Document:

ASSET
      PURCHASE AGREEMENT

     

    
      

    

    

    by
      and
      among

    

    CRC
      ACQUISITION CO. LLC,

    

    NET
      PERCEPTIONS, INC.,

    

    and

    

    SIG
      ACQUISITION CORP.

     

    
      

    

     

    Dated
      as
      of September 22, 2006

     

    
      

    

     

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    TABLE
      OF
      CONTENTS

     

    
      	
              Section

            	 	
              Page

            
	 	 	 	 
	
              1.

            	
              DEFINITIONS

            	 	
              1

            
	 	 	 	 
	
              2.

            	
              PURCHASE
                AND ASSIGNMENT OF ASSETS OF SELLER

            	
              12

            
	 	
              2.1.

            	
              Assets
                Purchased

            	
              12

            
	 	
              2.2.

            	
              Retained
                Assets

            	
              13

            
	 	
              2.3.

            	
              Purchase
                Price and Costs

            	
              14

            
	 	
              2.4.

            	
              Closing
                and Post-Closing Adjustment

            	
              15

            
	 	 	 	 
	
              3.

            	
              ASSUMPTION
                OF LIABILITIES

            	
              17

            
	 	
              3.1.

            	
              Assumed
                Liabilities

            	
              17

            
	 	
              3.2.

            	
              Contracts

            	
              17

            
	 	
              3.3.

            	
              Prorated

            	
              18

            
	 	
              3.4.

            	
              No
                Further Assumption; Non-Assumed Liabilities

            	
              18

            
	 	 	 	 
	
              4.

            	
              REPRESENTATIONS
                AND WARRANTIES WITH RESPECT TO SELLER AND THE PURCHASED
                ASSETS

            	
              18

            
	 	
              4.1.

            	
              Organizational
                Matters Regarding Seller and the Wilmington

            	
              18

            
	 	
              4.2.

            	
              Governmental
                Consents

            	
              19

            
	 	
              4.3.

            	
              Financial

            	
              19

            
	 	
              4.4.

            	
              Absence
                of Certain Changes

            	
              20

            
	 	
              4.5.

            	
              Powers
                of Attorney

            	
              20

            
	 	
              4.6.

            	
              Litigation;
                Disputes

            	
              21

            
	 	
              4.7.

            	
              Licenses;
                Compliance With Laws and Regulations

            	
              21

            
	 	
              4.8.

            	
              Title
                to and Condition of Property

            	
              21

            
	 	
              4.9.

            	
              Taxes

            	
              23

            
	 	
              4.10.

            	
              Contracts
                and Commitments

            	
              23

            
	 	
              4.11.

            	
              Intellectual
                Property

            	
              24

            
	 	
              4.12.

            	
              Environmental
                Matters

            	
              26

            
	 	
              4.13.

            	
              Transactions
                with Affiliates; Related Parties

            	
              27

            
	 	
              4.14.

            	
              Benefit
                Plans

            	
              27

            
	 	
              4.15.

            	
              Product
                Warranties; Products

            	
              28

            
	 	
              4.16.

            	
              Inventory

            	
              28

            
	 	
              4.17.

            	
              Accounts
                Receivable and Bad Debts

            	
              29

            
	 	
              4.18.

            	
              Employees

            	
              29

            
	 	
              4.19.

            	
              Necessary
                Property

            	
              29

            
	 	
              4.20.

            	
              Labor

            	
              30

            
	 	
              4.21.

            	
              Guaranties

            	
              31

            
	 	
              4.22.

            	
              Customers
                and Suppliers; Supplies

            	
              31

            
	 	
              4.23.

            	
              Absence
                of Certain Business Practices

            	
              31

            
	 	
              4.24.

            	
              Insolvency

            	
              32

            
	 	
              4.25.

            	
              Banking
                Relationships

            	
              32

            
	 	
              4.26.

            	
              Brokerage

            	
              32

            
	 	
              4.27.

            	
              FIRPTA

            	
              32

            

    

    
      
        
        

      

      
        i

        
          

        

      

       

    

    

    
      	
              5.

            	
              REPRESENTATIONS
                AND WARRANTIES WITH RESPECT TO PURCHASER AND PURCHASER
                PARENT.

            	
              33

            
	 	
              5.1.

            	
              Organizational
                Matters Regarding Purchaser and Purchaser Parent

            	
              33

            
	 	
              5.2.

            	
              Governmental
                Consents

            	
              33

            
	 	
              5.3.

            	
              Litigation

            	
              34

            
	 	
              5.4.

            	
              Brokerage

            	
              34

            
	 	 	 	 
	
              6.

            	
              CLOSING

            	
              34

            
	 	
              6.1.

            	
              Closing
                Date

            	
              34

            
	 	
              6.2.

            	
              Closing
                Deliveries

            	
              34

            
	 	 	 	 
	
              7.

            	
              COVENANTS
                AND AGREEMENTS OF SELLER

            	
              37

            
	 	
              7.1.

            	
              Access
                to Information and Records; Assistance

            	
              37

            
	 	
              7.2.

            	
              Conduct
                of Business Pending the Closing

            	
              37

            
	 	
              7.3.

            	
              Exclusivity

            	
              40

            
	 	
              7.4.

            	
              Interim
                Financial Statements

            	
              41

            
	 	
              7.5.

            	
              Further
                Acts

            	
              41

            
	 	
              7.6.

            	
              Payment
                of Certain Indebtedness

            	
              42

            
	 	
              7.7.

            	
              Restrictive
                Covenants

            	
              42

            
	 	
              7.8.

            	
              Wilmington
                Acquisition

            	
              43

            
	 	
              7.9.

            	
              Enterprise
                Zone Agreement

            	
              43

            
	 	
              7.10.

            	
              State
                Tax Clearances

            	
              43

            
	 	 	 	 
	
              8.

            	
              COVENANTS
                AND AGREEMENTS OF PURCHASER

            	
              43

            
	 	
              8.1.

            	
              Further
                Acts

            	
              43

            
	 	 	 	 
	
              9.

            	
              MUTUAL
                COVENANTS AND AGREEMENTS

            	
              44

            
	 	
              9.1.

            	
              Publicity

            	
              44

            
	 	
              9.2.

            	
              Disclosure
                of Certain Matters.

            	
              44

            
	 	
              9.3.

            	
              Disclosure
                Schedule

            	
              44

            
	 	
              9.4.

            	
              Confidentiality

            	
              45

            
	 	
              9.5.

            	
              Access
                to Information

            	
              46

            
	 	
              9.6.

            	
              Commercially
                Reasonable Efforts; No Delay

            	
              46

            
	 	
              9.7.

            	
              Employees

            	
              46

            
	 	
              9.8.

            	
              Approvals
                and Consents

            	
              49

            
	 	
              9.9.

            	
              Stock
                Purchase Agreement

            	
              49

            
	 	
              9.10.

            	
              Transfer
                Taxes and Fees

            	
              49

            
	 	
              9.11.

            	
              Certain
                Transition Matters

            	
              49

            
	 	 	 	 
	
              10.

            	
              CONDITIONS
                PRECEDENT TO PURCHASER’S AND PURCHASER PARENT’S
                OBLIGATIONS

            	
              50

            
	 	
              10.1.

            	
              Representations
                and Warranties True on the Closing Date

            	
              50

            
	 	
              10.2.

            	
              Compliance
                With Agreement

            	
              50

            
	 	
              10.3.

            	
              Absence
                of Litigation

            	
              50

            
	 	
              10.4.

            	
              Material
                Consents and Approvals

            	
              50

            
	 	
              10.5.

            	
              No
                Material Adverse Effect

            	
              50

            
	 	
              10.6.

            	
              Closing
                Deliveries

            	
              50

            
	 	
              10.7.

            	
              Seller’s
                Audited Financial Statements

            	
              50

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

       

    

    

    
      	 	
              10.8.

            	
              Purchaser’s
                Financing

            	
              50

            
	 	
              10.9.

            	
              Closing
                of Wilmington Transaction

            	
              50

            
	 	
              10.10.

            	
              Stock
                Purchase Agreement

            	
              50

            
	 	
              10.11.

            	
              Additional
                Escrow Agreement

            	
              51

            
	 	 	 	 
	
              11.

            	
              CONDITIONS
                PRECEDENT TO SELLER’S OBLIGATIONS

            	
              51

            
	 	
              11.1.

            	
              Representations
                and Warranties True on the Closing Date

            	
              51

            
	 	
              11.2.

            	
              Compliance
                With Agreement

            	
              51

            
	 	
              11.3.

            	
              Absence
                of Litigation

            	
              51

            
	 	
              11.4.

            	
              Closing
                Deliveries

            	
              51

            
	 	
              11.5.

            	
              Purchase
                Price

            	
              51

            
	 	 	 	 
	
              12.

            	
              TERMINATION
                OF AGREEMENT

            	
              51

            
	 	
              12.1.

            	
              Causes

            	
              51

            
	 	
              12.2.

            	
              Effect
                of Termination

            	
              52

            
	 	
              12.3.

            	
              Right
                to Proceed

            	
              52

            
	 	 	 	 
	
              13.

            	
              SURVIVAL;
                INDEMNIFICATION

            	
              53

            
	 	
              13.1.

            	
              Survival

            	
              53

            
	 	
              13.2.

            	
              Indemnification
                by Purchaser

            	
              53

            
	 	
              13.3.

            	
              Indemnification
                by Seller

            	
              54

            
	 	
              13.4.

            	
              Limitations
                on Indemnification

            	
              54

            
	 	
              13.5.

            	
              Procedures
                for Indemnification

            	
              56

            
	 	
              13.6.

            	
              Procedures
                for Third-Party Claims

            	
              57

            
	 	
              13.7.

            	
              Certain
                Procedures for Environmental Matters

            	
              58

            
	 	
              13.8.

            	
              Exclusive
                Remedy

            	
              59

            
	 	
              13.9.

            	
              Specific
                Performance

            	
              59

            
	 	
              13.10.

            	
              Disposition
                of Reinvestment Shares

            	
              59

            
	 	
              13.11.

            	
              Insurance
                Claims

            	
              60

            
	 	 	 	 
	
              14.

            	
              DISPUTE
                RESOLUTION; GOVERNING LAW; JURISDICTION, ETC.

            	
              60

            
	
              15.

            	
              NOTICE

            	
              63

            
	
              16.

            	
              EXHIBITS

            	
              63

            
	
              17.

            	
              ENTIRE
                AGREEMENT; BINDING EFFECT

            	
              63

            
	
              18.

            	
              HEADINGS

            	
              63

            
	
              19.

            	
              EXPENSES

            	
              63

            
	
              20.

            	
              AMENDMENT

            	
              63

            
	
              21.

            	
              WAIVER

            	
              63

            
	
              22.

            	
              TIME
                OF THE ESSENCE

            	
              64

            
	
              23.

            	
              ASSIGNMENT

            	
              64

            
	
              24.

            	
              NO
                THIRD PARTY BENEFICIARY

            	
              64

            
	
              25.

            	
              COUNTERPARTS;
                FACSIMILE SIGNATURE

            	
              64

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

       

    

     

    TABLE
      OF
      EXHIBITS

    

    
      	
              Exhibit
                A

            	
              Assignment
                and Assumption Agreement and Bill of Sale

            
	
              Exhibit
                B

            	
              Escrow
                Agreement

            
	
              Exhibit
                C

            	
              Stock
                Purchase Agreement (with Registration Rights and
                Lock-Up)

            
	
              Exhibit
                D(i)

            	
              J.
                Conley Restrictive Covenant Agreement

            
	
              Exhibit
                D(ii)

            	
              B.
                VanDeventer Restrictive Covenant Agreement

            
	
              Exhibit
                D(iii)

            	
              B.
                Buonanno Restrictive Covenant Agreement

            
	
              Exhibit
                E

            	
              D’Onofrio
                Consulting Agreement

            
	
              Exhibit
                F

            	
              Pistorio
                Employment Agreement

            
	
              Exhibit
                G

            	
              Vesey
                Employment Agreement

            
	
              Exhibit
                H

            	
              Commitment
                Letter

            
	 	 
	
              TABLE
                OF SCHEDULES

            
	 	 
	
              Schedule
                1.1

            	
              Working
                Capital Calculation

            
	
              Schedule
                1.2

            	
              Non-Material
                Contracts, Leases and Agreements

            
	
              Schedule
                1.3

            	
              Employee
                Bonuses

            
	
              Schedule
                1.4

            	
              Existing
                Benefit Plans

            
	
              Schedule
                1.5

            	
              Ohio
                Owned Real Estate

            
	
              Schedule
                1.6

            	
              Ohio
                Real Estate Additional Liens

            
	
              Schedule
                2.1(b)

            	
              Inventory

            
	
              Schedule
                2.1(e)

            	
              Patents,
                Trademarks and Copyrights

            
	
              Schedule
                2.1(h)

            	
              Transferred
                Insurance Policies

            
	
              Schedule
                2.2(e)

            	
              Retained
                Contracts

            
	
              Schedule
                2.3(c)

            	
              Allocation
                of Purchase Price (to be delivered prior to Closing)

            
	
              Schedule
                3.2

            	
              Certain
                Waivers and Forbearances under Contracts 

            
	
              Schedule
                4.1(a)

            	
              Jurisdictions
                of Qualification

            
	
              Schedule
                4.1(c)

            	
              Compliance;
                Binding Effect

            
	
              Schedule
                4.2

            	
              Government
                Consents

            
	
              Schedule
                4.3

            	
              Financial
                Statements

            
	
              Schedule
                4.4

            	
              Absence
                of Certain Changes

            
	
              Schedule
                4.6(a)

            	
              Current
                Litigation and Disputes

            
	
              Schedule
                4.6(b)

            	
              Certain
                Historical Litigation and Disputes

            
	
              Schedule
                4.7(a)(i)

            	
              Governmental
                Authorizations (Exceptions)

            
	
              Schedule
                4.7(a)(ii)

            	
              Material
                Governmental Authorizations

            
	
              Schedule
                4.7(b)

            	
              Compliance
                with Laws

            
	
              Schedule
                4.8(a)(i)

            	
              Real
                Property (Exceptions)

            
	
              Schedule
                4.8(a)(ii)

            	
              Real
                Property Leases

            
	
              Schedule
                4.8(b)

            	
              Title
                

            
	
              Schedule
                4.8(c)

            	
              Condition

            
	
              Schedule
                4.8(d)

            	
              Insurance
                Policies

            
	
              Schedule
                4.9

            	
              Taxes

            
	
              Schedule
                4.10

            	
              Material
                Contracts and Commitments

            
	
              Schedule
                4.10(c)

            	
              Certain
                Actions (Material Contracts)

            
	
              Schedule
                4.11

            	
              Intellectual
                Property

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

       

    

    

    
      	
              Schedule
                4.12(b)

            	
              Environmental
                Claims

            
	
              Schedule
                4.12(c)

            	
              Environmental
                Violations

            
	
              Schedule
                4.12(f)

            	
              Environmental
                Information

            
	
              Schedule
                4.13

            	
              Related
                Party Transactions

            
	
              Schedule
                4.14

            	
              Benefit
                Plans (Exceptions)

            
	
              Schedule
                4.15

            	
              Products
                and Product Warranties

            
	
              Schedule
                4.16

            	
              Inventory

            
	
              Schedule
                4.17

            	
              Account
                Receivables—Terms of Sale

            
	
              Schedule
                4.18

            	
              Employees

            
	
              Schedule
                4.19

            	
              Necessary
                Property

            
	
              Schedule
                4.20

            	
              Labor

            
	
              Schedule
                4.21

            	
              Guaranties

            
	
              Schedule
                4.22(a)

            	
              Customers
                and Suppliers

            
	
              Schedule
                4.22(b)

            	
              Customers
                and Suppliers (Recent Changes)

            
	
              Schedule
                4.25

            	
              Bank
                Accounts

            
	
              Schedule
                4.26

            	
              Brokers
                (Seller)

            
	
              Schedule
                5.4

            	
              Brokers
                (Purchaser)

            
	
              Schedule
                6.2(a)(xi)

            	
              Payoff
                Indebtedness

            
	
              Schedule
                7.7(c)

            	
              Non-Use
                of Intellectual Property

            
	
              Schedule
                9.7(b)

            	
              Pre-existing
                COBRA Participants

            
	
              Schedule
                9.11

            	
              Certain
                Transition Matters

            
	
              Schedule
                10.4

            	
              Material
                Consents

            
	
              Schedule
                13.4(a)(vii)

            	
              Indemnification

            
	
              Schedule
                13.4(a)(viii)

            	
              Purchaser
                Knowledge

            

    

     

    Purchaser
      Employee 

    
      	
              Schedule
                

            	
              (Referenced
                in Section 9.7(b)) 

              (to
                be delivered prior to Closing)

            

    

     

    
      
        
        

      

      
        v

        
          

        

      

       

    

    ASSET
      PURCHASE AGREEMENT

    

    THIS
      AGREEMENT is made as of September 22, 2006 (the “Effective Date”), by and among
      CRC ACQUISITION CO. LLC, a Delaware limited liability company (“Seller”); NET
      PERCEPTIONS, INC., a Delaware corporation (“Purchaser Parent”); and SIG
      ACQUISITION CORP., a Delaware corporation (“Purchaser”).

    

    RECITALS

    

    Seller
      operates facilities in Chicago Heights, Illinois, Warren, Ohio, and commencing
      upon the closing of the Wilmington Acquisition (as defined herein),
      Philadelphia, Pennsylvania (through the Wilmington Purchaser (as defined
      herein)) which design, manufacture and sell various steel products, including,
      without limitation, the following products: counterweights, elevator weights,
      stage weights, counterbalances, test weights, and crane weights. Purchaser,
      a
      newly formed wholly-owned subsidiary of Purchaser Parent, desires to purchase,
      and Seller desires to sell, substantially all of the assets of the Acquired
      Business (as defined below) upon the terms and subject to the conditions
      hereinafter set forth. 

    

    ACCORDINGLY,
      in consideration of the premises and of the mutual agreements, provisions and
      covenants herein contained, the Parties hereto hereby agree as
      follows:

     

    1.  DEFINITIONS.
      For
      purposes of this Agreement, the following definitions shall apply:

    

    Accountants.
      “Accountants” shall mean the accounting firm of McGladrey & Pullen,
      LLP.

     

    Acquired
      Business.
      “Acquired Business” shall mean the business of designing, manufacturing and
      selling various steel products, including without limitation, the following
      products: counterweights, elevator weights, stage weights, counterbalances,
      test
      weights, and crane weights up to the Closing Date, as conducted by the Seller
      through the Closing Date. 

     

    Affiliate.
      “Affiliate” shall mean with respect to a specified Person, any other Person that
      directly or indirectly controls, is controlled by, or is under common control
      with such Person. For purposes of this definition, the term “control” means the
      possession, directly or indirectly, of the power to (i) vote 50% or more of
      the
      voting securities of such Person or (ii) direct or cause the direction of the
      management and policies of such Person, whether through the ownership of voting
      securities, by contract or otherwise, and the terms and phrases “controlled” and
“controlling” have meanings correlative thereto.

     

    Agreement.
      “Agreement” shall mean this Asset Purchase Agreement.

     

    Ancillary
      Documents.
      “Ancillary Documents” shall mean, once executed and delivered at Closing
      pursuant to the terms hereof, each of the certificates, agreements and
      instruments contemplated to be delivered pursuant to Sections 6.2(a)(i)-(v),
      (vii), and (viii) and Sections 6.2(b)(i)-(v) hereof.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    Annual
      Financial Statements.
“Annual
      Financial Statements” shall mean the unaudited reviewed annual balance sheets
      and profit and loss statements of Seller for the fiscal years ended December
      31,
      2005, 2004 and 2003 attached as Schedule
      4.3
      of the
      Disclosure Schedule.

     

    Audited
      Financial Statements.
      “Audited Financial Statements” shall mean the audited balance sheets and related
      statements of operations, income, equity and cash flows of Seller of and for
      the
      fiscal years ended December 31, 2005, 2004 and 2003, including the notes thereto
      and the audit reports thereon of the Accountants.

     

    Arbitrating
      Accountant.
      “Arbitrating Accountant” shall have the meaning specified in Section 2.4 of this
      Agreement.

     

    Assignment
      and Assumption Agreement and Bill of Sale.
      “Assignment and Assumption Agreement and Bill of Sale” shall mean the assignment
      and assumption agreement and bill of sale in the form of Exhibit
      A
      attached
      hereto.

     

    Assumed
      Liabilities.
      “Assumed Liabilities” shall have the meaning specified in Section 3.1 of this
      Agreement.

     

    Benefit
      Plans.
      “Benefit Plans” shall mean any “employee welfare benefit plan” as defined in
      Section 3(1) of ERISA, any “employee pension benefit plan” as defined in Section
      3(2) of ERISA, and any other pension plan, profit sharing plan, bonus plan,
      deferred compensation plan, incentive compensation plan, stock ownership plan,
      stock purchase plan, stock option plan, stock appreciation plan, employee
      benefit plan, employee benefit policy, retirement plan, fringe benefit program,
      employee insurance plan, severance plan, disability plan, health care plan,
      sick
      leave plan, death benefit plan or any other plan, program or arrangement to
      provide similar benefits, including the provision of retirement income, bonus
      payments, deferred compensation, incentive compensation, severance pay, group
      or
      individual insurance, fringe or other benefits, whether formal, informal, funded
      or unfunded, for former or current employees of the Seller or the Acquired
      Business.

     

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

     

    Closing.
      “Closing” shall mean the conference to be held at 10:00 a.m., Eastern Time, on
      the Closing Date at the offices of Greenberg Traurig, LLP, One International
      Place, Boston, Massachusetts 02110 and Kane Kessler, P.C., 1350 Avenue of the
      Americas, 26th
      Floor,
      New York, New York 10019, or such other time and place as Seller and Purchaser
      may mutually agree, at which the transactions contemplated by this Agreement
      shall be consummated. By agreement of the Parties, the Closing may be effected
      by mail or through escrow.

     

    Closing
      Balance Sheet.
      “Closing Balance Sheet” shall have the meaning specified in Section 2.4(c) of
      this Agreement.

    
      
        
        

      

      
        2

        
          

        

      

       

    

     

    Closing
      Date.
      “Closing Date” shall mean the date specified in Section 6.1 of this
      Agreement.

     

    Closing
      Working Capital.
      “Closing Working Capital” shall mean (i) the sum of the dollar amounts as of the
      Effective Time of those asset accounts of the Seller listed in Section A of
      Schedule
      1.1
      attached
      hereto, less (ii) the sum of the dollar amounts as of the Effective Time of
      those liability accounts of the Seller listed in Section A of Schedule
      1.1
      attached
      hereto, all as determined from the books and records of Seller and in accordance
      with the methodologies and procedures set forth in Schedule
      1.1
      attached
      hereto; provided, that the Closing Working Capital shall not include any of
      the
      assets or liabilities acquired or assumed pursuant to the Wilmington
      APA.

     

    Closing
      Working Capital Adjustment.
      “Closing Working Capital Adjustment” shall have the meaning specified in Section
      2.4(e) of this Agreement.

     

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

     

    Commitment
      Letter.
      “Commitment Letter” shall mean the commitment letter of the proposed lender of
      Purchaser and Purchaser Parent annexed hereto as Exhibit
      H.

     

    Competitive
      Business.
      “Competitive Business” shall collectively mean any business (on a worldwide
      basis) that is engaged in (i) the design, manufacture and sale of (a)
      counterweights, elevator weights, stage weights, counterbalances, test weights
      and crane weights made of any material and (b) steel components for heavy
      equipment as engaged in by the Seller or the Acquired Business at any time
      since
      December 31, 2004, or (ii) any other business competitive with the type of
      business engaged in by the Acquired Business at any time since December 31,
      2004.

     

    Confidential
      Information.
      “Confidential Information” shall mean any confidential or proprietary
      information of the Acquired Business, including (a) trade secrets, designs,
      formulae, drawings, intangible property, diagrams, techniques, research and
      development, specifications, data, know-how, formats, marketing plans, business
      plans, budgets, strategies, forecasts and client data; (b) information relating
      to the products developed by the Acquired Business; (c)(i) the names of the
      Acquired Business’ customers and contacts, (ii) the Acquired Business’ marketing
      strategies, (iii) the names of the Acquired Business’ vendors and suppliers,
      (iv) the Acquired Business’ cost of materials and labor, (v) the Acquired
      Business’ prices obtained for services sold (including the methods used in price
      determination, manufacturing and sales costs), (vi) compensation paid to
      employees and consultants and other terms of employment, (vii) production
      operation techniques or any other confidential information of, about or
      pertaining to the business of the Acquired Business, and (viii) any other
      material business information and materials relating to material customers
      or
      vendors of the Acquired Business; (d) all tangible material that embodies any
      confidential and proprietary information as well as all records, files,
      memoranda, reports, price lists, drawings, plans, sketches and other written
      and
      graphic records, documents, equipment, and the like, relating to the business
      of
      the Acquired Business and (e) any other confidential information or trade
      secrets relating to the business or affairs of the Acquired Business; provided,
      however, that “Confidential Information” shall not include any information (1)
      that is or shall become generally available to the public other than as a result
      of an unauthorized disclosure by a party to this Agreement or a Person to whom
      a
      party has provided such information, (2) that was available to a party to this
      Agreement on a non-confidential basis prior to its disclosure by one party
      to
      the other pursuant to this Agreement as evidenced by such other party’s records
      on the date of such disclosure, (3) that is disclosed by the other party in
      any
      legal proceeding requiring any such disclosure, (4) as otherwise required by
      Law, or (5) as is reasonably necessary for any party hereto to enforce its
      rights under this Agreement; provided, that in each instance of (3), (4) and
      (5)
      the party disclosing such information shall provide such other party with notice
      and a reasonable opportunity to obtain a protective order preventing or limiting
      the disclosure of such information.

     

    
      
        
        

      

      
        3

        
          

        

      

       

    

     

    Contracts.
      “Contracts” shall mean (i) all outstanding purchase and sales orders for the
      Acquired Business entered into by Seller in the ordinary course of business,
      (ii) all of the Material Contracts, (iii) the Wilmington APA and (iv) the other
      contracts, leases and agreements listed on Schedule
      1.2
      attached
      hereto.

     

    Defect.
      “Defect” shall mean a defect or impurity, whether in design, manufacture,
      processing, or otherwise, including any dangerous propensity associated with
      any
      reasonably foreseeable use of a Product, or the failure to warn of the existence
      of any defect, impurity, or dangerous propensity, other than, in each instance,
      the use of non-standard bulk steel in the ordinary course of business of the
      Acquired Business used solely for the purpose of bulk weight in
      counterweights.

     

    Disclosure
      Schedule.
      “Disclosure Schedule” shall mean the Disclosure Schedule, dated the date of this
      Agreement, delivered by Seller to Purchaser contemporaneously with the execution
      and delivery of this Agreement, and as the same may be updated from time to
      time
      after the date of this Agreement and prior to the Closing Date in accordance
      with the terms of this Agreement. 

     

    D’Onofrio
      Consulting Agreement.
      “D’Onofrio Consulting Agreement” shall mean the Consulting Agreement between the
      Purchaser and Gene D’Onofrio in substantially the form of Exhibit
      E
      attached
      hereto.

     

    Effective
      Date.
      “Effective Date” shall have the meaning set forth in the introductory paragraph
      hereof. 

     

    Effective
      Time.
      “Effective Time” shall mean 11:59 p.m. Eastern Time on the Closing Date, subject
      to the occurrence of the Closing.

     

    Employee
      Bonuses. “Employee
      Bonuses” shall mean the bonuses that Seller has promised to certain Employees in
      connection with the consummation of the transactions contemplated hereby as
      further set forth and described on Schedule
      1.3
      hereof.

     

    Employees.
      “Employees” shall mean the Persons who are employed by Seller to operate the
      Acquired Business, including without limitation employees on temporary leave
      of
      absence, including family and medical leave, military leave, temporary
      disability or sick leave. 

     

    Employment
      and Consulting Agreements.
      “Employment and Consulting Agreements” shall mean collectively, the D’Onofrio
      Consulting Agreement, the Pistorio Employment Agreement and the Vesey Employment
      Agreement.

    
      
        
        

      

      
        4

        
          

        

      

       

    

     

    Environmental
      Claim.
      “Environmental Claim” shall mean any claim, action, cause of action, order,
      suit, demand, lien, request for information, proceeding, investigation or notice
      by any third Person alleging liability arising out of, based on or resulting
      from (i) the presence (or alleged presence) or release (or alleged release)
      into
      the environment of any Material of Environmental Concern at any location or
      any
      remediation (or proposed remediation) thereof, or (ii) circumstances forming
      the
      basis of any violation (or alleged violation) of any Environmental Law or
      Environmental Government Authorization.

     

    Environmental
      Laws.
      “Environmental Laws” shall mean all Laws, contracts with, or Orders by a
      Governmental Authority to which the Seller or the Acquired Business is a party
      or otherwise bound, in each instance relating to pollution or protection of
      human health or the environment (including ambient air, surface water, ground
      water, land surface or subsurface strata), including Laws relating to emissions,
      discharges, releases or threatened releases of Materials of Environmental
      Concern, or to the generation, manufacture, processing, distribution, use,
      treatment, storage, disposal, transport or handling of Materials of
      Environmental Concern.

     

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

     

    Escrow
      Agent.
“Escrow
      Agent” shall mean The Bank of New York, as escrow agent.

     

    Escrow
      Agreement.
“Escrow
      Agreement” means the escrow agreement among Seller, the Escrow Agent and
      Purchaser in substantially the form of Exhibit
      B
      attached
      hereto.

     

    Escrow
      Amount.
“Escrow
      Amount” shall mean $2,000,000.

     

    Estimated
      Closing Balance Sheet.
      “Estimated Closing Balance Sheet” shall have the meaning set forth in Section
      2.4(a). 

     

    Existing
      Confidentiality Agreement.
      “Existing Confidentiality Agreement” shall mean the existing confidentiality
      agreement by and between Purchaser Parent and Riparian Partners, Ltd. applicable
      to the Seller and the Acquired Business and dated May 30, 2006.

     

      Existing
      Plans.
      “Existing Plans” shall mean the existing Benefit Plans of Seller applicable to
      the Acquired Business listed and described on Schedule
      1.4
      attached
      hereto.

