPS, par value $.01 per share.

     “IPS Disclosure Schedule” shall have the meaning set forth in Article VII.

     “IPS Financial Statements” shall have the meaning set forth in Section 7.5.

     “IPS Leased Real Property” shall have the meaning set forth in Section
7.17(b).

     “IPS Lenders” shall mean the lenders in the Financing.

     “IPS Material Contract” shall have the meaning set forth in Section 7.16(a).

     “IPS Owned Real Property” shall have the meaning set forth in Section 7.17(a).

     “IPS Preferred Stock” shall have the meaning set forth in Section 7.3.

     “IPS Real Property” shall have the meaning set forth in Section 7.17(b).

     “Knowledge” shall mean (a) in the case of Complete, the actual knowledge of Joseph C.
Winkler, Mike Mayer and Thomas Burke, (b) in the case of I.E. Miller, the actual knowledge of Eddie
Soileau and Sherry Flato, and (c) in the case of IPS, the actual knowledge of Brian K. Moore, James
Hill and Roger Rivet.

     “Latest Complete Balance Sheet” shall mean the unaudited consolidated balance sheet of
Complete and its Subsidiaries as of June 30, 2005 contained in Exhibit B attached hereto.

     “Latest I.E. Miller Balance Sheet” shall mean the unaudited consolidated balance sheet
of I.E. Miller and its Subsidiaries as of June 30, 2005 contained in Exhibit B attached
hereto.

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     “Latest IPS Balance Sheet” shall mean the unaudited consolidated balance sheet of IPS
and its Subsidiaries as of June 30, 2005 contained in Exhibit B attached hereto.

     “Laws” shall mean any law, statute, code, ordinance, order, rule, regulation,
judgment, decree, injunction, franchise, permit, certificate, license, authorization, or other
directional requirement (including, without limitation, any of the foregoing that relates to
environmental standards or controls, energy regulations and occupational, safety and health
standards or controls) of any Governmental Authority.

     “Liens” shall mean any lien, pledge, charge, mortgage, security interest, encumbrance,
or other adverse claim of any kind whatsoever.

     “Material Adverse Effect” shall mean with respect to any Combining Company any event,
occurrence, fact, condition, change, development or effect, individually or in the aggregate
(referred to herein as an “Event”), that has had or would reasonably likely to result in a
material adverse change in the financial condition, results of operations, assets, business or
properties of such Combining Company and its Subsidiaries, taken as a whole; provided,
however, a Material Adverse Effect shall exclude any adverse changes or conditions to the
extent such changes or conditions result from a general decline in the business of the oilfield
services industry as a whole.

     “Merger Sub-CES” shall have the meaning specified in the opening paragraph hereof.

     “Merger Sub-IEM” shall have the meaning specified in the opening paragraph hereof.

     “Mergers” shall have the meaning set forth in the recitals hereof.

     “Order” shall mean any judgment, injunction, judicial or administrative order or
decree.

     “Permits” shall have the meaning set forth in Section 5.8(b).

     “Permitted Lien” shall mean (a) mechanics’ Liens, workmen’s Liens, carriers’ Liens,
repairmen’s Liens, landlord’s Liens or other like Liens arising or incurred in the ordinary course
of business consistent with past practices in respect of obligations that are not overdue, (b)
statutory Liens for Taxes, assessments and other similar governmental charges that are not overdue,
(c) Liens incurred or deposits made to secure the performance of bids, contracts, statutory
obligations, surety and appeal bonds incurred in connection with the business of the respective
Combining Company and its Subsidiaries and in the ordinary course of such business consistent with
past practices, or (d) Liens that arise under zoning, land use and other similar imperfections of
title that arise in the ordinary course of business and that, in the aggregate, could not
reasonably be expected to materially affect the value, use or marketability of the property subject
thereto.

     “Person” shall mean an individual, corporation, partnership, limited liability
company, joint venture, association, trust or other entity or organization or Governmental
Authority.

     “Release” shall mean any release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the environment (including
ambient air,

7

 

surface water, groundwater and surface or subsurface strata) or into or out of any real
property and related improvements, including the movement of Constituents of Concern through or in
the air, soil, surface water, groundwater or property.

     “SCF” shall mean SCF-IV, L.P., a Delaware limited partnership.

     “Subsidiary” shall mean, when used with reference to any entity, any corporation or
other entity a majority of the outstanding voting securities of which are owned directly or
indirectly by such entity.

     “Tail Period” shall have the meaning set forth in Section 8.13(b).

     “Tail Policy” shall have the meaning set forth in Section 8.13(b).

     “Tax” shall mean with respect to any Person (a) any net income, alternative or add-on
minimum, gross income, gross receipts, sales, use, ad valorem, value added,
transfer, franchise, profits, license, withholding on amounts paid by such Person, payroll,
employment, excise, severance, stamp, occupation, premium, property, environmental or windfall
profit, custom, duty or other tax, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest, penalty, addition to tax or additional amount imposed by
any Taxing Authority, (b) any liability of such Person for the payment of any amounts of any of the
foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary
group, or being a party to any agreement or arrangement whereby liability of such Person for
payment of such amounts was determined or taken into account with reference to the liability of any
other Person, and (c) any liability of such Person for the payment of any amounts as a result of
being a party to any Tax-Sharing Agreement or with respect to the payment of any amounts of any of
the foregoing types as a result of any express or implied obligation to indemnify any other Person.

     “Tax Returns” shall mean returns, declarations, reports, claims for refund,
information returns or other documents (including any related or supporting schedules, statements
or information) and including any amendment thereof filed or required to be filed in connection
with the determination, assessment or collection of Taxes of any party or the administration of any
Laws relating to any Taxes.

     “Tax-Sharing Agreements” shall mean all existing Tax-sharing agreements or
arrangements (whether or not written) that are binding on any Combining Company or its
Subsidiaries.

ARTICLE II

THE COMPLETE MERGER

     Section 2.1 Merger of Complete into Merger Sub-CES. Subject to the provisions of this
Agreement, on the Closing Date the parties shall file with the Secretary of State of the State of
Delaware a certificate of merger with respect to the Complete Merger, executed in accordance with
the relevant provisions of the DGCL and the DLLCA. At the Effective Time, Complete shall merge
with and into Merger Sub-CES and the separate existence of Complete shall cease.

8

 

Merger Sub-CES shall be the surviving company in the Complete Merger (hereinafter sometimes
referred to as the “Complete Surviving Company”) and its separate existence, with all its
purposes, objects, rights, privileges, powers and franchises, shall continue unaffected and
unimpaired by the Complete Merger.

     Section 2.2 Effect of the Merger. The Complete Merger shall have the effects provided
for in the DGCL and the DLLCA.

     Section 2.3 Certificate of Formation. From the Effective Time until duly amended, the
Certificate of Formation of the Complete Surviving Company shall be identical to the Certificate of
Formation, as amended or restated, of Merger Sub—CES immediately prior to the Effective Time.

     Section 2.4 Operating Agreement. From the Effective Time until duly amended, the
operating agreement of the Complete Surviving Company shall be identical to the operating agreement
of Merger Sub—CES immediately prior to the Effective Time.

     Section 2.5 Officers and Managers. IPS and Complete shall take all necessary action
to cause the Managing Member of Merger Sub—CES immediately prior to the Effective Time to be the
Managing Member of the Complete Surviving Company immediately following the Effective Time, until
its successor is duly elected or appointed and qualified or its earlier death, resignation or
removal in accordance with the Certificate of Formation and operating agreement of the Complete
Surviving Company. The duly elected officers of Complete who hold office immediately prior to the
Effective Time shall be the officers of the Complete Surviving Company and shall thereafter
continue to hold such positions until their successors have been duly elected.

     Section 2.6 Membership Interests of Merger Sub-CES. Each membership interest of
Merger Sub-CES outstanding immediately prior to the Effective Time shall be unchanged and shall
remain issued and outstanding.

     Section 2.7 Complete Common Stock.

     (a) Each share of Complete Common Stock outstanding immediately prior to the Effective
Time shall by virtue of the Complete Merger and without any further action by the holder
thereof cease to be outstanding and shall be cancelled and retired and cease to exist and
shall be converted into 19.704 shares of IPS Common Stock (the “Complete Per Share
Merger Consideration”), and each certificate which immediately prior to the Effective
Time represented outstanding shares of Complete Common Stock shall at and after the
Effective Time be deemed for all purposes to represent that number of shares of IPS Common
Stock into which such shares of Complete Common Stock are convertible pursuant to this
Section 2.7(a).

     (b) All shares of Complete Common Stock which immediately prior to the Effective Time
are held in the treasury of Complete or owned by IPS or by any subsidiaries of Complete
shall at the Effective Time be cancelled and retired and cease to exist, without the payment
of any consideration therefor or any conversion thereof into IPS Common Stock.

9

 

     Section 2.8 Complete Stock Options. Before the Closing, the Board of Directors of
Complete (or, if appropriate, any committee of the Board of Directors of Complete administering the
Complete Option Plan) shall adopt such resolutions or take such other actions as may be required to
effect adjustments to the terms of all options outstanding under the Complete Option Plan to
provide that each such option outstanding immediately prior to the Effective Time (each, a
“Complete Option”) shall be converted as of the Effective Time into an option to purchase
the number of shares of IPS Common Stock equal to the Complete Per Share Merger Consideration,
multiplied by the number of shares of Complete Common Stock that could have been obtained
immediately prior to the Effective Time upon the exercise of each such option as if such options
were fully vested at such time, at an exercise price per share equal to the aggregate exercise
price for the shares of Complete Common Stock purchasable pursuant to such Complete Option
immediately prior to its conversion divided by the aggregate number of shares of IPS Common Stock
purchasable pursuant to such Complete Option immediately after its conversion. At the Effective
Time, IPS shall assume the Complete Option Plan, with the result that all obligations of Complete
under the Complete Option Plan shall be obligations of IPS following the Effective Time. In
connection with the Dividend, each Complete Option that has been converted into an option to
purchase IPS Common Stock pursuant to this Section 2.8 will be adjusted as set forth in Section
4.3.

     Section 2.9 IPS Common Stock. All shares of IPS Common Stock issued and outstanding
immediately prior to the Effective Time shall be unaffected by the Complete Merger.

     Section 2.10 Issuance of New Certificates. Each holder of a certificate or
certificates representing shares of Complete Common Stock immediately prior to the Effective Time
may thereafter surrender such certificate or certificates and shall be entitled, upon such
surrender, to receive in exchange therefor a certificate or certificates representing the number of
shares of IPS Common Stock into which such shares of Complete Common Stock shall have been
converted in accordance with Section 2.7 hereof. Until so surrendered, such certificate or
certificates shall be deemed to evidence the ownership of such shares of IPS Common Stock. If any
such certificate for IPS Common Stock is to be issued in a name other than that in which the
surrendered certificate is registered, it shall be a condition of such exchange that the
certificate so surrendered shall be properly endorsed or otherwise in proper form for transfer and
that the person requesting such exchange shall have paid any transfer and other taxes required by
reason of such issuance of certificates of IPS Common Stock in a name other than that of the
registered holder of the certificate surrendered, or shall have established to the satisfaction of
IPS and its transfer agent that such tax has been paid or is not applicable.

     Section 2.11 Lost Certificates. If any certificate for Complete Common Stock shall
have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person
claiming such certificate to be lost, stolen or destroyed and, if required by IPS, the posting by
such person of a bond, in such reasonable amount as IPS may direct, as indemnity against any claim
that may be made against it with respect to such certificate, IPS will deliver in exchange for such
lost, stolen or destroyed certificate a certificate or certificates representing the number of
shares of IPS Common Stock into which such shares of Complete Common Stock shall have been
converted in accordance with Section 2.7 hereof.

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     Section 2.12
Complete Stock Transfer Books. As of the Effective Time, the stock
transfer books of Complete shall be deemed closed, and no transfer of shares of Complete Common
Stock that were outstanding immediately prior to the Effective Time shall thereafter be made or
consummated.

     Section 2.13
Certificate Legends. The certificates evidencing the IPS Common Stock
delivered pursuant to Section 2.10 of this Agreement shall bear a legend substantially in
the form set forth below and containing such other information as IPS may deem necessary or
appropriate:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
AND SUCH LAWS OR PURSUANT TO AN EXEMPTION THEREFROM WHICH, IN THE OPINION OF COUNSEL
FOR THE HOLDER, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO COUNSEL FOR
THIS CORPORATION, IS AVAILABLE.

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND OTHER TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND RESTATED
STOCKHOLDERS AGREEMENT, DATED AS OF ______ ___, 2005 A COPY OF WHICH MAY BE OBTAINED
FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. 

     Section 2.14
Fractional Shares   . Notwithstanding the foregoing, no fractional
shares of IPS Common Stock or scrip shall be issued as a result of the Complete Merger. Instead of
any fractional share of IPS Common Stock which would otherwise be issuable as a result of the
Complete Merger, IPS shall pay a cash adjustment in respect of such fractional interest in a per
share amount equal to $24.63.

     Section 2.15
Appraisal Rights   . Notwithstanding anything in this Agreement to the
contrary, shares of Complete Common Stock that are issued and outstanding immediately prior to the
Effective Time and which are held by a stockholder who did not vote in favor of the Complete Merger
(or consent thereto in writing) and who is entitled to demand and properly demands appraisal of
such shares pursuant to, and who complies in all respects with, the provisions of Section 262 of
the DGCL (the “Complete Dissenting Stockholders”), shall not be converted into or be
exchangeable for the right to receive the Complete Per Share Merger Consideration (the
“Complete Dissenting Shares”), but instead such holder shall be entitled to payment of the
fair value of such shares in accordance with the provisions of Section 262 of the DGCL (and at the
Effective Time, such Complete Dissenting Shares shall no longer be outstanding and shall
automatically be canceled and shall cease to exist, and such holder shall cease to have any rights
with respect thereto, except the right to receive the fair value of such Complete Dissenting Shares
in accordance with the provisions of Section 262 of the DGCL), unless and until such holder shall
have failed to perfect or shall have effectively withdrawn or lost rights to appraisal under the
DGCL. If any Complete Dissenting Stockholder shall have failed to perfect or shall have effectively
withdrawn or lost such right, such holder’s shares of Complete Common Stock shall thereupon be
treated as if they had been converted into and became exchangeable for the right to receive, as of
the Effective Time, the Complete Per Share

11

 

Merger Consideration for each such share, in accordance with Section 2.7, without any
interest thereon. Complete shall give IPS and I.E. Miller prompt notice of any written demands for
appraisal for any shares of Complete Common Stock, attempted withdrawals of such demands and any
other instruments served pursuant to the DGCL and received by Complete relating to stockholders’
rights of appraisal.

ARTICLE III

THE
I.E. MILLER MERGER

     Section 3.1
Merger of I.E. Miller into Merger Sub-IEM. Subject to the provisions of
this Agreement, on the Closing Date the parties shall file with the Secretary of State of the State
of Delaware a certificate of merger with respect to the I.E. Miller Merger, executed in accordance
with the relevant provisions of the DGCL and the DLLCA. At the Effective Time, I.E. Miller shall
merge with and into Merger Sub-IEM and the separate existence of I.E. Miller shall cease. Merger
Sub-IEM shall be the surviving company in the I.E. Miller Merger (hereinafter sometimes referred to
as the “I.E. Miller Surviving Company”) and its separate corporate existence, with all its
purposes, objects, rights, privileges, powers and franchises, shall continue unaffected and
unimpaired by the I.E. Miller Merger.

     Section 3.2
Effect of the I.E. Miller Merger. The I.E. Miller Merger shall have the
effects provided for in the DGCL and the DLLCA.

     Section 3.3
Certificate of Formation. From the Effective Time until duly amended, the
Certificate of Formation of the I.E. Miller Surviving Company shall be identical to the Certificate
of Formation, as amended or restated, of Merger Sub-IEM immediately prior to the Effective Time.

     Section 3.4
Operating Agreement. From the Effective Time until duly amended, the
operating agreement of the I.E. Miller Surviving Company shall be identical to the operating
agreement of Merger Sub-IEM immediately prior to the Effective Time.

     Section 3.5
Officers and Managers. IPS and I.E. Miller shall take all necessary
action to cause the Managing Member of Merger Sub—IEM immediately prior to the Effective Time to be
the Managing Member of the I.E. Miller Surviving Company immediately following the Effective Time,
until its successor is duly elected or appointed and qualified or its earlier death, resignation or
removal in accordance with the Certificate of Formation and operating agreement of the I.E. Miller
Surviving Company. The duly elected officers of I.E. Miller who hold office immediately prior to
the Effective Time, shall be the officers and directors of the I.E. Miller Surviving Company and
shall thereafter continue to hold such positions until their successors have been duly elected.

     Section 3.6
Membership Interests of Merger Sub-IEM. Each membership interest of
Merger Sub-IEM outstanding immediately prior to the Effective Time shall be unchanged and shall
remain issued and outstanding.

     Section 3.7 I.E. Miller Common Stock.

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     (a) Each share of I.E. Miller Common Stock outstanding immediately prior to the
Effective Time shall by virtue of the I.E. Miller Merger and without any further action by
the holder thereof cease to be outstanding and shall be cancelled and retired and cease to
exist and shall be converted into 19.410 shares of IPS Common Stock (the “I.E. Miller
Per Share Merger Consideration”), and each certificate which immediately prior to the
Effective Time represented outstanding shares of I.E. Miller Common Stock shall at and after
the Effective Time be deemed for all purposes to represent that number of shares of IPS
Common Stock into which such shares of I.E. Miller Common Stock are convertible pursuant to
this Section 3.7(a).

     (b) All shares of I.E. Miller Common Stock which immediately prior to the Effective
Time are held in the treasury of I.E. Miller or owned by IPS or by any subsidiaries of I.E.
Miller shall at the Effective Time be cancelled and retired and cease to exist, without the
payment of any consideration therefor or any conversion thereof into IPS Common Stock.

     Section 3.8 I.E. Miller Stock Options. Before the Closing, the Board of Directors of
I.E. Miller (or, if appropriate, any committee of the Board of Directors of I.E. Miller
administering the I.E. Miller Option Plan) shall adopt such resolutions or take such other actions
as may be required to effect adjustments to the terms of all options outstanding under the I.E.
Miller Option Plan to provide that each such option outstanding immediately prior to the Effective
Time (each, an “I.E. Miller Option”) shall be converted as of the Effective Time into an
option to purchase the number of shares of IPS Common Stock equal to the I.E. Miller Per Share
Merger Consideration, multiplied by the number of shares of I.E. Miller Common Stock that could
have been obtained immediately prior to the Effective Time upon the exercise of each such option as
if such options were fully vested at such time, at an exercise price per share equal to the
aggregate exercise price for the shares of I.E. Miller Common Stock purchasable pursuant to such
I.E. Miller Option immediately prior to its conversion divided by the aggregate number of shares of
IPS Common Stock purchasable pursuant to such I.E. Miller Option immediately after its conversion.
At the Effective Time, IPS shall assume the I.E. Miller Option Plan, with the result that all
obligations of I.E. Miller under the I.E. Miller Option Plan shall be obligations of IPS following
the Effective Time. In connection with the Dividend, each I.E. Miller Option that has been
converted into an option to purchase IPS Common Stock pursuant to this Section 3.8 will be adjusted
as set forth in Section 4.3.

     Section 3.9 IPS Common Stock. All shares of IPS Common Stock issued and outstanding
immediately prior to the Effective Time shall be unaffected by the I.E. Miller Merger.

     Section 3.10 Issuance of New Certificates. Each holder of a certificate or
certificates representing shares of I.E. Miller Common Stock immediately prior to the Effective
Time may thereafter surrender such certificate or certificates and shall be entitled, upon such
surrender, to receive in exchange therefor a certificate or certificates representing the number of
shares of IPS Common Stock into which such shares of I.E. Miller Common Stock shall have been
converted in accordance with Section 3.7 hereof. Until so surrendered, such certificate or
certificates shall be deemed to evidence the ownership of such shares of IPS Common Stock. If any
such certificate for IPS Common Stock is to be issued in a name other than that in which the

13

 

surrendered certificate is registered, it shall be a condition of such exchange that the
certificate so surrendered shall be properly endorsed or otherwise in proper form for transfer and
that the person requesting such exchange shall have paid any transfer and other taxes required by
reason of such issuance of certificates of IPS Common Stock in a name other than that of the
registered holder of the certificate surrendered, or shall have established to the satisfaction of
IPS and its transfer agent that such tax has been paid or is not applicable.

     Section 3.11 Lost Certificates. If any certificate for I.E. Miller Common Stock shall
have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person
claiming such certificate to be lost, stolen or destroyed, and, if required by IPS, the posting by
such person of a bond, in such reasonable amount as IPS may direct, as indemnity against any claim
that may be made against it with respect to such certificate, IPS will deliver in exchange for such
lost, stolen or destroyed certificate a certificate or certificates representing the number of
shares of IPS Common Stock into which such shares of I.E. Miller Common Stock shall have been
converted in accordance with Section 3.7 hereof.

     Section 3.12 I.E. Miller Stock Transfer Books. As of the Effective Time, the stock
transfer books of I.E. Miller shall be deemed closed, and no transfer of shares of I.E. Miller
Common Stock that were outstanding immediately prior to the Effective Time shall thereafter be made
or consummated.

     Section 3.13 Certificate Legends. The certificates evidencing the IPS Common Stock
delivered pursuant to Section 3.11 of this Agreement shall bear a legend substantially in
the form set forth below and containing such other information as IPS may deem necessary or
appropriate:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND NEITHER THE
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT AND SUCH LAWS OR PURSUANT TO AN EXEMPTION THEREFROM WHICH, IN THE OPINION
OF COUNSEL FOR THE HOLDER, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO
COUNSEL FOR THIS CORPORATION, IS AVAILABLE.

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND OTHER TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND RESTATED
STOCKHOLDERS AGREEMENT, DATED AS OF
_______   ___, 2005 A COPY OF WHICH MAY BE OBTAINED
FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES.

     Section 3.14 Fractional Shares. Notwithstanding the foregoing, no fractional
shares of IPS Common Stock or scrip shall be issued as a result of the I.E. Miller Merger. Instead
of any fractional share of IPS Common Stock which would otherwise be issuable as a result of the
I.E. Miller Merger, IPS shall pay a cash adjustment in respect of such fractional interest in a per
share amount equal to $24.63.

     Section 3.15 Appraisal Rights. Notwithstanding anything in this Agreement to the
contrary, shares of I.E. Miller Common Stock that are issued and outstanding immediately prior to
the Effective Time and which are held by a stockholder who did not vote in favor of the I.E.

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Miller Merger (or consent thereto in writing) and who is entitled to demand and properly
demands appraisal of such shares pursuant to, and who complies in all respects with, the provisions
of Section 262 of the DGCL (the “I.E. Miller Dissenting Stockholders”), shall not be
converted into or be exchangeable for the right to receive the I.E. Miller Per Share Merger
Consideration (the “I.E. Miller Dissenting Shares”), but instead such holder shall be
entitled to payment of the fair value of such shares in accordance with the provisions of Section
262 of the DGCL (and at the Effective Time, such I.E. Miller Dissenting Shares shall no longer be
outstanding and shall automatically be canceled and shall cease to exist, and such holder shall
cease to have any rights with respect thereto, except the right to receive the fair value of such
I.E. Miller Dissenting Shares in accordance with the provisions of Section 262 of the DGCL), unless
and until such holder shall have failed to perfect or shall have effectively withdrawn or lost
rights to appraisal under the DGCL. If any I.E. Miller Dissenting Stockholder shall have failed to
perfect or shall have effectively withdrawn or lost such right, such holder’s shares of I.E. Miller
Common Stock shall thereupon be treated as if they had been converted into and became exchangeable
for the right to receive, as of the Effective Time, the I.E. Miller Per Share Merger Consideration
for each such share, in accordance with Section 3.7, without any interest thereon. I.E.
Miller shall give IPS and I.E. Miller prompt notice of any written demands for appraisal for any
shares of I.E. Miller Common Stock, attempted withdrawals of such demands and any other instruments
served pursuant to the DGCL and received by I.E. Miller relating to stockholders’ rights of
appraisal.

ARTICLE IV

CLOSING

     Section 4.1 Time and Place. The closing of the transactions contemplated hereby (the
“Closing”) shall be held at the offices of Vinson & Elkins L.L.P., 1001 Fannin, Houston,
Texas 77002 at 10:00 a.m., Houston time, immediately following the satisfaction or waiver of the
conditions contained in Article IX or at such other place or time as the parties hereto may
mutually agree. The date of the Closing is referred to herein as the “Closing Date.”

     Section 4.2 Deliveries at Closing. Subject to the provisions of Article IX
hereof, at the Closing there shall be delivered the documents required to be delivered pursuant to
Article IX hereof.

     Section 4.3 Payment of Dividend. On or as soon as reasonably practicable after the
Closing Date and following the Effective Time, IPS shall pay the Dividend to the holders of IPS
Common Stock, subject to the approval of the IPS Lenders. In connection with the payment of the
Dividend, each option for IPS Common Stock (including the Complete Options and the I.E. Miller
Options that have been converted to options for IPS Common Stock as set forth in Sections 2.8 and
3.8, respectively) shall be adjusted in accordance with paragraph 53 of FASB Interpretation No. 44.

