Document:

ex-102.htm

 

Ex. 10.2

 

 

SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND LOAN INCREASE AGREEMENT (this “Agreement”), dated as of the 11th day of June, 2015 (the “Effective Date”) is between and among ATRION CORPORATION, a Delaware corporation, ATRION MEDICAL PRODUCTS, INC., a Delaware corporation, HALKEY-ROBERTS CORPORATION, a Delaware corporation,  QUEST MEDICAL, INC., a Texas corporation, ALATENN PIPELINE COMPANY, LLC, an Alabama limited liability company, and ATRION LEASING COMPANY, LLC, an Alabama limited liability company (collectively, the “Borrowers”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, successor by merger to Wachovia Bank, National Association (the “Lender”).

 

R E C I T A L S:

A.           Lender has heretofore established a credit facility for the Borrowers' benefit in the current maximum principal amount of Forty Million Dollars ($40,000,000) (the “Credit Facility”).  The Credit Facility is evidenced and secured by the following Loan Documents:

 

1.           Loan and Security Agreement dated November 12, 1999 (evidencing a Credit Facility in the original maximum principal amount of $18,500,000), as amended by the following documents, each duly executed by Borrowers and Lenders:   an Amendment to Loan and Security Agreement dated as of December 26, 2001; a Second Amendment to Loan and Security Agreement dated November 7, 2003 (which such Second Amendment, among other things, increased the principal balance of the Credit Facility to $25,000,000); a Third Amendment to Loan and Security Agreement dated September 1, 2005; a Fourth Amendment to Loan and Security Agreement dated July 1, 2008; a Fifth Amendment to Loan and Security Agreement dated September 30, 2008; and a Sixth Amendment to Loan and Security Agreement and Loan Increase Agreement dated October 1, 2011 (which such Sixth Amendment, among other things, increased the principal balance of the Credit Facility to $40,000,000) (as amended, the “Loan Agreement”); and

 

2.           Line of Credit Promissory Note dated November 12, 1999 in the original stated principal amount of $18,500,000, as amended by the following documents, each duly executed by Borrowers and Lenders: a Note Extension Agreement dated August 31, 2001; a Second Amendment to Line of Credit Promissory Note dated December 26, 2001 (which such Second Amendment, among other things, increased the principal balance of the Line of Credit Note to $25,000,000); a Third Amendment to Line of Credit Promissory Note dated November 7, 2003; a Fourth Amendment to Line of Credit Promissory Note dated September 1, 2005; a Fifth Amendment to Line of Credit Promissory Note dated July 1, 2008; and a Sixth Amendment to Line of Credit Promissory Note dated as of October 1, 2011 (which such Sixth Amendment, among other things, increased the principal balance of the Line of Credit Note to $40,000,000) (as amended, the “Line of Credit Note”), evidencing the Line of Credit Loan portion of the Credit Facility.

 

  

  

  

 

B.           The Credit Facility terminates on the Termination Date of October 1, 2016 and the outstanding principal balance of all Advances, together with accrued and unpaid interest thereon, is due and payable in full on the Termination Date of October 1, 2016.

 

C.           Borrowers have requested that the Termination Date be extended until October 1, 2021 and Lender has so agreed on the terms set forth below.

 

D.           To date, no Term Loans or Letters of Credit exist under the Credit Facility.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Defined Terms.  Capitalized terms used in this Agreement without definition shall have the meanings ascribed to them in the Loan Agreement.

 

Termination Date Extended. The Loan Agreement is hereby modified and amended to extend the Termination Date from October 1, 2016 until October 1, 2021, by deleting in its entirety the Defined Term “Termination Date” as the same appears in Section 1.1 of the Loan Agreement, and by inserting in lieu thereof the following:

 

“Termination Date” means October 1, 2021, or such earlier date on which the obligations of the Lender to make Advances hereunder are terminated pursuant to the terms of this Agreement.

 

Changes in Financial Covenants.   Section 5.17 is hereby modified and amended as follows:

 

	
  

	
(A)

	
Section 5.17 (c) (Consolidated Liabilities to Consolidated Tangible Net Worth ratio requirement) is hereby deleted.

 

The Compliance Certificate attached to the Loan Agreement as Exhibit G is deleted in its entirety, and replaced with the Revised Exhibit G which is attached to this Agreement.

 

4.           Acquisitions.  In consideration of this Agreement, Borrowers hereby ratify and confirm their agreement set forth in the Sixth Amendment to Loan and Security Agreement and Loan Increase Agreement that at no time prior to the Termination Date shall Borrowers (or any of them) purchase all or substantially all of the assets of any entity or any division of any entity or any operating line of business of any entity or the equity interest of any entity unless at such time there is no Event of Default and, after giving effect to such transaction, no Event of Default would exist on pro forma basis under the terms of the Loan Agreement.

 

  

  

  

 

5.           Additional Indebtedness. In consideration of this Agreement, Borrowers hereby ratify and confirm their agreement set forth in the Sixth Amendment to Loan and Security Agreement and Loan Increase Agreement that at no time prior to the Termination Date shall Borrowers (or any of them) incur or permit to exist any Indebtedness (as hereafter defined) unless at such time there is no Event of Default or, after giving effect to such Indebtedness, no Event of Default would exist on pro forma basis under the terms of the Loan Agreement.  Indebtedness” shall mean all liabilities of a Person as determined under GAAP and all obligations which such Person has guaranteed or endorsed or is otherwise secondarily or jointly liable for, and shall include, without limitation, (a) all obligations for borrowed money or purchased assets; (b) obligations secured by assets whether or not any personal liability exists; (c) the capitalized amount of any capital or finance lease obligations; (d) the unfunded portion of pension or benefit plans or other similar liabilities; (e) obligations as a general partner; (f) contingent obligations pursuant to guaranties, endorsements, letters of credit and other secondary liabilities; (g) obligations for deposits; and (h) obligations under Financial Contracts

 

6.           Sanctioned Persons; Sanctioned Countries.  Borrowers hereby represent and warrant that none of the Borrowers, their Subsidiaries or Affiliates or any guarantor (a) is a Sanctioned Person or (b) does business in a Sanctioned Country or with a Sanctioned Person in violation of the economic sanctions of the United States administered by OFAC.  Borrowers will not use the proceeds of any extension of credit under the Loan Agreement to fund any operation in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Country.  As used herein, the term “Sanctioned Country” means a country subject to the sanctions program identified on the list maintained by OFAC and available at the following website or as otherwise published from time to time:  http://www.treas.gov/offices/enforcement/ofac/programs/; the term “Sanctioned Person” means a) any Person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html or as otherwise published from time to time, (b) any agency, authority, or subdivision of the government of a Sanctioned Country, (c) any Person or organization controlled by a Sanctioned Country, or (d) any Person resident in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC; and the term “OFAC”“ means the United States Department of the Treasury’s Office of Foreign Assets Control or any successor thereto.

 

7.           Representations and Warranties.  All representations and warranties set forth in Article IV of the Loan Agreement are hereby ratified and confirmed by the Borrowers, and Borrowers confirm that such all representations and warranties remain in full force and effect and are true and correct as stated therein as of the date hereof.

 

8.           Amendment to Line of Credit Note.  Contemporaneously herewith, Borrowers and Lender have entered into that certain Seventh Amendment to Line of Credit Promissory Note pursuant to which the Termination Date set forth in the Line of Credit Note has been extended to October 1, 2021.  All references in the Loan Agreement to the “Line of Credit Note” shall henceforth refer to the Line of Credit Note, as amended by the Seventh Amendment to Line of Credit Promissory Note.

 

9.           Confirmation of Obligations.  Except as herein modified, the Loan Agreement shall remain in full force and effect, and the Loan Agreement is hereby ratified and affirmed in all respects.

 

  

  

  

 

10.           No Novation and No Release of Collateral.  The execution and delivery of this Agreement shall not be interpreted or construed as, and in fact does not constitute, a novation, payment, or satisfaction of all or any portion of the Loan Agreement; rather, this Agreement is strictly amendatory in nature.  The execution, delivery, and performance of this Agreement shall not operate to release any Collateral securing the Credit Facility nor modify or otherwise affect the lien and security interest held by Lender in and to such Collateral.

 

11.           Counterparts.  This Agreement may be executed in multiple counterparts and using multiple signature pages and shall be binding and enforceable at such time as each party has executed a counterpart of this Agreement.  The signature of any party to a counterpart of this Agreement shall bind such party to the same extent as if all parties executed a single original hereof.

 

12.           Interpretation.  No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party to this Agreement by any court or other governmental or judicial authority by reason of such party's having or being deemed to have structured or dictated such provision.

 

13.           Integration.  Borrowers acknowledge and agree that no promises, agreements, understandings, or commitments of any nature whatsoever have been made by or on behalf of Lender in respect to the Credit Facility and the Loan Agreement, except as set forth herein.  Specifically, Borrowers acknowledge and agree that Lender has made no agreement, and is in no way obligated, to grant any extension, indulgence, forbearance, or consent with respect to the Credit Facility or any matter relating to the Credit Facility, except as specifically set forth herein.

 

14.           Release of Lender.  In consideration of Lender's execution of this Agreement, and without any contingency, precondition, or condition subsequent, the Borrowers, for and on behalf of themselves and all those claiming by, through or under them, including, without limitation, their respective heirs, administrators, executors, beneficiaries, parents, subsidiaries, affiliates, owners, successors and assigns, do hereby fully and forever remise, release, relinquish, discharge, settle and compromise any and all claims, cross-claims, counterclaims, causes, damages and actions of every kind and character, and all suits, costs, damages, expenses, compensation and liabilities of every kind, character and description, whether direct or indirect, known or unknown, in law or in equity, which any of them now have or will have against Lender, and/or any of its affiliates, agents, representatives, officers, employees, attorneys, advisors, consultants or contractors on account of, arising  out of, or resulting from, or in any manner incidental or related to, any and every thing or event occurring or failing to occur at any time in the past up to and including the Effective Date, including, without limitation, any claims relating to the Loan Documents, the Collateral, Lender’s administration of the Loan Documents or the Collateral, this Agreement, or any other transaction contemplated by this Agreement.

 

15.           Severability.  If any provisions of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

 

  

  

  

 

16.           Waiver of Jury Trial.  BORROWERS HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATED TO LOAN OBLIGATION, THIS AGREEMENT, OR ANY OTHER LOAN DOCUMENT, OR IN ANY WAY CONNECTED WITH OR PERTAINING OR RELATED TO OR INCIDENTAL TO ANY DEALINGS OF LENDER AND BORROWERS WITH RESPECT TO THE LOAN OBLIGATIONS, THIS AGREEMENT, AND ANY OTHER LOAN DOCUMENT, OR IN CONNECTION WITH THE TRANSACTIONS RELATED HERETO OR CONTEMPLATED HEREBY OR THE EXERCISE OF ANY PARTY'S RIGHTS AND REMEDIES WITH RESPECT TO THE LOAN OBLIGATIONS, THIS AGREEMENT, OR OTHERWISE, OR THE CONDUCT OF THE RELATIONSHIP OF THE PARTIES HERETO, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  BORROWERS ACKNOWLEDGE THAT LENDER MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED AGREEMENT OF THE BORROWERS IRREVOCABLY TO WAIVE THEIR RIGHTS TO TRIAL BY JURY, AND THAT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY DISPUTE OR CONTROVERSY WHATSOEVER BETWEEN BORROWERS AND LENDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

[Signatures on Following Pages]

 

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

 

BORROWERS:

	 	
ATRION CORPORATION,

a Delaware corporation

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	Jeffery Strickland	 
	 	 	
Its Vice President

	 
	 	 	 	 

	 	
ATRION MEDICAL PRODUCTS, INC.,

a Delaware corporation

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	
Jeffery Strickland

	 
	 	 	
Its Vice President

	 
	 	 	 	 

	 	
HALKEY-ROBERTS CORPORATION,

a Delaware corporation

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	
Jeffery Strickland

	 
	 	 	
Its Vice President

	 
	 	 	 	 

	 	
QUEST MEDICAL, INC.,

a Texas corporation

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	
Jeffery Strickland

	 
	 	 	
Its Vice President

	 
	 	 	 	 

  

  

  

	 	
ALATENN PIPELINE COMPANY, LLC,

an Alabama limited liability company

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	Jeffery Strickland	 
	 	 	
Its Vice President

	 
	 	 	 	 

	 	
ATRION LEASING COMPANY, LLC,

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jeffery Strickland	 
	 	 	
Jeffery Strickland

	 
	 	 	
Its Vice President

	 
	 	 	 	 

LENDER:

	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

a national banking association

	 
	 	 	 	 
	
  

	
By: 

	/s/ Jason Ford	 
	 	 	Jason Ford	 
	 	 	
 Vice President

	 
	 	 	 

 

  

  

  

 

 

REVISED EXHIBIT G

 

COMPLIANCE CERTIFICATE

 

Wells Fargo Bank, N.A.

4975 Preston Park Blvd.

Suite 280

Plano, Texas 75093

	
  

	
RE:

	
Loan and Security Agreement dated November 12, 1999 (evidencing a Credit Facility in the original maximum principal amount of $18,500,000), as amended by the following documents, each duly executed by Borrowers and Lenders:   an Amendment to Loan and Security Agreement dated as of December 26, 2001; a Second Amendment to Loan and Security Agreement dated November 7, 2003 (which such Second Amendment, among other things, increased the principal balance of the Credit Facility to $25,000,000); a Third Amendment to Loan and Security Agreement dated September 1, 2005; a Fourth Amendment to Loan and Security Agreement dated July 1, 2008; a Fifth Amendment to Loan and Security Agreement dated September 30, 2008; and a Sixth Amendment to Loan and Security Agreement and Loan Increase Agreement dated October 1, 2011 (which such Sixth Amendment, among other things, increased the principal balance of the Credit Facility to $40,000,000), as amended by Seventh Amendment to Loan and Security Agreement dated June 11, 2015 (as amended, the “Loan Agreement”; all defined terms used in this Compliance Certificate shall have the meanings ascribed to them in the Loan Agreement)

 

The undersigned officer of the Atrion Corporation does hereby certify that for the quarterly financial period ending ________________________:

 

	
1.

	
No Default or Event of Default has occurred or exists except                                                                                                                 .

 

	
2.

	
The Consolidated Net Income for the Group, based upon the preceding twelve (12) months through the end of such period, was:

 

Required:                      Not less than $1,000,000

Actual:                                

 

	
3.

	
The Consolidated Fixed Charge Coverage ratio through the end of such period was:

 

Required:                      Not less than 1.75 to 1.0

	
Actual:

	 	 

 

	
4.

	
The ratio of Funded Debt to EBITDA through the end of such period was:

 

Required:                      Not more than 2.25 to 1.0

Actual:                                

 

 

  

  

  

 

	
5.

	
All representations and warranties contained in Article IV of the Loan Agreement, as the same may have been supplemented from time to time in accordance with the provisions of Section 5.1(c) of the Loan Agreement, are true and correct as though given on the date hereof, except

	
.

 

	
6.

	
The undersigned hereby certifies that all information provided herein is true and correct.

 

ATRION CORPORATION

 

BY:           ____________________________________

Name:           ____________________________________

Title:           ____________________________________

 

Dated this the ______ day of ______________________, ______.EX-10.2

 Exhibit 10.2 

ASSET PURCHASE AGREEMENT 

AMONG 
 SLMTI DS LLC

 SL MONTEVIDEO TECHNOLOGY, INC., 

AND 
 ITT TORQUE
SYSTEMS, INC. 
 DATED MAY 22, 2015 

 TABLE OF CONTENTS 

 

									
	 	  	 	  	Page	 
		
	 ARTICLE I           Definitions
	  	 	1	 
		
	 ARTICLE II          Purchase and Sale
	  	 	9	 
				
		 	Section 2.1	  	Terms of Purchase and Sale	  	 	9	 
		 	Section 2.2	  	The Closing	  	 	9	 
		 	Section 2.3	  	Closing Deliveries	  	 	10	 
		 	Section 2.4	  	Assignment and Assumption	  	 	10	 
		 	Section 2.5	  	Non-Assumption of Liabilities	  	 	11	 
		 	Section 2.6	  	Instruments of Conveyance	  	 	11	 
		 	Section 2.7	  	Allocation of Purchase Price	  	 	11	 
		 	Section 2.8	  	Purchase Price Adjustment	  	 	12	 
		 	Section 2.9	  	Real Estate Taxes	  	 	14	 
		
	 ARTICLE III         Representations and Warranties of the Seller
	  	 	14	 
				
		 	Section 3.1	  	Organization and Qualification of the Seller	  	 	14	 
		 	Section 3.2	  	Due Authorization; Authority of Seller; Enforceability	  	 	14	 
		 	Section 3.3	  	No Violation	  	 	14	 
		 	Section 3.4	  	Assets	  	 	15	 
		 	Section 3.5	  	Affiliated Businesses	  	 	15	 
		 	Section 3.6	  	Subsidiaries	  	 	15	 
		 	Section 3.7	  	Financial Statements	  	 	15	 
		 	Section 3.8	  	Events Since the Balance Sheet Date	  	 	16	 
		 	Section 3.9	  	Absence of Undisclosed Liabilities	  	 	17	 
		 	Section 3.10	  	Real Property	  	 	17	 
		 	Section 3.11	  	Personal Property	  	 	20	 
		 	Section 3.12	  	Contracts and Commitments	  	 	20	 
		 	Section 3.13	  	Suppliers and Customers	  	 	21	 
		 	Section 3.14	  	Insurance	  	 	22	 
		 	Section 3.15	  	Labor Agreements and Actions	  	 	22	 
		 	Section 3.16	  	Employee Benefit Plans	  	 	23	 
		 	Section 3.17	  	Taxes	  	 	24	 
		 	Section 3.18	  	Legal Proceedings	  	 	25	 
		 	Section 3.19	  	Judgments, Decrees and Orders	  	 	25	 
		 	Section 3.20	  	Compliance With Laws	  	 	25	 
		 	Section 3.21	  	Environmental Matters	  	 	26	 
		 	Section 3.22	  	Consummation of this Transaction	  	 	27	 
		 	Section 3.23	  	Intellectual Property.	  	 	27	 
		 	Section 3.24	  	Employees	  	 	29	 
		 	Section 3.25	  	Brokers or Finders	  	 	29	 
		 	Section 3.26	  	Powers of Attorney	  	 	29	 
		 	Section 3.27	  	Accounts Receivable	  	 	29	 
		 	Section 3.28	  	Accounts Payable	  	 	29	 
		 	Section 3.29	  	Product Warranties	  	 	30	 
		 	Section 3.30	  	Ordinary Course	  	 	30	 

