Document:

Subscription Agreement

 Exhibit 10.1 
 SUBSCRIPTION AGREEMENT 
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) dated
as of August 18, 2006, by and between VIRAGEN INTERNATIONAL, INC., a Delaware corporation (the “Company”), and Ole Martin Siem (“Subscriber”).  
 WHEREAS, the Company and the Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by the provisions of Regulation S (“Regulation
S”) as promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “1933 Act”); 
 WHEREAS, Subscriber has previously acquired shares of the Company’s Series C 24% Cumulative Preferred Stock (the “Series C Preferred
Stock”) and in connection therewith received various offering materials (the “Documents”); and 
 WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Subscriber, as provided herein, and Subscriber shall purchase 3,154 shares of Series D 24% Cumulative Preferred Stock of the Company
(“Preferred Stock”) at a stated value of $100.00 per share for a total purchase price of $315,400 (the “Purchase Price”), subject to the rights and preferences described in the form of Certificate of Designation, Preferences and
Rights (“Certificate of Designation”) attached as Exhibit A to this Agreement. The Preferred Stock is sometimes referred to herein as the “Securities.” 
 NOW, THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement the Company and Subscriber hereby agree
as follows: 
 1. Purchase of Preferred Stock. Subject to the satisfaction or waiver of the terms and conditions of this Agreement,
Subscriber shall purchase and the Company shall sell to Subscriber the number of shares of Preferred Stock set forth above. Subscriber hereby authorizes Dawson James (as defined below) to act on Subscriber’s behalf to determine whether the
conditions have been satisfied or waive any conditions. At the Closing, the Company shall issue and deliver the certificates for the Preferred Stock in exchange for the Purchase Price. 
 2. Closing. The consummation of the transactions contemplated herein shall take place at the offices of Dawson James Securities, Inc.
(“Dawson James”), 925 South Federal Highway, 6th Floor, Boca Raton, Florida 33432, upon the satisfaction
or waiver of all conditions to Closing (“Closing Date”) as established by Dawson James, including the conditions to closing set forth in Schedule 1 annexed hereto. 
 3. Subscriber’s Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company that: 
 (a) Organization and Standing of the Subscriber. If the Subscriber is an entity, such Subscriber is a corporation, partnership or other entity
duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization. 
 (b) Authorization and Power. Subscriber has the requisite power and authority to enter into and perform this Agreement and to purchase the Securities being sold to it hereunder. The execution, delivery and performance of this
Agreement by Subscriber and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary entity action, and no further consent or authorization of Subscriber or its Board of Directors,
stockholders, partners, members, or other persons as the case may be, is required. This Agreement has been duly authorized, executed and delivered by Subscriber and constitutes, or shall constitute when executed and delivered, a valid and binding
obligation of the Subscriber enforceable against the Subscriber in accordance with the terms thereof. 

 (c) No Conflicts. The execution, delivery and performance of this Agreement and the consummation
by Subscriber of the transactions contemplated hereby or relating hereto do not and will not (i) result in a violation of Subscriber’s charter documents or bylaws or other organizational documents or (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which
Subscriber is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to Subscriber or its properties (except
for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on Subscriber). Subscriber is not required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the Securities in accordance with the terms hereof, provided that for purposes of the
representation made in this sentence, Subscriber is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein. 
 (d) Previous Investment In Series C Preferred Stock. Subscriber has previously invested in the Company’s Series C Preferred Stock and has received Documents of the Company in connection with that
investment. 
 (e) Information on Company. In addition to receipt of the Documents, Subscriber has had access at the EDGAR Website of
the Commission to the Company’s Form 10-K for the year ended June 30, 2005 and all the periodic and current reports as filed with the Commission (hereinafter referred to as the “Reports”). In addition, Subscriber has received in
writing from the Company such other information concerning its operations, financial condition and other matters as the Subscriber has requested in writing (such other information is collectively, the “Other Written Information”), and
considered all factors Subscriber deems material in deciding on the advisability of investing in the Securities. 
 (f) Acknowledgements
by Subscriber. Subscriber acknowledges that the Preferred Stock being acquired pursuant hereto will be junior and subordinate to the Series C Preferred Stock previously issued by the Company to Subscriber as well as to other subscribers in that
offering. Accordingly, the Series C Preferred Stock will be deemed to have priority over the Preferred Stock acquired pursuant hereto with respect to dividends, liquidation and redemption rights. The Preferred Stock is not convertible into common
stock of the Company nor will the purchase of the Securities by the Subscriber include any shares of common stock or other securities exercisable for or convertible into common stock of the Company. Subscriber acknowledges that Dawson James will
receive an 8% cash selling commission for the sale of the Securities and a non-accountable expense allowance of 2% of the value of the Securities. The terms of the Preferred Stock are described in the Certificate of Designation annexed to this
Subscription Agreement as Exhibit A. 
 (g) Information on Subscriber. The Subscriber is, an “accredited investor”, as such
term is defined in Regulation D promulgated by the Commission under the 1933 Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies
in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company to evaluate the
merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. The Subscriber has the authority and is duly and legally qualified to purchase and own the Securities.
The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss of the entire investment. The information set forth on the signature page hereto regarding the Subscriber is accurate. 
  

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 (h) Purchase of Securities. Subscriber will purchase the Securities as principal for its own
account for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution thereof. 
 (i) Offshore Transaction. 
 (i) Subscriber is not a U.S. person (whenever such term is used herein, it shall have the
meaning given in Regulation S). 
 (ii) At the time Subscriber executed and delivered this Agreement, Subscriber was outside the United
States and is outside of the United States as of the date of the execution and delivery of this Agreement. 
 (iii) Purchaser is acquiring
the Preferred Stock for its own account and not on behalf of any U.S. person, and the sale has not been pre-arranged with a purchaser in the United States. 
 (iv) Any distributor participating in the offering of the Preferred Stock has agreed in writing that all offers and sales of the Securities prior to the expiration of a period commencing on the date of the Closing and
ending one year thereafter, unless adjusted as hereinafter provided (the “Restricted Period”), shall only be made in compliance with the safe harbor contained in Regulation S, pursuant to registration of the Securities under the 1933 Act
or pursuant to an exemption from registration. 
 (v) Subscriber represents and warrants and hereby agrees that all offers and sales of the
Preferred Stock prior to the expiration of the Restricted Period shall only be made in compliance with the safe harbor contained in Regulation S, pursuant to registration of the Preferred Stock under the 1933 Act or pursuant to an exemption from
registration, and all offers and sales after the Restricted Period shall be made only pursuant to such a registration or to such exemption from registration. 
 (vi) Subscriber acknowledges that, in the view of the Securities and Exchange Commission (“SEC”), the statutory exemption claimed in this transaction would not be present if the offering of Preferred Stock,
although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Subscriber is acquiring the Preferred Stock for investment purposes and has no present intention to sell the
Preferred Stock in the United States or to a U.S. person or for the account or benefit of a U.S. person either now or promptly after the expiration of the Restricted Period. 
 (vii) Subscriber is not an underwriter of, or dealer in, the Preferred Stock; and Subscriber is not participating, pursuant to a contractual agreement
in the distribution of the Preferred Stock. 
 (viii) The undersigned will not engage in any hedging transactions as precluded by Regulation
S under the Act. 
 (ix) Subscriber hereby agrees that the Company may insert the following or similar legend on the face of the
certificates evidencing the Preferred Stock in compliance with Regulation S of the 1933 Act: 
 “THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN ACQUIRED PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION S PROMULGATED UNDER THE SECURITIES ACT
OF 1933, AS 
  

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 AMENDED (THE “ACT”). THE SECURITIES ARE “RESTRICTED” AND MAY NOT BE OFFERED OR SOLD
IN THE UNITED STATES OR TO U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE ACT) UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION S OR PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE ACT, AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE. FURTHER HEDGING TRANSACTIONS INVOLVING THE SHARES MAY NOT BE MADE
EXCEPT IN COMPLIANCE WITH THE ACT.” 
 (j) Preferred Stock Legend. In addition to the legend described above, the Preferred
Stock shall bear the following or similar legend: 
 “THIS PREFERRED STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THIS PREFERRED STOCK MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THESE SHARES OF PREFERRED STOCK UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
VIRAGEN INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.” 
 (k) Communication of Offer. The offer to sell the
Securities was directly communicated to the Subscriber by the Company. At no time was the Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general
advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer. 
 (l) No Governmental Review. Subscriber understands that no United States federal or state agency or any other governmental or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of
the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 
 (m)
Correctness of Representations. Subscriber represents that the foregoing representations and warranties are true and correct as of the date hereof. 
 4. Company Representations and Warranties. The Company represents and warrants to and agrees with Subscriber that except as set forth in the Reports and as otherwise qualified in the Documents. 
 (a) Due Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power to own its properties and to carry on its business as disclosed in the Reports. The Company is duly qualified to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect. For purpose of this Agreement, a “Material Adverse Effect”
shall mean a material adverse effect on the financial condition, results of operations, properties or business of the Company and its subsidiaries taken as a whole. For purposes of this Agreement, “Subsidiary” means, with respect to any
entity at any date, any corporation, limited or general partnership, limited liability company, 
  

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 trust, estate, association, joint venture or other business entity of which more than 50% of (i) the
outstanding capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of a partnership or limited liability company, the
interest in the capital or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity
business is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by such entity. All the Company’s Subsidiaries as of the Closing Date are set forth in the Reports. 
 (b) Company Representations under Regulation S. The Company makes the following representations and warranties as to Regulation S: 
 (i) Reporting Company Status. The Company is a reporting issuer as defined by Rule 902 of Regulation S and is issuing the Securities as Category 3
securities under Rule 902 of Regulation S; 
 (ii) Offshore Transaction. The Company has not offered the Securities to any person in
the United States or to any U.S. person or for the account or benefit of any U.S. person; and 
 (iii) No Directed Selling Efforts.
In regard to this transaction, the Company has not conducted any “directed selling efforts” as that term is defined in Rule 902 of Regulation S, nor has the Company conducted any general solicitation relating to the offer and sale of the
within securities to persons resident within the United States or elsewhere. 
 (c) Outstanding Stock. All issued and outstanding
shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and nonassessable. 
 (d)
Authority; Enforceability. This Agreement, the Documents, the Preferred Stock, Certificate of Designation and any other agreements delivered together with this Agreement or in connection herewith (collectively “Transaction
Documents”) have been duly authorized, executed and delivered by the Company and are valid and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. The Company has full corporate power and authority necessary to enter into and deliver the Transaction Documents and
to perform its obligations thereunder. 
 (e) Consents. No consent, approval, authorization or order of any court, governmental
agency or body or arbitrator having jurisdiction over the Company, or any of its Affiliates, any Principal Market (as defined in Section 7(b) of this Agreement), nor the Company’s stockholders is required for the execution by the Company
of the Transaction Documents and compliance and performance by the Company of its obligations under the Transaction Documents, including, without limitation, the issuance and sale of the Securities. The issuance and sale of the Preferred Stock and
the Transaction Documents have been approved by the Company’s Board of Directors. 
 (f) No Violation or Conflict. Assuming the
representations and warranties of the Subscriber in Section 3 are true and correct, neither the issuance and sale of the Securities nor the performance of the Company’s obligations under this Agreement and all other Transaction Documents
entered into by the Company will: 
 (i) violate, conflict with, result in a breach of, or constitute a default (or an event which with the
giving of notice or the lapse of time or both would be reasonably likely to constitute a default in any material respect) of a material nature under (A) the certificate of incorporation or bylaws of the Company, (B) to the Company’s
knowledge, any decree, judgment, order, law, treaty, rule, regulation or 
  

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 determination applicable to the Company of any court, governmental agency or body, or arbitrator having jurisdiction over
the Company or over the properties or assets of the Company or any of its Affiliates, (C) the terms of any bond, debenture, note or any other evidence of indebtedness, or any agreement, stock option or other similar plan, indenture, lease,
mortgage, deed of trust or other instrument to which the Company or any of its Affiliates is a party, by which the Company or any of its Affiliates is bound, or to which any of the properties of the Company or any of its Affiliates is subject, or
(D) the terms of any “lock-up” or similar provision of any underwriting or similar agreement to which the Company, or any of its Affiliates is a party except the violation, conflict, breach, or default of which would not have a
Material Adverse Effect; or to the Company’s knowledge; 
 (ii) result in the creation or imposition of any lien, charge or encumbrance
upon the Securities or any of the assets of the Company or any of its Affiliates; or 
 (iii) result in the activation of any anti-dilution
rights or a reset or repricing of any debt or security instrument of any other creditor or equity holder of the Company, nor result in the acceleration of the due date of any obligation of the Company; or 
 (iv) result in the activation of any piggy-back registration rights of any person or entity holding securities or debt of the Company or having the
right to receive securities of the Company. 
 (g) The Securities. The Securities upon issuance: 
 (i) are, or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer under the 1933
Act and any applicable state securities laws; 
 (ii) have been, or will be, duly and validly authorized and on the date of issuance of the
Securities, will be duly and validly issued, fully paid and nonassessable; 
 (iii) will not have been issued or sold in violation of any
preemptive or other similar rights of the holders of any securities of the Company; 
 (iv) will not subject the holders thereof to personal
liability by reason of being such holders, provided Subscriber’s representations herein are true and accurate and Subscriber takes no action or fails to take any actions required for their purchase of the Securities to be in compliance with all
applicable laws and regulations; and 
 (v) will not result in a violation of Section 5 under the 1933 Act. 
 (h) Litigation. There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any
court, governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates that would affect the execution by the Company or the performance by the Company of its obligations under the Transaction Documents.
Except as disclosed in the Reports, there is no pending or, to the best knowledge of the Company, basis for or threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over
the Company, or any of its Affiliates which litigation if adversely determined would have a Material Adverse Effect. 
 (i) Reporting
Company. The Company is a publicly-held company subject to reporting obligations pursuant to Section 13(a) and 15(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and has a class of common shares registered pursuant to
Section 12(g) of the 1934 Act. Pursuant to the provisions of the 1934 Act, the Company has filed all reports and other materials required to be filed thereunder with the Commission during the preceding twelve months. 
  

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 (j) No Market Manipulation. The Company and its Affiliates have not taken, and will not take,
directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the common stock of the Company to facilitate the sale or resale of the Securities or affect
the price at which the Securities may be issued or resold, provided, however, that this provision shall not prevent the Company from engaging in investor relations/public relations activities consistent with past practices. 
 (k) Information Concerning Company. The Reports, as amended, the Documents and Transaction Documents contain all material information relating to
the Company and its subsidiaries and their operations and financial condition and other information, as of their respective dates required to be disclosed therein. Since the last day of the fiscal year of the most recent annual audited financial
statements included in the Reports (“Latest Financial Date”), and except as modified in the Other Written Information, there has been no Material Adverse Event relating to the Company’s business, financial condition or affairs not
disclosed in the Reports. The Reports do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances when
made. 
 (l) Stop Transfer. The Company will not issue any stop transfer order or other order impeding the sale, resale or delivery
of any of the Securities, except as may be required by any applicable federal or state securities laws, including Regulation S, and unless contemporaneous notice of such instruction is given to the Subscriber. 
 (m) Defaults. The Company is not in violation of its certificate or articles of incorporation or bylaws. The Company, to the best of its
knowledge, is (i) not in default under or in violation of any material agreement or instrument to which it is a party or by which it or any of its properties are bound or affected, which default or violation would have a Material Adverse
Effect, (ii) not in default with respect to any order of any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out of any action, suit or proceeding under any statute or
other law respecting antitrust, monopoly, restraint of trade, unfair competition or similar matters, or (iii) not in violation of any statute, rule or regulation of any governmental authority which violation would have a Material Adverse
Effect. 
 (n) Not an Integrated Offering. Neither the Company, nor any of its Affiliates, nor any person acting on its or their
behalf, has directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offer of the Securities pursuant to this Agreement to be integrated with prior offerings
by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules of any Principal Market [as defined in Section 7(b)] which would impair the exemptions relied upon in
this offering or the Company’s ability to timely comply with its obligations hereunder. Nor will the Company or any of its Affiliates take any action or steps that would cause the offer or issuance of the Securities to be integrated with other
offerings which would impair the exemptions relied upon in this offering or the Company’s ability to timely comply with its obligations hereunder. The Company and its Affiliates will not conduct any offering other than the transactions
contemplated hereby that will be integrated with the offer or issuance of the Securities, which would impair the exemptions relied upon in this offering or the Company’s ability to timely comply with its obligations hereunder. 
 (o) No General Solicitation. Neither the Company, nor any of its Affiliates, nor to its knowledge, any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the 1933 Act) in connection with the offer or sale of the Securities. 
  

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 (p) Quotation. The common stock of the Company is included for quotation on the Over-the-Counter
Market. Except as disclosed in the Reports, the Company has not received any oral or written notice that the Common Stock is not eligible, nor will become ineligible for trading on the Over-the-Counter Market, nor that its Common Stock does not meet
all requirements for the continuation of such inclusion. 
 (q) No Undisclosed Liabilities. The Company has no liabilities or
obligations which are material, individually or in the aggregate, which are not disclosed in the Reports and Other Written Information, other than those incurred in the ordinary course of the Company’s businesses since the Latest Financial Date
and which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 (r) No Undisclosed Events
or Circumstances. Since the Latest Financial Date, no event or circumstance has occurred or exists with respect to the Company or its businesses, properties, operations or financial condition, that, under applicable law, rule or regulation,
requires public disclosure or announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed in the Reports. 
 (s) Capitalization. The authorized and outstanding capital stock of the Company as of the date of this Agreement (not including the Securities and the Series C Preferred Stock) are set forth in the Documents.
Except as set forth therein, there are no options, warrants, or rights to subscribe to, securities, rights or obligations convertible into or exchangeable for or giving any right to subscribe for any shares of capital stock of the Company or any of
its Subsidiaries. All of the outstanding shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and nonassessable. 
 (t) No Disagreements with Accountants and Lawyers. There are no disagreements of any kind during the two fiscal years preceding the date of this Agreement, presently existing, or reasonably anticipated by the
Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company, including but not limited to disputes or conflicts over payment owed to such accountants and lawyers. 
 (u) Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 (v) Correctness of
Representations. The Company represents that the information in the Documents is true and correct in all material respects as of the date hereof, and the foregoing representations and warranties are true and correct as of the date hereof in all
material respects. 
 (w) Survival. The foregoing representations and warranties shall survive until three years after the Closing
Date. 
 5. Private Offering. The offer and issuance of the Securities to the Subscriber is being made pursuant to the exemption from
the registration provisions of the 1933 Act afforded by Regulation S. 
 6 Concerning the Preferred Stock. 
 (a) No Interest. Nothing contained herein or in any document referred to herein or delivered in connection herewith shall be deemed to establish
or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest or 
  

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 dividends required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess
of such maximum shall be credited against amounts owed by the Company to the Subscriber and thus refunded to the Company. 
 (b)
Redemption. The Preferred Stock shall not be redeemable or callable except as described in the Certificate of Designation. 
 7.
Covenants of the Company. The Company covenants and agrees with Subscriber that so long as Subscriber owns the Preferred Stock, the Company will use its best efforts in good faith to do the following: 
 (a) Stop Orders. The Company will advise Subscriber, within four hours after the Company receives notice of issuance by the Commission, any state
securities commission or any other regulatory authority of any stop order or of any order preventing or suspending any offering of any securities of the Company, or of the suspension of the qualification of the Common Stock of the Company for
offering or sale in any jurisdiction, or the initiation of any proceeding for any such purpose. 
 (b) Over-the-Counter Market. The
Company will continue the inclusion for the quotation of its Common Stock in the Over-the-Counter Market (the “Principal Market”), and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Principal Market, as applicable. As of the date of this Agreement, the Over-the-Counter Market is the Principal Market. 
 (c) Market Regulations. The Company shall notify the Commission, the Principal Market and applicable state authorities, in accordance with their requirements, of the transactions contemplated by this Agreement, and shall take all
other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid issuance of the Securities to Subscriber. 
 (d) Filing Requirements. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof or
(ii) until all the Preferred Stock is no longer outstanding, the Company will (A) comply in all respects with its reporting and filing obligations under the 1934 Act and (B) cause its Common Stock to continue to be registered under
Section 12(g) of the 1934 Act. The Company will use its best efforts not to take any action or file any document (whether or not permitted by the 1933 Act or the 1934 Act or the rules thereunder) to terminate or suspend such registration or to
terminate or suspend its reporting and filing obligations under said acts. 
 (e) Taxes. From the date of this Agreement and until
the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company will promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful
taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business of the Company; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be
contested in good faith by appropriate proceedings and if the Company shall have set aside on its books adequate reserves with respect thereto, and provided, further, that the Company will pay all such taxes, assessments, charges or levies forthwith
upon the commencement of proceedings to foreclose any lien which may have attached as security therefore. 
 (f) Insurance. From the
date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company will keep its assets which are of an insurable character insured by
financially sound and reputable insurers against loss or damage by fire, explosion and other risks customarily insured against by companies in the Company’s line of business, in amounts sufficient to prevent the Company from becoming a
co-insurer and not in any event less than one hundred percent (100%) of the insurable value of the property insured; and the Company will 
  