15

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF COMPLETE

     Complete represents and warrants to IPS and I.E. Miller that the statements contained in this
Article V are correct and complete as of the date of this Agreement, except as set forth in
the disclosure schedule (which shall be numbered to refer to the sections contained in this
article) delivered by Complete to IPS and I.E. Miller on the date hereof (the “Complete
Disclosure Schedule”).

     Section 5.1 Organization; Qualification. Complete is a corporation duly organized
under the DGCL and is validly existing and in good standing under the laws of the State of
Delaware. Each Subsidiary of Complete is an entity duly organized under the jurisdiction of its
formation and is validly existing and in good standing under the laws of such jurisdiction.
Complete and each Subsidiary of Complete has all requisite corporate or entity power and authority
to own, operate or lease its properties and to carry on its business as now being conducted.
Complete and each Subsidiary of Complete is duly qualified to do business as a foreign corporation
or other entity and is in good standing in each jurisdiction where the character of its properties
owned, operated or leased, or the nature of its activities, makes such qualifications necessary,
except where the failure to be so qualified and in good standing will not have a Material Adverse
Effect on Complete.

     Section 5.2 Subsidiaries. Except as set forth in Section 5.2 of the Complete
Disclosure Schedule, Complete does not own any Capital Stock or other equity or ownership or
proprietary interest in any Person.

     Section 5.3 Capitalization. The authorized capital stock of Complete consists of
1,200,000 shares of Complete Common Stock, of which 818,740 shares are issued and outstanding, and
10,000 shares of preferred stock, par value $0.01 per share, 2,500 shares of which are designated
as Series A Preferred Stock, none of which shares of preferred stock are issued and outstanding.
The issued and outstanding shares of Complete Common Stock are owned of record by the persons and
in the amounts set forth in Section 5.3 of the Complete Disclosure Schedule. All of the
outstanding shares of Complete Common Stock and all of the outstanding shares of the Capital Stock
of each Subsidiary of Complete are duly authorized, validly issued, fully paid and nonassessable,
were issued free of the preemptive rights of any Person and in compliance with applicable corporate
and securities Laws. The Capital Stock of each Subsidiary of Complete is owned legally and
beneficially as set forth in Schedule 5.3 of the Complete Disclosure Schedule. Except as
set forth in Section 5.3 of the Complete Disclosure Schedule, as of the date hereof, there
are no outstanding subscriptions, options, calls, contracts, commitments, understandings,
restrictions, arrangements, rights or warrants, including any right of conversion or exchange under
any outstanding security, instrument or other agreement obligating Complete or any Subsidiary of
Complete to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of
the Capital Stock of Complete or any Subsidiary of Complete or obligating Complete or any
Subsidiary of Complete to grant, extend or enter into any such agreement or commitment. Other than
as set forth in Section 5.3 of the Complete Disclosure Schedule, there are no outstanding
contractual obligations, commitments, understandings or arrangements of Complete or any Subsidiary
of Complete to purchase, redeem

16

 

or otherwise acquire or make any payment in respect of or register under federal or state
securities laws any shares of Capital Stock of Complete or any Subsidiary of Complete.

     Section 5.4 Authority, Authorization and Enforceability. Complete has all requisite
corporate power and authority to execute and deliver this Agreement and each instrument required
hereby to be executed and delivered by it at the Closing, to perform its obligations hereunder and
thereunder and to consummate the transactions contemplated hereby and thereby. The execution and
delivery by Complete of this Agreement and each instrument required hereby to be executed and
delivered by it at the Closing and the performance of its obligations hereunder and thereunder have
been duly and validly authorized by the board of directors of Complete and the Independent
Committee of Complete, and no other corporate proceedings of Complete, other than the approval of
the stockholders of Complete contemplated by Section 9.1(c) hereof, are necessary to
authorize the execution and delivery of this Agreement or the consummation of the transactions
contemplated hereby. This Agreement and each instrument required hereby have been duly executed
and delivered by Complete and (assuming due authorization, execution and delivery hereof and
thereof by the other parties hereto and thereto) constitute the valid and legally binding
obligations of Complete, enforceable against Complete in accordance with their terms, except that
(A) such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or
other laws, decisions or equitable principles now or hereafter in effect relating to or affecting
the enforcement of creditors’ rights or debtors’ obligations generally, and to general equity
principles, and (B) the remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought.

     Section 5.5 Financial Statements. The historical financial statements of Complete
(including the related notes) set forth in Exhibit B hereto (including, the Latest Complete
Balance Sheet, and collectively, the “Complete Financial Statements”) have been prepared in
accordance with GAAP applied on a consistent basis and fairly present in all material respects the
consolidated financial position of Complete and its Subsidiaries as of the respective dates thereof
and the consolidated results of operations and changes in financial position of Complete and its
Subsidiaries for the periods indicated, except that the unaudited interim financial statements do
not contain footnote disclosure and are subject to normal and recurring year-end adjustments which
are not expected to be material in amount.

     Section 5.6 No Undisclosed Liabilities. Neither Complete nor any of its Subsidiaries
has any liabilities of any nature that are material, individually or in the aggregate, in relation
to the business of Complete and its Subsidiaries, taken as a whole (whether accrued, absolute,
contingent or otherwise) other than (a) liabilities fully provided for in the Latest Complete
Balance Sheet (including the footnotes thereto) (b) liabilities that are specifically set forth in
Schedule 5.6 of the Complete Disclosure Schedule, and (c) other undisclosed liabilities
incurred by Complete or its Subsidiaries since June 30, 2005 in the ordinary course of business
consistent with past practices.

     Section 5.7 No Violation. Except as set forth in Section 5.7 of the Complete
Disclosure Schedule, neither the execution and delivery by Complete of this Agreement or any
instrument required hereby to be executed and delivered by it at the Closing nor the performance by
Complete of its obligations hereunder or thereunder will (i) violate or breach the terms of or

17

 

cause a default under, or result in the termination of, or accelerate the performance required
by, or result in a right of termination, cancellation or acceleration of any obligation under, or
result in the creation of any Lien upon any of the properties or assets of Complete or any of its
Subsidiaries under (A) any Law, regulation or order of any Governmental Authority applicable to
Complete or any of its Subsidiaries, (B) Complete’s or any of its Subsidiary’s organizational
documents, including its certificate or articles of incorporation and bylaws or other
organizational documents, each as amended or restated, or (C) any Complete Material Contract, or
(ii) with the passage of time, the giving of notice or the taking of any action by a third party,
have any of the effects set forth in clause (i) of this Section 5.7.

     Section 5.8
Compliance with Laws; Permits.

     (a) Except as set forth in Section 5.8(a) of the Complete Disclosure Schedule,
Complete and its Subsidiaries are in compliance in all material respects with all applicable
Laws. Except as set forth in Section 5.8(a) of the Complete Disclosure Schedule,
neither Complete nor any of its Subsidiaries has received notice of any violation of any
Law, or any potential liability under any Law, relating to the operation of its business or
to any of its assets, operations, processes, results or products.

     (b) Section 5.8(b) of the Complete Disclosure Schedule sets forth a list of
each government or regulatory license, authorization, permit, franchise, consent and
approval (the “Permits”) issued and held by or on behalf of Complete or its
Subsidiaries or required to be so issued and held to carry on their respective businesses as
currently conducted and which is material to the business. Except as set forth in
Section 5.8(b) of the Complete Disclosure Schedule, Complete or the relevant
Subsidiary of Complete, as applicable, is the authorized legal holder of such Permits, and
each such Permit is valid and in full force and effect. Neither Complete nor the relevant
Subsidiary of Complete, as applicable, is in default under, and to the Knowledge of
Complete, no condition exists that with notice or lapse of time or both could constitute a
default or could give rise to a right of termination, cancellation or acceleration under,
any such Permit.

     Section 5.9 Litigation.

     (a) Except as set forth in Section 5.9(a) of the Complete Disclosure Schedule,
there are no actions, suits or proceedings pending or, to the Knowledge of Complete,
threatened at law or in equity, or before or by any Governmental Authority or before any
arbitrator of any kind, against Complete or any of its Subsidiaries. Except as set forth in
Section 5.9(a) of the Complete Disclosure Schedule, there are no outstanding
judgments, orders, injunctions, decrees, stipulations or awards (whether rendered by a
court, administrative agency, arbitral body or Governmental Authority) against Complete or
any of its Subsidiaries.

     (b) All claims, whether in contract or tort, for defective or allegedly defective
products or workmanship pending or, to the Knowledge of Complete, threatened, against
Complete or any of its Subsidiaries are listed or described in Section 5.9(b) of the
Complete Disclosure Schedule.

18

 

     Section 5.10 Accuracy of Confidential Solicitation Statement. None of the information
to be included in the Confidential Solicitation Statement concerning the business, operations,
financial results or condition, assets or liabilities of Complete and its Subsidiaries will, as of
the date of such Confidential Solicitation Statement (which date shall be at or about the date such
Confidential Solicitation Statement is first mailed to the stockholders of the Combining Company),
(i) be false or misleading with respect to any material fact, (ii) contain any untrue statement of
a material fact or (iii) omit to state a material fact necessary in order to make the statements to
be contained therein not misleading.

     Section 5.11 Title to Assets. Except for inventory disposed of in the ordinary course
of business consistent with past practices, assets such as accounts receivable which have been
converted into other assets in the ordinary course of business, assets such as prepaid insurance
that have dissipated over time in the ordinary course of business, and disposal of other assets
with an aggregate fair market value not exceeding $1,000,000, Complete or one of its Subsidiaries
owns, or in the case of leased property has valid leasehold interests in, the property and assets
(whether real or personal, tangible or intangible) reflected in the Latest Complete Balance Sheet
or acquired after June 30, 2005, free and clear of all Liens, except for Permitted Liens and Liens
set forth in Section 5.11 of the Complete Disclosure Schedule.

     Section 5.12 Tax Matters.

     (a) Except as set forth in Section 5.12(a) of the Complete Disclosure Schedule:

     (i) all Tax Returns for all periods which end on or prior to the Closing Date
that are, were or shall be required to be filed on or prior to the Closing Date by
or on behalf of Complete or any of its Subsidiaries have been or shall be filed on a
timely basis in accordance with the applicable Laws of each Governmental Authority,
and at the time of their filing all such Tax Returns were complete and accurate in
all material respects;

     (ii) Complete and/or its Subsidiaries, as applicable, have paid all of its
Taxes shown as due and owing on such Tax Returns or adequate provisions on their
books in accordance with GAAP have been made with respect thereto;

     (iii) no claim has ever been made by a Governmental Authority in a jurisdiction
where Complete or any of its Subsidiaries does not file Tax Returns that Complete or
any of its Subsidiaries is or may be subject to taxation by that jurisdiction;

     (iv) all Taxes that Complete or its Subsidiaries was or is required by Law to
withhold, collect or deposit prior to the Closing Date have been duly withheld or
collected and, to the extent required, have been paid to the appropriate
Governmental Authorities;

     (v) there are no Liens with respect to Taxes on the assets of Complete or any
of its Subsidiaries, other than Permitted Liens;

19

 

     (vi) no adjustment relating to such Tax Returns has been proposed formally or,
to the Knowledge of Complete, proposed informally or threatened, by any Taxing
authority;

     (vii) there are no pending or, to the Knowledge of Complete, threatened actions
or proceedings for the assessment or collection of Taxes against Complete or any of
its Subsidiaries;

     (viii) Neither Complete nor any of its Subsidiaries is a party to any agreement
or arrangement that would result, separately or in the aggregate, in the actual or
deemed payment by Complete or any of its Subsidiaries of any “excess parachute
payment” within the meaning of Section 280G of the Code;

     (ix) Neither Complete or any of its Subsidiaries has been included in any
consolidated, combined or unitary Tax Return and has no liability for any Taxes of
any Person (other than Complete or such Subsidiaries) under Treas. Reg. § 1.1502-6
(or similar provisions of state, local or foreign law) as a transferee or successor,
by contract or otherwise;

     (x) Neither Complete nor any of its Subsidiaries is a party to or bound by any
Tax allocation or Tax-Sharing Agreement and has no contractual obligation to
indemnify any other person with respect to Taxes;

     (xi) no assets of Complete or any Subsidiary of Complete are “tax-exempt use
property” within the meaning of Section 168(h)(1) of the Code;

     (xii) the unpaid Taxes of Complete and its Subsidiaries as of June 30, 2005 did
not exceed in any material respect the reserve for Tax liabilities (rather than the
reserve for deferred Taxes to reflect timing differences between book and Tax income
and any other amounts reflected in deferred Taxes) on the Latest Complete Balance
Sheet;

     (xiii) neither Complete nor any of its Subsidiaries has agreed to make, and is
not required to make, adjustments under Section 481(a) of the Code by reason of a
change in accounting method, and the consummation of the transactions contemplated
by this Agreement will not result in Complete or any of its Subsidiaries being
required to make any such adjustments following the Closing Date;

     (xiv) Complete and each of its Subsidiaries uses the accrual method of
accounting for Tax accounting purposes;

     (xv) Complete is not a United States real property holding corporation within
the meaning of Code Section 897(c)(2) during the applicable period specified in Code
Section 897(c)(1)(A)(ii); and

     (xvi) neither Complete nor any of its Subsidiaries has participated in any
listed transaction required to be disclosed under Treas. Reg. § 1.6011-4.

20

 

     (b) Except as set forth in Section 5.12(b) of the Complete Disclosure Schedule:
(i) there are no outstanding waivers or agreements extending the statute of limitations for
any period with respect to any Tax to which Complete or any of its Subsidiaries may be
subject nor have any such waivers or agreements been requested; (ii) to the Knowledge of
Complete, there are no requests for information currently outstanding that could affect the
Taxes of Complete or any of its Subsidiaries; (iii) to the Knowledge of Complete, there are
no proposed reassessments of any property owned by Complete or any of its Subsidiaries or
any other proposals that are reasonably likely to increase the amount of any Tax to which
Complete or any of its Subsidiaries would be subject; and (iv) no power of attorney that is
currently in force has been granted with respect to any matter relating to Taxes that could
affect Complete or any of its Subsidiaries.

     Section 5.13 Intellectual Property.

     (a) Section 5.13(a) of the Complete Disclosure Schedule sets forth a list of
(i) all issued patents and all registered copyrights, trademarks, service marks and domain
names included in the Intellectual Property Rights owned by Complete or any of its
Subsidiaries and (ii) all pending patent applications and all applications for the
registration of copyrights, trademarks, and service marks included in the Intellectual
Property Rights owned by Complete or any of its Subsidiaries.

     (b) Except as set forth in Section 5.13(b) of the Complete Disclosure Schedule:

     (i) Complete and/or its Subsidiaries own and possesses all right, title, and
interest in, free and clear of all Liens (other than license agreements executed in
the ordinary course of business and Permitted Liens), or has a right to use, all of
the material Intellectual Property Rights necessary for the conduct of the their
respective businesses.

     (ii) To the Knowledge of Complete, the conduct of the business by Complete and
its Subsidiaries as currently conducted does not infringe upon any Intellectual
Property Rights of any third party. There is no claim, suit, action or proceeding
that is either pending or, to the Knowledge of Complete, threatened, that, in either
case, involves a claim of infringement by Complete or any of its Subsidiaries of any
Intellectual Property Rights of any third party, or challenging Complete’s or any of
its Subsidiary’s, as applicable, ownership, right to use, or the validity of any
Intellectual Property Right listed or required to be listed in Section
5.13(a) of the Complete Disclosure Schedule.

     (iii) No Intellectual Property Right listed or required to be listed in
Section 5.13(a) of the Complete Disclosure Schedule is subject to any
outstanding order, judgment, decree, stipulation or agreement restricting the use
thereof by Complete or its Subsidiaries, as applicable, or restricting the licensing
thereof by Complete or its Subsidiaries, as applicable to any Person, other than as
set forth in Section 5.13(a) of the Complete Disclosure Schedule and other
than with respect

21

 

to standard and customary restrictions associated with commercially available
third party software to which Complete or its Subsidiaries has a valid right to use
in connection with their businesses;

     (iv) Other than as set forth in Section 5.13(a) of the Complete
Disclosure Schedule, neither Complete or its Subsidiaries has not entered into any
agreement to indemnify any other Person against any charge of infringement of any
Intellectual Property Right; and

     (v) Complete or its Subsidiaries, as applicable, has duly maintained all
registrations for the Intellectual Property Rights listed on Section 5.13(a)
of the Complete Disclosure Schedule.

     Section 5.14 Environmental Matters.

     (a) Except as set forth in Section 5.14(a) of the Complete Disclosure Schedule:

     (i) Neither Complete nor any of its Subsidiaries, and to Knowledge of Complete
no other party has, generated, recycled, used, treated or stored on, transported to
or from, or Released on, the Complete Real Property any Constituents of Concern,
except in compliance in all material respects with Environmental Laws;

     (ii) Neither Complete nor any of its Subsidiaries has disposed of Constituents
of Concern generated at any Complete Real Property to any off-site facility except
in compliance in all material respects with Environmental Laws;

     (iii) Complete and its Subsidiaries has been and is in compliance in all
material respects with (a) Environmental Laws and (b) the requirements of
Environmental Permits with respect to the Complete Real Property;

     (iv) There are no pending or, to the Knowledge of Complete, threatened
Environmental Claims against Complete or any of its Subsidiaries or any Complete
Real Property, and Complete has no Knowledge of any facts, circumstances, conditions
or occurrences regarding Complete’s or any of its Subsidiaries’ operations or with
respect to any Complete Real Property that could reasonably be expected to form the
basis of a material Environmental Claim against Complete or its Subsidiaries;

     (v) To the Knowledge of Complete, no Environmental Conditions exists of any
Complete Real Property;

     (vi) None of Complete, its Subsidiaries or any Complete Real Property is listed
or, to the Knowledge of Complete, proposed for listing on the National Priorities
List under CERCLA or on any similar federal, state or foreign list of sites
requiring investigation or clean-up, and neither Complete nor any of its

22

 

     Subsidiaries has received any requests for information pursuant to 104(e) of
CERCLA or any state counterpart or equivalent; and

     (vii) Complete and its Subsidiaries have obtained all required Environmental
Permits material to its business. Except as set forth in Section
5.14(a)(viii) of the Complete Disclosure Schedule, no such Environmental Permits
are nontransferable or require consent, notification or other action by a
Governmental Authority to remain in full force and effect following the consummation
of the transactions contemplated hereby.

     (b) To the Knowledge of Complete, Complete has delivered or made available to each of
the other Combining Companies true and complete copies of all material environmental
investigations, studies, audits, tests, reviews or other analyses commenced or conducted in
the last three years by or on behalf of Complete or any of its Subsidiaries in their
possession that relate to their respective businesses.

     (c) Notwithstanding any other provision of this Agreement to the contrary, these
representations and warranties in this Section 5.14 shall be the sole and exclusive
representations and warranties concerning Environmental Claims, Environmental Conditions,
Environmental Laws or Environmental Permits as those terms may apply to Complete, any of its
Subsidiaries or any of the Complete Real Property.

     Section 5.15 Benefit Plans and Material Documents.

     (a) Section 5.15(a) of the Complete Disclosure Schedule sets forth a list of
all existing Benefit Plans sponsored or contributed to by Complete or any ERISA Affiliate of
Complete covering any current or former employee, officer or director of Complete or any
ERISA Affiliate of Complete. With respect to each such Benefit Plan subject to ERISA,
Complete has delivered or made available to the other Combining Companies a true and
complete copy of each such Benefit Plan (including all amendments thereto) and a true and
complete copy of each material document (including all amendments thereto) prepared in
connection with each such Benefit Plan including (i) a copy of each trust or other funding
arrangement, (ii) each summary plan description and summary of material modifications, (iii)
the most recently filed IRS Form 5500 for each such Benefit Plan, if any, and (iv) the most
recent determination letter referred to in Section 5.15(d). With respect to each
such Benefit Plan not subject to ERISA, Complete has delivered or made available to other
Combining Companies a true and complete copy of each such Benefit Plan including each
related material document. Neither Complete nor any of its Subsidiaries has any express or
implied commitment to create, incur liability with respect to or cause to exist any
additional Benefit Plan or to modify any existing Benefit Plan, other than as required by
Law.

     (b) Except as set forth in Section 5.15(b) of the Complete Disclosure Schedule
or for policies generally available to the employees of Complete and its Subsidiaries, none
of such Benefit Plans provides for the payment of separation, severance, termination or
similar-type benefits to any person or provides for or, except to the extent required by

23

 

Law, promises retiree medical or retiree life insurance benefits to any current or
former employee, officer or director of Complete or any of its Subsidiaries.

     (c) Except as set forth in Section 5.15(c) of the Complete Disclosure Schedule,
each such Benefit Plan is in compliance with, and has been operated in accordance with, in
all material respects, its terms, ERISA, the Code and other applicable Laws, and Complete
and the ERISA Affiliates of Complete have satisfied in all material respects all of their
statutory, regulatory and contractual obligations with respect to each such Benefit Plan.
No material legal action, suit or claim is pending or, to the Knowledge of Complete,
threatened with respect to any such Benefit Plan (other than claims for benefits in the
ordinary course) and, to the Knowledge of Complete, no fact or event exists that could,
individually or in the aggregate, reasonably be expected to give rise to any such action,
suit or claim.

     (d) Except as set forth in Section 5.15(d) of the Complete Disclosure Schedule,
each such Benefit Plan or trust which is intended to be qualified or exempt from taxation
under Section 401(a), 401(k) or 501(a) of the Code has received a favorable determination
letter from the IRS that it is so qualified or exempt, and, to the Knowledge of Complete,
nothing has occurred since the date of such determination letter that would adversely affect
the qualified or exempt status of any such Benefit Plan or related trust.

     (e) There has been no non-exempt prohibited transaction (within the meaning of Section
406 of ERISA or Section 4975 of the Code) with respect to any such Benefit Plan. Neither
Complete nor any of its Subsidiaries has incurred any liability for any excise tax arising
under the Code with respect to such Benefit Plan.

     (f) All contributions, premiums or payments required to be made with respect to any
such Benefit Plan have been made on or before their due dates and for those that are not yet
due but should be accrued in accordance with GAAP do not exceed in any material respect the
reserve for such amounts on the Latest Complete Balance Sheet. For completed plan years of
such Benefit Plans, all such contributions have been fully deducted for income tax purposes
and no such deduction has been challenged or disallowed by any Governmental Authority.

     (g) There has been no amendment to, written interpretation of, announcement (whether or
not written) by Complete or any ERISA Affiliate of Complete relating to, or change in
employee participation or coverage under, any such Benefit Plan that, to the Knowledge of
Complete, would increase materially the expense of maintaining such Benefit Plan above the
level of the expense incurred in respect thereto for the most recent fiscal year ended prior
to the date hereof, other than in the ordinary course of business.

     (h) Except as set forth in Section 5.15(h), no employee or former employee of
Complete or any ERISA Affiliate of Complete will become entitled to any bonus, retirement,
severance, job security or similar benefit or any enhanced benefit (including acceleration
of vesting or exercise of an incentive award) as a result of the transactions contemplated
by this Agreement.

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     (i) All reports and disclosures relating to such Benefit Plans required to be filed
with or furnished to Governmental Authorities, participants or beneficiaries have been filed
or furnished in accordance with applicable law in a timely manner.

     (j) Neither Complete nor any ERISA Affiliate of Complete is maintaining, contributing
to or sponsoring a Benefit Plan subject to Title IV of ERISA, Section 302 of ERISA or
Section 412 of the Code nor, to the Knowledge of Complete, has done so within six years
prior to the Closing Date.

     (k) Neither Complete nor any ERISA Affiliate of Complete is maintaining or contributing
to a Benefit Plan that is a “multiemployer plan” within the meaning of Section 3(37) of
ERISA nor, to the Knowledge of Complete, has done so within six years prior to the Closing
Date.

     (l) As to any such Benefit Plan intended to be qualified under Section 401 of the Code,
there has been no termination or partial termination of such Benefit Plan within the meaning
of Section 411(d)(3) of the Code.

     (m) No act, omission or transaction has occurred which would result in imposition on
Complete or any ERISA Affiliate of Complete any of (A) breach of fiduciary duty liability
damages under Section 409 of ERISA, (B) a civil penalty assessed pursuant to subsections
(c), (i) or (l) of Section 502 of ERISA, or (C) a tax imposed pursuant to Chapter 43 of
Subtitle D of the Code, in each case with respect to such Benefit Plans.

     (n) There is no matter pending (other than routine annual or qualification
determination filings) with respect to any of such Benefit Plans before the IRS, the
Department of Labor, or any other Governmental Authority.

     (o) With respect to any “employee pension benefit plan,” if any, as such term is
defined in Section 3(2) of ERISA, which is not listed in Section 5.15(a) but which
is sponsored, maintained, or contributed to, or, to the Knowledge of Complete, has been
sponsored, maintained, or contributed to within six years prior to the Closing Date, by
Complete or any ERISA Affiliate of Complete, (A) no withdrawal liability, within the meaning
of Section 4201 of ERISA, has been incurred, which withdrawal liability has not been
satisfied, (B) no liability to the Pension Benefit Guaranty Corporation has been incurred by
any ERISA Affiliate, which liability has not been satisfied, (C) no accumulated funding
deficiency, whether or not waived, within the meaning of Section 302 of ERISA or Section 412
of the Code has been incurred, and (D) all contributions (including installments) to such
plan required by Section 302 of ERISA and Section 412 of the Code have been timely made.