 TABLE OF CONTENTS 

(Continued) 
  

									
	 	 	 	  	 	  	Page	 
		
	 ARTICLE IV        Representations and Warranties of the Purchaser and
Parent
	  	 	30	 
				
		 	 Section 4.1
	  	Corporate Organization	  	 	30	 
		 	 Section 4.2
	  	Due Authorization; Authority of Purchaser and Parent; Enforceability	  	 	30	 
		 	 Section 4.3
	  	No Violation	  	 	31	 
		 	 Section 4.4
	  	Financing	  	 	31	 
		 	 Section 4.5
	  	Brokers or Finders	  	 	31	 
		
	 ARTICLE V         Covenants
	  	 	31	 
				
		 	 Section 5.1
	  	Title Insurance and Survey	  	 	31	 
		 	 Section 5.2
	  	Seller Mail	  	 	32	 
		 	 Section 5.3
	  	Collection; Inquiries	  	 	32	 
		 	 Section 5.4
	  	Business Relations	  	 	32	 
		 	 Section 5.5
	  	Business Referrals	  	 	32	 
		 	 Section 5.6
	  	Non-Competition	  	 	32	 
		 	 Section 5.7
	  	Use of Seller Names and Marks	  	 	34	 
		 	 Section 5.8
	  	Warranty Obligations	  	 	34	 
		
	 ARTICLE VI        Survival and Indemnification
	  	 	34	 
				
		 	 Section 6.1
	  	Survival of Representations and Warranties	  	 	34	 
		 	 Section 6.2
	  	Indemnification	  	 	35	 
		 	 Section 6.3
	  	Limitations on Liabilities	  	 	36	 
		 	 Section 6.4
	  	Indemnification Procedure as to Third Party Claims	  	 	37	 
		 	 Section 6.5
	  	Other Indemnification Claims	  	 	38	 
		 	 Section 6.6
	  	Sole Remedy	  	 	38	 
		
	 ARTICLE VII      Employees and Employee Benefits
	  	 	38	 
				
		 	 Section 7.1
	  	Employment	  	 	38	 
		 	 Section 7.2
	  	Compensation and Employee Benefits	  	 	38	 
		 	 Section 7.3
	  	Healthcare Plans	  	 	39	 
		 	 Section 7.4
	  	Seller Savings Plan	  	 	40	 
		 	 Section 7.5
	  	Terminations or Layoffs	  	 	40	 
		 	 Section 7.6
	  	Vacation; Sick Time	  	 	40	 
		 	 Section 7.7
	  	Flexible Spending Accounts	  	 	40	 
		 	 Section 7.8
	  	Disability	  	 	40	 
		 	 Section 7.9
	  	Assistance	  	 	41	 
		 	 Section 7.10
	  	No Assumption of Plans	  	 	41	 
		 	 Section 7.11
	  	Purchaser’s Actions	  	 	41	 
		 	 Section 7.12
	  	No Third Party Rights	  	 	41	 
		 	 Section 7.13
	  	M&A Qualified Beneficiaries	  	 	41	 
		 	 Section 7.14
	  	No Modification	  	 	41	 
	 	 	 	  	 	  	 	 

 TABLE OF CONTENTS 

(Continued) 
  

									
	 	 	 	  	 	  	Page	 
	 	 	 	  	 	  	 	 
	 ARTICLE VIII      Miscellaneous
	  	 	41	 
				
		 	 Section 8.1
	  	Books and Records	  	 	41	 
		 	 Section 8.2
	  	Further Assurances and Assistance	  	 	42	 
		 	 Section 8.3
	  	Press Releases and Public Announcements	  	 	42	 
		 	 Section 8.4
	  	Notices	  	 	42	 
		 	 Section 8.5
	  	Transaction Expenses	  	 	43	 
		 	 Section 8.6
	  	Bulk Transfer Laws	  	 	44	 
		 	 Section 8.7
	  	Miscellaneous Taxes and Expenses	  	 	44	 
		 	 Section 8.8
	  	Successors and Assigns	  	 	44	 
		 	 Section 8.9
	  	Governing Law	  	 	44	 
		 	 Section 8.10
	  	Disputes	  	 	44	 
		 	 Section 8.11
	  	Entire Agreement; Third Party Rights	  	 	44	 
		 	 Section 8.12
	  	Amendment; Waiver	  	 	44	 
		 	 Section 8.13
	  	Effect of Captions	  	 	44	 
		 	 Section 8.14
	  	Counterparts	  	 	45	 

 Exhibits and Schedules: 
  

			
	 Exhibit A
	  	Assumed Liabilities
	 Exhibit B
	  	Excluded Assets
	 Exhibit C
	  	Form of Bill of Sale
	 Exhibit D
	  	Form of Assignment and Assumption Agreement
	 Exhibit E
	  	Form of Transition Services Agreement
	 Exhibit F
	  	Form of Deed
	 Exhibit G
	  	Allocation of Purchase Price
	 Exhibit H
	  	Form of Guaranty
		
	 Schedule 1.1
	  	 Permitted Exceptions

		
	 Schedule 1.2
	  	 Products

		
	 Schedule 1.3
	  	 Purchased Assets

		
	 Schedule 1.4
	  	 Additional Purchased Assets

		
	 Schedule 2.4
	  	 Assigned Contracts

		
	 Schedule 2.5
	  	 Excluded Liabilities

		
	 Schedule 2.8(a)
	  	 Working Capital Calculation Sample

		
	 Schedule 3.1
	  	 Foreign Qualifications of Seller

		
	 Schedule 3.3
	  	 No Violation

		
	 Schedule 3.4
	  	 Assets

		
	 Schedule 3.5
	  	 Affiliated Businesses

		
	 Schedule 3.7(a)
	  	 Financial Statements

		
	 Schedule 3.7(b)
	  	 Allotted Charges and Credits

		
	 Schedule 3.8
	  	 Events Since the Balance Sheet Date

		
	 Schedule 3.10(a)
	  	 Owned Real Property

		
	 Schedule 3.10(c)
	  	 Improvements

		
	 Schedule 3.10(d)(vi)
	  	 Material Plans and Specifications of Owned Real Property

		
	 Schedule 3.10(g)
	  	 Agreements with Real Estate Broker, Agent or Finder

		
	 Schedule 3.10(i)
	  	 Condition of Real Property

		
	 Schedule 3.10(m)
	  	 Owned Real Property Insurance Policy Requirements

		
	 Schedule 3.11(c)
	  	 Inventory Quality

		
	 Schedule 3.11(d)
	  	 Personal Property Leases

		
	 Schedule 3.12(a)
	  	 Contracts and Commitments

		
	 Schedule 3.12(c)
	  	 Consent or Termination of Contracts

		
	 Schedule 3.13(a)
	  	 Suppliers and Customers

		
	 Schedule 3.14
	  	 Insurance

			
		
	 Schedule 3.15
	  	 Labor Agreements and Actions

		
	 Schedule 3.16(a)
	  	 Employee Benefit Plans

		
	 Schedule 3.16(d)
	  	 Termination of Benefit Plans

		
	 Schedule 3.18
	  	 Legal Proceedings

		
	 Schedule 3.20(b)
	  	 Compliance with Laws

		
	 Schedule 3.20(c)
	  	 Material Adverse Effect and Permits

		
	 Schedule 3.20(d)
	  	 Governmental Authorization

		
	 Schedule 3.20(e)
	  	 Product Regulatory Requirements

		
	 Schedule 3.21(a)
	  	 Compliance with Environmental Laws

		
	 Schedule 3.21(b)
	  	 Environmental Permits

		
	 Schedule 3.21(d)
	  	 Hazardous Substances

		
	 Schedule 3.21(e)
	  	 Environmental Claims

		
	 Schedule 3.21(f)
	  	 Investigation under Environmental Laws

		
	 Schedule 3.23(a)
	  	 Industrial Property

		
	 Schedule 3.23(c)
	  	 Intellectual Property Contracts

		
	 Schedule 3.23(h)
	  	 Off the Shelf Software

		
	 Schedule 3.24(a)
	  	 Employees

		
	 Schedule 3.24(b)
	  	 Vacation and Sick Hours

		
	 Schedule 3.26
	  	 Powers of Attorney

		
	 Schedule 3.27
	  	 Accounts Receivable

		
	 Schedule 4.3
	  	 Required Consents

		
	 Schedule 7.1
	  	 Offered Employees

		
	 Schedule 7.2
	  	 Severance Policies

 ASSET PURCHASE AGREEMENT 

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of May 22, 2015 by and among SLMTI DS LLC, a Delaware limited
liability company (the “Purchaser”), SL Montevideo Technology, Inc., a Minnesota corporation and parent of Purchaser (the “Parent”), and ITT Torque Systems, Inc. an Ohio corporation (the “Seller”). 

W I T N E S S E T H: 
 WHEREAS,
the Purchaser and the Parent are affiliated entities; 
 WHEREAS, the Seller owns the Purchased Assets (as hereinafter defined); 

WHEREAS, the parties hereto desire that the Seller sell the Purchased Assets to the Purchaser, and that the Purchaser purchase the Purchased
Assets from the Seller; 
 NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 

Whenever used in this Agreement the following terms shall have the following respective meanings: 

“AAA” has the meaning ascribed thereto in Section 8.10. 

“Accounts Payable” means, without duplication, any and all trade and accounts payable of Seller with respect to the Business. 

“Accounts Receivable” means accounts receivable (billed and unbilled) and other obligations owed to Seller with respect to the
Business. 
 “Acquired Business” has the meaning ascribed thereto in Section 5.6(a). 

“Assigned Contracts” has the meaning ascribed thereto in Section 2.4(a). 

“Assignment and Assumption Agreement” means the Assignment and Assumption Agreement in the form attached as Exhibit D
hereto. 
 “Associate” means with respect to any Person any other Person directly or indirectly controlling, controlled by or
under common control with such specified Person. For purposes of this definition, control means ownership of more than 50% of the shares or other equity interest having power to elect directors or persons performing a similar function. 

“Assumed Liabilities” means the liabilities of the Seller set forth in Exhibit A. 

“Assumed Warranty Obligations” means all Warranty Obligations other than the Excluded Warranty Obligations. 

 “Balance Sheet Date” has the meaning ascribed thereto in Section 3.7. 

“Bill of Sale” means the Bill of Sale in the form attached as Exhibit C hereto. 

“Benefit Plans” means plans, contracts, agreements, practices, policies or arrangements, whether oral or written, providing for any
bonuses, deferred compensation, pension, retirement benefits, excess benefits, profit sharing, stock bonuses, stock options, stock purchases, life, accident and health insurance, hospitalization, savings, holiday, vacation, severance pay, sick pay,
sick leave, disability, tuition refund, service awards, company car, scholarship, relocation, or any other employee or executive benefits, including, without limitation, any such plan, contract, agreement, practice, policy or arrangement which is an
“employee benefit plan” as defined in Section 3(3) of ERISA, including any Welfare Plan, any Pension Plan, and any Multiemployer Plan. 

“Bonds” means the $2,930,000 original principal amount of Massachusetts Development Finance Agency Multi-Mode Variable Rate
Industrial Revenue Bonds (Cleveland Motion Controls, Inc. Issue, Series 2001). 
 “Business” means the Seller’s business of
designing and manufacturing engineered motion control products, including brush servo motors, brushless servo motors, incremental encoders, and linear actuators. 

“Business Day” means any day other than a Saturday, Sunday or any other day on which commercial banks located in New York City are
authorized or required by Law to be closed for business. 
 “Claim” has the meaning ascribed thereto in Section 6.5. 

“Closing” has the meaning ascribed thereto in Section 2.2. 

“Closing Adjustment” has the meaning set forth in Section 2.8(a)(ii). 

“Closing Date” has the meaning ascribed thereto in Section 2.2. 

“Closing Payment” has the meaning ascribed thereto in Section 2.1(c). 

“Closing Working Capital” means (a) the Current Assets of the Business, less (b) the Current Liabilities of the Business,
determined as of the close of business at 11:59 p.m. on the Business Day immediately preceding the Closing Date. 
 “Closing Working
Capital Statement” has the meaning set forth in Section 2.8(b). 
 “COBRA” means the requirements of Part 6 of Subtitle
B of Title I of ERISA and Code Section 4980B. 
 “Code” has the meaning ascribed thereto in Section 3.16(b). 

“Competing Operations” has the meaning ascribed thereto in Section 5.6(a). 

 “Contract” means contracts, agreements, purchase orders, plans, leases, licenses and
franchises relating primarily or exclusively to the Business. 
 “Current Assets” means, as of a given date, the Accounts
Receivable and Inventory on such date. 
 “Current Liabilities” means, as of a given date, the Accounts Payable on such date. 

“Deed” means the warranty deed in the form of Exhibit F hereto. 

“Disability” or “Disabled” means any illness or injury or any other reason that an Offered Employee has missed work,
except for taking vacation or personal leave time, or working part-time. 
 “Dispute” has the meaning ascribed thereto in
Section 6.6. 
 “Disputed Amounts” has the meaning set forth in Section 2.8(c)(iii). 

“Effective Benefits Time” has the meaning ascribed thereto in Section 7.3(b)(i). 

“Environmental Indemnitee” has the meaning ascribed thereto in Section 6.4(a). 

“Environmental Laws” means Laws relating to (i) emission, discharge, release or threatened release of Hazardous Substances,
into the environment (including, without limitation, the air, surface water, ground water, land, natural resources or subsurface strata) or (ii) the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or
handling of Hazardous Substances or (iii) the protection of public health, safety or the environment. 
 “Environmental Side
Letter” means that certain side letter regarding environmental matters concerning the Owned Real Property and facilities previously owned or operated by Seller or its predecessors. 

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

“Excluded Assets” means the assets of Seller set forth in Exhibit B. 

“Excluded Liabilities” has the meaning ascribed thereto in Section 2.5. 

“Existing Surveys” has the meaning ascribed thereto in Section 3.10(a). 

“Existing Title Policies” has the meaning ascribed thereto in Section 3.10(a). 

“Excluded Warranty Obligations” means all Warranty Obligations that are (i) in excess of an aggregate of $35,000 in any
12-month period, and (ii) incurred during the 18-month period immediately following the Closing. 
 “Financial Statements”
has the meaning ascribed thereto in Section 3.7. 

 “Fundamental Representations” means, with respect to Seller, the representations and
warranties set forth in Sections 3.1 (Organization and Qualification of Seller), 3.2 (Due Authorization; Authority of Seller; Enforceability), 3.4(a) (Assets) and 3.25 (Brokers or Finders) and with respect to Purchaser, the representations and
warranties set forth in Sections 4.1 (Corporate Authorization), 4.2 (Due Authorization; Authority of Purchaser and Parent; Enforceability), and 4.5 (Brokers or Finders). 

“GAAP” means generally accepted accounting principles in the United States in effect from time to time as applied in a consistent
manner by the Seller. 
 “Governmental Authority” means any (a) nation, region, state, county, city, town, village, district
or other jurisdiction, (b) federal, state, local, municipal, foreign or other government, (c) governmental or quasi–governmental authority of any nature (including any governmental agency, branch, department or other entity and any
court or other tribunal), (d) multinational organization exercising judicial, legislative or regulatory power or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or
taxing authority or power of any nature of any federal, state, local, municipal, foreign or other government. 
 “Guarantor” means
ITT. 
 “Guaranty” means the guaranty attached hereto as Exhibit H. 

“Hazardous Substances” means solid waste and pollutants, contaminants, or hazardous or toxic substances, materials or wastes
including, but not limited to, (a) those substances defined as hazardous substances or pollutants or contaminants under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time
to time (42 U.S.C. Section 9601); (b) those substances defined as hazardous wastes under Section 1004 of the Resource Conservation and Recovery Act, as amended from time to time (42 U.S.C. Section 6903); (c) those substances
regulated under the Toxic Substances Control Act, as amended from time to time (15 U.S.C. Sections 2601 et seq.); (d) petroleum, including crude oil or any fraction thereof; and (e) those substances regulated under any applicable Law due
to their known or suspected ability to cause harm to human health, safety or the environment. 
 “Improvements” means buildings
and other improvements on the Owned Real Property. 
 “Indemnitee” has the meaning ascribed thereto in Section 6.5. 

“Indemnitor” has the meaning ascribed thereto in Section 6.5. 

“Independent Accountant” has the meaning ascribed thereto in Section 2.8(b)(iii). 

“Industrial Property” means patents, copyright registrations, mask work registrations, trademark and service mark registrations,
domain names, social media accounts and applications for any of the foregoing, relating or used primarily or exclusively in the Business. 

“Industrial Property Assignments” means the Trademark and Copyright Assignment and the Domain Name, Social Media Account Assignment
related to the Industrial Property. 