     

    Financial
      Statements.
      “Financial Statements” shall mean the Annual Financial Statements, the Interim
      Financial Statements, collectively, as well as, effective upon delivery to
      Purchaser at or prior to Closing, the Audited Financial Statements.

     

    GAAP.
“GAAP”
      shall mean United States generally accepted accounting principles, consistently
      applied.

     

    Governmental
      Authority.
      “Governmental Authority” shall mean (i) any government or any agency, bureau,
      board, commission, court, department, official, political subdivision, tribunal
      or other instrumentality thereof, whether international, federal, state or
      local, domestic or foreign (including any state or local attorney general),
      and
      (ii) any third-party arbitrator or third-party mediator to which such Person
      is
      bound by contract, Law or otherwise.

     

    
      
        
        

      

      
        5

        
          

        

      

       

    

     

    Governmental
      Authorizations.
      “Governmental Authorizations” shall have the meaning specified in Section 4.7(a)
      of this Agreement. 

     

    Guaranty.
      “Guaranty” shall mean, as to any Person, all liabilities or obligations of such
      Person with respect to any indebtedness or other obligations of any other Person
      that have been guaranteed, directly or indirectly, in any manner by such Person,
      through an agreement, contingent or otherwise, to purchase such indebtedness
      or
      obligation, or to purchase or sell property or services, primarily for the
      purpose of enabling the debtor to make payment of such indebtedness or
      obligation or to guarantee the payment to the owner of such indebtedness or
      obligation against loss, or to supply funds to or in any manner invest in the
      debtor, or otherwise.

     

    Hired
      Purchaser Employees.
“Hired
      Purchaser Employees” shall have the meaning specified in Section 9.7 of this
      Agreement. 

     

    Indemnified
      Party.
      “Indemnified Party” shall have the meaning specified in Section 13.5(a) of this
      Agreement.

     

    Indemnifying
      Party.
      “Indemnifying Party” shall have the meaning specified in Section 13.5(a) of this
      Agreement.

     

    Intellectual
      Property.
      “Intellectual Property” shall mean any United States, foreign, international and
      state patents and patent applications, and continuations, reissues, divisions,
      or disclosures relating thereto, industrial design registrations, certificates
      of invention and utility models (collectively, “Patents”); trademarks, service
      marks, and trademark or service mark registrations and applications, trade
      names, trade dress, fictitious names, assumed names, logos, slogans, and general
      intangibles of like nature, together with all goodwill related to the foregoing
      (collectively, “Trademarks”); internet domain names; copyrights, copyright
      registrations, renewals and applications for copyright registrations, and mask
      works (collectively, “Copyrights”); Software; and technology, trade secrets and
      know-how, proprietary processes, formulae, algorithms, models and methodologies
      (collectively, “Trade Secrets”).

     

    Interim
      Financial Statements.
      “Interim Financial Statements” shall mean the unaudited, internally prepared
      interim financial statements (balance sheet and profit and loss statement)
      of
      the Seller for the six-month period beginning January 1, 2006 through June
      30,
      2006 attached as part of Schedule
      4.3
      of the
      Disclosure Schedule together with the internally prepared interim financial
      statements (balance sheet and profit and loss statement) of the Seller for
      the
      period beginning July 1, 2006 through the end of the calendar month immediately
      preceding the Closing Date to be provided to Purchaser pursuant to Section
      7.4.

     

    Knowledge
      of Seller.
      “Knowledge of Seller” and terms of similar import shall mean the actual
      knowledge of each of the following persons: Gene D’Onofrio, John Pastor, Paul
      Vesey, Brendan P. VanDeventer, Bernard Buonanno, Jr. and John
      Conley.

     

    Law.
“Law”
      shall mean, with respect to any Person, any statute, law, rule, regulation,
      ordinance, treaty, administrative action, Order, or other requirement of any
      Governmental Authority (including those requirements imposed by common law),
      applicable to such Person (or any of its properties or assets) or any of its
      members, managers, officers, directors, employees, consultants or agents in
      connection with activities taken on behalf of such Person, as
      amended.

     

    
      
        
        

      

      
        6

        
          

        

      

       

    

     

    Leased
      Real Property.
“Leased
      Real Property” shall mean the real property located at 2521 State Street,
      Chicago Heights, Illinois that is leased by Seller as lessee pursuant to a
      lease
      dated January 15, 2002, by and between Seller and S&S Steel Warehouse,
      Inc.

     

    Liability.
      “Liability” shall mean any direct or indirect indebtedness, claim, loss, damage,
      deficiency, obligation or other liability, known or unknown, fixed or unfixed,
      choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued,
      absolute, contingent or otherwise, whether or not of a kind required by GAAP
      to
      be set forth on a financial statement.

     

    Lien.
“Lien”
      shall mean any lien, pledge, mortgage, deed of trust, security interest, claim,
      charge, option, easement, right of way, imperfections of title, squatters’
rights, covenant, condition, restriction, encroachment or other survey defect,
      transfer or title restriction, voting trust agreement or other encumbrance
      (whether arising by contract or by operation of Law).

     

    Losses.
      “Losses” shall mean damages, liabilities, claims, actions, judgments, losses, or
      costs and expenses of whatever kind or nature (including reasonable attorneys’
fees); provided, however, that Losses shall not include a diminution in the
      stock price of any Affiliate of the Purchaser whose shares are publicly traded
      or punitive damages.

     

    Material
      Adverse Effect.
      “Material Adverse Effect” shall mean any change, effect, event or circumstance,
      that individually or in the aggregate is or would reasonably be expected to
      be
      materially adverse to (i) the assets, properties, business, prospects or
      condition (financial or otherwise), Liabilities or results of operations of
      the
      Acquired Business or the Purchased Assets; (ii) the relations of the Acquired
      Business with any of its material contractors, customers or suppliers; or (iii)
      the ability of the Seller to perform its obligations hereunder; provided, that
      “Material Adverse Effect” shall not include (a) changes in business conditions
      affecting (1) the industry in which the Acquired Business operates in general
      and not specifically relating to the Acquired Business, and (2) the steel,
      building or heavy construction industries, (b) changes in the economy in
      general, (c) the enactment of any Law of general application not specifically
      relating to the Acquired Business, or (d) the transactions contemplated by
      this
      Agreement (including any announcement relating to this Agreement or the fact
      that Purchaser is the purchaser of the Purchased Assets and will operate the
      Acquired Business).

     

    Material
      Consents.
      “Material Consents” shall have the meaning set forth in Section 10.4 of this
      Agreement.

     

    Material
      Contracts.
      “Material Contracts” shall have the meaning set forth in Section 4.10
      hereof.

     

    Material
      Customers and Suppliers.
      “Material Customers and Suppliers” shall have the meaning set forth in Section
      4.22 of this Agreement.

     

    Material
      Disclosure Schedule Change.
      “Material Disclosure Schedule Change” shall have the meaning set forth in
      Section 9.3(b) of this Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

       

    

    Materials
      of Environmental Concern.
      “Materials of Environmental Concern” shall mean (i) any substance or material
      that is on the Closing Date prohibited, controlled or regulated by any
      Governmental Authority under Environmental Law as “hazardous”, “hazardous
      substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous
      substances,” “restricted hazardous wastes,” “toxic substances,” “toxic
      pollutants,” “pollutants,” “contaminants,”, “solid wastes,” “special wastes,” or
      words of similar import under any Environmental Laws, (ii) to the extent not
      including in the foregoing, (a) any petroleum or any products, byproducts or
      fractions thereof, (b) asbestos in any form, (c) urea formaldehyde foam
      insulation, (d) any form of natural gas, explosives, PCBs, lead, lead based
      paint, radon or other radioactive material, and (e) any chemicals, materials
      or
      substances (including waste materials, raw materials, byproducts, co-products
      or
      finished products) and (iii) any other substances of any kind regulated or
      forming the basis of Liability under any Environmental Law.

     

    Negative
      Closing Date Adjustment Amount.
      “Negative Closing Date Adjustment Amount” shall have the meaning specified in
      Section 2.4(b) of this Agreement.

     

    Non-Assumed
      Liabilities.
      “Non-Assumed Liabilities” shall have the meaning specified in Section 3.4 of
      this Agreement.

     

    Ohio
      Real Estate.
“Ohio
      Real Estate” shall mean the real estate owned by Seller located in Warren, Ohio
      described on Schedule
      1.5
      attached
      hereto, together with all buildings, structures, improvements and fixtures
      thereon and all of Seller’s rights pertaining thereto.

     

    Order.
“Order”
      shall mean any judgment, decree, order, writ, injunction, permit or license
      of
      any Governmental Authority.

     

    Ordinary
      Course of Business.
      “Ordinary Course of Business”, whether capitalized or not, shall mean, for any
      Person, the ordinary course of business of such Person, consistent with past
      custom and practice (including with respect to quantity and
      frequency).

     

    Outside
      Closing Date.
      “Outside Closing Date” shall mean October 16, 2006 (or such date as it may be
      extended through pursuant to Section 12.1(b)(ii)).

     

    Parties.
      “Parties” shall mean, collectively, Purchaser, Purchaser Parent and
      Seller.

     

    Permitted
      Encumbrances.
      “Permitted Encumbrances” shall mean any and all (i) mechanics’ liens, workmen’s
      liens, statutory liens of landlords, common carrier liens, warehousemen’s liens
      and other similar liens, and liens arising under worker’s compensation,
      unemployment insurance, social security, retirement and similar legislation,
      in
      each instance to the extent incurred in the Ordinary Course of Business; (ii)
      any and all matters of record, zoning, variances, encumbrances, restrictions,
      easements or other imperfections of title or Liens on the Owned Property, the
      Leased Real Property or any other of the Purchased Assets which does not
      materially diminish the value thereof or materially interfere with the use
      thereof in the operations of the Acquired Business as presently conducted and
      as
      proposed to be conducted or the sale or transfer thereof; (iii) liens for Taxes
      not yet due and payable; and (iv) solely with respect to the Ohio Real Estate,
      the matters set forth on Schedule
      1.6,
      each of
      which, to the Knowledge of Seller do not (a) materially diminish the value
      of
      the Ohio Real Estate based on the current use of Seller or (b) materially
      interfere with the use thereof in the operations of the Acquired Business as
      presently conducted by Seller.

     

    
      
        
        

      

      
        8

        
          

        

      

       

    

     

    Person.
      “Person” shall mean a natural person, corporation, trust, partnership, limited
      liability company, Governmental Authority, agency or branch or department
      thereof, or any other legal entity.

     

    Pistorio
      Employment Agreement.
      “Pistorio Employment Agreement” shall mean the Employment Agreement between the
      Purchaser and John Pistorio in substantially the form of Exhibit
      F
      attached
      hereto.

     

    Positive
      Closing Date Adjustment Amount.
      “Positive Closing Date Adjustment Amount” shall have the meaning specified in
      Section 2.4(b) of this Agreement.

     

    Positive
      Closing Date Adjustment Cap.
      “Positive Closing Date Adjustment Cap” shall have the meaning specified in
      Section 2.4(b) of this Agreement.

     

    Pre-existing
      COBRA Participants.
      “Pre-existing COBRA Participants” shall have the meaning specified in Section
      9.7(b) of this Agreement.

     

    Product.
      “Product” shall mean any product designed, manufactured, shipped, sold,
      marketed, distributed and/or otherwise introduced into the stream of commerce
      by
      or on behalf of the Seller or the Acquired Business, including any product
      sold
      by the Acquired Business or the Seller as distributor, agent, or pursuant to
      any
      other contractual relationship.

     

    Purchase
      Price.
      “Purchase Price” shall mean the total purchase price paid by Purchaser to Seller
      for the Purchased Assets as provided in Section 2.3 of this
      Agreement.

     

    Purchased
      Assets.
      “Purchased Assets” shall mean the assets of Seller purchased by Purchaser
      pursuant to Section 2.1 of this Agreement.

     

    Reinvestment
      Share Price.
      “Reinvestment Share Price” shall mean eighty-five cents ($0.85) per share of
      Purchaser Parent’s voting common stock, $0.0001 par value.

     

    Reinvestment
      Shares.“Reinvestment
      Shares” shall mean 3,529,412 shares of the Purchaser Parent’s unregistered
      voting common stock, $0.0001 par value.

     

    Release.
      “Release” shall have the meaning set forth in Comprehensive Environmental
      Response, Compensation and Liability Act, 42 USC §9601 et seq., as in effect on
      the date hereof.

     

    Reporting
      Requirements.
      “Reporting Requirements” shall have the meaning set forth in Section 7.2(b) of
      this Agreement.

     

    Retained
      Assets.
      “Retained Assets” shall mean the assets of Seller listed and described in
      Section 2.2 of this Agreement.

     

    Riparian.
      “Riparian” shall mean Riparian Partners, Ltd., a Rhode Island
      corporation.

     

    
      
        
        

      

      
        9

        
          

        

      

       

    

     

    Seller
      Principals.
“Seller
      Principals” shall mean each of Brendan P. VanDeventer, Bernard Buonanno, Jr. and
      John Conley.

     

    Software.
      “Software” shall mean any and all (i) computer programs, including any and all
      software implementations of algorithms, models and methodologies, whether in
      source code or object code form, (ii) databases, compilations, and any other
      electronic data files, including any and all collections of data, whether
      machine readable or otherwise, (iii) descriptions, flow-charts, technical and
      functional specifications, and other work product used to design, plan,
      organize, develop, test, troubleshoot and maintain any of the foregoing, (iv)
      without limitation to the foregoing, the software technology supporting any
      functionality contained on the Internet site(s), of the Acquired Business,
      (v)
      all computer-aided design software, including the underlying data, and (vi)
      all
      documentation, including technical, end-user, training and troubleshooting
      manuals and materials, relating to any of the foregoing.

     

    Stock
      Purchase Agreement.
“Stock
      Purchase Agreement” shall mean the Stock Purchase Agreement between Purchaser
      Parent and Seller in the form of Exhibit
      C
      attached
      hereto pursuant to which Seller will purchase all of the Reinvestment Shares
      at
      the Reinvestment Share Price at Closing.

     

    Taxes.
“Taxes”
      shall mean all taxes of any kind, levies or other like assessments, customs,
      duties, tariffs, imposts or charges, including without limitation, income,
      gross
      receipts, ad valorem, value-added, excise, real or personal property, asset,
      sales, use, license, payroll, transaction, capital, net worth, franchise taxes
      (if not based on income), estimated taxes, withholding, employment, social
      security, workers’ compensation, utility, severance, production, unemployment
      compensation, occupation, premium, windfall profits, transfer and gains taxes
      or
      other governmental taxes imposed or payable to the United States, or any state,
      county, local or foreign government or subdivision or agency thereof, and in
      each instance such term shall include any interest, penalties or additions
      to
      tax attributable to any such Tax, whether disputed or not.

     

    Tax
      Returns.
“Tax
      Returns” shall mean all returns, declarations, reports, claims for refund and
      information returns and statements of any Person required to be filed or sent
      by
      or with respect to it in respect of any Taxes, including any schedule or
      attachment thereto and any amendment thereof.

     

    Third
      Party Claim.
“Third
      Party Claim” shall have the meaning specified in Section 13.6(a) of this
      Agreement.

     

    Union
      Agreement.
“Union
      Agreement” means the collective bargaining agreement between Seller and United
      Steelworkers Union of America, AFL-CIO-CLC, effective September 1,
      2005.

     

    Vesey
      Employment Agreement.
       “Vesey
      Employment Agreement” shall mean the Employment Agreement between the Purchaser
      and Paul Vesey in substantially the form of Exhibit
      G
      attached
      hereto.

     

    WARN
      Act.
“WARN
      Act” shall mean the federal Worker Adjustment and Retraining Notification Act of
      1988, as amended.

     

    
      
        
        

      

      
        10

        
          

        

      

       

    

     

    Wilmington.
      “Wilmington” shall mean Wilmington Steel Processing Co., Inc.

     

    Wilmington
      Acquisition.
      “Wilmington Acquisition” shall mean the acquisition of certain of the assets and
      liabilities of Wilmington and the Wilmington Business by the Wilmington
      Purchaser and the Seller, as applicable, pursuant to the Wilmington Transaction
      Documents. 

     

    Wilmington
      Acquisition Costs.
      “Wilmington Acquisition Costs” shall mean the sum of (i) the amount paid by the
      Wilmington Purchaser to Wilmington pursuant to the Wilmington APA, (ii) the
      indebtedness of Wilmington assumed by the Wilmington Purchaser pursuant to the
      Wilmington APA, (iii) the Wilmington Pursuit Costs, and (iv) the Wilmington
      Broker Fee, in each instance to the extent either (i) paid by the Wilmington
      Purchaser prior to the Closing Date (as reasonably documented) or (ii) reflected
      as a liability in the Closing Working Capital.

     

    Wilmington
      APA.
      “Wilmington APA” shall mean that certain Asset Purchase Agreement by and between
      the Seller, Wilmington and the Wilmington Purchaser dated as of September 19,
      2006, pursuant to which the Wilmington Purchaser will purchase the Wilmington
      Assets, and assume certain liabilities of Wilmington. 

     

    Wilmington
      Assets.
      “Wilmington Assets” shall mean those assets contemplated to be purchased by the
      Wilmington Purchaser pursuant to the Wilmington APA, or by the Seller pursuant
      to the Wilmington PSA. 

     

    Wilmington
      Business.
      “Wilmington Business” shall have the same meaning as set forth in the definition
      of “Competitive Business” in the Wilmington APA, as such business is conducted
      by Wilmington through the Wilmington Closing Date. 

     

    Wilmington
      Broker Fee.
      “Wilmington Broker Fee” shall mean the $100,000 broker fee due to Riparian upon
      the acquisition of the Wilmington Assets pursuant to the Wilmington
      APA.

     

    Wilmington
      Closing Date.
      “Wilmington Closing Date” shall mean the “Final Closing Date” as defined in the
      Wilmington APA. 

     

    Wilmington
      PSA.
      “Wilmington PSA” shall mean that certain Production Services Agreement dated
      September 8, 2006, by and between Seller and Wilmington dated as of September
      8,
      2006, as assigned to the Wilmington Purchaser on September 19, 2006.

     

    Wilmington
      Purchaser.
      “Wilmington Purchaser” means CRC Wilmington Acquisition, LLC, a Delaware limited
      liability company and wholly-owned subsidiary of Seller.

     

    Wilmington
      Purchaser Equity Interests.
      “Wilmington Purchaser Equity Interests” means 100% of the equity interests of
      the Wilmington Purchaser.

     

    Wilmington
      Pursuit Costs.
      “Wilmington Pursuit Costs” shall mean all out of pocket costs and expenses
      (including, but not limited to, legal fees, travel expenses and other due
      diligence related expenses and costs) incurred by Seller in connection with
      the
      acquisition or attempted acquisition of Wilmington, including all costs
      associated with the negotiation and drafting of the Wilmington APA and the
      Wilmington PSA and all documents contemplated therein.

     

    
      
        
        

      

      
        11

        
          

        

      

       

    

     

    Wilmington
      Seller.
      “Wilmington Seller” means Wilmington Steel Processing Co., Inc., a Delaware
      corporation. 

     

    Wilmington
      Transaction Documents.
      “Wilmington Transaction Documents” means the Wilmington APA, the Wilmington PSA
      and each of the documents, agreements and instruments contemplated to be
      delivered by the parties thereto at the closing of the Wilmington Acquisition
      pursuant to the Wilmington APA.

     

    Work
      Interference.
“Work
      Interference” shall have the meaning set forth in Section 4.20(b) of this
      Agreement.

     

    Working
      Capital Target.
      “Working Capital Target” shall have the meaning set forth in Section 2.4(b) of
      this Agreement.

     

    2.  PURCHASE
      AND ASSIGNMENT OF ASSETS OF SELLER.

     

    2.1.  Assets
      Purchased.
      Subject
      to and upon the terms and conditions set forth in this Agreement, and except
      as
      provided in Section 2.2 hereof, on the Closing Date Seller will sell, transfer,
      assign, convey and deliver to Purchaser and Purchaser will accept, acquire
      and
      succeed to, all right, title and interest in and to (i) the Wilmington Purchaser
      Equity Interests and (ii) the property and assets of the Acquired Business
      as a
      going concern (including, without limitation, the assets specified in (a) -
      (h)
      below), and all goodwill related thereto, in each instance free and clear of
      all
      Liens, except for Permitted Encumbrances, as of the Effective Time:

     

    
      (a)  Personal
        Property.
        All
        tangible personal property used in the operation of the Acquired Business
        including fixed assets, machinery, equipment, machine tools, tools, tooling,
        parts, dies, molds, furniture, fixtures, furnishings, office equipment,
        computers, leasehold improvements and vehicles, including all such personal
        property that is capitalized on the books and records of the Seller as of
        the
        date hereof and as of the Closing Date;

    

     

    
      (b)  Inventories.
        All
        inventories of raw materials, work in process, finished goods, and parts
        and
        supplies, a summary of which, by category and dollar value, as of August
        31,
        2006 is attached hereto as Schedule
        2.1(b);
        

    

     

    
      (c)  Contracts.
        The
        Contracts; 

    

     

    
      (d)  Accounts
        Receivable.
        All
        accounts receivable relating to the Acquired Business and the Purchased
        Assets;

    

     

    
      (e)  Intangible
        Property.
        All (i)
        Trademarks, Patents and Copyrights (including internet domain names) of the
        Seller relating to the Acquired Business and the Purchased Assets, all of
        which
        are set forth on Schedule
        2.1(e)
        attached
        hereto, (ii) all other Intellectual Property of the Seller relating to the
        Acquired Business (subject to, with respect to Software, the limitations
        set
        forth on Schedule
        4.11
        attached
        hereto) and (iii) all employee invention and secrecy agreements; technical
        know-how; drawings, models, prints and sketches used in connection with the
        manufacture and sale of the Seller’s products; unexpired equipment, construction
        and other warranties; customer lists, sales and purchasing lists, sales records,
        sales leads; licenses, approvals, memberships, agencies and permits; Seller’s
        secrecy, non-disclosure, non-solicitation and privacy agreements; and telephone,
        telex and telephone facsimile numbers and other directory listings;

    

     

    
      
        
        

      

      
        12

        
          

        

      

       

    

     

    
      (f)  Records.
        All
        books, manuals, records and files, correspondence, logs, technical records,
        research and development files, and sales and promotional materials and records
        primarily relating to the Acquired Business and the Purchased
        Assets;

    

     

    
      (g)  Ohio
        Real Estate.
        The
        Ohio Real Estate; and 

    

     

    
      (h)  Life
        Insurance Policies.
        The
        key-man life insurance policies set forth on Schedule
        2.1(h)
        hereto.

    

     

    2.2.  Retained
      Assets.
      Seller
      shall retain and not sell and deliver to Purchaser pursuant to Section 2.1,
      and
      Purchaser shall not purchase from Seller, the following assets of Seller even
      though the following assets may be used in the operation of the Acquired
      Business: 

     

    (a) Cash
      and
      cash accounts, short-term investments, marketable securities and other cash
      equivalents; 

     

    (b) Seller’s
      franchise to be a limited liability company, organizational documents and minute
      books;

     

    (c) Seller’s
      cancelled checks, bank statements, Tax Returns and accounting
      records;

     

    (d) All
      deferred finance and acquisition costs;

     

    (e) Rights
      under the contracts and leases listed on Schedule
      2.2(e)
      attached
      hereto;

     

    (f) Except
      with respect to the policies set forth on Schedule
      2.1(h),
      all
      insurance policies and rights to refunds thereunder;

     

    (g) Any
      rights to refunds with respect to Taxes and any Tax credit, Tax deductions
      and
      pre-paid Taxes, including, but not limited to, any deduction with respect to
      the
      capitalized costs of internally developed software pertaining to the wide area
      network, in each instance relating to periods ending on or prior to the Closing
      Date;

     

    (h) Seller’s
      rights to the original lease deposit of approximately $30,000 (but not the
      parking lot repair security deposit) for the Leased Real Property to the extent
      that such deposit (i) is not assigned at Closing to the Purchaser and credited
      to the account of Seller or (ii) is set forth as an asset on the Closing Working
      Capital; and 

     

    (i) Seller’s
      rights under this Agreement.

    
      
        
        

      

      
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    2.3.  Purchase
      Price and Costs.
      

     

    (a) Amount.
      The
      Purchase Price to be paid by Purchaser to Seller for the Purchased Assets shall
      be an amount equal to the sum of the following:

     

    (i) $40,000,000;
      plus 

     

    (ii) the
      Wilmington Acquisition Costs (irrespective of whether Seller consummates the
      Wilmington Acquisition); plus or minus, respectively

     

    (iii) the
      Positive Closing Date Adjustment Amount or the Negative Closing Date Adjustment
      Amount, as applicable (subject to the terms and conditions set forth in Section
      2.4); plus or minus 

     

    (iv) the
      prorations to be made on the Closing Date pursuant to Section 2.3(d), as
      applicable.

     

    (b) Payment.
      Subject
      to the post-closing adjustment provided for in Section 2.4 below, if any, and
      the prorations provided for in Section 2.3(d) below, if any, the Purchase Price
      shall be payable as follows: 

     

    (i) At
      Closing, Purchaser shall (i) pay the Purchase Price less the Escrow Amount
      by
      wire transfer of immediately available funds to or on behalf of Seller pursuant
      to instructions delivered to Purchaser no later than one (1) Business Day prior
      to the Closing Date, and (ii) deposit the Escrow Amount with the Escrow Agent
      to
      be held in accordance with the provisions of Escrow Agreement; and

     

    (ii) At
      Closing, Purchaser shall assume the Assumed Liabilities as provided in Section
      3.1 below by executing the Assignment and Assumption Agreement and Bill of
      Sale.

     

    Notwithstanding
      any provision of Section 2.3(b)(i) above, at Seller’s written direction,
      Purchaser and Purchaser Parent may set off the Reinvestment Amount from the
      Purchase Price in consideration for the issuance and delivery of the
      Reinvestment Shares at the simultaneous closing of the Stock Purchase Agreement
      at the Closing.

     

    (c) Allocation.
      Seller
      and Purchaser agree that for purposes of this Agreement and the treatment for
      tax purposes of the transactions contemplated by this Agreement, the Purchase
      Price shall be allocated to the Wilmington Purchaser Equity Interests and the
      Purchased Assets and reported in accordance with Schedule
      2.3(c),
      which
      schedule shall be prepared and agreed upon by the Parties at or prior to Closing
      based on the Purchased Assets set forth on the Estimated Closing Balance Sheet
      and thereafter based on post-closing adjustments to the Purchase Price and
      the
      Closing Balance Sheet, if any. Schedule
      2.3(c)
      shall be
      prepared in accordance with U.S. Internal Revenue Service requirements and
      the
      applicable provisions of the Code. Neither Purchaser nor Seller shall take
      a
      position which is inconsistent with the allocation set forth in Schedule
      2.3(c)
      unless
      required to do so under applicable Law.

     

    (d) Closing
      Prorations.
      To the
      extent not included in the Assumed Liabilities, the following closing prorations
      and expenses shall be computed as of the Effective Time and paid by Seller
      or
      Purchaser, as the case may be, as follows: (A) personal property and real estate
      Taxes, installment payments of special assessment liens, sewer charges, utility
      charges and normally prorated operating expenses actually billed or paid as
      of
      the Closing Date; and (B) amounts owed by Seller or paid under the Contracts,
      if
      any, as of the Closing Date shall be prorated as of the Closing Date and be
      adjusted against the Purchase Price due at Closing; provided, that within sixty
      (60) days after the Closing, Purchaser and Seller will make a further adjustment
      for such taxes or charges which may have accrued or been incurred prior to
      the
      Closing Date, but which had not been billed or paid at that date and to the
      extent any amounts are outstanding under (A) and (B) above, and upon receipt
      of
      payment by Seller of such adjustment in Purchaser’s favor, Purchaser will be
      responsible for and pay any amounts due and owing. All prorations shall be
      made
      on the basis of number of days elapsed before and after Closing for the period
      that such amount is owing (with Seller being deemed the owner of the Acquired
      Business for the entire Closing Date), a 365-day calendar year, and the actual
      number of days in the applicable month. 

     

    
      
        
        

      

      
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    (e) Costs.
      The
      Parties agree that they shall each be responsible for any fees and disbursements
      of counsel and any other consultants that they have engaged in connection with
      the transactions contemplated hereunder. Purchaser shall be solely responsible
      for any and all title insurance premiums and title insurance costs related
      to
      the Ohio Real Estate. Purchaser and Seller shall split (i) any and all fees
      and
      costs charged by the Escrow Agent in connection with its obligations under
      the
      Escrow Agreement and (ii) any and all recording fees, transfer taxes or any
      other fees or costs related to the transfer of the Ohio Real Estate to Purchaser
      . 

     

    2.4.  Closing
      and Post-Closing Adjustment.
      

     

    (a) Estimated
      Closing Balance Sheet.
      Seller
      will prepare or cause to be prepared in good faith and delivered to Purchaser
      two Business Days prior to the Closing Date, an estimated closing balance sheet
      for the Acquired Business containing the Purchased Assets and the Assumed
      Liabilities and setting forth in reasonable detail its estimate of the net
      book
      value of the Purchased Assets as of immediately prior to the Effective Time
      and
      the book amount of the Assumed Liabilities as of immediately prior to the
      Effective Time, which shall include an estimate with respect to each account
      required in determining the Closing Working Capital (such balance sheet is
      referred to herein as the “Estimated Closing Balance Sheet”), which shall be
      prepared in form reasonably satisfactory to Purchaser. The Estimated Closing
      Balance Sheet will be prepared in accordance with GAAP, the books and records
      of
      the Seller and the methodologies and procedures set forth in Schedule
      1.1
      (it
      being agreed that if there is any conflict among any of the forgoing, GAAP
      shall
      govern and control), and shall include the accounts to be used in determining
      Closing Working Capital, and all the estimates thereon shall be reasonably
      determined in good faith. 