     (p) To the Knowledge of Complete, each such Benefit Plan that is an “employee welfare
benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally amended
or terminated in its entirety without liability except as to benefits accrued thereunder
prior to such amendment or termination.

25

 

     (q) No Benefit Plan of Compete or any ERISA Affiliate of Complete that is a Foreign
Plan is a defined benefit pension plan or a similar type of accrual-based plan. With
respect to each such Benefit Plan that is a Foreign Plan, there are no funded benefit
obligations for which contributions have not been made or properly accrued and there are no
unfunded benefit obligations which have not been accounted for by reserves, or otherwise
properly reflected in accordance with GAAP, on the financial statements of Complete or its
Subsidiaries. Except as set forth in Section 5.15(q) of the Complete Disclosure
Schedule, the contribution and benefit liabilities of Complete or any of its Subsidiaries
respecting each Benefit Plan that is a Foreign Plan are fully funded based upon applicable
accounting, valuation and/or actuarial methodology contained in the most recent accounting,
valuation and/or actuarial report respecting such Foreign Plan.

     Section 5.16 Material Contracts.

     (a) Except as specifically set forth in Section 5.16(a) of the Complete
Disclosure Schedule, neither Complete nor any of its Subsidiaries is a party to or bound by
any Contract that is of a type described below (collectively, the “Complete Material
Contracts”):

     (i) any lease (whether of real or personal property, but excluding personal
property leases with annual rental obligations of $1,000,000 or less or that may be
terminated without penalty within 90 days or less);

     (ii) except pursuant to purchase orders issued in the ordinary course of
business, any agreement for the purchase of materials, supplies, goods, services,
equipment or other assets that provided for aggregate payments by Complete or any of
its Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May
31, 2005;

     (iii) any sales, distribution or other similar agreement providing for the sale
by Complete or any of its Subsidiaries of materials, supplies, goods, services,
equipment or other assets that provided for aggregate payments to Complete or any of
its Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May
31, 2005;

     (iv) any partnership, joint venture or other similar agreement or arrangement;

     (v) any Contract pursuant to which any third party has rights to own or use any
material asset of Complete or any of its Subsidiaries, including any Intellectual
Property Right the exclusive use of which is material to Complete and its
Subsidiaries taken as a whole;

     (vi) any agreement relating to the acquisition or disposition of any business
(whether by merger, sale of stock, sale of assets or otherwise) or granting to any
Person a right of first refusal, first offer or other right to purchase any of the
material assets of Complete or any of its Subsidiaries;

26

 

     (vii) any agreement relating to Indebtedness for borrowed money, guaranties of
Indebtedness for borrowed money and letters of credit or similar instruments (in any
case, whether incurred, assumed, guaranteed or secured by any asset of Complete or
any of its Subsidiaries) other than accruals recorded in the ordinary course of
business;

     (viii) any license, franchise or similar agreement material to the business of
Complete and its Subsidiaries, taken as a whole;

     (ix) any agency, dealer, sales representative, marketing or other similar
agreement material to the business of Complete and its Subsidiaries, taken as a
whole;

     (x) any agreement with any director or executive officer of Complete or with
any “associate” or any member of the “immediate family” (as such terms are
respectively defined in Rules 12b-2 and 16a-1 of the Exchange Act) of any such
director or executive officer;

     (xi) any management service, consulting or any other similar type of agreement
material to the business of Complete and its Subsidiaries, taken as a whole;

     (xii) any employment, consulting, deferred compensation, severance, bonus,
retirement or other similar agreement or plan in effect as of the date hereof
(including in respect of any advances or loans to any employees but excluding loans
under Complete’s 401(k) plans) and entered into or adopted by Complete or any of its
Subsidiaries;

     (xiii) any Contract involving foreign currency transactions entered into for
the purpose of hedging any currency or pricing risk;

     (xiv) all confidentiality agreements not made in the ordinary course of
business other than in connection with acquisitions considered by Complete or any of
its Subsidiaries and all non-competition agreements that restrict the nature or
duration of, or imposes any geographic limitation on, any business that could be
conducted by Complete or any of its Subsidiaries; or

     (xv) any other agreement, commitment, arrangement or plan not made in the
ordinary course of business of Complete or its Subsidiaries that is material to
Complete and its Subsidiaries or their respective businesses, taken as a whole.

     (b) Each Complete Material Contract disclosed in or required to be disclosed in
Section 5.16(a) of the Complete Disclosure Schedule is a valid and binding agreement
of Complete or its Subsidiaries, as applicable and, to the Knowledge of Complete, each other
party thereto, enforceable in accordance with its respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting enforcement of creditors’ rights generally and by general principles
of equity (whether applied in a proceeding at law or in equity). Neither

27

 

Complete nor its Subsidiaries, as applicable, nor, to the Knowledge of Complete, any
other party to any such Complete Material Contract is in default or breach (with or without
due notice or lapse of time or both) in any material respect under the terms of any such
Complete Material Contract. Complete has delivered or made available to the other Combining
Companies true and complete originals or copies of all Complete Material Contracts disclosed
in or required to be disclosed in Section 5.16(a) of the Complete Disclosure
Schedule.

     Section 5.17 Real Property.

     (a) Section 5.17(a) of the Complete Disclosure Schedule contains a complete and
correct list of all real property owned by Complete or any of its Subsidiaries (the
“Complete Owned Real Property,” and together with the Complete Leased Real Property,
the “Complete Real Property”) setting forth the address and owner of each parcel of
Complete Owned Real Property. Complete or its Subsidiary has good, valid and indefeasible
fee simple title to Complete Owned Real Property indicated on Section 5.17(a) of the
Complete Disclosure Schedule as being owned by it, free and clear of all Liens other than
Permitted Liens and Liens set forth on Section 5.17(a) of the Complete Disclosure
Schedule. There are no outstanding options or rights of first refusal to purchase the
Complete Owned Real Property, or any portion thereof or interest therein.

     (b) Leases. Section 5.17(b) of the Complete Disclosure Schedule
contains a complete and correct list of all real property leased by Complete or any of its
Subsidiaries (the “Complete Leased Real Property”) setting forth the address,
landlord and tenant for each lease comprising the Complete Leased Real Property. Each
material lease comprising the Complete Leased Real Property is legal, valid, binding,
enforceable, and in full force and effect against Complete or its Subsidiaries, as
applicable, and, to the Knowledge of Complete, against each other party thereto. Except as
set forth in Section 5.17(b) of the Complete Disclosure Schedule, to the Knowledge
of Complete, each lease comprising the Complete Leased Real Property grants Complete or its
Subsidiaries, as applicable, the exclusive right to use and occupy the demised premises
thereunder. Complete or its Subsidiaries, as applicable, have a valid leasehold interest
under each such material lease.

     (c) No Proceedings. There are no eminent domain or other similar proceedings
pending or, to the Knowledge of Complete, threatened affecting any portion of the Complete
Owned Real Property or, to the Knowledge of Complete, the Complete Leased Real Property.

     Section 5.18 Absence of Certain Changes. Except as set forth in Section 5.18
of the Complete Disclosure Schedule or in connection with the transactions contemplated by this
Agreement, since June 30, 2005, Complete and its Subsidiaries have conducted their respective
businesses in the ordinary course of business consistent with past practices and there has not been
any event, occurrence, development or circumstances which has had or which is reasonably expected
to have (a) a Material Adverse Effect on Complete or (b) would have constituted a violation of any
covenants of Complete included in Section 8.2 had such covenant applied to it since June
30, 2005. Since June 30, 2005, there has not occurred any damage, destruction or

28

 

casualty loss resulting in damages exceeding $1,000,000 in the aggregate (whether or not
covered by insurance) with respect to any asset owned or operated by Complete or any of its
Subsidiaries.

     Section 5.19 Insurance Coverage. Section 5.19 of the Complete Disclosure
Schedule contains a list of all of the insurance policies and fidelity bonds covering the assets,
business, operations, employees, officers and directors of Complete and its Subsidiaries. There is
no material claim by Complete or any of its Subsidiaries pending under any of such policies or
bonds as to which Complete or any of its Subsidiaries has received any refusal of coverage or any
notice that a defense will be afforded with reservation of rights. All premiums due and payable
under all such policies and bonds have been paid, and Complete and its Subsidiaries have complied
in all material respects with the terms and conditions of all such policies and bonds. Such
policies of insurance and bonds (or other policies and bonds providing substantially similar
insurance coverage) are in full force and effect. To the Knowledge of Complete, there is no threat
of termination of, or material premium increase with respect to, any of such policies or bonds.

     Section 5.20 Affiliate Transactions.

     (a) Except as set forth in Section 5.20(a) of the Complete Disclosure Schedule,
there are no outstanding payables, receivables, loans, advances and other similar accounts
between Complete or any of its Subsidiaries, on the one hand, and any of its Affiliates, on
the other hand, relating to business of Complete or its Subsidiaries.

     (b) Except as set forth in Section 5.20(b) of the Complete Disclosure Schedule,
to the Knowledge of Complete, no director or executive officer of Complete possesses,
directly or indirectly, any ownership interest in, or is a director, officer or employee of,
any Person which is a supplier, customer, lessor, lessee, licensor, or competitor of
Complete or its Subsidiaries. Ownership of 1% or less of any class of securities of a
Person whose securities are registered under the Exchange Act will not be deemed to be an
ownership interest for purposes of this Section 5.20(b).

     Section 5.21 Customer, Supplier and Employee Relations. Section 5.21 of the
Complete Disclosure Schedule, includes a complete and correct list of (a) all customers of the
business of Complete and its Subsidiaries who made aggregate purchases in excess of 5% of the total
consolidated revenues of Complete and its Subsidiaries during calendar year 2004 and/or for the
five months ended May 31, 2005 and (b) all suppliers with a relationship with Complete and/or its
Subsidiaries, the termination of which would have an adverse effect that is material to the
business of Complete and its Subsidiaries taken as a whole. Except as set forth in Section
5.21 of the Complete Disclosure Schedule, none of such customers or suppliers, or officers or
senior managers of Complete and/or its Subsidiaries has canceled, terminated or otherwise
materially altered or notified Complete or its Subsidiaries of any intention to cancel, terminate
or materially alter its relationship with Complete or its Subsidiaries since December 31, 2004.

29

 

     Section 5.22 Other Employment Matters.

     (a) Neither Complete nor any of its Subsidiaries is a party to any labor or collective
bargaining agreement.

     (b) No labor organization or group of Complete, its Subsidiaries or any of their
respective employees has made a pending demand for recognition, there are no representation
proceedings or petitions seeking a representation proceeding presently pending or, to the
Knowledge of Complete, threatened to be brought or filed with the National Labor Relations
Board or other labor relations tribunal, and there is no organizing activity involving
Complete or any of its Subsidiaries or, to the Knowledge of Complete, threatened by any
labor organization or group of employees.

     (c) Except as set forth in Section 5.22(c) of the Complete Disclosure Schedule,
there are no (i) strikes, work stoppages, slow-downs, lockouts or arbitrations or (ii)
grievances or other labor disputes pending or, to the Knowledge of Complete, threatened
against or involving Complete or any of its Subsidiaries.

     (d) Except as set forth in Section 5.22(c) of the Complete Disclosure Schedule,
there are no complaints, charges or claims against Complete or any of its Subsidiaries
pending or, to the Knowledge of Complete, threatened to be brought or filed with any
Governmental Authority based on, arising out of, in connection with, or otherwise relating
to the employment by Complete or any of its Subsidiaries, of any Person, including any claim
for workers’ compensation.

     (e) Except as set forth in Section 5.22(c) of the Complete Disclosure Schedule,
Complete and its Subsidiaries are in compliance in all material respects with all Laws and
Orders in respect of employment and employment practices and the terms and conditions of
employment and wages and hours, and have not, and are not, engaged in any unfair labor
practice.

     (f) Section 5.22(f) of the Complete Disclosure Schedule contains a complete and
accurate list of the following information for each executive officer and each other
employee with annual base compensation in excess of $150,000 of Complete or its
Subsidiaries, including each such executive officer or employee on leave of absence or
layoff status: employer; name; job title; current compensation paid or payable and any
change in compensation since June 30, 2005; and all bonuses and any other amounts to be paid
by Complete or its Subsidiaries at or in connection with the Closing.

     (g) Except as set forth in Section 5.22(g) of the Complete Disclosure Schedule,
to the Knowledge of Complete, no employee, officer or director of Complete or its
Subsidiaries is a party to, or is otherwise bound by, any confidentiality, non-competition,
proprietary rights agreement or similar agreement that would affect (i) the performance of
his or her duties as an employee, officer or director of Complete or its Subsidiaries or
(ii) the ability of the Complete Surviving Company to conduct the business of Complete and
its Subsidiaries after the Closing Date.

30

 

     Section 5.23 Product and Service Warranties; Liability Defects; Liability. Except as
set forth in Section 5.23 of the Complete Disclosure Schedule, each product manufactured,
sold, leased, delivered or installed or services performed by Complete or its Subsidiaries prior to
the Closing has complied with and conformed in all material respects to (a) all applicable federal,
state, local or foreign laws and regulations and (b) contractual commitments and all applicable
warranties of Complete and its Subsidiaries except for any failures to so comply or conform for
which an adequate aggregate reserve is set forth on the Latest Complete Balance Sheet. Section
5.23 of the Complete Disclosure Schedule sets forth the expense related to warranty claims for
Complete and its Subsidiaries for 2004 and the five-month period ended May 31, 2005.

     Section 5.24 Finders’ Fees. Except for Houlihan Lokey Howard & Zukin and Bernstein
Conklin & Balcombe, there is no investment banker, broker, finder or other intermediary which has
been retained by or is authorized to act on behalf of Complete or its Subsidiaries or their
Affiliates who might be entitled to any fee or other commission payable by Complete or its
Subsidiaries in connection with the transactions contemplated by this Agreement or any of the
Ancillary Agreements.

     Section 5.25 Fairness Opinion. Complete has received the written opinion of Houlihan
Lokey Howard & Zukin that the percentage of shares of IPS Common Stock to be held by the
stockholders of Complete as a result of the consummation of the Mergers contemplated by this
Agreement is fair to the stockholders (other than SCF) of Complete from a financial point of view.

     Section 5.26 Disclaimer of Other Representations and Warranties. Except as expressly
set forth in this Article V, Complete makes no representation or warranty, express or
implied, at law or in equity, in respect of Complete or any of its Subsidiaries, or any of their
respective assets, liabilities or operations, including, without limitation, with respect to
merchantability or fitness for any particular purpose, and any such other representations or
warranties are hereby expressly disclaimed.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF I.E. MILLER

     I.E. Miller represents and warrants to IPS and Complete that the statements contained in this
Article VI are correct and complete as of the date of this Agreement, except as set forth
in the disclosure schedule (which shall be numbered to refer to the sections contained in this
article) delivered by I.E. Miller to IPS and Complete on the date hereof (the “I.E. Miller
Disclosure Schedule”).

     Section 6.1 Organization; Qualification. I.E. Miller is a corporation duly organized
under the DGCL and is validly existing and in good standing under the laws of the State of
Delaware. Each Subsidiary of I.E. Miller is an entity duly organized under the jurisdiction of its
formation and is validly existing and in good standing under the laws of such jurisdiction. I.E.
Miller and each Subsidiary of I.E. Miller has all requisite corporate or entity power and authority
to own, operate or lease its properties and to carry on its business as now being conducted. I.E.

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Miller and each Subsidiary of I.E. Miller is duly qualified to do business as a foreign
corporation or other entity and is in good standing in each jurisdiction where the character of its
properties owned, operated or leased, or the nature of its activities, makes such qualifications
necessary, except where the failure to be so qualified and in good standing will not have a
Material Adverse Effect on I.E. Miller.

     Section 6.2 Subsidiaries. Except as set forth in Section 6.2 of the I.E.
Miller Disclosure Schedule, I.E. Miller does not own any Capital Stock or other equity or ownership
or proprietary interest in any Person.

     Section 6.3 Capitalization. The authorized capital stock of I.E. Miller consists of
500,000 shares of I.E. Miller Common Stock, of which 133,038 shares are issued and outstanding and
10,000 shares of Preferred Stock, par value $0.01 per share, of I.E. Miller, of which no shares are
issued and outstanding. The issued and outstanding shares of I.E. Miller Common Stock are owned of
record by the persons and in the amounts set forth in Section 6.3 of the I.E. Miller
Disclosure Schedule. All of the outstanding shares of I.E. Miller Common Stock and all of the
outstanding shares of the Capital Stock of each Subsidiary of I.E. Miller are duly authorized,
validly issued, fully paid and nonassessable, were issued free of the preemptive rights of any
Person and in compliance with applicable corporate and securities Laws. The Capital Stock of each
Subsidiary of I.E. Miller is owned legally and beneficially as set forth in Section 6.3 of
the I.E. Miller Disclosure Schedule. Except as set forth in Section 6.3 of the I.E. Miller
Disclosure Schedule, as of the date hereof, there are no outstanding subscriptions, options, calls,
contracts, commitments, understandings, restrictions, arrangements, rights or variants, including
any right of conversion or exchange under any outstanding security, instrument or other agreement
obligating I.E. Miller or any Subsidiary of I.E. Miller to issue, deliver or sell, or cause to be
issued, delivered or sold, additional shares of the Capital Stock of I.E. Miller or any Subsidiary
of I.E. Miller or obligating I.E. Miller or any Subsidiary of I.E. Miller to grant, extend or enter
into any such agreement or commitment. Other than as set forth in Section 6.3 of the I.E.
Miller Disclosure Schedule, there are no outstanding contractual obligations, commitments,
understandings or arrangements of I.E. Miller or any Subsidiary of I.E. Miller to purchase, redeem
or otherwise acquire or make any payment in respect of or register under federal or state
securities laws any shares of Capital Stock of I.E. Miller or any Subsidiary of I.E. Miller.

     Section 6.4 Authority, Authorization and Enforceability. I.E. Miller has all requisite
corporate power and authority to execute and deliver this Agreement and each instrument required
hereby to be executed and delivered by it at the Closing, to perform its obligations hereunder and
thereunder and to consummate the transactions contemplated hereby and thereby. The execution and
delivery by I.E. Miller of this Agreement and each instrument required hereby to be executed and
delivered by it at the Closing and the performance of its obligations hereunder and thereunder have
been duly and validly authorized by the board of directors of I.E. Miller and the Independent
Committee of I.E. Miller, and no other corporate proceedings of I.E. Miller, other than the
approval of the stockholders of I.E. Miller contemplated by Section 9.1(d) hereof are
necessary to authorize the execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby. This Agreement and each instrument required hereby have been
duly executed and delivered by I.E. Miller and (assuming due authorization, execution and delivery
hereof and thereof by the other parties hereto and thereto) constitute the valid and legally
binding obligations of I.E. Miller, enforceable

32

 

against I.E. Miller in accordance with their terms, except that (A) such enforceability may be
subject to bankruptcy, insolvency, reorganization, moratorium or other laws, decisions or equitable
principles now or hereafter in effect relating to or affecting the enforcement of creditors’ rights
or debtors’ obligations generally, and to general equity principles, and (B) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to equitable defenses
and to the discretion of the court before which any proceeding therefor may be brought.

     Section 6.5
Financial Statements. The historical financial statements of I.E. Miller
(including the related notes) set forth in Exhibit B hereto (including, the Latest I.E.
Miller Balance Sheet, and collectively, the “I.E. Miller Financial Statements”) have been
prepared in accordance with GAAP applied on a consistent basis and fairly present in all material
respects the consolidated financial position of I.E. Miller and its Subsidiaries as of the
respective dates thereof and the consolidated results of operations and changes in financial
position of I.E. Miller and its Subsidiaries for the periods indicated, except that the unaudited
interim financial statements do not contain footnote disclosure and are subject to normal and
recurring year-end adjustments which are not expected to be material in amount.

     Section 6.6
No Undisclosed Liabilities. Neither I.E. Miller nor any of its
Subsidiaries has any liabilities of any nature that are material, individually or in the aggregate,
in relation to the business of I.E. Miller and its Subsidiaries, taken as a whole (whether accrued,
absolute, contingent or otherwise) other than (a) liabilities fully provided for in the Latest I.E.
Miller Balance Sheet (including the footnotes thereto) (b) liabilities that are specifically set
forth in Section 6.6 of the I.E. Miller Disclosure Schedule, and (c) other undisclosed
liabilities incurred by I.E. Miller or its Subsidiaries since June 30, 2005 in the ordinary course
of business consistent with past practices.

     Section 6.7
No Violation. Except as set forth in Section 6.7 of the I.E.
Miller Disclosure Schedule, neither the execution and delivery by I.E. Miller of this Agreement or
any instrument required hereby to be executed and delivered by it at the Closing nor the
performance by I.E. Miller of its obligations hereunder or thereunder will (i) violate or breach
the terms of or cause a default under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination, cancellation or acceleration of any
obligation under, or result in the creation of any Lien upon any of the properties or assets of
I.E. Miller or any of its Subsidiaries under (A) any Law, regulation or order of any Governmental
Authority applicable to I.E. Miller or any of its Subsidiaries, (B) I.E. Miller’s or any of its
Subsidiary’s organizational documents, including its certificate or articles of incorporation and
bylaws or other organizational documents, each as amended or restated, or (C) any I.E. Miller
Material Contract, or (ii) with the passage of time, the giving of notice or the taking of any
action by a third party, have any of the effects set forth in clause (i) of this Section
6.7.

     Section 6.8
Compliance with Laws; Permits.

     (a)
Except as set forth in Section 6.8(a) of the I.E. Miller Disclosure
Schedule, I.E. Miller and its Subsidiaries are in compliance in all material respects with
all applicable Laws. Except as set forth in Section 6.8(a) of the I.E. Miller
Disclosure Schedule, neither I.E. Miller nor any of its Subsidiaries has received notice of
any

33

 

violation of any Law, or any potential liability under any Law, relating to the
operation of its business or to any of its assets, operations, processes, results or
products.

     (b) Section 6.8(b) of the I.E. Miller Disclosure Schedule sets forth a list of
each Permit issued and held by or on behalf of I.E. Miller or its Subsidiaries or required
to be so issued and held to carry on their respective businesses as currently conducted
which is material to the business. Except as set forth in Section 6.8(b) of the
I.E. Miller Disclosure Schedule, I.E. Miller or the relevant Subsidiary of I.E. Miller, as
applicable, is the authorized legal holder of such Permits, and each such Permit is valid
and in full force and effect. Neither I.E. Miller nor the relevant Subsidiary of I.E.
Miller, as applicable, is in default under, and to the Knowledge of I.E. Miller, no
condition exists that with notice or lapse of time or both could constitute a default or
could give rise to a right of termination, cancellation or acceleration under, any such
Permit.

     Section 6.9
Litigation.

     (a) Except as set forth in Section 6.9(a) of the I.E. Miller Disclosure
Schedule, there are no actions, suits or proceedings pending or, to the Knowledge of I.E.
Miller, threatened at law or in equity, or before or by any Governmental Authority or before
any arbitrator of any kind, against I.E. Miller or any of its Subsidiaries. Except as set
forth in Section 6.9(a) of the I.E. Miller Disclosure Schedule, there are no
outstanding judgments, orders, injunctions, decrees, stipulations or awards (whether
rendered by a court, administrative agency, arbitral body or Governmental Authority) against
I.E. Miller or any of its Subsidiaries.

     (b) All claims, whether in contract or tort, for defective or allegedly defective
products or workmanship pending or, to the Knowledge of I.E. Miller, threatened, against
I.E. Miller or any of its Subsidiaries are listed or described in Section 6.9(b) of
the I.E. Miller Disclosure Schedule.

     Section 6.10
Accuracy of Confidential Solicitation Statement. None of the information
to be included in the Confidential Solicitation Statement concerning the business, operations,
financial results or condition, assets or liabilities of I.E. Miller and its Subsidiaries will, as
of the date of such Confidential Solicitation Statement (which date shall be at or about the date
such Confidential Solicitation Statement is first mailed to the stockholders of the Combining
Company), (i) be false or misleading with respect to any material fact, (ii) contain any untrue
statement of a material fact or (iii) omit to state a material fact necessary in order to make the
statements to be contained therein not misleading.

     Section 6.11 Title to Assets. Except for inventory disposed of in the ordinary course
of business consistent with past practices, assets such as accounts receivable which have been
converted into other assets in the ordinary course of business, assets such as prepaid insurance
that have dissipated over time in the ordinary course of business, and disposal of other assets
with an aggregate fair market value not exceeding $1,000,000, I.E. Miller or one of its
Subsidiaries owns, or in the case of leased property has valid leasehold interests in, the property
and assets (whether real or personal, tangible or intangible) reflected in the Latest I.E. Miller

34

 

Balance Sheet or acquired after June 30, 2005, free and clear of all Liens, except for
Permitted Liens and Liens set forth in Section 6.11 of the I.E. Miller Disclosure
Statement.

     Section 6.12 Tax Matters.