 “Intellectual Property” means Industrial Property and inventions, invention studies
(whether patentable or unpatentable), unregistered: designs, copyrights, mask works, trademarks, service marks, trade dress, trade names, secret formulae, trade secrets, secret processes, computer programs embedded in Products, confidential
information, license agreements and know-how relating or used primarily or exclusively in the Business. 
 “Interim Financial
Statements” has the meaning ascribed thereto in Section 3.7(a). 
 “Inventory” to the extent owned by Seller, all
estimated work-in-progress including capitalized variances, raw materials, and finished goods used in the Business. 
 “ITT” means
ITT Corporation, an Indiana corporation and the ultimate parent of the Seller. 
 “Laws” means laws (including, without
limitation, common law), ordinances, codes, standards, rulings, orders, directives, decrees, regulations or requirements of any Governmental Authority. 

“Liens” has the meaning ascribed thereto in Section 3.4. 

“Licensed Intellectual Property” means all Intellectual Property that is licensed to Seller by a third party and is used or held for
use in the conduct of the Business. 
 “Losses” has the meaning ascribed thereto in Section 6.2. 

“Major Customer” has the meaning ascribed thereto in Section 3.13(a)(iv). 

“Major Supplier” has the meaning ascribed thereto in Section 3.13(a)(i). 

“Material Adverse Effect” means any change, event, occurrence, effect, development or circumstance that, individually or in the
aggregate with all other changes, events, occurrences, effects, developments or circumstances, is or would reasonably be expected to be likely to be materially adverse to: (a) the Business, assets, liabilities, financial condition or results of
operations of the Business, taken as a whole; or (b) the ability of Seller to consummate the transactions contemplated by this Agreement; provided, however, that any change, event, occurrence, effect, development or circumstance
arising out of or in connection with (i) changes in global, national or regional political conditions or general business, economic or market conditions, including changes in prevailing interest rates, currency exchange rates and price levels
or trading volumes in the United States or foreign securities markets; (ii) changes in the credit, financial, banking, securities or commodities markets (including any disruption thereof and any decline in the price of any security, commodity
or any market index, any downgrades in the credit markets, or adverse credit events resulting in deterioration in the credit markets generally), (iii) conditions generally affecting the industry in which the Seller operates,
(iv) earthquakes, hurricanes, floods or other natural disasters, (v) hostilities, acts of war, sabotage or 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, (vi) changes in any Laws or accounting rules, (vii) any adverse change in or effect on the Business that is cured prior to Closing, or (viii) the public announcement of this
Agreement or the 

 
transactions contemplated hereby, any action taken by a party hereto in accordance with this Agreement or the consummation of the transactions contemplated hereby, shall not be taken into account
in determining whether a “Material Adverse Effect” has occurred, except, with respect to clauses (i) through (vi) of this definition, to the extent such change, event, occurrence, effect, development or circumstance materially
disproportionately impacts the Seller as compared to other Persons engaged in the industries in which the Seller conducts the Business. 

“Mortgage” means a mortgage, deed of trust, deed to secure debt or other security instrument which is a lien on or title interest in
real property or leased real property, including any notes or bonds secured thereby. 
 “Multiemployer Plan” means multiemployer
plan” as defined in Section 3(37) of ERISA. 
 “Offered Employees” has the meaning ascribed thereto in Section 7.1.

 “Owned Real Property” has the meaning ascribed thereto in Section 3.10(a). 

“Parent” has the meaning ascribed thereto in the preamble of this Agreement. 

“Pension Plan” means “employee pension benefit plan” as defined in Section 3(2) of ERISA. 

“Permits” means permits, licenses, franchises, certifications, approvals, consents waivers, and other authorizations from public
authorities. 
 “Permitted Exceptions” means: (a) liens for any current real estate or ad valorem taxes or assessments not
yet delinquent or being contested in good faith by appropriate proceeding, as disclosed on Schedule 1.1 hereto; and (b) inchoate mechanic’s, materialmen’s, laborer’s, and carrier’s liens and other similar inchoate liens
arising by operation of law or statute in the ordinary course of the business of the Business for obligations which are not delinquent and which will be paid or discharged in the ordinary course of such business. 

“Person” means an individual, partnership, corporation, business trust, limited liability company, limited liability partnership,
joint venture or other entity, or a government entity. 
 “Post-Closing Adjustment” has the meaning set forth in
Section 2.8(b)(ii). 
 “Products” means the products of the Business, including those listed on Schedule 1.2 hereto. 

“Purchase Price” has the meaning ascribed thereto in Section 2.1(b). 

“Purchased Assets” means all the assets of the Seller used or held for use primarily or exclusively in the Business, other than
Excluded Assets, including but not limited to the following: 
 (a) the Owned Real Property; 

 (b) the Improvements; 

(c) fixed assets, machinery and equipment, including the vehicles listed on Schedule 1.3 hereto, together with all assignable
warranties by the manufacturers or sellers of those items, and all maintenance records, brochures, catalogues and other documents and software relates to those items or to the installation or function of those items, which Seller has in its
possession or that are in the possession of Seller’s vendors or service providers; 
 (d) furniture and fixtures; 

(e) Inventory; 
 (f) Accounts
Receivable; 
 (g) prepaid expenses; 

(h) the Permits indicated as being transferable to Purchaser and listed on Schedule 3.20(c) and Schedule 3.21(b) hereto; 

(i) all Assigned Contracts; 

(j) all customer lists and business records; 

(k) all Intellectual Property; 

(l) goodwill associated with the Business; 

(m) supplies; 
 (n) intangible
property rights, including, but not limited to confidentiality, non-competition, non-solicitation and similar obligations related to the Business and all causes of action, claims and rights to recovery or offset of any kind or character arising from
or relating to events occurring after the Closing Date concerning the Business, the Purchased Assets or the Assumed Liabilities; and 
 (o)
the other assets listed on Schedule 1.4 hereto. 
 “Purchaser” has the meaning ascribed thereto preamble of this Agreement. 

“Purchaser Indemnitee” has the meaning ascribed thereto in Section 6.2. 

“Purchaser’s Welfare Benefits Program” has the meaning ascribed thereto in Section 7.3(b)(i). 

“Qualified Benefit Plan” has the meaning ascribed thereto in Section 3.16(b). 

“Real Property” means real property and interests in real property. 

 “Required Consents” means the consents, filings and notices set forth on Schedule
3.12(c), Schedule 3.20(d) and
 Schedule 3.21(b). 
 “Resolution Period” has the meaning ascribed thereto in
Section 2.8(b)(ii). 
 “Restrictions” has the meaning ascribed thereto in Section 3.10(a). 

“Restricted Parties” has the meaning ascribed thereto in Section 5.6(a). 

“Restricted Period” has the meaning ascribed thereto in Section 5.6(a). 

“Review Period” has the meaning ascribed thereto in Section 2.8(b)(i). 

“Salaried Employees” has the meaning ascribed thereto in Section 3.24(a). 

“Seller” has the meaning ascribed thereto on page 1 of this Agreement. 

“Seller’s Knowledge” or “Knowledge of Seller” means the Seller’s knowledge, including the knowledge of James
Farley, Richard Duray, and Arvind Ramani, in each case after due inquiry. 
 “Seller Indemnitee” has the meaning ascribed thereto
in Section 6.2. 
 “Seller Savings Plan” has the meaning ascribed thereto in Section 7.4. 

“Seller’s Welfare Benefits Program” has the meaning ascribed thereto in Section 7.3(b)(i). 

“Statement of Objections” has the meaning ascribed thereto in Section 2.8(b)(ii). 

“Survival Periods” has the meaning ascribed thereto in Section 6.1. 

“Target Working Capital” means $1,556,000. 

“Tax” means any income, gross receipts, sales, use, real estate, ad valorem, transfer, franchise, withholding, payroll, employment,
excise, severance, occupation, premium or property tax or other like assessment or charge of any kind whatsoever, together with any interest, penalty, addition to tax or other additional amount imposed by any taxing authority. 

“Tax Return” means any Tax return, report or form. 

“Threshold” has the meaning ascribed thereto in Section 6.3(a). 

“Title Insurer” means a reputable title company authorized to do business in the jurisdiction in which the real property in question
is located. 
 “Transaction Documents” means this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the
Guaranty, Industrial Property Assignments, the Transition Services Agreement, the Deed, and the Environmental Side Letter. 

 “Transition Services Agreement” means the Transition Services Agreement in the form of
Exhibit E hereto. 
 “Transitioned Employees” has the meaning ascribed thereto in Section 7.1. 

“Undisputed Amounts” has the meaning set forth in Section 2.8(c)(iii). 

“WARN” has the meaning ascribed thereto in Section 3.24(c). 

“Warranty Obligations” means all written warranty obligations with respect to products manufactured and sold by the Seller prior to
the Closing Date pursuant to the terms of the warranties issued by the Seller. 
 “Welfare Plan” means “employee welfare
benefit plan” as defined in Section 3(l) of ERISA. 
 ARTICLE II 

PURCHASE AND SALE 

Section 2.1 Terms of Purchase and Sale. 

Subject to the terms and conditions of this Agreement: 

(a) The Seller shall sell, assign and transfer the Purchased Assets and Assumed Liabilities to the Purchaser and the Purchaser shall purchase
the Purchased Assets and assume the Assumed Liabilities from the Seller. 
 (b) In consideration for the Purchased Assets, the Purchaser
shall pay to the Seller an aggregate purchase price (the “Purchase Price”) equal to Nine Million Dollars ($9,000,000.00), and assume the Assumed Liabilities. The Purchase Price shall be subject to increase or decrease by the Post-Closing
Adjustment, as set forth in Section 2.8. 
 (c) At Closing, the Purchase Price ($9,000,000.00) shall be paid by wire transfer of
immediately available funds to an account designated in writing by Seller to Purchaser no later than two Business Days prior to the Closing Date (the “Closing Payment”). 

Section 2.2 The Closing. Consummation of the sale and purchase of the Business (the “Closing”) shall take place
concurrently with the execution and delivery of this Agreement at the offices of Day Pitney LLP, One International Place, Boston, Massachusetts, or via the electronic exchange of documents and signatures. The date of Closing is herein called the
“Closing Date.” The parties hereto acknowledge and agree that all proceedings at the Closing shall be deemed to be taken and all documents to be executed and delivered by all parties at the Closing shall be deemed to have been taken and
executed simultaneously, and no proceedings shall be deemed taken nor any documents executed or delivered until all have been taken, executed or delivered. The Closing shall be deemed effective as of 11:59 p.m., Massachusetts time on the Closing
Date. 

 Section 2.3 Closing Deliveries. At the Closing: 

 

	 	(a)	The Seller shall deliver to the Purchaser the following: 

  

	 	(i)	possession of the Purchased Assets; 

  

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

  

	 	(iii)	the Transition Services Agreement, each duly executed by the Seller; 

  

	 	(iv)	the Deed; 

  

	 	(v)	the Industrial Property Assignments in a form satisfactory to Purchaser, each duly executed by the Seller; 

  

	 	(vi)	a non-foreign person affidavit duly executed by the Seller; 

  

	 	(vii)	evidence that the Required Consents have been obtained or filed, as applicable; 

  

	 	(viii)	the Guaranty, duly executed by the Guarantor; and 

  

	 	(ix)	the Environmental Side Letter, duly executed by Seller and the Guarantor. 

  

	 	(b)	The Purchaser and the Parent shall deliver to the Seller the following: 

  

	 	(i)	the Purchase Price; 

  

	 	(ii)	the Assignment and Assumption Agreement duly executed by the Purchaser; 

  

	 	(iii)	the Transition Services Agreement duly executed by the Purchaser; and 

  

	 	(iv)	the Industrial Property Assignments duly executed by the Purchaser. 

 Section 2.4
Assignment and Assumption. 
 (a) The Contracts listed on Schedule 2.4 are included in the Purchased Assets and shall be assigned to
the Purchaser at the Closing (the “Assigned Contracts”). Nothing in this Agreement shall be construed as an attempt to assign any Contract which by its terms or by law is not assignable without the consent of the other party or parties
thereto, unless such consent shall have been given. The Seller agrees to use commercially reasonable efforts to obtain the consent of any such other party or parties in each case where such consent is required and is requested by the Purchaser. If
any Required Consent is not obtained, the Seller will cooperate 

 
with the Purchaser in any reasonable arrangement designed to provide for the Purchaser the benefits under any such Assigned Contracts or otherwise provide Purchaser with the economic and, to the
extent permitted under applicable Law, operational equivalent of the transfer of such Assigned Contract as of the Closing. All cure costs related to assignment of Assigned Contract shall be paid by the Seller. 

(b) To the extent permitted under applicable Law, Seller shall, at Purchaser’s expense, hold in trust for and pay to Purchaser promptly
upon receipt thereof, such Purchased Asset and all income, proceeds and other monies received by Seller to the extent related to such Purchased Asset in connection with the arrangements under this Section 2.04. Seller shall be permitted to set
off against such amounts all direct costs associated with the retention and maintenance of such Purchased Assets. 
 (c) The Purchaser
hereby assumes and agrees to pay, perform and discharge when due the Assumed Liabilities. 
 Section 2.5 Non-Assumption of
Liabilities. The Purchaser does not assume any liabilities of the Seller except the Assumed Liabilities, all such liabilities not assumed, the “Excluded Liabilities”. For purposes of clarification and not limitation, Schedule 2.5 sets
forth liabilities specifically deemed “Excluded Liabilities” which Excluded Liabilities are in addition to the Excluded Liabilities set forth in the first sentence of this Section 2.5. 

Section 2.6 Instruments of Conveyance. In order to effectuate the sale, conveyance, transfers and assignments contemplated by
Section 2.1 hereof, the Seller will execute and deliver at the Closing, or as reasonably soon thereafter as is customary in Massachusetts, all such deeds, bills of sale and other documents or instruments of conveyance, transfer or assignment as
shall be necessary or appropriate to vest in or to confirm in the Purchaser full and complete title to all of the Purchased Assets free and clear of any Liens (other than Liens securing Assumed Liabilities, Liens securing the Bonds, and Permitted
Exceptions), all of which documents shall be in form and substance reasonably satisfactory to counsel for the Purchaser and the Seller. Subsequent to the Closing, the Seller will execute and deliver from time to time, at the request of the
Purchaser, all such further instruments of conveyance, transfer, assignment and further assurance as may reasonably be required in order to vest in and confirm to the Purchaser full and complete title to and the right to use and enjoy the Purchased
Assets. Without limiting the generality of the foregoing, with respect to the Owned Real Property to be conveyed to the Purchaser pursuant hereto which has previously been recorded, such conveyance shall be in recordable form. 

Section 2.7 Allocation of Purchase Price. The Purchase Price will be allocated among the Purchased Assets, as set forth on
Exhibit G, in accordance with Section 1060 of the Code. For the purposes of all Taxes and Tax returns, the parties agree to report the transactions contemplated in this Agreement in a manner consistent with Exhibit G and
none of them will take any position inconsistent therewith in any Tax return, in any refund claim, in any litigation, or otherwise without the consent of the other party except as required by a final “determination” within the meaning of
Section 1313 of the Code. The Seller shall prepare the first draft of Internal Revenue Service Form 8594, which shall be sent to Purchaser at least 90 days prior to the due date, including extensions, for filing the federal income tax return
for the Seller or the 

 
Purchaser, whichever files its return earlier, for the taxable year in which the Closing takes place. With 30 days following the receipt of such Form 8594, Purchaser shall propose any changes to
such Form 8594 or shall indicate its concurrence therewith, which concurrence shall not be unreasonably withheld. 
 Section 2.8
Purchase Price Adjustment. 
 (a) Post-Closing Adjustment. 

(i) Within sixty (60) days after the Closing Date, Purchaser shall prepare and deliver to Seller a statement setting forth its
calculation of Closing Working Capital, which statement shall contain an unaudited balance sheet of the Business as of the Closing Date (without giving effect to the transactions contemplated herein) (the “Closing Working Capital
Statement”). The line items set forth in the Closing Working Capital Statement shall be prepared in good faith in accordance with the sample calculation set forth on Schedule 2.8(a). 

(ii) The post-closing adjustment shall be an amount equal to the Closing Working Capital minus the Target Working Capital (the
“Post-Closing Adjustment”). If the Post-Closing Adjustment is a positive number, Purchaser shall pay to Seller an amount equal to the Post-Closing Adjustment. If the Post-Closing Adjustment is a negative number, Seller shall pay to
Purchaser an amount equal to the Post-Closing Adjustment. 
 (b) Examination and Review. 

(i) Examination. After receipt of the Closing Working Capital Statement, Seller shall have sixty (60) days (the “Review
Period”) to review the Closing Working Capital Statement. During the Review Period, Seller and Seller’s Accountants shall have reasonable access to the books and records of Purchaser as relates to the Closing Working Capital; the personnel
of, and work papers prepared by, Purchaser and/or Purchaser’s Accountants to the extent that they relate to the Closing Working Capital Statement, and to such historical financial information (to the extent in Purchaser’s possession)
relating to the Closing Working Capital Statement as Seller may reasonably request for the purpose of reviewing the Closing Working Capital Statement and to prepare a Statement of Objections (defined below). 

(ii) Objection. On or prior to the last day of the Review Period, Seller may object to the Closing Working Capital Statement by
delivering to Purchaser a written statement setting forth Seller’s objections in reasonable detail, indicating each disputed item or amount and the basis for Seller’s disagreement therewith (the “Statement of Objections”). If
Seller fails to deliver the Statement of Objections before the expiration of the Review Period, the Closing Working Capital Statement and the Post-Closing Adjustment, as the case may be, reflected in the Closing Working Capital Statement shall be
deemed to have been accepted by Seller. If Seller delivers the Statement of Objections before the expiration of the Review Period, Purchaser and Seller shall negotiate in good faith to resolve such objections within thirty (30) days after the
delivery of the Statement of Objections (the “Resolution Period”), and, if the same are so resolved within the Resolution Period, the Post-Closing Adjustment and the Closing Working Capital Statement with such changes as may have been
previously agreed in writing by Purchaser and Seller shall be final and binding. 