     

    (b) Closing
      Date Working Capital Adjustment.
      Subject
      to Section 2.4(f) hereof, the Purchase Price will be adjusted at Closing if
      the
      estimated Closing Working Capital is greater or less than $11,830,000.00 (the
      “Working Capital Target”). Subject to Section 2.4(f) hereof, if the estimated
      Closing Working Capital is greater than the Working Capital Target, then the
      Purchase Price will be increased accordingly on a dollar-for-dollar basis of
      the
      full amount of such excess (the “Positive Closing Date Adjustment Amount”) up to
      an aggregate increase to the Purchase Price of $870,000.00 (the “Positive
      Closing Date Adjustment Cap”) and if the estimated Closing Working Capital is
      less than the Working Capital Target, then the Purchase Price will be decreased
      on a dollar-for-dollar basis by the full amount of such deficiency (the
“Negative Closing Date Adjustment Amount”).

     

    
      
        
        

      

      
        15

        
          

        

      

       

    

     

    (c) Final
      Closing Balance Sheet.
      Each of
      Purchaser and Seller shall have the right, exercisable within forty-five (45)
      days after the Closing Date, to require the Purchaser and the Acquired Business
      to provide to Purchaser and Seller a final closing balance sheet for the
      Acquired Business setting forth in reasonable detail the net book value of
      the
      Purchased Assets as of immediately prior to the Effective Time and the book
      amount of the Assumed Liabilities as of immediately prior to the Effective
      Time,
      which shall include each of the accounts required in determining the Closing
      Working Capital (such balance sheet is referred to herein as the “Closing
      Balance Sheet”) following the methodologies and procedures used in calculating
      the Estimated Closing Balance Sheet. The Seller shall be given reasonable access
      to the work papers and other materials used in the preparation of the Closing
      Balance Sheet. The Closing Balance Sheet and the determination of the Closing
      Working Capital shall be completed by Purchaser and delivered to Seller within
      thirty (30) days after a request is received therefor.

     

    (d) Resolution
      of Disputes.
      In the
      event Seller does not agree as to the Closing Balance Sheet or to the amount
      of
      the Closing Working Capital determined by Purchaser, then Seller shall deliver
      to Purchaser a written statement describing with reasonable detail the basis
      for
      any such claim within 30 days after receiving the Closing Balance Sheet.
      Purchaser and Seller will use reasonable efforts to resolve any such claims
      themselves. If they do not obtain a final resolution within 75 days after the
      Closing Date, however, Purchaser and Seller will select a regional accounting
      firm mutually acceptable to them to resolve any remaining such claims. If
      Purchaser and Seller are unable to agree on the choice of an accounting firm,
      they will select a nationally recognized accounting firm by lot (after excluding
      any such firm engaged by Purchaser, Seller or their affiliates) (the
“Arbitrating Accountant”). Upon submission to the Arbitrating Accountant for
      resolution, Purchaser and Seller shall each indicate in writing its position
      on
      each disputed matter. The Arbitrating Accountant shall make a written
      determination on each disputed matter no later than 120 days after the Closing
      Date and such determination will be conclusive and binding upon Purchaser and
      the Seller with respect to that disputed matter. The proposed Closing Balance
      Sheet and the Closing Working Capital will be revised as appropriate to reflect
      the resolution of any such claims pursuant to this Section 2.4(d). The fees
      and
      expenses of the Arbitrating Accountant shall be shared equally between Purchaser
      and Seller.

     

    (e) Post-Closing
      Adjustments.
      Promptly, and in any event no later than the 10th Business Day after final
      determination of the Closing Working Capital in accordance with Sections 2.4(c)
      and 2.4(d), subject to Section 2.4(f) hereof:

     

    (i) if
      the
      Closing Working Capital Adjustment is a positive number, then Purchaser shall
      pay by wire transfer of immediately available funds to Seller, an amount equal
      to such number and such additional amount shall be deemed an increase to the
      Purchase Price;

     

    (ii) if
      the
      Closing Working Capital Adjustment is a negative number, then Seller shall
      pay
      by wire transfer of immediately available funds to Purchaser, an amount equal
      to
      such number and such amount shall be deemed a decrease to the Purchase Price;
      and

     

    
      
        
        

      

      
        16

        
          

        

      

       

    

     

    (iii) if
      the
      Closing Working Capital Adjustment is zero, then neither Purchaser nor Seller
      shall pay any amount to the other.

     

    For
      purposes of this Section 2.4(e), “Closing Working Capital Adjustment” shall mean
      the amount by which the Closing Working Capital set forth on the Closing Balance
      Sheet is greater than or lower than the amount of the Closing Working Capital
      set forth on the Estimated Closing Balance Sheet, expressed as a positive
      number, if greater, or as a negative number, if lower. 

     

    (f) No
      adjustments to the Purchase Price pursuant to Sections 2.4(b) and 2.4(e) shall
      be payable by Purchaser or Seller to the other unless such adjustment is
      calculated to be at least $25,000, upon which the full amount of such adjustment
      shall be paid; provided, that the sum of the Positive Closing Date Adjustment
      Amount and the Closing Working Capital Adjustment shall in no event exceed
      the
      Positive Closing Date Adjustment Cap. 

     

    (g) Seller
      and Purchaser will make any work papers and back-up materials necessary for
      the
      preparation of the Estimated Closing Balance Sheet or the Closing Balance Sheet,
      and any books, records and financial staff of the Acquired Business, available
      to the other and their respective accountants and other representatives, and,
      in
      the event of a dispute involving the Closing Working Capital, to the Arbitrating
      Accountant, at reasonable times and upon reasonable notice at any time during
      (i) the preparation of the Estimated Closing Balance Sheet or the Closing
      Balance Sheet, and (ii) the resolution by Purchaser and Seller and/or the
      Arbitrating Accountant of any objections to the Closing Balance
      Sheet.

     

    3.  ASSUMPTION
      OF LIABILITIES.
      

     

    3.1.  Assumed
      Liabilities.
      At
      Closing, as evidenced by the Assignment and Assumption Agreement and Bill of
      Sale, Purchaser shall assume and be responsible for (i) the payment of all
      accounts payable, accrued expenses and other liability accounts of the Acquired
      Business unpaid as of the Effective Time to the extent that they are reflected
      on the Estimated Closing Balance Sheet or, if created, the Closing Balance
      Sheet, and are taken into account in the determination of Closing Working
      Capital in accordance with the methodologies and procedures set forth in
Schedule
      1.1
      and (ii)
      any obligations or liabilities assumed by Purchaser as set forth in Sections
      3.2, 3.3, and 9.7. Such obligations and liabilities are referred to herein
      as
      the “Assumed Liabilities”.

     

    3.2.  Contracts.
      At
      Closing, (i) as evidenced by the Assignment and Assumption Agreement and Bill
      of
      Sale, Purchaser shall assume and be responsible for all Contracts transferred
      to
      Purchaser pursuant to Section 2.1(a) above and (ii) Purchaser shall assume
      the
      Union Agreement; provided, that (a) Purchaser shall not assume and shall have
      no
      Liability with respect to any obligations of Seller under the Contracts or
      the
      Union Agreement required therein to be performed by Seller at or prior to the
      Closing or arising out of any breach thereof at or prior to Closing, or (b)
      arising from a waiver or forbearance granted in favor of any party thereunder
      prior to the Closing, unless such waiver or forbearance is expressly set forth
      in the Contracts or described in Schedule
      3.2
      of the
      Disclosure Schedule. 

     

    
      
        
        

      

      
        17

        
          

        

      

       

    

     

    3.3.  Prorated
      Items.
      To the
      extent not included in the Assumed Liabilities, Purchaser shall assume and
      be
      responsible for all utilities specified in Section 2.3(d) above provided
      Purchaser receives equivalent credits against the Purchase Price under that
      Section.

     

    3.4.  No
      Further Assumption; Non-Assumed Liabilities.
      Purchaser does not and shall not assume any obligations or Liabilities of Seller
      other than the Assumed Liabilities. All obligations and Liabilities of Seller
      and the Acquired Business other than the Assumed Liabilities (the “Non-Assumed
      Liabilities”) shall remain with Seller and Seller shall be responsible for and
      timely pay and discharge as and when due all of the Non-Assumed Liabilities
      after the Closing Date, including (i) any liabilities for Taxes (a) relating
      to
      or arising out of the Business accruing prior to or on the Closing Date
      (including, without limitation, accrued sales taxes), (b) retained by the Seller
      pursuant to this Agreement, (c) of Seller or any other Person, whether pursuant
      to an agreement, by operation of Treasury Regulation §1.1502-6 (or any similar
      provision of state, local, or foreign law), transferee or successor Liability,
      or otherwise, (ii) any Liabilities arising under Environmental Laws attributable
      to or incurred as a result of any acts, omissions, or conditions first occurring
      or in existence as of or prior to the Closing Date, including, but not limited
      to, Liabilities for the Release, handling, discharge treatment, storage,
      disposal, or presence of Materials of Environmental Concern, (iii) any
      Liabilities first occurring or in existence as of or prior to the Closing Date
      relating to (A) the employees of the Acquired Business or (B) any Benefit Plans
      maintained by the Seller or any Affiliate of the Seller or, to the extent
      Seller, Purchaser or Purchaser Parent is liable therefor, any of their
      respective predecessors, (iv) any Liabilities relating to Products placed in
      the
      stream of commerce by the Acquired Business or its predecessors on or prior
      to
      the Closing Date (provided that Purchaser shall be responsible for the first
      $50,000 of Liability in connection with any retrofitting or warranty work
      required in the Ordinary Course of Business with respect to Products placed
      in
      the stream of commerce by the Acquired Business, provided, further that any
      amounts paid under this Section 3.4(iv) shall in no way be included in the
      calculation of Losses pursuant to Section 13.4(a)(iv) or 13.4(a)(v)), (v) any
      Liabilities to the equityholders of the Seller; and (vi) except as set forth
      herein, any fees, costs or expenses of Seller in connection with legal,
      accounting, investment banking or any other services rendered in connection
      with
      the transactions contemplated by this Agreement and the Ancillary
      Documents.

     

    4.  REPRESENTATIONS
      AND WARRANTIES WITH RESPECT TO SELLER AND THE PURCHASED ASSETS.
      Except
      as set forth in the Disclosure Schedule, Seller represents and warrants to
      Purchaser and Purchaser Parent as follows:

     

    4.1.  Organizational
      Matters Regarding Seller and the Wilmington
      Purchaser.

     

    (a) Organization
      and Qualification; Power.
      Each of
      Seller and the Wilmington Purchaser is a limited liability company duly
      organized, validly existing and in good standing under the Laws of the State
      of
      Delaware. Seller is, and upon the closing of the Wilmington Acquisition, the
      Wilmington Purchaser shall be, duly qualified or licensed, as the case may
      be,
      and in good standing in each jurisdiction where the nature of the activities
      of
      its business or the character of its assets require such qualification, except
      where the failure to be so qualified would not have an adverse affect on the
      Seller, the Wilmington Purchaser or the Acquired Business. Each jurisdiction
      in
      which Seller and the Wilmington Purchaser is qualified is listed on Schedule
      4.1(a)
      of the
      Disclosure Schedule. Seller has, and upon closing of the Wilmington Acquisition,
      the Wilmington Purchaser shall have, all requisite power and authority to own,
      lease and operate the Purchased Assets or the Wilmington Assets, as the case
      may
      be, and to carry on the Acquired Business or the Wilmington Business, as the
      case may be, as conducted by such party. The Seller has delivered to the
      Purchaser or its counsel correct and complete copies of its and the Wilmington
      Purchaser’s governing documents including their respective certificate of
      formation and operating agreement.

    
      
        
        

      

      
        18

        
          

        

      

       

    

     

    (b) Authorization;
      Validity.
      Seller
      has all requisite power and authority to enter into this Agreement, the
      Ancillary Documents to which it is a named party and the related agreements,
      documents and instruments referred to herein or contemplated hereby and to
      carry
      out its obligations hereunder and thereunder. The execution and delivery by
      Seller of this Agreement, the Ancillary Documents to which it is a named party
      and the related agreements, documents and instruments referred to herein or
      contemplated hereby and the consummation by Seller of the transactions
      contemplated hereby and thereby have been duly authorized by all necessary
      entity action on the part of the Seller. No further act or proceeding on the
      part of Seller is necessary to authorize this Agreement, the Ancillary Documents
      to which it is a named party or any related documents or instruments to be
      executed and delivered by Seller pursuant hereto or thereto or the consummation
      of the transactions contemplated hereby or thereby. This Agreement constitutes,
      and when executed and delivered the Ancillary Documents to which Seller is
      a
      named party and the related agreements, documents and instruments to be executed
      and delivered by Seller pursuant hereto will constitute the valid and legally
      binding obligations of Seller enforceable against it in accordance with their
      respective terms, except as may be limited by bankruptcy, insolvency,
      reorganization or other Laws affecting creditors’ rights generally, and by
      general equitable principles. 

     

    (c) Compliance;
      Binding Effect.
      Except
      as set forth in Schedule
      4.1(c)
      of the
      Disclosure Schedule, the execution, delivery and performance of this Agreement,
      the Ancillary Documents and the related agreements and instruments referred
      to
      herein or therein or contemplated hereby or thereby and the sale and transfer
      of
      the Purchased Assets and the Acquired Business will not: (i) violate any
      provision of the Certificate of Formation or Operating Agreement of Seller
      or
      any provision of applicable Law; (ii) constitute a default under, or constitute
      an event which with or without the giving of notice or the lapse of time or
      both
      would become a default under any Material Contract; (iii) violate or conflict
      with any Order to which either Seller, the Acquired Business or the Purchased
      Assets are subject or bound; (iv) result in the creation of a Lien on the
      Purchased Assets, or (v) result in the acceleration or give rise to a right
      to
      accelerate any of the Assumed Liabilities.

     

    4.2.  Governmental
      Consents.
      Except
      as set forth in Schedule
      4.2
      of the
      Disclosure Schedule, no consent, approval, authorization, or other action by
      or
      filing with any Governmental Authority is required for the execution, delivery
      or performance by the Seller of this Agreement or the transactions contemplated
      by this Agreement.

     

    4.3.  Financial.
      Schedule
      4.3
      of the
      Disclosure Schedule contains correct and complete copies of the Financial
      Statements. Except as indicated in the Disclosure Schedule, the Financial
      Statements were prepared in accordance with the policies and procedures of
      Seller, Seller’s books of account and records and GAAP consistently applied (it
      being agreed that if there is any conflict among any of the forgoing, GAAP
      shall
      govern and control) through the applicable periods involved, and present fairly
      in all material respects the financial condition of the Acquired Business as
      of
      the respective dates of such Financial Statements and the respective periods
      covered thereby, subject to ordinary course year end adjustments that may be
      made to the Interim Financial Statements. Except as set forth in Schedule
      4.3
      of the
      Disclosure Schedule, since December 31, 2005, there has been no change in the
      accounting methods or practices of Seller relating to the Acquired
      Business.

     

    
      
        
        

      

      
        19

        
          

        

      

       

    

     

    4.4.  Absence
      of Certain Changes.
      Except
      as
      set forth in Schedule
      4.4
      of the
      Disclosure Schedule and except as disclosed in the Financial Statements, since
      December 31, 2005, Seller has conducted the Acquired Business in the ordinary
      course of business. Without limiting the generality of the foregoing, except
      as
      disclosed in Schedule
      4.4
      of the
      Disclosure Schedule, since December 31, 2005 there has been no (i) change in
      the
      Acquired Business which has had a Material Adverse Effect, (ii) material damage,
      destruction or loss (whether or not covered by insurance) affecting the
      Purchased Assets or the Acquired Business, (iii) increase or commitment to
      increase the salaries, bonuses, severance or termination payments, rates of
      compensation, or other compensation or level of benefit with respect to any
      of
      the employees employed in the Acquired Business, except in the ordinary course
      of business and for the Employee Bonuses, (iv) termination of any previously
      existing contract, agreement or license which, if not terminated, would have
      been required to be listed on Schedule
      4.10
      of the
      Disclosure Schedule, other than expirations of such contracts, agreements or
      licenses in the ordinary course of business, or increase or decrease or
      commitment to increase or decrease the prices charged by the Seller to any
      of
      its customers or charged to the Seller by its suppliers in the ordinary course
      of business, (v) sale, lease, license or disposition of any material assets
      or
      property of the Acquired Business (other than the sale of Products in the
      ordinary course of business and tangible property that has been damaged or
      rendered obsolete); (vi) change in any accounting method used by Seller or
      adverse effect on Seller of any material change in any accounting method used
      by
      Seller; (vii) strike, work stoppage or slowdown with respect to the Acquired
      Business; (viii) receipt of any notice or adverse change in Seller’s
      relationship with any financial institution with which the Acquired Business
      currently does business; (ix) acceleration or delay of collection of notes
      or
      accounts receivable of the Acquired Business in advance of or beyond their
      regular due dates or the dates when the same would have been collected in the
      ordinary course of business; (x) acceleration or delay of payments of any
      accounts payable or other Liability of the Acquired Business beyond or in
      advance of its due date or the date when such Liability would have been paid
      in
      the ordinary course of business; (xi) failure to replenish inventories and
      supplies of the Acquired Business in the ordinary course of business, or
      entering into of any purchase commitment by the Acquired Business not in the
      ordinary course of business; (xii) acquisition by the Acquired Business of
      any
      significant part of the assets, capital stock, properties, securities or
      business of any other Person (other than the Wilmington Acquisition) (xiii)
      revaluation of any assets or properties or material write down or write off
      of
      the value of any assets or properties of the Acquired Business; (xiv)
      cancellation, termination or material reduction of a relationship by any single
      supplier or customer who accounted for more than 10% of the purchases or sales
      of the Seller, determined by reference to Seller’s fiscal year ended December
      31, 2005; or (xv) agreement to do any of the foregoing.

     

    4.5.  Powers
      of Attorney.
      No
      employee or agent of Seller hold powers of attorney to act with respect to
      the
      Purchased Assets or the Acquired Business.

     

    
      
        
        

      

      
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    4.6.  Litigation;
      Disputes.
      

     

    (a) Except
      as
      set forth in Schedule
      4.6(a)
      of the
      Disclosure Schedule, there is no suit, action, claim, or legal, administrative,
      arbitration, union grievances, mediation or other proceeding, or governmental
      investigation (“Litigation”) pending or, to the Knowledge of Seller, threatened
      by or before any Governmental Authority affecting Seller (as plaintiff or
      defendant), the Purchased Assets or the Acquired Business. 

     

    (b) Except
      as
      set forth in Schedule
      4.6(b)
      of the
      Disclosure Schedule, there has been no Litigation commenced against Seller
      in
      the last three (3) years in connection with the Acquired Business other than
      (i)
      with respect to accounts receivable collection matters solely for money damages
      and not having amounts in controversy in excess of $50,000 and (ii) workers
      compensation claims that occurred in the Ordinary Course of
      Business.

     

    4.7.  Licenses;
      Compliance With Laws and Regulations.

     

    (a) Governmental
      Authorizations.
      Except
      as set forth in Schedule
      4.7(a)(i)
      of the
      Disclosure Schedule or as relates to Environmental Laws (which are covered
      by
      Section 4.12), Seller has all material authorizations, consents, approvals,
      franchises, licenses and permits required under applicable Law for the operation
      and ownership of the Acquired Business and the Purchased Assets (the
“Governmental Authorizations”) and Schedule
      4.7(a)(ii)
      of the
      Disclosure Schedule lists all of the Governmental Authorizations material to
      the
      Acquired Business as conducted by Seller, except for Governmental Authorizations
      under Environmental Laws (which are covered by Section 4.12). All of the
      Governmental Authorizations have been duly issued or obtained and are in full
      force and effect, and Seller is in compliance with the terms and conditions
      of
      all of the Governmental Authorizations. To the Knowledge of Seller, no fact,
      condition, or violation exists which could cause the Governmental Authorizations
      not to be renewed by the appropriate Governmental Authorities in the ordinary
      course or which would, for each Government Authorization not being assigned
      to
      Purchaser at Closing, prevent Purchaser from obtaining the same Government
      Authorizations in the ordinary course.

     

    (b) Compliance
      With Laws and Regulations.
      Except
      as set forth in Schedule
      4.7(b)
      of the
      Disclosure Schedule, Seller is in compliance in all material respects with
      all
      applicable Laws relating to the operation of the Acquired Business, excluding
      Environmental Laws which are covered by Section 4.12 hereof.

     

    4.8.  Title
      to and Condition of Property.

     

    (a) Real
      Property.
      Except
      as set forth in Schedule
      4.8(a)(i)
      of the
      Disclosure Schedule, the Ohio Real Estate and the Leased Real Property
      constitute all real property used in the Acquired Business. Set forth in
Schedule
      4.8(a)(ii)
      of the
      Disclosure Schedule is a list of all of the lease and sublease agreements and
      all other instruments granting leasehold interests, rights, options, or other
      interests, as amended to date (the “Leases”) relating to the Leased Real
      Property. A true, complete, and correct copy of each of the Leases has
      previously been made available to the Purchaser. 

     

    (b) Title.
      Except
      as provided in Schedule
      4.8(b)
      of the
      Disclosure Schedule, Seller has good and marketable title to the Purchased
      Assets and the Wilmington Purchaser Equity Interests free and clear of any
      Liens, except Permitted Encumbrances and the Assumed Liabilities. Seller enjoys
      peaceful and undisturbed possession of the Leased Real Property and the Ohio
      Real Estate. No Person other than the Seller has any right to use or occupy
      any
      part of the Leased Real Property and the Ohio Real Estate. To the Knowledge
      of
      Seller, there are no pending or threatened condemnation or eminent domain
      proceedings with respect to or affecting any of the Ohio Real Estate or the
      Leased Real Property, and neither the Seller nor the Acquired Business has
      received any written notice in respect thereof. 

     

    
      
        
        

      

      
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    (c) Condition.
      Except
      as provided in Schedule
      4.8(c)
      of the
      Disclosure Schedule, all machinery, equipment and other material items of
      tangible property and assets included in the Purchased Assets, taken as a whole,
      are in good operating condition and repair for assets of their type and age,
      subject to normal wear and maintenance. Except as set forth on Schedule
      4.8(c)
      of the
      Disclosure Schedule, to the Knowledge of Seller, all improvements located on
      the
      Ohio Real Estate and on the Leased Real Property are in a state of good
      maintenance and repair and in a condition adequate and reasonably suitable
      for
      the conduct therein of the business as conducted by the Acquired Business.
      Except as provided in the Schedule
      4.8(c)
      of the
      Disclosure Schedule, no Person other than the Seller owns any machinery,
      equipment or other tangible assets or properties of the Acquired Business
      situated on the premises of the Acquired Business or used in its operations
      except for (i) items of equipment and machinery leased by Seller, and (ii)
      items
      of immaterial value owned by employees of the Seller. Except as set forth on
      Schedule
      4.8(c)
      of the
      Disclosure Schedule, to the Knowledge of Seller, the heating, ventilation,
      air
      conditioning, roofing, plumbing and electrical systems at the Ohio Real Estate
      and the Leased Real Property are in working order and repair. To the Knowledge
      of Seller, the Acquired Business has not experienced any material interruption
      in such services provided to any of the premises located on the Ohio Real Estate
      and the Leased Real Property within the last year. To the Knowledge of Seller,
      no landlord under the Leased Real Property has any plans to make any material
      alterations to any of the Leased Real Property, the construction of which would
      interfere in any material respect with the use of any material portion of the
      Leased Real Property. To the Knowledge of Seller, no landlord under the Leased
      Real Property has any plans to make any material alterations to any of the
      buildings located on any Leased Real Property, the costs of which alterations
      would be borne in any part by a tenant under the applicable lease.

     

    (d) Insurance.
      Schedule
      4.8(d)
      of the
      Disclosure Schedule contains a list of all insurance policies which Seller
      maintains that cover the Acquired Business. To the Knowledge of Seller, such
      insurance policies are in full force and effect and Seller has not received
      any
      written notice of any cancellation of such insurance. The Seller has previously
      provided the Purchaser with true and complete copies of all of such insurance
      policies, as amended. Since December 31, 2001, the insurance policies of Seller
      relating to the Acquired Business provided adequate and customary coverage
      for
      the Acquired Business and, to the Knowledge of Seller, there have been no
      historical gaps in coverage. To the Knowledge of Seller (i) no insurance carrier
      or insurance agent of Seller has indicated that any of Seller’s insurance
      policies would not be renewed in the ordinary course, (ii) no insurance carrier
      of Seller is insolvent and (iii) the limits under all policies of Seller have
      not been exhausted or significantly diminished.

     

    
      
        
        

      

      
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    4.9.  Taxes. 

     

    (a) Except
      as
      set forth in Schedule
      4.9
      of the
      Disclosure Schedule, all Tax Returns and tax reports required to be filed with
      respect to the income, operations, business or assets of Seller or each
      affiliated, combined or unitary group (“Tax Group”) of which Seller has been a
      member (i) have been timely filed (or will be timely filed) with the appropriate
      Governmental Authorities for all periods ended on or prior to the Closing Date,
      (ii) are correct and complete in all material respects and reflect accurately
      all liability for Taxes of Seller or Seller’s Tax Group, as the case may be, for
      the periods to which such returns relate and (iii) all Taxes shown as payable
      on
      such Tax Returns have been paid (or will be timely paid), including (subject
      to
      Purchaser fulfilling its obligations specified in Section 9.10 hereof), any
      and
      all Taxes incurred or imposed as a result of the consummation of any of the
      transactions contemplated by this Agreement. No Governmental Authority of a
      jurisdiction in which the Company does not file Tax Returns has notified Seller
      that the Company may be liable to file Tax Returns in such
      jurisdiction.

     

    (b) All
      Taxes
      that Seller or its Tax Group is required by Law to withhold or collect for
      all
      periods ending on or prior to the Closing Date have been timely withheld or
      collected, or adequately reserved for on the books and records of Seller, and
      have either been paid to the appropriate Governmental Authority or set aside
      and, to the extent required by Law, held in accounts for such
      purpose.

     

    (c) Seller
      has previously delivered to Purchaser true, correct and complete copies of
      each
      of the federal, state, local, and other Tax Returns filed by Seller or its
      tax
      Group for the past three fiscal years which were due, without regard to any
      extensions granted, on or before the date hereof. 

     

    4.10.  Contracts
      and Commitments.

     

    (a) Set
      forth
      on Schedule
      4.10
      of the
      Disclosure Schedule is a list of each of the following categories of (a) written
      contracts, instruments, leases, agreements, arrangements, undertakings and
      commitments to which the Seller is a party or otherwise bound and (b) oral
      contracts, agreements, commitments and understandings to which the Seller is
      a
      party or otherwise bound that (I) were either entered into or have material
      obligations which are performable after December 31, 2005, and (II) involve
      the
      receipt or delivery by the Acquired Business of an amount in excess of $25,000
      (together with a brief description of the material terms of any such oral
      agreement), in each instance (a) or (b), relating to the Acquired Business
      or
      the Purchased Assets and which have obligations that remain outstanding
      (collectively, the “Material Contracts”): (i) agreements not to compete with any
      Person in any business or geographic territory, not to engage in any line of
      business or not to disclose information; (ii) real property leases, rental
      or
      occupancy contracts, or any other material contracts affecting the ownership
      of,
      purchase of, sale of, leasing of, title to, use of, or any leasehold or other
      interest in, any real or personal property; (iii) indentures, mortgages,
      promissory notes, loan agreements, Guaranties or other agreements for the
      borrowing, lending or investing of money or creating or reflecting a Lien on
      Purchased Assets; (iv) except for purchase or sale orders for the purchase
      of
      materials or supplies or for the sale of products entered into in the ordinary
      course of business, agreements involving receipt, potential receipt, payment
      or
      potential payment or other expenditure of more than $10,000 in the aggregate
      that is not cancelable on less than 1 months’ notice without the payment of a
      penalty or a payment for future products or services which will not be received
      or rendered; (v) warranties, guaranties and/or other similar undertakings
      extended by the Seller or the Acquired Business; (vi) agreements providing
      for
      the disposition of a material item of the Purchased Assets, other than in the
      ordinary course of business (for such purposes, a material Purchased Asset
      is
      one that is important to the operation of the Acquired Business, the disposition
      of which would prevent an orderly and uninterrupted continuation of operations
      and the replacement of which would unreasonably consume time and funds); (vii)
      consulting, employment collective bargaining and union agreements; (viii)
      agreements with sales representatives, dealers or distributors; (ix)
      partnership, joint venture or similar relationship agreements involving a
      sharing of profits, losses, costs or liabilities; (x) license, franchise or
      management agreements; (xi) agreements that are not cancelable on thirty (30)
      days or less notice without penalty; or (xii) any other agreement that the
      termination of which, or the expiration without renewal of which, would have
      a
      Material Adverse Effect. 

     

    
      
        
        

      

      
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    (b) Seller
      has previously furnished to Purchaser true, complete and correct copies of
      all
      written agreements, as amended, required to be set forth on Schedule
      4.10.
      Each of
      the Material Contracts is in full force and effect and is the valid and legally
      binding obligation of Seller and, to the Knowledge of Seller, the other parties
      thereto, each enforceable in accordance with its terms, subject only to
      bankruptcy, insolvency or similar laws affecting the rights of creditors
      generally and to general equitable principles. Seller has not received notice
      of
      its default under any of the Material Contracts, and, to the Knowledge of
      Seller, no event has occurred which, with the passage of time or the giving
      of
      notice or both, would constitute a default by Seller thereunder. Seller has
      not
      received notice of the pending or threatened cancellation, revocation or
      termination of any of the Material Contracts, including, without limitation,
      any
      agreements relating to borrowed money to which Seller is a party or to which
      it
      or its assets are bound or subject, nor, to the Knowledge of Seller, are there
      any facts or circumstances that could lead to any such cancellation, revocation
      or termination.

     

    (c) Seller
      has taken such actions as is set forth on Schedule
      4.10(c)
      of the
      Disclosure Schedule.