     (a) Except as set forth in Section 6.12(a) of the I.E. Miller Disclosure
Schedule:

     (i) all Tax Returns for all periods which end on or prior to the Closing Date
that are, were or shall be required to be filed on or prior to the Closing Date by
or on behalf of I.E. Miller or any of its Subsidiaries have been or shall be filed
on a timely basis in accordance with the applicable Laws of each Governmental
Authority, and at the time of their filing all such Tax Returns were complete and
accurate in all material respects;

     (ii) I.E. Miller and/or its Subsidiaries, as applicable, have paid all of its
Taxes shown as due and owing on such Tax Returns or adequate provisions on their
books in accordance with GAAP have been made with respect thereto;

     (iii) no claim has ever been made by a Governmental Authority in a jurisdiction
where I.E. Miller or any of its Subsidiaries does not file Tax Returns that I.E.
Miller or any of its Subsidiaries is or may be subject to taxation by that
jurisdiction;

     (iv) all Taxes that I.E. Miller or its Subsidiaries was or is required by Law
to withhold, collect or deposit prior to the Closing Date have been duly withheld or
collected and, to the extent required, have been paid to the appropriate
Governmental Authorities;

     (v) there are no Liens with respect to Taxes on the assets of I.E. Miller or
any of its Subsidiaries, other than Permitted Liens;

     (vi) no adjustment relating to such Tax Returns has been proposed formally or,
to the Knowledge of I.E. Miller, proposed informally or threatened, by any Taxing
authority;

     (vii) there are no pending or, to the Knowledge of I.E. Miller, threatened
actions or proceedings for the assessment or collection of Taxes against I.E. Miller
or any of its Subsidiaries;

     (viii) Neither I.E. Miller nor any of its Subsidiaries is a party to any
agreement or arrangement that would result, separately or in the aggregate, in the
actual or deemed payment by I.E. Miller or any of its Subsidiaries of any “excess
parachute payment” within the meaning of Section 280G of the Code;

     (ix) Neither I.E. Miller or any of its Subsidiaries has been included in any
consolidated, combined or unitary Tax Return and has no liability for any Taxes of
any Person (other than I.E. Miller or such Subsidiaries) under Treas.

35

 

Reg. § 1.1502-6 (or similar provisions of state, local or foreign law) as a
transferee or successor, by contract or otherwise;

     (x) Neither I.E. Miller nor any of its Subsidiaries is a party to or bound by
any Tax allocation or Tax-Sharing Agreement and has no contractual obligation to
indemnify any other person with respect to Taxes;

     (xi) no assets of I.E. Miller or any Subsidiary of I.E. Miller are “tax-exempt
use property” within the meaning of Section 168(h)(1) of the Code;

     (xii) the unpaid Taxes of I.E. Miller and its Subsidiaries as of June 30, 2005
did not exceed in any material respect the reserve for Tax liabilities (rather than
the reserve for deferred Taxes to reflect timing differences between book and Tax
income and any other amounts reflected in deferred Taxes) on the Latest I.E. Miller
Balance Sheet;

     (xiii) neither I.E. Miller nor any of its Subsidiaries has agreed to make, and
is not required to make, adjustments under Section 481(a) of the Code by reason of a
change in accounting method, and the consummation of the transactions contemplated
by this Agreement will not result in I.E. Miller or any of its Subsidiaries being
required to make any such adjustments following the Closing Date;

     (xiv) I.E. Miller and each of its Subsidiaries uses the accrual method of
accounting for Tax accounting purposes;

     (xv) I.E. Miller is not a United States real property holding corporation
within the meaning of Code Section 897(c)(2) during the applicable period specified
in Code Section 897(c)(1)(A)(ii); and

     (xvi) neither I.E. Miller nor any of its Subsidiaries has participated in any
listed transaction required to be disclosed under Treas. Reg. § 1.6011-4.

     (b) Except as set forth in Section 6.12(b) of the I.E. Miller Disclosure
Schedule: (i) there are no outstanding waivers or agreements extending the statute of
limitations for any period with respect to any Tax to which I.E. Miller or any of its
Subsidiaries may be subject nor have any such waivers or agreements been requested; (ii) to
the Knowledge of I.E. Miller, there are no requests for information currently outstanding
that could affect the Taxes of I.E. Miller or any of its Subsidiaries; (iii) to the
Knowledge of I.E. Miller, there are no proposed reassessments of any property owned by I.E.
Miller or any of its Subsidiaries or any other proposals that are reasonably likely to
increase the amount of any Tax to which I.E. Miller or any of its Subsidiaries would be
subject; and (iv) no power of attorney that is currently in force has been granted with
respect to any matter relating to Taxes that could affect I.E. Miller or any of its
Subsidiaries.

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     Section 6.13 Intellectual Property.

     (a) Section 6.13(a) of the I.E. Miller Disclosure Schedule sets forth a list of
(i) all issued patents and all registered copyrights, trademarks, service marks and domain
names included in the Intellectual Property Rights owned by I.E. Miller or any of its
Subsidiaries and (ii) all pending patent applications and all applications for the
registration of copyrights, trademarks, and service marks included in the Intellectual
Property Rights owned by I.E. Miller or any of its Subsidiaries.

     (b) Except as set forth in Section 6.13(b) of the I.E. Miller Disclosure
Schedule:

     (i) I.E. Miller and/or its Subsidiaries own and possesses all right, title, and
interest in, free and clear of all Liens (other than license agreements executed in
the ordinary course of business and Permitted Liens), or has a right to use, all of
the material Intellectual Property Rights necessary for the conduct of the their
respective businesses.

     (ii) To the Knowledge of I.E. Miller, the conduct of the business by I.E.
Miller and its Subsidiaries as currently conducted does not infringe upon any
Intellectual Property Rights of any third party. There is no claim, suit, action or
proceeding that is either pending or, to the Knowledge of I.E. Miller, threatened,
that, in either case, involves a claim of infringement by I.E. Miller or any of its
Subsidiaries of any Intellectual Property Rights of any third party, or challenging
I.E. Miller’s or any of its Subsidiary’s, as applicable, ownership, right to use, or
the validity of any Intellectual Property Right listed or required to be listed in
Section 6.13(a) of the I.E. Miller Disclosure Schedule.

     (iii) No Intellectual Property Right listed or required to be listed in
Section 6.13(a) of the I.E. Miller Disclosure Schedule is subject to any
outstanding order, judgment, decree, stipulation or agreement restricting the use
thereof by I.E. Miller or its Subsidiaries, as applicable, or restricting the
licensing thereof by I.E. Miller or its Subsidiaries, as applicable to any Person,
other than as set forth in Section 6.13(a) of the I.E. Miller Disclosure
Schedule and other than with respect to standard and customary restrictions
associated with commercially available third party software to which I.E. Miller or
its Subsidiaries has a valid right to use in connection with their businesses;

     (iv) Other than as set forth in Section 6.13(a) of the I.E. Miller
Disclosure Schedule, neither I.E. Miller or its Subsidiaries has not entered into
any agreement to indemnify any other Person against any charge of infringement of
any Intellectual Property Right; and

     (v) I.E. Miller or its Subsidiaries, as applicable, has duly maintained all
registrations for the Intellectual Property Rights listed on Section 6.13(a)
of the I.E. Miller Disclosure Schedule.

     Section 6.14 Environmental Matters.

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     (a) Except as set forth in Section 6.14(a) of the I.E. Miller Disclosure
Schedule:

     (i) Neither I.E. Miller nor any of its Subsidiaries, and to Knowledge of I.E.
Miller no other party has, generated, recycled, used, treated or stored on,
transported to or from, or Released on, the I.E. Miller Real Property any
Constituents of Concern, except in compliance in all material respects with
Environmental Laws;

     (ii) Neither I.E. Miller nor any of its Subsidiaries has disposed of
Constituents of Concern generated at any I.E. Miller Real Property to any off-site
facility except in compliance in all material respects with Environmental Laws;

     (iii) I.E. Miller and its Subsidiaries has been and is in compliance in all
material respects with (a) Environmental Laws and (b) the requirements of
Environmental Permits with respect to the I.E. Miller Real Property;

     (iv) There are no pending or, to the Knowledge of I.E. Miller, threatened
Environmental Claims against I.E. Miller or any of its Subsidiaries or any I.E.
Miller Real Property, and I.E. Miller has no Knowledge of any facts, circumstances,
conditions or occurrences regarding I.E. Miller’s or any of its Subsidiaries’
operations or with respect to any I.E. Miller Real Property that could reasonably be
expected to form the basis of a material Environmental Claim against I.E. Miller or
its Subsidiaries;

     (v) To the Knowledge of I.E. Miller, no Environmental Condition exists at any
I.E. Miller Real Property;

     (vi) None of I.E. Miller, its Subsidiaries or any I.E. Miller Real Property is
listed or, to the Knowledge of I.E. Miller, proposed for listing on the National
Priorities List under CERCLA or on any similar federal, state or foreign list of
sites requiring investigation or clean-up, and neither I.E. Miller nor any of its
Subsidiaries has received any requests for information pursuant to 104(e) of CERCLA
or any state counterpart or equivalent; and

     (vii) I.E. Miller and its Subsidiaries have obtained all required Environmental
Permits material to its Subsidiaries. Except as set forth in Section
6.14(a)(vii) of the I.E. Miller Disclosure Schedule, no such Environmental
Permits are nontransferable or require consent, notification or other action by a
Governmental Authority to remain in full force and effect following the consummation
of the transactions contemplated hereby.

     (b) To the Knowledge of I.E. Miller, I.E. Miller has delivered or made available to
each of the other Combining Companies true and complete copies of all material environmental
investigations, studies, audits, tests, reviews or other analyses commenced or conducted in
the last three years by or on behalf of I.E. Miller or any of its Subsidiaries in their
possession that relate to their respective businesses.

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     (c) Notwithstanding any other provision of this Agreement to the contrary, these
representations and warranties in this Section 6.14 shall be the sole and exclusive
representations and warranties concerning Environmental Claims, Environmental Conditions,
Environmental Laws or Environmental Permits as those terms may apply to I.E. Miller, any of
its Subsidiaries or any of the I.E. Miller Real Property.

     Section 6.15 Benefit Plans and Material Documents.

     (a) Section 6.15(a) of the I.E. Miller Disclosure Schedule sets forth a list of
all existing Benefit Plans sponsored or contributed to by I.E. Miller or any ERISA Affiliate
of I.E. Miller covering any current or former employee, officer or director of I.E. Miller
or any ERISA Affiliate of I.E. Miller. With respect to each such Benefit Plan subject to
ERISA, I.E. Miller has delivered or made available to the other Combining Companies a true
and complete copy of each such Benefit Plan (including all amendments thereto) and a true
and complete copy of each material document (including all amendments thereto) prepared in
connection with each such Benefit Plan including (i) a copy of each trust or other funding
arrangement, (ii) each summary plan description and summary of material modifications, (iii)
the most recently filed IRS Form 5500 for each such Benefit Plan, if any, and (iv) the most
recent determination letter referred to in Section 6.14(d). With respect to each
such Benefit Plan not subject to ERISA, I.E. Miller has delivered or made available to other
Combining Companies a true and complete copy of each such Benefit Plan including each
related material document. Neither I.E. Miller nor any of its Subsidiaries has any express
or implied commitment to create, incur liability with respect to or cause to exist any
additional Benefit Plan or to modify any existing Benefit Plan, other than as required by
Law.

     (b) Except as set forth in Section 6.15(b) of the I.E. Miller Disclosure
Schedule or for policies generally available to the employees of I.E. Miller and its
Subsidiaries, none of such Benefit Plans provides for the payment of separation, severance,
termination or similar-type benefits to any person or provides for or, except to the extent
required by Law, promises retiree medical or retiree life insurance benefits to any current
or former employee, officer or director of I.E. Miller or any of its Subsidiaries.

     (c) Except as set forth in Section 6.15(c) of the I.E. Miller Disclosure
Schedule, each such Benefit Plan is in compliance with, and has been operated in accordance
with, in all material respects, its terms, ERISA, the Code and other applicable Laws, and
I.E. Miller and the ERISA Affiliates of I.E. Miller have satisfied in all material respects
all of their statutory, regulatory and contractual obligations with respect to each such
Benefit Plan. No material legal action, suit or claim is pending or, to the Knowledge of
I.E. Miller, threatened with respect to any such Benefit Plan (other than claims for
benefits in the ordinary course) and, to the Knowledge of I.E. Miller, no fact or event
exists that could, individually or in the aggregate, reasonably be expected to give rise to
any such action, suit or claim.

     (d) Except as set forth in Section 6.15(d) of the I.E. Miller Disclosure
Schedule, each such Benefit Plan or trust which is intended to be qualified or exempt

39

 

from taxation under Section 401(a), 401(k) or 501(a) of the Code has received a
favorable determination letter from the IRS that it is so qualified or exempt, and, to the
Knowledge of I.E. Miller, nothing has occurred since the date of such determination letter
that would adversely affect the qualified or exempt status of any such Benefit Plan or
related trust.

     (e) There has been no non-exempt prohibited transaction (within the meaning of Section
406 of ERISA or Section 4975 of the Code) with respect to any such Benefit Plan. Neither
I.E. Miller nor any of its Subsidiaries has incurred any liability for any excise tax
arising under the Code with respect to such Benefit Plan.

     (f) All contributions, premiums or payments required to be made with respect to any
such Benefit Plan have been made on or before their due dates and for those not yet due but
should be accrued in accordance with GAAP do not exceed, in any material respect, the
reserve for such amounts on the Latest I.E. Miller Balance Sheet. For completed plan years
of such Benefit Plans, all such contributions have been fully deducted for income tax
purposes and no such deduction has been challenged or disallowed by any Governmental
Authority.

     (g) There has been no amendment to, written interpretation of, announcement (whether or
not written) by I.E. Miller or any ERISA Affiliate of I.E. Miller relating to, or change in
employee participation or coverage under, any such Benefit Plan that, to the Knowledge of
I.E. Miller, would increase materially the expense of maintaining such Benefit Plan above
the level of the expense incurred in respect thereto for the most recent fiscal year ended
prior to the date hereof, other than in the ordinary course of business.

     (h) Except as set forth in Section 6.15(h), no employee or former employee of
I.E. Miller or any ERISA Affiliate of I.E. Miller will become entitled to any bonus,
retirement, severance, job security or similar benefit or any enhanced benefit (including
acceleration of vesting or exercise of an incentive award) as a result of the transactions
contemplated by this Agreement.

     (i) All reports and disclosures relating to such Benefit Plans required to be filed
with or furnished to Governmental Authorities, participants or beneficiaries have been filed
or furnished in accordance with applicable law in a timely manner.

     (j) Neither I.E. Miller nor any ERISA Affiliate of I.E. Miller is maintaining,
contributing to or sponsoring a Benefit Plan subject to Title IV of ERISA, Section 302 of
ERISA or Section 412 of the Code nor, to the Knowledge of I.E. Miller, has done so within
six years prior to the Closing Date.

     (k) Neither I.E. Miller nor any ERISA Affiliate of I.E. Miller is maintaining or
contributing to a Benefit Plan that is a “multiemployer plan” within the meaning of Section
3(37) of ERISA nor, to the Knowledge of I.E. Miller, has done so within six years prior to
the Closing Date.

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     (l) As to any such Benefit Plan intended to be qualified under Section 401 of the Code,
there has been no termination or partial termination of such Benefit Plan within the meaning
of Section 411(d)(3) of the Code.

     (m) No act, omission or transaction has occurred which would result in imposition on
I.E. Miller or any ERISA Affiliate of I.E. Miller any of (A) breach of fiduciary duty
liability damages under Section 409 of ERISA, (B) a civil penalty assessed pursuant to
subsections (c), (i) or (l) of Section 502 of ERISA, or (C) a tax imposed pursuant to
Chapter 43 of Subtitle D of the Code, in each case with respect to such Benefit Plans.

     (n) There is no matter pending (other than routine annual or qualification
determination filings) specific to any of such Benefit Plans before the IRS, the Department
of Labor, or any other Governmental Authority.

     (o) With respect to any “employee pension benefit plan,” if any, as such term is
defined in Section 3(2) of ERISA, which is not listed in Section 6.15(a) but which
is sponsored, maintained, or contributed to, or, to the Knowledge of I.E. Miller, has been
sponsored, maintained, or contributed to within six years prior to the Closing Date, by I.E.
Miller or any ERISA Affiliate of I.E. Miller, (A) no withdrawal liability, within the
meaning of Section 4201 of ERISA, has been incurred, which withdrawal liability has not been
satisfied, (B) no liability to the Pension Benefit Guaranty Corporation has been incurred by
any ERISA Affiliate, which liability has not been satisfied, (C) no accumulated funding
deficiency, whether or not waived, within the meaning of Section 302 of ERISA or Section 412
of the Code has been incurred, and (D) all contributions (including installments) to such
plan required by Section 302 of ERISA and Section 412 of the Code have been timely made.

     (p) To the Knowledge of I.E. Miller, each such Benefit Plan that is an “employee
welfare benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally
amended or terminated in its entirety without liability except as to benefits accrued
thereunder prior to such amendment or termination.

     (q) No Benefit Plan of Compete or any ERISA Affiliate of I.E. Miller that is a Foreign
Plan is a defined benefit pension plan or a similar type of accrual-based plan. With
respect to each such Benefit Plan that is a Foreign Plan, there are no funded benefit
obligations for which contributions have not been made or properly accrued and there are no
unfunded benefit obligations which have not been accounted for by reserves, or otherwise
properly reflected in accordance with GAAP, on the financial statements of I.E. Miller or
its Subsidiaries. Except as set forth in Section 6.15(1) of the I.E. Miller
Disclosure Schedule, the contribution and benefit liabilities of I.E. Miller or any of its
Subsidiaries respecting each Benefit Plan that is a Foreign Plan are fully funded based upon
applicable accounting, valuation and/or actuarial methodology contained in the most recent
accounting, valuation and/or actuarial report respecting such Foreign Plan.

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     Section 6.16 Material Contracts.

     (a) Except as specifically set forth in Section 6.16(a) of the I.E. Miller
Disclosure Schedule, neither I.E. Miller nor any of its Subsidiaries is a party to or bound
by any Contract that is of a type described below (collectively, the “I.E. Miller
Material Contracts”):

     (i) any lease (whether of real or personal property, but excluding personal
property leases with annual rental obligations of $1,000,000 or less or that may be
terminated without penalty within 90 days or less);

     (ii) except pursuant to purchase orders issued in the ordinary course of
business, any agreement for the purchase of materials, supplies, goods, services,
equipment or other assets that provided for aggregate payments by I.E. Miller or any
of its Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May
31, 2005;

     (iii) any sales, distribution or other similar agreement providing for the sale
by I.E. Miller or any of its Subsidiaries of materials, supplies, goods, services,
equipment or other assets that provided for aggregate payments to I.E. Miller or any
of its Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May
31, 2005;

     (iv) any partnership, joint venture or other similar agreement or arrangement;

     (v) any Contract pursuant to which any third party has rights to own or use any
material asset of I.E. Miller or any of its Subsidiaries, including any Intellectual
Property Right the exclusive use of which is material to I.E. Miller and its
Subsidiaries taken as a whole;

     (vi) any agreement relating to the acquisition or disposition of any business
(whether by merger, sale of stock, sale of assets or otherwise) or granting to any
Person a right of first refusal, first offer or other right to purchase any of the
material assets of I.E. Miller or any of its Subsidiaries;

     (vii) any agreement relating to Indebtedness for borrowed money, guaranties of
Indebtedness for borrowed money and letters of credit or similar instruments (in any
case, whether incurred, assumed, guaranteed or secured by any asset of I.E. Miller
or any of its Subsidiaries) other than accruals recorded in the ordinary course of
business;

     (viii) any material license, franchise or similar agreement material to the
business of I.E. Miller and its Subsidiaries, taken as a whole;

     (ix) any agency, dealer, sales representative, marketing or other similar
agreement material to the business of I.E. Miller and its Subsidiaries, taken as a
whole;

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     (x) any agreement with any director or executive officer of I.E. Miller or with
any “associate” or any member of the “immediate family” (as such terms are
respectively defined in Rules 12b-2 and 16a-1 of the Exchange Act) of any such
director or executive officer;

     (xi) any management service, consulting or any other similar type of agreement
material to the business of I.E. Miller and its Subsidiaries, taken as a whole;

     (xii) any employment, consulting, deferred compensation, severance, bonus,
retirement or other similar agreement or plan in effect as of the date hereof
(including in respect of any advances or loans to any employees but excluding loans
under I.E. Miller’s 401(k) plans) and entered into or adopted by I.E. Miller or any
of its Subsidiaries;

     (xiii) any Contract involving foreign currency transactions entered into for
the purpose of hedging any currency or pricing risk;

     (xiv) all confidentiality agreements not made in the ordinary course of
business other than in connection with acquisitions considered by I.E. Miller or any
of its Subsidiaries and all non-competition agreements that restrict the nature or
duration of, or imposes any geographic limitation on, any business that could be
conducted by I.E. Miller or any of its Subsidiaries; or

     (xv) any other agreement, commitment, arrangement or plan not made in the
ordinary course of business of I.E. Miller or its Subsidiaries that is material to
I.E. Miller and its Subsidiaries or their respective businesses, taken as a whole.

     (b) Each I.E. Miller Material Contract disclosed in or required to be disclosed in
Section 6.16(a) of the I.E. Miller Disclosure Schedule is a valid and binding
agreement of I.E. Miller or its Subsidiaries, as applicable and, to the Knowledge of I.E.
Miller, each other party thereto, enforceable in accordance with its respective terms,
except as such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting enforcement of creditors’ rights generally and by
general principles of equity (whether applied in a proceeding at law or in equity). Neither
I.E. Miller nor its Subsidiaries, as applicable, nor, to the Knowledge of I.E. Miller, any
other party to any such I.E. Miller Material Contract is in default or breach (with or
without due notice or lapse of time or both) in any material respect under the terms of any
such I.E. Miller Material Contract. I.E. Miller has delivered or made available to the other
Combining Companies true and complete originals or copies of all I.E. Miller Material
Contracts disclosed in or required to be disclosed in Section 6.16(a) of the I.E.
Miller Disclosure Schedule.

     Section 6.17 Real Property.

     (a) Section 6.17(a) of the I.E. Miller Disclosure Schedule contains a complete
and correct list of all real property owned by I.E. Miller or any of its Subsidiaries (the
“I.E. Miller Owned Real Property”) setting forth the address and owner of
each parcel of

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I.E. Miller Owned Real Property. I.E. Miller or its Subsidiary has good, valid and
indefeasible fee simple title to I.E. Miller Owned Real Property indicated on Section
6.17(a) of the I.E. Miller Disclosure Schedule as being owned by it, free and clear of
all Liens other than Permitted Liens and Liens set forth on Section 6.17(a) of the
I.E. Miller Disclosure Schedule. There are no outstanding options or rights of first
refusal to purchase the I.E. Miller Owned Real Property, or any portion thereof or interest
therein.

     (b) Leases. Section 6.17(b) of the I.E. Miller Disclosure Schedule
contains a complete and correct list of all real property leased by I.E. Miller or any of
its Subsidiaries (the “I.E. Miller Leased Real Property,” and together with the I.E.
Miller Owned Real Property, the “I.E. Real Property”) setting forth the address,
landlord and tenant for each lease comprising the I.E. Miller Leased Real Property. Each
material lease comprising the I.E. Miller Leased Real Property is legal, valid, binding,
enforceable, and in full force and effect against I.E. Miller or its Subsidiaries, as
applicable, and, to the Knowledge of I.E. Miller, against each other party thereto. Except
as set forth in Section 6.17(b) of the I.E. Miller Disclosure Schedule, to the
Knowledge of I.E. Miller, each lease comprising the I.E. Miller Leased Real Property grants
I.E. Miller or its Subsidiaries, as applicable, the exclusive right to use and occupy the
demised premises thereunder. I.E. Miller or its Subsidiaries, as applicable, have a valid
leasehold interest under each such material lease.

     (c) No Proceedings. There are no eminent domain or other similar proceedings
pending or, to the Knowledge of I.E. Miller, threatened affecting any portion of the I.E.
Miller Owned Real Property or, to the Knowledge of I.E. Miller, the I.E. Miller Leased Real
Property.

     Section 6.18 Absence of Certain Changes. Except as set forth in Section 6.18
of the I.E. Miller Disclosure Schedule or in connection with the transactions contemplated by this
Agreement, since June 30, 2005, I.E. Miller and its Subsidiaries have conducted their respective
businesses in the ordinary course of business consistent with past practices and there has not been
any event, occurrence, development or circumstances which has had or which is reasonably expected
to have (a) a Material Adverse Effect on I.E. Miller or (b) would have constituted a violation of
any covenants of I.E. Miller included in Section 8.2 had such covenant applied to it since
June 30, 2005. Since June 30, 2005, there has not occurred any damage, destruction or casualty
loss resulting in Damages exceeding $1,000,000 in the aggregate (whether or not covered by
insurance) with respect to any asset owned or operated by I.E. Miller or any of its Subsidiaries.

     Section 6.19 Insurance Coverage. Section 6.19 of the I.E. Miller Disclosure
Schedule contains a list of all of the insurance policies and fidelity bonds covering the assets,
business, operations, employees, officers and directors of I.E. Miller and its Subsidiaries. There
is no material claim by I.E. Miller or any of its Subsidiaries pending under any of such policies
or bonds as to which I.E. Miller or any of its Subsidiaries has received any refusal of coverage or
any notice that a defense will be afforded with reservation of rights. All premiums due and
payable under all such policies and bonds have been paid, and I.E. Miller and its Subsidiaries have
complied in all material respects with the terms and conditions of all such policies and

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bonds. Such policies of insurance and bonds (or other policies and bonds providing
substantially similar insurance coverage) are in full force and effect. To the Knowledge of I.E.
Miller, there is no threat of termination of, or material premium increase with respect to, any of
such policies or bonds.

