Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.13    
    

                        ,
2007 

Prospect
Acquisition Corp.

695 East Main Street

Stamford, Connecticut 06901 

	Re:
	Initial
Public Offering of Prospect Acquisition Corp. 

Ladies
and Gentlemen: 

        This
letter is being delivered to you in accordance with the Underwriting Agreement (the "Underwriting Agreement") entered into by and
between Prospect Acquisition Corp., a Delaware corporation (the "Company"), and Citigroup Global Markets Inc., as representative of the
underwriters named therein (the "Underwriters"), relating to an underwritten initial public offering (the
"IPO") of the Company's units (the "Units"), each Unit composed of one share of the Company's common
stock, par value $0.0001 per share (the "Common Stock"), and one warrant, which is exercisable for one share of Common Stock (the
"Warrants"). Certain capitalized terms used herein are defined in paragraph 3 hereof. 

        In
order to induce the Company and the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agree with the Company as follows: 

        1.     The
undersigned agree that from the effective date of the Registration Statement on Form S-1 filed by the Company in connection with the IPO until the
earlier of (i) the consummation of an Initial Business Combination or (ii) 24 months from the date of the final prospectus relating to the IPO, the Company shall have the right of
first review (the "Right of First Review") with respect to business combination opportunities of the undersigned, and companies or other entities which
the undersigned manage or control, in the financial services sector or a related business with an enterprise value of $120 million or more. The undersigned will first offer, and will cause such
companies or other entities under their management or control to first offer, any such business combination opportunity to the Company. The undersigned will not, and will cause each company or other
entity under their management or control not to, pursue such business combination opportunity unless and until a majority of the Company's disinterested directors has determined for any reason that
the Company will not pursue such opportunity. 

        2.     Each
of the undersigned has the full right and power, without violating any agreement by which he or it is bound, to enter into this letter agreement. 

        3.     As
used herein, (i) "Initial Business Combination" shall mean the acquisition through a merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or other similar business combination, of one or more businesses or assets in connection with which the Company will require that (a) a majority of the shares of Common Stock
voted by the Public Stockholders are voted in favor of such acquisition, (b) holders of a majority of the outstanding shares of Common Stock approve an amendment to the Company's certificate of
incorporation to provide for the Company's perpetual existence and (c) Public Stockholders owning no more than 30% (minus one share) of the IPO Shares exercise their conversion rights;
(ii) "IPO Shares" shall mean the shares of Common Stock underlying the Units issued in the IPO; and (iii) "Public Stockholders" shall mean purchasers of Common Stock in the IPO or in the
secondary market, including any of the Company's officers or directors or their affiliates, including the undersigned, to the extent that they purchase or acquire Common Stock in the IPO or the
secondary market. 

        4.     Each
of the undersigned acknowledges and understands that the Company and the Underwriters will rely upon the agreements, representations and warranties set forth herein
in proceeding with the IPO. Nothing contained herein shall be deemed to render the Underwriters a 

 

representative
of, or a fiduciary with respect to, the Company, its stockholders, or any creditor or vendor of the Company with respect to the subject matter hereof. 

        5.     This
letter agreement shall be binding on the undersigned and their successors and assigns. This letter agreement shall terminate on the earlier of (i) the
consummation of an Initial Business Combination and (ii) 24 months from the date of the final prospectus relating to the IPO; provided
that such termination shall not relieve the undersigned from liability for any breach of this letter agreement prior to its termination. 

        6.     This
letter agreement shall be governed by and interpreted and construed in accordance with the laws of the State of New York applicable to contracts formed and to be
performed entirely within the State of New York, without regard to the conflicts of law provisions thereof to the extent such principles or rules would require or permit the application of the laws of
another jurisdiction. 

        7.     No
term or provision of this letter agreement may be amended, changed, waived, altered or modified except by written instrument executed and delivered by the party
against whom such amendment, change, waiver, alteration or modification is to be enforced. 

[Signature Page Follows]

2

        IN
WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first set forth above. 

