Document:

EX-10.1

[EXECUTION COPY]

STOCK PURCHASE AGREEMENT

between

Ving Holdings (Belgium) BVBA in incorporation (“in oprichting”), as Purchaser,

and

ARC Europe SA, as Seller,

Dated as of September 6, 2007

1

STOCK PURCHASE AGREEMENT

This STOCK PURCHASE AGREEMENT is dated as of September 6, 2007 (as amended or otherwise
modified from time to time, this “Agreement”), by and between Ving Holdings (Belgium) BVBA
in incorporation (“in oprichting”), a Belgian limited liability company (“Purchaser”), and
ARC Europe SA, a Belgian company (“Seller”).

WHEREAS, Seller is the direct record and beneficial owner of all issued and outstanding shares
(the “Capital Stock”) of VSK Electronics NV, a Belgian limited liability company (“naamloze
vennootschap”) (the “Company”);

WHEREAS, (a) the Company is the direct record and beneficial owner of (i) 99.0% of the issued
and outstanding shares of Tele Technique Generale SA (“TTG”), (ii) 99.9% of the issued and
outstanding shares of IDCS NV (“IDCS”), (iii) 99.9% of the issued and outstanding shares of
Vigitec SA (“VIGITEC”) and (iv) 100.0% of the issued and outstanding shares of Belgian
Automation Units NV (“Belmation”; the Company, together with TTG, IDCS, VIGITEC and
Belmation the “Acquired Companies”), and (b) Belmation is the direct owner of (i) 1.0% of
the issued and outstanding shares of TTG, (ii) 0.1% of the issued and outstanding shares of IDCS
and (iii) 0.1% of the issued and outstanding shares of VIGITEC;

WHEREAS, Purchaser desires to purchase from Seller, and Seller desires to sell to Purchaser,
all of the issued and outstanding Capital Stock;

WHEREAS, Seller and Purchaser desire to make certain representations and warranties and other
agreements in connection with the Acquisition (as hereinafter defined); and

WHEREAS, The Allied Defense Group Inc., the indirect parent company of Seller (the
“Parent”), will guaranty the performance of the obligations of Seller to facilitate the
Contemplated Transactions (as defined below).

Terms used but not otherwise defined in this Agreement shall have the meanings assigned to
such terms in Annex I.

NOW, THEREFORE, in consideration of the premises and the mutual representations hereinafter
set forth, the parties hereto agree as follows:

ARTICLE I

Purchase and Sale of Capital Stock; Closing

SECTION 1.01 Purchase and Sale of the Capital Stock. On the terms and subject to the
conditions of this Agreement, on the Closing Date (as hereinafter defined), Seller shall sell,
transfer, convey and deliver to Purchaser, and Purchaser shall purchase and acquire from Seller,
good and valid title to the Capital Stock, free and clear of all Encumbrances.

SECTION 1.02 Aggregate Consideration. The aggregate consideration for the purchase
and sale of the Capital Stock on the Closing Date will be equal to (i) €35,000,000 (the “Base
Purchase Price”) plus (ii) the Closing Cash Amount minus (iii) the Closing Debt
Amount minus (iv) the amount of any Seller Transaction Expenses not otherwise paid prior to
the Closing Date (such aggregate consideration, the “Purchase Price”). The Purchase Price
shall be subject to adjustment in accordance with Sections 1.06 and 1.07,
Article VIII and the terms and conditions of the Escrow Agreement. The purchase and sale
of the Capital Stock is referred to in this Agreement as the “Acquisition.”

SECTION 1.03 Closing Date. Unless this Agreement is earlier terminated pursuant to
Article VI hereof, the closing of the purchase and sale of the Capital Stock and the
transfer of title to the Capital Stock by Seller to Purchaser (the “Closing”) will take
place as promptly as practicable, but no later than five (5) business days, following satisfaction
or waiver of the conditions set forth in Article VII hereof (other than those conditions
which can be satisfied only at the Closing, but subject to the satisfaction or waiver of such
conditions at Closing), at the offices of Seyfarth Shaw LLP, Boulevard du Souverain 280, Brussels,
B-1160, Belgium, unless another place or time is agreed to by Purchaser and Seller. The date upon
which the Closing actually occurs is herein referred to as the “Closing Date.” Subject to
the provisions of Article VI of this Agreement, the failure to consummate the Closing on
the date and time and at the place determined pursuant to this Section 1.03 shall not
result in the termination of this Agreement and shall not relieve any party to this Agreement of
any obligation under this Agreement.

SECTION 1.04 Purchaser Closing Deliveries and Payments. Upon the terms and subject to
the conditions set forth in this Agreement, Purchaser shall deliver or cause to be delivered at the
Closing the following:

(a) to Seller, by wire transfer of immediately available funds to an account designated by
Seller in writing to Purchaser, an amount of cash equal to the Purchase Price minus the
Escrow Amount;

(b) to the Escrow Agent, by wire transfer of immediately available funds, the Escrow Amount;
and

(c) all of the documents, certificates, agreements and instruments required to be delivered by
or on behalf of Purchaser at or prior to Closing pursuant to Section 7.02;

(d) Purchaser will be entitled to deduct and withhold, or cause the Escrow Agent to deduct and
withhold, from any amounts payable under this Agreement or the Escrow Agreement any withholding
Taxes or other amounts required under any applicable Legal Requirement to be deducted and withheld.
To the extent that any such amounts are so deducted or withheld, such amounts will be treated for
all purposes of this Agreement as having been paid to the Person in respect of which such deduction
and withholding was made.

SECTION 1.05 Seller Closing Deliveries. Upon the terms and subject to the conditions
set forth in this Agreement, Seller shall deliver or cause to be delivered at the Closing all of
the documents, certificates, agreements, opinions and instruments required to be delivered by or on
behalf of such Seller at or prior to Closing pursuant to Section 7.01.

SECTION 1.06

2

Purchase Price Adjustment.

(a) Estimated Closing Balance Sheet and Estimated Closing Statement. The Seller shall
cause the Company to prepare in good faith and shall provide to Purchaser no later than five (5)
Business Days prior to the Closing Date an estimated consolidated balance sheet of the Company as
of 11:59 p.m. (Brussels time) on the day immediately preceding the Closing Date (the “Estimated
Closing Balance Sheet”), together with a written statement setting forth in reasonable detail
its good faith estimates of the Closing Cash Amount, the Closing Debt Amount and Trade Working
Capital and Seller Transaction Expenses (as the same may be adjusted in response to any good faith
objections of Purchaser and its Representatives provided prior to the Closing, the “Estimated
Closing Statement”). The Estimated Closing Balance Sheet, the Estimated Closing Statement and
the Company’s good faith estimate of Trade Working Capital contained in the Estimated Closing
Statement will be prepared in accordance with GAAP as in effect on the date of the Most Recent
Balance Sheet and using the same accounting methods, principles, practices, procedures and
calculation methodologies as those utilized in the Closing Cash Amount, Closing Debt Amount, and
Trade Working Capital calculation attached as Exhibit 1.06(a) (the “Purchase Price
Calculation Principles”). Following the delivery of the Estimated Closing Balance Sheet and
Estimated Closing Statement, the Purchase shall cause the Company to provide the Purchaser and its
Representatives reasonable access to the work papers and other books and records and
Representatives of the Acquired Companies for purposes of assisting Purchaser and its
Representatives in their review of the Estimated Closing Balance Sheet and Estimated Closing
Statement. Prior to Closing, the parties shall cooperate in good faith to answer any questions and
resolve any issues raised by Purchaser and its Representatives in connection with their review of
the Estimated Closing Balance Sheet and Estimated Closing Statement.

(b) Estimated Purchase Price. The Purchase Price payable at Closing under Section
1.04(a) shall be calculated using the estimated Closing Cash Amount, Closing Debt Amount and
Seller Transaction Expenses set forth on the Estimated Closing Statement. In addition, the
Purchase Price payable at Closing under Section 1.04(a) shall be (i) increased by the
amount, if any, by which the estimated Trade Working Capital set forth on the Estimated Closing
Statement (“Estimated Trade Working Capital”) is greater than €6,100,000 (“Target Trade
Working Capital”) or (ii) reduced by the amount, if any, by which the Estimated Trade Working
Capital is less than Target Trade Working Capital.

(c) Closing Balance Sheet and Final Closing Statement. As promptly as possible and in
any event within sixty (60) calendar days after the Closing Date, the Purchaser shall
cause the Company to prepare or cause to be prepared, and will provide to Seller, a consolidated
balance sheet of the Company as of 11:59 p.m. (Brussels time) on the day immediately preceding the
Closing Date (the “Closing Balance Sheet”), together with a written statement
setting forth in reasonable detail its proposed final determination of the Closing Cash Amount, the
Closing Debt Amount, Seller Transaction Expenses and Trade Working Capital (the “Final Closing
Statement”). The Closing Balance Sheet and the determination of Trade Working Capital
reflected on the Final Closing Statement will be prepared in accordance with the Purchase Price
Calculation Principles. Seller and its Representatives will have reasonable access to the work
papers and other books and records and Representatives of the Acquired Companies for purposes of
assisting Seller and its Representatives in their review of the Closing Balance Sheet and the Final
Closing Statement.

(d) Dispute Notice. The Closing Balance Sheet and the Final Closing Statement (and
the proposed final determinations of the Closing Cash Amount, the Closing Debt Amount, Seller
Transaction Expenses and Trade Working Capital reflected thereon) will be final, conclusive and
binding on the parties unless Seller provides a written notice (a “Dispute Notice”) to
Purchaser no later than the sixtieth (60th) calendar day after the delivery to Seller of the Final
Closing Statement. Any Dispute Notice must set forth in reasonable detail (a) any item on the
Closing Balance Sheet and/or the Final Closing Statement which Seller believes has not been
prepared in accordance with this Agreement and the correct amount of such item and (b) Seller’s
alternative calculation of the Closing Cash Amount, the Closing Debt Amount, Seller Transaction
Expenses and/or Trade Working Capital, as the case may be. Any item or amount to which no dispute
is raised in the Dispute Notice will be final, conclusive and binding on the parties. Any Dispute
Notice must specify, with reasonable particularity, all facts that form the basis of such
disagreements and all statements by Persons (who shall be identified by name) and documents relied
upon by Seller as forming the basis of such disagreement.

(e) Resolution of Disputes. Purchaser and Seller will attempt to promptly resolve the
matters raised in a Dispute Notice in good faith. Beginning fifteen (15) Business Days after
delivery of the Dispute Notice pursuant to Section 1.06(d), either Purchaser or Seller may
provide written notice to the other (the “Dispute Submission Notice”) that it elects to
submit the disputed items to an internationally recognized independent accounting firm chosen
jointly by Purchaser and Seller (the “Accounting Firm”). In the event that such an
Accounting Firm has not been selected by mutual agreement of Purchaser and Seller within ten (10)
Business Days following the giving of the Dispute Submission Notice, each of Purchaser and Seller
shall promptly select an accounting firm and promptly cause such two accounting firms to mutually
select an independent accounting firm to act as the Accounting Firm within twenty (20) Business
Days of the giving of the Dispute Submission Notice. The Accounting Firm will promptly, in
accordance with the rules set forth in the Accounting Firm’s engagement letter and its customary
practices, review only those items and amounts specifically set forth and objected to in the
Dispute Notice and resolve the dispute with respect to each such specific item and amount in
accordance with this Agreement. In any such case, a single partner of the Accounting Firm selected
by such Accounting Firm in accordance with its normal procedures and having expertise with respect
to settlement of such disputes and the industry in which the Acquired Companies operate shall act
for the Accounting Firm in the determination proceeding, and such partner shall render a written
decision as to each such disputed matter, including a statement in reasonable detail of the basis
for each such decision. In no event shall the decision of the Accounting Firm (i) provide for a
calculation of the Closing Cash Amount or Trade Working Capital that is less than the calculation
thereof shown in the Final Closing Statement or greater than Seller’s alternative calculation
thereof shown in the Dispute Notice or (ii) provide for a determination of any item of Debt
reflected in the Closing Debt Amount or any Seller Transaction Expense that is greater in amount
than the amount thereof shown in the Final Closing Statement or less in amount than Seller’s
alternative calculation thereof shown in the Dispute Notice. The fees and expenses of the
Accounting Firm shall be borne equally by Seller and Purchaser, and the decision of the Accounting
Firm with respect to the items of the Closing Balance Sheet and the Final Closing Statement
submitted to it will be final, conclusive and binding on the parties. Each of the parties to this
Agreement agrees to use its Commercially Reasonable Efforts to cooperate with the Accounting Firm
(including by executing a customary engagement letter reasonably acceptable to it) and to cause the
Accounting Firm to resolve any such dispute as soon as practicable after the commencement of the
Accounting Firm’s engagement.

(f) Trade Working Capital Adjustment. If the Trade Working Capital (as finally
determined pursuant to this Section 1.06 is greater than Estimated Working Capital, then
the Purchaser or any Affiliate designated by the Purchaser will pay to Seller its share of such
difference by wire transfer of immediately available funds. If the Trade Working Capital (as
finally determined pursuant to this Section 1.06) is less than Estimated Working Capital,
then an amount equal to such difference will be paid by Seller to the Purchaser or any Affiliate
designated by the Purchaser.

(g) Other True-up Payments. If any of the Closing Cash Amount, the Closing Debt
Amount or Seller Transaction Expenses (as finally determined pursuant to this Section 1.06)
differs from the estimated Closing Cash Amount, estimated Closing Debt Amount or estimated Seller
Transaction Expenses set forth in the Estimated Closing Statement, the Purchase Price shall be
recalculated using such final figures in lieu of such estimated figures, and (i) the Purchaser or
any Affiliate designated by the Purchaser shall pay to Seller by wire transfer of immediately
available funds its share of the amount, if any, by which such re-calculated final Purchase Price
exceeds the estimated Purchase Price paid at Closing in accordance with Sections 1.04(a)
and 1.06(b) or (ii) the amount, if any, by which such estimated Purchase Price paid at
Closing in accordance with Sections 1.04(a) and 1.06(b) exceeds such re-calculated
final Purchase Price shall be paid by Seller to the Purchaser or any Affiliate designated by the
Purchaser. In addition, prior to the Closing, Seller will or will cause the Allied Defense Group
(or its relevant Affiliate) to pay to the relevant Acquired Companies the applicable pro rata
portion of prepaid management fees paid to Allied Defense Group.

(h) Payment; Interest. Any payment due pursuant to Section 1.06(f) or
Section 1.06(g) shall be made within five (5) calendar days after the final amount thereof
has been determined in accordance with this Section 1.06 and shall bear interest from and
including the Closing Date to but excluding the date of payment at a rate per annum equal to the
per annum rate of interest at which United States dollar deposits for a one-month period are
offered in the London Interbank Eurodollar market at 11:00 a.m. (London time) on the day that
payment pursuant to Sections 1.06(f) or 1.06(g) is made and which is subject to
change to accurately reflect the amount of such prepaid portion at Closing, or if banks in London,
England were not open and dealing in offshore United States dollars on such second preceding
Business Day), as displayed in the Bloomberg Financial Markets system, in effect from time to time
during the period from the Closing Date to the date of payment. Such interest shall be payable at
the same time as the payment to which it relates and shall be calculated on the basis of a year of
365 days and the actual number of days elapsed.

SECTION 1.07 Escrow. At Closing, Purchaser will deposit the Escrow Amount in escrow
on behalf of Seller in accordance with the Escrow Agreement. The Escrow Amount shall be held and,
subject to Article VIII, released in accordance with the provisions of the Escrow
Agreement. Funds shall be held in escrow until December 31, 2012, with a reduction in the Escrow
Amount occurring on April 1, 2009 and as set forth in the Escrow Agreement. The Purchaser shall
seek remuneration for Losses under or in connection with this Agreement first against Seller’s
interest in the Escrow Amount, and only against Seller or the Parent to the extent that the amount
of such Losses claimed exceeds the funds available in the Escrow Amount.

ARTICLE II

Representations and Warranties Relating to the Acquired Companies

Seller represents and warrants to Purchaser that the statements contained in this Article
II are correct and complete as of the date hereof and will be correct and complete as of the
Closing Date, except as set forth in the disclosure schedule delivered by Seller to Purchaser on
the date hereof (the “Disclosure Schedule”).

SECTION 2.01 Organization; Standing; Qualification; Power; Subsidiaries.

(a) Each Acquired Company is a company, corporation or limited liability company duly
organized and validly existing under the laws of the jurisdiction of its organization, and has the
legal right and full power to own, lease, operate and otherwise use its Assets and to carry on its
business as now being conducted and said business has been conducted and is being conducted in
conformity with their respective articles of association (statuten), as amended (the “Articles
of Association”), and/or other Organizational Documents, each as amended, and all Legal
Requirements, except where a failure to do so would not reasonably be expected to have a Material
Adverse Effect. Seller has made available to Purchaser true, accurate and complete copies of (x)
the Organizational Documents of each Acquired Company and (y) the minute books of each Acquired
Company which contain records of all meetings held of, and other corporate actions taken by, its
stockholders, boards of directors and any committees appointed by its boards of directors.

(b) Each Acquired Company is a Belgian limited liability company (naamloze vennootschap) duly
registered with the register of legal entities (rechtspersonenregister) under enterprise number
0418907564 (the Company), 0428409903 (TTG), 0432575557 (IDCS), 0432782623 (VIGITEC), and 0426812074
(Belmation), respectively. Each Acquired Company is duly registered with all competent authorities
in all countries where it conducts its business or owns or uses any assets, in accordance with
Legal Requirements, except where a failure to do so would not reasonably be expected to have a
Material Adverse Effect.

(c) The share capital and the shares representing such share capital and the record and
beneficial ownership of the shares of each Acquired Company is as set forth on Section 2.01(c) of
the Disclosure Schedule. None of the Acquired Companies holds any of its own shares. Section
2.01(c) of the Disclosure Schedule sets forth for each Acquired Company (i) its name and
jurisdiction of organization, (ii) its share capital and the number of shares by which such share
capital is represented, as well as any other Equity Interests issued (if any) by the relevant
Acquired Company, and (iii) the names of the holders thereof, and the number of shares or interests
held by each such holder. All of the issued and outstanding shares or other Equity Interests of
each Acquired Company have been duly authorized and are validly issued, fully paid, and
non-assessable. The Company and its Subsidiaries hold of record and own beneficially all of the
outstanding shares and other Equity Interest of each Subsidiary of the Company and such shares or
Equity Interests are held free and clear of all Encumbrances except as disclosed on Section 2.01(c)
of the Disclosure Schedule. Seller has made available to Purchaser true, accurate and complete
copies of the stock ledger of each Acquired Company which reflects all issuance, transfers,
repurchases and cancellations of shares of each Acquired Company. Except as disclosed on
Section 2.01(c) of the Disclosure Schedule: (x) there are no preemptive rights or other similar
rights in respect of any Equity Interests in any Acquired Company, (y) there are no Encumbrances
on, or other Contractual Obligations relating to, the ownership, transfer or voting of any Equity
Interests in any Acquired Company, or otherwise affecting the rights of any holder of the Equity
Interests in any Acquired Company and (z) except for the Contemplated Transactions, there is no
Contractual Obligation, or provision in the Organizational Documents of any Acquired Company which
obligates it to purchase, redeem or otherwise acquire, or make any payment (including any dividend
or distribution) in respect of, any shares or other Equity Interests in any Acquired Company.

SECTION 2.02 Power and Authorization. The execution, delivery and performance by the
Seller of this Agreement and each Ancillary Agreement to which it is (or will be) a party and the
consummation of the Contemplated Transactions are within the power and authority of the Seller and
have been duly authorized by all necessary action by the Seller. This Agreement and each Ancillary
Agreement to which the Seller is (or will be) a party (a) has been (or, in the case of Ancillary
Agreements to be entered into at or prior to the Closing, will be) duly executed and delivered by
each Acquired Company and (b) is (or, in the case of Ancillary Agreements to be entered into at or
prior to the Closing, will be) a legal, valid and binding obligation of the Seller, Enforceable
against each such Acquired Company in accordance with its terms.

SECTION 2.03 No Consents. Except as set forth on Section 2.03 of the Disclosure
Schedule, no consent, approval, license or order (“Consent”) of, material permit of, or
registration, declaration or filing with, any Governmental Entity or any other Person is required
to be obtained or made by or with respect to, the Company or any other Acquired Company in
connection with the execution, delivery and performance by the Seller of this Agreement or the
consummation of the Contemplated Transactions, other than (i) those the failure of which to obtain
or make would not reasonably be expected to (A) have a Material Adverse Effect, (B) cause a default
under or breach of any Contract to which an Acquired Company is a party other than Material
Acquired Company Contracts, or (C) materially impair the ability of the Seller to perform its
obligations under this Agreement, and (ii) those that may be required solely by reason of
Purchaser’s (as opposed to any other third party’s) participation in the Contemplated Transactions.

SECTION 2.04 Noncontravention. Except as disclosed on Section 2.04 of the Disclosure
Schedule, neither the execution, delivery and performance by the Seller of this Agreement or any
Ancillary Agreement to which it is (or will be) a party nor the consummation of the Contemplated
Transactions will:

(a) assuming the taking of any action by (including the obtaining of each necessary
authorization, consent or approval), or in respect of, and the making of all filings with,
Governmental Entities, in each case, as disclosed on Section 2.03 of the Disclosure Schedule,
violate any Legal Requirement applicable to an Acquired Company; or

(b) conflict with or result in a breach or violation of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in
termination of, or accelerate the performance required by, or result in a right of termination or
acceleration under, or require any action by (including any authorization, consent or approval) or
notice to any Person, or require any offer to purchase or prepayment of any Debt or Liability
under, or result in the creation of any Encumbrance upon or forfeiture of any of the rights,
properties or assets of any Acquired Company under, any of the terms, conditions or provisions of
(i) any Governmental Order applicable to or otherwise affecting any Acquired Company or any assets
or properties of any Acquired Company, (ii) any Material Acquired Company Contract or (iii) the
Organizational Documents of any Acquired Company.

SECTION 2.05 Insurance. Section 2.05 of the Disclosure Schedule contains a true and
complete list of all policies of property and casualty, fire, liability, umbrella, excess coverage,
workers’ compensation, title, business automobile, ocean cargo, directors and officers and other
forms of insurance owned, held by or applicable to any of the Acquired Companies (or their
respective assets or businesses) and affiliates, and the Seller heretofore has made available to
Purchaser a true and complete copy of all such policies, including all claims-based and
occurrence-based policies applicable to any Acquired Company (or their respective assets or
businesses) or affiliates. All such policies (or substitute policies with substantially similar
terms and underwritten by insurance carriers with substantially similar or higher ratings) are in
full force and effect, all premiums with respect thereto covering all periods up to and including
the Closing have been paid, and no notice of cancellation or termination has been received with
respect to any such policy except for such policies, premiums, cancellations or terminations that,
individually or in the aggregate, have not had and could not reasonably be expected to have a
Material Adverse Effect. Such policies are sufficient for compliance by the Acquired Companies with
all Contracts to which the Company is a party, and each of the Acquired Companies has complied with
the provisions of each such policy under which it is an insured party, except for such
noncompliance that, individually or in the aggregate, has not had or would not reasonably be
expected to have a Material Adverse Effect. Since December 31, 1996, none of the Acquired
Companies has been refused any insurance with respect to its assets or operations by any insurance
carrier to which it has applied for any such insurance or with which it has carried insurance.
There are no pending or, to Seller’s Knowledge, threatened claims under any insurance policy that,
individually or in the aggregate, have had or would reasonably be expected to have a Material
Adverse Effect. There are no gaps in insurance coverage for any Acquired Companies, no coverage
limits of insurance policies covering any Acquired Company have been exhausted and to the Seller’s
Knowledge, all of the insurers of the Acquired Companies remain solvent and able to pay claims.

SECTION 2.06 Product Warranty; Product Liability.

(a) With the exception of breaches of contracts or warranties that are correctable and
normally encountered in the Ordinary Course of Business, each product and service licensed,
manufactured, sold, leased, or delivered to a customer of an Acquired Company in connection with
such Acquired Company’s businesses has been provided in conformity with all applicable contractual
commitments and all express and implied warranties, except as reasonably would not be expected to
have a Material Adverse Effect, and none of the Acquired Companies has any liability (and has no
knowledge of any basis) for any present or future action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand for replacement or repair thereof or other damages in
connection therewith. Except as set forth in Section 2.06 of the Disclosure Schedule, no product
or service licensed, manufactured, sold, leased, or delivered in connection with the Acquired
Companies’ businesses is subject to any guaranty, warranty, or other indemnity beyond the
applicable standard terms and conditions of license, sale or lease (if any). Section 2.06 of the
Disclosure Schedule sets forth the standard terms and conditions of license, sale or lease,
including warranties, pursuant to which the Acquired Companies license, sell or lease their
respective products.

(b) None of the Acquired Companies presently has any liability (and, to Seller’s Knowledge,
there is no basis for any present or future action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand against it giving rise to any liability) arising out of any
injury to individuals or property as a result of the ownership, possession, or use of any product
manufactured, sold, leased, or delivered in connection with the Acquired Companies’ businesses.

(c) There is no defect in the design, source codes, production or manufacture of the software
and/or other products currently manufactured or sold by any Acquired Company not correctable and
normally encountered in the Ordinary Course of Business which would reasonably be expected to
adversely affect the safety, performance or quality of such products. Except as set forth in
Section 2.06 of the Disclosure Schedule, there are no warranties concerning the products sold by
any of the Acquired Companies.

SECTION 2.07 Financial Statements; Books and Records.