     

    4.11.  Intellectual
      Property.
      

     

    (a) Schedule
      2.1(e)
      contains
      a true and complete list of all Trademarks, Patents and Copyrights associated
      with the Purchased Assets or used in the Acquired Business. Seller owns the
      entire right, title and interest in and to the items listed in Schedule
      2.1(e)
      free and
      clear of Liens, other than Permitted Encumbrances, and none of such items are
      subject to any pending or threatened Litigation or other adverse claims and,
      other than as set forth on Schedule
      4.11
      of the
      Disclosure Schedule, to the Knowledge of Seller, none of the items listed in
      Schedule
      2.1(e)
      violate
      any Intellectual Property of any other Person. To the Knowledge of Seller,
      there
      are no facts or circumstances that would result in the invalidity or
      unenforceability of any of the items of Intellectual Property set forth in
      Schedule
      2.1(e),
      and all
      filings with respect thereto required to keep such items effective and
      enforceable have been made by Seller. Except as set forth in Schedule
      2.1(e),
      no
      licenses, sublicenses, covenants or agreements have been granted or entered
      into
      by Seller relating to any such Intellectual Property.

     

    (b) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, the Seller owns, or has the valid right to use, all
      Intellectual Property affiliated with or used in connection with the Purchased
      Assets or the Acquired Business as presently conducted or as presently intended
      to be conducted, and all of such Intellectual Property will be transferred
      with
      the Purchased Assets.

     

    
      
        
        

      

      
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    (c) Set
      forth
      on Schedule
      4.11
      of the
      Disclosure Schedule is a complete and accurate list of (i) each agreement that
      is in effect pursuant to which the Acquired Business uses the Intellectual
      Property of another Person in any manner that is material to the conduct of
      the
      Acquired Business and (ii) each agreement that is in effect pursuant to which
      the Seller grants to another Person (A) the right to use an item of Intellectual
      Property affiliated or used in connection with the Acquired Business or the
      Purchased Assets.

     

    (d) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, all Intellectual Property of the Seller affiliated or
      used
      in connection with the Acquired Business or the Purchased Assets are valid
      and
      subsisting, in full force and effect, and have not been cancelled, expired,
      or
      abandoned. 

     

    (e) The
      Seller takes reasonable measures to protect the confidentiality of the material
      Trade Secrets of the Acquired Business. To the Knowledge of Seller, except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, no material Trade Secret of the Acquired Business has
      been
      improperly disclosed or has been misappropriated by another Person.

     

    (f) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, to the Knowledge of Seller, the conduct of the business
      of
      the Acquired Business, as currently conducted or as currently intended to be
      conducted, does not infringe or misappropriate the Intellectual Property rights
      of any Person. Except as set forth on Schedule
      4.11
      of the
      Disclosure Schedule, neither the Seller nor the Acquired Business has received
      written notice, or, to the Knowledge of Seller, oral notification that (i)
      the
      conduct of the business of the Acquired Business infringes any Intellectual
      Property rights owned or controlled by any third party (either directly or
      indirectly such as through contributory infringement or inducement to infringe)
      or is defamatory or violative in any way of any publicity, privacy, or other
      rights; or (ii) any interference or cancellation proceeding exists before any
      court or registration authority in any jurisdiction against the Intellectual
      Property affiliated with or used by the Acquired Business.

     

    (g) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, to the Knowledge of Seller, no third party is
      misappropriating, infringing, diluting, or otherwise violating any Intellectual
      Property affiliated with or used in connection with the Acquired Business or
      the
      Purchased Assets, and no such claims are pending against a third party by the
      Seller.

     

    (h) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, after the deliveries provided for in this Agreement have
      occurred, neither the Seller Principals nor any current or former officer,
      manager, member or employee of the Seller (or any family member thereof) will
      retain any rights of ownership or use with respect to Intellectual Property
      affiliated with or used in connection with by the Acquired Business or the
      Purchased Assets.

     

    (i) Except
      as
      set forth on Schedule
      4.11
      of the
      Disclosure Schedule, the Seller owns or has the right to use all Software used
      in the Acquired Business or in connection with the Purchased Assets. No
      unlicensed copies of any mass market Software that is available in consumer
      retail stores or otherwise commercially available and subject to "shrink-wrap"
      or "click-through" license agreements have been installed or maintained on
      any
      of the computers or computer systems of the Acquired Business or the Purchased
      Assets.

     

    
      
        
        

      

      
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    4.12.  Environmental
      Matters.
      

     

    (a) Seller
      does not have, and to the Knowledge of Seller, is not required to have, any
      authorizations, consents, approvals, franchises, licenses and permits required
      under applicable Environmental Law which are material to its operation and
      ownership of the Acquired Business and the Purchased Assets. 

     

    (b) Except
      as
      set forth on Schedule
      4.12(b)
      of the
      Disclosure Schedule, there is no Environmental Claim pending against Seller
      or,
      to the Knowledge of Seller, threatened against Seller or the Purchased Assets
      and, to the Knowledge of Seller, there exist no facts or circumstances that
      would reasonably be expected to result in the institution of any such
      Environmental Claim. The Seller has not received notice of any material penalty,
      damages or other costs being assessed or awarded against the Seller relating
      to
      any Environmental Claims; and no settlement or agreement in respect of an
      Environmental Claim has been entered into by the Seller; and except as set
      forth
      on Schedule 4.12(b) of the Disclosure Schedule, to the Knowledge of Seller,
      no
      investigation or review has been done by or at the request or direction of
      a
      Governmental Authority with respect to the Seller or any of its respective
      properties relating to compliance with Environmental Laws.

     

    (c) Except
      as
      set forth on Schedule
      4.12(c),
      to the
      Knowledge of Seller, the Seller has not, and no prior owner, operator or lessee
      of the Ohio Real Estate has, handled any Materials of Environmental Concern
      in
      violation of Environmental Law (in such a manner as would be likely to result
      in
      a material Liability of the Seller or the Purchaser) on any property now or
      previously owned, operated or leased by the Seller and, without limiting the
      foregoing, to the Knowledge of Seller (A) no polychlorinated biphenyls are
      or
      have been Released, transported, disposed of or stored in violation of
      Environmental Law, (B) no asbestos is or has been present, (C) there are no
      underground or above ground storage tanks, active or abandoned which are in
      violation of Environmental Law, (D) no Hazardous Material has been Released
      in a
      quantity reportable under, or in violation of, or which would be reasonably
      expected to result in material Liability, in each instance (A)-(D) (I) at,
      on,
      under or from any property now or previously owned, operated or leased by the
      Seller, during any period that the Seller owned, operated or leased such
      property or, to the Knowledge of Seller, prior thereto or (II) which would
      otherwise be reasonably expected to result in a material Liability of the Seller
      or the Purchaser.

     

    (d) The
      Seller has not received any notice that Seller or any of its contractors, agents
      or employees has, and to the Knowledge of Seller the Seller nor any of its
      contractors, agents or employees has, transported or arranged for the
      transportation of any Materials of Environmental Concern to a location which
      would reasonably be expected to result in an Environmental Claim(s) which would
      be a material Liability of the Seller or the Purchaser.

     

    (e) No
      written or, to the Knowledge of Seller, oral notification of a Release of
      Materials of Environmental Concern has been filed by or on behalf of the Seller
      and, to the Knowledge of Seller, no property now or previously owned, operated
      or leased by the Seller is listed or, to the Knowledge of Seller, proposed
      for
      listing on the National Priorities List promulgated pursuant to CERCLA or on
      any
      similar state list of sites requiring investigation or clean up.

     

    
      
        
        

      

      
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    (f) Except
      as
      set forth on Schedule
      4.12(f),
      since
      January 1, 2001, there have been no material environmental investigations,
      studies, audits, tests, reviews or other analyses or reports thereof which
      were
      conducted by, or which are in the possession of, the Seller for any property
      or
      facility now or previously owned, operated or leased by the Seller which have
      not been delivered or made available to Purchaser prior to the execution of
      this
      Agreement.

     

    4.13.  Transactions
      with Affiliates; Related Parties. 
      Except
      as set forth on Schedule
      4.13
      of the
      Disclosure Schedule, since December 31, 2005, the Acquired Business has not
      engaged in any material transaction with any entity owned or controlled by
      Seller on other than an arm’s length basis. Except as set forth on Schedule
      4.13,
      neither
      Seller nor any current or former (within the past three years) manager, member,
      officer or employee of Seller, or, to the Knowledge of Seller, any of their
      family members (individually a “Related Party” and collectively the “Related
      Parties”), or any Affiliate of Seller or, to the Knowledge of Seller, any
      Affiliate of any Related Party: (i) owns, directly or indirectly, any interest
      in any Person that is a competitor of the Acquired Business, or a supplier
      or
      customer of the Acquired Business (except as an owner of five percent or less
      of
      the stock of any company listed on a national securities exchange or traded
      in
      the over-the-counter market); (ii) owns, directly or indirectly, in whole or
      in
      part, any property, asset or right, real, personal or mixed, tangible or
      intangible (including, but not limited to, any of the intangible property)
      that
      is utilized in the operation of the Acquired Business; (iii) has an interest
      in
      or is, directly or indirectly, a party to any contract, agreement, lease or
      arrangement relating to the Acquired Business or the Purchased Assets; or (iv)
      has any cause of action or other claim whatsoever against the Acquired Business
      or the Purchased Assets.

     

    4.14.  Benefit
      Plans.
      

     

    (a) Except
      for the Existing Plans, neither Seller nor the Acquired Business maintains
      or
      contributes to any Benefit Plan. Seller has made available to Purchaser copies
      of each of the Existing Plans for which written documentation exists, together
      with copies of any summary plan description thereof. Since December 31, 2001,
      Seller has not maintained or had an obligation to contribute to, or incurred
      any
      other obligation in respect of (i) a multiemployer plan within the meaning
      of
      Section 3(37) of ERISA, (ii) a plan subject to Section 412 of the Code or Title
      I, Subtitle B, Part 3 or Title IV of ERISA, or (iii) a funded welfare benefit
      plan, as defined in Section 419 of the Code.

     

    (b) With
      respect to each Benefit Plan, Seller has heretofore delivered or caused to
      be
      delivered or made available to Purchaser true, correct and complete copies
      of
      (i) all documents which comprise the current version of each of such Benefit
      Plan, including any related trust agreements, insurance contracts, or other
      funding or investment contracts and any amendments thereto, and (ii) with
      respect to each Benefit Plan that is an “employee benefit plan,” as defined in
      Section 3(3) of ERISA, (w) the most recent Annual Report (Form 5500 Series)
      and
      accompanying schedules for each of the Benefit Plans for which such a report
      is
      required, (x) the current summary plan description (and any summary of material
      modifications thereto), (y) the most recently filed certified financial
      statements for each of the Benefit Plans for which such a statement is required
      or was prepared, and (z) for each Benefit Plan intended to be “qualified” within
      the meaning of Section 401(a) of the Code, the most recent IRS determination
      letter issued with respect to such Benefit Plan. Except as set forth in
Schedule
      4.14
      of the
      Disclosure Schedule, since the date of the documents delivered, there has not
      been any material change in the assets or liabilities of any of the Benefit
      Plans or any change in their terms and operations which could reasonably be
      expected to affect or alter the Tax status or materially affect the cost of
      maintaining such Benefit Plan, and none of the Benefit Plans has been or will
      be
      amended prior to the Closing Date.

     

    
      
        
        

      

      
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    (c) Except
      as
      set forth in Schedule
      4.14
      of the
      Disclosure Schedule (a) no complete or partial termination or wind up of any
      Benefit Plan has occurred since December 31, 2001, or is expected to occur;
      (b)
      full payment has been timely made of all amounts which the Seller is required,
      under applicable Law or under any Benefit Plan or any contract relating to
      any
      Benefit Plan to which the Seller is a party, to have paid, including all
      contributions and premiums thereunder, as of the last day of the most recent
      fiscal year of such Benefit Plan ended prior to the date hereof; (c) the Seller
      has made adequate provisions in its financial records and statements, in
      accordance with GAAP, for all obligations and liabilities under all Benefit
      Plans that have accrued but have not been paid because they are not yet due
      under the terms of any Benefit Plan (or any related trust, insurance contract,
      other related contract or fund); (d) each Benefit Plan (and each related trust,
      insurance contract, other related contract or fund) has been maintained, funded
      and administered in accordance with the terms of such Benefit Plan and the
      terms
      of any applicable collective bargaining agreement and complies in form and
      operation with the applicable requirements of ERISA, the Code and other
      applicable Law; (e) all required reports and descriptions have been timely
      filed
      and/or distributed in accordance with the applicable requirements of ERISA
      and
      the Code with respect to each Benefit Plan; and (f) the requirements of COBRA
      have been met with respect to each Benefit Plan subject to COBRA.

     

    4.15.  Product
      Warranties; Products.
      

     

    (a) Schedule
      4.15
      of the
      Disclosure Schedule includes copies of Seller’s standard terms and conditions of
      Product sales made. Except as set forth in Schedule
      4.15
      of the
      Disclosure Schedule, there are not any pending claims against Seller for breach
      of an express or implied warranty applicable to Products of the Acquired
      Business sold by Seller and, to the Knowledge of Seller, there is no such claim
      threatened.

     

    (b) Seller
      has not received notice of any, and to the Knowledge of Seller there are not
      any, set of facts that (i) could furnish a basis for the recall, withdrawal
      or
      suspension of any Product, Governmental Authorization, approval or consent
      of
      any Governmental Authority with respect to any Product, (ii) could furnish
      a
      basis for the recall, withdrawal or suspension of any Product by Order of any
      state, federal or foreign court of law, or (iii) could otherwise cause Seller
      or
      the Acquired Business to recall, withdraw or suspend any Product from the market
      or to change the marketing classification of any Product. Seller has not
      received notice of any, and to the Knowledge of Seller there are not any,
      Defects in the Products that is reasonably likely to give rise to any Losses
      or
      that will cause such Product not to be useable as intended or
      marketed.

     

    4.16.  Inventory.
      The
      quantities of each type of inventory (whether raw materials, work-in-process,
      or
      finished goods) are not excessive, but are reasonable and warranted in the
      present circumstances of the Seller conducting the Acquired Business in the
      ordinary course of business. To the Knowledge of Seller, all work in process
      and
      finished goods inventory held by the Seller is free of any material Defect
      or
      other material deficiency. Except as set forth in Schedule
      4.16
      of the
      Disclosure Schedule, the inventory of finished goods of the Acquired Business
      taken into account in the determination of the Closing Working Capital
      (excluding any such inventory included in any inventory reserve or inventory
      write down or write off taken into account in the determination of the Closing
      Working Capital) has been manufactured in accordance with customer
      specifications as set forth in the applicable purchase order. Except as set
      forth in Schedule
      4.16
      of the
      Disclosure Schedule, since December 31, 2005, no inventory items have been
      sold
      or disposed of except in the ordinary course of business.

     

    
      
        
        

      

      
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    4.17.  Accounts
      Receivable and Bad Debts.
      The
      accounts receivable of the Seller arising from the Acquired Business and taken
      into account in the determination of the Closing Working Capital (excluding
      any
      such accounts receivable included in any bad debt reserve, allowance for
      doubtful accounts, write down or write off taken into account in the
      determination of the Closing Working Capital) are valid and genuine and have
      arisen solely out of bona fide sales of goods delivered to the customers of
      Seller, or the performance of services or other business transactions of Seller,
      in the ordinary course of business of the Acquired Business. Except as set
      forth
      in Schedule
      4.17
      of the
      Disclosure Schedule, Seller has no standard terms of sale. 

     

    4.18.  Employees.
      Seller
      has complied in all material respects with all applicable Laws relating to
      the
      employment of labor relating to the operation of the Acquired Business,
      including provisions thereof relating to wages, hours, equal opportunity,
      collective bargaining, age, pregnancy, disability and sex discrimination and
      the
      payment of social security and other Taxes due in respect thereof. A list of
      the
      names and titles of and current annual base salary or hourly rates for all
      employees of the Acquired Business, together with a statement of the full amount
      and nature of any bonuses and other compensation paid or payable to or accrued
      for each such employee is entitled, has been delivered to Purchaser from Seller.
      Seller does not have any contracts of employment with any of the employees
      of
      the Acquired Business. Except as set forth in Schedule
      4.18
      of the
      Disclosure Schedule, there is no employment contract, employee benefit or
      incentive compensation plan or program, severance policy or program or any
      other
      plan or program to which the Seller is a party (a) that is or could, pursuant
      to
      its terms, be triggered or accelerated by reason of or in connection with the
      execution of this Agreement or the consummation of the transactions contemplated
      by this Agreement or (b) which contains “change in control” provisions pursuant
      to which the payment, vesting or funding of compensation or benefits is
      triggered or accelerated by reason of or in connection with the execution of
      or
      consummation of the transactions contemplated by this Agreement.

     

    4.19.  Necessary
      Property.
      Except
      as set forth in Schedule
      4.19
      of the
      Disclosure Schedule, the Purchased Assets, together with the assets subject
      to
      leases or licenses included in the Assumed Liabilities, contains all of the
      real, personal and mixed property, whether tangible or intangible, (i) necessary
      to operate the Acquired Business in the manner and to the extent presently
      conducted by Seller and (ii) used principally in the Acquired Business. Other
      than the Purchased Assets, no real, personal or mixed property, whether tangible
      or intangible, or owned, leased, or licensed, is currently being used in the
      conduct of the Acquired Business in the manner presently conducted by Seller
      other than the Retained Assets.

    
      
        
        

      

      
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    4.20.  Labor.

     

    (a) Except
      for the Union Agreement and as set forth in Schedule
      4.20
      of the
      Disclosure Schedule, Seller is not a party to any collective bargaining or
      similar agreement. Except as set forth in Schedule
      4.20
      of the
      Disclosure Schedule, no labor organization or group of employees of the Acquired
      Business has made a demand for recognition, has filed a petition seeking a
      representation proceeding or given notice to Seller or the Acquired Business
      of
      any intention to hold an election of a collective bargaining representative
      during the past three years. 

     

    (b) There
      is
      no strike, sympathy strike, sit-down, slow-down, stay-in, sick-out, walk-out,
      picketing, work stoppage, retarding of work or boycott that is materially and
      adversely affecting the Acquired Business (all of the foregoing referred to
      as
“Work Interference”), and, to the Knowledge of Seller, there are none pending or
      threatened and no claims have been made or are pending or exist that are
      reasonably likely to give rise to any Work Interference. Seller has not suffered
      any strike, slowdown, picketing or work stoppage by any group of employees
      that
      has materially and adversely affected the Acquired Business during the past
      three years.

     

    (c) Since
      January 1, 2006, Seller has not engaged in any reduction in force which triggers
      obligations under the WARN Act.

     

    (d) To
      the
      Knowledge of Seller, Seller has not engaged contractors who are not in
      compliance with the Fair Labor Standards Act, including provisions relating
      to
      the use of “oppressive child labor” or “oppressive industrial work”.

     

    (e) Except
      as
      set forth on Schedule
      4.20
      of the
      Disclosure Schedule, Seller is in full and complete compliance with all present
      and past collective bargaining agreements, memoranda of agreement, side letters,
      court, administrative, arbitration, ADR, or mediation decisions or awards,
      wage
      or benefit schedules and all other documents which reflect or pertain to
      understandings or practices communicated or agreed upon between Seller and
      any
      union representatives. Except as set forth on Schedule
      4.20
      of the
      Disclosure Schedule, there are no complaints, charges, claims, allegations
      or
      grievances pending or, to the Knowledge of Seller, threatened, that pertain
      to:
      (i) any federal, state or local labor, employment, wage or hour, workers
      compensation, disability or unemployment law, regulation or ordinance; (ii)
      any
      claim for wrongful discharge, breach of employment contract or
      employment-related tort; or (iii) any breach of restrictive covenant,
      non-competitive agreement or employee confidentiality agreement. Neither the
      Seller nor the Acquired Business has received notice that an unfair labor
      practice charge or complaint against the Seller or the Acquired Business is
      pending before the National Labor Relations Board or any similar state or
      foreign agency, nor, to the Knowledge of Seller, has such a charge or complaint
      been threatened. 

     

    (f) A
      true
      and complete copy of each current material written personnel policy, rule and
      procedure applicable to employees of the Seller or the Acquired Business has
      been delivered or made available to Purchaser and is listed on Schedule
      4.20
      of the
      Disclosure Schedule.

     

    
      
        
        

      

      
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    4.21.  Guaranties.
      Except
      as set forth on Schedule
      4.21,
      Seller
      is not a party to any Guaranty in connection with the Acquired Business, and
      no
      Person is a party to any Guaranty for the benefit of Seller in connection with
      the Acquired Business.

     

    4.22.  Customers
      and Suppliers; Supplies.
      

     

       (a) Schedule
      4.22(a)
      of the
      Disclosure Schedule sets forth (a) a list of the ten largest customers (measured
      by dollar volume) of the Acquired Business for the twelve-month period ending
      December 31, 2005 and the six-month period ending June 30, 2006, together with
      the approximate total sales to each such customer; and (b) a list of the ten
      largest suppliers of the Acquired Business, together with the approximate total
      amount of purchases made from such suppliers for the twelve-month period ending
      December 31, 2005 and the six-month period ending June 30, 2006 (collectively,
      the “Material Customers and Suppliers”). Except as set forth on Schedule 4.22(a)
      of the Disclosure Schedule, Seller has not received notice of, and to the
      Knowledge of Seller, there has not been, or will not be, any change that has
      had, may have, or will have a Material Adverse Effect on the relations of Seller
      with the Material Customers and Suppliers as a result of the announcement or
      consummation of the transactions contemplated by this Agreement and Seller
      has
      not received notice that any of the Material Customers and Suppliers has
      terminated or is contemplating terminating its relationship with Seller, and
      to
      the Knowledge of Seller, none of the Material Customers and Suppliers are
      contemplating terminating its relationship with Seller. Seller has not received
      notice of any, and to the Knowledge of Seller there has been no, work stoppage
      or other material adverse circumstances or conditions that may jeopardize or
      adversely affect its future relationship with any of the Material Customers
      and
      Suppliers. Seller does not have any pending disputes or controversies with
      (i)
      any of the Material Customers and Suppliers or (ii) any customers, suppliers,
      or
      distributors which dispute or controversy would reasonably be expected to have
      a
      Material Adverse Effect. Seller has not received notice of any and, to the
      Knowledge of Seller, there has not been any, state of facts which is reasonably
      likely to impair the relationship of the Acquired Business with any of the
      Material Customers and Suppliers. 

     

    (b) Schedule
      4.22(b)
      sets
      forth a list of all customers of the Acquired Business with annual purchases
      from Seller in excess of $25,000 which either commenced or ceased doing business
      with Seller during the twelve month period ending June 30, 2006. 

     

    4.23.  Absence
      of Certain Business Practices.
      

     

       (a) None
      of
      Seller or the Related Parties or, to the Knowledge of Seller, any other Person
      acting on behalf of Seller or the Acquired Business or any individual related
      to
      any of the foregoing Persons, acting alone or together, has with respect to
      the
      business or activities of Seller or the Acquired Business: (a) received,
      directly or indirectly, any rebates, payments, commissions, promotional
      allowances or any other economic benefits, regardless of their nature or type,
      from any customer, supplier, trading company, shipping company, governmental
      employee or other Person with whom Seller has done business directly or
      indirectly; or (b) directly or indirectly, given or agreed to give any gift
      or
      similar benefit to any customer, supplier, trading company, shipping company,
      governmental employee or other Person who is or may be in a position to help
      or
      hinder the business of Seller (or assist Seller in connection with any actual
      or
      proposed transaction) which (i) may subject Seller to any damage or penalty
      in
      any civil, criminal or governmental litigation or proceeding, (ii) if not given
      in the past, may have had an adverse effect on Seller or the Acquired Business
      or (iii) if not continued in the future, may materially adversely affect the
      Acquired Business or subject Seller or the Acquired Business to suit or penalty
      in any private or governmental litigation or proceeding. The Seller has
      conducted its business in a manner that complies with the U.S. Foreign Corrupt
      Practices Act. 

    
      
        
        

      

      
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    (b) Seller
      has not operated any business other than the Acquired Business.

     

    4.24.  Insolvency.
      Seller
      is able to pay its debts as they mature and the transfer of the Purchased Assets
      by Seller to Purchaser in accordance with the terms of this Agreement shall
      not
      constitute a voidable preference or transfer in fraud of any creditor under
      applicable federal or state insolvency law.

     

    4.25.  Banking
      Relationships.
      Schedule
      4.25
      of the
      Disclosure Schedule sets forth the names and locations of the primary bank
      accounts of the Seller used in connection with the Acquired Business. The Seller
      does not have any lockboxes and is not subject to any lockbox requirements
      by
      its lenders. 

     

    4.26.  Brokerage.
      Except
      as set forth on Schedule
      4.26
      of the
      Disclosure Schedule, no Person provided services as a broker, agent or finder
      on
      behalf of Seller or Seller Principals in connection with the transactions
      contemplated hereby.

     

    4.27.  FIRPTA.
      The
      Seller is not a “foreign person” within the meaning of Section 1445 of the Code.
      The Seller is not a U.S. real property interest within the meaning of Treasury
      Regulations Section 1.897-2(g)(1)(ii), (h)(1)(ii) or Section
      1.1445-2(c)(3)(i).

     

    OTHER
      THAN THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 4.1(a), THE
      REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE 4 OF THIS AGREEMENT SHALL
      IN
      NO WAY BE DEEMED TO APPLY TO THE WILMINGTON BUSINESS, THE WILMINGTON ACQUISITION
      OR THE WILMINGTON ASSETS. PURCHASER ACKNOWLEDGES THAT SELLER SHALL HAVE NO
      LIABILITY TO PURCHASER OR PURCHASER PARENT WITH RESPECT TO SUCH MATTERS AND
      PURCHASER AND PURCHASER PARENT SHALL LOOK SOLELY TO THE WILMINGTON SELLER AND
      THE REPRESENTATIONS AND WARRANTIES OF THE WILMINGTON SELLER IN THE WILMINGTON
      TRANSACTION DOCUMENTS IN CONNECTION WITH THE SAME. PURCHASER AND PURCHASER
      PARENT ACKNOWLEDGE THAT THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS
      ARTICLE 4 ARE SOLELY FOR THE BENEFIT OF PURCHASER, PURCHASER PARENT AND THEIR
      SUCCESSORS AND PERMITTED ASSIGNS. EXCEPT AS SET FORTH IN THIS AGREEMENT, THE
      ANCILLARY DOCUMENTS AND THE OTHER DOCUMENTS AND AGREEMENTS CONTEMPLATED HEREBY
      TO BE DELIVERED AT CLOSING, THE SELLER MAKES NO OTHER REPRESENTATIONS OR
      WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER, INCLUDING WITHOUT
      LIMITATION ANY REPRESENTATION OR WARRANTY REGARDING THE CONDITION, QUALITY,
      MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY PURCHASED ASSET
      AND
      ANY SUCH REPRESENTATION OR WARRANTY IS HEREBY EXPRESSLY DISCLAIMED.

     

    
      
        
        

      

      
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    5.  REPRESENTATIONS
      AND WARRANTIES WITH RESPECT TO PURCHASER AND PURCHASER PARENT.
      Purchaser and Purchaser Parent jointly and severally represent and warrant
      to
      Seller that:

     

    5.1.  Organizational
      Matters Regarding Purchaser and Purchaser Parent.

     

    (a) Organization
      and Qualification; Power.
      Each of
      Purchaser and Purchaser Parent is a corporation duly organized, validly existing
      and in good standing under the Laws of the State of Delaware. Each of Purchaser
      and Purchaser Parent is duly qualified or licensed, as the case may be, and
      in
      good standing in each jurisdiction where the nature of the activities of its
      business or the character of its assets require such qualification, except
      where
      the failure to be so qualified would not have an adverse affect on such
      party.

     

    (b) Authorization;
      Validity.
      Each of
      Purchaser and Purchaser Parent has all requisite power and authority to enter
      into this Agreement, the Ancillary Documents to which it is a named party and
      the related agreements, documents and instruments referred to herein or
      contemplated hereby and to carry out its obligations hereunder and thereunder.
      The execution and delivery by each of Purchaser and Purchaser Parent of this
      Agreement, the Ancillary Documents to which it is a named party and the related
      agreements, documents and instruments referred to herein or contemplated hereby
      and the consummation by Purchaser and Purchaser Parent of the transactions
      contemplated hereby and thereby have been duly authorized by the Board of
      Directors of Purchaser and Purchaser Parent and, if necessary, the shareholders
      of Purchaser and Purchaser Parent. No further act or proceeding on the part
      of
      each of Purchaser or Purchaser Parent is necessary to authorize this Agreement,
      the Ancillary Documents to which it is a named party or any related documents
      or
      instruments to be executed and delivered by Purchaser or Purchaser Parent
      pursuant hereto or thereto or the consummation of the transactions contemplated
      hereby or thereby. This Agreement constitutes, and when executed and delivered
      the Ancillary Documents to which Purchaser or Purchaser Parent is a named party
      and the related agreements, documents and instruments to be executed and
      delivered by Purchaser and Purchaser Parent pursuant hereto will constitute
      the
      valid and legally binding obligations of Purchaser and Purchaser Parent, as
      the
      case may be, enforceable against such party in accordance with their respective
      terms, except as may be limited by bankruptcy, insolvency, reorganization or
      other Laws affecting creditors’ rights generally, and by general equitable
      principles. 

     

    (c) Compliance;
      Binding Effect.
      The
      execution, delivery and performance of this Agreement, the Ancillary Documents
      and the related agreements and instruments referred to herein or therein or
      contemplated hereby or thereby and the purchase of the Purchased Assets and
      the
      assumption of the Assumed Liabilities will not: (i) violate any provisions
      of
      the Certificate of Incorporation or Bylaws of Purchaser or Purchaser Parent
      or
      any provision of applicable Law; (ii) constitute a default under, or constitute
      an event which with or without the giving of notice or the lapse of time or
      both
      would become a default under any material contract to which Purchaser or
      Purchaser Parent is a party or by which Purchaser or Purchaser Parent is bound;
      or (iii) violate or conflict with any Order to which Purchaser or Purchaser
      Parent is subject or bound.

     

    5.2.  Governmental
      Consents.
      No
      consent, approval, authorization, or other action by or filing with any
      Governmental Authority is required for the execution, delivery or performance
      by
      Purchaser or Purchaser Parent of this Agreement or the transactions contemplated
      by this Agreement.

     

    
      
        
        

      

      
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    5.3.  Litigation.
      To the
      knowledge of Purchaser and Purchaser Parent, there is no action, claim, suit
      or
      proceeding pending or threatened against Purchaser which questions the legality,
      validity or propriety of the transactions contemplated by this
      Agreement.