	 	 	 	 	FLATRIDGE INVESTMENTS LLC
	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	David A. Minella
	 	 	 	 	Title:	 	Managing Member
	

 	
 	

 	
 	

LLM STRUCTURED EQUITY FUND L.P.
	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

 	
 	

LLM INVESTORS L.P.
	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

 	
 	

CAPITAL MANAGEMENT SYSTEMS, INC.
	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

 	
 	

 
 David A. Minella
	

 	
 	

 	
 	

 
 Patrick J. Landers
	

 	
 	

 	
 	

 
 James J. Cahill
	

 	
 	

 	
 	

 
 Michael P. Castine
	

 	
 	

 	
 	

 
 William Cvengros
	

 	
 	

 	
 	

 
 Michael Downey
	
Signature Page to Right of First Review Agreement

	

 	
 	

 	
 	

 
 Daniel Gressel
	

 	
 	

 	
 	

 
 William Landman
	

ACCEPTED AND AGREED:	
 	

 	
 	

 
	

Prospect Acquisition Corp.	
 	

 	
 	

 
	

By:	
 	

 
 David A. Minella, Chief Executive Officer	
 	

 	
 	

 

QuickLinks

Exhibit 10.13QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.14  

 
 

STOCK PURCHASE AND SALE AGREEMENT    
    

        This Stock Purchase and Sale Agreement (as it may from time to time be amended, this "Agreement"), dated as of
September 6, 2007, is made and entered into by and among Flat Ridge Investments LLC (the "Seller) and Michael Downey (the
"Buyer"). Certain capitalized terms are defined on Schedule A to this Agreement. 

RECITALS:  

        WHEREAS, the Seller owns 2,264,061 shares (the "Shares") of the
common stock, par value $0.0001 per share, of Prospect Acquisition Corp., a Delaware corporation (the "Issuer"); and 

        WHEREAS, on the terms and subject to the conditions set forth in this Agreement, the Seller wishes to sell 107,813 of the Shares to the
Buyer and the Buyer wishes to purchase 107,813 Shares from Seller. 

AGREEMENT:  

        NOW, THEREFORE, in consideration of the premises, representations, warranties and the mutual covenants contained
in this Agreement, and for other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto, intending legally to be bound, agree as
follows: 

ARTICLE I.

PURCHASE OF SHARES  

        Section 1.1    Sale of Shares.    Subject to the terms and conditions hereof and in
reliance upon the representations and warranties of the parties contained herein, at the Closing, the Seller shall sell, assign, transfer and deliver the Shares it is selling hereunder to the Buyer,
free and clear of all liens, other than such restrictions as may be imposed pursuant to state or federal securities laws, in consideration of the payment of the Purchase Price noted herein. 

        Section 1.2    Purchase Price.    Subject to the terms and conditions hereof and in
reliance upon the representations and warranties of the parties contained herein, at the Closing, the Buyer shall pay to Seller, by wire transfer or by such other method as may be reasonably
acceptable to Seller, in the amount of Six Hundred Twenty-Five Dollars ($625.00) (the "Purchase Price"), immediately available funds, or by
check payable to the Seller, in consideration of the sale, assignment, transfer and delivery of the Shares by the Seller under this Agreement. 

        Section 1.3    Closing.    The closing of the purchase and sale of the Shares (the
"Closing") shall be held on September 7, 2007 (the "Closing Date") at the offices of Bingham
McCutchen LLP, 399 Park Avenue, New York, New York 10022, or such other place as may be agreed upon by the parties hereto. 

        Section 1.4    Closing Deliveries.    At the Closing, each party shall execute and
deliver this Agreement and such other appropriate and customary documents as the other parties reasonably may request for the purpose of consummating the transactions contemplated by this Agreement.
All actions taken at the Closing shall be deemed to have been taken simultaneously. 

        (a)    Buyer Deliveries.    Without limiting the generality of the foregoing, at the Closing the Buyer shall deliver
to the Seller the Purchase Price. 

        (b)    Seller Deliveries.    Without limiting the generality of the foregoing, at the Closing, or within a reasonable
time after the Closing Date but in no event later than five (5) days after Closing Date, the Seller shall deliver to the Buyer the certificate or certificates representing the Shares purchased
by the Buyer, which certificates shall be properly endorsed for transfer or accompanied by duly executed stock powers. 

 

        Section 1.5    Further Assurances.    The parties hereto shall execute and deliver such
additional documents and take such additional actions as any party reasonably may deem to be practical and necessary in order to consummate the transactions contemplated by this Agreement. 

ARTICLE II.