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 maintain, with financially sound and reputable insurers, insurance against other hazards and risks and liability to
persons and property to the extent and in the manner customary for companies in similar businesses similarly situated and to the extent available on commercially reasonable terms. 
 (g) Books and Records. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or
(ii) until all the Preferred Stock is no longer outstanding, the Company will keep true records and books of account in which full, true and correct entries will be made of all dealings or transactions in relation to its business and affairs in
accordance with generally accepted accounting principles applied on a consistent basis. 
 (h) Governmental Authorities. From the
date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company shall duly observe and conform in all material respects to all valid
requirements of governmental authorities relating to the conduct of its business or to its properties or assets. 
 (i) Intellectual
Property. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all the Preferred Stock is no longer outstanding, the Company shall maintain in full force and effect its
corporate existence, rights and franchises and all licenses and other rights to use intellectual property owned or possessed by it and reasonably deemed to be necessary to the conduct of its business, unless it is sold for value. 
 (j) Properties. From the date of this Agreement and until the sooner of (i) two (2) years after the date hereof, or (ii) until all
the Preferred Stock is no longer outstanding, the Company will keep its properties in good repair, working order and condition, reasonable wear and tear excepted, and from time to time make all necessary and proper repairs, renewals, replacements,
additions and improvements thereto; and the Company will at all times comply with each provision of all leases to which it is a party or under which it occupies property if the breach of such provision could reasonably be expected to have a Material
Adverse Effect. 
 (k) Non-Public Information. The Company covenants and agrees that neither it nor any other person acting on its
behalf will provide any Subscriber or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto Subscriber shall have agreed in writing to receive such information. The
Company understands and confirms that Subscriber shall be relying on the foregoing representations in effecting transactions in securities of the Company. 
 8. Covenants of the Company and Subscriber Regarding Indemnification. 
 (a) The Company agrees to
indemnify, hold harmless, reimburse and defend Subscriber, the Subscriber’s officers, directors, agents, Affiliates, control persons, and principal shareholders or other equity holders against any claim, cost, expense, liability, obligation,
loss or damage (including reasonable legal fees and expenses) of any nature, incurred by or imposed upon the Subscriber or any such person which results, arises out of or is based upon (i) any misrepresentation by Company or breach of any
warranty by Company in this Agreement, in the Documents or in any Exhibits attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by the
Company of any covenant or undertaking to be performed by the Company hereunder, or any other agreement entered into by the Company and Subscriber relating hereto. 
 (b) Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company and each of the Company’s officers, directors, agents, Affiliates, control persons against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees and expenses) of any nature, incurred by or imposed upon the Company or any such person which results, arises out of or is based upon (i) any material misrepresentation by Subscriber
in this Agreement or in any Exhibits or Schedules attached 
  

 10 

 hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any
breach or default in performance by Subscriber of any covenant or undertaking to be performed by Subscriber hereunder, or any other agreement entered into by the Company and Subscriber, relating hereto. 
 (c) In no event shall the liability of Subscriber or permitted successor hereunder or under any Transaction Document or other agreement delivered in
connection herewith be greater in amount than the dollar amount of the Purchase Price. 
 9. Miscellaneous. 
 (a) Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or
(b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall
be: (i) if to the Company, to: Viragen International, Inc., 865 S.W. 78th Avenue, Suite 100, Plantation,
Florida 33324, telecopier: (954) 233-1414, and (ii) if to the Subscriber, to: the one or more addresses and telecopier numbers indicated on the signature page hereto. The Company may change its address for notices but only to an address
and fax number located in the United States. 
 (b) Entire Agreement; Assignment. This Agreement, the Documents and other documents
delivered in connection herewith represent the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties. Neither the Company nor the Subscriber has relied on
any representations not contained or referred to in this Agreement and the documents delivered herewith. No right or obligation of the Company shall be assigned without prior notice to and the written consent of the Subscriber. 
 (c) Counterparts/Execution. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile signature and delivered by facsimile transmission.

 (d) Law Governing this Agreement. This Agreement and all disputes arising therefrom and the transaction contemplated thereby shall
be governed by and construed in accordance with the laws of the State of Florida without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Any action brought by any party
against another party concerning this Agreement or any of the transactions contemplated by this Agreement shall be brought only in the civil or state courts of Florida or in the federal courts located in Broward County, Florida. The parties and
the individuals executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the personal jurisdiction of such courts for such purposes and hereby waive trial by
jury in any such action or proceeding. The prevailing party shall be entitled to recover from the adverse party its reasonable attorney’s fees, costs and expenses. In the event that any provision of this Agreement or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 
  

 11 

 (e) Specific Enforcement, Consent to Jurisdiction. The Company and Subscriber acknowledge and
agree that irreparable damage may occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to
seek one or more preliminary and final injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may be
entitled by law or equity. Subject to Section 9(d) hereof, each of the Company, Subscriber and any signator hereto in his personal capacity hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction in Florida of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit
any right to serve process in any other manner permitted by law. 
 [THIS SPACE INTENTIONALLY LEFT BLANK] 
  

 12 

 SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT (A) 
 Please acknowledge your acceptance of the foregoing Subscription Agreement by signing and returning a copy to the undersigned whereupon it shall become a
binding agreement between us. 
  

			
	VIRAGEN INTERNATIONAL, INC.
	a Delaware corporation
		
	By:	 	 /s/ Dennis W. Healey

	Name:	 	Dennis W. Healey
	Title:	 	Executive Vice President/CFO
	Dated:	 	August 18, 2006

  

					
	 SUBSCRIBER
	 	 PURCHASE
 PRICE AND
 STATED VALUE
 OF PREFERRED
 STOCK
	 	 COMMON
 SHARES

			
	Ole Martin Siem	 	 $315,400
	 	 —

	Postboks 221	 		 	
	Sande 3071	 		 	
	Norway	 		 	
			
	OR	 		 	
			
	Ore Bergard	 		 	
	Sande 3070	 		 	
	Norway	 		 	
	Fax:	 		 	
			
	 /s/ O.M. Siem
	 		 	
			
	(Signature)	 		 	
	By:	 		 	

 SCHEDULE 1 
 1.1. Deliveries. 
 (a) On
the Closing Date, the Company shall deliver or cause to be delivered to each Subscriber the following: 
 (i) this Agreement
duly executed by the Company; 
 (ii) a legal opinion of Company Counsel, in the form of Exhibit A attached hereto;

 (iii) certificates registered in the name of the Subscriber representing the number of shares of Series D Preferred Stock
being sold to such Subscriber hereunder as set forth opposite such Subscriber’s name on the signature page hereto; 
 (iv) certificates registered in the name of the Subscriber representing the number of shares of Common Stock being sold to such Subscriber hereunder as set forth opposite such Subscriber’s name on the signature page hereto; 

(v) a certificate evidencing the incorporation (or other organization) and good standing of the Company and each of its Subsidiaries in
such entity’s state of incorporation or organization and, as to the Company, in the State of Florida, as of a date within ten (10) days of the Closing Date; 
 (vi) a certified copy of the Corporation’s Certificate of Incorporation as amended, including the Certificate of Designation with
respect to the Series D Preferred Stock, as certified by the Secretary of State of the State of Delaware as of a date within ten days of the Closing Date; and 
 (vii) a certificate of the chief executive officer and chief financial officer of the Company to the effect of compliance with
Section 1.2 (b)(i), (ii), (iv) and (v). 
 (b) On the Closing Date, each Subscriber shall deliver or cause to be delivered to the
Company the following: 
 (i) this Agreement duly executed by such Subscriber; and 
 (ii) Subscriber’s Purchase Price for the Preferred Stock being purchased. 
 1.2. Closing Conditions. 
 (a) The obligations of the Company
hereunder in connection with the Closing are subject to the following conditions being met: 
 (i) the accuracy in all
respects when made and on the Closing Date of the representations and warranties of the Subscribers contained herein; 
 (ii)
all obligations, covenants and agreements of the Subscribers required to be performed at or prior to the Closing Date shall have been performed; and 
  

 i 

 (iii) the delivery by the Subscribers of the items set forth in Section 1.1(b) of
this Agreement. 
 (b) The respective obligations of the Subscribers hereunder in connection with the Closing are subject to the following
conditions being met: 
 (i) the accuracy in all respects on the date hereof and on the Closing Date of the representations
and warranties of the Company contained herein; 
 (ii) all obligations, covenants and agreements of the Company required to
be performed at or prior to the Closing Date shall have been performed; 
 (iii) the delivery by the Company of the items set
forth in Section 1.1(a) of this Agreement; 
 (iv) there shall have been no Material Adverse Effect with respect to the
Company since the date hereof; and 
 (v) from the date hereof to the Closing Date, trading in the Common Stock shall not have
been suspended by the Commission, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets shall not have been suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or Florida or New York State authorities nor shall there have occurred any material
outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of Subscriber, makes it
impracticable or inadvisable to purchase the Preferred Stock at the Closing. 
  

 ii 

 EXHIBIT A 
 CERTIFICATE TO SET FORTH DESIGNATIONS, 
 PREFERENCES AND RIGHTS OF 
 SERIES D 24% CUMULATIVE PREFERRED STOCK, 
 $0.01 PAR VALUE PER SHARE 
 It is hereby certified that: 
 I. The name of the corporation is Viragen International, Inc. (the “Corporation”), a Delaware corporation. 
 II. Set forth hereinafter is a statement of the voting powers, preferences, limitations, restrictions and relative rights of shares of Series D 24%
Cumulative Preferred Stock, hereinafter designated as contained in a resolution of the Board of Directors of the Corporation pursuant to a provision of the Certificate of Incorporation of the Corporation permitting the issuance of said Series D 24%
Cumulative Preferred Stock by resolution of the Board of Directors: 
 Creation of Series D 24% Cumulative Preferred Stock. Pursuant
to authority conferred upon the Board of Directors by the Certificate of Incorporation, said Board of Directors adopt a resolution providing for the designation and issuance of a series of 15,000 shares of Series D 24% Cumulative Preferred Stock
pursuant to action by the Board of Directors dated August 6, 2006, which resolution is as follows: 
 SERIES D 24%
CUMULATIVE PREFERRED STOCK 
 1. Designation: Number of Shares.
The designation of said series of preferred stock shall be Series D 24% Cumulative Preferred Stock (the “Series D Preferred Stock”). The number of shares of Series D Preferred Stock shall be 15,000 shares. Each share of Series D Preferred
Stock shall have a stated value equal to $100 (as adjusted for any stock dividends, combinations or splits with respect to such shares) (the “Stated Value”), and $0.01 par value. The Corporation will not issue more than 15,000 shares of
Series D Preferred Stock. 
 2. Dividends. 
 (a) Other than with respect to the Corporation’s Series C 24% Cumulative Preferred Stock (the “Series C Preferred Stock”), which shall be senior to the Series D Preferred Stock, the Holders of
outstanding shares of Series D Preferred Stock (“Holders”) shall be entitled to receive preferential dividends in cash out of any funds of the Corporation before any dividend or other distribution will be paid or declared and set apart for
payment on any shares of any Common Stock, or other class of stock presently authorized or to be authorized (the Common Stock, and such other stock being hereinafter collectively the “Junior Stock”) at the rate of 24% per annum on the
Stated Value, from the date of issuance, payable in cash on the earlier of (i) annually in arrears commencing August 18, 2007 and annually thereafter on each August 18th in cash or (ii) upon redemption, as hereinafter provided,
following the closing of any subsequent financing (whether done in one or more related financings of debt or equity) by the Company and/or its parent company, Viragen, Inc., with gross proceeds equal to or greater than $7,000,000. To the extent not
prohibited by law, dividends must be paid to the Holders not later than five (5) business days after the end of each period for which dividends are payable. 
 (b) The dividends on the Series D Preferred Stock, at the rates provided above, shall be cumulative whether or not declared so that, if at any time full cumulative dividends at the rate 
  

 A-1 

 aforesaid on all shares of the Series D Preferred Stock then outstanding, from the date from and after which dividends
thereon are cumulative to the end of the annual dividend period next preceding such time shall not have been paid or declared and set apart for payment, or if the full dividend on all such outstanding Series D Preferred Stock for the then current
dividend period shall not have been paid or declared and set apart for payment, the amount of the deficiency shall be paid or declared and set apart for payment before any sum shall be set apart for or applied by the Corporation or a subsidiary of
the Corporation to the purchase, redemption or other acquisition of the Series D Preferred Stock and before any dividend or other distribution shall be paid or declared and set apart for payment on any Junior Stock and before any sum shall be set
aside for or applied to the purchase, redemption or other acquisition of Junior Stock. 
 (c) Dividends on all shares of the Series D
Preferred Stock shall begin to accrue and be cumulative from and after the date of issuance thereof. A dividend period shall be deemed to commence on the day following a dividend payment date herein specified and to end on the next succeeding
dividend payment date herein specified. 
 3. Liquidation. 
 (a) Upon the dissolution, liquidation or winding-up of the Corporation, whether voluntary or involuntary, and subject to the priority of the Series C
Preferred Stock, the Holders of the Series D Preferred Stock shall be entitled to receive before any payment or distribution shall be made on Junior Stock, out of the assets of the Corporation available for distribution to stockholders, the Stated
Value per share of Series D Preferred Stock and all accrued and unpaid dividends to and including the year-end of the year of redemption or liquidation. For these purposes a year end shall be each August 18. Upon the payment in full of all
amounts due to Holders of the Series C Preferred Stock and then to the holders of the Series D Preferred Stock, the holders of the Common Stock of the Corporation and any other class of Junior Stock shall receive all remaining assets of the
Corporation legally available for distribution. If the assets of the Corporation available for distribution to the Holders of the Series C Preferred Stock and the Series D Preferred Stock shall be insufficient to permit payment in full of the
amounts payable to the Holders of both the Series C Preferred Stock and the Series D Preferred Stock upon such liquidation, dissolution or winding-up, whether voluntary or involuntary, then all such assets of the Corporation shall be distributed to
the exclusion of the holders of shares of Junior Stock first to the Holders of the Series C Preferred Stock, and any remaining assets shall then be distributed to the holders of the Series D Preferred Stock, and each Holder of the Series D Preferred
Stock shall receive a percentage of the funds available equal to the full amount of such funds payable to such holder as a liquidation preference, in accordance with each respective designation of preferences and rights, as a percentage of the full
amount of funds available for such payment payable to all holders of Series D Preferred Stock. 
 (b) The purchase or the redemption by the
Corporation of shares of any class of stock, the merger or consolidation of the Corporation with or into any other corporation or entity other than its parent, Viragen, Inc., or the sale or transfer by the Corporation of substantially all of its
assets shall be deemed to be a liquidation, dissolution or winding-up of the Corporation for the purposes of this paragraph 3. 
 4.
Voting Rights. The Holder of shares of Series D Preferred Stock shall not have voting rights except as described in Section 5 hereof. 
  

 A-2 

 5. Restrictions and Limitations. 
 (a) Amendments to Charter. The Corporation shall not amend its certificate of incorporation or designate any class or series of preferred stock
without the approval by the Holders of at least 70% of the then outstanding shares of Series D Preferred Stock if such amendment would: 
 (i) change the relative seniority rights of the Holders of Series D Preferred Stock as to the payment of dividends or in any payment on liquidation in relation to the holders of any other capital stock of the Corporation, or create any
other class or series of capital stock entitled to parity or seniority as to the payment of dividends or any payment on liquidation in relation to the Holders of Series D Preferred Stock; 
 (ii) reduce the amount payable to the Holders of Series D Preferred Stock upon the voluntary or involuntary liquidation, dissolution or winding up of
the Corporation, or change the relative seniority of the liquidation preferences of the Holders of Series D Preferred Stock to the rights upon liquidation of the holders of other capital stock of the Corporation, or change the dividend rights of the
Holders of Series D Preferred Stock or otherwise change the rights of the Holders of the Series D Preferred Stock under this Certificate to Set Forth Designations, Preferences and Rights of Series D 24% Cumulative Preferred Stock, $0.01 par value
per share (the “Certificate of Designations of Series D Preferred Stock”); 
 (iii) cancel or modify the rights of the Holders of
Series D Preferred Stock provided for in this Section 5. 
 (b) Other than with respect to the Series C Preferred Stock, the Corporation
shall not redeem, repurchase or otherwise acquire any shares of capital stock of the Corporation without the approval of the Holders of at least, 70% of the then outstanding shares of Series D Preferred Stock until after the expiration of the
Holders redemption rights under Section 6 below and performance thereof by the Corporation to the extent required. 
 (c) Other than
with respect to the Series C Preferred Stock and the Series D Preferred Stock, the Corporation shall not, directly or indirectly, declare or pay cash dividends or distributions on its capital stock without the approval of the Holders of at least 70%
of the then outstanding shares of Series D Preferred Stock until after the expiration of the Holders’ redemption rights under Section 6 below and performance thereof by the Corporation to the extent required. 
 6. Redemption. 
 (a) Subject to the
priority of the Series C Preferred Stock and the restrictions contained in Paragraph 5(c) of the Certificate to Set Forth Designations, Preferences and Rights of Series C 24% Cumulative Preferred Stock, $0.01 par value per share, the Series D
Preferred Stock is redeemable by either party upon the earlier of (i) eighteen (18) months from issuance or (ii) at such time as the Corporation and/or its parent, Viragen, Inc. (the “Parent”), completes a subsequent
financing, of either debt or equity, in a single transaction or series of related transactions resulting in the receipt of aggregate gross proceeds (without duplication) to the Corporation and/or the Parent of $7,000,000 or more, each Holder may
require the Corporation to redeem, at the sole option of the Holder, all or a portion of each Holder’s Series D Preferred Stock outstanding at such time at the Stated Value, including any accrued but unpaid dividend, rounded up to the year-end
(the next August 18) of the year of redemption. The Corporation shall provide notice to the Holders within 5 days of the completion of such subsequent financing, and the Holders shall have 10 days following the issuance of such notice in order
to elect redemption. Payment of the redemption amount as aforesaid shall be made within 30 days of receipt of such written election and against surrender of any stock certificates representing the shares of Series D Preferred Stock to be redeemed.

  

 A-3 

 (b) Subject to the priority of the Series C Preferred Stock and the restrictions contained in Paragraph
5(c) of the Certificate to Set Forth Designations, Preferences and Rights of Series C 24% Cumulative Preferred Stock, $0.01 par value per share, at such time as the Corporation and/or its Parent completes a subsequent financing, of either debt or
equity, in a single transaction or series of related transactions resulting in the receipt of aggregate gross proceeds (without duplication) to the Corporation and/or the Parent of $7,000,000 or more, the Corporation may redeem, at its sole option,
all, but not less than all, of the Series D Preferred Stock outstanding at such time at the Stated Value thereof plus all accrued but unpaid dividends, rounded up to the year-end (the next August 18) of the year of redemption. The Corporation
shall provide written notice of its election to redeem the Series D Preferred Stock to the Holders at or prior to the receipt of such gross proceeds and shall set aside the redemption amount in a separate account for payment to such Holders. Payment
to such Holders shall be made concurrently with the Corporation’s receipt of such gross proceeds. The outstanding shares of Series D Preferred Stock shall be deemed automatically cancelled and no longer outstanding upon the Corporation’s
payment of such redemption price in full. 
 7. Status of Redeemed Stock. In case any shares of Series D Preferred Stock shall be
redeemed or otherwise repurchased or reacquired, the shares so redeemed or reacquired shall resume the status of authorized but unissued shares of Preferred Stock and shall no longer be designated as Series D Preferred Stock. 
 8. Authority to Amend. This Certificate of Designation of Series D Preferred Stock was adopted by the Corporation’s Board of Directors on
August 10, 2006, and no stockholder consent was required for the adoption thereof pursuant to the authority conferred upon the Board of Directors by the Certificate of Incorporation of said Corporation 
 IN WITNESS WHEREOF, the undersigned, being the Executive Vice President of this Corporation, has executed this Certificate as of August 11, 2006.

  

			
	VIRAGEN INTERNATIONAL, INC.
		
	By:	 	 /s/ Dennis W. Healey

	Name:	 	Dennis Healey
	Title:	 	Executive Vice President

  

 A-4Assest Purchase Agreement

 EXHIBIT 10.1 
 ASSET PURCHASE AGREEMENT 
 This ASSET PURCHASE AGREEMENT (this “Agreement”) is
entered into and dated as of August 21, 2006 (the “Effective Date”), by and among TR Acquisition Co., Inc., a Delaware corporation (the “Purchaser”), Radnor Holdings Corporation, a Delaware corporation (the
“Company”), and each of the Company’s domestic direct and indirect subsidiaries listed on the signature page hereto (individually, a “Seller” and, together with the Company, the “Sellers”).