     Section 6.20 Affiliate Transactions.

     (a) Except as set forth in Section 6.20(a) of the I.E. Miller Disclosure
Schedule, there are no outstanding payables, receivables, loans, advances and other similar
accounts between I.E. Miller or any of its Subsidiaries, on the one hand, and any of its
Affiliates, on the other hand, relating to business of I.E. Miller or its Subsidiaries.

     (b) Except as set forth in Section 6.20(b) of the I.E. Miller Disclosure
Schedule, to the Knowledge of I.E. Miller, no director or executive officer of I.E. Miller
possesses, directly or indirectly, any ownership interest in, or is a director, officer or
employee of, any Person which is a supplier, customer, lessor, lessee, licensor, or
competitor of I.E. Miller or its Subsidiaries. Ownership of 1% or less of any class of
securities of a Person whose securities are registered under the Exchange Act will not be
deemed to be an ownership interest for purposes of this Section 6.20(b).

     Section 6.21 Customer, Supplier and Employee Relations. Section 6.21 of the
I.E. Miller Disclosure Schedule, includes a complete and correct list of (a) all customers of the
business of I.E. Miller and its Subsidiaries who made aggregate purchases in excess of 5% of the
total consolidated revenues of I.E. Miller and its Subsidiaries during calendar year 2004 and/or
for the five months ended May 31, 2005 and (b) all suppliers with a relationship with I.E. Miller
and/or its Subsidiaries, the termination of which would have an adverse effect that is material to
the business of I.E. Miller and its Subsidiaries taken as a whole. Except as set forth in
Section 6.21 of the I.E. Miller Disclosure Schedule, none of such customers or suppliers,
or officers or senior managers of I.E. Miller and/or its Subsidiaries has canceled, terminated or
otherwise materially altered or notified I.E. Miller or its Subsidiaries of any intention to
cancel, terminate or materially alter its relationship with I.E. Miller or its Subsidiaries since
December 31, 2004.

     Section 6.22 Other Employment Matters.

     (a) Neither I.E. Miller nor any of its Subsidiaries is a party to any labor or
collective bargaining agreement.

     (b) No labor organization or group of I.E. Miller, its Subsidiaries or any of their
respective employees has made a pending demand for recognition, there are no representation
proceedings or petitions seeking a representation proceeding presently pending or, to the
Knowledge of I.E. Miller, threatened to be brought or filed with the National Labor
Relations Board or other labor relations tribunal, and there is no organizing activity
involving I.E. Miller or any of its Subsidiaries or, to the Knowledge of I.E. Miller,
threatened by any labor organization or group of employees.

     (c) There are no (i) strikes, work stoppages, slow-downs, lockouts or arbitrations or
(ii) grievances or other labor disputes pending or, to the Knowledge of I.E. Miller,
threatened against or involving I.E. Miller or any of its Subsidiaries.

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     (d) There are no complaints, charges or claims against I.E. Miller or any of its
Subsidiaries pending or, to the Knowledge of I.E. Miller, threatened to be brought or filed
with any Governmental Authority based on, arising out of, in connection with, or otherwise
relating to the employment by I.E. Miller or any of its Subsidiaries, of any Person,
including any claim for workers’ compensation.

     (e) I.E. Miller and its Subsidiaries are in compliance in all material respects with
all Laws and Orders in respect of employment and employment practices and the terms and
conditions of employment and wages and hours, and have not, and are not, engaged in any
unfair labor practice.

     (f) Section 6.22(f) of the I.E. Miller Disclosure Schedule contains a complete
and accurate list of the following information for each executive officer and each other
employee (with annual base compensation in excess of $150,000 or officer of I.E. Miller or
its Subsidiaries, including each such executive officer or employee on leave of absence or
layoff status: employer; name; job title; current compensation paid or payable and any
change in compensation since June 30, 2005; and all bonuses and any other amounts to be paid
by I.E. Miller or its Subsidiaries at or in connection with the Closing.

     (g) Except as set forth in Section 6.22(g) of the I.E. Miller Disclosure
Schedule, to the Knowledge of I.E. Miller, no employee, officer or director of I.E. Miller
or its Subsidiaries is a party to, or is otherwise bound by, any confidentiality,
non-competition, proprietary rights agreement or similar agreement that would affect (i) the
performance of his or her duties as an employee, officer or director of I.E. Miller or its
Subsidiaries or (ii) the ability of the I.E. Miller Surviving Company to conduct the
business of I.E. Miller and its Subsidiaries after the Closing Date.

     Section 6.23 Product and Service Warranties; Liability Defects; Liability. Except as
set forth in Section 6.23 of the I.E. Miller Disclosure Schedule, each product
manufactured, sold, leased, delivered or installed or services performed by I.E. Miller or its
Subsidiaries prior to the Closing has complied with and conformed in all material respects to (a)
all applicable federal, state, local or foreign laws and regulations and (b) contractual
commitments and all applicable warranties of I.E. Miller and its Subsidiaries except for any
failures to so comply or conform for which an adequate aggregate reserve is set forth on the Latest
I.E. Miller Balance Sheet. Section 6.23 of the I.E. Miller Disclosure Schedule sets forth
the expense related to warranty claims for I.E. Miller and its Subsidiaries for 2004 and the
five-month period ended May 31, 2005.

     Section 6.24 Finders’ Fees. Except for Houlihan Lokey Howard & Zukin and Bernstein
Conklin & Balcombe, there is no investment banker, broker, finder or other intermediary which has
been retained by or is authorized to act on behalf of I.E. Miller or its Subsidiaries or their
Affiliates who might be entitled to any fee or other commission payable by I.E. Miller or its
Subsidiaries in connection with the transactions contemplated by this Agreement or any of the
Ancillary Agreements.

     Section 6.25 Fairness Opinion. I.E. Miller has received the written opinion of
Houlihan Lokey Howard & Zukin that the percentage of shares of IPS Common Stock to be held

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by the stockholders of I.E. Miller as a result of the consummation of the Mergers contemplated
by this Agreement is fair to the stockholders (other than SCF) of I.E. Miller from a financial
point of view.

     Section 6.26 Disclaimer of Other Representations and Warranties. Except as expressly
set forth in this Article VI, I.E. Miller makes no representation or warranty, express or
implied, at law or in equity, in respect of I.E. Miller or any of its Subsidiaries, or any of their
respective assets, liabilities or operations, including, without limitation, with respect to
merchantability or fitness for any particular purpose, and any such other representations or
warranties are hereby expressly disclaimed.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF IPS

     IPS represents and warrants to Complete and I.E. Miller that the statements contained in this
Article VII are correct and complete as of the date of this Agreement, except as set forth
in the disclosure schedule delivered by IPS to Complete and I.E. Miller on the date hereof (the
“IPS Disclosure Schedule”) (which shall be numbered to refer to the sections contained in
this article).

     Section 7.1 Organization; Qualification. IPS is a corporation duly organized under
the DGCL and is validly existing and in good standing under the laws of the State of Delaware.
Each Subsidiary of IPS is an entity duly organized under the jurisdiction of its formation and is
validly existing and in good standing under the laws of such jurisdiction. IPS and each Subsidiary
of IPS has all requisite corporate or entity power and authority to own, operate or lease its
properties and to carry on its business as now being conducted. IPS is duly qualified to do
business as a foreign corporation or other entity and is in good standing in each jurisdiction
where the character of its properties owned, operated or leased, or the nature of its activities,
makes such qualifications necessary, except where the failure to be so qualified and in good
standing will not have a Material Adverse Effect on IPS.

     Section 7.2 Subsidiaries. Except as set forth in Section 7.2 of the IPS
Disclosure Schedule, IPS does not own any Capital Stock or other equity or ownership or proprietary
interest in any Person.

     Section 7.3 Capitalization. The authorized capital stock of IPS consists of 12,000,000
shares of IPS Common Stock, of which 9,280,334 shares are issued and outstanding (and 622,708
shares are reserved for issuance pursuant to prior acquisition agreements) 1,000 shares of
preferred stock, par value $.01 per share (“IPS Preferred Stock”), of which one share has
been designated as Special Preferred Voting Stock. The issued and outstanding shares of IPS Common
Stock and IPS Preferred Stock are owned of record by the persons and in the amounts set forth in
Section 7.3 of the IPS Disclosure Schedule. All of the outstanding shares of IPS Common
Stock and all of the outstanding shares of the Capital Stock of each Subsidiary of IPS are duly
authorized, validly issued, fully paid and nonassessable, were issued free of the preemptive rights
of any Person and in compliance with applicable corporate and securities Laws. The Capital Stock
of each Subsidiary of IPS is owned legally and beneficially as set forth in Section 7.3 of
the IPS Disclosure Schedule. The shares of IPS Common Stock to be issued in

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the Mergers, will, upon issuance, represent duly authorized, validly issued, full paid and
nonassessable shares of IPS Capital Stock. IPS has or will have reserved on or prior to the
Effective Time a sufficient number of shares of IPS Common Stock for issuance upon exercise
outstanding options and warrants to purchase IPS Common Stock resulting from the conversion of
options and warrants to purchase CES and I.E. Miller capital stock pursuant to the Mergers. Except
as set forth in Section 7.3 of the IPS Disclosure Schedule, as of the date hereof, there
are no outstanding subscriptions, options, calls, contracts, commitments, understandings,
restrictions, arrangements, rights or warrants, including any right of conversion or exchange under
any outstanding security, instrument or other agreement obligating IPS or any Subsidiary of IPS to
issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of the Capital
Stock of IPS or any Subsidiary of IPS or obligating IPS or any Subsidiary of IPS to grant, extend
or enter into any such agreement or commitment. Other than as set forth in Section 7.3 of
the IPS Disclosure Schedule, there are no outstanding contractual obligations, commitments,
understandings or arrangements of IPS or any Subsidiary of IPS to purchase, redeem or otherwise
acquire or make any payment in respect of or register under federal or state securities laws any
shares of Capital Stock of IPS or any Subsidiary of IPS.

     Section 7.4 Authority, Authorization and Enforceability. IPS has all requisite
corporate power and authority to execute and deliver this Agreement and each instrument required
hereby to be executed and delivered by it at the Closing, to perform its obligations hereunder and
thereunder and to consummate the transactions contemplated hereby and thereby. The execution and
delivery by IPS of this Agreement and each instrument required hereby to be executed and delivered
by it at the Closing and the performance of its obligations hereunder and thereunder have been duly
and validly authorized by the board of directors of IPS and the Independent Committee of IPS, and
no other corporate proceedings of IPS, other than the approval of the stockholders of IPS
contemplated by Section 9.1(e) hereof, are necessary to authorize the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby. This
Agreement and each instrument required hereby have been duly executed and delivered by IPS and
(assuming due authorization, execution and delivery hereof and thereof by the other parties hereto
and thereto) constitute the valid and legally binding obligations of IPS, enforceable against IPS
in accordance with their terms, except that (A) such enforceability may be subject to bankruptcy,
insolvency, reorganization, moratorium or other laws, decisions or equitable principles now or
hereafter in effect relating to or affecting the enforcement of creditors’ rights or debtors’
obligations generally, and to general equity principles, and (B) the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought.

     Section 7.5 Financial Statements. The historical financial statements of IPS
(including the related notes) set forth in Exhibit B hereto (including, the Latest IPS
Balance Sheet, and collectively, the “IPS Financial Statements”) have been prepared in
accordance with GAAP applied on a consistent basis and fairly present in all material respects the
consolidated financial position of IPS and its Subsidiaries as of the respective dates thereof and
the consolidated results of operations and changes in financial position of IPS and its
subsidiaries for the periods indicated, except that the unaudited interim financial statements do
not contain footnotes and are subject to normal and recurring year-end adjustments which are not
expected to be material in amount.

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     Section 7.6 No Undisclosed Liabilities. Neither IPS nor any of its Subsidiaries has
any liabilities of any nature that are material, individually or in the aggregate, in relation to
the business of IPS and its Subsidiaries, taken as a whole (whether accrued, absolute, contingent
or otherwise) other than (a) liabilities fully provided for in the Latest IPS Balance Sheet
(including the footnotes thereto) (b) liabilities that are specifically set forth in Section
7.6 of the IPS Disclosure Schedule, and (c) other undisclosed liabilities incurred by IPS or
its Subsidiaries since June 30, 2005 in the ordinary course of business consistent with past
practices.

     Section 7.7 No Violation. Except as set forth in Section 7.7 of the IPS
Disclosure Schedule, neither the execution and delivery by IPS of this Agreement or any instrument
required hereby to be executed and delivered by it at the Closing nor the performance by IPS of its
obligations hereunder or thereunder will (i) violate or breach the terms of or cause a default
under, or result in the termination of, or accelerate the performance required by, or result in a
right of termination, cancellation or acceleration of any obligation under, or result in the
creation of any Lien upon any of the properties or assets of IPS or any of its Subsidiaries under
(A) any Law, regulation or order of any Governmental Authority applicable to IPS or any of its
Subsidiaries, (B) IPS’s or any of its Subsidiary’s organizational documents, including its
certificate or articles of incorporation and bylaws or other organizational documents, each as
amended or restated, or (C) any IPS Material Contract, or (ii) with the passage of time, the giving
of notice or the taking of any action by a third party, have any of the effects set forth in clause
(i) of this Section 7.7.

     Section 7.8 Compliance with Laws; Permits.

     (a) Except as set forth in Section 7.8(a) of the IPS Disclosure Schedule, IPS
and its Subsidiaries in compliance in all material respects with all applicable Laws.
Except as set forth in Section 7.8(a) of the IPS Disclosure Schedule, neither IPS
nor any of its Subsidiaries has received notice of any violation of any Law, or any
potential liability under any Law, relating to the operation of its respective business or
to any of its assets, operations, processes, results or products.

     (b) Section 7.8(b) of the IPS Disclosure Schedule sets forth a list of each
government or regulatory license, authorization, permit, franchise, consent and approval
(the “Permits”) issued and held by or on behalf of IPS or its Subsidiaries or
required to be so issued and held to carry on their respective businesses as currently
conducted and which is material to the business. Except as set forth in Section
7.8(b) of the IPS Disclosure Schedule, IPS or the relevant Subsidiary of IPS, as
applicable, is the authorized legal holder of such Permits, and each such Permit is valid
and in full force and effect. Neither IPS nor the relevant Subsidiary of IPS, as
applicable, is in default under, and to the Knowledge of IPS, no condition exists that with
notice or lapse of time or both could constitute a default or could give rise to a right of
termination, cancellation or acceleration under, any such Permit.

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     Section 7.9 Litigation.

     (a) Except as set forth in Section 7.9(a) of the IPS Disclosure Schedule, there
are no actions, suits or proceedings pending or, to the Knowledge of IPS, threatened at law
or in equity, or before or by any Governmental Authority or before any arbitrator of any
kind, against IPS or any of its Subsidiaries. Except as set forth in Section 7.9(a)
of the IPS Disclosure Schedule, there are no outstanding judgments, orders, injunctions,
decrees, stipulations or awards (whether rendered by a court, administrative agency,
arbitral body or Governmental Authority) against IPS or any of its Subsidiaries.

     (b) All claims, whether in contract or tort, for defective or allegedly defective
products or workmanship pending or, to the Knowledge of IPS, threatened, against IPS or any
of its Subsidiaries are listed or described in Section 7.9(b) of the IPS Disclosure
Schedule.

     Section 7.10 Accuracy of Confidential Solicitation Statement. None of the information
to be included in the Confidential Solicitation Statement concerning the business, operations,
financial results or condition, assets or liabilities of IPS and its Subsidiaries will, as of the
date of such Confidential Solicitation Statement (which date shall be at or about the date such
Confidential Solicitation Statement is first mailed to the stockholders of the Combining Company),
(i) be false or misleading with respect to any material fact, (ii) contain any untrue statement of
a material fact or (iii) omit to state a material fact necessary in order to make the statements to
be contained therein not misleading.

     Section 7.11 Title to Assets. Except for inventory disposed of in the ordinary course
of business consistent with past practices, assets such as accounts receivable which have been
converted into other assets in the ordinary course of business, assets such as prepaid insurance
that have dissipated over time in the ordinary course of business, and disposal of other assets
with an aggregate fair market value not exceeding $1,000,000, IPS or one of its Subsidiaries owns,
or in the case of leased property has valid leasehold interests in, the property and assets
(whether real or personal, tangible or intangible) reflected in the Latest IPS Balance Sheet or
acquired after June 30, 2005, free and clear of all Liens, except for Permitted Liens and Liens set
forth in Section 7.11(a) of the IPS Disclosure Schedule.

     Section 7.12 Tax Matters.

     (a) Except as set forth in Section 7.12(a) of the IPS Disclosure Schedule:

     (i) all Tax Returns for all periods which end on or prior to the Closing Date
that are, were or shall be required to be filed on or prior to the Closing Date by
or on behalf of IPS or any of its Subsidiaries have been or shall be filed on a
timely basis in accordance with the applicable Laws of each Governmental Authority,
and at the time of their filing all such Tax Returns were complete and accurate in
all material respects;

     (ii) IPS and/or its Subsidiaries, as applicable, have paid all of its Taxes
shown as due and owing on such Tax Returns or adequate provisions on their books in
accordance with GAAP have been made with respect thereto;

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     (iii) no claim has ever been made by a Governmental Authority in a jurisdiction
where IPS or any of its Subsidiaries does not file Tax Returns that IPS or any of
its Subsidiaries is or may be subject to taxation by that jurisdiction;

     (iv) all Taxes that IPS or its Subsidiaries was or is required by Law to
withhold, collect or deposit prior to the Closing Date have been duly withheld or
collected and, to the extent required, have been paid to the appropriate
Governmental Authorities;

     (v) there are no Liens with respect to Taxes on the assets of IPS or any of its
Subsidiaries, other than Permitted Liens;

     (vi) no adjustment relating to such Tax Returns has been proposed formally or,
to the Knowledge of IPS, proposed informally or threatened, by any Taxing authority;

     (vii) there are no pending or, to the Knowledge of IPS, threatened actions or
proceedings for the assessment or collection of Taxes against IPS or any of its
Subsidiaries;

     (viii) Neither IPS nor any of its Subsidiaries is a party to any agreement or
arrangement that would result, separately or in the aggregate, in the actual or
deemed payment by IPS or any of its Subsidiaries of any “excess parachute payment”
within the meaning of Section 280G of the Code;

     (ix) Neither IPS or any of its Subsidiaries has been included in any
consolidated, combined or unitary Tax Return and has no liability for any Taxes of
any Person (other than IPS or such Subsidiaries) under Treas. Reg. § 1.1502-6 (or
similar provisions of state, local or foreign law) as a transferee or successor, by
contract or otherwise;

     (x) Neither IPS nor any of its Subsidiaries is a party to or bound by any Tax
allocation or Tax-Sharing Agreement and has no contractual obligation to indemnify
any other person with respect to Taxes;

     (xi) no assets of IPS or any Subsidiary of IPS are “tax-exempt use property”
within the meaning of Section 168(h)(1) of the Code;

     (xii) the unpaid Taxes of IPS and its Subsidiaries as of June 30, 2005 did not
exceed in any material respect the reserve for Tax liabilities (rather than the
reserve for deferred Taxes to reflect timing differences between book and Tax income
and any other amounts reflected in deferred Taxes) on the Latest IPS Balance Sheet;

     (xiii) neither IPS nor any of its Subsidiaries has agreed to make, and is not
required to make, adjustments under Section 481(a) of the Code by reason of a change
in accounting method, and the consummation of the transactions

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contemplated by this Agreement will not result in IPS or any of its
Subsidiaries being required to make any such adjustments following the Closing Date;

     (xiv) IPS and each of its Subsidiaries uses the accrual method of accounting
for Tax accounting purposes;

     (xv) IPS is not a United States real property holding corporation within the
meaning of Code Section 897(c)(2) during the applicable period specified in Code
Section 897(c)(1)(A)(ii); and

     (xvi) neither IPS nor any of its Subsidiaries has participated in any listed
transaction required to be disclosed under Treas.
Reg. § 1.6011-4.

     (b) Except as set forth in Section 7.12(b) of the IPS Disclosure Schedule: (i)
there are no outstanding waivers or agreements extending the statute of limitations for any
period with respect to any Tax to which IPS or any of its Subsidiaries may be subject nor
have any such waivers or agreements been requested; (ii) to the Knowledge of IPS, there are
no requests for information currently outstanding that could affect the Taxes of IPS or any
of its Subsidiaries; (iii) to the Knowledge of IPS, there are no proposed reassessments of
any property owned by IPS or any of its Subsidiaries or any other proposals that are
reasonably likely to increase the amount of any Tax to which IPS or any of its Subsidiaries
would be subject; and (iv) no power of attorney that is currently in force has been granted
with respect to any matter relating to Taxes that could affect IPS or any of its
Subsidiaries.

     Section 7.13 Intellectual Property.

     (a) Section 7.13(a) of the IPS Disclosure Schedule sets forth a list of (i) all
issued patents and all registered copyrights, trademarks, service marks and domain names
included in the Intellectual Property Rights owned by IPS or any of its Subsidiaries and
(ii) all pending patent applications and all applications for the registration of
copyrights, trademarks, and service marks included in the Intellectual Property Rights owned
by IPS or any of its Subsidiaries.

     (b) Except as set forth in Section 7.13(b) of the IPS Disclosure Schedule:

     (i) IPS and/or its Subsidiaries own and possesses all right, title, and
interest in, free and clear of all Liens (other than license agreements executed in
the ordinary course of business and Permitted Liens), or has a right to use, all of
the material Intellectual Property Rights necessary for the conduct of the their
respective businesses.

     (ii) To the Knowledge of IPS, the conduct of the business by IPS and its
Subsidiaries as currently conducted does not infringe upon any Intellectual Property
Rights of any third party. There is no claim, suit, action or proceeding that is
either pending or, to the Knowledge of IPS, threatened, that, in either case,
involves a claim of infringement by IPS or any of its Subsidiaries of any
Intellectual Property Rights of any third party, or challenging IPS’s or any of its

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Subsidiary’s, as applicable, ownership, right to use, or the validity of any
Intellectual Property Right listed or required to be listed in Section
7.13(a) of the IPS Disclosure Schedule.

     (iii) No Intellectual Property Right listed or required to be listed in
Section 7.13(a) of the IPS Disclosure Schedule is subject to any outstanding
order, judgment, decree, stipulation or agreement restricting the use thereof by IPS
or its Subsidiaries, as applicable, or restricting the licensing thereof by IPS or
its Subsidiaries, as applicable to any Person, other than as set forth in
Section 7.13(a) of the IPS Disclosure Schedule and other than with respect
to standard and customary restrictions associated with commercially available third
party software to which IPS or its Subsidiaries has a valid right to use in
connection with their businesses;

     (iv) Other than as set forth in Section 7.13(a) of the IPS Disclosure
Schedule, neither IPS or its Subsidiaries has not entered into any agreement to
indemnify any other Person against any charge of infringement of any Intellectual
Property Right; and

     (v) IPS or its Subsidiaries, as applicable, has duly maintained all
registrations for the Intellectual Property Rights listed on Section 7.13(a)
of the IPS Disclosure Schedule.

     Section 7.14 Environmental Matters.

     (a) Except as set forth in Section 7.14(a) of the IPS Disclosure Schedule:

     (i) Neither IPS nor any of its Subsidiaries, and to Knowledge of IPS no other
party has, generated, recycled, used, treated or stored on, transported to or from,
or Released on, the IPS Real Property any Constituents of Concern, except in
compliance in all material respects with Environmental Laws;

     (ii) Neither IPS nor any of its Subsidiaries has disposed of Constituents of
Concern generated at any IPS Real Property to any off-site facility except in
compliance in all material respects with Environmental Laws;

     (iii) IPS and its Subsidiaries has been and is in compliance in all material
respects with (a) Environmental Laws and (b) the requirements of Environmental
Permits with respect to the IPS Real Property;

     (iv) There are no pending or, to the Knowledge of IPS, threatened Environmental
Claims against IPS or any of its Subsidiaries or any IPS Real Property, and IPS has
no Knowledge of any facts, circumstances, conditions or occurrences regarding IPS’s
or any of its Subsidiaries’ operations or with respect to any IPS Real Property that
could reasonably be expected to form the basis of a material Environmental Claim
against IPS or its Subsidiaries;

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     (v) To the Knowledge of IPS, no Environmental Condition exists at any IPS Real
Property;

     (vi) None of IPS, its Subsidiaries or any IPS Real Property is listed or, to
the Knowledge of IPS, proposed for listing on the National Priorities List under
CERCLA or on any similar federal, state or foreign list of sites requiring
investigation or clean-up, and neither IPS nor any of its Subsidiaries has received
any requests for information pursuant to 104(e) of CERCLA or any state counterpart
or equivalent; and

     (vii) IPS and its Subsidiaries have obtained all required Environmental Permits
material to its business. Except as set forth in Section 7.14(a)(viii) of
the IPS Disclosure Schedule, no such Environmental Permits are nontransferable or
require consent, notification or other action by a Governmental Authority to remain
in full force and effect following the consummation of the transactions contemplated
hereby.