REPRESENTATIONS AND WARRANTIES OF THE BUYER  

        Section 2.1    Power and Authority; Enforceability.    The Buyer hereby represents to
the Seller that, (i) this Agreement constitutes its legal, valid, and binding obligation, enforceable against it in accordance with its terms, (ii) it has full power and authority to
execute and deliver this Agreement and to perform its obligations hereunder, (iii) it has taken all actions necessary to authorize the execution and delivery of this Agreement, the performance
of its obligations hereunder and the consummation of the transactions contemplated hereby, and (iv) this Agreement has been duly authorized, executed and delivered by, and is enforceable
against, it, subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws of general applicability relating to or affecting creditors' rights and to general
equitable principles (whether considered in a proceeding in equity or law). 

        Section 2.2    No Violation; Necessary Approvals.    The Buyer hereby represents to the
Seller that neither its execution and delivery of this Agreement, nor its consummation or performance of any of transactions contemplated hereby, will: (a) with or without notice or lapse of
time, constitute, create or result in a breach or violation of, default under, loss of benefit or right under or acceleration of performance of any obligation required under any (i) law
(statutory, common or otherwise), constitution, ordinance, rule, regulation, executive order or other similar authority ("Law") enacted, adopted,
promulgated or applied by any legislature, agency, bureau, branch, department, division, commission, court, tribunal or other similar recognized organization or body of any federal, state, county,
municipal, local or foreign government or other similar recognized organization or body exercising similar powers or authority (a "Governmental Body"),
(ii) order, ruling, decision, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Body or arbitrator (an
"Order"), or (iii) contract, agreement, arrangement, commitment, instrument, document or similar understanding (whether written or oral),
including a lease, sublease and rights thereunder ("Contract") or permit, license, certificate, waiver, notice and similar authorization
("Permit") to which, in the case of (i), (ii) or (iii), it is a party or by which it is bound or any of its assets are subject;
(b) require any Consent under any Contract to which it is a party or by which it is bound or any of its assets are subject; or (c) require any Permit under any Law or Order other than
(i) required filings, if any, with the Securities and Exchange Commission ("SEC") and (ii) notifications or other filings with state or
federal regulatory agencies after the Closing that are necessary or convenient and do not require approval of the agency as a condition to the validity of the transactions contemplated hereunder. 

        Section 2.3    Investment Representations.    The Buyer hereby represents and warrants
to the Seller the following: 

        (a)   It
hereby acknowledges that an investment in the Shares involves certain significant risks. It acknowledges that there is a substantial risk that it will lose all or a
portion of its investment and should be financially capable of bearing the risk of such investment for an indefinite period of time. It has no need for liquidity in its investment in the Shares for
the foreseeable future and is able to bear the risk of that investment for an indefinite period. It understands that there presently is no public market for the Shares and none is anticipated to
develop in the foreseeable future. It's present financial condition is such that it is under no present or contemplated future need to dispose of any portion of the Shares subscribed for hereby to
satisfy any existing or contemplated undertaking, need or indebtedness. It's overall commitment to investments which are not readily 

2

 

marketable
is not disproportionate to its net worth and the investment in the Shares will not cause such overall commitment to become excessive. 

        (b)   It
acknowledges that the Shares have not been registered under the Securities Act, or any state securities act, and are being sold on the basis of exemptions from
registration under the Securities Act and applicable state securities acts, except those state securities acts that require registration of the Shares thereunder. Reliance on such exemptions, where
applicable, is predicated in part on the accuracy of its' representations and warranties set forth herein. It acknowledges and hereby agrees that the Shares will not be transferable under any
circumstances unless it either registers the Shares in accordance with federal and state securities laws or finds and complies with an exemption under such laws. Accordingly, it hereby acknowledges
that there can be no assurance that it will be able to liquidate its investment in the Shares. It understands that the Issuer is under no obligation to register the Shares under the Act or to comply
with any applicable exemption under the Securities Act on behalf of such Buyer with respect to any resale of the Shares and that it will not be able to avail itself of the provisions of
Rule 144 promulgated under the Securities Act with respect to the resale of the Shares until the Shares have been beneficially owned by it for a period of at least one (1) year from date
of purchase. It further understands that any certificates evidencing the Shares bear a legend referring to the foregoing transfer restrictions. 