 (i) Resolution of Disputes. If the Seller and the Purchaser fail to reach an agreement
with respect to all of the matters set forth in the Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (“Disputed Amounts” and any amounts not so disputed, the “Undisputed
Amounts”) shall be submitted for resolution to an impartial nationally recognized firm of independent certified public accountants, other than Seller’s Accountants, Seller’s Associate’s Accountants or Purchaser’s Accountants
which the Purchaser and the Seller shall appoint by mutual agreement (the “Independent Accountant”), who, acting as experts and not arbitrators, shall resolve the Disputed Amounts only and make any adjustments to the Closing Working
Capital Statement and the Post-Closing Adjustment. The Parties agree that all adjustments shall be made without regard to materiality. The Independent Accountant shall only decide the specific items under dispute by the parties and its decision for
each Disputed Amount must be within the range of values assigned to each such item in the Closing Working Capital Statement and the Statement of Objections, respectively. 

(iii) Fees of the Independent Accountant. The fees and expenses of the Independent Accountant shall be paid by Seller, on the one
hand, and by Purchaser, on the other hand, based upon the percentage that the amount actually contested but not awarded to Seller or Purchaser, respectively, bears to the aggregate amount actually contested by Seller and Purchaser. 

(iv) Determination by Independent Accountant. The Independent Accountant shall make a determination as soon as practicable within
thirty (30) days (or such other time as the parties hereto shall agree in writing) after its engagement, and their resolution of the Disputed Amounts and their adjustments to the Closing Working Capital Statement and/or the Post-Closing
Adjustment shall be conclusive and binding upon the parties hereto. 
 (v) Payments of Post-Closing Adjustment. Except as otherwise
provided herein, any payment of the Post-Closing Adjustment shall (A) be due (x) within ten (10) Business Days of acceptance of the applicable Closing Working Capital Statement or (y) if there are Disputed Amounts, then within
ten (10) Business Days of the resolution described in clause (iii) above; and (B) be paid by wire transfer of immediately available funds to such account(s) as is directed by Purchaser or Seller, as the case may be. Any Post-Closing
Adjustment not paid within such time period shall bear interest from the due date at a rate per annum equal to the lowest applicable federal rate promulgated by the Internal Revenue Service for short-term loans as of the Closing Date. Such interest
shall be calculated daily on the basis of a 365 day year and the actual number of days elapsed, without compounding. 
 (c) Adjustments
for Tax Purposes. Any payments made pursuant to this Section 2.8 shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law. 

 Section 2.9 Real Estate Taxes. All real estate Taxes levied against the Owned Real
Property shall be prorated as of the date hereof between the Purchaser and the Seller, with the Seller receiving an adjustment payment for those real estate Taxes paid in advance that are applicable to periods after the date hereof and Purchaser
receiving an adjustment payment for those real estate Taxes not paid which are applicable to the periods prior to the date hereof. Such adjustment shall be paid by the applicable party promptly following receipt of evidence reasonably
acceptable to such party of such payment of Taxes by the other party. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE SELLER 

The Seller, represents and warrants to the Purchaser and the Parent that: 

Section 3.1 Organization and Qualification of the Seller. The Seller is duly organized, validly existing and in good standing
under the laws of the State of Ohio and has full power to own the Purchased Assets owned by it and to carry on the Business as it is now being conducted, and is qualified to do business as a foreign corporation in the jurisdictions identified with
respect to it in Schedule 3.1, which are the only jurisdictions in which its ownership or conduct of the Business requires it to be so qualified. Seller is a wholly owned indirect subsidiary of Guarantor. 

Section 3.2 Due Authorization; Authority of Seller; Enforceability. 

(a) The Seller has all requisite power and authority to make, execute, deliver and perform this Agreement and the Transaction Documents to
which it is a party and to consummate the transactions contemplated hereby and thereby. 
 (b) The execution and delivery by Seller of this
Agreement and the other Transaction Documents to which it is a party has been, and the consummation by Seller and ITT of the transactions contemplated hereby and thereby have been, duly authorized by all necessary corporate action on the part of
Seller, and no other corporate proceeding is necessary for the execution and delivery of this Agreement or such other agreements by Seller or the performance by Seller of its obligations hereunder or thereunder. 

(c) This Agreement and each of the Transaction Documents to which the Seller is a party constitutes the legal, valid and binding obligation of
each enforceable against each of them in accordance with their respective terms, except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium-or similar laws affecting the enforcement of creditors’
rights generally and by the availability of equitable remedies and defenses. 
 Section 3.3 No Violation. Except as set forth in
Schedule 3.3, the execution and delivery of this Agreement and the Transaction Documents to which the Seller is a party and the consummation of the transactions contemplated hereby and thereby will not (i) violate or conflict with any
provision of the governing documents of Seller; (ii) violate or conflict with any provision of, or result in the termination of, or the acceleration of (or entitle any party to exercise a right to terminate or accelerate) any obligation under
any mortgage, note, lien, Contract, lease, franchise, license, Permit, agreement, plan, instrument, order, arbitration award, judgment or 

 
decree to which the Seller is a party or by which Seller is bound, or require the consent of any party thereto; (iii) violate or conflict with any other material contractual or statutory
restriction of any kind or character to which Seller, the Business or the Purchased Assets is subject; or (iv) violate in any material respect any Law or any decree or judgment of any court or other Governmental Authority applicable to Seller,
the Business, or any of the Purchased Assets. Except for the Required Consents, Seller is not required to obtain any consent from any Person or Governmental Authority in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby. 
 Section 3.4 Assets. Except as set forth on Schedule 3.4, the
Purchased Assets constitute all of the assets of the Seller used in the operation of the Business as it is presently operated by Seller, and are adequate and suitable in all material respects for the continued operation of the Business as conducted
on the date hereof. On consummation of the transactions contemplated by this Agreement in accordance with the terms thereof, the Seller will transfer to the Purchaser good and valid title to the Purchased Assets free and clear of any options, rights
of first refusal, liens, claims, charges or other encumbrances (collectively “Liens”) other than any Liens securing Assumed Liabilities, Liens securing the Bonds, and Permitted Exceptions. 

Section 3.5 Affiliated Businesses. Set forth in Schedule 3.5 is a complete and accurate list of all Associates of the
Seller, which are conducting, or during the past three years conducted, business (paid or unpaid) with the Seller in respect of the Business as a supplier, customer or otherwise. Schedule 3.5 specifies: (a) the business engaged in during
such period by each such Person, and (b) the nature and volume of the business conducted by Person with the Seller in respect of the Business and the period during which it has been conducted. Except as set forth on Schedule 3.5: (i) no
Associate of Seller provides or causes to be provided any assets, services or facilities to Seller in relation to the Business, (ii) Seller does not provide nor cause to be provided any assets, services or facilities to its Associates in
relation to the Business, (iii) Seller does not beneficially own, directly or indirectly, any investment assets issued by its Associates in relation to the Business, and (iv) Seller has not entered into any agreement, understanding or
arrangement with its Associates in relation to the Business. As of the Closing Date, there is no indebtedness, Accounts Receivable or Accounts Payable between Seller, on the one hand, and its Associates, on the other hand, that are included in the
Purchased Assets or the Assumed Liabilities or reflected in the Working Capital calculation. 
 Section 3.6 Subsidiaries. The
Seller does not own in respect of the Business any shares of any corporation or control, directly or indirectly, any interest in any corporation, partnership, trust, joint venture or other legal entity. 

Section 3.7 Financial Statements. 

(a) Schedule 3.7(a) includes true and correct copies of (i) the unaudited balance sheet of the Seller as of the fiscal year ended
December 31, 2014 and the related unaudited statement of income (loss) for such fiscal year (the “2014 Financial Statements”) and (ii) the unaudited balance sheet of the Seller as of March 31, 2015 (the
“Balance Sheet Date”) and the related unaudited statement of income (loss) for the three (3) month period ending on the Balance Sheet Date (the “Interim Financial Statements”). The 2014 Financial Statements and
the Interim Financial Statements are collectively referred to herein as the “Financial Statements.” 

 
The Financial Statements present fairly in all material respects the financial condition and results of operations of the Business as of such dates in accordance with GAAP; provided, that
certain liabilities related to employees of the Seller, Taxes of the Seller and certain intercompany costs not allocated to the Seller are not reflected on the Financial Statements as would otherwise be required by GAAP; provided further,
that the Financial Statements do not contain the footnotes required by GAAP and the Interim Financial Statements are subject to year-end adjustments consistent with past practice. 

(b) All of the Financial Statements are qualified by the fact that the Business has not operated as a separate “stand alone” entity.
As a result, the Business received certain allocated charges and credits, which charges and credits for the fiscal year ended December 31, 2014, and the year-to-date period ended on the Balance Sheet Date are set forth on Schedule
3.7(b). Such charges and credits do not necessarily reflect the amounts which would have resulted from arms-length transactions or which the Business would incur on a stand-alone basis. 

Section 3.8 Events Since the Balance Sheet Date. Except as disclosed in Schedule 3.8, since the Balance Sheet Date, there
has not been: 
 (a) any material adverse change in the results of operations, assets, liabilities or financial condition of the Business;

 (b) any damage, destruction or loss (whether or not covered by insurance) materially and adversely affecting the assets or operations of
the Business; 
 (c) any increase in compensation, bonus or other benefits payable or to become payable by the Seller in respect of the
Business to any directors, officers, employees or agents of the Seller other than normal increases granted in the ordinary course of business; or 

(d) any disposition by the Seller of any Inventory or personal property of the Business, except such Inventory or personal property as has
been disposed of in the ordinary course of business; 
 (e) material change in any method of accounting or accounting practice of Seller,
except as required by GAAP or as disclosed in the notes to the Financial Statements; 
 (f) material change in Seller’s cash management
practices and its policies, practices and procedures with respect to collection of Accounts Receivable, establishment of reserves for uncollectible Accounts Receivable, accrual of Accounts Receivable, inventory control, prepayment of expenses,
payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer deposits; 
 (g) cancellation
of any debts or claims or amendment, termination or waiver of any rights constituting Purchased Assets; 
 (h) transfer, assignment or grant
of any license or sublicense of any material rights under or with respect to any Intellectual Property; 

 (i) acceleration, termination, material modification to or cancellation of any Assigned Contract
or Permit; 
 (j) any material capital expenditures which would constitute an Assumed Liability; 

(k) adoption of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar Law; 
 (l)
purchase, lease or other acquisition of the right to own, use or lease any property or assets in connection with the Business for an amount in excess of $20,000, individually (in the case of a lease, per annum) or $50,000 in the aggregate (in the
case of a lease, for the entire term of the lease, not including any option term), except for purchases of inventory or supplies or replacement of equipment in the ordinary course of business; or 

(m) any Contract or agreement to do any of the foregoing, or any action or omission that would result in any of the foregoing. 

Section 3.9 Absence of Undisclosed Liabilities. There are no liabilities of the Seller in respect of the Business, whether or not
accrued and whether or not determined or determinable, other than: 
 (a) liabilities disclosed or fully provided for in the Balance Sheet;

 (b) liabilities incurred in the ordinary course of business since the Balance Sheet Date, none of which has been materially adverse to
the assets, financial condition or results of operations of the Business; 
 (c) liabilities disclosed in the Schedules to this Agreement;
and 
 (d) liabilities under Contracts not required to be disclosed in the Schedules to this Agreement. 

Section 3.10 Real Property. 

(a) Schedule 3.10(a) describes all of the Real Property included in the Purchased Assets (“Owned Real Property”) and
all prior title insurance policies that insure the Seller’s interests in and to such Owned Real Property. The Seller has delivered or made available to Purchaser true, correct and complete copies of all instruments evidencing the Restrictions
(hereinafter defined) affecting the Owned Real Property, title reports, title polices (“Existing Title Policies”) and surveys (“Existing Surveys”) if any, for the Owned Real Property in the Seller’s possession
or control. No claim has been made by Seller under any of the Existing Title Policies or Existing Surveys. Except for Permitted Exceptions and except as disclosed in Schedule 3.10(a), the Seller, to its Knowledge, has good, marketable and
insurable title to all such Owned Real Property, free and clear of all leases, occupancy agreements, occupancy arrangements, licenses, covenants, conditions, restrictions, reservations, reversions, 

 
licenses, easements, mortgages and other security interests, liens, claims, charges, options, rights of purchase and other encumbrances (each a “Restriction,” collectively
“Restrictions”). Except as disclosed in Schedule 3.10(a), the Seller is not a party to any contract or option to sell, assign or otherwise dispose of any Owned Real Property, or to grant or create any Restriction on or
affecting the Owned Real Property, and in respect of the Business, is not a party to any contract or option to purchase or otherwise acquire any interest in real property or to create a Restriction affecting the Owned Real Property and since the
Balance Sheet Date, the Seller has not sold, assigned, granted or created any Restriction on or affecting the Owned Real Property, and in respect of the Business, has not purchased, sold, assigned or otherwise disposed of the Owned Real Property or
otherwise acquired or disposed of any interest in Real Property. There are no parties in possession of the Owned Real Property other than Seller. 

(b) The Seller does not lease any Real Property in respect of the Business. 

(c) The Improvements are listed on Schedule 3.10(c) hereto. To Seller’s Knowledge, the Improvements and operations of the Business
do not encroach on the property of others. All Improvements, occupancy and use of the Improvements, occupancy and use of the Owned Real Property and all such operations, to Seller’s Knowledge, conform in all material respects with all
applicable zoning, building, fire and safety Laws, and any other applicable Laws relating to the use and operation of the Owned Real Property and the Business, and the Seller has not received notice of noncompliance with any such Laws. All permits,
including but not limited to permanent certificates of occupancy, required for the use and occupancy of the Improvements and Owned Real Property have been obtained and are valid and in effect, and true, correct and complete copies thereof have been
delivered or made available to Purchaser. To Seller’s Knowledge, none of the Improvements or uses being made of the Owned Real Property constitute a legal non-conforming use or otherwise require any special dispensation, variance or special
permit under any Laws. 
 (d) With respect to the Owned Real Property: 

(i) To Seller’s Knowledge, the Seller has legal and practical access to the roads and utilities needed to substantially operate the
Business on the Owned Real Property; the Seller has not received and to Seller’s Knowledge there do not exist any adverse claims to such access that would materially adversely affect the use currently being made of such access by the Seller.

 (ii) To Seller’s Knowledge, no material violation of any Restriction affecting the Owned Real Property or the use or occupancy of
the Owned Real Property exists, and no notice of any such violation has been received from any person entitled to enforce the same. 

(iii) To Seller’s Knowledge, there are no encroachments onto the Owned Real Property of any improvements on any adjoining property. 

(iv) Public and private utilities servicing the Owned Real Property have, to Seller’s Knowledge, adequate capacity to meet the utility
requirements for the current use of such Owned Real Property. 

 (v) To Seller’s Knowledge, the Owned Real Property is assessed separately from all other
adjacent property for purposes of real estate taxes. No action seeking a reduction in real estate taxes imposed upon the Owned Real Property or the assessed valuation thereof (or any portion thereof) (1) has been settled during the period in
which the Owned Real Property has been owned, by the Seller or (2) is currently pending. 
 (vi) Set forth Schedule
3.10(d)(vi), if any, is a true and correct list of all material plans and specifications relating to the Owned Real Property in the possession or control of the Seller. True, correct and complete copies of such material plans and specifications
in the possession or control of the Seller have been furnished or made available to Purchaser. 
 (e) To Seller’s Knowledge: 

(i) there is not any proposed public improvement which may result in an assessment upon the Owned Real Property, or any proposed federal,
state or local statute, ordinance, order, requirement, law or regulation (including, but not limited to, zoning changes) which may adversely affect the current or planned use of the Owned Real Property; and 

(ii) there is no existing or proposed plan to modify or realign any street or highway that would adversely affect the current or planned use
of the Owned Real Property nor is there any existing or proposed eminent domain proceeding that would result in the taking of all or any part of the Owned Real Property. 

(f) No Real Property owned or controlled directly or indirectly by the Seller (other than the Owned Real Property) or any Associate of
Seller’s adjoins, abuts or is adjacent to any of the Owned Real Property. 
 (g) Other than as set forth in Schedule 3.10(g),
the Seller has no oral or written agreement with any real estate broker, agent or finder with respect to the Owned Real Property that would require a fee to be paid at any time for any reason as it relates to the Owned Real Property. 

(h) The Seller does not own any Mortgages in respect of the Owned Real Property. 

(i) Except as set forth on Schedule 3.10(i), the Owned Real Property, fixtures thereon and Improvements, are in good operating condition and,
to the Seller’s Knowledge, without structural defects. 
 (j) The mechanical and other building systems (including, without limitation,
the roof on any of the Improvements) located on the Owned Real Property, are (1) in good operating condition, and, to the Seller’s Knowledge, no condition exists requiring material repairs, alterations, replacements or corrections, and
(2) suitable and appropriate in all respects for their current use. 
 (k) The Owned Real Property and the Improvements constitute all
of the land, buildings, structures, improvements, fixtures or other interests and rights in real property that are currently used or occupied by the Seller in connection with the Business and the Purchased Assets. 

 (l) To Seller’s Knowledge, no Person (other than the Seller) has any interest in, or rights
to, the mineral, oil, gas, and other natural resources arising from the Owned Real Property. 
 (m) To Seller’s Knowledge, except as
set forth on Schedule 3.10(m), there exist no outstanding requirements or recommendations by (1) any insurance policy maintained by Seller currently insuring any Owned Real Property, (2) any board of fire underwriters or other body
exercising similar functions with respect to any Owned Real Property or (iii) the holder of any encumbrance on any Owned Real Property, in each such case that require or recommend any repairs or work of any material nature be performed on such
Owned Real Property. 
 Section 3.11 Personal Property. 