 WITNESSETH: 
 WHEREAS, Sellers
are engaged in the business of manufacturing and distributing a broad line of disposable food service products in the United States and specialty chemical products worldwide (the “Business”); 
 WHEREAS, upon the execution of this Agreement, each of the Sellers has agreed to file a voluntary petition for relief under Chapter 11 of Title 11 of the
United States Code, 11 U.S.C. §§ 101-1532 (as amended, the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) on August 21, 2006, and each
such Seller will request that the Sellers’ respective Chapter 11 cases be jointly administered for procedural purposes under a single Case Number (the “Bankruptcy Case”); 
 WHEREAS, upon the terms and subject to the conditions set forth herein and as authorized under Sections 105, 363, and 365 of the Bankruptcy Code,
Purchaser desires to purchase from the Sellers, and the Sellers desire to sell to Purchaser, all of the Sellers’ assets (other than the Excluded Assets (as defined below)) in exchange for the payment to the Sellers of the Purchase Price (as
defined below) and the assumption by the Purchaser of certain of the Sellers’ liabilities and obligations; 
 WHEREAS, the Sellers
believe, following consultation with their financial advisors and consideration of available alternatives, that, in light of the current circumstances, a sale of their assets is necessary to maximize value and is in the best interest of the Sellers,
their respective shareholders and creditors; and 
 WHEREAS, the transactions contemplated by this Agreement (the
“Transactions”) are subject to the approval of the Bankruptcy Court and will be consummated only pursuant to a Sale Order (as defined below) to be entered in the Bankruptcy Case and other applicable provisions of the Bankruptcy
Code. 

 NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants
and agreements hereinafter contained, and intending to be bound hereby, the parties hereto hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1 Certain
Definitions. 
 For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1.1 or
in other Sections of this Agreement, as identified in the chart in Section 1.2: 
 “Affiliate” means, with
respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and the term “control” (including the terms
“controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership
of voting securities, by contract or otherwise. 
 “Allowed Administrative Amount” means $8,600,000 as such amount may be
adjusted in accordance with Schedule 8.2(c). 
 “Assumed Executory Contracts” means all Assumed Contracts and Assumed
Leases. 
 “Assumption Order” means an Order of the Bankruptcy Court authorizing the assumption or the assumption and
assignment of a Contract or Lease pursuant to Section 365 of the Bankruptcy Code, which Order may be the Sale Order. 
 “Bank
Loan Amount” means $30,730,000 as such amount may be adjusted in accordance with Schedule 1.1A. 
 “Budget”
has the meaning set forth in the DIP Credit Agreement. 
 “Business Day” means any day of the year on which national banking
institutions in New York are open to the public for conducting business and are not required or authorized by law to close. 
 “Claim” has the meaning set forth in Section 101(5) of the Bankruptcy Code. 
 “Code” means
the Internal Revenue Code of 1986, as amended. 
 “Contract” means any contract, indenture, note, bond, personal property or
other lease, license, purchase or sale order, warranties, commitments, or other written or oral agreement, other than a Lease, to which a Seller is a party. 
 “Cure Costs” means amounts that must be paid and obligations that otherwise must be satisfied, including pursuant to Sections 365(b)(1)(A) and (B) of the Bankruptcy Code, in connection with the
assumption and/or assignment of the Assumed Leases and the Assumed Contracts. 
 “Designation Deadline” means 5:00 p.m., New
York time, on the day that is five (5) Business Days prior to the Bid Deadline. 
  

 2 

 “DIP Credit Agreement” means the debtor in possession financing facility approved by the
Bankruptcy Court. 
 “Documents” means all files, documents, instruments, papers, books, reports, records, tapes,
microfilms, photographs, letters, budgets, forecasts, ledgers, journals, title policies, customer lists, regulatory filings, operating data and plans, technical documentation (design specifications, functional requirements, operating instructions,
logic manuals, flow charts, etc.), user documentation (installation guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web pages, etc.), whether or not in
electronic form. 
 “Employee Benefit Plans” means each deferred compensation and each bonus or other incentive
compensation, stock purchase, stock option and other equity related compensation plan, program, agreement or arrangement; each severance or termination pay, medical, surgical, hospitalization, life insurance and other “welfare” plan, fund
or program (within the meaning of Section 3(1) of ERISA); each profit-sharing, stock bonus or other “pension” plan, fund or program (within the meaning of Section 3(2) of ERISA); each employment, termination, change in control,
retention or severance plan, agreement or arrangement; and each other employee benefit plan, fund, program, agreement or arrangement, in each case, that is sponsored, maintained or contributed to, or required to be contributed to, by the Company,
the Sellers or an ERISA Affiliate or to which the Company, the Sellers or an ERISA Affiliate is party, whether written or oral, for the benefit of any director or employee or former director or employee of the Company or any former Subsidiary of the
Company. 
 “Employees” means all individuals, as of the date hereof, who are employed by any of the Sellers. 
 “Encumbrances” means any security interest, lien, collateral assignment, right of setoff, debt, obligation, liability, pledge, levy,
charge, escrow, encumbrance, option, right of first refusal, transfer restriction, conditional sale contract, title retention contract, mortgage, lease, deed of trust, hypothecation, indenture, security agreement, easement, servitude, proxy, voting
trust or agreement, transfer restriction under any shareholder or similar agreement, or any other agreement, arrangement, contract, commitment, understanding or obligation of any kind whatsoever, whether written or oral. 
 “Environmental Laws” means all federal, state, local and foreign laws, regulations, rules and ordinances, and common law, relating to
pollution or protection of human health, safety, or the environment, including, without limitation, laws relating to releases or threatened releases of Hazardous Substances into the environment (including, without limitation, ambient air, surface
water, groundwater, land, surface and subsurface strata). 
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. 
 “ERISA Affiliate” means any entity that with the Company or the Sellers is: 
  

	 	(a)	a member of a controlled group of corporations within the meaning of Section 414(b) of the Code. 

  

 3 

	 	(b)	a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Code; 

  

	 	(c)	a member of an affiliated service group within the meaning of Section 414(m) of the Code; or 

  

	 	(d)	a member of a group of organizations required to be aggregated under Section 414(o) of the Code. 

 “Excluded Contract” means any Contract that is not an Assumed Contract. 
 “Excluded Environmental Liabilities” means any Liability, whenever arising or occurring, whether or not constituting a breach of any
representation or warranty herein and whether or not set forth on any disclosure schedule hereto, arising under Environmental Laws with respect to (i) the Excluded Assets, (ii) any assets other than the Purchased Assets and the Excluded
Assets owned, leased, operated or occupied by the Sellers at any time, or (iii) the Business, the Purchased Assets or the Real Property (including without limitation any arising from the on-site or off-site release, threatened release,
treatment, storage, disposal, or arrangement for disposal of Hazardous Substances) with respect to Liabilities that occurred or existed prior to the Closing Date, except in each case to the extent such Liability is an Assumed Liability pursuant to
Section 2.3(a) hereof. 
 “Excluded Executory Contract” means any Excluded Contract or Excluded Lease. 
 “Excluded Lease” means any Lease that is not an Assumed Lease. 
 “Excluded Matter” means: (i) any material change in the United States or foreign economies or financial markets in general;
(ii) any material change that generally affects the industry in which Sellers operate; (iii) any material change arising in connection with acts of God, hostilities, acts of war, sabotage, terrorism or military actions or any escalation or
material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof; (iv) any change in applicable Laws or GAAP or generally accepted interpretation thereof; or
(v) any actions taken or proposed to be taken by Purchaser or any of its Affiliates or with Purchaser’s prior written consent or permission; (vi) any actions required by law; (vii) any change resulting from the public
announcement of this Agreement, compliance with terms of this Agreement or the consummation of the Transactions, including by reason of the identity of the Purchaser or communication by the Purchaser of its plans or intentions regarding the
operation of the Business; (vii) any material adverse effect resulting from the filing of the Bankruptcy Case. 
 “Executory
Contract” means any Contract or Lease that is executory as that term is used in Section 365 of the Bankruptcy Code. 
 “Final Order” means an Order of the Bankruptcy Court the operation of which has not been modified or amended without the consent of Purchaser, reversed or stayed, as to which Order no appeal or motion, application, petition
or writ seeking reversal, reconsideration, reargument, rehearing, certiorari, amendment, modification, a stay or similar relief is pending, and the time to file any such appeal or motion, application, petition or writ has expired. 
  

 4 

 “GAAP” means generally accepted accounting principles in the United States, consistently
applied throughout the specified period. 
 “Governmental Body” means any government or governmental or regulatory body
thereof, or political subdivision thereof, whether foreign, federal, state, or local, or any agency, instrumentality or authority thereof, or any court or arbitrator (public or private). 
 “Hazardous Substances” means any chemical, mixture, waste, substance, material, pollutant, or contaminant, including without limitation
petroleum, asbestos and asbestos-containing materials, with respect to which liability or standards of conduct are imposed under any Environmental Laws. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “Intellectual Property” means all intellectual property arising from or in respect of the following: (i) all patents and applications therefor, including continuations, divisionals, continuations-in-part, or reissues
of patent applications and patents issuing thereon, (ii) all trademarks, service marks, trade names, service names, brand names, all trade dress rights, logos, Internet domain names and corporate names and general intangibles of a like nature,
together with the goodwill associated with any of the foregoing, and all applications, registrations and renewals thereof, (iii) copyrights and registrations and applications therefor and works of authorship, and mask work rights, and
(iv) all Software of Sellers. 
 “Interest” shall mean an “interest in property” as such phrase is used in
Section 363(f) of the Bankruptcy Code. 
 “Knowledge of Non-Debtor Subsidiaries” means the actual knowledge of Michael
Kennedy, Paul Ridder, Rad Hastings, Richard C. Hunsinger, Carrie Williamson, Scott Myers, Michael Pate, Stan Springel, Henrik Akermark, Markuu Rautanen, Pierrette Morissette and Jouni Lattu, and, to the extent not included in the aforementioned
individuals, the senior most executive and financial officers of each of the Non-Debtor Subsidiaries. 
 “Knowledge of
Sellers” means the actual knowledge of Michael Kennedy, Paul Ridder, Rad Hastings, Richard C. Hunsinger, Carrie Williamson, Scott Myers, Michael Pate and Stan Springel. 
 “Law” means any federal, state, local or foreign law, statute, code, ordinance, rule or regulation or common law requirement.

 “Leases” means all unexpired leases, subleases, licenses or other agreements, including all amendments, extensions,
renewals, guaranties or other agreements with respect thereto, pursuant to which the Sellers hold or use any non-residential Real Property. 
 “Legal Proceeding” means any judicial, administrative or arbitral actions, suits, proceedings (public or private) or claims or any proceedings by or before a Governmental Body. 
  

 5 

 “Liability” means any debt, liability or obligation (whether direct or indirect, known
or unknown, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due), and including all costs and expenses relating thereto. 
 “Lien” has the meaning set forth in Section 101(37) of the Bankruptcy Code. 
 “Material Adverse Change” means any event, occurrence or effect (regardless of whether such event, occurrence or effect constitutes a breach of any representation, warranty or covenant of Sellers hereunder) that has had or
would be reasonably likely to have, individually or when considered together with any other events, occurrences or effects (i) a material adverse change in the Business, financial condition, or assets or property of the Company and its
Subsidiaries taken as a whole or (ii) a material adverse change in or to the ability of Sellers to consummate the Transactions or perform their obligations under this Agreement, other than, in either case, to the extent such effect or change
results from or relates to an Excluded Matter; provided, however, that the act of filing a case under chapter 11 of the Bankruptcy Code by the Sellers does not and shall not constitute a Material Adverse Change. 
 “Material Decision” shall mean any of the following to the extent the same may affect the Business following the Closing Date:
(i) entering into any Material Contract; (ii) terminating any Lease or Contract; (iii) making any material amendment or waiving any of Seller’s rights in respect of any Lease or Contract; or (iv) taking any action to respond
to any material customer or regulatory complaint outside of the normal course of business. 
 “Non-Debtor Subsidiaries”
means all of the Company’s direct and indirect subsidiaries that are not Sellers. 
 “Order” means any order,
injunction, judgment, decree, ruling, writ, assessment or arbitration award of a Governmental Body. 
 “Permits” means any
approvals, authorizations, consents, licenses, permits or certificates of a Governmental Body. 
 “Permitted Exceptions”
means, with respect to or upon any of the property or assets of the Sellers, whether owned as of the date hereof or thereafter, (i) all Liens, defects, exceptions, restrictions, easements, rights of way and encumbrances of record of such
property or asset and which would not individually (or in the aggregate with others) be reasonably expected to have a Material Adverse Change on the use or enjoyment of such asset, (ii) any other imperfections in title, charges, easements,
restrictions, encumbrances and other matters affecting title that do not materially affect the value or use of the affected asset, (iii) Liens for Taxes that constitute Assumed Liabilities, (iv) zoning, entitlement and other land use and
environmental laws and regulations by any Governmental Body; (v) Liens, Claims, Interests or Encumbrances that constitute Assumed Liabilities; (vi) violations of laws, regulations, ordinances, orders or requirements, if any, arising out of
the adoption, promulgation, repeal, modification or reinterpretation of any law, rule, regulation, ordinance or order of any federal, state, county or local government, governmental agency, court, commission, department or other such entity which
occurs subsequent to the Effective Date, (vii) Liens, title exceptions or other imperfections of title caused by or resulting from the acts of Purchaser or any of its affiliates, employees, 
  

 6 

 officers, directors, agents, contractors, invitees or licensees and (viii) encroachments, overlaps, boundary line
disputes, and any other matters which would be disclosed by an accurate survey and inspection of the affected asset and that do not materially detract from the value of or materially impair the use of the affected asset. 
 “Permitted Restructuring Alternative” means any of the Sellers’ other restructuring alternatives to the extent and only to the
extent they result in a lump-sum cash payment to the Tennenbaum Lenders in full satisfaction of all Liabilities and other obligations under the Tennenbaum Credit Agreement on or before ninety (90) days following the Petition Date. 

“Person” means any individual, corporation, limited liability company, partnership, firm, joint venture, association, joint-stock
company, trust, unincorporated organization, Governmental Body or other entity. 
 “Petition Date” means the date on which
each of the Sellers filed their respective petitions for relief under Chapter 11 of the Bankruptcy Code. 
 “Revolving Credit
Facility” means the Revolving Credit and Security Agreement, dated as of December 29, 2005, entered into by and among Radnor and certain of its subsidiaries and National City Bank, as lender and agent, and certain other lenders, as
amended, modified or restated. 
 “Sale Order” means an order entered by the Bankruptcy Court in the form annexed hereto as
Exhibit 1.1A, which attached form is acceptable to the Purchaser. 
 “Software” means any and all (i) computer
programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code, (ii) databases and compilations, including any and all data and collections of data, whether machine
readable or otherwise, (iii) descriptions, flow-charts and other work product used to design, plan, organize and develop any of the foregoing, (iv) screens, user interfaces, report formats, firmware, development tools, templates, menus,
buttons and icons, and (v) all documentation including user manuals and other training documentation related to any of the foregoing. 
 “Subsidiary” means all direct and indirect subsidiaries of the Company. 
 “Substantially All”
means more than fifty percent (50%). 
 “Tax Authority” means any government, or agency, instrumentality or employee
thereof, charged with the administration of any law or regulation relating to Taxes. 
 “Taxes” means (i) all federal,
state, local or foreign taxes, charges or other assessments, including, without limitation, all net income, gross receipts, capital, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property and estimated taxes, (ii) any item described in clause (i) for which a taxpayer is liable as a transferee or successor, by reason of the
regulations under Section 1502 of the Code, or by contract, indemnity or otherwise, and (iii) all interest, penalties, fines, additions to tax or additional amounts imposed by any Tax Authority in connection with any item described in
clause (i) or (ii). 
  

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 “Tax Return” means all returns, declarations, reports, estimates, information returns
and statements required to be filed in respect of any Taxes (including any attachments thereto or amendments thereof). 
 “Tennenbaum
Credit Agreement” means the Credit Agreement, dated as of December 1, 2005 entered into by and among Radnor, various guarantors and Special Value Expansion Fund, LLC, Special Value Opportunities Fund, LLC and Tennenbaum Capital
Partners, LLC, as amended, modified or restated. 
 “Transition Services Agreement” means an agreement mutually agreeable to
the parties hereto and substantially in the form attached hereto as Exhibit 1.1B, which agreement shall provide for (i) the services of certain Retained Employees designated therein, at the Company’s cost, (ii) continued salary
and ordinary benefits at current levels for such Employees with severance in the amounts set forth therein, and (iii) an aggregate cost to the Purchaser not in excess of $1,000,000. 
 1.2 Terms Defined Elsewhere in this Agreement. For purposes of this Agreement, the following terms have meanings set forth in the sections
indicated: 
  

			
	Term	  	Section
		
	Advancement Amount	  	3.1(a)(v)
	Agreement	  	Preamble
	Allocation Statement	  	11.2
	Antitrust Division	  	8.4(a)
	Antitrust Laws	  	8.4(b)
	Assigned Permits	  	2.1(b)(xvi)
	Assumed Contracts	  	2.1(b)(xiii)
	Assumed Leases	  	2.1(b)(xii)
	Assumed Liabilities	  	2.3
	Assumed Liabilities Amount	  	3.1(a)(vi)
	Auction Date	  	7.2(a)
	Avoidance Action	  	2.2(h)
	Bankruptcy Case	  	Recitals
	Bankruptcy Code	  	Recitals
	Bankruptcy Court	  	Recitals
	Bid Deadline	  	7.2(a)
	Bidding Procedures Order	  	7.2(a)
	Break-Up Fee and Expense Reimbursement	  	7.4
	Business	  	Recitals
	Closing	  	4.1
	Closing Date	  	4.1
	Company	  	Preamble
	Competing Transaction	  	7.1

  

 8 

			
	 Credit Bid Amount
	  	3.1(a)(ii)
	 Cure Costs Deadline
	  	2.5(a)
	 D&O Policies
	  	2.2(d)
	 Effective Date
	  	Preamble
	 Environmental Liability
	  	2.4(k)
	 Excepted Commitments
	  	8.2(c)
	 Excluded Assets
	  	2.2
	 Excluded Liabilities
	  	2.4
	 Excluded Non-Debtor Subsidiaries
	  	2.2(k)
	 Existing L/Cs
	  	8.10
	 FTC
	  	8.4(a)
	 Funding Commitment
	  	4.4(h)
	 Initial Incremental Bid Amount
	  	7.2(b)
	 Inventory
	  	2.1(b)(ii)
	 ISRA
	  	8.4(c)
	 Leased Machinery and Equipment
	  	2.1(b)(i)
	 Leased Real Property
	  	5.13(b)
	 Liquidated Damages Amount
	  	4.6(b)
	 Machinery and Equipment
	  	2.1(b)(i)
	 Material Contracts
	  	5.11
	 Miscellaneous Secured Debt
	  	2.10
	 Miscellaneous Secured Facilities Amount
	  	3.1(a)(iii)
	 New Jersey Property
	  	8.4(c)
	 NJDEP
	  	8.4(c)
	 Non-Debtor Consents
	  	8.3
	 Owned Machinery and Equipment
	  	2.1(b)(i)
	 Owned Real Property
	  	2.1(b)(iv)
	 Payoff Deadline
	  	2.10
	 Periodic Taxes
	  	11.1
	 Prior Event
	  	12.11(a)
	 Purchased Assets
	  	2.1(b)
	 Purchased Intellectual Property
	  	2.1(b)(xiv)
	 Purchase Price
	  	3.1
	 Purchaser
	  	Preamble
	 Purchaser Group
	  	12.11(a)
	 Qualified Bid
	  	7.2(b(iii)
	 Qualified Bidder
	  	7.2(b)(ii)
	 Real Property
	  	5.13(b)
	 Released Claims
	  	12.11(a)
	 Retained Employee
	  	9.1(a)
	 Sale Hearing
	  	7.2(a)
	 Secured Asset
	  	2.10
	 Seller or Sellers
	  	Preamble
	 Seller Group
	  	12.11(a)
	 Supplies
	  	2.1(b)(iii)
	 Tennenbaum Lenders
	  	3.1(a)(ii)
	 Termination Date
	  	4.4(b)
	 Transactions
	  	Recitals
	 Transferred Employees
	  	9.1(a)
	 WARN Act
	  	2.7(c)
	 Wind Down Amount
	  	2.8(e)

  

 9 

 1.3 Other Definitional and Interpretive Matters. 
 (a) Unless otherwise expressly provided, for purposes of this Agreement, the following rules of interpretation shall apply: 
 Calculation of Time Period. When calculating the period of time before which, within which or following which any act is to be done or step taken
pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business Day. 
 Dollars. Any reference in this Agreement to $ means U.S. dollars. 
 Exhibits/Schedules. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any
Schedule or Exhibit but not otherwise defined therein shall be defined as set forth in this Agreement. 
 Gender and Number. Any
reference in this Agreement to gender shall include all genders, and words imparting the singular number only shall include the plural and vice versa. 
 Headings. The provision of a Table of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not
affect or be utilized in construing or interpreting this Agreement. All references in this Agreement to any “Section” are to the corresponding Section of this Agreement unless otherwise specified. 
 Herein. The words such as “herein,” “hereinafter,” “hereof” and “hereunder”
refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. 
 Including. The word “including” or any variation thereof means “including, without limitation” and shall not be construed to limit any general statement that it follows to the specific or similar
items or matters immediately following it. 
 (b) Construction. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provision of this Agreement. 
  

 10 

 ARTICLE II 
 PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES 
 2.1 Purchase and Sale of Assets. 