     

    5.4.  Brokerage.
      Except
      as set forth on Schedule
      5.4,
      no
      Person provided services as a broker, agent or finder on behalf of Purchaser
      or
      Purchaser Parent in connection with the transactions contemplated hereby.

     

    EXCEPT
      AS
      SET FORTH IN THIS AGREEMENT, THE ANCILLARY DOCUMENTS AND THE OTHER DOCUMENTS
      AND
      AGREEMENTS CONTEMPLATED HEREBY TO BE DELIVERED AT CLOSING, NEITHER PURCHASER
      NOR
      PURCHASER PARENT MAKES ANY OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR
      IMPLIED, OF ANY KIND WHATSOEVER AND ANY SUCH REPRESENTATION OR WARRANTY IS
      HEREBY EXPRESSLY DISCLAIMED. SELLER ACKNOWLEDGES THAT THE REPRESENTATIONS AND
      WARRANTIES SET FORTH IN THIS ARTICLE 5 ARE SOLELY FOR THE BENEFIT OF SELLER
      AND
      ITS SUCCESSORS AND PERMITTED ASSIGNS. 

     

    6.  CLOSING.

     

    6.1.  Closing
      Date.
      Provided that (i) each of the conditions set forth in Section 10 and 11 are
      satisfied or waived, The Closing of the transactions provided for herein shall
      take place on October 3, 2006, or on such other date as is mutually agreeable
      to
      Seller and Purchaser; provided, that upon receipt of a Material Disclosure
      Schedule Change by Purchaser within seven (7) Business Days prior to the Closing
      Date, Purchaser may, at its election in writing, delay the Closing Date to
      the
      date that is up to seven (7) Business Days after its receipt of such Material
      Disclosure Schedule Change in order for it to further investigate the matters
      described therein. The consummation of the transactions contemplated hereby
      shall be effective as of the Effective Time.

     

    6.2.  Closing
      Deliveries.
      The
      following items shall be delivered by the Parties at Closing:

     

    (a) By
      Seller.
      At the
      Closing, Seller shall execute and deliver to, or cause to be executed and
      delivered to, the Purchaser the following:

     

    (i) bills
      of
      sale, assignment documents and other instruments of transfer duly executed
      by
      the Seller, which are reasonably requested by Purchaser to vest in Purchaser
      title to the Purchased Assets, including a bargain and sale with covenants
      against grantor’s acts type deed with respect to the transfer of the Ohio Real
      Estate;

     

    (ii) the
      Assignment and Assumption Agreement and Bill of Sale and the Escrow Agreement,
      each duly executed by the Seller;

     

    
      
        
        

      

      
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    (iii) a
      certificate reasonably acceptable to Purchaser, dated the Closing Date, executed
      by the Secretary of Seller certifying, representing and warranting (i) the
      adoption of resolutions of the Board of Managers of Seller authorizing the
      execution, delivery and performance of this Agreement and the related
      agreements, documents and instruments referred to herein and the respective
      transactions contemplated hereby and thereby, and (ii) a true and complete
      copy
      certified certificate of formation (as filed with the Secretary of State of
      the
      State of Delaware) and the operating agreement of Seller, each as amended
      through the Closing;

     

    (iv) a
      certificate reasonably acceptable to Purchaser, dated the Closing Date, executed
      by the President of Seller, certifying, representing and warranting that (i)
      as
      of the Closing the conditions set forth in Sections 10.1, 10.2, and 10.5 have
      been satisfied and (ii) the Audited Financial Statements were prepared in
      accordance with Seller’s books of account and records and GAAP and present
      fairly in all material respects the financial condition of the Acquired Business
      as of the respective dates of such Audited Financial Statements and the
      respective periods covered thereby;

     

    (v) an
      assignment of the lease pertaining to the Leased Real Property, executed by
      Seller (together with applicable landlord consents), and an estoppel and
      non-disturbance agreement from the landlord of the Leased Real Property in
      a
      form reasonably satisfactory to Purchaser;

     

    (vi) a
      good
      standing certificate from the jurisdiction of Seller’s organization and from the
      States of Ohio and Illinois dated not more than thirty (30) days prior to the
      Closing Date;

     

    (vii) a
      certificate in form and substance reasonably acceptable to Purchaser
      establishing that the transactions contemplated by this Agreement are not
      subject to withholding under Section 1445 of the Code;

     

    (viii) an
      executed Restrictive Covenant Agreement from each of the Seller Principals
      in
      the forms annexed hereto as Exhibits
      D(i), (ii) and (iii);

     

    (ix) the
      Employment and Consulting Agreements as executed by each employee or consultant,
      as the case may be, named as a party thereto; 

     

    (x)  the
      Stock
      Purchase Agreement executed by Seller;

     

    (xi) final
      executed payoff and termination letters and Lien and mortgage releases in a
      form
      reasonably satisfactory to Purchaser (and suitable for filing with appropriate
      Governmental Authorities) in connection with the termination of the Indebtedness
      set forth on Schedule
      6.2(a)(xi)
      attached
      hereto and any other debt for borrowed money that is secured by the assets
      of
      the Acquired Business;

     

    (xii) appropriate
      documentation executed by Seller consenting to the transfer of all trade names,
      assumed names and foreign qualifications filed by Seller referencing the name
      “Concord Steel”, “Concord Steel Company LLC”, or “Concord Steel Company of
      Illinois LLC” (or any derivative thereof) in form suitable for filing with the
      appropriate Governmental Authorities in Delaware, Illinois and Ohio;
      and

    
      
        
        

      

      
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    (xiii) a
      favorable opinion of counsel to Seller, in form reasonably satisfactory to
      counsel to Purchaser, in connection with this Agreement and the transactions
      contemplated hereby (and, to the extent such opinions are required by any of
      the
      lenders to the Purchaser as a condition to making the loans to the Purchaser
      referenced in the Commitment Letter, together with a reliance letter or reliance
      language in favor of Purchaser’s lender(s) set forth in the Commitment Letter on
      commercially reasonable terms and conditions and subject to commercially
      reasonable qualifications as agreed by Seller and Purchaser’s
      Lender(s)).

     

    (b) By
      Purchaser.
      At the
      Closing, Purchaser shall execute and deliver to, or cause to be executed and
      delivered to, the Seller the following:

     

    (i) the
      Assignment and Assumption Agreement and Bill of Sale and the Escrow Agreement,
      each duly executed by Purchaser;

     

    (ii) an
      assumption of the lease pertaining to the Leased Real Property, executed by
      Purchaser;

     

    (iii) a
      certificate reasonably acceptable to Seller, dated the Closing Date, executed
      by
      an officer of Purchaser, certifying, representing and warranting (i) the
      adoption of resolutions of the Board of Directors of Purchaser authorizing
      the
      execution, delivery and performance of this Agreement and the related
      agreements, documents and instruments referred to herein and the respective
      transactions contemplated hereby and thereby, and (ii) a true and complete
      copy
      of the Certificate of Incorporation of Purchaser (as filed with the Secretary
      of
      State of Delaware) and the Bylaws of Purchaser;

     

    (iv) a
      certificate reasonably acceptable to Seller, dated the Closing Date, executed
      by
      an officer of Purchaser Parent, certifying, representing and warranting (i)
      the
      adoption of resolutions of the Board of Directors of Purchaser Parent
      authorizing the execution, delivery and performance of this Agreement and the
      related agreements, documents and instruments referred to herein and the
      respective transactions contemplated hereby and thereby, and (ii) a true and
      complete copy of the Certificate of Incorporation of Purchaser (as filed with
      the Secretary of State of Delaware) and the Bylaws of Purchaser
      Parent;

     

    (v) a
      certificate reasonably acceptable to Seller, dated the Closing Date, executed
      by
      an officer of Purchaser and Purchaser Parent, certifying, representing and
      warranting that, as of the Closing the conditions set forth in Sections 11.1
      and
      11.2 have been satisfied; 

     

    (vi) a
      resale
      certificate with respect to the inventory included in the Purchased Assets,
      duly
      executed by Purchaser; 

     

    (vii) payment
      by wire transfer of the Purchase Price less the Escrow Amount to Seller and
      the
      deposit of the Escrow Amount with the Escrow Agent as provided in Section 2.3(b)
      of this Agreement; 

     

    (viii) the
      Employment and Consulting Agreements executed by Purchaser Parent;

     

    
      
        
        

      

      
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    (ix) the
      Stock
      Purchase Agreement executed by Purchaser; and

     

    (x) a
      favorable opinion of special counsel to Purchaser, in form reasonably
      satisfactory to counsel to Seller, in connection with this Agreement and the
      transactions contemplated hereby.

     

    7.  COVENANTS
      AND AGREEMENTS OF SELLER.

     

    7.1.  Access
      to Information and Records; Assistance.
      During
      the period prior to the Closing, Seller shall provide Purchaser and its proposed
      lenders and investors, and their respective counsel, accountants and other
      representatives (i) reasonable access, at times reasonably agreed to by Seller,
      to the facilities, properties, books, records, contracts and documents of the
      Acquired Business for the purpose of such inspection, investigation, copying
      and
      testing as such parties reasonably deem appropriate in connection with the
      transactions contemplated by this Agreement and furnish to Purchaser and its
      representatives all information (including financial and operating data and
      reports) with respect to the business and affairs of the Acquired Business
      as
      Purchaser may reasonably request from time to time, (ii) with the prior consent
      of the Seller in each instance (which shall not be unreasonably withheld or
      delayed), access to managers, officers, accountants, employees, agents and
      representatives for the purposes of such meetings and communications as
      Purchaser reasonably desires, (iii) with the prior consent of the Seller in
      each
      instance, access to vendors, customers and others having business dealings
      with
      the Acquired Business, and (iv) reasonable assistance in connection with the
      securing of financing for the purchase of the Acquired Business, including
      the
      preparation of summary data as may be reasonably requested. Purchaser shall
      coordinate all such access through Seller. Unless otherwise agreed, Purchaser
      shall provide written notice at least two (2) business days prior to the day
      on
      which any access is requested.

     

    7.2.  Conduct
      of Business Pending the Closing.
      The
      Seller shall conduct the Acquired Business in the ordinary course of business,
      preserve intact its business organization, and use its commercially reasonable
      efforts to keep available the services of its employees in the ordinary course
      of business, maintain satisfactory relationships with suppliers, distributors,
      customers and others having material business relationships with it and not
      materially change its methods of purchase, sale, management accounting, or
      operation. Without the prior written consent of Purchaser (which consent will
      not be unreasonably withheld or delayed), the Seller shall not knowingly commit
      or omit to do any act that (i) would cause a material breach of any material
      agreement, commitment or covenant of Sellers contained in this Agreement or
      (ii)
      would cause the representations and warranties as set forth in Article 4 to
      become untrue in any material respect. 

     

    In
      furtherance of the foregoing:

     

    (a) from
      the
      date of this Agreement until the earlier of the Closing Date and the termination
      of this Agreement pursuant to the terms hereof, unless Purchaser has consented
      in writing thereto (which consent shall not be unreasonably withheld,
      conditioned or delayed), or except as otherwise expressly set forth in this
      Agreement, the Seller shall cause the Acquired Business to:

    
      
        
        

      

      
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    (i) conduct
      all business, financial, and other operations, including the payment of all
      accounts payable (except as may be permitted under Section 7.2(c) hereof) and
      other routine and customary expenses in the ordinary course of
      business;

     

    (ii) use
      all
      commercially reasonable efforts: (A) to preserve intact its business
      organizations and goodwill, (B) to keep available the services of its officers
      and employees, and (C) to maintain satisfactory relationships with those Persons
      with which it has business relationships; and

     

    (iii) upon
      the
      discovery thereof, promptly (but in no event more than two Business Days after
      discovery) notify Purchaser of the occurrence of (A) any breach of any
      representation or warranty of Seller contained herein, (B) any lawsuits, claims,
      proceedings or investigations that after the date hereof are threatened or
      commenced against the Seller or against any officer, director, employee,
      consultant, agent or equityholder thereof with respect to the affairs of the
      Seller or the Acquired Business, (C) any notice or other communication from
      any
      Person party to the Contracts alleging that the consent of such Person is or
      may
      be required in connection with the transactions contemplated by this Agreement,
      and (D) any notice or other communication from any Governmental Authority (I)
      in
      connection with the transactions contemplated by this Agreement or (II) that
      could materially affect the Acquired Business or Seller or their respective
      financial conditions.

     

    (b) Without
      limiting the generality of Section 7.2(a), from and after the date of this
      Agreement until the earlier of the Closing Date and the termination of this
      Agreement, except for actions required to be taken by Seller in the performance
      of its respective obligations under the Contracts, unless Purchaser has
      consented in writing thereto (which consent shall not be unreasonably withheld,
      conditioned or delayed) or except as otherwise expressly contemplated or
      permitted by this Agreement, Seller shall not, and shall cause the Wilmington
      Purchaser not to:

     

    (i) acquire
      by merger, purchase or any other manner, any business, entity or division or
      make an investment in, or enter into a joint venture with, any third party
      other
      than the Wilmington Acquisition;

     

    (ii) except
      as
      would not have a material and adverse effect on the Acquired Business, the
      Purchased Assets or the ability to of the Seller to consummate the transactions
      contemplated by this Agreement or the Ancillary Documents, enter into any
      agreement (a) which contains any restrictive covenants or limits the ability
      of
      Seller to conduct business in any jurisdiction, (b) which relates to any joint
      venture or similar arrangement with respect to any material distribution or
      supply agreement other than in the ordinary course of business, or (c) with
      any
      Affiliate;

     

    (iii) except
      as
      would not have an adverse effect on the Acquired Business after the Closing,
      the
      Purchased Assets or the ability of the Seller to consummate the transactions
      contemplated by this Agreement or the Ancillary Documents, grant any severance
      or termination pay to, or enter into any new employment, consulting, change
      of
      control, retention, salary continuation or severance agreement with, any
      officer, manager, member of Seller;

    
      
        
        

      

      
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    (iv) except
      as
      would not have an adverse effect on the Acquired Business, the Purchased Assets
      or the ability to of the Seller to consummate the transactions contemplated
      by
      this Agreement or the Ancillary Documents, (A) transfer, sell or otherwise
      dispose of any of its assets other than (I) inventory or obsolete or damaged
      equipment that is not currently used or usable (in an amount not to exceed
      Twenty-Five Thousand Dollars ($25,000) in the aggregate) in the ordinary course
      of business and (II) such assets as are required to consummate the Wilmington
      Acquisition, or (B) license, mortgage, encumber or lease any of its
      assets,

     

    (v) make
      any
      capital expenditures or otherwise acquire any material property or assets,
      except for (A) purchases of supplies or capital equipment in the ordinary course
      of business and having a price of less than Fifty Thousand Dollars ($50,000)
      and
      except for the purchase of raw materials and other inventory in the ordinary
      course of business; provided, that Seller may make any capital expenditures
      forecasted by the Seller and disclosed to Purchaser in writing prior to the
      date
      hereof, and (B) such property and assets purchased pursuant to the Wilmington
      Acquisition;

     

    (vi) except
      as
      would not have an adverse effect on the Acquired Business, the Purchased Assets
      or the ability to of the Seller to consummate the transactions contemplated
      by
      this Agreement or the Ancillary Documents, incur, assume, guarantee or otherwise
      become liable for any indebtedness for borrowed money, including, without
      limitation, capital leases, in excess of Fifty Thousand Dollars ($50,000),
      individually, or One Hundred Thousand Dollars ($100,000) in the aggregate,
      except (A) indebtedness to trade creditors of Seller or its Subsidiaries, in
      the
      ordinary course of business (B) indebtedness incurred for the purpose of
      consummating the Wilmington Acquisition or (C) additional draws on any credit
      facility of the Seller existing as of the date hereof and set forth on
Schedule
      4.10.
      

     

    (vii) except
      as
      would not have a material and adverse effect on the Acquired Business, the
      Purchased Assets or the ability to of the Seller to consummate the transactions
      contemplated by this Agreement or the Ancillary Documents, make or forgive
      any
      loans, advances or capital contributions to, or investments in, any other
      Person;

     

    (viii) bid
      for
      or enter into any agreement or contract which requires the payment or potential
      payment of more than One Hundred Fifty Thousand Dollars ($150,000), or receipt
      or potential receipt by Seller or the Wilmington Purchaser of more than Two
      Hundred Fifty Thousand Dollars ($250,000) other than pursuant to the Wilmington
      Acquisition; 

     

    (ix) except
      as
      would not have an adverse effect on the Acquired Business, the Purchased Assets
      or the ability to of the Seller to consummate the transactions contemplated
      by
      this Agreement or the Ancillary Documents, modify, amend, terminate or waive
      any
      rights under any of it written agreements;

     

    (x) except
      (i) as may be required of Seller or the Wilmington Purchaser under any plan,
      agreement, policy, arrangement, or obligation currently in effect, or as
      required by Laws or (ii) with respect to the payment of the Employee Bonuses
      on
      or prior to the Closing Date: (A) increase the compensation, severance, bonus
      or, other benefits payable or to become payable to any of the managers, officers
      or employees of the Seller or the Wilmington Purchaser other than in the
      ordinary course of business, or (B) establish, adopt, enter into, amend or
      modify in any material respect any collective bargaining agreement, employee
      benefit plan, trust, fund, policy or arrangement for the benefit of any current
      or former managers, officers or employees of the Seller except pursuant to
      the
      Wilmington Acquisition;

     

    
      
        
        

      

      
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    (xi) take
      any
      action to change accounting policies, procedures or practices, except as
      required by a change in GAAP or Laws after the date hereof (“Reporting
      Requirements”)

     

    (xii) materially
      change any method of reporting income, deductions or other material items for
      income Tax purposes, make or change any material election with respect to Taxes,
      agree to or settle any material claim or assessment in respect of Taxes, or
      agree to an extension or waiver of the limitation period to any material claim
      or assessment in respect of Taxes, other than in the ordinary course of business
      or as required by Reporting Requirements;

     

    (xiii) settle
      or
      knowingly compromise any claims identified on Schedule
      4.6(a)
      of the
      Disclosure Schedule, or other pending or threatened suit, action, or claim
      which
      would require the payment by the Seller, the Wilmington Purchaser or the
      Acquired Business of more than Fifty Thousand Dollars ($50,000) or would impose
      a restriction on the business, assets or operations of the Acquired Business
      following the Closing Date;

     

    (xiv) other
      than in the ordinary course of business, accelerate, or accept payment at a
      discount in respect of any accounts receivable or trade receivables;

     

    (xv) other
      than in the ordinary course of business or pursuant to Section 7.2(c) hereof,
      delay any payment of any accounts payable beyond the respective payment
      deadlines; or

     

    (xvi) agree
      orally or in writing to take any of the actions prohibited by this Section
      7.2(b).

     

    (c) Each
      of
      Purchaser and Purchaser Parent acknowledges that the Seller may from the date
      hereof through the date on which the Estimated Closing Balance Sheet is
      delivered (i) delay the payment of certain accounts payable, or (ii) make cash
      distributions to its members, in each instance solely for the purposes of
      ensuring that the Closing Working Capital as reflected on the Estimated Closing
      Balance Sheet shall not exceed $12,700,000.00, and that, in the period from
      the
      delivery of the Estimated Working Balance Sheet to the Closing. 

     

    7.3.  Exclusivity.
      Until
      the
      Closing occurs or this Agreement is terminated in accordance with its terms,
      Seller covenants and agrees that neither Seller nor any of its equityholders,
      managers, members, consultants, agents or otherwise will, directly or
      indirectly, (i) solicit, initiate or encourage the submission of inquiries,
      proposals or offers from any Person other than Purchaser, Purchaser Parent
      or
      their Affiliates or representatives relating in any way to (a) any investment
      in
      the Seller, (b) any acquisition of direct or indirect control of the Seller,
      (c)
      the purchase of any of the Purchased Assets, except for inventory sold in the
      ordinary course of business, (d) the entering into any lease, exchange,
      mortgage, pledge, transfer or other disposition of any of the Purchased Assets,
      or (e) any business combination or other transaction involving the Seller,
      including without limitation, any merger, consolidation, acquisition, tender
      or
      exchange offer purchase, re capitalization, reorganization, dissolution,
      liquidation, or issuance or disposition of any nature or other transaction
      which
      would involve the Seller (each, an “Acquisition Proposal”), (ii) participate in
      any discussions or negotiations regarding an Acquisition Proposal or furnish
      to
      any Person any information for any purpose inconsistent with the foregoing,
      (iii) otherwise cooperate in any way with, or assist or participate in,
      facilitate or encourage, any effort or attempt by any other Person to do or
      seek
      any of the foregoing or (iv) formulate or disclose any intention, plan or
      arrangement inconsistent with the foregoing. Seller will (A) immediately notify
      Purchaser in writing if any discussions or negotiations are sought to be
      initiated, any inquiry or proposal is made, or any information is requested
      by
      any Person with respect to any Acquisition Proposal or proposal which could
      lead
      to an Acquisition Proposal, (B) immediately notify Purchaser of all material
      terms of any Acquisition Proposal including the identity of the Person making
      the Acquisition Proposal or the request for information, and (C) in the event
      a
      third party makes a written offer or proposal to the Seller or any of the
      members of Seller with respect to any Acquisition Proposal, the Seller will
      promptly send to Purchaser a complete copy of any such written offer or
      proposal. The Seller shall, and shall use commercially reasonable efforts to
      ensure that its managers, members, employees, investment bankers, attorneys,
      accountants and other agents, immediately cease and cause to be terminated
      all
      discussions and negotiations that have taken place prior to the date hereof,
      if
      any, with any Persons with respect to any Acquisition Proposal.

     

    
      
        
        

      

      
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    7.4.  Interim
      Financial Statements.
      Following
      execution hereof and prior to the Closing Date, Seller will deliver to Purchaser
      Interim Financial Statements as soon as available and in all events within
      fifteen (15) days following the end of each calendar month for such month and
      for the period from July 1, 2006 to the end of such calendar month; provided,
      that Seller shall deliver the Interim Financial Statements for the month prior
      to the Closing together with the Estimated Closing Balance Sheet, if the Closing
      occurs prior to the 15th day of the month.

     

    7.5.  Further
      Acts.
      

     

    (a) Following
      the Closing, Seller shall, without cost or expense to Purchaser, (i) promptly
      execute and deliver to or cause to be executed and delivered to Purchaser such
      further instruments of transfer and conveyance and take such other action as
      Purchaser may reasonably require to carry out more effectively and completely
      the sale and transfer of the Purchased Assets contemplated by this Agreement
      and
      to vest, perfect and confirm Purchaser’s ownership in the Purchased Assets, and
      (ii) should any funds or property sold to Purchaser pursuant to this Agreement
      be paid or delivered to Seller, such funds or properties shall be held in trust
      for Purchaser by Seller and Seller shall promptly pay and deliver the same
      to
      Purchaser. 

     

    (b) The
      Seller hereby constitutes and appoints, effective as of the Closing Date, the
      Purchaser, its successors and assigns as the true and lawful attorney of the
      Seller with full power of substitution in the name of the Purchaser or in the
      name of the Seller but for the benefit of the Purchaser (a) to collect for
      the
      account of the Purchaser all accounts receivable of the Acquired Business and
      any other item of Purchased Assets and (b) to institute and prosecute all
      proceedings which the Purchaser may in its discretion deem proper in order
      to
      collect all accounts receivable of the Acquired Business or to assert or enforce
      any right, title or interest in, to or under the Purchased Assets and to defend
      or compromise (subject to Section 13 hereof, if applicable) any and all actions,
      suits or proceedings in respect of any of the Purchased Assets and the Acquired
      Business. The Purchaser shall be entitled to retain for its own account any
      amounts collected pursuant to the foregoing powers, including any amounts
      payable as interest in respect thereof.

     

    
      
        
        

      

      
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    7.6.  Payment
      of Certain Indebtedness.
      The
      Seller shall deliver to Purchaser no later than two Business Days prior to
      Closing payoff, lien and related termination letters in form reasonably
      acceptable to Purchaser with respect to the indebtedness to evidence the
      termination and discharge of the debt set forth on Schedule
      6.2(a)(xi)
      and all
      Liens related thereto.

     

    7.7.  Restrictive
      Covenants.

     

    (a) No
      Solicitation; No Interference.
      The
      Seller shall not, for a period of three years from the Closing Date, directly
      or
      indirectly, for its own account or jointly with or for or on behalf of any
      other
      Person, as principal, agent or otherwise, (i) recruit, solicit, induce to leave
      or hire any Person who is, or has been during the previous one year, an
      employee, consultant or agent of Purchaser or the Acquired Business, (ii) call
      upon, accept Competitive Business from (as defined below), or solicit the
      Competitive Business of any Person who is, or who had been at any time during
      the preceding two (2) years, a customer, known prospective customer, or supplier
      of the Acquired Business, or (iii) disrupt or attempt to disrupt any
      relationship, contractual or otherwise, between Purchaser or the Acquired
      Business and any of their respective customers, clients, suppliers, lessors
      or
      landlords. 

     

    (b) Non-Competition.
      Seller
      acknowledges that in order to assure Purchaser that Purchaser will retain the
      value of the Acquired Business as a “going concern,” the Seller on and subject
      to the terms set forth in this Section 7.7, shall not utilize its special
      knowledge of the Acquired Business and its relationships with customers,
      prospective customers, suppliers and others to compete with the Purchaser by
      engaging in Competitive Business. For a period of three (3) years beginning
      on
      the Closing Date, the Seller shall not engage or have an interest, anywhere
      in
      the world (except as an owner of two percent (2%) or less of the stock of any
      company listed on a national securities exchange or traded in the
      over-the-counter market), whether through the investment of capital, lending
      of
      money or property, rendering of services or capital, or otherwise, in any
      Competitive Business. The Seller acknowledges that compliance with the
      restrictions set forth in this Section 7.7(b) will not prevent any Person from
      earning a livelihood. 

     

    (c) Non-Use
      of Intellectual Property.
      Other
      than as set forth on Schedule
      7.7(c)
      of the
      Disclosure Schedule, the Seller shall not at any time, directly or indirectly,
      use or purport to authorize any Person to use any name, mark, copyright, logo,
      trade dress or other identifying words or images which are the same as or
      similar to those used currently or in the past by the Acquired Business in
      connection with any product or service, whether or not such use would be in
      a
      business competitive with that of the Acquired Business.

     

    (d) Certain
      Acknowledgements and Remedies.
      The
      restrictions set forth in this Section 7.7 are considered by the Parties to
      be
      reasonable for the purposes of protecting the value of the Acquired Business
      on
      a “going concern” basis. The Seller acknowledges that the Purchaser would be
      irreparably harmed and that monetary damages would not provide an adequate
      remedy to Purchaser in the event the covenants contained in this Section 7.7
      were not complied with in accordance with their terms. Accordingly, Seller
      agrees that any breach or threatened breach by it any provision of this Section
      7.7 shall entitle Purchaser to injunctive and other equitable relief to secure
      the enforcement of these provisions, in addition to any other remedies
      (including Losses) which may be available to the Purchaser. If any party
      breaches the covenants set forth in this Section 7.7, the running of the three
      (3) year non-compete period described therein shall be tolled for so long as
      such breach continues. It is the desire and intent of the parties that the
      provisions of this Section 7.7 be enforced to the fullest extent permissible
      under the laws and public policies of each jurisdiction in which enforcement
      is
      sought. If any provisions of this Section 7.7 relating to the time period,
      scope
      of activities or geographic area of restrictions is declared by a court of
      competent jurisdiction to exceed the maximum permissible time period, scope
      of
      activities or geographic area, as the case may be, the time period, scope of
      activities or geographic area shall be reduced to the maximum which such court
      deems enforceable. If any provision of this Section 7.7 other than those
      described in the preceding sentence are adjudicated to be invalid or
      unenforceable, the invalid or unenforceable provisions shall be deemed amended
      (with respect only to the jurisdiction in which such adjudication is made)
      in
      such manner as to render them enforceable and to effectuate as nearly as
      possible the original intentions and agreement of the parties. 

     

    
      
        
        

      

      
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    7.8.  Wilmington
      Acquisition.
      The
      Seller shall deliver to Purchaser all due diligence, documents and agreements
      with respect to the Wilmington Acquisition. 

     

    7.9.  Enterprise
      Zone Agreement.
      Seller
      shall use its reasonable commercial efforts to assign and transfer, and cause
      the Purchaser to have the continuing benefit of, the incentives provided to
      Seller pursuant to that certain Enterprise Zone Agreement by and between Seller
      and Board of Commissioners of Trumbull County, Ohio, dated March 27, 2002 (the
      “EZ Agreement”). To the extent Seller realizes any tax credits, refunds, rebates
      or disbursements under the EZ Agreement with respect to periods occurring on
      or
      after the Closing Date, Seller shall immediately transfer to the Purchaser
      an
      amount equal to Seller’s benefit upon realization thereof.

     

    7.10.  State
      Tax Clearances. On
      or
      prior to Closing, Seller shall (i) cooperate with Purchaser in filing a Form
      CBS-1 (Notice of Sale or Purchase of Business Assets) with the Illinois
      Department of Revenue and shall furnish all information needed to do so, and
      (ii) use its best efforts to furnish recent statements of account from the
      Ohio
      Department of Taxation with respect to withholding taxes, unemployment
      compensation, and other Ohio tax matters. If available, such statements of
      account may be provided by use of “online taxpayer account information” or other
      means, or if no written evidence is available, by oral advice from Ohio taxing
      officials on a conference call with the all Parties present.

     

    8.  COVENANTS
      AND AGREEMENTS OF PURCHASER.

     

    8.1.  Further
      Acts.
      On
      the
      Closing Date, and thereafter for a period of eighteen (18) months, Purchaser
      shall, without cost or expense to Seller, execute and deliver to or cause to
      be
      executed and delivered to Seller such further documents and take such other
      action as Seller may reasonably require to carry out and move effectively and
      completely the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    9.  MUTUAL
      COVENANTS AND AGREEMENTS.