(a) Attached as Exhibit 2.07 are copies of each of the following:

(i) The audited annual accounts of each of the Acquired Companies as of December 31,
2006 (respectively, the “Most Recent Balance Sheet,” and the “Most Recent
Balance Sheet Date”), December 31, 2005 and December 31, 2004, including the related
audited balance sheets, profit and loss statements of the Acquired Companies for the fiscal
years then ended, accompanied by any notes thereto, the report of the statutory auditor and
the relevant annual board report (collectively, the “Audited Financials”);

(ii) The unaudited statements of accounts of each of the Acquired Companies as at June
30, 2007, and the related unaudited profit and loss statements of each of the Acquired
Companies for the six month period then ended (the “Interim Financials”).

(iii) The unaudited consolidated management accounts of the Acquired Companies as of
December 31, 2006, December 31, 2005 and December 31, 2004 (collectively, the
“Management Accounts”)

(b) Compliance with GAAP, etc. Except as disclosed on Section 2.07 of Disclosure
Schedule, the Audited Financials, the Interim Financials and the Management Accounts (including any
notes thereto) (a) were prepared in accordance with the books and records of the Acquired
Companies, (b) were prepared (and in the case of the Audited Financials, have been audited) in
accordance with GAAP (subject, in the case of the Interim Financials, to normal year-end audit
adjustments and the absence of footnotes, the effect of which will not, individually or in the
aggregate, be materially adverse) and (c) fairly present the consolidated financial position of the
Acquired Companies as at the respective dates thereof and the results of the operations of the
Acquired Companies and changes in financial position for the respective periods covered thereby.

(c) The books of account, minute books, stock record books, and other records of the Acquired
Companies, all of which have been made available to Purchaser by the Seller, are complete and
correct and have been maintained in accordance with sound business practices and applicable Legal
Requirements. The minute books of the Acquired Companies contain accurate and complete records of
all meetings held of, and corporate action taken by, the stockholders, the Boards of Directors, and
committees of the Boards of Directors of the Acquired Companies, and no meeting of any such
stockholders, Board of Directors, or committee has been held for which minutes have not been
prepared and are not contained in such minute books. At the Closing, all of those books and
records will be in the possession of the Acquired Companies.

SECTION 2.08 Absence of Undisclosed Liabilities. Except as disclosed on Section 2.08
of the Disclosure Schedule, no Acquired Company has any Liabilities except for (a) Liabilities set
forth on the face of the Most Recent Balance Sheet, (b) Liabilities incurred in the Ordinary Course
of Business since the Most Recent Balance Sheet Date (none of which results from, arises out of, or
relates to any breach or violation of, or default under, a Contractual Obligation or Legal
Requirement), and (c) Liabilities that reasonably would not be expected to have a Material Adverse
Effect.

SECTION 2.09 Absence of Certain Developments. Since the Most Recent Balance Sheet
Date, (A) no event, change or circumstance has occurred that has had, or is reasonably likely to
have, a Material Adverse Effect, and (B) except as disclosed on Section 2.09 of the Disclosure
Schedule, the Business has been conducted in the Ordinary Course of Business and no Acquired
Company has:

(a) amended its Organizational Documents, effected any split, combination, reclassification or
similar action with respect to its shares or other Equity Interests or adopted or carried out any
plan of complete or partial liquidation or dissolution;

(b) issued, sold, granted, or otherwise disposed of any of its Equity Interests or debt
securities, or amended any term of any of its outstanding Equity Interests or debt securities;

(c) (i) made any declaration or payment of, or set aside funds for, any dividend or other
distribution with respect to any of its shares or other Equity Interests, or (ii) repurchased,
redeemed, or otherwise acquired or cancelled any of its shares or other Equity Interests;

(d) become liable in respect of any Guarantee or has incurred, assumed or otherwise become
liable in respect of any Debt;

(e) (i) merged or consolidated with any Person, (ii) acquired any material Assets, except for
acquisitions of inventory, equipment and raw materials in the Ordinary Course of Business, or (iii)
made any loan, advance or capital contribution to, acquired any Equity Interests of, or otherwise
made any investment in, any Person (other than loans or advances to, or investments in,
wholly-owned Subsidiaries of the Company existing on the date of this Agreement that are made in
the Ordinary Course of Business);

(f) permitted any of its material Assets to become subject to an Encumbrance (other than a
Permitted Encumbrance) or sold, leased, licensed or otherwise disposed of any of its material
Assets, other than sales of inventory in the Ordinary Course of Business;

(g) paid, discharged or satisfied any material Liabilities, other than in the Ordinary Course
of Business, or waived, cancelled or assigned any claims or rights of substantial value;

(h) suffered any material loss, destruction, damage or eminent domain taking (in each case,
whether or not insured) affecting the Business or any material Asset;

(i) made any capital expenditure (or series of related capital expenditures) in excess of
€50,000;

(j) increased any benefits under any Employee Plan or increased the Compensation payable or
paid, whether conditionally or otherwise, to any employee, officer, director or consultant of any
Acquired Company (other than (x) any increase adopted in the Ordinary Course of Business in respect
of the Compensation of any employee whose annual base Compensation does not exceed €50,000 after
giving effect to such increase (y) any increase in benefits or Compensation required pursuant to
the terms of an existing Employee Plan or an existing employment, consulting, indemnification,
change of control, severance or similar agreement with any current or former director, officer,
employee or consultant) or amended any term of any employment agreement of any officer of any
Acquired Company;

(k) made any change in its methods of accounting or accounting practices (including with
respect to reserves);

(l) settled or compromised any pending or threatened Actions (ii) that admit liability or
consent to non-monetary relief, or (iii) that otherwise are or would reasonably be expected to be
material to the Acquired Companies, taken as a whole;

(m) opened any Facility or entered into any new line of business or closed any Facility or
discontinued any line of business or any material business operations;

(n) entered into, adopted, terminated, modified or amended in material respect (including by
accelerating rights or benefits under) any Material Acquired Company Contracts;

(o) written up or written down any of its material Assets or revalued its inventory;

(p) abandoned or allowed to lapse or expire any of its Registered Intellectual Property; and

(q) entered into any Contractual Obligation to do any of the things referred to elsewhere in
this Section 2.09.

SECTION 2.10 Assets.

(a) Ownership of Assets. Each Acquired Company has sole and exclusive, good and
marketable title to, or, in the case of property held under a lease or other Contractual
Obligation, a sole and exclusive, Enforceable leasehold interest in, or right to use, all of its
properties, rights and assets, whether real or personal and whether tangible or intangible,
including all Assets reflected in the Most Recent Balance Sheet or acquired after the Most Recent
Balance Sheet Date (except for such Assets that have been sold or otherwise disposed of since the
Most Recent Balance Sheet Date in the Ordinary Course of Business) (collectively, the
“Assets”). Except as disclosed on Section 2.10(a) of the Disclosure Schedule, none of the
Assets is subject to any Encumbrance other than Permitted Encumbrances.

(b) Sufficiency of Assets. The Assets comprise all of the assets, properties and
rights of every type and description, whether real or personal, tangible or intangible, used or
necessary to the conduct of the Business and are adequate to conduct the Business.

(c) Investments. Except as set forth in Section 2.10(c) of the Disclosure Schedule,
no Acquired Company (a) controls, directly or indirectly, or owns any direct or indirect Equity
Interest in any Person that is not a Subsidiary of the Company and (b) is subject to any obligation
to make any investment (in the form of a loan, capital contribution or otherwise) in any Person.

SECTION 2.11 Real Property.

(a) Section 2.11 of the Disclosure Schedule sets forth a list of the addresses; surfaces and
land and registry parcel numbers of all real property (a) previously owned within the last 10 years
or owned by each of the Acquired Companies (the “Owned Real Property”) or (b) leased,
subleased, or licensed by, or for which a right to use or occupy has been granted to, each of the
Acquired Companies (the “Leased Real Property,” and together with the Owned Real Property,
the “Real Property”). Section 2.11 of the Disclosure Schedule also identifies, with
respect to each Owned Real Property, and all Persons that use or occupy such Owned Real Property in
addition to the owner, if any, and, with respect to each Leased Real Property, each lease,
sublease, license or other Contractual Obligation under which such Leased Real Property is occupied
or used including the date of and legal name of each of the parties to such lease, sublease,
license or other Contractual Obligation (the “Real Property Leases”).

(b) Except as set forth in Section 2.11 of the Disclosure Schedule, the Acquired Companies
have good and clear, record and marketable title in and to the Owned Real Property, free and clear
of all Encumbrances other than Permitted Encumbrances.

(c) Except as set forth on Section 2.11 of the Disclosure Schedule, there are no written or
oral subleases, licenses, concessions, occupancy agreements or other contractual obligations
granting to any other Person the right of use or occupancy of the Real Property and there is no
Person (other than any Acquired Company) in possession of the Leased Real Property. With respect
to each Real Property Lease that is a sublease, to Seller’s Knowledge, the representations and
warranties in Sections 2.20(b) and 2.20(c) are true and correct with respect to the
underlying lease.

(d) Seller has delivered to Purchaser accurate and complete copies of the Real Property
Leases, in each case as amended or otherwise modified and in effect, together with extension
notices and other material correspondence, lease summaries, notices or memoranda of lease, estoppel
certificates and subordination, non-disturbance and attornment agreements related thereto.

(e) No condemnation Action is pending or, to Seller’s Knowledge, threatened, that would
preclude or materially impair the use of any Real Property. The Company’s and the Subsidiaries’
current use of the Real Property does not violate in any material respect any restrictive covenant
of record that affects any of the Real Property.

(f) Each Facility is supplied with utilities and other services necessary for the operation of
such Facility as the same is currently operated or currently proposed to be operated, all of which
utilities and other services are provided via public roads or via permanent, irrevocable
appurtenant easements benefiting the parcel of Real Property. Each parcel of Real Property abuts
on, and has direct vehicular access to, a public road, or has access to a public road via a
permanent, irrevocable appurtenant easement benefiting the parcel of Real Property, in each case,
to the extent necessary for the conduct of the Business.

(g) The Acquired Companies are and have at all times been in compliance with all restrictive
covenants and other Encumbrances relating to Real Property (whether or not contained in deeds of
purchase or similar documents) and building and other Permits relating to Real Property .

SECTION 2.12 Intellectual Property.

(a) The Acquired Companies are, and after the Closing will be, the sole and exclusive owners,
or possess adequate licenses, re-marketing or sublicensing rights free and clear of any
Encumbrances, of all the Intellectual Property used or held for use in or necessary for, the
continued conduct of the Business as presently or proposed to be conducted.

(b) None of the Acquired Companies nor, to Seller’s Knowledge, any Predecessor (i) has
interfered with, infringed upon (whether directly, as a contributory infringer, through inducement
or otherwise), misappropriated, misused, violated or otherwise come into conflict with any
Intellectual Property rights of any third party or (ii) has received or made any charge, complaint,
claim, demand, or notice alleging any interference, infringement, invalidity, unenforceability,
misappropriation, misuse or violation of Intellectual Property rights (including any invitations to
license or communications that a Person must license or refrain from using any Intellectual
Property rights or of unfair competition relating to Intellectual Property rights; and to Seller’s
Knowledge, none of the preceding has been threatened or is reasonably expected to arise. To
Seller’s Knowledge no third party has interfered with, infringed upon, misappropriated, misused,
violated or otherwise come into conflict with any Company Intellectual Property. The Acquired
Companies have not received any written opinions of counsel concerning the validity, infringement
or enforceability of any Intellectual Property of any third party.

(c) Section 2.12 of the Disclosure Schedule identifies (i) all Registered Intellectual
Property that is Company Intellectual Property summarizing, where applicable, the following for
each item: patent number, application number, registration number, filing date, date of issuance,
applicant, mark (or name or domain), owner(s), country of origin, and the next maintenances fee and
other administrative obligations required to maintain or prosecute such Intellectual Property, (ii)
each Contractual Obligation which an Acquired Company has granted to any third party with respect
to Company Intellectual Property other than in conjunction with the sale and licensing of products
and services in the Ordinary Course of Business. An Acquired Company’s sole and exclusive
ownership of all right, title and interest for each item listed on Section 2.12(c)(i) of the
Disclosure Schedule has been duly recorded with the applicable patent, trademark or copyright
office or such other applicable Governmental or non-Governmental Entity (e.g., domain name
registrars) and there are no gaps in the recorded chains-in-title and there are no unreleased
Encumbrances on such items or Governmental Orders affecting such items. Each such registration is
valid and subsisting, all application, maintenance, renewal or other similar fees have been paid,
and other required actions to maintain registrations have been taken (including the timely filing
of renewals for copyrights and post-registration filing of required affidavits of use for
trademarks). Section 2.12(c)(ii) of the Disclosure Schedule identifies each Software product owned
and distributed by any Acquired Company and each material unregistered trademark and service mark
used by any Acquired Company or in connection with the Business.

(d) With respect to each item of Intellectual Property owned legally or beneficially, in whole
or in part by an Acquired Company (collectively, “Company Intellectual Property”):

(i) an Acquired Company has good, valid and legal title to, and is sole and exclusive
owner of all right, title, and interest in and to such item, free and clear of any
Encumbrance;

(ii) such item is valid and Enforceable and is not subject to any outstanding
Governmental Order, and no Action is pending or threatened, which challenges the legality,
validity, enforceability, use or ownership of such item;

(iii) except as disclosed on Section 2.12 of the Disclosure Schedule, an Acquired
Company has not agreed and does not have a Contractual Obligation to indemnify any Person
for or against any interference, infringement, misappropriation or other conflict with
respect to such item;

(iv) such item was not developed by or on behalf of or using grants, compensation,
other subsidies or the facilities of any academic or research institution or Governmental
Authority; and

(v) the consummation of the Contemplated Transactions will not alter, impair or
extinguish such item.

(e) Section 2.12(e) of the Disclosure Schedule identifies each (i) exclusive license to which
an Acquired Company is a party, (ii) each material item of Intellectual Property that any Person
besides an Acquired Company owns and that is used by an Acquired Company or in connection with the
Business pursuant to any license, sublicense or other Contractual Obligation (the
“Licenses”), (iii) Contractual Obligation that settles or releases any Encumbrance with
respect to Intellectual Property; and (iv) Contractual Obligation for the development of any
Software or other Intellectual Property. Except as disclosed on Section 2.12(e) of the Disclosure
Schedule, there are no royalties, fees, honoraria or other payments payable by an Acquired Company
to any Person by reason of the ownership, development, modification, use, license, sublicense,
sale, transfer, distribution or other disposition of the Company Intellectual Property other than
salaries and sales commissions paid to employees and sales agents in the Ordinary Course of
Business. The Seller has made available to the Purchaser true, accurate and complete copies of all
of the Licenses, in each case, as amended or otherwise modified and in effect. With respect to
each such item identified on Section 2.12(e) of the Disclosure Schedule none the Acquired Companies
has granted any sublicense or similar right with respect to any License covering such item.

(f) All of the Acquired Companies’ products and other materials that use any trademark or
service mark bear any required trademark notices. All works that are part of the Company
Intellectual Property and provided or published to third parties are marked with any required
copyright notices. Other than the Contractual Obligations that accompany the sale and licensing of
the Acquired Companies’ products and services in the Ordinary Course of Business, none of the
Acquired Companies has agreed to indemnify any Person with respect to Intellectual Property rights.

(g) None of the Software owned, developed or distributed by the Acquired Companies (i)
constitutes or is dependent on any open source computer code, (ii) is subject to any License or
other Contractual Obligation that would require an Acquired Company to divulge to any Person any
source code or trade secret that is part of the Company Intellectual Property, (iii) is subject to
a license that provides when such Software is combined or distributed (e.g., with other Software)
that the Software be: (x) disclosed or distributed in source code form, (y) licensed for the
purpose of making derivative works, or (z) redistributable at no charge; or (iv) contains any time
bomb, virus, worm, Trojan horse, back door, drop dead device, or any other Software that would
interfere with its normal operation, would allow circumvention of security controls, or is intended
to cause damage to hardware, Software or data.

(h) The Acquired Companies, with respect to the operation of the Business, have complied with
all applicable contractual and Legal Requirements pertaining to information privacy and security
and maintain policies and procedures regarding data security, website security and privacy that are
commercially reasonable. There has been no: (i) unauthorized disclosure of any third party
proprietary or confidential information in the possession, custody or control of the Acquired
Companies, (ii) breach of an Acquired Company’s security procedures wherein confidential
information has been disclosed to an unauthorized Person, and (iii) disclosure of a trade secret
belonging to an Acquired Company to the detriment of any Acquired Company. No allegation relating
to an improper use or disclosure, or a breach in the security of, any such information has been
made or, to Seller’s Knowledge, threatened against any Acquired Company with respect to the
Business. In the last two years, no website security measure implemented by an Acquired Company
has been penetrated, and no website of an Acquired Company has been the target of any defacement,
unauthorized access, denial-of-service assault, or other noticeable attack. The Acquired Companies
use and dissemination of any and all data and information concerning consumers of its products,
services or users of any web sites operated by any Acquired Company is in compliance with all
applicable privacy policies, terms of use, and Legal Requirements. The Contemplated Transactions
will not violate any privacy policy, terms of use, or Legal Requirements relating to the use,
dissemination, or transfer of such data or information.

(i) None of the Acquired Companies has been a member or promoter of, or a contributor to, any
industry standards body or similar organization that could require or obligate an Acquired Company
to grant or offer to any other Person any license or right to any Company Intellectual Property.

SECTION 2.13 Legal Compliance; Illegal Payments; Permits.

(a) Except for breaches, violations or defaults disclosed on Section 2.13(a) of the Disclosure
Schedule, no Acquired Company is, in any material respect, in breach or violation of, or default
under, and has not since December 31, 2004 been, in any material respect, in breach or violation
of, or default under its Organizational Documents or any material Legal Requirement applicable to
the Acquired Companies of the Business.

(b) In the conduct of the Business, no Acquired Company nor any of its directors, officers,
employees or agents, has (i) directly or indirectly, given, or agreed to give, any illegal gift,
contribution, payment or similar benefit to any supplier, customer, governmental official or
employee or other Person who was, is or may be in a position to help or hinder an Acquired Company
(or assist in connection with any actual or proposed transaction) or made, or agreed to make, any
illegal contribution, or reimbursed any illegal political gift or contribution made by any other
Person, to any candidate for federal, state, local or foreign public office or (ii) established or
maintained any unrecorded fund or asset or made any false entries on any books or records for any
purpose.

(c) Each Acquired Company has been duly granted all material Permits under all Legal
Requirements necessary for the conduct of the Business. Section 2.13(c) of the Disclosure Schedule
describes each material Permit affecting, or relating to, the Assets or the Business together with
the Governmental Authority or other Person responsible for issuing such Permit. Except as
disclosed on Section 2.13(c) of the Disclosure Schedule, (i) the Permits listed or required to be
listed thereon are valid and in full force and effect, (ii) no Acquired Company is, in any material
respect, in breach or violation of, or default under, any such material Permit, and, to Seller’s
Knowledge, no fact, situation, circumstance, condition or other basis exists which, with notice or
lapse of time or both, would constitute any such breach, violation or default, and (iii) the
Permits listed or required to be listed on Section 2.13(c) of the Disclosure Schedule will continue
to be valid and in full force and effect, on identical terms following the consummation of the
Contemplated Transactions.

SECTION 2.14

3

Tax Matters.

(a) Each Acquired Company has timely filed all Tax Returns required to be filed by any of them
(taking into account applicable extensions), and all such Tax Returns were true, correct and
complete in all material respects. All Taxes due and owing by any Acquired Company (whether or not
shown on any Tax Return) have been paid. Each Acquired Company has deducted, withheld and timely
paid to the appropriate Governmental Entity all material Taxes required to be deducted, withheld or
paid in connection with amounts paid or owing to any employee, independent contractor, creditor,
member or other third party, and each Acquired Company has complied in all material respects with
all reporting and recordkeeping requirements. None of the Acquired Companies owns, directly or
indirectly, an Equity Interest in another Person that is not itself an Acquired Company.

(b) There is no material dispute or claim concerning any Tax liability of any Acquired Company
claimed or raised by any authority in writing. There are no outstanding written requests,
agreements, consents or waivers to extend the statutory period of limitations applicable to the
assessment of any Taxes. None of the Acquired Companies has requested or been granted an extension
of time to file any Tax Return.

(c) None of the Acquired Companies is a party to any agreement providing for the allocation or
sharing of Taxes or to any other arrangement with respect to Taxes. There are no material liens
for Taxes upon the assets of the Company, except liens for Taxes not yet due and payable.

(d) The unpaid Taxes of the Acquired Companies did not as of the Most Recent Balance Sheet
Date exceed the reserve for Taxes (excluding any reserve for deferred Taxes established to reflect
timing differences between book and Tax income) set forth on the face of the Audited Financials
(rather than in any notes thereto). As of the end of the Closing Date, the unpaid Taxes of the
Acquired Companies for all Tax periods (or portions thereof) ending at the end of or before the
Closing Date, being current Taxes not yet due and payable, will not exceed that reserve as adjusted
for the passage of time through the Closing Date in accordance with the past custom and practice of
the Acquired Companies in filing their Tax Returns.

(e) None of the Acquired Companies will be required to include any item of income in, or
exclude any item of deduction from, taxable income for any taxable period (or portion thereof)
ending after the Closing Date as a result of any (i) prepaid amount received on or prior to the
Closing Date, (ii) any change in method of accounting for a taxable period ending on or prior to
the Closing Date, (iii) installment sale or open transaction disposition made on or prior to the
Closing Date or (iv) intercompany transaction between members of a Tax group. Since the Most
Recent Balance Sheet Date, no Acquired Company has made, changed or revoked any material Tax
election, elected or changed any method of accounting for Tax purposes, settled any Action in
respect of Taxes or entered into any Contractual Obligation in respect of Taxes with any
Governmental Entity.

(f) None of the Acquired Companies is a party to any understanding or arrangement described in
Section 6011 (including with respect to “reportable transactions”), Section 6111 or Section 6222
(with respect to a “tax shelter”) of the U.S. Internal Revenue Code of 1986, as amended.

(g) No Acquired Company that is a foreign corporation will recognize a material amount of
“subpart F income” as defined in Section 952 of the Internal Revenue Code of 1986, as amended,
during a taxable year of such Acquired Company that includes but does not end on the Closing Date.

SECTION 2.15 Employee Benefits Plans.

(a) Section 2.15 of the Disclosure Schedule lists all Employee Plans as to which an Acquired
Company or any of its Affiliates sponsors, maintains, contributes or is obligated to contribute, or
under which an Acquired Company has or may have any Liability, or which benefits any current or
former employee, director, consultant or independent contractor of an Acquired Company or the
beneficiaries or dependents of any such Person (each a “Company Plan”). With respect to
each Company Plan, Sellers have delivered to the Purchaser true, accurate and complete copies of
each of the following: (i) the plan document together with all amendments thereto and (ii) if
applicable, copies of any trust agreements, custodial agreements, insurance policies,
administrative agreements and similar agreements, and investment management or investment advisory
agreements, and (iii) copies of any summary plan descriptions, employee handbooks or similar
employee communications.

(b) All required contributions to, and premium payments on account of, each Company Plan have
been made on a timely basis.

(c) There is no pending or, to Sellers’ Knowledge, threatened Action relating to a Company
Plan. No Company Plan is or, within the last six years, has been the subject of an examination or
audit by a Governmental Entity, is the subject of an application or filing under, or is a
participant in, a government-sponsored amnesty, voluntary compliance, self-correction or similar
program.

(d) No Company Plan provides benefits or coverage in the nature of health, life or disability
insurance following retirement or other termination of employment.

SECTION 2.16 Environmental Matters.

(a) Except as would not reasonably be expected to have a Material Adverse Effect and as
disclosed on Section 2.16 of the Disclosure Schedule (i)  the Acquired Companies are and have been
in compliance with all Environmental Laws; (ii) there has been no release or threatened release of
any pollutant, contaminant or toxic or hazardous material (including toxic mold and asbestos),
substance or waste, or petroleum or any fraction thereof, (each a “Hazardous Substance”)
on, upon, into or from any site currently or heretofore owned, leased or otherwise used by any
Acquired Company; (iii) there have been no Hazardous Substances in any Real Property or generated
by any Acquired Company that have been disposed of or come to rest at any site under circumstances
that could give rise to a Liability of any of the Acquired Companies; (iv) there are no underground
storage tanks located on, any site owned or operated by any of the Acquired Companies; (v) the
Acquired Companies are in material compliance with all Environmental Laws; and (vi) Seller has
delivered to Purchaser true and correct copies of all material environmental records, reports,
notifications, certificates of need, permits, pending permit applications, correspondence,
engineering studies, and environmental studies or assessments.

(b) Neither Seller, nor any of the Acquired Companies has received notice of any violation or
potential violation of any Environmental Law from any third Person.

SECTION 2.17 Contracts.

