Document:

Express Parent LLC Limited Liability Company Agreement

 Exhibit 4.6 

EXECUTION COPY 

EXPRESS PARENT LLC 

LIMITED LIABILITY COMPANY AGREEMENT 

dated as of 

June 26, 2008 

among 

LIMITED BRANDS STORE OPERATIONS, INC., 

EXP INVESTMENTS, INC., 

EXPRESS INVESTMENT CORP., 

and 
 THE
OTHER MEMBERS LISTED ON THE 
 SIGNATURE PAGES HERETO 

 TABLE OF CONTENTS 

 
  

 

					
	 	  	 	  	PAGE
		  	ARTICLE 1	  	
		  	DEFINITIONS	  	
			
	Section 1.01.	  	Definitions	  	1
			
		  	ARTICLE 2	  	
		  	FORMATION AND PURPOSES OF THE COMPANY	  	
			
	Section 2.01.	  	Formation of the Company	  	8
	Section 2.02.	  	Name of the Company	  	8
	Section 2.03.	  	Purpose of the Company	  	8
	Section 2.04.	  	Place of Business of the Company	  	9
	Section 2.05.	  	Registered Office and Registered Agent	  	9
	Section 2.06.	  	Term	  	9
	Section 2.07.	  	Title to the Company Property	  	9
	Section 2.08.	  	Filing of Certificates	  	9
	Section 2.09.	  	Limitation on Liability	  	9
			
		  	ARTICLE 3	  	
		  	CAPITAL CONTRIBUTIONS AND MEMBERSHIP UNITS	  	
			
	Section 3.01.	  	Units	  	9
	Section 3.02.	  	Additional Capital Contributions	  	10
	Section 3.03.	  	Other Matters	  	10
	Section 3.04.	  	Preemptive Rights	  	10
	Section 3.05.	  	Agreement to be Bound	  	12
			
		  	ARTICLE 4	  	
		  	DISTRIBUTIONS AND ALLOCATIONS	  	
			
	Section 4.01.	  	Distributions	  	12
	Section 4.02.	  	Tax Distributions	  	13
	Section 4.03.	  	Distributions in Violation of Delaware Law	  	14
	Section 4.04.	  	Amounts Withheld	  	14
	Section 4.05.	  	Dissolution	  	14
	Section 4.06.	  	Allocations	  	14
	Section 4.07.	  	Tax Allocations	  	15

  

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		  	ARTICLE 5	  	
		  	THE BOARD OF MANAGERS	  	
			
	Section 5.01.	  	Board of Managers	  	15
	Section 5.02.	  	Quorum and Manner of Acting	  	16
	Section 5.03.	  	Time and Place of Meetings	  	17
	Section 5.04.	  	Regular Meetings	  	17
	Section 5.05.	  	Special Meetings	  	17
	Section 5.06.	  	Subcommittees	  	18
	Section 5.07.	  	Subsidiaries	  	18
	Section 5.08.	  	Action by Consent	  	18
	Section 5.09.	  	Telephonic Meetings	  	18
	Section 5.10.	  	Resignation	  	18
	Section 5.11.	  	Term; Vacancies	  	18
			
		  	ARTICLE 6	  	
		  	ACCOUNTING AND TAX MATTERS	  	
			
	Section 6.01.	  	Auditors and Financial Statements	  	19
	Section 6.02.	  	Partnership for Tax Purposes	  	19
	Section 6.03.	  	Tax Elections	  	20
	Section 6.04.	  	Tax Matters Partner	  	20
			
		  	ARTICLE 7	  	
		  	INDEMNIFICATION	  	
			
	Section 7.01.	  	Indemnification	  	21
			
		  	ARTICLE 8	  	
		  	TRANSFER OF INTERESTS	  	
			
	Section 8.01.	  	General Restrictions	  	22
	Section 8.02.	  	Transferee Rights	  	23
	Section 8.03.	  	Notice of Request to Transfer	  	23
	Section 8.04.	  	Rights of First Refusal	  	24
	Section 8.05.	  	Tag-Along Rights	  	25
	Section 8.06.	  	Drag-Along Sale	  	27
	Section 8.07.	  	Additional Conditions to Tag-Along Sales and Drag-Along Sales	  	30
			
		  	ARTICLE 9	  	
		  	CERTAIN COVENANTS	  	
			
	Section 9.01.	  	Information Rights	  	30
	Section 9.02.	  	Maintenance and Inspection of Records; Other Rights	  	31
	Section 9.03.	  	Confidentiality	  	32

  

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	Section 9.04.	  	Corporate Opportunities; Non-Solicitation	  	33
	Section 9.05.	  	Certain Matters Relating to an Initial Public Offering	  	34
	Section 9.06. 	  	Certain Fees	  	35
			
		  	ARTICLE 10	  	
		  	TERM, DISSOLUTION AND LIQUIDATION	  	
			
	Section 10.01.	  	Term	  	36
	Section 10.02.	  	Liquidating Events	  	36
	Section 10.03.	  	Winding Up	  	36
	Section 10.04.	  	Distribution Upon Dissolution of the Company	  	36
	Section 10.05.	  	Rights of Members; Resignation	  	36
			
		  	ARTICLE 11	  	
		  	MISCELLANEOUS	  	
			
	Section 11.01.	  	Notices	  	37
	Section 11.02.	  	Representations and Warranties	  	38
	Section 11.03.	  	Amendments; No Waivers	  	39
	Section 11.04.	  	Expenses	  	39
	Section 11.05.	  	Public Announcements	  	39
	Section 11.06.	  	Successors and Assigns	  	39
	Section 11.07.	  	Headings	  	39
	Section 11.08.	  	Governing Law	  	40
	Section 11.09.	  	Jurisdiction	  	40
	Section 11.10.	  	WAIVER OF JURY TRIAL	  	40
	Section 11.11.	  	Entire Agreement	  	40
	Section 11.12.	  	Counterparts; Effectiveness	  	40
	Section 11.13.	  	Severability	  	40
	Section 11.14.	  	Further Assurances	  	40
	Section 11.15.	  	Specific Performance	  	41
			
	Schedule I	  	Capital Contributions	  	
			
	Annex A	  	Certain Approval Rights	  	
	Annex B	  	Registration Rights	  	
	Annex C	  	Form of Advisory Agreement	  	

  

 iii 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 

EXPRESS PARENT LLC 

THIS LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of Express Parent LLC (the “Company”) is
dated as of June 26, 2008 among Limited Brands Store Operations, Inc., a Delaware corporation (“LBSO”), EXP Investments, Inc., a Delaware corporation (“EXP” and together with LBSO,
“Limited”), Express Investment Corp., a Delaware corporation (“Buyer”), solely for purposes of Section 5.01(a)(ii) and Section 5.01(b) hereof, each of Golden Gate Capital Investment Fund II, L.P., Golden
Gate Capital Investment Fund II-A, L.P., and Golden Gate Capital Investment Annex Fund II, L.P., and each other Member listed on the signature pages hereto from time to time. 

W I T N E S S E T H : 

WHEREAS, the Company was formed as a limited liability company pursuant to Delaware Law (defined below) by filing a Certificate of
Formation with the Office of the Secretary of State of the State of Delaware on June 10, 2008. 
 WHEREAS, as of the
date hereof, each of the members of Express Holding, LLC have exchanged 100% of the issued and outstanding equity interests of Express Holding, LLC for 100% of the issued and outstanding equity interests of the Company, which equity interests are
held by the Members in the amounts set forth on Schedule I attached hereto. 
 WHEREAS, the parties hereto wish to enter
into this Agreement to, among other things, (i) provide for the management of the Company and (ii) set forth the respective rights and obligations of Members of the Company generally. 

NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. (a) As used herein, the following terms have the following meanings: 

“Affiliate” means, with respect to any Person, any other Person which directly or indirectly controls, is controlled by
or is under common control with such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as applied
to any Person, means the possession, directly or indirectly, of the power to vote a majority of the securities having voting power for the election of directors (or other Persons acting in similar capacities) of such Person or otherwise to direct or

 
cause the direction of the management and policies of such Person through the ownership of voting securities, by contract or otherwise. For purposes of this Agreement, no Member shall by reason
of this Agreement or the Related Documents be deemed to be an Affiliate of any other Member or of the Company. 
 “Book
Value” means, with respect to any property of the Company, the Company’s adjusted basis for federal income tax purposes, adjusted from time to time to reflect the adjustments required or permitted by Treasury Regulations
Section 1.704-1(b)(2)(iv)(d)-(g). 
 “Business Day” means a day, other than Saturday, Sunday or other day
on which commercial banks in New York, New York are authorized or required by law to close. 
 “Capital
Account” means the separate account established by the Company for each Member according to the rules of Treasury Regulation Section 1.704-1(b)(2)(iv). For this purpose, the Company may (in the discretion of the Board of Managers),
upon the occurrence of the events specified in Treasury Regulation Section 1.704-1(b)(2)(iv)(f), increase or decrease the Capital Accounts in accordance with the rules of such regulation and Treasury Regulation Section 1.704-1(b)(2)(iv)(g)
to reflect a revaluation of Company property. 
 “Capital Contribution” means any cash, third party promissory
obligations (valued at the Fair Market Value thereof) or other property (valued at the Fair Market Value thereof) which a Member contributes to the Company. The Capital Contribution of each of the Members for their Units is set forth on Schedule I
attached hereto, as the same may be amended from time to time in accordance with the requirements of this Agreement. Each Member (other than the Investors) acknowledges and agrees that Schedule I may be redacted or information thereon may otherwise
be aggregated to prevent disclosure of confidential information with respect to individual allocations of management incentive equity. 

“Certificate of Formation” means the Certificate of Formation of the Company filed with the office of the Secretary of
State of the State of Delaware, as it may be amended from time to time. 
 “Class A Unit” means a Unit
representing a fractional part of the Members’ ownership interests in the Company and having the rights and obligations specified with respect to Class A Units in this Agreement. 

“Class B Unit” means a Unit representing a fractional part of the Members’ ownership interests in the Company and
having the rights and obligations specified with respect to Class B Units in this Agreement. 
 “Class C
Unit” means a Unit representing a fractional part of the Members’ ownership interests in the Company and having the rights and obligations specified with respect to Class C Units in this Agreement. 

 

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 “Class L Unit” means a Unit representing a fractional part of the
Members’ ownership interests in the Company and having the rights and obligations specified with respect to Class L Units in this Agreement. 

“Class L Unitholder” means a holder of Class L Units. 

“Class L Yield” means, with respect to each Class L Unit, the amount accruing on such Class L Unit on a daily basis, at
the rate of 10% per annum (i.e., a daily rate equal to 0.0002739726), compounded on the last day of each Fiscal Year, on (a) the Unreturned Capital of such Class L Unit plus (b) the Unpaid Class L Yield thereon for all prior Fiscal
Years (or portions thereof). For purposes of clarity, in calculating the amount of any distribution to be made pursuant to this Agreement, the portion of a Class L Unit’s Class L Yield for such portion of such period elapsing before such
distribution is made shall be taken into account. 
 “Code” means the Internal Revenue Code of 1986, as amended
from time to time, and any rules or regulations issued thereunder. 
 “Company Securities” means (i) any
Units or other equity or equity-linked securities of the Company, (ii) any securities convertible into or exchangeable for Units or other equity or equity-linked securities of the Company and (iii) any options, warrants or other rights to
acquire Units or other equity or equity-linked securities of the Company. 
 “Consolidated Indebtedness Coverage
Ratio” shall have the meaning set forth in the Covenant Agreement. 
 “Covenant Agreement” means the
Covenant Agreement, dated as of July 6, 2007, by and between the Express Holding, LLC, Express, LLC and Limited Brands. 

“Covenant Agreement Termination Time” means the termination of the covenants set forth in the Covenant Agreement, in
accordance with Section 5 thereof. 
 “Fair Market Value” means, with respect to any asset or property,
its fair market value as determined between a willing, unaffiliated buyer and a willing seller in an arm’s-length transaction occurring on the date of valuation, taking into account all relevant factors determinative of value, as determined in
good faith by the Board of Managers. 
 “Family Group” means a Member’s spouse and descendants (whether by
birth or adoption) and any trust solely for the benefit of such Member and/or such Member’s spouse and/or such Member’s descendants (by birth or adoption), parents or dependents, or any charitable trust the grantor of which is such Member
and/or one or more members of the Member’s Family Group. 
 “Fiscal Year” means the fiscal year of the
Company and shall be the annual period ending each year on the Saturday that is closest (measured by number of calendar days) to January 31. 
  

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 “GAAP” means generally accepted accounting principles in the United States.

 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 

“Indebtedness” of any Person means, without duplication: (i) all obligations of such Person for borrowed money,
(ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments (other than performance, surety and similar bonds or instruments), (iii) all obligations of such Person to pay the deferred purchase
price of property or services, except trade accounts payable and accrued expenses arising in the ordinary course of business, (iv) all obligations of such Person as lessee under any leases which are required to be capitalized in accordance with
GAAP, (v) all obligations of others of the type described above secured by a Lien on any asset of such Person whether or not such obligation is assumed by such Person and (vi) all obligations of others of the type described above
guaranteed by such Person. 
 “Initial Public Offering” means the initial Public Offering. 

“Investors” means, collectively, Buyer, Limited and their respective Permitted Transferees. 

“Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge or security interest in respect
of such property or asset. 
 “Limited Brands” means Limited Brands, Inc., a Delaware corporation. 

“Member” means each Person that executed this Agreement as a member on the signature pages hereto and any other Person
who may from time to time be admitted to the Company as an additional or substitute member as provided herein, in each case in such Person’s capacity as a member of the Company. 

“One and One-Half Times Multiple” means the actual receipt by each holder of Class L Units of cash payments with respect
to and/or in exchange for its Class L Units (whether such payments are received from the Company or a third party in connection with any sale of all or substantially all of the outstanding Units of the Company (whether by merger, recapitalization or
otherwise), but excluding, for the avoidance of doubt, any fees or other amounts paid or payable to a holder of Class L Units or its Affiliates or any distribution made pursuant to Section 4.01(a)) equal to one and one-half times such
holder’s aggregate investment in Class L Units. For purposes hereof, the “investment” of a holder of Class L Units means the aggregate Capital Contributions actually paid to the Company for such holder’s Class L Units or, in the
case of Class L Units issued as of the date hereof, the amount set forth on Schedule I as of the date hereof under the column titled “Original Capital Contribution”. A determination of the “One and One-Half Times Multiple” will
be made hereunder each time a holder of Class L Units actually receives cash payments with respect to and/or in exchange for its Class L Units, and each holder of Class L Units will cooperate with the Company and provide the Company with all
reasonably requested information to determine whether the One and One-Half Times Multiple has been achieved. 
  

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 “Original Ownership Percentage” means, at any time, the fraction (expressed
as a percentage) that results from dividing (i) the number of Units owned by a Member and its Permitted Transferees at such time by (ii) the number of units owned by such Member in Express Holding, LLC on July 6, 2007 (as adjusted for
stock splits, combinations, recapitalizations and the like). 
 “Percentage Interest” means, with respect to
each Member, a fraction, the numerator of which is the number of Units held by such Member, and the denominator of which is the aggregate number of all Units then issued and outstanding. 

