Document:

Securities Purchase Agreement

 Exhibit 10.53 
 SECURITIES PURCHASE AGREEMENT 
 This SECURITIES PURCHASE AGREEMENT (this
“Agreement”) is dated as of September 30, 2008, by and between ADA-ES, Inc., a Colorado corporation (the “Company”) and the several purchasers identified in the attached Exhibit A (individually, a
“Purchaser” and collectively, the “Purchasers”). Capitalized terms not otherwise defined where used shall have the meanings ascribed thereto in Article I. 
 RECITALS 
 WHEREAS, the Company and the Purchasers are executing
and delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission (the
“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”). 
 WHEREAS, the
Purchasers wish to purchase from the Company, and the Company wishes to sell and issue to the Purchasers, upon the terms and conditions stated in this Agreement: (i) an aggregate of 1,800,000 shares of the Company’s Series A Convertible
Preferred Stock, no par value (the “Series A Preferred Stock”); and (ii) an aggregate of 1,800,000 shares of the Company’s Series B Convertible Preferred Stock, no par value (the “Series B Preferred Stock”
and together with the Series A Preferred Stock, the “Shares”); 
 WHEREAS, the Shares will be, under certain
conditions, convertible into shares of the Company’s common stock, no par value per share (the “Common Stock”) (such Common Stock issuable upon conversion shall be referred to herein as the “Conversion Shares,”
and the Shares and the Conversion Shares shall be referred to herein as the “Securities”); and 
 WHEREAS,
contemporaneously with the sale of the Shares, the parties hereto will execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which the
Company will agree to provide certain registration rights under the Securities Act, and the rules and regulations promulgated thereunder, and applicable state securities laws. 
 AGREEMENT 
 NOW THEREFORE, in consideration of the premises and
the representations, warranties and agreements herein contained and intending to be legally bound hereby, the parties hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 
 1.01 Definitions. 
 a. Certain Definitions. As used in this Agreement, the following terms shall have the
meanings set forth below: 
 i. “Affiliate” shall mean any Person that directly or indirectly, through one or
more intermediaries, Controls, is Controlled by, or is under common Control with the Person in question and shall include with respect to ECP, each Purchaser; 

 ii. “Business Day” shall mean a day other than a Saturday, Sunday or
other day on which banks in the States of Colorado or New York are required or authorized to close; 
 iii.
“Certificates of Designations” shall mean the Series A Certificate of Designations and the Series B Certificate of Designations; 
 iv. “Code” shall mean the Internal Revenue Code of 1986, as amended; 
 v.
“Company Benefit Plan” shall mean each “employee benefit plan” within the meaning of Section 3(3) of ERISA, including multiemployer plans within the meaning of Section 3(37) of ERISA, and each other stock
purchase, stock option, restricted stock, restricted stock unit, severance, retention, employment, consulting, change-of-control, collective bargaining, bonus, incentive, deferred compensation, employee loan, fringe benefit and other benefit plan,
agreement, program, policy, commitment or other arrangement, whether or not subject to ERISA, in each case (A) under which any past or present director, officer, employee, consultant or independent contractor of the Company has any present or
future right to benefits, or (B) otherwise as a result of which the Company has any liability; 
 vi.
“Contract” shall mean any material agreement, contract, commitment, lease, mortgage, indenture, deed of trust, debt instrument, understanding, arrangement, restriction or other instrument to which the Company is currently a party
and that is or was required to be filed as an exhibit to any Company SEC Report; 
 vii. “Control” shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise; 
 viii. “Conversion” shall mean the conversion from time to time of the Shares for shares of Common Stock in accordance
with the terms of the Series A Certificate of Designations or Series B Certificate of Designations, as applicable; 
 ix.
“Development Subsidiaries” shall mean (A) Red River Environmental Products LLC, a Delaware limited liability company, (B) Morton Environmental Products LLC, a Delaware limited liability company, (C) Underwood
Environmental Products LLC, a Delaware limited liability company, (D) Crowfoot Supply Company, LLC, a Delaware limited liability company and (E) Crowfoot Development, LLC, a Delaware limited liability company, respectively; 
 x. “ECP” shall mean Energy Capital Partners, LLC, and any of its Affiliates; 
 xi. “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended; 
 xii. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended; 
 xiii. “Governmental Authority” shall mean the government of any nation, state, city, locality or other political
subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing; 
  

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 xiv. “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended; 
 xv. “Joint Development Agreement” means the Joint Development Agreement, dated as
of the date hereof, by and among ADA-ES and ECP or one or more of its Affiliates; 
 xvi. “knowledge of the
Company” or “to the Company’s knowledge” means the actual knowledge, after reasonable inquiry, of the directors and officers of the Company; 
 xvii. “LLC Agreement” means the Limited Liability Company Agreement of Crowfoot Development, LLC
(“Devco”), dated as of the date hereof, among the Company and the other members of Devco signatory thereto (“Other Devco Members”); 
 xviii. “Majority Purchasers” means Purchasers who collectively hold the right to purchase a majority of the Shares to be
purchased; 
 xix. “Material Adverse Effect” shall mean, collectively, a material adverse effect on, or a
material adverse change in, or group of such effects on or changes in the general affairs, business, prospects, properties, assets, liabilities, operations or condition (financial or otherwise) or results of operations of the Company, its
Subsidiaries and the Development Subsidiaries taken as a whole, except for (i) any change resulting from general economic conditions provided that the Company, its Subsidiaries and the Development Subsidiaries taken as a whole are not
materially disproportionately (relative to other companies in the Company’s industry) affected by such change, (ii) any change resulting from conditions or circumstances generally affecting the industry in which the Company, its
Subsidiaries and the Development Subsidiaries participate and not specifically relating to the Company, provided that the Company, its Subsidiaries and the Development Subsidiaries taken as a whole are not materially disproportionately (relative to
most other industry participants) affected by such change and (iii) any change in the market price of the Company’s Common Stock; 
 xx. “NASD” shall mean National Association of Securities Dealers, Inc.; 
 xxi. “Owns, Own, or Owned” shall mean the aggregate beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of the Purchasers and their Affiliates; 
 xxii. “Person” means an individual or a corporation, partnership, limited liability company, trust, estate,
unincorporated organization, association or other entity; 
 xxiii. “Pricing Date” shall mean the later of:

  

	 	(1)	the first date on which Members (as defined in the LLC Agreement) are required to fund pursuant to Section 3.3(c)(ii) of the LLC Agreement; and 

  

	 	(2)	the date on which the Company shall have publicly announced, in a report filed with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, (A) the
execution of this Agreement and (B) its intention to solicit the Shareholder Approval in accordance with Section 5.11 hereof; 

  

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 xxiv. “Purchasers’ Representative” means Energy Capital Partners GP
I, LLC, a Delaware limited liability company; 
 xxv. “Red River Project” shall have the meaning set forth in
the Joint Development Agreement; 
 xxvi. “Sarbanes-Oxley Act” shall mean the Sarbanes-Oxley Act of 2002, as
amended to date; 
 xxvii. “SEC” shall mean the U.S. Securities and Exchange Commission; 
 xxviii. “Securities Act” shall mean the Securities Act of 1933, as amended; 
 xxix. “Series A Certificate of Designations” means the Certificate of Designations, Number, Voting Powers, Preferences
and Rights of Series A Convertible Preferred Stock of the Company, substantially in the form attached hereto as Exhibit C; 
 xxx. “Series B Certificate of Designations” means the Certificate of Designations, Number, Voting Powers, Preferences and Rights of Series B Convertible Preferred Stock of the Company, substantially in the form attached
hereto as Exhibit D; 
 xxxi. “Subsidiary” when used with respect to any Person, shall mean any
corporation or other organization, whether incorporated or unincorporated, at least a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the Board of Directors or others
performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries,
provided, however, that when used with respect to the Company, the term “Subsidiary” shall not include any of the Development Subsidiaries unless specifically referenced; 
 xxxii. “Takeover Statute” shall mean any corporate takeover provision under laws of the State of Colorado or any other
state or federal “fair price”, “moratorium”, “control share acquisition” or other similar anti-takeover statute or regulation; 
 xxxiii. “Trading Day” shall mean any day on which the Common Stock is listed or quoted and traded on the NASDAQ Capital
Market or, if the Common Stock is not listed on the NASDAQ Capital Market, on the principal national securities exchange on which the Common Stock is then listed or, if the Common Stock is not listed on a national securities exchange, on the
automated quotation system on which the Common Stock is then authorized for quotation; 
 xxxiv. “Transaction
Agreements” shall mean this Agreement, the Registration Rights Agreement, the Joint Development Agreement, the LLC Agreement and the Operative Agreements (as defined in the Joint Development Agreement); and 
 xxxv. “VWAP Price” per share of Common Stock on any Trading Day means such price as displayed on Bloomberg (or any
successor service) page ADES <equity> AQR in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day; or, if such price is not available, the VWAP Price means the market value per share of Common
Stock on such day as determined by a nationally recognized independent investment banking firm retained for this purpose by the Company. 
  

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 1.02 General Interpretive Principles. Whenever used in this Agreement, except as otherwise expressly
provided or unless the context otherwise requires, any noun or pronoun shall be deemed to include the plural as well as the singular and to cover all genders. The name assigned this Agreement and the section captions used herein are for convenience
of reference only and shall not be construed to affect the meaning, construction or effect hereof. Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation.” Unless otherwise specified, the terms “hereto,” “hereof,” “herein” and similar terms refer to this Agreement as a whole (including the exhibits, schedules and disclosure
statements hereto), and references herein to Articles or Sections refer to Articles or Sections of this Agreement. 
 1.03 Purchasers’
Representative. Except as otherwise specified herein, for purposes of this Agreement, wherever the Company is required to provide notice or documentation to the Purchasers, such obligation shall be satisfied by the provision of such notice
or documentation to the Purchasers’ Representative. 
 ARTICLE II. 
 SALE AND PURCHASE OF THE COMPANY PREFERRED STOCK 
 2.01 Authorization of Preferred
Stock. 
 a. Series A Preferred Stock. On or prior to the Closing, the Company shall have authorized the sale and issuance of
an aggregate of 1,800,000 shares of Series A Preferred Stock, on the terms and conditions set forth in this Agreement. The terms, limitations and relative rights and preferences of the Shares shall be as set forth in the Series A Certificate of
Designations. 
 b. Series B Preferred Stock. On or prior to the Closing, the Company shall have authorized the sale and issuance of
an aggregate of 1,800,000 shares of Series B Preferred Stock, on the terms and conditions set forth in this Agreement. The terms, limitations and relative rights and preferences of the Shares shall be as set forth in the Series B Certificate of
Designations. 
 2.02 Purchase and Sale. Subject to and upon the terms and conditions set forth in this Agreement, the Company agrees to
issue and sell to each Purchaser, and each Purchaser hereby agrees to purchase from the Company, at the Closing (as defined below): (i) the number of shares of Series A Preferred Stock set forth opposite the name of such Purchaser under the
heading “Number of Shares of Series A Preferred Stock to be Purchased” on Exhibit A hereto, for a per share purchase price equal to $9.37 (the “Series A Per Share Purchase Price”), or $16,866,000 in the
aggregate (the “Series A Purchase Price”); and (ii) the number of shares of Series B Preferred Stock set forth opposite the name of such Purchaser under the heading “Number of Shares of Series B Preferred Stock to be
Purchased” on Exhibit A hereto, for a per share purchase price equal to the lesser of (A) $16.50 and (B) the product of (i) 0.9 multiplied by (ii) the average of the VWAP Prices for the period beginning on
the date 10 Trading Days prior to the Pricing Date and ending (if the Pricing Date is a Trading Day) on the date 9 Trading Days after the Pricing Date or (if the Pricing Date is not a Trading Day) on the date 10 Trading Days after the Pricing Date
(the “Series B Per Share Purchase Price”), for a number of U.S. Dollars in the aggregate equal to the product of the Series B Per Share Purchase Price and 1,800,000 (the “Series B Purchase Price”). The sum of the
Series A Purchase Price and Series B Purchase Price shall be referred to herein as the “Purchase Price”. 
 2.03 Closing.
The closing of the transactions contemplated under this Agreement (the “Closing”) shall take place at the offices of Schuchat, Herzog & Brenman, LLC, counsel to the Company, on the third business day after the Company
shall have given written notice (the “Closing Notice”) to the Purchasers’ Representative that all of the conditions precedent set forth in Article VI hereof have been satisfied in full or are expected to be satisfied in full at
the Closing or duly waived by the Company and/or the Majority Purchasers, as applicable (the “Closing Date”), or at such other location, date and time as may be agreed upon between the Purchasers and the Company. 
  

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 2.04 Delivery. The sale and purchase of the Shares shall be effected on the Closing Date by the
Company executing and delivering to the Purchasers, duly registered in such Purchaser’s name, one or more duly executed stock certificates evidencing the shares being purchased by it, against payment of the Purchase Price therefor by wire
transfer of immediately available funds to such account as the Company shall designate in writing. 
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as set forth in the corresponding section or subsection of the disclosure schedule delivered by the Company to the Purchasers’ Representative on the date of this Agreement (the “Disclosure Schedule”), the
Company hereby represents and warrants to each of the Purchasers as of the date hereof and as of the Closing Date (or, if made as of a specified date, as of such other date) as follows: 
 3.01 Organization, Standing and Power. 
 a. Due Organization and Standing. The Company
and each of its Subsidiaries: (i) is a corporation or other organization duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (except, in the case of good standing, for
entities organized under the laws of any jurisdiction that does not recognize such concept), (ii) has the requisite power and authority to own, license, lease and operate its properties and to carry on its business as now being conducted and
currently proposed to be conducted, and (iii) is duly qualified or licensed and in good standing to do business in each jurisdiction in which the nature of its business or the ownership, licensing or leasing of its properties makes such
qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed or to be in good standing, individually or in the aggregate, would not reasonably be likely to have a Material Adverse Effect.
Neither the Company nor any Subsidiary thereof nor any of the Development Subsidiaries has received a written notification that any proceeding has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke,
limit or curtail, such power and authority or qualification, and to the Company’s knowledge, no proceeding has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power and
authority or qualification where such proceeding would reasonably be likely to have a Material Adverse Effect. 
 b. Charter
Documents. The Company has delivered or made available to the Purchasers’ Representative or its counsel: (i) a true and correct copy of the Amended and Restated Articles of Incorporation, as amended to date (the “Articles of
Incorporation”) and Amended and Restated Bylaws of the Company, as amended to date (the “Bylaws,” and together with the Articles of Incorporation, the “Company Charter Documents”) and (ii) the
Certificate of Incorporation and Bylaws, or like organizational documents, of each of its Subsidiaries and each of the Development Subsidiaries (collectively, “Subsidiary Charter Documents”), and each such instrument is in full
force and effect. 
 c. Subsidiaries. All the outstanding shares of capital stock of, or other equity or voting interests in, each
such Subsidiary and each Development Subsidiary have been validly issued and are fully paid and nonassessable and are owned by the Company, a wholly-owned Subsidiary of the Company, or the Company and another wholly-owned Subsidiary of the Company,
free and clear of all material pledges, claims, liens, charges, encumbrances, rights of first refusal, rights of first offer, rights of last refusal, rights 

  

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of negotiation and security interests of any kind or nature whatsoever, other than liens for taxes not yet due and payable and, with respect to the
Development Subsidiaries, other Permitted Encumbrances (as defined in the Joint Development Agreement) (collectively, “Liens”), except for restrictions imposed by applicable securities laws. Other than the Subsidiaries and the other
subsidiaries of the Company set forth on Exhibit 21.1 to the Company’s Form 10-K for the fiscal year ended December 31, 2007 in the form filed with the SEC (the “2007 Form 10-K”), neither the Company nor any of its
Subsidiaries (including the Development Subsidiaries) owns any capital stock of, or other equity or voting interests of any nature in, or any interest convertible, exchangeable or exercisable for, capital stock of, or other equity or voting
interests of any nature in, any other Person except for minority investments in marketable securities existing from time to time. 
 3.02
Capitalization. 
 a. As of the date hereof, the authorized capital stock of the Company consists of: (i) 50,000,000 shares
of common stock, no par value, and 50,000,000 shares of preferred stock, no par value per share (the “Company Preferred Stock”). The rights and privileges of each class of the Company’s capital stock are as set forth in the
Articles of Incorporation. As of the date hereof, (i) 6,727,035 shares of Common Stock were issued and outstanding, (ii) no shares of Company Preferred Stock were issued or outstanding, and (iii) 419,765 shares of Common Stock are
reserved for issuance upon the exercise of outstanding options including options granted under the Company’s outstanding stock incentive and option plans and agreements, restricted stock plans and programs and employee stock purchase programs
(collectively, the “Equity Plans”). 
 b. As of the Closing, and assuming the Purchasers purchase all of the Shares,
(i) not more than an aggregate of 8,000,000 shares of Common Stock will be issued and outstanding; (ii) 1,800,000 shares of Series A Preferred Stock will be issued and outstanding; (iii) 1,800,000 shares of Series B Preferred Stock
will be issued and outstanding; (iv) not more than an aggregate of 962,463 shares of Common Stock will be reserved for issuance upon the exercise of outstanding options including options granted or reserved under the Equity Plans; and
(v) 3,600,000 Conversion Shares will be reserved for issuance upon the Conversion. 
 c. Except for the Securities and except for
options granted under the Equity Plans (the “Company Options”), as of the date hereof, the Company does not have outstanding any options to purchase, warrants, any securities or obligations convertible into, or any contracts or
commitments to issue or sell, shares of its capital stock. All of the shares of issued and outstanding capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable, and none of the outstanding
shares of capital stock of the Company was issued in violation of the preemptive or other similar rights of any security holder of the Company. 
 3.03
Stock Options. All Company Options have been appropriately authorized by the board of directors of the Company or an appropriate committee thereof, including approval of the option exercise price or the methodology for determining
the option exercise price and the substantive option terms. All Company Options reflect the fair market value of the Common Stock as determined under Section 409A of the Code on the date the option was granted (within the meaning of Treasury
Regulation §1.421-1(c)). No Company Options have been retroactively granted, or the exercise price of any Company Option determined after the date of grant. All Company Options have been properly accounted for in all material respects by the
Company in accordance with GAAP, and no material change is expected in respect of any prior financial statements of the Company relating to expenses for stock compensation. The Company has not received written notice of, and to the Company’s
knowledge, there is no pending audit, investigation or inquiry by any governmental agency or by the Company with respect to the Company’s stock option granting practices or other equity compensation practices. 
  

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 3.04 Authorization of Agreement. The Company has full corporate power and authority to (a) enter into
the Transaction Agreements and subject to the Shareholder Approval, to consummate the transactions contemplated hereby and thereby and (b) subject to the Shareholder Approval, authorize, execute, issue, and deliver the Shares and the Conversion
Shares as contemplated by the Transaction Agreements. This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a legal and binding obligation of the Company, enforceable against the Company in accordance with
its terms, except to the extent that rights to indemnity hereunder may be limited by federal or state securities laws and except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization or similar laws
affecting the rights of creditors generally and subject to general principles of equity. On the Closing Date, the Transaction Agreements (other than this Agreement) will have been duly authorized, executed and delivered by the Company, and
constitute legal and binding obligations of the Company, enforceable against the Company in accordance with their terms, except to the extent that rights to indemnity thereunder may be limited by federal or state securities laws and except as such
enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity. 
 3.05 Authorization of the Shares. 
 a. The
Shares to be issued at the Closing have been duly authorized and reserved for issuance and sale to the Purchasers pursuant to this Agreement, and, when issued and delivered by the Company pursuant to this Agreement against payment of the
consideration set forth herein, such Shares will be duly and validly issued and fully paid and non-assessable. 
 b. On or prior to the
Closing, and after giving effect to the Shareholder Approval, the Conversion Shares will be duly authorized and reserved for issuance to the holders of the Shares, and, when issued and delivered by the Company pursuant to the terms of the Shares,
will be duly and validly issued and fully paid and non-assessable. 
 c. No holder of the Shares or the Conversion Shares will be subject to
personal liability by reason of being such a holder, and neither the issuance of the Shares or the Conversion Shares is or will be subject to preemptive or other similar rights of any security holder of the Company. 
 3.06 Consents and Approvals. Except for (a) applicable requirements, if any, of the Securities Act and the rules and regulations promulgated
thereunder, state securities or “blue sky” laws and (b) filing of the Certificates of Designation with the Secretary of State of the State of Colorado (collectively, the “Approvals”), the execution and delivery by the
Company of this Agreement, and subject to Shareholder Approval and except as contemplated by Sections 5.02(b), 5.06 and 5.19, the issuance of any of the Shares, the performance by the Company of its obligations hereunder and the consummation by the
Company of the transactions contemplated hereby, including, without limitation, any Conversion, do not require the Company to obtain any consent, approval, clearance or action of, or make any filing, submission or registration with, or give any
notice to, any Governmental Authority or judicial authority. 
 3.07 Absence of Defaults and Conflicts. 
 a. The execution and delivery of this Agreement by the Company does not, and the fulfillment of the terms hereof and thereof by the Company, and the
issuance, sale and delivery of the Shares will not, (i) violate or conflict with the Company Charter Documents or the Subsidiary Charter Documents; (ii) result in a material breach of any of the terms, conditions or provisions of, or
constitute a material default (with or without the giving of notice or the passage of time (or both)) under, or result in a modification that is materially adverse to the Company of, or permit the acceleration of material rights under or termination
of, any material Contract, 

  

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license, permit or authorization of the Company; (iii) violate any law, ordinance, standard, judgment, rule or regulation of any court or federal, state
or foreign regulatory board or body or administrative agency having jurisdiction over the Company or over its properties or business; or (iv) result in the creation or imposition of any material lien, encumbrance, claim, security interest or
restriction whatsoever upon any of the material properties or assets of the Company. 
 b. The Company is not in default under or in
violation of (and no event has occurred and no condition exists which, upon notice or the passage of time (or both), would constitute a default under) (i) the Company Charter Documents or Subsidiary Charter Documents, (ii) any Contract of
the Company, (iii) any license, permit or authorization to which the Company is a party or by which it is bound or (iv) any order, writ, injunction or decree of any court or any Federal, state, municipal or other domestic or foreign
governmental department, commission, board, bureau, agency or instrumentality except, in the case of clause (ii), (iii) or (iv), for defaults or violations which would not be reasonably likely to have a Material Adverse Effect. 
 3.08 Reports and Financial Statements. 
 a.
The Company has furnished or made available (including for all purposes under this Agreement availability through the SEC’s website) to the Purchasers’ Representative true and complete copies of the Company’s (i) 2007 Form 10-K,
as filed with the SEC, (ii) proxy statements related to all meetings of its shareholders (whether annual or special) held since January 1, 2008, and (iii) all other reports of the Company filed with or registration statements with
respect to the Company’s securities declared effective by the SEC since January 1, 2008, except registration statements on Form S-8 relating to employee benefit plans, which are all the documents (other than preliminary material) that the
Company was required to file with the SEC since that date (the documents referred to in clauses (i) through (iii), together with all accompanying exhibits and all information incorporated therein by reference, being referred to herein
collectively as the “Company SEC Reports”). 
 b. The Company has timely made all filings and furnishings with the SEC
required of the Company pursuant to the Exchange Act during the 12 months preceding the date of this Agreement. As of their respective dates, the Company SEC Reports were duly filed or furnished with the SEC and complied in all material respects
with the requirements of the Sarbanes-Oxley Act, the Securities Act or the Exchange Act, as the case may be, and the rules and regulations promulgated by the SEC and the NASDAQ Stock Market thereunder applicable to such Company SEC Reports. Except
to the extent that information contained in any Company SEC Report filed or furnished with the SEC and made publicly available prior to the date of this Agreement (a “Filed Company SEC Report”) has been revised or superseded by a
later Filed Company SEC Report, as of their respective dates, none of the Filed Company SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. 
 c. The financial statements and the related
notes thereto of the Company and its consolidated subsidiaries included in the Company SEC Reports (i) comply in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and present
fairly the financial position of the Company and its consolidated subsidiaries as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified subject, in the case of unaudited statements,
to immaterial year-end audit adjustments; (ii) such financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods covered
thereby (except in each case as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP); and (iii) the other financial
information included in the Company SEC Reports has been derived from the accounting records of the Company and its consolidated subsidiaries and presents fairly the information shown thereby. 
  

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 3.09 Absence of Certain Changes or Developments. Except as disclosed in a reasonably apparent manner
in any Company SEC Report (collectively, the “SEC Disclosure”) and except for changes in capitalization contemplated by the Transaction Agreements, since December 31, 2007, there has not been (i) any change in the capital
stock, long-term debt, notes payable or current portion of long-term debt of the Company or any of its Subsidiaries, or (ii) any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of
capital stock, or (iii) any Material Adverse Effect. 
 3.10 Compliance with Laws. 
 a. Except as disclosed in the SEC Disclosure, since December 31, 2007, the Company has not been in violation of any foreign, federal, state or local
laws, ordinances, governmental rules or regulations to which it is subject, including without limitation laws or regulations relating to Environmental Laws or to occupational health and safety, except for violations that would not be reasonably
likely to have a Material Adverse Effect, no material expenditures are known to be or expected to be required in order to cause its current operations or properties to comply with any such laws, ordinances, governmental rules or regulations, and the
Company has received no complaints from any foreign, federal state or local agency or regulatory body alleging such material violations of any such laws and regulations. 
 b. The Company has all material licenses, permits, franchises or other governmental authorizations necessary for the ownership of its property and to the conduct of its business in the manner described in the SEC
Disclosure. Except as disclosed in the SEC Disclosure, the Company has not been finally denied any application for any such material licenses, permits, franchises or other governmental authorizations necessary to its business. There has not been,
and there is no proceeding pending, served against the Company or, to the Company’s knowledge, threatened, to suspend, revoke or limit any such licenses, permits, franchises or other governmental authorizations and, to the Company’s
knowledge, there is no circumstance that exists which with notice or the passage of time or both, will result in such revocation, suspension or limitation where such revocation, suspension or limitation would be reasonably likely to have a Material
Adverse Effect. 
 3.11 Litigation. Except as disclosed in the SEC Disclosure, there is no legal action, suit, arbitration or other
legal, administrative or other governmental investigation, inquiry or proceeding (whether federal, state, local or foreign) pending or, to the Company’s knowledge, threatened against or affecting the Company or any of its properties, assets or
business or any of its directors, trustees, officers or employees in such capacity, which would be reasonably likely to have a Material Adverse Effect. Except as disclosed in the SEC Disclosure, neither the Company nor, to the Company’s
knowledge, any of its directors, trustees, officers or employees in such capacity is subject to any order, writ, judgment, injunction, decree, determination or award of any court or of any governmental agency or instrumentality (whether federal,
state, local or foreign), which would be reasonably likely to have a Material Adverse Effect. 
 3.12 Employees; Company Benefit Plans.

 a. The Company is not engaged in any unfair labor practice or discriminatory employment practice and no complaint of any such practice
against the Company has been filed or, to the Company’s knowledge, threatened to be filed with or by the National Labor Relations Board, the Equal Employment Opportunity Commission or any other administrative agency, federal or state, that
regulates labor or employment practices, nor is any grievance filed or, to the Company’s knowledge, threatened to be filed, against the Company by any employee pursuant to any collective bargaining or other employment agreement to which the
Company is a party or is bound which, in any such case, would be reasonably likely to have a Material Adverse Effect. 
  

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 b. There are no pending or, to the Company’s knowledge, threatened strikes, lockouts, picketing,
slow downs, work stoppages or union organization activities with respect to the Company. To the Company’s knowledge, no officer or key employee, or group of key employees, intends to terminate their employment with the Company, nor does the
Company have a present intention to terminate the employment of any of the foregoing. 
 c. Except as would not reasonably be likely to have
a Material Adverse Effect: (i) the Company Benefit Plans are in compliance with all applicable requirements of ERISA, the Code, and other applicable laws and have been administered in accordance with their terms and such laws, and
(ii) each Company Benefit Plan that is intended to be qualified within the meaning of Section 401 of the Code has received a favorable determination letter as to its qualification or an opinion letter indicating that the prototype form of
the plan document does not, in and of itself, violate Section 401 of the Code and to the Company’s knowledge nothing has occurred that could adversely affect such qualification. Each Company Benefit Plan that is subject to
Section 409A of the Code has been operated in good-faith compliance with Section 409A of the Code in all material respects. 
 d.
Except as would not reasonably be likely to result in a Material Adverse Effect, there are no pending or, to the Company’s knowledge, threatened claims (in writing) and no pending or, to the Company’s knowledge, threatened (in writing)
litigation with respect to any Company Benefit Plan, other than ordinary and usual claims for benefits by participants and beneficiaries. 
 e. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will (i) result in any payment becoming due, or increase the amount of any compensation or benefits due, to any
current or former employee of the Company or with respect to any Company Benefit Plan; (ii) result in the acceleration of the time of payment or vesting of any such compensation or benefits; or (iii) result in the payment of any amount
that would, individually or in combination with any other such payment, not be deductible as a result of Section 280G of the Code. 
 3.13
Tax Matters. There are no material federal, state, county, local or foreign taxes due and payable (whether to taxing authorities or to other persons) by the Company or any of its Subsidiaries which have not been paid. The Company
and each of its Subsidiaries has duly and timely filed (except in cases where valid extensions have been obtained) all federal, state, county, local and foreign tax returns required to have been filed by it and there are in effect no waivers of
applicable statutes of limitations with respect to taxes for any year. All such tax returns are complete and accurate in all material respects. No material tax deficiency has been determined adversely to the Company or any of its Subsidiaries.
Neither the Company nor any of its Subsidiaries is currently subject to any tax audit of any kind nor is any such audit pending or, to the knowledge of the Company, threatened. Neither the Company nor any of its Subsidiaries has any current material
liability for taxes of any person (A) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law), (B) as a transferee or successor or (C) by contract. Neither the Company nor any of its
Subsidiaries is a party to, is bound by and has any obligation under any tax sharing or tax indemnity contract or similar arrangement. Neither the Company nor any of its Subsidiaries has been a party to a “reportable transaction,” as such
term is defined in Treasury Regulations Section 1.6011-4(b)(1) or to a transaction that is or is substantially similar to a “listed transaction,” as such term is defined in Treasury Regulations Section 1.6011-4(b)(2). The
provisions for taxes on the financial statements described in Section 3.08 are sufficient for the payment of all material accrued and unpaid federal, state, county, local and foreign taxes of the Company and 

  

 11 

 
any of its Subsidiaries (whether due to taxing authorities or to other persons) as of the respective dates of such financial statements. Since
December 31, 2007, the Company and its Subsidiaries have not incurred any liability for taxes outside the ordinary course of business consistent with past practice. All deficiencies asserted or assessments made with respect to material taxes of
the Company and its Subsidiaries as a result of any examinations have been fully paid. The Company is not, and has not been, a United States real property holding corporation, as defined in Section 897(c)(2) of the Code. 
 3.14 Intellectual Property. Each of Company and each of its Subsidiaries owns, possesses, or can acquire on reasonable terms, all Intellectual
Property necessary for the conduct of the Company’s and its Subsidiaries’ business as now conducted. Furthermore, except in each case where the failure of such statement to be true and correct would not reasonably be likely to have a
Material Adverse Effect, (a) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any such Intellectual Property; (b) there is no pending or, to the knowledge of the Company,
threatened, action, suit, claim or proceeding by others challenging the Company’s or any of its Subsidiaries’ or any of the Development Subsidiaries’ rights in or to any such Intellectual Property, and to the Company’s knowledge,
there are no facts which would form a reasonable basis for any such claim; (c) the Intellectual Property owned by the Company, its Subsidiaries and the Development Subsidiaries, and to the knowledge of the Company, the Intellectual Property
licensed to the Company, its Subsidiaries and the Development Subsidiaries, has not been adjudged invalid or unenforceable, in whole or in part, and there is no pending or to the Company’s knowledge, threatened action, suit, claim or proceeding
by others challenging the validity or scope of any such Intellectual Property, and to the Company’s knowledge, there are no facts which would form a reasonable basis for any such claim; (d) there is no pending or threatened action, suit,
claim or proceeding by others that the Company, its Subsidiaries or the Development Subsidiaries infringes, misappropriates or otherwise violates any Intellectual Property or other proprietary rights of others, neither the Company, its Subsidiaries
or the Development Subsidiaries has received any written notice of such claim and to the Company’s knowledge, there are no other facts which would form a reasonable basis for any such claim; and (e) to the Company’s knowledge, no
employee of the Company, its Subsidiaries or the Development Subsidiaries is in or has ever been in violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement,
non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment with the Company nor any of its Subsidiaries nor any of the
Development Subsidiaries or actions undertaken by the employee while employed with the Company, any of its Subsidiaries or any of the Development Subsidiaries. “Intellectual Property” shall mean all patents, patent applications,
trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, domain names, technology, know-how and other intellectual property. 
 3.15 Title to Real and Personal Property. The Company and its Subsidiaries have good and marketable title in fee simple to, or have valid rights to
lease or otherwise use, all items of real property and have good title or valid rights to lease or otherwise use all items of personal property that are material to the respective businesses of the Company and its Subsidiaries, in each case free and
clear of all liens, encumbrances, claims and defects and imperfections of title except those that (a) do not materially interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries or (b) would
not reasonably be likely, individually or in the aggregate, to have a Material Adverse Effect and except those for the payment of federal, state or other taxes, the payment of which is not delinquent. 
 3.16 Condition and Sufficiency of Properties. The property, assets and operations of the Company owned, leased or used by the Company are in good
operating condition and repair (ordinary wear and tear excepted), are adequate and sufficient for the Company’s business as now conducted and as presently contemplated to be conducted and comply with all applicable ordinances, regulations and
laws except where the failure to be in such condition or to comply would not reasonably be likely to have a Material Adverse Effect. 
  