(a) Contracts. As of the third Business Day prior to the date of this Agreement, the
electronic data room set forth on the website of the Merrill Corporation contains all material
Contractual Obligations of each of the Acquired Companies. Except as disclosed on Section 2.17 of
the Disclosure Schedule, no Acquired Company is bound by or party to:

(i) any Contractual Obligation (or group of related Contractual Obligations) with a
term in excess of six months or involving annual payments to or from an Acquired Company in
excess of €25,000 over the life of the Contractual Obligation;

(ii) any Contractual Obligation relating to the acquisition or disposition of (A) any
business of an Acquired Company (whether by merger, consolidation or other business
combination, sale of securities, sale of assets or otherwise) or (B) any asset other than in
the Ordinary Course of Business;

(iii) any Contractual Obligation under which an Acquired Company is, or may become,
obligated to pay any amount in respect of indemnification obligations, purchase price
adjustment or otherwise in connection with any (A) acquisition or disposition of assets or
securities (other than the sale of inventory in the Ordinary Course of Business), (B)
merger, consolidation or other business combination, or (C) series or group of related
transactions or events of the type specified in clauses (A) and (B) above;

(iv) any Contractual Obligation (or group of related Contractual Obligations) under
which an Acquired Company has permitted any Asset to become Encumbered;

(v) any Contractual Obligation relating to confidentiality or non-competition (whether
the Acquired Company is subject to or the beneficiary of such obligations);

(vi) any Contractual Obligation under which an Acquired Company is, or may become,
obligated to incur any severance pay or special Compensation obligations that would become
payable by reason of this Agreement or the Contemplated Transactions;

(vii) any Contractual Obligation under which an Acquired Company is, or may, have any
Liability to any investment bank, broker, financial advisor, finder’s agreement or other
similar Person (including an obligation to pay any legal, accounting, brokerage, finder’s,
or similar fees or expenses in connection with this agreement or the Contemplated
Transactions);

(viii) any profit sharing, stock option, stock purchase, stock appreciation, deferred
compensation, severance, or other plan arrangement or agreement for the benefit of one or
more current or former directors, officers, and employees of any Acquired Company’s; and

(ix) any Contractual Obligation under which an Acquired Company has advanced or loaned
an amount to any of its Affiliates or employees other than in the Ordinary Course of
Business.

(b) Enforceability, etc. To Seller’s Knowledge, each Contractual Obligation required
to be disclosed on Section 2.11 (Real Property Leases), Section 2.12 (Intellectual Property),
Section 2.15 (Employee Benefits Plans), Section 2.17 (Contracts), Section 2.19 (Customers and
Suppliers) or Section 2.05 (Insurance) of the Disclosure Schedule (each, a “Material Acquired
Company Contract”) is Enforceable against each party to such Contractual Obligation, and is in
full force and effect, and, subject to obtaining any necessary consents disclosed in Sections 2.03
and 2.04 of the Disclosure Schedule, will continue to be so Enforceable and in full force and
effect on identical terms following the consummation of the Contemplated Transactions.

(c) Breach, etc. No Acquired Company or, to Seller’s Knowledge, any other party to
any Material Acquired Company Contract is in breach or violation of, or default under, or has
repudiated any provision of, any Material Acquired Company Contract or is in bankruptcy or other
proceedings which affect the enforcement of creditor’s rights.

(d) Copies. Seller has made available to Purchaser true, accurate and complete copies
of each written Contractual Obligation listed on Section 2.17 of the Disclosure Schedule, in each
case, as amended or otherwise modified and in effect.

SECTION 2.18 Related Party Transactions. Except for the matters disclosed on Section
2.18 of the Disclosure Schedule, neither Seller nor any Affiliate of Seller and no officer or
director of any Acquired Company (or, to Seller’s Knowledge, any member of the immediate family of
any such Person who is an individual or any entity in which any such Person or any such member of
the immediate family thereof owns a material interest): (a) is a party to any Contractual
Obligation to which and Acquired Company is a party, (b) has any material interest in any material
property or asset owned or leased by any Acquired Company or used in connection with the Business,
or (c) has engaged in any material transaction with any Acquired Company since December 31, 2004
(other than payments made to officers and directors in the Ordinary Course of Business).

SECTION 2.19 Customer and Supplier. Section 2.19 of the Disclosure Schedule sets
forth a complete and accurate list of (a) the 10 largest customers of the Acquired Companies
(measured by aggregate billings) during the fiscal year ended on the Most Recent Balance Sheet
Date, indicating the existing Contractual Obligations with each such customer by product or service
provided and (b) the 10 largest suppliers of materials, products or services to the Acquired
Companies (measured by the aggregate amount purchased by the Acquired Companies) during the fiscal
year ended on the Most Recent Balance Sheet Date, indicating the Contractual Obligations for
continued supply from each such supplier. Except as disclosed on Section 2.19 of the Disclosure
Schedule, (i) none of such customer and supplier Contractual Obligations deviates in any material
respect from the forms of Contractual Obligations for customers and suppliers of the Acquired
Companies attached hereto as Exhibit 2.19 and (ii) none of such customers or suppliers has
canceled, terminated or otherwise materially altered (including any material reduction in the rate
or amount of sales or purchases or material increase in the prices charged or paid, as the case may
be) or notified an Acquired Company of any intention to do any of the foregoing or otherwise
threatened in writing to cancel, terminate or materially alter (including any material reduction in
the rate or amount of sales or purchases, as the case may be) its relationship with an Acquired
Company.

SECTION 2.20 Labor Matters. Except as disclosed on Section 2.20 of the Disclosure
Schedule, there are no labor troubles (including any work slowdown, lockout, stoppage, picketing or
strike) pending, or to Seller’s Knowledge, threatened between an Acquired Company, on the one hand,
and its employees, on the other hand, and there have been no such troubles since December 31, 2004.
Except as disclosed on Section 2.20 of the Disclosure Schedule, (a) no Acquired Company is a party
to, or otherwise subject to, any company level collective bargaining agreement or other labor union
contract, (b) no petition has been filed or proceedings instituted by an employee or group of
employees of an Acquired Company with any labor relations board seeking recognition of a bargaining
representative, (c) to Seller’s Knowledge, there is no organizational effort currently being made
or threatened by, or on behalf of, any labor union to organize employees of an Acquired Company,
and (d) no demand for recognition of employees of an Acquired Company has been made by, or on
behalf of, any labor union. Since the Most Recent Balance Sheet Date, no executive officer’s or
other key employee’s employment with the Acquired Companies has been terminated for any reason nor
has any such officer or employee notified the Company of his or her intention to resign or retire.

SECTION 2.21 Litigation; Government Orders.

(a) Litigation. Except as disclosed on Section 2.21 of the Disclosure Schedule (which
matters have not had, and are not reasonably likely to have, a Material Adverse Effect), there is
no Action to which an Acquired Company is a party (either as plaintiff or defendant) or to which
its Assets are or may be subject that is pending, or to Seller’s Knowledge, threatened. There is no
Action to which an Acquired Company is a party (either as plaintiff or defendant) or to which its
Assets are or may be subject that is pending, or to Seller’s Knowledge, threatened, which (i) in
any manner challenges or seeks the rescission of, or seeks to prevent, enjoin, alter or materially
delay the consummation of, or otherwise relates to, this Agreement and the Contemplated
Transactions, or (ii) may result in any change in the current equity ownership of any Acquired
Company, nor, to Seller’s Knowledge, is there any basis for any of the foregoing. Except as
disclosed on Section 2.21 of the Disclosure Schedule, there is no Action which an Acquired Company
presently intends to initiate.

(b) Governmental Orders. Except as disclosed on Section 2.21 of the Disclosure
Schedule, no Governmental Order has been issued that is applicable to an Acquired Company or its
Assets or the Business.

SECTION 2.22 No Brokers. No Acquired Company has any Liability of any kind to, or is
subject to any claim of, any broker, finder or agent in connection with the Contemplated
Transactions other than those which will be borne by Seller.

SECTION 2.23 Employees.

(a) Information. Section 2.23 of the Disclosure Schedule contains a complete and
accurate list of the following information for each employee or director of each Acquired Company,
including each employee on leave of absence or layoff status: (i) employer; (ii) name; (iii) job
title; (iv) current compensation paid or payable (including fringe benefits) and any change in
compensation since the Most Recent Balance Sheet Date; (v) vacation accrued; (vi) service credited
for purposes of vesting and eligibility to participate under any Acquired Company’s pension,
retirement, profit-sharing, thrift-savings, deferred compensation, stock bonus, stock option, cash
bonus, employee stock ownership (including investment credit or payroll stock ownership), severance
pay, insurance, medical, welfare, or vacation plan or other Employee Plan, (vii) possible protected
status, and (viii) employee collective bargaining or the like or any Contract with any labor union
together with the minutes of any meetings of any such labor union or similar employee association.

(b) Proprietary Rights Agreement. No employee or director of any Acquired Company is
a party to, or is otherwise bound by, any agreement or arrangement, including any confidentiality,
non-competition, or proprietary rights agreement, between such employee or director and any other
Person (each, a “Proprietary Rights Agreement”) that in any way adversely affects or will
affect (i) the performance of his duties as an employee or director of the Acquired Companies, or
(ii) the ability of any Acquired Company to conduct its business, including any Proprietary Rights
Agreements with Seller or the Acquired Companies by any such employee or director. To Seller’s
Knowledge, no director, officer, or other key employee of any Acquired Company intends to terminate
his employment with such Acquired Company.

(c) Retired Employees. Section 2.23 of the Disclosure Schedule also contains a
complete and accurate list of the following information for each retired employee or director of
each Acquired Company, or their dependents, but only such retired employees or directors, or their
dependents, which are receiving benefits or are scheduled to receive benefits in the future: (i)
name, (ii) pension benefit, (iii) pension option election, (iv) retiree medical insurance coverage,
(v) retiree life insurance coverage, and (vi) other benefits.

SECTION 2.24 Grants and Subsidies.

(a) Section 2.24 of the Disclosure Schedule contains a copy of all grants and subsidies that
have been granted to any of the Acquired Companies by any Governmental Entity, as well as copies of
all pending applications by any Acquired Companies for any grant or subsidy (if any).

(b) The Acquired Companies comply and have at all times complied with all material terms and
requirements of such grants and subsidies, and there is, to the Seller’s Knowledge, no reasonable
basis for a decision by any competent Governmental Entity to (i) request any Acquired Company to
refund part or all of the grants and subsidies that it has received, or (ii) refuse to grant any
Acquired Company any of the grants and subsidies (or any part thereof) for which it has applied.

SECTION 2.25 No Other Representations or Warranties. EXCEPT AS SET FORTH EXPRESSLY
HEREIN, ANY ANCILLARY AGREEMENT, ANY CERTIFICATE DELIVERED PURSUANT HERETO, OR ANY
SCHEDULE ATTACHED HERETO OR THERETO, NEITHER SELLER NOR THE COMPANY IS MAKING ANY REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER WITH RESPECT TO THE ACQUIRED COMPANIES; AND
THE ACQUIRED COMPANIES AND EACH OF THEIR RESPECTIVE REPRESENTATIVES HEREBY DISCLAIM ANY SUCH
REPRESENTATION OR WARRANTY WITH RESPECT TO THE EXECUTION AND DELIVERY OF THIS AGREEMENT OR THE
CONSUMMATION OF THE CONTEMPLATED TRANSACTIONS HEREBY, NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO
PURCHASER OR ANY OF ITS REPRESENTATIVES OR ANY OTHER PERSON OF ANY DOCUMENTATION OR OTHER
INFORMATION BY SELLER, ANY ACQUIRED COMPANY OR ANY OF THEIR RESPECTIVE REPRESENTATIVES OR ANY OTHER
PERSON WITH RESPECT TO ANY ONE OR MORE OF THE FOREGOING. EXCEPT AS SET FORTH EXPRESSLY HEREIN, THE
CONDITION OF THE ASSETS OF THE COMPANY AND ITS SUBSIDIARIES SHALL BE “AS IS”, “WHERE IS” AND WITH
“ALL FAULTS.”

ARTICLE III

Representations and Warranties of Seller

Seller represents and warrants to Purchaser that the statements contained in this Article
III are correct and complete as of the date hereof and will be correct and complete as of the
Closing Date, except as set forth in the Disclosure Schedule:

SECTION 3.01 Organization; Standing; Qualification; Power. Seller is duly organized,
validly existing under the laws of the jurisdiction of its organization and has corporate or
limited liability company power and authority to own, lease and operate its properties and to carry
on its business as presently conducted. Seller is duly qualified to do business in each
jurisdiction in which such qualification is necessary because of the nature of the business
conducted by it, except where the failure to be so qualified would not reasonably be expected to
have a Material Adverse Effect on Seller.

SECTION 3.02 Authority; Execution and Delivery; and Enforceability. Seller has the
power and authority to execute this Agreement and each Ancillary Agreement to which it is (or will
be) a party and to consummate the Contemplated Transactions. The execution and delivery by Seller
of this Agreement and the consummation of the Contemplated Transactions have been duly authorized
by all necessary company action on the part of Seller. This Agreement and each Ancillary Agreement
to which Seller is (or will be) a party (a) has been (or, in the case of Ancillary Agreements to be
entered into at or prior to the Closing, will be) duly executed and delivered by Seller and (b) is
(or in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a
legal, valid and binding obligation of Seller, Enforceable against Seller in accordance with its
terms. The Agreement constitutes a legal, valid and binding obligation of Seller, Enforceable
against Seller in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
affecting the enforcement of creditors’ rights generally and general equitable principles.

SECTION 3.03 Capital Stock. On the date hereof Seller is, and on the Closing Date
Seller will be, the record and beneficial owner of all the outstanding Capital Stock and other
Equity Interests in the Company, and Seller has (and will have on the Closing Date) good and
marketable title to all the Capital Stock, free and clear of all Encumbrances, except as are
imposed by applicable securities laws. Seller has (and will have on the Closing Date) full right,
power and authority to transfer and deliver to Purchaser valid title to the Capital Stock and other
Equity Interests held by Seller, free and clear of all Encumbrances. Immediately following the
Closing, Purchaser will be the record and beneficial owner of the Capital Stock and other Equity
Interests, and have good and marketable title to the Capital Stock and other Equity Interests, free
and clear of all Encumbrances except as are imposed by applicable securities laws or created by
Purchaser. Except pursuant to this Agreement, there is no Contractual Obligation pursuant to which
Seller has, directly or indirectly, granted any option, warrant or other right to any Person to
acquire any Capital Stock or other Equity Interests in an Acquired Company. Except as disclosed on
Section 3.03 of the Disclosure Schedule, Seller is not a party to, and the Capital Stock and other
Equity Interests in the Company are not subject to, any shareholders agreement, voting agreement,
voting trust, proxy or other Contractual Obligation relating to the transfer or voting of such
Capital Stock and other Equity Interests.

SECTION 3.04 No Conflicts; Consents. Neither the execution and delivery by Seller of
this Agreement or any Ancillary Agreement to which Seller is (or will be) a party nor the
consummation of the Contemplated Transactions, nor compliance by Seller with any of the provisions
hereof, will conflict with or result in any violation of or default under, or give rise to a right
of termination, cancellation or acceleration of any obligation or loss of a material benefit under,
or result in the creation of any Encumbrance upon any of the properties or assets owned or used by
Seller under (a) any provision of Seller’s articles of association or other Organizational
Documents, if applicable, (b) any judgment or any Legal Requirement applicable to Seller or the
Capital Stock owned by Seller, or (c) any material Contract to which Seller is a party or by which
any of its assets or properties are bound, other than any such conflicts, violations, defaults or
rights or losses that would not reasonably be expected to prevent the consummation of the
Contemplated Transactions. Except as set forth on Section 3.04 of the Disclosure Schedule or as
otherwise contemplated by this Agreement, no action by, material Permit of or registration,
declaration or filing with, any Governmental Entity or other Person is required (x) for, or in
connection with, the valid and lawful authorization, execution, delivery and performance by Seller
of this Agreement and each Ancillary Agreement to which it is (or will be a party) or (y) to be
obtained or made for the consummation by Seller of the Contemplated Transactions or any related
agreement to which Seller is a party.

SECTION 3.05 No Brokers. Except as disclosed in Section 3.05 of the Disclosure
Schedule, Seller has no Liability of any kind to any broker, finder or agent with respect to the
Contemplated Transactions, and Seller agrees to satisfy in full any Liability required to be
disclosed on Section 3.05 of the Disclosure Schedule.

SECTION 3.06 No Other Representations or Warranties. EXCEPT AS SET FORTH EXPRESSLY
HEREIN, ANY ANCILLARY AGREEMENT, ANY CERTIFICATE DELIVERED PURSUANT HERETO, OR ANY SCHEDULE
ATTACHED HERETO OR THERETO, SELLER IS NOT MAKING ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, OF ANY NATURE WHATSOEVER WITH RESPECT TO ITSELF, ANY ACQUIRED COMPANY, AND SELLER AND EACH
OF ITS REPRESENTATIVES HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY, WHETHER BY SELLER OR
ANY OF ITS REPRESENTATIVES OR ANY OTHER PERSON, WITH RESPECT TO THE EXECUTION AND DELIVERY OF THIS
AGREEMENT OR THE CONSUMMATION OF THE CONTEMPLATED TRANSACTIONS, NOTWITHSTANDING THE DELIVERY OR
DISCLOSURE TO PURCHASER OR ANY OF ITS REPRESENTATIVES OR ANY OTHER PERSON OF ANY DOCUMENTATION OR
OTHER INFORMATION BY SELLER OR ANY OF ITS REPRESENTATIVES OR ANY OTHER PERSON WITH RESPECT TO ANY
ONE OR MORE OF THE FOREGOING.

ARTICLE IV

Representations and Warranties of Purchaser

Purchaser represents and warrants to Seller that the statements contained in this Article
IV will be correct and complete as of the Closing Date:

SECTION 4.01 Organization; Standing; Qualification; Power. Purchaser is duly
organized, validly existing under the laws of the jurisdiction of its organization and has
corporate or limited liability company power and authority to own, lease and operate its properties
and to carry on its business as presently conducted.

SECTION 4.02 Authority; Execution and Delivery; Enforceability. Purchaser has the
requisite power and authority to execute this Agreement and to consummate the Contemplated
Transactions. The execution and delivery by Purchaser of this Agreement and the consummation of
the Contemplated Transactions has been duly authorized by all necessary action. Purchaser has duly
executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding
obligation of Purchaser, Enforceable against Purchaser in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws affecting the enforcement of creditors’ rights generally and
general equitable principles.

SECTION 4.03 No Conflicts; Consent.

(a) Except as disclosed on Schedule 4.03, the execution and delivery by Purchaser of
this Agreement does not, and the consummation of the Contemplated Transactions and compliance by
Purchaser with the terms hereof will not, conflict with, or result in any violation of or default
under, or give rise to a right of termination, cancellation or acceleration of any obligation or a
loss of a material benefit under, or result in the creation of any Encumbrance upon any of the
properties or assets owned or used by Purchaser under, any provision of (i) the Organizational
Documents of Purchaser, (ii) any material Contract to which Purchaser is a party or by which any of
their respective properties or assets is bound or (iii) any judgment or Legal Requirement
applicable to Purchaser or its properties or assets, other than, in the case of clauses (i), (ii)
and (iii) above, any such conflicts, violations, defaults, rights or losses that would not
reasonably be expected to have a material adverse effect on Purchaser.

(b) Except as disclosed on Schedule 4.03, no material Consent or Permit of, or
registration, declaration or filing with, any Governmental Entity is required to be obtained or
made by or with respect to Purchaser in connection with the execution, delivery and performance by
Purchaser of this Agreement, or the consummation of the Contemplated Transactions, other than (i)
compliance with and filings and notifications under applicable Environmental Laws and (ii) those
the failure of which to obtain or make would not reasonably be expected to (x) have a material
adverse effect on Purchaser or (y) materially impair the ability of Purchaser to perform its
obligations under this Agreement.

SECTION 4.04 Proceedings. There are not any (a) outstanding judgments with respect to
Purchaser, (b) Proceedings or Claims pending or, to the knowledge of Purchaser, threatened against
Purchaser or any of its Subsidiaries or (c) investigations by any Governmental Entity that are
pending or, to the knowledge of Purchaser, threatened against Purchaser or any of its Subsidiaries
that would reasonably be expected to give rise to any legal restraint on or prohibition against the
Contemplated Transactions.

SECTION 4.05 Financing. Purchaser has delivered to the Seller a true and complete
copy of an executed version of that certain Senior Facilities Agreement, dated the date hereof, by
and among Goldman Sachs JB Were Pty Limited and the other parties thereto (the “Senior
Facilities Agreement”), pursuant to which the Financing Party (as defined therein) has agreed
to lend the amount set forth therein (the “Debt Financing”).

SECTION 4.06 Brokers or Finders. Except as set forth in Schedule 4.06,
Purchaser has not incurred directly or indirectly, any liability for brokerage or finders’ fees or
agents’ commissions or any similar charges in connection with this Agreement or any transaction
contemplated hereby.

SECTION 4.07 No Other Representations or Warranties. EXCEPT AS SET FORTH EXPRESSLY
HEREIN, ANY ANCILLARY AGREEMENT, ANY CERTIFICATE DELIVERED PURSUANT HERETO, PURCHASER IS NOT MAKING
ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER WITH RESPECT TO
ITSELF, AND ITS REPRESENTATIVE HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY, WITH RESPECT
TO THE EXECUTION AND DELIVERY OF THIS AGREEMENT OR THE CONSUMMATION OF THE CONTEMPLATED
TRANSACTIONS HEREBY, NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO THE COMPANY OR SELLER OR ANY OF
THEIR REPRESENTATIVES OR ANY OTHER PERSON OF ANY DOCUMENTATION OR OTHER INFORMATION BY THE COMPANY
OR SELLER OR ANY OF THEIR REPRESENTATIVES OR ANY OTHER PERSON WITH RESPECT TO ANY ONE OR MORE OF
THE FOREGOING.

ARTICLE V

Covenants

SECTION 5.01 Conduct of Business of the Company. From the date of this Agreement
until the Closing Date, the Sellers will cause the Acquired Companies to conduct the Business only
in (a) the Ordinary Course of Business, (b) maintain the value of the Business as a going concern,
(c) preserve intact its business organization and relationships with third parties and employees
and (d) consult with Purchaser prior to taking any action or entering into any transaction that may
be of strategic importance to an Acquired Company.

SECTION 5.02 Purchaser’s Consent. Without limiting the generality or effect of
Section 5.01 and without Purchaser’s prior written consent, Seller will cause the Acquired
Companies not to:

(a) take or omit to take any action that would cause the representations and warranties in
Article II to be untrue at, or as of any time prior to, the Closing Date;

(b) take or omit to take any action which, if taken or omitted to be taken between the Most
Recent Balance Sheet Date and the date of this Agreement would have been required to be disclosed
on Section 2.09 of the Disclosure Schedule; and

(c) prepay Taxes in an aggregate amount that exceeds €10,000.

SECTION 5.03 Confidentiality.

(a) Purchaser acknowledges that the information being provided to it in connection with the
Acquisition and the consummation of the other Contemplated Transactions is subject to the terms of
a confidentiality agreement dated as of February 28, 2007, by and among the Purchaser, Seller and
the Company (the “Confidentiality Agreement”), the terms of which are incorporated herein
by reference. Effective upon the Closing, the Confidentiality Agreement shall terminate with
respect to information relating solely to the Company or its Subsidiaries; provided, however, that
Purchaser acknowledges that any and all other information provided to it by Seller or any
representative or agent of Seller concerning Seller shall remain subject to the terms and
conditions of the Confidentiality Agreement after the Closing Date.

(b) Seller acknowledges that the success of the Acquired Companies after the Closing depends
upon the continued preservation of the confidentiality of certain information possessed by Seller,
that the preservation of the confidentiality of such information by Seller is an essential premise
of the bargain between Seller and Purchaser, and that Purchaser would be unwilling to enter into
this Agreement in the absence of this Section 5.03(b). Accordingly, Seller hereby agrees
with Purchaser that Seller will not, and that Seller will cause its Affiliates not to, at any time
on or after the Closing Date, directly or indirectly, without the prior written consent of
Purchaser, disclose or use, any confidential or proprietary information involving or relating to
the Business or an Acquired Company; provided, however, that the information
subject to the foregoing provisions of this sentence will not include any information generally
available to, or known by, the public (other than as a result of disclosure in violation hereof);
and provided, further, that the provisions of this Section 5.03(b) will not
prohibit any retention of copies of records or disclosure (i) required by any applicable Legal
Requirement so long as reasonable prior notice is given of such disclosure and a reasonable
opportunity is afforded to contest the same or (ii) made in connection with the enforcement of any
right or remedy relating to this Agreement or the Contemplated Transactions. Seller agrees that it
will be responsible for any breach or violation of the provisions of this Section 5.03(b)
by any of its Representatives.

SECTION 5.04 Expenses. Whether or not the Contemplated Transactions are consummated,
each party will pay its own respective financial advisory, legal, accounting and other expenses
incurred by it or for its benefit in connection with the preparation and execution of this
Agreement, the compliance herewith and the Contemplated Transactions; provided,
however, that all such expenses incurred by the Acquired Companies will be borne by Seller.

SECTION 5.05 Further Assurances. From time to time, as and when requested by any
party, each party shall execute and deliver, or cause to be executed and delivered, all such
documents and instruments and shall take, or cause to be taken, all such further actions, as such
other party may reasonably deem necessary or desirable to consummate the Contemplated Transactions.

SECTION 5.06 Notices and Consents.

(a) Acquired Companies. Prior to the Closing, Seller will cause the Acquired
Companies to give all notices to, make all filings with, and use their Commercially Reasonable
Efforts to obtain all authorizations, consents, waivers or approvals from, any Governmental Entity
or other Person that are set forth on Section 2.03 and Section 2.04 of the Disclosure Schedule or
as otherwise reasonably requested by Purchaser.

(b) Seller. Prior to the Closing, Seller will give all notices to, make all filings
with, and use its Commercially Reasonable Efforts to obtain all authorizations, consents, waivers
or approvals from, any Governmental Entity or other Person that are set forth on Section 3.04 of
the Disclosure Schedule or as otherwise reasonably requested by Purchaser.