“Permitted Transferee” means, with respect to a Member or any Affiliate of a Member, (i) any Affiliate of such
Member under common control with such Member, (ii) any Transferee pursuant to the applicable laws of descent or distribution or among a Member’s Family Group or (iii) the Company, pursuant to any repurchase option or pledge granted to
the Company by any Member (other than any Investor). Any Units acquired by the Company pursuant to the exercise of any repurchase option or the exercise of any rights under any pledge agreement shall be cancelled and shall not be deemed outstanding.

 “Person” means an individual, corporation, partnership, association, trust, limited liability company, joint
venture, unincorporated organization or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 

“Product” means any product or service owned, licensed or sold (directly or indirectly) by the Company or any Subsidiary
of the Company. 
 “Public Offering” means an underwritten public offering of securities of the Company or any
of its Subsidiaries pursuant to an effective registration statement under the Securities Act, other than pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form. 

“Qualified Initial Public Offering” means an Initial Public Offering involving the sale of at least 15% of the
outstanding equity interests of the Company or any of its Subsidiaries after giving effect to such Initial Public Offering which yields gross proceeds of not less than $200,000,000. 

“Related Documents” means the Transaction Documents (other than this Agreement) as defined in the Unit Purchase
Agreement. 
 “Rule 144” means Rule 144 promulgated under the Securities Act, or any successor provision then
in force. 
 “Securities Act” means the Securities Act of 1933, as amended. 

 

 5 

 “Senior Credit Agreement” means, collectively, that certain term loan
agreement and that certain asset-based revolving credit agreement contemplated by the Unit Purchase Agreement by and among the Company and/or certain of its Subsidiaries named therein and the lenders and agents named therein. 

“Subsidiary” means, at any time, with respect to any Person, any entity of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time owned or controlled directly or indirectly by such Person. 

“Transfer” means, with respect to any Units, (i) when used as a verb, to sell, assign, dispose of, exchange,
pledge, encumber, hypothecate or otherwise transfer such Units or any participation or interest therein, whether directly or indirectly, or agree or commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale,
assignment, disposition, exchange, pledge, encumbrance, hypothecation, or other transfer of such Units or any participation or interest therein or any agreement or commitment to do any of the foregoing; “Transferee” means a person
to whom a Transfer is made or is proposed to be made; and “Transferor” means a person that Transfers or proposes to Transfer. For the avoidance of doubt, the term “Transfer” includes a direct or indirect sale, assignment,
disposition, exchange, pledge, encumbrance, hypothecation or other transfer however structured (whether pursuant to merger, consolidation, business combination or other similar transaction or by operation of law). 

“Two Times Multiple” means the actual receipt by each holder of Class L Units of cash payments with respect to and/or in
exchange for its Class L Units (whether such payments are received from the Company or a third party in connection with any sale of all or substantially all of the outstanding Units of the Company (whether by merger, recapitalization or otherwise),
but excluding, for the avoidance of doubt, any fees or other amounts paid or payable to a holder of Class L Units or its Affiliates or any distribution made pursuant to Section 4.01(a)) equal to two times such holder’s aggregate investment
in Class L Units. For purposes hereof, the “investment” of a holder of Class L Units means the aggregate Capital Contributions actually paid to the Company for such holder’s Class L Units or, in the case of Class L Units issued as of
the date hereof, the amount set forth on Schedule I as of the date hereof under the column titled “Original Capital Contribution”. A determination of the “Two Times Multiple” will be made hereunder each time a holder of Class L
Units actually receives cash payments with respect to and/or in exchange for its Class L Units, and each holder of Class L Units will cooperate with the Company and provide the Company with all reasonably requested information to determine whether
the Two Times Multiple has been achieved. 
 “Unit Purchase Agreement” means that certain Unit Purchase
Agreement dated as of May 15, 2007, as amended by Amendment No. 1 thereto dated as of July 6, 2007, by and among LBSO, Buyer and the other Persons party thereto, as the same may be further amended from time to time. 

“Unpaid Class L Yield” of any Class L Unit means, as of any date, an amount equal to the excess, if any, of (a) the
aggregate Class L Yield accrued on such Class L Unit during the 
  

 6 

 
period commencing with the issuance date of such Class L Unit (which shall mean and include any issuance by Express Holdings, LLC of any of its Class L units which are or have been exchanged for
Class L Units of the Company) and ending on such date, over (b) the aggregate amount of prior distributions made by the Company or received by such holder that constitute payment of Class L Yield on such Class L Unit pursuant to
Section 4.01(a). 
 “Unreturned Capital” means, with respect to a Class L Unit, an amount equal to the
excess, if any, of (a) the aggregate amount of Capital Contributions made in exchange for or on account of such Unit (including all such amounts set forth on Schedule I), over (b) the aggregate amount of prior distributions made by the
Company or received by such holder that constitute a return of the Capital Contributions therefor pursuant to Section 4.01(b). 

“Vested Units” means the Class L Units issued to any Investor and any other Units which have vested in accordance with
the terms and conditions of any written agreement pursuant to which such other Units were purchased or granted. 
 (b) Each of
the following terms is defined in the Section set forth opposite such term: 
  

			
	 Term
	  	 Section

		
	Agreement	  	Preamble
	Board of Managers	  	5.01
	Buyer	  	Preamble
	Buyer Designee	  	5.01
	Buyer Units	  	8.06(a)
	Company	  	Preamble
	Confidential Information	  	9.03(a)
	Deciding Member	  	8.03
	Delaware Law	  	2.01
	Distribution in Kind	  	8.01(a)
	Drag-Along Sale	  	8.06(a)
	Drag-Along Sale Notice	  	8.06(b)
	Drag-Along Sale Price	  	8.06(b)
	Drag-Along Transferee	  	8.06(a)
	Election Notice	  	8.03
	Equity Value	  	8.05(a)
	EXP	  	Preamble
	Indemnitor	  	7.01(c)
	Initiating Members	  	8.06(a)
	IRS Notice	  	6.04(d)
	Issuance Notice	  	3.04(a)
	LBSO	  	Preamble
	Limited	  	Preamble
	Limited Designee	  	5.01

  

 7 

			
	 Term
	  	 Section

		
	Liquidating Event	  	10.02
	Manager	  	5.01
	Non-Voting Appointee	  	5.01(a)(iii)
	Offering Member	  	8.03
	Offer Notice	  	8.03
	Other Business	  	9.04(b)
	Other Members	  	8.06(a)
	Proportionate Value	  	8.05(a)
	Remaining Securities	  	3.04(b)
	Right of First Refusal	  	8.04(a)
	ROFR Period	  	8.04(a)
	ROFR Termination	  	8.04(c)
	Tag-Along Right	  	8.05(a)
	Tag-Along Right Period	  	8.05(b)
	Tax Matters Partner	  	6.04(a)
	Total Equity Value	  	8.05(a)
	Units	  	3.01

 ARTICLE 2 

FORMATION AND PURPOSES OF THE COMPANY 

Section 2.01. Formation of the Company. The Company has previously been formed pursuant to the Delaware Limited Liability
Company Act, 6 Del. Code § 18-101 et seq. (as amended, and any successor to such statute, “Delaware Law”). The rights and liabilities of the Members shall be as provided for in Delaware Law if not otherwise expressly
provided for in this Agreement. 
 Section 2.02. Name of the Company. The name of the Company shall be
“Express Parent LLC” or such other name as the Board of Managers shall approve. 
 Section 2.03.
Purpose of the Company. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Delaware Law and in any and all activities necessary or incidental to the foregoing.
In furtherance of its purpose, the Company shall have and may exercise all the powers now or hereafter conferred by Delaware Law on limited liability companies. The Company shall have the power to do any and all acts necessary, appropriate, proper,
advisable, incidental or convenient to or for the protection and benefit of the Company, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Members, it being understood that
(i) the operation of the Company is subject to the provisions of this Agreement and (ii) no Member shall be entitled to bind the Company, except as contemplated by this Agreement or as established by the Board of Managers in the manner
contemplated hereby. 
  

 8 

 Section 2.04. Place of Business of the Company. The principal place of business
of the Company shall be located at such place as shall be determined from time to time by the Board of Managers. The Company shall also have such additional offices as shall be determined from time to time by the Board of Managers. 

Section 2.05. Registered Office and Registered Agent. The address of the registered office of the Company in the State of
Delaware is c/o Corporation Trust Center, 1209 Orange Street, City of Wilmington, County of New Castle, Delaware 19801. The name of the registered agent for service of process on the Company at such address is The Corporation Trust Company.

 Section 2.06. Term. The Company commenced on the date of the filing of the Certificate of Formation, and the term
of the Company shall continue until the dissolution of the Company in accordance with the provisions of Article 10 hereof or as otherwise provided by law. 

Section 2.07. Title to the Company Property. All property of the Company and its Subsidiaries, whether real or personal,
tangible or intangible, shall be deemed to be owned by the Company or its Subsidiaries, as the case may be, as an entity, and no Member, individually, shall have any direct ownership interest in such property. 

Section 2.08. Filing of Certificates. The officers of the Company shall file and publish all such certificates, notices,
statements or other instruments required by law (a) to evidence the formation of the Company and (b) for the operation of the Company in all jurisdictions where the Company may elect from time to time to do business. 

Section 2.09. Limitation on Liability. Except as required by Delaware Law, the debts, obligations and liabilities of the
Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member shall be obligated for any such debt, obligation or liability of the Company solely by reason of being a
Member. Members shall not act as agents for one another or incur debts, obligations or liabilities on behalf of other Members. 

ARTICLE 3 

CAPITAL CONTRIBUTIONS AND MEMBERSHIP UNITS 

Section 3.01. Units. The Members’ ownership interests in the Company shall be represented by units having the rights and
obligations specified herein with respect to Class L Units, Class A Units, Class B Units and Class C Units (collectively, the “Units”). Subject to Section 5.02(b), the Company shall have the authority to issue an unlimited
number of Units, of which the number of Units set forth on Schedule I have been issued and are outstanding as of the date of this Agreement. All Units shall be uncertificated, unless otherwise determined by the Board of Managers. Subject to
Section 3.04 and Section 5.02(b), from time to time after the date hereof, the Board of Managers may cause the Company to offer and issue additional Units with such powers, preferences and rights, and subject to such qualifications,
limitations and restrictions, as the Board of Managers may determine. 
  

 9 

 Section 3.02. Additional Capital Contributions. Except as expressly set forth in
this Agreement, no Member shall be required to make any additional capital contributions to the Company. 
 Section 3.03.
Other Matters. 
 (a) Except as otherwise provided in this Agreement and except for any distributions made to the Members
according to their respective interests in distributions in accordance with Article 4 hereof or repurchases of Units, in each case made in compliance with this Agreement, no Member shall receive a return of any of its Capital Contributions, or any
of the amounts represented by such Member’s Percentage Interest, without the consent of the Investors. Under circumstances requiring a return of any Capital Contributions, no Member shall have the right to receive property other than cash
except as may be specifically provided herein. 
 (b) No Member or any Affiliate thereof shall receive any interest, salary or
drawing with respect to its Capital Contributions or its Percentage Interest or for services rendered on behalf of the Company or otherwise in its capacity as a Member or otherwise, except as otherwise contemplated by this Agreement or the Related
Documents or any other agreement in writing with the Company approved by the Board of Managers in accordance with the requirements of Section 5.02. 

(c) Except as provided herein, no Member shall have any right (a) to withdraw as a Member of the Company, (b) to withdraw from
the Company all or any part of such Member’s Capital Contributions, (c) to receive property other than cash in return for such Member’s Capital Contributions or (d) to receive any distribution from the Company except in
accordance with Article 4. 
 (d) Upon any Transfer of Units in accordance with the terms of this Agreement, the Transferee
shall succeed to the capital account of the Transferor to the extent attributable to the Transferred Units. 

Section 3.04. Preemptive Rights.  

(a) The Board of Managers shall have the authority to issue Company Securities in such amounts and at such purchase prices per Company
Security as determined by the Board of Managers, subject to the provisions of this Section 3.04 and Section 5.02(b). Subject to Section 3.04(e), the Company shall deliver written notice (an “Issuance Notice”) to each
Investor of any proposed issuance by the Company of any Company Securities at least 20 days prior to the proposed issuance date. The Issuance Notice shall specify the cash price at which such Company Securities are to be issued and the other
material terms of the issuance. Subject to Section 3.04(e), each Investor shall be entitled to purchase up to such Investor’s pro rata percentage (determined by dividing the number of Class L Units held by such Investor by the

  

 10 

 
total number of Class L Units then issued and outstanding and held by all of the Investors) of the Company Securities proposed to be issued, at the price and on the terms specified in the
Issuance Notice. 
 (b) An Investor shall deliver written notice of its election to purchase such Company Securities to the
Company and each other Investor within 15 days of receipt of the Issuance Notice. Such delivery of notice (which notice shall specify the number (or amount) of Company Securities to be purchased by the Investor submitting such notice) to the Company
shall constitute exercise by such Investor of its rights under this Section 3.04 and a binding agreement of such Investor to purchase, at the price and on the terms specified in the Issuance Notice, the number (or amount) of Company Securities
specified in such Investor’s notice. If, at the termination of such 15-day period, any Investor shall not have exercised its rights to purchase any of its pro rata percentage of such Company Securities, such Investor shall be deemed to have
waived all of its rights under this Section 3.04 with respect to the purchase of such Company Securities (but, for the avoidance of doubt, shall not have waived its rights with respect to any future purchase of Company Securities). To the
extent that any Investor does not exercise its rights under Section 3.04(a) in full, the Company shall provide the Investors who have elected to exercise their rights in full with the opportunity to purchase the remaining Company Securities
which were the subject of the Issuance Notice (the “Remaining Securities”). In such event, such Investors may elect to purchase any or all of the Remaining Securities; provided that each such electing Investor shall receive
its proportionate share of the Remaining Securities based on the aggregate number of Company Securities such Investors as a group elect to purchase if such number is more than the number or amount of Remaining Securities. 

(c) The Company shall have 90 days from the date of the Issuance Notice to consummate the proposed issuance of any or all of such Company
Securities that the Investors have not elected to purchase at the price and upon terms that are not less favorable to the Company than those specified in the Issuance Notice, provided that, if such issuance is subject to regulatory approval,
such 90-day period shall be extended until the expiration of five days after all such approvals have been received, but in no event later than 180 days from the date of the Issuance Notice. The closing of any purchase of such Company Securities that
Investors have elected to purchase pursuant to such Issuance Notice shall take place at the same time as the issuance to non-Members. 

(d) If the Investors have elected to purchase all of the Company Securities proposed to be issued at any one time pursuant to this
Section 3.04, the consummation of such purchase shall take place as soon as practicable (but in no event more than 45 days) following the receipt of all notices from the Investors indicating such election; provided that if such
purchase is subject to regulatory approval, such 45 day period shall be extended until the expiration of 5 Business Days after all such approvals have been received, but in no event later than 90 days following the receipt of such election notices.
At the consummation of the issuance of such Company Securities, the Company shall issue the Company Securities to be purchased by each Investor exercising preemptive rights pursuant to this Section 3.04 registered in the name of such Investor,
against payment by such Investor of the purchase price for such Company Securities as specified in the Issuance Notice. If the Company proposes to issue any Company Securities after such 90-day period (as it may be extended as provided above), it
shall again comply with the procedures set forth in this Section 3.04. 
  