        (c)   In
evaluating the merits and risks of an investment in the Shares, it has had the opportunity to seek the advice of its legal and financial advisors, has availed itself
of that right to the extent deemed appropriate, and has not relied on the advice of the Seller or Seller's legal and financial counsel. 

        (d)   The
Shares are being acquired solely for it's own account, for investment purposes only, and are not being purchased with a view to or for the resale, distribution,
subdivision or fractionalization thereof; and it has no present plans to enter into any contract, undertaking, agreement or arrangement for such resale, distribution, subdivision or fractionalization.
It is not taking and will not take or cause to be
taken any action that would cause it to be deemed an "underwriter" within the meaning of Section 2(11) of the Securities Act. 

        (e)   There
are substantial risk factors pertaining to an investment in the Shares. It acknowledges that the Issuer is an entity with limited operating history and financial
resources; and it is fully able to bear the economic risks of such investment for an indefinite period, and can afford a complete loss thereof. 

        (f)    It
has been given the opportunity to (i) ask questions of and receive answers from the Seller and the Issuer and their designated representatives concerning the
terms and conditions of the Shares, and the business and financial condition of the Issuer and (ii) obtain any additional information that the Seller possesses or can acquire without
unreasonable effort or expense that is necessary to assist it in evaluating the advisability of the purchase of the Shares and an investment in the Issuer. It further represents and warrants that,
prior to signing this Agreement, it has asked such questions, received such answers and obtained such information as it has deemed necessary or advisable to evaluate the merits and risks of the
purchase of the Shares and an investment in the Issuer. It is not relying on any oral representation made by any person as to the Issuer or its operations, financial condition or prospects. 

        (g)   It
understands that no federal, state or other governmental authority has made any recommendation, findings or determination relating to the merits of an investment in
the Shares. 

        Section 2.4    Agreement to Sell Back Securities.    The Buyer hereby agrees to permit
the Issuer to repurchase from the Buyer, in such proportion as the Buyer holds of the total outstanding Shares of the Issuer immediately prior to the Issuer's initial public offering of its securities
(the "Designated Time"), at a purchase price equal to $0.0001 per share, a number of Shares necessary to ensure that 

3

 

the
aggregate amount of Shares held by the Buyer, any transferees pursuant to Section 3.4(i) and all other holders of the Issuer's outstanding Shares at the Designated Time, does not
exceed 20% of the issued and outstanding common stock of the Issuer after the consummation of the Issuer's initial public offering of its securities. 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF SELLER  

        Section 3.1    Power and Authority; Enforceability.    The Seller hereby represents to
the Buyer that this Agreement constitutes its legal, valid, and binding obligation, enforceable against it in accordance with its terms. It has full power and capacity to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement has been duly executed, and delivered by, and is enforceable against, the Seller. 

        Section 3.2    No Violation; Necessary Approvals.    The Seller hereby represents to
the Buyer that (i) neither its execution and delivery of this Agreement, nor its consummation or performance of any of transactions contemplated hereby, will: (a) with or without notice
or lapse of time, constitute, create or result in a breach or violation of, default under, loss of benefit or right under or acceleration of performance of any obligation required under any Law,
Order, Contract or Permit to which it is a party or by which it is bound or any of its assets are subject, (b) result in the imposition of any lien, claim or encumbrance upon any assets owned
by it; (c) require any Consent under any Contract or organizational document to which it is a party or by which it is bound; or (d) require any Permit under any Law or Order other than
(i) required filings, if any, with the SEC and (ii) notifications or other filings with state or federal regulatory agencies after the Closing that are necessary or convenient and do not
require approval of the agency as a condition to the validity of the transactions contemplated hereunder; or (e) trigger any rights of first refusal, preferential purchase or similar rights
with respect to any of the Shares. 

        Section 3.3    Capitalization.    Prior to the sale of the Shares to the Buyer pursuant
to this Agreement, Flat Ridge hereby represents and warrants to the Buyer that it owned 2,264,061 shares of common stock of the Issuer. 

        Section 3.4    Title to Securities.    The Seller hereby represents to the Buyer that
all of the Shares being sold by the Seller hereunder have been duly and validly authorized and issued and are fully paid and non-assessable. Upon the sale and purchase of the Shares
pursuant to the terms hereof, the Buyer will have or receive good title to the Shares being sold by the Seller hereunder, free and clear of all liens, claims and encumbrances of any kind, other than
(i) transfer restrictions under federal and state securities laws, and (ii) liens, claims or encumbrances imposed due to the actions of the Buyer. 