SECTION 5.07 Purchaser’s Access to Premises; Information. From the date of this
Agreement until the Closing Date, the Seller will cause the Acquired Companies to permit Purchaser,
prospective providers of the Debt Financing and their respective Representatives to have full
access (at reasonable times and upon reasonable notice) to all officers of the Acquired Companies
and to all premises, properties (including for the purposes of environmental inspection), books,
records (including Tax records), contracts, financial and operating data and information and
documents pertaining to the Acquired Companies and make copies of such books, records, contracts,
data, information and documents as Purchaser, prospective providers of the Debt Financing or their
respective Representatives may reasonably request.

SECTION 5.08 Notice of Developments. From the date of the Agreement until the Closing
Date, the Seller will give Purchaser prompt written notice upon becoming aware of any material
development affecting the Assets, Liabilities, Business, financial condition, operations or
prospects of an Acquired Company, or any event or circumstance that would reasonably be expected to
result in a breach of, or inaccuracy in, any of the Seller’s representations and warranties;
provided, however, that no such disclosure will be deemed to prevent or cure any
such breach of, or inaccuracy in, amend or supplement any Disclosure Schedule Section, or otherwise
disclose any exception to, any of the representations and warranties set forth in this Agreement.

SECTION 5.09 Payment of Indebtedness; Release of Encumbrances. Other than such Debt
which is included in the Closing Debt Amount, the Seller will cause the Acquired Companies and the
Acquired Companies’ Affiliates to satisfy all the Debt (including any Affiliate Debt) and related
Encumbrances on the shares or assets of any of the Acquired Companies, in each case identified on
Section 5.09 of the Disclosure Schedule in full on or before the Closing.

SECTION 5.10 Reorganization Transactions. The Seller (i) will use Commercially
Reasonable Efforts to cause Control Monitor Systems Inc. (“CMS”) to transfer the
underwriter laboratory applications for approvals to the Acquired Companies as soon as reasonably
possible, (ii) will cause the Company and Belmation to sell, transfer, convey and deliver to Seller
good and valid title to all of the capital stock of CMS, free and clear of all Encumbrances, (iii)
will pay to the Company in consideration of the sale of the capital stock of CMS €150,000 in cash
by wire transfer in immediately available funds and (iv) will pay on behalf of CMS (or will cause
CMS to pay) to the Company in cash by wire transfer in immediately available funds, $1,450,000
representing the face amount of the intercompany payables on the date hereof owed to the Company by
CMS (as such amount may be adjusted to reflect the actual amount of such payables on the Closing)
on or prior to the Closing.

SECTION 5.11 Release. Effective as of the Closing, Seller hereby releases, remises
and forever discharges any and all rights and claims that it has had, now has or might now have
against the Acquired Companies.

SECTION 5.12 Publicity. No public announcement or disclosure will be made by any
party with respect to the subject matter of this Agreement or the Contemplated Transactions without
the prior written consent of Purchaser and Seller; provided, however, that the
provisions of this Section 5.12 will not prohibit (a) any private disclosure by any
prospective provider of the Debt Financing in the ordinary course to any such Person’s
Representatives, potential investors or participants, so long as each such recipient is under an
obligation to keep such disclosed information confidential, (b) any disclosure required by any
applicable Legal Requirements (in which case the disclosing party will provide the other parties
with the opportunity to review in advance the disclosure) or (c) any disclosure made in connection
with the enforcement of any right or remedy relating to this Agreement or the Contemplated
Transactions.

SECTION 5.13 Noncompetition and Nonsolicitation. For a period of three (3) years from
and after the Closing Date, Seller will not and will cause its Affiliates not to engage directly or
indirectly in all or any portion of the business of developing, manufacturing, distributing,
selling or installing access control, intrusion detection, fire detection, video analytics, video
surveillance or biometric authentication security systems, or developing in house advanced
intelligent video analytic and surveillance software in each case, in Europe and any other
geographic area in which any of the Acquired Companies conduct such business as of immediately
prior to the Closing Date; provided, however, that no owner of less than 5% of the
outstanding stock of any publicly-traded corporation will be deemed to be so engaged solely by
reason thereof in the Businesses. For a period of two years from and after the Closing Date,
Seller will not recruit, offer employment, employ, engage as a consultant, lure or entice away, or
in any other manner persuade or attempt to persuade, any Person who is an employee of any of the
Acquired Companies to leave the employ of the Acquired Companies. If the final judgment of a court
of competent jurisdiction declares that any term or provision of this Section 5.13 is
invalid or unenforceable, the parties hereto agree that the court making the determination of
invalidity or unenforceability will have the power to reduce the scope, duration, or area of the
term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and Enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and this Agreement will
be Enforceable as so modified after the expiration of the time within which the judgment may be
appealed.

SECTION 5.14 Insurance: Risk of Loss. To the extent that (i) there are insurance
policies maintained by Seller or any or its Affiliates (other than the Acquired Companies) (the
“Seller Insurance Policies”) insuring against any loss, liability, damage or expense
relating to the assets, operation and employees (including former employees) of one or more
Acquired Companies (the “Acquired Company Liabilities”) and relating to or arising out of
acts or omissions occurring or existing on or prior to the Closing, and (ii) Seller Insurance
Policies continue after Closing to permit claims to be made with respect to such Acquired Company
Liabilities relating to or arising out of acts or omissions occurring or existing on or prior to
the Closing (such claims, the “Acquired Company Claims”) to the extent assignable, Seller
shall assign such Acquired Company Claims to Purchaser and to the extent not assignable, Seller
shall and shall cause such Affiliates to submit and otherwise to administer the collection of
payment in respect of the Acquired Company Claims on behalf of Purchaser and the Acquired Companies
under Seller Insurance Policies.

SECTION 5.15 Certain Employee Matters.

(a) The parties acknowledge that the Contemplated Transactions shall not, by themselves,
constitute a termination of employment of any employee of the Company or any of its Subsidiaries.
Purchaser shall be responsible for all severance or termination liabilities related to the
termination of employment of any such employee on or after the Closing Date.

(b) The Seller will cause the Company to use Commercially Reasonable Efforts to cause all
current and former employees, consultants and contractors of an Acquired Company who contributed to
or participated in the conception or development, or both, of the Company Intellectual Property as
well as the officers and technical employees of the Acquired Companies to assign to the Acquired
Company all the respective rights, including Intellectual Property, to any inventions,
improvements, discoveries or information relating to the Business and that obligate such Persons to
maintain the confidentiality of the Acquired Company’s confidential information and trade secrets.

SECTION 5.16 Competition Clearance. The parties hereto shall cooperate with each
other (including by furnishing relevant information) in complying with any filing or notification
formalities required to obtain any approval or clearance of or non-objection found to be applicable
to the Contemplated Transactions by any competent anti-trust or competition authority.

SECTION 5.17 Exclusivity. From the date of this Agreement until the earlier of (i)
the Closing, or (ii) the termination of this Agreement in accordance with Article VI, Seller will
not, and it will cause the Company not to (and the Company and Seller will not permit their
respective Affiliates or any of their or their Affiliates’ Representatives to) directly or
indirectly: (a) solicit, initiate, or encourage the submission of any proposal or offer from any
Person relating to, or enter into or consummate any transaction relating to, the acquisition of any
Equity Interests in the Acquired Companies or any merger, recapitalization, share exchange, sale of
substantially all of the Assets of the Acquired Companies (other than sales of inventory in the
Ordinary Course of Business) or any similar transaction or alternative to the Contemplated
Transactions or (b) participate in any discussions or negotiations regarding, furnish any
information with respect to, assist or participate in, or facilitate in any other manner any effort
or attempt by any Person to do or seek any of the foregoing. Seller will not vote its shares in
favor of any such acquisition structured as a merger, consolidation, share exchange or otherwise.
The Seller will notify Purchaser immediately if any Person makes any proposal, offer, inquiry or
contact with respect to any of the foregoing (whether solicited or unsolicited).

SECTION 5.18 Financing.

(a) Purchaser shall use, and shall cause its Affiliates to use, their Commercially Reasonable
Efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things
necessary, proper or advisable to arrange the Debt Financing on the terms and conditions described
in the Senior Facilities Agreement. Purchaser may amend, restate, modify, supplement or replace
the Senior Facilities Agreement to (i) add and appoint additional arrangers, book runners,
underwriters, agents, lenders and similar entities, to provide for the assignment and reallocation
of a portion of the financing commitments and to grant customary approval rights to such additional
arrangers and other entities in connection with such appointments, (ii) increase the amount of
indebtedness or (iii) replace one or more facilities contemplated by the Senior Facilities
Agreement with one or more new facilities, which are in the aggregate no less beneficial to
Purchaser, the Company and the stockholders of Purchaser than the terms of the Senior Facilities
Agreement (as determined in the reasonable judgment of Purchaser) (the “New Facilities
Agreement”); provided, that the New Facilities Agreement shall not (x) adversely amend
the conditions to the Debt Financing set forth in the Senior Facilities Agreement, in any material
respect, (y) reasonably be expected to delay or prevent the Closing, or (z) reduce the aggregate
amount of available debt financing (unless, in the case of this clause (z), such amount is replaced
with any amount of new equity financing or one or more debt facilities pursuant to the New
Facilities Agreement). Upon and from and after each such event, the term “Debt Financing” as used
herein shall be deemed to mean the Debt Financing contemplated by the Senior Facilities Agreement
that is not so superseded at the time in question and the New Facilities Agreement.

(b) Prior to the Closing, the Seller shall provide, shall cause the other Acquired Companies
to provide, and shall use their respective Commercially Reasonable Efforts to cause its and their
Representatives to provide, such cooperation in connection with the arrangement of the Debt
Financing as may be reasonably requested by Purchaser, provided, that such requested
cooperation does not unreasonably interfere with the ongoing operations of Seller or the Acquired
Companies; provided, further, that none of Seller nor any of the Acquired Companies
shall be required to pay any commitment or similar fee or incur any other liability in connection
with the Debt Financing prior to the Closing. Seller hereby consents to use of the Acquired
Companies’ logos in connection with the Debt Financing; provided that such logos are used
solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or
any of its Affiliates or the reputation or goodwill of the Company or any of its Affiliates and its
or their marks.

SECTION 5.19 Tax Election. Seller, and Seller will cause the Acquired Companies to,
make an election under Section 338(g) of the U.S. Internal Revenue Code of 1986, as amended, with
respect to the purchase and sale of the Capital Stock of the Company hereunder, and, if applicable
with respect to such an election, the other Acquired Companies. Seller and the Purchaser agree
that the final Purchase Price will be allocated to the assets of the Company and its Subsidiaries
for all purposes in a manner consistent with such Section 338 and the regulations thereunder and
agree to cooperate to make this election in a timely manner and to file all Tax Returns and
information reports in a manner consistent with such allocation.

SECTION 5.20 Release. The Purchaser will, and will cause each of the Acquired
Companies to, hereby release Seller’s officers, directors, employees, agents, and attorneys and
each of them (collectively, the “Seller Released Parties”) from any and all Claims and
agrees not to bring or threaten to bring or otherwise join in any Claim against Seller Released
Parties or any of them, relating to, arising out of or in connection with any facts or
circumstances relating to the Company which existed on or prior to the Closing Date; provided, that
the foregoing shall not apply to any Claim under this Agreement.

SECTION 5.21 Discharge. Subject to article 554 of the Belgian Companies Code and
generally to all matters, which may give rise to any finding of liability of the directors of the
Company or its Subsidiaries and which have not been disclosed to Purchaser prior to the Closing
Date, Purchaser undertakes to grant, at the first annual shareholders’ meeting of the Company and
each Subsidiary following the Closing Date, to all directors of the Company and each of its
Subsidiaries in function immediately prior to the Closing Date, full release from liability arising
from the performance of their duties prior to the Closing Date, provided that such release from
liability shall not impair any rights of Purchaser under this Agreement.

ARTICLE VI

Termination

SECTION 6.01 Termination of the Agreement. Certain of the parties may terminate this
Agreement as provided below:

(a) Purchaser and Seller may terminate this Agreement by mutual written consent at any time
prior to the Closing;

(b) Purchaser may terminate this Agreement by giving written notice to Seller at any time
prior to the Closing (i) in the event Seller has breached any representation, warranty, or covenant
contained in this Agreement in any material respect, Purchaser has notified Seller of the breach,
and the breach has continued without cure for a period of thirty (30) days after the notice of
breach or (ii) if the Closing shall not have occurred on or before October 31, 2007, by reason of
the failure of any condition precedent under Article VII hereof (unless the failure results
primarily from Purchaser itself breaching any representation, warranty, or covenant contained in
this Agreement);

(c) Seller may terminate this Agreement by giving written notice to Purchaser at any time
prior to the Closing (i) in the event Purchaser has breached any representation, warranty, or
covenant contained in this Agreement in any material respect, Seller has notified Purchaser of the
breach, and the breach has continued without cure for a period of thirty (30) days after the notice
of breach or (ii) if the Closing shall not have occurred on or before October 31, 2007, by reason
of the failure of any condition precedent under Article VII hereof (unless the failure
results primarily from Seller or the Company breaching any representation, warranty, or covenant
contained in this Agreement); and

(d) by either Purchaser or Seller if a final nonappealable Governmental Order permanently
enjoining or otherwise prohibiting the Closing will have been issued by a Governmental Entity of
competent jurisdiction.

SECTION 6.02 Effect of Termination. In the event of the termination of this Agreement
pursuant to Section 6.01, this Agreement (other than the provisions of this Article
VI and Sections 2.22, 3.05 and 4.06 (No Brokers), 5.04
(Expenses), 5.03 (Confidentiality), 5.12 (Publicity), 9.09 (Governing Law),
9.10 (Jurisdiction, Venue, Process and Arbitration) and 9.11 (Waiver of Jury Trial)
which shall survive such termination) shall then be null and void and have no further force and
effect and all other rights and liabilities of the parties hereunder will terminate without any
liability of any party to any other party, except for liabilities arising in respect of breaches
under this Agreement by any party prior to such termination.

ARTICLE VII

Closing Conditions

SECTION 7.01 Conditions to Purchaser’s Obligations at the Closing. The obligations of
Purchaser to consummate the Closing is subject to fulfillment of each of the following conditions:

(a) Seller or a duly authorized attorney-in-fact of Seller shall record the transfer of the
shares of Capital Stock owned by Seller to Purchaser in the Company’s share register and shall sign
the Company’s share register to that effect, and to the extent applicable;

(b) Purchaser shall have received duly signed resignations, effective immediately after the
Closing, of all officers and directors of the Acquired Companies (other than those whom Purchaser
will have specified in writing at least two Business Days prior to the Closing) and their statutory
auditor;

(c) the Seller will have delivered to Purchaser a certificate, dated as of the Closing Date,
signed by a duly authorized representative of Seller and certifying as to (i) Seller’s articles of
association or similar Organizational Documents and the incumbency of its officers executing this
Agreement and each of the related agreements to which it is a party and (ii) the resolutions of its
board of directors authorizing the execution, delivery and performance by it of this Agreement and
each related agreement to which it is a party;

(d) Seller will have delivered to Purchaser a certificate, dated as of the Closing Date,
signed by a duly authorized representative of Seller and certifying that (i) the representations
and warranties set forth in Article II and Article III and in any document,
instrument or certificate delivered hereunder (x) that are not qualified by materiality or Material
Adverse Effect are true and correct in all material respects at and as of the Closing Date with the
same force and effect as if made as of the Closing and (y) that are qualified by materiality or
Material Adverse Effect are true and correct in all respects at and as of the Closing with the same
force and effect as if made as of the Closing, in each case, other than representations and
warranties that expressly speak only as of a specific date or time, which will be true and correct
as of such specified date of time, (ii) the Seller has performed and complied with all of its
agreements, obligations and covenants hereunder in all respects through the Closing, and (iii)
there are no injunctions, judgments, orders, decrees, rulings, or charges in effect or threatened
which would (A) prevent the consummation of any of the Contemplated Transactions, (B) result in any
of the Contemplated Transactions being rescinded following consummation, (C) limit or otherwise
adversely affect the right of Purchaser to own Capital Stock (including the right to vote such
shares), to control the Acquired Companies or operate any material portion of either Business or
Assets or of the business or assets of Purchaser or any of its Affiliates, (D) or would compel
Purchaser or any of its Affiliates to dispose of all or any material portion of either the Business
or Assets or the business or assets of Purchaser or any of its Affiliates;

(e) the Purchaser will have received a counterpart of each agreement or document relating to
this Agreement, the Escrow Agreement and the Ancillary Agreements to which Seller or the Company is
a party, which shall have been duly executed by each of the parties thereto and delivered to
Purchaser;

(f) Seller will have delivered to Purchaser the originals of all minute books, stock transfer
records, and corporate and all other records of the Company and its Subsidiaries;

(g) any applicable waiting periods (and any extensions thereof) under applicable anti-trust or
anti-competition Legal Requirements shall have expired or otherwise been terminated and no
provision of any applicable Legal Requirement and no Government Order will prohibit the
consummation of any of the Contemplated Transactions;

(h) all actions by (including any authorization, consent or approval) or in respect of
(including notice to), or filings with, any Governmental Entity or other Person that are required
to consummate the Contemplated Transactions, as disclosed in Section 2.03 or Section 3.04
of the Disclosure Schedule or as otherwise reasonably requested by Purchaser, will have been
obtained or made, in a manner reasonably satisfactory in form and substance to Purchaser, and no
such authorization, consent or approval will have been revoked;

(i) all corporate and other proceedings in connection with the Contemplated Transactions and
all documents incident thereto will be reasonably satisfactory in form and substance to Purchaser
and its counsel, and they will have received all such counterpart original and certified or other
copies of such documents as they may reasonably request;

(j) the Finance Party (as defined under the Senior Facilities Agreement) shall not have
terminated its commitment to fund in accordance with the Senior Facilities Agreement as a result of
(i) any representation, warranty or statement made in any Senior Finance Document or in connection
with any Facility or any Accounts (each, as defined in the Senior Facilities Agreement) is, as a
result of any of the information relating to the Acquired Companies delivered to Purchaser or its
Affiliates by Seller or its Affiliates, proved to be untrue or misleading in any material
respect when made and if the circumstances have not been remedied within 14 days of the earlier of
a Finance Party giving notice to an Obligor (as defined in the Senior Facilities Agreement) of the
misrepresentation and any Obligor becoming aware of the misrepresentation  not being correct in all
material respects or (ii) any event or series of events (whether related or not) occurs which has
had or is reasonably likely to have a Financing Material Adverse Effect.  For purposes of this
Section, “Financing Material Adverse Effect” means (A)  a material adverse effect
on the business, cash flow or operations of the Group (as defined in the Senior Facilities
Agreement) (taken as a whole); (B)  a material adverse effect on the ability of the Group
(taken as a whole) to perform the material obligations under the Senior Finance Documents; or (C) a
material adverse effect on the legality, validity or enforceability of the Senior Finance
Documents;

(k) since the Most Recent Balance Sheet Date, there will have occurred no events nor will
there exist circumstances which singly or in the aggregate have resulted in a Material Adverse
Effect;

(l) Seller will have repaid or caused the Company to repay all Debt and satisfy all
Encumbrances contemplated by Section 5.09 of the Disclosure Schedule and Seller will have obtained
and delivered or caused the Company to obtain and deliver to Purchaser documentation satisfactory
to Purchaser evidencing such repayment and satisfaction;

(m) Seller shall have terminated or caused to be terminated all Contracts with Affiliates,
including (i) the management services agreement dated January 1, 2002, between Allied Research
Corporation and the Company, (ii) the management services agreements dated November 11, 2005,
between the Company and each of CMS, TTG, IDCS and VIGITEC, (iii) the management services agreement
dated May 10, 1996, between IDCS and the Company and (iv) any other Contract with an Affiliate
required to be disclosed in Section 2.18 of the Disclosure Schedules; and

(n) Seller shall deliver such other documents as Purchaser reasonably requests.

SECTION 7.02 Conditions to Seller’s Obligations at the Closing. The obligations of
Seller to consummate the Closing is subject to the fulfillment of each of the following conditions
(unless waived by Seller):

(a) Purchaser will deliver to Seller the Purchase Price and deliver to the Escrow Agent the
Escrow Amount in accordance with the Escrow Agreement, each payable in accordance with Article
I;

(b) Purchaser will have delivered to Seller a certificate, dated as of the Closing Date,
signed by a duly authorized representative of Purchaser and certifying as to (i) Purchaser’s
articles of association or similar Organizational Documents and the incumbency of its officers
executing this Agreement and each of the related agreements to which it is a party and (ii) the
resolutions of its board of directors authorizing the execution, delivery and performance by it of
this Agreement and each related agreement to which it is a party;

(c) Purchaser will have delivered to Seller a certificate, dated as of the Closing Date,
signed by an officer of Purchaser and certifying that (i) the representations and warranties of the
Purchaser set forth in Article IV and in any document, instrument or certificate delivered
hereunder (x) that are not qualified by materiality are true and correct in all material respects
at and as of the Closing Date with the same force and effect as if made as of the Closing and (y)
that are qualified by materiality are true and correct in all respects at and as of the Closing
with the same force and effect as if made as of the Closing, in each case, other than
representations and warranties that expressly speak only as of a specific date or time, which will
be true and correct as of such specified date of time, (ii) Purchaser has performed and complied
with all of its covenants hereunder in all respects through the Closing, and (iii) there are no
injunctions, judgments, orders, decrees, rulings, or charges in effect or threatened which would
prevent the consummation of any of the Contemplated Transactions or which would result in any of
the Contemplated Transactions being rescinded following consummation;

(d) a counterpart of each agreement or document relating to this Agreement and Ancillary
Agreement to which Purchaser is a party, which shall have been duly executed and delivered to
Seller;

(e) any applicable waiting periods (and any extensions thereof) under applicable anti-trust or
anti-competition Legal Requirements shall have expired or otherwise been terminated and no
provision of any applicable Legal Requirement and no Government Order will prohibit the
consummation of any of the Contemplated Transactions;

(f) all actions by (including any authorization, consent or approval) or in respect of
(including notice to), or filings with, any Governmental Entity or other Person that are required
to consummate the Contemplated Transactions, as disclosed in Section 2.03 and Section 3.04 of the
Disclosure Schedule, will have been obtained or made, in a manner reasonably satisfactory in form
and substance to Seller, and no such authorization, consent or approval will have been revoked;

(g) all corporate and other proceedings in connection with the Contemplated Transactions and
all documents incident thereto will be reasonably satisfactory in form and substance to Seller and
to its counsel, and Seller will have received all such counterpart original and certified or other
copies of such documents as it may reasonably request;

(h) no Action will be pending or threatened in writing which may result in a Government Order,
nor will there be any Government Order in effect; and

(i) such other documents as Seller reasonably requests.

SECTION 7.03 Mutual Closing Conditions. The respective obligations of each party to
consummate the actions required to be taken or effected by it at the Closing shall be subject to
the fulfillment of any applicable waiting period under any competition laws relating to the
Contemplated Transactions shall have expired or been terminated.

ARTICLE VIII

Indemnification

SECTION 8.01 Indemnification by Seller.

(a) Seller shall indemnify Purchaser and its Affiliates (including, following the Closing the
Acquired Companies) and each of their respective officers, directors, employees, stockholders,
agents and representatives (the “Purchaser Indemnitees”) against and hold them harmless
from, any and all Actions, Liabilities, Governmental Orders, Encumbrances, losses, damages, bonds,
dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense
and enforcement of this Agreement), expenses or amounts paid in settlement (including reasonable
legal fees and expenses), whether or not involving a Third Party Claim (collectively,
“Losses”), suffered or incurred by any such Purchaser Indemnitee arising from:

(i) any breach of, or inaccuracy in, any representation or warranty made by Seller in
this Agreement (other than contained in Article II and Article III), any
Ancillary Agreement or the Disclosure Schedule or certificate delivered pursuant to this
Agreement (in each case, for purposes of determining the amount of Losses, such
representation or warranty would be read if all qualifications as to materiality, including
each reference to the defined term “Material Adverse Effect,” were deleted therefrom);

(ii) any breach or violation of any covenant or agreement of the Company pursuant to
this Agreement or any Ancillary Agreement which survives the Closing;

(iii) any breach of, or inaccuracy in, any representation or warranty made by Seller
contained in Article II of this Agreement, any Ancillary Agreement or any Disclosure
Schedule Section or certificate delivered pursuant to this Agreement (in each case, for
purposes of determining the amount of Losses, such representation or warranty would be read
if all qualifications as to materiality, including each reference to the defined term
“Material Adverse Effect,” were deleted therefrom);

(iv) any of the matters described in Exhibit 8.01(a)(iv); and

(v) any of the matters described in Exhibit 8.01(a)(v).

(b) Seller shall indemnify Purchaser Indemnitees against any Losses incurred by any such
Purchaser Indemnitee arising from:

(i) any breach of, or inaccuracy in, any representation or warranty made by Seller
contained in Article III of this Agreement, any Ancillary Agreement or any
Disclosure Schedule Section or certificate delivered pursuant to this Agreement (in each
case, for purposes of determining the amount of Losses, such representation or warranty
would be read if all qualifications as to materiality, including each reference to the
defined term “Material Adverse Effect,” were deleted therefrom); and

(ii) any breach or violation of any covenant or agreement of Seller pursuant to this
Agreement or any Ancillary Agreement which survives the Closing.