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 (e) Notwithstanding the foregoing, no Investor shall be entitled to purchase Company
Securities as contemplated by this Section 3.04 in connection with issuances of (i) Company Securities to employees of the Company or any of its Subsidiaries pursuant to employee benefit plans or arrangements approved by the Board of
Managers (including upon the exercise of employee incentive grants made pursuant to any such plans or arrangements) or (ii) Company Securities as consideration for any bona fide, arm’s-length direct or indirect merger, acquisition or
similar transaction approved by the Board of Managers in accordance with the provisions of this Agreement. The Company shall not be obligated to consummate any proposed issuance of Company Securities, nor be liable to any Investor if the Company has
not consummated any proposed issuance of Company Securities pursuant to this Section 3.04 for whatever reason, regardless of whether it shall have delivered an Issuance Notice in respect of such proposed issuance. 

(f) This Section 3.04 shall terminate upon consummation of an Initial Public Offering. 

Section 3.05. Agreement to be Bound. No Transfer of Units otherwise permitted pursuant to this Agreement (other than any
Transfer pursuant to a Public Offering or Rule 144) shall be effective unless prior to (and as a condition to) such Transfer, the Transferee (if not already a party to this Agreement) shall have executed and delivered to the Company an instrument or
instruments reasonably satisfactory to the Board of Managers confirming that such Transferee has agreed to be bound as a “Member” by the terms of this Agreement, a copy of which instrument shall be maintained on file with the Secretary of
the Company and shall include the address of such Transferee to which notices hereunder shall be sent. Furthermore, no Transfer under this Agreement shall relieve the Transferor from any of its obligations hereunder, and such Transferor and
Transferee shall be jointly and severally liable with respect to any such obligations. Prior to issuing Units to any new Members, the Company will require such Member to agree to be bound by this Agreement in the manner described above. 

ARTICLE 4 

DISTRIBUTIONS AND ALLOCATIONS 

Section 4.01. Distributions. The Company may periodically make distributions of available cash to the Members at such times
and in such amounts as are approved by the Board of Managers, subject to the applicable requirements of Section 5.02(b). Except as otherwise set forth in this Article 4, each distribution shall be made to the holders of Vested Units (determined
as of the time of any such distribution) in the following order and priority: 
 (a) First, to the Class L Unitholders, an
amount equal to the aggregate Unpaid Class L Yield with respect to their Vested Class L Units outstanding as of the time of such distribution (ratably among such holders based on the Unpaid Class L Yield of each such Vested Class L Unit as of the
time of such distribution) until each Class L Unitholder has received distributions 
  

 12 

 
with respect to its Vested Class L Units pursuant to this Section 4.01(a) in an amount equal to the aggregate Unpaid Class L Yield with respect to such holder’s Vested Class L Units
outstanding as of the time of such distribution, and no distribution or any portion thereof shall be made under any of the other subparagraphs of this Section 4.01 until the entire amount of the Unpaid Class L Yield with respect to the Vested
Class L Units outstanding as of the time of such distribution has been paid in full; 
 (b) Second, to the Class L Unitholders,
an amount equal to the aggregate Unreturned Capital with respect to their Vested Class L Units outstanding as of the time of such distribution (ratably among such holders based on the Unreturned Capital of each such Vested Class L Unit as of
the time of such distribution) until each Class L Unitholder has received distributions with respect to its Vested Class L Units pursuant to this Section 4.01(b) in an amount equal to the aggregate Unreturned Capital with respect to its
Vested Class L Units outstanding as of the time of such distribution, and no distribution or any portion thereof shall be made under any of the other subparagraphs of this Section 4.01 until the entire amount of the Unreturned Capital with
respect to the Vested Class L Units outstanding as of the time of such distribution has been paid in full; 
 (c) Third, to
the holders of Class L Units and Class A Units, as a group (ratably among such holders based upon the number of Vested Class L Units and Vested Class A Units held by each such holder as of the time of such distribution), an amount equal to
100% of such distribution until the remaining amount of the One and One-Half Times Multiple has been achieved, and no distribution or any portion thereof shall be made under any of the other subparagraphs of this Section 4.01 until the One and
One-Half Times Multiple has been achieved; 
 (d) Fourth, to the holders of Class L Units, Class A Units and Class B Units,
as a group (ratably among such holders based upon the number of Vested Class L Units, Vested Class A Units and Vested Class B Units held by each such holder as of the time of such distribution), an amount equal to 100% of the remaining amount
of such distribution until the Two Times Multiple has been achieved, and no distribution or any portion thereof shall be made under any of the other subparagraphs of this Section 4.01 until the Two Times Multiple has been achieved; and

 (e) Fifth, to the holders of Class L Units, Class A Units, Class B Units and Class C Units, as a group (ratably among
such holders based upon the number of Vested Class L Units, Vested Class A Units, Vested Class B Units and Vested Class C Units held by each such holder as of the time of such distribution), an amount equal to 100% of the remaining amount of
such distribution. 
 Section 4.02. Tax Distributions.  

(a) Notwithstanding any other provision of this Agreement, to the extent cash is available for distributions, the Board of Managers shall
cause the Company to make distributions to each Member at such times as shall be reasonably determined to enable such Member to pay 

 

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federal, state and local income taxes, including estimated taxes, in an amount equal to the product of (i) the net profit allocated to such Member pursuant to Section 4.06(a) and
(ii) the combined effective tax rate equal to the greater of the combined marginal federal, state and local income tax rate applicable to a corporation or an individual in the State of California, as the case may be, and taking into account the
amount of distributions (if any) previously made pursuant to Section 4.01. 
 (b) Any distribution pursuant to
Section 4.02(a) will be deemed to be an advance distribution of amounts otherwise distributable to the Members pursuant to Section 4.01 and will reduce the amounts that would subsequently otherwise be distributable to the Members pursuant
to Section 4.01. 
 Section 4.03. Distributions in Violation of Delaware Law. Notwithstanding any provision of
this Agreement to the contrary, the Board of Managers shall not be required to make a distribution to a Member if such distribution would violate Delaware Law or any other applicable law. 

Section 4.04. Amounts Withheld. The Company is authorized to withhold from distributions, or with respect to allocations, to
the Members and to pay over to any federal, state, local or foreign government any amounts which it reasonably determines may be required to be so withheld pursuant to the Code or any provisions of any other federal, state, local or foreign law. All
amounts withheld pursuant to the Code or any provision of any state, local or foreign tax law with respect to any allocation or distribution to any Member shall be treated as amounts distributed to such Member pursuant to this Article for all
purposes under this Agreement. The Company shall provide each Member with documentation substantiating that such withholdings were in fact paid to the relevant governmental entity. 

Section 4.05. Dissolution. Upon dissolution and winding up of the Company, the Company shall make distributions in accordance
with Section 10.04. 
 Section 4.06. Allocations.  

(a) Except as otherwise provided in Section 4.07, profits and losses for any Fiscal Year shall be allocated among the Members in
such a manner that, as of the end of such Fiscal Year, the sum of (i) the Capital Account of each Member, (ii) such Member’s share of minimum gain (as determined according to Treasury Regulation Section 1.704-2(g)) and
(iii) such Member’s partner nonrecourse debt minimum gain (as defined in Treasury Regulation Section 1.704-2(i)(3)) shall be equal to the respective net amounts, positive or negative, which would be distributed to them or for which
they would be liable to the Company under this Agreement, determined as if the Company were to (i) liquidate the assets of the Company for an amount equal to their Book Value and (ii) distribute the proceeds of liquidation pursuant to
Section 10.04; provided, however, that any deductions for compensation expense attributable to the exercise of options to purchase the common stock of Limited Brands or the vesting of Limited Brands’ restricted stock after
July 6, 2007 shall be allocated to Limited. 
  

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 Section 4.07. Tax Allocations.  

(a) Except as otherwise provided in this Section 4.07 or required by the Code or other applicable law, the income, gains, losses,
deductions and credits of the Company will be allocated, for federal, state and local income tax purposes, among the Members in the same proportions as they share the corresponding items pursuant to Section 4.06. 

(b) Items of Company taxable income, gain, loss and deduction with respect to any property contributed to the capital of the Company in
connection with its formation shall be allocated among the Members in accordance with Code Section 704(c) under the “traditional method” so as to take account of any variation between the adjusted basis of such property to the Company
for federal income tax purposes and its Book Value. 
 (c) If the Book Value of any Company asset is adjusted pursuant to the
requirements of Treasury Regulations Section 1.704-1(b)(2)(iv)(e) or (f), subsequent allocations of items of taxable income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of
such asset for federal income tax purposes and its Book Value in the same manner as under Code Section 704(c). 
 (d) Tax
deductions for compensation expense attributable to the exercise of options to purchase the common stock of Limited Brands or the vesting of Limited Brands’ restricted stock after July 6, 2007 shall be allocated to Limited. 

(e) If any Member who unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation
Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6) has an adjusted capital account deficit (determined according to Treasury Regulation Section 1.704-1(b)(2)(ii)(d)) as of the end of any Fiscal Year, then taxable income or
gain for such Fiscal Year shall be allocated to such Member in proportion to, and to the extent of, such adjusted capital account deficit. This Section 4.07(e) is intended to be a “qualified income offset” provision as described in
Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted in a manner consistent therewith. 

ARTICLE 5 

THE BOARD OF MANAGERS 

Section 5.01. Board of Managers. 

(a) Except as otherwise provided in this Agreement, the business and affairs of the Company shall be managed by or under the direction of
a board of managers (the “Board of Managers”), which shall initially be composed of five managers (plus the Non-Voting Appointee, as described in Section 5.01(a)(iii) below) (each, a “Manager”), designated as
follows: 
 (i) Limited may designate (x) two Managers so long as Limited’s Original Ownership
Percentage is at least 50% and (y) one Manager so long as Limited’s Original Ownership Percentage is at least 25% (each Manager designated by Limited, a “Limited Designee”); 

 

 15 

 (ii) Golden Gate Capital Investment Fund II, L.P., Golden Gate Capital
Investment Fund II-A, L.P., and Golden Gate Capital Investment Annex Fund II, L.P. may collectively designate (x) three Managers (one of whom shall be designated by Golden Gate Capital Investment Fund II, L.P., one of whom shall be designated
by Golden Gate Capital Investment Fund II-A, L.P., and one of whom shall be designated by Golden Gate Capital Investment Annex Fund II, L.P.) so long as Buyer’s Original Ownership Percentage is at least 50% and (y) two Managers (one of
whom shall be designated by Golden Gate Capital Investment Fund II-A, L.P., and one of whom shall be designated by Golden Gate Capital Investment Annex Fund II, L.P.) so long as Buyer’s Original Ownership Percentage is at least 25% (each
Manager so designated pursuant to this Section 5.01(a)(ii), a “Buyer Designee”); and 

(iii) in addition to the Limited Designees and the Buyer Designees, unless the Company’s CEO is separately appointed
as a Limited Designee or a Buyer Designee (in which case such appointee shall be a voting member of the Board), the Company’s CEO shall be an ex-officio, non-voting member of the Board of Managers (the “Non-Voting Appointee”).
The Non-Voting Appointee shall not be deemed a Manager for purposes of any action or vote taken or omitted to be taken by the Board of Managers or for the purposes of determining the presence of a quorum for the conduct of business by the Board of
Managers, but shall be deemed to be a member of the Board of Managers for purposes of director and officer indemnification and insurance coverage. 

(b) Golden Gate Capital Investment Annex Fund II, L.P. shall be entitled to designate, from time to time, the Manager who shall serve as
Chairman of the Board of Managers. 
 (c) The Company and each Member will take all actions that are necessary and within its
power in order to ensure that the composition of the Board of Managers is as set forth in Section 5.01(a) and Section 5.01(b). Notwithstanding anything to the contrary herein, the rights of Limited and Buyer’s Affiliates set forth in
Section 5.01(a) and Section 5.01(b) are personal to Limited and Buyer’s Affiliates, respectively, and no Transferee or other Member may succeed to or be assigned any of such rights. 

(d) Except as otherwise expressly provided in this Agreement, the Board of Managers shall have the power on behalf and in the name of the
Company to carry out any and all of the purposes of the Company described in Section 2.03 and to perform all acts which it may, in its discretion, deem necessary or desirable in furtherance of such purposes. 

Section 5.02. Quorum and Manner of Acting. (a) Except as otherwise expressly provided in this Agreement, (i) the
presence (in person or by telephone) of a majority of the total number of Managers (excluding, for the avoidance of doubt, the Non-Voting Appointee) shall 

 

 16 

 
constitute a quorum for the transaction of business and (ii) the affirmative vote of at least a majority of the Managers (excluding, for the avoidance of doubt, the Non-Voting Appointee)
present at a meeting at which a quorum exists shall be the act of the Board of Managers. When a meeting is adjourned to another time or place (whether or not a quorum is present), notice need not be given of the adjourned meeting if the time and
place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the Board of Managers may transact any business which might have been transacted at the original meeting. If a quorum shall not be present at any
meeting of the Board of Managers, the Managers present thereat may adjourn the meeting, from time to time, without notice other than announcement at the meeting, until a quorum shall be present. The Chairman of the Board of Managers shall appoint a
person to act as secretary of each meeting of the Board of Managers and keep the minutes thereof. Any Manager (excluding, for the avoidance of doubt, the Non-Voting Appointee) may designate another individual to attend a meeting of the Board of
Managers and such individual shall have the full power and authority to take any action which such Manager would otherwise be entitled to take. 

(b) Without limiting the generality of Section 5.02(a), except as otherwise expressly provided in this Agreement or any Related
Document, the actions set forth on Annex A hereto shall require the approval of the Board of Managers and shall be subject to the approval rights of Limited as indicated on Annex A. 

Section 5.03. Time and Place of Meetings. The Board of Managers shall hold its meetings at least quarterly, at such place,
either within or without the State of Delaware, and at such time as may be determined from time to time by the Board of Managers. Each Member shall use reasonable efforts to cause the Managers appointed by such Member to attend each meeting of the
Board of Managers. 
 Section 5.04. Regular Meetings. After the place and time of regular meetings of the Board of
Managers shall have been determined and notice thereof shall have been once given to each Manager, regular meetings may be held without further notice being given. The Company shall deliver to each Manager, at least ten Business Days before the
meeting date, an agenda, any proposed resolutions and appropriate background information regarding the matters to be acted upon. The business conducted at any regular meeting shall be limited to the items set forth in the agenda. The Board of
Managers shall schedule its meetings using good faith efforts to accommodate any scheduling conflicts of the Managers. Regular meetings of the Board of Managers shall only be scheduled for a Business Day during normal business hours, unless
otherwise agreed by Limited and Buyer. 
 Section 5.05. Special Meetings. Special meetings of the Board of Managers
may be called upon the written request of any two Managers. Notice of special meetings of the Board of Managers shall be given to each Manager at least five Business Days before the meeting date in such manner as is determined by the Board of
Managers, and shall include a statement of the purpose or purposes of such special meeting, any proposed resolutions and appropriate background information regarding the matters to be acted upon. A written waiver of any such notice signed by the
Manager entitled thereto, whether before or after the time stated therein, 
  

 17 

 
shall be deemed equivalent to notice. Attendance of a Manager at a meeting shall constitute a waiver of notice of such meeting, except when such Manager attends the meeting for the express
purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. The business conducted at any special meeting shall be limited to the purpose or purposes set forth in
the notice thereof. 
 Section 5.06. Subcommittees. Subject to Section 5.02(b), the Board of Managers may
designate one or more subcommittees. Any such subcommittee, to the extent provided in the resolution of the Board of Managers, shall have and may exercise all the powers and authority of the Board of Managers in the management of the business and
affairs of the Company, subject to the applicable approval rights of Limited pursuant to Section 5.02(b). Each subcommittee shall keep regular minutes of its meetings and report the same to the Board of Managers when required. 