        Section 3.5    Due Incorporation.    The Issuer has been duly incorporated and is
validly existing in good standing under the laws of the jurisdiction of its incorporation. 

ARTICLE IV.

MISCELLANEOUS  

        Section 4.1    Entire Agreement.    This Agreement, together with the certificates,
documents, instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the parties hereto in respect of its subject matter and supersedes all
prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated
hereby. 

        Section 4.2    Successors.    All of the terms, agreements, covenants, representations,
warranties, and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the parties hereto and their respective successors. 

4

 

        Section 4.3    Assignments.    Except as otherwise provided herein, no party hereto may
assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party, other than an assignment by the Buyer to an affiliate
thereof. Any purported assignment in violation of this Section 4.3 shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. 

        Section 4.4    Notices.    All notices, requests, demands, claims and other
communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder will be deemed duly given if (and then three (3) business days after) it is sent
by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below: 

	 	 	If to the Buyer:	 	Michael Downey

2 Parsons Lane

Rochester, New York 14610

Phone: (585) 749-6516

Fax:	 	 
	

 	
 	

If to the Seller:	
 	

Flat Ridge Investments LLC

814 Hollow Tree Ridge Road

Darien, Connecticut 06820

Phone: (203) 656-0246

Fax:	
 	

 
	

 	
 	

Copy to (which will not

constitute notice):	
 	

Bingham McCutchen LLP

399 Park Avenue

New York, New York 10022

Attn: Floyd I. Wittlin, Esq.

Phone: (212) 705-7000

Fax: (212) 752-5378	
 	

 

        Any
party hereto may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including
personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication will be deemed to have
been duly given unless and until it actually is received by the intended recipient. Any party hereto may change the address to which notices, requests, demands, claims, and other communications
hereunder are to be delivered by giving the other parties hereto notice in the manner herein set forth. 

        Section 4.5    Specific Performance.    Each party hereto acknowledges and agrees that
the other parties would be damaged irreparably if any provision of this Agreement is not performed in accordance with its specific terms or is otherwise breached. Accordingly, each party agrees that
the other parties will be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and its terms and provisions in
any action instituted in any court of the United States or any state thereof having jurisdiction over the parties hereto and the matter, in addition to any other remedy to which they may be entitled,
at Law or in equity. 

        Section 4.6    Waiver of Jury Trial.    THE PARTIES HERETO EACH HEREBY AGREE TO WAIVE
THEIR RESPECTIVE RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL ACTIONS THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT 

5

 

MATTER
OF THE TRANSACTIONS, INCLUDING, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES HERETO EACH ACKNOWLEDGE THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP AND THAT THEY WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT IT
HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. NOTWITHSTANDING ANYTHING TO THE
CONTRARY HEREIN, THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED ORALLY OR IN WRITING, AND THE WAIVER WILL APPLY TO ANY AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING HERETO. IN THE EVENT OF AN ACTION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY A COURT. 

        Section 4.7    Counterparts.    This Agreement may be executed in two (2) or
more counterparts, each of which will be deemed an original but all of which together will constitute one (1) and the same instrument. 

        Section 4.8    Headings.    The article and section headings contained in this
Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement. 

        Section 4.9    Governing Law.    This Agreement, the entire relationship of the parties
hereto, and any litigation between the parties (whether grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted pursuant to the laws of
the State of New York, without giving effect to its choice of laws principles. 

        Section 4.10    Amendments.    This Agreement may not be amended, modified or waived as
to any particular provision, except by a written instrument executed by all parties hereto. 

        Section 4.11    Severability.    The provisions of this Agreement will be deemed
severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as
applied to any party hereto or to any
circumstance, is adjudged by a Governmental Body, arbitrator, or mediator not to be enforceable in accordance with its terms, the parties hereto agree that the Governmental Body, arbitrator, or
mediator making such determination will have the power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and
in its reduced form, such provision will then be enforceable and will be enforced. 