     

    9.1.  Publicity.
      All
      notices, releases, statements and communications generally directed to
      employees, suppliers, customers, the public or the press relating to the
      transactions contemplated by this Agreement shall be made only at such times
      and
      in such manner as may be mutually agreed upon by Seller, Purchaser and Purchaser
      Parent; provided, however, that any Party may make a public announcement of
      the
      proposed transaction if such Party reasonably deems such public announcement
      or
      filing is necessary to comply with any Law or any rule or regulation of any
      securities exchange or securities quotation system and such Party shall, to
      the
      extent practicable, consult with the other Party with respect to such
      announcements and give reasonable prior written notice of its intent to issue
      such announcement. 

     

    9.2.  Disclosure
      of Certain Matters. Each
      of
      Purchaser, Purchaser Parent and Seller will provide the other with prompt
      written notice of any event, development or condition that (a) would cause
      any
      of such party’s representations and warranties to become untrue or misleading or
      which may affect its ability to consummate the transactions contemplated by
      this
      Agreement, (b) had it existed or been known on the date hereof would have been
      required to be disclosed under this Agreement, (c) gives such party any reason
      to believe that any of the conditions set forth in Articles 10 or 11 will not
      be
      satisfied, or (d) is of a nature that is or may be materially adverse to the
      operations, prospects or condition (financial or otherwise) of Seller or the
      Acquired Business; provided, that the delivery of any notice shall not limit
      or
      otherwise affect the remedies available hereunder to the party receiving notice.
      

     

    9.3.  Disclosure
      Schedule.

     

    (a) Disclosure
      Schedule.
      Contemporaneously with the execution and delivery of this Agreement, Seller
      is
      delivering to Purchaser the Disclosure Schedule. Each item set forth in the
      Disclosure Schedule is identified by reference to, or grouped under a heading
      referring to, or by specific cross-references to, a specific section or
      subsection of this Agreement. Capitalized terms used and not otherwise defined
      in the Disclosure Schedule shall have the respective meanings ascribed to them
      in this Agreement. The Disclosure Schedule is deemed to constitute an integral
      part of this Agreement and the matters set forth therein are deemed referred
      to
      by reference thereto in corresponding sections of this Agreement. Subject to
      the
      next sentence, the inclusion of any item in the Disclosure Schedule shall
      constitute disclosure for purposes of the section hereof specifically referenced
      therein, but shall not be construed as an indication of the materiality or
      lack
      of materiality of such item. Seller shall use its commercially reasonable
      efforts to number all matters noted in the Disclosure Schedule to correspond
      to
      the applicable section of this Agreement to which it refers, but it is
      understood that the failure to do so shall not constitute a breach of any
      representation or warranty made in this Agreement provided that such matter
      is
      disclosed in a manner that makes it reasonably apparent that it is relevant
      to
      another section or subsection of this Agreement. 

     

    (b) Notification
      of Change; Seller Updates to Schedules.
      During
      all periods prior to the Closing, Seller shall promptly notify Purchaser with
      respect to any matter, event or circumstance (i) arising on or before the date
      of this Agreement which was known by Seller and that would otherwise constitute
      a breach, violation or inaccuracy of any representation or warranty of Seller
      set forth herein, (ii) arising on or before the date of this Agreement which
      was
      not known by Seller and that would otherwise constitute a breach, violation
      or
      inaccuracy of any representation or warranty of Seller set forth herein, (iii)
      arising after the date of this Agreement that, if existing at, or occurring
      on
      the date of this Agreement, the Closing Date or any date in between the date
      of
      this Agreement and the Closing Date, would constitute a breach, violation or
      inaccuracy of any representation or warranty of Seller set forth herein or
      (iv)
      relating to a breach or violation of any covenant, agreement or obligation
      of
      Seller set forth herein. No notification of a matter, event or circumstance
      set
      forth in clause (i) or (iv) shall be deemed to cure any breach, violation or
      inaccuracy of any representation or warranty or a breach or violation of any
      covenant, agreement or obligation, nor limit or alter any of the
      representations, warranties, covenants, agreements or obligations of Seller
      set
      forth in this Agreement nor any rights or remedies Purchaser may have with
      respect thereto. Upon notification of a matter, event or circumstance specified
      in clause (ii) or (iii) above, Seller may update and supplement the Disclosure
      Schedule solely with respect to such matter, event or circumstance by written
      notice from Seller to Purchaser no later than two (2) days following the date
      on
      which Seller receives notice of same. If requested by Purchaser, Seller shall
      meet and discuss with Purchaser any such update or supplement to the Disclosure
      Schedule made by Seller if, absent such change, such matter, event or
      circumstance would result in a condition precedent set forth in Sections 10.1
      or
      10.5 hereof to remain unsatisfied (a “Material Disclosure Schedule Change”). If
      the Parties cannot resolve any differences regarding a Material Disclosure
      Schedule Change, then Purchaser shall be entitled to elect to either (a) waive
      the same and close the transactions contemplated hereby (in which case the
      representations and warranties contained herein shall be deemed to have been
      updated by Seller’s disclosure of such matters, events and circumstances but
      only to the extent resulting from matters, events and circumstances arising
      under (ii) or (iii) above) or (b) terminate this Agreement without liability
      to
      Purchaser, said election to be exercised no later than ten (10) days following
      the date on which Purchaser receives notice of such Material Disclosure Schedule
      Change.

     

    
      
        
        

      

      
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    9.4.  Confidentiality.
      Except
      as
      otherwise required in the performance of its obligations under this Agreement
      and except as otherwise required pursuant to Law or as may be required in
      connection with any filing by Purchaser with the Securities and Exchange
      Commission pursuant to the Securities Act or the Securities and Exchange Act,
      any non-public information received by Purchaser, Purchaser Parent, the Seller,
      or the advisors of any of the foregoing from another party hereto shall be
      kept
      confidential. Further, each of Purchaser, Purchaser Parent and the Seller
      acknowledge that the Confidential Information of the Acquired Business is
      valuable, special and unique assets that shall be kept confidential by the
      Seller after the Closing Date, if the Closing occurs, and if the Closing does
      not occur, by Purchaser and Purchaser Parent and after the termination of this
      Agreement pursuant to the terms hereof. Purchaser, Purchaser Parent and Seller
      shall be responsible for any disclosure by their respective Affiliates,
      employees, agents, contractors, officers, managers, members or partners. Upon
      any termination of this Agreement, each of Purchaser, Purchaser Parent and
      Seller shall, upon the request of the Person that provided such Confidential
      Information, promptly return any Confidential Information received from the
      other party and, upon request, shall destroy all copies of such information
      in
      its possession. Purchaser, Purchaser Parent and Seller acknowledge that each
      would not enter into this Agreement without the assurance that all Confidential
      Information will be used for the exclusive benefit of the Acquired Business.
      The
      terms and conditions of the Existing Confidentiality Agreement, to the extent
      not inconsistent with the terms of this Agreement, are hereby confirmed and
      acknowledged as obligations of the parties; provided, that the parties hereto
      agree that the Existing Confidentiality Agreement shall terminate at
      Closing.

     

    
      
        
        

      

      
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    9.5.  Access
      to Information.
      For
      a
      period of five (5) years after the Closing, Seller will grant to Purchaser
      and
      Purchaser Parent access to any relevant records related to the operation of
      the
      Acquired Business that is reasonably required by Purchaser and Purchaser Parent
      and not transferred hereunder, and Purchaser and Purchaser Parent will grant
      to
      Seller access to any relevant records related to the Acquired Business that
      is
      reasonably required by Seller and transferred hereunder. 

     

    9.6.  Commercially
      Reasonable Efforts; No Delay.
      Upon
      the
      terms and subject to the conditions hereof, each of the Parties hereto agrees
      to
      use its commercially reasonable efforts (i) to perform its obligations
      hereunder, and (ii) to take, or cause to be taken, all actions and to do, or
      cause to be done, all things necessary, proper or advisable to consummate the
      transactions contemplated hereby as promptly as practicable including the
      preparation and filing of all forms, registrations and notices required to
      be
      filed to consummate the Closing and the taking of such actions as are necessary
      to obtain any requisite approvals, authorizations, consents, orders, licenses,
      permits, qualifications, exemptions or waivers by any third party or
      Governmental Authority. In addition, no party hereto shall take any action
      after
      the date hereof that could reasonably be expected to materially delay the
      obtaining of, or result in not obtaining, any permission, approval or consent
      from any Governmental Authority or other Person required to be obtained prior
      to
      Closing. 

     

    9.7.  Employees.
      (a) Seller
      shall terminate or cause the termination of all employees set forth on the
      Purchaser Employee Schedule (as defined herein) as of the Closing Date and
      shall
      (i) timely pay pursuant to all applicable Law on or prior to the earlier to
      occur of (A) any date specified pursuant to Law with respect thereto and (B)
      fourteen calendar days after the Closing Date, all wages, pro rated bonuses
      and
      incentive payments, fringe benefits (including, but not limited to, profit
      share, the employer’s matching 401(k) Plan contributions on account of wages
      through the Closing Date, accrued vacation pay, sick pay, termination or
      severance payments and payroll Taxes) and unemployment taxes arising in
      connection with the operation of the Acquired Business through the end of such
      shift that occurs immediately prior to the Closing Date; and (ii) subject to
      Purchaser fulfilling its obligations set forth in Section 9.7(b), be responsible
      for any and all Liabilities to employees required under the Worker Adjustment
      and Retraining Notification Act of 1988, as amended (the “WARN Act”), similar
      state law and any other applicable Laws arising in connection with the operation
      of the Acquired Business through the end of the shift that occurs immediately
      prior to the Closing Date. Subject to Purchaser fulfilling its obligations
      set
      forth in Section 9.7(b), should any Liability occur as a result of the failure
      of Seller to comply with or give any required notice to employees under the
      WARN
      Act and any other applicable Law as a result of the termination of employees
      by
      Seller, Seller assumes all responsibility and Liability for any wages and
      benefits for employees of Seller who did not receive any such required notice
      and for civil penalties by local governments which may be imposed for failure
      to
      give such required notice, including without limitation fines and attorneys’
fees. All wages and fringe benefits of Hired Purchaser Employees shall be
      prorated as of the end of the shift that ends on the Closing Date. 

     

    (b) Purchaser
      shall consider all Employees for continued employment in the Acquired Business
      after the Closing but is not obligated to hire any Employee. Purchaser shall,
      prior to Closing, provide Seller with a list of Employees to whom Purchaser
      shall have made an offer of employment and which offer will become effective
      at
      Closing (the “Purchaser Employee Schedule”). Each of the employees set forth on
      the Purchaser Employee Schedule that commence work with Purchaser shall be
      referred to herein as “Hired Purchaser Employees”. Purchaser shall ensure that
      offers to the Hired Purchaser Employees shall be of a sufficient number in
      the
      aggregate and provide continued employment for a period after the Closing Date
      (not to exceed 60 days) in order to avoid triggering of a mass layoff or plant
      closing by the Seller under the WARN Act or state law of similar effect by
      reason of the transactions contemplated to occur at Closing in the absence
      of
      complying with the provisions of the WARN Act or state law of similar effect
      and
      Purchaser shall be responsible for any and all Liabilities to employees required
      under the WARN Act to the extent that it does not comply with the provisions
      of
      this Section 9.7(b). Schedule
      9.7(b)
      of the
      Disclosure Schedule sets forth each of those Persons presently electing COBRA
      coverage under the Existing Plans of the Seller and each of those Persons who
      have separated from employment by the Seller (other than those Persons
      separating from employment by the Seller in conjunction with the transactions
      contemplated hereby) and are presently entitled to elect COBRA coverage under
      the Existing Plans of the Seller (collectively, the “Pre-existing COBRA
      Participants”) and with respect to each Pre-existing COBRA Participant the date
      of such separation. Purchaser acknowledges and agrees that it shall be
      responsible for any and all COBRA obligations relating to the employees of
      the
      Acquired Business; provided, that all obligations with respect to the
      Pre-existing COBRA Participants shall be limited to those Persons set forth
      on
Schedule
      9.7(b)
      of the
      Disclosure Schedule. 

     

    
      
        
        

      

      
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    (c) It
      is
      understood and agreed that (i) Purchaser's expressed intention to extend offers
      of employment as set forth in this section shall not constitute any commitment,
      contract or understanding (express or implied) or any obligation on the part
      of
      Purchaser to an employment relationship of any fixed term or duration after
      Closing or upon any terms or conditions other than those that Purchaser may
      establish pursuant to individual offers of employment, and (ii) employment
      offered by Purchaser is "at will" and may be terminated by Purchaser or an
      employee at any time for any reason (subject to any written commitments to
      the
      contrary made by Purchaser or an employee and applicable law and regulation).
      Nothing in this Agreement shall be deemed to prevent or restrict in any way
      the
      right of Purchaser to terminate, reassign, promote or demote any of the Hired
      Purchaser Employees after the Closing or to change adversely or favorably the
      title, powers, duties, responsibilities, functions, locations, salaries, other
      compensation or terms or conditions of employment of such employees. Except
      as
      otherwise agreed in this Section 9.7, Purchaser will set its own initial terms
      and conditions of employment for the Hired Purchaser Employees and others it
      may
      hire, including work rules, benefits and salary and wage structure, all as
      permitted by Law. 

     

    (d) As
      of the
      Closing Date, all Employees who are hired by Purchaser shall cease to
      participate in any benefit plans sponsored or maintained by Seller for the
      benefit of Employees, and Seller shall be solely responsible for any continuing
      obligations and liabilities arising from such benefit plans. 

     

    (e) Seller
      agrees to cooperate with Purchaser in organizing interviews of the Employees
      by
      Purchaser and its representatives and to otherwise coordinate ongoing
      communications with the Employees. Seller further covenants and agrees, prior
      to
      the Closing, not to promote or advance any Employee without the prior written
      consent of Purchaser, other than such promotions or advancements made in the
      ordinary course of business.

     

    (f) Seller
      covenants that all Hired Purchaser Employees who are participants in Seller's
      retirement and savings plans, if any, shall retain their vested benefits
      thereunder as of the Closing Date in accordance with the terms thereof and
      Seller (or Seller's retirement or savings plans) shall retain sole Liability
      for
      the payment of such benefits as and when such Hired Purchaser Employees become
      eligible therefor under such plans. The parties hereto acknowledge that
      Purchaser shall not assume, maintain, or contribute to any employee pension
      plan
      or employee welfare benefit plan of Seller. Seller will not make or cause any
      transfer of, and Purchaser shall not under any circumstances be deemed to have
      assumed or accrued, any Liability with respect to pension or other Benefit
      Plans
      or assets of Seller. Purchaser shall not have any responsibility, Liability
      or
      obligation, whether to Employees, former employees, their beneficiaries or
      to
      any other Person, with respect to any Benefit Plans, practices, programs or
      arrangements (including the establishment, maintenance, operation, sponsorship
      or termination thereof and the notification and provision of COBRA coverage
      extension) maintained by Seller. Seller shall give any notices required by
      applicable Law and take whatever other actions with respect to the plans,
      programs and policies described in this Section 9.7 as may be necessary to
      carry
      out the arrangements described in this Section 9.7.

     

    
      
        
        

      

      
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    (g) 
      Seller
      and Purchaser shall provide each other with such plan documents and summary
      plan
      descriptions, employee data or other information to the extent reasonably
      required to carry out the arrangements described in this Section 9.7. If any
      of
      the arrangements described in this Section 9.7 are determined by the IRS or
      other Governmental Authority to be prohibited by applicable Law, Seller and
      Purchaser shall modify such arrangements to as closely as possible reflect
      their
      expressed intent and retain the allocation of economic benefits and burdens
      to
      the parties contemplated herein in a manner that is not prohibited by applicable
      Law.

     

    (h) Seller
      has provided or made available to Purchaser on or prior to the date hereof
      and
      the Closing Date properly completed and executed I-9 forms and attachments
      with
      respect to all Employees, except for such Employees as Seller certifies in
      writing to Purchaser are exempt from such requirement.

     

    (i) Seller
      and Purchaser acknowledge that (i) the Acquired Business is subject to the
      Union
      Agreement, and (ii) subject to the terms, conditions and limitations set forth
      in Section 3.2 hereof (A) at Closing, Purchaser shall assume the Union Agreement
      and (B) on and after the Closing Date, Purchaser shall be responsible for
      complying with the Union Agreement, including without limitation, making
      provision for any Benefit Plans that may be required thereunder; provided,
      that
      Seller shall be responsible for any and all matters relating to the Union
      Agreement which relate to the Acquired Business and its employees prior to
      the
      Closing Date.

     

    (j) Purchaser
      shall not assume any of the 401(k) or Health or Welfare Benefit Plans or
      policies of Seller (other than the life insurance policies specified in
Schedule
      2.1(h)).
      Effective on the Closing Date, Purchaser and/or Purchaser Parent will establish
      and sponsor new 401(k) Plans (for the Union and Non-Union employees of the
      Seller) and obtain new health insurance policies covering the employees of
      the
      Acquired Business with substantially the same benefits as received from Seller.
      In connection with the Concord Steel 401(k) Plan for Union employees and the
      Concord Steel 401(k) Plan for Non-Union employees, Seller (i) shall promptly
      permit withdrawal of participants’ account balances as required by Seller’s
      Plans’ rules and, if Seller elects to terminate its plan and seek IRS approval
      of such termination, (ii) shall not adopt any account freeze; (iii) shall vest
      all employees in employer match contributions in account balances as of the
      closing; (iv) shall transfer without acceleration or default all outstanding
      participant loans to Purchaser’s plans; (v) shall pay, if any, all surrender
      fees, market value adjustment fees, discontinuance fees in connection with
      distribution of account balances (provided that Purchaser shall reimburse
      one-half of such amount to Seller); and (vi) shall assist in enrollment of
      participants in Purchaser’s plans to facilitate roll over of account balances.

     

    
      
        
        

      

      
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    9.8.  Approvals
      and Consents.
      

     

    (a) To
      the
      extent that the assignment by Seller to Purchaser of any of the Contracts
      hereunder shall require the approval or consent of a party thereto and such
      approval or consent has not been obtained by the Closing, if the Purchaser
      and
      Seller agree to consummate the transactions contemplated by this Agreement,
      this
      Agreement shall not constitute an agreement to assign the same if an attempted
      assignment without such approval or consent would constitute a breach thereof
      and such Contract shall not be deemed to be assigned under any other provision
      hereof. If any such approval or consent of a third party that is necessary
      for
      the transfer of the Purchased Assets has not been obtained by the Closing,
      and
      the Purchaser and Seller agree to consummate the transactions contemplated
      by
      this Agreement, the Seller shall continue after Closing to use its commercially
      reasonable efforts to obtain such approval or consent.

     

    (b) If
      any of
      the Purchased Assets is not transferred to the Purchaser pursuant to this
      Agreement, the Seller and Purchaser shall cooperate in any commercially
      reasonable arrangement designed to provide the Purchaser with all of the
      material benefits of, and to have the Purchaser assume the burdens, liabilities,
      obligations and expenses expressly contemplated to be assumed by the Purchaser
      hereunder with respect to, such Purchased Assets. Seller shall take all
      commercially reasonable efforts requested to enforce for the benefit of the
      Purchaser any and all rights of the Seller with respect to any Purchased Assets
      that are not otherwise transferred pursuant to the provisions of this Agreement.
      Purchaser acknowledges and agrees that Seller’s agreement to undertake the
      actions contemplated by Sections 9.8(a) and 9.8(b) shall be in lieu of any
      damages that Purchaser may have and that Purchaser has expressly waived any
      conditions to Closing with respect to such matters.

     

    9.9.  Stock
      Purchase Agreement. At
      Closing, each of Purchaser Parent and Seller shall execute and deliver the
      Stock
      Purchase Agreement and Seller shall purchase from Purchaser Parent, and
      Purchaser Parent shall sell to Seller, the Reinvestment Shares for the
      Reinvestment Share Price pursuant to the terms and conditions of the Stock
      Purchase Agreement.

     

    9.10.  Transfer
      Taxes and Fees.
      Purchaser
      and Seller shall equally share and be responsible for all sales, use and other
      transfer taxes and fees imposed with respect to the transfer of the Purchased
      Assets. 

     

    9.11.  Certain
      Transition Matters. The
      Parties agree to take such actions as are specified on Schedule
      9.11.
      

     

    
      
        
        

      

      
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    10.  CONDITIONS
      PRECEDENT TO PURCHASER’S AND PURCHASER PARENT’S OBLIGATIONS.
      Each
      and
      every obligation of Purchaser and Purchaser Parent to be performed on the
      Closing Date shall be subject to the satisfaction prior to or at the Closing
      of
      each of the following conditions:

     

    10.1.  Representations
      and Warranties True on the Closing Date.
      Each
      of
      the representations and warranties made by Seller in this Agreement shall be
      true and correct in all material respects when made and shall be true and
      correct in all material respects (except for such representations and warranties
      as are qualified by materiality or Material Adverse Effect, which
      representations and warranties shall be true and correct in all respects),
      at
      and as of the Closing Date as though such representations and warranties were
      made or given on and as of the Closing Date (subject to any changes in the
      Disclosure Schedule permitted pursuant to Section 9.3 or otherwise consented
      to
      by Purchaser in writing).

     

    10.2.  Compliance
      With Agreement.
      Seller
      shall have in all material respects performed and complied with all of the
      agreements, obligations and covenants under this Agreement which are to be
      performed or complied with by Seller prior to or on the Closing
      Date.

     

    10.3.  Absence
      of Litigation.
      Neither
      Purchaser, Purchaser Parent nor Seller shall be subject to any order or
      injunction of a Government Authority which restrains, enjoins or otherwise
      prohibits any of the transactions contemplated by this Agreement.

     

    10.4.  Material
      Consents and Approvals.
      All
      approvals, consents and waivers listed in Schedule
      10.4
      attached
      to this Agreement (the “Material Consents”) shall have been
      received.

     

    10.5.  No
      Material Adverse Effect.
      During
      the period from the date hereof to the Closing Date, there shall not have
      occurred any condition or fact in connection with the Acquired Business which
      has, or which would reasonably be expected to have, a Material Adverse
      Effect.

     

    10.6.  Closing
      Deliveries.
      At
      the
      Closing, Seller shall have delivered to Purchaser the closing deliveries listed
      in Section 6.2(a) of this Agreement.

     

    10.7.  Seller’s
      Audited Financial Statements.
      The
      Accountants shall have completed and delivered the audit of Seller’s Annual
      Financial Statements and there shall be no material difference in the financial
      information presented in the Audited Financial Statements from the information
      presented in the Annual Financial Statements other than such changes resulting
      from any change from LIFO to FIFO accounting and the inclusion of nonmaterial
      standard footnotes. 

     

    10.8.  Purchaser’s
      Financing.
      Purchaser
      shall simultaneously close on its acquisition financing substantially on the
      terms and conditions set forth in the Commitment Letter.

     

    10.9.  Closing
      of Wilmington Transaction.
      Purchaser
      shall have received a closing binder containing each of the material executed
      documents delivered in connection with the Wilmington Transaction.

     

    10.10.  Stock
      Purchase Agreement.
      The
      Stock
      Purchase Agreement shall have closed in accordance with its terms.

     

    
      
        
        

      

      
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    10.11.  Additional
      Escrow Agreement.
      Seller,
      Purchaser and Seller’s counsel (as escrow agent) shall have entered into an
      escrow agreement providing for the withholding of an amount of the Purchase
      Price equal to the estimated amount to repair the matter specified in the second
      sentence of Item 1 of Schedule 4.8(c), such funds to be used for the payment
      of
      such repair.

     

    11.  CONDITIONS
      PRECEDENT TO SELLER’S OBLIGATIONS.
      Each
      and
      every obligation of Seller to be performed on the Closing Date shall be subject
      to the satisfaction prior to or at the Closing of the following
      conditions:

     

    11.1.  Representations
      and Warranties True on the Closing Date.
      Each
      of
      the representations and warranties made by Purchaser and Purchaser Parent in
      this Agreement shall be true and correct in all material respects when made
      and
      shall be true and correct in all material respects (except for such
      representations and warranties as are qualified by materiality or Material
      Adverse Effect, which representations and warranties shall be true and correct
      in all respects), at and as of the Closing Date as though such representations
      and warranties were made or given on and as of the Closing Date, except for
      any
      changes permitted by the terms of this Agreement or otherwise consented to
      by
      Seller in writing.

     

    11.2.  Compliance
      With Agreement.
      Each
      of
      Purchaser and Purchaser Parent shall have in all material respects performed
      and
      complied with its agreements and obligations under this Agreement which are
      to
      be performed or complied with by it prior to or on the Closing
      Date.

     

    11.3.  Absence
      of Litigation.
      Neither
      Purchaser, Purchaser Parent nor Seller shall be subject to any order or
      injunction of a court of competent jurisdiction which prohibits that the
      consummation of the transactions contemplated by this Agreement.

     

    11.4.  Closing
      Deliveries.
      At
      the
      Closing, Purchaser and/or Purchaser Parent shall have delivered to Seller the
      closing deliveries listed in Section 6.2(b) of this Agreement.

     

    11.5.  Purchase
      Price.
      Purchaser
      shall have paid the Purchase Price less the Escrow Amount to Seller and
      delivered the Escrow Amount to Escrow Agent in accordance with the provisions
      of
      Section 2.3(b) of this Agreement.

     

    12.  TERMINATION
      OF AGREEMENT.

     

    12.1.  Causes.
      This
      Agreement and the transactions contemplated hereby may be terminated at any
      time
      prior to the completion of the Closing as follows, and in no other
      manner:

     

    (a) By
      written agreement between the Parties;

     

    (b) By
      written notice of termination from Purchaser or Purchaser Parent to Seller
      if:

     

    (i) a
      Material Adverse Effect occurs;

     

    
      
        
        

      

      
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    (ii) at
      any
      time after the Outside Closing Date, provided that neither Purchaser nor
      Purchaser Parent has not breached or failed to perform in any material respect
      any of its representations, warranties, covenants, agreements or other
      obligations set forth in this Agreement; and provided, further, that upon
      receipt of a Material Disclosure Schedule Change by Purchaser within seven
      (7)
      Business Days prior to the Outside Closing Date, Purchaser may, at its election
      in writing, delay the Outside Closing Date to the date that is up to seven
      (7)
      Business Days after its receipt of such Material Disclosure Schedule Change
      in
      order for it to further investigate the matters described therein;

     

    (iii) an
      order
      or injunction is entered by a Government Authority which restrains, enjoins
      or
      otherwise prohibits any of the transactions contemplated by this Agreement;
      

     

    (iv) the
      covenant set forth in Section 7.3 is breached or violated; or

     

    (v) pursuant
      to Section 9.3(b); or

     

    (c) By
      written notice of termination from Seller to Purchaser and Purchaser Parent
      if:

     

    (i) at
      any
      time after the Outside Closing Date, provided that Seller has not breached
      or
      failed to perform in any material respect any of its representations,
      warranties, covenants, agreements or other obligations set forth in this
      Agreement;

     

    or

     

    (ii) an
      order
      or injunction is entered by a Government Authority which restrains, enjoins
      or
      otherwise prohibits any of the transactions contemplated by this
      Agreement.

     

    12.2.  Effect
      of Termination.
      In
      the
      event of a termination of this Agreement by Purchaser, Purchaser Parent or
      Seller under Section 12.1 above, this Agreement will forthwith become void
      and
      there will be no Liability on the part of a Party to the other Party, except
      for
      (i) the Liabilities and obligations of the Parties set forth in Sections 9.1,
      12.2, 13, 14, 15 and 20 of this Agreement and (ii) any Liability of any Party
      then in breach of this Agreement, which shall survive any termination of this
      Agreement. 

     

    12.3.  Right
      to Proceed.
      If
      any of
      the conditions specified in Section 10 hereof have not been satisfied, Purchaser
      or Purchaser Parent, in lieu of any other rights that may be available to it,
      may waive its rights to have such conditions satisfied prior to Closing and
      may
      proceed with the transactions contemplated hereby, and if any of the conditions
      specified in Section 11 hereof have not been satisfied prior to Closing, Seller,
      in lieu of any other rights that may be available to it, may waive its right
      to
      have such conditions satisfied and may proceed with the transactions
      contemplated hereby.

     

    
      
        
        

      

      
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    13.  SURVIVAL;
      INDEMNIFICATION.

     

    13.1.  Survival.

     

    (a) Each
      of
      the representations and warranties made by Seller, Purchaser or Purchaser Parent
      in this Agreement or in any of the Ancillary Documents delivered hereunder
      shall
      survive the Closing through and until April 30, 2008; provided, however, that
      notwithstanding the forgoing (a) the representations and warranties set forth
      in
      Sections 4.1(Organizational
      Matters Regarding Seller and Wilmington Purchaser),
      4.8(b)(Title),
      4.9(Taxes),
      4.14(Benefit
      Plans) and
      5.1(Organizational
      Matters Regarding Purchaser and Purchaser Parent)
      shall
      survive the Closing through and until the expiration of the applicable statute
      of limitations period relating to such matter, and (b) the representations
      and
      warranties set forth in Section 4.12(Environmental
      Matters)
      shall
      survive the Closing through and until the third anniversary of the Closing
      Date;
      provided, further, that the survival periods set forth in this Section 13.1(a)
      shall be subject to extension pursuant to Section 13.1(c) hereof. 

     

    (b) Each
      of
      the covenants, agreements and obligations set forth in this Agreement made
      by
      Seller, Purchaser or Purchaser Parent in this Agreement or in any of the
      Ancillary Documents delivered hereunder shall survive the Closing Date through
      the applicable statute of limitations periods relating to such matter; provided,
      however, that notwithstanding the forgoing the covenants, agreements and
      obligations of the Seller to indemnify the Purchaser Indemnified Parties in
      respect of any Losses arising or claimed by the Purchaser Indemnified Parties
      in
      connection with Seller’s indemnification obligations set forth in Section
      13.3(a)(iii) in respect of the Non-Assumed Liabilities set forth in Section
      3.4(ii) hereof shall survive the Closing through and until the third anniversary
      of the Closing Date; provided, further, that the survival periods set forth
      in
      this Section 13.1(b) shall be subject to extension pursuant to Section 13.1(d)
      hereof.

     

    (c) Any
      representation or warranty that would otherwise terminate on the last survival
      date with respect thereto pursuant to Section 13.1(a) shall continue to survive
      if the notice referred to in Section 13.2(b) or Section 13.3(b), as the case
      may
      be, of the breach, inaccuracy, default or nonperformance thereof shall have
      been
      given on or prior to the last survival date with respect thereto to the Party
      against whom indemnification may be sought. 