Section 5.07. Subsidiaries. The board of directors or comparable governing body of each Subsidiary of the Company with a
board of directors or equivalent body shall be comprised of the individuals who are serving as Managers in accordance with Section 5.01. The other provisions of this Article 5 (including Annex A) shall apply mutatis mutandis to each such
Subsidiary of the Company. 
 Section 5.08. Action by Consent. Any action required or permitted to be taken at any
meeting of the Board of Managers or of any subcommittee thereof may be taken without a meeting, if all members of the Board of Managers (excluding, for the avoidance of doubt, the Non-Voting Appointee) or subcommittee, as the case may be, consent
thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board of Managers or subcommittee, as the case may be. 

Section 5.09. Telephonic Meetings. Members of the Board of Managers or any subcommittee thereof may participate in a meeting
of the Board of Managers or such subcommittee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a
meeting shall constitute presence in person at the meeting. 
 Section 5.10. Resignation. Any Manager may resign at
any time by giving written notice to the Board of Managers of the Company. The resignation of any Manager shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and unless otherwise specified
therein, the acceptance of such resignation shall not be necessary to make it effective. 
 Section 5.11. Term;
Vacancies. Each Manager shall hold office until his or her successor is appointed, or until his or her earlier death, resignation or removal. Any Manager may be removed, with or without cause, at any time by the Member or the Affiliate of such
Member who appointed such Manager. Vacancies on the Board of Managers may only be filled by the Member or the Affiliate of such Member that appointed the departing Manager. In connection with each appointment or removal of a Manager, the Member or
the Affiliate of such Member making such appointment or removal shall give written notice thereof to the Company and the other Member. 
  

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 ARTICLE 6 

ACCOUNTING AND TAX MATTERS 

Section 6.01. Auditors and Financial Statements. 

(a) The Company’s independent public accountants shall initially be Ernst & Young. The Board of Managers (subject to
Section 5.02) may change the Company’s independent public accountants for any Fiscal Year after February 2, 2008. 

(b) The Company shall adopt and follow GAAP, consistently applied, and all financial terms used herein shall, to the extent not otherwise
defined, be interpreted according to GAAP in accordance with their common usage by auditors in the United States. Without limitation of the other rights of the Members under this Agreement, each Investor and its independent auditors shall be
entitled to have reasonable access to and consultation with the Company’s management (including its finance and accounting staff) and the Company’s independent public accountants and shall be entitled to review such accountants’ work
papers and the information made available to them in connection with the preparation and audit of the Company’s financial statements. The Company shall cause its independent public accountants to make such work papers and information available
to the Investors and otherwise to cooperate with the Investors and their independent auditors as reasonably requested. The Company shall afford each Investor and its auditors and other authorized representatives such other reasonable access to the
Company’s books of account, financial and other records as an Investor may reasonably request upon reasonable prior notice and during normal business hours of the Company. 

(c) The Company shall adopt and follow Limited Brands’ certification procedures as used by Limited Brands from time to time and
communicated by Limited Brands to the Company. These procedures shall include the Company providing certification to Limited Brands by the second Thursday after the end of the quarter for which financial statements are being certified and providing
to Limited Brands such supporting detail as is required by Limited Brands for its certification process. The Company’s independent public accountants shall review the unaudited consolidated balance sheet of the Company and its Subsidiaries as
at the end of each of the first three fiscal quarters and the related unaudited statement of operations and cash flows for each such quarter. This Section 6.01(c) shall terminate at the later of (i) such time as the Percentage Interest of
Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008. 
 Section 6.02. Partnership for
Tax Purposes. The Members hereby agree that the Company shall be treated as a partnership for tax purposes under United States federal, state and local income tax laws or other laws, and further agree not to take any position or to make any
election, in a tax return or otherwise, inconsistent herewith. 
  

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 Section 6.03. Tax Elections. The Company’s accounting period for federal
income tax purposes shall be the Fiscal Year, unless the Board of Managers shall determine otherwise (subject to Section 5.02) in compliance with applicable laws. 

Section 6.04. Tax Matters Partner. (a) The tax matters partner (the “Tax Matters Partner”) for purposes
of Section 6231 of the Code shall be Buyer. The Tax Matters Partner shall act in accordance with the tax policies established by the Board of Managers. The Tax Matters Partner shall, at the expense of the Company, cause to be prepared and filed
all tax returns (including amended returns) required to be filed by the Company. 
 (b) All necessary tax information shall be
delivered to each Member after the end of each Fiscal Year of the Company. Such information shall be furnished not later than 90 days prior to the due date (including extensions) of the Company’s federal income tax information return. The
Company shall take such action as is necessary to make each Investor a “notice partner” within the meaning of Section 6231(a)(8) of the Code. 

(c) All elections by the Company for income and franchise tax purposes and all determinations regarding the fair market value of any
Company assets, book basis, depreciation or amortization and all other matters relating to all tax returns (including amended returns) filed by the Company, including tax audits and related matters and controversies, shall be made and conducted by
the Tax Matters Partner at the direction of the Board of Managers. 
 (d) By executing this Agreement, each Member authorizes
and directs the Company to elect to have the “Safe Harbor” described in the proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43 (the “IRS Notice”) apply to any interest in the Company
transferred to a service provider by the Company on or after the effective date of such Revenue Procedure in connection with services provided to the Company. For purposes of making such Safe Harbor election, the Tax Matters Partner is hereby
designated as the “partner who has responsibility for federal income tax reporting” by the Company and, accordingly, execution of such Safe Harbor election by the Tax Matters Partner constitutes execution of a “Safe Harbor
Election” in accordance with Section 3.03(1) of the IRS Notice. The Company and each Member hereby agrees to comply with all requirements of the Safe Harbor described in the IRS Notice, including, without limitation, the requirement that
each Member shall prepare and file all federal income tax returns reporting the income tax effects of each interest in the Company issued by the Company covered by the Safe Harbor in a manner consistent with the requirements of the IRS Notice.

 (e) The Company and each Member may pursue any and all rights and remedies it may have to enforce the obligations of the
Company, the Tax Matters Partner and the Members (as applicable) under Section 6.04(d), including, without limitation, seeking specific performance and/or immediate injunctive or other equitable relief from any court of competent jurisdiction
(without the necessity of showing actual money damages, or posting any bond or other security) in order to enforce or prevent any violation of the provisions of Section 6.04(d). A Member’s obligations to comply with the requirements of
Section 6.04(d) shall survive such Member’s ceasing to be a Member of the Company and/or the termination, dissolution, liquidation and winding up of the Company, and, for purposes of this Section 6.04, the Company shall be treated as
continuing in existence. 
  

 20 

 (f) Each Member authorizes the Tax Matters Partner to amend Section 6.04(d) and 6.04(e)
to the extent necessary to achieve substantially the same tax treatment with respect to any interest in the Company transferred to a service provider by the Company in connection with services provided to the Company as set forth in Section 4
of the IRS Notice (including, without limitation, any amendment to reflect changes from the rules set forth in the IRS Notice in subsequent Treasury Regulations or Internal Revenue Service guidance), provided that such amendment is not materially
adverse to the Member (as compared with the after tax consequences that would result if the provisions of the IRS Notice applied to all interests in the Company transferred to a service provider by the Company in connection with services provided to
the Company). 
 ARTICLE 7 

INDEMNIFICATION 

Section 7.01. Indemnification. 

(a) Except in the case of bad faith, gross negligence or willful misconduct, to the fullest extent permitted by Delaware Law, no Member,
Manager or other officer of the Company shall be liable to the Company or any Member for monetary damages for any breach of fiduciary duty. 

(b) Except in the case of bad faith, gross negligence or willful misconduct, each Person (and the heirs, executors or administrators of
such Person) who was or is a party or is threatened to be made a party to, or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that such
Person is or was a Member, Manager or officer of the Company, shall be indemnified and held harmless by the Company to the fullest extent permitted by Delaware Law. The right to indemnification conferred in this Section shall also include the right
to be paid by the Company the expenses incurred in connection with any such proceeding in advance of its final disposition to the fullest extent authorized by Delaware Law. The right to indemnification conferred in this Section shall be a contract
right. 
 (c) Each Member (an “Indemnitor”) indemnifies the other Member for any losses and liabilities
(including reasonable attorney’s fees) incurred by such Member in connection with its membership in the Company (whether as a result of a decline in value of such Member’s Units or otherwise) to the extent such losses and liabilities arise
out of the bad faith, gross negligence or willful misconduct of the Indemnitor. 
  

 21 

 (d) The Company may, by action of the Board of Managers, provide indemnification to Members,
Managers, officers, employees and agents of the Company or other persons who are or were serving at the request of the Company as a member, director, manager, officer, employee or agent of another corporation, partnership, joint venture, limited
liability company, trust or other enterprise to such extent and to such effect as the Board of Managers shall determine to be appropriate. 

(e) The Company shall purchase and maintain insurance on behalf of any person who is or was a Manager, officer, director, employee or
agent of the Company or any of its Subsidiaries, or is or was serving at the request of the Company or any of its Subsidiaries as a Manager, officer, director, employee or agent of another corporation, partnership, joint venture, limited liability
company, trust or other enterprise against any expense, liability or loss incurred by such person in any such capacity or arising out of his or her status as such, whether or not the Company or any of its Subsidiaries would have the power to
indemnify such Person against such liability under Delaware Law. 
 (f) The rights and authority conferred in this Section shall
not be exclusive of any other right which any person may otherwise have or hereafter acquire. 
 (g) Neither the amendment of
this Section, nor, to the fullest extent permitted by Delaware Law, any modification of law, shall eliminate or reduce the effect of this Section in respect of any acts or omissions occurring prior to such amendment or modification. 

(h) No provision of this Section 7.01 shall limit or effect any Member’s obligation to comply with the express terms of this
Agreement or the Related Documents. 
 ARTICLE 8 

TRANSFER OF INTERESTS 

Section 8.01. General Restrictions. (a) No Transfer of any or all Units may be made (and each Member shall ensure that
no Transfer by it or any of its Affiliates is made) except for Transfers (i) to Permitted Transferees (it being agreed that EXP shall not make any Transfer to any Permitted Transferee prior to July 6, 2008), (ii) in accordance with
Section 8.03, Section 8.04, Section 8.05 and Section 8.06, (iii) in a Public Offering or pursuant to Rule 144 or (iv) following the 18-month anniversary of the consummation of the Initial Public Offering of any Units
(or the securities of the relevant publicly-traded entity held by such Member following the Initial Public Offering) pursuant to a distribution that is made pro rata without consideration therefor to its equity holders (a “Distribution in
Kind”). Notwithstanding the first sentence of this Section 8.01(a), no Member may (i) pledge, encumber or hypothecate any of its Units or (ii) enter into any derivative, swap, participation or similar arrangement that
transfers, directly or indirectly, in whole or in part, any of the economic consequences of ownership of such Units. Except with respect to the restrictions set forth in clause (iv) of the first sentence of this Section 8.01(a) (which
shall terminate on the 18-month anniversary of the consummation of an Initial Public Offering), the restrictions set forth in the first and second sentences of this Section 8.01(a) 

 

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shall terminate upon the consummation of a Qualified Initial Public Offering. Following the 18-month anniversary of the Initial Public Offering, to the extent permitted by applicable Law, a
Member shall provide the Company and each of the Investors with at least five days written notice prior to effecting any Distribution in Kind. Following a Qualified Initial Public Offering, to the extent permitted by applicable Law, each Member and
its Permitted Transferees shall provide each of the Investors with at least five Business Days written notice prior to effecting any Transfer (or entering into any agreement with respect to a Transfer) of 5% or more of the then outstanding Units of
the Company by such Member or its Permitted Transferees. 
 (b) Any Transfer of Units which is not made in compliance with the
provisions of this Agreement, including Section 3.05 hereof, shall be void and no such Transfer shall be recognized on the books and records of the Company or any other Person. Notwithstanding anything else contained herein, no Transfer shall
be made except in compliance with the Securities Act. If reasonably requested by the Board of Managers, each Transferee Member agrees to pay, prior to or simultaneously with the time of the Transfer, all expenses, including reasonable
attorneys’ fees, incurred by the Company in connection with such Transfer. 
 (c) Notwithstanding the foregoing,
(i) Transfers of shares of Limited Brands or any successor thereof shall not be considered Transfers prohibited by this Section 8.01 and (ii) Transfers of interests in Golden Gate Private Equity, Inc. and its managed investment funds
shall not be considered Transfers prohibited by this Section 8.01. 
 Section 8.02. Transferee Rights. Any
Person who is a Transferee of any portion of a Member’s Units in accordance with this Agreement shall become a substitute Member. A permitted Transferee of any Units or rights attributable to the Units of any Member shall be entitled to receive
distributions of cash or other property from the Company to the extent of the rights under such Units. 
 Section 8.03.
Notice of Request to Transfer. In the event that any Member or its Permitted Transferees (the “Offering Member”) proposes to Transfer (in one transaction or in a series of transactions) any Units to a third party (other than
(i) to a Permitted Transferee, (ii) in a Public Offering or pursuant to Rule 144 or (iii) in a Drag-Along Sale pursuant to Section 8.06), (i) the Offering Member shall give written notice (the “Offer
Notice”) to Limited (in the case that Buyer or its Permitted Transferee is the Offering Member) or Buyer (in the case that any Member or its Permitted Transferee (other than Buyer or its Permitted Transferee) is the Offering Member) (the
“Deciding Member”), the Company and the other Investors of such proposal. The Offer Notice shall specify the number of Units proposed to be Transferred, the proposed purchase price (which shall consist solely of cash consideration),
the identity of the proposed third party Transferee and the other material terms and conditions of the proposed Transfer, including, with respect to Section 8.05 hereof, the number of Vested Units eligible to be Transferred pursuant to
Section 8.05 by the Members exercising their Tag Along Rights and the purchase price to be received with respect to each such class of Vested Units. Within 20 days of its receipt of the Offer Notice, the Deciding Member may elect in its sole
discretion, by written notice (the “Election Notice”) to the Offering Member, to (i) prohibit the Offering Member from proceeding with the Transfer proposed in the Offer Notice, in which case the Offering Member

  

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shall not be permitted to make such Transfer, or (ii) permit the Offering Member to proceed with the Transfer proposed in the Offer Notice, in which case the Offering Member and all other
Members shall comply with the applicable provisions of Section 8.04 and Section 8.05. Upon an election by the Deciding Member to prohibit a proposed Transfer in accordance with clause (i) of the preceding sentence, any subsequent
proposal to Transfer any Units by the Offering Member shall again be subject to the provisions of this Section 8.03. This Section 8.03 shall terminate upon the consummation of a Qualified Initial Public Offering. 