(a) On the terms and subject to the conditions set forth in this Agreement, at the Closing, Purchaser shall purchase, acquire and accept from Sellers,
and Sellers shall sell, transfer, convey and deliver to Purchaser all of Sellers’ right, title and interest in, to and under the Purchased Assets, free and clear of all Liens, Claims, Interests and Encumbrances other than those created by
Purchaser and other than Permitted Exceptions to the fullest extent permitted by Sections 363 and 365 of the Bankruptcy Code. 
 (b) For all
purposes of and under this Agreement, the term “Purchased Assets” means all of the properties, assets, and rights of Sellers (other than the Excluded Assets) existing as of the Closing, real or personal, tangible or intangible,
including but not limited to: 
 (i) All (x) equipment, computers, machinery, tooling, dies, furniture, fixtures and
improvements and other tangible personal property owned by Sellers (the “Owned Machinery and Equipment”), (y) equipment, computers, machinery, tooling, dies, furniture, fixtures and improvements and other tangible personal
property which are leased by Sellers pursuant to an Assumed Contract (the “Leased Machinery and Equipment,” and together with the Owned Machinery and Equipment, the “Machinery and Equipment”), and (z) rights of
Sellers to the warranties, express or implied, and licenses received from manufacturers, sellers and lessors of the Machinery and Equipment; 
 (ii) All inventories of raw materials, goods, work in process, and finished products (the “Inventory”); 
 (iii) All supplies, items, spare parts, replacement and component parts and office and other materials and tangible items used, held for use or necessary to operate and maintain the Machinery and Equipment or to
process raw materials and work in process into finished products (the “Supplies”); 
 (iv) All owned real
property, together with any and all buildings, fixtures, structures and improvements located thereon and all rights, privileges, easements, licenses, hereditaments and other appurtenances relating thereto (the “Owned Real
Property”); 
 (v) All cars, trucks, fork lifts, other industrial vehicles and other motor vehicles owned by Sellers
or leased by Sellers pursuant to an Assumed Contract; 
 (vi) All Software owned by Sellers (including, without limitation,
process control software) or leased by Sellers pursuant to an Assumed Contract; 
 (vii) All (x) of any Seller’s
ownership rights and equity interests in the Non-Debtor Subsidiaries and (y) to the extent in the possession of Sellers, organizational documents, record books, copies of Tax and financial records and such other files, books 
  

 11 

 and records of Sellers relating to the Non-Debtor Subsidiaries, except those ownership rights and equity
interests designated by the Purchaser as Excluded Assets pursuant to Section 2.2(k); 
 (viii) All goodwill
associated with the Business or the Purchased Assets; 
 (ix) Any interest in and to any refund of Taxes; 
 (x) All cash (including checks received prior to the close of business on the day prior to the Closing Date, whether or not deposited or
cleared prior to the close of business on the Closing Date), commercial paper, marketable securities, certificates of deposit and other bank deposits, treasury bills and other cash equivalents (other than cash amounts in any Blocked Account or cash
in the possession of the agent, any lender or participant under the DIP Credit Agreement that is credited to the loan accounts of Sellers maintained by the agent in accordance with the terms of the DIP Credit Agreement, but solely to the extent that
such cash has been set off against or has reduced the amount outstanding under the DIP Credit Agreement as of immediately prior to Closing); 
 (xi) all accounts receivable of the Sellers that relate to the Purchased Assets; 
 (xii) all
Leases of Sellers set forth on Schedule 2.1(b)(xiv) that are assumed and assigned to the Purchaser pursuant to the Sale Order (the “Assumed Leases”), together with all security deposits related thereto and all permanent
fixtures, improvements and appurtenances thereto and associated with such Assumed Leases; 
 (xiii) all Contracts of Sellers
set forth on Schedule 2.1(b)(xv) that are assumed and assigned to the Purchaser pursuant to the Sale Order (the “Assumed Contracts”), together with all security deposits related thereto and the right to receive income in
respect of such Assumed Contracts on or after the Closing Date, and any causes of action relating to past or present breaches of the Assumed Contracts; 
 (xiv) subject to Section 8.9, (x) all rights in and to Intellectual Property rights owned or licensed by Sellers to the broadest extent Sellers are permitted by law to transfer such Intellectual
Property (the “Purchased Intellectual Property”) and (y) to the extent such Intellectual Property may not be transferred to Purchaser, each Seller shall be deemed to have granted to Purchaser an exclusive, royalty free right
and license to use the Intellectual Property from and after the Closing Date, to the broadest extent permitted by law; 
 (xv)
all Documents that are used in, held for use in or intended to be used in, or that arise primarily out of, the Business and operations of the Sellers, including Tax Returns, financial statements, Documents relating to products of the Sellers,
services, marketing, advertising, promotional materials, Purchased Intellectual Property, personnel files for Transferred Employees and all files, customer files and documents (including credit information), supplier lists, records, literature and
correspondence, whether or not physically located on Owned Real Property or premises subject to a Assumed Lease, but excluding any Documents exclusively related to an Excluded Asset; provided, that, Purchaser shall provide Sellers with
reasonable access to such Documents; 
  

 12 

 (xvi) all Permits used by Sellers that relate to the Purchased Assets, to the extent
assignable (the “Assigned Permits”); 
 (xvii) all rights under all insurance policies and all rights of
every nature and description under or arising out of such policies, except as provided in Section 2.2(d) and (e); 
 (xviii) all prepaid expense and deposits, including security deposits, utility deposits, deposits with creditors and other deposits or prepaid items of any kind or nature whatsoever related to the Purchased Assets, net of any amounts
properly set off, recouped or otherwise retained by third party holders of such prepaid expenses and deposits; 
 (xix)
subject to Section 2.6, any asset that requires the consent of a third party to be transferred, assumed or assigned notwithstanding the provisions of Section 365 of the Bankruptcy Code, as to which such consent has not been obtained
as of the Closing Date, upon receipt of such consent on or after the Closing Date and entry of an appropriate Assumption Order as provided in Section 2.6; 
 (xx) any rights, claims or causes of action of Sellers against third parties arising out of events occurring prior to the Closing Date,
including, for the avoidance of doubt, arising out of events occurring prior to the Petition Date, and including any rights under or pursuant to any and all warranties, representations and guarantees made by suppliers, manufacturers and contractors
relating to products sold, or services provided, to Sellers, excluding only the rights, claims and causes of action that are identified as Excluded Assets in Section 2.2; and 
 (xxi) all other tangible or intangible assets not expressly identified as Excluded Assets. 
 2.2 Excluded Assets. Notwithstanding anything to the contrary contained herein, nothing herein shall be deemed to sell, transfer, assign or convey
the Excluded Assets to Purchaser, and Sellers shall retain all right, title and interest to, in and under, and all obligations with respect to, the Excluded Assets. For all purposes of and under this Agreement, the term “Excluded
Assets” means: 
 (a) all Excluded Leases; 
 (b) all Excluded Contracts; 
 (c) all receivables, claims or causes of action related exclusively to any
Excluded Executory Contract or any other Excluded Asset; 
 (d) all claims or cause of actions of the Sellers against any current or former
directors or officers and all of the rights of the Sellers and non-Seller third parties under the 
  

 13 

 Sellers’ insurance policies providing coverage for current and former directors and officers of the Sellers (the
“D&O Policies”) and to the proceeds thereof with respect to such claims or causes of action; 
 (e) all rights under
insurance policies relating to claims for losses related exclusively to any Excluded Asset; 
 (f) all Documents exclusively related to any
Excluded Asset; provided, that Sellers shall provide Purchaser reasonable access to such Documents; 
 (g) any amounts that a
Seller is entitled to in connection with all prepaid expenses, letters of credit, security deposits or Claims with respect to any Excluded Executory Contract; 
 (h) any avoidance causes of action of Sellers against non-Seller third parties other than the Purchaser Group (as defined herein), arising under Subchapters II and III of Chapter 5 of Title 11 of the Bankruptcy Code,
and causes of action under Section 550 and 551 of the Bankruptcy Code to recover any such avoided transfers (“Avoidance Actions”); provided that Sellers may not bring any Avoidance Action with respect to any
payment that would constitute a Cure Cost under an Assumed Contract; 
 (i) any shares of capital stock or other equity interest of any
Seller or any securities convertible into, exchangeable or exercisable for shares of capital stock or other equity interest of any Seller; 
 (j) any minute books, stock ledgers, corporate seals and stock certificates of Sellers, and other similar books and records that Sellers are required by Law to retain or that Sellers determine are reasonably necessary to retain including
corporate or other entity filings; provided, that Sellers shall provide Purchaser reasonable access to any Excluded Asset described in this subclause (j); 
 (k) subject to Section 2.9, all rights and ownership interests in any Non-Debtor Subsidiary identified by Purchaser on or before the Designation Deadline and listed on Schedule 2.2(k) hereto (the
“Excluded Non-Debtor Subsidiaries”); and 
 (l) any rights of Sellers under this Agreement. 
 2.3 Assumption of Liabilities. On the terms and subject to the conditions and limitations set forth in this Agreement, at the Closing, Purchaser
shall assume, effective as of the Closing, and shall timely perform and discharge in accordance with their respective terms, the following Liabilities (without duplication) existing as of the Closing Date (collectively, the “Assumed
Liabilities”) and no others: 
 (a) All accrued and unpaid Liabilities of the Sellers arising in the ordinary course of business
during the Bankruptcy Case through and including the Closing Date to the extent such Liabilities are allowed administrative expenses of the Sellers’ estates pursuant to Section 503(b) of the Bankruptcy Code, including but not limited to,
Liabilities of the Sellers, to the extent allowed, in respect of Taxes, environmental obligations, salary, wages commissions, and other employee payroll obligations and expenses incurred in the operation of the Business (except for Liabilities of
the type otherwise assumed in this Section 2.3 or set forth in Section 2.8); 
  

 14 

 (b) all Liabilities of Sellers under the Assumed Executory Contracts arising after the Closing Date;

 (c) all Cure Costs related to the Assumed Executory Contracts; 
 (d) the Liabilities of Sellers under any court-approved management incentive plan, but only to the extent set forth on Schedule 2.3(d) hereto;

 (e) all Liabilities of Sellers as of the Closing Date for any accrued and unpaid claims that are allowed administrative expenses pursuant
to Sections 503(b)(9) or 546(c) of the Bankruptcy Code in an aggregate amount not to exceed the Allowed Administrative Amount, which amount shall be in addition to the Liabilities assumed pursuant to Sections 2.3(a), (b) and
(c) above; 
 (f) all of Purchaser’s Liabilities under the Transition Services Agreement; 
 (g) all Liabilities under any product-related warranties or product-related guarantees of the Sellers with respect to the Purchased Assets, but not
including Claims of any entity against Sellers or Sellers’ estates that existed or arose prior to the Petition Date; 
 (h) all
Liabilities of Sellers with respect to statutory liens for current Taxes, assessments or other governmental charges not yet delinquent or the amount or validity of which is being contested in good faith by appropriate proceedings provided an
appropriate reserve is established therefore, but only to the extent such Liabilities constitute allowed administrative claims under Section 503(b) of the Bankruptcy Code; 
 (i) all Liabilities of Sellers for mechanics’, carriers’, workers’, repairers’ and similar Liens arising or incurred in the ordinary
course of the Sellers’ business, but only to the extent such Liabilities constitute (i) allowed administrative claims under Section 503(b) of the Bankruptcy Code or (ii) are secured claims that are senior in priority and right of
payment to the claims of the agents and lenders arising under the Revolving Credit Facility and the Tennenbaum Credit Agreement; 
 (j) all
transfer Taxes and all documentary or deed stamps and all charges for or in connection with the recording of any document or instrument contemplated hereby, in connection with the transfer of the Purchased Assets; and 
 (k) all Taxes that are allowed as administrative expenses in the Bankruptcy Case, including but not limited to Taxes payable under
Section 503(b)(1)(B) and (C) of the Bankruptcy Code. 
 2.4 Excluded Liabilities. Purchaser shall not assume and shall be
deemed not to have assumed, and Sellers shall be solely and exclusively liable with respect to, (i) the Excluded Environmental Liabilities, but only to the extent of applicable law, or (ii) any other Liabilities of Sellers of whatever
nature, whether presently in existence or arising hereafter, known or unknown, disputed or undisputed, contingent or non-contingent, liquidated or unliquidated or otherwise, other than the Assumed Liabilities (collectively, the “Excluded
Liabilities”). 
  

 15 

 2.5 Executory Contract Designation. 
 (a) Prior to the Designation Deadline, the Purchaser shall designate each Executory Contract that the Purchaser elects to be assumed and assigned to it as
of the Closing Date. Purchaser shall pay, satisfy or otherwise discharge its obligations with respect to the Cure Costs related to such Executory Contracts no later than 45 days after the Closing Date (the “Cure Costs Deadline”).

 (b) Subsequent to the Designation Deadline and on or prior to the Cure Costs Deadline, Purchaser may designate any Executory Contract that
the Sellers have not rejected pursuant to Section 365 of the Bankruptcy Code as an Assumed Contract or Assumed Lease without being required to pay the Sellers any additional Purchase Price, and Sellers shall use their reasonable efforts to seek
an Assumption Order with respect any such Executory Contract so designated; provided, however, that Purchaser shall be obligated to pay any Cure Costs with respect to any such Assumed Executory Contract; and provided,
further, however, that Purchaser advances or reimburses Sellers for any and all costs (including the professional fees associated with) related to or incurred in connection with the Sellers seeking entry of the Assumption Order with
respect to such Executory Contract. Purchaser shall pay, satisfy or otherwise discharge its obligations with respect to Cure Costs related to the assumption and assignment of such Executory Contracts no later than forty-five (45) days after
entry of the Assumption Order with respect to any Executory Contract assumed or assigned to Purchaser pursuant to this Section 2.5(b). 
 (c) From the Effective Date through and including the Cure Costs Deadline, Sellers shall not reject any Executory Contract unless otherwise agreed to in writing by Purchaser. 
 (d) From the Closing Date through and including the Cure Costs Deadline, Purchaser shall advance or reimburse all of Sellers’ costs and expenses
accruing after the Closing Date under any Executory Contract that Purchaser has not (i) agreed that Sellers may reject pursuant to Section 2.5(c) or (ii) provided Sellers with written notice that such Executory Contract will
not be assumed and assigned pursuant to Section 2.5(a) or (b) above. 
 2.6 Assignment of Contracts and Rights. To
the maximum extent permitted by the Bankruptcy Code, the Purchased Assets and the Sellers’ rights to the Intellectual Property shall be assumed and assigned to Purchaser pursuant to Section 365 of the Bankruptcy Code as of the Closing Date
or such other date as specified in an Order or this Agreement, as applicable. Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall not constitute an agreement to assign any asset or any right thereunder if an
attempted assignment without the consent of a third party would constitute a breach or in any way adversely affect the rights of the Purchaser or Seller thereunder. If such consent is not obtained or such assignment is not attainable pursuant to
Sections 105, 363 or 365 of the Bankruptcy Code other than as a result of the failure to pay Cure Costs which are not Assumed Liabilities, then such Purchased Assets shall not be transferred hereunder and the Closing shall proceed with respect to
the Remaining Purchased Assets without any reduction in Purchase Price. 
  

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 2.7 Further Conveyances and Assumptions. 
 (a) From time to time following the Closing, Sellers shall, or shall cause their Affiliates to, transfer to the Purchaser any Purchased Assets received by
or in the possession of the Sellers. 
 (b) From time to time following the Closing, Sellers and Purchaser shall, and shall cause their
respective Affiliates to, execute, acknowledge and deliver all such further conveyances, notices, assumptions, releases and other instruments, and shall take such further actions, as may be reasonably necessary or appropriate to assure fully to
Purchaser and its respective successors or assigns, all of the properties, rights, titles, interests, estates, remedies, powers and privileges intended to be conveyed to Purchaser under this Agreement and to assure fully to each Seller and its
Affiliates and their successors and assigns, the assumption of the liabilities and obligations intended to be assumed by Purchaser under this Agreement, and to otherwise make effective the Transactions. 
 (c) Within ten (10) Business Days following the Purchaser’s identification of all of the Transferred Employees, Sellers shall provide a list of
the name and site of employment of any and all employees of Sellers who have experienced, or will experience, an employment loss or mass layoff (as defined by the Worker Adjustment and Retraining Notification Act of 1988 or any similar applicable
state or local law requiring notice to employees in the event of a closing or layoff (the “WARN Act”)) as a result of the Transactions contemplated by this Agreement. 
 (d) Sellers and Purchaser shall cooperate to comply with and take all actions necessary to minimize the obligations arising under the WARN Act. Sellers
shall send notices under the WARN Act as Sellers may deem advisable or as Purchaser may reasonably request. 
 2.8 Advancement for Certain
Amounts. Purchaser shall either advance or reimburse Sellers, or, in the case of clause (d) below, pay directly on behalf of Sellers, on the Closing Date or, if the Closing occurs, such later date as the same may become due and payable, the
following amounts: 
 (a) any Bankruptcy Court-approved accrued and unpaid professional fees and expenses incurred by the Sellers in
connection with the administration of the Bankruptcy Case (other than those described in clauses (b) and (d) below) as of the Closing Date, but not including any fees and expenses of any professional in pursuing or supporting Claims,
objections, avoidance actions or any other litigation against any member of the Purchaser Group; 
 (b) any Bankruptcy Court-approved
transaction, restructuring or similar success fees incurred by Sellers as of the Closing Date and payable to Lehman Brothers, Inc. (or any subsequent financial advisor) representing the Sellers in connection with consummation of the Transactions
contemplated by this Agreement, in an aggregate amount not to exceed Three Million Dollars ($3,000,000), minus the aggregate amount of any monthly or other fees paid or payable to Lehman Brothers, Inc. (or any subsequent financial advisor) under
Section 2.8(a) hereof; 
  

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 (c) any accrued and unpaid fees and expenses of any officers provided to the Sellers by
Alvarez & Marsal incurred by the Sellers as of the Closing Date; 
 (d) any accrued and unpaid professional fees payable by the
Sellers to the professionals retained by a Tennenbaum Lender in connection with the DIP Credit Agreement or the Tennenbaum Credit Agreement; and 
 (e) the costs and expenses of the Sellers (including Bankruptcy Court-approved professional fees and expenses) incurred in connection with the Sellers winding down of their affairs, the filing and prosecution of a liquidating plan of
reorganization and the closing of the Sellers’ Bankruptcy Case, in an amount not to exceed $750,000 (the “Wind Down Amount”), payable pursuant to Section 3.1(b). 
 Notwithstanding the foregoing, the aggregate amount advanced or reimbursed by Purchaser for the fees and expenses set forth in clauses (a) and
(c) above shall not exceed $4,000,000 in the aggregate (the “Expense Cap”); provided, however, that such Expense Cap shall be reduced dollar for dollar by the amount of any fees and expenses described in clauses
(a) and (c) above that are paid from proceeds of the DIP Credit Agreement. 
 2.9 Non-Debtor Subsidiaries. 
 (a) Prior to the Designation Deadline, the Purchaser shall designate each Non-Debtor Subsidiary the ownership rights and equity interests of which the
Purchaser elects to be included in the Purchased Assets as of the Closing Date. 
 (b) Subsequent to the Designation Deadline and on or prior
to ten (10) Business Days prior to the Cure Costs Deadline, Purchaser may designate any Excluded Non-Debtor Subsidiary as a Purchased Asset without being required to pay the Sellers any additional Purchase Price, and Sellers shall use their
reasonable efforts to seek an Order approving the sale, assignment, transfer or conveyance any such Excluded Non-Debtor Subsidiary to Purchaser; provided, however, that Purchaser advances or reimburses Sellers for any and all costs
(including the professional fees associated with) related to or incurred in connection with the Sellers seeking entry of the Order with respect to such Excluded Non-Debtor Subsidiary. 
 (c) From the Effective Date through and including the tenth Business Day prior to the Cure Costs Deadline, Sellers shall not reject or otherwise
liquidate, sell, assign, transfer or convey any Non-Debtor Subsidiary unless otherwise agreed to in writing by Purchaser. 
 (d) From the
Closing Date through and including the Cure Costs Deadline, Purchaser shall advance or reimburse all of Sellers’ costs and expenses accruing after the Closing Date and on or prior to the tenth Business Day following any designation pursuant to
Section 2.9(b) with respect to such designated Excluded Non-Debtor Subsidiary, net of any cash or other benefit received by any of the Sellers with respect to such designated Excluded Non-Debtor Subsidiary. 
  