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 3.17 Contracts. All agreements to which the Company or any Subsidiary is a party which are required
to have been filed by the Company since December 31, 2005 pursuant to applicable SEC rules and regulations have been filed by the Company with the SEC in material compliance with the requirements thereof. As of the date hereof, each Contract
filed as an exhibit to the 2007 Form 10-K, to the Quarterly Reports on Form 10-Q for the quarters ended March 31 or June 30, 2008 or to the Current Reports on Form 8-K filed by the Company with the SEC in 2008 (collectively, the
“Material Contracts”) is in full force and effect and is binding on the Company or such Subsidiary, as the case may be, and, to the Company’s knowledge, is binding upon the other parties thereto, in each case in accordance with
its terms, and neither the Company or such Subsidiary, as the case may be, nor, to the Company’s knowledge, any other party thereto is in breach of or default under any such agreement, which breaches or defaults would, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect. The Company has not received any written notice requesting the termination of any such agreements where such termination would reasonably be likely to have a Material Adverse Effect.

 3.18 Related Party Transactions. No relationship, direct or indirect, exists between or among the Company or a Subsidiary, on the one
hand, and the directors, officers, shareholders, customers or suppliers of the Company or a Subsidiary, on the other, that is required by the Exchange Act to be described in the Company SEC Reports and that is not so described therein. 

3.19 Investment Company Act. The Company is not required, and upon the issuance and sale of the Shares as contemplated hereunder, will not be
required to register as an “investment company” under the Investment Company Act of 1940, as amended. 
 3.20 Foreign Corrupt
Practices Act. Neither the Company, nor any Subsidiary, nor any Development Subsidiary nor, to the knowledge of the Company, any director, officer, agent, or employee acting on behalf of the Company, any Subsidiary or any Development
Subsidiary has (a) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (b) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (c) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (d) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful
payment. 
 3.21 Money Laundering Laws. The operations of the Company, its Subsidiaries and the Development Subsidiaries are and have
been conducted at all times in material compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency, in each case to the extent applicable to the Company, the Subsidiaries and the Development
Subsidiaries (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, any Subsidiary or any Development
Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened. 
 3.22 Compliance with
OFAC. None of the Company, any of its Subsidiaries, any of the Development Subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company, any of its Subsidiaries or any of the
Development Subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not directly or indirectly use the
proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC. 
  

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 3.23 Environmental Laws. Except as would not, singly or in the aggregate, reasonably be likely to
result in a Material Adverse Effect, (a) neither the Company nor any Subsidiary is in violation of any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or
administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances,
petroleum or petroleum products, asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials (collectively, “Environmental Laws”), (b) the Company and the Subsidiaries have all permits, authorizations and approvals required under any applicable Environmental Laws (except where the absence of such permits,
authorizations and approvals would not reasonably be likely to have a Material Adverse Effect) and are each in compliance with their requirements in all material respects, (c) there are no pending or, to the knowledge of the Company, threatened
administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, or proceedings or to the Company’s knowledge, investigation relating to any Environmental Law against the
Company or the Subsidiary and (d) to the knowledge of the Company, there are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private
party or governmental body or agency, against or affecting the Company or the Subsidiary relating to Hazardous Materials or any Environmental Laws. 
 3.24 Accounting Matters. 
 a. Ehrhardt Keefe Steiner & Hottman PC, who have certified certain financial
statements of the Company and its subsidiaries, is an independent registered public accounting firm with respect to the Company and its Subsidiaries within the applicable rules and regulations adopted by the SEC and the Public Accounting Oversight
Board (United States) and as required by the Securities Act. 
 b. The Company and its Subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s
management as appropriate to allow timely decisions regarding required disclosure. The Company and its Subsidiaries have carried out evaluations of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the
Exchange Act. 
 c. The Company and its Subsidiaries maintain systems of “internal control over financial reporting” (as defined in
Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar
functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including, but not limited to
internal accounting controls sufficient to 

  

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provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
Except as disclosed in the SEC Disclosure, there are no material weaknesses in the Company’s internal controls. The Company’s auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all
significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to materially adversely affect the Company’s ability to record, process, summarize and report
financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting. 
 3.25 Insider Trading. The Company has a written insider trading policy applicable to all officers and directors of the Company. 
 3.26 Registration Rights. No shareholder of the Company has any right to require the Company to register the sale of any securities owned by such
shareholder under the Securities Act in the registration statement(s) to be filed pursuant to this Agreement or the Registration Rights Agreement. Except as required pursuant to this Agreement or the Registration Rights Agreement, the Company is
currently not under any obligation, and has not granted any rights, to register under the Securities Act any of the Company’s currently outstanding securities or any of its securities that may hereafter be issued. 
 3.27 NASDAQ Compliance. The Company’s Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the NASDAQ
Capital Market (the “NASDAQ Stock Market”) under the ticker symbol “ADES.” Trading in the Common Stock has not been suspended and the Company has taken no action designed to, or which is reasonably likely to have
the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the NASDAQ Stock Market. The Company has not, in the 12 months preceding the date hereof, received written notice from the
NASDAQ Stock Market to the effect that the Company is not in material compliance with the listing or maintenance requirements thereof, and the Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in
material compliance with all such listing and maintenance requirements. 
 3.28 Form S-3 Eligibility. Assuming that such resale is
considered by the SEC to be a secondary offering by the Purchasers and not a primary offering by the Company, the Company is eligible to use Form S-3 to register the Registrable Securities (as such term is defined in the Registration Rights
Agreement) for resale by the Purchasers as contemplated by the Registration Rights Agreement, according to the eligibility requirements for the use of Form S-3 in transactions involving secondary offerings as set forth in General Instructions I.A,
II.B.3 and II.B.4(a)(3) of Form S-3, and to the Company’s knowledge, as of the date hereof, there exist no facts or circumstances that could reasonably be expected to prohibit or delay the filing or effectiveness of a registration statement on
Form S-3 covering the resale of the Registrable Securities. 
 3.29 Absence of Manipulation. Neither the Company nor, to the knowledge
of the Company, any Affiliate of the Company has taken, nor will the Company or, to the knowledge of the Company, any Affiliate take, directly or indirectly, any action which is designed to or which has constituted or which would be expected to
cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares. 
  

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 3.30 Insurance. The Company and its Subsidiaries maintain insurance of the types and in the amounts
as the Company has reasonably determined are adequate for their businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company and its Subsidiaries against theft, damage, destruction, acts of
vandalism and all other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect. Neither the Company nor any Subsidiary has (i) received written notice from any insurer or agent of
such insurer that material capital improvements or other material expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business. 
 3.31 Takeover Provisions. The Company does not have a shareholder rights plan. The Company and its Board of Directors have taken all necessary action in order to render inapplicable any control share acquisition or
business combination statute, shareholder rights plan or other anti-takeover provision under the Company Charter Documents or the laws of its state of incorporation that is or could reasonably be expected to be or become applicable to any of the
Purchasers as a result of the transactions contemplated hereby, including without limitation the purchase and ownership of the Securities hereunder. 
 3.32 Private Placement. Assuming the accuracy of the representations and warranties of each of the Purchasers contained in Article IV hereof, the offer, sale and issuance of the Shares will be exempt from the
registration requirements of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws.
Neither the Company nor any agent on its behalf has solicited or will solicit any offers to sell or has offered to sell or will offer to sell all or any part of the Shares to any Person or Persons, or otherwise has taken or will take any other
action, so as to bring the sale of such Shares by the Company within the registration provisions of the Securities Act or any state securities laws. 
 3.33 Vote Required. A quorum of the holders of the outstanding Common Stock, represented in person or by proxy, is necessary to hold a meeting of the Company’s shareholders to consider the issuance of the Shares in
accordance with the Company Charter Documents and applicable law, including without limitation, the requirements of NASD Rule 4350 (the “Shareholder Approval”), and a majority of the votes cast at such shareholder meeting by the
holders of the outstanding Common Stock, whether in person or by proxy, is required to approve the issuance of the Shares and any other matters for which approval of the Company’s shareholders is required in order to consummate the transactions
contemplated by this Agreement, in accordance with the Company Charter Documents and applicable law, including without limitation, the requirements of NASD Rule 4350. No other vote of the holders of any class or series of the Company’s
securities is necessary to approve the Transaction Agreements and the transactions contemplated hereby and thereby. 
 3.34 No Restrictions on
Subsidiaries. No Subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other
distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s properties or assets to the Company or any other
Subsidiary of the Company. 
 3.35 No Broker’s Fees. Neither the Company nor any of its Subsidiaries is a party to any contract,
agreement or understanding with any person that would give rise to a valid claim against the Company or any of its Subsidiaries or any Purchaser for a brokerage commission, finder’s fee or like payment in connection with the offering and sale
of the Shares. 
  

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 3.36 Margin Rules. Neither the issuance, sale and delivery of the Shares nor the application of the
proceeds thereof by the Company will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors. 
 3.37 Statistical and Market Data. Nothing has come to the attention of the Company’s officers or directors that has caused the Company to believe that the statistical and
market-related data included in the Company SEC Reports is not based on or derived from sources that are reliable and accurate in all material respects. 
 3.38 Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or to the Company’s knowledge any of the Company’s directors or officers, in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to
certifications. 
 3.39 Representations with Respect to the Development Subsidiaries. The representations and warranties of the Company
set forth in the Joint Development Agreement are incorporated by reference as if restated herein in their entirety and are true and correct as of the date hereof and as of the Closing Date (as defined in the Joint Development Agreement) of the Joint
Development Agreement (or, if made as of a specified date, as of such other date). For purposes of the representations and warranties set forth in Article III, closing of the transactions contemplated by the Joint Development Agreement shall be
deemed to occur on the day prior to the date hereof. 
 ARTICLE IV. 
 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 
 Each Purchaser severally for
itself, and not jointly with the other Purchasers, represents and warrants to the Company as of the date of this Agreement and as of the Closing Date (or, if made as of a specified date, as of such date) as follows: 
 4.01 Requisite Power and Authority. Such Purchaser has all necessary power and authority under all applicable provisions of law to execute and
deliver this Agreement and the Transaction Agreements and to consummate the transactions contemplated hereby and thereby. All action on such Purchaser’s part required for the lawful execution and delivery of this Agreement has been taken. This
Agreement has been duly authorized, executed and delivered by each Purchaser and constitutes the legally valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and general principles of equity. On the Closing Date, the Transaction Agreements (other than this
Agreement) to which a Purchaser is a party will have been duly authorized, executed and delivered by such Purchaser, and constitute legally valid and binding obligations of each Purchaser, enforceable against such Purchaser in accordance with their
terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity. 
  

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 4.02 Investment Representations. Such Purchaser understands that the Shares are “restricted
securities” and have not been registered under the Securities Act or any state securities laws. Such Purchaser also understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities
Act based in part upon such Purchaser’s representations contained in this Agreement. Such Purchaser hereby represents and warrants as follows: 
 a. It is acquiring the Shares for its own account for investment and not with a view towards the resale, transfer or distribution thereof, nor with any present intention of distributing the Shares or the Conversion Shares, but subject,
nevertheless, to any requirement of law that the disposition of such Purchaser’s property shall at all times be within such Purchaser’s control, and without prejudice to such Purchaser’s right at all times to sell or otherwise dispose
of all or any part of such securities under a registration under the Securities Act or under an exemption from said registration available under the Securities Act. 
 b. It has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Company as contemplated by this Agreement, and is able to bear
the economic risk of such investment for an indefinite period of time and is able to afford a complete loss of such investment. 
 c. It has
been furnished access to such information and documents as it has requested and has been afforded an opportunity to ask questions of and receive answers from representatives of the Company concerning the terms and conditions of this Agreement and
the purchase of the Shares contemplated hereby. 
 d. At the time of being offered the Shares, on the date hereof and on the Closing Date, it
is (or will be, as applicable) a “qualified institutional buyer” within the meaning of Rule 144A(a) of the Securities Act or an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act.

 e. Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the
Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement, including the registration statement filed by the Company with
the SEC (SEC File No. 333-143779) as a “shelf offering” on Form S-3, which was declared effective by the SEC on July 10, 2007 and withdrawn on September 19, 2008. 
 4.03 Securities Not Registered. Such Purchaser understands that the Shares, and Conversion Shares issuable upon the Conversion, must continue to be
held by such Purchaser unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration. The Purchaser understands that the exemptions from registration afforded by Rule 144 (the provisions of which
are known to it) promulgated under the Securities Act depend on the satisfaction of various conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited amounts. 
 4.04 No Conflict. The execution and delivery of the Transaction Agreements by such Purchaser and the consummation of the transactions contemplated
thereby will not conflict with or result in any violation of or default by such Purchaser (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss
of a material benefit under (a) any provision of such Purchaser’s organizational documents, (b) any material agreement or instrument, permit, franchise, or license of such Purchaser or (c) any judgment, order, statute, law,
ordinance, rule or regulations, applicable to such Purchaser or its respective properties or assets. 
 4.05 Consents. All consents,
approvals, orders and authorizations required on the part of such Purchaser in connection with the execution, delivery or performance of this Agreement and the consummation of the transactions contemplated herein have been obtained as of the date
hereof and are effective as of the Closing Date. The execution and delivery by each Purchaser of this Agreement, the performance by such Purchaser of its obligations hereunder and the consummation by such Purchaser of the transactions contemplated
hereby do not require such Purchaser to make any filing, submission or registration with, or give any notice to, any Governmental Authority or judicial authority. 
  

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 4.06 Short Sales and Confidentiality Prior to the Date Hereof. Other than consummating the
transactions contemplated hereunder, such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, during the period commencing from the time that such Purchaser first
received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder until the date hereof (“Discussion Time”)
(a) acquired, agreed to acquire (other than pursuant to this Agreement), offered for sale, sold, pledged or otherwise disposed of any Common Stock, (b) effected or agreed to effect any short sale as defined in Rule 200 of Regulation SHO
under the Exchange Act (“Short Sale”), whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to the Common Stock, granted any other
right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Common Stock or otherwise sought to hedge
its position in the Shares or (c) entered into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of any securities of the Company, whether any such
transaction described in clauses (a),(b) or (c) was or is to be settled by delivery of securities of the Company, other securities, cash or otherwise (each transaction described in clauses (b) and (c), a “Prohibited
Transaction”). Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have
no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the
portfolio manager that made the investment decision to purchase the Shares. 
 4.07 Adequate Funds. Each Purchaser has on the date
hereof and as of the Closing will have access to liquid capital or committed sources of capital sufficient to pay its Purchase Price for the Shares to be purchased by it pursuant to this Agreement. 
 ARTICLE V. 
 ADDITIONAL COVENANTS AND
AGREEMENTS OF THE PARTIES 
 5.01 Covenants Pending Closing. 
 a. The Company covenants and agrees that, between the date hereof and the earlier of (i) the Closing Date or (ii) the termination of this
Agreement pursuant to Section 6.03, except for such matters as are otherwise contemplated by the Transaction Agreements except as set forth in Schedule 5.01 or in connection with any transaction in accordance with or not prohibited by
Sections 5.02 and 5.20 and except for such matters as may be consented to by the Majority Purchasers in advance in writing, which consent may not be unreasonably withheld, delayed or conditioned, it will, and it will cause its Subsidiaries to:

  

	 	i.	conduct its business in the ordinary course consistent with past practice, 

  

	 	ii.	use commercially reasonable efforts to carry on its business in compliance with all applicable laws, ordinances, governmental rules and regulations, and 

  

	 	iii.	to the extent consistent with (ii), above, use commercially reasonable efforts to preserve intact its current business organization, keep available the services of its officers,
employees and consultants and preserve its relationships with customers, suppliers, licensors, licensees and distributors. 

  

 19 

 b. Without limiting the generality of the foregoing, except as set forth in Schedule 5.01 or in
connection with any transaction in accordance with or not prohibited by Sections 5.02 and 5.20, prior to the Closing the Company will not, and will cause its Subsidiaries not to, unless the prior written consent of the Majority Purchasers (which
shall not be unreasonably withheld, delayed or conditioned) has been obtained: 
  

	 	i.	amend any of the organizational documents of the Company or any Subsidiary thereof, or effect or be a party to any recapitalization, reclassification of shares, stock split, reverse
stock split or similar transaction; 

  

	 	ii.	consolidate or merge with or into any other entity or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the assets of the Company or any
Subsidiary to any person or group of persons; 

  

	 	iii.	purchase, acquire or agree to acquire (A) by merging or consolidating with, or by purchasing all or a substantial portion of the assets of, or by any other manner, any business
of any person or any division thereof, or (B) any assets or capital stock of any other person or entity, in either case for consideration in excess of $5 million (other than assets acquired in the ordinary course); 

  

	 	iv.	authorize for issuance, issue, sell, deliver or agree or commit to issue, sell or deliver any shares of its capital stock or other equity interests of any nature whatsoever (whether
through the issuance or granting of options, warrants, convertible or exchangeable securities, commitments, subscriptions, rights to purchase or otherwise), other than pursuant to outstanding Company Options, or amend any of the terms of any such
equity interests; 

  

	 	v.	(A) split, combine or reclassify any shares of the capital stock of or other ownership interests in the Company (or any Subsidiary thereof), (B) declare, set aside or pay any
dividend or other distribution (in stock or property or any combination thereof), or (C) redeem or otherwise acquire any capital stock or other ownership interest in the Company (or any Subsidiary thereof); 

  

	 	vi.	(A) cancel any indebtedness owed to the Company (or any Subsidiary thereof), (B) waive or assign any material claims or rights or (C) waive any material benefits of, or
agree to modify in any material respect, or, subject to the terms hereof, fail to enforce or consent to any matter with respect to which consent is required under, any confidentiality, standstill or similar contract to which the Company or any
Subsidiary thereof is a party; 

  

	 	vii.	sell, transfer or license to, any Person or adversely amend or modify any rights to any Intellectual Property that is material to the Company; 

  

	 	viii.	commence or settle any actual or threatened suit, action, investigation, arbitration, or proceeding (administrative or judicial) (each, a “Proceeding”) or pay,
discharge or satisfy any Proceeding that results in a material liability of the Company (or any Subsidiary thereof), other than (i) for the routine collection of bills for less than $500,000, or (ii) in such cases where it in good faith
determines that failure to commence a Proceeding would materially and adversely affect the Company, provided that Purchasers’ Representative is consulted in advance regarding the filing of such Proceeding; 

  

 20 

	 	ix.	incur any indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities or warrants or rights to acquire any debt securities of the Company
or guarantee any debt securities of other Persons in excess of $500,000 in the aggregate, except for trade indebtedness incurred in the ordinary course of business consistent with past practice, or enter into any derivative contracts;

  

	 	x.	make any loans, advances or capital contributions to, or investments in, any Person (other than to or in a Subsidiary or Development Subsidiary as expressly contemplated by this
Agreement or the Transaction Agreements or pursuant to any existing obligations) other than the advancement of trade credit to customers or expenses to employees in the ordinary course; 

  

	 	xi.	enter into any agreement with, or commitment or obligation to or from, any of its shareholders, officers or directors (or any of their respective affiliates), whether written or
oral, if such agreement, commitment or obligation would be required to be disclosed pursuant to Item 404 of SEC Regulation S-K; 

  

	 	xii.	enter into or engage in any line of business other than the Company’s, its Subsidiaries’ and the Development Subsidiaries’ businesses, respectively, as of the date
hereof; or 

  

	 	xiii.	authorize, recommend, propose or announce an intention to do any of the foregoing, or enter into any contract, agreement or arrangement to do any of the foregoing.

 c. The Company covenants and agrees that, between the date hereof and the earlier of (i) the Closing Date or
(ii) the termination of this Agreement pursuant to Section 6.03, except for (A) such matters as are otherwise contemplated by the Transaction Agreements, (B) as set forth in Schedule 5.01, (C) any transaction in
accordance with or not prohibited by Section 5.20 and (D) except for such matters as may be consented to by the Majority Purchasers in advance in writing, which consent may not be unreasonably withheld, delayed or conditioned, it will not
cause any Development Subsidiary to take any action prohibited by clause (b) above. With respect to any actions taken by the Development Subsidiaries, to the extent such actions have been authorized and approved in accordance with the
provisions of the Joint Development Agreement or the LLC Agreement, as applicable, such authorization or approval will be deemed to constitute consent of the Majority Purchasers to such action for purposes of this Section 5.01. 
 d. Pending the Closing, the Company will promptly advise the Purchasers’ Representative, and the Purchasers’ Representative shall promptly
advise the Company, of any action or event of which it becomes aware which has the effect of making materially incorrect any of its representations or warranties contained in this Agreement or which has the effect of rendering any of its covenants
contained in this Agreement incapable of performance in any material respect. The Company and each Purchaser shall use its respective reasonable best efforts to fulfill or obtain the fulfillment of the conditions to the Closing as promptly as
practicable. 
  

 21 

 5.02 Interim Securities Issuances. From and after the date hereof and prior to the Closing Date, the
Company may not enter into or consummate any transaction for the issuance, sale or disposition of equity securities (or options, rights or warrants to purchase, or securities convertible into or exchangeable for, such securities) representing fewer
than 1,000,000 shares of the Company’s common stock (the “Interim Securities”), other than (i) any equity securities (or options, rights or warrants to purchase, or securities convertible into or exchangeable for, such
securities) to employees, officers or directors of, or consultants or advisors to the Company pursuant to any benefit plan approved by the Board or the Compensation or Management Stock Committee of the Board and (ii) equity securities issued
upon the exchange, conversion or exercise of any securities outstanding on the date hereof or of any securities described in clause (i), except as follows: 
 a. The Company may issue, sell or dispose of, in one or more transactions, up to 250,938 Interim Securities to third parties and equity securities issued upon the exchange, conversion or exercise of such Interim
Securities. 
 b. The Company may issue, sell or dispose of, in one or more transactions, up to an additional 749,062 Interim Securities,
provided that: 
  

	 	i.	prior to consummating any such transaction or transactions, the Company shall have obtained, in conjunction with and on the same Proxy Statement through which the Shareholder
Approval is solicited pursuant to Section 5.11 hereof (but pursuant to a proposal or proposals separate from the proposal for Shareholder Approval), any vote of shareholders necessary for advance approval of the sale or sales and issuance or
issuances of such Interim Securities, any shareholder approval or approvals required in accordance with the Company Charter Documents and applicable law (including approvals required by the listing standards of the NASDAQ Capital Market and NASD
Rule 4350); and 

  

	 	ii.	prior to entering into or consummating any such transaction or transactions, the Company shall send written notice (the “Interim Issuance Notice”) to the
Purchasers’ Representative, which Interim Issuance Notice shall describe the terms and conditions of the Interim Securities, the number of Interim Securities proposed to be issued and sold and the proposed per share price (the “Interim
Issue Price”) of the Interim Securities; and 

  

	 	iii.	the Purchasers shall have the right to purchase either (A) the number of Interim Securities that would result in the Purchasers obtaining a 35% Proportionate Percentage,
determined on a pro forma basis assuming the issuance of the Interim Securities that the Company proposes to issue and the issuance of the Shares or (B) 100% of the Interim Securities proposed to be issued in any such transaction or
transactions, in either case at a purchase price equal to the Interim Issue Price and upon the terms and conditions set forth in the Interim Issuance Notice. 

 c. The right of the Purchasers to purchase the Interim Securities pursuant to Section 5.02(b) shall be exercisable by delivering written notice of
its exercise to the Company within five (5) Business Days of the receipt by the Purchasers’ Representative of the applicable Interim Issuance Notice, which notice shall state the amount of Interim Securities that the Purchasers elect to
purchase. Each Purchaser shall purchase the amount of Interim Securities that it has elected to purchase on the terms and conditions set forth in the Interim Issuance Notice. To the extent that the Company offers two or more securities in units, the
Purchasers must purchase such units as a whole and will not be given the opportunity to purchase only one of the securities making up such unit. Notwithstanding the foregoing, the Company shall not be required to offer or sell such Interim
Securities to a Purchaser if it would cause the Company to be in violation of applicable laws by virtue of such offer or sale. 
  

 22 

 d. The failure of the Purchasers to respond within the 5 Business Day period shall be deemed to be a
waiver of its rights under Section 5.02(b), but only with respect to the issuance described in the applicable Interim Issuance Notice. Such waiver or election by the Purchasers not to exercise its subscription rights under Section 5.02(b)
shall not affect its right (other than in respect of a reduction in its percentage holdings) as to any subsequent proposed issuance of Interim Securities. If the Purchasers fail to timely elect to purchase the Interim Securities pursuant to
Section 5.02(b), or elect to purchase less than 100% of such Interim Securities, the Company shall have the right to sell any such Interim Securities not purchased by the Purchasers during the 30 days following the expiration of the 5 Business
Day period specified above on terms and conditions that are not more favorable to the purchasers thereof than those offered to the Purchasers. Any sale of such securities by the Company without first giving the Purchasers the rights described in
Section 5.02(b) shall be void and of no force and effect. 
 e. If the Purchasers elect to exercise their right to purchase Interim
Securities pursuant to Section 5.02(b) hereof, then the closing of such transaction and issuance of such Interim Securities shall not occur until the Shareholder Approval shall have been obtained as contemplated by Section 5.11 of this
Agreement. 
 5.03 Further Assurances. The Company and each Purchaser shall execute such documents and other papers and take such
further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby. 
 5.04
No Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict or interfere in any material respect with the Company’s obligations to the Purchasers under the
Transaction Agreements. 
 5.05 Compliance with Laws. The Company will comply in all material respects with all applicable laws, rules,
regulations, orders and decrees of all governmental authorities. 
 5.06 Listing of Conversion Shares and Related Matters. Subject to
official notice of issuance, the Company shall use its reasonable best efforts to cause the Conversion Shares to be listed on the NASDAQ Capital Market no later than the Conversion Date. In addition, if the Company applies to have shares of its
Common Stock or other securities traded on any other principal stock exchange or market, the Company shall include in such application the Conversion Shares and will take such other reasonable action as is necessary to cause such Conversion Shares
to be listed on such exchange. The Company will use its reasonable best efforts to continue the listing and trading of its Common Stock on the NASDAQ Capital Market or the New York Stock Exchange and, in accordance, therewith, will use its best
efforts to comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of such market or exchange, as applicable. 
 5.07 Securities Law Transfer Restrictions; Lock-up. 
 a. Each Purchaser understands that,
except as provided in the Registration Rights Agreement, the Securities have not been registered under the Securities Act or any state securities laws. Accordingly, each Purchaser agrees that it will not sell, offer to sell, solicit offers to buy,
dispose of, loan, pledge or grant any right with respect to (collectively, a “Disposition”), the Securities, nor will such Purchaser engage in any hedging or other transaction which is designed to or could be reasonably expected to
lead to or result in a Disposition of Securities by such Purchaser or any other person or entity, unless: (i) the Securities are registered under 

  

 23 

 
the Securities Act; or (ii) such Purchaser shall have certified to the Company and the Company, after consultation with counsel, reasonably believes
that registration is not required under the Securities Act or any applicable state securities law due to the applicability of an exemption therefrom. Each Purchaser is aware of Rule 144 under the Securities Act and the restrictions imposed thereby
and agrees to comply with the volume and manner of sale limitations set forth in Rule 144 in connection with any Disposition regardless of whether such limitations are applicable. Each Purchaser acknowledges and agrees that no sales of the
Securities may be made under the Registration Statements and that the Securities are not transferable on the books of the Company unless the certificates submitted to the transfer agent representing the Securities is accompanied by a separate
Purchaser’s Certificate of Subsequent Sale in the form of Exhibit E hereto and executed by an officer of, or other authorized person designated by, such Purchaser. 
 b. Each Purchaser acknowledges that no action has been or will be taken in any jurisdiction outside the United States by the Company that would permit an
offering of the Shares, or possession or distribution of offering materials in connection with the issue of Shares, in any jurisdiction outside of the United States where action for that purpose is required. Each Purchaser outside the United States
will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Securities or has in its possession or distributes any offering material, in all cases at its own expense. 

c. Notwithstanding anything to the contrary herein, each Purchaser agrees that, without the prior written consent of the Company, it will not, during
the period commencing on the Closing Date and ending 180 days after the Closing Date, (1) offer, pledge, sell, announce the intention to sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, the Shares or any Common Stock issued upon Conversion of the Shares or (2) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the Shares or such Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Shares, Common
Stock or other securities, in cash or otherwise. Notwithstanding the foregoing, any Purchaser may transfer Shares, Common Stock or any security convertible into Shares or Common Stock (i) as a bona fide gift or gifts; (ii) as a
distribution to general or limited partners, stockholders or members of such Purchaser; (iii) if such Purchaser is a corporation, to an affiliate or affiliates of the corporation; (iv) by will or intestate succession to such
Purchaser’s immediate family or to a trust, the beneficiaries of which are exclusively such Purchaser’s or members of such Purchaser’s immediate family or (v) to an Affiliate of such Purchaser, in each case only if such transfer
is in compliance with all securities laws. 
 5.08 Legends. 
 a. Each certificate representing any of the Securities shall be endorsed with the legends set forth below, and each Purchaser covenants that, except to the extent such restrictions are waived by the Company, it shall
not transfer the Securities represented by any such certificate without complying with the restrictions on transfer described in this Agreement and the legends endorsed on such certificate: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED,
PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT AND, IF REQUESTED BY THE COMPANY, UPON A CERTIFICATION
REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID ACT.” 
  