     (b) To the Knowledge of IPS, IPS has delivered or made available to each of the other
Combining Companies true and complete copies of all material environmental investigations,
studies, audits, tests, reviews or other analyses commenced or conducted in the last three
years by or on behalf of IPS or any of its Subsidiaries in their possession that relate to
their respective businesses.

     (c) Notwithstanding any other provision of this Agreement to the contrary, these
representations and warranties in this Section 7.14 shall be the sole and exclusive
representations and warranties concerning Environmental Claims, Environmental Conditions,
Environmental Laws or Environmental Permits as those terms may apply to IPS, any of its
Subsidiaries or any of the IPS Real Property.

     Section 7.15 Benefit Plans and Material Documents.

     (a) Section 7.15(a) of the IPS Disclosure Schedule sets forth a list of all
existing Benefit Plans sponsored or contributed to by IPS or any ERISA Affiliate of IPS
covering any current or former employee, officer or director of IPS or any ERISA Affiliate
of IPS. With respect to each such Benefit Plan subject to ERISA, IPS has delivered or made
available to the other Combining Companies a true and complete copy of each such Benefit
Plan (including all amendments thereto) and a true and complete copy of each material
document (including all amendments thereto) prepared in connection with each such Benefit
Plan including (i) a copy of each trust or other funding arrangement, (ii) each summary plan
description and summary of material modifications, (iii) the most recently filed IRS Form
5500 for each such Benefit Plan, if any, and (iv) the most recent determination letter
referred to in Section 7.15(d). With respect to each such Benefit Plan not subject
to ERISA, IPS has delivered or made available to other Combining Companies a true and
complete copy of each such Benefit Plan including each related material document. Neither
IPS nor any of its Subsidiaries has any express or implied commitment to create, incur
liability with respect to or cause to exist any Benefit Plan or to modify any Benefit Plan,
other than as required by Law.

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     (b) Except as set forth in Section 7.15(b) of the IPS Disclosure Schedule or
for policies generally available to the employees of IPS and its Subsidiaries, none of such
Benefit Plans provides for the payment of separation, severance, termination or similar-type
benefits to any person or provides for or, except to the extent required by Law, promises
retiree medical or retiree life insurance benefits to any current or former employee,
officer or director of IPS or any of its Subsidiaries.

     (c) Except as set forth in Section 7.15(c) of the IPS Disclosure Schedule, each
such Benefit Plan is in compliance with, and has been operated in accordance with, in all
material respects, its terms and IPS and the ERISA Affiliates of IPS have satisfied in all
material respects all of their statutory, regulatory and contractual obligations with
respect to each such Benefit Plan. No material legal action, suit or claim is pending or,
to the Knowledge of IPS, threatened with respect to any such Benefit Plan (other than claims
for benefits in the ordinary course) and, to the Knowledge of IPS, no fact or event exists
that could, individually or in the aggregate, reasonably be expected to give rise to any
such action, suit or claim.

     (d) Except as set forth in Section 7.15(d) of the IPS Disclosure Schedule, each
such Benefit Plan or trust which is intended to be qualified or exempt from taxation under
Section 401(a), 401(k) or 501(a) of the Code has received a favorable determination letter
from the IRS that it is so qualified or exempt, and, to the Knowledge of IPS, nothing has
occurred since the date of such determination letter that would adversely affect the
qualified or exempt status of any such Benefit Plan or related trust.

     (e) There has been no non-exempt prohibited transaction (within the meaning of Section
406 of ERISA or Section 4975 of the Code) with respect to any such Benefit Plan. Neither
IPS nor any of its Subsidiaries has incurred any liability for any excise tax arising under
the Code with respect to such Benefit Plan.

     (f) All contributions, premiums or payments required to be made with respect to any
such Benefit Plan have been made on or before their due dates. For completed plan years of
such Benefit Plans, all such contributions have been fully deducted for income tax purposes
and no such deduction has been challenged or disallowed by any Governmental Authority.

     (g) There has been no amendment to, written interpretation of, announcement (whether or
not written) by IPS or any ERISA Affiliate of IPS relating to, or change in employee
participation or coverage under, any such Benefit Plan that, to the Knowledge of IPS, would
increase materially the expense of maintaining such Benefit Plan above the level of the
expense incurred in respect thereto for the most recent fiscal year ended prior to the date
hereof, other than in the ordinary course of business.

     (h) Except as set forth in Section 7.15(h), no employee or former employee of
IPS or any ERISA Affiliate of IPS will become entitled to any bonus, retirement, severance,
job security or similar benefit or any enhanced benefit (including acceleration of vesting
or exercise of an incentive award) as a result of the transactions contemplated by this
Agreement.

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     (i) All reports and disclosures relating to such Benefit Plans required to be filed
with or furnished to Governmental Authorities, participants or beneficiaries have been filed
or furnished in accordance with applicable law in a timely manner.

     (j) Neither IPS nor any ERISA Affiliate of IPS is maintaining, contributing to or
sponsoring a Benefit Plan subject to Title IV of ERISA, Section 302 of ERISA or Section 412
of the Code nor, to the Knowledge of IPS, has done so within six years prior to the Closing
Date.

     (k) Neither IPS nor any ERISA Affiliate of IPS is maintaining or contributing to a
Benefit Plan that is a “multiemployer plan” within the meaning of Section 3(37) of ERISA
nor, to the Knowledge of IPS, has done so within six years prior to the Closing Date.

     (l) As to any such Benefit Plan intended to be qualified under Section 401 of the Code,
there has been no termination or partial termination of such Benefit Plan within the meaning
of Section 411(d)(3) of the Code.

     (m) No act, omission or transaction has occurred which would result in imposition on
IPS or any ERISA Affiliate of IPS any of (A) breach of fiduciary duty liability damages
under Section 409 of ERISA, (B) a civil penalty assessed pursuant to subsections (c), (i) or
(l) of Section 702 of ERISA, or (C) a tax imposed pursuant to Chapter 43 of Subtitle D of
the Code, in each case, with respect to such Benefit Plans.

     (n) There is no matter pending (other than routine annual or qualification
determination filings) with respect to any of such Benefit Plans before the IRS, the
Department of Labor, or any other Governmental Authority.

     (o) With respect to any “employee pension benefit plan,” if any, as such term is
defined in Section 3(2) of ERISA, which is not listed in Section 7.15(a) but which
is sponsored, maintained, or contributed to, or, to the Knowledge of IPS, has been
sponsored, maintained, or contributed to within six years prior to the Closing Date, by IPS
or any ERISA Affiliate of IPS, (A) no withdrawal liability, within the meaning of Section
4201 of ERISA, has been incurred, which withdrawal liability has not been satisfied, (B) no
liability to the Pension Benefit Guaranty Corporation has been incurred by any ERISA
Affiliate, which liability has not been satisfied, (C) no accumulated funding deficiency,
whether or not waived, within the meaning of Section 302 of ERISA or Section 412 of the Code
has been incurred, and (D) all contributions (including installments) to such plan required
by Section 302 of ERISA and Section 412 of the Code have been timely made.

     (p) To the Knowledge of IPS, each such Benefit Plan that is an “employee welfare
benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally amended
or terminated in its entirety without liability except as to benefits accrued thereunder
prior to such amendment or termination.

     (q) No Benefit Plan of Compete or any ERISA Affiliate of IPS that is a Foreign Plan is
a defined benefit pension plan or a similar type of accrual-based plan.

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With respect to each such Benefit Plan that is a Foreign Plan, there are no funded
benefit obligations for which contributions have not been made or properly accrued and there
are no unfunded benefit obligations which have not been accounted for by reserves, or
otherwise properly reflected in accordance with GAAP, on the financial statements of IPS or
its Subsidiaries. Except as set forth in Section 7.15(q) of the IPS Disclosure
Schedule, the contribution and benefit liabilities of IPS or any of its Subsidiaries
respecting each Benefit Plan that is a Foreign Plan are fully funded based upon applicable
accounting, valuation and/or actuarial methodology contained in the most recent accounting,
valuation and/or actuarial report respecting such Foreign Plan.

     Section 7.16 Material Contracts.

     (a) Except as specifically set forth in Section 7.16(a) of the IPS Disclosure
Schedule, neither IPS nor any of its Subsidiaries is a party to or bound by any Contract
that is of a type described below (collectively, the “IPS Material Contracts”):

     (i) any lease (whether of real or personal property, but excluding personal
property leases with annual rental obligations of $1,000,000 or less or that may be
terminated without penalty within 90 days or less);

     (ii) except pursuant to purchase orders issued in the ordinary course of
business, any agreement for the purchase of materials, supplies, goods, services,
equipment or other assets that provided for aggregate payments by IPS or any of its
Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May 31,
2005;

     (iii) any sales, distribution or other similar agreement providing for the sale
by IPS or any of its Subsidiaries of materials, supplies, goods, services, equipment
or other assets that provided for aggregate payments to IPS or any of its
Subsidiaries of $1,000,000 or more in 2004 or the five-month period ended May 31,
2005;

     (iv) any partnership, joint venture or other similar agreement or arrangement;

     (v) any Contract pursuant to which any third party has rights to own or use any
material asset of IPS or any of its Subsidiaries, including any Intellectual
Property Right the exclusive use of which is material to IPS and its Subsidiaries
taken as a whole;

     (vi) any agreement relating to the acquisition or disposition of any business
(whether by merger, sale of stock, sale of assets or otherwise) or granting to any
Person a right of first refusal, first offer or other right to purchase any of the
material assets of IPS or any of its Subsidiaries;

     (vii) any agreement relating to Indebtedness for borrowed money, guaranties of
Indebtedness for borrowed money and letters of credit or similar instruments (in any
case, whether incurred, assumed, guaranteed or secured by

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any asset of IPS or any of its Subsidiaries) other than accruals recorded in
the ordinary course of business;

     (viii) any material license, franchise or similar agreement material to the
business of IPS and its Subsidiaries, taken as a whole;

     (ix) any agency, dealer, sales representative, marketing or other similar
agreement material to the business of IPS and its Subsidiaries, taken as a whole;

     (x) any agreement with any director or executive officer of IPS or with any
“associate” or any member of the “immediate family” (as such terms are respectively
defined in Rules 12b-2 and 16a-1 of the Exchange Act) of any such director or
executive officer;

     (xi) any management service, consulting or any other similar type of agreement
material to the business of IPS and its Subsidiaries, taken as a whole;

     (xii) any employment, consulting, deferred compensation, severance, bonus,
retirement or other similar agreement or plan in effect as of the date hereof
(including in respect of any advances or loans to any employees but excluding loans
under IPS’s 401(k) plans) and entered into or adopted by IPS or any of its
Subsidiaries;

     (xiii) any Contract involving foreign currency transactions entered into for
the purpose of hedging any currency or pricing risk;

     (xiv) all confidentiality agreements not made in the ordinary course of
business other than in connection with acquisitions considered by IPS or any of its
Subsidiaries and all non-competition agreements that restricts the nature or
duration of, or imposes any geographic limitations on, any business that could be
conducted by IPS or any of its Subsidiaries; or

     (xv) any other agreement, commitment, arrangement or plan not made in the
ordinary course of business of IPS or its Subsidiaries that is material to IPS and
its Subsidiaries or their respective businesses, taken as a whole.

     (b) Each IPS Material Contract disclosed in or required to be disclosed in Section
7.16(a) of the IPS Disclosure Schedule is a valid and binding agreement of IPS or its
Subsidiaries, as applicable and, to the Knowledge of IPS, each other party thereto,
enforceable in accordance with its respective terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting enforcement of creditors’ rights generally and by general principles of equity
(whether applied in a proceeding at law or in equity). Neither IPS nor its Subsidiaries, as
applicable, nor, to the Knowledge of IPS, any other party to any such IPS Material Contract
is in default or breach (with or without due notice or lapse of time or both) in any
material respect under the terms of any such IPS Material Contract. IPS has delivered or
made available to the other Combining Companies true and complete originals or

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copies of all IPS Material Contracts disclosed in or required to be disclosed in
Section 7.16(a) of the IPS Disclosure Schedule.

     Section 7.17 Real Property.

     (a) Section 7.17(a) of the IPS Disclosure Schedule contains a complete and
correct list of all real property owned by IPS or any of its Subsidiaries (the “IPS
Owned Real Property”) setting forth the address and owner of each parcel of IPS Owned
Real Property. IPS or its Subsidiary has good, valid and indefeasible fee simple title to
IPS Owned Real Property indicated on Section 7.17(a) of the IPS Disclosure Schedule
as being owned by it, free and clear of all Liens other than Permitted Liens and Liens set
forth on Section 7.17(a) of the IPS Disclosure Schedule. There are no outstanding
options or rights of first refusal to purchase the IPS Owned Real Property, or any portion
thereof or interest therein.

     (b) Leases. Section 7.17(b) of the IPS Disclosure Schedule contains a
complete and correct list of all real property leased by IPS or any of its Subsidiaries (the
“IPS Leased Real Property,” and together with the IPS Owned Real Property, the
“IPS Real Property”) setting forth the address, landlord and tenant for each lease
comprising the IPS Leased Real Property. Each material lease comprising the IPS Leased Real
Property is legal, valid, binding, enforceable, and in full force and effect against IPS or
its Subsidiaries, as applicable, and, to the Knowledge of IPS, against each other party
thereto. Except as set forth in Section 7.17(b) of the IPS Disclosure Schedule, to
the Knowledge of IPS, each lease comprising the IPS Leased Real Property grants IPS or its
Subsidiaries, as applicable, the exclusive right to use and occupy the demised premises
thereunder. IPS or its Subsidiaries, as applicable, have a valid leasehold interest under
each such material lease.

     (c) No Proceedings. There are no eminent domain or other similar proceedings
pending or, to the Knowledge of IPS, threatened affecting any portion of the IPS Owned Real
Property or, to the Knowledge of IPS, the IPS Leased Real Property.

     Section 7.18 Absence of Certain Changes. Except as set forth in Section 7.18
of the IPS Disclosure Schedule or in connection with the transactions contemplated by this
Agreement, since June 30, 2005, IPS and its Subsidiaries have conducted their respective businesses
in the ordinary course of business consistent with past practices and there has not been any event,
occurrence, development or circumstances which has had or which is reasonably expected to have (a)
a Material Adverse Effect on IPS or (b) would have constituted a violation of any covenants of IPS
hereunder included in Section 8.2 had such covenant applied to it since June 30, 2005.
Since June 30, 2005, there has not occurred any damage, destruction or casualty loss resulting in
Damages exceeding $1,000,000 in the aggregate (whether or not covered by insurance) with respect to
any asset owned or operated by IPS or any of its Subsidiaries.

     Section 7.19 Insurance Coverage. Section 7.19 of the IPS Disclosure Schedule,
contains a list of all of the insurance policies and fidelity bonds covering the assets, business,
operations, employees, officers and directors and its Subsidiaries. There is no material claim by
IPS or any of its Subsidiaries pending under any of such policies or bonds as to which IPS or any

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of its Subsidiaries has received any refusal of coverage or any notice that a defense will be
afforded with reservation of rights. All premiums due and payable under all such policies and
bonds have been paid, and IPS and its Subsidiaries have complied in all material respects with the
terms and conditions of all such policies and bonds. Such policies of insurance and bonds (or
other policies and bonds providing substantially similar insurance coverage) are in full force and
effect. To the Knowledge of IPS, there is no threat of termination of, or material premium
increase with respect to, any of such policies or bonds.

     Section 7.20 Affiliate Transactions.

     (a) Except as set forth in Section 7.20(a) of the IPS Disclosure Schedule,
there are no outstanding payables, receivables, loans, advances and other similar accounts
between IPS or any of its Subsidiaries, on the one hand, and any of its Affiliates, on the
other hand, relating to business of IPS or its Subsidiaries.

     (b) Except as set forth in Section 7.20(b) of the IPS Disclosure Schedule, to
the Knowledge of IPS, no director or executive officer of IPS possesses, directly or
indirectly, any ownership interest in, or is a director, officer or employee of, any Person
which is a supplier, customer, lessor, lessee, licensor, or competitor of IPS or its
Subsidiaries. Ownership of 1% or less of any class of securities of a Person whose
securities are registered under the Exchange Act will not be deemed to be an ownership
interest for purposes of this Section 7.20(b).

     Section 7.21 Customer, Supplier and Employee Relations. Section 7.21 of the
IPS Disclosure Schedule, includes a complete and correct list of (a) all customers of the business
of IPS and its Subsidiaries who made aggregate purchases in excess of 5% of the total consolidated
revenues of IPS and its Subsidiaries during calendar year 2004 and/or for the five months ended May
31, 2005 and (b) all suppliers with a relationship with IPS and/or its Subsidiaries, the
termination of which would have an adverse effect that is material to the business of IPS and its
Subsidiaries taken as a whole. Except as set forth in Section 7.21 of the IPS Disclosure
Schedule, none of such customers or suppliers, or officers or senior managers of IPS and/or its
Subsidiaries has canceled, terminated or otherwise materially altered or notified IPS or its
Subsidiaries of any intention to cancel, terminate or materially alter its relationship with IPS or
its Subsidiaries since December 31, 2004.

     Section 7.22 Other Employment Matters.

     (a) Except as set forth in Section 7.22(a) of the IPS Disclosure Schedule,
neither IPS nor any of its Subsidiaries is a party to any labor or collective bargaining
agreement.

     (b) No labor organization or group of IPS, its Subsidiaries or any of their respective
employees has made a pending demand for recognition, there are no representation proceedings
or petitions seeking a representation proceeding presently pending or, to the Knowledge of
IPS, threatened to be brought or filed with the National Labor Relations Board or other
labor relations tribunal, and there is no organizing activity

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involving IPS or any of its Subsidiaries or, to the Knowledge of IPS, threatened by any
labor organization or group of employees.

     (c) There are no (i) strikes, work stoppages, slow-downs, lockouts or arbitrations or
(ii) grievances or other labor disputes pending or, to the Knowledge of IPS, threatened
against or involving IPS or any of its Subsidiaries.

     (d) There are no complaints, charges or claims against IPS or any of its Subsidiaries
pending or, to the Knowledge of IPS, threatened to be brought or filed with any Governmental
Authority based on, arising out of, in connection with, or otherwise relating to the
employment by IPS or any of its Subsidiaries, of any Person, including any claim for
workers’ compensation.

     (e) IPS and its Subsidiaries are in compliance in all material respects with all Laws
and Orders in respect of employment and employment practices and the terms and conditions of
employment and wages and hours, and has not, and is not, engaged in any unfair labor
practice.

     (f) Section 7.22(f) of the IPS Disclosure Schedule contains a complete and
accurate list of the following information for each executive officer and each other
employee (with annual base compensation in excess of $150,000 or officer of IPS or its
Subsidiaries, including each such executive officer or employee on leave of absence or
layoff status: employer; name; job title; current compensation paid or payable and any
change in compensation since June 30, 2005; and all bonuses and any other amounts to be paid
by IPS or its Subsidiaries at or in connection with the Closing.

     (g) Except as set forth in Section 7.22(g) of the IPS Disclosure Schedule, to
the Knowledge of IPS, no employee, officer or director of IPS or its Subsidiaries is a party
to, or is otherwise bound by, any confidentiality, non-competition, proprietary rights
agreement or similar agreement that would affect (i) the performance of his or her duties as
an employee, officer or director of IPS or its Subsidiaries or (ii) the ability of the IPS
Surviving Company to conduct the business of IPS and its Subsidiaries after the Closing
Date.

     Section 7.23 Product and Service Warranties; Liability Defects; Liability. Except as
set forth in Section 7.23 of the IPS Disclosure Schedule, each product manufactured, sold,
leased, delivered or installed or services performed by IPS or its Subsidiaries prior to the
Closing has complied with and conformed in all material respects to (a) all applicable federal,
state, local or foreign laws and regulations and (b) contractual commitments and all applicable
warranties of IPS and its Subsidiaries except for any failures to so comply or conform for which an
adequate aggregate reserve is set forth on the Latest IPS Balance Sheet. Section 7.23 of
the IPS Disclosure Schedule sets forth the expense related to warranty claims for IPS and its
Subsidiaries for 2004 and the five-month period ended May 31, 2005.

     Section 7.24 Finders’ Fees. Except for Houlihan Lokey Howard & Zukin and Bernstein
Conklin & Balcombe, there is no investment banker, broker, finder or other intermediary which has
been retained by or is authorized to act on behalf of IPS or its

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Subsidiaries or their Affiliates who might be entitled to any fee or other commission payable
by IPS or its Subsidiaries in connection with the transactions contemplated by this Agreement or
any of the Ancillary Agreements.

     Section 7.25 Fairness Opinion. IPS has received the written opinion of Houlihan Lokey
Howard & Zukin that the percentage of shares of IPS Common Stock to be held by the stockholders of
IPS as a result of the consummation of the Mergers contemplated by this Agreement is fair to the
stockholders (other than SCF) IPS from a financial point of view.

     Section 7.26 Merger Sub Matters. Each of Merger Sub-CES and Merger Sub-IEM is a newly
formed Delaware limited liability company organized specifically for the purpose of consummating
the Complete Merger and the I.E. Miller Merger and has not otherwise conducted any business or
operations, and immediately prior to the Effective Time, has no liabilities, except in connection
with its formation and this Agreement, and is not a party to any Contract, other than its charter
documents, this Agreement, and the Certificate of Merger to filed in connection with the Complete
Merger and I.E. Miller Merger.

     Section 7.27 Disclaimer of Other Representations and Warranties. Except as expressly
set forth in this Article VII, IPS makes no representation or warranty, express or implied,
at law or in equity, in respect of IPS or any of its Subsidiaries, or any of their respective
assets, liabilities or operations, including, without limitation, with respect to merchantability
or fitness for any particular purpose, and any such other representations or warranties are hereby
expressly disclaimed.

ARTICLE VIII

COVENANTS

     Section 8.1 Ordinary Course of Business. Except as otherwise consented to in writing
by all of the Combining Companies (other than the Combining Company requesting such consent) or as
otherwise contemplated herein, between the date of this Agreement and the earlier to occur of the
Effective Time or the termination of this Agreement, each of Complete, I.E. Miller and IPS will,
and will cause its Subsidiaries to, carry on its business diligently and in the ordinary and usual
course and consistent with past practice, and, without limiting the generality of the foregoing,
each of Complete, I.E. Miller and IPS will, and will cause its Subsidiaries to, use commercially
reasonable efforts to preserve its business organization intact, keep available the services of its
present executive officers and employees and preserve its present relationships with persons having
business dealings with it. At the request of any Combining Company, the Combining Companies will
confer with each other concerning operational matters of a material nature and report periodically
to each other concerning its business, operations and finances.

     Section 8.2 Restricted Activities and Transactions. Except as otherwise contemplated
herein or as set forth in the respective disclosure schedule of the parties hereto or as otherwise
consented to in writing by all of the Combining Companies (other than the Combining Company
requesting such consent), between the date of this Agreement and the earlier to occur of the
Effective Time or the termination of this Agreement, neither IPS, Complete nor I.E. Miller will,
nor will each such corporation allow any of its Subsidiaries to:

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     (a) Issue or commit to issue any of its capital stock or other ownership or equity
interests other than in connection with the exercise of options, warrants or convertible
securities existing on the date hereof and listed in their respective Disclosure Schedule;

     (b) Grant or commit to grant any options, warrants, convertible securities or other
rights to subscribe for, purchase or otherwise acquire any shares of its capital stock or
other ownership or equity interests other than pursuant to existing stock option plans to
new employees (other than executive officers) consistent with past practice;

     (c) Declare, set aside, or pay any dividend or distribution or make any other payment
with respect to its capital stock or other ownership interests;

     (d) Directly or indirectly redeem, purchase or otherwise acquire or commit to acquire
any of its Capital Stock;

     (e) Effect a split or reclassification of any of its Capital Stock or a
recapitalization or other reorganization;

     (f) Amend or otherwise alter its certificate of incorporation, by-laws, or other
governing instruments;

     (g) Enter into or make any change in any of its employee benefit plans or grant any
increase in compensation (other than increases in compensation in the ordinary course of
business for field and office personnel who are not managers or executives), or except in
the ordinary course of business consistent with past practice, provide any severance
arrangement involving any of its employees, officers or directors;

     (h) Except as set forth in Section 8.2(h) of the Complete Disclosure Schedule,
acquire control or ownership in any other corporation, association, joint venture,
partnership, business trust or other business entity, or acquire control or ownership of all
or substantially all of the assets of any of the foregoing;

     (i) Except in the ordinary course of business consistent with past practice or with
respect to budgeted capital expenditures, enter into or agree to enter into any agreement or
transaction involving the incurrence of an obligation to pay an amount in excess of an
aggregate of $1,000,000;

     (j) Create, assume or permit to exist any Lien (other than Permitted Liens) on any of
its assets, tangible or intangible, except (i) as permitted under its existing credit
facilities and any renewals, modifications or rearrangements thereof on terms and conditions
not materially less favorable to the respective borrower or (ii) in the ordinary course of
business consistent with past practice;

     (k) Except in the ordinary course of business consistent with past practice, (i)
borrow, or agree to borrow any funds or voluntarily incur, assume or become subject to,
whether directly or by way of guaranty or otherwise, any obligation or liability (absolute
or contingent) in excess of $1,000,000, except as permitted under its existing

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credit facilities and in connection with any renewal, modification or rearrangement
thereof which is on terms and conditions not materially less favorable to the respective
borrower and which does not provide for an increase in the maximum borrowing amount, (ii)
cancel or agree to cancel any debts or claims, (iii) lease, sublease, sell or transfer,
agree to sublease, sell or transfer, or grant or agree to grant any preferential rights to
lease or acquire, any of its assets, property or rights having a fair market value in excess
of $1,000,000 or (iv) make or permit any adverse amendment to the respective Combining
Company, or termination of, any Complete Material Contract, I.E. Miller Material Contract or
IPS Material Contract;

     (l) Settle any threatened or pending litigation that is not fully covered by insurance
other than for immaterial consideration or for an amount less than that reserved as of the
date hereof for such litigation on its books and records;

     (m) Make any change in accounting methods or practices (including changes in reserve or
accrual policies), except as required by GAAP or other applicable Law;

     (n) Terminate or close any facility, business or operation;

     (o) Enter into or agree to be bound by any agreement or permit an Affiliate to enter
into or agree to be bound by any agreement with any of its directors, officers, employees or
Affiliates that will continue subsequent to the Effective Time, other than as contemplated
by this Agreement or in the ordinary course of business consistent with past practice; or

     (p) Commit itself to do any of the foregoing.