Section 8.04. Rights of First Refusal.  

(a) If pursuant to Section 8.03 the Deciding Member has elected to permit the Offering Member to proceed with a Transfer (other than
(i) to a Permitted Transferee, (ii) in a Public Offering or pursuant to Rule 144 or (iii) in a Drag-Along Sale pursuant to Section 8.06), each Investor (other than the Offering Member) shall have the right and option (the
“Right of First Refusal”), exercisable within 10 days after the date of the Election Notice, to purchase up to its pro rata percentage (determined by dividing the number of Class L Units held by such Investor by the total number of
Class L Units then held by all Investors (other than those of the Offering Member)) of the Units at the price (which shall be in cash payable by wire transfer of immediately available funds in U.S. Dollars) and on the terms and conditions set forth
in the Offer Notice by providing written notice of that election to the Offering Member (and the other Investors). If any Investor fails to elect to purchase its pro rata percentage of the Units within such 10-day period, the Offering Member shall
give prompt written notice of such failure to those other Investors (if any) who do offer to purchase up to their pro rata percentage pursuant to the Right of First Refusal and such other Investors may purchase on a pro rata basis, based on the
number of Units they have previously elected to purchase, all of the balance thereof (or commit to purchase all of the balance thereof) at the price and on the terms and conditions set forth in the Offer Notice by providing written notice of that
election to the Offering Member within 10 days after the expiration of the 10-day period described above (such 10-day period, as may be extended by the additional 10-day period, the “ROFR Period”). Any offer to purchase Units
pursuant to the Right of First Refusal shall be irrevocable and binding on the Investor making such offer, subject only to compliance by the Offering Member with the terms of this Section 8.04. The failure of any Investor to advise the Offering
Member of such Investor’s decision to purchase Units within the applicable periods described above shall be deemed to constitute a notification to the Offering Member of a decision not to exercise the Right of First Refusal. 

(b) The closing for all Transfers of the Units purchased pursuant to the exercise of the Right of First Refusal shall occur within 30
days after the expiration of the ROFR Period (which 30-day period shall be extended to up to 90 days in the event any required approval of such sales from any governmental entity, including termination or expiration of the applicable waiting period
under the HSR Act, has not then been obtained), or at such other time as may be mutually agreed upon by the Offering Member and the applicable Investors purchasing the Units, with the Offering Member being required to provide representations and
indemnification to such purchasers only with respect to due authorization, valid execution and delivery, good title to the Units and no Liens on such Units. If any purchasing Investor shall default in its obligations to purchase Units pursuant to
this Section 8.04, the other purchasing Investors shall be entitled to 
  

 24 

 
purchase the Units that such defaulting Investor failed to purchase on the same basis as the other Units purchased by the non-defaulting Investors; provided that such purchase shall take
place within 10 Business Days of such default. 
 (c) Upon the failure of (i) the Investors (other than the Offering
Member) to exercise their Rights of First Refusal with respect to all (and not less than all) of the Units subject to an Offer Notice in accordance with Section 8.04(a) or (ii) the purchasing Investors to purchase all (and not less than
all) of the Units subject to such Offer Notice pursuant to Section 8.04(b) within the time designated therein for closing, as applicable (the time of such applicable failure, the “ROFR Termination”), the Offering Member shall
be relieved of such Offering Member’s obligations under this Section 8.04 with respect to that particular proposed Transfer and, subject to Section 8.05, such Offering Member shall be permitted, for a 90-day period commencing upon the
ROFR Termination (which 90-day period shall be extended up to 180 days in the event any required approval of such sales from any governmental entity, including termination or expiration of the applicable waiting period under the HSR Act, has not
then been obtained), to Transfer the Units subject to the Offer Notice to the third party(s) set forth in the Offer Notice at a price not lower, and on terms and conditions in the aggregate no more favorable to the third party(s), than offered to
the Investors in the Offer Notice. If, at the end of such 90-day (or up to 180-day, as applicable) period, the Offering Member has not completed such Transfer to such third party(s), then all the restrictions on Transfer contained in this Agreement
with respect to Units subject to such Offer Notice shall again be in effect. 
 (d) This Section 8.04 shall terminate upon
the consummation of a Qualified Initial Public Offering. 
 Section 8.05. Tag-Along Rights.  

(a) Subject to Section 8.07, following a ROFR Termination pursuant to Section 8.04(c), if an Offering Member proposes to
Transfer (in one transaction or in a series of transactions) any Vested Units (other than (i) to a Permitted Transferee, (ii) in a Public Offering or pursuant to Rule 144 or (iii) in a Drag-Along Sale pursuant to Section 8.06) to
a third party, then each Member (other than the Offering Member) shall have the right (the “Tag-Along Right”) to have included in the proposed Transfer, a number of Vested Units with an aggregate Equity Value (as defined below)
equal to the Proportionate Value (as defined below) of such Member’s Vested Units. The “Proportionate Value” of a Member’s Vested Units shall be determined by dividing (a) the Equity Value of all of such Member’s
Vested Units by (b) the Total Equity Value of all Vested Units. The “Total Equity Value” of the Vested Units is the aggregate proceeds that would be received by the holders of all Vested Units if the Company’s entire
business operations were sold at fair market value (assuming for this purpose that the fair market value is determined by reference to the implied value of the Vested Units to be Transferred by the Offering Member as described in the Offer Notice),
the Company’s liabilities and obligations were paid in full or otherwise satisfied, assumed or provided for, and the remaining proceeds were then distributed to the holders of Vested Units in accordance with Section 10.04 hereof and the
“Equity Value” of any Vested Unit is the amount that the holder of such Vested Unit would be entitled to receive in respect of such Vested Unit in connection 

 

 25 

 
therewith. In the event the Offering Member proposes to transfer Vested Units of more than one class held by the Offering Member, each other Member participating in such Transfer pursuant to this
Section 8.05, to the extent such Member elects to participate in such Transfer, will be required to sell in the contemplated Transfer a pro rata portion of the Vested Units of such class being Transferred by the Offering Member (up to the
maximum number of Vested Units of all such classes owned by each such participating Member); otherwise, such participating Member who so elects to participate in such Transfer shall sell Vested Units of the classes reasonably agreed by the Offering
Member and the participating Members to most closely approximate the Proportionate Value. The participating Members will be entitled to sell such Vested Units in the contemplated Transfer on the same terms and conditions (other than price, which
will be as described in this Section 8.05(a) above) as the Offering Member as specified in the Offer Notice, and for a price equal to the Equity Value of such Vested Units. 

(b) The Offering Member will use commercially reasonable efforts to obtain the agreement of the prospective Transferee to the
participation of the participating Members in any contemplated Transfer, and the Offering Member will not effect any Transfer of any of its Vested Units to the prospective Transferee unless (i) simultaneously with such Transfer, the prospective
Transferee purchases from each participating Member the Vested Units which such participating Member is entitled to and elects to sell to such prospective Transferee pursuant to Section 8.05(a) above or (B) simultaneously with such
Transfer, the Offering Member purchases (on the terms and conditions specified in this Section 8.05) the number of Vested Units of such class from each participating Member which such participating Member would have been entitled to and has
elected to sell pursuant to Section 8.05(a) above. 
 (c) The Members may exercise their Tag-Along Right within 10 days
following the ROFR Termination (the “Tag-Along Right Period”), by providing written notice to that effect to the Offering Member. If the Tag-Along Right has been exercised with respect to any Vested Units proposed to be Transferred
prior to the expiration of the Tag-Along Right Period, then the Offering Member may not effect any Transfer of the Vested Units subject to the Offer Notice to any third party except in compliance with the requirements of this Section 8.05,
including Section 8.05(b) hereof. 
 (d) Notwithstanding anything to the contrary contained in this Section 8.05,
there shall be no liability on the part of the Offering Member to any Member in the event that the Transfer of Units to the Person contemplated pursuant to this Section 8.05 is not completed for any reason whatsoever; provided that the
Offering Member complies with all of the provisions of this Section 8.05, Section 8.04 and Section 8.07. 
 (e)
The purchase from the other Members exercising Tag-Along Rights pursuant to this Section 8.05 shall be on the same terms and conditions, including any representations, warranties, covenants and indemnities, and the form of consideration, and on
the same date of Transfer, as are received by the Offering Member and stated in the Offer Notice, and the price specified in Section 8.05(a) above and shall be subject to Section 8.07. As promptly as practicable (but in no event later than
2 Business Days) after the completion of the Transfer of Vested Units of the Offering Member and the Members exercising Tag-Along Rights to the third 

 

 26 

 
party contemplated pursuant to this Section 8.05, the Offering Member shall notify the Members exercising Tag-Along Rights thereof, shall remit to such Members the net transaction proceeds
to which such Members are entitled pursuant thereto, and shall furnish such other evidence of the completion and time of completion of such Transfer and the terms and conditions thereof as may be reasonably requested by such Member. No Member
exercising its Tag-Along Rights under this Section 8.05 shall be required, for the purpose of exercising such rights, to comply with the provisions of Section 8.04 in connection with such Transfer. 

(f) If any Member has not exercised any portion of its Tag-Along Right prior to the expiration of the Tag-Along Right Period, such Member
shall be deemed to have waived the unexercised portion of such Tag-Along Right with respect to the Transfer of Units described in the Offer Notice and the Offering Member shall be permitted, for a period of 90 days from the expiration of the
Tag-Along Right Period (which 90-day period shall be extended up to 180 days in the event any required approval of such sales from any governmental entity, including termination or expiration of the applicable waiting period under the HSR Act, has
not then been obtained), to Transfer the Vested Units subject to the Offer Notice to the third party(s) set forth in the Offer Notice at a price not higher, and on terms and conditions in the aggregate no more favorable to the Offering Member, than
offered to the Members in the Offer Notice. If, at the end of such 90-day (or up to 180-day, as applicable) period, the Offering Member has not completed the Transfer of Vested Units of the Offering Member and the Vested Units of any Member
exercising its Tag-Along Rights in accordance with the terms and conditions set forth in the Offer Notice, all the restrictions on Transfer contained in this Agreement with respect to Vested Units owned by the Offering Member shall again be in
effect. 
 (g) This Section 8.05 shall terminate upon the consummation of a Qualified Initial Public Offering. 

Section 8.06. Drag-Along Sale.  

(a) Subject to Section 8.07, if at any time after July 6, 2009 (or such earlier date as may be agreed to by the unanimous
written consent of the Investors), (i) Buyer and its Permitted Transferees (the “Initiating Members”) propose to Transfer all or substantially all of their Units (“Buyer Units”) or all or substantially all of
the assets of the Company to a third party that is not a Permitted Transferee of Buyer (the “Drag-Along Transferee”) and (ii) the Percentage Interest of Buyer and its Permitted Transferees at such time is greater than the
Percentage Interest of Limited and its Permitted Transferees at such time, then the Initiating Members may elect, subject to the provisions of this Section 8.06, to effect a Drag-Along Sale; provided that in effecting such Drag-Along
Sale, if the Initiating Members hold more than one class of Vested Units at such time, such Initiating Members shall sell in such Drag-Along Sale a proportionate number of Vested Units of each such class based on the total number of Vested Units of
each such class held by the Initiating Members. Upon the election of the Initiating Members to effect a Drag-Along Sale, subject to the provisions of this Section 8.06, the Initiating Members shall require each other Member (the “Other
Members”) to Transfer in the Drag-Along Sale up to all of the Units (as determined in accordance with Section 8.06(b)) then held by such Other Members for the consideration and on the terms and conditions described in the Drag-Along
Sale 
  

 27 

 
Notice, and each Other Member will be deemed to have consented to (and agrees to waive any dissenter’s rights, appraisal rights or similar rights in connection therewith) such Drag-Along
Sale and agrees to take all necessary action to transfer such Other Member’s Units on the terms and conditions specified in the Drag-Along Sale Notice. As used herein, “Drag-Along Sale” means a Transfer of all or substantially
all of the outstanding Units of the Company (whether by merger, recapitalization or otherwise) or all or substantially all of the Company’s assets to a third party (other than a Permitted Transferee). 

(b) The Initiating Members shall provide written notice of such Drag-Along Sale to the Other Members (a “Drag-Along Sale
Notice”) specifying the purchase price (the “Drag-Along Sale Price”) that the Initiating Member proposes be paid by a third party for the Company and the other material terms and conditions of the proposed Transfer,
including (i) the number and class of Vested Units to be sold and (ii) the per Unit purchase price to be paid with respect to each class of Units as determined in accordance with the first sentence of Section 8.06(c) below. Each Other
Member shall be required to sell in the Drag-Along Sale, with respect to each class of Units, that number of Vested Units of such class owned by such Member multiplied by a fraction, the numerator of which is the number of Vested Units of all
classes to be sold by the Initiating Members in such Drag-Along Sale and the denominator of which is the total number of Vested Units of all classes owned by the Initiating Members. 

(c) In connection with any Drag-Along Sale, each holder of Vested Units shall be entitled to receive the same form of consideration and
the same portion of the aggregate consideration paid by the Drag-Along Transferee that such holder would have received with respect to its Vested Units sold in the Drag-Along Sale if the aggregate consideration paid by the Drag-Along Transferee in
such Drag-Along Sale had been paid directly to the Company and then distributed by the Company pursuant to Section 10.04 hereof (assuming for this purpose that the only issued and outstanding Units of the Company are the Vested Units sold in
the Drag-Along Sale). Except as set forth in the immediately preceding sentence, all holders of Vested Units to be sold shall be treated equally in the Drag-Along Sale (including with respect to receiving registration rights with respect to any
securities received as consideration). Notwithstanding any provision to the contrary contained in this Agreement, any Unit that does not become a Vested Unit immediately prior to, or in connection with, any Drag-Along Sale or any other sale of the
Company shall be forfeited and cancelled with concurrent effect upon the consummation of any such transaction, and no Member shall have any further rights or obligations with respect to such forfeited Units. 

(d) The Initiating Member shall be permitted, for a 90-day period commencing upon the delivery of the Drag-Along Sale Notice (which
90-day period shall be extended up to 180 days in the event any required approval from any governmental entity, including termination or expiration of the applicable waiting period under the HSR Act, has not then been obtained), to effect a
Drag-Along Sale at a price not lower, and on terms and conditions in the aggregate no more favorable to the third party(s), than offered to the Members in the Drag-Along Sale Notice. If, at the end of such 90-day (or up to 180-day, as applicable)
period, a Drag-Along Sale has not been consummated, then all the restrictions on Transfer contained in this Agreement shall again be in effect. 
  