     

    (d) The
      covenants, agreements and obligations contained in this Section 13 and in
      Section 14 of this Agreement shall survive with respect to any indemnification
      claim properly asserted pursuant to Section 13.2(b) or Section 13.3(b), as
      the
      case may be, prior to the last survival date with respect thereto pursuant
      to
      Section 13.1(b) until such claim is finally settled or resolved in accordance
      with the terms thereof.

     

    13.2.  Indemnification
      by Purchaser.

     

    (a) Subject
      to the provisions of this Section 13.2 and the other provisions of Section
      13 of
      this Agreement, Purchaser and Purchaser Parent shall jointly and severally
      indemnify Seller and its managers, employees, agents, successors and assigns
      (the “Seller Indemnified Parties”) and hold the Seller Indemnified Parties
      harmless from, against and in respect of the full amount of any and all Losses
      incurred or sustained by, or imposed upon, the Seller Indemnified Parties with
      respect to, by reason of or in connection with (i) any breach or inaccuracy
      on
      the part of Purchaser or Purchaser Parent of their representations and
      warranties contained in this Agreement or the Ancillary Documents; (ii) any
      breach, violation, default, lack of performance or non-fulfillment on the part
      of Purchaser or Purchaser Parent of any of their agreements, covenants or
      obligations contained in this Agreement or the Ancillary Documents; and (iii)
      the Assumed Obligations.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      anything to the contrary in this Agreement, the Seller Indemnified Parties
      shall
      not be entitled to indemnification under Section 13.2(a) with respect to any
      claim for indemnification thereunder, unless Seller has given Purchaser and
      Purchaser Parent written notice of such claim during the applicable survival
      period set forth in Section 13.1 relating thereto and setting forth in
      reasonable detail the facts and circumstances pertaining thereto.

     

    13.3.  Indemnification
      by Seller.

     

    (a) Subject
      to the provisions of this Section 13.3 and the other provisions of Section
      13 of
      this Agreement, Seller shall indemnify Purchaser, Purchaser Parent and their
      Affiliates, and their respective officers, directors, employees, agents,
      successors and assigns (the “Purchaser Indemnified Parties”) and hold the
      Purchaser Indemnified Parties harmless from, against and in respect of the
      full
      amount of any and all Losses incurred or sustained by, or imposed upon, the
      Purchaser Indemnified Parties with respect to, by reason of or in connection
      with (i) any breach or inaccuracy on the part of Seller of any of its
      representations and warranties contained in this Agreement or the Ancillary
      Documents; (ii) any breach, violation, default, lack of performance or
      non-fulfillment on the part of Seller of any of its agreements, covenants or
      obligations contained in this Agreement or the Ancillary Documents; and (iii)
      the Non-Assumed Liabilities.

     

    (b) Notwithstanding
      anything to the contrary in this Agreement, the Purchaser Indemnified Parties
      shall not be entitled to indemnification under Section 13.3(a) with respect
      to
      any claim for indemnification thereunder, unless Purchaser or Purchaser Parent
      has given Seller written notice of such claim during the applicable survival
      period set forth in Section 13.1 relating thereto and setting forth in
      reasonable detail the facts and circumstances pertaining thereto.

     

    13.4.  Limitations
      on Indemnification.
      

     

    (a) After
      the
      Closing occurs, notwithstanding anything to the contrary in this Agreement,
      the
      Seller Indemnified Parties and the Purchaser Indemnified Parties shall not
      be
      entitled to indemnification:

     

    (i) in
      connection with any claim for indemnification hereunder with respect to which
      such party has an enforceable right of indemnification, contribution or right
      of
      set-off against any third party, unless such party is enjoined by a court of
      competent jurisdiction or otherwise legally prevented from receiving the benefit
      of any such set-off;

     

    (ii) to
      the
      extent of any insurance proceeds actually received by the indemnified party
      in
      connection with the facts giving rise to such indemnification;

     

    
      
        
        

      

      
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    (iii) to
      the
      extent such Loss is reserved for, or otherwise taken into account, in the
      determination of the Closing Working Capital;

     

    (iv) under
      Sections 13.2(a)(i) or 13.3(a)(i) (except in connection with a claim for fraud)
      with respect to any Losses as to which the Purchaser Indemnified Parties
      (collectively), on the one hand, or the Seller Indemnified Parties
      (collectively), on the other hand, may otherwise be entitled to until such
      Losses exceed $250,000.00, at which time such parties shall be indemnified
      dollar for dollar to the extent any Liability with respect to such matters
      exceeds $250,000.00;

     

    (v) for
      any
      Losses payable in excess of an aggregate amount equal to $2,000,000.00 by the
      Seller Indemnified Parties (collectively), on the one hand, or the Purchaser
      Indemnified Parties (collectively), on the other hand, under Sections 13.2(a)(i)
      or 13.3(a)(i) in respect of a breach or inaccuracy of a representation or
      warranty; provided, that the limitation set forth in this Section 13.4(a)(v)
      shall not be applicable in connection with (a) a claim for fraud relating to
      this Agreement; (b) a breach or inaccuracy of a representation or warranty
      set
      forth in Sections 4.1(Organizational
      Matters Regarding Seller and the Wilmington Purchaser), 4.8(b)(Title),
      4.9(Taxes),
      4.14(Benefit
      Plans),
      or
      5.1(Organizational
      Matters Regarding Purchaser and Purchaser Parent);
      or (c)
      a breach or inaccuracy of a representation or warranty set forth in Section
      4.12
(Environmental
      Matters) (the
      limitations for which are addressed in Section 13.4(a)(vi) below);

     

    (vi) for
      any
      Losses payable in excess of an aggregate amount equal to $2,000,000.00 by the
      Seller Indemnified Parties (collectively) under (a) Section 13.3(a)(i) in
      respect of a breach or inaccuracy of the representations and warranties set
      forth in Section 4.12(Environmental
      Matters) hereof
      or
      (b) Section 13.3(a)(iii) in respect of the Non-Assumed Liabilities set forth
      in
      Section 3.4(ii) hereof; provided, that the limitation set forth in this Section
      13.4(a)(vi) shall not be applicable in connection with a claim for fraud
      relating to this Agreement;

     

    (vii) for
      any
      Losses in respect of the matters described on Schedule
      13.4(a)(vii);

     

    (viii) for
      any
      Losses relating to any matter, event or circumstance which would result in
      a
      breach of a representation or warranty of Seller hereunder and (A) which arose
      prior to the date of this Agreement and was actually known to any of the
      Purchaser Indemnified Parties at and as of the execution and delivery hereof
      as
      a matter, event or circumstance which consisted of a breach or violation of
      a
      representation or warranty of Seller hereunder (but only to the extent such
      matter, event or circumstance was known by any of the Purchaser Indemnified
      Parties at the time of Purchaser’s execution and delivery of this Agreement, it
      being agreed that the Purchaser Indemnified Parties have actual knowledge of,
      among other things, the matters set forth on Schedule
      13.4(a)(viii);
      or (B)
      which arose after the execution and delivery hereof (but prior to Closing)
      and
      was actually known to by any of the Purchaser Indemnified Parties at and as
      of
      the Closing as a matter, event or circumstance which consisted of a breach
      or
      violation of a representation or warranty of Seller which were made under the
      certificate delivered at Closing pursuant to Section 6.2(a)(iv) hereof (but
      only
      to the extent such matter, event or circumstance was known by any of the
      Purchaser Indemnified Parties at the time of such delivery);

     

    
      
        
        

      

      
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    (ix) for
      any
      Losses relating to any matter, event or circumstance which would result in
      a
      breach of a representation or warranty of Purchaser hereunder and (A) which
      arose prior to the date of this Agreement and was actually known to any of
      the
      Seller Indemnified Parties at and as of the execution and delivery hereof as
      a
      matter, event or circumstance which consisted of a breach or violation of a
      representation or warranty of Purchaser hereunder (but only to the extent such
      matter, event or circumstance was known by any of the Seller Indemnified Parties
      at the time of Seller’s execution and delivery of this Agreement); or (B) which
      arose after the execution and delivery hereof (but prior to Closing) and was
      actually known to by any of the Seller Indemnified Parties at and as of the
      Closing as a matter, event or circumstance which consisted of a breach or
      violation of a representation or warranty of Purchaser which were made under
      the
      certificate delivered at Closing pursuant to Section 6.2(b)(v) hereof (but
      only
      to the extent such matter, event or circumstance was known by any of the Seller
      Indemnified Parties at the time of such delivery); or

     

    (x) for
      an
      amount equal to any Tax benefit actually realized directly or indirectly by
      an
      Indemnified Party in the tax year during which such Indemnified Party made
      a
      claim for Losses and the immediately following two tax years of such Indemnified
      Party (or of any Tax Group of which the Indemnified Party is also a member)
      arising as a result of the incurrence or payment of such Losses (after taking
      into account all other items of income, gain, loss, deduction or credit of
      such
      Indemnified Party or any Tax Group of which the Indemnified Party is a
      member).

     

    13.5.  Procedures
      for Indemnification.

     

    (a) Subject
      to Sections 13.6 and 13.7 of this Agreement, if a Party seeking indemnification
      pursuant to this Section 13 (the “Indemnified Party”) shall claim to have
      suffered a Loss for which indemnification is available under Sections 13.2
      or
      13.3, as the case may be (for purposes of this Section 13.5, regardless of
      whether such Indemnified Party is entitled to receive a payment in respect
      of
      such claim), the Indemnified Party shall notify the Party from whom
      indemnification with respect to such claim is sought (the “Indemnifying Party”)
      in writing of such claim prior to the last survival date with respect thereto
      pursuant to Section 13.1(a), which written notice shall describe the nature
      of
      such claim, the facts and circumstances that give rise to such claim and the
      amount of such claim if reasonably ascertainable at the time such claim is
      made
      (or if not then reasonably ascertainable, the maximum amount of such claim
      reasonably estimated by the Indemnified Party). In the event that within
      forty-five (45) days after the receipt by the Indemnifying Party of such a
      written notice from the Indemnified Party, the Indemnified Party shall not
      have
      received from the Indemnifying Party a written objection to such claim, such
      claim shall be conclusively presumed and considered to have been assented to
      and
      approved by the Indemnifying Party.

     

    (b) If
      within
      the forty-five (45) day period described in Section 13.5(a) above the
      Indemnified Party shall have received from the Indemnifying Party a notice
      setting forth the Indemnifying Party’s objections to such claim and the
      Indemnifying Party’s reasons for such objection, then the Parties shall follow
      the procedures set forth in Section 14 below with respect to the resolution
      of
      such matter.

     

    
      
        
        

      

      
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    13.6.  Procedures
      for Third-Party Claims.

     

    (a) Any
      Indemnified Party seeking indemnification pursuant to this Section 13 in respect
      of any legal proceeding, action, claim or demand instituted by any third Person
      (in each case, a “Third-Party Claim”) shall give the Indemnifying Party from
      whom indemnification with respect to such claim is sought (i) prompt written
      notice (but in no event more than fifteen (15) days after the Indemnified Party
      acquires knowledge thereof) of such Third-Party Claim (a “Claim Notification”)
      and (ii) copies of all documents and information relating to any such
      Third-Party Claim within fifteen (15) days of their being obtained by the
      Indemnified Party; provided, that the failure by the Indemnified Party to so
      notify or provide copies to the Indemnifying Party shall not relieve the
      Indemnifying Party from any Liability to the Indemnified Party for any Liability
      hereunder except to the extent that such failure shall have actually prejudiced
      the defense of such Third-Party Claim.

     

    (b) Subject
      to Section 13.7 of this Agreement, the Indemnifying Party shall have the right,
      at its option and expense, to defend against, negotiate, settle or otherwise
      deal with any Third-Party Claim with respect to which it is the Indemnifying
      Party and to be represented by counsel of its own choice if it delivers a notice
      to the Indemnified Party within thirty (30) days after receipt of the notice
      provided by the Indemnifying Party under Section 13.6(a) confirming that, with
      respect to such matter, it (i) agrees to assume the defense thereof, (ii) waives
      any right to contest the indemnification of the Indemnified Party pursuant
      hereto or the enforceability thereof, and (iii) has the financial resources
      available to pay the reasonably foreseeable Losses with respect to such matter
      (together with the amount held pursuant to the Escrow Agreement), and if
      requested by the Indemnified Party, provides reasonably satisfactory evidence
      of
      such financial resources (a “Defense Notification”). In the event that the
      Indemnified Party does not receive a Defense Notification or discontinues its
      defense of a Third-Party Claim, the Indemnified Party may defend and settle
      such
      Third-Party Claim in such manner as it may deem reasonably appropriate without
      prejudice to its indemnification claims against the Indemnifying Party. The
      Indemnified Party may participate in any Third-Party Claim with counsel of
      its
      choice and at its expense; provided, that if there exists a conflict of interest
      (other than one that is of a monetary nature) that would make it inappropriate
      for the Indemnifying Party’s counsel to represent both the Indemnified Party and
      the Indemnifying Party, then the Indemnified Party shall be entitled to retain
      its own counsel, at the expense of the Indemnifying Party

     

    (c) Neither
      the Indemnified Party or the Indemnifying Party shall enter into a settlement
      of
      any such Third-Party Claim without the consent of the other, such consent not
      to
      be unreasonably withheld or delayed provided that (i) the Indemnified Party
      is
      unconditionally released from all Liability, (ii) that no material ongoing
      restrictions on the Acquired Business are part of such settlement and (iii)
      the
      settlement thereof would not have a Material Adverse Effect on the Indemnified
      Party; provided, that until the Indemnified Party receives a Defense
      Notification, the Indemnified Party may settle, compromise, pay or discharge
      the
      same (provided that if the Indemnified Party proposes to settle such matter
      prior to the expiration of the thirty (30) day period described above in this
      section, the Indemnified Party shall provide the Indemnifying Party with five
      business days’ advance notice thereof). If a firm written offer is made to
      settle any such Third-Party Claim and the Indemnifying Party proposes to accept
      such settlement and the Indemnified Party refuses to consent to such settlement,
      then, provided that under such settlement (a) the Indemnified Party is
      unconditionally released from all Liability, (b) that no material ongoing
      restrictions on the Acquired Business are part of such settlement and (c) the
      settlement thereof would not have a Material Adverse Effect on the Indemnified
      Party: (i) the Indemnifying Party shall be excused from, and the Indemnified
      Party shall be solely responsible for, all further defense of such Third-Party
      Claim; and (ii) the maximum Liability of the Indemnifying Party relating to
      such
      Third-Party Claim shall be the amount of the proposed settlement if the amount
      thereafter recovered from the Indemnified Party on such Third-Party Claim is
      greater; and (iii) the Indemnified Party shall pay all of its attorneys’ fees,
      legal costs and expenses incurred after rejection of such settlement by the
      Indemnified Party. 

     

    
      
        
        

      

      
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    (d)
       In
      the
      event the Indemnifying Party exercises the right to undertake any such defense
      against any such Third-Party Claim as provided above, the Indemnified Party
      shall cooperate with the Indemnifying Party in such defense and make available
      to the Indemnifying Party, all witnesses, pertinent records, materials and
      information in the Indemnified Party’s possession or under the Indemnified
      Party’s control relating thereto as is reasonably required by the Indemnifying
      Party. Similarly, in the event the Indemnified Party is, directly or indirectly,
      conducting the defense against any such Third-Party Claim, the Indemnifying
      Party shall cooperate with the Indemnified Party in such defense and make
      available to the Indemnified Party, all such witnesses, records, materials
      and
      information in the Indemnifying Party’s possession or under the Indemnifying
      Party’s control relating thereto as is reasonably required by the Indemnified
      Party. 

     

    13.7.  Certain
      Procedures for Environmental Matters.
      With
      respect to Seller’s indemnification obligation under Section 13.3(a)(i) as a
      result of a breach of a representation or warranty set forth in Section 4.12
      hereof, or under any other Section of this Agreement relating to an
      Environmental Claim, Purchaser shall:

     

    (i) if
      such
      claim relates to the Ohio Real Estate or the Leased Real Property, provide
      Seller reasonable access to the Ohio Real Estate or the Leased Real Property,
      as
      the case may be, so that Seller may conduct its own investigation, testing
      and
      corrective action with respect to such matter; 

     

    (ii) provide
      Seller with the results, including analytical data, of any investigation or
      testing conducted by Purchaser or, if available to Purchaser, any third
      party;

     

    (iii) except
      as
      may otherwise be required by Law, not contact any Governmental Authority without
      the prior consent of Seller (such consent not to be unreasonably delayed or
      withheld);

     

    (iv) to
      the
      extent Seller consents to any contact described in Section 13.7(iii), give
      Seller a reasonable opportunity to participate in any discussions or
      negotiations with any Governmental Authority concerning such
      matter;

     

    (v) if
      corrective action is required in any such matter, give Seller a reasonable
      opportunity to develop and implement a plan of corrective action using
      appropriately licensed and trained professionals for Purchaser’s review and
      approval (such approval not to be unreasonably withheld so long as such plan
      (a)
      does not materially interfere with the business of the Acquired Business, (b)
      reasonably details the proposed work to be completed, (c) estimates costs and
      timeframes and provides evidence of compliance with all applicable Laws and
      (d)
      provides for a performance bond (or other security reasonably acceptable to
      Purchaser) for projects likely to exceed $200,000 in cost), and reasonably
      cooperate in the development and implementation of such plan on a cost effective
      basis;

     

    
      
        
        

      

      
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    (vi) Any
      such
      plan of action shall, to the extent permitted under Environmental Laws, be
      based
      on the continued use of the property for industrial use of the property and
      may
      rely on and utilize institutional controls (such as deed notices or
      restrictions) and shall contain reasonable steps so as to minimize disruption
      of
      or adverse effect on the ongoing operations of the Acquired
      Business;

     

    (vii) cooperate
      fully and in good faith with Seller in performing such tasks as Seller and
      its
      technical professionals and representatives may reasonably request to complete
      any environmental investigations or environmental remediation being undertaken
      by Seller pursuant to this Agreement and the agreed upon corrective plan
      (including to take, or cause to be taken, all commercially reasonable actions
      and to do, or cause to be done, all commercially reasonable things necessary
      to
      cooperate with Seller to effect the corrective plan), with Purchaser being
      compensated for any reasonable and actual Losses incurred in connection
      therewith. Without limiting the scope of the foregoing, Purchaser shall cause
      its employees to reasonably cooperate with Seller and to afford Seller, its
      agents, employees and technical professionals reasonable access to relevant
      records relating to the matters which may be Seller’s responsibility under this
      Agreement; and

     

    (viii) with
      respect to any environmental remediation undertaken by Seller, Seller shall
      be
      responsible for completing such remediation only to the extent required under
      Environmental Laws in effect as of the Closing Date.

     

    13.8.  Exclusive
      Remedy.
      Subject
      to Sections 7.7 and 13.9 of this Agreement, except in the case of fraud, the
      indemnification obligations of Purchaser, Purchaser Parent and Seller under
      this
      Section 13 shall constitute the sole and exclusive remedies of Seller, Purchaser
      and Purchaser Parent, respectively, for the breach of any covenant, agreement,
      representation, warranty or obligation in this Agreement by the Seller, the
      Purchaser or the Purchaser Parent, as the case may be, and the Seller, the
      Purchaser and the Purchaser Parent shall not be entitled to rescission of this
      Agreement or to any further indemnification rights or claims of any nature
      whatsoever in respect thereof, all of which the Purchaser, Purchaser Parent
      and
      the Seller waive. Notwithstanding anything to the contrary in this Agreement,
      no
      Party shall be entitled to indemnification under this Section 13 for a
      diminution in the stock price of any Affiliate of the Purchaser whose shares
      are
      publicly traded or punitive damages.

     

    13.9.  Specific
      Performance.
      Because
      of the unique nature of the Purchased Assets, each of the Parties shall have
      the
      right to specific performance of the obligations of the other Party hereunder
      with respect to the purchase and sale of the Purchased Assets and the other
      obligations of the Parties hereunder.

     

    13.10.  Disposition
      of Reinvestment Shares.
      Seller
      agrees and covenants that during the Lock-Up Period (as defined in Exhibit
      I to
      the Stock Purchase Agreement) the Seller shall not pledge, encumber,
      hypothecate, grant or suffer a consensual lien with respect to, transfer, gift
      or otherwise dispose of the Reinvestment Shares. 

     

    
      
        
        

      

      
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    13.11.  Insurance
      Claims.
      Notwithstanding
      any provision of this Agreement, if Seller does not provide a Defense
      Notification with respect to, or discontinues its defense of, any Third-Party
      Claim, the Purchaser may (on behalf of itself and the Purchaser Indemnified
      Parties), to the extent that the Purchaser Indemnified Parties has any
      continuing Losses after taking into account the receipt of payment in respect
      of
      such Third-Party Claim by Seller or from the Escrow Agent (i) have the right
      to
      directly tender claims, whether under its own name as successor of the Acquired
      Business, or under the name of the Seller, acting as its attorney-in-fact,
      under
      Seller’s insurance programs regardless of when a claim is presented against the
      Acquired Business, (ii) be entitled to the benefit of the insurance proceeds
      relating to any Losses for acts occurring or arising with respect to the
      Acquired Business prior to the Closing; and (iii) be entitled to require Seller
      to tender any claims against the insurance policies of the Acquired Business
      on
      behalf of the Purchaser Indemnified Parties in any manner reasonably specified
      by the Purchaser; provided, that with respect to claims or actions that the
      Purchaser shall make or direct to be made pursuant to clause (i) and (iii)
      above, Purchaser shall indemnify and hold harmless Seller from any Losses
      relating to any claims made, documents submitted, or any actions taken, by
      Purchaser (or Seller at Purchaser’s request) if its determined that such claim,
      submission or action was made in a fraudulent manner. From and after the
      Closing, Purchaser shall have the right to participate in the defense and
      prosecution of insurance claims arising prior to the Closing in accordance
      with
      Section 13.6. Any proceeds actually received under such claims by any of the
      Purchaser Indemnified Parties shall be deducted from any indemnification claim
      against Seller pursuant to Section 13.4(a)(i) and (ii). Notwithstanding any
      provision of Section 13.6(c), if (a) any proposed settlement of an insurance
      claim does not represent the full amount of Losses of Purchaser in connection
      with such claim and (b) the limits of Seller’s insurance policies are not
      exhausted by such claims, then, prior to settling any such claim, Seller shall
      obtain the Purchaser’s consent to settle such insurance claim (such consent not
      to be unreasonably withheld or delayed). 

     

    14.  DISPUTE
      RESOLUTION; GOVERNING LAW; JURISDICTION, ETC. 

     

    14.1.  Dispute.
      As
      used
      in this Agreement, “Dispute” shall mean any dispute or disagreement between
      Purchaser or Purchaser Parent and Seller concerning the interpretation of this
      Agreement, the validity of this Agreement, any breach or alleged breach by
      any
      Party under this Agreement or any other matter relating in any way to this
      Agreement; provided, that “Dispute” shall not include any dispute relating to
      the Closing Working Capital which shall be resolved in accordance with Section
      2.4 hereof.

     

    14.2.  Process.
      If
      a
      Dispute arises the Parties shall promptly attempt to resolve any Dispute by
      negotiations between the Purchaser, Purchaser Parent and the Seller. Either
      Purchaser, Purchaser Parent or Seller may give the other Party written notice
      of
      any Dispute not resolved in the normal course of business. Representatives
      of
      Purchaser, Purchaser Parent and Seller shall discuss at a mutually acceptable
      time and place within ten (10) calendar days after delivery of such notice,
      and
      thereafter as often as they reasonably deem necessary, to exchange relevant
      information and to attempt to resolve the Dispute. If the Dispute has not been
      resolved by these Persons within thirty (30) calendar days of the disputing
      Party’s notice, or if the Parties fail to meet within such ten (10) calendar
      days, either the Purchaser or the Seller may take such actions and exercise
      such
      rights as they may have under applicable Law. No provision of this Section
      14.2
      shall limit or prohibit a Party from sending at any time a notification to
      the
      Escrow Agent pursuant to the Escrow Agreement; or (ii) taking such actions
      as
      are required by applicable Law. 

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    14.3.  General. 

     

    
      (a)  Provisional
        Remedies.
        At any
        time during the procedures specified in Section 14.2 of this Agreement, a
        Party
        may seek a preliminary injunction or other provisional judicial relief if
        in its
        judgment such action is necessary to avoid irreparable damage or to preserve
        the
        status quo. Despite such action, the Parties will continue to participate
        in
        good faith in the procedures specified in this Section 14 of this Agreement.
        

    

     

    
      (b)  Tolling
        Statue of Limitations.
        All
        applicable statutes of limitation and defenses based upon the passage of
        time
        shall be tolled while the procedures specified in this Section 14 of this
        Agreement are pending. The Parties will take such action, if any, as is required
        to effectuate such tolling.

    

     

    
      (c)  Performance
        to Continue.
        Each
        Party is required to continue to perform its obligations under this Agreement
        pending final resolution of any Dispute.

    

     

    
      (d)  Extension
        of Deadlines.
        All
        deadlines specified in this Section 14 of this Agreement may be extended
        by
        mutual agreement between the Purchaser and the Seller.

    

     

    14.4.  Governing Law,
      Venue and Waiver of Jury Trial. THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE WITH THE
      INTERNAL LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CHOICE OF LAW RULES THAT
      MAY DIRECT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

     

    EACH
      PARTY TO THIS AGREEMENT, BY ITS EXECUTION HEREOF, (I) HEREBY IRREVOCABLY
      SUBMITS, TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT
      FOR THE DISTRICT OF DELAWARE (OR IF JURISDICTION THERETO IS NOT PERMITTED BY
      LAW, THE STATE COURTS OF THE STATE OF DELAWARE LOCATED IN NEW CASTLE COUNTY
      FOR
      THE PURPOSE OF ANY ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT
      OR
      OTHERWISE), INQUIRY PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON
      THIS AGREEMENT OR RELATING TO THE SUBJECT MATTER HEREOF, (II) HEREBY WAIVES,
      AND
      AGREES TO CAUSE EACH OF ITS SUBSIDIARIES TO WAIVE, TO THE EXTENT NOT PROHIBITED
      BY APPLICABLE LAW, AND AGREES NOT TO ASSERT, AND AGREES NOT TO ALLOW ANY OF
      ITS
      SUBSIDIARIES TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, IN ANY
      SUCH
      ACTION, ANY CLAIM THAT IT IS NOT SUBJECT PERSONALLY TO THE JURISDICTION OF
      THE
      ABOVE-NAMED COURTS, THAT ITS PROPERTY IS EXEMPT OR IMMUNE FROM ATTACHMENT OR
      EXECUTION, THAT ANY SUCH PROCEEDING BROUGHT IN ONE OF THE ABOVE-NAMED COURTS
      IS
      IMPROPER, OR THAT THIS AGREEMENT OR THE SUBJECT MATTER HEREOF MAY NOT BE
      ENFORCED IN OR BY SUCH COURT AND (III) HEREBY AGREES NOT TO COMMENCE OR TO
      PERMIT ANY OF ITS SUBSIDIARIES TO COMMENCE ANY ACTION, CLAIM, CAUSE OF ACTION
      OR
      SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY PROCEEDING OR INVESTIGATION
      ARISING OUT OF OR BASED UPON THIS AGREEMENT OR RELATING TO THE SUBJECT MATTER
      HEREOF OTHER THAN BEFORE ONE OF THE ABOVE-NAMED COURTS NOR TO MAKE ANY MOTION
      OR
      TAKE ANY OTHER ACTION SEEKING OR INTENDING TO CAUSE THE TRANSFER OR REMOVAL
      OF
      ANY SUCH ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR
      OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION TO ANY COURT OTHER THAN ONE
      OF
      THE ABOVE-NAMED COURT WHETHER ON THE GROUNDS OF INCONVENIENT FORUM OR OTHERWISE.
      EACH PARTY HEREBY CONSENTS TO SERVICE OF PROCESS IN ANY SUCH PROCEEDING IN
      ANY
      MANNER PERMITTED BY DELAWARE LAW, AND AGREES THAT SERVICE OF PROCESS BY
      REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED
      PURSUANT TO SECTION 15 IS REASONABLY CALCULATED TO GIVE ACTUAL NOTICE PROVIDED
      THAT THE PARTY DELIVERING SUCH NOTICE RECEIVES A SIGNED RETURN RECEIPT IN
      RESPECT THEREOF.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

     

    EACH
      OF
      THE PARTIES HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER
      AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM
      IN
      RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT,
      TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR
      BASED
      UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH
      OR
      RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE
      WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH OF THE PARTIES AGREE AND
      ACKNOWLEDGE THAT IT HAS BEEN INFORMED THAT THIS SECTION 14 CONSTITUTES A
      MATERIAL INDUCEMENT UPON WHICH THE OTHER PARTIES HERETO ARE RELYING AND WILL
      RELY IN ENTERING INTO THIS AGREEMENT AND ANY OTHER AGREEMENTS RELATING HERETO
      OR
      CONTEMPLATED HEREBY. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
      COPY
      OF THIS SECTION 14 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH
      SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

     

    
      15.  NOTICES.
        Any
        notice or other communication required or permitted hereunder shall be in
        writing and shall be considered delivered in all respects when it has been
        (i)
        delivered by hand or overnight courier, (ii) by acknowledged facsimile
        transmission followed by either the original mailed by certified mail, return
        receipt requested, or delivered by hand or overnight courier or (iii) three
        (3)
        days after it is mailed by certified mail, return receipt requested, first
        class
        postage prepaid, addressed as follows: 

    

     

    
      	
              To
                Seller 

            	
              With
                a copy to:

            
	 	 
	
              CRC Acquisition Co. LLC

              c/o Riparian Partners, Ltd.

              2400 Financial Plaza

              Providence, Rhode Island 02903

              Attn: Brendan VanDeventer

              Fax: (401)
                274-4933

            	
              Greenberg
                Traurig, LLP

              One International Place

              Boston, MA 02110

              Attn: James P. Redding

              Fax: 617-897-0961

               

            
	 	 
	To Purchaser or Purchaser Parent:	With a copy to:
	 	 
	
              Net Perceptions, Inc.