(c) Notwithstanding anything contained herein to the contrary, Seller shall not be required to
indemnify any Purchaser Indemnitee, and shall not have any liability:

(i) (A) under Section 8.01(a)(i), Section 8.01(a)(iii) and Section
8.01(b)(i) unless the aggregate amount of all Losses for which Seller would, but for
this clause (i), be liable thereunder exceeds on a cumulative basis an amount equal to
€100,000 (the “Basket”), at which point Seller will indemnify Purchaser Indemnitee
for all such Losses, or (B) under Section 8.01(a)(v) unless with respect to any item
listed on Exhibit 8.01(a)(v) the aggregate amount of all Losses for which Seller
would, but for this clause (i), be liable thereunder exceeds on a cumulative basis with
respect to such claim €10,000, at which point Seller will indemnify Purchaser Indemnitee for
all such Losses;

(ii) under Section 8.01(a)(i), Section 8.01(a)(iii), Section
8.01(a)(v) and Section 8.01(b)(i) in excess of €5.0 million (the “Indemnity
Cap”); and

(iii) to the extent the liability or obligation arises as a result of (x) any action
taken or omitted to be taken by Purchaser or any of its Affiliates or (y) any breach of a
representation or warranty of Purchaser.

(d) The limitations under Sections 8.01(c)(i) and Section 8.01(c)(ii) shall
not apply to (a) claims for indemnification in respect of breaches of, or inaccuracies in,
representations and warranties set forth in Sections 2.01 (Organization), 2.02
(Power and Authorization), 2.14 (Tax Matters), 2.04.(b)(iii) (Breach of
Organizational Documents), 2.01(c) (Capitalization), 2.16 (Environmental Matters),
2.22 (No Brokers), 3.01 (Organization), 3.02 (Authority), 3.04(a)
(No Breach of Organizational Documents of Seller), 3.03 (Capital Stock) or 3.05 (No
Brokers) or (b) claims based upon fraud or intentional misrepresentation. Claims for
indemnification pursuant to Sections 8.01(a)(ii), 8.01(a)(iv) and
8.01(b)(ii) are not subject to the monetary limitations set forth in
Section 8.01(c).

(e) Absent fraud or intentional misrepresentation, or as otherwise specifically provided in
this Agreement, Purchaser acknowledges that its sole and exclusive remedy after the Closing with
respect to any and all Claims relating to this Agreement, the Acquisition and the other
transactions contemplated hereby and thereby, the Company and its assets and liabilities shall be
pursuant to the indemnification provisions set forth in this Article VIII. In furtherance
of the foregoing, each of Purchaser and the Company hereby waives, from and after the Closing, to
the fullest extent permitted under any Legal Requirement, any and all rights and Claims (other than
Claims of fraud or intentional misrepresentation) for Losses it may have against Seller or Seller’s
Affiliates arising under, based upon or relating to this Agreement, any document or certificate
delivered in connection herewith, any Legal Requirement, common law or otherwise (except pursuant
to the indemnification provisions set forth in this Section 8.01).

(f) For those Claims or liabilities arising under Article VIII, Purchaser shall assert any
rights under Article VIII first against the Seller’s interest in the Escrow Amount, and only
against the Seller or the Parent directly to the extent that those Claims or liabilities arising
under Article VIII exceed the funds available in the Escrow Amount.

SECTION 8.02 Indemnification by Purchaser.

(a) Purchaser shall indemnify Seller and its Affiliates, and each of their respective
officers, directors, employees, stockholders, agents and representatives (the “Seller
Indemnitees”) against and hold them harmless from any Loss incurred by any such Seller
Indemnitee directly arising from:

(i) any breach of, or inaccuracy in, any representation or warranty made by Purchaser
in Article IV of this Agreement, any Ancillary Agreement or in any document,
Schedule, instrument or certificate delivered pursuant to this Agreement (in each case, as
such representation or warranty would read if all qualifications as to materiality,
including each reference to material adverse effect, were deleted therefrom);

(ii) any breach of any covenant of Purchaser contained in this Agreement or any
Ancillary Agreement; or

(iii) any Claim that the Acquisition (other than in whole or in part as a result of a
breach of representation or warranty by Seller or the Company under this Agreement) gives
rise to any severance or other benefits under any Employee Plan or Contract.

(b) Monetary Limitations. Purchaser will have no obligation to indemnify Seller
Indemnitees pursuant to Section 8.02(a)(i) and Section 8.02(a)(iii) in respect of
Losses arising from the breach of, or inaccuracy in, any representation or warranty described
therein unless and until the aggregate amount of all such Losses incurred or suffered by Seller
Indemnitees exceeds on a cumulative basis the Basket, at which point Purchaser will indemnify
Seller Indemnitees for all such Losses, and Purchaser’s aggregate liability in respect of claims
for indemnification pursuant to Section 8.02(a)(i) and Section 8.02(a)(iii) will
not exceed the Indemnity Cap; provided, however, that foregoing limitations will
not apply to (a) claims for indemnification pursuant to Section 8.02.(a)(i) in respect of
breaches of, or inaccuracies in, representations and warranties set forth in Sections 4.01
(Organization), 4.02 (Authority), 4.03(a)(i) (Breach of Organizational Documents)
or 4.06 (No Brokers) or (b) claims based upon fraud or intentional misrepresentation.
Claims for indemnification pursuant to any other provision of Section 8.02(a) are not
subject to the limitations set forth in this Section 8.02(b).

SECTION 8.03

4

Calculation of Losses.

Other than the diminution in value of the operations, Business or Assets of the Acquired Companies
resulting from a breach of any of the representations and warranties contained in Sections
2.06, 2.07 or 2.10, the amount of any Loss for which indemnification is
provided under this Article VIII shall not include any consequential, incidental, indirect,
special or punitive damages, shall be net of any amounts recovered by the Indemnified Party under
insurance policies with respect to such Loss and shall not be reduced by any net Tax benefit
available to the Indemnified Party arising from the payment of any such Loss; provided
however that to the extent the Indemnified Party actually receives a net Tax benefit for
its tax year that includes when the payment of such Loss was made by the Indemnifying Party
(assuming that this was the last Tax benefit received from those Tax benefits that were available),
the Indemnified Party shall pay the amount of such net Tax benefit actually received in that year
(but not in excess of the corresponding indemnification payment) to the Indemnifying Party. Any
indemnity payment under this Agreement shall be treated as an adjustment to the final Purchase
Price for Tax purposes, unless otherwise required by law and in such an otherwise required-by-law
situation an indemnity payment shall be made on a Grossed-Up Basis notwithstanding anything herein
to the contrary. The amount of the Loss arising out of any item included as a liability in
calculating Final Closing Working Capital shall be calculated net of the amount so included.

SECTION 8.04 Time for Claims. No claim may be made or suit instituted seeking
indemnification pursuant to Sections 8.01(a)(i), 8.01(a)(iii) or 8.02(a)(i)
for any breach of, or inaccuracy in, any representation or warranty unless a written notice
describing such breach or inaccuracy in reasonable detail in light of the circumstances then known
to the Indemnified Party, is provided to the Indemnifying Party:

(a) at any time, in the case of any breach of, or inaccuracy in, the representations and
warranties set forth in Sections 2.01 (Organization), 2.02 (Power and
Authorization), 2.04(b)(iii) (Breach of Organizational Documents),
2.01(c) (Capitalization), 2.21 (Litigation; Government Orders), 2.22 (No
Brokers), 3.01 (Organization), 3.02 (Authority), 3.03 (Capital Stock),
3.04(a) (No Breach of Organizational Documents of Seller), 3.05 (No Brokers),
4.01 (Organization), 4.02 (Authority), 4.03(a)(i) (Breach of Organizational
Documents) or 4.06 (No Brokers);

(b) at any time, in the case of any claim or suit based upon fraud or intentional
misrepresentation;

(c) at any time prior to the thirtieth (30th) day after the expiration of the applicable
statute of limitations (taking into account any tolling periods and other extensions) in the case
of any breach of, or inaccuracy in, the representations and warranties set forth in Sections
2.06 (Product Warranty; Product Liability), 2.14 (Tax Matters) or 2.16
(Environmental Matters); and

(d) at any time prior to eighteen (18) months from the Closing Date, in the case of any breach
of, or inaccuracy in, any other representation and warranty in this Agreement.

Claims for indemnification pursuant to any other provision of Sections 8.01(a) and
8.02(a) are not subject to the limitations set forth in Section 8.04.

SECTION 8.05 Procedures.

(a) Third Party Claims. In order for a Person (the “Indemnified Party”) to be
entitled to any indemnification provided for under Sections 8.01 or 8.02 in respect
of, arising out of or involving a Claim made by any Person against the Indemnified Party (a
“Third Party Claim”), such Indemnified Party must notify the party with the indemnification
obligation (the “Indemnifying Party”) in writing (and in reasonable detail) of the Third
Party Claim within thirty (30) days following receipt by such Indemnified Party of notice of the
Third Party Claim; provided, however, that no delay on the part of the Indemnified
Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation
under this Article VIII, except to the extent such delay actually and materially prejudices
the Indemnifying Party. Thereafter, the Indemnified Party shall deliver to the Indemnifying Party,
within five (5) business days’ time after the Indemnified Party’s receipt thereof, copies of all
notices and documents (including court papers) received by the Indemnified Party relating to the
Third Party Claim.

(b) Assumption. If a Third Party Claim is made against an Indemnified Party, the
Indemnifying Party shall be entitled to participate in the defense thereof and, if it so chooses,
to assume the defense thereof with counsel selected by the Indemnifying Party as long as it
conducts such defense actively and diligently. Should the Indemnifying Party so elect to assume,
and while it so assumes, the defense of a Third Party Claim, the Indemnifying Party shall not be
liable to the Indemnified Party for any legal expenses subsequently incurred by the Indemnified
Party in connection with the defense thereof. If the Indemnifying Party assumes such defense, the
Indemnified Party shall have the right to participate in the defense thereof and to employ counsel
(not reasonably objected to by the Indemnifying Party), at its own expense, separate from the
counsel employed by the Indemnifying Party, it being understood that the Indemnifying Party shall
control such defense. The Indemnifying Party shall be liable for the fees and expenses of counsel
employed by the Indemnified Party for any period during which the Indemnifying Party has not
assumed the defense thereof (other than during any period in which the Indemnified Party shall have
failed to give notice of the Third Party Claim). If the Indemnifying Party chooses to defend or
prosecute a Third Party Claim, all the Indemnified Parties shall cooperate in the defense or
prosecution thereof. Such cooperation shall include the retention and (upon the Indemnifying
Party’s request) the provision to the Indemnifying Party of records and information that are
reasonably relevant to such Third Party Claim, and making employees available on a mutually
convenient basis to provide additional information and explanation of any material provided
hereunder. Whether or not the Indemnifying Party assumes the defense of a Third Party Claim, the
Indemnified Party shall not admit any liability with respect to, or settle, compromise or
discharge, such Third Party Claim without the Indemnifying Party’s prior written consent (which
consent shall not be unreasonably withheld). If the Indemnifying Party assumes the defense of a
Third Party Claim, the Indemnified Party shall agree to any settlement, compromise or discharge of
a Third Party Claim that the Indemnifying Party may recommend and that by its terms obligates the
Indemnifying Party to pay the full amount of the liability in connection with such Third Party
Claim, which releases the Indemnified Party completely in connection with such Third Party Claim
and that would not otherwise adversely affect the Indemnified Party. Notwithstanding the
foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third Party
Claim (and shall be liable for the reasonable fees and expenses of counsel incurred by the
Indemnified Party in defending such Third Party Claim) if the Third Party Claim seeks an order,
injunction or other equitable relief or relief for other than money damages against the Indemnified
Party that the Indemnified Party reasonably determines, after conferring with its outside counsel,
cannot be separated from any related Claim for money damages. If such equitable relief or other
relief portion of the Third Party Claim can be so separated from that for money damages, the
Indemnifying Party shall be entitled to assume the defense of the portion relating to money
damages.

(c) Other Claims. In the event any Indemnified Party should have a Claim against any
Indemnifying Party under Section 8.01 or Section 8.02 that does not involve a Third
Party Claim being asserted against or sought to be collected from such Indemnified Party, the
Indemnified Party shall deliver notice of such Claim with reasonable promptness to the Indemnifying
Party. If the Indemnifying Party does not notify the Indemnified Party within sixty (60) days
following its receipt of such notice that the Indemnifying Party disputes its liability to the
Indemnified Party under Section 8.01 or Section 8.02, such Claim specified by the
Indemnified Party in such notice shall be conclusively deemed a liability of the Indemnifying Party
under Section 8.01 or Section 8.02 and the Indemnifying Party shall pay the amount
of such liability to the Indemnified Party on demand or, in the case of any notice in which the
amount of the Claim (or any portion thereof) is estimated, on such later date when the amount of
such Claim (or such portion thereof) becomes finally determined.

(d) Mitigation. Each party shall take all commercially reasonable steps to mitigate
any of its Losses (including, to the extent consistent with sound business judgment, incurring
costs only to the minimum extent necessary to remedy the breach which gives rise to the Losses)
upon becoming aware of any event which would reasonably be expected to, or does, give rise thereto.
Purchaser and Seller shall cooperate with each other with respect to resolving any Claim or
liability with respect to which one party is obligated to indemnify the other party hereunder,
including by making Commercially Reasonable Efforts to mitigate or resolve any such Claim or
liability; provided, however, that such party shall not be required to make such efforts if they
would be detrimental in any material respect to such party. In the event that Purchaser or Seller
shall fail to make Commercially Reasonable Efforts to mitigate or resolve any Claim or liability,
then (unless the proviso to the foregoing sentence shall be applicable) notwithstanding anything
else to the contrary contained herein, the other party shall not be required to indemnify any
Person for any Loss that would reasonably be expected to have been avoided if Purchaser, on the one
hand, or Seller, on the other hand, as the case may be, had made such efforts.

SECTION 8.06 Impact of Knowledge. The rights of any Purchaser Indemnitee or Seller
Indemnitee to indemnification pursuant to this Article VIII will not be adversely affected
solely due to any investigation conducted or knowledge possessed or acquired at any time by such
Purchaser Indemnitee with respect to the accuracy of any representation or warranty, or performance
of or compliance with any covenant or agreement contained or referred to herein, other than to the
extent of express disclosures contained in the Disclosure4 Schedule. The waiver of any
condition to Closing contained in this Agreement or in any Ancillary Agreement in connection with
the breach of any such representation or warranty, or in connection with the failure to perform or
comply with any such covenant or agreement, will not adversely affect the right of any Purchaser
Indemnitee or Seller Indemnitee to indemnification pursuant to this Article VIII based on
such breach of representation or warranty, or such failure to perform such covenant or agreement.

SECTION 8.07 Tax Matters.

(a) For this Agreement, in the case of any taxable period that includes (but does not end on)
the Closing Date (a “Straddle Period”), the amount of any Taxes based on or measured by
income or receipts of the Acquired Companies for the portion of such a Tax period ending on the
Closing Date shall be determined based on an interim closing of the books as of the close of
business on the Closing Date (and for such purposes, the taxable period of any pass-through entity
in which the Company or any of the other Acquired Companies holds a beneficial interest shall be
deemed to terminate at such time) and the amount of other Taxes of the Acquired Companies for a
Straddle Period that relates to the portion of such a Tax period ending on the Closing Date shall
be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the
numerator of which is the number of days in the taxable period ending on the Closing Date and the
denominator of which is the number of days in such Straddle Period.

(b) Seller shall pay all transfer, documentary, sales, use, stamp and other such Taxes arising
out of or in connection with the transactions effected pursuant to this Agreement, and shall
indemnify, defend and hold harmless Purchaser, and the Acquired Companies with respect to such
Taxes. Seller shall file all necessary documentation and Tax returns with respect to such Taxes.

SECTION 8.08 No Circular Recovery. Seller hereby agrees that it will not make any
claim for indemnification against Purchaser or any Acquired Company by reason of the fact that
Seller was a controlling person, director, employee or Representative of an Acquired Company or was
serving as such for another Person at the request of Purchaser or an Acquired Company (whether such
claim is for Losses of any kind or otherwise and whether such claim is pursuant to any statute,
Organizational Document, Contractual Obligation or otherwise) with respect to any claim brought by
a Purchaser Indemnitee against Seller relating to this Agreement or any of the Contemplated
Transactions. With respect to any claim brought by a Purchaser Indemnitee against Seller relating
to this Agreement and any of the Contemplated Transactions, Seller expressly waives any right of
subrogation, contribution, advancement, indemnification or other claim against any Acquired Company
with respect to any amounts owed by Seller pursuant to this Article VIII.

SECTION 8.09 Indemnity Escrow. For as long as there are funds in the account
maintained under the Escrow Agreement, any and all amounts payable by Seller as Indemnifying Party
to a Purchaser Indemnitee will be claimed first to the extent of such account established pursuant
to the Escrow Agreement, and thereafter by Seller in accordance with payment instructions provided
by Purchaser. The existence of the escrowed funds under the Escrow Agreement will not be deemed to
limit the amount of any allowable claims by any Purchaser Indemnitee pursuant to this Agreement for
Losses in excess of the amount of such escrowed funds.

SECTION 8.10 Remedies Cumulative. Subject to Section 8.01(f), the rights of
each Purchaser Indemnitee and Seller Indemnitee under this Article VIII are cumulative, and
each Purchaser Indemnitee and Seller Indemnitee, as the case may be, will have the right in any
particular circumstance, in its sole discretion, to enforce any provision of this Article
VIII without regard to the availability of a remedy under any other provision of this
Article VIII.

ARTICLE IX

General Provisions

SECTION 9.01 Succession and Assignment; No Third-Party Beneficiary. Subject to the
immediately following sentence, this Agreement will be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, each of which such successors
and permitted assigns will be deemed to be a party hereto for all purposes hereof. No party may
assign, delegate or otherwise transfer either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other parties; provided,
however, that Purchaser may (a) assign any or all of its rights and interests hereunder to
one or more of its Affiliates or to any provider of the Debt Financing and  (b) designate one or
more of its Affiliates to perform its obligations hereunder, in each case, so long as Purchaser is
not relieved of any Liability hereunder. Except as expressly provided herein, this Agreement is
for the sole benefit of the parties and their permitted successors and assignees and nothing herein
expressed or implied will give or be construed to give any Person, other than the parties and such
successors and assignees, any legal or equitable rights hereunder.

SECTION 9.02 Amendments and Waivers. No amendment or waiver of any provision of this
Agreement will be valid and binding unless it is in writing and signed, in the case of an
amendment, by Purchaser, the Company and Seller, or in the case of a waiver, by the party against
whom the waiver is to be effective. No waiver by any party of any breach or violation or, default
under or inaccuracy in any representation, warranty or covenant hereunder, whether intentional or
not, will be deemed to extend to any prior or subsequent breach, violation, default of, or
inaccuracy in, any such representation, warranty or covenant hereunder or affect in any way any
rights arising by virtue of any prior or subsequent such occurrence. No delay or omission on the
part of any party in exercising any right, power or remedy under this Agreement will operate as a
waiver thereof.

SECTION 9.03 Attorney Fees. A party in breach of this Agreement shall, on demand,
indemnify and hold harmless the other party for and against all reasonable out-of-pocket expenses,
including legal fees, incurred by such other party by reason of the enforcement and protection of
its rights under this Agreement. The payment of such expenses is in addition to any other relief
to which such other party may be entitled.

SECTION 9.04 Notices. All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be delivered by hand or sent by facsimile or sent,
postage prepaid, by registered, certified or express mail or overnight courier service and shall be
deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one
Business Day in the case of express mail or overnight courier service), as follows:

(i) if to Purchaser, or after Closing, to the Company,

	 	 	 	 	 
	Xtralis Pty Ltd.
	 	 	 	 
	96 Ricketts Road, Mount Waverley

	VIC 3149, Australia
Fax: ++61 3 9936 7201
Attention: James Berry
	 	 	 	 
	with a copy, which shall not constitute notice, to:

	Baker & McKenzie CVBA
149 Avenue Louise
1050 Brussels, Belgium
Fax: ++32 2 639 36 99
Attention: Dominique Maes
and
Ropes and Gray, LLP
1211 Avenue of the Americas
New York, NY 10036-8704
Attention: Sanford B. Kaynor
(ii)
	 	if to Seller,

The Allied Defense Group

8000 Towers Crescent Drive (Suite 260)

Vienna, Virginia 22182, U.S.A.

Fax: ++1 703-847-5334

Attention: John J. Marcello & Deborah F. Ricci

with a copy, which shall not constitute notice, to:

Seyfarth Shaw LLP

Boulevard du Souverain 280

B-1160 Brussels, Belgium

Fax : ++32 2 640 70 71

Attention: Mielle C. Nichols, Esq.

SECTION 9.05 Interpretation; Annexes, Exhibits and Schedules. The headings contained
in this Agreement, in any Annex, Exhibit or Schedule hereto and in the table of contents to this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Any matter set forth in any provision, subprovision, section or
subsection of any Schedule shall not, unless the context otherwise manifestly requires, be deemed
set forth for all purposes of the Schedules. All Annexes, Exhibits and Schedules annexed hereto or
referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in
full herein. Any capitalized terms used in any Annex, Exhibit or Schedule but not otherwise
defined therein, shall have the meaning as defined in this Agreement. When a reference is made in
this Agreement to a Section, Annex, Exhibit or Schedule, such reference shall be to a Section of,
or an Annex, Exhibit or Schedule to, this Agreement unless otherwise indicated. The inclusion of
any information (including monetary amounts) in any Schedule shall not be deemed to be an admission
or acknowledgement by the Company or Seller that such information is required to be listed on such
Schedule or is material to or outside the ordinary course of the business of the Company. In the
event a subject matter is addressed in more than one representation and warranty, Purchaser shall
be entitled to rely only on the most specific representation and warranty addressing such matter.
Seller and Purchaser agree that no claim that a Material Adverse Effect has occurred or would
reasonably be expected to occur (or similar formulation thereof) may be made with respect to the
matters disclosed in any Schedule and that such disclosed matters shall not be a Material Adverse
Effect or matters which would reasonably be expected to have a Material Adverse Effect. Any matter
set forth in any Schedule shall also be deemed disclosed with respect to any other Schedule to
which the matter reasonably relates to the extent that the relevance of such item to such other
representations or warranties is reasonably apparent on its face. In addition, matters reflected
in the Schedules are not necessarily limited to matters required by this Agreement to be reflected
in the Schedules. Such additional matters are set forth for informational purposes only and do not
necessarily include other matters of a similar nature. The information contained in this
Agreement, the Annexes, the Schedules and Exhibits is disclosed solely for purposes of this
Agreement, and no information contained herein or therein shall be deemed to be an admission by any
party hereto to any third party of any nature whatsoever (including, without limitation, any
violation of any Legal Requirement or breach of Contract). Any cost estimates, projections or
other forward-looking statements contained or referred to in this Agreement or in the Annexes,
Schedules and Exhibits hereto or in any materials that have been provided to Purchaser by the
Company or Seller are not and shall not be deemed to be representations or warranties of the
Company or Seller. The words “include,” “includes” and “including” are deemed to be followed by
the phrase “without limitation.” Any reference to the masculine, feminine or neuter gender shall
include such other genders and any reference to the singular or plural shall include the other, in
each case unless the context otherwise requires. The provisions of this Agreement shall be
construed according to their fair meaning and neither for nor against any party hereto irrespective
of which party caused such provisions to be drafted. Each of the parties acknowledges that it has
been represented by counsel in connection with the preparation and execution of this Agreement.

SECTION 9.06 Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may be executed on signature pages exchanged by facsimile or by
electronic mail, in which event each party shall promptly deliver to the others such number of
original executed copies as the others may reasonably request.

SECTION 9.07 Entire Agreement. This Agreement, together with the other Ancillary
Agreements and the Confidentiality Agreement, along with the Annexes, Schedules and Exhibits
thereto, contain the entire agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersede all prior agreements and understandings relating to such
subject matter.

SECTION 9.08 Severability. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to any Person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision to any other Persons
or circumstances.

SECTION 9.09 Governing Law. This Agreement, the rights of the parties and all Actions
arising in whole or in part under or in connection herewith, will be governed by and construed in
accordance with the domestic substantive laws of the State of New York, without giving effect to
any choice or conflict of law provision or rule that would cause the application of the laws of any
other jurisdiction.

SECTION 9.10 Jurisdiction, Venue, Process and Arbitration.

(a) Jurisdiction. Subject to the provisions of Section 9.10(e), each party to
this Agreement, by its execution hereof, in connection with the enforcement of an arbitral award
contemplated by Section 9.10(e) or an Action seeking injunction of specific performance pending the
outcome of arbitration contemplated by Section 9.10(e), (a) hereby irrevocably submits to the
exclusive jurisdiction of the state courts of the State of New York or the United States District
Court located in the Southern District of the State of New York for the purpose of any Action
between the parties arising in whole or in part under or in connection with this Agreement, (b)
hereby waives to the extent not prohibited by applicable law, and agrees not to assert, by way of
motion, as a defense or otherwise, in any such Action, any claim that it is not subject personally
to the jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that any such Action brought in one of the above-named courts should be
dismissed on grounds of forum non conveniens, should be transferred or removed to any court other
than one of the above-named courts, or should be stayed by reason of the pendency of some other
proceeding in any other court other than one of the above-named courts, or that this Agreement or
the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to
commence any such Action other than before one of the above-named courts. Notwithstanding the
previous sentence a party may commence any Action in a court other than the above-named courts
solely for the purpose of enforcing an order or judgment issued by one of the above-named courts.

(b) Venue. Each party agrees that for any Action between the parties arising in whole
or in part under or in connection with this Agreement, such party bring Actions only in the Borough
of Manhattan. Each party further waives any claim and will not assert that venue should properly
lie in any other location within the selected jurisdiction.