 24 

 b. After the earlier of: (i) the effectiveness of any Registration Statement and receipt by the
Company of a Purchaser’s written confirmation that the Securities covered thereby will not be disposed of except in compliance with the prospectus delivery requirements of the Securities Act; or (ii) Rule 144(b)(1)(i) under the Securities
Act becoming available to a Purchaser, the Company shall, upon Purchaser’s written request, promptly cause certificates evidencing such Securities to be replaced with certificates that do not bear such restrictive legends. The Company’s
obligation to issue unlegended certificates pursuant to this Paragraph 5.08(b) shall be excused if: (i) the SEC promulgates any rule or interpretation expressly prohibiting removal of legends in such circumstances; (ii) the SEC or other
regulatory authority instructs the Company or its transfer agent not to remove such legends; or (iii) the SEC makes it a condition to the effectiveness of any Registration Statement that the Company continue to keep such legends in place.

 c. Notwithstanding the removal of legends as provided in Paragraph 5.08(b), until a Purchaser’s Securities are sold pursuant to a
Registration Statement or Rule 144(b)(1)(i) becomes available to such Purchaser, such Purchaser shall continue to hold such Securities in the form of a definitive stock certificate and shall not hold the same in street name or in book-entry form
with a securities depository. 
 5.09 Board Representation; Information Rights. 
 a. Series A and Series B Representatives. Immediately following the Closing Date provided that the Purchasers’ Representative has previously
designated such members and such members meet all applicable legal requirements and the rules and regulations of the SEC and NASDAQ Stock Market, the Board of Directors of the Company shall increase the size of its Board of Directors by, and shall
appoint, that number of Preferred Stock Directors (as defined in the Certificate of Designations) as determined pursuant to Section 6(b) of the Certificate of Designations. Subject to applicable law and the rules and regulations of the SEC and
the NASDAQ Stock Market, holders of the Series A Preferred Stock and Series B Preferred Stock, voting separately as a class at any special meeting of shareholders called for such purpose, at each annual meeting of shareholders and in any written
consent of shareholders, shall have the right to elect the Preferred Stock Directors pursuant to Section 6(b) of the Certificate of Designations. 
 b. Audit Committee Representation. Subject to applicable law and the rules and regulations of the SEC and NASDAQ Stock Market and provided that the Company’s Nominating and Governance Committee (or any
successor committee) reasonably determines that the designee is qualified to serve on the Company’s Audit Committee under the Company’s policies, for so long as the holders of the Preferred Stock are entitled to elect at least two
(2) Preferred Stock Directors, at least one (1) director elected by the Preferred Stock holders shall serve on the Company’s Audit Committee. 
 c. Applicable Procedures. The Preferred Stock Directors elected or appointed as provided herein shall serve until the next annual meeting for the election of such directors or until their respective successors
shall be elected and shall qualify. Any Preferred Stock Director may be removed with or without cause by, and shall not be removed other than by, the vote of the holders of a majority of the outstanding Shares, voting separately as a class, at a
meeting called for such purpose or by written consent in accordance with applicable law. If the office of any Preferred Stock Director becomes vacant by reason of death, resignation, retirement, disqualification or removal from office or otherwise,
the remaining Preferred Stock Directors may elect a successor, or, 

  

 25 

 
alternatively, the holders of a majority of the outstanding Shares, voting separately as a class, at a meeting called for such purpose or by written consent
in accordance with applicable law may elect a successor. Any such successor shall hold office for the unexpired term in respect of which such vacancy occurred. Upon any termination of the right of the holders of Shares to vote for and elect
Preferred Stock Directors as herein provided, the Preferred Stock Directors then serving on the Board of Directors may continue to hold their office for the remainder of their term. 
 d. Specific Performance. The Company and the Purchasers hereby declare that it is impossible to measure in money the damages which will accrue to
the parties hereto by the failure of any party to perform any of its obligations set forth in this Section 5.09. Therefore, the Purchasers shall have the right to specific performance of such obligations, and if the Purchasers shall institute
any action or proceeding to enforce the provisions hereof, the Company hereby waives the claim or defense that the party instituting such action or proceeding has an adequate remedy at law. 
 e. Common Stock Board Designees. If at any time, neither the Purchasers nor any of their respective Affiliates hold any Shares, but at such time
and for so long as the Purchasers’ Representative, or any of its Affiliates, own not less than 10% of the Company’s outstanding Common Stock, the Company will nominate and use its reasonable efforts to cause to be elected and cause to
remain as directors on the Board of Directors for the Company, that number of members of the Board of Directors equal to (i) the percentage of all outstanding shares of Common Stock held by such holders, provided, however, that
the number of shares of Common Stock deemed to be held by such holders for the purposes of this Section 5.09(e) shall be determined in accordance with and subject to the limitations of Section 6 of the Certificates of Designations,
multiplied by (ii) the total number of members of the Board of Directors following such election (rounded up to the nearest whole number if such calculation results in a fractional director that is 0.5 or greater, and rounded down to the
nearest whole number if such calculation results in a fractional director that is less than 0.5), but in no event more than two members, designated by the Purchasers’ Representative, provided that the Company’s Nominating and Governance
Committee (or any successor committee) reasonably determines that such designees are qualified to serve under the Company’s policies for nomination to the Board of Directors and applicable law and the rules and regulations of the SEC and the
NASDAQ Stock Market. 
 f. Books and Records. The Company shall provide the Purchasers with reasonable access to the books and records
of the Company and its Subsidiaries, including without limitation, financial data (including projections) and operating data covering each of such entities, their businesses, operation and financial performance (the “Books and
Records”). The Company shall, and shall cause its Subsidiaries to, provide the Purchasers with reasonable access to all Books and Records during regular business hours and allow the Purchasers to make copies and abstracts thereof. The
Purchasers shall have the right to consult from time to time with management of the Company and its Subsidiaries at their respective place of business regarding operating and financial matters. 
 g. No Compensation. No director designated pursuant to this Section 5.09 shall be entitled to any monetary or other compensation from the
Company in connection with his or her services as such. 
 5.10 Preemptive Rights. 
 a. If, within twelve (12) months after the Closing Date, the Company proposes to issue shares of Common Stock or securities convertible into or
exercisable or exchangeable for shares of Common Stock (collectively “New Securities”) for a per share price (the “Issue Price”) less than the then applicable conversion price for the Series A Preferred Stock or the
Series B Preferred Stock, as set forth in the Series A Certificate of Designations or the Series B Certificate of Designations as applicable, excluding (i) the 

  

 26 

 
issuance of equity securities to employees, officers or directors of, or consultants or advisors to the Company pursuant to any benefit plan approved by the
Board or the Compensation or Management Stock Committee of the Board; (ii) shares of Preferred Stock issued as dividends with respect to Preferred Stock; (iii) shares of Common Stock issued or issuable upon a Conversion or exchange of the
Shares; (iv) any equity securities issued as consideration in connection with an acquisition, merger, consolidation, restructuring, reorganization, or other change in capitalization by the Company; (v) any equity security issued in
connection with a collaboration, disposition or acquisition or assets, promotion, marketing, manufacturing or supply, and/or research and development, including without limitation pursuant to a license agreement, purchase agreement, supply
agreement, (co-)promotion agreement, manufacturing agreement, collaboration or other similar agreement related thereto; and (vi) equity securities issued upon the exchange, conversion or exercise of any securities outstanding on the date hereof
or of any securities described within any of the foregoing clauses (any such securities, the “Excluded New Securities”), then subject to applicable law and the rules and regulations of the SEC and the NASDAQ Stock Market:

 i. The Company shall send written notice (the “New Issuance Notice”) to the Purchasers’
Representative, which New Issuance Notice shall describe the terms and conditions of the New Securities, the number of New Securities proposed to be issued and the Issue Price of the New Securities; and 
 ii. The Purchasers shall have the right to purchase 100% of the New Securities at a purchase price equal to the Issue Price and upon the
terms and conditions set forth in the New Issuance Notice. The number of New Securities to be purchased by each Purchaser shall be determined by the Purchasers in their sole discretion. 
 b. Notwithstanding the provisions of Section 5.10(a), if, at any time following the Closing Date, the Company proposes to issue New Securities other
than Excluded New Securities, then, for so long as the Purchasers or their Affiliates collectively own (within the meaning of Rule 13d-3 under the Exchange Act and giving effect to the conversion of all outstanding Preferred Stock, including all
accrued and unpaid dividends (whether or not declared) thereon, into Common Stock at the then applicable conversion rate (whether or not then convertible)) at least twenty percent (20%) of the shares of Common Stock, then: 
 i. The Company shall send a New Issuance Notice to the Purchasers’ Representative, which New Issuance Notice shall describe the terms
and conditions of the New Securities, the number of New Securities proposed to be issued and the Issue Price of the New Securities; and 
 ii. Each Purchaser shall have the right to purchase up to their Proportionate Percentage of the New Securities at a purchase price equal to the Issue Price and upon the terms and conditions set forth in the New
Issuance Notice. For purposes of this Agreement, “Proportionate Percentage” shall be calculated by dividing (i) a number equal to the number of shares of Common Stock then owned by the Purchasers and their Affiliates (assuming
conversion of any shares of Preferred Stock then outstanding) by (ii) the sum of (A) the number of shares of Common Stock then outstanding and (B) the number of shares of Common Stock into which all then outstanding shares of
Preferred Stock are convertible. 
 c. The right of the Purchasers to purchase the New Securities pursuant to Section 5.10(a) or
5.10(b), as applicable, shall be exercisable by delivering written notice of its exercise to the Company within ten (10) Business Days of the receipt by the Purchasers’ Representative of the applicable New Issuance Notice, which notice
shall state the amount of New Securities that the Purchasers elect 

  

 27 

 
to purchase. Each Purchaser shall purchase the amount of New Securities that it has elected to purchase on the terms and conditions set forth in the New
Issuance Notice. To the extent that the Company offers two or more securities in units, the Purchasers must purchase such units as a whole and will not be given the opportunity to purchase only one of the securities making up such unit.
Notwithstanding the foregoing, the Company shall not be required to offer or sell such New Securities to a Purchaser if it would cause the Company to be in violation of applicable laws by virtue of such offer or sale. 
 d. The failure of the Purchasers to respond within the 10 Business Day period shall be deemed to be a waiver of its rights under this Section 5.10,
but only with respect to the issuance described in the applicable New Issuance Notice. Such waiver or election by the Purchasers not to exercise its subscription rights under this Section 5.10 shall not affect its right (other than in respect
of a reduction in its percentage holdings) as to any subsequent proposed issuance. If the Purchasers fail to timely elect to purchase the New Securities pursuant to clause (a) of this Section, or elect to purchase less than 100% of such New
Securities, the Company shall have the right to sell any such New Securities not purchased by the Purchasers during the 180 days following the expiration of the 10 Business Day period specified above on terms and conditions that are not more
favorable to the purchasers thereof than those offered to the Purchasers. Any sale of such securities by the Company without first giving the Purchasers the rights described in this Section 5.10 shall be void and of no force and effect.

 e. The Company and the Purchasers hereby declare that it is impossible to measure in money the damages which will accrue to the parties
hereto by reason of the failure of any party to perform any of its obligations set forth in this Section 5.10. Therefore, the Company and the Purchasers shall have the right to specific performance of such obligations, and if any party hereto
shall institute any action or proceeding to enforce the provisions hereof, each of the Company and the Purchasers hereby waive the claim or defense that the party instituting such action or proceeding has an adequate remedy at law. 
 5.11 Consents and Approvals; Proxy Statement. 
 a. From and after the date hereof, each of the Company and each Purchaser shall use its reasonable best efforts to obtain as promptly as practicable any consent or approval of any Person, including any regulatory authority, required in
connection with the transactions contemplated hereby. 
 b. From and after the date hereof, the Company shall use its reasonable best efforts
to obtain any vote of shareholders necessary for approval of the issuance of the Shares and any other matters for which approval of the Company’s shareholders is required in order to consummate the transactions contemplated by this Agreement,
in accordance with the Company Charter Documents and applicable law, including any shareholder approvals required by the listing standards of the NASDAQ Capital Market and NASD Rule 4350 (“Shareholder Approval”). In furtherance of
the foregoing statement, the Company shall prepare and use its reasonable efforts to promptly file with the SEC and to have cleared by the SEC, a preliminary proxy statement, and as soon as practicable thereafter (subject to applicable waiting
periods under the Exchange Act, review by the SEC and appropriate responses to such review or as required by the Company Charter Documents and applicable law) file with the SEC and promptly thereafter mail a definitive proxy statement to the
Company’s shareholders (the “Proxy Statement”). The Proxy Statement shall contain the recommendation of the Board, subject to Section 5.20 and their fiduciary obligations under applicable law (as determined in good faith
by the Company’s Board after consultation with the Company’s outside counsel) (the “Board’s Fiduciary Obligations”), in favor of Shareholder Approval. The Purchasers’ Representative will be given a reasonable
opportunity to review and comment on drafts of the Proxy Statement and the Company will use its reasonable efforts to accept comments thereto given by Purchasers’ Representative and its representatives, and the Purchasers’ Representative
shall promptly furnish in writing to the Company such information relating to the Purchasers and their investment in the Company as the Company may reasonably request for inclusion in the Proxy Statement, which 

  

 28 

 
information shall be true and correct in all material respects. The Company shall use its reasonable best efforts to take all action necessary in accordance
with applicable law and the Company Charter Documents to convene a meeting of the Company’s shareholders within 60 days after the filing of the definitive proxy statement. Subject to Section 5.20 and to the extent consistent with the
Board’s Fiduciary Obligations, the Company shall use its reasonable efforts to solicit from the Company’s shareholders proxies in favor of the issuance of the Shares and any other matters for which approval of the Company’s
shareholders is required in order to consummate the transactions contemplated by this Agreement and shall take all other action reasonably necessary to secure Shareholder Approval. Notwithstanding the foregoing, the Company shall be deemed to have
complied with the preceding sentence if the Company convenes on or before January 31, 2009 a meeting of its shareholders in accordance with the provisions of this Section for the purpose of securing Shareholder Approval. The Company has advised
the Purchasers that it may solicit, as a proposal or proposals in the Proxy Statement separate from the proposal for Shareholder Approval and in accordance with Section 5.02 hereof, approval of its shareholders for additional equity financings,
including possibly the offer and sale of additional equity securities to the Purchasers or their Affiliates, and so long as any such additional equity financing does not constitute an Acquisition Proposal, the Purchasers agree that the Company may
do so without such proposal(s) or solicitation, in itself, being a breach or violation of this Agreement. Except as permitted by Section 5.20, (i) the Board of Directors of the Company shall recommend that the Company’s shareholders
vote in favor of the Shareholder Approval, and (ii) neither the Company’s Board of Directors nor any committee thereof shall withdraw, amend or modify, or propose or resolve to withdraw, amend or modify in a manner adverse to Purchasers,
the recommendation of the Company’s Board of Directors that the Company’s shareholders vote in favor of the Shareholder Approval (any such action or any such resolution or agreement to take such action being referred to herein as an
“Adverse Recommendation Change”). 
 c. The Company and the Purchasers hereby declare that it is impossible to measure in
money the damages which will accrue to the parties hereto by reason of the failure of any party to perform any of its obligations set forth in this Section 5.11. Therefore, the Purchasers shall have the right to specific performance of such
obligations, and if the Purchasers shall institute any action or proceeding to enforce the provisions hereof, the Company hereby waives the claim or defense that the party instituting such action or proceeding has an adequate remedy at law.

 5.12 Use of Proceeds. The net proceeds received by the Company from the issuance and sale of the Shares shall be used exclusively by
the Company to finance the Company’s required equity contributions to the Red River Project to be jointly developed by the Company and the Purchasers; provided, however, that the Company may invest such proceeds in Permitted Investments
until required to be contributed to the Red River Project pursuant to the LLC Agreement and this Section 5.12 shall terminate automatically upon the date of (a) any ADA-ES Election Notice or ECP Election Notice pursuant to Section 3.6
of the LLC Agreement, (b) any Funding Stop Notice pursuant to Section 3.7 of the LLC Agreement, (c) any buy-sell notice under the LLC Agreement pursuant to Section 10.7 thereof, (d) any Default Notice from the Company
pursuant to Section 12.2 of the LLC Agreement, or (e) any termination of the LLC Agreement pursuant to Article XIII thereof. For purposes hereof, the term “Permitted Investments” shall mean the following investments so
long as they have maturities of ninety (90) days or less: (i) obligations issued or guaranteed by the United States or by any person controlled or supervised by or acting as an instrumentality of the United States or by any person
controlled or supervised by or acting as an instrumentality of the United States pursuant to authority granted by Congress; (ii) obligations issued or guaranteed by any state or political subdivision thereof rated either AAA or higher, or MIG 1
or higher, by Moody’s Investors Service, Inc. (“Moody’s”) or AAA or higher, or an equivalent, by Standard & Poor’s Corporation (“Standard & Poor’s”), both of New York, New York,
or their successors; (iii) commercial or finance paper which is rated either Prime-1 or higher or an equivalent by Moody’s or A-1 or higher or an equivalent by Standard & Poor’s or their successors; and (iv) certificates
of deposit or time deposits of banks or trust companies, organized under the laws of the United States and having minimum equity of $10,000,000,000. 
  

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 5.13 Takeover Statute. If any Takeover Statute shall become applicable to the transactions contemplated
hereby, including without limitation any takeover provision under the laws of the State of Colorado, the Company and the members of the Board shall, subject to Section 5.20 and to the extent consistent with their fiduciary duties, grant such
approvals and take such actions as are necessary so that the transactions contemplated hereby may be consummated as promptly as practicable on the terms contemplated hereby and otherwise use their reasonable best efforts to act to eliminate or
minimize the effects of such statute or regulation on the transactions contemplated hereby and the ownership of Shares or Conversion Shares by the Purchasers. 
 5.14 Tax Covenants. The Purchasers and the Company agree not to treat the Shares as “preferred stock” within the meaning of Treasury Regulation Section 1.305-5 for United States income tax purposes, and based
upon the terms of the Shares as of the Closing Date, the Company shall report dividend income for federal, and any applicable state and local income tax purposes to the Purchasers solely to the extent that cash dividends are paid on the Shares.
Unless otherwise required by law, neither the Company nor the Purchasers shall take any position contrary to the foregoing on any tax return. Notwithstanding the foregoing, neither the Purchasers nor the Company shall be required to take any action
pursuant to this Section 5.14 if doing so would result in an income tax position that would fail to meet the more likely than not standard, based upon advice of the Company’s tax advisers. 
 5.15 Confidentiality. 
 a. Each Purchaser
understands that any information, other than the SEC Documents, provided to such Purchaser by the Company, including, without limitation, the existence and nature of all discussions and presentations, if any, regarding this offering and the
Transaction Agreements, is strictly confidential and proprietary to the Company and was and is being submitted to such Purchaser solely for such Purchaser’s confidential use in connection with its investment decision regarding the Shares. Each
Purchaser agrees to use such information for the sole purpose of evaluating a possible investment in the Shares and such Purchaser hereby acknowledges that it is prohibited from reproducing or distributing such information, the Transaction
Agreements, or any other offering materials, in whole or in part, or divulging or discussing any of their contents except for use internally and by its legal counsel and except as required by law or legal process. Each Purchaser understands that the
federal securities laws prohibit any person who possesses material nonpublic information about a company from trading in securities of such company. 
 b. Should any Purchaser be advised by its counsel that such disclosure or delivery is required by law, regulation or judicial or administrative order, to the extent reasonably practicable, such Purchaser shall give
the Company prior notice of the request or requirement so that the Company may seek a protective order or other appropriate remedy; provided, however, that in the absence of such protective order, such Purchaser or any of its representatives may
disclose or deliver any information or other material disclosed to or received by it upon the advice of counsel provided such Purchaser exercises reasonable efforts at the Company’s expense, to protect the confidentiality of the information. It
being understood that each Purchaser makes investments in the ordinary course of business in various Persons and, as a result of such investments, such Persons may be deemed to be affiliated or associated with such Purchaser, and to the extent that
such Purchaser does not make such information available to such Persons, this Section 5.15 shall not apply to such Persons. 
  

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 c. In the event of any termination of this Agreement prior to the Closing Date, each Purchaser shall
return to the Company or destroy all confidential material furnished to such Purchaser or its officers, members, employees, agents, counsel, accountants, advisors and other authorized representatives in connection with this transaction except that
the Preferred Stock Directors and the Purchasers’ Representative may retain a copy of such confidential material if required by law, regulation or internal compliance procedures. 
 5.16 Lost, etc. Certificates Evidencing Shares; Exchange. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any certificate evidencing
any Shares or Conversion Shares owned by any Purchaser, and (in the case of loss, theft or destruction) of an unsecured indemnity satisfactory to the Company, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of such certificate, if mutilated, the Company will make and deliver in lieu of such certificate a new certificate of like tenor and for the number of securities evidenced by such certificate which remain outstanding.
Each Purchaser’s agreement of indemnity shall constitute indemnity satisfactory to the Company for purposes of this Section 5.16. Upon surrender of any certificate representing any Shares or Conversion Shares, for exchange at the office of
the Company, the Company at its expense will cause to be issued in exchange therefor new certificates in such denomination or denominations as may be requested for the same aggregate number of Shares or Conversion Shares represented by the
certificate so surrendered and registered as such holder may request. The Company will also pay the cost of all deliveries of certificates for such Shares or Conversion Shares to the office of such Purchaser (including the cost of insurance against
loss or theft in an amount satisfactory to the holders) upon any exchange provided for in this Section 5.16. 
 5.17 Securities Law Disclosure;
Publicity. The Company shall, at or prior to 8:30 a.m., Eastern Time, on the first day following the date of this Agreement on which trading occurs on the NASDAQ Stock Market, issue a press release reasonably acceptable to the
Purchasers’ Representative (assuming the Purchasers’ Representative has timely responded to any request for review in order to enable the Company to meet such deadline) disclosing the transactions contemplated hereby. No later than the
fourth Business Day after the signing of this Agreement, the Company shall file a Current Report on Form 8-K with the SEC (the “8-K Filing”) describing the transactions contemplated hereby, in the form required by the Exchange Act.
The Company shall file this Agreement as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 or if it so chooses, as an exhibit to the 8-K Filing. Thereafter, the Company shall timely file any
filings and notices required by the SEC or the NASD with respect to the transactions contemplated hereby. The Company and the Purchasers’ Representative shall consult with each other in issuing any other press releases or statements made with
the intent of widespread public dissemination with respect to the transactions contemplated hereby, and none of the Company or any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of any Purchaser, or without the prior consent the Majority Purchasers, with respect to any press release of the Company, in each case which consent shall not unreasonably be withheld, delayed or
conditioned and except to the extent such press release or disclosure is required by law, SEC regulations or forms or NASD regulations, in which case the disclosing party shall use its reasonable efforts to provide the other party with prior notice
of such disclosure. In furtherance of the foregoing, but not in limitation thereof, the parties acknowledge and agree that either party shall be entitled to name both the other party and the Devco in any private conference or presentation, including
marketing materials to prospective investors in the case of ECP and to respond to questions (even in public conferences or presentations) regarding such Person, based on information already in the public domain. 
 5.18 Insurance. The Company will use its reasonable best efforts to maintain insurance, including without limitation directors and officers
insurance, with responsible and reputable insurance companies or associations in such amounts and covering such risks as the Company reasonably determines is adequate for the conduct of its business and the value of its property. For purposes of
clarity, the 

  

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parties acknowledge and agree that the Company shall not be required to expand its insurance coverage beyond those risk areas insured by the Company as of
the date hereof and that the Company shall not be required to maintain its current level of insurance coverage with respect to any area of risk if the Company has determined that such level is no longer necessary or appropriate. 
 5.19 HSR Filing. If required and at the expense of Devco, the Company and each required Purchaser shall (i) as soon as practicable after the date of
the Conversion Notice or Company Conversion Notice (as such terms are defined in the Certificates of Designations), as applicable, but in no event later than 20 days following the date of the Conversion, file Notification and Report Forms under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) with the Federal Trade Commission relating to the transaction contemplated by this Agreement, (ii) use their reasonable best efforts to respond as
promptly as practicable to all inquiries received from the Federal Trade Commission for additional information or documentation and (iii) request that the waiting period under the HSR Act be terminated early. 
 5.20 No Solicitation. 
 a. After the date
hereof and prior to the Closing or earlier termination of this Agreement, the Company agrees that neither it nor any of its Subsidiaries nor any of the officers and directors of it or its Subsidiaries shall, and that it shall not permit its or its
Subsidiaries’ officers, directors, employees, agents or representatives (including any investment bankers, attorneys, accountants or other advisors) (collectively, “Representatives”) to (and shall not authorize any of them to),
directly or indirectly: (i) solicit, initiate, encourage or knowingly facilitate any inquiries with respect to, or the making, submission or announcement of, any Acquisition Proposal; (ii) participate in any discussions or negotiations
regarding any Acquisition Proposal, or furnish to any Person any nonpublic information with respect to the Company in connection with such Acquisition Proposal, except to notify such Person of the existence of this Section 5.20;
(iii) approve, endorse or recommend any Acquisition Proposal; or (iv) enter into any letter of intent or similar document or any contract or understanding contemplating or otherwise relating to any Acquisition Proposal or transaction
contemplated thereby, except in the case of clauses (ii), (iii) and (iv) to the extent specifically permitted pursuant to Section 5.20(b). Notwithstanding the foregoing, clauses (a)(i) and (a)(ii) shall not apply during the period of
time after an Other Devco Member has provided the Company an ECP Funding Stop Notice (as defined in the LLC Agreement) pursuant to Section 3.7 of the LLC Agreement and during which the parties to the LLC Agreement are negotiating to determine
whether to waive the applicable Funding Condition (as defined in the LLC Agreement) or to amend the LLC Agreement pursuant to such Section. The Company and its Subsidiaries will immediately cease, and shall cause each of their respective
Representatives to cease, any and all existing activities, discussions or negotiations with any third parties conducted heretofore with respect to, or that could reasonably be expected to lead to or contemplate the possibility of, any Acquisition
Proposal except to advise such third parties of the existence of the provisions of this Section. Notwithstanding anything herein to the contrary, the Company may attend and make presentations at investor conferences and hold one-on-one discussions
with shareholders and analysts. The Company shall, with respect to each Person which has within the 12 months prior to the date of this Agreement executed a confidentiality agreement with the Company or any of its Subsidiaries or any of its or their
Representatives with respect to such Person’s consideration of a possible Acquisition Proposal, exercise any rights it has to require such Person to immediately return or destroy (which destruction shall be certified in writing by such Person
to the Company) all confidential information heretofore furnished by the Company or any of its Subsidiaries or any of its or their Representatives to such Person or any of its Subsidiaries or any of its or their Representatives. 
  

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 b. Notwithstanding anything in Section 5.20(a) to the contrary, if at any time prior to the
Shareholder Approval, (i) the Company receives an Acquisition Proposal that the Board of Directors of the Company determines in good faith to be bona fide; (ii) such proposal did not result from a breach by the Company of this
Section 5.20; (iii) the Board of Directors of the Company determines in good faith, after consultation with its outside legal counsel and a financial advisor of nationally recognized reputation, that such Acquisition Proposal constitutes
or could reasonably be expected to result in a Superior Proposal; and (iv) the Board of Directors of the Company determines in good faith, after consultation with its outside legal counsel and a financial advisor of nationally recognized
reputation, that the failure to do so would result in a breach of its fiduciary duties to the shareholders of the Company under applicable Law, then the Company may (A) furnish information with respect to the Company to the Person making such
Acquisition Proposal and (B) engage in discussions or negotiations with the Person making such Acquisition Proposal regarding such Acquisition Proposal; provided that the Company (x) will not, and will not allow its Subsidiaries or
its or their Representatives to, disclose any non-public information to such Person without first entering into a confidentiality agreement that contains terms no less favorable in the aggregate to the Company than those contained in the
Confidentiality Agreement between the Company and ECP, dated as of October 30, 2007 and (y) will provide to the Purchasers’ Representative any material non-public information provided to such other Person which was not previously
provided to the Purchasers’ Representative. 
 c. The Company shall as promptly as reasonably practicable (and, in any event, within one
Business Day) provide oral and written notice to the Purchasers’ Representative of receipt by the Company of any Acquisition Proposal or any request for nonpublic information or inquiry which could reasonably be expected to lead to any
Acquisition Proposal, and the material terms and conditions of any such Acquisition Proposal, request or inquiry, and the identity of the person making any such Acquisition Proposal, request or inquiry, and shall keep the Purchasers’
Representative reasonably informed of any material modifications or material developments (including amendments or proposed amendments) with respect to such Acquisition Proposal, request or inquiry, including without limitation, promptly providing
the Purchasers’ Representative with copies of all written Acquisition Proposals, request or inquiries, including draft agreements or term sheets. 
 d. Notwithstanding anything in Section 5.20(a) to the contrary, at any time prior to the Shareholder Approval, the Board of Directors of the Company may, in response to a Superior Proposal, effect an Adverse
Recommendation Change, provided that the Board of Directors of the Company determines in good faith, after consultation with its outside legal counsel and a financial advisor of nationally recognized reputation, that the failure to do so
would result in a breach of its fiduciary duties to the shareholders of the Company under applicable Law, and provided, further, that the Board of Directors of the Company may not effect such an Adverse Recommendation Change unless
(i) such Superior Proposal did not result from a breach by the Company of this Section 5.20; (ii) the Company has complied in all respects with this Section 5.20, including Section 5.20(c), (iii) the Board of Directors
shall have first provided prior written notice to the Purchasers’ Representative (an “Adverse Change Notice”) that it is prepared to effect an Adverse Recommendation Change in response to a Superior Proposal, which notice shall
attach the most current version of any written agreement relating to the transaction that constitutes such Superior Proposal, and (iv) Purchasers do not make, within five business days after the receipt of such notice, a proposal that would, in
the reasonable good faith judgment of the Board of Directors of the Company (after consultation with a financial advisor of national reputation and outside legal counsel), cause the offer previously constituting a Superior Proposal to no longer
constitute a Superior Proposal. The Company agrees that, during the five business day period prior to its effecting an Adverse Recommendation Change, the Company and its officers, directors and representatives shall negotiate in good faith with the
Purchasers’ Representative and its officers, directors, and representatives regarding any revisions to the terms of the transaction contemplated by this Agreement proposed by the Purchasers’ Representative. 
  

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 e. Nothing contained in this Section 5.20 shall prohibit the Company or the Board of Directors of
the Company from complying with its disclosure obligations under U.S. federal or state Law, including taking and disclosing to the shareholders of the Company a position contemplated by Rule 14e-2(a) and Rule 14d-9 promulgated under the Exchange Act
(or any similar communication to shareholders); provided that any public disclosure other than a “stop-look-and-listen” communication to the shareholders of the Company pursuant to Rule 14d-9(f) promulgated under the Exchange Act
(or any similar communications to the shareholders of the Company) shall be deemed to be an Adverse Recommendation Change unless such other public disclosure contains therein an express statement that the Board of Directors of the Company
(i) rejects the applicable Acquisition Proposal or (ii) reaffirms its recommendation that the Company’s shareholders vote in favor of the Shareholder Approval. 
 f. Definitions. For purposes of this Agreement: 
 “Acquisition Proposal” means (i) any proposal or offer, other than a proposal by or on behalf of any Purchasers or any Affiliate thereof, (A) relating to a merger, reorganization,
consolidation, dissolution, tender offer, exchange offer, recapitalization, liquidation, dissolution, joint venture (other than in the ordinary course of the Company’s business), share exchange or other business combination involving the
Company or any of its Subsidiaries, (B) for the issuance, sale or disposition of securities (or options, rights or warrants to purchase, or securities convertible into or exchangeable for, such securities) representing 13% or more of the voting
power of the Company or more than 1,000,000 shares of the Company’s common stock, (C) to acquire in any manner, directly or indirectly, in a single transaction or a series of related transactions, beneficial ownership, or the right to
acquire beneficial ownership or any group shall have been formed which beneficially owns or has the right to acquire beneficial ownership of, 13% or more of the capital stock of the Company or more than 1,000,000 shares of the Company’s common
stock, or (D) to acquire, lease or license, directly or indirectly, in a single transaction or a series of related transactions, assets of the Company having a fair market value equal to 13% or more of the Company’s consolidated assets,
other than the transactions contemplated by this Agreement and other than an Acquisition Proposal consummated prior to the date hereof or (ii) any written inquiry with respect to, any oral inquiry to which the Company or its representatives
have responded with respect to, or any other oral inquiry that might reasonably be expected to lead to, any proposal or offer described in the foregoing clause (i). 
 “Superior Proposal” means any unsolicited, bona fide written proposal made by a third party to acquire, directly or indirectly, pursuant to a tender offer, exchange offer, merger, consolidation or
other business combination, all or substantially all of the assets of the Company (on a consolidated basis) or all of the total outstanding voting securities of the Company, which the Company’s Board of Directors determines in its good faith
judgment (after consultation with the Company’s outside counsel and nationally recognized financial advisor), to be (i) on terms more favorable to the holders of the Company’s common stock from a financial point of view than the
transactions contemplated by this Agreement taking into account all the terms and conditions of, and all legal, financial, regulatory and other aspects of (including the party making such proposal), such proposal and this Agreement (including any
alteration to the terms of this Agreement agreed to in writing by Purchasers), taking into account, among other matters, all legal, financial, regulatory and other aspects of such offer and the Person making such offer, (ii) reasonably likely
to be completed on the terms proposed, taking into account all financial, regulatory, legal and other aspects of such proposal and (iii) is not subject to a financing contingency. 
 5.21 Prohibited Transactions. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding
with it will execute or enter into any Prohibited Transaction during the period commencing at the Discussion Time and ending at the time that the shares of Common Stock underlying the Shares are fully 

  

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registered or freely tradable in accordance with Rule 144. Each Purchaser severally and not jointly with any other Purchaser understands and acknowledges,
and agrees, to act in a manner that will not violate the positions of the SEC as set forth in Item 65, Section A, of the Manual of Publicly Available Telephone Interpretations, dated July 1997, compiled by the Office of Chief Counsel, Division
of Corporation Finance. Subject to the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no
direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager
that made the investment decision to purchase the Shares covered by this Agreement. 
 ARTICLE VI. 
 CLOSING CONDITIONS 
 6.01 Conditions to
the Obligation of the Purchasers to Consummate the Closing. Each Purchaser’s obligations to purchase the Shares at Closing shall be subject to the performance by the Company of its agreements theretofore to be performed hereunder and to
the satisfaction (or waiver by the Majority Purchasers), prior thereto or concurrently therewith, of the following further conditions: 
 a.
The representations and warranties of the Company contained in Article III of this Agreement shall be true on and as of the Closing Date (or, if made as of a specified date, as of such other date) in all material respects (except for such
representations and warranties that are qualified as to materiality or Material Adverse Effect, which shall be true in all respects) as though such representations and warranties were made at and as of such date; 
 b. The Company shall have performed and complied in all material respects with all agreements, covenants and conditions contained in this Agreement which
are required to be performed or complied with by the Company prior to or on the Closing Date; 
 c. The Company shall have obtained any and
all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Shares and the consummation of the other transactions contemplated herein to be consummated on or prior to the
Closing Date, including the receipt of any and all consents required under any material contracts of the Company and any and all required shareholder and regulatory approvals (including any required approvals in accordance with NASDAQ Marketplace
Rules including Rules 4350(i) and 4351), all of which shall be in full force and effect; 
 d. No proceeding challenging this Agreement or
the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted by any Person other than a Purchaser or Affiliate thereof before any court, arbitrator or governmental body,
agency or official and shall be pending; 
 e. No development shall have occurred in any Existing Action or Proceeding (as defined in the
Joint Development Agreement) that is, or that could reasonably be expected to be (in the reasonable judgment of the Purchasers’ Representative), materially adverse to the assets, properties, liabilities, existing or planned operations,
ownership, prospects or condition (financial or otherwise) of the Red River Project; 
 f. The purchase of and payment for the Shares by the
Purchasers shall not be prohibited by any law or governmental order or regulation, and all necessary consents, approvals, licenses, permits, orders and authorizations of, or registrations, declarations and filings with, any governmental or
administrative agency or of any other person with respect to any of the transactions contemplated hereby shall have been duly obtained or made and shall be in full force and effect; 
  

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 g. There shall not have occurred any event, development or occurrence that has had or would reasonably be
expected to have a Material Adverse Effect; 
 h. The Purchasers shall have received an opinion, dated the Closing Date from the
Company’s counsel, Schuchat, Herzog & Brenman, LLC, in substantially the form attached hereto as Exhibit F; 
 i. The
Registration Rights Agreement shall have been executed and delivered by the Company; 
 j. No stop order or suspension of trading shall have
been imposed by the NASDAQ Capital Market, the SEC or any other governmental regulatory body with respect to public trading in the Common Stock and shall be pending; 
 k. In connection with the issuance of the Conversion Shares and the transactions contemplated hereby, the Company shall have submitted or shall submit on the Closing Date to the NASDAQ Capital Market a
“Notification Form: Listing of Additional Shares” as well as any necessary supporting documentation; 
 l. The Certificates of
Designations shall have been filed with the Secretary of State of the State of Colorado and shall continue to be in full force and effect as of the Closing Date; 
 m. The Purchasers shall have received a certificate, dated the Closing Date, signed by a duly authorized executive officer of the Company, certifying that the conditions specified in the foregoing Sections 6.01(a)
– (g) hereof have been fulfilled; 
 n. The Purchasers shall have received a certificate, dated the Closing Date, of the Secretary
of the Company attaching: (i) a true and complete copy of the Articles of Incorporation of the Company, with all amendments thereto; (ii) true and complete copies of the Company’s Bylaws, as amended, in effect as of such date;
(iii) a certificate from the Secretary of State of the State of Colorado as to the good standing of the Company; (iv) a certificate of authorization to do business as a foreign corporation from the appropriate officials of each
jurisdiction in which the Company operates; and (v) resolutions of the Board authorizing the execution and delivery of this Agreement, the transactions contemplated hereby, and the issuance of the Shares; 
 o. Closing (as defined in the Joint Development Agreement) shall have occurred under the Joint Development Agreement; 
 p. The definitive agreements for the Construction Debt Financing (as defined in the LLC Agreement) shall have been executed and the conditions to closing
(other than closing under the Transaction Agreements) set forth in such agreements shall have been satisfied, and the initial funding thereunder shall occur before or simultaneously with the Closing; and 
 q. All instruments and proceedings to be taken in connection with the transactions contemplated by this Agreement, and all documents incident thereto,
shall be reasonably satisfactory in form and substance to the Purchasers and their special counsel, Latham & Watkins LLP. 
  