 28 

 (e) If the Initiating Member shall effect a Drag-Along Sale in accordance with
Section 8.06(d), each Other Member shall be required to participate in the Drag-Along Sale on the terms and conditions set forth in the Drag-Along Notice (which terms and conditions will also apply to the Initiating Members) and to tender all
of its Units as set forth below. Not later than 10 days prior to the consummation of Drag-Along Sale, each of the Other Members shall deliver to a representative of the Initiating Members designated in the Drag-Along Sale Notice a limited
power-of-attorney authorizing the Initiating Members or such representative to Transfer such Units on the terms set forth in the Drag-Along Notice and wire transfer instructions for payment of the consideration to be received in such Drag-Along
Sale, or, if such delivery is not permitted by applicable law, an unconditional agreement to deliver such Units pursuant to this Section 8.06(e) at the closing for such Drag-Along Sale against delivery to such Other Member of the consideration
therefor. If an Other Member should fail to deliver any such instruments to the Initiating Members, the Company shall cause the books and records of the Company to show that such Units are bound by the provisions of this Section 8.06(e) and
that such Units shall be transferred to the Drag-Along Transferee concurrently with the consummation of the Drag-Along Sale and the delivery of the consideration therefor to such Other Member (or, if such Other Member refuses to accept delivery of
such consideration, deposit of such consideration with a third party escrow agent reasonably acceptable to the Company). 
 (f)
If the Drag-Along Sale shall not have been consummated during the period provided in Section 8.06(d), the Initiating Members shall return to each of the Other Members the limited power-of-attorney and all other applicable instruments
representing Units that such Other Members delivered for Transfer pursuant hereto, together with any other documents in the possession of the Initiating Members executed by the Other Members in connection with such proposed Drag-Along Sale, and all
the restrictions on Transfer contained in this Agreement or otherwise applicable at such time with respect to any Units shall again be in effect. 

(g) Concurrently with the consummation of the Drag-Along Sale pursuant to this Section 8.06, the Initiating Members shall give
written notice thereof to the Other Members, shall remit to each of the Other Members that have surrendered the applicable instruments, if any, the net consideration (payable by wire transfer in accordance with such Other Member’s wire transfer
instructions) for the Units Transferred pursuant hereto. 
 (h) Notwithstanding anything contained in this Section 8.06
there shall be no liability on the part of the Initiating Members to the Other Members (other than the obligation to return the limited power-of-attorney and other applicable instruments, if any, representing Units received by the Initiating
Members) if the Drag-Along Sale is not consummated for whatever reason, regardless of whether the Initiating Members have delivered a Drag-Along Sale Notice. Whether to effect a Drag-Along Sale pursuant to this Section 8.06 is in the sole and
absolute discretion of the Initiating Members. 
 (i) This Section 8.06 shall terminate upon the consummation of the
Initial Public Offering. 
  

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 Section 8.07. Additional Conditions to Tag-Along Sales and Drag-Along Sales.

 (a) Each Member shall be obligated to pay only its pro rata share (based on the aggregate consideration received by
such Member in respect of the Units Transferred by such Member) of expenses incurred in connection with a consummated Tag-Along Sale or Drag-Along Sale to the extent such expenses are incurred for the benefit of all Members and are not otherwise
paid by the Company or another Person. 
 (b) Each Member shall (i) make such representations, warranties and covenants and
enter into such definitive agreements as are reasonably required in the proposed Transfer and as are customary for transactions of the nature of the proposed Transfer, provided that if the Members are required to provide any representations
or indemnities in connection with such Transfer, liability for misrepresentation or indemnity shall (as to such Members) be expressly stated to be several but not joint and each Member shall not be liable for more than its pro rata share
(based on the aggregate consideration received by such Member in respect of the Units Transferred by such Member) of any liability for misrepresentation or indemnity and (ii) be required to bear their proportionate share of any escrows,
holdbacks or adjustments in purchase price. 
 ARTICLE 9 

CERTAIN COVENANTS 

Section 9.01. Information Rights. The Board of Managers shall furnish to each Investor: 

(a) As soon as practicable and, in any event no later than the first Wednesday following the end of each fiscal month (or no later than
30 days following the end of each fiscal month commencing at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008), the unaudited consolidated balance
sheet of the Company and its Subsidiaries as at the end of such fiscal month and the related unaudited statement of operations and cash flows for such fiscal month, and for the portion of the Fiscal Year then ended, in each case prepared in
accordance with GAAP, setting forth in comparative form the figures for the corresponding fiscal month and portion of the previous Fiscal Year, and the figures for the corresponding fiscal month and portion of the then current Fiscal Year as in the
Company’s annual operating budget. 
 (b) As soon as practicable and, in any event no later than the first Wednesday
following the end of each of the first three fiscal quarters (or no later than 30 days following the end of such fiscal quarter commencing at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less
than 20% and (ii) July 6, 2008), the unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter and the related unaudited statement of operations and cash flows for such quarter and for the
portion of the Fiscal Year then ended, in each case prepared in accordance with GAAP. 
 (c) As soon as practicable and, in any
event, no later than the first Wednesday following the end of each Fiscal Year, a preliminary draft unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such Fiscal Year and the related preliminary

  

 30 

 
draft unaudited statement of operations and cash flows for such Fiscal Year, and for the portion of the Fiscal Year then ended, in each case prepared in accordance with GAAP. This
Section 9.01(c) shall terminate at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008. 

(d) As soon as practicable and, in any event, within 45 days after the end of each Fiscal Year (or no later than 90 days following the
end of each Fiscal Year commencing at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008), (A) the audited consolidated balance sheet of the
Company and its Subsidiaries as at the end of such Fiscal Year and the related audited statement of operations and cash flows for such Fiscal Year and the related footnotes, in each case prepared in accordance with GAAP and audited by the
Company’s independent public accountants, (B) a comparison of the figures in the financial statements delivered pursuant to clause (A) with the figures for the previous Fiscal Year and the figures in the Company’s annual
operating budget, (C) any management letters or other correspondence from such accountants and (D) the Company’s annual operating budget for the coming Fiscal Year. 

(e) As soon as practicable and, in any event no later than the first Wednesday following the end of each fiscal month, the projected
consolidated balance sheet of the Company and its Subsidiaries for each fiscal month in the succeeding twelve month period and the related projected statement of operations and cash flows for each fiscal month in such succeeding twelve month period.
This Section 9.01(e) shall terminate at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008. 

(f) The financial statements and other information provided pursuant to Sections 9.01(a)-9.01(e) shall be in a format reasonably
acceptable to Limited. 
 (g) Such information as is provided to any lender or other financing source of the Company or any of
its Subsidiaries. 
 (h) As promptly as reasonably practicable, such other information with respect to the Company or any of its
Subsidiaries as may reasonably be requested by such Investor. 
 (i) Except as set forth above in this Section 9.01, this
Section 9.01 shall terminate following consummation of an Initial Public Offering at the later of (i) such time as the Percentage Interest of Limited and its Permitted Transferees is less than 20% and (ii) July 6, 2008.

 Section 9.02. Maintenance and Inspection of Records; Other Rights. The accounting books and records, minutes of
proceedings of the Board of Managers and of the Members and all other information pertaining to the Company and its Subsidiaries that is required to be made available to the Members under Delaware Law shall be kept at such place or places designated
by the Board of Managers or in the absence of such designation, at the principal place of business of the Company. All Investors will have, with respect to the Company and each Subsidiary of the Company: (i) the right to inspect properties,
(ii) the right to periodically consult 
  

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with representatives of management with respect to the business and affairs of the Company and its Subsidiaries, (iii) the right to consult with members of the Board of Managers and the
board of directors or other governing bodies of the Subsidiaries or any committees thereof with respect to all matters and (iv) the right to inspect the books and records of the Company or any of its Subsidiaries. 

Section 9.03. Confidentiality. 

(a) During the term of this Agreement and thereafter, each party hereto shall, and shall cause its Subsidiaries and controlled Affiliates
to, maintain in confidence and use only for purposes of the business of the Company and its Subsidiaries, this Agreement and the Related Documents, all Confidential Information. “Confidential Information” means all information
concerning the Company or its Subsidiaries or the financial condition, business, operations or prospects of the Company or its Subsidiaries in the possession of or furnished to any Member (including by virtue of its present or former right to
designate a Manager to the Board of Managers). Each party shall exercise the same care and safeguards with respect to Confidential Information as is used to maintain the confidentiality of its own information of like character, but will, at a
minimum, use reasonable care. 
 (b) Any party may disclose Confidential Information to its Subsidiaries, Affiliates, counsel,
advisers, consultants, outside contractors and other agents, on the condition that such Persons agree to keep the Confidential Information confidential to the same extent as such disclosing party is required to keep the Confidential Information
confidential, solely to the extent it is reasonably necessary or appropriate to fulfill its obligations or to exercise its rights under this Agreement or the Related Documents; provided that the disclosing party shall remain liable with
respect to any breach of this Section 9.03 by any such Subsidiaries, Affiliates, counsel, advisers, consultants, outside contractors and other agents. Without limiting the generality of the foregoing, it is understood and agreed that neither
Buyer nor Golden Gate Private Equity, Inc. will provide or disclose any Confidential Information to any portfolio company of Golden Gate Private Equity, Inc. 

(c) Notwithstanding Section 9.03(a) or Section 9.03(b) above, a party may disclose such Confidential Information (i) to
the extent that the such party is legally compelled (by oral questions, interrogatories, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any of the Confidential Information, (ii) for
purposes of reporting to its stockholders the performance of the Company and its Subsidiaries and for purposes of including applicable information in its financial statements, (iii) to the extent required to be disclosed by applicable law, rule
or regulation; provided that in connection with any such disclosure, (A) a disclosing party shall only disclose such Confidential Information as is required to be disclosed in connection with the foregoing, (B) to the extent
reasonably practicable, a disclosing party shall provide the other party with prompt and advance written notice of any such intended disclosure so that such other party has a reasonable opportunity to limit such disclosure, or (if applicable, and to
the extent reasonable practicable) seek a protective order or other appropriate remedy to prevent such disclosure and (C) a disclosing party shall use its reasonable efforts to seek confidential treatment (consistent with the terms hereof) by
the 
  

 32 

 
Person to whom such disclosure is made. The parties acknowledge that money damages would not be a sufficient remedy for any breach of the provisions of this Section 9.03 and that the
non-breaching party shall be entitled to equitable relief in a court of law in the event of, or to prevent, a breach or threatened breach of this Section 9.03. 

(d) The obligation not to disclose Confidential Information shall not apply to any part of such Confidential Information that (i) is
or becomes patented, published, or otherwise part of the public domain other than by acts of a party in contravention of this Agreement; (ii) is disclosed to a party by a third party, unless such Confidential Information was obtained by such
third party directly or indirectly from a party hereto on a confidential basis; (iii) prior to disclosure under this Agreement, was already in the possession of the disclosing party, unless such Confidential Information was obtained directly or
indirectly from the other party hereto on a confidential basis; or (iv) is independently acquired or developed by a disclosing party other than by acts of a party in contravention of this Agreement. 

Section 9.04. Corporate Opportunities; Non-Solicitation. 

(a) In no event shall any Member or any individual serving as a Manager be liable to the Company, any Subsidiary of the Company or to any
party hereto for breaches of fiduciary or other similar duties by virtue of the fact that such individual fails to bring a business opportunity to the attention of the Company or any Subsidiary of the Company or presents a business opportunity to a
Member or an Affiliate of a Member (rather than, or in addition to, presenting such opportunity to the Company). This Section 9.04(a) shall not apply to any Member who is an employee of the Company or any Subsidiary of the Company. 

(b) Without limiting the generality of the foregoing, the Members expressly acknowledge and agree that (i) each Member and its
Affiliates are permitted to have, and may presently or in the future have, investments or other business relationships, ventures, agreements or arrangements with, or ownership of, entities engaged in the same or a similar business to the business
conducted by the Company and its Subsidiaries, and in related businesses other than through the Company and its Subsidiaries (an “Other Business”), (ii) each Member or its Affiliates have or may develop a strategic relationship
with businesses that are or may be competitive with the Company and its Subsidiaries, (iii) no Member or its Affiliates (including any Managers designated by such Member) will be prohibited by virtue of their investment in the Company and its
Subsidiaries or their service on the Board of Managers from pursuing and engaging in any such activities, (iv) no Member or its Affiliates (including any Managers designated by such Member) will be obligated to inform the Company of any such
opportunity, relationship or investment, (v) the other Members will not acquire, be provided with an option or opportunity to acquire or be entitled to any interest or participation in any Other Business as a result of the participation therein
of a Member or its Affiliates (including any Managers designated by such Member), (vi) the Members expressly waive, to the fullest extent permitted by applicable law, any rights to assert any claim that such involvement breaches any duty owed
to any Member, or the Company or its Subsidiaries or to assert that such involvement constitutes a conflict of interest by such Persons with respect to the Company or its Subsidiaries and (vii) nothing contained herein shall limit, prohibit or
restrict any Member, any of its Affiliates or any 
  

 33 

 
current or former Manager designated by such Member from serving on the board of directors or other governing body or committee of any Other Business. This Section 9.04(b) shall not apply to
any Member who is an employee of the Company or any Subsidiary of the Company. 
 (c) Each Member agrees that it shall use its
reasonable best efforts to cause the Company not to, directly or through any controlled Affiliate (and Buyer shall cause Golden Gate Private Equity, Inc. and its managed investment funds not to), solicit or seek to employ (including in any
consulting capacity), any employee that is a store manager or senior to store manager or person performing equivalent functions of either Member, Limited Brands, any Subsidiary of Limited Brands or any controlled Affiliate of Buyer, and the Company
shall promptly notify the respective Member if any such person contacts the Company or any of its controlled Affiliates (and Buyer shall cause Golden Gate Private Equity, Inc. and its managed investment funds to promptly notify the respective Member
if any such person contacts them) with a view to obtaining any such employment; provided, that this Section 9.04(c) shall not prohibit general solicitation of employees through advertising and other similar means, if not directed at
employees of either Member or their controlled Affiliates. 
 (d) Each Member agrees that it shall not, directly or through any
controlled Affiliate (and (i) Buyer agrees that Golden Gate Private Equity, Inc. and its managed investment funds shall not and (ii) Limited agrees that Limited Brands and its Subsidiaries shall not), solicit or seek to employ (including
in any consulting capacity), any employee that is a store manager or senior to store manager or person performing equivalent functions of the Company or any of its Subsidiaries, and such Member or its controlled Affiliate shall promptly notify the
Company or its Subsidiaries if any such person contacts the Member or any of its controlled Affiliates (and (i) Buyer shall cause Golden Gate Private Equity, Inc. and its managed investment funds and (ii) Limited shall cause Limited Brands
and its Subsidiaries, in either case, to promptly notify the Company or its Subsidiaries if any such person contacts them) with a view to obtaining any such employment; provided that this Section 9.04(d) shall not prohibit general
solicitation of employees through advertising and other similar means, if not directed at employees of the Company or its Subsidiaries. 

(e) As used in this Section 9.04, “controlled” has the meaning set forth in the definition of the term
“Affiliate” in Section 1.01(a). 
 (f) Buyer’s obligations to cause Golden Gate Private Equity, Inc. and its
managed investment funds to take, or refrain from taking, any action specified in this Section 9.04 shall cease on the first date on which Buyer ceases to be controlled by Golden Gate Private Equity, Inc. and its managed investment funds.

 Section 9.05. Certain Matters Relating to an Initial Public Offering. 