     Section 8.3 Insurance. Except as otherwise consented to in writing by all of the
Combining Companies (other than the Combining Company requesting such consent), between the date of
this Agreement and the earlier to occur of the Effective Time or the termination of this Agreement,
each of IPS, Complete and I.E. Miller will use commercially reasonable efforts to maintain in full
force and effect all policies of insurance which are currently in effect (or policies with
comparable coverage and comparable amounts of coverage).

     Section 8.4 Confidentiality. Each of the parties hereto will keep strictly
confidential any and all information furnished to one of them or their representatives by another
or their representatives in connection with the transactions contemplated by this Agreement, and
the business and financial reviews and investigations referred to in Section 8.7, except
for information, if any, that (i) is or becomes generally available to the public in a manner other
than as a result of a disclosure by the party receiving the information; (ii) was available to the
receiving party on a non-confidential basis prior to its disclosure to the receiving party by the
party providing the information; or (iii) is or becomes available to the receiving party on a
non-confidential basis from a source other than the informing party unless that source is bound by
a confidentiality agreement with the informing party. If this Agreement is terminated pursuant to
Section 10.1 hereof, each of the parties hereto will promptly deliver to the others or
destroy (and certify as to such delivery or destruction) all originals and copies of documents,
work papers and other written material concerning the others and obtained from the others, their
agents,

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employees or representatives in connection with such negotiations and such business and
financial reviews and investigations.

     Section 8.5
Regulatory Matters. Each of the parties hereto agrees to make any
necessary filings on a timely basis with respect to applicable laws and will use its reasonable
best efforts to obtain any regulatory approvals which may be required to consummate the
transactions contemplated herein. If a stockholder of IPS, Complete or I.E. Miller is required to
make a filing under any such laws in connection with the transactions contemplated by this
Agreement, the filing fees of such stockholder shall be borne by the Combining Companies based on
the following percentages: CES – 55.6%; IPS – 35.5%; and I.E. Miller – 8.9%.

     Section 8.6
Commercially Reasonable Efforts. Upon the terms and subject to the
conditions hereof, each of the parties hereto agrees to use its commercially reasonable efforts to
take, or cause to be taken, all appropriate action, and to do or cause to be done, all things
necessary, proper or advisable to consummate and make effective the transactions as contemplated by
this Agreement and to cooperate in connection with the foregoing, including commercially reasonable
efforts:

     (a) to obtain any necessary waivers, consents and approvals from other parties to
material notes, licenses, agreements and other instruments and obligations;

     (b) to obtain any material consents, approvals, authorizations and permits required to
be obtained under any federal, state, provincial or local statute;

     (c) to defend all lawsuits or other legal proceedings initiated by a third party
challenging this Agreement or the consummation of the transactions as contemplated hereby;

     (d) to effect promptly any necessary filings and notifications and prompt submissions
of any information requested by Governmental Authorities; and

     (e) to solicit the required consent or approval from such party’s stockholders with
respect to the transactions contemplated hereby.

     Section 8.7
Access to Information. From the date hereof to the Effective Time, each
of the parties hereto shall cause its respective officers, directors, employees and agents to
afford the officers, employees and representatives of the others, complete access at all reasonable
times to its respective officers, employees, agents, properties, books and records, and shall
furnish the others all financial, operating and other data and information as the others, through
their officers, employees or representatives, may reasonably request.

     Section 8.8
Tax Treatment. Each of the Mergers is intended to constitute a
reorganization within the meaning of section 368(a) of the Code, and this Agreement is intended to
constitute a plan of reorganization with respect to each of the Mergers within the meaning of
section 1.368-2(g) of the income tax regulations promulgated under the Code. From and after the
date of this Agreement, each party hereto shall use all commercially reasonable efforts to cause
each of the Mergers to qualify, and no party hereto shall knowingly take any action, cause any
action to be taken, fail to take any action or cause any action to fail to be taken which action

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or failure to act could prevent either of the Mergers from qualifying, as a reorganization
within the meaning of section 368(a) of the Code.

     Section 8.9
Agreements. Each of Complete, I.E. Miller and IPS shall terminate prior
to the Effective Time the agreements listed on Schedule 8.9.

     Section 8.10
Notification of Certain Matters. Each of Complete, I.E. Miller and IPS
shall give prompt notice of (i) the occurrence or non-occurrence of any event, the occurrence or
nonoccurrence of which would be likely to cause any representation or warranty of such company
contained herein to be untrue or inaccurate in any material respect at or prior to the Effective
Time, (ii) any material failure of any such Combining Company to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it hereunder and (iii) any
material adverse change in the business, operations, operating results or condition (financial or
otherwise) of such Combining Company and its Subsidiaries, taken as a whole. The delivery or
deemed delivery of any notice pursuant to this Section 8.10 shall not be deemed to (i)
modify the representations or warranties hereunder of the party delivering such notice, (ii) modify
the conditions set forth in Article IX, or (iii) limit or otherwise affect the remedies
available hereunder to the party receiving such notice.

     Section 8.11
Exclusive Dealing. During the period from the date of this Agreement to the
earlier of the Closing Date or the termination of this Agreement in accordance with its terms, none
of the Combining Companies will, and the Combining Companies will cause their respective
Subsidiaries not to, and no Combining Company will authorize or permit any of its stockholders or
any of their respective Affiliates, or any of its officers or directors or their respective
Affiliates, or any representative of any of the foregoing (including financial advisors, investment
bankers, agents, attorneys, employees or consultants) to, take any action to, directly or
indirectly, encourage, initiate, solicit or engage in discussions or negotiations with, or provide
any information to any Person, or enter into any agreement with any Person, other than the other
Combining Companies (and their Affiliates and representatives), concerning any purchase of any
Capital Stock of such Combining Company or any merger, asset sale or similar transaction involving
a change in control of such Combining Company or that would frustrate the purposes of this
Agreement. Each Combining Company will disclose to other Combining Companies the existence or
occurrence of any proposal (written or oral) or contact which they or any of their Affiliates or
representatives described above may receive in respect of any such transaction and the identity of
the Person from whom such a proposal or contact is received.

     Section 8.12
Further Assurances. The parties hereto agree to execute and deliver, or cause
to be executed and delivered, such further instruments or documents or take such other action as
may be reasonably necessary or convenient to carry out the transactions contemplated hereby.

     Section 8.13 Indemnification.

     (a) IPS agrees that all rights to indemnification under the certificate of
incorporation or bylaws of Complete and I.E. Miller and the indemnification Contracts, if
any, of Complete and I.E. Miller existing in favor of those Persons who are, or were,
directors and officers of Complete or I.E. Miller at or prior to the date of this Agreement

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(the “Indemnified Persons”) shall survive the Mergers solely with respect to
indemnifiable claims arising from acts or omissions prior to the Effective Time, and IPS
shall cause the Complete Surviving Company and I.E. Miller Surviving Company to fulfill and
honor in all respects such indemnification obligations in accordance with their terms solely
with respect to indemnifiable claims arising from acts or omissions prior to the Effective
Time, for a period of six (6) years from the Effective Time. Subject to any limitation
imposed from time to time under applicable Law, the provisions with respect to
indemnification set forth in the certificate of formation and limited liability company
agreement of the Complete Surviving Company and I.E. Miller Surviving Company shall be
substantially similar to those set forth in the Complete and I.E. Miller articles of
incorporation and bylaws, including coverage for former directors and officers of Complete
and I.E. Miller, and shall not be amended, repealed or otherwise modified for a period of
six (6) years after the Effective Time in any manner that would adversely affect the rights
thereunder of any Indemnified Person.

     (b) From the Effective Time until the sixth anniversary of the Effective Time (the
“Tail Period”), IPS shall cause the Complete Surviving Company and I.E. Miller
Surviving Company to maintain in effect, for the benefit of the Indemnified Persons with
respect to acts or omissions occurring prior to the Effective Time, a “tail” policy (the
“Tail Policy”) based on the existing policy of directors’ and officers’ liability
insurance maintained by Complete and I.E. Miller as of the date of this Agreement (the
“Existing Policy”); provided, however, that (i) the Complete
Surviving Company and I.E. Miller Surviving Company may substitute for the Tail Policy a
policy or policies of comparable coverage and (ii) the Complete Surviving Company and I.E.
Miller Surviving Company shall not be required to pay, for the Tail Period, an aggregate
premium for the Tail Policy (or for any substitute policies) in excess of two hundred
percent (200%) of the premium for the Existing Policy. In the event any future premium for
the Tail Policy (or any substitute policies) exceeds two hundred percent (200%) of the
premium for the Existing Policy, the Complete Surviving Company and I.E. Miller Surviving
Company shall be entitled to reduce the amount of coverage of the Tail Policy (or any
substitute policies) to the greatest amount of coverage that can be obtained for a premium
equal to two hundred percent (200%) of the premium for the Existing Policy.

     (c) The provisions of this Section 8.13 are intended to be an addition to the
rights otherwise available to the current and former officers and directors of Complete,
I.E. Miller and their Subsidiaries by law, charter, statute, bylaw or agreement, and shall
operate for the benefit of, and shall be enforceable by, each of the Indemnified Parties,
their heirs and their representatives and shall be binding on all successors and assigns of
IPS, Complete Surviving Company and I.E. Miller Surviving Company.

ARTICLE IX

CONDITIONS

     Section 9.1 Conditions to Obligations of Each Party. Notwithstanding any other
provision of this Agreement, the respective obligations of each party to effect the Mergers and

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the other transactions contemplated hereby shall be subject to the fulfillment at or prior to
the Closing Date of the following conditions:

     (a) No order shall have been entered and remain in effect in any action or proceeding
before any federal, foreign, state or provincial court or governmental agency or other
federal, foreign, state or provincial regulatory or administrative agency or commission that
restrains or prevents or makes illegal the consummation of the Mergers;

     (b) All approvals of Governmental Authorities necessary for the consummation of the
Mergers or the transactions contemplated in connection therewith shall have been obtained,
including approvals and filings required under applicable securities laws;

     (c) SCF and the stockholders of Complete owning a majority of Complete Common Stock
(other than the Complete Common Stock owned by SCF) shall have executed the consent
substantially in the form attached as Exhibit C hereto;

     (d) SCF and the stockholders of I.E. Miller owning a majority of I.E. Miller Common
Stock (other than the I.E. Miller Common Stock owned by SCF) shall have executed the consent
substantially in the form attached as Exhibit D hereto;

     (e) SCF and the stockholders of IPS owning a majority of IPS Common Stock (other than
the IPS Common Stock owned by SCF) shall have executed the consent substantially in the form
attached as Exhibit E hereto;

     (f) Other than with respect to filing certificates of merger to effect the Mergers, all
conditions precedent to the closing of the Financing shall have been satisfied;

     (g) All actions shall have been taken and all conditions necessary to effect each of
the Mergers shall have been satisfied other than the filings with Governmental Authorities
required to effect the Mergers;

     (h) Each of IPS, Complete and I.E. Miller shall have received an opinion of Vinson &
Elkins L.L.P. to the effect that for United States federal income tax purposes (i) each of
the Mergers will be treated as a reorganization within the meaning of section 368(a) of the
Code, (ii) no gain or loss will be recognized to IPS, Complete or I.E. Miller by reason of
the Mergers, and (iii) no gain or loss will be recognized to any stockholder of Complete or
I.E. Miller upon the exchange of shares of Complete Common Stock or I.E. Miller Common
Stock, respectively, for IPS Common Stock pursuant to the Mergers, except with respect to
any cash received in lieu of a fractional share interest in IPS Common Stock or received as
part of the Dividend. Such opinion will be conditioned upon the receipt and accuracy of
certain representations of IPS, Complete and I.E. Miller contained in certificates of
officers of IPS, Complete and I.E. Miller, respectively.

     (i) The board of directors of IPS as of the Effective Time shall consist of the persons
set forth on Schedule 9.1(i).

68

 

     (j) SCF shall have entered into (i) a termination agreement with IPS pursuant to which
SCF agrees to terminate, cancel and relinquish all of its rights and interest remaining
under that certain Warrant dated March 30, 2004 issued by IPS and none of such warrants
shall have been exercised after the date hereof and (ii) a termination agreement with I.E.
Miller pursuant to which SCF agrees to terminate, cancel and relinquish all of its rights
and interest remaining under that certain Warrant No. 1 dated August 31, 2004 issued by I.E.
Miller, in each case, including any remaining warrants thereunder and none of such warrants
shall have been exercised after the date hereof.

     (k) I.E. Miller & Company, L.L.C. shall have entered into a termination agreement with
I.E. Miller pursuant to which I.E. Miller & Company, L.L.C. agrees to terminate, cancel and
relinquish all of its rights and interest remaining under that certain Warrant No. 2 dated
August 29, 2004 issued by I.E. Miller, including any remaining warrants thereunder and none
of such warrants shall have been exercised after the date hereof.

     (l) Wells Fargo Energy Capital, Inc. shall have (i) entered into a termination
agreement with I.E. Miller pursuant to which Wells Fargo Energy Capital, Inc. agrees to
terminate, cancel and relinquish all of its rights and interest remaining under that certain
Warrant No. 3 dated August 31, 2004 issued by I.E. Miller, including any remaining warrants
thereunder and none of such warrants shall have been exercised after the date hereof and
(ii) exercised its rights in full under that certain Warrant to purchase 838 shares of I.E.
Miller Common Stock dated August 31, 2004 issued by I.E. Miller.

     (m) Amegy Bank of Texas, N.A. (f/k/a Southwest Bank of Texas, N.A.) shall have (i)
entered into a termination agreement with I.E. Miller pursuant to which Amegy Bank of Texas,
N.A. agrees to terminate, cancel and relinquish all of its rights and interest remaining
under that certain Warrant No. 4 dated August 31, 2004 issued by I.E. Miller, including any
remaining warrants thereunder and none of such warrants shall have been exercised after the
date hereof and (ii) exercised its rights in full under that certain Warrant to purchase 412
shares of I.E. Miller Common Stock dated August 31, 2004 issued by I.E. Miller.

     Section 9.2 Conditions to the Obligations of Complete. Notwithstanding any other
provision of this Agreement, the obligations of Complete to effect the Complete Merger and the
other transactions contemplated hereby are subject to the fulfillment (unless expressly waived in
writing by Complete, in its sole discretion, except as otherwise required by Law) at or prior to
the Closing Date of the following conditions:

     (a) The representations and warranties of I.E. Miller contained Article VI
hereof shall be true and correct in all respects (determined without reference to any
qualifier of any representation or warranty with respect to “materiality,” “Material Adverse
Effect” or other similar concepts) as of the Closing Date with the same effect as if made
thereon (except for representations and warranties as of a specified date which shall remain
true and correct as of such date), except for breaches or inaccuracies which, individually
or in the aggregate, would not have or would not reasonably likely to have a Material
Adverse Effect on I.E. Miller; provided, however, such Material Adverse
Effect

69

 

exception shall not apply with respect to the representations and warranties contained
in Section 6.3, which shall be true and correct in all respects;

     (b) The representations and warranties of IPS contained in Article VII hereof
shall be true and correct in all respects (determined without reference to any qualifier of
any representation or warranty with respect to “materiality,” “Material Adverse Effect” or
other similar concepts) as of the Closing Date with the same effect as if made thereon
(except for representations and warranties as of a specified date which shall remain true
and correct as of such date), except for breaches or inaccuracies which, individually or in
the aggregate, would not have or would not reasonably likely to have a Material Adverse
Effect on IPS; provided, however, such Material Adverse Effect exception
shall not apply with respect to the representations and warranties contained in Section
7.3, which shall be true and correct in all respects;

     (c) The agreements and covenants of I.E. Miller, IPS, Merger Sub-CES and Merger Sub-IEM
contained in this Agreement which are to complied with or performed on or before the Closing
Date shall have been performed or complied with in all material respects;

     (d) No event, condition, development or circumstances has occurred which, individually
or in the aggregate, has had or would reasonably likely to have a Material Adverse Effect on
I.E. Miller or IPS;

     (e) IPS shall have (i) duly adopted, together with the requisite IPS stockholders, and
filed the Amended and Restated Certificate of Incorporation in the form attached hereto as
Exhibit F with the Secretary of State of Delaware and (ii) adopted the Amended and
Restated Bylaws of IPS in the form attached hereto as Exhibit G;

     (f) The Amended and Restated Stockholders Agreement of IPS substantially in the form
attached hereto as Exhibit A shall have been duly approved by IPS, together with the
requisite IPS stockholders such that all of the IPS stockholders immediately prior to the
Effective Time shall be bound thereby, and executed and delivered by IPS and all of the
stockholders of I.E. Miller in existence immediately prior to the Effective Time;

     (g) [Intentionally Omitted]

     (h) Each of I.E. Miller and IPS shall have paid, or caused to be paid, all of the
outstanding liabilities, obligations, and indebtedness identified on Schedule 9.2(h)
next to such party’s name, except as otherwise provided in such Schedule and, in connection
with such repayment of indebtedness, each of I.E. Miller and IPS shall have secured
terminations and releases of (i) all applicable Liens (other than Permitted Liens) on any
assets of I.E. Miller or IPS securing such indebtedness and (ii) all associated guaranties
of the stockholders of I.E. Miller and IPS with respect to such indebtedness;

     (i) Each of the non-governmental consents and approvals with respect to I.E. Miller,
IPS, Merger Sub-CES and Merger Sub-IEM that are required to consummate the

70

 

transactions contemplated by this Agreement and set forth on Schedule 9.2(i)
next to such party’s name shall have been obtained;

     (j) Opinions of counsel to each of the Independent Committees of I.E. Miller and IPS as
to the matters set forth on Schedule 9.2(j) shall have been delivered to Complete.

     Section 9.3 Conditions to the Obligations of I.E. Miller. Notwithstanding any other
provision of this Agreement, the obligations of I.E. Miller to effect the I.E. Miller Merger and
the other transactions contemplated hereby are subject to the fulfillment (unless expressly waived
in writing by I.E. Miller, in its sole discretion, except as otherwise required by Law) at or prior
to the Closing Date of the following conditions:

     (a) The representations and warranties of Complete contained Article V hereof
shall be true and correct in all respects (determined without reference to any qualifier of
any representation or warranty with respect to “materiality,” “Material Adverse Effect” or
other similar concepts) as of the Closing Date with the same effect as if made thereon
(except for representations and warranties as of a specified date which shall remain true
and correct as of such date), except for breaches or inaccuracies which, individually or in
the aggregate, would not have or would not reasonably likely to have a Material Adverse
Effect on Complete; provided, however, such Material Adverse Effect
exception shall not apply with respect to the representations and warranties contained in
Section 5.3, which shall be true and correct in all respects;

     (b) The representations and warranties of IPS contained in Article VII hereof
shall be true and correct in all respects (determined without reference to any qualifier of
any representation or warranty with respect to “materiality,” “Material Adverse Effect” or
other similar concepts) as of the Closing Date with the same effect as if made thereon
(except for representations and warranties as of a specified date which shall remain true
and correct as of such date), except for breaches or inaccuracies which, individually or in
the aggregate, would not have or would not reasonably likely to have a Material Adverse
Effect on IPS; provided, however, such Material Adverse Effect exception
shall not apply with respect to the representations and warranties contained in Section
7.3, which shall be true and correct in all respects;

     (c) The agreements and covenants of Complete, IPS, Merger Sub-CES and Merger Sub-IEM
contained in this Agreement which are to complied with or performed on or before the Closing
Date shall have been performed or complied with in all material respects;

     (d) No event, condition, development or circumstances has occurred which, individually
or in the aggregate, has had or would reasonably likely to have a Material Adverse Effect on
Complete or IPS;

     (e) IPS shall have (i) duly adopted, together with the requisite IPS stockholders, and
filed the Amended and Restated Certificate of Incorporation in the

71

 

form attached hereto as Exhibit F with the Secretary of State of Delaware and
(ii) adopted the Amended and Restated Bylaws of IPS in the form attached hereto as
Exhibit G;

     (f) The Amended and Restated Stockholders Agreement of IPS substantially in the form
attached hereto as Exhibit A shall have been duly approved by IPS, together with the
requisite IPS stockholders such that all of the IPS stockholders immediately prior to the
Effective Time shall be bound thereby, and executed and delivered by IPS and all of the
stockholders of Complete in existence immediately prior to the Effective Time;

     (g) [Intentionally Omitted]

     (h) Each of Complete and IPS shall have paid, or caused to be paid, all of the
outstanding liabilities, obligations, and indebtedness identified on Schedule 9.2(h)
next to such party’s name, except as otherwise provided in such Schedule and, in connection
with such repayment of indebtedness, each of Complete and IPS shall have secured
terminations and releases of (i) all applicable Liens (other than Permitted Liens) on any
assets of Complete or IPS securing such indebtedness and (ii) all associated guaranties of
the stockholders of Complete and IPS with respect to such indebtedness;

     (i) Each of the non-governmental consents and approvals with respect to Complete, IPS,
Merger Sub-CES and Merger Sub-IEM that are required to consummate the transactions
contemplated by this Agreement and set forth on Schedule 9.2(i) next to such party’s
name shall have been obtained; and

     (j) Opinions of counsel to each of the Independent Committees of Complete and IPS as to
the matters set forth on Schedule 9.2(j) shall have been delivered to I.E. Miller.

     Section 9.4 Conditions to the Obligations of IPS and Merger Subs. Notwithstanding any
other provision of this Agreement, the obligations of IPS, Merger Sub-CES and Merger Sub-IEM to
effect the Mergers and the other transactions contemplated hereby are subject to the fulfillment
(unless expressly waived in writing by IPS, in its sole discretion, except as otherwise required by
Law) at or prior to the Closing Date of the following conditions:

     (a) The representations and warranties of Complete contained Article V hereof
shall be true and correct in all respects (determined without reference to any qualifier of
any representation or warranty with respect to “materiality,” “Material Adverse Effect” or
other similar concepts) as of the Closing Date with the same effect as if made thereon
(except for representations and warranties as of a specified date which shall remain true
and correct as of such date), except for breaches or inaccuracies which, individually or in
the aggregate, would not have or would not reasonably likely to have a Material Adverse
Effect on Complete; provided, however, such Material Adverse Effect
exception shall not apply with respect to the representations and warranties contained in
Section 5.3, which shall be true and correct in all respects;

     (b) The representations and warranties of I.E. Miller contained in Article VI
hereof shall be true and correct in all respects (determined without reference to any

72

 

qualifier of any representation or warranty with respect to “materiality,” “Material
Adverse Effect” or other similar concepts) as of the Closing Date with the same effect as if
made thereon (except for representations and warranties as of a specified date which shall
remain true and correct as of such date), except for breaches or inaccuracies which,
individually or in the aggregate, would not have or would not reasonably likely to have a
Material Adverse Effect on I.E. Miller; provided, however, such Material
Adverse Effect exception shall not apply with respect to the representations and warranties
contained in Section 6.3, which shall be true and correct in all respects;

     (c) The agreements and covenants of Complete and I.E. Miller contained in this
Agreement which are to complied with or performed on or before the Closing Date shall have
been performed or complied with in all material respects;

     (d) No event, condition, development or circumstances has occurred which, individually
or in the aggregate, has had or would reasonably likely to have a Material Adverse Effect on
Complete or I.E. Miller;

     (e) The Amended and Restated Stockholders Agreement of IPS substantially in the form
attached hereto as Exhibit A shall have been executed and delivered by all of the
stockholders of Complete and I.E. Miller in existence immediately prior to the Effective
Time;

     (f) [Intentionally Omitted]

     (g) Each of Complete and I.E. Miller shall have paid, or caused to be paid, all of the
outstanding liabilities, obligations, and indebtedness identified on Schedule 9.2(h)
next to such party’s name, except as otherwise provided in such Schedule and, in connection
with such repayment of indebtedness, each of Complete and I.E. Miller shall have secured
terminations and releases of (i) all applicable Liens (other than Permitted Liens) on any
assets of Complete or I.E. Miller securing such indebtedness and (ii) all associated
guaranties of the stockholders of Complete and I.E. Miller with respect to such
indebtedness;

     (h) Each of the non-governmental consents and approvals with respect to Complete and
I.E. Miller that are required to consummate the transactions contemplated by this Agreement
and set forth on Schedule 9.2(i) next to such party’s name shall have been obtained;
and

     (i) Opinions of counsel to each of the Independent Committees of Complete and I.E.
Miller as to the matters set forth on Schedule 9.2(j) shall have been delivered to
IPS.