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 2.10 Miscellaneous Secured Facilities. 
 (a) Notwithstanding Sections 2.1, 3.1(a)(iii) and 3.1(b)(i) hereof, prior to the Designation Deadline, the Purchaser may elect to
designate any Purchased Asset subject to a lien pursuant to any of the miscellaneous secured financing arrangements set forth on Schedule 3.1(a)(iii) (the “Miscellaneous Secured Debt”) as an Excluded Asset on the Closing Date
(any such designated asset, a “Secured Asset”). In such an event, Schedule 3.1(a)(iii) hereto shall thereafter be deemed not to include the aggregate outstanding amount of any Miscellaneous Secured Debt securing such Secured
Asset. 
 (b) At any time on or prior to thirty (30) days after the Closing Date (the “Payoff Deadline”), Purchaser may
designate any Secured Asset previously designated as an Excluded Asset pursuant to Section 2.10(a) above as a Purchased Asset. In such an event, Purchaser shall pay, satisfy or otherwise discharge all outstanding obligations with respect
to the Miscellaneous Secured Debt secured by any such Secured Asset no later than the Payoff Deadline. 
 (c) From the Effective Date through
and including the Payoff Deadline, Sellers shall not sell, assign, transfer or convey any Secured Asset unless otherwise agreed to in writing by Purchaser. 
 (d) From the Closing Date and on or prior to the date of any designation pursuant to Section 2.10(b) with respect to such designated Secured Asset, Purchaser shall advance or reimburse all of Sellers’
costs and expenses accruing after the Closing Date with respect to such designated Secured Asset, including under any Miscellaneous Secured Debt related thereto. 
 ARTICLE III 
 CONSIDERATION 
 3.1 Consideration. 
 (a) Subject to Section 3.2, the aggregate consideration for the Purchased
Assets (the “Purchase Price”) shall be equal to the following, as calculated on the Closing Date: 
 (i)
obligations of any kind outstanding under the Revolving Credit Facility and the DIP Credit Agreement in an aggregate amount up to the sum of (a) all outstanding obligations of any kind under the Revolving Credit Agreement as of the Petition
Date plus (b) all outstanding obligations under the DIP Credit Agreement but not in excess of the Bank Loan Amount; plus 
 (ii) $95,000,000, plus the amount of any accrued and unpaid interest payable to the lenders under Tranches A and B of the Tennenbaum Credit Agreement (the “Tennenbaum Lenders”) through the Auction Date (the “Credit
Bid Amount”); plus 
 (iii) the aggregate outstanding amount under any mortgage or secured financing arrangements
listed on Schedule 3.1(a)(iii) hereto (as such schedule shall be 
  

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 deemed modified in accordance with Section 2.10(a)), in an aggregate principal amount not to
exceed $19,211,237, plus the amount of any accrued and unpaid interest, late fees, penalties and other charges, in each case to the extent constituting allowed secured claims under Section 506(b) of the Bankruptcy Code (the
“Miscellaneous Secured Facilities Amount”); plus 
 (iv) the Wind Down Amount; plus 
 (v) the aggregate amount either advanced or reimbursed pursuant to Sections 2.8(a), (b), (c) and (d) (the
“Advancement Amount”); plus 
 (vi) the aggregate amount of any Liabilities assumed pursuant to
Section 2.3 (the “Assumed Liabilities Amount”). 
 (b) At Closing, the Purchase Price shall be payable, in
Purchaser’s sole discretion and subject to Section 3.2, as follows: 
 (i) with respect to the Bank Loan
Amount and Miscellaneous Secured Facilities Amount, by paying cash or, with the consent of the lenders under the applicable agreements, by assuming the Sellers’ obligations thereunder; 
 (ii) with respect to the Credit Bid Amount, by (x) paying cash, (y) delivering fully executed releases and waivers by the
Tennenbaum Lenders of the aggregate amount of the Credit Bid Amount, or (z) assuming the Sellers’ obligations with respect to the Credit Bid Amount on terms reasonably acceptable to the Tennenbaum Lenders; and 
 (iii) with respect to the Wind Down Amount, by paying cash. 
 3.2 Purchase Price Adjustment. 
 (a) On the Closing Date, the Purchase Price shall be reduced dollar
for dollar by an aggregate amount equal to the amount of any (i) payment(s) made by any Seller in breach of Section 8.2(c) hereof or (ii) other than Excepted Commitments, commitments made or Liabilities incurred by any Seller
to make any payment in excess of the amounts set forth on Schedule 8.2(c), as such amounts may be reduced in accordance with the definition of Bank Loan Amount and Schedule 1.1A, to the extent such commitments or Liabilities constitute
Assumed Liability under Section 2.3. 
 (b) On or after the Closing Date, in reimbursement of amounts advanced or otherwise paid
by Purchaser to Sellers in respect of the Wind Down Amount and the assumed allowed administrative expenses under Section 2.3(e) hereof, the Sellers’ estates shall promptly pay to Purchaser 100% of all recoveries from the prosecution,
settlement or adjudication of any claim of Sellers’ estates or their assignees, including avoidance claims, plus the net proceeds from the transfer, liquidation or other disposition of the Excluded Assets, until the Wind Down Amount is repaid
and reimbursed to Purchaser in full, and thereafter until 50% of the amount of Assumed Liabilities under Section 2.3(e) has been repaid and reimbursed to Purchaser. 
  

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 ARTICLE IV 
 CLOSING AND TERMINATION 
 4.1 Closing Date. Subject to the satisfaction of the conditions set forth in
Sections 10.1, 10.2 and 10.3 hereof (or the waiver thereof by the party entitled to waive that condition), the closing of the purchase and sale of the Purchased Assets and the assumption of the Assumed Liabilities provided for
in Article II hereof (the “Closing”) shall take place at the offices of Milbank, Tweed, Hadley & McCloy LLP, 1 Chase Manhattan Plaza, New York, NY 10005 (or at such other place as the parties may designate in writing) at
10:00 a.m. (New York City time) on the date the conditions set forth in Article X are satisfied or waived (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions),
unless another time or date, or both, are agreed to in writing by the parties hereto. The date on which the Closing shall be held is referred to in this Agreement as the “Closing Date.” 
 4.2 Deliveries by Sellers. At the Closing, Sellers shall deliver to Purchaser: 
 (a) one or more duly executed bills of sale in a form to be agreed upon the parties hereto; 
 (b) one or more duly executed assignment and assumption agreements in a form to be agreed upon by the parties hereto and duly executed assignments of the
U.S. trademark registrations and applications included in the Purchased Intellectual Property, in a form suitable for recording in the U.S. trademark office, and general assignments of all other Purchased Intellectual Property; 
 (c) the officer’s certificate required to be delivered pursuant to Sections 10.1(a) and 10.1(b); 
 (d) affidavits executed by each Seller that such Seller is not a foreign person within the meaning of Section 1445(f)(3) of the Code; 
 (e) a certified copy of the Sale Order; 
 (f) a legal opinion of Skadden, Arps, Slate, Meagher & Flom LLP in the form of Exhibit 4.2(f) attached hereto; 
 (g) all other documents, instruments or writings of conveyance and transfer, in form and substance reasonably acceptable to Purchaser, as may be necessary or desirable to convey the Purchased Assets to Purchaser, such documents to be
identified and provided by Purchaser to Sellers in a form acceptable to the Purchaser on or before the Designation Deadline; 
 (h) one or
more duly executed assignment and assumption agreements in a form to be agreed upon by the parties hereto with respect to each of the Assumed Leases; and 
  

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 (i) such other documents, instruments and certificates as the Purchaser may reasonably request, such
documents to be identified and provided to Purchaser by Sellers in a form acceptable to the Purchaser on or before the Designation Deadline. 
 4.3 Deliveries by Purchaser. At the Closing, Purchaser shall deliver: 
 (a) Cash in the amount of the Purchase Price minus
any portion of the Purchase Price that the Purchaser has elected to pay, pursuant to Section 3.1(b) of this Agreement by (i) assuming the Sellers’ Liabilities under the applicable agreements and (ii) delivering fully executed
releases and waivers with respect to the Credit Bid Amount; 
 (b) A writing in a form reasonably acceptable to Sellers evidencing a release
and waiver of the Credit Bid Amount, if applicable; 
 (c) one or more duly executed assignment and assumption agreements in a form to be
agreed upon the parties hereto; 
 (d) the officer’s certificate required to be delivered pursuant to Sections 10.2(a) and
10.2(b); 
 (e) a duly executed assignment and assumption agreement in a form to be agreed upon by the parties hereto with respect to
each of the Assumed Leases; and 
 (f) such other documents, instruments and certificates as the Sellers may reasonably request, such
documents to be identified and provided by Sellers to Purchaser in a form acceptable to the Sellers on or before the Designation Deadline. 
 4.4 Termination of Agreement. This Agreement may be terminated prior to the Closing as follows: 
 (a) by Purchaser,
(i) if the Bankruptcy Case is not filed by Sellers by the close of business on the day that is three (3) days after the Effective Date, or (ii) if the schedules and exhibits to be annexed hereto pursuant to Section 8.14
are not finally completed by the date set forth in Section 8.14; 
 (b) by Purchaser or Sellers, (i) if the Closing shall
not have occurred by the close of business on the day that is ninety (90) days after the Petition Date (the “Termination Date”); provided, however, that if the Closing shall not have occurred on or before the
Termination Date due to a material breach of any representations, warranties, covenants or agreements contained in this Agreement by Purchaser on the one hand or Sellers on the other hand, then the breaching party may not terminate this Agreement
pursuant to this Section 4.4(b); 
 (c) by mutual written consent of Sellers and Purchaser; 
 (d) by Purchaser, if any condition to the obligations of Purchaser set forth in Section 10.1 or 10.3 shall have become incapable of
fulfillment other than as a result of a breach by Purchaser of any covenant or agreement contained in this Agreement, and such condition is not waived by Purchaser; 
  

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 (e) by Sellers, if any condition to the obligations of Sellers set forth in Section 10.2 or
10.3 shall have become incapable of fulfillment other than as a result of a breach by Sellers of any covenant or agreement contained in this Agreement, and such condition is not waived by Sellers; 
 (f) by Purchaser, if there shall be a breach by Sellers of any representation or warranty, or any covenant or agreement contained in this Agreement which
would result in a failure of a condition set forth in Section 10.1 or 10.3 and which breach has not been cured by the earlier of (i) 10 Business Days after the giving of written notice by Purchaser to Sellers of such breach
and (ii) the Termination Date; 
 (g) by Sellers, if there shall be a breach by Purchaser of (x) any representation or warranty, or
(y) any covenant or agreement contained in this Agreement which would result in a failure of a condition set forth in Sections 10.2 or 10.3 and which breach has not been cured by the earlier of (i) 10 Business Days after the
giving of written notice by Sellers to Purchaser of such breach and (ii) the Termination Date; 
 (h) by Sellers, if (i) the
Purchaser has neither waived nor satisfied the conditions set forth in Section 10.1(c), (d) and (f) on or before the Designation Deadline, (ii) the Purchaser has not delivered to the Sellers, by the Designation Deadline,
an executed copy of a commitment to fund that portion of the Purchase Price to be paid in cash, in form and substance for a transaction of this type (the “Funding Commitment”), which Funding Commitment may not be amended in any
material respect without the Sellers’ prior written consent or (iii) the Tennenbaum Lenders have not contributed or otherwise assigned to Purchaser their rights with respect to Tranches A and B under the Tennenbaum Credit Agreement.

 (i) by Sellers or Purchaser if there shall be in effect a final non-appealable Order of a Governmental Body of competent jurisdiction
restraining, enjoining or otherwise prohibiting the consummation of the Transactions, it being agreed that the parties hereto shall promptly appeal any adverse determination which is not non-appealable (and pursue such appeal with reasonable
diligence); 
 (j) by Purchaser, if the Auction Date is not on or before a date that is sixty (60) days following the Petition Date;

 (k) by Purchaser, if (i) the Sale Order with respect to the Transactions or (ii) a sale order with respect to a Competing
Transaction has not been entered within five (5) Business Days of the Auction Date; 
 (l) by Purchaser, if the Sale Order with respect
to the Transactions has been entered and (i) Purchaser has provided Sellers with written notice that it is prepared to consummate the Transactions and (ii) the Closing Date does not occur within two (2) Business Days of Purchaser
providing the Sellers with such notice; and 
 (m) automatically, upon the earlier to occur of (i) the consummation of a Competing
Transaction and (ii) no transaction being consummated twenty-five (25) days after the entry of a sale order with respect to a Competing Transaction. 
  

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 4.5 Procedure Upon Termination. In the event of termination pursuant to Section 4.4
hereof, written notice thereof shall forthwith be given to the other party or parties, and this Agreement shall terminate, and the purchase of the Purchased Assets hereunder shall be abandoned, without further action by Purchaser or Sellers. If this
Agreement is terminated as provided herein, each party shall redeliver all confidential documents, work papers and other material of any other party relating to the Transactions, whether so obtained before or after the execution hereof, to the party
furnishing the same. 
 4.6 Effect of Termination. 
 (a) In the event that this Agreement is validly terminated as provided herein, then each of the parties shall be relieved of its duties and obligations arising under this Agreement after the date of such termination
and such termination shall be without liability to Purchaser or Sellers; provided, however, that the provisions of Article XII hereof shall survive any such termination and shall be enforceable hereunder, except Section 12.11
thereof if the Closing shall not have occurred; provided further, however, that nothing in this Section 4.6 shall be deemed to release any party from liability for any breach of its obligations under this Agreement.

 (b) In the event that Sellers terminate this Agreement pursuant to Section 4.4(g)(y) and the Closing of the Transactions does
not occur, Sellers shall have a right of partial set off against the Claims of Purchaser under the Tennenbaum Credit Agreement in an aggregate principal amount equal to ten (10%) of the Purchase Price, as adjusted pursuant to
Section 3.2, as liquidated damages (the “Liquidated Damages Amount”). The parties hereto expressly agree and acknowledge that Sellers’ actual damages in the event of such a breach by Purchaser would be extremely
difficult or impracticable to ascertain and that the Liquidated Damages Amount represents the parties’ reasonable estimate of such damages. Notwithstanding any other provision of this Agreement, Sellers shall have no other remedy for any breach
by Purchaser under this Agreement. If Sellers shall be entitled to receive and do receive the right to set off the Liquidated Damages Amount in accordance herewith, then Sellers agree that such Liquidated Damages Amount shall be (i) full
liquidated damages for any and all failures to act, defaults or breaches hereunder by Purchaser and (ii) shall constitute a full release and discharge of all claims for damages for such failures to act, defaults or breaches and Sellers shall
not have any further cause of action for damages, specific performance or any other legal or equitable relief against Purchaser or its Affiliates with respect thereto. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
 Each Seller hereby jointly and severally represents and warrants to Purchaser that: 
 5.1 Organization and Good Standing. Each Seller is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and in each jurisdiction where it is qualified to do business, subject to the limitations imposed on such Seller as a result of having filed a petition for relief under the Bankruptcy Code, has the requisite power
and authority to own, lease and operate its properties and to carry on its business as now conducted. Schedule 5.1 sets forth each Seller, the jurisdiction of its organization and each jurisdiction in which it is qualified to do business.

  

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 5.2 Authorization of Agreement. Subject to entry of the Sale Order and such other authorization as
is required by the Bankruptcy Court: (a) each Seller has the requisite power and authority to execute and deliver this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which it is a party and to
perform its respective obligations hereunder and thereunder; (b) the execution and delivery of this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which it is a party and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of each Seller; and (c) this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which
it is a party has been duly and validly executed and delivered by each Seller and (assuming the due authorization, execution and delivery by the other parties hereto) this Agreement and each other agreement, document or instrument contemplated
hereby or thereby to which it is a party constitutes legal, valid and binding obligations of each Seller enforceable against such Seller in accordance with its respective terms, subject to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 
 5.3 Conflicts; Consents of Third Parties. 
 (a) The execution and delivery by each Seller of this Agreement and each other
agreement, document or instrument contemplated hereby or thereby to which it is a party, the consummation of the Transactions contemplated hereby and thereby, or compliance by such Seller with any of the provisions hereof do not conflict with, or
result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination or cancellation under any provision of (i) the certificate of incorporation and by-laws or comparable
organizational documents of such Seller; (ii) subject to entry of the Sale Order, any Contract, Lease or Permit to which such Seller is a party or by which any of the properties or assets of such Seller are bound; (iii) subject to entry of
the Sale Order, any Order of any Governmental Body applicable to such Seller or any of the properties or assets of such Seller as of the date hereof; or (iv) subject to entry of the Sale Order, any applicable Law, other than, in the case of
clauses (i), (ii), (iii) and (iv), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Change. 
 (b) If the Sale Order is entered, no consent, waiver, approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any
Person or Governmental Body is required on the part of Sellers in connection with the execution and delivery of this Agreement or any other agreement, document or instrument contemplated hereby or thereby to which it is a party, the compliance by
Sellers with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, the assignment or conveyance of the Purchased Assets, or the taking by Sellers of any other action contemplated hereby or
thereby, except for (i) the Non-Debtor Consents; (ii) compliance with the applicable requirements of the HSR Act, (iii) the entry of the Sale Order, (iv) such other consents, waivers, approvals, Orders, Permits, authorizations,
declarations, filings and notifications, the failure of 
  

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 which to obtain or make would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Change and (v) those Permits listed on Schedule 5.3(b) hereof. 
 5.4 Title to Purchased Assets. Sellers either own or
have the right to transfer the Purchased Assets, and, subject to the entry of the Sale Order, Purchaser will be vested with good title to such Purchased Assets, free and clear of all Liens, Claims, Interests and Encumbrances, other than Permitted
Exceptions, to the fullest extent permissible under Section 363(f) of the Bankruptcy Code. 
 5.5 Taxes. 
 (a) Sellers have timely filed all Tax Returns required to be filed with the appropriate Tax Authorities in all jurisdictions in which such Tax Returns are
required to be filed (taking into account any extension of time to file granted or to be obtained on behalf of Sellers), and all such Tax Returns are correct and complete in all material respects and no adjustment relating to such Tax Returns has
been proposed in writing by any taxing authority. Sellers have not received any written notice or written inquiry from any jurisdiction where the Sellers do not currently file Tax Returns to the effect that such filings may be required with respect
to the Purchased Assets or the Business, or that the Business may otherwise be subject to taxation by such jurisdiction. No power of attorney currently in force has been granted by the Sellers with respect to the Business that would be binding on
Purchaser with respect to taxable periods commencing on or after the Closing Date. Except as to Taxes of Sellers the payment of which is or will be prohibited or stayed by the Bankruptcy Code, each Seller has paid all Taxes due and payable by it
(whether or not such Taxes are shown on any Tax Return). Other than those set forth on Schedule 5.5(a), there are no Tax Liens on any of the Purchased Assets other than Permitted Exceptions. 
 (b) None of the Sellers is a foreign person within the meaning of Section 1445(f)(3) of the Code. 
 5.6 Intellectual Property. Except as set forth on Schedule 5.6, Sellers own or have valid licenses to use all material Purchased
Intellectual Property. Except as set forth on Schedule 5.6, no claims are pending against Sellers before a Governmental Body or, to the Knowledge of Sellers, threatened with regard to the ownership by Sellers of any Purchased Intellectual
Property. 
 5.7 Permits. Schedule 5.7 sets forth a true, complete and correct list of all material Permits, including all
material Permits required under Environmental Laws, necessary for the ownership or operation of the Business and the Real Property and held by Sellers as of the Effective Date. Except as set forth on Schedule 5.7 and as may have resulted from
the commencement of the Bankruptcy Case, all Permits (a) are valid and in full force and effect and, to the Knowledge of the Sellers, none of the Sellers are in default under or in violation of any such Permit, except for such defaults or
violations which would not reasonably be expected, individually or in the aggregate, to cause a Material Adverse Change and no suspension or cancellation of any such Permits is pending (other than pursuant to its terms) or threatened and
(b) except as set forth on Schedule 5.7 and subject to entry of the Sale Order and the provisions of Section 2.6 hereof, may be transferred or reissued to Purchaser in accordance with this Agreement and without the approval
of any third party (other than the Bankruptcy Court). 
  

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 5.8 Environmental Matters. 
 (a) Except as set forth on Schedule 5.8 and except as would not reasonably be expected to have a Material Adverse Change, Sellers are in compliance
with all applicable Environmental Laws. No Seller has received written, or to the Knowledge of the Sellers, oral, notice of any pending or, to the Knowledge of the Sellers, threatened claim or investigation by any Governmental Authority or any other
Person concerning material potential liability of any Seller under Environmental Laws in connection with the ownership or operation of the Business, the Real Property or any real property currently owned, leased or occupied by a Seller. There has
not been a Release of any Hazardous Substance at, upon, in, from or under (i) any of the Real Property or any property currently owned or leased by a Seller or (ii) at any location to or from which a Seller has transported or arranged for
the transportation or disposal of Hazardous Substances, in each case, in quantities or under circumstances that would give rise to any liability or require remediation, investigation or clean up pursuant to any Environmental Law. 
 (b) Sellers have provided or made available to Purchaser written non-privileged reports in the possession or control of Sellers relating to the presence
or migration of Hazardous Substances on, in or under the Real Property and any property currently owned or leased by a Seller and the compliance of the Business with applicable Environmental Laws. 
 (c) Except as set forth on Schedule 5.8(c), no material capital or other expenditures are required to reach or maintain compliance with current
Environmental Laws with respect to the operations of the Business or the Purchased Assets including without limitation, any such expenditures arising as the result of emissions from cup storage being classified as non-fugitive emissions by any
Governmental Body. 
 5.9 Employee Benefits. 
 (a) Schedule 5.9(a) sets forth a complete and correct list of all Employee Benefit Plans. 
 (b) No
Employee Benefit Plans are subject to Title IV or Section 302 of ERISA. 
 (c) Each Employee Benefit Plan has been operated and
administered in all material respects in accordance with its terms and applicable law, including but not limited to ERISA and the Code. 
 (d) Each Employee Benefit Plan intended to be “qualified” within the meaning of Section 401(a) of the Code is so qualified and the trusts maintained thereunder are exempt from taxation under Section 501(a) of the Code.