        Section 4.12    Expenses.    Except as otherwise expressly provided in this Agreement,
each party hereto will bear its own costs and expenses incurred in connection with the preparation, execution and performance of this Agreement and the consummation of the transactions contemplated
hereby, including all fees and expenses of agents, representatives, financial advisors, legal counsel and accountants, provided that upon the consummation of the initial public offering of the Issuer,
all such accrued fees and expenses of legal counsel of the Buyer shall be paid by the Issuer. 

        Section 4.13    Construction.    The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. Any reference to any federal, state, local, or foreign
Law will be deemed also to refer to Law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words
"include," "includes," and "including" will be deemed to
be followed by "without limitation." Pronouns in masculine, feminine, and neuter genders will be construed to include 

6

 

any
other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words "this
Agreement," "herein," "hereof,"
"hereby," "hereunder," and words of similar import refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have independent significance. If any party hereto
has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation,
warranty, or covenant. 

        Section 4.14    Waiver.    No waiver by any party hereto of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or
covenant hereunder or affect in any way any rights arising because of any prior or subsequent occurrence. 

        Section 4.15    Remedies.    The parties hereto shall have all remedies for breach of
this Agreement available to them as provided by law or equity. 

        Section 4.16    Publicity.    None of the parties hereto, nor their respective
representatives, agents, affiliates, subsidiaries, directors, advisors, controlling persons, employees or members shall issue or cause the publication of any press release, advertisement or other
public communication relating to this Agreement or any of the other documents contemplated hereunder, without the prior written consent of the other party, except where the disclosure of information
is required by law, rule, regulation, regulatory inquiry or other judicial process. 

        Section 4.17    Third Party Beneficiary.    Each of the parties hereto hereby agrees
and acknowledges that the Issuer shall be a third party beneficiary of this Agreement with respect to Section 2.4 and this Article IV as if the Issuer shall have been a party to this
Agreement. 

[SIGNATURE PAGES FOLLOW]

7

        IN
WITNESS WHEREOF, the undersigned have executed this Stock Purchase and Sale Agreement to be effective as of the date first set forth above. 

	 	 	SELLER:
	

 	
 	
FLAT RIDGE INVESTMENTS LLC
	

 	
 	

By:	
 	

/s/  DAVID A. MINELLA      

	 	 	Name:	 	David A. Minella
	 	 	Title:	 	Managing Member
	

 	
 	
BUYER:
	

 	
 	
Michael Downey
	

 	
 	

/s/  MICHAEL DOWNEY      

Signature Page to

Stock Purchase and Sale Agreement

SCHEDULE A

DEFINITIONS

        As
used in the Stock Purchase and Sale Agreement dated as of September 6, 2007, by and among Flat Ridge Investments LLC and Michael Downey (the
"Agreement"), the following terms shall have for all purposes the following meanings: 

        "Buyer" shall have the meaning set forth in the preamble to the Agreement. 

        "Closing" shall have the meaning set forth in Section 1.3 of the Agreement. 

        "Closing Date" shall have the meaning set forth in Section 1.3 of the Agreement. 

        "Consent" means any consent, approval, notification, waiver, or other similar action that is necessary or convenient. 

        "Contract" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Designated Time" shall have the meaning set forth in Section 2.4 of the Agreement. 

        "Governmental Body" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Issuer" shall have the meaning set forth in the recitals to the Agreement. 

        "Law" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Lien" shall mean a mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, charge, restriction, lien (statutory or
otherwise, including, without limitation, any lien for taxes), security interest, preference, participation interest, priority or security agreement or preferential arrangement of any kind or nature
whatsoever, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing and the
filing of any document under the law of any applicable jurisdiction to evidence any of the foregoing, other than (i) statutory, mechanics' or other Liens incurred in the ordinary course of
business or (ii) Liens for taxes incurred but not yet due. 

        "Order" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Permit" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Purchase Price" shall have the meaning set forth in Section 1.2 of the Agreement. 

        "SEC" shall have the meaning set forth in Section 2.2 of the Agreement. 

        "Securities Act" shall mean the Securities Act of 1933, as amended, or any successor federal statute, and the applicable rules and
regulations promulgated and in effect from time to time thereunder. 

        "Seller" and shall have the meaning set forth in the preamble to the Agreement. 

        "Shares" shall have the meaning set forth in the recitals to the Agreement. 

QuickLinks

STOCK PURCHASE AND SALE AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]