              One Landmark Square

              22nd Floor

              Stamford, Connecticut 06901

              Attn: Nigel P. Ekern

              Fax: 203-428-2022

            	
              Kane Kessler, P.C.

              1350 Avenue of the Americas

              26th Floor

              New York, New York 10019

              Attn: Robert L. Lawrence

              Fax: 212-245-3009

            

    

    

    or
      such
      other addresses as shall be similarly furnished in writing by either
      Party.

    

    16.  EXHIBITS.
      All
      exhibits and schedules hereto are by reference incorporated herein and made
      a
      part hereof.

     

    17.  ENTIRE
      AGREEMENT; BINDING EFFECT.
      This
      Agreement (including all schedules and exhibits attached hereto) contains the
      entire agreement between the Parties hereto with respect to the transactions
      contemplated herein, and there are no agreements or understandings between
      the
      Parties other than those set forth or referenced herein or executed
      simultaneously or in connection herewith. This Agreement shall be binding upon
      and inure to the benefit of the Parties hereto and their respective heirs,
      legal
      representatives, successors and assigns.

     

    18.  HEADINGS.
      The
      headings in this Agreement are inserted for convenience only and shall not
      constitute a part hereof.

     

    19.  EXPENSES.
      Each
      of
      the Parties hereto shall be solely responsible for and pay its own consulting,
      accounting, legal, and other charges and expenses incurred by such Party in
      connection with the negotiation, execution and performance of this Agreement,
      the related agreements and the transactions contemplated hereby and thereby
      without obligation to pay or contribute to the expenses incurred by any other
      Party.

     

    20.  AMENDMENT.
      This
      Agreement may be amended, modified, superseded or cancelled, and any of the
      terms, covenants, representations, warranties or conditions hereof may be
      waived, only by a written instrument executed on behalf of all of the Parties
      hereto or, in the case of a waiver, by the party waiving
      compliance.

     

    21.  WAIVER.
      The
      failure of any Party at any time or times to require performance of any
      provision of this Agreement shall in no manner affect the right to enforce
      that
      provision or any other provision hereof at any time thereafter, except as
      specifically limited herein.

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    22.  TIME
      OF THE ESSENCE.
      Time
      is
      deemed to be of the essence with respect to all of the terms, covenants,
      representations and warranties of this Agreement.

     

    23.  ASSIGNMENT.
      Neither
      this Agreement nor any of the rights, interests or obligations hereunder may
      be
      assigned by any of the Parties hereto without the prior written consent of
      the
      other Parties. Notwithstanding the foregoing sentence, at Purchaser’s option
      Purchaser shall have the right (i) to designate one or more Affiliates of the
      Purchaser to purchase all or any portion of the Purchased Assets and (ii) to
      assign as collateral to one or more financing sources, all of its right, title
      and interest under this Agreement, provided, however, that no such designation
      or assignment by Purchaser shall relieve Purchaser or Purchaser Parent of any
      of
      their obligations or liabilities under this Agreement.

     

    24.  NO
      THIRD PARTY BENEFICIARY.
      Neither
      this Agreement nor any provision hereof, nor any statement, schedule,
      certificate, instrument or other document delivered or to be delivered pursuant
      hereto, nor any agreement entered into or to be entered into pursuant hereto
      or
      any provision thereof, is intended to create any right, claim or remedy in
      favor
      of, or impose any obligation upon, any Person other than the Parties hereto
      and
      their respective successors and permitted assigns.

     

    25.  COUNTERPARTS;
      FACSIMILE SIGNATURE.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and all of which together shall constitute one and the same agreement.
      Each of the Parties to this Agreement agrees that a signature delivered by
      facsimile by any of the Parties is intended to be its signature and shall be
      valid, binding and enforceable against such Person.

     

    [SIGNATURES
      ARE ON THE FOLLOWING PAGE]

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the Parties hereto has executed this Asset Purchase
      Agreement all as of the day and year first above written.

     

    
      	 	 	 
	 	
              SELLER:

               

              
                CRC
                  ACQUISITION CO. LLC

              

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name: 

            
	 	
              Title: 

            

    

     

    
      	 	 	 
	 	
              PURCHASER:

               

              
                SIG
                  ACQUISITION CORP.

              

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name: Nigel
                P. Ekern

            
	 	
              Title:    Treasurer
                and Secretary

            

    

     

    
      	 	 	 
	 	
              PURCHASER
                PARENT:

               

              
                NET
                  PERCEPTIONS, INC.

              

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name: Nigel
                P. Ekern

            
	 	
              Title:   
                Chief
                Administrative OfficerEXHIBIT
      C TO 

    ASSET
      PURCHASE
      AGREEMENT

    

    STOCK
      PURCHASE AGREEMENT

    

    October
      3, 2006

    

    Net
      Perceptions, Inc.

    One
      Landmark Square

    22nd
      Floor

    Stamford,
      Connecticut 06901

    Attn:
      Nigel P. Ekern

    

    
      	 	
              Re:

            	
              Purchase
                of 3,529,412 unregistered shares of the common stock of Net Perceptions,
                Inc., a Delaware corporation (the “Company”)
                upon consummation of the Asset Purchase
                Agreement

            

    

     

    Gentlemen:

    

    Subject
      to the terms and conditions set forth in this Agreement, the undersigned
      (“Equityholder”)
      hereby
      irrevocably agrees to purchase 3,529,412 unregistered shares of common stock,
      par value $0.0001 per share, of the Company (the “Reinvestment
      Shares”)
      for
      the purchase price of $0.85 per share (the “Reinvestment
      Share Price”).
      Capitalized terms used but not otherwise defined herein shall have the meanings
      ascribed to such terms in that certain Asset Purchase Agreement among
      Equityholder, the Company and Purchaser, dated as of September 22, 2006 (the
      “Asset
      Purchase Agreement”).
      

    

    1. Purchase
      of Reinvestment Shares.
      Upon
      consummation of the Closing, the Equityholder agrees and hereby directs and
      authorizes the Company to set-off and retain, and not to deliver, $3,000,000
      of
      the cash portion of the Purchase Price payable to the Equityholder pursuant
      to
      the Asset Purchase Agreement (the “Retained
      Cash Consideration”)
      in
      consideration for the delivery to Equityholder of the Reinvestment Shares
      pursuant to Section 3 hereof. 

    

    2. Restrictions
      on Reinvestment Shares.
      The
      Equityholder acknowledges and agrees that upon issuance, the Reinvestment Shares
      will not be registered under the Securities Act of 1933, as amended (the
“Securities
      Act”)
      or
      listed on any stock exchange and, additionally, that the transfer of the
      Reinvestment Shares will be subject to the terms and conditions of an
      Equityholder Lock-Up Agreement in the form annexed hereto as Exhibit
      I
      (the
“Equityholder
      Lock-Up Agreement”),
      which
      is being simultaneously executed and delivered by the Equityholder on the date
      hereof. The Company acknowledges that the Equityholder is simultaneously
      herewith being provided with certain future rights with respect to the
      registration and listing of the Reinvestment Shares pursuant to the terms and
      conditions of the Equityholder Registration Rights Agreement annexed hereto
      as
Exhibit
      II
      (the
“Equityholder
      Registration Rights Agreement”).

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    3. Stock
      Certificates; Legends.
      In
      consideration of the Retained Cash Consideration, promptly after the Effective
      Time, the Company will issue to the Equityholder in its name a stock certificate
      representing the Reinvestment Shares subscribed and paid for by the
      Equityholder. The stock certificate representing the Reinvestment Shares shall
      bear a legend indicating that such Reinvestment Shares may not be transferred
      (A) except in compliance with (i) the terms of this Agreement and the
      Equityholder Lock-Up Agreement, and (B) unless (i) such securities have been
      registered for sale pursuant to the Securities Act of 1933, as amended, (ii)
      such securities are sold pursuant to Rule 144, or (iii) the Company has received
      an opinion of counsel reasonably satisfactory to it that such transfer may
      lawfully be made without registration under the Securities Act of 1933 or
      qualification under applicable state securities laws. In addition, the
      certificate representing Reinvestment Shares shall bear any legend required
      by
      the authorities of any state in connection with the issuance of the Reinvestment
      Shares. The Equityholder acknowledges and agrees that the Company may, and
      may
      instruct its transfer agent and registrar to, make a notation in its records
      with respect to the restrictions on the transferability of the Reinvestment
      Shares.

    

    4. Representations,
      Warranties and Acknowledgements of the Equityholder.
      In order
      to induce the Company to enter into this Agreement, the Asset Purchase Agreement
      and each of the Ancillary Documents, the Equityholder represents, warrants
      and
      acknowledges as follows:

    

    
      	 	
              (a)

            	
              Authorization,
                Enforceability and Non-Contravention.
                The Equityholder has full right, power and authority to execute and
                deliver this Agreement and to perform its obligations hereunder.
                This
                Agreement has been duly executed and delivered by the Equityholder
                and
                constitutes the valid and binding obligation of the Equityholder
                and is
                enforceable in accordance with its terms. The Equityholder is not
                subject
                to any restriction or agreement which prohibits or would be violated
                by
                the execution and delivery hereof or the consummation of the transactions
                contemplated herein or pursuant to which the consent of any Person
                is
                required in order to give effect to the transactions contemplated
                herein.

            

    

    

    
      	 	
              (b)

            	
              Accredited
                Investor.
                The Equityholder is an “accredited investor” as defined in Rule 501(a) of
                Regulation D, as amended, under the Securities Act (“Regulation
                D”)
                and Equityholder has no need for liquidity of an investment in the
                Reinvestment Shares. The Equityholder understands that the Reinvestment
                Shares are being offered and sold in reliance on specific exemptions
                from
                the registration and qualification requirements of United States
                federal
                and state securities laws and that the Company is relying upon the
                truth
                and accuracy of, and Equityholder’s compliance with, the representations,
                warranties, agreements, acknowledgements and understandings set forth
                herein in order to determine the availability of such exemptions
                and its
                eligibility to acquire the Reinvestment
                Shares.

            

    

    

    
      	 	
              (c)

            	
              Purchase
                Entirely for Own Account.
                The Reinvestment Shares to be received by the Equityholder hereunder
                will
                be acquired by the Equityholder for its own account, not as nominee
                or
                agent, for investment, and not with a view to, or for sale in connection
                with, the distribution of the Reinvestment Shares, or with any present
                intention of selling or otherwise disposing of all or any part of
                the
                Reinvestment Shares. The Equityholder does not have any agreement
                or
                understanding, whether or not legally binding, direct or indirect,
                with
                any other Person to sell or otherwise distribute the Reinvestment
                Shares.
                The Equityholder understands that the Reinvestment Shares are not
                being
                registered under the Securities Act because the issuance and sale
                of the
                Reinvestment Shares is intended to be exempt from registration under
                Section 4(2) of the Securities Act and the rules and regulations
                promulgated thereunder, including Regulation D, as not involving
                a public
                offering. The Equityholder acknowledges that the Reinvestment Shares
                cannot be sold or otherwise transferred except (A) in compliance
                with the
                terms of this Agreement and the Equityholder Lock-Up Agreement, and
                (B)
                unless (i) such securities have been registered for sale pursuant
                to the
                Securities Act of 1933, as amended, (ii) such securities are sold
                pursuant
                to Rule 144, or (iii) the Company has received an opinion of counsel
                reasonably satisfactory to it that such transfer may lawfully be
                made
                without registration under the Securities Act of 1933 or qualification
                under applicable state securities
                laws.

            

    

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

     

    
      	 	
              (d)

            	
              Restricted
                Securities.
                The Equityholder understands that the Securities are characterized
                as
                “restricted securities” under the U.S. federal securities laws inasmuch as
                they are being acquired from the Company in a transaction not involving
                a
                public offering and that under such laws and applicable regulations
                such
                securities may be resold without registration under the 1933 Act
                only in
                certain limited circumstances and that no federal or state agency
                has
                passed upon the Reinvestment Shares or made any findings or determination
                as to the fairness of an investment in the Reinvestment
                Shares.

            

    

    

    
      	 	
              (e)
                

            	
              Investment
                Experience.
                By reason of the business and financial experience of the Equityholder
                and
                its equityholders and/or of the business and financial experience
                of the
                persons that the Equityholder has retained to advise it with respect
                to
                its investment in the Reinvestment Shares, the Equityholder has the
                capacity to protect its interest in investments of the nature of
                the
                Reinvestment Shares. The Equityholder has carefully evaluated its
                financial resources and investment position and the risks associated
                with
                this investment in the Reinvestment Shares and is able to bear the
                economic risks, including a total loss, of its investment in the
                Reinvestment Shares. The Equityholder understands that the purchase
                of the
                Reinvestment Shares involves substantial
                risk.

            

    

    

    
      	 	
              (f)
                

            	
              Disclosure
                of Information. The
                Equityholder and its equityholders have had the opportunity to ask
                questions of, and receive answers from, officers of the Company and
                Seller
                regarding the terms and conditions of this Agreement and other documents
                and materials, and the transactions contemplated thereby, as well
                as the
                affairs of the Company, the Acquired Business, the Purchased Assets
                and
                related matters and has been shown all corporate documents that the
                Equityholder and its equityholders have specifically requested. The
                Equityholder and its equityholders has had the opportunity to review
                the
                Company’s Annual Report on Form 10-K, including the Company’s risk factors
                set forth therein, for the fiscal year ended December 31, 2005, the
                Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended
                March 31, 2006, and June 30, 2006, and the Company’s Current Report on
                Form 8-K dated August 9, 2006, each as filed with the Securities
                and
                Exchange Commission. 

            

    

    

    
      	 	
              (g)
                

            	
              Knowledge
                of the Business.
                The Equityholder acknowledges that as the sole owner of the Acquired
                Business and the Purchased Assets, it and its equityholders are fully
                familiar with the business and financial affairs of the Acquired
                Business
                and the Purchased Assets including, without limitation, as a result
                of its
                review of the Financial Statements and the materials provided or
                made
                available, through the answers to the questions that Equityholder
                and its
                equityholders have asked.

            

    

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

    

    
      	 	
              (h)
                

            	
              Access
                to Professionals. The
                Equityholder has had the opportunity to consult with counsel, tax
                and
                other professionals of his or her choosing in connection with his
                or her
                investment in the Reinvestment Shares and has relied solely upon
                the
                advice of his or her advisors with respect to the tax and other legal
                aspects of this investment in the Reinvestment
                Shares.

            

    

    

    
      	(i)        
               	
              Limited
                Representation and Warranties of the Company. The
                Equityholder has received no representations or warranties from the
                Company or Seller, or their respective officers, agents, affiliates
                or
                representatives other than those contained in this Agreement, the
                Equityholder Registration Rights Agreement, and the representations
                and
                warranties set forth in Section 5 of the Asset Purchase Agreement,
                and, in
                making its investment decision, such the Equityholder has relied
                solely on
                the information contained herein and investigations made by the
                Equityholder and its advisors.

            

    

    

    
      	 	
              (j)

            	
              Additional
                Disclosure. The
                Equityholder acknowledges that Seller has taken or will take the
                actions
                set forth on Schedule
                4(j)
                prior to or on the date hereof and that the Equityholder has had
                the
                opportunity to investigate and ask questions about the occurrence
                of such
                actions prior to its agreement to make an investment in the Reinvestment
                Shares and has factored the occurrence of such actions into its decision
                to make an investment in the Reinvestment
                Shares.

            

    

    

    5.
       Representation,
      Warranties and Acknowledgments of the Company.
      In
      order to induce the Equityholder to enter into this Agreement, the Asset
      Purchase Agreement and each of the Ancillary Documents, the Company represents,
      warrants and acknowledges as follows:

    

    
      	(a)     
                  	
              Authorization,
                Enforceability and Non-Contravention.
                The Company has full right, power and authority to execute and deliver
                this Agreement and to perform its obligations hereunder. This Agreement
                has been duly executed and delivered by the Company and constitutes
                the
                valid and binding obligation of the Company and is enforceable in
                accordance with its terms. The Company is not subject to any restriction
                or agreement which prohibits or would be violated by the execution
                and
                delivery hereof or the consummation of the transactions contemplated
                herein or pursuant to which the consent of any Person is required
                in order
                to give effect to the transactions contemplated
                herein.

            

    

    

    
      	 	
              (b)
                

            	
              Duly
                Issued and Compliance with Laws.
                All the Reinvestment Shares subject to issuance as aforesaid, upon
                issuance on the terms and conditions specified in this Agreement
                and the
                Asset Purchase Agreement, will be duly authorized, validly issued,
                fully
                paid and non-assessable. Subject to the accuracy of the representations
                and warranties set forth in Section 4 hereof, the Reinvestment Shares
                will
                be issued and granted in compliance with all applicable securities
                laws.
                

            

    

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

    

    6. Indemnification.
      

    

    
      	(a)  
                    	
              Indemnification
                by the Equityholder.
                The Equityholder indemnifies and holds harmless the Company from,
                against
                and in respect of the full amount of any and all Losses incurred
                or
                suffered by the Purchaser Indemnified Parties or any of them, in
                respect
                of, arising from, in connection with, or incident to (i) any breach
                of, or
                inaccuracy in, any representation or warranty made by the Equityholder
                set
                forth in this Agreement or (ii) any breach or violation of any covenants,
                agreements , or obligations of the Equityholder set forth in this
                Agreement.

            

    

    

    
      	(b)         
              	
              Indemnification
                by the Company.
                The Company indemnifies and holds harmless the Equityholder from,
                against
                and in respect of the full amount of any and all Losses incurred
                or
                suffered by the Seller Indemnified Parties or any of them, in respect
                of,
                arising from, in connection with, or incident to (i) any breach of,
                or
                inaccuracy in, any representation or warranty made by the Company
                set
                forth in this Agreement or (ii) any breach or violation of any covenants,
                agreement or obligations of the Company set forth in this Agreement.
                

            

    

    

    7.
       Miscellaneous.
      

    

    
      	 	
              (a)
                

            	
              Survival.
                The agreements, covenants, representations, warranties and acknowledgments
                of the Company and the Equityholder shall survive the delivery of,
                and
                payment for, the Reinvestment Shares and the performance by each
                party of
                their respective obligations
                hereunder.

            

    

    

    
      	 	
              (b)
                

            	
              Amendments
                and Waivers.
                The provisions of this Agreement, including the provisions of this
                sentence, may not be amended, modified or supplemented without the
                written
                consent of the other party hereto. No waiver of any provision of
                this
                Agreement shall be deemed or shall constitute a waiver of any other
                provision hereof (whether or not similar), shall constitute a continuing
                waiver unless otherwise expressly provided nor shall be effective
                unless
                in writing and executed by the waiving
                party.

            

    

    

    
      	 	
              (c)
                

            	
              Notices.
                All notices and other communications provided for or permitted hereunder
                shall be made in writing by hand-delivery, certified first-class
                mail, or
                next day air courier initially to the addresses specified for notice
                to
                the parties hereto in the Asset Purchase Agreement; and thereafter
                at such
                other address, notice of which is given in accordance with the provisions
                of this Section 7(c). All such notices and communications shall be
                deemed
                to have been duly given: (i) when delivered by hand, if personally
                delivered; (ii) three business days after being deposited in the
                mail,
                postage prepaid, if mailed; and (iii) one business day after being
                sent by
                next day air courier.

            

    

    

    
      	 	
              (d)
                

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

            

    

    

    
      	 	
              (e)

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

            

    

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

    

    
      	 	
              (f)
                

            	
              Governing
                Law, Venue and Waiver of Jury Trial. THIS
                AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER AND IN ACCORDANCE
                WITH
                THE INTERNAL LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CHOICE
                OF LAW
                RULES THAT MAY DIRECT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
                EACH PARTY TO THIS AGREEMENT, BY ITS EXECUTION HEREOF, (I) HEREBY
                IRREVOCABLY SUBMITS, TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED
                STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE (OR IF JURISDICTION
                THERETO IS NOT PERMITTED BY LAW, THE STATE COURTS OF THE STATE OF
                DELAWARE
                LOCATED IN NEW CASTLE COUNTY FOR THE PURPOSE OF ANY ACTION, CLAIM,
                CAUSE
                OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY PROCEEDING
                OR
                INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR RELATING
                TO
                THE SUBJECT MATTER HEREOF, (II) HEREBY WAIVES, AND AGREES TO CAUSE
                EACH OF
                ITS SUBSIDIARIES TO WAIVE, TO THE EXTENT NOT PROHIBITED BY APPLICABLE
                LAW,
                AND AGREES NOT TO ASSERT, AND AGREES NOT TO ALLOW ANY OF ITS SUBSIDIARIES
                TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH
                ACTION, ANY CLAIM THAT IT IS NOT SUBJECT PERSONALLY TO THE JURISDICTION
                OF
                THE ABOVE-NAMED COURTS, THAT ITS PROPERTY IS EXEMPT OR IMMUNE FROM
                ATTACHMENT OR EXECUTION, THAT ANY SUCH PROCEEDING BROUGHT IN ONE
                OF THE
                ABOVE-NAMED COURTS IS IMPROPER, OR THAT THIS AGREEMENT OR THE SUBJECT
                MATTER HEREOF MAY NOT BE ENFORCED IN OR BY SUCH COURT AND (III) HEREBY
                AGREES NOT TO COMMENCE OR TO PERMIT ANY OF ITS SUBSIDIARIES TO COMMENCE
                ANY ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR
                OTHERWISE), INQUIRY PROCEEDING OR INVESTIGATION ARISING OUT OF OR
                BASED
                UPON THIS AGREEMENT OR RELATING TO THE SUBJECT MATTER HEREOF OTHER
                THAN
                BEFORE ONE OF THE ABOVE-NAMED COURTS NOR TO MAKE ANY MOTION OR TAKE
                ANY
                OTHER ACTION SEEKING OR INTENDING TO CAUSE THE TRANSFER OR REMOVAL
                OF ANY
                SUCH ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR
                OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION TO ANY COURT OTHER
                THAN
                ONE OF THE ABOVE-NAMED COURT WHETHER ON THE GROUNDS OF INCONVENIENT
                FORUM
                OR OTHERWISE. EACH PARTY HEREBY CONSENTS TO SERVICE OF PROCESS IN
                ANY SUCH
                PROCEEDING IN ANY MANNER PERMITTED BY DELAWARE LAW, AND AGREES THAT
                SERVICE OF PROCESS BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
                REQUESTED, AT ITS ADDRESS SPECIFIED PURSUANT TO SECTION 7(c) IS REASONABLY
                CALCULATED TO GIVE ACTUAL NOTICE PROVIDED THAT THE
                PARTY DELIVERING SUCH NOTICE RECEIVES A SIGNED RETURN RECEIPT IN
                RESPECT
                THEREOF.
                EACH OF THE PARTIES HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL
                NOT
                ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO
                TRIAL
                BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE
                OF
                ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING
                OR
                INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE
                SUBJECT
                MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
                TO THE
                TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING
                OR
                HEREAFTER ARISING. EACH OF THE PARTIES AGREE AND ACKNOWLEDGE THAT
                IT HAS
                BEEN INFORMED THAT THIS SECTION 7(f) CONSTITUTES A MATERIAL INDUCEMENT
                UPON WHICH THE OTHER PARTIES HERETO ARE RELYING AND WILL RELY IN
                ENTERING
                INTO THIS AGREEMENT AND ANY OTHER AGREEMENTS RELATING HERETO OR
                CONTEMPLATED HEREBY. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART
                OR
                A COPY OF THIS SECTION 7(f) WITH ANY COURT AS WRITTEN EVIDENCE OF
                THE
                CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY
                JURY.

            

    

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

    

    
      	 	
              (g)
                

            	
              Severability.
                If any term, provision, covenant or restriction of this Agreement
                is held
                by a court of competent jurisdiction to be invalid, void or unenforceable,
                the remainder of the terms, provisions, covenants and restrictions
                set
                forth herein shall remain in full force and effect and shall in no
                way be
                affected, impaired or invalidated, and the parties hereto shall use
                their
                best efforts to find and employ an alternative means to achieve the
                same
                or substantially the same result as that contemplated by such term,
                provision, covenant or restriction. It is hereby stipulated and declared
                to be the intention of the parties that they would have executed
                the
                remaining terms, provisions, covenants and restrictions without including
                any of such that may be hereafter declared invalid, void or
                unenforceable.

            

    

    

    
      	 	
              (h)

            	
              Further
                Assurances.
                The parties shall execute and deliver all such further instruments
                and
                documents and take all such other actions as may reasonably be required
                to
                carry out the transactions contemplated hereby and to evidence the
                fulfillment of the agreements herein
                contained.

            

    

    

    
      	 	
              (i)

            	
              Successors
                and Assigns.
                All of the terms and provisions of this Agreement shall be binding
                upon
                and shall inure to the benefit of the parties hereto and their respective
                permitted transferees and assigns (each of which transferees and
                assigns
                shall be deemed to be a party hereto for all purposes hereof); provided,
                however, that the Equityholder shall not be able to transfer or assign
                its
                rights hereunder without the prior written consent of the Company,
                which
                may be withheld for any or no
                reason.

            

    

     

    [SIGNATURE
      PAGE
      FOLLOWS]

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

     

    IN
      WITNESS WHEREOF, the Company and the Equityholder have caused this Agreement
      to
      be executed as the date hereof.

    
      	 	 	 
	 	
              CRC
                ACQUISITION CO. LLC

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
                

              

              Name:

              Title:

            

    

    

    
      	 	 	 
	 	
              NET
                PERCEPTIONS, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
                

              

              Name: Nigel
                P. Ekern

              Title: Chief
                Administrative Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    Schedule
      4(j)

    

    Additional
      Disclosure

    

    1. Equity
      Compensation Agreement

    

    On
      September 22, 2006, the Company entered into an Equity Compensation Agreement
      (the “Compensation Agreement”) with Kanders & Company, Inc. (“Kanders &
Company”) for prior consulting, investment banking and advisory services to the
      Company in connection with Company’s asset redeployment strategy. As
      compensation for such past services, the Company agreed to issue to Kanders
      & Company 8,274,000 shares of its common stock, par value $0.0001 per share
      (the “Common Stock”). Kanders & Company will receive no cash payment for its
      services pursuant to the Compensation Agreement. Pursuant to the terms and
      conditions of the Compensation Agreement, the Company granted “demand” and
“piggyback” registration rights to Kanders & Company with respect to the
      shares of Common Stock that are issuable under the Compensation Agreement.
      The
      Compensation Agreement also contains other provisions that are customary for
      an
      agreement of this type.

    

    2. Consulting
      Agreement

    

    On
      September 22, 2006, the Company entered into a 5 year consulting agreement
      (the
“Consulting Agreement”) with Kanders & Company, the sole stockholder of
      which is Warren B. Kanders, who is the Company’s current Executive Chairman of
      the Board of Directors. Effective with the closing of the Concord Acquisition,
      Mr. Kanders is expected to resign as Executive Chairman of the Company’s Board
      of Directors upon being nominated and elected to the position of Non-Executive
      Chairman of the Board of Directors. The Consulting Agreement provides that
      Kanders & Company will act as a non-exclusive consultant, providing
      strategic planning, investment banking services, shareholder relations, capital
      market advisory services and the identification of suitable business
      opportunities, including strategic alliances or acquisitions. 

    

    The
      Consulting Agreement provides for Kanders & Company to receive a fee equal
      to (i) $500,000 in cash per annum during the term of the Consulting Agreement,
      payable monthly, and (ii) 1% of the amount by which the Company’s revenues as
      reported in the Company’s Form 10-K, or if no such report is filed by the
      Company, as reflected in the Company’s audited financial statements for the
      fiscal year in question, exceeds $60,000,000, which shall be payable in shares
      of common stock of the Company (the “Stock Fee”). In the event of a
“change-in-control” (as defined in the Consulting Agreement), Kanders &
Company shall be entitled to a one-time lump sum cash payment equal to three
      times the average amount Kanders & Company received during the two fiscal
      years preceding such “change-in-control,” subject to certain limitations as set
      forth in the Consulting Agreement. Upon the death or permanent disability of
      Mr.
      Kanders, the Company shall make a one time lump sum cash payment to Kanders
      & Company equal to that amount Kanders & Company would be entitled to
      receive upon a “change-in-control” or upon payment of the amounts upon the
      occurrence of a “change-in-control”, or upon the death or permanent disability
      of Mr. Kanders, the Consulting Agreement shall terminate. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    3. Employment
      Agreement

    

    On
      September 22, 2006, the Company entered into an employment agreement with Albert
      Weggeman (the “Employment Agreement”), which will become effective on the
      closing of the Concord Acquisition, providing for his employment as President
      and Chief Executive Officer of the Company for a term of three years from such
      losing date, subject to certain termination rights and renewal provisions.
      The
      Employment Agreement provides that he will receive an annual base salary of
      $300,000, subject to annual review by Compensation Committee based on the
      performance of Mr. Weggeman and the Company. In addition, Mr. Weggeman is
      entitled to receive annul and other bonuses as may be determine in the sole
      discretion of the Company’s Compensation Committee. The Employment Agreement
      also entitles him to participate in the medical, insurance and other fringe
      benefit plans or policies the Company may make available to, or have in effect
      for, its personnel with commensurate duties from time to time. The Employment
      Agreement also provides for (i) effective on closing, the grant of an option
      to
      purchase 2,491,419 shares of the Company’s Common Stock, at an exercise price of
      $0.64 per share of which one half of the total option award shall vest in three
      equal installments commencing on the first anniversary of the date of grant;
      and
      one half of the total option award shall vest upon satisfaction of the
      performance targets set forth in the Employment Agreement; and (ii) the grant
      of
      $3,000,000 of restricted Common Stock of the Company of which (A) $1,000,000
      will vest upon achievement of Annual EBITDA of at least $25,000,000 in a fiscal
      year of the Company; (B) $1,000,000 will vest upon achievement of Annual EBITDA
      of at least $50,000,000 in a fiscal year of the Company; and (iii) $1,000,000
      will vest upon achievement of Annual EBITDA of at least $75,000,000 in a fiscal
      year of the Company. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      I

    

    Equityholder
      Lock-Up Agreement

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    Exhibit
      II

    

    Equityholder
      Registration Rights Agreement

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