(a) The Seller owns, free and clear of any Liens other than Permitted Exceptions, all of the personal property (including Inventory) included
in the Purchased Assets. 
 (b) All machinery and equipment owned or leased by the Seller in respect of the Business which is in regular use
is in good working order and repair, ordinary wear and tear excepted. 
 (c) Except as set forth on Schedule 3.11(c) all Inventory
included in the Purchased Assets is of a quality and condition usable (and in the case of finished goods, saleable) in the ordinary course of business for the purposes for which intended net of any applicable reserves reflected in the Financial
Statements. Schedule 3.11(c) sets forth a true and complete list of Inventory included in the Purchased Assets. 
 (d) All leases for
personal property are set forth on Schedule 3.11(d). 
 Section 3.12 Contracts and Commitments. 

(a) Except as listed on Schedule 3.12(a), the Seller is not in respect of the Business a party to, or subject to, any oral or written:

 (i) Contract for the purchase of products for resale, materials, parts or supplies and involving any expenditure by the Seller of more
than $20,000; 
 (ii) Contract for the purchase of machinery or equipment or for construction, and involving any expenditure by the Seller
of more than $20,000; 
 (iii) Contract to obtain services and involving any expenditure by the Seller of more than $20,000; 

(iv) lease (as lessee) of machinery, equipment or other personal property requiring annual rental payments of $20,000 or more; 

 (v) Contract for the sale or lease of its products or the Purchased Assets or the furnishing of
its services and involving consideration of more than $20,000; 
 (vi) Contract pursuant to which a party other than the Seller has a right
to renegotiate or require a reduction in price or refund of payments made to the Seller; 
 (vii) Contract providing for payment by the
Seller of liquidated damages or penalties in the event of breach; 
 (viii) contract with any government entity; 

(ix) Contract that relates to the acquisition of any business, a material amount of stock or assets of any other Person or any real property
(whether by merger, sale of stock, sale of assets or otherwise), in each case involving amounts in excess of $20,000; 
 (x) Contracts
relating to indebtedness (including, without limitation, guarantees, but not agreements relating to trade receivables), in each case having an outstanding principal amount in excess of $20,000; 

(xi) Contract between or among the Seller on the one hand and any Associate of Seller on the other hand; and 

(xii) Contracts imposing non-compete restrictions, geographic restrictions, restrictions with regard to the passing of time or other limits
on the operation or scope of the Business. 
 (b) True and complete copies of all Assigned Contracts, and all amendments, supplements and
modifications thereto have been delivered to Purchaser. 
 (c) Each of the Contracts to which the Seller is subject or a party in respect of
the Business is a valid and binding agreement enforceable in accordance with its terms and is in full force and effect and (i) no material default by the Seller or, to Seller’s Knowledge, by any other party exists under any provision
thereof, (ii) neither Seller nor its Associates have received any cancellation or non-renewal notice from any party to a Contract or taken any action that constitutes a cancellation of any of Contracts, (iii) no condition or event exists
which after notice or lapse of time or both would constitute a material breach or default thereunder by the Seller any Associate of Seller or, to Seller’s Knowledge, by any other party; and (iv) except as set forth on Schedule
3.12(c), the assignment thereof pursuant to this Agreement will not result in termination of, or result in a right of termination under, any such agreement, require the consent of any party thereto or bring into operation any other provision
thereof. 
 Section 3.13 Suppliers and Customers. 

(a) Set forth in Schedule 3.13(a) is a complete and accurate list of: 

(i) the names and addresses of the ten largest suppliers (by dollar volume) of products and services to the Business during Seller’s
last two fiscal years (each a “Major Supplier”); 

 (ii) the names and addresses of any sole source suppliers of significant goods or services to
the Business with respect to which practical alternative sources of supply are not available on comparable terms and conditions; 
 (iii)
the dollar volume of purchases from each supplier referred to in paragraphs (a) and (b) above during each of the last two fiscal years; and 

(iv) the names and addresses of the ten largest customers (by dollar volume) of the Business during Seller’s last two fiscal years (each
a “Major Customer”), together with the annual dollar volume of such revenues for each such customer. 
 (b) There exists no actual
or, to Seller’s Knowledge, threatened, material termination, cancellation, reduction or limitation of, or any material modification or change in, the business relationship of Seller with any Major Customer, or any customer whose purchases
individually or in the aggregate are material to the Business, or with any Major Supplier, or whose sales individually or in the aggregate are material to the operation of the Business. Seller shall not sell or otherwise disclose such lists to any
third party except pursuant to this Agreement. 
 (c) To Seller’s Knowledge, there is no material adverse condition affecting the
supply of materials available to Seller in the conduct of the Business. 
 Section 3.14 Insurance. Set forth in Schedule
3.14 is a complete and accurate list of all current insurance policies of the Seller in respect of the Business and all other insurance policies of the Seller or any Associate of Seller under which any claim could be made by or on behalf of the
Seller in respect of the Business. 
 Section 3.15 Labor Agreements and Actions. Except as set forth on Schedule 3.15:

 (a) the Seller is not in respect of the Business a party to or bound by or subject to any Contract with any labor union; 

(b) there are in respect of the Business no existing or, to the Seller’s Knowledge, threatened (i) labor strikes, work stoppages,
slow downs or interruptions of work affecting the Business, (ii) arbitrations or material grievances involving the Business, or (iii) other labor controversies which would have a Material Adverse Effect on the financial condition, results
of operations, properties or business of the Business; 
 (c) the Seller is not now, nor has the Seller within the last six months preceding
the date of this Agreement, engaged in respect of the Business in any unfair labor practice within the meaning of the National Labor Relations Act; 

(d) there are no pending or, to the Seller’s Knowledge, threatened unfair labor practice charges or discrimination complaints relating to
race, color, national origin, sex, religion, age, marital status or handicap against the Seller in respect of the Business before any federal, state or local board, department, commission or agency nor, to the Seller’s Knowledge, does any basis
therefor exist; and 

 (e) the Seller is not now, and during the past three years the Seller has not been, charged with,
or to the Seller’s Knowledge threatened with, a charge of violation, or under investigation with respect to a possible violation, in respect of the Business of any provision of any Laws relating to unfair labor practices or equal employment
opportunity; and there have been no claims, inquiries, citations, penalties assessed or other proceedings of federal, state or local governmental agencies in respect of the Seller in respect of the Business during the past three years which relate
to any provision of any Laws relating to unfair labor practices or equal employment opportunity. 
 Section 3.16 Employee Benefit
Plans. 
 (a) Schedule 3.16(a) lists all Benefit Plans (i) which are maintained by the Seller or any Associate of Seller for
the benefit of the present or former employees of the Seller in respect of the Business or any predecessor thereof or (ii) to which the Seller is required to contribute in respect of the Business. 

(b) Except with respect to any Pension Plan listed in Schedule 3.16(a) which is a Multiemployer Plan, each such Pension Plan is in
material compliance with the provisions of ERISA, the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”) and all other applicable Law. Each Benefit Plan that is intended to be qualified under
Section 401(a) of the Code (a “Qualified Benefit Plan”) is so qualified and has received a favorable and current determination letter from the IRS and to the extent that such favorable determination was conditioned upon adoption of
amendments by a specified date, such amendments were timely adopted, to the effect that such Qualified Benefit Plan is so qualified and that the plan and trust related thereto are exempt from federal income taxes under Section 401(a) and
501(a), respectively, of the Code, and nothing has occurred that could reasonably be expected to cause the revocation of such determination letter from the IRS, nor has any such revocation been threatened. No Benefit Plan has within the three years
prior to the Closing been the subject of an examination or audit by a governmental authority or the subject of an application or filing under or is a participant in, an amnesty, voluntary compliance, self-correction, or similar program sponsored by
any governmental authority. 
 (c) No such Pension Plan, nor any trust created thereunder, nor any trustee or administrator thereof, has
engaged in a transaction which might subject such Pension Plan, trustee or administrator thereof, or any party dealing with such Pension Plan which is not a Multiemployer Plan or trust, to the tax or penalty on prohibited transactions imposed by
Section 4975 of the Code or to a civil penalty imposed by Section 502 of ERISA. 
 (d) Except as disclosed on Schedule
3.16(d), since September 2, 1974, no such Pension Plan subject to Title IV of ERISA, other than a Multiemployer Plan, has been completely or partially terminated, nor to the Seller’s Knowledge has there been any filing of any
notice of intent to terminate under Section 4041 of ERISA or any other receipt by the Seller of notice of the institution by the Pension Benefit Guaranty Corporation of any proceeding under Section 4042 of ERISA involving a Pension Plan,
nor has there been any “reportable event”, as such term is defined in Section 4043(b) of ERISA, with respect to any such Pension Plan since the effective date of said Section 4043(b). 

 (e) Since April 29, 1980, the Seller has not in respect of the Business suffered or
otherwise caused a “complete withdrawal” or “partial withdrawal”, as such terms are respectively defined in Section 4203 and 4205 of ERISA, with respect to any Multiemployer Plan, nor will the consummation of this
transaction result in such a complete withdrawal nor partial withdrawal, nor is Seller or any Associate of Seller liable or contingently liable for any withdrawal liability under Title IV of ERISA. 

(f) Each Welfare Plan listed in Schedule 3.16(a) is in material compliance with the provisions of all applicable Laws. 

(g) All material reports and documents with respect to such Pension Plans and such Welfare Plans that are required by ERISA to be filed or
distributed have been timely filed or distributed. 
 (h) The Seller is in respect of the Business in compliance with all Laws including,
without limitation, the consolidated omnibus Budget Reconciliation Act of 1985, which require the continuation of benefit coverage under any Benefit Plan upon the happening of certain events, such as the termination of employment or change in
beneficiary or dependent status. 
 Section 3.17 Taxes. 

(a) The Seller has: 
 (i) duly
and timely filed, or caused to be filed, in accordance with applicable Law all Tax Returns applicable to or including the Seller, each of which is true, correct and complete, 

(ii) duly and timely paid in full, or caused to be paid in full, all Taxes due and payable (whether or not shown on any Tax Return) on or
prior to the Closing Date for which the Seller is or could liable (in whole or in part), and 
 (iii) properly accrued in accordance with
GAAP on its books and records a provision for the payment of all Taxes that are due, are claimed to be due, or may or will become due with respect to any Tax period (or portion thereof) ending on or prior to the Closing Date. 

(b) No extension of time to file any Tax Return for or including the Seller, which Tax Return has not since been filed in accordance with
applicable Law, has been filed. 
 (c) With respect to or otherwise inclusive of or relating to the Seller, no Tax Return has ever been
filed, and no Tax has ever been determined, on a consolidated, combined, unitary or other similar basis (including, but not limited to, a consolidated federal income Tax return). There is no actual or potential theory or circumstance (including, but
not limited to, as a transferee or successor, under Code Section 6901 or Treasury Regulation Section 1.1502-6, as result of a Tax sharing agreement or other contract or by operation of law) under which the Seller is or may be liable for
any Tax determined, in whole or in part, by taking into account any income, sale, asset of or any activity conducted by any other Person. 

 (d) The Seller has complied in all respects with all applicable Law relating to the deposit,
collection, withholding, payment or remittance of any Tax (including, but not limited to, Code Section 3402). 
 (e) With respect to
the Seller or otherwise inclusive of or relating to the Seller, no proceeding is pending, threatened or proposed with regard to any Tax or Tax Return. 

(f) With respect to the Seller or otherwise inclusive of or relating to the Seller, the statute of limitations applicable or relating to any
Tax or any Tax Return has never been modified, extended or waived, nor has any request been made in writing for any such modification, extension or waiver. 

(g) With respect to the Seller or otherwise inclusive of or relating to the Seller, no jurisdiction where no Tax Return has been filed or no
Tax has been paid has made or threatened to make a claim for the payment of any Tax or the filing of any Tax Return. 
 (h) The Seller is
not nor has it ever been a beneficiary or otherwise participated in any reportable transaction within the meaning of Treasury Regulation Section 1.6011-4(b)(1). 

(i) The Seller is not a “foreign person” as defined in Section 1445 of the Code. 

Section 3.18 Legal Proceedings. Except as set forth in Schedule 3.18, there are no claims, charges, arbitrations,
grievances, actions, suits, proceedings or investigations pending or, to the Seller’s Knowledge, threatened by or against or affecting the Seller or its Associates in respect of the Business, the Purchased Assets or the Assumed Liabilities.

 Section 3.19 Judgments, Decrees and Orders. The Seller is not a party to nor subject to any judgments, decrees, orders,
writs, injunctions, rulings, decisions or awards of any court or Governmental Authority in respect of the Business or to which any of the Purchased Assets or the Assumed Liabilities is subject. 

Section 3.20 Compliance With Laws. 

(a) The Seller is not in violation of any Laws, except for violations which individually, or in the aggregate, do not and would not reasonably
be expected to have a Material Adverse Effect on the financial condition, results of operations, business, properties, assets or liabilities of the Seller in respect of the Business. 

(b) Except as set forth in Schedule 3.20(b), the Seller is not now, and during the past three years the Seller has not been, charged
with, or to the Seller’s Knowledge threatened with, a charge or violation, or under investigation with respect to a possible violation, of any provision of any Laws applicable to the Business. Except as set forth in Schedule 3.20(b),
there have been no claims, inquiries, citations, penalties assessed or other proceedings of Governmental Authorities against the Seller in respect of the Business during the past three years which relate to any provision of any Laws. 

 (c) Except as disclosed in Schedule 3.20(c) or which has not and would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect on the Seller in respect of the Business, the Purchased Assets or the Assumed Liabilities, the Seller has obtained all Permits which are required in connection with the
Business and operations of the Business and to use or own the Purchased Assets, and is in full compliance therewith. Schedule 3.20(c) lists all such Permits except for the Permits listed in Schedule 3.21(b) in response to
Section 3.21(b). All such Permits are valid and in full force and effect. The Seller has not engaged in any conduct which could cause revocation or suspension of any of such Permits and no action or proceeding which could result in the
revocation or suspension of any thereof is pending or, to the Seller’s Knowledge, threatened. 
 (d) Except as disclosed in Schedule
3.20(d) and except for transfers, approvals and authorizations listed in Schedule 3.21(b) in response to Section 3.21(b), no transfers of such Permits and no approvals or authorizations of Governmental Authorities will be required to
permit the Purchaser to continue the Business as presently conducted after sale of the Business to the Purchaser pursuant to this Agreement. 

(e) Except as disclosed on Schedule 3.20(e), (i) all products manufactured by Seller meet all applicable regulatory requirements
in all material respects for the Business as currently conducted and (ii) Seller has not received any notices that such products, or any anticipated products, do not, or will not, meet applicable regulatory requirements. 

Section 3.21 Environmental Matters. 

(a) Except as disclosed in Schedule 3.21(a), the Seller’s operation of the Business is in material compliance with all
Environmental Laws. 
 (b) The Seller has obtained all material Permits, and will comply with, Environmental Laws that are required in
connection with the sale or transfer of the Business and Owned Real Property to Purchaser and operation of the Business and the Seller is in full compliance therewith. Schedule 3.21(b) lists all such Permits and approvals required by
Governmental Authorities under Environmental Laws to sell or transfer the Business, Purchased Assets or Owned Real Property. All such Permits are valid and in full force and effect. The Seller has not engaged in any conduct which could cause
revocation or suspension or any modification of any such Permits and no action or proceeding which could result in the revocation or suspension or modification of any thereof is pending or, to the Seller’s Knowledge, threatened. Except as
disclosed in Schedule 3.21(b), no transfers of such Permits and no approvals or authorizations of Governmental Authorities under Environmental Laws will be required to permit the Purchaser to continue the Business as presently conducted after
sale of the Purchased Assets to the Purchaser pursuant to this Agreement. 
 (c) Except as disclosed in Schedule 3.21(c), the Seller has not
used or permitted others, by contract or otherwise, to use its facilities or any Owned Real Property (whether owned, leased or otherwise controlled) to generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce,
process or use Hazardous Substances nor has the Seller, by contract or otherwise, arranged for others to handle or manage Hazardous Substances produced, owned or controlled by the Business, whether on or off any Owned Real Property. 

 (d) Except as disclosed in Schedule 3.21(d), the Seller has not caused or permitted, and
to the Seller’s Knowledge there has not been, any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching or disposing of any Hazardous Substances on or from, or onto, any Owned Real
Property. 
 (e) Except as disclosed in Schedule 3.21(e), the Seller has not been notified of any potential claim or liability or
request for information under any Environmental Laws in respect of the Business or the Owned Real Property, and has not received notice of, and the Seller is not aware of, any such potential claim or liability. 

(f) Except as set forth in Schedule 3.21(f), the Seller is not now, and during the past three years the Seller has not been charged
with, or to the Seller’s Knowledge, threatened with a charge of, or under investigation with respect to a possible violation of any provision of any Environmental Laws, in respect of the Business. 

(g) The Seller has made available to the Purchaser true and complete copies of all documents, writings or reports regarding environmental
conditions on the Owned Real Property, including, without limitation, all correspondence to and from public authorities, all filings with public authorities, all external environmental audits within Seller’s possession and all internal
environmental audits performed by Seller within the last two (2) years. 
 (h) There are no former or current underground storage tanks
for Hazardous Substances installed, removed or maintained by the Seller on the Owned Real Property. 
 (i) The Seller is not a party to, or
negotiating, any agreements, orders or decrees with third parties or Governmental Authorities for access or to settle, resolve, fund, contribute, design, implement, monitor, maintain, restore or implement the remediation of Hazardous Substances or
damages to natural resources in any way related to the Owned Real Property or the Business. 
 (j) To Seller’s Knowledge, Seller or its
predecessors have previously owned, or operated at, only the following properties in the Commonwealth of Massachusetts: 36 Arlington Street, Watertown, MA; 221-225 Crescent Street, Waltham, MA; and 829 Middlesex Turnpike, Billerica, MA. 