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 6.02 Conditions to the Obligation of the Company to Consummate the Closing. The Company’s
obligations to consummate the Closing shall be subject to the satisfaction (or waiver) of the following conditions: 
 a. The representations
and warranties of the Purchaser contained in Article IV of this Agreement shall be true on and as of the Closing Date (or, if made as of a specified date, as of such other date) in all material respects (except for such representations and
warranties that are qualified as to materiality or Material Adverse Effect, which shall be true in all respects) as though such representations and warranties were made at and as of such date; 
 b. The Purchaser shall have performed and complied in all material respects with all agreements, covenants and conditions contained in this Agreement
which are required to be performed or complied with by the Purchaser prior to or on the Closing Date; 
 c. No proceeding challenging this
Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending;

 d. The purchase of and payment for the Shares by the Purchasers shall not be prohibited by any law or governmental order or regulation,
and the Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Shares and the consummation of the other transactions contemplated
herein to be consummated on or prior to the Closing Date, including the receipt of any and all consents required under any material contracts of the Company and any and all required shareholder and regulatory approvals (including any required
approvals in accordance with NASDAQ Marketplace Rules including Rules 4350(i) and 4351), all of which shall be in full force and effect; 
 e. The Company shall have received a certificate, dated the Closing Date, signed by a duly authorized representative of the Purchaser, certifying that the conditions specified in the foregoing Sections 6.02(a) – (c) hereof have
been fulfilled; 
 f. The definitive agreements for the Construction Debt Financing (as defined in the LLC Agreement) shall have been
executed and the conditions to closing (other than closing under the Transaction Agreements) set forth in such agreements shall have been satisfied, and the initial funding thereunder shall occur before or simultaneously with the Closing; and

 g. All instruments and proceedings to be taken in connection with the transactions contemplated by this Agreement, and all documents
incident thereto, shall be reasonably satisfactory in form and substance to the Company and its counsel, Schuchat, Herzog & Brenman, LLC. 
 6.03 Termination of Obligations to Effect the Closing. 
 The obligations of the Company, on the one hand, and the Purchasers,
on the other hand, to effect the Closing shall terminate as follows: 
 a. by mutual written consent of the Company and each of the
Purchasers or a mutual written agreement of the Company and the Other Devco Members to terminate the LLC Agreement; 
 b. by either the
Company or the Purchasers by written notice (to the Company or the Purchasers’ Representative, as applicable) if a Governmental Authority of competent jurisdiction shall have issued a nonappealable final order, decree or ruling or taken any
other nonappealable final action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement; 
  

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 c. by either the Company or the Purchasers by written notice (to the Company or the Purchasers’
Representative, as applicable) if the Closing has not occurred on or prior to March 2, 2009 (the “Outside Date”); provided that the right to terminate this Agreement under this Section 6.03(c) shall not be available
to any party whose failure to fulfill any obligation under this Agreement or any Transaction Agreement has been a principal cause of the failure of the Closing to occur on or before the Outside Date; 
 d. by either the Company or the Purchasers by written notice (to the Company or the Purchasers’ Representative, as applicable) if the Shareholder
Approval is not obtained on or prior to January 31, 2009; 
 e. by any of the Purchasers, if (i) the Company’s Board of
Directors shall have effected a Change in Company Recommendation or resolved to do so; (ii) the Company’s Board of Directors shall have approved or recommended to the Company’s shareholders any Acquisition Proposal or resolved to do
so; (iii) a tender offer or exchange offer for shares of Company Common Stock is commenced and the Company Board recommends that the Company’s shareholders tender their shares in such tender or exchange offer or such Board of Directors
fails to recommend that the Company’s shareholders reject such tender or exchange offer within ten (10) Business Days of such commencement; or (iv) the Company or any of its Representatives have materially breached any of the
covenants set forth in Sections 5.01, 5.02, 5.04, 5.06, 5.11, 5.13 or 5.20 hereof and has failed to cure such breach within fifteen (15) days after written notice from the Purchasers’ Representative, provided that the right of any
Purchaser to terminate this Agreement under this Section 6.03(e)(iv) shall not be available to any Purchaser that is in material breach of any of its representation, warranties, covenants or agreements contained herein and fails to cure such
breach within fifteen (15) days after written notice from the Company; 
 f. by the Purchasers, if any of the conditions set forth in
Section 6.01 shall have become incapable of fulfillment, and shall not have been waived by the Majority Purchasers; provided, however, that (i) Purchasers may not terminate pursuant to this clause (f) unless the
Purchasers’ Representative has provided the Company with written notice of its desire to terminate the Agreement pursuant to this clause and of the condition or conditions it considers incapable of fulfillment and such condition remains
incapable of fulfillment on the thirtieth (30th) day after such notice is received by the Company; and (ii) Purchasers and their Affiliates have used their reasonable best efforts to fulfill such conditions and have not breached any of
their representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Agreements in a manner that has adversely impacted the fulfillment of any condition or has resulted in the circumstances giving rise to a
Purchaser’s seeking to terminate its obligation to effect the Closing; 
 g. by the Purchasers by written notice to the Company if:

  

	 	i.	the Company is in Material Default (as such term is defined in Section 12.2 of the LLC Agreement) under the LLC Agreement; or 

  

	 	ii.	any of the Other Devco Members shall have delivered an ECP Funding Stop Notice to the Company pursuant to Section 3.7 of the LLC Agreement, and after fifteen (15) days of
good faith negotiations as contemplated by such Section 3.7, the Other Devco Members and the Company have failed to agree on a waiver of the applicable failed Funding Condition or amendment to the LLC Agreement; 

  

 38 

 h. by the Company by written notice to the Purchasers’ Representative, if: 
  

	 	i.	any of the Other Devco Members is in Material Default (as such term is defined in Section 12.2 of the LLC Agreement) under the LLC Agreement; or 

  

	 	ii.	any of the Other Devco Members shall have delivered an ECP Funding Stop Notice to the Company pursuant to Section 3.7 of the LLC Agreement, and after fifteen (15) days of
good faith negotiations as contemplated by such Section 3.7, the Other Devco Members and the Company have failed to agree on a waiver of the applicable failed Funding Condition or amendment to the LLC Agreement; or 

 i. by the Company by written notice to the Purchasers’ Representative if a Purchaser has materially breached any of the covenants set forth in
Section 5.01(d), 5.02 or 5.11(a) hereof and has failed to cure such breach within fifteen (15) days after written notice from the Company, provided that the right of the Company to terminate this Agreement under this
Section 6.03(i) shall not be available if the Company is in material breach of any of its representation, warranties, covenants or agreements contained herein and fails to cure such breach within fifteen (15) days after written notice from
the Purchasers’ Representative. 
 6.04 Effect of Termination. In the event of termination as provided in Section 6.03, this
Agreement shall become null and void and have no effect, with no liability on the part of the Company or any Purchaser, or their members, partners, directors, officers, agents or stockholders, with respect to this Agreement, except for the liability
for any breach of any representation, warranty or covenant contained in this Agreement; provided that the provisions of Section 5.15(c), Section 6.03, this Section 6.04, Section 6.05 and Article VII shall remain in full force and
effect and survive any termination of this Agreement in accordance with its terms. 
 6.05 Fees and Expenses. 
 a. Except as set forth in this Section 6.05, all fees and expenses incurred in connection with this Agreement and the transactions contemplated
hereby, including the fees and disbursements of counsel, financial advisors and accountants, shall be paid by the party incurring such fees and expenses, whether or not the Closing is consummated. 
 b. If this Agreement is terminated by the Purchasers pursuant to Section 6.03(f) or Section 6.03(g)(ii), the Company shall pay to the
Purchasers an amount equal to all out of pocket fees and expenses incurred by the Purchasers in connection with this Agreement and the transactions contemplated hereby, including the fees and disbursements of counsel, financial advisors and
accountants but not to exceed $1,500,000 (the “Termination Fee”). 
 c. If (i) after the date of this Agreement and
prior to the termination of this Agreement, an Acquisition Proposal has been publicly proposed or any Person has publicly announced an intention (whether or not conditional and whether or not withdrawn) to make an Acquisition Proposal or an
Acquisition otherwise becomes generally known to the stockholders of the Company, (ii) this Agreement is terminated by either the Company or the Purchasers pursuant to Section 6.03(c), and (iii) within 12 months after the date of
termination of this Agreement, the Company or any of its Subsidiaries enters into a definitive agreement with respect to, or consummates, such Acquisition Proposal or an Acquisition Proposal from a Person or group of Persons affiliated with the
Person who publicly proposed such Acquisition Proposal, the Company shall pay to the Purchasers an amount equal to $2,000,000 (the “Break-up Fee”), plus the Termination Fee. 
  

 39 

 d. If this Agreement is terminated by the Purchasers pursuant to Section 6.03(d),
Section 6.03(e) or Section 6.03(g)(i), the Company shall pay to the Purchasers an amount equal to the Break-up Fee plus the Termination Fee. 
 e. All amounts payable by the Company to the Purchasers under Section 6.05(b) or 6.05 (d) shall be paid in immediately available funds to such account as the Purchasers’ Representative may designate in
writing to the Company within two Business Days of the termination of this Agreement. All amounts payable by the Company to the Purchasers under Section 6.05(c) shall be paid in immediately available funds to such account as the
Purchasers’ Representative may designate in writing to the Company within two Business Days following the date that the Company enters into a definitive agreement regarding an Acquisition Proposal as contemplated by Section 6.05(c)(iii).
In no event shall the Company be liable for the payment of more than one Termination Fee or Break-up Fee. Except in the case of fraud or willful misconduct or as provided pursuant to Section 5.11 hereof, payment of any Termination Fee and/or
Break-up Fee required by this Section 6.05 shall constitute Purchasers’ sole remedy for any breach of this Agreement by the Company. 
 f. The Company acknowledges that the agreements contained in this Section 6.05 are an integral part of the transactions contemplated by this Agreement, and that, without these agreements, Purchasers would not have entered into this
Agreement. Accordingly, if the Company fails promptly to pay the amounts due pursuant to this Section 6.05 and, in order to obtain such payment, Purchasers commence a suit that results in a judgment against the Company for the amounts set forth
in this Section 6.05, the Company shall pay to the Purchasers their reasonable costs and expenses (including attorneys’ fees and expenses) in connection with such suit and any appeal relating thereto, together with interest on the amounts
set forth in this Section 6.05 at the prime rate of Citibank, N.A. in effect on the date such payment was required to be made. 
 ARTICLE VII. 
 MISCELLANEOUS 
 7.01 Notices. Any notices, reports or other correspondence (hereinafter collectively referred to as “correspondence”) required or permitted to be given hereunder shall be in writing and shall be sent by
postage prepaid first class mail, courier, overnight delivery service, facsimile or delivered by hand to the party to whom such correspondence is required or permitted to be given hereunder, and shall be deemed sufficient upon receipt when delivered
personally or by courier, overnight delivery service or confirmed facsimile, or three Business Days after being deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice is
addressed to the party to be notified at such party’s address or facsimile number as set forth below: 
  

	 	a.	All correspondence to the Company shall be addressed as follows: 

 ADA-ES, Inc. 
 8100 SouthPark Way, Unit B 
 Littleton, Colorado 80120 
 Attention: President 
 Facsimile: 303.734.0330 
 with a copy (not
constituting notice) to: 
 Schuchat, Herzog & Brenman, LLC 
 1900 Wazee Street, Suite 300 
 Denver,
Colorado 80202 
 Attention: Julie A. Herzog, Esq. 
 Facsimile: 303.295.9701 
  

 40 

 b. All correspondence to any Purchaser shall be sent to the Purchasers’ Representative and shall be
addressed as follows: 
 Energy Capital Partners GP I, LLC 
 c/o Energy Capital Partners, LLC 
 51 John F. Kennedy Parkway, Suite 200 
 Short Hills, New Jersey 07078 
 Attention:
Peter Labbat Christopher Leininger 
 Facsimile: 973.671.6101 
 with a copy (not constituting notice) to: 
 Latham & Watkins LLP 
 650 Town Center Drive, 20th Floor 
 Costa Mesa, California 92626-1925 
 Attention: Charles K. Ruck 
 Wesley C. Holmes

 Facsimile: 714.755.8290 
 Any entity may
change the address to which correspondence to it is to be addressed by written notification as provided for herein. 
 7.02 Taxes. The
Company shall pay all stock transfer, stamp or other taxes and duties (other than income taxes) levied in connection with the delivery of any Shares to the Purchasers, and shall comply with all laws imposing such taxes. 
 7.03 Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties. The Company may
not assign its rights or obligations hereunder without the prior written consent of each of the Purchasers. No Purchaser may assign its rights or obligations hereunder without the prior written consent of the Company, except that a Purchaser may
assign its rights and obligations hereunder to any of its members or Affiliates or Affiliates of its members provided the proposed transferee is not a competitor of the Company, any Subsidiary or any Development Subsidiary. 
 7.04 Captions. The captions and paragraph headings of this Agreement are solely for the convenience of reference and shall not affect its
interpretation. 
 7.05 Severability. Should any part or provision of this Agreement be held unenforceable or in conflict with the
applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be replaced with a provision which accomplishes, to the extent possible, the original business purpose of such part or provision in a valid and
enforceable manner, and the remainder of this Agreement shall remain in full force and effect and binding upon the parties hereto. 
 7.06
Governing Law. THIS AGREEMENT (INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS AGREEMENT) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICT
OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF DELAWARE. 
  

 41 

 7.07 Consent to Jurisdiction and Service of Process; Appointment of Agent for Service of
Process. EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO THE JURISDICTION OF ANY UNITED STATES DISTRICT COURT OR DELAWARE CHANCERY COURT LOCATED IN WILMINGTON, DELAWARE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN STATUTE, TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURTS. EACH PARTY (A) CONSENTS
TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR PROCEEDINGS, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND
(C) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION
AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF ANY SERVICE OF PROCESS
SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY
A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW. 
 7.08 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. EACH PARTY ALSO WAIVES
ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF ANY OF THE OTHER PARTIES. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND REPRESENTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTION CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  

 42 

 7.09 Survival. The respective representations and warranties given by the parties hereto shall
survive the Closing Date and the consummation of the transactions contemplated herein for a period of eighteen months, without regard to any investigation made by any party, and the other covenants and agreements contained herein shall surviving the
Closing Date and the consummation of the transactions contemplated herein until performed as contemplated herein, and if no time period is specified, indefinitely. 
 7.10 Rights Cumulative. Each and all of the various rights, powers and remedies of the parties shall be considered to be cumulative with and in addition to any other rights, powers and remedies which such parties may
have at law or in equity in the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall neither constitute the exclusive election thereof nor the waiver of any other right,
power or remedy available to such party. 
 7.11 Limitation on Enforcement of Remedies. The Company hereby agrees that it will not assert
against the limited partners or members of any of the Purchasers any claim it may have under this Agreement by reason of any failure or alleged failure by such Purchaser to meet its obligations hereunder.  
 7.12 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall constitute one instrument. 
 7.13 Amendments and Waiver. This Agreement may not be amended or modified except pursuant to an
instrument in writing signed by the Company and the Majority Purchasers and may not be waived except by an instrument in writing signed by the party to be bound, or in the case of any Purchaser, signed by the Majority Purchasers, and any amendment,
modification or waiver signed by the Majority Purchasers shall be valid and binding with respect to all Purchasers. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall
be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. 
 7.14 Entire Agreement. This Agreement, the schedules and exhibits hereto, and the Registration Rights Agreement constitute the entire agreement between the parties hereto respecting the subject
matter hereof and supersede all prior agreements, negotiations, understandings, representations and statements respecting the subject matter hereof, whether written or oral. 
 7.15 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person. 
 [Signature Pages Follow] 
  

 43 

 IN WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement as of the day and
year first above written. 
  

			
	ADA-ES INC.,
	a Colorado corporation
		
	By:	 	/s/ Michael D. Durham
		 	Name: Michael D. Durham
		 	Title: President & CEO

 EACH PURCHASER’S SIGNATURE TO THE INVESTOR QUESTIONNAIRE DATED OF EVEN DATE HEREWITH SHALL
CONSTITUTE SUCH PURCHASER’S SIGNATURE TO THIS SECURITIES PURCHASE AGREEMENT. 

 Exhibit A 
 SCHEDULE OF PURCHASERS 
  

					
	 Purchaser Name and Address
	  	Number of shares of
Series A Preferred Stock
to be Purchased	  	Number of shares of
Series B Preferred Stock
to be Purchased
	 Energy Capital Partners I, LP
 51 John F. Kennedy Parkway, Suite 200
 Short Hills, New Jersey 07078
	  	763,596	  	763,596
			
	 Energy Capital Partners I-A LP
 51 John F. Kennedy Parkway, Suite 200
 Short Hills, New Jersey 07078
	  	479,790	  	479,790
			
	 Energy Capital Partners I-B, LP
 51 John F. Kennedy Parkway, Suite 200
 Short Hills, New Jersey 07078
	  	251,370	  	251,370
			
	 Energy Capital Partners I (TEF IP), LP
 51 John F. Kennedy Parkway, Suite 200
 Short Hills, New Jersey 07078
	  	305,244	  	305,244

 Exhibit B 
 FORM OF REGISTRATION RIGHTS AGREEMENT 

 Exhibit C 
 SERIES A CERTIFICATE OF DESIGNATIONS 

 Exhibit D 
 SERIES B CERTIFICATE OF DESIGNATIONS 

 Exhibit E 
 PURCHASER’S CERTIFICATE OF SUBSEQUENT SALE 
  

			
	 Attention:
	  	 ADA-ES, Inc.
 Chief Financial
Officer

 The undersigned, [an officer of, or other person duly authorized by]
___________________________________________________________ [fill in official name of individual or institution] hereby certifies that he/she [said institution] is the Purchaser of the Securities evidenced by the attached certificate(s), and as
such, sold the shares on _____________________ in accordance with the Registration Statement number ________________________ [fill in the number of or otherwise identify Registration Statement] and the requirement of delivering a current prospectus
forming a part of such Registration Statement has been complied with in connection with such sale. 
 Print or Type: 
  

					
	 Name of Purchaser
 (Individual or Institution):
	 	 	 	
			
	 Name of Individual
 Representing Purchaser
 (if an institution):
	 	 	 	
			
	 Title of Individual
 Representing Purchaser
 (if an institution):
	 	 	 	
			
	Signature by:	 		 	
			
	 Individual Purchaser
 or Individual Representing
 Purchaser:
	 	 	 	

 Exhibit F 
 FORM OF OPINION OF SCHUCHAT, HERZOG & BRENMAN, LLCJoint Development Agreement

 Exhibit 10.54 
  
  
  
  
  
  
 JOINT
DEVELOPMENT AGREEMENT 
 By and Among 
 ADA-ES, INC., 
 and 
 ENERGY CAPITAL PARTNERS I, LP 
 ENERGY CAPITAL PARTNERS I-A, LP 
 ENERGY CAPITAL PARTNERS I-B IP, LP 
 ENERGY CAPITAL PARTNERS I (CROWFOOT IP), LP

  
 Dated as of October 1, 2008 
  
  
  
  
  
  
  
 * indicates portions of the exhibit that have been omitted pursuant to a request for
confidential information. The non-public information has been filed with the Commission. 

 TABLE OF CONTENTS 
  

							
	 	  	Page
	ARTICLE I FORMATION OF DEVELOPMENT COMPANY; INITIAL CONTRIBUTIONS	  	2
				
		 	1.1	  	 Formation of Development Company
	  	2
		 	1.2	  	 ECP Initial Capital Contribution
	  	2
		 	1.3	  	 ADA-ES Asset Contribution
	  	2
		 	1.4	  	 Contributed Assets
	  	2
		 	1.5	  	 Excluded Assets
	  	3
		 	1.6	  	 Assumed Liabilities
	  	3
		 	1.7	  	 Excluded Liabilities
	  	4
		 	1.8	  	 Third-Party Consents
	  	5
		 	1.9	  	 Allocations of Value
	  	6
		
	ARTICLE II CLOSING	  	6
				
		 	2.1	  	 Location and Date
	  	6
		 	2.2	  	 Contribution of Assets
	  	6
		 	2.3	  	 Actions and Deliveries at Closing
	  	7
		 	2.4	  	 Post-Closing Adjustments
	  	9
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE ECP PARTIES	  	10
				
		 	3.1	  	 Corporate Existence of the ECP Party
	  	10
		 	3.2	  	 Authority
	  	10
		 	3.3	  	 No Conflicts
	  	11
		 	3.4	  	 Governmental Approvals and Filings
	  	11
		 	3.5	  	 Accredited Investor
	  	11
		 	3.6	  	 Brokers, Etc.
	  	12
		 	3.7	  	 Legal Proceedings
	  	12
		 	3.8	  	 Availability of Funds
	  	12
		 	3.9	  	 No Other Representations or Warranties
	  	12
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ADA-ES	  	12
				
		 	4.1	  	 Corporate Existence of ADA-ES
	  	12
		 	4.2	  	 AC Venture Companies
	  	12
		 	4.3	  	 Authority
	  	13
		 	4.4	  	 No Conflicts
	  	13
		 	4.5	  	 Governmental Approvals and Filings
	  	14
		 	4.6	  	 Intellectual Property
	  	14
		 	4.7	  	 Liabilities
	  	15
		 	4.8	  	 Legal Proceedings
	  	15
		 	4.9	  	 Compliance with Laws and Orders
	  	16

  

 1 

							
	 	  	Page
		 	4.10	  	 Benefit Plans
	  	16
		 	4.11	  	 Underlying Assets
	  	16
		 	4.12	  	 Real Property
	  	16
		 	4.13	  	 Capitalized Tangible Personal Property
	  	19
		 	4.14	  	 LLC Interests
	  	19
		 	4.15	  	 Utilities and Other Services
	  	20
		 	4.16	  	 Business Contracts
	  	20
		 	4.17	  	 Business Licenses
	  	23
		 	4.18	  	 Insurance
	  	24
		 	4.19	  	 Affiliate Transactions
	  	24
		 	4.20	  	 Labor Relations
	  	24
		 	4.21	  	 Environmental Matters
	  	25
		 	4.22	  	 Brokers, Etc.
	  	25
		 	4.23	  	 Accredited Investor
	  	25
		 	4.24	  	 Reports and Financial Statements
	  	26
		 	4.25	  	 Absence of Certain Changes
	  	27
		 	4.26	  	 Accuracy of Statements and Information
	  	27
		 	4.27	  	 Regulatory Matters
	  	27
		 	4.28	  	 Confidentiality Agreements
	  	27
		
	ARTICLE V TAX MATTERS	  	27
				
		 	5.1	  	 Tax Matters
	  	27
		 	5.2	  	 Tax Cooperation; Allocation of Taxes
	  	28
		
	ARTICLE VI COVENANTS	  	29
				
		 	6.1	  	 Interim Financial Statements
	  	29
		 	6.2	  	 Maintenance of Insurance
	  	29
		 	6.3	  	 Post-Closing Consultation and Cooperation
	  	29
		 	6.4	  	 Confidentiality Agreements Enforcement
	  	29
		
	ARTICLE VII CONDITIONS TO CLOSING	  	30
				
		 	7.1	  	 Conditions to Obligations of Both Parties
	  	30
		 	7.2	  	 Conditions to Obligations of ADA-ES
	  	30
		 	7.3	  	 Conditions to Obligations of the ECP Parties
	  	31
		
	ARTICLE VIII SURVIVAL; NO OTHER REPRESENTATIONS	  	32
				
		 	8.1	  	 Survival of Representations, Warranties, Covenants and Agreements
	  	32
		
	ARTICLE IX INDEMNIFICATION	  	33
				
		 	9.1	  	 Indemnification
	  	33
		 	9.2	  	 Method of Asserting Claims
	  	34
		 	9.3	  	 *
	  	36

  

 ii 

							
	 	  	Page
	ARTICLE X DEFINITIONS	  	37
				
		 	10.1	  	Definitions	  	37
		
	ARTICLE XI MISCELLANEOUS	  	48
				
		 	11.1	  	Notices	  	48
		 	11.2	  	Entire Agreement	  	49
		 	11.3	  	Expenses	  	49
		 	11.4	  	Public Announcements	  	49
		 	11.5	  	Confidentiality	  	49
		 	11.6	  	Waiver	  	50
		 	11.7	  	Amendment	  	50
		 	11.8	  	Specific Performance	  	50
		 	11.9	  	No Third Party Beneficiary	  	50
		 	11.10	  	No Assignment; Binding Effect	  	50
		 	11.11	  	Headings	  	51
		 	11.12	  	Invalid Provisions	  	51
		 	11.13	  	Mutual Drafting	  	51
		 	11.14	  	Governing Law	  	51
		 	11.15	  	Consent to Jurisdiction and Service of Process; Appointment of Agent for Service of Process	  	51
		 	11.16	  	Waiver of Jury Trial	  	52
		 	11.17	  	*	  	52
		 	11.18	  	Counterparts	  	52

  

 iii 

 EXHIBITS 
  

			
	 Exhibit A
	 	– ADA-ES Pre-Closing Contributed Capital Schedule
		
	 Exhibit B
	 	– Conveyance of Underlying Assets to AC Venture Companies
		
	 Exhibit C
	 	– Contribution and Assumption Agreements
		
	 Exhibit D
	 	– Crowfoot Development Limited Liability Company Agreement
		
	 Exhibit E
	 	– Red River Environmental Products Limited Liability Company Agreement
		
	 Exhibit F
	 	– Underwood Environmental Products Limited Liability Company Agreement
		
	 Exhibit G
	 	– Morton Environmental Products Limited Liability Company Agreement
		
	 Exhibit H
	 	– Crowfoot Supply Company Limited Liability Company Agreement
		
	 Exhibit I
	 	– Master Services Agreement
		
	 Exhibit J
	 	– Intellectual Property License Agreement
		
	 Exhibit K
	 	– ECP Managing Member Certificate
		
	 Exhibit L
	 	– ADA-ES Secretary’s Certificate
		
	 Exhibit M
	 	– IP Assignments
		
	 Exhibit N
	 	– Legal Opinions
		
	 Exhibit O
	 	– Securities Purchase Agreement
		
	 Exhibit P
	 	– Owned Real Property Legal Description
		
	 Exhibit Q
	 	– Joint Press Release

  

 iv 

 JOINT DEVELOPMENT AGREEMENT 
 This JOINT DEVELOPMENT AGREEMENT, dated as of October 1, 2008 (the “Effective Date”), is made and entered into by and among
ADA-ES, INC., a Colorado Corporation (“ADA-ES”), ENERGY CAPITAL PARTNERS I, LP, a Delaware limited partnership (“ECP I”), ENERGY CAPITAL PARTNERS I-A, LP, a Delaware limited partnership
(“ECP I-A”), ENERGY CAPITAL PARTNERS I-B IP, LP, a Delaware limited partnership (“ECP I-B”), and ENERGY CAPITAL PARTNERS I (CROWFOOT IP), LP, a Delaware limited partnership (“ECP
Crowfoot”). ECP I, ECP I-A, ECP I-B and ECP Crowfoot collectively, are referred to herein as individually as an “ECP Party” and collectively as the “ECP Parties.” Each of the ECP Parties
and ADA-ES is sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.” Capitalized terms used but not otherwise defined herein shall have the meanings set forth in
Section 10.1 (Definitions). 
 WHEREAS, the Parties are interested in developing, financing, constructing, owning and operating
activated carbon production facilities and related assets (each a “Project” and collectively the “Projects”); 
 WHEREAS, ADA-ES has, at its sole expense, commenced a project to evaluate, locate, design and build an initial Project located in Coushatta, Red River Parish, Louisiana, the “Red River Project”
and has invested substantial sums in and made substantial progress on the development of this initial Project, including, without limitation, the identification of a site, the submission of an air permit application and the execution of various
agreements granting rights to purchase land and coal from the local coal mine, and has formed Red River Environmental Products, LLC, a Delaware limited liability company (the “Red River Project Company”), to own this initial
Project; 
 WHEREAS, ADA-ES has, at its sole expense, commenced additional Projects located in Bowman, Morton County, North Dakota (the
“Morton Project”) and Underwood, McLean County, North Dakota (the “Underwood Project”), and has formed Morton Environmental Products, LLC, a Delaware limited liability company (the “Morton
Project Company”) and Underwood Environmental Products, LLC, a Delaware limited liability company (the “Underwood Project Company”), respectively, to own such additional Projects; 
 WHEREAS, ADA-ES has, at its sole expense, purchased equipment, entered into a material supply agreement, leased facilities and taken other actions to
provide for the interim supply and processing of activated carbon in Murchison, Texas (the “Murchison Project”), has identified a potential additional facility for the interim processing of activated carbon, and has
established Crowfoot Supply Company, LLC, a Delaware limited liability company (the “Supply Company”), to own the interim supply operations; 
 WHEREAS, ADA-ES has established Crowfoot Development, LLC, a new Delaware limited liability company (the “Development Company”), that will, on the Closing Date, serve as the vehicle through
which the Parties jointly engage in the ownership and development, directly or indirectly, of activated carbon production and supply facilities, and will be governed by the terms and provisions of the Operating Agreement; 

 WHEREAS, ADA-ES desires to make a capital contribution to the Development Company consisting of the
ADA-ES Contributed Assets in exchange for a 50% membership interest in the Development Company; and 
 WHEREAS, the ECP Parties desire to
make a capital contribution to the Development Company consisting of the Initial ECP Capital Contribution in exchange for a 50% membership interest in the Development Company. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
 ARTICLE I 
 FORMATION OF DEVELOPMENT COMPANY; INITIAL CONTRIBUTIONS 
 1.1 Formation of Development Company. As of the Effective Date, ADA-ES has formed the Development Company pursuant to the Certificate of Formation of Crowfoot Development, LLC filed on February 19, 2008
with the Secretary of State of the State of Delaware. At the Closing, the Parties will enter into the Operating Agreement and make the initial capital contributions to the Development Company described in this Article I. 
 1.2 ECP Initial Capital Contribution. Within 15 Business Days following the Closing, on the terms and subject to the conditions set forth in this
Agreement, the ECP Parties hereby agree to contribute cash to the Development Company in the manner provided for in Section 2.3(b)(i) (Initial ECP Capital Contribution) in an aggregate amount equal to the Initial ECP Capital
Contribution. Pursuant to the terms and subject to the conditions set forth in the Operating Agreement, the ECP Parties shall be obligated to fund additional capital requirements of the Development Company as more particularly set forth in the
Operating Agreement. 
 1.3 ADA-ES Asset Contribution. At Closing, on the terms and subject to the conditions set forth in this
Agreement, ADA-ES hereby agrees to transfer, convey, assign and deliver all of its right, title and interest in, to and under (a) the Underlying Assets to the Project Companies and the Supply Company, as applicable, and (b) the ADA-ES
Contributed Assets to the Development Company, in each case in the manner forth in Section 2.2 (Contribution of Assets) hereof. At Closing, the Underlying Assets shall be free and clear of all Liens, except for Permitted Encumbrances and
the ADA-ES Contributed Assets shall be free and clear of all Liens. Pursuant to the terms and subject to the conditions set forth in the Operating Agreement, ADA-ES shall be obligated to fund additional capital requirements of the Development
Company as more particularly set forth in the Operating Agreement. 
 1.4 Contributed Assets. The “Underlying
Assets” shall consist of: 
 (a) all Real Property and Real Property Leases relating to Real Property, and all
rights with respect thereto, owned by any of the ADA-ES Entities on the Effective Date and on the Closing Date and used or held for use in connection with the Business or necessary to the conduct of the Business; 
  

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 (b) all Personal Property Leases, Business Contracts (other than the Development Company
Assumed Contracts), Business Licenses (other than the Charter Documents of ADA-ES and each qualification of ADA-ES to do business as a foreign corporation in states outside of the State of Colorado), Prepaid Expenses, Business Books and Records, and
all rights with respect thereto, owned, directly or indirectly, by any of the ADA-ES Entities on the Effective Date and on the Closing Date; 
 (c) all of the Tangible Personal Property for which ADA has incurred expenditures detailed on the ADA-ES Pre-Closing Contributed Capital Schedule attached hereto as Exhibit A, (such property, the
“Capitalized Tangible Personal Property”), as adjusted after the Closing in accordance with Section 2.4; and 
 (d) all assets listed on Section 1.4 of the Disclosure Schedule. 
 The “ADA-ES Contributed
Assets” shall consist of (i) ADA-ES’s 100% limited liability company interest in each of the Project Companies and the Supply Company immediately following the transfer of the Underlying Assets pursuant to
Section 2.2(a) (Contribution of Assets), (ii) all Transferred Intellectual Property, all copies and tangible embodiments of the Transferred Intellectual Property (in whatever form or medium) and all past, present or future claims or
causes of action arising out of or relating to any infringement, dilution, misappropriation or other violation of any of the Transferred Intellectual Property, (iii) all goodwill associated with the Business and (iv) the Development
Company Assumed Contracts. 
 1.5 Excluded Assets. The following assets shall be excluded from and shall not be transferred as part of
the Underlying Assets (the “Excluded Assets”): 
 (a) all assets of the ADA-ES Entities exclusively
used or held for use in connection with any business conducted by the ADA-ES Entities other than the Business (the “Other Businesses”); 
 (b) all Intellectual Property primarily (but not exclusively) used or held for use in connection with the conduct of the Other Businesses,
including the Intellectual Property listed on Part B of Section 4.6(a) of the Disclosure Schedule; and 
 (c) all
assets listed on Section 1.5 of the Disclosure Schedule. 
 1.6 Assumed Liabilities. At Closing, pursuant to the
Contribution and Assumption Agreements described in Section 2.2 (Contribution of Assets) on the terms and subject to the conditions set forth in this Agreement, each AC Venture Company, as applicable, will, severally and not jointly,
assume, and agree to pay, perform and discharge when due, all Liabilities under the Transferred IP accruing, arising out of or relating to events or occurrences happening after the Closing Date, and all Liabilities under the Real Property Leases,
Personal Property Leases, Business Contracts and Business Licenses, in each case to the extent assigned to such AC Venture Company, as applicable, but excluding all of the Excluded Liabilities (such assumed liabilities, the “Assumed
Liabilities”). The AC Venture Companies shall indemnify ADA-ES against any loss, cost or liability arising out of the Assumed Liabilities. 
  