(c) Service of Process. Each party hereby (a) consents to service of process in any
Action between the parties arising in whole or in part under or in connection with this Agreement
in any manner permitted by New York law, (b) agrees that service of process made in accordance with
clause (a) or made by registered or certified mail, return receipt requested, at its address
specified pursuant to Section 9.4, will constitute good and valid service of process in any
such Action and (c) waives and agrees not to assert (by way of motion, as a defense, or otherwise)
in any such Action any claim that service of process made in accordance with clause (a) or (b) does
not constitute good and valid service of process.

(d) Specific Performance. Each of the parties acknowledges and agrees that the other
parties would be damaged irreparably in the event any of the provisions of this Agreement are not
performed in accordance with their specific terms or otherwise are breached or violated.
Accordingly, each of the parties agrees that, without posting bond or other undertaking, the other
parties will be entitled to an injunction or injunctions to prevent breaches or violations of the
provisions of this Agreement and to enforce specifically this Agreement and the terms and
provisions hereof in any Action instituted in any court of the United States or any state thereof
having jurisdiction over the parties and the matter in addition to any other remedy to which it may
be entitled, at law or in equity. Each party further agrees that, in the event of any action for
specific performance in respect of such breach or violation, it will not assert that the defense
that a remedy at law would be adequate.

(e) Arbitration. Any dispute arising out of or in connection with this Agreement,
including any question regarding its existence, validity or termination, shall be referred to and
finally resolved by binding arbitration under the Rules of Arbitration of the International Chamber
of Commerce, which said Rules are deemed to be incorporated by reference into this clause;
provided, however, any dispute in connection with a Dispute Notice pursuant to
Section 1.06 shall be resolved as set forth in Section 1.06. The arbitration panel
shall consist of three members appointed in accordance with the said Rules. The language to be
used in the arbitral proceeding shall be English and all arbitral proceedings shall be conducted in
Paris, France. Each party shall bear its own costs associated with the arbitration of any
dispute, and all fees and other costs of the arbitration proceeding shall be shared equally between
the parties. Nothing in this arbitration clause shall prevent either party from seeking a
pre-award attachment of assets or preliminary relief to enforce Intellectual Property rights or
confidentiality obligations under Article V of this Agreement, in a court of competent
jurisdiction prior to an award on the merits by the arbitration panel.

SECTION 9.11 Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN
PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE
PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE
OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS
RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY
OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A
JUDGE SITTING WITHOUT A JURY.

[Remainder of page left intentionally blank]

5

IN WITNESS WHEREOF, the Purchaser, and Seller have duly executed this Stock Purchase Agreement
as of the date first written above.

PURCHASER:

VING HOLDINGS (BELGIUM) BVBA IN INCORPORATION (“IN
OPRICHTING”)

By /s/ David Lloyd

	 	 	Ving Holdings (Hong Kong) Limited,

represented by Mr. David Lloyd, authorized
signatory

SELLER:

ARC EUROPE SA

By /s/ John J. Marcello

Name: John J. Marcello

Title: Managing Director

6

Annex I

“Accounting Firm” is defined at Section 1.06(e).

“Acquired Company Claims” is defined at Section 5.14.

“Acquired Company Liabilities” is defined at Section 5.14.

“Acquisition” is defined at Section 1.02.

“Action” means any claim, action, cause of action or suit (whether in contract or tort
or otherwise), litigation (whether at law or in equity, whether civil or criminal), controversy,
assessment, arbitration, investigation, hearing, complaint, demand or proceeding to, from, by or
before any Governmental Entity (including intellectual property proceedings — e.g., opposition,
interference, cancellation, concurrent use and re-examination proceedings, but excluding any
pre-grant ex parte proceedings directed to the preparation or prosecution of any patent or
registered trademark right).

“Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with such
specified Person. For purposes of the foregoing, a Person shall be deemed to control a specified
Person if such Person possesses, directly or indirectly, the power to direct or cause the direction
of the management and policies of such specified Person.

“Agreement” is defined in the preamble to this Agreement.

“Ancillary Agreements” means the Escrow Agreement and the Guaranty Agreement.

“Articles of Association” is defined at Section 2.01(a).

“Assets” is defined in Section 2.10(a).

“Audited Financials” is defined in Section 2.07(a)(i).

“Base Purchase Price” is defined at Section 1.02.

“Basket” is defined at Section 8.01(c)(i).

“Business” means the businesses conducted by the Acquired Companies and proposed to be
conducted by the Acquired Companies as of the date hereof and as described in the “VSK Group
Confidential Information Memorandum, dated June 2007”.

“Business Day” means any day that is (a) not a Saturday or Sunday or (b) a public
holiday in accordance with Belgian law .

“Cash” means cash and cash equivalents (including marketable securities) of the
Acquired Companies including (to the extent such deposits actually clear) all deposits made in the
bank accounts of the Acquired Companies but not yet credited to the accounts of the Acquired
Companies as of 11:59 p.m. (Brussels time) on the day immediately preceding the Closing Date but
excluding (a) any amounts subject to outstanding but unpaid checks that have been written by the
Acquired Companies but not been yet debited to the accounts of the Acquired Companies as of the
time of determination (provided that the amounts of such outstanding but unpaid checks have been
deducted from accounts payable for purposes of calculating Trade Working Capital). Without
limiting the generality or effect of the foregoing, Cash will include the following categories:
reported cash and cash equivalents as listed on Exhibit 1.06(a).

“Claim” means any action, cause of action, suit, motion, debt, due, sum of money,
account, reckoning, bond, bill, liability, specialty, covenant, contract, controversy, agreement,
promise, variance, trespass, damage, judgment, extent, execution, claim or demand.

“Closing” is defined at Section 1.03.

“Closing Balance Sheet” is defined at Section 1.06(c).

“Closing Cash Amount” means the amount of Cash of the Acquired Companies as of 11:59
p.m. (Brussels time) on the day immediately preceding the Closing Date.

“Closing Date” is defined at Section 1.03.

“Closing Debt Amount” means the amount of Debt of the Acquired Companies of the types
referred to in clauses (a) through (d) of the definition of Debt as of 11:59 p.m. (Brussels time)
on the day immediately preceding the Closing Date plus the amount of any interest, fees,
premiums or penalties that accrue on such Debt on the Closing Date. Without limiting the
generality or effect of the foregoing, Closing Debt Amount will include the following categories:
long term debt, short term portion of long term debt, provision for early retirement and non trade
current liabilities: accrued expense and deferred income as set forth on Exhibit 1.06(a).

“Commercially Reasonable Efforts” means the efforts that a commercially reasonable and
prudent Person desirous of achieving a result would use in similar circumstances to ensure that
such result is achieved as expeditiously as possible, including the incurrence of reasonable
immaterial expenditures or Liabilities by such Person.

“Company Intellectual Property” is defined at Section 2.12(d).

“Company Plan” is defined at Section 2.15(a).

“Compensation” means, with respect to any Person, all salaries, compensation,
remuneration, bonuses or benefits of any kind or character whatsoever (including issuances or
grants of Equity Interests), made directly or indirectly by an Acquired Company to such Person or
Affiliates of such Person.

“Confidentiality Agreement” is defined at Section 5.03(a).

“Consent” is defined at Section 2.03.

“Contemplated Transactions” means, collectively, the transactions contemplated by this
Agreement, including (a) the sale and purchase of the Capital Stock and (b) the execution, delivery
and performance of the Ancillary Agreements.

“Contract” means any material loan or credit agreement, note, bond, mortgage,
indenture, lease, sublease, permit, plan or other agreement, commitment or license, whether written
or oral.

“Contractual Obligations” means, with respect to any Person, any contract, agreement,
deed, mortgage, lease, sublease, license, commitment, promise, undertaking, arrangement or
understanding, whether written or oral and whether express or implied, or other document or
instrument to which or by which such Person is a party or otherwise subject or bound or to which or
by which any property, business, operation or right of such Person is subject or bound.

“Debt” means, with respect to any Person, and without duplication, all obligations
(including all obligations in respect of principal, accrued interest, penalties, fees and premiums)
of such Person (a) for borrowed money, (b) evidenced by notes, bonds, debentures or similar
Contractual Obligations, (c) for the deferred purchase price of property, goods or services (other
than trade payables or accruals incurred in the Ordinary Course of Business), (d) under capital
leases (in accordance with GAAP), (e) in respect of letters of credit and bankers’ acceptances, (f)
for Contractual Obligations relating to interest rate protection, swap agreements and collar
agreements and (g) in the nature of Guarantees of the obligations described in clauses (a) through
(f) above of any other Person.

“Debt Financing” is defined at Section 4.05.

“Senior Facilities Agreement” is defined at Section 4.05.

“Disclosure Schedule” is defined in Article II.

“Dispute Notice” is defined at Section 1.06(d).

“Dispute Submission Notice” is defined at Section 1.06(e).

“Employee Plan” means any plan, program, agreement, policy or arrangement, whether or
not reduced to writing, and whether covering a single individual or a group of individuals, that is
(a) a welfare plan, (b) a pension benefit plan, (c) a stock bonus, stock purchase, stock option,
restricted stock, stock appreciation right or similar equity-based plan or (d) any other
deferred-compensation, retirement, welfare-benefit, bonus, incentive or fringe-benefit plan,
program or arrangement.

“Encumbrance” means any charge, claim, community or other marital property interest,
condition, equitable interest, mortgage, lien, pledge, charge, license, covenant not to sue,
option, pledge, conditional sale or assignment, hypothecation, security interest, mortgage, deed of
trust, right of way, easement, encroachment, servitude, right of first offer or first refusal,
non-competition agreement, buy/sell agreement and any other restriction or covenant with respect
to, or condition governing the use, construction, voting (in the case of any security or Equity
Interest), transfer, receipt of income or exercise of any other attribute of ownership or other
restriction on transfer of title or adverse claim of whatever nature or encumbrance of any kind.

“Enforceable” means, with respect to any Contractual Obligation stated to be
enforceable by or against any Person, that such Contractual Obligation is a legal, valid and
binding obligation of such Person enforceable by or against such Person in accordance with its
terms, except to the extent that enforcement of the rights and remedies created thereby is subject
to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application
affecting the rights and remedies of creditors and to general principles of equity (regardless of
whether enforceability is considered in a proceeding in equity or at law).

“Environmental Law” means any law, regulation, or other applicable requirement
relating to (i) releases or threatened release of Hazardous Substance; (ii) pollution or protection
of employee health or safety, public health or the environment; or (iii) the manufacture, handling,
transport, use, treatment, storage, or disposal of Hazardous Substances, including all WEEE rules
and regulations compliance .

“Equity Interests” means (a) any capital stock, share, partnership or membership
interest, unit of participation or other similar interest (however designated) in any Person and
(b) any option, warrant, purchase right, conversion right, exchange rights or other Contractual
Obligation which would entitle any Person to acquire any such interest in such Person or otherwise
entitle any Person to share in the equity, profit, earnings, losses or gains of such Person
(including stock appreciation, phantom stock, profit participation or other similar rights).

“Escrow Agent” has the meaning provided in the Escrow Agreement.

“Escrow Agreement” has the meaning provided in the Escrow Agreement.

“Escrow Amount” means an amount in cash equal to €2.0 million.

“Estimated Closing Balance Sheet” is defined at Section 1.06(a).

“Estimated Closing Statement” is defined at Section 1.06(a).

“Estimated Trade Working Capital” is defined at Section 1.06(b).

“Facilities” means any buildings, plants, improvements or structures located on the
Real Property.

“Final Closing Statement” is defined at Section 1.06(c).

“Final Closing Working Capital” means the Trade Working Capital as finally determined
pursuant to Section 1.06.

“Financing Material Adverse Effect” is defined at Section 7.01(j).

“GAAP” means generally accepted accounting principles in Belgium as in effect as
specified herein or otherwise in effect from time to time and consistently applied.

“Governmental Entity” means any federal, local or foreign government or any court of
competent jurisdiction, administrative agency or commission or other governmental authority or
instrumentality, domestic or foreign.

“Government Order” means any order, writ, judgment, injunction, decree, stipulation,
ruling, determination or award entered by or with any Governmental Entity (in each such case
whether temporary, preliminary or final).

“Grossed-Up Basis” means, when used to describe the basis on which the payment of a
specified sum is to be made, a basis such that the amount of the payment, after being reduced by
the amount of all Taxes imposed on the recipient of the payment as a result of the receipt or
accrual of the payment, will equal the specified sum.

“Guarantee” means, with respect to any Person, (a) any guarantee of the payment or
performance of, or any contingent obligation in respect of, any Debt or other Liability of any
other Person, (b) any other arrangement whereby credit is extended to any obligor (other than such
Person) on the basis of any promise or undertaking of such Person (i) to pay the Debt or other
Liability of such obligor, (ii) to purchase any obligation owed by such obligor, (iii) to purchase
or lease assets under circumstances that are designed to enable such obligor to discharge one or
more of its obligations or (iv) to maintain the capital, working capital, solvency or general
financial condition of such obligor and (c) any liability as a general partner of a partnership or
as a venturer in a joint venture in respect of Debt or other obligations of such partnership or
venture.

“Hazardous Substance” is defined at Section 2.16(a).

“Indemnified Party” is defined at Section 8.05(a).

“Indemnifying Party” is defined at Section 8.05(a).

“Indemnity Cap” is defined at Section 8.01(c)(ii).

“Intellectual Property” means the entire right, title and interest in and to all
intellectual property and other proprietary rights throughout the world of every kind and nature, ,
whether existing under statute or at common law or equity, now or hereafter recognized, including
all rights and interests pertaining to or deriving from:

(a) patents, copyrights, mask work rights, industrial design rights, processes, trade
secrets, algorithms, inventions, works, proprietary data, databases, formulae, research and
development data and Software or firmware;

(b) trademarks, trade names, service marks, certification marks, collective marks,
service names, brands, trade dress and logos, and the goodwill and activities associated
therewith as well as all translations, adaptations, derivations and combinations thereof;

(c) domain names, the contents of websites, rights of privacy and publicity, moral
rights, and proprietary rights of any kind or nature, however denominated, throughout the
world in all media now known or hereafter created;

(d) any and all registrations, renewals, applications, recordings, licenses, common-law
rights and Contractual Obligations relating to any of the foregoing;

(e) inventions (whether or not reduced to practice), all improvements thereto, patent
disclosures, discoveries, innovations, know-how, ideas, concepts, technology, information,
research and development, know-how, formulas, compositions, processes, techniques, data,
designs, drawings, specifications, customer and supplier lists, advertising materials,
pricing and cost information, business and marketing plans and proposals, documentation and
manuals, Software, computer hardware, integrated circuits and integrated circuit masks,
electronic, electrical and mechanical equipment and all other forms of technology, including
improvements, modifications, works in process, derivatives or changes, whether tangible or
intangible, embodied in any form, whether or not protectable or protected by patent,
copyright, mask work right, trade secret law or otherwise, and all documents and other
materials recording any of the foregoing, and

(f) all Actions and rights to assert, defend and recover at law or in equity for any
past, present or future infringement, misappropriation, violation, unauthorized use or other
impairment of any of the foregoing, including the right to receive all proceeds and damages
therefrom, the right to recover title of any of the foregoing, and all rights to obtain
renewals, continuations, divisions or other extensions of legal protections pertaining
thereto.

“Interim Financials” is defined at Section 2.07(a)(ii).

“Leased Real Property” is defined at Section 2.11(a).

“Legal Requirement” means any federal, state or local or foreign law, statute,
standard, ordinance, code, rule, regulation, resolution or promulgation, or any Governmental Order,
or any license, franchise, permit or similar right granted under any of the foregoing, or any
similar provision having the force or effect of law. Legal Requirements will include applicable
industry standard relating to the manufacture, purchase and sale of products in the Business
including the marking of such products in accordance with such standards.

“Liability” means, with respect to any Person, any liability or obligation of such
Person whether known or unknown, whether asserted or unasserted, whether determined, determinable
or otherwise, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, whether incurred or consequential (including diminution in value), whether due or to
become due and whether or not required under GAAP to be accrued on the financial statements of such
Person.

“Licenses” is defined at Section 2.12(e).

“Losses” is defined at Section 8.01(a).

“Material Adverse Effect” means any change in, or effect on, the Business, operations,
Assets, prospects or condition (financial or otherwise) of the Acquired Companies which, when
considered either individually or in the aggregate together with all other adverse changes or
effects with respect to which such phrase is used in this Agreement, is, or is reasonably likely to
be, materially adverse to the Business, operations, Assets, prospects or condition (financial or
otherwise) of the Acquired Companies, taken as a whole, except, in each case, for any change or
effect which results from (i) a change in the global economy or in the financial markets generally,
including any change in interest rates charged by commercial banks with respect to money borrowed
by creditworthy corporate entities or a change in currency exchange rates, but only to the extent
that the effect thereof on the Acquired Companies, taken as a whole, is not disproportionately more
adverse than the effect thereof on comparable companies operating in the public security
manufacturing and services industry; (ii) any change in regulatory or economic conditions in the
public security manufacturing and services industry, but only to the extent that the effect thereof
on the Acquired Companies, taken as a whole, is not disproportionately more adverse than the effect
thereof on comparable companies operating in the public security manufacturing and services
industry; or (iii) the outbreak, or escalation from any currently prevailing level, of war or
military hostilities involving Belgium of any national emergency or similar domestic calamity,
civil insurrection or crisis, including acts of terrorism, but only to the extent the effect
thereof on the Acquired Companies, taken as a whole, is not disproportionately more adverse than
the effect thereof on comparable companies operating in the public security manufacturing and
services industry.

“Material Acquired Company Contracts” is defined at Section 2.17(b).

“Most Recent Balance Sheet” is defined at Section 2.07(a)(i).

“Most Recent Balance Sheet Date” is defined at Section 2.07(a)(i).

“New Facilities Agreement” is defined at Section 5.18(a).

“Ordinary Course of Business” means an action taken by any Person in the ordinary
course of such Person’s business that is consistent with the past customs and practices of such
Person (including past practice with respect to quantity, amount, magnitude and frequency, standard
employment and payroll policies and past practice with respect to management of Trade Working
Capital) and that is taken in the ordinary course of the normal day-to-day operations of such
Person.

“Organizational Documents” means, with respect to any Person (other than an
individual), (a) the certificate or articles of incorporation, association or organization and any
joint venture, limited liability company, operating or partnership agreement and other similar
documents adopted or filed in connection with the creation, formation or organization of such
Person and (b) all by-laws, voting agreements and similar documents, instruments or agreements
relating to the organization or governance of such Person, in each case, as amended or
supplemented.

“Owned Real Property” is defined in Section 2.11(a).

“Permits” means, with respect to any Person, any license, franchise, permit, consent,
approval, right, privilege, certificate or other similar authorization issued by, or otherwise
granted by, any Governmental Entity or any other Person to which or by which such Person is subject
or bound or to which or by which any property, business, operation or right of such Person is
subject or bound.

“Permitted Encumbrance” means (a) those liens set forth on Section 2.09(f) of the
Disclosure Schedule, (b) statutory liens for current Taxes, special assessments or other
governmental charges not yet due and payable or the amount or validity of which is being contested
in good faith by appropriate proceedings and for which appropriate reserves have been established
in accordance with GAAP, (b) mechanics’, materialmen’s, carriers’, workers’, repairers’ and similar
statutory liens arising or incurred in the Ordinary Course of Business which liens have not had and
are not reasonably likely to have a Material Adverse Effect, (c) zoning, entitlement, building and
other land use regulations imposed by Governmental Entities having jurisdiction over any Owned Real
Property which are not violated in any material respect by the current use and operation of the
Owned Real Property, (d) deposits or pledges made in connection with, or to secure payment of,
worker’s compensation, unemployment insurance, old age pension programs mandated under applicable
Legal Requirements or other social security, (e) covenants, conditions, restrictions, easements,
encumbrances and other similar matters of record affecting title to but not adversely affecting
current occupancy or use of the Owned Real Property in any material respect and (f) restrictions on
the transfer of securities arising under federal and state securities laws.

“Person” means and includes and individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or other business entity or a Governmental Entity (or any department,
agency or political subdivision thereof).

“Predecessor” means any Person that has ever merged with or into an Acquired Company,
(b) any Person a majority of whose capital stock (or similar outstanding ownership interests) or
Equity Interests has ever been acquired by an Acquired Company, and (c) any Person all or
substantially all of whose assets has ever been acquired by an Acquired Company.

“Proceedings” means any action, suit, investigation or proceeding before any
Governmental Entity, court or arbitrator.

“Proprietary Rights Agreement” is defined at Section 2.23(b).

“Purchase Price” is defined at Section 1.02.

“Purchase Price Calculation Principles” is defined at Section 1.06(a).

“Purchaser Indemnitees” is defined at Section 8.01(a).

“Real Property” is defined at Section 2.11(a).

“Real Property Leases” is defined at Section 2.11(a).

“Registered Intellectual Property” means each of the following included in the
Intellectual Property: patents, patent applications and statutory invention registrations,
registered trademarks, registered service marks, trade names, corporate names, collective marks,
certification marks, registered copyrights, domain names and the registrations of and applications
for registration of any of the foregoing.

“Representative” means, with respect to any Person, any director, officer, employee,
agent, consultant, advisor, or other representative of such Person, including legal counsel,
accountants, and financial advisors.

“Seller Indemnitees” is defined at Section 8.02(a).

“Seller Insurance Policies” is defined at Section 5.14.

“Seller’s Knowledge,” “Knowledge of Seller” and similar formulations mean that
Roger Paul (a) has actual knowledge of the fact or other matter at issue or (b) should have had
actual knowledge of such fact or other matter assuming the diligent exercise of such individual’s
duties as a director, officer or employee of Seller or the Acquired Companies or after reasonable
investigation of the employees of the Acquired Companies reasonably expected to have actual
knowledge of such fact or matter.

“Seller Transaction Expenses” shall mean all costs, fees and expenses incurred in
connection with or in anticipation of the negotiation, execution and delivery of this Agreement and
the Ancillary Agreements or the consummation of the Contemplated Transactions or in connection with
or in anticipation of any alternative transactions considered by the Company to the extent such
costs, fees and expenses are payable or reimbursable by any Acquired Company, including, (a) all
fees and expenses payable to Houlihan Lokey Howard & Zukin and all other brokerage fees,
commissions, finders’ fees or financial advisory fees so incurred, (b) the fees and expenses of
Seyfarth Shaw LLP, Claeys & Engels and all other fees and expenses of legal counsel, accountants,
consultants and other experts and advisors so incurred and (c) any fees and expenses owing to
Seller or its Affiliates under any existing management services agreement, if applicable (whether
or not arising in connection with this Agreement or the Contemplated Transactions).

“Software” means all computer software and firmware, programs and electronic
databases, in any form, including source code, object code, development tools, library functions,
compilers, Internet websites, web content and links, all versions, updates, corrections,
enhancements, replacements, and modifications thereof, and all documentation related thereto.

“Straddle Period” is defined at Section 8.07(b).

“Subsidiary” of any Person means another Person, an amount of the voting securities,
other voting ownership or voting partnership interests of which is sufficient to elect at least a
majority of its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
first Person or by another subsidiary of such first Person.

“Target Trade Working Capital” is defined at Section 1.06(b).

“Tax” or “Taxes” shall mean (i) any and all country, federal, local,
municipal, foreign and other taxes, assessments, duties or similar charges of any kind whatsoever,
including all income, corporate franchise, income, sales, use, ad valorem, receipts, value added,
profits, license, withholding, payroll, employment, social security, excise, premium, property,
customs, net worth, capitalizations, transfer, stamp, documentation, social security, alternative,
minimum, occupation, recapture and other taxes charges of any kind whatever, whether disputed or
not, including all interest, penalties and additions imposed with respect to such amounts, and all
amounts payable pursuant to any agreement or arrangement with respect to Taxes; and (ii) any
liability for the payment of any amounts of the type described in clause (i) of this definition as
a result of being a member of an affiliated, consolidated, combined or unitary group for any
period, as a result of any tax sharing or tax allocation agreement, arrangement or understanding,
or as a result of being liable for another person’s taxes as a transferee or successor, by contract
or otherwise.

“Tax Return” or “Tax Returns” means all returns, declarations of estimated tax
payments, reports, estimates, information returns and statements, including any related or
supporting information with respect to any of the foregoing, filed or to be filed with any Taxing
Authority in connection with the determination, assessment, collection or administration of any
Taxes, including any amendments thereto.

“Taxing Authority” shall mean any domestic, foreign, federal, national or municipal or
other local government, any subdivision, agency, commission or authority thereof, or any
quasi-government body exercising tax regulation authority.

“Third Party Claim” is defined at Section 8.05(a).

“Trade Working Capital” means (a) the current assets (excluding Cash and deferred Tax
assets) of the Acquired Companies as of 11:59 p.m. (Brussels time) on the day immediately preceding
the Closing Date as determined in accordance with the Purchase Price Calculation Principles
minus (b) current liabilities (excluding the current portion of Debt, all accruals relating
to Seller Transaction Expenses and all current deferred Tax liabilities) of the Acquired Companies
as of 11:59 p.m. (Brussels time) on the day immediately preceding the Closing Date. Without
limiting the generality or effect of the foregoing, Trade Working Capital will include the
following categories: inventories, trade receivables, trade payables, other receivables, deferred
expense and accrued income, taxes, remunerations and social security, current income taxes,
advances received on contracts in progress, other debt, loans to Parent and Mecar and dividends as
listed on Exhibit 1.06(a).

“Transfer Taxes” means all transfer, documentary, sales, use, stamp, registration and
other similar taxes and fees (including all interest, penalties and additions with respect
thereto).