Section 3.22 Consummation of this Transaction. Except for filings and approvals listed in Schedule 3.21(b) in response to
Section 3.21(b): (i) no filing by the Seller with any Governmental Authority is required with respect to the execution or delivery of this Agreement or the performance of the transactions contemplated by this Agreement; and (ii) the
consummation by the Seller of the transactions contemplated by this Agreement is not subject to the prior consent or approval of any Governmental Authority. 

Section 3.23 Intellectual Property. 

(a) Schedule 3.23(a) lists all Industrial Property that the Seller or any Associate of Seller, owns and uses solely in the Business, specifying
the owner thereof; and (ii) all domain names and social media accounts used by the Seller in respect of the Business. The Industrial Property listed constitutes all material Industrial Property currently used or held for use or necessary for
the operation of the Business as presently conducted by Seller. 

 (b) To the extent indicated on Schedule 3.23(a), all listed Industrial Property has been and
currently remains duly registered with, filed in or issued by the appropriate governmental agencies of the United States. The Industrial Property is valid and enforceable and is not and to the Knowledge of Seller, has not been the subject of any
proceeding regarding opposition to registration, cancellation or similar claim naming Seller or any Seller Associate as a party, or any other challenges to the validly of the Industrial Property, and, to the Knowledge of Seller, no such proceeding
has been threatened. 
 (c) Schedule 3.23(c) lists all Contracts and identifies all parties to such Contracts under which the Seller in
respect of the Business or any Associate of Seller on behalf of the Seller in respect of the Business, or any predecessor thereof, either obtains or grants the right to use any Intellectual Property. Except for the Contracts identified in Schedule
3.23(c), and embedded licenses to use as they are automatically granted with the sale of products or services, there are no material agreements or other arrangements pursuant to which Seller has licensed to any other Person or otherwise
permitted any other Person to use (through non-assertion, settlement or similar agreements or otherwise) any of the Intellectual Property. 

(d) Immediately following the Closing Date, Purchaser will have and be permitted to exercise all of Seller’s rights under, and will have
the same rights with respect to all Intellectual Property, to the same extent Seller would have had, and been able to exercise, had this Agreement not occurred, without payment of any additional amounts or consideration other than ongoing fees,
royalties or payments that Seller would have been required to pay if such Agreement had not occurred; provided the parties have complied with the terms and conditions of the Contracts. 

(e) The Seller or an Associate of Seller has good title to all of the Intellectual Property which Seller or an Associate of Seller owns and
uses solely in the Business (including the Industrial Property listed in Schedule 3.23(a)) free and clear of any Liens. The Seller or an Associate of Seller owns or has the right to use without payment to a third Person all of the Intellectual
Property. The rights of Seller or an Associate of Seller in, to and under the Intellectual Property are freely transferable and assignable to Purchaser. To the Knowledge of Seller, neither Seller nor any Associate of Seller has received any
opinion of counsel (whether internal or external, written or oral) relating to the patentability infringement validity or enforceability of any Intellectual Property. 

(f) The Seller has the sole and exclusive right to use all of the Intellectual Property that the Seller or an Associate of Seller owns and
uses in the Business. To the Seller’s Knowledge, none of the products, apparatus, methods or services that the Seller makes, uses or sells in respect of the Business infringes or violates the Intellectual Property of others, nor, to the
Knowledge of Seller, shall Purchaser’s use of the Intellectual Property following the Closing, with or without the ITT Name, in substantially the same manner in all material respects as it was used prior to the Closing, infringe or violate any
Intellectual Property or other right of any third Person . None of the Intellectual Property that the Seller owns or uses in respect of the Business is, to the Seller’s Knowledge, being infringed by others. 

 (g) The Seller is not using in respect of the Business any secret formulae, trade secrets, secret
processes, computer programs, confidential information or know-how of others. There are no claims or demands of any other person, firm or corporation pertaining to Intellectual Property which the Seller owns or uses in respect of the Business, and
no proceedings have been instituted, are pending or, to the Seller’s Knowledge, are threatened, which challenge the rights of the Seller or any Associate of Seller in respect thereof. Except for off-the-shelf software and/or information
technology or communication devices and except for a license to use the mark “ITT”, the Seller has no Licensed Intellectual Property material to the operation of the Business. 

(h) Schedule 3.23(h) lists all off the shelf software material to the operation of the Business and identifies whether it is (i) covered
by a fully paid license transferred, (ii) running royalty bearing license transferred, or (iii) NOT transferred. 

Section 3.24 Employees. 

(a) Schedule 3.24(a) contains a list of all of the employees of the Seller involved exclusively in the Business, none of whom are union
members (the “Salaried Employees”) and which list includes the current title and pay rate or salary for each such employee. 
 (b)
Schedule 3.24(b) sets forth for each of the Salaried Employees, the number of unused vacation days and sick days to which each such employee is entitled as of the date hereof. 

(c) Seller is in compliance with the Worker Adjustment and Retraining Notification Act and the regulations promulgated thereunder
(“WARN”). 
 Section 3.25 Brokers or Finders. Except for EuroConsult, Inc., the Seller has not incurred any
obligation, contingent or otherwise, for broker’s fees or similar payments in connection with the purchase and sale of the Purchased Assets. 

Section 3.26 Powers of Attorney. There are no outstanding powers of attorney of the Seller in respect of the Business other than
those issued in the ordinary course of business with respect to insurance, Intellectual Property and Tax matters, all of which are set forth on Schedule 3.26. 

Section 3.27 Accounts Receivable. Schedule 3.27 sets forth a true and complete list of the Accounts Receivable as of
April 25, 2015. All of the Accounts Receivable have or will have arisen out of bona fide transactions in the ordinary course of business and are carried on Seller’s books and records at values determined in accordance with GAAP
consistently applied in accordance with Seller’s accounting policies. Except as set forth on Schedule 3.27, to Seller’s Knowledge, no request or agreement for deduction or discount has been made with respect to any of such Accounts
Receivable. 
 Section 3.28 Accounts Payable. All Accounts Payable that are included in the Assumed Liabilities are separately
listed on Exhibit A as “Accounts Payable.” All Accounts Payable (i) have arisen in the ordinary course of the business and in amounts consistence with 

 
the historical experience of the Business, and (ii) are solely for the benefit of the Business (and not for any other portion of Seller’s business activities or those of any of
Seller’s Associates). Seller shall be responsible for paying all Accounts Payable not included in the Assumed Liabilities. 

Section 3.29 Product Warranties. To Sellers Knowledge, there are no liabilities for product returns other than those arising in
the ordinary course of business that would reasonably be expected to be incurred after Closing. To the Sellers Knowledge, there are no threatened claims for (a) product returns, (b) Warranty Obligations or (c) product services other
than in the ordinary course of business. To Sellers Knowledge, there does not presently exist any circumstances that would constitute a valid basis for any voluntary or governmental recall of any product sold or distributed by the Sellers in the
course of or that relates to the Business. 
 Section 3.30 Ordinary Course. Since the Balance Sheet Date, Seller has conducted
the Business in the ordinary course and consistent with prior practices in all material respects. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND PARENT 

The Purchaser and Parent, jointly and severally, represent and warrant to the Seller as follows: 

Section 4.1 Corporate Organization. The Purchaser is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware. The Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Minnesota. 

Section 4.2 Due Authorization; Authority of Purchaser and Parent; Enforceability. 

(a) Each of the Purchaser and the Parent has all requisite power and authority to make, execute, deliver and perform this Agreement and the
Transaction Documents to which each is a party and to consummate the transactions contemplated hereby and thereby. 
 (b) The execution and
delivery by Purchaser and the Parent of this Agreement and the other Transaction Documents to which each is a party has been, and the consummation by Purchaser and the Parent of the transactions contemplated hereby and thereby have been, duly
authorized by all necessary corporate action on the part of Purchaser and the Parent, and no other corporate proceeding is necessary for the execution and delivery of this Agreement or such other agreements by Purchaser and the Parent or the
performance by Purchaser and the Parent of their obligations hereunder or thereunder. 
 (c) This Agreement and each of the Transaction
Documents to which each of the Purchaser and Parent is a party constitutes the legal, valid and binding obligation of each enforceable against each of them in accordance with their respective terms, except as enforcement of such terms may be limited
by bankruptcy, insolvency, reorganization, moratorium-or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies and defenses. 

 Section 4.3 No Violation. The execution and delivery of this Agreement and the
Transaction Documents to which each of Purchaser or Parent is a party and the consummation of the transactions contemplated hereby and thereby will not (i) violate or conflict with any provision of the governing documents of the Purchaser or
the Parent, (ii) violate or conflict with any provision of, or result in the termination of, or the acceleration of (or entitle any party to exercise a right to terminate or accelerate) any obligation under, any mortgage, note, lien, contract,
lease, franchise, license, permit, agreement, plan, instrument, order, arbitration award, judgment or decree to which either the Purchaser or the Parent is a party or by which either the Purchaser or the Parent is bound, or require the consent of
any party thereto, or (iii) violate or conflict with any other material contractual or statutory restriction of any kind or character to which either the Purchaser or the Parent is subject; or (iv) violate in any material respect any Law
or any decree or judgment of any court or other Governmental Authority applicable to Purchaser or the Parent. Except as set forth on Schedule 4.3, neither Purchaser nor Parent is or will be required to obtain any consent from any person in
connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 

Section 4.4 Financing. The Purchaser has all funds, or immediate access to funds (including through available credit facilities),
necessary to pay the Purchase Price and fulfill its obligations to the Seller hereunder. 
 Section 4.5 Brokers or Finders.
Neither the Purchaser nor the Parent has incurred any obligation, contingent or otherwise, for broker’s fees or similar payments in connection with the purchase and sale of the Purchased Assets. 

ARTICLE V 
 COVENANTS

 Section 5.1 Title Insurance and Survey. As a condition to Purchaser’s execution of this Agreement, Purchaser
shall have received at its sole cost and expense: 
 (a) ALTA Owner’s Title Insurance Policies dated as of the Closing Date issued to
the Purchaser by a Title Insurer approved by the Purchaser with respect to the Owned Real Property with survey, zoning, mechanics liens and, as appropriate, “gap” coverage, which (i) insure in amounts reasonably acceptable to the
Purchaser that the fee simple absolute title in the real property described therein is marketable and valid and vested in the Purchaser, subject only to Permitted Exceptions and the exceptions listed in Schedule 3.10(a) in respect of such
property and to no other exceptions, printed or otherwise, (ii) affirmatively insure against encroachments and against violations of applicable covenants, conditions and restrictions and, where available, compliance with zoning laws and
regulations and (iii) contain endorsements to the effect that the Title Insurer will not claim as a defense under the policy failure of the insured to disclose to the Title Insurer prior to the date of the policy any defects, liens,
encumbrances or adverse claims not shown by public records and known to the insured (but not known to the Purchaser) prior to the Closing (the premiums for such policies as well as the title commitment and survey charges, including, but not limited
to, charges for title abstract and examination, shall be paid by the Purchaser); 

 (b) Current surveys of the Owned Real Property in form acceptable to the Title Insurer showing
all matters of survey, including, but not limited to, deed record and occupied boundary lines, and the location of all buildings, other improvements, easements, curb cuts, projections encroachments, rights of way and streets; and 

(c) Flood insurance, in the event a Hazard Certificate from the Federal Emergency Management Agency shows the Owned Real Property is in any
type of flood zone or area. 
 Section 5.2 Seller Mail. Effective upon the Closing Date, Purchaser shall have the right to
receive and open all mail, packages and other communications addressed to either Seller and delivered to the Owned Real Property, and the Seller agrees to deliver promptly to Purchaser any such mail, packages or other communications received
directly or indirectly by the Seller that relates to the Purchased Assets and Assumed Liabilities. Purchaser shall promptly deliver to the Seller all mail, packages and other communications received by it that relate to the Seller but do not relate
to the Purchased Assets or Assumed Liabilities. 
 Section 5.3 Collection; Inquiries. In recognition of the fact that following
the Closing, Seller may continue to receive payments in connection with Accounts Receivable, Seller shall promptly upon the receipt by Seller of such funds (i.e. upon funds clearing Seller’s lock-box or other applicable bank account), but no
less frequently than every other Friday (or other mutually agreed day each week) following the Closing Date (or next Business Day, in the event a such mutually agreed day is not a Business Day), remit all such payments to Purchaser by wire transfer;
provided that in the event the amounts held by Seller are less than $2,000, the funds can be held until the later of the next regular payment date and the amount of the funds reaching an aggregate of $2,000. Seller agrees to use its reasonable best
efforts to cooperate in notifying customers, or prior customers, of the Business to make payments in connection with the aforementioned Accounts Receivable and other Purchased Assets directly to Purchaser and shall otherwise direct correspondence
and inquiries relating to the Business to Purchaser. 
 Section 5.4 Business Relations. Seller will reasonably cooperate with
Purchaser in Purchaser’s efforts to preserve Purchaser’s relations and goodwill with the customers, suppliers, creditors, employees, agents, and other business relations of Seller relating to the Purchased Assets or the Business that
existed before the date of this Agreement. 
 Section 5.5 Business Referrals. Seller will refer to Purchaser all customer and
supplier inquiries that Seller receives in connection with the Business associated with the Purchased Assets and Assumed Liabilities. 

Section 5.6 Non-Competition. 

(a) Purchaser, Parent, and Seller agree that for a period of three (3) years after the Closing (the “Restricted Period”),
neither Seller nor any Person that is at the time in question a direct or indirect subsidiary of ITT (the “Restricted Parties”) shall, directly or indirectly, compete with the Business (as conducted as of the Closing Date), or own an
interest in, manage, operate, join, control or participate in the ownership, management, operation or control of, or act as a director, officer, employee, partner or consultant with, any profit or non-profit business or

 
organization, which competes with the Business (as conducted as of the Closing Date) anywhere in the world; provided, that ownership of less than five percent (5%) of the outstanding stock
of any publicly traded entity shall not be deemed to violate the foregoing restriction set forth in this Section 5.6(a). The time period during which the restrictions set forth in this Section 5.6(a) apply shall be extended by the length
of time during which the Seller, or any controlled Associate of the Seller, violates these restrictions in any respect. Notwithstanding the foregoing, nothing in this Section 5.6(a) shall restrict (A) the purchasing by the Seller or any of
its Associates of products from a competitor of the Business as a component part to be incorporated into a product manufactured or sold by Seller or such Associate or (B) the manufacture and sale by or on behalf of any Associate of any product
that as of the date of this Agreement is being manufactured and sold by or on behalf of such Associate or (C) the acquisition by an Associate of any company or business (an “Acquired Business”) whose operations would contravene this
Section 5.6(a) (the “Competing Operations”); provided, that (a) the Competing Operations represent less than twenty percent (20%) of the total annual sales of such Acquired Business, or (b) such Associate divests such
Competing Business (at least to the extent necessary to that it represents less than twenty percent (20%) of the total annual sales of such Acquired Business) included within the Acquired Business within one (1) year after the acquisition
of such Acquired Business. 
 (b) During the period commencing on the Closing Date and ending on the first anniversary of the Closing Date,
none of the Restricted Parties shall, directly or indirectly, (i) recruit, offer employment, employ or engage as a consultant any employee of the Purchaser or its Associates who was an employee of the Seller immediately prior to the Closing or
(ii) solicit, knowingly persuade or induce any employee of the Purchaser or its Associates who was an employee of the Seller immediately prior to the Closing to terminate his or her employment with the Purchaser or its Associates; provided that
the foregoing restriction set forth in this Section 5.6(b) does not apply to general advertisements or other solicitations for employment distributed publicly and not directed at, or in communication with, any particular employee or group of
employees. 
 (c) During the period commencing on the Closing Date and ending on the first anniversary of the Closing Date, Seller shall not
directly or indirectly solicit, knowingly persuade or induce any proprietor, lender, joint venturer, lessor, customer, supplier or vendor which has a business relationship involving the Business, to discontinue, reduce or modify in a manner adverse
to the Business such relationship with the Purchaser. Subject to the foregoing sentence, Seller and its Associates may have a business relationship with such proprietors, lenders, joint venturers, lessors, customers, suppliers or vendors that is
unrelated to the Business as conducted as of the Closing Date or not competitive with the Business as conducted as of the Closing Date. 

(d) In the event that the covenants in this Section 5.6 shall be determined by any court of competent jurisdiction to be unenforceable by
reason of its extending for too great of time or over too great a geographical areas or by reason of its being too extensive in any other respect, it shall be interpreted to extend only over the maximum period of time for which it may be enforceable
and/or over the maximum geographical area as to which it may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. 

 (e) Seller acknowledges that a breach of the covenants contained in this Section 5.6 may
cause irreparable damage to the Purchaser and the Business, the exact amount which will be difficult to ascertain, and that remedies at law for any such breach may be inadequate. Accordingly, the Seller agrees that if it or any of its Associates
breach any of the covenants contained in this Section 5.6, in addition to any other remedy which may be available at law or in equity, Purchaser shall be entitled to specific performance and injunctive relief, without posting bond or any other
security. 
 Section 5.7 Use of Seller Names and Marks. Purchaser acknowledges and agrees that on the Closing Date, subject to
Seller’s and its Associates’ performance of services under the Transition Services Agreement, the Purchaser shall cease and discontinue all uses of the “ITT” and “Cleveland Motion Controls” (together, the “ITT
Name”) and any use of the ITT Name in any logos and trademarks, and complete the removal of the ITT Name from all products, technical information and promotional materials (physical as well as electronic). Notwithstanding the foregoing, the
Purchaser shall be permitted to use the ITT Name: (a) on products, technical information and other deliverables to the extent specifically required for the Purchaser to comply with the requirements of any Assigned Contract, (b) on existing
hardcopy brochures and invoices for ten (10) days following the Closing Date, and/or (c) on finished goods and inventory for thirty (30) days following the Closing Date. The Purchaser agrees that from and after the Closing Date that
it (x) will not expressly, or by implication, do business as or represent itself as the Seller, or (y) with respect to products or services sold or provided by it after the Closing Date, will not represent that such products or services
are those of the Seller. The Purchaser acknowledges and agrees that it shall not have any rights in the ITT Name and shall not contest the ownership or validity of any rights of the Seller in or to the ITT Name. 