 (e) There are no pending, or to the Knowledge of Sellers, threatened claims by or on behalf of any Employee Benefit Plan, by any employee
or beneficiary covered under any such Plan, or otherwise involving any such Employee Benefit Plan (other than routine claims for benefits). 
  

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 (f) No amounts payable under the Employee Benefit Plans will fail to be deductible for federal income tax
purposes by virtue of Section 280G of the Code. 
 (g) There are no material outstanding Liabilities of, or related to, any Employee
Benefit Plan, other than Liabilities for benefits to be paid in the ordinary course to participants in such Employee Benefit Plan and their beneficiaries in accordance with the terms of such Employee Benefit Plan. 
 5.10 Litigation. Except as set forth on Schedule 5.10, there are no Legal Proceedings pending or, to the Knowledge of Sellers, threatened
against any Seller before any Governmental Body, which, if adversely determined, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Change on the Business of the Sellers, the Business or the Purchased Assets.

 5.11 Material Contracts. 
 (a) Schedule 5.11(a) contains for each Seller and Non-Debtor Subsidiary a correct and complete list, as of the date hereof, of all Contracts (the “Material Contracts”) pursuant to which any Seller or Non-Debtor
Subsidiary has any rights or benefits or undertakes any obligations or liabilities that: 
 (i) has a duration of one year or
more and is not terminable without penalty upon 90 days or less prior written notice by any party; 
 (ii) requires or could
reasonably be expected to require any party thereto to pay $200,000 or more in the aggregate; 
 (iii) requires any severance,
retention, or other termination payments to its Employees on or after the Closing Date; 
 (iv) contains any non-competition
covenant or exclusivity arrangement; 
 (v) involves any contract (i) granting or obtaining any right to use any
Intellectual Property (other than contracts granting rights to use readily available commercial Software having an annual license and/or maintenance fee of less than $25,000 in the aggregate for all such related contracts) or (ii) restricting
the Sellers’ or and Non-Debtor Subsidiaries’ rights to any Purchased Intellectual Property. 
 (vi) regards the
employment, services, consulting, termination or severance from employment relating to or for the benefit of any director, officer, employee, sales agent, distributor, dealer, independent contractor or consultant; 
 (vii) constitutes joint venture, partnership and similar contracts involving a sharing of profits or expenses (including but not limited
to joint research and development and joint marketing contracts); or 
  

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 (viii) constitutes master lease agreements providing for the leasing of material personal
property. 
 (b) Except as set forth in Schedule 5.11(b) with respect to Material Contracts (other than Leases): (i) all of the
Material Contracts are in full force and effect, (ii) except for breaches and defaults of the type referred to in Section 365(b)(2) of the Bankruptcy Code, none of the Sellers or Non-Debtor Subsidiaries, as the case may be, and to the
Knowledge of the Sellers and Non-Debtor Subsidiaries, none of the other parties to the Material Contracts, are in material default under, and no event has occurred which, with the passage of time or giving of notice or both, would result in the
Sellers or Non-Debtor Subsidiaries, as the case may be, or to the Knowledge of the Sellers and Non-Debtor Subsidiaries, any of the other parties to the Material Contracts, being in material default under, any of the terms of the Material Contracts,
and (iii) subject to entry of the Sale Order, none of the Material Contracts requires the consent of any other party thereto in connection with the transactions contemplated by this Agreement except, in the case of clauses (i), (ii) and
(iii) above, as have not had, or would not reasonably be expected to have, a Material Adverse Change. 
 5.12 Customers and
Suppliers. To the Knowledge of the Sellers and the Non-Debtor Subsidiaries, except as set forth on Schedule 5.12 or except with respect to outstanding disputes regarding Sellers’ failure to pay outstanding amounts, there are no
outstanding material disputes between the Sellers or the Non-Debtor Subsidiaries and any of their respective customers or suppliers and no material customer or supplier has notified any Seller or Non-Debtor Subsidiary in writing that it intends to
terminate or materially reduce the amount of business it conducts with the Sellers or Non-Debtor Subsidiaries. 
 5.13 Property.

 (a) Schedule 5.13(a) sets forth for each Seller the address or other description of each parcel of Owned Real Property. The Sellers
have delivered or made available to the Purchaser true, correct and complete copies of the legal descriptions of the Owned Real Property. Except as set forth in Schedule 5.13(a), with respect to each parcel of Owned Real Property, there are
no Liens or Encumbrances on the Owned Real Property that will not be extinguished pursuant to the Sale Order other than Permitted Exceptions. To the Knowledge of Sellers and to the extent in Sellers’ possession, the Sellers have delivered or
made available to the Purchaser true, correct and complete copies of all (i) title insurance policies and surveys relating to each parcel of Owned Real Property and (ii) Liens or Encumbrances affecting any parcel of Owned Real Property
listed on Schedule 5.13(a). 
 (b) Schedule 5.13(b) sets forth for each Seller a true, correct and complete list of all Leases
for all real property (including the date, if available, and name of each of the parties to such Leases), together with a description of any buildings, fixtures, structures and improvements located on such real property, (collectively, the
“Leased Real Property”, and together with the Owned Real Property, the “Real Property”). The Sellers have delivered or made available to the Purchaser a true and complete copy of each of the aforementioned Leases
(including all amendments, modifications and supplements thereto) and, except as set forth on Schedule 5.13(b), such Leases have not been amended, modified, restated or otherwise supplemented. To the Knowledge of Sellers and to the extent in
Sellers’ possessions, the Sellers 
  

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 have delivered or made available to the Purchaser true, correct and complete copies of all leasehold title insurance
policies and surveys relating to each Leased Real Property. With respect to each of the aforementioned Leases: (i) except as results directly from the pendency of the Bankruptcy Case, Sellers have a valid and subsisting leasehold estate in such
Leased Real Property for the full term of such Lease, and such Lease is legal, valid, binding obligation of the applicable Seller that is lessee thereunder and is in full force and effect; (ii) there are no material disputes with respect to
such Lease, nor have the Sellers received written notice of, or are they aware of, any default thereunder (or condition or event, which, after notice or a lapse of time or both, would constitute a default thereunder), except as results directly from
the pendency of the Bankruptcy Case or except with respect to outstanding disputes regarding Sellers’ failure to pay outstanding amounts; (iii) to the Knowledge of the Sellers, no security deposit or portion thereof deposited with respect
to such Lease has been applied in respect of a breach or default under such Lease which has not been redeposited in full, nor have the Sellers received written notice of the foregoing; (iv) the Sellers do not owe, nor will they in the future
owe, any brokerage commissions or finder’s fees with respect to such Lease; (v) except as set forth on Schedule 5.13(b)(v), the other party to such Lease is not an Affiliate of, and, to the Knowledge of the Sellers, otherwise does
not have any economic interest in, the Sellers; (vi) except as set forth on Schedule 5.13(b)(vi), to the Knowledge of the Sellers, there are no Liens or Encumbrances other than Permitted Exceptions on the Lease or on the estate or
interest created by such Lease created or suffered to exist by the Sellers that will not be extinguished pursuant to the Sale Order as against such Lease or estate or interest, nor have the Sellers received written notice of any of the foregoing;
(vii) except as set forth on Schedule 5.13.(b)(vii), no Seller and, to the Knowledge of the Sellers, no other party to such Lease has assigned the same or sublet any part of the premises covered thereby or exercised any option or right
thereunder, and (viii) except as set forth on Schedule 5.13(b)(viii), there are no unpaid late fees, charges or other penalties under any Lease in an amount in excess of $50,000 individually and $250,000 in the aggregate. 
 (c) Sellers have received no written or, to the Sellers’ Knowledge, oral notification that they are in violation of any applicable building, zoning,
health or other law, ordinance or regulation which would materially adversely affect the use or operations of any Leased Real Property, except for any written notifications that pertain to violations that have been cured or resolved. The Sellers
have received no written notification regarding unrecorded easements and/or agreements or encroachments in respect of all or any portion of any Leased Real Property that could materially adversely affect any such Leased Real Property or the use
thereof. 
 5.14 Brokers. The Sellers have no obligation to pay any fees, commissions or other similar compensation to any broker,
finder, investment banker, financial advisor or other similar Person in connection with the Transactions, except as set forth on Schedule 5.14. 
 5.15 No Other Representations or Warranties; Schedules. Except for the representations and warranties contained in this Article V (as modified by the Schedules hereto), none of Sellers nor any other Person
makes any other express or implied representation or warranty with respect to Sellers, the Sellers’ Business, the Purchased Assets, the Assumed Liabilities or the Transactions, and each Seller disclaims any other representations or warranties,
whether made by Sellers, any Affiliate of Sellers, or any of Sellers’ or their Affiliates respective officers, directors, employees, agents or representatives. Except for the representations and 
  

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 warranties contained in Article V hereof (as modified by the Schedules hereto), each Seller (i) expressly disclaims
and negates any representation or warranty, expressed or implied, at common law, by statute, or otherwise, relating to the condition of the Purchased Assets (including any implied or expressed warranty of merchantability or fitness for a particular
purpose, or of conformity to models or samples of materials) and (ii) disclaims all liability and responsibility for any representation, warranty, projection, forecast, statement, or information made, communicated, or furnished (orally or in
writing) to Purchaser or its Affiliates or representatives (including any opinion, information, projection, or advice that may have been or may be provided to Purchaser by any director, officer, employee, agent, consultant, or representative of
Sellers or any of its Affiliates). Except for the representations and warranties contained in this Article V (as modified by the Schedules hereto), Sellers makes no representations or warranties to Purchaser regarding the probable success or
profitability of the Sellers’ Business. The disclosure of any matter or item in any schedule hereto shall not be deemed to constitute an acknowledgment that any such matter is required to be disclosed or is material or that such matter would
result in a Material Adverse Change. 
 5.16 Financial Statements. The audited financial statements of the Sellers included in the
Sellers’ Annual Report on Form 10-K for the fiscal year ended December 31, 2005, which the Sellers have disclosed cannot be relied upon due to an error in the Sellers’ accounting treatment for certain inventory tolling arrangements;
and (ii) the unaudited financial statements of the Sellers as of and for the six month period ended June 30, 2006, have been prepared from, and are in accordance with, the books and records of the Sellers and their Non-Debtor Subsidiaries,
comply in all material respects with applicable accounting requirements, have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto), and fairly present the
consolidated financial position and the consolidated results of operations and cash flows of the Sellers and their Non-Debtor Subsidiaries at the dates and for the periods covered thereby except as follows: (a) adjustments related to the
disclosed error with respect to the Sellers’ accounting treatment for certain inventory tolling arrangements, and (b) adjustments related to any going concern determinations with respect to the Sellers. 
 5.17 Absence of Certain Changes. Except (a) as set forth in Schedule 5.17, (b) for the commencement or pendency of the Bankruptcy
Case and (c) for orders, writs, injunctions, decrees, statutes, rules, or regulations of general applicability to the Business, since June 30, 2006 there has been no event or condition that has had (or is reasonably likely to result in) a
Material Adverse Change. 
 5.18 Tangible Personal Property. To the Knowledge of the Sellers, the items of personal property included
in the Purchased Assets are in good operating condition and repair, subject to continued repair and replacement in accordance with past practice and the Sellers’ liquidity constraints, and are suitable for their intended use. During the past 6
months there has not been any significant interruption of the operations of the Business due to inadequate maintenance of the such personal property that have or will cause a Material Adverse Change. 
 5.19 Board Approval and Recommendation. The Board of Directors of each Seller has determined that, based upon its consideration of the available
alternatives, and subject to the approval of the Bankruptcy Court and the provisions in this Agreement regarding the solicitation 
  

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 of Competing Transactions, a sale, assignment and assumption of the Purchased Assets and Assumed Contracts pursuant to
this Agreement under sections 105, 363 and 365 of the Bankruptcy Code is in the best interests of such Seller. 
 5.20 Acknowledgment.
Each Seller hereby acknowledges that, other than the obligations of Purchaser set forth in this Agreement, Purchaser does not have any obligation to further bid or overbid for the Purchased Assets or participate in any auction at which Qualified
Bidders bid to acquire the assets of the Business. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 The Purchaser hereby represents and warrants to Sellers that:

 6.1 Organization and Good Standing. Purchaser is an entity duly organized, validly existing and in good standing under the laws of
the state of Delaware and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted. 
 6.2 Authorization of Agreement. Purchaser has the requisite power and authority to execute and deliver this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which it
is a party and to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which it is a party and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Purchaser. This Agreement and each other agreement, document or instrument contemplated hereby or thereby to which Purchaser is a
party has been duly and validly executed and delivered by Purchaser and (assuming the due authorization, execution and delivery by the other parties hereto) this Agreement and each other agreement, document or instrument contemplated hereby or
thereby to which Purchaser is a party constitutes legal, valid and binding obligations of Purchaser enforceable against it in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is
sought in a proceeding at law or in equity). 
 6.3 Conflicts; Consents of Third Parties. 
 (a) The execution and delivery by Purchaser of this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which
Purchaser is a party, the consummation of the transactions contemplated hereby and thereby, or compliance by Purchaser with any of the provisions hereof or thereof do not conflict with, or result in any violation of or default (with or without
notice or lapse of time, or both) under, or give rise to a right of termination or cancellation under any provision of (i) its certificate of incorporation or bylaws (ii) any Contract, Lease or Permit to which Purchaser is a party or by
which any of its 
  

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 properties or assets are bound; (iii) any Order of any Governmental Body applicable to Purchaser or any of its
properties or assets as of the date hereof; or (iv) any applicable Law, other than, in the case of clauses (ii), (iii) and (iv), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expected to
cause, individually or in the aggregate, a material adverse effect on Purchaser. 
 (b) No consent, waiver, approval, Order, Permit or
authorization of, or declaration or filing with, or notification to, any Person or Governmental Body is required in connection with the execution and delivery of this Agreement and each other agreement, document or instrument contemplated hereby or
thereby to which Purchaser is a party, the compliance by Purchaser with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, its taking of any other action contemplated hereby or thereby,
except for (i) compliance with the applicable requirements of the HSR Act and (ii) such other consents, waivers, approvals, Orders, Permits, authorizations, declarations, filings and notifications, the failure of which to obtain or make,
would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Purchaser. 
 6.4 Brokers.
Except for the fees and expenses of Houlihan, Lokey, Howard & Zukin, the Purchaser does not have any obligation to pay any fees, commissions or other similar compensation to any broker, finder, investment banker, financial advisor or other
similar Person in connection with the Transactions. 
 6.5 Adequate Assurance. Purchaser will timely provide such information to
Sellers, as Sellers believe is reasonably necessary to provide “adequate assurance,” as that term is used in Section 365 of the Bankruptcy Code, with respect to Assumed Leases and Assumed Contracts. 
 6.6 Condition of the Purchased Assets. Notwithstanding anything contained in this Agreement to the contrary, Purchaser acknowledges and agrees
that Sellers are not making any representations or warranties whatsoever, express or implied, beyond those expressly given by Sellers in Article V hereof (as modified by the Schedules hereto), and Purchaser acknowledges and agrees that, except for
the representations and warranties contained therein, the Purchased Assets are being transferred on a “where is” and, as to condition, “as is” basis. Purchaser acknowledges that it will conduct its own due diligence and in making
the determination to proceed with the Transaction, Purchaser will be relying on the results of its own independent investigation. 
 6.7
Communications with Customers and Suppliers. Prior to the Closing, the Purchaser shall not, and shall cause its Affiliates and representatives not to, contact, or engage in any discussions or otherwise communicate with, any of the
Business’ customers, suppliers and others with whom it has material commercial dealings without obtaining the prior consent of Seller (which will not be unreasonably withheld but, if given, may be conditioned on Seller having the right to
designate an officer of Seller reasonably acceptable to Purchaser, to participate in any meetings or discussions with any such customers, suppliers or others). 
  

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 ARTICLE VII 
 BANKRUPTCY COURT MATTERS 
 7.1 Competing Transaction. This Agreement is subject to approval by the
Bankruptcy Court and the consideration by Sellers and the Bankruptcy Court of higher or better competing bids with respect to any transaction (or series of transactions) involving the direct or indirect sale, transfer or other disposition of the
Purchased Assets to a purchaser or purchasers other than Purchaser or effecting any other transaction (including a plan of reorganization, refinancing or liquidation) the consummation of which would be substantially inconsistent with the
Transactions (a “Competing Transaction”). Nothing contained herein shall be construed to prohibit Sellers and its representatives from soliciting, considering, negotiating, agreeing to, or otherwise taking action in furtherance of,
any Competing Transaction. 
 7.2 Bidding Procedures Order. 
 (a) The Sellers agree promptly following, but no later than three (3) days after, the Effective Date, to (i) file the Bankruptcy Case,
(ii) file a motion seeking an order of the Bankruptcy Court for authority to observe and perform its obligations under this Section 7.2 (the “Bidding Procedures Order”), and (iii) seek a hearing on the Bid
Procedures Order to be scheduled as promptly as possible but in no event shall the Bid Procedures Order be entered later than thirty (30) days after the Petition Date. The Bidding Procedures Order shall, among other things, (1) approve the
Break-Up Fee and Expense Reimbursement (as defined below), and provide that the Purchaser’s claim to the Break-Up Fee and Expense Reimbursement under this Section 7.2 shall be entitled to superpriority administrative claim treatment in the
Bankruptcy Cases, senior to all other superpriority claims (except those granted with respect to any DIP Credit Agreement) and that the Break-Up Fee and Expense Reimbursement must be paid to Purchaser in full upon consummation of a Competing
Transaction or, if no such transaction is consummated within 25 days following Bankruptcy Court approval of a Competing Transaction, immediately but no later than three (3) Business Day following the expiration of such 25 day period,
(2) authorize the Purchaser to credit bid the Break-Up Fee and Expense Reimbursement at any auction at which Qualified Bidders may bid, (3) establish a date no more than fifty-eight (58) days following the Petition Date by which
initial Qualified Bids (as defined below) must be submitted (the “Bid Deadline”), (4) approve the Bidding Procedures for the solicitation of higher and otherwise better bids (whether in a single Qualified Bid, a collection of
Qualified Bids, or in concert with any Permitted Restructuring Alternative) that, among other things, sets a date (the “Auction Date”) no more than sixty (60) days following the Petition Date for an auction at which only
Qualified Bidders (as defined below) who have previously submitted a Qualified Bid may bid, (5) set the Initial Incremental Bid Amount (as defined below) for any Qualified Bid, and (6) establish the date no more than five (5) days
after the Auction Date for the hearing on the proposed sale of the Purchased Assets to the Purchaser or to such Qualified Bidder submitting the highest or otherwise best bid at the Auction (the “Sale Hearing”). The Sellers agree
that they shall represent to the Bankruptcy Court that Sellers actively solicited this “stalking horse” bid from the Purchaser. The Purchaser reserves the right to make multiple credit bids of any or all of the amount outstanding under the
Tennenbaum Credit Agreement to the fullest extent permitted under Section 363 (k) of the Bankruptcy Code. The Bidding Procedures Order shall be in form and substance reasonably acceptable to Purchaser and its counsel and Sellers hereby
agree not to change or modify any of the dates or procedure set forth in the Bidding Procedures Order, including without limitation the dates of the Sale Hearing and Closing Date, without the prior written consent of Purchaser. 
  

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 (b) For the purposes of this section: 
 (i) The “Initial Incremental Bid Amount” shall mean the sum of the Break-Up Fee and Expense Reimbursement and $1,000,000.

 (ii) A “Qualified Bidder” is a person (a) who has delivered to the Company an executed
confidentiality agreement in form and substance acceptable to the Sellers, (b) who has delivered to the Company a bid that identifies assets of the Company to be acquired by the bidder and the consideration to be paid for such assets that
constitutes a Competing Transaction, and (c) whom the Company in good faith determines is reasonably likely (based on availability of financing, experience and other considerations) to be able to consummate a transaction based on the
Competing Transaction, if selected as the successful bidder. The Purchaser shall be deemed a Qualified Bidder. 
 (iii) A
“Qualified Bid” is a Competing Transaction (a) the value of which (whether viewed separately or together with other competing proposals evidenced by Qualified Bids or any Permitted Restructuring Alternative) is greater or
otherwise better than the sum of (i) the value of Purchaser’s offer as set forth in the Purchase Agreement and (ii) the Initial Incremental Bid Amount (as defined above), (b) that is accompanied by an executed copy of an
alternative purchase agreement that reflects any substantive changes to this Agreement and includes a commitment to close by the Termination Date, a representation that the Qualified Bidder will make all necessary HSR filings, pay all costs and
expenses associated with such filings (including the costs and expenses of the Sellers), and satisfactory evidence of committed financing or other ability to perform and (c) that is accompanied by a cash deposit in the amount of ten
percent (10%) of the purchase price offered in the proposal for a Competing Transaction, which deposit shall be forfeited as liquidated damages for breach by the purchaser thereunder on terms substantially the same as those described in
Section 4.6(b). 
 7.3 Submission to Bankruptcy Court. Within three (3) days following the Effective Date, Sellers
shall file with the Bankruptcy Court this Agreement and such notices as may be appropriate in connection therewith. Purchaser shall cooperate with Sellers in obtaining Bankruptcy Court approval of the Bidding Procedures Order and the Sale Order.