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 1.7 Excluded Liabilities. Notwithstanding anything to the contrary in this Agreement, none of the
AC Venture Companies shall assume or become responsible for, and shall not be deemed to have assumed or to have become responsible for, and ADA-ES shall retain and assume, any Liabilities other than the Assumed Liabilities (such Liabilities, the
“Excluded Liabilities”), including the following: 
 (a) all Liabilities or obligations of the ADA-ES
Entities to the extent arising out of, resulting from or relating to any Excluded Asset; 
 (b) all Liabilities of the ADA-ES
Entities to the extent arising out of, resulting from or relating to any of the Other Businesses; 
 (c) all Liabilities with
respect to the employees, officers, directors and consultants of the ADA-ES Entities, except to the extent arising from a Business Contract expressly assumed by an AC Venture Company pursuant to the Contribution and Assumption Agreement; and

 (d) all Liabilities with respect to Benefit Plans of ADA-ES; 
 (e) all Liabilities associated with or arising from ADA-ES’s obligations under this Agreement or any of the Operative Agreements;

 (f) all Liabilities arising from the breach, noncompliance or default at any time on or prior to the Closing Date of any
term, covenant or provision of any of the Real Property Leases, Personal Property Leases, Business Contracts or Business Licenses; 
 (g) all other Liabilities due and payable prior to the Closing Date; 
 (h) all Liabilities arising from any
violation of or default under, or failure of the Business to be operated in compliance with, applicable Laws at any time on or prior to the Closing Date; 
 (i) all Liabilities in respect of any of the Real Property Leases, Personal Property Leases, Business Contracts or Business Licenses that would be included in the Underlying Assets or the ADA-ES Contributed Assets but
for the provisions of Section 1.8 (Third-Party Consents); 
 (j) all Liabilities incurred in connection with
obtaining any consent, authorization or approval in connection with the consummation of the Transactions; 
 (k) all
Liabilities for Taxes of the ADA-ES Entities (other than Taxes assumed by the AC Venture Companies pursuant to Section 5.2(b) (Tax Cooperation; Allocation of Taxes) and Taxes of the AC Venture Companies arising after the Closing Date);

 (l) all Liabilities of the ADA-ES Entities with respect to brokers’ fees and expenses or similar fees and expenses
contemplated by Section 4.22 (Brokers, Etc.), including all Liabilities arising out of or related to the Credit Suisse Letter other 

  

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than the 1.875% Debt Financing Fee payable upon the closing of the credit facility in respect of the first line of the Red River Project pursuant to
Section 5(a) thereof (the “Debt Financing Fee”). 
 (m) all Liabilities arising out of or
relating to that certain Repayment Agreement (DE-FR26-04NT42059), dated April 6, 2004, by and between the United States Department of Energy and ADA-ES, including Revision M001 thereto and the Toxecon Sorbent Sales Repayment Agreement, dated
February 18, 2004, by and among Norit Americas Inc., ADA-ES and ADA Environmental Solutions, LLC (except the payment obligation set forth in subparagraph (3) of Revision M001 thereto to be assumed by the Development Company on or after the
Closing Date). 
 (n) all Losses and other Liabilities arising out of, resulting from or relating to (i) any Existing
Actions or Proceedings, (ii) Actions or Proceedings brought by or against ADA-ES exclusively related to the Other Businesses and (iii) Actions or Proceedings arising out of or relating to the relationship between ADA-ES and Calgon Carbon
Corporation, including that certain Memorandum of Understanding dated March 20, 2007, by and between Calgon Carbon Corporation and ADA-ES. 
 ADA-ES
shall indemnify the AC Venture Companies against any loss, cost or liability arising out of the Excluded Liabilities. 
 1.8 Third-Party
Consents. To the extent that any Real Property Lease, Personal Property Lease, Business Contract, Confidentiality Agreements or Business License is not assignable to any of the AC Venture Companies without the consent of another Person that is a
party thereto, ADA-ES shall use its commercially reasonable efforts to obtain the consent of such other party to the assignment of any such Real Property Lease, Personal Property Lease, Business Contract or Business License to the applicable AC
Venture Company in all cases in which such consent is required for such assignment. If any such consent shall not be obtained, ADA-ES and its Affiliates shall (i) continue to be bound thereby, (ii) cooperate with each AC Venture Company in
any reasonable arrangement designed to provide to such AC Venture Company the benefits intended to be assigned to such AC Venture Company under the relevant Real Property Lease, Personal Property Lease, Business Contract or Business License,
including enforcement of any and any rights of ADA-ES and its Affiliates against the other party thereto arising out of the breach or cancellation thereof by such other party or otherwise and (iii) enforce at the ECP Parties’ request, any
rights of ADA-ES and its Affiliates under any such Real Property Lease, Personal Property Lease, Business Contract or Business License against the issuer thereof or the other party or parties thereto (including the right to elect to terminate such
of the foregoing in accordance with the terms thereof upon the request of the ECP Parties). ADA-ES, without further consideration therefor, and without right of set-off, shall pay and remit to the appropriate AC Venture Company promptly all monies,
rights and other considerations received in respect of such performance; provided that, the respective AC Venture Company shall reimburse ADA-ES for the direct, out-of-pocket costs reasonably incurred by ADA-ES after the Closing in performing
ADA-ES’s obligations under such Contracts that cannot be assigned. Each of the AC Venture Companies shall use commercially reasonable efforts to perform any portion of any such lease, Contract or license of which the benefits are being provided
to such AC Venture Company in accordance with this Section 1.8 to the same extent required of ADA -ES or its Affiliates in such lease, Contract or license. Nothing contained in this Section 1.8 shall limit or impair the ECP
Parties’ rights in Section 7.3 (Conditions to Obligations of the ECP Parties). 
  

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 1.9 Allocations of Value. ADA-ES will prepare and deliver to the ECP Parties an allocation (the
“Allocation”) of the value of the assets of the AC Venture Companies in accordance with the Internal Revenue Code of 1986, as amended (“IRC”), and the Treasury Regulations promulgated thereunder. The
Allocation shall be delivered by ADA-ES to the ECP Parties within 60 days after the Closing Date for the ECP Parties’ comment or approval. The Parties shall work in good faith to resolve any disputes relating to the Allocation within 45 days
from the date on which the Allocation is delivered to the ECP Parties. If the Parties are unable to resolve any such dispute within such 45 day period, such dispute shall be resolved promptly by a nationally recognized independent registered public
accounting firm reasonably acceptable to ADA-ES and the ECP Parties that is not rendering (and during the preceding two-year period has not rendered) audit services to either ADA-ES or the ECP Parties or any of their respective Affiliates, the costs
of which shall be shared equally by ADA-ES on the one hand and the ECP Parties on the other hand. The Parties shall file all Tax Returns consistent with the final agreed-upon allocation. 
 ARTICLE II 
 CLOSING 
 2.1 Location and Date. The closing of the Transactions (the “Closing”) shall be held at the offices of Latham &
Watkins LLP on the date on which all conditions to the consummation of the Transactions set forth in Article VII (Conditions to Closing) have either been satisfied or waived. The date on which Closing occurs is referred to herein as the
“Closing Date.” 
 2.2 Contribution of Assets. At the Closing, ADA-ES shall: 
 (a) first, transfer or cause to be transferred, as applicable, the Underlying Assets together with the Assumed Liabilities directly
related thereto, to the Project Companies and the Supply Company in the manner set forth on Exhibit B hereto and pursuant to the terms of a Contribution and Assumption Agreement, substantially in the form of Exhibit C-1
hereto, free and clear of all Liens other than Permitted Encumbrances; and 
 (b) second, immediately following consummation
of the transfers contemplated by Section 2.2(a), transfer or cause to be transferred, as applicable, the ADA-ES Contributed Assets (which, following the transfers contemplated by Section 2.2(a), shall consist of 100% of the
limited liability company interests of each of the Project Companies and the Supply Company, the Transferred Intellectual Property and the Development Company Assumed Contracts) together with the Assumed Liabilities directly related thereto, to the
Development Company, pursuant to the terms of a Contribution and Assumption Agreement, substantially in the form of Exhibit C-2 (together with the form of Contribution and Assumption Agreement attached as Exhibit C-1 hereto the
“Contribution and Assumption Agreements”) free and clear of all Liens. 
  

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 2.3 Actions and Deliveries at Closing. At the Closing (or at such other time specified below), on
the terms and subject to the conditions set forth in this Agreement, each of ADA-ES and the ECP Parties, as applicable, shall make the following deliveries and take or cause to be taken the following actions (the “Closing Actions and
Deliveries”): 
 (a) Mutual Closing Actions and Deliveries. 
 (i) Development Company Operating Agreement. Each Party and the Development Company shall execute and deliver to the other Parties
the limited liability company agreement for the Development Company, substantially in the form of Exhibit D hereto (the “Operating Agreement”). 
 (ii) AC Venture Company Operating Agreement. ADA-ES and the ECP Parties shall cause the Development Company to execute and deliver
to each Project Company and the Supply Company, and each Project Company and the Supply Company shall execute and deliver to the Development Company the following, as applicable: (A) the limited liability company agreement for the Red River
Project Company, substantially in the form attached hereto as Exhibit E, (B) the limited liability company agreement for the Underwood Project Company, substantially in the form attached here to as Exhibit F,
(C) the limited liability company agreement for the Morton Project Company, substantially in the form attached here to as Exhibit G and (D) the limited liability company agreement for the Supply Company, substantially in the
form attached hereto as Exhibit H. 
 (iii) Master Services Agreement. ADA-ES shall execute and deliver
to the Development Company, and ADA-ES and the ECP Parties shall cause the Development Company to execute and deliver to ADA-ES, the Master Services Agreement, substantially in the form attached hereto as Exhibit I (the
“Master Services Agreement”). 
 (iv) Intellectual Property License Agreement. ADA-ES shall
execute and deliver to the Development Company, and ADA-ES and the ECP Parties shall cause the Development Company to execute and deliver to ADA-ES, the Intellectual Property License Agreement, substantially in the form attached hereto as
Exhibit J (the “Intellectual Property License Agreement”). 
 (v) W-9 Deliveries.
Each Party shall deliver to the Development Company an IRS Form W-9. 
 (vi) Additional Actions. The Parties shall
execute and deliver, or cause to be executed and delivered, all other documents, and take such other actions, in each case as shall be necessary or appropriate, to consummate the Transactions, all in accordance with the provisions of this Agreement.

 (b) ECP Party Closing Actions and Deliveries. 
 (i) Initial ECP Capital Contribution. Within 15 Business Days following the Closing, the ECP Parties shall pay to the Development
Company by wire transfer of immediately available funds a cash contribution of $16,863,273, the “Initial ECP Capital Contribution”). The Initial ECP Capital Contribution is based upon the assumption that 

  

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ADA-ES has made, through 11:59 p.m., Mountain Time, on September 10, 2008, capital contributions to the Development Company equal to the aggregate
amounts set forth on Exhibit A attached hereto, which details the categories and dollar amounts of such expenditures as of September 10, 2008 (the “ADA-ES Pre-Closing Contributed Capital Schedule”). The
ADA-ES Pre-Closing Contributed Capital Schedule shall be subject to adjustment as set forth in Section 2.4. In addition, the Parties acknowledge that the ECP Parties have made capital contributions to the Development Company (other than
the Initial ECP Capital Contribution) in an amount equal to $200,000. 
 (ii) Certificate of Managing Member. The ECP
Parties shall deliver to the Development Company and ADA-ES, dated as of the Closing Date, a duly executed certificate of the managing member of each of the ECP Parties, substantially in the form of Exhibit K hereto. 
 (c) ADA-ES Closing Actions and Deliveries. 
 (i) Conveyance of Assets. ADA-ES shall effect the transfers contemplated by Section 2.2 (Contribution of Assets). The
Parties agree that the ADA-ES Contributed Assets are valued at $17,063,273. In furtherance of the foregoing, ADA-ES and the ECP Parties shall cause the Development Company to be admitted as the sole member of each of the Project Companies and the
Supply Company. 
 (ii) Consents and Approvals. ADA-ES will deliver to the ECP Parties, in form and substance
reasonably satisfactory to ADA-ES and the ECP Parties and without any material or commercially unreasonable amendment or change to the terms and conditions of the Real Property Leases, Personal Property Leases, Business Contracts and Business
Licenses (each lawfully transferred, if not already in the correct name, in the name of the Development Company or its designee), all authorizations, consents, Orders and approvals of all Governmental Authorities and officials and all third party
consents (or waivers in lieu thereof) listed on Section 2.3(c)(ii) of the Disclosure Schedule. 
 (iii) ECP
Membership Interest. ADA-ES shall cause the Development Company to issue to the ECP Parties, pro rata in proportion to their relative Capital Commitments (as defined in the Operating Agreement), the ECP Membership Interest. 
 (iv) Secretary’s Certificate. ADA-ES will deliver to the Development Company and the ECP Parties, dated as of the Closing
Date, a duly executed certificate of the Secretary of ADA-ES, substantially in the form of Exhibit L hereto. 
 (v) IP Assignments. ADA-ES will deliver to the Development Company and the ECP Parties duly executed instruments of assignment with respect to patents and patent applications, trademark and service mark registrations and
applications, copyright registrations and applications included in the Underlying Assets, substantially in the form of Exhibit M attached hereto. 
  

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 (vi) Legal Opinions. ADA-ES will deliver to the Development Company and the ECP
Parties, dated as of the Closing Date, legal opinions of Schuchat, Herzog & Brenman, LLC and Fox Rothschild LLP, substantially in the form of Exhibit N-1 and Exhibit N-2 attached hereto. 
 2.4 Post-Closing Adjustments. 
 (a)
Delivery of ADA-ES Closing Date Contributed Capital Schedule. On or before October 15, 2008, ADA-ES shall prepare in good faith and deliver to the ECP Parties a detailed statement that will supplement the ADA-ES Pre-Closing Contributed
Capital Schedule setting forth in reasonable detail ADA-ES’s capital contributions to the Development Company between September 11, 2008 and the Closing Date (such supplement to Exhibit A referred to as the “ADA-ES
Closing Date Contributed Capital Schedule”). 
 (b) Review and Audit by ECP Parties. The ECP Parties shall have 10
Business Days following receipt of the proposed ADA-ES Closing Date Contributed Capital Schedule to review such schedule and to accept or object to all or any portion of the capital contributions detailed therein. The ECP Parties, and their
authorized representatives, shall be entitled, at their option, to conduct a review of the relevant books and records of ADA-ES that relate to the capital contributions detailed on the ADA-ES Closing Date Contributed Capital Schedule (and make
copies thereof), including, without limitation, any relevant accounting work papers. ADA-ES shall make all such books and records reasonably available to the ECP Parties for review and shall otherwise provide all information, cooperation and
assistance reasonably requested by the ECP Parties in connection with such review. 
 (c) Acceptance or Objection by ECP Parties.
Unless the ECP Parties deliver written notice to ADA-ES on or prior to the 10th Business Day following the ECP Parties’ receipt of the ADA-ES Closing Date Contributed Capital Schedule, the ECP Parties shall be deemed to have accepted such
ADA-ES Closing Date Contributed Capital Schedule. If the ECP Parties so notify ADA-ES of such an objection to the ADA-ES Closing Date Contributed Capital Schedule, the parties shall within 10 days following the date of such notice (the
“Negotiation Period”) negotiate in good faith to resolve their differences. Any resolution by them as to any disputed amount shall be final, binding, conclusive and nonappealable, and judgment upon any such determination may
be entered in any court of competent jurisdiction. Any such resolution, including through the use of a Neutral Auditor as hereinafter provided, shall be reflected on a mutually agreeable final ADA-ES Closing Date Capital Contribution Schedule. The
final schedule that is established pursuant to this Section 2.4(c) or Section 2.4(d) is referred to herein as the “Final ADA-ES Contributed Capital Schedule.” 
 (d) Resolution of Disputes by Neutral Auditor. If, at the conclusion of the Negotiation Period, the parties have not resolved their disputes, then
all amounts remaining in dispute shall, at the election of either Party, be submitted to an auditor who shall be selected by the mutual agreement of the parties (“Neutral Auditor”). The Neutral Auditor shall be engaged no
later than 10 days after an election by a Party to submit its objections to the Neutral Auditor, and each party agrees to execute, if requested by the Neutral Auditor, a reasonable engagement letter. The Neutral Auditor shall be a nationally
recognized independent registered 

  

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accounting firm that is not rendering (and during the preceding two-year period has not rendered) audit services to either ADA-ES or the ECP Parties or any
of their respective Affiliates. If the parties are unable to agree on such Neutral Auditor, then the respective accounting firms of ADA-ES and the ECP Parties shall choose the Neutral Auditor. All fees and expenses of the Neutral Auditor shall be
borne equally by ADA-ES and the ECP Parties. The Neutral Auditor shall act as an arbitrator to determine, based solely on the presentations by ADA-ES and the ECP Parties, and not by independent review, only those issues still in dispute. The Neutral
Auditor’s determination shall be made within 30 days of its engagement, shall be set forth in a written statement delivered to ADA-ES and the ECP Parties and shall be final, binding, conclusive and nonappealable. Such determination will be
reflected in the Final ADA-ES Contributed Capital Schedule. 
 (e) Immediately upon the acceptance or other determination of the Final ADA-ES
Capital Contribution Schedule, ADA-ES shall (i) assign and convey to the Red River Project Company all Tangible Personal Property reflected on such Final ADA-ES Contributed Capital schedule, and (ii) be deemed to have made a capital
contribution to the Development Company in an amount equal to the total expenditures set forth on such ADA-ES Closing Date Contributed Capital Schedule (the “ADA-ES Adjustment Amount”) pursuant to and in accordance with
Section 3.3(c)(i) of the Operating Agreement. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE ECP PARTIES 
 Each ECP Party hereby represents
and warrants, severally and not jointly and solely with respect to itself and not with respect to any other ECP Party to ADA-ES, as of each of the Effective Date and the Closing Date, as follows: 
 3.1 Corporate Existence of the ECP Party. The ECP Party is a limited partnership duly formed, validly existing and in good standing under the Laws
of the State of Delaware and has the power and authority to execute and deliver this Agreement and the Operative Agreements to which it is a party, to perform its obligations hereunder and thereunder and to consummate the Transactions. 

3.2 Authority. The execution and delivery by the ECP Party of this Agreement and the Operative Agreements to which it is a party, and the
performance by such ECP Party of its obligations hereunder and thereunder, have been duly and validly authorized by all requisite action on the part of such ECP Party under the laws of the State of Delaware and under its Charter Documents. This
Agreement has been duly and validly executed and delivered by the ECP Party and constitutes, and upon the execution and delivery by the ECP Party of the Operative Agreements to which it is a party, such Operative Agreements will constitute legal,
valid and binding obligations of the ECP Party enforceable against the ECP Party in accordance with their terms, except as such enforceability may be limited by bankruptcy laws and other Laws affecting creditors’ rights generally, and general
principles of equity that restrict the availability of equitable remedies. 
  

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 3.3 No Conflicts. The execution and delivery by the ECP Party of this Agreement does not, and the
execution and delivery by the ECP Party of the Operative Agreements to which it is a party, the performance by the ECP Party of its obligations under this Agreement and such Operative Agreements and the consummation of the Transactions will not:

 (a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the Charter Documents
of the ECP Party; 
 (b) conflict with or result in a violation or breach of any term or provision of any Law or Order
applicable to the ECP Party or any of its assets and properties (other than such conflicts, violations or breaches which could not reasonably be expected to have a material adverse effect on the validity or enforceability of this Agreement, the
Operative Agreements to which it is a party or the Transactions); or 
 (c) except as could not reasonably be expected to have
a material adverse effect on the validity or enforceability of this Agreement, the Operative Agreements to which the ECP Party is a party or the Transactions, (i) conflict with or result in a material violation or breach of,
(ii) constitute (with or without notice or lapse of time or both) a material default or result in the imposition of any fees or penalties under, (iii) give rise to any right of termination, amendment, acceleration or cancellation of,
(iv) require the ECP Party to obtain any material consent, approval or action of, make any filing with or give any notice to any Person as a result or under the terms of, or (v) result in the creation or imposition of any material Lien
upon the ECP Party or any of their assets or properties under any contract, lease, mortgage, instrument or other document or agreement or authorization of a Governmental Authority to which the ECP Party is a party or by which any of the ECP
Party’s assets and properties are bound. 
 3.4 Governmental Approvals and Filings. Except for any filing or consent required
under the HSR Act, no material consent, approval or action of, filing with or notice to any Governmental Authority on the part of the ECP Party is required in connection with the execution, delivery and performance of this Agreement or any of the
Operative Agreements to which it is a party or the consummation of the Transactions, except where the failure to obtain any such consent, approval or action, to make any such filing or to give any such notice would not adversely affect the ability
of the ECP Party to consummate the Transactions or to perform its obligations hereunder or thereunder. 
 3.5 Accredited Investor. The
ECP Party is an “accredited investor” as that term is defined in Rule 501 of Regulation D under the Securities Act and is acquiring the portion of the ECP Membership Interest for investment solely for its own account and not with a view to
or in connection with the distribution thereof. The ECP Party has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Development Company and its membership
interest therein and has concluded that it is able to bear these risks and fully understands and acknowledges that its investment in the Development Company and its membership interest therein is a speculative investment which involves a high degree
of risk. The ECP Party further understands and agrees that the ECP Membership Interest and other interests in the Development Company will be governed by, and subject to the restrictions set forth in, the Operating Agreement. 
  

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 3.6 Brokers, Etc. All negotiations relative to this Agreement, the Operative Agreements and the
Transactions have been carried out by the ECP Party without the intervention or assistance of any Person on behalf of the ECP Party that might give rise to any valid claim by any Person against the ECP Party or the ADA-ES Entities for a
finder’s fee, brokerage commission or similar payment. 
 3.7 Legal Proceedings. There are no Actions or Proceedings pending or,
to the ECP Party’s Knowledge, threatened that could reasonably be expected to result in a Material Adverse Effect on the ECP Party or that question the validity of this Agreement, or of the Operative Agreements or of any action taken or to be
taken pursuant to or in connection with the provisions of this Agreement or the Operative Agreements. There are no judgments, Orders, decrees, citations, fines or penalties heretofore assessed against the ECP Party that could reasonably be expected
to result in a Material Adverse Effect on the ECP Party or that impair, estop, impede, restrain, ban or otherwise materially adversely affect the ECP Party’s ability to satisfy or perform any of its obligations pursuant to this Agreement under
any federal, state or local Law. 
 3.8 Availability of Funds. The ECP Party has, on the Effective Date, and at the Closing will have,
access to liquid capital or committed sources of capital sufficient to permit the ECP Party to perform timely its obligations under this Agreement and the Operative Agreements to which it is a party which are required to be performed on or within
the 15 Business Days following the Closing Date and to its Knowledge there is no occurrence, event or condition with respect to it that would prevent it from performing all of its obligations under this Agreement after Closing. 
 3.9 No Other Representations or Warranties. The ECP Party acknowledges that, except for the representations and warranties of ADA-ES contained in
Article IV (Representations and Warranties of ADA-ES) of this Agreement, neither ADA-ES nor any of its directors, officers, employees, Affiliates, agents, advisors or representatives makes, has made or shall be deemed to have made any
representation or warranty, express or implied. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF ADA-ES 
 ADA-ES hereby represents and warrants to the ECP Parties, as of
each of the Effective Date and the Closing Date, as follows: 
 4.1 Corporate Existence of ADA-ES. ADA-ES is a corporation duly
organized, validly existing and in good standing under the Laws of the State of Colorado with full power and authority to execute and deliver this Agreement and the Operative Agreements to which it is a party, to perform its obligations hereunder
and thereunder and to consummate the Transactions. 
 4.2 AC Venture Companies. Each of the AC Venture Companies is a limited
liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware with full power and authority to own and operate its respective assets, properties and businesses, including their respective Projects.

  

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 4.3 Authority. The execution and delivery by ADA-ES of this Agreement and the Operative Agreements
to which it is a party, and the performance by ADA-ES of its obligations hereunder and thereunder, have been duly and validly authorized by all requisite action on the part of ADA-ES under the laws of the State of Colorado and under its Charter
Documents. This Agreement has been duly and validly executed and delivered by ADA-ES and constitutes, and upon the execution and delivery by ADA-ES of the Operative Agreements to which it is a party, such Operative Agreements will constitute legal,
valid and binding obligations of ADA-ES enforceable against ADA-ES in accordance with their terms except as such enforceability may be limited by bankruptcy laws and other Laws affecting creditors’ rights generally, and general principles of
equity that restrict the availability of equitable remedies. 
 4.4 No Conflicts. The execution and delivery by ADA-ES of this
Agreement and the Operative Agreements to which it is a party do not, and the performance by ADA-ES of its obligations under this Agreement and such Operative Agreements and the consummation of the Transactions will not: 
 (a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the Charter Documents of any of the
ADA-ES Entities; 
 (b) subject to obtaining the consents, approvals and actions, making the filings and giving the notices
disclosed on Section 4.4(b) of the Disclosure Schedule, conflict with or result in a violation or breach of any term or provision of any Law or Order applicable to the ADA-ES Entities or any of their assets or properties (other than such
conflicts, violations or breaches which could not reasonably be expected to have a material adverse effect on the validity or enforceability of this Agreement, the Operative Agreements to which it is a party or the Transactions); or 
 (c) except as disclosed on Section 4.4(c) of the Disclosure Schedule or as could not reasonably be expected to adversely
affect the validity or enforceability of this Agreement, the Operative Agreements to which it is a party or the Transactions, (i) conflict with or result in a material violation or breach of, (ii) constitute (with or without notice or
lapse of time or both) a material default or result in the imposition of any fees or penalties under, (iii) give rise to any right of termination, amendment, acceleration or cancellation of, (iv) require the ADA-ES Entities to obtain any
material consent, approval (other than the consents and approvals already listed in Section 2.3(c)(ii) of the Disclosure Schedule), or action of, make any filing with or give any notice to any Person (other than those filings and
consents with Governmental Authorities listed in Section 4.5 of the Disclosure Schedule) as a result or under the terms of or (v) result in the creation or imposition of any material Lien upon the ADA-ES Entities or any of their
assets or properties under any Contract, lease, mortgage, instrument or other document or agreement or authorization of a Governmental Authority to which the ADA-ES Entities are a party or by which any of their assets and properties are bound.