7EX-10.1

GOLDMAN, SACHS & CO. | 85 BROAD STREET | NEW YORK, NEW YORK 10004 | TEL: 212-902-1000

Opening Transaction

	 	 	 	 	 
	 
	 	Rohm and Haas Company
	 
	 	100 Independence Mall West
	To:
	 	Philadelphia, PA 19106
	A/C:
	 	 	028702637	 
	From:
	 	Goldman, Sachs & Co.
	Re:
	 	Uncollared Accelerated Stock Buyback
	Ref. No:
	 	As provided in the Supplemental Confirmation
	Date:
	 	[September 10th, 2007]

This master confirmation (this “Master Confirmation”), dated as of [September 10th,
2007] is intended to set forth certain terms and provisions of certain Transactions (each, a
“Transaction”) entered into from time to time between Goldman, Sachs & Co. (“GS&Co.”) and Rohm and
Haas Company (“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by
either party to enter into any Transaction nor evidence of a Transaction. The additional terms of
any particular Transaction shall be set forth in a Supplemental Confirmation in the form of
Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation
and supplement, form a part of, and be subject to this Master Confirmation. This Master
Confirmation and each Supplemental Confirmation together shall constitute a “Confirmation” as
referred to in the Agreement specified below.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Master Confirmation. This Master Confirmation and each Supplemental
Confirmation evidence a complete binding agreement between Counterparty and GS&Co. as to the
subject matter and terms of each Transaction to which this Master Confirmation and such
Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral
communications with respect thereto.

This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and
are subject to an agreement in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross
Border) (the “Agreement”) as if GS&Co. and Counterparty had executed the Agreement on the date of
this Master Confirmation (but without any Schedule except for (i) the election of Loss and Second
Method, New York law (without regard to the conflicts of law principles) as the governing law and
US Dollars (“USD”) as the Termination Currency, (ii) the election that subparagraph (ii) of
Section 2(c) will not apply to the Transactions, (iii) the replacement of the word “third” in the
last line of Section 5(a)(i) with the word “first” and (iv) the election that the “Cross Default”
provisions of Section 5(a)(vi) shall apply to Counterparty and GS&Co., with a “Threshold Amount” of
USD 50 million and with an amendment of Section 5(a)(vi) to delete the phrase “, or becoming
capable at such time of being declared,” in the seventh line thereof).

The Transactions shall be the sole Transactions under the Agreement. If there exists any ISDA
Master Agreement between GS&Co. and Counterparty or any confirmation or other agreement between
GS&Co. and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between
GS&Co. and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which GS&Co. and Counterparty
are parties, the Transactions shall not be considered Transactions under, or otherwise governed by,
such existing or deemed ISDA Master Agreement.

All provisions contained or incorporated by reference in the Agreement shall govern this
Master Confirmation and each Supplemental Confirmation except as expressly modified herein or in
the related Supplemental Confirmation.

If, in relation to any Transaction to which this Master Confirmation and a Supplemental
Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation,
any Supplemental Confirmation and the Equity Definitions, the following will prevail for purposes
of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation;
(ii) this Master Confirmation; (iii) the Agreement; and (iv) the Equity Definitions.

1. Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity
Definitions. Set forth below are the terms and conditions that, together with the terms and
conditions set forth in the Supplemental Confirmation relating to any Transaction, shall govern
such Transaction.

	 	 	 
	General Terms:

	 	

	Trade Date:

Buyer:

Seller:

Shares:

Exchange:

Related Exchange(s):

Prepayment\Variable

Obligation:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.

Counterparty

GS&Co.

Common stock, par value $2.50 per share, of Counterparty (Ticker: ROH)

New York Stock Exchange

All Exchanges.

Applicable
	Prepayment Amount:

Prepayment Date:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.

For each Transaction, as set forth in the related Supplemental Confirmation.

	 	 	 	Counterparty Additional

	 	 	 	Payment Amount: For each Transaction, as set forth in the related Supplemental Confirmation.
Counterparty shall pay to GS&Co. the Counterparty Additional Payment Amount, if any, on the
Counterparty Additional Payment Date.

	 	 	 
	Counterparty Additional

Payment Date:

	 	

The Prepayment Date.

	 	 	Valuation:

	 	 	 	VWAP Price: For any Exchange Business Day, as determined by the Calculation Agent based on
the New York 10b-18 Volume Weighted Average Price per Share for the regular trading session
(including any extensions thereof) of the Exchange on such Exchange Business Day (without
regard to pre-open or after hours trading outside of such regular trading session for such
Exchange Business Day), as published by Bloomberg at 4:15 p.m. New York time (or 15 minutes
following the end of any extension of the regular trading session) on such Exchange
Business Day, on Bloomberg page “ROH.N <Equity> AQR_SEC” (or any successor thereto),
or if such price is not so reported on such Exchange Business Day for any reason, as
reasonably determined by the Calculation Agent. For purposes of calculating the VWAP
Price, the Calculation Agent will include only those trades that are reported during the
period of time during which Counterparty could purchase its own shares under Rule
10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-18(b)(3), each under
the Exchange Act (as defined herein) (such trades, “Rule 10b-18 eligible transactions”).

	 	 	 	Forward Price: The average of the VWAP Prices for the Calculation Days in the Calculation
Period, subject to “Valuation Disruption” below.

	 	 	 
	Forward Price

Adjustment Amount:

	 	

For each Transaction, as set forth in the related Supplemental Confirmation.

	 	 	 	Calculation Period: The period from and including the Calculation Period Start Date to and
including the Termination Date.

	 	 	 	Calculation Period Start Date: For each Transaction, as set forth in the related Supplemental
Confirmation.

	 	 	 	Calculation Day: An Exchange Business Day in the Calculation Period that is not a Knock-out Day.

	 	 	 	Knock-out Day: An Exchange Business Day in the Calculation Period (i) for which the VWAP Price
exceeds the Knock-out Level and (ii) which is not a Disrupted Day in full; provided,
however, that there may be no more than the Maximum Knock-out Number of Knock-out Days in
the Calculation Period and, accordingly, once the Maximum Knock-out Number is reached, no
more Exchange Business Days in the Calculation Period shall be Knock-out Days.

	 	 	 
	Knock-out Level:

Maximum

Knock-out Number:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.

For each Transaction, as set forth in the related Supplemental Confirmation.

	 	 	 	Termination Date: The Scheduled Termination Date; provided that GS&Co. shall have the right to
designate any Exchange Business Day on or after the First Acceleration Date to be the
Termination Date (the “Accelerated Termination Date”) by delivering notice to Counterparty
of such designation prior to 11:59 p.m. New York City time on such Exchange Business Day.

	 	 	 	Scheduled Termination Date: For each Transaction, as set forth in the related Supplemental
Confirmation, subject to postponement as provided in “Valuation Disruption” below and as
postponed by one Scheduled Trading Day for each Knock-out Day.

	 	 	 	First Acceleration Date: For each Transaction, as set forth in the related Supplemental
Confirmation.

	 	 	 	Valuation Disruption: The definition of “Market Disruption Event” in Section 6.3(a) of the
Equity Definitions is hereby amended by deleting the words “at any time during the one-hour
period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation
Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time
on any Exchange Business Day during the Calculation Period or Settlement Valuation Period”
after the word “material,” in the third line thereof.

Section 6.3(d) of the Equity Definitions is hereby amended by
deleting the remainder of the provision following the term “Scheduled
Closing Time” in the fourth line thereof.

Notwithstanding anything to the contrary in the Equity Definitions,
to the extent that a Disrupted Day occurs (i) in the Calculation
Period, the Calculation Agent may, in its good faith and commercially
reasonable discretion, postpone the Scheduled Termination Date by no
more than such number of Disrupted Days, or (ii) in the Settlement
Valuation Period, the Calculation Agent may extend the Settlement
Valuation Period by no more than such number of Disrupted Days. If
any such Disrupted Day is a Disrupted Day because of a Market
Disruption Event (or a deemed Market Disruption Event as provided
herein), the Calculation Agent shall determine whether (i) such
Disrupted Day is a Disrupted Day in full, in which case the VWAP
Price for such Disrupted Day shall not be included for purposes of
determining the Forward Price or the Settlement Price, as the case
may be, or (ii) such Disrupted Day is a Disrupted Day only in part,
in which case the VWAP Price for such Disrupted Day shall be
determined by the Calculation Agent based on Rule 10b-18 eligible
transactions in the Shares on such Disrupted Day effected before the
relevant Market Disruption Event occurred and/or after the relevant
Market Disruption Event ended, and the weighting of the VWAP Price
for the relevant Exchange Business Days during the Calculation Period
or the Settlement Valuation Period, as the case may be, shall be
adjusted in a commercially reasonable manner by the Calculation Agent
for purposes of determining the Forward Price or the Settlement
Price, as the case may be, with such adjustments based on, among
other factors, the duration of any Market Disruption Event and the
volume, historical trading patterns and price of the Shares.

If a Disrupted Day occurs during the Calculation Period or the
Settlement Valuation Period, as the case may be, and each of the nine
immediately following Scheduled Trading Days is a Disrupted Day, then
the Calculation Agent, in its good faith and commercially reasonable
discretion, may deem such ninth Scheduled Trading Day to be an
Exchange Business Day that is not a Disrupted Day and determine the
VWAP Price for such ninth Scheduled Trading Day using its good faith
estimate of the value of the Shares on such ninth Scheduled Trading
Day based on the volume, historical trading patterns and price of the
Shares and such other factors as it deems appropriate.

	 	 	Settlement Terms:

	 	 	 	Settlement Procedures: If the Number of Shares to be Delivered is positive, Physical Settlement
shall be applicable. If the Number of Shares to be Delivered is negative, then the
Counterparty Settlement Provisions in Annex A shall apply.

	 	 	 	Physical Settlement: Applicable to GS&Co.; provided that GS&Co. does not, and shall not, make
the agreement or the representations set forth in Section 9.11 of the Equity Definitions
related to the restrictions imposed by applicable securities laws with respect to any
Shares delivered by GS&Co. to Counterparty under any Transaction.

	 	 	 	Number of Shares

	 	 	 	to be Delivered: A number of Shares equal to (x)(a) the Prepayment Amount divided by
(b)(i) the Forward Price minus (ii) the Forward Price Adjustment Amount minus (y) the
number of Initial Shares.

	 	 	 	Excess Dividend Amount: For the avoidance of doubt, all references to the Excess Dividend Amount
shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

	 	 	 	Settlement Date: The date that is one Settlement Cycle immediately following the Termination
Date.

	 	 	 	Settlement Currency: USD

	 	 	 	Initial Share Delivery: GS&Co. shall deliver a number of Shares equal to the Initial Shares to
Counterparty on the Initial Share Delivery Date in accordance with Section 9.4 of the
Equity Definitions, with the Initial Share Delivery Date deemed to be a “Settlement Date”
for purposes of such Section 9.4.

	 	 	 
	Initial Share Delivery Date:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	Initial Shares:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.

Share Adjustments:

	 	 	 	Potential Adjustment Event: Notwithstanding anything to the contrary in Section 11.2(e) of the
Equity Definitions, (i) an Extraordinary Dividend shall not constitute a Potential
Adjustment Event and (ii) Section 11.2(e)(v) of the Equity Definitions is hereby amended by
inserting “(other than at or below current market value and other than pursuant to any
Transaction under this Master Confirmation)” after the word “Issuer.”

It shall constitute an additional Potential Adjustment Event if the
Scheduled Termination Date for any Transaction is postponed pursuant
to “Valuation Disruption” above to the extent that such postponement
would cause GS&Co. to incur increased costs to hedge such
Transaction, in which case the Calculation Agent may, in its
commercially reasonable discretion, adjust any relevant terms of such
Transaction as necessary to preserve as nearly as practicable the
fair value of such Transaction to GS&Co. prior to such postponement.

	 	 	 	Extraordinary Dividend: For any calendar quarter occurring (in whole or in part) during the
period from and including the Calculation Period Start Date to and including the
Termination Date, any dividend or distribution on the Shares with an ex-dividend date
occurring during such calendar quarter (other than any dividend or distribution of the type
described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) or (B) of the Equity Definitions)
(a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when
aggregated with the amount or value (as determined by the Calculation Agent) of any and all
previous Dividends with ex-dividend dates occurring in the same calendar quarter, exceeds
the Ordinary Dividend Amount.

	 	 	 
	Ordinary Dividend Amount:For each Transaction, as set forth in the related Supplemental Confirmation

	Method of Adjustment:Calculation Agent Adjustment

Extraordinary Events:

	 	

	Consequences of

Merger Events:

	 	

	(a)Share-for-Share: Modified Calculation Agent Adjustment

	(b)Share-for-Other:

(c)Share-for-Combined:

Determining Party:

	 	Cancellation and Payment

Component Adjustment

GS&Co.

Tender Offer: Applicable; provided that Sections 12.3(a) and 12.3(d)
of the Equity Definitions shall each be amended by replacing each
occurrence of the words “Tender Offer Date” by “Announcement Date”
and Section 12.1(l)(ii) of the Equity Definitions shall be amended by
replacing the words “that leads to the Tender Offer” by “that, if
consummated, would lead to a Tender Offer.”

Consequences of

Tender Offers:

	 	 	 
	(a)

(b)Share-for-Other:

(c)Share-for-Combined:

Determining Party:

	 	Share-for-Share:Modified Calculation Agent Adjustment.

Modified Calculation Agent Adjustment.

Modified Calculation Agent Adjustment.

GS&Co.

provided that, without limiting the generality of clause (ii) of Section
12.3(d) of the Equity Definitions, if, for any of clauses (a) through (c)
above, GS&Co. concludes, in its sole discretion, (i) that it is appropriate
with respect to any legal, regulatory or self-regulatory requirements or
related policies and procedures (whether or not such requirements, policies
or procedures are imposed by law or have been voluntarily adopted generally
by GS&Co.) to cancel any Transaction or (ii) based on advice of counsel, that
it is no longer advisable to hedge any Transaction in the manner contemplated
on the Trade Date for such Transaction, then, in each case, Cancellation and
Payment, shall apply to such Transaction.

	 	 	 	Nationalization,

	 	 	 	Insolvency or Delisting: Cancellation and Payment; provided that in addition to the provisions
of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if
the Exchange is located in the United States and the Shares are not immediately re-listed,
re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange,
The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such
exchange or quotation system, such exchange or quotation system shall be deemed to be the
Exchange.

Additional Disruption Events:

	 	(a)	 	Change in Law: Applicable, except that clause (Y) of Section 12.9(a)(ii) of the
Equity Definitions shall be deleted.

	 	 	 	 	 
	(b)

(c)

	 	Failure to Deliver:

Insolvency Filing:
	 	Applicable

Applicable

	 	(d)	 	Loss of Stock Borrow: Applicable; provided that Sections 12.9(a)(vii) and
12.9(b)(iv) of the Equity Definitions shall be amended by deleting the words “at a rate
equal to or less than the Maximum Stock Loan Rate” and replacing them with “at a rate
of return on the cash collateral for the relevant stock borrow (which, for the
avoidance of doubt, is expected to be stated as a floating rate minus a spread
representing stock borrow costs) equal to or greater than zero”.

	 	 	 
	Hedging Party:GS&Co.

Determining Party:GS&Co.

	 	

	Additional Termination Event(s):Notwithstanding anything to

	the contrary in the Equity Definitions, if, as a result of

	an Extraordinary Event, any Transaction would be cancelled

	or terminated (whether in whole or in part) pursuant to

	Article 12 of the Equity Definitions, an Additional

	Termination Event (with such terminated Transaction(s) (or

	portions thereof) being the Affected Transaction(s) and

	Counterparty being the sole Affected Party and the Early

	Termination Date being the date on which such Transaction(s)

	would be cancelled or terminated pursuant to Article 12 of

	the Equity Definitions) shall be deemed to occur, and, in

	lieu of Sections 12.7, 12.8 and 12.9 of the Equity

	 	

	Definitions, Section 6 of the Agreement shall apply to such

	Affected Transaction(s).

	 	

	The declaration by the Issuer of any Extraordinary Dividend,

	the ex-dividend date for which occurs or is scheduled to

	occur during the Calculation Period, will constitute an

	Additional Termination Event, with Counterparty as the sole

	Affected Party and all Transactions hereunder as the

	Affected Transactions.

Non-Reliance/Agreements and

Acknowledgements Regarding

Hedging Activities/Additional

Acknowledgements:

	 	

Applicable

	 	 	 	Transfer: Notwithstanding anything to the contrary in the Agreement, GS&Co. may assign,
transfer and set over all rights, title and interest, powers, privileges and remedies
of GS&Co. under any Transaction, in whole or in part, to an affiliate of GS&Co. whose
obligations are guaranteed by The Goldman Sachs Group, Inc. without the consent of
Counterparty; provided that Counterparty will not, as a result of such transfer, be
required to (i) pay to the transferee an amount greater than the amount that it would
have been required to pay to GS&Co. in the absence of such transfer and (ii) receive
from the transferee an amount less than the amount that Counterparty would have
received from GS&Co. in the absence of such transfer.

	 	 	 	 	 
	GS&Co. Payment Instructions:	 	 Chase Manhattan Bank New York
	 	 	For A/C Goldman, Sachs & Co.
	
 
	 	A/C #930-1-011483

ABA: 021-000021
	 	

	Counterparty’s Contact Details

	 	

	 	

	for Purpose of Giving Notice:	 	To be provided by Counterparty
	GS&Co.’s Contact Details for

Purpose of Giving Notice:

	 	

Telephone No.:

Facsimile No.:
	 	

(212) 902-8996

(212) 902-0112

Attention: Equity Operations: Options and
Derivatives

	 	 	 	 	 	 	 	 	 
	
 
	 	 	 	 	 	With a copy to:
	 	

	
 
	 	 	 	 	 	Tracey McCabe
	 	

	 	 	 	 	 	 	Equity Capital Markets
	 	 	 	 	 	 	One New York Plaza
	 	 	 	 	 	 	New York, NY 10004
	2.

	 	Calculation Agent.
	 	GS&Co.
	 	Telephone No.:

Facsimile No.:

	 	(212) 357-0428

(212) 902-3000

3. Additional Mutual Representations, Warranties and Covenants of Each Party. In addition
to the representations, warranties and covenants in the Agreement, each party represents, warrants
and covenants to the other party that:

(a) Eligible Contract Participant. It is an “eligible contract participant”, as
defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction
hereunder as principal and not for the benefit of any third party.

(b) Accredited Investor. Each party acknowledges that the offer and sale of each
Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, each party
represents and warrants to the other that (i) it has the financial ability to bear the economic
risk of its investment in each Transaction and is able to bear a total loss of its investment,
(ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities
Act and (iii) the disposition of each Transaction is restricted under this Master Confirmation, the
Securities Act and state securities laws.

4. Additional Representations, Warranties and Covenants of Counterparty. In addition to
the representations, warranties and covenants in the Agreement, Counterparty represents, warrants
and covenants to GS&Co. that:

(a) The purchase or writing of each Transaction and the transactions contemplated hereby will
not violate Rule 13e-1 or Rule 13e-4 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”).

(b) It is not entering into any Transaction (i) on the basis of, and is not aware of, any
material non-public information with respect to the Shares, (ii) in anticipation of, in connection
with, or to facilitate, a distribution of its securities, a self tender offer or a third-party
tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares) for the
purpose of inducing the purchase or sale of such securities by others.

(c) Each Transaction is being entered into pursuant to a publicly disclosed Share buy-back
program and its Board of Directors has approved the use of derivatives to effect the Share buy-back
program.

(d) Without limiting the generality of Section 13.1 of the Equity Definitions, it acknowledges
that neither GS&Co. nor any of its affiliates is making any representations or warranties or taking
any position or expressing any view with respect to the treatment of any Transaction under any
accounting standards including FASB Statements 128, 133 as amended, or 149, 150, EITF 00-19, 01-6
or EITF 03-6 (or any successor issue statements) or under the Financial Accounting Standards
Board’s Liabilities & Equity Project.

(e) As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder,
Counterparty is in compliance with its reporting obligations under the Exchange Act and it is not
aware of any information that would result in it being required then or in the future to restate or
amend any of its filings made pursuant to such reporting obligations.

(f) Counterparty is aware of its reporting obligations under Regulation S-K and/or Regulation
S-B under the Exchange Act, as applicable.

(g) The shares are not, and Counterparty will not cause the Shares to be, subject to a
“restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time
during any Regulation M Period (as defined below) for any Transaction unless Counterparty has
provided written notice to GS&Co. of such restricted period not later than the Scheduled Trading
Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that
any such notice may cause a Disrupted Day to occur pursuant to Section 5 below; accordingly,
Counterparty acknowledges that its delivery of such notice must comply with the standards set forth
in Section 6 below; “Regulation M Period” means, for any Transaction, the period commencing on the
Calculation Period Start Date for such Transaction and ending on the last day of the Relevant
Period (as defined below) for such Transaction, or such earlier day as elected by GS&Co. and
communicated to Counterparty on such day. “Relevant Period” means, for any Transaction, the period
commencing on the Calculation Period Start Date for such Transaction and ending on the earlier of
(i) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for
such Transaction (or, if later, the First Acceleration Date without regard to any acceleration
thereof pursuant to “Special Provisions Relating to Friendly Transaction Announcements” below) and
(ii) the Scheduled Termination Date for such Transaction.

(h) As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Settlement
Date and the date of any Second Settlement for each Transaction, Counterparty is not “insolvent”
(as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United
States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares
with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of
Counterparty’s incorporation.

(i) Counterparty is not and, after giving effect to any Transaction, will not be, required to
register as an “investment company” as such term is defined in the Investment Company Act of 1940,
as amended.

(j) Counterparty has not and, during the Relevant Period or, if applicable, the Settlement
Valuation Period for any Transaction, will not enter into agreements similar to the Transactions
described herein where any initial hedge period, calculation period, relevant period or settlement
valuation period (each however defined) in such other transaction overlaps or is reasonably likely
to overlap at any time with any Relevant Period or, if applicable, any Settlement Valuation Period
under this Master Confirmation. In the event that the initial hedge period, relevant period,
calculation period or settlement valuation period in any other similar transaction overlaps with
any Relevant Period or, if applicable, Settlement Valuation Period under this Master Confirmation
as a result of any postponement of the Termination Date or extension of the Settlement Valuation
Period pursuant to “Valuation Disruption” above, Counterparty shall use reasonable efforts to amend
such transaction to avoid any such overlap.

5. Regulatory Disruption. In the event that GS&Co. concludes, in its sole discretion, that
it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures are imposed by
law or have been voluntarily adopted by GS&Co.), for it to refrain from purchasing Shares on any
Scheduled Trading Day during the Calculation Period or, if applicable, the Settlement Valuation
Period, GS&Co. may by written notice to Counterparty elect to deem that a Market Disruption Event
has occurred on such Scheduled Trading Day. The notice shall not specify, and GS&Co. shall not
otherwise communicate to Counterparty, the reason for GS&Co.’s election.

6. 10b5-1 Plan. Counterparty represents, warrants and covenants to GS&Co. that:

(a) Counterparty is entering into this Master Confirmation and each Transaction hereunder in
good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the
Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal
or applicable state securities laws and it has not entered into or altered and will not enter into
or alter any corresponding or hedging transaction or position with respect to the Shares.
Counterparty acknowledges that it is the intent of the parties that each Transaction entered into
under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of
Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted
to comply with the requirements of Rule 10b5-1(c).

(b) Counterparty will not seek to control or influence GS&Co.’s decision to make any
“purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction
entered into under this Master Confirmation, including, without limitation, GS&Co.’s decision to
enter into any hedging transactions. Counterparty represents and warrants that it has consulted
with its own advisors as to the legal aspects of its adoption and implementation of this Master
Confirmation and each Supplemental Confirmation under Rule 10b5-1.

(c) Counterparty acknowledges and agrees that any amendment, modification or waiver of this
Master Confirmation or the relevant Supplemental Confirmation must be effected in accordance with
the requirements for the amendment of a “plan” within the meaning of Rule 10b5-1(c). Without
limiting the generality of the foregoing, any such amendment, modification or waiver shall be made
in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no
such amendment, modification or waiver shall be made at any time at which Counterparty or any
officer, director, manager or similar person of Counterparty is aware of any material non-public
information regarding Counterparty or the Shares.

7. Purchases.

(a) Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange
Act (“Rule 10b-18”)) shall not, without the prior written consent of GS&Co., directly or indirectly
purchase any Shares (including by means of a derivative instrument), listed contracts on the Shares
or securities that are convertible into, or exchangeable or exercisable for Shares (including,
without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any
Relevant Period or, if applicable, Settlement Valuation Period, except through GS&Co.

(b) In connection with any Transaction hereunder, GS&Co. shall not, prior to the Actual
Termination Date (as defined below) for such Transaction, effect any block purchase of Shares
(other than a block purchase effected in respect of dynamic adjustments to GS&Co.’s hedge in
connection with optionality embedded in such Transaction) on any Exchange Business Day if the
amount of such block together with all other purchases effected by GS&Co. in respect of such
Transaction (other than any purchases in respect of such dynamic hedging activity) would exceed 25%
of the ADTV (as defined in Rule 10b-18) for the Shares on such Exchange Business Day.

8. Special Provisions for Merger Transactions. Notwithstanding anything to the contrary
herein or in the Equity Definitions:

(a) Counterparty agrees that it:

(i) will not during the period commencing on the Trade Date through the end of the Relevant
Period for any Transaction make, or permit to be made, any public announcement (as defined in Rule
165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction unless
such public announcement is made prior to the opening or after the close of the regular trading
session on the Exchange for the Shares;

(ii) shall promptly (but in any event prior to the next opening of the regular trading session
on the Exchange) notify GS&Co. following any such announcement that such announcement has been
made; and

(iii) shall promptly (but in any event prior to the next opening of the regular trading
session on the Exchange) provide GS&Co. with written notice specifying (i) Counterparty’s average
daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months
immediately preceding the announcement date that were not effected through GS&Co. or its affiliates
and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the
Exchange Act for the three full calendar months preceding the announcement date. Such written
notice shall be deemed to be a certification by Counterparty to GS&Co. that such information is
true and correct. In addition, Counterparty shall promptly notify GS&Co. of the earlier to occur
of the completion of such transaction and the completion of the vote by target shareholders.
Counterparty acknowledges that any such notice may cause the terms of any Transaction to be
adjusted; accordingly, Counterparty acknowledges that its delivery of such notice must comply with
the standards set forth in Section 6 above.