 7.4 Break-Up Fee and Expense Reimbursement. The Bidding Procedures Order shall provide that the Purchaser, provided that Purchaser
is not in default under this Agreement and its offer is not subject to any of the conditions set forth in Section 10.1 of this Agreement, other than Sections 10.1(a), (b) and (i) as of the Designation Deadline, shall be
entitled to be paid an amount equal to 3% of the Purchase Price as a combined break-up fee and expense reimbursement (the “Break-Up Fee and Expense Reimbursement”) if (a) the Bankruptcy Court approves a Competing Transaction
with a Qualified Bidder other than the Purchaser and (b) the Sellers either consummate such an alternative transaction or fail to consummate a transaction 
  

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 with the Purchaser or any other Qualified Bidder. The Break-Up Fee and Expense Reimbursement described in this
Section 7.4 shall be paid (i) upon the occurrence of the consummation of the Competing Transaction, by the winning Qualified Bidder or (ii) if no transaction (including a transaction with the Purchaser) is consummated within
twenty-five (25) days following Bankruptcy Court approval of such Competing Transaction, by the Sellers. Except as provided herein, Purchaser shall not be entitled to any portion of the Break-Up Fee and Expense Reimbursement. 
 7.5 Sale Order. Subject to Section 7.1, Purchaser agrees that it will promptly take such actions as are reasonably requested by
Sellers to assist in obtaining entry of the Sale Order and a finding of adequate assurance of future performance by Purchaser, including furnishing affidavits or other documents or information for filing with the Bankruptcy Court for the purposes,
among others, of providing necessary assurances of performance by Purchaser under this Agreement and demonstrating that Purchaser is a “good faith” purchaser under section 363(m) of the Bankruptcy Code and that the Purchase Price was not
controlled by an agreement in violation of Section 363(n) of the Bankruptcy Code. In the event the entry of the Sale Order shall be appealed, Sellers and Purchaser shall use their respective reasonable efforts to defend such appeal. 

ARTICLE VIII 
 COVENANTS 
 8.1 Access to Information. Sellers agree that, prior to the Closing Date, Purchaser shall be entitled, through its officers, employees, consultants
and representatives (including, without limitation, its legal advisors and accountants), to make such investigation of the properties, business and operations of Sellers and such examination of the books and records and financial and operating data
of Sellers, the Business, the Purchased Assets, the Assumed Liabilities and the Leased Real Property, and access to all the officers, key employees, accountants and other representatives of Sellers, as it reasonably requests and to make extracts and
copies of such books and records. Any such investigation and examination shall be conducted upon reasonable advance notice and under reasonable circumstances and shall be subject to restrictions under applicable Law. Sellers shall cause their
respective officers, employees, consultants, agents, accountants, attorneys and other representatives to cooperate with Purchaser and Purchaser’s representatives in connection with such investigation, examination and access, and Purchaser and
its representatives shall cooperate with Sellers and their representatives and shall use their reasonable efforts to minimize any disruption to their business. Notwithstanding anything herein to the contrary, no such investigation or examination
shall be permitted to the extent that it would require Sellers to disclose information subject to attorney-client privilege, provided Sellers advise Purchaser of the specific assertion of such privilege. 
 8.2 Conduct Pending the Closing. 
 (a)
Except (i) as expressly set forth in the Budget, (ii) required by applicable Law, (iii) as otherwise expressly contemplated by this Agreement or (iv) with the prior written consent of Purchaser, during the period from the date of
this Agreement to and through the Closing Date, Sellers shall, to the extent commercially reasonable, taking into account the filing of the Bankruptcy Case: 
 (A) conduct their business only in the ordinary course; and 
  

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 (B) use their commercially reasonable efforts to (A) preserve their present business operations,
organization and goodwill, and (B) preserve their present relationships with customers and suppliers. 
 (b) Except (i) as expressly set
forth in the Budget, (ii) required by applicable Law, (iii) as otherwise contemplated by this Agreement, (iv) for Excepted Commitments, or (v) with the prior written consent of Purchaser, Sellers shall not, and shall not file
with the Bankruptcy Court a request or motion, or support any other request or motion, to: 
 (A) make any promise or representation, oral or
written, to, or otherwise (1) increase the annual level of compensation payable or to become payable by Sellers to any of their respective directors, executive officers or Employees, (2) grant, or establish or modify any targets, goals,
pools or similar provisions in respect of, any bonus, benefit or other direct or indirect compensation to or for any director, executive officer or Employee, (z) increase the coverage or benefits available under any (or create any new) Employee
Benefit Plan or (3) enter into any employment, deferred compensation, severance, consulting, non-competition or similar agreement (or amend any such agreement) to which any Seller is a party or involving a director, executive officer or
Employee of such Seller, except, in each case, as required by any of the Employee Benefit Plans or Employee Agreements; 
 (B) enter into,
modify or terminate any labor or collective bargaining agreement or, through negotiation or otherwise, make any commitment or incur any liability or other obligation to any labor organization; 
 (C) make or rescind any material election relating to Taxes, settle or compromise any material claim, action, suit, litigation, proceeding, arbitration,
investigation, audit or controversy relating to Taxes, or, except as may be required by the Code or GAAP, make any material change to any of its methods of accounting or methods of reporting income or deductions for Tax or accounting practice or
policy from those employed in the preparation of its most recent audited financial statements or Tax Returns, as applicable; 
 (D) subject
any of the Purchased Assets to any Lien, Interest or Encumbrance, except for Permitted Exceptions; 
 (E) cancel or compromise any material
debt or claim or waive or release any material right of Sellers that constitutes a Purchased Asset other than customer accounts receivable compromised in the ordinary course of the business of Sellers; 
  

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 (F) enter into any commitment for capital expenditures other than as set forth in the Budget;

 (G) engage in any transaction with any officer, director or Affiliate of any Seller or affiliate of any such individual; 
 (H) sell, pledge, dispose of, transfer, lease, license or encumber or permit to lapse or authorize the sale, pledge, disposition, transfer, lease,
license, or encumbrance of, any Purchased Assets except in the ordinary and usual course of business consistent with past practices and as would not constitute a Material Adverse Change; 
 (I) transfer, dispose of, permit to lapse (except in accordance with the terms thereof) or grant any right or licenses under, or enter into any
settlement regarding the breach or infringement of, any Intellectual Property, or modify any existing rights with respect thereto or enter into any material licensing or similar agreements or arrangements other than such licenses, agreements or
arrangements entered into in the ordinary course of business consistent with past practices and as would not constitute a Material Adverse Change; 
 (J) enter into, assume or terminate any Material Contract or enter into or permit any material amendment, supplement, waiver or other material modification in respect thereof, except in the ordinary and usual course of business consistent
with past practices and as would not constitute a Material Adverse Change; 
 (K) adopt or propose any change in its certificate of
incorporation or bylaws, except a change that would not constitute a Material Adverse Change; 
 (L) declare, set aside, or pay any dividend
or other distribution with respect to any shares of its capital stock, or split, combine, or reclassify any of its capital stock, or repurchase, redeem, or otherwise acquire any shares of its capital stock; 
 (M) other than as a result of the Transactions, no Seller shall merge or consolidate with any other Person or acquire a material amount of assets of any
other Person; 
 (N) make a Material Decision; 
 (O) adopt or propose any change to, or fail to maintain, the current levels of insurance coverage afforded the Sellers under existing insurance policies; and 
  

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 (P) agree to do anything prohibited by this Section 8.2 or do or agree to do anything that
would cause Sellers’ representations and warranties herein to be false in any material respect. 
 (c) In addition to the other
covenants set forth in this Section 8.2, in no event shall any Seller individually or all Sellers in the aggregate, make or incur any Liability, file or propose to file any motion or other pleading with the Bankruptcy Court in support
of, or make any payment(s) of, the types of expenditures set forth on Schedule 8.2(c) hereto in excess of the amounts for any such type of expenditure set forth on Schedule 8.2(c), as such amounts may be reduced in accordance with the
definition of Bank Loan Amount and Schedule 1.1A; provided, however, that this Section 8.2(c) shall not prohibit Sellers from incurring any Liability in excess of the amounts set forth on Schedule 8.2(c) to
the extent and solely to the extent (x) no payment with respect to such excess is made on or prior to the earlier of the Termination Date and the Closing Date, (y) such Liability is expressly subordinated to all Liabilities and other
obligations under the Tennenbaum Credit Agreement, and (z) no payment with respect to such excess may be made until after the Tennenbaum Lenders are paid in cash an amount in full satisfaction of all Liabilities and other obligations under the
Tennenbaum Credit Agreement (any such commitments made in compliance with this proviso being referred to herein as the “Excepted Commitments”)); and, provided, further, that Sellers hereby agree that the Purchaser and
its Affiliates reserve all rights to object to any requests in the Bankruptcy Case to approve any such commitment or payment. 
 8.3
Consents. Sellers shall use their commercially reasonable efforts, and Purchaser shall cooperate with Sellers, to obtain at the earliest practicable date all consents and approvals required to consummate the Transactions, including the
transfer or reissuance of any Permits, including those required under Environmental Laws, held by Sellers and required for Purchaser to operate the business and Purchased Assets, including, without limitation, any consents required pursuant to any
Material Contract of the Non-Debtor Subsidiaries (the “Non-Debtor Consents”); provided, however, that neither Sellers nor Purchaser shall be obligated to pay any consideration therefore to any third party from whom
consent or approval is requested or to initiate any litigation or legal proceedings to obtain any such consent or approval; provided, further, that if requested by the Purchaser, the Sellers shall initiate such litigation or legal
proceedings requested by the Purchaser to obtain such consents or approvals or an Order but only if the Purchaser advances to the Sellers, the Sellers’ good faith and reasonable estimate of any and all out of pocket expenses and costs
(including reasonable attorneys fees) related thereto. 
 8.4 Regulatory Approvals. 
 (a) If necessary, Purchaser and Sellers shall (i) use commercially reasonable efforts to make or cause to be made all filings required of each of
them or any of their respective Affiliates under the HSR Act or other Antitrust Laws with respect to the Transactions as promptly as practicable and, in any event, within 15 Business Days after the date hereof in the case of all filings required
under the HSR Act and within four weeks in the case of all other filings required by other Antitrust Laws, (ii) comply, to the extent practicable, at the earliest practicable date with any request under the HSR Act or other Antitrust Laws for
additional information, documents, or other materials received by each of them or any of their respective subsidiaries from Federal Trade Commission (the “FTC”), the Antitrust Division of the United 
  

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 States Department of Justice (the “Antitrust Division”) or any other Governmental Body in respect of
such filings or the Transactions, and (iii) cooperate with each other in connection with any such filing (including, to the extent permitted by applicable Law, providing copies of all such documents to the non-filing parties prior to filing and
considering all reasonable additions, deletions or changes suggested in connection therewith) and in connection with resolving any investigation or other inquiry of any of the FTC, the Antitrust Division or other Governmental Body under any
Antitrust Laws with respect to any such filing or any Transaction. Each such party shall use commercially reasonable efforts to furnish to each other all information required for any application or other filing to be made pursuant to any applicable
Law in connection with the Transactions. Each such party shall promptly inform the other parties hereto of any oral communication with, and provide copies of written communications with, any Governmental Body regarding any such filings or any
Transaction. No party hereto shall independently participate in any formal meeting with any Governmental Body in respect of any such filings, investigation, or other inquiry without giving the other parties hereto prior notice of the meeting and, to
the extent permitted by such Governmental Body, the opportunity to attend and/or participate. Subject to applicable Law, the parties hereto will consult and cooperate with one another in connection with any analyses, appearances, presentations,
memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any party hereto relating to proceedings under the HSR Act or other Antitrust Laws. Sellers and Purchaser may, as each deems advisable and necessary in good
faith, reasonably designate any competitively sensitive material provided to the other under this Section 8.4 as “outside counsel only.” Such materials and the information contained therein shall be given only to the outside
legal counsel of the recipient and will not be disclosed by such outside counsel to employees, officers, or directors of the recipient, unless express written permission is obtained in advance from the source of the materials (Sellers or Purchaser,
as the case may be). 
 (b) Each of Purchaser and Sellers shall use its commercially reasonable efforts to resolve such objections, if any,
as may be asserted by any Governmental Body with respect to the Transactions under the HSR Act, the Sherman Act, as amended, the Clayton Act, as amended, the Federal Trade Commission Act, as amended, and any other United States federal or state or
foreign statutes, rules, regulations, orders, decrees, administrative or judicial doctrines or other laws that are designed to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade (collectively,
the “Antitrust Laws”). In connection therewith, if any Legal Proceeding is instituted (or threatened to be instituted) challenging any Transaction is in violation of any Antitrust Law, each of Purchaser and Sellers shall cooperate
and use its commercially reasonable efforts to contest and resist any such Legal Proceeding, and to have vacated, lifted, reversed, or overturned any decree, judgment, injunction or other order whether temporary, preliminary or permanent, that is in
effect and that prohibits, prevents, or restricts consummation of the Transactions, including by pursuing all available avenues of administrative and judicial appeal and all available legislative action, unless, by mutual agreement, Purchaser and
Sellers decide that litigation is not in their respective best interests. Each of Purchaser and Sellers shall use its commercially reasonable efforts to take such action as may be required to cause the expiration of the notice periods under the HSR
Act or other Antitrust Laws with respect to the Transactions as promptly as possible after the execution of this Agreement. In connection with and without limiting the foregoing, each of Purchaser and Sellers agrees to use its commercially
reasonable efforts to take promptly any and all steps necessary to avoid or eliminate each and every impediment under any Antitrust Laws that may be asserted by any Federal, state and local and non-United States antitrust or competition authority,
so as to enable the parties to close the Transactions as expeditiously as possible. 
  

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 (c) Prior to Closing, Sellers shall have submitted to the New Jersey Department of Environmental
Protection (“NJDEP”) true, accurate and complete copies of all filings required pursuant to the New Jersey Industrial Site Recovery Act (“ISRA”) for the Real Property and operations of Sellers in Metuchen and
Edison, New Jersey (the “New Jersey Property”). With respect to the New Jersey Property, Sellers shall receive and provide to Purchaser prior to the Closing Date a nonapplicability determination, an approved negative declaration or
a no further action letter, in each case, issued pursuant to ISRA by NJDEP. In the event that a nonapplicability determination, an approved negative declaration or a no further action letter cannot be received by Sellers and provided to Purchaser
before the Closing Date (through no fault or delay on behalf of the Sellers), the Parties shall enter into a Remediation Agreement or its equivalent with NJDEP, which will allow the transaction contemplated hereby to proceed pending prompt
completion of all ISRA obligations for the New Jersey Property after Closing. 
 8.5 Further Assurances. Subject to the other
provisions of this Agreement, each of Purchaser and each Seller shall use its commercially reasonable efforts to (i) take all actions necessary or appropriate to consummate the Transactions and (ii) cause the fulfillment at the earliest
practicable date of all of the conditions to their respective obligations to consummate the Transactions. 
 8.6 Preservation of
Records. Sellers or their successors and Purchaser agree that each of them shall preserve and keep the records held by it or their Affiliates relating to the Purchased Assets for one year after the Closing Date (except as provided below) and
shall make such records available to the other as may be reasonably required by such party in connection with, among other things, any insurance claims by, Legal Proceedings or tax audits against or governmental investigations of Sellers or
Purchaser or any of their Affiliates or in order to enable Sellers or Purchaser to comply with their respective obligations under this Agreement and each other agreement, document or instrument contemplated hereby. In the event Sellers or Purchaser
wishes to destroy such records before or within two years, such party shall first give 90 days prior written notice to the other and such other party shall have the right at its option and expense, upon prior written notice given to such party
within such 90 day period, to take possession of the records within 180 days after the date of such notice. 
 8.7 Publicity. None of
the parties hereto shall issue any press release concerning this Agreement or the Transactions without obtaining the prior written approval of the other party hereto, which approval will not be unreasonably withheld or delayed, unless, in the sole
judgment of Purchaser or Sellers, disclosure is otherwise required by applicable Law or by the Bankruptcy Court with respect to filings to be made with the Bankruptcy Court in connection with this Agreement, provided that the party intending
to make such release shall use its commercially reasonable efforts consistent with such applicable Law or Bankruptcy Court requirement to consult with the other party with respect to the text thereof. 
 8.8 Schedules. Sellers may, at their option, include in the Schedules items that are not material in order to avoid any misunderstanding, and such
inclusion, or any references to 
  

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 dollar amounts, shall not be deemed to be an acknowledgement or representation that such items are material, to establish
any standard of materiality or to define further the meaning of such terms for purposes of this Agreement. Information provided in one Schedule will suffice, without repetition or cross reference, as a disclosure of such information in any other
Schedule to which its relevance is reasonably apparent on its face. 
 8.9 Transitional License. Effective upon the Closing, Purchaser
shall be deemed to have granted Sellers a one-hundred and twenty (120) day non-exclusive, royalty free right and license to use the name “Radnor Holdings Corporation”, which may be used solely in connection with the wind-down of the
Bankruptcy Case for purposes of liquidating the Excluded Assets. 
 8.10 Letters of Credit and Security Deposits. On the Closing Date
or as soon thereafter as is practicable, Purchaser shall use reasonable efforts to (a) replace any letters of credit securing any Seller’s obligations and issued under the DIP Credit Agreement (the “Existing L/Cs”) and
(b) cause the original Existing L/Cs to be returned to Sellers with no drawings having been made thereunder since the Closing Date. 
 8.11 Compliance with DIP Credit Agreement. Sellers shall not take any action not in compliance with any covenant or other agreements set forth in the DIP Credit Agreement. 
 8.12 Payment of Taxes. Subject to the Purchaser discharging its payment, advancement and reimbursement obligations under Sections 2.3 and 2.8,
Sellers shall be responsible for paying or otherwise discharging all of its Taxes for all periods (or portions thereof) ending on or prior to the Closing Date. 
 8.13 Motions, Orders, etc. Sellers shall promptly provide Purchaser with the proposed final drafts of all documents, motions, orders, or pleadings that Sellers propose to file with the Bankruptcy Court which
relate to the approval of this Agreement, the Purchased Assets, the Assumed Contracts or Assumed Leases or the consummation of the Transactions, or any provision therein or herein, and shall provide Purchaser and its counsel with a reasonable
opportunity to review and comment on such documents, motions, orders, or pleadings prior to filing with the Bankruptcy Court. 
 8.14
Schedules and Exhibits. The parties hereto shall cooperate and work in good faith to complete any schedules and exhibits not attached hereto on the Effective Date by September 8, 2006. The parties hereto shall, upon completion of and
agreement on the form and substance of such missing schedules and exhibits, acknowledge same in writing and consent to the annexation of such schedules and/or exhibits to this Agreement. 
 ARTICLE IX 
 EMPLOYEES AND EMPLOYEE BENEFITS 
 9.1 Transferred and Retained Employees. 
 (a) The parties recognize that the continued employment of the personnel of Sellers is significant to the business interests of both Purchaser and Sellers. As a result, the transfer of employment relationships is important to both parties
and Sellers shall use their best efforts to accomplish the transition with as little disruption to the Business as possible. In that 
  

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 regard, the Purchaser shall offer employment to Substantially All of the Sellers’ Employees associated with the
Purchased Assets and the surviving Business related thereto, other than Employees whose services are provided pursuant to the Transition Services Agreement (all of the Sellers’ Employees that accept such an offer and actually commence
employment with Purchaser after the Closing Date, the “Transferred Employees”, and all other Employees of the Sellers who are not Transferred Employees, the “Retained Employees”). Other than as provided in
Section 2.3(a) and Section 2.3(f), Purchaser shall have no liability or any other obligation with respect to any Retained Employees. 
 (b) For purposes of determining eligibility to participate in and vesting under any “employee benefit plan” (as defined in Section 3(3) of ERISA), other than pension plans (including any defined benefit
pension plan), that Purchaser offers to Transferred Employees, and for purposes of determining vacation, sickness benefits and other fringe benefits offered to Transferred Employees by Purchaser, each such Transferred Employee shall be credited with
the months and years of service he or she completed while employed by the Sellers for any other period or, to the extent such service was credited under a corresponding plan or program maintained by the Sellers. Purchaser shall credit all
Transferred Employees with their respective amounts of accrued but unpaid vacation and holiday pay and personal days, to the extent accrued and vested on the Closing Date. 
 9.2 Employment Tax Reporting. With respect to Transferred Employees, Purchaser and Sellers shall use the standard procedure set forth in Revenue
Procedure 2004-53, 2004-34 I.R.B. 320, for purposes of employment tax reporting. 
 9.3 Compensation and Benefits. As of the date
hereof, Purchaser intends to either maintain the current compensation and benefit arrangements of the Transferred Employees or provide compensation and benefits to such Employees that Purchaser determines in good faith are, in the aggregate,
generally comparable to those presently provided to the Transferred Employees. 
 9.4 No Obligations. Other than as set forth in
Sections 9.1(b) and 9.3, nothing contained in this Agreement shall be construed to require, or prevent the termination of, employment of any individual, require minimum benefit or compensation levels or prevent any change in the employee
benefits provided to any individual Transferred Employee. No provision of this Agreement shall create any third party beneficiary rights in any employee or former employee of any Seller or any other persons or entities (including any beneficiary or
dependent thereof), in respect of continued employment (or resumed employment) for any specified period of any nature or kind whatsoever. 
 ARTICLE X 
 CONDITIONS TO CLOSING 
 10.1 Conditions Precedent to Obligations of Purchaser. The obligation of Purchaser to consummate the Transactions is subject to the fulfillment, on or prior to the Closing Date, of each of the following
conditions (any or all of which may be waived by Purchaser in whole or in part to the extent permitted by applicable Law): 
  