(a) Upon a decision of the Board of Managers to effectuate an Initial Public Offering in accordance with the terms of this Agreement, and
subject to the provisions of Annex A, the Investors shall mutually agree on the manner in which the Company and its Subsidiaries will be reorganized or reconstituted in order to provide the most optimal structure for the Investors to

  

 34 

 
effectuate the Initial Public Offering (taking into account all relevant factors including tax considerations), including, for example, by way of conversion of the Company to corporate form,
merger of the Company with and into a corporation or effecting the Initial Public Offering at the level of a Subsidiary of the Company in connection with which the Company would be liquidated and dissolved. In any event, such structure shall afford
any Investor the right to hold directly the shares of the relevant publicly-traded entity (and not indirectly through any intermediate entity) if such Investor so desires. 

(b) Prior to the consummation of an Initial Public Offering, the Members shall, and shall cause the relevant publicly-traded entity to,
enter into agreements containing rights and obligations of the parties that are substantially similar to those contained in this Agreement, other than the rights and obligations of this Agreement that expressly terminate upon the consummation of the
Initial Public Offering. If any of such agreements are inconsistent with the rules of the principal exchange on which the shares of the publicly-traded entity are listed, the terms of such agreements shall be modified to the extent necessary to
reflect such rules; provided that such agreements shall, as closely as possible, give effect to the provisions of this Section 9.05(b). 

(c) So long as Limited’s Percentage Interest is at least 10%, Limited may designate one book-running underwriter in connection with
any public equity offering by the Company including an Initial Public Offering and a secondary equity offering in which Limited elects to participate, and one joint lead arranger, book-running manager, and syndication agent, or the equivalent
titles, in connection with any debt financing by the Company, in each case with no less favorable economics than any other book-running underwriter, joint lead arranger or joint book-running manager, or the equivalent titles, as the case may be.

 (d) If Buyer and its Permitted Transferees participate in an Initial Public Offering permitted by this Agreement, Limited and
its Permitted Transferees shall be permitted to participate in such Initial Public Offering on a pro rata basis with Buyer and its Permitted Transferees. Upon the consummation of the Initial Public Offering, the Class L Unitholders shall have
registration rights substantially as set forth in Annex B hereto. 
 Section 9.06. Certain Fees. The Company agrees
that so long as Limited or its Permitted Transferees own any Units, Limited and its Permitted Transferees shall be entitled to receive in the aggregate (as and when such corresponding payments are made pursuant to the Advisory Agreement) a cash
payment equal to the product of (i) the amount of the fees actually paid in cash by the Company and its Subsidiaries pursuant to Section 3 of the Advisory Agreement and (ii) the quotient (expressed as a decimal) of the number of Units
held by Limited and its Permitted Transferees at the time of the payment of such fees over the number of Units held by Buyer and its Permitted Transferees at the time of the payment of such fees. 

 

 35 

 ARTICLE 10 

TERM, DISSOLUTION AND LIQUIDATION 

Section 10.01. Term. The term of the Company shall continue until its termination pursuant to Section 10.02. 

Section 10.02. Liquidating Events. The Company shall dissolve and commence winding up prior to the expiration of the term
upon the first to occur of any of the following events (each a “Liquidating Event”): 
 (a) the unanimous vote
of the Investors to dissolve, wind up and liquidate the Company; or 
 (b) the entry of a decree of judicial dissolution
pursuant to Section 18-802 of Delaware Law. 
 Section 10.03. Winding Up. Upon the occurrence of a Liquidating
Event, the Company shall continue solely for the purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying or making reasonable provisions for the satisfaction of the claims of its creditors and Members, and no
Member or the Board of Managers (or any member thereof) shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the Company’s business and affairs; provided that all covenants contained
in this Agreement and obligations provided for in this Agreement shall continue to be fully binding upon the Members until such time as the property or the proceeds from the sale thereof has been distributed pursuant to this Article and the Company
has terminated. The Investors shall be responsible for overseeing the winding up and dissolution of the Company. The Investors shall take full account of the Company’s properties, assets and liabilities, and the Company’s affairs shall be
wound up in a prompt and orderly manner. 
 Section 10.04. Distribution Upon Dissolution of the Company. In
connection with a liquidation or dissolution of the Company, the Company’s property, or the proceeds from the sale thereof, shall be applied and distributed in accordance with Section 18-804 of Delaware Law in the following order:

 (a) first, to the satisfaction (whether by payment or by the making of reasonable provision for payment) of all of the
Company’s debts and liabilities to creditors (including creditors who are Members or Managers); and 
 (b) second, the
balance, if any, to the Members in accordance with their interests in distributions as specified in the distribution waterfall set forth in Section 4.01 hereof as in effect at such time. 

Section 10.05. Rights of Members; Resignation. (a) Except as otherwise provided in this Agreement, each Member shall
look solely to the property of the Company for the return of its Capital Contributions, and, except in respect of the Company’s Indebtedness or obligations to a Member, shall have no right or power to demand or receive property other than cash
from the Company. 
  

 36 

 (b) No Member shall resign from the Company prior to the dissolution and winding up of the
Company in accordance with this Agreement. 
 ARTICLE 11 

MISCELLANEOUS 

Section 11.01. Notices. All notices, requests and other communications to any party or to the Company shall be in writing
(including telecopy or similar writing) and shall be given, 
 if to the Company to: 

Express Parent LLC 

c/o Golden Gate Private Equity, Inc. 

One Embarcadero Center,
39th Floor 

San Francisco, California 94111 

Attention: Stefan Kaluzny 

Facsimile No.: 415-983-2701 

with a copy (which shall not constitute notice) to: 

Kirkland & Ellis LLP 

200 East Randolph Drive 

Chicago, Illinois 60601 

Attention: Gary M. Holihan, P.C. 

Facsimile No.: 312-861-2200 

if to Buyer to: 

Express Investment Corp. 

c/o Golden Gate Private Equity, Inc. 

One Embarcadero Center,
39th Floor 

San Francisco, California 94111 

Attention: Stefan Kaluzny 

Facsimile No.: 415-983-2701 

with a copy (which shall not constitute notice) to: 

Kirkland & Ellis LLP 

200 East Randolph Drive 

Chicago, Illinois 60601 

Attention: Gary M. Holihan, P.C. 

Facsimile No.: 312-861-2200 
  

 37 

 if to Limited, to: 

Limited Brands, Inc. 

Three Limited Parkway 

Columbus, Ohio 43230 

Attention: Douglas L. Williams 

Facsimile No.: 614-415-7188 

with a copy (which shall not constitute notice) to: 

Davis Polk & Wardwell 

450 Lexington Avenue 

New York, New York 10017 

Attention: David L. Caplan 

Facsimile No.: 212-450-3800 

if to any other Member, to: 

The address specified in the Company’s records 

or to such other address or telecopier number as such party or the Company may hereafter specify for the purpose by notice to the other parties and the
Company. Each such notice, request or other communication shall be effective when delivered at the address specified in this Section during regular business hours. 

Section 11.02. Representations and Warranties.  

(a) Each Member hereby acknowledges that the Units have not been issued by the Company pursuant to a registration statement under the
Securities Act. Neither the Company, nor any other Person has any obligation or intention to effect the registration of the Units for sale, transfer or disposition by the Members under the Securities Act or applicable law, or to take any action that
would make available any exemption from the registration requirements of the Securities Act or applicable law. Members must therefore hold such Units indefinitely unless a subsequent registration or exemption therefrom is available and is obtained.
No federal or state agency has reviewed the issuance of the Units pursuant hereto or approved or disapproved the Units to be issued pursuant hereto for investment or any other purpose. 

(b) Each Member acknowledges that (i) it is acquiring the Units for its own account, as principal and not on behalf of any other
party or parties and for investment and not with a view to the resale or distribution of all or any part of such Units and (ii) it has been afforded the opportunity to ask questions of, and to obtain any information from, the Company and the
Board of Managers as it deems necessary to determine the suitability and advisability of the purchase of the Units pursuant hereto and the merits and risk of entering into this Agreement. 

 

 38 

 Section 11.03. Amendments; No Waivers. (a) Any provision of this Agreement
may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by Members holding an aggregate Percentage Interest of at least 80%, or in the case of a waiver, by the Member against whom the
waiver is to be effective; provided that any amendment that adversely and disproportionately affects any Member shall require the approval of such Member; provided, further, that until July 6, 2008, for so long as Limited or any
of its Permitted Transferees is a Member, any amendment shall require Limited’s approval. 
 (b) No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. No
waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 

Section 11.04. Expenses. (a) Except as provided in Section 14.03 of the Unit Purchase Agreement, all costs and
expenses incurred by the parties in connection with this Agreement shall be paid by the party incurring such costs or expenses. 

Section 11.05. Public Announcements. No party to this Agreement shall issue any news release or make any public announcement,
written or oral, relating to this Agreement or any Related Document or the existence of any arrangement between the parties, without the prior written consent of the party whether named in such news release or other public announcement or not,
except where such news release or other public announcement is compelled by judicial or administrative process or by other requirements of law or by the rules of any securities exchange or national securities quotative system pursuant to a listing
agreement therewith; provided that in such event, the party issuing same shall still be required to consult with the other party, whether named in such news release or public announcement or not, a reasonable time prior to its release to
allow the other party to comment thereon and, after its release, shall provide the other party with a copy thereof. 

Section 11.06. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the
Members and their respective successors and permitted assigns. Notwithstanding the foregoing, neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable other than in connection
with a Transfer permitted pursuant to Article 8. This Agreement is for the sole benefit of the Members and, except as otherwise contemplated herein, nothing herein expressed or implied shall give or be construed to give any Person, other than the
Members, any legal or equitable rights hereunder. 
 Section 11.07. Headings. Headings are for ease of reference
only and shall not form a part of this Agreement. 
  

 39 

 Section 11.08. Governing Law. This Agreement shall be construed in accordance
with and governed by the law of the State of Delaware without giving effect to the principles of conflicts of laws thereof. 

Section 11.09. Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter
arising out of or in connection with, this Agreement may be brought against any of the parties in any federal court located in the State of Delaware or any Delaware state court, and each of the parties hereby consents to the exclusive jurisdiction
of such court (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any such court. Without limiting the foregoing, the parties agree that service of process upon such party at the address referred to in Section 11.01, together with written notice of such service to such
party, shall be deemed effective service of process upon such party. 
 Section 11.10. WAIVER OF JURY TRIAL. EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 11.11. Entire Agreement. This Agreement (including the Annexes constituting a part of this Agreement) and any other
writing signed by authorized representatives of each of the parties after the date hereof that specifically references this Agreement, constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all
prior agreements, understandings and negotiations, both written and oral between the parties with respect to the subject matter hereof. Except as expressly provided herein, this Agreement is not intended to confer upon any Person other than the
parties hereto any rights or remedies hereunder. 
 Section 11.12. Counterparts; Effectiveness. This Agreement may
be signed in any number of counterparts, each of which shall be deemed an original. This Agreement shall become effective when each party shall have received a counterpart hereof signed by each of the other parties. An executed copy or counterpart
hereof delivered by facsimile shall be deemed an original instrument. 
 Section 11.13. Severability. If any
provision of this Agreement or the application thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances shall not
be affected thereby and shall be enforced to the greatest extent permitted by law. 
 Section 11.14. Further
Assurances. The Members shall execute and deliver such further instruments and do such further acts and things as may be required to carry out the intent and purpose of this Agreement. 

 

 40 

 Section 11.15. Specific Performance. The parties hereto agree that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the
performance of the terms and provisions hereof in any federal or state court located in the State of Delaware, in addition to any other remedy to which they are entitled at law or in equity. 

 

 41 

 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement or have caused this
Agreement to be duly executed by their respective authorized officers, in each case as of the day and year first above written. 
  

			
	Members:
	
	EXPRESS INVESTMENT CORP.
		
	By:	 	 /s/ Joshua Olshansky

	Name:	 	Joshua Olshansky
	Title:	 	Treasurer
	
	LIMITED BRANDS STORE OPERATIONS, INC.
		
	By:	 	 /s/ Timothy J. Faber

	Name:	 	
	Title:	 	
	
	EXP INVESTMENTS, INC.
		
	By:	 	 /s/ Timothy J. Faber

	Name:	 	
	Title:	 	
	
	EXPRESS MANAGEMENT INVESTORS BLOCKER, INC.
		
	By:	 	 /s/ Matthew Moellering

	Name:	 	Matthew Moellering
	Title:	 	Treasurer

			
	WEISS FAMILY 2008 IRREVOCABLE TRUST ALPHA UNDER AGREEMENT WITH MICHAEL A. WEISS, AS GRANTOR, DATED MARCH 13, 2008
		
	By:	 	 /s/ Robert M. Clark

	Its:	 	Senior Trust Officer
	
	WEISS FAMILY 2008 IRREVOCABLE TRUST BETA UNDER AGREEMENT WITH MICHAEL A. WEISS, AS GRANTOR, DATED MARCH 13, 2008
		
	By:	 	 /s/ Robert M. Clark

	Its:	 	Senior Trust Officer
	
	WEISS DESCENDANTS 2008 IRREVOCABLE TRUST UNDER AGREEMENT WITH MICHAEL A. WEISS, AS GRANTOR, DATED MARCH 13, 2008
		
	By:	 	 /s/ Robert M. Clark

	Its:	 	Senior Trust Officer
	
	 /s/ Michael A. Weiss

	MICHAEL A. WEISS
	
	 /s/ Arlene Weiss

	ARLENE WEISS

  

			
	Solely for Purposes of Section 5.01(a)(ii) and Section 5.01(b) hereof:
	
	Golden Gate Capital Investment Fund II, L.P.
	
	Golden Gate Capital Investment Fund II-A, L.P.
	
	Golden Gate Capital Investment Annex Fund II, L.P.
	
	By: Golden Gate Capital Management II, L.L.C.
	Their: General Partner
		
	By:	 	 /s/ David Dominik

	Name:	 	David Dominik
	Title:	 	Managing Director

 Schedule I – Capital Contributions (as of June 26, 2008) 

 

													
	 Member
	  	Amount and Type of Units	 	 	Original Capital
Contribution	  	Distributions Made
April 29, 2008	  	Remaining Capital
Contribution
	 Limited Brands Store Operations, Inc.
	  	24,000,000 Class L Units	  	 	$	155,160,000.00	  	$	26,774,510.32	  	$	128,385,489.68
					
	 EXP Investments, Inc.
	  	1,000,000 Class L Units	  	 	$	6,465,000.00	  	$	1,115,604.60	  	$	5,349,395.40
					
	 Express Investment Corp.
	  	75,000,000 Class L Units	  	 	$	484,875,000.00	  	$	83,670,344.74	  	$	401,204,655.26
					
	 Express Management Investors Blocker, Inc.
	  	742,460 Class L
Units	1  
	 	$	4,800,000.00	  	$	828,291.12	  	$	3,971,708.88
	  	3,540,001 Class A Units	  	 	$	35,400.00	  	$	0.00	  	$	35,400.00
	  	3,540,000 Class C Units	  	 	$	8,850.00	  	$	0.00	  	$	8,850.00
					
	 Michael A. Weiss
	  	666,662 Class L
Units	1 
	 	$	4,309,969.83	  	$	743,731.19	  	$	3,566,238.64
	  	2,666,662 Class A 
Units	1 
	 	$	26,666.62	  	$	0.00	  	$	26,666.62
					
	Weiss Family 2008 Irrevocable Trust Alpha under Agreement with Michael A. Weiss, as Grantor, dated March 13, 2008	  			 			  			  		
	  	95,238 Class L Units	  	 	$	615,713.67	  	$	106,247.95	  	$	509,465.72
	  	380,952 Class A Units	  	 	$	3,809.52	  	$	0.00	  	$	3,809.52
					
	Weiss Family 2008 Irrevocable Trust Beta under Agreement with Michael A. Weiss, as Grantor, dated March 13, 2008	  			 			  			  		
	  	95,238 Class L Units	  	 	$	615,713.67	  	$	106,247.95	  	$	509,465.72
	  	380,952 Class A Units	  	 	$	3,809.52	  	$	0.00	  	$	3,809.52
					
	Weiss Descendants 2008 Irrevocable Trust under Agreement with Michael A. Weiss, as Grantor, dated March 13, 2008	  	142,857 Class L Units	  	 	$	923,570.50	  	$	159,371.93	  	$	764,198.57
	  	571,429 Class A Units	  	 	$	5,714.29	  	$	0.00	  	$	5,714.29
					
	 Arlene Weiss
	  	5 Class L Units
	 
	 	$	32.33	  	$	5.58	  	$	26.75
	  	5 Class A Units	  	 	$	0.05	  	$	0.00	  	$	0.05

  

	1
	 Such Units are pledged by the Member to the Company to secure a Promissory Note made by the Member in favor of the Company.