  

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 4.5 Governmental Approvals and Filings. Except as disclosed on Section 4.5 of the
Disclosure Schedule, or any filing or consent required under the HSR Act, no material consent, approval or action of, filing with or notice to any Governmental Authority on the part of any of the ADA-ES Entities is required in connection with
the execution, delivery and performance of this Agreement or any of the Operative Agreements to which they are a party or the consummation of the Transactions, except where the failure to obtain any such consent, approval or action, to make any such
filing or to give any such notice would not adversely affect the ability of the ADA-ES Entities to consummate the Transactions or to perform their respective obligations hereunder or thereunder. For the sake of clarity, “performance” of
the Operative Agreements as used in this representation is not intended to extend to the need of each Project Company to obtain permits and approvals necessary for activated carbon production and supply. 
 4.6 Intellectual Property. 
 (a) Part A of Section 4.6(a) of the Disclosure Schedule contains a true and complete list of all Transferred Intellectual Property that constitutes patents, patent applications, patent disclosures and invention disclosures,
trademark and service mark registrations and applications, copyright registrations and applications, internet domain names, and material unregistered trademarks, service marks and copyrights, including all such Intellectual Property required in
connection with the construction and operation of the Projects. Part B of Section 4.6(a) of the Disclosure Schedule contains a true and complete list of all other patents, patent applications, patent disclosures and invention
disclosures, trademark and service mark registrations and applications, copyright registrations and applications, internet domain names, and material unregistered trademarks, service marks and copyrights used or held for use in connection with the
Business, including all such Intellectual Property required in connection with the construction and operation of the Projects (other than Transferred Intellectual Property). Except as disclosed in Section 4.6(a) of the Disclosure
Schedule, with respect to each item of Intellectual Property required to be listed on Section 4.6(a) of the Disclosure Schedule, (i) one of the ADA-ES Entities is the sole owner and possesses all right, title and interest in and to
the item, (ii) none of the ADA-ES Entities has granted to any Person any license, option or other rights in or to such item, (iii) no action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand is pending or, to
ADA-ES’s Knowledge, is threatened that challenges the validity, enforceability, registration, use or ownership of the item and (iv) any registration with, application to, filing with and/or issuance from any Governmental Authorities with
respect to the item is subsisting, unexpired and in full force and effect. 
 (b) Except as disclosed in
Section 4.6(b) of the Disclosure Schedule, (i) the ADA-ES Entities are in possession of and have good title to, or have valid rights under Contract to use, all the Transferred Intellectual Property and the Licensed IP, free and
clear of all Liens, except for Permitted Encumbrances, (ii) there are no material restrictions on the direct or indirect transfer of any Contract, or any interest therein, held by the Business in respect of any Transferred Intellectual
Property, (iii) none of the ADA-ES Entities has received any notice that it is in material default (or with the giving of notice or lapse of time or both, would be in material default) under any Contract to use any of the Transferred
Intellectual Property or Licensed IP, (iv) to ADA-ES’s Knowledge, no rights of any of the ADA-ES Entities in the Transferred Intellectual Property or the Licensed IP is being 

  

 14 

 
infringed, diluted, misappropriated or otherwise violated by any other Person, nor is the conduct of the Business infringing, diluting, misappropriating or
otherwise violating any of the rights of Intellectual Property of any other Person, (v) except for the Intellectual Property used by ADA-ES in the provision of services to the Company pursuant to the Master Services Agreement, the Underlying
Assets, the ADA-ES Contributed Assets and the Licensed IP include all Intellectual Property used or held for use as of the Effective Date and the Closing Date, as applicable, in connection with or necessary for the conduct of the Business,
including, without limitation, the making of activated carbon and developing, constructing, owning, activating and supplying activated carbon production facilities and related assets and (vi) the execution, delivery and performance of this
Agreement and the Operative Agreements, and the consummation of the Transactions, will not result in the loss or impairment of, or give rise to any right of any third Person to terminate the right of the ADA-ES Entities to own or use, any of the
Transferred Intellectual Property or Licensed IP, nor require the consent of any Person in respect thereof. 
 (c) Except as
disclosed in Section 4.6(c) of the Disclosure Schedule, all former and current officers, directors, employees, personnel, consultants, advisors, agents and of each of the ADA-ES Entities, and each of their predecessors, who have
contributed to or participated in the conception or development of Intellectual Property for any of the ADA-ES Entities have entered into valid and binding proprietary rights agreements with one of the ADA-ES Entities, as applicable, vesting or
assigning ownership of such Intellectual Property in such ADA-ES Entity. The ADA-ES Entities are taking and have taken all steps necessary to maintain, police and protect each item of the Intellectual Property used or held for use in connection with
the Business or necessary to the conduct of the Business. 
 4.7 Liabilities. The AC Venture Companies and the Business do not have
any Liabilities, other than Liabilities in respect of any Business Contract, Business License, Real Property Lease or Tangible Personal Property Lease, liabilities assumed pursuant to Section 5.2(b), and the Debt Financing Fee, in each case to
the extent the same constitute Assumed Liabilities. 
 4.8 Legal Proceedings. Except for those Actions or Proceedings disclosed on
Section 4.8 of the Disclosure Schedule (“Existing Actions or Proceedings”), (a) there are no Actions or Proceedings pending or, to ADA-ES’s Knowledge, threatened against, relating to or affecting the AC
Venture Companies, the Underlying Assets or the Business, (b) there are no Orders outstanding against the AC Venture Companies or the Business, (c) there are no Actions or Proceedings pending or, to ADA-ES’s Knowledge, threatened that
could be reasonably expected to result in a Material Adverse Effect on ADA-ES, the AC Venture Companies or the Business or that question the validity of this Agreement or the Operative Agreements or of any action taken or to be taken pursuant to or
in connection with the provisions of this Agreement or the Operative Agreements and (d) there are no judgments, Orders, decrees, citations, fines or penalties heretofore assessed against the ADA-ES Entities that could be reasonably expected to
result in a Material Adverse Effect on ADA-ES, the AC Venture Companies or the Business or that impair, estop, impede, restrain, ban or otherwise materially adversely affect the ADA-ES Entities’ ability to satisfy or perform any of their
obligations pursuant to this Agreement under any federal, state or local Law. 
  

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 4.9 Compliance with Laws and Orders. Except as disclosed on Section 4.9 of the Disclosure
Schedule, (a) the Business is not in violation of or in default under, and has materially complied with, each Law and Order applicable to the Business, including, without limitation, the development, construction, ownership, operation,
maintenance and use of the Projects and (b) the ADA-ES Entities have not received any notification of any asserted present or past material failure to comply with such Laws or Orders. 
 4.10 Benefit Plans. Except as disclosed on Section 4.10 of the Disclosure Schedule, the AC Venture Companies do not (a) have any
employees, (b) sponsor, maintain, participate in or contribute to (or have any obligation to do so), or otherwise have any present or future liability (whether absolute or contingent, including, without limitation, any such liability pursuant
to Title IV of ERISA) with respect to any Benefit Plan or (c) have any present or future liability with respect to any current or former employee of the ADA-ES Entities (including, without limitation, any wages, incentive compensation, vacation
pay, expense reimbursement, statutory deductions or withholdings, employment termination costs or employee benefits). Except as disclosed in Section 4.10 of the Disclosure Schedule, the execution of, shareholder approval of or
consummation of the Transactions contemplated by this Agreement will not entitle any member of the Team to any form of compensation payment or benefit from the AC Venture Companies or the Business. 
 4.11 Underlying Assets. As of the Effective Date, ADA-ES has, and the respective AC Venture Companies have, and as of the Closing Date, the AC
Venture Companies to which the Underlying Assets are transferred shall have, good and marketable title to, and be the lawful owner of, the Underlying Assets and the ADA-ES Contributed Assets. The Underlying Assets, the ADA-ES Contributed Assets, the
provision of services by ADA-ES to the Development Company and its Affiliates pursuant to the Master Services Agreement, and the Licensed IP constitute all assets, properties and contract rights of each of the ADA-ES Entities used or held for use in
connection with the operation of the Business or necessary to the conduct of the Business. The transfer of the Underlying Assets by ADA-ES to the Project Companies and Supply Company pursuant to this Agreement, the transfer of the ADA-ES Contributed
Assets to the Development Company pursuant to this Agreement, the licensing of the Licensed IP by ADA-ES to the Development Company pursuant to the Intellectual Property License Agreement and the provision of services by ADA-ES to the Development
Company and its Affiliates pursuant to the Master Services Agreement, will effectively convey to the AC Venture Companies all assets, properties and contract rights of each of the ADA-ES Entities used or held for use in connection with the operation
of the Business or necessary to the conduct of the Business (whether owned, leased, held under license or otherwise). Except for the provision of services pursuant to the Master Services Agreement and the Licensed IP, there are no shared assets,
properties or contract rights of each of the ADA-ES Entities used or held for use in connection with the operation of the Business or necessary to the conduct of the Business (whether owned, leased, held under license or otherwise) which are used or
held for use in connection with the Business and in connection with the Other Businesses. 
 4.12 Real Property. 
 (a) Section 4.12(a) of the Disclosure Schedule identifies all Owned Real Property owned, used, held or operated in connection
with the Business. Except as disclosed on Section 4.12(a) of the Disclosure Schedule, the Red River Project 

  

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Company owns and has good, marketable and indefeasible title to the Owned Real Property and the Improvements thereon, free and clear of all Liens, except for
Permitted Encumbrances and all Liens that will be released as of the Closing Date. All Liens against the Owned Real Property (other than Permitted Encumbrances) will be released as of the Closing Date. 
 (b) Section 4.12(b) of the Disclosure Schedule identifies all of the options for real property held or owned by ADA-ES or the
AC Venture Companies relating to the Projects or any additional projects being contemplated or developed in connection with the Business (the “Real Property Options”). Each of the Real Property Options is a legal, valid and binding
agreement, enforceable in accordance with its terms, of the Person who is the optionee thereunder and, to ADA-ES’s Knowledge, each other Person that is a party thereto, and has been assigned to an AC Venture Company on or before the Closing
Date and may be exercised in accordance with its terms by such AC Venture Company, to purchase the property more particularly described therein. As to each of the Real Property Options, there is presently no material default (or any condition or
event which, after notice or lapse of time or both, would constitute a default) thereunder, nor are there any pending or, to ADA-ES’s Knowledge, threatened claims by any Person alleging any such material default. Except as set forth in
Section 4.12(b) of the Disclosure Schedule, (i) the enforceability of the Real Property Options will not be impaired in any material respect by the execution or delivery of this Agreement or the consummation of the Transactions,
(ii) neither the execution and delivery of this Agreement, nor the consummation of the Transactions, will entitle any optionor under the Real Property Options to terminate such Real Property Options prior to the scheduled expiration thereof and
(iii) none of the ADA-ES Entities are currently participating in any discussions or negotiations regarding termination of any of the Real Property Options prior to the scheduled expiration of such Real Property Options (whether by reason of a
breach or alleged breach by the optionee thereunder or otherwise). 
 (c) Section 4.12(c) of the Disclosure Schedule
identifies all of the Leased Real Property and Real Property Leases owned, used, held or operated in connection with the Business. Each of ADA-ES and the Red River Project Company has a valid and subsisting leasehold estate in and the right to
quiet enjoyment of the real properties subject to the Real Property Leases, subject to the terms of such Real Property Leases, free and clear of all Liens, except for Permitted Encumbrances, Liens that will be released as of the Closing Date and the
Liens disclosed on Section 4.12(c) of the Disclosure Schedule. All Liens against the AC Venture Companies’ interests in the Leased Real Property (which, for the avoidance of doubt, excludes mortgages by the landlord of such Leased
Real Property), other than Permitted Encumbrances, will be released as of the Closing Date. Each of the Real Property Leases is a legal, valid and binding agreement, enforceable in accordance with its terms, of the Person who is the
“tenant” or “lessee” thereunder and, to ADA-ES’s Knowledge, each other Person that is a party thereto, and from and after the Closing Date, will be enforceable against the Red River Project Company or Crowfoot Supply
Company, LLC, respectively, and, to the Knowledge of ADA-ES, each other Person that is a party thereto. As to each Real Property Lease, there is presently no material default (or any condition or event which, after notice or lapse of time or both,
would constitute a 

  

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default) thereunder, nor are there any pending or, to ADA-ES’s Knowledge, threatened claims by any Person alleging any such material default. Except as
set forth in Section 4.12(c) of the Disclosure Schedule, (i) the enforceability of the Real Property Leases will not be impaired in any material respect by the execution or delivery of this Agreement or the consummation of the
Transactions, (ii) neither the execution and delivery of this Agreement, nor the consummation of the Transactions, will entitle the “landlord” or “lessor” under any Real Property Lease to terminate such Real Property Lease
prior to the scheduled expiration thereof and (iii) none of the ADA-ES Entities are currently participating in any discussions or negotiations regarding termination of any Real Property Lease prior to the scheduled expiration of such Real
Property Lease (whether by reason of a breach or alleged breach by the tenant thereunder or otherwise). 
 (d) To the extent
in the ADA-ES Entities’ possession or Control, ADA-ES has delivered or made available to the ECP Parties prior to the execution of this Agreement true and complete copies of the Real Property Leases, Easements, Real Property Options and all
deeds, certificates of occupancy, title insurance commitments or policies, title reports, title opinions, surveys and similar documents with respect to the Real Property, the Real Property Leases, Real Property Options and/or the Easements. Except
as disclosed on Section 4.12(d) of the Disclosure Schedule, the Real Property Leases reflect the entire agreement with the landlord thereunder with respect thereto. Except as disclosed on Section 4.12(d) of the Disclosure
Schedule, the Real Property Options reflect the entire agreement with the counterparty thereunder with respect thereto. 
 (e) Except as disclosed on Section 4.12(e) of the Disclosure Schedule, the Improvements and the Easement Improvements are in good operating condition and in a state of good maintenance and repair, ordinary wear and tear
excepted. Except as set forth in Section 4.12(e) of the Disclosure Schedule, none of the ADA-ES Entities have received written notice from any Governmental Authority that any portion of the Real Property, or any of the Improvements or
Easement Improvements located thereon, currently violates any applicable Laws in any material respect, including those Laws relating to zoning, building, land use, health and safety, fire, air, sanitation and noise control. Except as set forth in
Section 4.12(e) of the Disclosure Schedule, except for any applicable Permitted Encumbrances, no Real Property is subject to any written governmental decree or Order specifically issued with respect to such Real Property (or, to
ADA-ES’s Knowledge, any threatened or proposed Order) requiring the repair, removal or alteration of any Improvements or Easement Improvements located on such Real Property. 
 (f) Except as disclosed on Section 4.12(f) of the Disclosure Schedule, there are no condemnation or appropriation proceedings
pending or, to ADA-ES’s Knowledge, threatened against any of the Real Property, the Improvements or the Easement Improvements. 
 (g) Except as disclosed on Section 4.12(g) of the Disclosure Schedule, there are no options, rights of first refusal, preferential purchase rights or similar rights in effect for any Person to purchase any of the Owned Real
Property, or to ADA-ES’s Knowledge, any of the Leased Real Property or, except for the Real Property Options, the real property related to the Real Property Options. 
 (h) The Murchison Project is supplied with utilities and other services necessary (i) for the operation of the business located
thereon in accordance with past practice and (ii) for the future operation of the Business as presently planned to be 

  

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conducted by the Murchison Project, including future phases of development currently planned in due course, or has rights to connect to such services and
utilities and has legal access to such services and utilities, including, without limitation, gas, electricity, water, telephone, sanitary sewer and storm sewer, all of which services are adequate in accordance with all applicable laws and are
provided via public roads or via permanent, irrevocable, appurtenant easements benefiting such Real Property. 
 (i) There are
no shared facilities or services at the Real Property which are shared between the Business and any of the Other Businesses. 
 (j) 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, and access to each parcel of Real Property
is provided by paved, gravel, dirt or other improved public right-of-way with adequate curb cuts available. 
 (k) There are
no Improvements on the Owned Real Property. The Improvements on the Leased Real Property comply with all Laws, including, without limitation, all federal, state and local statutes, ordinances, codes, Orders, requirements, rules and regulations, and
the terms of any entitlements benefiting the Real Property on which such Improvements are located, independently and without benefit of any restrictions or burdens imposed upon other real property, or other rights with respect to any other real
property, such as, for example: (i) parking facilities needed for the Improvements but located on real property not constituting Real Property as defined in this Agreement; (ii) development restrictions affecting such other real property
or (iii) other use or construction limitations affecting such other real property. 
 4.13 Capitalized Tangible Personal
Property. Except as disclosed on Section 4.13 of the Disclosure Schedule, the Business is in possession of and has good title to, or has valid leasehold interests in or valid rights under Contract to use, the Capitalized Tangible
Personal Property free and clear of all Liens, except for the Permitted Encumbrances, and all items of such Capitalized Tangible Personal Property are in good operating condition and in a state of good maintenance and repair, ordinary wear and tear
excepted. All Liens disclosed on Section 4.13 of the Disclosure Schedule will be released as of the Closing Date. 
 4.14 LLC
Interests. 
 (a) ADA-ES owns each of the AC Venture Company Interests free and clear of all Liens. The AC Venture
Company Interests constitute all of the outstanding equity interests in each of the AC Venture Companies. None of the AC Venture Companies is obligated to issue any equity interests, or any security convertible into or exercisable or exchangeable
for such interests, or any options, warrants, plans, conversion rights or other contractual rights to any of the foregoing and no Person has any right of first refusal or any preemptive rights in connection with any of the AC Venture Company
Interests or the Transactions. Except as disclosed on Section 4.14 of the Disclosure Schedule, none of the AC Venture Companies owns an equity or other interest in any other Person. After giving effect to the Transactions contemplated
hereby, except as 

  

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specifically provided in this Agreement and the Operating Agreement, none of ADA-ES or any of its Affiliates shall have any rights to the Project Companies
or the Supply Company or any property thereof. Except as specifically contemplated by this Agreement and the Transactions, there are no outstanding preemptive or other rights, plans, options, warrants, conversion rights or agreements for the
purchase or acquisition from any AC Venture Company of any of its membership interests. 
 (b) The membership interests in the
Development Company, including the ECP Membership Interest, to be issued at the Closing to the ECP Parties pursuant to this Agreement and the Operating Agreement, when issued and delivered in accordance with the terms hereof and thereof, will be
duly authorized, validly issued and entitled to the benefits under, and subject to the restrictions of, the Operating Agreement. Except to the extent provided in the Operating Agreement, the Development Company is not obligated to issue any other
interests in the Development Company, or any security convertible into or exercisable or exchangeable for such interests, or any options, warrants, plans, conversion rights or other contractual rights to any of the foregoing and no Person has any
right of first refusal or any preemptive rights in connection with interests in the Development Company. After giving effect to the issuance of membership interests to the ECP Parties and ADA-ES at the Closing, each of ADA-ES, on the one hand, and
the ECP Parties, on the other hand, will own and hold a 50% membership interest in the Development Company, and there will be no other interests in the Development Company outstanding. 
 4.15 Utilities and Other Services. The ADA-ES Entities have (or are reasonably expected to have, as and when necessary, for the development,
construction, ownership, operation, maintenance and use of the Red River Project and Murchison Project and on commercially reasonable terms) all utility services, and roadway access and other services and materials necessary for the development,
construction, ownership, operation, maintenance and use of the Murchison Project and the Red River Project, including, in accordance with the Business Contracts: (i) sufficient supplies of water, coal and bromine to enable the Red River Project
to operate at design capacity and (ii) sufficient supplies of activated carbon and bromine to enable the Murchison Project to satisfy the existing Business Contracts and reasonably foreseeable future customer commitments of the Red River
Project Company until such a time as the Red River Project Company is able to satisfy such Business Contracts and other customers’ commitments independent of the Supply Company. All of such services and materials held by any ADA-ES Entities
will be held by the Red River Project and the Murchison Project, respectively, as of the Closing. 
 4.16 Business Contracts.

 (a) Part A of Section 4.16(a) of the Disclosure Schedule sets forth a list, as of the Effective Date, of the
following Contracts to which an AC Venture Company is a party, Part B of Section 4.16(a) of the Disclosure Schedule sets forth a list of the following Contracts to which any ADA-ES Entity is a party or by which the Business is bound
(other than those Contracts disclosed on Part A of Section 4.16(a) of the Disclosure Schedule), and to which an AC Venture Company will be a party as of the Closing Date, and Part C of Section 4.16(a) of the Disclosure
Schedule sets forth a list of the following Contracts that any 

  

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ADA-ES Entities are in the process of negotiating relating to the Business (the Contracts listed on Section 4.16(a) of the Disclosure Schedule
that meet the descriptions in this Section 4.16(a) being collectively referred to herein as the “Business Contracts”): 
 (i) Contracts for the construction, development, engineering, procurement, installation, testing or construction management of the Business; 
 (ii) Contracts for the future purchase, exchange or sale of activated carbon, whether treated or untreated; 
 (iii) Contracts for the future purchase, exchange or sale of coal, bromine or other feedstock, supplies or raw materials; 
 (iv) Contracts for the transportation or storage of coal, feedstock, activated carbon, or any other raw materials used, proposed to be
used or held for use in connection with the Business; 
 (v) interconnection (including gas, water, wastewater discharge and
electrical) Contracts; 
 (vi) Contracts (A) for the purchase or sale of any asset or property or provision of any
service or (B) that grant a right or option to purchase or sell any asset or property or receive services other than, in each case, Contracts with a value of less than $50,000 individually or $100,000 in the aggregate; 
 (vii) Contracts under which any ADA-ES Entity has created, incurred, assumed or guaranteed any outstanding Indebtedness, or under which
any ADA-ES Entity has imposed or permitted to exist a Lien on any of its assets or properties, tangible or intangible; 
 (viii) Contracts with ADA-ES, or any of its employees, officers, directors or Affiliates, including, without limitation, Contracts to employ or terminate officers or other employees performing services for the Business; 
 (ix) Contracts for consulting services providing annual compensation in excess of $100,000 or potential bonus or bonuses greater than
$100,000 in the aggregate; 
 (x) any collective bargaining or project labor Contracts; 
 (xi) outstanding futures, swap, collar, put, call, floor, cap, option or other Contracts that are intended to benefit from or reduce or
eliminate the risk of fluctuations in the price of commodities; 
 (xii) Contracts that purport to limit the freedom of any AC
Venture Company to compete in any line of business or in any geographic area or otherwise place restrictions on the conduct of business of any AC Venture Company; 
  

 21 

 (xiii) partnership, joint venture or limited liability company agreements (other than the
Operating Agreement and the Charter Documents of the AC Venture Companies); 
 (xiv) Contracts that require aggregate capital
expenditures in excess of $250,000; 
 (xv) Contracts for the purchase, sale, lease or license of milling equipment (or
related services) or railcars; 
 (xvi) Contracts with any Governmental Authority; 
 (xvii) joint marketing or development Contracts; 
 (xviii) insurance Contracts; and 
 (xix) any other Contract, not referred to above, that is material to any AC Venture Company or the Business. 
 (xx) Any other Contract not referred to above that will be assigned to the Project Companies at the Closing. 
 (b) Prior to the execution of this Agreement, ADA-ES has made available to the ECP Parties true and complete copies, as amended, of all the Business Contracts, together with all schedules, exhibits, task orders and
purchase orders thereto, including written summaries of any such Business Contracts that are oral Contracts (except those Business Contracts identified in Part C of Section 4.16(a) of the Disclosure Schedule that are not yet in draft
form and are not oral Contracts). Except as disclosed on Section 4.16(b) of the Disclosure Schedule, (i) the Business has valid rights in each Business Contract identified on Part A and Part B of Section 4.16(a) of
the Disclosure Schedule, and as of the Closing Date, the Business shall have valid rights subject to the terms of such Business Contract, free and clear of all Liens, except for Permitted Encumbrances and the Business has paid and discharged
Liabilities arising under such Business Contracts on a timely basis on or prior to the date on which such Liabilities are due and payable, (ii) each Business Contract identified on Part A and Part B of Section 4.16(a) of the
Disclosure Schedule is in full force and effect and constitutes an arms-length, legal, valid and binding agreement, enforceable in accordance with its terms against each ADA-ES Entity that is a party thereto, and to ADA-ES’s Knowledge, each
other Person that is a party thereto, and from and after the Closing Date, will be enforceable against the applicable AC Venture Company and, to ADA-ES’s Knowledge, each other Person that is a party thereto and (iii) neither the Business
nor, to ADA-ES’s Knowledge, any other party to such Business Contract is (or with notice or lapse of time of both, would be) in material violation, breach or default thereunder. All Liens disclosed on Section 4.16(b) of the Disclosure
Schedule will be released as of the Closing Date. 
  

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 (c) With respect to each Business Contract that is subject to termination for failure to
commence services or to satisfy a condition precedent, ADA-ES is not aware of any reason why such services will not be provided or such condition precedent will not be satisfied in accordance with the terms of such Business Contract, subject to
satisfaction of any applicable condition precedent specified in any such Business Contract by a party other than an ADA-ES Entity. 
 4.17
Business Licenses. 
 (a) Existing Business Licenses. Section 4.17(a) of the Disclosure
Schedule lists each of the Business Licenses that have been issued to the Red River Project Company, the Supply Company, the Morton Project Company and the Underwood Project Company, as applicable (or issued to any ADA-ES Entity and have been or
will be, at or prior to the Closing, validly transferred to the Red River Project Company, the Supply Company, the Morton Project Company and the Underwood Project Company, as applicable). Each such Business License (i) is in full force and
effect, (ii) is not subject to any current legal proceeding or waiting period and (iii) is not subject to any appeals (and all appeal periods in relation thereto have expired). To the Knowledge of ADA-ES, no event has occurred and is
continuing which permits, or after notice or lapse of time or both would permit, any materially adverse modification, revocation or termination of, or any other material adverse change in, any such Business License, excluding in each case by virtue
of the termination thereof in accordance with its terms. 
 (b) Pending Business Licenses. Section 4.17(b) of
the Disclosure Schedule lists each of the Business Licenses not disclosed on Section 4.17(a) of the Disclosure Schedule for which the Red River Project Company, the Supply Company, the Morton Project Company or the Underwood Project
Company has made an application to the appropriate Governmental Authority (or for which any other ADA-ES Entity has made an application to the appropriate Governmental Authority, which applications will be, at or prior to the Closing, transferred to
the Red River Project Company, the Supply Company, the Morton Project Company or the Underwood Project Company as applicable). No ADA-ES Entity has received notification from a Governmental Authority that any such Business License will not be issued
to the Red River Project Company on the basis of such application when required for the development and construction of the first production line of the Red River Project as contemplated by the Business Contracts without materially burdensome
conditions on or before the date such Business Licenses are required to be obtained by the Red River Project Company under applicable Laws. Prior to the Effective Date, ADA-ES has furnished or made available to the ECP Parties true and complete
copies of all Business Licenses disclosed in Section 4.17(a) and Section 4.17(b) of the Disclosure Schedule. 
 (c) Business Licenses Required, but Not Yet Pursued. Section 4.17(c) of the Disclosure Schedule lists each of the Business Licenses not listed on Section 4.17(a) or (b) or 4.5(b) of the Disclosure
Schedule that (i) will be required for the activated carbon supply operations presently conducted and presently planned to be conducted by the Supply Company for the Murchison Project, or (ii) will be required to be obtained by the Red
River Project Company for the development, construction and operation of the first production line of the Red River Project as contemplated by the Business Contracts. Except as set forth in Section 4.17(c) of the Disclosure Schedule,
none of such Business Licenses are currently required for the existing activated 

  

 23 

 
carbon supply operations of the Murchison Project or the present stage of the development and construction of the Red River Project, in each case pursuant to
applicable Laws and as contemplated by the Business Contracts. All of such Business Licenses are expected to be obtained in a timely manner when required for the activated carbon supply operations of the Murchison Project or the development,
construction and operation of the Red River Project, in each case without material expense other than those expenses specifically identified on Section 4.16(c) of the Disclosure Schedule or adverse conditions. 
 (d) Business Licenses for Red River and Supply Company. Sections 4.17(a), 4.17(b) and 4.17(c) of the Disclosure
Schedule list all Business Licenses that (i) are or will be required for the activated carbon production and supply operations presently conducted and presently planned to be conducted by the Supply Company for the Murchison Project, or
(ii) are or will be required to be obtained by the Red River Project Company for the development, construction and operation of the first production line of the Red River Project as contemplated by the Business Contracts. 
 (e) Business Licenses for Morton and Underwood. ADA-ES is not aware of any facts that would be likely to prevent the Morton
Project Company or the Underwood Project Company from obtaining Licenses necessary for future phases of development in due course and before the time when they are required. 
 4.18 Insurance. Section 4.18 of the Disclosure Schedule contains a true and complete list of all insurance policies maintained with
respect to the Business. Such insurance policies are valid and effective and are in such amounts as are consistent with customary practices and standards of companies at the current stage of development of the Business. To the extent applicable,
such insurance policies satisfy the applicable requirements set forth in the Business Contracts. Except as disclosed on Section 4.18 of the Disclosure Schedule, each such insurance policy is valid and binding and in full force and
effect, all premiums due thereunder have been paid and the ADA-ES Entities have not received any notice of denial of coverage, cancellation or termination in respect of any such policy or is in default thereunder in any material respect. 

4.19 Affiliate Transactions. Except as contemplated by the Master Services Agreement or as disclosed on Section 4.19 of the Disclosure
Schedule, (a) no officer, director or Affiliate of each the ADA-ES Entities, officer or director of each such Affiliate or members of any of their “immediate family” (as such term is defined in Rule 16a-1 of the Exchange Act)
(collectively “Related Parties”) provides or causes to be provided any services (other than in his or her capacity as a director, officer or employee of such ADA-ES Entity), assets, or facilities used or held for use in
connection with the Business and (b) the Business does not provide or cause to be provided any assets, services or facilities to any Related Parties. 
 4.20 Labor Relations. Except as disclosed on Section 4.20 of the Disclosure Schedule (i) no Team member is presently a member of a collective bargaining unit and, to ADA-ES’s Knowledge,
there are no threatened or contemplated attempts to organize the Team for collective bargaining purposes, (ii) there are no controversies pending or, to ADA-ES’s Knowledge, threatened, between the ADA-ES Entities and any Team member and
(iii) to ADA-ES’s Knowledge, there are no unfair labor practice charges or complaints pending against the ADA-ES Entities before the National Labor Relations Board or any similar state agency. 
  

 24 

 4.21 Environmental Matters. 
 (a) Except as set forth in Section 4.21(a) of the Disclosure Schedule, (i) the Business is in compliance with applicable
Environmental Laws (which compliance includes, but is not limited to, the possession by the Business of all Licenses required under applicable Environmental Laws and compliance with the terms and conditions thereof), (ii) the Business has not
received any notice from any Person alleging that the Business is not in compliance with applicable Environmental Laws, (iii) there is no Environmental Claim pending or, to ADA-ES’s Knowledge, threatened against the Business,
(iv) there are no past or present actions, activities, circumstances, conditions, events or incidents, including, without limitation, the Release or presence of any Hazardous Material, which could form the basis of any Environmental Claim
against the Business, (v) the Business has not retained or assumed, either contractually, by operation of law or otherwise, any Liability under Environmental Law or any Environmental Claim of any Person that is not an Affiliate of the ADA-ES
Entities and (f) no Cleanup is being conducted or planned, nor is any Cleanup required under Environmental Laws, at any of the Real Property. 
 (b) ADA-ES has delivered or otherwise made available for inspection to the ECP Parties true, complete and correct copies and results of any reports, studies, analyses, tests or monitoring possessed or initiated by the
ADA-ES Entities pertaining to any environmental conditions in, on, beneath or adjacent to any Real Property or regarding the Business’s compliance with applicable Environmental Laws. 
 4.22 Brokers, Etc. Except for Liabilities arising out of or related to the Credit Suisse Letter, which shall be the sole and exclusive
responsibility of ADA-ES, (except the Debt Financing Fee) all negotiations relative to this Agreement, the Operative Agreements and the Transactions have been carried out by ADA-ES without the intervention or assistance of any Person on behalf of
ADA-ES that might give rise to any valid claim by any Person against ADA-ES, the ECP Parties or the AC Venture Companies for a finder’s fee, brokerage commission or similar payment. Except for the Debt Financing Fee assumed by the Development
Company on or after the Closing Date, neither the ECP Parties nor the AC Venture Companies will have any liability or otherwise suffer or incur any Loss as a result of, or in connection with, any finder’s fee, financial advisory fee, brokerage
commission or similar payment of any Person retained by the ADA-ES Entities in connection with this Agreement, the Operative Agreements or the Transactions. 
 4.23 Accredited Investor. ADA-ES is an “accredited investor” as that term is defined in Rule 501 of Regulation D under the Securities Act and is acquiring its membership interest in the Development
Company for investment solely for its own account and not with a view to or in connection with the distribution thereof. ADA-ES has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks
of its investment in the Development Company and its membership interest therein and has concluded that it is able to bear these risks and fully understands and acknowledges that its investment in the Development Company and its membership interest
therein is a speculative investment which involves a high degree of risk. ADA-ES further understands and agrees that its membership and other interests in the Development Company will be 

  

 25 

 
governed by, and subject to the restrictions, including transfer restrictions set forth in the Operating Agreement and that, in the event of any conflict
between the terms of this Agreement and the Operating Agreement, the terms of the Operating Agreement will prevail. 
 4.24 Reports and
Financial Statements. 
 (a) ADA-ES has furnished or made available (including for all purposes under this Agreement
availability through the SEC’s website) to the ECP Parties true and complete copies of ADA-ES’s (i) 2007 Form 10-K, as filed with the SEC, (ii) proxy statements related to all meetings of its shareholders (whether annual or
special) held since January 1, 2008 and (iii) all other reports of ADA-ES filed with or registration statements with respect to ADA-ES’s securities declared effective by the SEC since January 1, 2008, except registration
statements on Form S-8 relating to employee benefit plans, which are all the documents (other than preliminary material) that ADA-ES was required to file with the SEC since that date (the documents referred to in clauses (i) through (iii),
together with all accompanying exhibits and all information incorporated therein by reference, being referred to herein collectively as the “ADA-ES SEC Reports”). 
 (b) ADA-ES has timely made all filings and furnishings with the SEC required of ADA-ES pursuant to the Exchange Act during the 12 months
preceding the date of this Agreement. As of their respective dates, the ADA-ES SEC Reports were duly filed or furnished with the SEC and complied in all material respects with the requirements of the Sarbanes-Oxley Act, the Securities Act or the
Exchange Act, as the case may be, and the rules and regulations promulgated by the SEC and the NASDAQ Stock Market thereunder applicable to such ADA-ES SEC Reports. Except to the extent that information contained in any ADA-ES SEC Report filed or
furnished with the SEC and made publicly available prior to the date of this Agreement (a “Filed ADA-ES SEC Report”) has been revised or superseded by a later Filed ADA-ES SEC Report, as of their respective dates, none of the
Filed ADA-ES SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. 
 (c) The financial statements and the related notes thereto of ADA-ES and its consolidated subsidiaries included
in the ADA-ES SEC Reports (i) comply in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and present fairly the financial position of ADA-ES and its consolidated subsidiaries as
of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified subject, in the case of unaudited statements, to immaterial year-end audit adjustments; (ii) such financial statements have
been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods covered thereby (except in each case as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP); and (iii) the other financial information included in the ADA-ES SEC Reports has been derived from the accounting
records of ADA-ES and its consolidated subsidiaries and presents fairly the information shown thereby. 
  