Section 5.8 Warranty Obligations. Following the Closing, the Purchaser will perform all Warranty Obligations. Warranty Obligations
to be paid, performed and discharged by the Purchaser hereunder will be limited to the obligations stated under the applicable warranties of the Seller. Products will be deemed to be “maintained and sold” prior to the Closing Date if such
products were completed, sold and shipped prior to the Closing Date or were in finished goods Inventory. Products that were not completed prior to the Closing Date or were in raw materials or work in process Inventory will not be deemed to have been
manufactured and sold prior to the Closing Date and any warranty obligations with respect to such products will be the sole responsibility of the Purchaser. As consideration for the Purchaser’s performance of the Warranty Obligations, the
Seller will pay to the Purchaser on a monthly basis the direct cost (material, labor and overhead, without mark-up) incurred by the Purchaser in performing any Excluded Warranty Obligations. The Purchaser will submit an invoice to the Seller on a
monthly basis for all such costs incurred during the preceding calendar month. All amounts reflected on such invoices will be payable within ten (10) Business Days after the Seller’s receipt thereof. 

ARTICLE VI 
 SURVIVAL
AND INDEMNIFICATION 
 Section 6.1 Survival of Representations and Warranties. The representations and warranties
contained in this Agreement shall survive until the date that is eighteen (18) months from the Closing Date, except (i) the Fundamental Representations shall survive the Closing 

 
indefinitely; (ii) the representations and warranties set forth in Section 3.21 (Environmental Matters) shall survive for a period of five (5) years following the Closing
Date; and (iii) the representations and warranties set forth in Sections 3.16 (Employee Benefit Plans) and 3.17 (Tax) shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver,
mitigation or extension thereof) plus sixty (60) days (such survival periods, the “Survival Periods”); provided, however, that in all cases, representations and warranties in respect of which an indemnification claim shall be
pending as of the end of the applicable period referred to above shall survive with respect to such indemnification claim until the final disposition thereof. None of the covenants or other agreements contained in this Agreement shall survive the
Closing Date other than those which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated by its terms. 

Section 6.2 Indemnification. 

(a) Subject to the other provisions of this Article VI, the Seller agrees to indemnify the Purchaser and the Parent, and their respective
officers, directors, employees and agents (each individually a “Purchaser Indemnitee” and collectively the “Purchaser Indemnitees”) and to hold each Purchaser Indemnitee harmless from and against all damages (excluding
consequential, indirect, special or punitive damages), losses and expenses (including reasonable attorneys’ fees and expenses) (“Losses”) actually suffered by Purchaser or Parent caused by or arising out of any: 

(i) any breach of any representation or warranty of Seller contained in this Agreement; 

(ii) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement; 

(iii) any claim in respect of any liabilities resulting from acts or omissions of the Seller on or prior to the Closing Date, including , but
not limited to, any claim or liability with regard to any Tax arising with respect to, resulting from or attributable to any period or portion thereof ending on or prior to the Closing Date, other than Assumed Liabilities; and 

(iv) the Excluded Liabilities. 

(b) Subject to the other provisions of this Article VI, the Purchaser and the Parent, jointly and severally, agree to indemnify the Seller,
and its respective officers, directors, employees and agents (each individually a “Seller Indemnitee,” and collectively the “Seller Indemnitees”) and to hold each Seller Indemnitee harmless from and against all Losses caused by
or arising out of any: 
 (i) any breach of any representation or warranty of Purchaser or Parent contained in this Agreement; 

(ii) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Purchaser pursuant to this Agreement; 

 (iii) any claim in respect of any liabilities resulting from acts or omissions of the Purchaser
or Parent on or after the Closing Date, and 
 (iv) failure of the Purchaser to discharge any Assumed Liabilities. 

Section 6.3 Limitations on Liabilities. 

(a) Notwithstanding the provisions of this Article VI, (i) the Seller shall not have any liability to Purchaser Indemnitees under
Section 6.2(a)(i) unless and until the amount of the aggregate indemnification obligations exceed Forty Five Thousand Dollars ($45,000.00) (the “Threshold”), whereupon the Seller shall indemnify the Purchaser Indemnitees for the
amount of all Losses solely to the extent that such Losses exceed the Threshold, and (ii) the aggregate amount of the Seller’s liability under Section 6.2(a)(i) shall not exceed fifteen percent (15%) of the Purchase Price, except
(A) with respect to a breach of a Fundamental Representation of Seller, in which case the aggregate amount of the Seller’s liability under Section 6.2(a)(i) shall not exceed one hundred percent (100%) of the Purchase Price, or
(B) in the case of fraud or willful misconduct by such party, in which case there shall be no cap on the aggregate amount of the Seller’s liability. 

(b) Notwithstanding the provisions of this Article VI, (i) neither the Purchaser nor the Parent shall have any liability to Seller
Indemnitees under Section 6.2(b)(i) unless and until the amount of the aggregate indemnification obligations exceed the Threshold, whereupon the Purchaser and the Parent shall indemnify the Seller Indemnitees for the amount of all Losses solely
to the extent that such Losses exceed the Threshold, and (ii) the aggregate amount of the Purchaser’s and Parent’s joint liability under Section 6.2(b)(i) shall not exceed fifteen percent (15%) of the Purchase Price, except
(A) with respect to a breach of a Fundamental Representation of Purchaser, in which case the aggregate amount of the Purchaser’s and Parent’s joint liability under Section 6.2(b)(i) shall not exceed one hundred percent
(100%) of the Purchase Price, or (B) in the case of fraud or willful misconduct by such party, in which case there shall be no cap on the aggregate amount of the Purchaser’s and Parent’s joint liability. 

(c) The amount of any Losses for which indemnification is provided to a Seller Indemnitee or a Purchaser Indemnitee shall be net of any actual
cash insurance recoveries or recoveries of indemnities from any third parties of the indemnified party. If a party obtains such a recovery, such party’s indemnity claim shall not be offset to the extent of the party’s expenses in obtaining
such recovery. Each Person entitled to indemnification hereunder or otherwise to damages in connection with the transactions contemplated in this Agreement shall take all commercially reasonable steps to mitigate all Losses after becoming aware of
any event or circumstance that could reasonably be expected to give rise to Losses that are indemnifiable or recoverable hereunder or in connection herewith. 

(d) Payments by a Seller Indemnitee or a Purchaser Indemnitee in respect of any Loss shall be reduced by an amount equal to any Tax benefit
realized or reasonably expected to be realized as a result of such Loss by the indemnified party. 
 (e) The obligations to indemnify and
hold harmless pursuant to Section 6.2 shall survive the consummation of the transactions contemplated hereby until the end of the 

 
applicable Survival Periods, except for claims for indemnification with respect to which an indemnified party provides a notice for such claim on or before the expiration of the Survival Period,
which claims shall survive until final resolution thereof. 
 (f) All indemnification payments under Article VI shall be adjustments to the
Purchase Price except as otherwise required by applicable Law. 
 Section 6.4 Indemnification Procedure as to Third Party
Claims. 
 (a) Promptly after a Purchaser Indemnitee or a Seller Indemnitee (individually, an “Indemnitee”) obtains knowledge
of the commencement of any third party claim, action, suit or proceeding or of the occurrence of any event or the existence of any state of facts which may become the basis of a third party claim (any such claim, action, suit or proceeding or event
or state of facts being hereinafter referred to in this Section 6.4 as a “Claim”), in respect of which an Indemnitee is entitled to indemnification under this Agreement, such Indemnitee shall notify the indemnitor under this Agreement
(the “Indemnitor”) of such Claim in writing, provided, however, that any failure to give such notice (i) will not waive any rights of the Indemnitee except to the extent that the rights of the Indemnitor are prejudiced thereby, and
(ii) will not relieve the Indemnitor of its obligations as hereinafter provided in this Section 6.4 after such notice is given. With respect to any Claim as to which such notice is given by the Indemnitee to the Indemnitor, the Indemnitor
shall, subject to the provisions of Section 6.4(b) below, be entitled to assume the defense and settlement of such Claim with counsel reasonably satisfactory to the Indemnitee at the Indemnitor’s sole risk and expense upon notice to the
Indemnitee within fifteen (15) days of the notice of the applicable Claim; provided, however, that the Indemnitee (i) shall be permitted to join in the defense and settlement of such Claim and to employ counsel at its own expense,
(ii) shall cooperate with the Indemnitor in the defense and settlement of such Claim in any manner reasonably requested by the Indemnitor, and (iii) shall have the right to pay or settle such Claim at any time in which event the Indemnitee
shall be deemed to have waived any right to indemnification therefor by the Indemnitor. In the event that the Indemnitor elects not to assume the defense and settlement of a Claim, the Indemnitee shall be entitled to pursue the defense and
settlement of such Claim with counsel of its choice and to be reimbursed by the Indemnitor for the reasonable attorney’s fees and expenses incurred with respect thereto, provided that the Indemnitor shall be entitled to join in the defense and
settlement of such Claim and to employ counsel at its own expense. 
 (b) If (i) the Indemnitor fails to assume the defense of such
Claim or, having assumed the defense and settlement of such Claim, fails reasonably to contest such Claim in good faith, or (ii) the remedy sought by the claimant with respect to such Claim is not solely for money damages, the Indemnitee,
without waiving its right to indemnification, may assume the defense and settlement of such Claim, provided, however, that (i) the Indemnitor shall be permitted to join in the defense and settlement of such Claim and to employ counsel at its
own expense, (ii) the Indemnitor shall cooperate with the Indemnitee in the defense and settlement of such Claim in any manner reasonably requested by the Indemnitee, and (iii) the Indemnitee shall not settle such Claim without soliciting
the views of the Indemnitor and giving them due consideration. 

 (c) As used in this Section 6.4, the term Indemnitee shall be deemed to include the plural
thereof where the rights or obligations of more than one Indemnitee may be involved. 
 Section 6.5 Other Indemnification
Claims. Any indemnification claim made by an indemnified party under this Article VI other than a claim relating to a third party shall be made in writing to the indemnifying party promptly after discovery of such claim describing the factual
basis for such claim in reasonable detail to the extent then known to the indemnified party. Within thirty (30) days of its receipt of the indemnification claim, the indemnifying party shall notify the indemnified party in writing of any
dispute relating to such indemnification claim containing sufficient detail to provide the indemnified party with notice of the dispute (a “Dispute”). The parties agree to use their reasonable efforts to resolve the Dispute in accordance
with the provisions of, and procedure described in, Section 8.10. 
 Section 6.6 Sole Remedy. The Purchaser, the Parent,
and the Seller acknowledge and agree that, except for the specific enforcement of rights and obligations as provided in this Agreement, the sole and exclusive remedy of each with respect to any and all Losses or any other damages or losses relating
to the subject matter of this Agreement shall be pursuant to the indemnification provisions set forth in this Article VI. 
 ARTICLE VII

 EMPLOYEES AND EMPLOYEE BENEFITS 

Section 7.1 Employment. The Purchaser shall offer employment, commencing as of the Closing Date to all employees of the Seller, as
such employees are listed on Schedule 7.1(“Offered Employees”), as such list may be updated by the Purchaser prior to the Closing Date, contingent upon each of the Offered Employees submitting to and successfully completing a drug
screening for illegal drugs promptly upon the request of the Purchaser. If there are any union employees, such drug screening for illegal drugs may be subject to the procedures, if any, set forth in the applicable collective bargaining agreement
then in effect to which Seller is a signatory. Each Offered Employee who accepts such offer of employment with Purchaser and commences employment with Purchaser on the Closing Date is referred to herein as a “Transitioned Employee”
and collectively as the “Transitioned Employees,” provided, however, that any employee of Seller who does not successfully complete the drug screening for illegal drugs shall not be a Transitioned Employee and any severance owed to such
employee shall be paid by Seller. The Purchaser agrees that it shall not close the plant located at the Owned Real Property or terminate the employment without cause (which includes without limitation, failure to perform the requirements of the
position in a satisfactory manner) of more than fifteen percent (15%) of the Transitioned Employees prior to the first anniversary of the Closing Date. 

Section 7.2 Compensation and Employee Benefits. The Purchaser shall, effective as of the Closing Date, provide to the Transitioned
Employees (i) base salaries at least equal to their base salaries on the date immediately preceding the Closing Date, and (ii) employee benefits under plans, programs and arrangements substantially equivalent in the aggregate to either
(A) those provided pursuant to the plans, programs and arrangements (other than any related to the equity securities of a Seller) of the Seller in effect on the date immediately preceding the Closing

 
Date, or (B) those provided to comparably situated employees of the Purchaser; provided, however, that nothing herein shall prevent, from and after the Closing Date, the amendment or
termination of any specific plan, program or arrangement or interfere with the Purchaser’s right or obligation to make such changes as are necessary to conform with applicable Laws. Except as provided in Section 7.3, Transitioned Employees
shall be given credit for purposes of eligibility and vesting for all service with a Seller to the same extent as such service was credited for such purpose by such Seller, under each employee benefit plan, program or arrangement of the Purchaser in
which the Transitioned Employees are eligible to participate; provided, however, that in no event shall any Transitioned Employees be entitled to any credit to the extent that it would result in a duplication of benefits with respect to the same
period of service. Except as set forth in Schedule 7.2, in the event that any Transitioned Employee is terminated without cause by the Purchaser prior to the one-year anniversary of the Closing Date, the Purchaser shall pay to such Transitioned
Employee severance in an amount equal to the greater of (i) the severance amount determined under the severance policies of the Purchaser, or (ii) the severance amount determined under the severance policies applicable to the Employees
immediately prior to the Closing, as described on Schedule 7.2. 
 Section 7.3 Healthcare Plans. 

(a) Effective as of the Closing Date, pursuant to Section 7.2, Purchaser shall offer to each Transitioned Employee the opportunity to
elect healthcare coverage. If a Transitioned Employee who is offered such coverage fails to elect it in a timely fashion then, absent a change in status event permitting mid-year elections, such Transitioned Employee may not elect healthcare
coverage until the next open enrollment period. Purchaser shall cause each healthcare plan of the Purchaser in which the Transitioned Employees participate to (i) waive any preexisting condition limitations for conditions covered under the
applicable healthcare plans of the Seller, except that Purchaser may require any Transitioned Employee or eligible dependent thereof who immediately prior to the Closing Date is in the process of satisfying any similar limitations under such plans
of any Seller to fully satisfy the balance of the applicable time period for such limitation under the healthcare plans of the Purchaser, and (ii) honor any deductible and out-of-pocket expenses due to co-insurance actually incurred by the
Transitioned Employees and their beneficiaries under such plans during the portion of the calendar year prior to such participation in a plan of the Purchaser; provided, however, that no such expenses shall be carried over from any preceding
calendar year. 
 (b) (i) The Seller shall be responsible for payment of any premiums for all of the Seller’s welfare benefit plans,
programs and arrangements provided to the Employees as of the the Closing Date (“Seller’s Welfare Benefit Programs”) relating to periods prior to 11:59 p.m. Massachusetts time of the Closing Date (the “Effective Benefits
Time”) and for any liability for all claims, expenses and treatments, including administrative expenses related thereto, which are in fact covered and payable under the terms of the Seller’s Welfare Benefit Program and incurred prior to
the Effective Benefits Time, irrespective of whether any such claim is filed or submitted after the Effective Benefits Time. 
 (ii)
Purchaser shall be responsible for payment of any premiums relating to periods from and subsequent to the Effective Benefits Time for any welfare benefit plans, programs and arrangements which Purchaser at its sole discretion, subject to the

 
requirements of Section 7.2 hereof, may provide to the Transitioned Employees from and after the Effective Benefits Time (“Purchaser’s Welfare Benefits Program”) and for any
liability for all claims, expenses and treatments, including administrative expenses related thereto, which are in fact covered and payable under the terms of Purchaser’s Welfare Benefits Program and incurred from and subsequent to the
Effective Benefits Time. 
 Section 7.4 Seller Savings Plan. From and after the Closing Date, the Purchaser shall permit the
Transitioned Employees to immediately participate in the Purchaser’s 401(k) Plan (the “Purchaser Savings Plan”). The Purchaser shall cause the Purchaser’s Savings Plan to recognize service of Transitioned Employees with the
Seller attributable to any period before the Closing Date for purposes of vesting thereunder. The Purchaser shall cause the trustee of the Purchaser Savings Plan to accept on behalf of such plan a rollover contribution from any Transitioned Employee
or a direct rollover from the trustee of the Seller’s 401(k) Savings Plan (the “Seller Savings Plan”) of a cash amount representing such Transitioned Employee’s interest under the Seller Savings Plan (including for this purpose,
any loan to such Transitioned Employee which is part of such Transitioned Employee’s account balance, provided that the loan is rolled over to the Purchaser’s Savings Plan before the loan is treated as a deemed distribution under the
Seller Savings Plan). 
 Section 7.5 Terminations or Layoffs. In the event of any termination or layoff by Purchaser of any
Transitioned Employee on or after the Closing Date, Purchaser will comply fully with all applicable Laws, including without limitation any laws relating to employee notification (such as WARN and any related state laws in the United States), and all
laws relating to discrimination in employment or unfair employment practices. Purchaser will be responsible for all costs related to such termination or layoff of any Transitioned Employee, including but not limited to severance expenses (including
without limitation any periodic or lump sum severance payments and any employee benefits provided in connection with such severance payment), COBRA continuation benefits, penalties, damages and attorneys’ fees related thereto. 