73

 

ARTICLE X

TERMINATION

     Section 10.1 Termination. This Agreement may be terminated and the Mergers and the
other transactions contemplated herein may be abandoned at any time prior to the Effective Time,
whether prior to or after approval by the applicable stockholders:

     (a) By any Combining Company hereto in the event of an the occurrence of a Material
Adverse Effect on either of the other Combining Parties which is incapable of being cured,
remedied or reversed within 90 days of such event, provided that the party desiring
to terminate is not responsible for the occurrence of such Material Adverse Effect;

     (b) By any party hereto if the Effective Time shall not have occurred on or before
September 30, 2005 (unless the Effective Time has not occurred as the result of a breach of
the terms hereof by the party desiring to exercise the termination right);

     (c) By any party hereto if a final unappealable order to restrain, enjoin or otherwise
prevent, or awarding substantial damages in connection with, consummation of this Agreement
or the transactions contemplated in connection herewith shall have been entered;

     (d) By mutual agreement of the board of directors of each of the Combining Companies.

     Section 10.2 Effect of Termination. In the event of any termination of this Agreement
pursuant to Section 10.1, the parties hereto shall have no obligation or liability to any
other party hereto except the provisions of this Section and Sections 8.4, 11.5, 11.6, 11.8,
11.9, 11.10 and 11.11 hereof shall survive any such termination and, except as provided
in this Section 10.2, all documents executed in connection with this Agreement shall be
null and void.

ARTICLE XI

MISCELLANEOUS

     Section 11.1 Waiver and Amendment. Any provision of this Agreement may be waived at
any time by the party that is, or whose stockholders are, entitled to the benefits thereof by
action of the board of directors (with the approval of the applicable Independent Committee) of
such party. This Agreement may not be amended or supplemented at any time, except by an instrument
in writing signed on behalf of each party hereto; provided, that after this Agreement has
been approved and adopted by the respective stockholders of the parties, as applicable, hereto,
this Agreement may be amended only as may be permitted by applicable provisions of the DGCL.

     Section 11.2 Nonsurvival of Representations and Warranties. No representation and
warranty made in this Agreement shall survive the Effective Time. This Section 11.2 shall

74

 

not limit the term of any covenant or agreement which by its terms contemplates performance
after the Effective Time.

     Section 11.3 Assignment. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective successors, heirs,
devisees and assigns. Except as set forth in this Agreement, this Agreement shall not be
assignable by the parties hereto, except with the prior written consent of the other parties.

     Section 11.4 Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given when delivered if
delivered in person, by cable, telegram, telex, or telecopy and shall be deemed to have been duly
given three Business Days after deposit with a United States post office if delivered by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties as follows:

	 	 	 	 	 
	 	 	if to IPS:
	 

	 	 	 	Integrated Production Services, Inc.
	 

	 	 	 	3700 Buffalo Speedway, Suite 620
	 

	 	 	 	Houston, Texas 77098
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Facsimile: (713) 960-1313
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Gardere Wynne Sewell LLP
	 

	 	 	 	1000 Louisiana, Suite 3400
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Frank Putman
	 

	 	 	 	Facsimile: (713) 276-6777
	 
	 	 	 	 
	 	 	if to Complete:
	 
	 	 	 	 
	 

	 	 	 	Complete Energy Services, Inc.
	 

	 	 	 	14450 JFK Blvd., Suite 400
	 

	 	 	 	Houston, Texas 77032
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Facsimile: (281) 582-9689
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Porter & Hedges, L.L.P.
	 

	 	 	 	1000 Main Street, 36th Floor
	 

	 	 	 	Houston, TX 77002
	 

	 	 	 	Attention: Chris A. Ferazzi and Richard L. Wynne
	 

	 	 	 	Facsimile: (713) 228-1331

75

 

	 	 	 	 	 
	 	 	if to I.E. Miller:
	 
	 	 	 	 
	 

	 	 	 	I.E. Miller Inc.
	 

	 	 	 	826 Industrial Lane
	 

	 	 	 	Eunice, Louisiana 70535
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Facsimile: (337) 457-4468
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Phelps Dunbar, L.L.P.
	 

	 	 	 	City Plaza
	 

	 	 	 	445 North Boulevard, Suite 701
	 

	 	 	 	Baton Rouge, Louisiana 70802
	 

	 	 	 	Attention: Richard E. Matheny
	 

	 	 	 	Facsimile: (225) 381-9197

or to such other address as any party may have furnished to the others in writing in accordance
herewith, except that notices of change of address shall only be effective upon receipt.

     Section 11.5 Governing Law. This Agreement shall be governed by and construed in
accordance with the provisions of the DGCL and the DLLCA with respect to the Mergers and, with
respect to other matters, in accordance with the substantive law of the State of Texas without
giving effect to the principles of conflicts of law thereof.

     Section 11.6 Severability. If any term or other provisions of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner material to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible.

     Section 11.7 Counterparts. This Agreement may be executed in counterparts, each of
which shall be an original document, but all of which together shall constitute one and the same
agreement.

     Section 11.8 Headings. The Section headings herein are for convenience only and are
not intended to be part of or to affect the meaning or interpretation of the Agreement.

     Section 11.9 Enforcement of the Agreement. The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or otherwise breached. It is accordingly agreed that the
parties hereto shall be entitled to any injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions hereof, this being in addition to
any other remedies to which they are entitled at law or in equity. In addition, each of the
parties hereto consents to submit itself to the personal jurisdiction of any federal or state

76

 

court sitting in the State of Texas in the event any dispute arises out of this Agreement and
agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court.

     Section 11.10 Agreement; Third Party Beneficiaries. This Agreement, including the
exhibits hereto and the documents, information supplied in writing, and instruments referred to
herein, constitute the entire agreement and supersedes all other prior agreements, and
understandings, both oral and written, among the parties or any of them, with respect to the
subject matter hereof. This Agreement shall be binding upon and inure solely to the benefit of the
parties hereto, and nothing in this Agreement, including the exhibits hereto and the documents,
information supplied in writing, and instruments referred to herein, express or implied, is
intended to confer upon any other person any rights or remedies of any nature whatsoever under or
by reason of this Agreement.

     Section 11.11 Fees and Expenses. Whether or not the transactions contemplated by this
Agreement are consummated, except as otherwise expressly provided for herein, the parties will pay
or cause to be paid all of their own fees and expenses incident to this Agreement and in preparing
to consummate and in consummating the transactions contemplated hereby, including the fees and
expenses of any broker, finder, financial advisor, investment banker, legal advisor or similar
person engaged by such party; provided, however, the Combining Companies shall pay
or cause to be paid any shared out-of-pocket costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereunder to the extent not specifically billed to one
of the Combining Companies based on the following percentages: Complete—55.6%; I.E. Miller—8.9%
and IPS—35.5%.

77

 

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

	 	 	 	 	 
	 	 	INTEGRATED PRODUCTION SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:		 /s/ Brian Moore
	 

	 	 	 	 
	 

	 	Name:	 	 Brian Moore
	 

	 	 	 	 
	 

	 	Title:	 	 President and Chief Executive
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPLETE ENERGY SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Name:	 	 Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Title:	 	 President and Chief Executive
Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPLETE ENERGY SERVICES, LLC
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Name:	 	 Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Title:	 	 President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	I.E. MILLER SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Sherry Flato
	 

	 	 	 	 
	 

	 	Name:	 	 Sherry Flato
	 

	 	 	 	 
	 

	 	Title:	 	 Vice President and Chief
Financial Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	I.E. MILLER SERVICES, LLC
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Name:	 	 Joseph C. Winkler
	 

	 	 	 	 
	 

	 	Title:	 	 President
	 

	 	 	 	 

78exv4w1

 

Exhibit 4.1

CAT FINANCIAL POWERINVESTMENT PLAN

     This Cat Financial PowerInvestment Plan (the “Plan”) established by Caterpillar Financial
Services Corporation (the “Company”), dated as of October 1, 2005, amends and restates the
Caterpillar Money Market Account Plan. The name of the Caterpillar Money Market Account Plan is
hereby changed to “Cat Financial PowerInvestment Plan.” The Plan was established to provide such
persons as from time to time are designated by the Company with a convenient means of making
investments in Variable Denomination Floating Rate Demand Notes of the Company.

I. Definitions

     As hereinafter used:

     “Application” shall have the meaning set forth in paragraph IV hereof.

     “Agent Bank” shall have the meaning set forth in paragraph IX hereof.

     “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which the
Agent Bank is authorized or obligated by law to close.

     “Caterpillar” shall mean Caterpillar Inc., a Delaware corporation.

     “Committee” shall mean the Cat Financial PowerInvestment Committee created by the Company
pursuant to paragraph X hereof.

     “Company” shall mean Caterpillar Financial Services Corporation, a Delaware corporation.

     “Eligible Investor” shall mean any person designated by the Committee as eligible to invest in
the Notes pursuant to paragraph II hereof.

     “Immediate Family Member” shall mean, with respect to any person, such person’s spouse and
dependent children (as defined for Federal income tax purposes).

     “Indenture” shall have the meaning set forth in paragraph VIII hereof.

     “Note Register” shall have the meaning set forth in paragraph IV hereof.

     “Notes” shall mean the nontransferable Variable Denomination Floating Rate Demand Notes of the
Company issued pursuant to and in accordance with the terms, conditions and provisions of the
Indenture, as in effect from time to time.

     “Investor” shall mean any Eligible Investor having established a Plan Investment.

     “Participating Company” shall mean and include the Company and Caterpillar and each subsidiary
of the Company or Caterpillar incorporated in the United States. “Subsidiary of the Company or
Caterpillar” shall mean a corporation not less than a majority of the voting stock of which is
owned directly or indirectly by the Company or Caterpillar.

1

 

     “Plan” shall mean the Cat Financial PowerInvestment Plan.

     “Plan Investment” shall mean an investment established and maintained pursuant to the Plan and
recorded on the Note Register.

     “Plan Investment Note Balance” shall have the meaning set forth in paragraph IV hereof.

     “Registered Investment Address” shall have the meaning set forth in paragraph IV hereof.

     “Registered Investment Owner” shall mean (a) in the case of an individual Plan Investment, the
Investor or (b) in the case of a joint Plan Investment, the Investor and the Immediate Family
Members who have been designated by the Investor as having a joint interest in the Plan Investment,
(c) in the case of a custodial Plan Investment, the Investor, as custodian, or (d) in the case of a
trust Plan Investment established for the benefit of an Investor or for the benefit of an Immediate
Family Member of an Investor, the trust, or, if such Investor is a joint owner of the Plan
Investment with the trust, the Investor and the trust, all as recorded on the Note Register.

     “Trustee” shall have the meaning set forth in paragraph VIII hereof.

II. Eligibility

     (a) Except as hereinafter provided, any person may invest in the Notes issued pursuant to the
Plan, provided such person is a citizen of the United States or, except as provided in applicable
United States Treasury Regulations, a partnership, a corporation incorporated or established in or
under the laws of the United States or a Trust or estate that is treated as a United States person
under Section 7701 of the Internal Revenue Code, as amended.

     (b) The Committee may from time to time in its sole discretion limit or expand the categories
of persons who shall be eligible to invest in the Notes subject to such limitations or regulations
as the Committee from time to time may prescribe.

III. Participation

     Participation in the Plan shall be entirely voluntary. An Eligible Investor may elect to
participate in the Plan by delivering to the Company, to a Participating Company or to the Agent
Bank, as designated by the Committee from time to time, a properly completed Application, and
delivering to the Company, to a Participating Company and to the Agent Bank such other forms and
undertakings as may be designated by the Committee from time to time.

IV. Establishment of Plan Investments — Note Register

     Plan Investments shall be established by the Eligible Investor delivering to the Company, to a
Participating Company or to the Agent Bank, as the Committee from time to time may designate, a
properly executed application (the “Application”), which shall require such information and provide
such elections as the Committee from time to time may determine,

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together with such other forms and undertakings as may be designated by the Committee from
time to time.

     Subject to such limitations or regulations as the Committee from time to time may prescribe,
each Eligible Investor may establish and maintain one or more of the following types of
investments: individual investments, joint investments with Immediate Family Members, trust
investments established for the benefit of an Eligible Investor, trust investments established for
the benefit of an Immediate Family Member, and custodial investments for an Immediate Family Member
pursuant to the applicable Uniform Gifts to Minors Act of the state in which the Eligible Investor
resides. In the case of any trust investment, the income of such trust must be subject to U.S.
Federal income taxation regardless of its source.

     The Agent Bank shall maintain a listing (the “Note Register”) setting forth such information
regarding each Plan Investment as the Committee from time to time may determine, including but not
limited to the name of the Investor, such Investor’s social security number or taxpayer
identification number, the names of other Registered Investment Owners, if any, the address to
which notices under the Plan are to be sent (the “Registered Investment Address”), the amounts
credited to the Plan Investment and the amount of Notes redeemed by such Investor from time to time
(the “Plan Investment Note Balance”) and accrued and unpaid interest on the Plan Investment Note
Balance.

V. Investment Under the Plan — Issuance of Notes

     The Notes shall be issued under the Indenture between the Company and the Trustee, as amended
or supplemented from time to time in accordance with the terms thereof.

     The principal amount of each Note issued to an Investor under the Plan shall at all times be
equal to the Plan Investment Note Balance in such Investor’s Plan Investment and shall bear
interest from time to time at the rate provided for in paragraph VI hereof.

     The Committee may designate from time to time methods of making investments under the Plan
which shall be subject to such limitations and requirements as the Committee may determine.

VI. Interest Rate

     Each Note shall bear interest from time to time at a floating rate per annum to be determined
by the Committee on a weekly basis to be effective on the following Monday. Such rate of interest
will be determined by the Committee in the manner and on the basis chosen by the Committee in its
sole discretion. The Committee may delegate the authority to set the interest rate on the Notes to
the appropriate Funding Manager in the Treasury Department of the Company or such other person or
persons as the Committee determines in its sole discretion.

     Interest on each Note shall accrue and be compounded daily based on a 365-day year. Accrued
interest shall be automatically reinvested in the Notes as of the fifteenth day of each calendar
month.

VII. Redemption of Notes — Termination of Plan Investments

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     (a) Subject to the provisions of this paragraph VII, Registered Investment Owners may redeem
all or part of the principal amount of the Note evidencing amounts invested by the Registered
Investment Owner in the Notes at any time and from time to time by written request for redemption
by check. The Committee may designate from time to time other methods of redemption of the Notes
by the Registered Investment Owners under the Plan which shall be subject to such limitations and
requirements as the Committee may determine.

     A Registered Investment Owner may elect voluntarily to terminate participation in the Plan and
close such Registered Investment Owner’s Plan Investment by written notice to the Agent Bank. Upon
election by the Registered Investment Owner to terminate participation in the Plan, all amounts
credited to the principal amount of the Note held by such Registered Investment Owner, together
with accrued and unpaid interest to but not including the Business Day next following the effective
date of such termination, shall be paid by check to the Registered Investment Owner as such Owner’s
interests shall appear at the Registered Investment Address.

     (b) The Company shall have the right to redeem, at any time at its option, all or any part of
the Notes. Any partial redemption of the Notes will be effected by lot or pro rata or by any other
method that is deemed fair and appropriate by the Trustee.

     (c) With respect to any Plan Investment which shall have a Plan Investment Note Balance of
less than $250 (or such other amount as the Committee from time to time may determine) (the
“Minimum Investment Note Balance”) and to which no investment shall have been made (other than the
crediting of interest thereto pursuant to the provisions of paragraph VI hereof) for a continuing
period of three calendar months immediately preceding determination thereof (or such other period
as the Committee from time to time may determine), the Company shall have the right, after 30 days
following the mailing of a written notice to the Investor (provided that the Plan Investment Note
Balance shall not have been restored to the Minimum Investment Note Balance during such 30-day
period), to terminate such Investor’s investment in the Notes, to redeem the principal amount of
the Notes together with accrued and unpaid interest thereon, to mail the proceeds thereof to the
Registered Investment Owner as such Registered Investment Owner’s registered interests shall appear
at the Registered Investment Address and to terminate the Plan Investment. Interest on the
redeemed amount shall cease to accrue on and after the effective date on which the redeemed amount
shall have become due and payable.

     The Company shall have the right to redeem immediately any Notes of an Investor who the
Company believes in its sole judgment and discretion, is abusing or misusing the investment or
redemption provisions applicable to the Notes. In such circumstances, the Company shall notify the
Investor of its intention to redeem in full the Notes on the third Business Day following the date
of the Company’s notice. A final redemption check (less a service fee) will be sent to the
Investor in an amount equal to the principal amount of the redeemed Notes, including accrued and
unpaid interest.

     The Company also shall have the right to redeem any Note, together with accrued and unpaid
interest thereon, and to terminate the related Plan Investment upon determination by the Company
that the Investor holding the Note is not eligible to invest in the Notes or in the event the Plan
is suspended or terminated pursuant to paragraph XIII hereof. Interest on the redeemed

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amount shall cease to accrue on and after the effective date the redeemed amount shall have
become due and payable.

VIII. Trustee

     The Company shall appoint one or more corporations to act as trustee (the “Trustee”) for Notes
issued pursuant to the Plan and shall enter into an indenture (the “Indenture”) with such
corporation or corporations which meets the requirements of the Trust Indenture Act of 1939.
Subject to the requirements of the Indenture, the Company and the Trustee may amend or supplement
the Indenture from time to time.

IX. Agent Bank

     The Company shall appoint one or more banks or corporations to act as agent under the Plan
(the “Agent Bank”) and at any time may remove the Agent Bank and appoint a successor Agent Bank.
The Committee may, without reference to or any action by any Investor or other Registered
Investment Owner, enter into such agreement or further agreements and take such other steps and
execute such other instruments as the Company in its sole discretion may deem necessary or
desirable to carry the Plan into effect or to facilitate its administration.

X. Committee

     The Company’s Board of Directors shall create a Cat Financial PowerInvestment Committee (the
“Committee”) consisting of at least three persons. The Board of Directors initially designates the
Committee to consist of the person elected from time to time as the President, the Executive Vice
President and the Treasurer of the Company. The President of the Company shall from time to time
designate an alternate for each of such members, who shall have full power to act in the absence or
inability to act of such member. The Committee shall act by a majority of its members, with or
without a meeting.

     The Committee shall have full power and authority to administer the Plan, to interpret its
provisions, to adopt forms for use thereunder, to adopt rules and regulations in connection
therewith and to make the determinations thereunder provided for it to be made. Any interpretation
of the provisions of the Plan by the Committee shall be final and conclusive, and shall bind and
may be relied on by all parties in interest to the Plan.

     No member of the Committee or alternate for a member or a director, officer or employee of any
Participating Company shall be liable for any action or failure to act under or in connection with
the Plan, except for his own bad faith. Each director, officer or employee of the Company or a
Participating Company who is or shall have been designated to act on behalf of the Company or a
Participating Company and each person who is or shall have been a member of the Committee or an
alternate for a member or a director, officer or employee of any Participating Company, as such,
shall be indemnified and held harmless by the Company against and from any and all loss, cost,
liability or expense that may be imposed upon or reasonably incurred by him in connection with or
resulting from any claim, action, suit or proceeding to which he may be a party or in which he may
be involved by reason of any action taken or failure to act under the Plan and against and from any
and all amounts paid by him in settlement thereof (with the Company’s written approval) or paid by
him in satisfaction of a judgment in any such

5

 

action, suit or proceeding, except a judgment in favor of the Company based upon a finding of
his bad fait subject, however, to the condition that, upon the assertion or institution of any such
claim, action, suit or proceeding against him, he shall in writing give the Company an opportunity,
at its own expense, to handle and defend the same before he undertakes to handle and defend it on
his own behalf. The foregoing right of indemnification shall not be exclusive of any other right
to which such person may be entitled as a matter of law or otherwise, or any power that a
Participating Company may have to indemnify him or hold him harmless.

XI. Plan Investment Statements

     On approximately the 15th day of each calendar month, there shall be furnished with respect to
each Plan Investment a statement setting forth a summary of all transactions in such Plan
Investmen t during the previous month, including beginning and ending Plan Investment Balances,
interest credited, and such additional information as the Committee from time to time may
determine. Such statements shall be deemed to have been accepted by the Investor and other
Registered Investment Owners as correct unless written notice to the contrary shall be received by
the Agent Bank within 30 days after the mailing of such statement to the Registered Investment
Address.

XII. Notices, etc.

     All notices, statements and other communications from the Agent Bank or a Participating
Company to an Investor, other Registered Investment Owner or designated beneficiary shall be deemed
to have been duly given, furnished, delivered or transmitted, as the case may be, when delivered to
(or when mailed to) the most recent Registered Investment Address.

     All notices, instructions and other communications from an Investor or other Registered
Investment Owner to the Company or Participating Company or Agent Bank required or permitted
hereunder (including without limitation Applications and redemption requests) shall be in the
respective forms from time to time prescribed therefor by the Committee, shall be mailed by
first-class mail or delivered to such location as shall be specified by and upon forms prescribed
by the Committee and shall be deemed to have been duly given and delivered upon receipt by the
Company or a Participating Company or the Agent Bank, as the case may be, at such location.

     From time to time as necessary to facilitate the administration of the Plan, the Company,
Participating Companies, the Agent Bank, the Trustee and the Committee shall deliver to each other
copies or consolidations of such notices, instructions or other communications in respect of the
Plan as it may receive from Investors or Registered Investment Owners.

XIII. Termination, Suspension and Modification

     The Company may terminate the Plan at any time or from time to time suspend or modify the
Plan, in part, in its entirety or in respect of the employees of one or more Participating
Companies or in respect of any person or persons designated as Eligible Investors. The Company may
at any time or from time to time terminate or modify the Plan or suspend for any period the
operation of any provision thereof in respect of any Investors located in one or more
jurisdictions. Any such termination, modification or suspension of the Plan may affect Investors

6

 

in the Plan at the time thereof, as well as future Investors, but may not affect the rights of
an Investor unless such proposed action shall have been communicated to such Investor in sufficient
time prior to the effective date thereof to permit such Investor to redeem amounts credited to his
or her Plan Investment together with accrued and unpaid interest in accordance with the terms of
the Plan in effect prior to the effective date of such termination, modification or suspension.
The Company shall notify the Trustee promptly after any such termination, modification or
suspension of the Plan. Any modification that affects the rights or duties of the Trustee may be
made only with the consent of the Trustee.

     Anything herein to the contrary notwithstanding, no such termination or modification of the
Plan or suspension or any provision thereof may diminish the principal amount of any Note, or such
Investor’s unpaid interest thereon.

XIV. Rights Not Transferable

     Except in the case of (i) Note redemptions in accordance with paragraph VII hereof, and (ii)
the establishment and subsequent termination of joint, custodial and trust Plan Investments, no
right or interest of any Investor or other Registered Investment Owner under the Plan or in such
Investor’s Plan Investment or the Note issued in connection therewith shall be assignable or
transferable, in whole or in part, either directly or by operation of law or otherwise, including
without limitation by execution, levy, garnishment, attachment, pledge or in any other manner, but
excluding devolution by death or mental incompetency; no attempted assignment or transfer thereof
shall be effective; and no right or interest of any Investor, other Registered Investment Owner or
designated beneficiary under the Plan or in a Plan Investment or the Note issued in connection
therewith shall be liable for, or subject to, any obligation or liability of such Investor or other
Registered Investment Owner. Notwithstanding the provisions of this paragraph XIV, a Plan
Investment may be debited for all amounts which a Participating Company or the Agent Bank shall
have caused, in error, to be credited to such Plan Investment.

XV. Fees

     There will be no maintenance fees or charges to Investors for checks or check redemptions.
There will be a $15.00 processing charge (or such other amount as may be designated from time to
time by the Committee) for each returned check. Stop payment requests will incur a $12.00
processing charge (or such other amount as may be designated from time to time by the Committee)
per request. Redemptions by wire transfer may result in an additional charge by the institutions
handling the transfer.

     The Committee may designate from time to time other fees in connection with investments or
redemptions in the Notes or otherwise in connection with the Notes, provided the Committee shall
communicate such fees to the Investors in sufficient time prior to the effective date thereof to
permit the Investors to redeem amounts credited to their respective Plan Investments together with
accrued and unpaid interest in accordance with the terms of the Plan in effect prior to the
effective date of such fees.

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XVI. Miscellaneous

     The records of the Company, the Agent Bank, the Trustee, the Committee and the several
Participating Companies shall be conclusive in respect of all matters involved in the
administration of the Plan.

     Except as specified in paragraph XV, all expenses of administering the Plan, including without
limitation the fees of the Agent Bank and the Trustee and other expenses charged or incurred by the
Agent Bank and the Trustee, shall be borne by the Company, and no charge or penalty shall be
imposed by a Participating Company, the Agent Bank or the Trustee against any Plan Investment or
Registered Investment Owner by reason of participation in the Plan; provided, however, that no
Participating Company, the Agent Bank or the Trustee shall have any liability for any cost incurred
by a Registered Investment Owner including, but not limited to, costs incurred in connection with
the wiring of funds to make investments under the Plan.

     The Plan shall be governed by and construed in accordance with the laws of the State of New
York.

XVII. Effectiveness

     The Plan shall be effective as of the date that Registration Statement on Form S-3 No.
333-114075 is declared effective by the Securities and Exchange Commission.

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