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 4.25 Absence of Certain Changes. Except as disclosed in a reasonably apparent manner in any ADA-ES
SEC Report filed or furnished with the SEC and made publicly available prior to the date of this Agreement, since December 31, 2007, no event has occurred or condition existed that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect or prevent ADA-ES from consummating the Transactions. 
 4.26 Accuracy of Statements and
Information. * contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein, in light of the circumstances in which they are made,
not misleading. 
 4.27 Regulatory Matters. The Red River Project Company has self-certified as a qualifying “cogeneration
facility” pursuant to the Public Utility Regulatory Policies Act and FERC’s implementing regulations thereunder, and such certification is in full force and effect. As a result, the Red River Project Company is exempt from all sections of
the Federal Power Act, and FERC’s implementing regulations thereunder, except as set forth in 18 C.F.R. 292.601. Other than as described in the foregoing with respect to the Red River Project, no AC Venture Company is subject to regulation as a
“public utility” under the Federal Power Act or FERC’s implementing regulations thereunder. The Red River Project Company is not subject to regulation as an “electric public utility” under the laws of Louisiana, and no other
AC Venture Company is subject to regulation as a “utility,” “public utility,” “electric company,” “gas company” or similar entity under the laws of any state. Each of ADA-ES and the Development Company is each
a “holding company” under the Public Utility Holding Company Act of 2005 and FERC’s implementing regulations thereunder solely as a result of its ownership of the Red River Project Company. 
 4.28 Confidentiality Agreements. All confidentiality agreements between ADA-ES and other Persons considering a potential investment in the
Business (the “Confidentiality Agreements”) are in substantially the same form as that certain Confidentiality Agreement, dated as of October 30, 2007, between ADA-ES and Energy Capital Partners, LLC. Each
Confidentiality Agreement contains a provision requiring each other Person party thereto to return or destroy all information provided pursuant thereto upon ADA-ES’s request and to certify such return or destruction in writing. Neither ADA-ES
nor, to ADA-ES’s Knowledge, any other party to any such Confidentiality Agreement is (or with notice or lapse of time of both, would be) in material violation, breach or default thereunder. 
 ARTICLE V 
 TAX MATTERS 
 5.1 Tax Matters. ADA-ES hereby represents and warrants to each ECP Party, as of each of the Effective Date and the Closing Date, as follows:

 (a) All returns required to be filed with respect to Taxes pertaining to the Underlying Assets, the ADA-ES Contributed
Assets or the Business have been timely filed and all material Taxes due and payable with respect to the Underlying 

  

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Assets, the ADA-ES Contributed Assets or the Business have been timely paid. There are no Liens for Taxes on any of the ADA-ES Contributed Assets. None of
the Underlying Assets and none of the assets of the AC Venture Companies (i) is property required to be treated as owned by another Person pursuant to the provisions of Section 168(f)(8) of the Internal Revenue Code of 1954, as amended and
in effect immediately prior to the enactment of the Tax Reform Act of 1986, (ii) constitutes “tax-exempt use property” within the meaning of Section 168(h) of the IRC or (iii) is “tax-exempt bond financed property”
within the meaning of Section 168(g) of the IRC. 
 (b) None of the ADA-ES Entities or AC Venture Companies has received
from any Governmental Authority any written notice of a proposed material adjustment, deficiency or underpayment of any Taxes pertaining to the Underlying Assets, the ADA-ES Contributed Assets or the Business, which notice has not been satisfied by
payment or been withdrawn, and no action, examination or audit is ongoing, pending or requested in writing regarding Taxes by any Governmental Authority with respect to the Underlying Assets, the ADA-ES Contributed Assets or the Business. ADA-ES is
not under any obligation to pay the Taxes of any other Person, or indemnify any such other Person with respect to any Taxes which could be asserted against the Business, the Underlying Assets, the ADA-ES Contributed Assets or the AC Venture
Companies. 
 (c) Each of the AC Venture Companies is, and at all times has been, properly classified for United States
federal income tax purposes as a disregarded entity. 
 5.2 Tax Cooperation; Allocation of Taxes. 
 (a) The AC Venture Companies and ADA-ES agree to furnish or cause to be furnished to each other (and in the case of the right of the AC
Venture Companies, the ECP Parties), upon request as promptly as practicable, such information and assistance relating to the Underlying Assets, the ADA-ES Contributed Assets and the Business (including, without limitation, access to Books and
Records) as is reasonably necessary for the filing of all Tax Returns, and making of any election related to Taxes, the preparation for any audit by any Taxing Authority, and the prosecution or defense of any claim, suit or proceeding relating to
any Tax Return. The AC Venture Companies and ADA-ES shall retain all books and records with respect to Taxes pertaining to the Underlying Assets and the ADA-ES Contributed Assets for a period of at least seven years following the Closing Date. At
the end of such period, the AC Venture Companies or ADA-ES shall provide each other and the ECP Parties with at least 60 days’ prior written notice before destroying any such books and records, during which period any of the AC Venture
Companies, ADA-ES or the ECP Parties receiving such notice can elect to take possession, at its own expense, of such books and records. The AC Venture Companies and ADA-ES shall cooperate with each other (and in the case of the right of the AC
Venture Companies, the ECP Parties) in the conduct of any audit or other proceeding related to Taxes involving the Business, the Underlying Assets or the ADA-ES Contributed Assets and each shall execute and deliver such powers of attorney and other
documents as are necessary to carry out the intent of this Section 5.2(a). 
 (b) All real property taxes,
personal property taxes and similar ad valorem obligations levied with respect to the Underlying Assets or the ADA-ES Contributed Assets that have not yet become due and payable shall be assumed by, 

  

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and paid by, the AC Venture Company that owns the asset to which the tax relates. 
 (c) Except as set forth in Section 5.2(b), ADA-ES shall indemnify, defend and hold harmless the ECP Parties, the Company and
the AC Venture Companies from and against all Taxes of the ADA-ES Entities, and all other Taxes arising out of or relating to the Business, for all Pre-Closing Tax Periods. 
 (d) Any transfer, documentary, sales, use, value-added, gain, excise or other similar Taxes (including real property transfer taxes)
arising out of or in connection with the transactions contemplated by this Agreement and the Operative Agreements and any recording or filing fees with respect thereto or the instruments transferring the Underlying Assets to the AC Venture
Companies, shall be paid in equal proportion by ADA-ES, on the one hand, and the ECP Parties, on the other hand. 
 ARTICLE VI 
 COVENANTS 
 6.1 Interim Financial
Statements. As soon as practicable after the end of each calendar month following the Closing Date and pursuant to the terms of the Master Services Agreement, ADA-ES shall provide to the ECP Parties consolidated financial statements of the
Development Company and consolidating financial statements of the Project Companies and the Supply Company, consisting of a balance sheet as of the end of such month and an income statement and statement of cash flows for that month, which shall
have been prepared in accordance with GAAP consistently applied and which shall present fairly the financial position, assets and liabilities of the Business. 
 6.2 Maintenance of Insurance. ADA-ES shall continue to maintain and carry its existing insurance relating to the Business at all times during the term of the Master Services Agreement, and shall not allow any
breach, default, termination or cancellation of such insurance policies or agreements to occur or exist. Upon the request of any ECP Party, ADA-ES shall provide such ECP Party with insurance certificates showing that such coverage is in effect and
that such coverage will not be cancelled or limited on or prior to Closing. 
 6.3 Post-Closing Consultation and Cooperation. After
Closing, ADA-ES shall, upon request by the ECP Parties at any time and from time to time, consult with the ECP Parties and provide to the ECP Parties such information as the ECP Parties may reasonably request regarding any Excluded Liability that
may relate to or be relevant to the Business; provided, however, that unless the parties can enter into a common interest or similar agreement that preserves any applicable privilege, ADA shall not be obligated to provide any such information to the
extent it would constitute a waiver of any attorney-client or other applicable privilege. 
 6.4 Confidentiality Agreements
Enforcement. ADA-ES covenants and agrees that promptly following the Closing (and in any event no later than five Business Days following the Closing), ADA-ES shall deliver a notice to each Person that is a 

  

 29 

 
counterparty to any Confidentiality Agreement requiring that such counterparty return or destroy all confidential information related to the Business in such
counterparty’s possession, and, if the counterparty elects to destroy such confidential information, ADA-ES shall obtain the certification of such destruction from the counterparty. Promptly following the Closing, and in no event later than 5
Business Days following the date thereof, ADA-ES will take, or cause to be taken, all action necessary to assign all of ADA-ES’s right, title and interest in, to and under any such Confidentiality Agreements to the Development Company.

 ARTICLE VII 
 CONDITIONS TO
CLOSING 
 7.1 Conditions to Obligations of Both Parties. The obligation of both of ADA-ES, on the one hand, and the ECP Parties, on
the other hand, to consummate the Transactions shall be subject to the satisfaction, at or prior to the Closing, of the following conditions precedent: 
 (a) No Prohibiting Laws and Orders; No Injunctions. No provision of Law and no Order shall prohibit or prevent the consummation of the Transactions or the Closing, and no Actions or Proceedings shall be pending
or threatened before any Governmental Authority seeking an injunction, judgment, Order, decree, ruling or charge that would prohibit or prevent the consummation of the Transactions or Closing; and 
 (b) Securities Purchase Agreement. Each of ADA, ECP I, ECP I-A, Energy Capital Partners I-B, LP, a Delaware limited partnership,
and Energy Capital Partners I (TEF IP), LP, a Delaware limited partnership shall have executed and delivered to the other parties thereto a securities purchase agreement, substantially in the form attached hereto as Exhibit O (the
“Securities Purchase Agreement”). 
 7.2 Conditions to Obligations of ADA-ES. The obligation of ADA-ES to
consummate the Transactions shall be subject to the satisfaction, at or prior to the Closing, of the following conditions precedent: 
 (a) All Closing Actions and Deliveries required to be delivered to ADA-ES pursuant to Sections 2.3(a) (Mutual Closing Actions and Deliveries) and 2.3(b) (ECP Party Closing Actions and Deliveries) shall have been received by
ADA-ES; 
 (b) Each of the representations and warranties of the ECP Parties contained in Article III (Representations
and Warranties of the ECP Parties) shall be true and correct in all respects; 
 (c) ADA-ES shall have received a certificate,
dated as of the Closing Date, signed on behalf of the ECP Parties by their duly authorized officers, certifying that the conditions specified in Sections 7.2(b) have been fulfilled; and 
 (d) Of the authorizations, consents, Orders and approvals of all Governmental Authorities and officials and third party consents listed on
Section 2.3(c)(ii) of the Disclosure Schedule, ADA-ES shall have received those items listed on Section 7.2(e) of the Disclosure Schedule. 
  

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 7.3 Conditions to Obligations of the ECP Parties. The obligation of each of the ECP Parties to
consummate the Transactions shall be subject to the satisfaction, at or prior to the Closing, of the following conditions precedent: 
 (a) All transfers contemplated by Section 2.2 (Contribution of Assets) shall have been consummated in accordance with Section 2.2 (Contribution of Assets) and pursuant to Contribution and Assumption Agreements.

 (b) All Closing Actions and Deliveries required to be delivered to the ECP Parties and the Development Company pursuant to
Sections 2.3(a) (Mutual Closing Actions and Deliveries) and 2.3(c) (ADA-ES Closing Actions and Deliveries) shall have been received by the ECP Parties and the Development Company. 
 (c) Each of the representations and warranties of ADA-ES contained in Articles IV (Representations and Warranties of ADA-ES) and
V (Tax Matters), respectively, shall be true and correct in all respects. 
 (d) The ECP Parties shall have received a
certificate, dated as of the Closing Date, signed on behalf of ADA-ES by its duly authorized officer, certifying that the conditions specified in Sections 7.3(c) have been fulfilled. 
 (e) No Material Adverse Effect. No event or events shall have occurred, or be reasonably likely to occur, which, individually or in
the aggregate, have had, or could reasonably be expected to have, a Material Adverse Effect. 
 (f) Title Insurance for
Owned Real Property. The Red River Project Company shall receive from First American Title Insurance Company or any other company reasonably acceptable to the ECP Parties (the “Title Company”), an owner’s policy of
title insurance, or irrevocable and unconditional binder to issue the same, dated, or updated to, the Closing Date, insuring, or irrevocably and unconditionally committing to insure the Red River Project Company’s good and marketable title in
fee simple to each parcel of Owned Real Property, subject only to Permitted Encumbrances, with all standard printed exceptions waived, and containing such affirmative endorsements as desired by the ECP Parties, acting reasonably, and otherwise in
form and substance reasonably acceptable to the ECP Parties. The Red River Project Company shall pay to the Title Company the premium and other title fees which are payable to the Title Company in respect of such title insurance policy. 

(g) Survey. The ECP Parties shall have received a currently dated as-built ALTA survey of each parcel of Owned Real Property,
prepared and certified to the applicable AC Venture Company and the Title Company by a certified or registered surveyor reasonably acceptable to the ECP Parties. Each such survey shall: (A) be in form and substance satisfactory to the ECP
Parties and the Title Company; (B) show any improvements, the location of all Easements, rights of way, sewer and 

  

 31 

 
water lines, building lines and encroachments, the location of all required building set-back lines and other dimensional regulations and any wetlands and
(C) show the location of all abutting or adjoining streets, alleys, curb cuts and the like. In addition, the ECP Parties shall have received a Surveyor’s Certificate executed by such surveyor, in form and substance reasonably satisfactory
to the ECP Parties. 
 (h) Landlord Estoppel Certificates. The ECP Parties shall have received with respect to each
Real Property Lease, an estoppel certificate from each landlord thereunder, in form reasonably satisfactory to the ECP Parties, certifying: (1) the Real Property Lease with such landlord is in full force and effect; (2) to the
landlord’s knowledge, there are no defaults under such Real Property Lease by any party to such Real Property Lease; (3) annexed to such certificate is a true, correct and complete copy of the Real Property Lease with landlord, including
all amendments, modifications and waivers; and (4) such other matters as the ECP Parties shall reasonably require. 
 ARTICLE VIII

 SURVIVAL; NO OTHER REPRESENTATIONS 
 8.1 Survival of Representations, Warranties, Covenants and Agreements. The representations, warranties, covenants and agreements of ADA-ES and the ECP Parties contained in this Agreement, and the indemnification to be provided by the
AC Venture Companies pursuant to Section 1.6 (Assumed Liabilities) and by ADA-ES pursuant to Section 1.7 (Excluded Liabilities), will survive Closing as follows: 
 (a) * with respect to the representations and warranties contained in Sections * 
 (b) until * with respect to representations and warranties contained in Sections *; and 
 (c) until * after the Closing Date in the case of each other representation and warranty set forth in Articles III (Representations
and Warranties of the ECP Parties) and IV (Representations and Warranties of ADA-ES); 
 (d) any representation or
warranty that would otherwise terminate in accordance with Sections 8.1(b) or (c) will continue to survive if a Claim Notice or Indemnity Notice, as applicable, shall have been timely given under Article IX
(Indemnification), on or prior to such termination date, until the related claim for indemnification has been satisfied or otherwise resolved as provided in Article IX (Indemnification); and 
 (e) * 
  

 32 

 ARTICLE IX 
 INDEMNIFICATION 
 9.1 Indemnification. 
 (a) Subject to the other Sections of this Article IX, ADA-ES shall indemnify the ECP Indemnified Parties in respect of, and hold
each of them harmless from and against, any and all Losses suffered, incurred or sustained by any of them or to which any of them becomes subject, resulting from, arising out of or relating to: 
 (i) a failure of any representation or warranty of ADA-ES contained in Articles IV (Representations and Warranties of ADA-ES) and
V (Tax Matters) to be true and correct; 
 (ii) the nonfulfillment of or failure to perform any covenant or agreement
on the part of ADA-ES contained in this Agreement; 
 (iii) the Excluded Assets; and 
 (iv) the Excluded Liabilities. 
 (b) Subject to the other Sections of this Article IX, each ECP Party shall, severally and not jointly, indemnify the ADA-ES Indemnified Parties in respect of, and hold each of them harmless from and against,
any and all Losses suffered, incurred or sustained by any of them or to which any of them becomes subject, resulting from, arising out of or relating to: 
 (i) failure of any representation or warranty of the ECP Parties contained in Article III (Representations and Warranties of the ECP Parties) to be true and correct; and 
 (ii) nonfulfillment of or failure to perform any covenant or agreement on the part of the ECP Parties contained in this Agreement.

 (c) Anything to the contrary contained in this Agreement notwithstanding: 
 (i) subject to clauses (v) and (vi) of this Section 9.1(c), no ECP Indemnified Party shall be entitled to recover
from ADA-ES pursuant to Section 9.1(a)(i) unless and until the total of all of the ECP Indemnified Parties’ Losses under Section 9.1(a) exceeds $*, and then the ECP Indemnified Parties shall be entitled to recover *;

 (ii) subject to clauses (v) and (vi) of this Section 9.1(c), no ADA-ES Indemnified Party shall be
entitled to recover from the ECP Parties pursuant to Section 9.1(b)(i) or from the AC Venture Companies pursuant to Section 1.6 (Assumed Liabilities) unless and until the total of all of the ADA-ES Indemnified Parties’
Losses under Section 9.1(b) exceeds $*, and then the ADA-ES Indemnified Parties shall be entitled to recover *; 
  

 33 

 (iii) subject to clauses (v) and (vi) of this Section 9.1(c), the
ECP Indemnified Parties shall not be entitled to recover from ADA-ES pursuant to Section 9.1(a)(i) an aggregate amount greater *; 
 (iv) subject to clauses (v) and (vi) of this Section 9.1(c), the ADA-ES Indemnified Parties shall not be entitled to recover from the ECP Parties or the AC Venture Companies pursuant to
Section 9.1(b)(i) an aggregate amount greater 
 than * 
 (v) notwithstanding the foregoing, any claim for indemnification hereunder with respect to Losses resulting from a breach of *, shall not
be subject to the limitations set forth in Section 9.2(c)(iii) or (iv), but shall instead be subject to *; 
 (vi) notwithstanding the foregoing, any claim for indemnification hereunder with respect to Losses resulting from (A) a breach of any of the covenants and agreements contained herein, (B) the Excluded Assets or the Excluded
Liabilities and (C) a breach of any of Sections * or (D) fraud or intentional misrepresentation shall not be subject to the limitations contained in this Section 9.1(c); and 
 (vii) * 
 9.2 Method of
Asserting Claims. All claims for indemnification by any Indemnified Party under Section 9.1 (Indemnification) will be asserted and resolved as follows: 
 (a) Third Party Claims. In the event any claim or demand in respect of which an Indemnified Party might seek indemnity under
Section 9.1 (Indemnification) is asserted against or sought to be collected from such Indemnified Party by a Person other than an ECP Indemnified Party or an ADA-ES Indemnified Party (“Third Party Claim”), the
Indemnified Party shall deliver a Claim Notice with reasonable promptness to the Indemnifying Party; provided, however, that the failure of the Indemnified Party to give notice shall not relieve the Indemnifying Party of its
obligations under this Article IX except to the extent that the Indemnifying Party shall have been materially prejudiced thereby. The Indemnifying Party will notify the Indemnified Party as soon as practicable within the Dispute Period
whether the Indemnifying Party disputes its liability to the Indemnified Party under Section 9.1 (Indemnification) and whether the Indemnifying Party desires, at its sole cost and expense, to defend the Indemnified Party against such
Third Party Claim. 
 (i) If the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the
Indemnifying Party desires to defend the Indemnified Party with respect to the Third Party Claim pursuant to Section 9.2(a), then the Indemnifying Party will have the right to defend, at the sole cost and expense of the Indemnifying
Party, such Third Party Claim by all appropriate proceedings, which proceedings will be diligently prosecuted by the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the consent
of the Indemnified Party, such consent not to be unreasonably withheld). The Indemnifying Party will have full control of such defense and proceedings, including (except as provided in the immediately preceding sentence) any settlement thereof;
provided, 

  

 34 

 
however, that (x) the Indemnifying Party’s counsel is reasonably satisfactory to the Indemnified Party, (y) the Indemnifying Party
shall thereafter consult with the Indemnified Party upon the Indemnified Party’s reasonable request for such consultation from time to time with respect to such claim, suit, action or proceeding and (z) the Indemnified Party may, at the
sole cost and expense of the Indemnified Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in the first sentence of this Section 9.2(a)(i), file any motion, answer or other pleadings or take any
other action that the Indemnified Party reasonably believes to be necessary or appropriate to protect its interests. If requested by the Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the Indemnifying Party,
cooperate with the Indemnifying Party and its counsel in contesting any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may retain separate counsel to represent it in, but not control, any defense or settlement
of any Third Party Claim controlled by the Indemnifying Party pursuant to this Section 9.2(a)(i), and the Indemnified Party will bear its own costs and expenses with respect to such separate counsel except as provided in the preceding
sentence and except that the Indemnifying Party will pay the costs and expenses of such separate counsel if (A) in the Indemnified Party’s good faith judgment, it is advisable, based on advice of counsel, for the Indemnified Party to be
represented by separate counsel because a conflict or potential conflict exists between the Indemnifying Party and Indemnified Party which makes representation of both parties inappropriate under applicable standards of professional conduct or
(B) the named parties to such Third Party Claim include both the Indemnifying Party and the Indemnified Party and the Indemnified Party determines in good faith, based on advice of counsel, that defenses are available to it that are unavailable
to the Indemnifying Party. Notwithstanding the foregoing, the Indemnified Party may retain or take over the control of the defense or settlement of any Third Party Claim the defense of which the Indemnified Party has elected to control if the
Indemnified Party irrevocably waives its right to indemnity under Section 9.1 (Indemnification) with respect to such Third Party Claim. 
 (ii) The Indemnified Party will have the right to defend, at the sole cost and expense of the Indemnifying Party, by all appropriate proceedings, which proceedings will be prosecuted by the Indemnified Party to a
final conclusion or will be settled at the discretion of the Indemnified Party (i) any Third Party Claim with respect to any Existing Action or Proceeding and (ii) any Third Party Claim for which the Indemnifying Party fails to notify the
Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend such Third Party Claim pursuant to Section 9.2(a), or for which the Indemnifying Party gives such notice but fails to prosecute diligently or
settle such Third Party Claim. The Indemnified Party will have full control of such defense and proceedings, including any settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying Party will,
at the sole cost and expense of the Indemnifying Party, cooperate with the Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting, or, if appropriate and related to the Third Party Claim in
question, in making any counterclaim against the Person asserting the Third Party Claim, or any cross-complaint against any Person (other than the Indemnified Party or any of its Affiliates). Notwithstanding the foregoing provisions of this
Section 9.2(a)(ii), except with respect to any Existing Action or Proceeding, if the Indemnifying Party has notified the Indemnified Party within the 

  

 35 

 
Dispute Period that the Indemnifying Party disputes its liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such
dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this
Section 9.2(a)(ii) or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party will reimburse the Indemnifying Party in full for all reasonable third party costs and
expenses incurred by the Indemnifying Party in connection with such litigation. The Indemnifying Party may retain separate counsel to represent it in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this
Section 9.2(a)(ii), and the Indemnifying Party will bear its own costs and expenses with respect to such participation. 
 (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability to the Indemnified Party with respect to the Third Party Claim under Section 9.1 (Indemnification) or fails to notify the
Indemnified Party within the Dispute Period whether the Indemnifying Party disputes its liability to the Indemnified Party with respect to such Third Party Claim, the Loss arising from such Third Party Claim will be conclusively deemed a liability
of the Indemnifying Party under Section 9.1 (Indemnification) and the Indemnifying Party shall pay the amount of such Loss to the Indemnified Party on demand following the final determination thereof. If the Indemnifying Party has timely
disputed its liability with respect to such claim, the Indemnifying Party and the Indemnified Party will proceed in good faith to negotiate a resolution of such dispute, and if not resolved through negotiations within the Resolution Period, such
dispute shall be resolved by litigation in a court of competent jurisdiction. 
 (b) Claims Other Than Third Party
Claims. In the event any Indemnified Party should have a claim under Section 9.1 (Indemnification) against any Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver an Indemnity Notice with
reasonable promptness to the Indemnifying Party. If the Indemnifying Party notifies the Indemnified Party that it does not dispute the claim described in such Indemnity Notice or fails to notify the Indemnified Party within the Dispute Period
whether the Indemnifying Party disputes the claim described in such Indemnity Notice, the Loss arising from the claim specified in such Indemnity Notice will be conclusively deemed a liability of the Indemnifying Party under Section 9.1
(Indemnification) and the Indemnifying Party shall pay the amount of such Loss to the Indemnified Party on demand following the final determination thereof, and no later objection by the Indemnifying Party shall be permitted. If the Indemnifying
Party agrees that it has an indemnification obligation but objects that it is obligated to pay only a lesser amount, the Indemnifying Party shall promptly pay to the Indemnified Party the lesser amount, without prejudice to the Indemnified
Party’s claim for the difference. If the Indemnifying Party has timely disputed all of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party will proceed in good faith to negotiate a resolution of such
dispute, and if not resolved through negotiations within the Resolution Period, such dispute shall be resolved by litigation in a court of competent jurisdiction. 
 9.3 * 
  

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 ARTICLE X 
 DEFINITIONS 
 10.1 Definitions. 
 (a) Defined Terms. As used in this Agreement, the following defined terms have the meanings indicated below: 
 “AC Venture Companies” means the Project Companies, the Development Company and the Supply Company, in each case as formed on or
prior to the Closing Date, collectively. 
 “AC Venture Company Interests” means 100% of the limited liability
company membership interests in each of the AC Venture Companies. 
 “Actions or Proceedings” means any claim,
action, suit, proceeding, or investigation by or before any Governmental Authority or any arbitration. 
 “ADA-ES”
has the meaning ascribed to it in the Preamble. 
 “ADA-ES Adjustment Amount” has the meaning set forth in
Section 2.4(e). “ADA-ES Closing Date Contributed Capital Schedule” has the meaning set forth in Section 2.4(a). 
 “ADA-ES Contributed Assets” has the meaning ascribed to it in Section 1.4 (Contributed Assets) and includes, without limitation, the assets listed on Section 1.4 of the
Disclosure Schedule. 
 “ADA-ES Entities” means ADA-ES, together with each of its Affiliates and subsidiaries,
including, without limitation, the AC Venture Companies. 
 “ADA-ES Indemnified Parties” means ADA-ES, the Affiliates
of ADA-ES and their respective directors, officers, partners, limited partners, equity holders, attorneys, accountants, representatives, agents, employees and their respective heirs, successors and assigns. 
 “ADA-ES Pre-Closing Contributed Capital Schedule” has the meaning set forth in Section 2.3(b)(i). 
 “ADA-ES SEC Reports” has the meaning ascribed to it in Section 4.24(a) (Reports and Financial Statements).

 “Affiliate” means any Person that directly or indirectly, through one or more intermediaries, Controls, is
Controlled by, or is under common Control with the Person in question. 
  

 37 

 “Agreement” means this Agreement, the exhibits hereto and the Disclosure
Schedule, as the same shall be amended from time to time. 
 “Allocation” has the meaning ascribed to it in
Section 1.9. 
 “Assumed Liabilities” has the meaning ascribed to it in Section 1.6 (Assumed
Liabilities). 
 “Benefit Plans” means any employee benefit plan (within the meaning of Section 3(3) of ERISA,
including, without limitation, multiemployer plans within the meaning of Section 3(37) of ERISA), any collective bargaining agreement, or any other plan, agreement, program, policy or other arrangement relating to employees, whether or not
subject to ERISA. 
 “Books and Records” of any Person means all files, documents, instruments, papers, books and
records relating to the business, operations, condition of (financial or other), results of operations and assets and properties of such Person, including without limitation financial statements, Tax Returns and related work papers and letters from
accountants, budgets, pricing guidelines, ledgers, journals, deeds, title policies, minute books, stock certificates and books, stock transfer ledgers, Contracts, Licenses, customer lists, computer files and programs, retrieval programs, operating
data and plans and environmental studies and plans. 
 “Business” means the developmental stage activated carbon
production and supply business commenced and conducted by the ADA-ES Entities as presently conducted and as proposed to be conducted including, without limitation, the Red River Project, the Morton Project, the Underwood Project, the Murchison
Project and the assets and equity of the Project Companies and the Supply Company. 
 “Business Books and Records”
means all Books and Records used or held for use primarily in the conduct of the Business or otherwise relating primarily to the ADA-ES Contributed Assets or the Underlying Assets. 
 “Business Contracts” has the meaning ascribed to it in Section 4.16(a) (Business Contracts), and includes all rights
to assert claims and take other actions related there to. 
 “Business Day” means a day other than a Saturday, Sunday
or other day on which banks in the State of New York are required or authorized to close. 
 “Business License” means
any License by or with any Governmental Authority, including, without limitation, any such License under any Environmental Law. 
 “Capitalized Tangible Personal Property” has the meaning set forth in Section 1.4 (Contribution Assets). 
 “Charter Documents” means, with respect to any Person, all organizational documents and all shareholders agreements, limited liability company agreements, members agreements, partnership
agreements or similar Contracts relating to the ownership or governance of such Person. 
  

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 “Claim Notice” means written notification pursuant to Section 9.2(a)
(Method of Asserting Claims) of a Third Party Claim as to which indemnity under Section 9.1 (Indemnification) is sought by an Indemnified Party, enclosing a copy of the principal papers served, if any, and specifying the nature of and
basis for such Third Party Claim and for the Indemnified Party’s claim against the Indemnifying Party under Section 9.1 (Indemnification), together with the amount (if reasonably determinable) of the Loss arising from such Third
Party Claim. 
 “Cleanup” means all actions required to: (i) cleanup, remove, treat or remediate Hazardous
Materials in the indoor or outdoor environment; (ii) prevent the Release of Hazardous Materials so that they do not migrate, endanger or threaten to endanger public health or welfare or the indoor or outdoor environment; (iii) perform
pre-remedial studies and investigations and post-remedial monitoring and care or (iv) respond to any government requests for information or documents in any way relating to cleanup, removal, treatment or remediation or potential cleanup,
removal, treatment or remediation of Hazardous Materials in the indoor or outdoor environment. 
 “Closing” means the
closing of the transactions contemplated by Section 2.1 (Location and Date). 
 “Closing Actions and
Deliveries” has the meaning set forth in Section 2.3 (Actions and Deliveries at Closing). 
 “Closing
Date” has the meaning ascribed to it in Section 2.1 (Location and Date). 
 “Contract” means
any agreement, commitment, understanding, letter of intent, lease, option, license, evidence of Indebtedness, mortgage, indenture, security agreement or other contract or arrangement, whether written or oral. 
 “Confidentiality Agreements” has the meaning ascribed to it in Section 4.28. 
 “Contribution and Assumption Agreements” has the meaning ascribed to it in Section 2.2(b) (Contribution of Assets).

 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Credit Suisse
Letter” means that certain letter agreement dated August 13, 2007 between ADA-ES and Credit Suisse Securities (USA) LLC, as amended, restated, modified, and/or supplemented from time to time. 
 “Debt Financing Fee” has the meaning set forth in Section 1.7(j) (Excluded Liabilities). 
 “Development Company” has the meaning ascribed to it in the Recitals. 
  