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 (a) the representations and warranties of Sellers contained in this Agreement (i) that are not
qualified by materiality or a Material Adverse Change shall be true and correct in all respects on and as of the Closing, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and except to the extent that
the failure of such representations and warranties to be true and correct would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Change and (ii) that are qualified by materiality or Material Adverse
Change shall be true and correct in all respects on and as of the Closing (disregarding any materiality or Material Adverse Change qualifier contained therein), except to the extent expressly made as of an earlier date, in which case as of such
earlier date, and except to the extent that the failure of such representations and warranties to be true and correct would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Change, and Purchaser shall have
received a certificate signed by authorized officers of Sellers, dated the Closing Date, to the foregoing effect; 
 (b) Sellers shall have
performed and complied in all material respects with all obligations and agreements required in this Agreement to be performed or complied with by them prior to the Closing Date, and Purchaser shall have received a certificate signed by authorized
officers of Sellers, dated the Closing Date, to the forgoing effect; 
 (c) Purchaser shall have obtained financing having terms reasonably
satisfactory to Purchaser and in an amount at least equal to the Purchase Price and the expenses of Purchaser incurred in connection with the negotiation, preparation, execution and delivery of this Agreement and the consummation of the Transactions
contemplated hereby; 
 (d) Purchaser shall have satisfactorily (determined at Purchaser’s sole discretion) completed its due diligence
review of the Sellers, the Business, the Purchased Assets and Assumed Liabilities; 
 (e) Purchaser shall have received a policy of title
insurance on forms of and issued by one or more title companies reasonably satisfactory to Purchaser insuring the title of Purchaser to the Real Property listed in Schedule 5.13(a) and Schedule 5.13(b), subject only to such exceptions
as are reasonably satisfactory to Purchaser; 
 (f) Purchaser shall have received a Phase I environmental survey and assessment in form and
substance reasonably satisfactory to Purchaser prepared by a firm of licensed engineers reasonably satisfactory to Purchaser, each such environmental survey and assessment to be based upon physical on site inspections by such firm of each of the
existing manufacturing sites and facilities owned, operated and leased by Sellers and used in connection with the Business, as well as a historical review of the uses of such sites and facilities and of the Business (including any former
subsidiaries or divisions of any Seller which have been disposed of prior to the date of such survey and assessment and with respect to which any Seller may have retained liability for environmental matters); 
 (g) Purchaser shall have received any Non-Debtor Consents necessary to consummate the Transactions and any consents necessary under or pursuant to any
Material Contracts not subject to the Sale Order, and such consents shall be in full force and effect; 
  

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 (h) the Bankruptcy Court shall have entered an Order binding on all parties in the Sellers’
Bankruptcy Case (which Order may be the Sale Order) (i) unconditionally allowing a Claim by Purchaser in such Sellers’ Bankruptcy Case in an amount equal to at least the amount of Purchaser’s final credit bid at the auction sale
contemplated under Section 7.2 hereof (including a credit bid, if any, in excess of the Credit Bid Amount), and (ii) authorizing and approving such final credit bid by Purchaser pursuant to Section 363(k) of the Bankruptcy
Code; and 
 (i) Sellers shall have delivered, or caused to be delivered, to Purchaser all of the items set forth in Section 4.2.

 10.2 Conditions Precedent to Obligations of Sellers. The obligations of Sellers to consummate the Transactions are subject to the
fulfillment, prior to or on the Closing Date, of each of the following conditions (any or all of which may be waived by Sellers in whole or in part to the extent permitted by applicable Law): 
 (a) the representations and warranties of Purchaser contained in this Agreement (i) that are not qualified by materiality shall be true and correct
in all respects on and as of the Closing, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and except to the extent that the failure of such representations and warranties to be true and correct would
not reasonably be expected to have, individually or in the aggregate, a material adverse effect and (ii) that are qualified by materiality shall be true and correct in all respects on and as of the Closing (disregarding any materiality
qualifier contained therein), except to the extent expressly made as of an earlier date, in which case as of such earlier date, and except to the extent that the failure of such representations and warranties to be true and correct would not
reasonably be expected to have, individually or in the aggregate, a material adverse effect, and Sellers shall have received a certificate signed by an authorized officer of Purchaser, dated the Closing Date, to the foregoing effect; 
 (b) Purchaser shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed
or complied with by Purchaser on or prior to the Closing Date, and Sellers shall have received a certificate signed by an authorized officer of Purchaser, dated the Closing Date, to the foregoing effect; and 
 (c) Purchaser shall have delivered to Sellers all of the items set forth in Section 4.3. 
 10.3 Conditions Precedent to Obligations of Purchaser and Sellers. The respective obligations of Purchaser and Sellers to consummate the
Transactions are subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by Purchaser and Sellers in whole or in part to the extent permitted by applicable Law): 

(a) there shall not be in effect any Order by a Governmental Body of competent jurisdiction restraining, enjoining or otherwise prohibiting the
consummation of the Transactions; 
  

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 (b) the waiting period applicable to the Transactions under the HSR Act shall have expired or early
termination shall have been granted; 
 (c) the Bankruptcy Court shall have entered the Sale Order in form and substance reasonably
acceptable to Sellers and Purchaser within two (2) Business Days of the Sale Hearing; 
 (d) unless this condition has been waived by
Purchaser in its sole discretion, the Sale Order shall have become a Final Order; 
 (e) the Sellers and the Purchaser shall have entered
into the Transition Services Agreement; and 
 (f) the Bidding Procedures Order shall have been entered and shall have remained in full force
and effect and shall not have been stayed, vacated, modified or supplemented in any material respect without the Purchaser’s prior written consent. 
 10.4 Frustration of Closing Conditions. No party may rely on the failure of any condition set forth in Sections 10.1, 10.2 or 10.3, as the case may be, if such failure was caused by such
party’s failure to comply with any provision of this Agreement. 
 ARTICLE XI 
 TAXES. 
 11.1 Allocation of Taxes. All Taxes imposed on or with respect of the
Purchased Assets on a periodic basis (including but not limited to real estate Taxes and assessments) (“Periodic Taxes”) relating to periods beginning on or before and ending after the Closing Date shall be allocated on a per diem
basis to the Sellers and the Purchaser, respectively, in accordance with Section 164(d) of the Code. All Periodic Taxes relating to periods ending on or before the Closing Date shall be allocated solely to the Sellers. All Periodic Taxes
relating to the periods beginning after the Closing Date shall be allocated solely to the Purchaser. If the actual amounts to be prorated are not known as of the Closing Date, the prorations shall be made on the basis of Periodic Taxes assessed for
the prior year; provided, however, for purposes of calculating such prorated amounts, such Periodic Taxes for the prior year shall be increased by five percent (5%). 
 11.2 Purchase Price Allocation. Sellers and Purchaser shall allocate the Purchase Price among Sellers (and, if applicable, Purchaser) and among
the Purchased Assets of each Seller in accordance with a statement (the “Allocation Statement”) provided by Purchaser to Sellers as soon as practicable after the Closing, which statement shall be prepared in accordance with
Section 1060 of the Code. The Purchase Price allocated to each Seller shall be comprised first of the Assumed Liabilities of each Seller and then a pro rata portion of each other item comprising the Purchase Price. Purchaser and Sellers shall
file all Tax Returns (including Form 8594) consistent with, and shall take no tax position inconsistent with the Allocation Statement. 
 11.3 Tax Reporting. Purchaser shall prepare and file (or cause to be prepared and filed) on behalf of Sellers all Tax Returns, whether related to income taxes or non-income taxes, 
  

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 required to be filed or that Purchaser otherwise deems appropriate, including the filing of amended Tax Returns, for all
Tax Periods through and including any Tax Period that includes the Closing Date. Purchaser shall furnish a completed copy of any such Tax Return (including any supporting workpapers) to be filed by Purchaser to Sellers for Sellers’ review at
least 30 days prior to the due date for filing such returns. Sellers shall have the right to raise reasonable objections to such Tax Returns. In the event that the parties are unable to resolve in good faith any dispute prior to 15 days before the
due date, the Purchaser’s position shall prevail provided such position is reasonable, and Purchaser agrees to indemnify Sellers for their out-of-pocket expenses associated with any required amendment to such Tax Returns to the extent such
amendment is required as a consequence of taking such position. Notwithstanding the foregoing, Purchaser shall have no obligation to indemnify Sellers for Taxes under this Section 11.3, and all Liabilities of Purchaser with respect to
any such Taxes will be as set forth in Section 2.3. 
 11.4 Cooperation and Audits. Purchaser, its Affiliates and Sellers
shall cooperate fully with each other regarding tax matters (including the execution of appropriate powers of attorney) and shall make available to the other as reasonably requested all information, records and documents relating to taxes governed
by this Agreement until the expiration of the applicable statute of limitations or extension thereof or the conclusion of all audits, appeals or litigation with respect to such taxes. Without limiting the generality of the foregoing, Sellers shall
execute on or prior to the Closing Date a power of attorney authorizing Purchaser to correspond, sign, collect, negotiate, settle and administer all tax payments and Tax Returns. 
 ARTICLE XII 
 MISCELLANEOUS 
 12.1 No Survival of Representations and Warranties. The parties hereto agree that the representations and warranties contained in this Agreement
shall not survive the Closing hereunder and no Person shall have any liability for any breach thereof . The parties hereto agree that the covenants contained in this Agreement to be performed at or after the Closing shall survive the Closing
hereunder, and each party hereto shall be liable to the other after the Closing for any breach thereof. 
 12.2 Expenses. Except as
otherwise provided in this Agreement, each of Sellers and Purchaser shall bear its own expenses incurred in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated by this
Agreement and the consummation of the Transactions. Purchaser shall pay the filing fee required in connection with the HSR Act filing contemplated by Section 8.4(a). 
 12.3 Injunctive Relief. Damages at law may be an inadequate remedy for the breach of any of the covenants, promises or agreements contained in
this Agreement, and, accordingly, any party hereto shall be entitled to injunctive relief with respect to any such breach, including without limitation specific performance of such covenants, promises or agreements or an order enjoining a party from
any threatened, or from the continuation of any actual, breach of the covenants, promises or agreements contained in this Agreement. The rights set forth in this Section 12.3 shall be in addition to any other rights which a party hereto
may have at law or in equity pursuant to this Agreement. 
  

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 12.4 Submission to Jurisdiction; Consent to Service of Process. 
 (a) Without limiting any party’s right to appeal any order of the Bankruptcy Court, (i) the Bankruptcy Court shall retain exclusive jurisdiction
to enforce the terms of this Agreement and to decide any claims or disputes which may arise or result from, or be connected with, this Agreement, any breach or default hereunder, or the Transactions, and (ii) any and all proceedings related to
the foregoing shall be filed and maintained only in the Bankruptcy Court, and the parties hereby consent to and submit to the jurisdiction and venue of the Bankruptcy Court and shall receive notices at such locations as indicated in
Section 12.8 hereof; provided, however, that if the Bankruptcy Case has closed, the parties agree to unconditionally and irrevocably submit to the exclusive jurisdiction of the United States District Court for the District
of Delaware and any appellate court thereof, for the resolution of any such claim or dispute. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection which they may now or hereafter have to the laying
of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. 
 (b) Each of the parties hereto hereby consents to process being served by any party to
this Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of Section 12.8. 
 12.5 Waiver of Right to Trial by Jury. Each party to this Agreement waives any right to trial by jury in any action, matter or proceeding regarding this Agreement or any provision hereof. 
 12.6 Entire Agreement; Amendments and Waivers. This Agreement (including the schedules and exhibits hereto) collectively represent the entire
understanding and agreement between the parties hereto with respect to the subject matter hereof. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by written instrument making specific reference to
this Agreement signed by the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to this Agreement, including without limitation, any investigation by or on behalf of any
party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement
shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by law. 
 12.7 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to contracts made and performed in such State. 
  

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 12.8 Notices. All notices and other communications under this Agreement shall be in writing and
shall be deemed given (i) when delivered personally by hand, (ii) when sent by facsimile (with written confirmation of transmission) or (iii) one Business Day following the day sent by overnight courier (with written confirmation of
receipt), in each case at the following addresses and facsimile numbers (or to such other address or facsimile number as a party may have specified by notice given to the other party pursuant to this provision): 
 If to the Sellers, to: 
 Radnor Holdings Corporation 
 Radnor Financial Center, Suite A300 
 150 Radnor Chester Road 
 Radnor, PA, 19087 
 Attn: Carrie Williamson, Esq. 
 Tel: 
 Fax:

 with copies to: 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 One Rodney Square 
 P.O. Box 636 
 Wilmington DE 19801 
 Attn: Gregg M. Galardi, Esq. 
 Tel: 
 Fax:

 and 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 333 West Wacker Drive 
 Chicago, Illinois 60606 
 Attn: Timothy Pohl, Esq. 
 Tel: 
 Fax: 
 If to
Purchaser, to: 
 c/o Tennenbaum Capital Partners, LLC 
 2951 28th Street, Suite 1000 
 Santa Monica, California 90405 
 Attn: Jose Feliciano 
 Tel: 
 Fax:

  

 49 

 With copies to: 
 Tennenbaum Capital Partners, LLC 
 2951 28th Street, Suite 1000 
 Santa Monica, California 90405 
 Attn: General Counsel 
 Tel: 
 Fax: 
 and 
 Milbank, Tweed, Hadley & McCloy LLP 
 601 South Figueroa Street, 30th Floor 
 Los Angeles, California 90017-5735 
 Attn: Gregory A. Bray, Esq. 
 Tel: 
 Fax:

 12.9 Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any law
or public policy, all other terms or provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the Transactions is not affected in any manner materially adverse to any party. Upon
such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the Transactions are consummated as originally contemplated to the greatest extent possible. 
 12.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Nothing in this Agreement shall create or be deemed to create any third party
beneficiary rights in any Person or entity not a party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by either Sellers or Purchaser (by operation of law or otherwise) without the prior
written consent of the other parties hereto and any attempted assignment without the required consents shall be void; provided that Purchaser may assign some or all of its rights and obligations hereunder to one or more subsidiaries formed by
it prior to the Closing and/or, upon notice to the Company, to one or more Persons that Purchaser determines, in its sole discretion, to partner with in connection with the Transactions. No assignment of any obligations hereunder shall relieve the
parties hereto of any such obligations. Upon any such permitted assignment, the references in this Agreement to Sellers or Purchaser shall also apply to any such assignee unless the context otherwise requires. 
 12.11 General Release. 
 (a) Effective
upon the Closing Date, each Seller, on behalf of itself, and any Person claiming by, through, under, derivatively for, as agent for or on behalf of such Seller (collectively, the “Seller Group”), acknowledges that it has no claim,
counterclaim, setoff, recoupment, action or cause of action of any kind or nature whatsoever (including, for the 
  

 50 

 avoidance of doubt, actions for avoidance, subordination or recharacterization of any of Purchaser’s pre-Petition
Date Claims, Interests and Encumbrances and Liens in respect of Sellers) against (1) any of the Purchaser, the Tennenbaum Lenders, Tennenbaum Capital Partners, LLC, Tennenbaum & Company, LLC, and each of their respect managing members,
(2) any of their respective directors, officers, control persons (as defined in Section 15 of the Securities Exchange Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1933, as amended), members, employees,
agents, attorneys, financial advisors, legal representatives, shareholders, partners, successors and assigns solely in their capacity as such, and (3) any of their respective directors, officers, control persons, members or employees in their
capacity as a member on, or arising from their involvement with the activities of, the Board of Directors of any of the Sellers (including pursuant to board observer rights), (the Purchaser and all Persons referenced in clauses (1), (2) and
(3) are collectively referred to as the “Purchaser Group”), that directly or indirectly arise out of, are based upon, or in any manner connected with any Prior Event (as defined below) (collectively, “Released
Claims”); and, should any Released Claims nonetheless exist, each Seller on behalf of itself and all the other members of the Seller Group hereby (i) releases and discharges each member of the Purchaser Group from any liability
whatsoever on such Released Claims that directly or indirectly arise out of, are based upon, or in any manner connected with a Prior Event, and (ii) releases, remises, waives and discharges all such Released Claims against any member of the
Purchaser Group. As used herein the term “Prior Event” means any transaction, event, circumstances, action, failure to act or occurrence of any sort or type, including without limitation any approval or acceptance given or denied,
whether known or unknown, which occurred, existed, was taken, permitted or begun prior to the consummation of the Transactions contemplated hereunder. For the avoidance of doubt, “Prior Event” shall include but not be limited to any
transaction, event, circumstances, action, failure to act or occurrence of any sort or type which occurred, existed, was taken, permitted or begun in accordance with, pursuant to or by virtue of: (i) any terms of this Agreement or the Operative
Documents (as that term is defined in the Tennenbaum Credit Agreement), (ii) the transactions referred to herein and in the Operative Documents; (iii) the acquisition by any of Tennenbaum Lenders or any other of Purchaser Group of equity
interests in any of Sellers; (iv) the membership on, and involvement with the activities of, the Board of Directors of any of the Sellers (including pursuant to board observer rights); or (v) any oral or written agreement relating to any
of the foregoing (i) through (iv) of this sentence. 
 (b) Without limiting in any way the scope of the release contained in
subparagraph (a) immediately above and effective upon the Closing Date, each Seller, to the fullest extent allowed under applicable law, hereby waives and relinquishes for themselves and the other members of the Seller Group, all statutory and
common law protections purporting to limit the scope or effect of a general release, whether due to lack of knowledge of any claim or otherwise, including, waiving and relinquishing the terms of any law, like section 1542 of the California Civil
Code, which provides that a release may not apply to material unknown claims. Each Seller hereby affirms its intent to waive and relinquish such unknown Claims and to waive and relinquish any statutory or common law protection available in any
applicable jurisdiction with respect thereto. 
 12.12 Counterparts. This Agreement may be executed in one or more counterparts, each
of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. 
  

 51 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first written above. 
  

							
	PURCHASER:
	
	 TR ACQUISITION CO., INC.,
 a Delaware
corporation

		
	By:	 	 /s/ José Feliciano

	Name:	 	José Feliciano
	Title:	 	Authorized Signatory
		
	SELLERS:	 	
		
		 	Radnor Holdings Corporation
			
		 	By:	 	 /s/ Paul D. Ridder

		 		 	Paul D. Ridder
		 		 	Vice President and CFO
		
		 	Styrochem U.S., Ltd.
		 	By:	 	StyroChem GP, L.L.C.
		 	Its:	 	General Partner
		 		 	By:	 	Radnor Chemical Corporation
		 		 	Its:	 	Sole Member
			
		 	By:	 	 /s/ Paul D. Ridder

		 		 	Paul D. Ridder
		 		 	President
		
		 	Wincup Holdings, Inc.
			
		 	By:	 	 /s/ Paul D. Ridder

		 		 	Paul D. Ridder
		 		 	Vice President and CFO

			
	WinCup Texas, Ltd.
	By:	 	WinCup GP, L.L.C.
	Its: General Partner
		 	By: Wincup Holdings, Inc.
		 	Its: Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	Radnor Chemical Corporation
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	StyroChem Delaware, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	StyroChem GP, L.L.C.
	By:	 	Radnor Chemical Corporation
	Its: Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	StyroChem LP, L.L.C.
	By:	 	Radnor Chemical Corporation
	Its: Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President

			
	WinCup GP, L.L.C.
	By:	 	Wincup Holdings, Inc.
	Its:	 	Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	WinCup LP, L.L.C.
	By:	 	Wincup Holdings, Inc.
	Its:	 	Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	WinCup Europe Delaware, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	StyroChem Europe Delaware, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	Benchmark Holdings, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO

			
	Radnor Management, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	Radnor Management Delaware, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	WinCup RE, L.L.C.
	By:	 	Wincup Holdings, Inc.
	Its:	 	Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul Ridder
		 	Vice President and CFO
	
	Radnor Delaware II, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President
	
	Radnor Asset Management, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	Radnor Investments, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President

			
	Radnor Investments, L.L.C.
	By:	 	Radnor Investments II, Inc.
	Its:	 	Sole Member
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul Ridder
		 	Vice President and CFO
	
	Radnor Investments II, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	Vice President and CFO
	
	Radnor Investments III, Inc.
		
	By:	 	 /s/ Paul D. Ridder

		 	Paul D. Ridder
		 	President

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