(b) In the event of the public announcement of a Merger Transaction or potential Merger
Transaction, GS&Co. in its sole discretion may (i) make adjustments to the terms of any
Transaction, including, without limitation, the Termination Date or the Forward Price Adjustment
Amount, and/or suspend the Calculation Period and/or any Settlement Valuation Period or (ii) treat
the occurrence of the public announcement of a Merger Transaction or potential Merger Transaction
as an Additional Termination Event with Counterparty as the sole Affected Party and the
Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the
Agreement determined taking into account the fact that the Calculation Period or Settlement
Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

“Merger Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

9. Special Provisions for Friendly Transaction Announcements. (a) If a Friendly
Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the
Number of Shares to be Delivered for such Transaction shall be determined as if clause (x)(b)(ii)
of the definition thereof were replaced with “(b)(ii) the Prorated Forward Price Adjustment
Amount.” If a Friendly Transaction Announcement occurs after the Trade Date, but prior to the First
Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such
Friendly Transaction Announcement. If a Friendly Transaction Announcement occurs after the
Settlement Date for any Transaction or any earlier date of termination or cancellation of such
Transaction pursuant to Section 6 of the Agreement or Article 12 of the Equity Definitions, then a
second settlement of such Transaction (a “Second Settlement”) shall occur (notwithstanding such
earlier termination or cancellation) with a Number of Shares to be Delivered equal to the lesser of
(i) zero and (ii) (x) the Number of Shares to be Delivered determined pursuant to the first
sentence of this paragraph as if such Friendly Transaction Announcement occurred prior to such
Settlement Date minus (y) the Number of Shares to be Delivered determined pursuant to Section 1 of
this Confirmation. If the Number of Shares to be Delivered for any settlement of any Transaction
is a negative number, then the terms of the Counterparty Settlement Provisions in Annex A shall
apply. Notwithstanding the foregoing, in the case of a Second Settlement occurring after such an
early termination or cancellation, in lieu of a Number of Shares to be Delivered being determined
as described above, a Forward Cash Settlement Amount will be determined as provided in Annex A.

(b) “Friendly Transaction Announcement” means (i) an Acquisition Transaction Announcement by
Counterparty or its board of directors prior to the last day of the Relevant Period or any earlier
date of termination or cancellation of the relevant Transaction pursuant to Section 6 of the
Agreement or Article 12 of the Equity Definitions (such date, the “Actual Termination Date”), (ii)
an announcement by Counterparty or its board of directors prior to the date three months following
the Scheduled Termination Date that an Acquisition Transaction that is the subject of an
Acquisition Transaction Announcement occurring prior to the Actual Termination Date has been
approved, agreed to, recommended by or otherwise consented to by Counterparty or its board of
directors, or negotiated by Counterparty or any authorized representative of Counterparty, or (iii)
where Counterparty or its board of directors has a legal obligation to make a recommendation to its
shareholders prior to the date three months following the Scheduled Termination Date in respect of
any Acquisition Transaction that is the subject of an Acquisition Transaction Announcement
occurring prior to the Actual Termination Date, the absence of a recommendation that its
shareholders reject such transaction.

“Acquisition Transaction Announcement” means (i) the announcement of an Acquisition
Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an
agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction,
(iii) the announcement of the intention to solicit or enter into, or to explore strategic
alternatives or other similar undertaking that may include, an Acquisition Transaction, or (iv) any
other announcement that in the reasonable judgment of the Calculation Agent would result in an
Acquisition Transaction. For the avoidance of doubt, announcements as used in the definition of
Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or
a third party.

“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the
definition of Merger Event shall be read with the references therein to “100%” being replaced by
“25%” and to “50%” by “51%” and without reference to the clause beginning immediately following the
definition of Reverse Merger therein to the end of such definition) or Tender Offer, or any other
transaction involving the merger of Counterparty with or into any third party, (ii) the sale or
transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization,
reclassification, binding share exchange or other similar transaction and (iv) any transaction in
which Counterparty or its board of directors has a legal obligation to make a recommendation to its
shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act
or otherwise).

“Prorated Forward Price Adjustment Amount” means the Forward Price Adjustment Amount
multiplied by the Proration Fraction.

“Proration Fraction” means the fraction (i) the numerator of which is the number of Scheduled
Trading Days during the period commencing on the Calculation Period Start Date and ending on the
date of any Friendly Transaction Announcement (or, in the case of a Friendly Transaction
Announcement of the type described in clause (ii) or clause (iii) of the definition thereof, the
date of the related Acquisition Transaction Announcement) (inclusive), and (ii) the denominator of
which is the number of Scheduled Trading Days during the period commencing on the Calculation
Period Start Date and ending on the Scheduled Termination Date (inclusive).

	10.	 	Acknowledgments. (a) The parties hereto intend for:

(i) each Transaction to be a “securities contract” as defined in Section 741(7) of the
Bankruptcy Code, a “swap agreement” as defined in Section 101(53B) of the Bankruptcy Code
and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the
parties hereto to be entitled to the protections afforded by, among other Sections, Sections
362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of
the Bankruptcy Code;

(ii) the Agreement to be a “master netting agreement” as defined in Section 101(38A) of
the Bankruptcy Code;

(iii) a party’s right to liquidate, terminate or accelerate any Transaction, net out or
offset termination values or payment amounts, and to exercise any other remedies upon the
occurrence of any Event of Default or Termination Event under the Agreement with respect to
the other party or any Extraordinary Event that results in the termination or cancellation
of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code);
and

(iv) all payments for, under or in connection with each Transaction, all payments for
the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the
transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in
the Bankruptcy Code).

(b) Counterparty acknowledges that:

(i) during the term of any Transaction, GS&Co. and its affiliates may buy or sell Shares or
other securities or buy or sell options or futures contracts or enter into swaps or other
derivative securities in order to establish or adjust its hedge position with respect to such
Transaction;

(ii) GS&Co. and its affiliates may also be active in the market for the Shares other than in
connection with hedging activities in relation to any Transaction;

(iii) GS&Co. shall make its own determination as to whether, when or in what manner any
hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a
manner that it deems appropriate to hedge its price and market risk with respect to the Forward
Price and the VWAP Price;

(iv) any market activities of GS&Co. and its affiliates with respect to the Shares may affect
the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in
a manner that may be adverse to Counterparty; and

(v) each Transaction is a derivatives transaction in which it has granted GS&Co. an option;
GS&Co. may purchase shares for its own account at an average price that may be greater than, or
less than, the price paid by Counterparty under the terms of the related Transaction.

11. Credit Support Documents. The parties hereto acknowledge that no Transaction hereunder
is secured by any collateral that would otherwise secure the obligations of Counterparty herein or
pursuant to the Agreement.

12. Limitation on Set-off. (a) The parties agree that upon the occurrence of an Event of
Default or Termination Event with respect to a party who is the Defaulting Party or an Affected
Party (“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to
X or any other person to set-off or apply any obligation of X owed to Y (or any Affiliate of Y)
(whether or not matured or contingent and whether or not arising under the Agreement, and
regardless of the currency, place of payment or booking office of the obligation) against any
obligation of Y (or any Affiliate of Y) owed to X (whether or not matured or contingent and whether
or not arising under the Agreement, and regardless of the currency, place of payment or booking
office of the obligation). Y will give notice to the other party of any set-off effected under
this Section 12.

Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y
into the Termination Currency at the rate of exchange at which such party would be able, acting in
a reasonable manner and in good faith, to purchase the relevant amount of such currency. If any
obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of
the estimate, subject to the relevant party accounting to the other when the obligation is
ascertained. Nothing in this Section 12 shall be effective to create a charge or other security
interest. This Section 12 shall be without prejudice and in addition to any right of set-off,
combination of accounts, lien or other right to which any party is at any time otherwise entitled
(whether by operation of law, contract or otherwise).

(b) Notwithstanding anything to the contrary in the foregoing, GS&Co. agrees not to set off or
net amounts due from Counterparty with respect to any Transaction against amounts due from GS&Co.
to Counterparty with respect to contracts or instruments that are not Equity Contracts. “Equity
Contract” means any transaction or instrument that does not convey to GS&Co. rights, or the ability
to assert claims, that are senior to the rights and claims of common stockholders in the event of
Counterparty’s bankruptcy.

13. Delivery of Shares. Notwithstanding anything to the contrary herein, GS&Co. may, by
prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on
any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such
securities, as the case may be, at more than one times on or prior to such Original Delivery Date,
so long as the aggregate number of Shares and other securities so delivered on or prior to such
Original Delivery Date is equal to the number required to be delivered on such Original Delivery
Date.

14. Early Termination. In the event that an Early Termination Date (whether as a result of
an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction
(except as a result of a Merger Event in which the consideration or proceeds to be paid to holders
of Shares consists solely of cash), if either party would owe any amount to the other party
pursuant to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Amount”), then, in lieu
of any payment of such Payment Amount, Counterparty may, no later than the Early Termination Date
or the date on which such Transaction is terminated, elect to deliver or for GS&Co. to deliver, as
the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number
of units, each comprising the number or amount of the securities or property that a hypothetical
holder of one Share would receive in such Merger Event (each such unit, an “Alternative Delivery
Unit” and, the securities or property comprising such unit, “Alternative Delivery Property”)) with
a value equal to the Payment Amount, as determined by the Calculation Agent (and the parties agree
that, in making such determination of value, the Calculation Agent may take into account a number
of factors, including the market price of the Shares or Alternative Delivery Property on the date
of early termination and, if such delivery is made by GS&Co., the prices at which GS&Co. purchases
Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section 14);
provided that in determining the composition of any Alternative Delivery Unit, if the relevant
Merger Event involves a choice of consideration to be received by holders, such holder shall be
deemed to have elected to receive the maximum possible amount of cash. If such delivery is made by
Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement
of the Transaction to which Net Share Settlement applied, the Cash Settlement Payment Date were the
Early Termination Date and the Forward Cash Settlement Amount were zero (0) minus the Payment
Amount owed by Counterparty.

15. Calculations and Payment Date upon Early Termination. The parties acknowledge and
agree that in calculating Loss pursuant to Section 6 of the Agreement GS&Co. may (but need not)
determine losses without reference to actual losses incurred but based on expected losses assuming
a commercially reasonable (including without limitation with regard to reasonable legal and
regulatory guidelines) risk bid for the purchase of the Shares were used to determine loss to avoid
awaiting the delay associated with closing out any hedge or related trading position in a
commercially reasonable manner prior to or sooner following the designation of an Early Termination
Date. Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement, all amounts
calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement
will be payable on the day that notice of the amount payable is effective; provided that if
Counterparty elects to receive Shares or Alternative Delivery Property in accordance with Section
14, such Shares or Alternative Delivery Property shall be delivered on a date selected by GS&Co as
promptly as practicable.

16. Delivery of Cash. For the avoidance of doubt, nothing in this Master Confirmation
shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the
Transactions contemplated by this Master Confirmation following payment by Counterparty of the
relevant Prepayment Amount and any relevant Counterparty Additional Payment Amount, except in
circumstances where the required cash settlement thereof is permitted for classification of the
contract as equity by EITF 00-19 as in effect on the relevant Trade Date (including, without
limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares
or Alternative Delivery Property in respect of the settlement of such Transactions).

17. Automatic Termination Provisions. Notwithstanding anything to the contrary in Section
6 of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an
Additional Termination Event with Counterparty as the sole Affected Party and the Transaction to
which such Supplemental Confirmation relates as the Affected Transaction will automatically occur
without any notice or action by GS&Co. or Counterparty if the price of the Shares on the Exchange
at any time falls below such Termination Price. The Exchange Business Day that the price of the
Shares on the Exchange at any time falls below the Termination Price will be the “Early Termination
Date” for purposes of the Agreement.

18. Claim in Bankruptcy. GS&Co. acknowledges and agrees that this Confirmation is not
intended to convey to it rights with respect to the Transaction that are senior to the claims of
common stockholders in the event of Counterparty’s bankruptcy.

19. General Obligations Law of New York. With respect to each Transaction, (i) this Master
Confirmation, together with the related Supplemental Confirmation is a “qualified financial
contract”, as such term is defined in Section 5-701(b)(2) of the General Obligations Law of New
York (the “General Obligations Law”); (ii) such Supplemental Confirmation constitutes a
“confirmation in writing sufficient to indicate that a contract has been made between the parties”
hereto, as set forth in Section 5-701(b)(3)(b) of the General Obligations Law; and (iii) this
Master Confirmation, together with the related Supplemental Confirmation, constitutes a prior
“written contract” as set forth in Section 5-701(b)(1)(b) of the General Obligations Law, and each
party hereto intends and agrees to be bound by this Master Confirmation and the related
Supplemental Confirmation.

20. Governing Law. The Agreement, this Master Confirmation, each Supplemental Confirmation
and all matters arising in connection with the Agreement, this Master Confirmation and each
Supplemental Confirmation shall be governed by, and construed and enforced in accordance with, the
laws of the State of New York (without reference to its choice of laws doctrine).

21. Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable
law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating
to any Transaction. Each party (i) certifies that no representative, agent or attorney of the
other party has represented, expressly or otherwise, that such other party would not, in the event
of such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges
that it and the other party have been induced to enter into each Transaction, as applicable, by,
among other things, the mutual waivers and certifications provided herein.

22. Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits
for itself and its property in any legal action or proceeding by the other party against it
relating to a Transaction to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the exclusive jurisdiction of the Supreme Court of the State of New
York, sitting in New York County, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof.

	23.	 	Offices.

(a) The Office of GS&Co. for each Transaction is: One New York Plaza, New York, New York
10004.

(b) The Office of Counterparty for each Transaction is: 100 Independence Mall West,
Philadelphia, PA 19106.

24. Counterparts. This Master Confirmation may be executed in any number of counterparts,
all of which shall constitute one and the same instrument, and any party hereto may execute this
Master Confirmation by signing and delivering one or more counterparts.

1

Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of
the agreement between GS&Co. and Counterparty with respect to any particular Transaction to which
this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof
as evidence of agreement to such terms and providing the other information requested herein and
immediately returning an executed copy to Equity Derivatives Documentation Department, Facsimile
No. 212-428-1980/83.

	 	 	 	Yours
faithfully,

GOLDMAN, SACHS & CO.

By:

Authorized Signatory

Agreed and Accepted By:

ROHM AND HAAS COMPANY

	 	 	By:

Name:

Title:

	 	 	By:

Name:

Title:

2

SCHEDULE A

SUPPLEMENTAL CONFIRMATION

	 	 	 
	To:

	 	Rohm and Haas Company

100 Independence Mall West

Philadelphia, PA 19106
	From:

	 	Goldman, Sachs & Co.
	Subject:

	 	Uncollared Accelerated Stock Buyback
	Ref. No:

	 	[Insert Reference No.]
	Date:

	 	[September 10th, 2007]

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the
Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and Rohm and Haas Company
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This
Supplemental Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant
Trade Date for the Transaction referenced below.

1. This Supplemental Confirmation supplements, forms part of, and is subject to the Master
Confirmation dated as of [September 10th, 2007] (the “Master Confirmation”) between the
Contracting Parties, as amended and supplemented from time to time. All provisions contained in
the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

2. The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

	 	 	 
	Trade Date:

	 	[September 10th, 2007]
	Forward Price Adjustment Amount:

	 	USD [2.0226]
	Calculation Period Start Date:

	 	[September 11th, 2007]
	Knock-out Level:

	 	USD[68.00] per Share
	Maximum Knock-out Number:

	 	[40]
	Scheduled Termination Date:

	 	[June 10th, 2008]
	First Acceleration Date:

	 	[February 19th, 2008]
	Prepayment Amount:

	 	USD [994,082,722.45]
	Prepayment Date:

	 	[September 11th, 2007]
	Counterparty Additional Payment Amount:

	 	USD [5,917,277.55]
	Initial Shares:

	 	[16,189,716]
	Initial Share Delivery Date:

	 	[September 11th, 2007]
	Ordinary Dividend Amount:

	 	For November 7, 2007 and February 13, 2008, USD [0.37]

For May 14, 2008 [0.41]
	Termination Price:

	 	USD[15.00] per Share
	Additional Relevant Days:

	 	The [5] Exchange Business Days immediately following

the Calculation Period.

3. Counterparty represents and warrants to GS&Co. that neither it nor any “affiliated purchaser”
(as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the
proviso in Rule 10b-18(b)(4) under the Exchange Act during the four full calendar weeks immediately
preceding the Trade Date.

4. This Supplemental Confirmation may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this Supplemental
Confirmation by signing and delivering one or more counterparts.

3

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and
immediately upon receipt so that errors or discrepancies can be promptly identified and rectified
and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth
the terms of the agreement between GS&Co. and Counterparty with respect to the Transaction to which
this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this
page hereof as evidence of agreement to such terms and providing the other information requested
herein and immediately returning an executed copy to Equity Derivatives Documentation Department,
facsimile No. 212-428-1980/83.

Yours sincerely,

GOLDMAN, SACHS & CO.

By:

Authorized Signatory

Agreed and Accepted By:

ROHM AND HAAS COMPANY

	 	 	By:

Name:

Title:

	 	 	By:

Name:

Title:

4

	 	 	 	ANNEX A

COUNTERPARTY SETTLEMENT PROVISIONS

1. The following Counterparty Settlement Provisions shall apply to the extent indicated under
the Master Confirmation:

	 	 	 	Settlement Currency: USD

	 	 	 	Settlement Method Election: Applicable; provided that (i) Section 7.1 of the
Equity Definitions is hereby amended by deleting the word “Physical” in the
sixth line thereof and replacing it with the words “Net Share” and (ii) the
Electing Party may make a settlement method election only if the Electing
Party represents and warrants to GS&Co. in writing on the date it notifies
GS&Co. of its election that, as of such date, the Electing Party is not
aware of any material non-public information concerning Counterparty or the
Shares and is electing the settlement method in good faith and not as part
of a plan or scheme to evade compliance with the federal securities laws.

	 	 	 	Electing Party: Counterparty

	 	 	 	Settlement Method

	 	 	 	Election Date: The earlier of (i) the Scheduled Termination Date and (ii) the
Accelerated Termination Date, as the case may be; provided that if a
Friendly Transaction Announcement occurs after the Settlement Date, the
Settlement Method Election Date for the Second Settlement shall be the date
of the Friendly Transaction Announcement.

	 	 	 	Default Settlement Method: Cash Settlement

	 	 	 	Forward Cash Settlement

	 	 	 	Amount: The Number of Shares to be Delivered multiplied by the Settlement Price;
provided that in the case of a Second Settlement occurring after an early
termination or cancellation of the relevant Transaction pursuant to Section
6 of the Agreement or Article 12 of the Equity Definitions, the Forward Cash
Settlement Amount shall equal the lesser of (i) zero and (ii)(x) the Payment
Amount that would have been calculated for such early termination or
cancellation if clause (x)(b)(ii) in the definition of Number of Shares to
be Delivered had been replaced with “(b)(ii) the Prorated Forward Price
Adjustment Amount”, as determined by the Calculation Agent minus (y) the
actual Payment Amount calculated for such early termination or cancellation
(in each case, with an amount that would have been owed by Counterparty
expressed as a negative number for purposes of this calculation).

	 	 	 	Settlement Price: The average of the VWAP Prices for the Exchange Business Days
in the Settlement Valuation Period, subject to Valuation Disruption as
specified in the Master Confirmation.

	 	 	 	Settlement Valuation Period: A number of Scheduled Trading Days selected by
GS&Co. in its reasonable discretion, beginning on the Scheduled Trading Day
immediately following the Termination Date or, in the case of a Second
Settlement, the date of the Friendly Transaction Announcement.

	 	 	 	Cash Settlement: If Cash Settlement is applicable, then Buyer
shall pay to Seller the absolute value of the Forward Cash Settlement Amount
on the Cash Settlement Payment Date.

	 	 	 	Cash Settlement

	 	 	 	Payment Date: The date one Settlement Cycle following the last day of the
Settlement Valuation Period.

	 	 	 	Net Share Settlement

	 	 	 	Procedures: If Net Share Settlement is applicable, Net Share Settlement shall be
made in accordance with paragraphs 2 through 7 below.

2. Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a
number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered
Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered
Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash
Settlement Amount, with such Shares’ value based on the value thereof to GS&Co. (which value shall,
in the case of Unregistered Settlement Shares, take into account a commercially reasonable
illiquidity discount), in each case as determined by the Calculation Agent.

3. Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above
if:

(a) a registration statement covering public resale of the Registered Settlement Shares by
GS&Co. (the “Registration Statement”) shall have been filed with, and declared effective by, the
Securities and Exchange Commission under the Securities Act on or prior to the date of delivery,
and no stop order shall be in effect with respect to the Registration Statement; a printed
prospectus relating to the Registered Settlement Shares (including any prospectus supplement
thereto, the “Prospectus”) shall have been delivered to GS&Co., in such quantities as GS&Co. shall
reasonably have requested, on or prior to the date of delivery;

(b) the form and content of the Registration Statement and the Prospectus (including, without
limitation, any sections describing the plan of distribution) shall be satisfactory to GS&Co.;

(c) as of or prior to the date of delivery, GS&Co. and its agents shall have been afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Counterparty
customary in scope for underwritten offerings of equity securities and the results of such
investigation are satisfactory to GS&Co., in its discretion; and

(d) as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been
entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares
by GS&Co. substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance satisfactory to GS&Co., which Underwriting Agreement shall
include, without limitation, provisions substantially similar to those contained in such
underwriting agreements relating to the indemnification of, and contribution in connection with the
liability of, GS&Co. and its affiliates.

4. If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

(a) all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of
GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the
Securities Act provided by Section 4(2) thereof;

(b) as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such
shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be
afforded a commercially reasonable opportunity to conduct a due diligence investigation with
respect to Counterparty customary in scope for private placements of equity securities (including,
without limitation, the right to have made available to them for inspection all customary financial
and other records, pertinent corporate documents and other information reasonably requested by
them); and

(c) as of the date of delivery, Counterparty shall enter into an agreement (a “Private
Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection
with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the
private resale of such shares by GS&Co. (or any such affiliate), substantially similar to private
placement purchase agreements customary for private placements of equity securities, in form and
substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those contained in such private
placement purchase agreements relating to the indemnification of, and contribution in connection
with the liability of, GS&Co. and its affiliates, and shall provide for the payment by Counterparty
of all fees and expenses in connection with such resale, including all fees and expenses of counsel
for GS&Co., and shall contain representations, warranties and agreements of Counterparty reasonably
necessary or advisable to establish and maintain the availability of an exemption from the
registration requirements of the Securities Act for such resales.

5. GS&Co., itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will
sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares
or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the
“Settlement Shares”) delivered by Counterparty to GS&Co. pursuant to paragraph 6 below commencing
on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net
Proceeds (as such term is defined below) of such sales, as determined by GS&Co., is equal to the
absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the
proceeds of any sale(s) made by GS&Co., the Selling Agent or any underwriter(s), net of any fees
and commissions (including, without limitation, underwriting or placement fees) customary for
similar transactions under the circumstances at the time of the offering, together with carrying
charges and expenses incurred in connection with the offer and sale of the Shares (including, but
without limitation to, the covering of any over-allotment or short position (syndicate or
otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount,
GS&Co. will refund, in U.S. Dollars, such excess to Counterparty on the date that is three (3)
Currency Business Days following the Final Resale Date, and, if any portion of the Settlement
Shares remains unsold, GS&Co. shall return to Counterparty on that date such unsold Shares.

6. If the Calculation Agent determines that the Net Proceeds received from the sale of the
Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any,
pursuant to this paragraph 6 are less than the absolute value of the Forward Cash
Settlement Amount (the amount in U.S. Dollars by which the Net Proceeds are less than the absolute
value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which
such determination is made, the “Deficiency Determination Date”), Counterparty shall on the
Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice
Date”) deliver to GS&Co., through the Agent, a notice of Counterparty’s election that Counterparty
shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency
Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If Counterparty
elects to deliver to GS&Co. additional Shares, then Counterparty shall deliver additional Shares in
compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be
(the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange
Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably
believes would have a market value on that Exchange Business Day equal to the Shortfall. Such
Makewhole Shares shall be sold by GS&Co. in accordance with the provisions above; provided that if
the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds
from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash
Settlement Amount then Counterparty shall, at its election, either make such cash payment or
deliver to GS&Co. further Makewhole Shares until such Shortfall has been reduced to zero.

7. Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares
and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually
delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result
of such calculation, the “Capped Number”). Counterparty represents and warrants (which shall be
deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is
equal to or less than the number of Shares determined according to the following formula:

A – B

	 	 	 	Where A = the number of authorized but unissued shares of the
Counterparty that are not reserved for future issuance on the date of the
determination of the Capped Number; and

B = the maximum number of Shares required to be delivered to third parties
if Counterparty elected Net Share Settlement of all transactions in the
Shares (other than Transactions in the Shares under this Master
Confirmation) with all third parties that are then currently outstanding and
unexercised.

“Reserved Shares” means initially, 17 million Shares. The Reserved Shares may be increased or
decreased in a Supplemental Confirmation.

5

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