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 “Development Company Assumed Contracts” shall mean the following
agreements: 
 * 
 “Disclosure Schedule” means the record delivered to the ECP Parties by ADA-ES herewith and dated as of the date hereof. 
 “Dispute” means any controversy, claim or disagreement. 
 “Dispute
Period” means the period ending 10 days following receipt by an Indemnifying Party of either a Claim Notice or an Indemnity Notice. 
 “Easement Improvements” means all pipelines, storage tanks, utility assets and other facilities situated on the Easements. 
 “Easements” means all easements, servitudes, surface use rights and rights-of-way used or held for use in connection with the Business or necessary to the conduct of the Business, together with
all Easement Improvements. 
 “ECP Crowfoot” has the meaning ascribed to it in the Preamble. 
 “ECP I” has the meaning ascribed to it in the Preamble. 
 “ECP I-A” has the meaning ascribed to it in the Preamble. 
 “ECP I-B” has the meaning ascribed to it in the Preamble. 
 “ECP Indemnified Parties” means each ECP Party, each Affiliate of each ECP Party and their respective directors, officers,
partners, limited partners, equity holders, attorneys, accountants, representatives, agents, employees and their respective heirs, successors and assigns. 
 “ECP Membership Interest” means the 50% aggregate membership interest in the Development Company issued to the ECP Parties at the Closing. 
 “ECP Party” or “ECP Parties” has the meaning ascribed to it in the Preamble. 
 “Effective Date” has the meaning ascribed to it in the Preamble. 
 “Environmental Claim” means any claim, action, cause of action, investigation or notice (written or oral) by any Person or entity
alleging potential Liabilities (including without limitation, potential liability for investigatory costs, Cleanup costs, governmental response costs, natural resources damages, property damages, personal injuries, or penalties) arising out of,
based on or resulting from (i) the presence, or Release of any Hazardous Materials at any location, whether or not owned or operated by ADA-ES or any of its Affiliates or (ii) circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law. 
  

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 “Environmental Laws” means all federal, state, local and foreign Laws and
regulations relating to pollution or protection of human health or the environment, including without limitation, Laws relating to Releases or threatened Releases of Hazardous Materials or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, transport or handling of Hazardous Materials and all Laws and regulations imposing record keeping, notification, disclosure and reporting requirements with respect to Hazardous Materials. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Excluded Assets” has the meaning ascribed to it in Section 1.5 (Excluded Assets). 
 “Excluded Liabilities” has the meaning ascribed to it in Section 1.7 (Excluded Liabilities). 
 “Existing Action or Proceedings” has the meaning ascribed to it in Section 4.8. 
 “FERC” means the Federal Energy Regulatory Commission or any successor entity. 
 “Filed ADA-ES SEC Report” has the meaning ascribed to it in Section 4.24(b) (Reports and Financial Statements).

 “Final ADA-ES Contributed Capital Schedule” has the meaning set forth in Section 2.4(c). 

“GAAP” has the meaning ascribed to it in Section 4.24(c) (Reports and Financial Statements). 
 “Governmental Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality
of the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision. 
 “Hazardous Materials” means all substances defined as “Hazardous Substances,” “Oils,” “Pollutants” or “Contaminants” in the National Oil and Hazardous Substances Pollution
Contingency Plan, 40 C.F.R. § 300.5, or defined as such by, or regulated as hazardous or toxic or as a pollutant or contaminant under, any Environmental Law. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “Improvements” means all buildings, structures, facilities, fixtures and other improvements on any Real Property. 
  

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 “Indebtedness” of any Person means all obligations of such Person (i) for
borrowed money, (ii) evidenced by notes, bonds, debentures or similar instruments, (iii) for the deferred purchase price of goods or services (other than trade payables or accruals incurred in the ordinary course of business),
(iv) under capital leases and (v) in the nature of guarantees of the obligations described in clauses (i) through (iv) above of any other Person. 
 “Indemnified Party” means any Person claiming indemnification under any provision of Article IX (Indemnification). 
 “Indemnifying Party” means any Person against whom a claim for indemnification is being asserted under any provision of
Article IX (Indemnification). 
 “Indemnity Notice” means written notification pursuant to
Section 9.2(b) (Method of Asserting Claims) of a claim for indemnity under Article IX (Indemnification) by an Indemnified Party, specifying the nature of and basis for such claim, together with the amount (if reasonably
determinable) determined in good faith, of the Loss arising from such claim. 
 “Initial ECP Capital Contribution”
has the meaning set forth in Section 2.3(b)(i). 
 “Intellectual Property” means all intellectual
property and proprietary rights, including, but not limited to (i) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications and patent and
invention disclosures, together with all provisionals, reissuances, continuations, continuations-in-part, divisions, revisions, extensions and reexaminations thereof, (ii) all trademarks, service marks, trade dress, logos, slogans, brand names,
trade names, domain names and business and product names, and all applications and registrations therefor, and all extensions and renewals thereof, and all goodwill of the business connected with the use of and symbolized by the foregoing,
(iii) all copyrights and copyrightable works, all mask works, industrial designs and protectible designs, and all applications and registrations therefor, and all extensions and renewals thereof, (iv) all trade secrets and confidential
business information (including research and development, know-how, formulae, compositions, processes, techniques, methodologies, technical information, designs, industrial models, manufacturing, engineering and technical drawings, specifications,
research records, records of inventions, test information, customer and supplier lists, customer data, pricing and cost information and business and marketing plans and proposals), (v) all computer programs and other software (including all
source codes) and related documentation, and all electronic data, databases and data collections and (vi) all rights to use all of the foregoing and all other rights in, to and under the foregoing. 
 “Intellectual Property License Agreement” has the meaning ascribed to it in Section 2.3(a)(iv). 
 “IRC” has the meaning ascribed to it in Section 1.9 (Allocations of Value). 
 “Knowledge” means (i) with respect to ADA-ES, the actual Knowledge, after reasonable inquiry, of * and (ii) with
respect to the ECP Parties, the actual knowledge, after reasonable inquiry, of *. 
  

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 “Laws” means all laws, statutes, rules, regulations, ordinances, court decisions,
case law, Orders, policies, decrees and codes of any Governmental Authority. 
 “Leased Real Property” means all
leasehold and subleasehold estates and other rights to use or occupy any land, buildings, structures, fixtures, improvements or other interests in real property located outside of the state of Colorado (including all construction work-in-progress in
respect of same) on which the Business or its assets are located or necessary to the conduct of the operation of the Business. 
 “Liabilities” means all Indebtedness, obligations and other liabilities of a Person (whether known or unknown, liquidated or unliquidated, absolute, accrued, contingent, fixed or otherwise, or whether due or to
become due). 
 “Licensed IP” means all Intellectual Property (other than the Transferred Intellectual Property) used
or held for use in connection with the Business or otherwise relating to the ADA-ES Contributed Assets and/or the Underlying Assets, including the Intellectual Property required to be listed on Part B of Section 4.6(a) of the Disclosure
Schedule, which will be licensed to the Development Company and its Affiliates pursuant the Intellectual Property License Agreement. 
 “Licenses” means all licenses, permits, certificates of authority, authorizations, approvals, registrations, franchises and similar consents granted or issued by any Governmental Authority or regulatory authority.

 “Liens” means any mortgage, pledge, assessment, security interest, lease, license, lien, levy, right of first
refusal, charge, hypothecation, violation, encumbrance, easement, reversion, reverter, preferential arrangement, restrictive covenant, option, warrant, purchase right, exception, right-of-way, deed restriction, defect of title, condition or
restriction of any kind, including any restriction on the use, voting, transfer, receipt of income or other exercise of any attributes of ownership or other encumbrance of any kind, or any conditional sale Contract, title retention Contract or other
Contract to give any of the foregoing. 
 “Loss” means any and all direct or indirect damages (including, without
limitation, special, consequential and punitive damages), fines, penalties, Tax, interest, obligations, deficiencies, losses and expenses (including without limitation interest, court costs, reasonable fees and expenses of attorneys, accountants and
other experts or other reasonable expenses of litigation or other proceedings or of any claim, default or assessment), whether contingent, fixed or unfixed, liquidated or unliquidated or otherwise. 
 “Master Services Agreement” has the meaning ascribed to it in Section 2.3(a)(iii) (Master Services Agreement).

 “Material Adverse Effect” means, (i) with respect to the ECP Parties (individually or collectively), any
change (or changes taken together) in, or effect on, the ECP Parties that is, or could reasonably be expected to be, materially adverse to the business, assets, properties, Liabilities, operations, ownership, prospects, working capital or the
condition (financial or otherwise) of the ECP Parties, individually or taken as a whole, (ii) with respect to ADA-ES, any change (or changes taken together) in, or effect 

  

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on, ADA-ES or the Business as presently conducted that is, or could reasonably be expected to be, materially adverse to the business, assets, properties,
Liabilities, operations, ownership, prospects, working capital or the condition (financial or otherwise) of ADA-ES or the Business, except for (a) any change resulting from general economic conditions, (b) any change resulting from
conditions or circumstances generally affecting the industry in which ADA-ES and the Business participate and not specifically relating to ADA-ES or the Business, provided that ADA-ES or the Business (in each case taken as a whole), as applicable,
are not materially disproportionately (relative to other industry participants) affected by such change and (c) any change in the market price of ADA-ES’s common stock. 
 “Morton Project” has the meaning ascribed to it in the Recitals. 
 “Morton Project Company” has the meaning ascribed to it in the Recitals. 
 “Murchison Project” has the meaning ascribed to it in the Recitals, and includes all activities associated with the
development, construction, ownership, financing, operation, maintenance and use of such Project. 
 “Negotiation
Period” has the meaning set forth in Section 2.4(c). 
 “Neutral Auditor” has the meaning
ascribed to it in Section 2.4(d). 
 “Operating Agreement” has the meaning ascribed to it in
Section 2.3(a)(i) (Development Company Operating Agreement). 
 “Operative Agreements” means,
collectively, (i) this Agreement, (ii) the Operating Agreement, (iii) the Contribution and Assumption Agreements (iv) the Master Services Agreement, (v) the Securities Purchase Agreement, (vi) the limited liability
company agreement for the Red River Project Company, (vii) the limited liability company agreement for the Underwood Project Company, (viii) the limited liability company agreement for the Morton Project Company, (ix) the limited
liability company agreement for the Supply Company, (x) the Intellectual Property License Agreement and (xi) the other agreements entered into in connection with this Agreement. 
 “Order” means any writ, judgment, decree, injunction or similar order of any Governmental Authority or regulatory authority (in
each such case whether preliminary or final). 
 “Other Businesses” has the meaning ascribed to it is
Section 1.5(a) (Excluded Assets). 
 “Owned Real Property” means that certain parcel of real property
located in Coushatta, Red River Parish, Louisiana, as described more specifically in the legal description attached hereto as Exhibit P, together with all Improvements and all Easements, licenses and other rights and interests
appurtenant thereto (including all construction work-in-progress in respect of same). 
 “Party” or
“Parties” has the meaning set forth in the Preamble. 
  

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 “Permitted Encumbrances” means (i) any Lien for Taxes not yet due or
delinquent or being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any materialmen’s, warehousemen’s, mechanic’s, repairmen’s,
landlord’s and other similar statutory Liens arising in the ordinary course of business by operation of Law with respect to a Liability that is not yet due or delinquent, which amounts have been appropriately reserved in accordance with GAAP
and/or bonded and (iii) the Easements, rights-of-way and other encumbrances set forth on Section 4.12(a) of the Disclosure Schedule. In no event shall any Lien for borrowed money be a Permitted Encumbrance. 
 “Person” means any natural person, corporation, limited liability company, general partnership, limited partnership,
proprietorship, other business organization, trust, union, association or Governmental Authority. 
 “Personal Property
Leases” means all leases or subleases of Tangible Personal Property used or held for use in connection with the Business or necessary to the conduct of the Business as to which ADA-ES or any of its Affiliates is the lessor, sublessor,
lessee or sublessee. 
 “Pre-Closing Tax Period” means (i) any Tax period ending on or before the Closing Date
and (ii) with respect to a Tax period that commences before but ends after the Closing Date, the portion of such period up to and including the Closing Date. 
 “Prepaid Expenses” means all prepaid expenses relating to the Business. 
 “Project” or “Projects” has the meaning set forth in the Recitals. 
 “Project Companies” means all limited liability companies or other Persons formed to own Projects, including the Red River Project Company, the Morton Project Company, the Underwood Project Company and the Supply
Company. 
 “Real Property” means the Owned Real Property, Easements and Leased Real Property. 
 “Real Property Leases” means all leases, subleases, licenses, concessions and other agreements (written or oral), and any
ancillary documents pertaining thereto (including, for instance, amendments, modifications, supplements, exhibits, schedules, addenda and restatements thereto and thereof and all consents, including consents for alterations, assignments and sublets,
documents recording variations, memoranda of lease, options, rights of expansion, extension, first refusal and first offer and evidence of commencement dates and expiration dates), pursuant to which ADA-ES or any of its Affiliates holds any Leased
Real Property including, but not limited to, those items identified on Section 4.12(c) of the Disclosure Schedule and including the right to all security deposits and other amounts and instruments deposited by or on behalf of ADA-ES or
its Affiliates thereunder. 
 “Real Property Options” has the meaning set forth in Section 4.12(b) (Real
Property). 
  

 45 

 “Red River Project” has the meaning ascribed to it in the Recitals, and
includes all activities associated with the development, construction, ownership, financing, operation, maintenance and use of such Project. 
 “Red River Project Company” has the meaning ascribed to it in the Recitals. 
 “Related
Parties” has the meaning ascribed to it in Section 4.19 (Affiliate Transactions). 
 “Release” means any release, spill, emission, discharge, leaking, pumping, pouring, abandoning, emptying, escaping, dumping, injection, deposit, disposal, dispersal, leaching or migration into the indoor or outdoor
environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Materials through or in the air, soil, surface water,
groundwater or property. 
 “Resolution Period” means the period ending 30 days following receipt by an Indemnified
Party of a written notice from an Indemnifying Party stating that it disputes all or any portion of a claim set forth in a Claim Notice or an Indemnity Notice. 
 “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended. 
 “SEC” means the U.S. Securities and Exchange Commission. 
 “Securities Act” means
the Securities Act of 1933, as amended. 
 “Securities Purchase Agreement” has the meaning ascribed to it in
Section 7.1(b) (Securities Purchase Agreement). 
 “Supply Company” has the meaning ascribed to it in the
Recitals. 
 “Tangible Personal Property” means all furniture, fixtures, equipment, machinery, vehicles,
computers and other tangible personal property used or held for use in the conduct of the Business. 
 “Tax” means
(i) any net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, franchise, capital, paid-up capital, profits, greenmail, license, withholding (on amounts paid by or to the relevant Person), payroll,
employment, excise, severance, stamp, occupation, premium property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge or any kind whatsoever, together with any interest or any
penalty, addition to tax or additional amount imposed by any Governmental Authority (domestic or foreign) responsible for the imposition of any such tax and (ii) any Taxes described in clause (i) of another person imposed as a transferor,
successor, by contract, by Law or otherwise. 
 “Tax Return” means any return, report, information return or other
document (including any related or supporting information and any amendment to any of the foregoing) filed or required to be filed with respect to Taxes. 
  

 46 

 “Taxing Authority” means any domestic or foreign Governmental Authority
responsible for the imposition, collection or administration of any Tax. 
 “Team” has the meaning set
forth in the Master Services Agreement. 
 “Third Party Claim” has the meaning ascribed to it in
Section 9.2(a) (Method of Asserting Claims). 
 “Title Company” has the meaning ascribed to it in
Section 7.3(g) (Title Insurance for Owned Real Property). 
 “Transactions” means the transactions
contemplated by this Agreement and the Operative Agreements. 
 “Transferred Intellectual Property” means all
Intellectual Property primarily used or held for use in connection with the conduct of the Business or otherwise primarily relating to the ADA-ES Contributed Assets and/or the Underlying Assets. 
 “Underlying Assets” has the meaning ascribed to it in Section 1.4 (Contributed Assets). 
 “Underwood Project” has the meaning ascribed to it in the Recitals and includes all activities associated with the
development, construction, ownership, financing, operation, maintenance and use of such Project. 
 “Underwood Project
Company” has the meaning ascribed to it in the Recitals. 
 (b) Construction of Certain Terms and
Phrases. Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively;
(iii) terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement; (iv) the terms “Article” or “Section” refer to the specified Article or Section of
this Agreement and (v) the words “include,” “includes” and “including” mean include, includes and including without limitation. Whenever this Agreement refers to a number of days, such number shall refer to
calendar days. All accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP. 
  

 47 

 ARTICLE XI 
 MISCELLANEOUS 
 11.1 Notices. All notices, requests and other communications hereunder must be in
writing and will be deemed to have been duly given only if delivered personally or by facsimile transmission, or if mailed (first class postage prepaid) or deposited with a reputable overnight courier for next day delivery, to the Parties at the
following addresses or facsimile numbers: 
 If to ADA-ES, to: 
 ADA-ES, Inc. 
 8100 SouthPark Way 
 Unit B 
 Littleton, Colorado 80120 
 Facsimile No.: (303) 734-0330 
 Attn: President 
 with a copy (which shall not constitute notice to ADA-ES), to: 
 Fox Rothschild LLP 
 997 Lenox Drive 
 Building 3 
 Lawrenceville, New Jersey 08543-5231 
 Facsimile No.: (609) 896-1469 
 Attn: Jonathan R. Lagarenne 
 If to any ECP Party, to: 
 Energy Capital Partners, LLC 
 51 John F. Kennedy Parkway 
 Suite 200 
 Short Hills, New Jersey 07078 
 Facsimile No.: (973) 671-6101 
 Attn: Tyler Reeder, Vice President 
 CC: General Counsel 
 with a copy (which shall not constitute notice to the ECP Party), to:

 Latham & Watkins LLP 
 885 Third Avenue 
 Suite 1000 
 New York, New York 10022-4834 
 Facsimile No.: (212) 751-4864 
 Attn: Jennifer F. Massouh 
 All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 11.1, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section 11.1, be deemed given upon
receipt and (iii) if delivered by mail or reputable overnight courier in the manner described above to the address as provided in this Section 11.1, be deemed given upon receipt (in each case regardless of whether such notice,
request 

  

 48 

 
or other communication is received by any other Person to whom a copy of such notice, request or other communication is to be delivered pursuant to this
Section 11.1). Either Party from time to time may change its address, facsimile number or other information for the purpose of notices to that Party by giving notice specifying such change to the other Party hereto. 
 11.2 Entire Agreement. This Agreement and the Operative Agreements supersede all prior discussions and agreements between the Parties with respect
to the subject matter hereof and thereof, and contain the sole and entire agreement between the Parties hereto with respect to the subject matter hereof and thereof. 
 11.3 Expenses. Except as otherwise expressly provided in this Agreement, whether or not the Transactions contemplated hereby are consummated, each of the ECP Parties and ADA-ES will pay their own costs and
expenses incurred in connection with the negotiation, execution and closing of this Agreement and the Operative Agreements and the Transactions contemplated hereby and thereby. 
 11.4 Public Announcements. Except with respect to those public disclosures expressly permitted by the Securities Purchase Agreement, the ECP
Parties and ADA-ES will obtain the other Parties’ prior written approval of any press release or public announcement concerning the Transactions to be issued from and after the date of this Agreement and through the dates immediately following
Closing; provided, however, that upon Closing, the Parties agree to disclose the mutual investment in the Development Company by ADA-ES and the ECP Parties by issuing a joint press release satisfying any disclosure required by Law or
Governmental Authority, including, without limitation, the SEC, substantially in the form of Exhibit Q hereto; and provided, further, that notwithstanding anything to the contrary herein, the ECP Members and their
Affiliates and authorized representatives shall be permitted to disclose such information regarding the ECP Members’ investment in the Company and its Subsidiaries, the financial performance of the Company and its Subsidiaries, operations of
the Company and its Subsidiaries and such other information relevant to the ECP Members’ investment in the Company (but excluding any trade secrets or other proprietary information relating to Intellectual Property of the Company or ADA-ES) to
the limited partners and prospective investors of the ECP Members and their Affiliates who are under duties or obligations of confidentiality. 
 11.5 Confidentiality. At all times during the existence of the Development Company, each Party hereto will hold, and will cause its Affiliates and their respective representatives to hold, in strict confidence from any Person (other
than any such Affiliate or representative), unless (i) compelled to disclose by judicial or administrative process (including without limitation in connection with obtaining the necessary approvals of this Agreement and the transactions
contemplated hereby of Governmental Authorities) or by other requirements of Law, including, but not limited to, disclosures required by ADA-ES or the ECP Parties to comply with the rules and regulations of the SEC or (ii) disclosed in an
Action or Proceeding brought by a Party hereto in pursuit of its rights or in the exercise of its remedies hereunder, all documents and information concerning the other Party or any of its Affiliates furnished to it by the other Party or such other
Party’s representatives in connection with this Agreement or the Transactions contemplated hereby, except to the extent that such documents or information can be shown to have been (a) previously known by the Party receiving such documents
or information, (b) in the public domain (either prior to or after the furnishing of such documents or information 

  

 49 

 
hereunder) through no fault of such receiving Party or (c) later acquired by the receiving Party from another source if the receiving Party is not aware
that such source is under an obligation to another Party hereto to keep such documents and information confidential; provided, however, that following Closing the foregoing restrictions will not apply to the AC Venture Companies’
use of documents and information concerning the Business and the ADA-ES Contributed Assets or the Underlying Assets or any disclosure permitted by the Operating Agreement. 
 11.6 Waiver. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall be
deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by Law or otherwise afforded, will be cumulative and not alternative. 

11.7 Amendment. This Agreement may be amended, supplemented or modified only by a written instrument duly executed by or on behalf of each of
the Parties. 
 11.8 Specific Performance. Notwithstanding anything contained herein to the contrary, each of the Parties acknowledges
and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement, excluding breaches of the Parties’ representation and warranties contained in Articles III (Representations and Warranties
of the ECP Parties) and IV (Representations and Warranties of ADA-ES) (which breaches may be remedied through operation of the indemnification provisions of Article IX (Indemnification)), are not performed in accordance with their
specific terms or otherwise are breached. Accordingly, each of the Parties agrees that the other Party shall be entitled to an injunction or injunctions to prevent breaches 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. 
 11.9 No Third Party Beneficiary. The terms and provisions of this Agreement are intended solely for the benefit of each
Party hereto and their respective successors or permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any other Person other than any Person entitled to indemnity under Section 1.7
(Excluded Liabilities) and Article IX (Indemnification). 
 11.10 No Assignment; Binding Effect. Neither this Agreement nor any
right, interest or obligation hereunder may be assigned by any Party hereto without the prior written consent of the other Party hereto and any attempt to do so will be void, except (i) for assignments and transfers by operation of Law and
(ii) a Party may assign any or all of its rights, interests and obligations hereunder to a wholly-owned subsidiary, provided that any such subsidiary agrees in writing to be bound by all of the terms, conditions and provisions contained herein,
but no such assignment referred to in clause (ii) shall relieve such Party of its obligations hereunder. Subject to the preceding sentence, this Agreement is binding upon, inures to the benefit of and is enforceable by the Parties hereto and
their respective successors and assigns. 
  

 50 

 11.11 Headings. The headings used in this Agreement have been inserted for convenience of
reference only and do not define or limit the provisions hereof. 
 11.12 Invalid Provisions. If any provision of this Agreement is
held to be illegal, invalid or unenforceable under any present or future Law, and if the rights or obligations of any Party under this Agreement will not be materially and adversely affected thereby, (i) such provision will be fully severable,
(ii) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof and (iii) the remaining provisions of this Agreement will remain in full force and effect and will
not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 
 11.13 Mutual Drafting. The Parties
are sophisticated and have been represented by attorneys throughout the transactions contemplated hereby who have carefully negotiated the provisions hereof. As a consequence, the Parties do not intend that the presumptions of laws or rules relating
to the interpretation of contracts against the drafter of any particular clause should be applied to this Agreement, the Operative Agreements, the Transactions or any agreement or instrument executed in connection herewith, and therefore waive their
effects. 
 11.14 Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of
Delaware, without giving effect to the conflicts of laws principles (whether of the State of Delaware or otherwise) that would result in the application of the laws of any other jurisdiction. 
 11.15 Consent to Jurisdiction and Service of Process; Appointment of Agent for Service of Process. EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO
THE JURISDICTION OF ANY UNITED STATES DISTRICT COURT OR DELAWARE CHANCERY COURT LOCATED IN WILMINGTON, DELAWARE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN STATUTE, TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURTS. EACH PARTY (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR
PROCEEDINGS, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT AND (C) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER
THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND
IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT
THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE
PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 
  

 51 

 11.16 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS
AGREEMENT HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS
BEING ESTABLISHED. EACH PARTY ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF ANY OF THE OTHER PARTIES. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY ACKNOWLEDGES THAT
THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTION CONTEMPLATED HEREBY.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 11.17 * 
 11.18 Counterparts. This Agreement may be executed in any number of counterparts, any of which may be delivered via facsimile or PDF, each of
which will be deemed an original, but all of which together will constitute one and the same instrument. 
  

 52 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of
each Party as of the date first above written. 
  

			
	ADA-ES, INC.
		
	By:	 	/s/    Michael D. Durham
	Name:	 	Michael D. Durham
	Title:	 	President & CEO

 [SIGNATURE PAGE TO CROWFOOT JOINT DEVELOPMENT AGREEMENT] 

			
	ENERGY CAPITAL PARTNERS I, LP
		
	By:	 	Energy Capital Partners GP I, LLC, its general partner
		
	By:	 	Energy Capital Partners, LLC, its managing member
		
	By:	 	 /s/     Peter Labbat

	Name:	 	Peter Labbat
	Title:	 	Managing Member

			
	
	ENERGY CAPITAL PARTNERS I-A, LP
		
	By:	 	Energy Capital Partners GP I, LLC, its general partner
		
	By:	 	Energy Capital Partners, LLC, its managing member
		
	By:	 	 /s/     Peter Labbat

	Name:	 	Peter Labbat
	Title:	 	Managing Member

			
	
	ENERGY CAPITAL PARTNERS I-B IP, LP
		
	By:	 	Energy Capital Partners GP I, LLC, its general partner
		
	By:	 	Energy Capital Partners, LLC, its managing member
		
	By:	 	 /s/     Peter Labbat

	Name:	 	Peter Labbat
	Title:	 	Managing Member

 [SIGNATURE PAGE TO CROWFOOT JOINT DEVELOPMENT AGREEMENT] 

			
	
	 ENERGY CAPITAL PARTNERS I (CROWFOOT IP), LP

		
	By:	 	Energy Capital Partners GP I, LLC, its general partner
		
	By:	 	Energy Capital Partners, LLC, its managing member
		
	By:	 	 /s/     Peter Labbat

	Name:	 	Peter Labbat
	Title:	 	Managing Member

 [SIGNATURE PAGE TO CROWFOOT JOINT DEVELOPMENT AGREEMENT] 

 Exhibit 10.54 
 EXHIBIT A 
 ADA-ES Pre-Closing Contributed Capital Schedule 
 * 
  

 EXHIBIT A-1 

 Exhibit 10.54 
 EXHIBIT B 
 Conveyance of Underlying Assets to AC Venture Companies 
 This Exhibit B is delivered pursuant to that certain Joint Development Agreement, dated as of September 29, 2008 (the “Agreement”), by and
between ADA-ES and the ECP Parities. Capitalized terms used and not otherwise defined in this Exhibit B have the meanings set forth in the Agreement. 
  

	I.	UNDERLYING ASSETS AND ASSUMED LIABILITIES TO BE TRANSFERREDTO THE SUPPLY COMPANY 

  

	 	A.	Business Books and Records relating primarily to the Supply Company. 

  

	 	B.	The following Leased Real Property and Real Property Leases: 

 * 
  

	 	C.	Prepaid Expenses relating primarily to the Supply Company. 

  

	 	D.	Business Licenses relating primarily to the Supply Company. 

  

	 	E.	The following Business Contracts: 

 * 
  

	 	F.	All Tangible Personal Property located at the Murchison Project, including, without limitation: 

  

	 	G.	Accounts receivable relating primarily to the Supply Company. 

  

	 	H.	Assumed Liabilities directly related to the foregoing. 

  

	II.	UNDERLYING ASSETS AND ASSUMED LIABILITIES TO BE TRANSFERRED TO THE UNDERWOOD PROJECT COMPANY THE UNDERWOOD PROJECT COMPANY 

  

	 	A.	Business Books and Records relating primarily to the Underwood Project Company. 

  

	 	B.	The following Real Property Options: 

 * 
  

	 	C.	Prepaid Expenses relating primarily to the Underwood Project Company. 

  

	 	D.	Business Licenses relating primarily to the Underwood Project Company. 

	 	E.	The following Business Contracts: 

 * 
  

	 	F.	Tangible Personal Property relating primarily to the Underwood Project Company. 

  

	 	G.	Accounts receivable relating primarily to the Underwood Project Company. 

  

	 	H.	Assumed Liabilities directly related to the foregoing. 

  

	III.	UNDERLYING ASSETS AND ASSUMED LIABILITIES TO BE TRANSFERRED TO THE MORTON PROJECT COMPANY 

  

	 	A.	Business Books and Records relating primarily to the Morton Project Company. 

  

	 	B.	Prepaid Expenses relating primarily to the Morton Project Company. 

  

	 	C.	Business Licenses relating primarily to the Morton Project Company. 

  

	 	D.	The following Business Contracts and all consents and notifications related thereto: 

 * 
  

	 	E.	Tangible Personal Property relating primarily to the Morton Project Company. 

  

	 	F.	Accounts receivable relating primarily to the Morton Project Company. 

  

	 	G.	Assumed Liabilities directly related to the foregoing. 

 [SIGNATURE PAGE TO CROWFOOT JOINT DEVELOPMENT AGREEMENT] 

	IV.	UNDERLYING ASSETS AND ASSUMED LIABILITIES TO BE TRANSFERRED TO THE RED RIVER PROJECT COMPANY 

  

	 	A.	All Underlying Assets and Assumed Liabilities, other than Business Contracts and the Assumed Liabilities related thereto, and other than those transferred to the Supply Company, the
Underwood Project Company and the Morton Project Company in the manner specified in Parts I, II and II, respectively, in this Exhibit B shall be transferred to the Red River Project Company. 

  

	 	B.	The following Business Contracts and all Assumed Liabilities and consents and notifications related thereto: 

 * 
 [SIGNATURE PAGE TO CROWFOOT JOINT
DEVELOPMENT AGREEMENT] 

 Exhibit 10.54 
 EXHIBIT C-1 
 CONTRIBUTION AND ASSUMPTION AGREEMENT 
 FOR UNDERLYING ASSETS 
 [SIGNATURE PAGE
TO CROWFOOT JOINT DEVELOPMENT AGREEMENT] 

 Exhibit 10.54 
 EXHIBIT C-2 
 CONTRIBUTION AND ASSUMPTION AGREEMENT 
 FOR ADA-ES CONTRIBUTED ASSETS 
  

 EXHIBIT C-2-1 

 Exhibit 10.54 
 EXHIBIT D 
 CROWFOOT DEVELOPMENT 
 LIMITED LIABILITY COMPANY AGREEMENT 
  

 EXHIBIT D-1 

 Exhibit 10.54 
 EXHIBIT E 
 RED RIVER ENVIRONMENTAL PRODUCTS 
 LIMITED LIABILITY COMPANY AGREEMENT 
  

 EXHIBIT E-1 

 Exhibit 10.54 
 EXHIBIT F 
 UNDERWOOD ENVIRONMENTAL PRODUCTS 
 LIMITED LIABILITY COMPANY AGREEMENT 
  

 EXHIBIT F-1 

 Exhibit 10.54 
 EXHIBIT G 
 MORTON ENVIRONMENTAL PRODUCTS 
 LIMITED LIABILITY COMPANY AGREEMENT 
  

 EXHIBIT G-1 

 Exhibit 10.54 
 EXHIBIT H 
 CROWFOOT SUPPLY COMPANY 
 LIMITED LIABILITY COMPANY AGREEMENT 
  

 EXHIBIT H-1 

 Exhibit 10.54 
 EXHIBIT I 
 MASTER SERVICES AGREEMENT 
  

 EXHIBIT I-1 

 Exhibit 10.54 
 EXHIBIT J 
 INTELLECTUAL PROPERTY LICENSE AGREEMENT 
  

 EXHIBIT J-1 

 Exhibit 10.54 
 EXHIBIT K 
 ECP MANAGING MEMBER CERTIFICATE 
  

 EXHIBIT K-1 

 Exhibit 10.54 
 EXHIBIT L 
 ADA-ES SECRETARY’S CERTIFICATE 
  

 EXHIBIT L-1 

 Exhibit 10.54 
 EXHIBIT M 
 IP ASSIGNMENTS 
  

 EXHIBIT M-1 

 Exhibit 10.54 
 EXHIBIT N 
 LEGAL OPINION OF SCHUCHAT, HERZOG & BRENMAN 
  

 EXHIBIT N-1 

 Exhibit 10.54 
 EXHIBIT O 
 SECURITIES PURCHASE AGREEMENT 
  

 EXHIBIT O-1 

 Exhibit 10.54 
 EXHIBIT P 
 OWNED REAL PROPERTY LEGAL DESCRIPTION 
  

 EXHIBIT P-1 

 Exhibit 10.54 
 EXHIBIT Q 
 JOINT PRESS RELEASE 
  

 EXHIBIT Q-1

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