Section 7.6 Vacation; Sick Time. The Purchaser shall provide all Transitioned Employees with full credit for all accrued and
unused, as of the Closing Date, vacation days and sick days to the extent such accrued and unused vacation and sick days are set forth on Schedule 3.24(b) hereto. 

Section 7.7 Flexible Spending Accounts. Effective as of the Closing Date, Purchaser shall provide Transitioned Employees with a
flexible spending account benefits plan (or plans) in accordance with Section 7.2. Following the Effective Benefits Time, the Seller shall cause the accounts under its flexible spending account plan for each Transitioned Employee to be
transferred to Purchaser’s flexible spending account plan, and Purchaser agrees that such accounts shall be available to each such Transitioned Employee in the same manner they were available under Seller’s flexible spending account plan.

 Section 7.8 Disability. An Offered Employee who is absent from work due to Disability as of the Closing Date shall,
contingent on such Offered Employee submitting to and successfully completing a drug screening test for illegal drugs, subject to the procedures, if any, set forth in the applicable collective bargaining agreement then in effect, shall be treated as
a Transitional Employee at such time as his or her Disability does not affect his or her ability to perform the position held by such individual with the Business prior to such Disability. 

 Section 7.9 Assistance. The Seller and Purchaser agree to cooperate fully with
respect to the actions necessary to effect the transactions contemplated in this Article VII, including the provision of records (including payroll records) and information as each may reasonably requested from the other. 

Section 7.10 No Assumption of Plans. With respect to the Transitioned Employees, Purchaser is not assuming, and will not have any
responsibility for the continuation of any employee benefit plan, and Purchaser will not be deemed to be a successor employer to the Seller with respect to any such plan. No employee benefit plan adopted or maintained by Purchaser with respect to
the Transitioned Employees will be deemed a successor plan of the Seller. 
 Section 7.11 Purchaser’s Actions. Nothing in
this Article VII shall require the continued employment of any Person or prevent the Purchaser from taking any action or refrain from taking any action which the Seller or any Associates of Seller, prior to the Closing Date, could have taken or
refrained from taking. 
 Section 7.12 No Third Party Rights. No provision of this Article VII shall create nor is intended to
create nor shall be construed to confer: (i) any third party beneficiary rights in any employee or former employee, or any beneficiary or dependent thereof, of the Business, the Seller, any Associate of Seller, or the Purchaser in respect of
continued employment or resumed employment or in respect of any benefits that may be provided, directly or indirectly, under the employee benefit plans, program, policy, practices, or arrangement of the Business, the Seller, any Associate of Seller,
or the Purchaser whether prior to, on, or after the Closing Date; or (ii) any rights, remedies, obligations, or liabilities, legal or equitable, on any person, firm, corporation, organization, or other entity other than the Seller and the
Purchaser (or their respective successors and assigns). 
 Section 7.13 M&A Qualified Beneficiaries. The parties agree that
Seller shall be solely responsible for satisfying the continuation coverage requirements of Code Section 4980B of the Code for all individuals who are “M&A Qualified Beneficiaries” as such term is defined in Treasury Regulation
Section 54.4980B-9. For purposes of clarification, a Transitioned Employee who accepts healthcare coverage with Purchaser shall not be deemed to be an M&A Qualified Beneficiary. 

Section 7.14 No Modification. Nothing contained herein, express or implied, shall be construed to establish, amend, or modify any
benefit plan, program, agreement, or arrangement 
 ARTICLE VIII 

MISCELLANEOUS 

Section 8.1 Books and Records. At reasonable times after the Closing (a) the Purchaser shall make available to the Seller for
inspection and copying the books and records which are Purchased Assets to the extent reasonably required by the Seller for tax, financial 

 
reporting and other purposes, and (b) the Seller shall make available to the Purchaser for inspection and copying any of Seller’s books and records relating to the Business which are
not Purchased Assets to the extent reasonably required by the Purchaser for such purposes. Neither the Seller on the one hand nor the Purchaser on the other hand will dispose of any of such books and records without first offering them to the other.

 Section 8.2 Further Assurances and Assistance. The Seller, the Purchaser, and the Parent agree that each will execute and
deliver to the other any and all documents, and take such further acts, in addition to those expressly provided for herein, that may be necessary or appropriate to effectuate the provisions of this Agreement. 

Section 8.3 Press Releases and Public Announcements. 

(a) Neither Seller nor Purchaser or Parent shall issue any press release or make any public announcement relating to the subject matter of this
Agreement without the prior written approval of the other; except as may be required by applicable Law (including the Exchange Act), provided, however, that the Seller, the Purchaser, Parent and their respective corporate parents may make any public
disclosure it believes in good faith is required by applicable Law (including the Exchange Act), in which case such party will use commercially reasonable efforts to advise the other party prior to such disclosure. The parties acknowledge that
(i) Parent’s ultimate parent and ITT are publicly held companies subject to disclosure and reporting requirements under the Exchange Act and (ii) the entry into this Agreement may require Parent’s ultimate parent and ITT to
disclose this Agreement and/or its subject matter by filing a Current Report on Form 8-K and include this Agreement and/or its subject matter in disclosures set forth in the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q of ITT and
Parent’s ultimate parent. 
 (b) If the receiving party of any public announcement or statement for review pursuant to this
Section 8.3 does not respond within twenty-four (24) hours from submission, such press release, filing, or public disclosure shall be deemed approved. While the reviewing party shall review comments by such receiving party in good faith,
the disclosing party shall have no obligation to accept or incorporate any such comments if the proposed disclosure is required by applicable Law (including the Exchange Act). 

Section 8.4 Notices. Any notices or other communications required or permitted hereunder shall be in writing and shall be given:

 if to Purchaser, to: 
 SLMTI
DS LLC 
 2002 Black Oak Ave. 

Montevideo, MN 56265 
 Attention:
Louis J. Belardi 
 Email: (856) 727-1683 

Facsimile: louis.belardi@slindustries.com 

 if to Parent to: 

SL Montevideo Technology, Inc. 

520 Fellowship Road, Suite A114 

Mt. Laurel, New Jersey 08054 

Attention: Louis J. Belardi 

Facsimile: (856) 727-1683 

E-mail: louis.belardi@slindustries.com 

With a copy to: 
 Olshan Frome
Wolosky LLP 
 65 East 55th Street 

New York, New York 10022 

Attention: Adam W. Finerman, Esq. 

Email: afinerman@olshanlaw.com 

Facsimile: 212.451.2222 
 if to
the Seller or ITT, to: 
 ITT Corporation 

1133 Westchester Avenue 
 White
Plains, New York 10604 
 Attention: Mary Beth Gustafsson 

Email: marybeth.gustafsson@itt.com 

Facsimile: (914) 696-2990 

With a copy to: 
 Day Pitney LLP

 One International Place 

Boston, MA 02110 
 Attention:
Jeffrey A. Clopeck, Esq. 
 Email: jaclopeck@daypitney.com 

Facsimile: (617) 345-4745 
 or such other
address or facsimile number as such parties may hereafter specify by notice to the other party. Each such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the facsimile
number specified in this Section 8.4 and the appropriate acknowledgment of receipt of such facsimile is received, or (ii) if given by any other means, when delivered at the address specified in this Section 8.4. 

Section 8.5 Transaction Expenses. Each party to this Agreement shall bear and be responsible for all fees, costs and expenses
(including, without limitation, legal and accounting fees and expenses) incurred by such party with respect to the negotiation of this Agreement and the consummation of the transactions contemplated hereby. Any related recording, filing fees or
transfer taxes shall be the obligation of the party customarily responsible for same in the county of Northern Middlesex, Massachusetts. 

 Section 8.6 Bulk Transfer Laws. The parties hereto hereby waive compliance with any
provisions of the so-called “bulk transfer laws” (Article 6 of the Uniform Commercial Code) of any relevant jurisdiction which may be applicable to the transactions contemplated by this Agreement. 

Section 8.7 Miscellaneous Taxes and Expenses. Any sales, use or other tax or recording cost imposed upon the transfer of the
assets and business to be acquired by the Purchaser pursuant to this Agreement shall be paid by the Purchaser. All ad valorem property taxes and all rentals, water, electricity, gas, telephone and other similar and usual expenses in respect of the
Owned Real Property and the Business shall be apportioned as of the Closing Date. 
 Section 8.8 Successors and Assigns. The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided that neither party may assign, delegate or otherwise transfer any of its rights or obligations
under this Agreement without the consent of the other parties hereto. 
 Section 8.9 Governing Law. This Agreement shall be
construed under and in accordance with the laws of the State of New York, without giving effect to any rules governing the conflicts of law. 

Section 8.10 Disputes. Any controversy or claim arising out of this Agreement, or the breach thereof, shall be settled by
arbitration before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”), and judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. Any such arbitration shall be held in New York, New York. Each party thereto shall pay his own expenses, and the fee of the arbitrator and the administrative fee of the AAA shall be paid one half by the Purchaser and one half
by the Seller. The provisions of this Section 8.10 shall not be construed to limit the right or obligation of an Indemnitor pursuant to Section 6.4 to participate in or assume the defense of a Claim, nor to entitle an Indemnitor to
relitigate in an arbitration proceeding issues determined in a court proceeding. 
 Section 8.11 Entire Agreement; Third Party
Rights. This Agreement, the Transaction Documents, the Schedules and the Exhibits hereto constitute the entire understanding of the parties, supersede any prior agreements or understandings, written or oral, between the parties with respect to
the subject matter thereof, and are not intended to confer upon any other person any rights or remedies. 
 Section 8.12 Amendment;
Waiver. This Agreement shall not be amended or modified except by written agreement executed by each of the parties hereto. No provision hereof shall be deemed waived except in writing executed by the waiving party. 

Section 8.13 Effect of Captions. The captions in this Agreement are included for convenience only and shall not in any way affect
the interpretation or construction of any of the provisions hereof. 

 Section 8.14 Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective authorized representatives as of the day and year first above written. 
  

			
	ITT TORQUE SYSTEMS, INC.
		
	By:	 	 /s/ Denise Brower

		 	Name: Denise Brower
		 	Title: Authorized Signatory
	
	SLMTI DS LLC
		
	By:	 	 /s/ Thomas H. Lemley

		 	Name: Thomas H. Lemley
		 	Title: President
	
	SL MONTEVIDEO TECHNOLOGY, INC.
		
	By:	 	 /s/ Thomas H. Lemley

		 	Name: Thomas H. Lemley
		 	Title: President

 EXHIBIT A  

Assumed Liabilities 
 1. Commitments or
obligations arising under the Assigned Contracts, to the extent arising or due to be performed following the close of Business on the Closing Date, including the Accounts Payable. 

2. The Accounts Payable, including those set forth on the exhibit attached hereto. 

3. The Assumed Warranty Obligations. 
 4. See attached. 

 EXHIBIT B 

Excluded Assets 
  

	 	•	 	The Business has not operated as a separate “stand alone” entity. As a result, certain Affiliates of Seller perform administrative and other similar services on behalf of Seller under a shared services
arrangement. Neither the services performed under the shared services arrangement nor the assets associated therewith are Purchased Assets. These services will continue to be performed by Seller or its Affiliates pursuant to the Transition Services
Agreement for the applicable periods set forth therein. 

  

	 	•	 	ITT Signage. 

  

	 	•	 	Registered Trademark for “Cleveland Machine Controls” US Reg. No: 1732505 and associated common law rights 

  

	 	•	 	Registered Trademark for “ITT” US Reg. Nos. 3,108,719 and 3,785,795 and associated common law rights 

  

	 	•	 	Oracle EBS R12 ERP 

 EXHIBIT G  

Allocation of Purchase Price 
 Owned Real
Property-$2,000,000 
 The balance of the Purchase Price to be allocated among the remainder of the Purchased Assets as mutually agreed between the parties
within sixty (60) days after the Closing Date. 

 EXHIBIT H 

Form of Guaranty 

 GUARANTY 

This Guaranty (this “Guaranty”) is made and delivered as of May     , 2015, by ITT Corporation, an
Indiana corporation (“Guarantor”) in favor of SLMTI DS LLC, a Delaware limited liability company (“Purchaser”). Capitalized terms used but not defined in this Guaranty shall have the meanings ascribed to them in the Purchase
Agreement (defined below). 
 WHEREAS, ITT Torque Systems, Inc. an Ohio corporation (“Seller”), Purchaser and SL Montevideo
Technology, Inc., a Minnesota corporation and parent of Purchaser (the “Parent”) have entered into that certain Asset Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which Purchaser will
purchase certain assets from Seller; 
 WHEREAS, Purchaser is a wholly owned indirect subsidiary of Guarantor; and 

WHEREAS, a condition to Purchaser entering into the Purchase Agreement is that Guarantor execute and deliver this Guaranty. 

NOW, THEREFORE, for good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, and in order to
induce Purchaser to enter into the Purchase Agreement, the Guarantor hereby agrees as follows: 
 1. Guarantor irrevocably and
unconditionally guarantees to Purchaser the prompt performance by Seller of all of Seller’s covenants, obligations and agreements under the Purchase Agreement and the Transaction Documents (including the Environmental Side Letter) that survive
the Closing, including but not limited to indemnification obligations (collectively, the “Obligations”). Any recovery under this Guaranty shall include without limitation, all costs and expenses (including reasonable attorneys’ fees)
attributable to the Purchaser’s successful exercise of its legal remedies against the Guarantor. 
 2. The obligations of Guarantor
under this Guaranty shall be absolute, unconditional and irrevocable, and shall remain in full force and effect until the Obligations shall have been satisfied in full, it being the express purpose and intent of Guarantor that its obligations
hereunder shall not be discharged except by payment, performance, discharge or other satisfaction in full of all of Guarantor’s obligations hereunder. Such obligations shall not be in any manner whatsoever affected, modified or impaired by the
happening from time to time of any assignment of the Obligations to a third party or any event or action that would, in the absence of this clause, result in the release or discharge of Guarantor, by operation of law or otherwise, from the
performance of observance of any obligation, covenant or agreement contained in this Guaranty, or the default or failure of Guarantor to perform fully any obligations set forth in this Guaranty. 

3. Guarantor waives diligence, presentment, protest, notice, demand, dishonor and notice of dishonor and any other defenses available to it
hereunder as a surety and agrees to be bound to the Obligations as fully as if it were a co-obligor. The parties to the Purchase Agreement may enter into any amendment, waiver or modification of the Purchase Agreement or other Transaction Document,
whether or not such amendment, waiver or modification would in any way increase or decrease the extent of Guarantor’s obligations hereunder, without notice to or consent of Guarantor and without thereby releasing Guarantor hereunder or
incurring any liability to Guarantor. 
 4. No failure or delay or lack of demand, notice or diligence in exercising any right under this
Guaranty shall operate as a waiver thereof, nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right under this Guaranty. 

 5. This Guaranty is an absolute, unconditional and continuing guaranty of payment and performance
and not of collection. Purchaser need not exhaust or pursue any remedy or take any action in respect of the default of any Obligation guaranteed hereby prior to or as a condition to proceeding directly under this Guaranty against Guarantor. 

6. Guarantor agrees that the obligation of Guarantor as a guarantor shall not be impaired, modified, changed, released, or limited in any
manner whatsoever by any impairment, modification, change, release, or limitation of the liability of the Seller in bankruptcy, resulting from the operation of any present or future provision of the bankruptcy laws or other similar statute, or from
the decision of any court. 
 7. The validity of this Guaranty and the Guarantor’s obligations hereunder shall in no way be terminated,
reduced, impaired or otherwise affected by reason of, and the Guarantor’s liability under this Guaranty shall be absolute and unconditional irrespective of any lack of validity or enforceability of the Purchase Agreement or any other
Transaction Document; provided, however, that Guarantor reserves the right to assert any defense to any claim made by the Purchaser under this Guaranty that is otherwise available to Seller in response to claims made by the Purchaser against the
Seller under the Purchase Agreement or any other Transaction Document. 
 8. This Guaranty is and shall be available to the successors and
assigns of Purchaser and is and shall always be fully binding upon the successors and assigns of Guarantor, provided that Guarantor shall not assign any of its rights or obligations hereunder without the prior written consent of Purchaser. 

9. Guarantor represents and warrants to Purchaser, as of the date hereof and as of the Closing Date, as follows: (a) Guarantor is a
corporation, organized under the laws of Indiana, and has all requisite power and authority to enter into this Guaranty and consummate the transactions contemplated hereby; (b) Guarantor is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization; (c) the execution, delivery and performance by Guarantor of this Guaranty, and the consummation by Guarantor of the transactions contemplated hereby, have been duly authorized by all necessary
corporate action on the part of Guarantor; (d) this Guaranty has been duly executed by Guarantor; and (e) this Guaranty constitutes a valid and legally binding obligation of Guarantor, enforceable against Guarantor in accordance with its
terms. 
 10. This Guaranty shall be governed by and construed in accordance with the laws of the State of New York. 

[SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the Guarantor has executed this Guaranty on the date first written above.

  

					
	 GUARANTOR:
 ITT
CORPORATION

		
	By:	 	   /s/ Steven Giuliano

		 	  Name:	 	Steven Giuliano
		 	  Title:	 	VP and Chief Accounting Officer

  

					
	 Accepted:
 SLMTI DS
LLC

		
	By:	 	   /s/ Thomas H. Lemley

		 	  Name:	 	Thomas H. Lemley
		 	  Title:	 	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]