 Annex A 

Annex A – Certain Approval Rights 

Neither the Company nor any of its Subsidiaries may take any of the actions set forth below without the approval of the Board of
Managers. Notwithstanding anything to the contrary in this Agreement, until the first to occur of (i) a Qualified Initial Public Offering consummated in accordance herewith and (ii) the later of (A) the first date on which the
Percentage Interest of Limited and its Permitted Transferees is less than 20% and (B) July 6, 2008, neither the Company nor any of its Subsidiaries may take any of the actions that are set forth below and noted with an asterisk
(*) without the prior written approval of Limited in its capacity as a Member of the Company: 
 (i)(A) the
appointment, authorization, or removal of and (B) any delegation of the Board of Managers’ authority to, any executive officer of the Company or any Subsidiary of the Company; 

(ii) any increase or decrease in the size of the Board of Managers, or any change in the right to designate Managers
provided for in Section 5.01; (*) 
 (iii) the designation of any subcommittee of the Board of Managers
(including the members and authority of such subcommittee); (*) 
 (iv) the approval or amendment, as applicable,
of any operating budget, and any expenditure which (together with other expenditures) would result in a deviation of more than (x) 10% in excess of any line item of the then-current operating budget or (y) 10% in excess of the aggregate
expenditures set forth in the then-current operating budget; 
 (v) the adoption or amendment of the Certificate
of Formation or the adoption or amendment of the articles of association, by-laws or other organizational documents of any Company Subsidiary, or the sale or Transfer of less than all of the equity interests of any Company Subsidiary (directly or
indirectly) by the Company; (*) 
 (vi) compensation and other benefits of any executive officer of the
Company or any Subsidiary of the Company and the adoption or modification of any material benefit plans for employees of the Company or any Subsidiary of the Company; 

(vii) the approval of annual financial statements of the Company or any Subsidiary of the Company and the approval of
filing of any material return or other document relating to income tax of the Company or any Subsidiary of the Company with any Person; 

(viii) entering into or amending any material contract of the Company or any of its Subsidiaries; 

 

 A-1 

 (ix) the initiation, failure to defend or appear, or settlement by the
Company or any of its Subsidiaries of litigation, arbitration or other similar judicial or regulatory proceedings, except for litigation, arbitration or other similar proceedings relating to amounts of less than $500,000; 

(x) any incurrence, creation or assumption of (or amendment of any instrument representing)
Indebtedness by the Company or any Subsidiary of the Company if, after giving effect to such incurrence, creation or assumption (and after giving effect to the repayment of any other Indebtedness with the proceeds of such incurrence, creation or
assumption) the pro forma Consolidated Indebtedness Coverage Ratio would exceed 4.0 to 1.0 (provided that the Company and its Subsidiaries may, without regard to the foregoing limitation, incur, create or assume Indebtedness which is otherwise
permitted to be incurred, created or assumed pursuant to the Senior Credit Agreement or the Covenant Agreement)1
; ((*) – only prior to the Covenant Agreement Termination Time) 

(xi) the making of any loans or advances to, guarantees for the benefit of, or investments by the Company or any of its
Subsidiaries in, any Person (other than (1) to a wholly owned Subsidiary of the Company, (2) as otherwise permitted or required pursuant to the Related Documents or (3) loans or advances to officers and employees of the Company and
its Subsidiaries made in the ordinary course of business), other than trade credit in the ordinary course of business; 

(xii) any incurrence or refinancing of a Lien on any material assets or property of the Company or any Subsidiary of the
Company by the Company or any Subsidiary of the Company, other than in the ordinary course of business or in connection with any incurrence of Indebtedness approved in accordance herewith; 

(xiii) any adoption or modification of any material financial accounting methods, practices, procedures or policies
(including material write-offs) or any material tax policies or elections (it being agreed that Limited shall be provided with notice as promptly as practicable prior to any such adoption or modification); 

(xiv) any change to the Fiscal Year of the Company (for federal income tax purposes, financial reporting purposes or
otherwise); (*) 
  

	1
	 The parties acknowledge and agree that, notwithstanding anything in this Agreement to the contrary, the Company and its Subsidiaries shall be permitted
to incur Indebtedness (i) described in Section 2.01(b) of the Purchase Agreement, (ii) described in the Senior Credit Agreement, including, in each case, refinancings thereof; provided that (A) any such refinancing Indebtedness
is in an aggregate principal amount not greater than the aggregate principal amount of the Indebtedness being renewed or refinanced, plus the amount of any premiums required to be paid thereon, accrued or capitalized interest and reasonable fees and
expenses associated therewith and (B) such refinancing Indebtedness has a later or equal final maturity and longer or equal weighted average life than the Indebtedness being renewed or refinanced and (iii) to the extent such Indebtedness
is permitted to be incurred pursuant to the Covenant Agreement. 

  

 A-2 

 (xv) selection or removal of principal auditors; ((*)—except if the
principal auditor selected following any such removal is any of PriceWaterhouseCoopers LLP, Deloitte & Touche LLP, Ernst & Young LLP or KPMG LLP or their successors); 

(xvi) selection or removal of banks, financial advisors, investment banks, consulting firms and legal counsel; 

(xvii) distributions by the Company to the Members, or any repurchase by the Company or any of its Subsidiaries of any
Units or other Company Securities; ((*) – except with respect to (i) tax distributions required pursuant to Section 4.02(a), (ii) repurchases of Units from former directors, officers and employees on the termination of service or
employment and (iii) on or after the Covenant Agreement Termination Time, any such distribution or repurchase made according to the Members’ respective interests in distributions as set forth in Section 4.01); 

(xviii) any issuance or authorization of Units or other securities of the Company or any of its Subsidiaries, or any
interests convertible into or exchangeable for interests of the Company or any of its Subsidiaries; ((*) — except for any issuance or authorization (i) to the then existing Members made in accordance with the requirements of
Section 3.04 of this Agreement and (ii) pursuant to either of the exceptions set forth in Section 3.04(e) of this Agreement which otherwise complies with the restrictions set forth in this Annex A); 

(xix) any decision to effect an Initial Public Offering; ((*) with respect to (x) any decision to effect an Initial
Public Offering made prior to the July 6, 2009 and (y) any decision to effect an Initial Public Offering that is not a Qualified Initial Public Offering at any time on or after July 6, 2009); 

(xx) except for any transaction described in clause (xxi) below, any merger, consolidation, recapitalization,
reorganization, reclassification or similar transaction affecting the Company or any Subsidiary of the Company or any participation outside the ordinary course of business in joint ventures, partnerships or similar arrangements between the Company
or any Subsidiary of the Company and any third party; ((*) only prior to the Covenant Agreement Termination Time and subject, in each case after such time, to the requirement that (A) all holders of Vested Units participating in any such
transaction shall be entitled to receive the same form of consideration and the same portion of the aggregate consideration to be received by the holders of Vested Units participating in any such transaction that such holders would have received if
the aggregate consideration paid in connection therewith had been paid directly to the Company and then distributed by the Company pursuant to Section 10.04 of this Agreement and (B) except as set forth in the immediately preceding clause
(A), all holders of Units shall be treated equally in such transaction (including with respect to receiving registration rights with respect to any securities received as consideration in any such transaction)); 

 

 A-3 

 (xxi) except for any transaction effected in accordance with the
requirements of Section 8.06, any sale or Transfer of all or substantially all of the assets or equity interests of the Company or any Subsidiary of the Company (whether effected by merger, consolidation, recapitalization, reorganization,
reclassification or similar transaction); ((*) only prior to the later to occur of (i) the Covenant Agreement Termination Time and (ii) July 6, 2009, and subject in each case after such time to the requirement that (A) all
holders of Vested Units participating in any such transaction shall be entitled to receive the same form of consideration and the same portion of the aggregate consideration to be received by the holders of Vested Units participating in any such
transaction that such holders would have received if the aggregate consideration paid in connection therewith had been paid directly to the Company and then distributed by the Company pursuant to Section 10.04 of this Agreement and
(B) except as set forth in the immediately preceding clause (A), all holders of Units shall be treated equally in such transaction (including with respect to receiving registration rights with respect to any securities received as consideration
in any such transaction)) 
 (xxii) any acquisition (in a single transaction or a series of related transactions)
of assets or properties by the Company or any Subsidiary of the Company, if the value of the assets or properties proposed to be acquired exceeds $25,000,000 in the aggregate; ((*) only prior to the Covenant Agreement Termination Time) 

(xxiii) any capital or research and development expenditures by the Company or any Subsidiary of the Company, if the
amount of the expenditures proposed to be made exceed the budgeted amounts therefor specified in clause (iv) above; 

(xxiv) any material sales, transfers, leases, pledges or other dispositions of any property or assets by the Company or
any Subsidiary of the Company other than any such transaction made in the ordinary course of business; 
 (xxv)
the filing of any petition by or on behalf of the Company or any of its Subsidiaries seeking relief under any bankruptcy, insolvency or other similar law, or the dissolution, liquidation, winding up or reorganization of the Company or any Subsidiary
of the Company; (*) 
 (xxvi) any transaction by the Company or any of its Subsidiaries with any Member or an
Affiliate of a Member (other than the Related Documents and the consummation of the transactions contemplated by such agreements and other than compensation and benefits of any executive officer, which shall be subject to clause (vi) above),
other than on terms not less favorable to the Company or such Subsidiary as would be obtainable by the Company or such Subsidiary at the time in a comparable arm’s length transaction with an unaffiliated third party (it also being agreed that
(A) Limited shall be provided prior notice of any transaction by the Company or any of its Subsidiaries with any Member or an Affiliate of a Member (other than the Related Documents and the consummation of the transaction contemplated by such
agreements and other than compensation and benefits of any executive officer, which shall be subject 
  

 A-4 

 
to clause (vi) above) involving aggregate payments in any single transaction or series of related transactions in excess of $1 million and (B) if Limited disputes that any such notified
transaction does not meet the requirements set forth in this clause (xxvi), Limited may obtain competitive quotes for alternative products and services of similar size, scope and quality which the Company shall duly consider in determining whether
such alternative products and services provide terms more favorable than those proposed to be entered into by the Company with such Member or an Affiliate of a
Member)2; (*)

(xxvii) any entry into any line of business by the Company of any Subsidiary of the Company or any material modification
of the line of business of the Company or any Subsidiary of the Company, other than the apparel business, related businesses or any logical extensions of either of the foregoing; (*) 

(xxviii) any other material matters not within the ordinary course of the Company’s business; and 

(xxix) the entry into any contract, agreement or understanding to do any of the foregoing. ((*) - as it relates to the
foregoing asterisked items only). 
 The provisions of this Annex A are intended to be cumulative to one another (i.e., if a
matter implicates more than one clause of this Annex A, the requirements of each implicated clause must be satisfied). 
  

	2
	 The parties acknowledge and agree that, notwithstanding anything in this Agreement to the contrary, the Company and its Subsidiaries shall be permitted
to enter into and perform the transactions contemplated by the Advisory Agreement attached hereto as Annex C; provided that any amendment, modification, supplement, replacement or similar alteration to the Advisory Agreement, or any entry
into any similar arrangement or agreement requiring the payment of advisory, transactional or similar fees to Golden Gate Private Equity, Inc. or its Affiliates, shall require Limited’s consent in its capacity as a Member of the Company for so
long as Limited is otherwise entitled to such consent rights pursuant to this clause (xxvi), except for any amendment or modification to Section 3 of the Advisory Agreement that does not alter or modify in any respect the rights of Limited and
its Permitted Transferees pursuant to Section 9.06 of this Agreement. 

  

 A-5 

 Annex B 

Annex B 

Registration Rights 

Section 1.1. Definitions. (a) Capitalized terms used but not defined herein shall have the meanings assigned to them in
the Agreement. For purposes of this Annex B, the following terms have the following meanings: 
 “Commission”
means the United States Securities and Exchange Commission and any successor federal agency administering the Securities Act. 

“Common Stock” means, collectively, any series or class of common stock of the Company that may be issued by the Company
from time to time that have the right to vote in the general election of directors. 
 “Company” means such
entity as is determined by the Members in accordance with Section 9.05 of the Agreement to serve as the publicly-traded entity upon an Initial Public Offering. 

“Exchange Act” means the Securities Exchange Act of 1934 and all rules, regulations and orders issued thereunder, as any
of the same may be amended. 
 “Members” means the Persons who are Members (as defined in the Agreement), in
their capacity as shareholders of the Company. 
 “Registrable Securities” means (i) all shares of Common
Stock owned of record by a Member and (ii) all shares of Common Stock that may be issued to such Member in respect of shares of Common Stock or other equity securities of the Company pursuant to any conversion, exchange, stock dividend, split
or combination, recapitalization, merger, consolidation, other reorganization or otherwise. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i), the offer and sale of such securities shall
have been registered under the Securities Act, the registration statement with respect to such offer or sale of such securities shall have become effective under the Securities Act and such securities shall have been disposed of pursuant to such
effective registration statement, (ii) such securities shall have been sold pursuant to Rule 144, (iii) such securities shall have been otherwise transferred, if new certificates or other evidences of ownership for them not bearing a
legend restricting further transfer and not subject to any stop transfer order or other restrictions on transfer shall have been delivered by the Company and subsequent disposition of such securities shall not require registration or qualification
of such securities under the Securities Act or any state securities laws then in force or (iv) such securities shall cease to be outstanding. 

“Registration” means a registration of a bona fide public offering and sale of shares of Common Stock or other
equity securities of the Company pursuant to an effective registration statement under the Securities Act (other than pursuant to a registration statement on Form S-4 or Form S-8 or any successor or similar form) and in compliance with all
applicable state securities laws, and “Register” means to effect such a registration. 
 “Registration
Expenses” means all expenses of the Company incident to the Company’s performance of or compliance with the provisions of this Annex B, including all Commission 

 

 B-1 

 
and stock exchange or automated interdealer quotation system registration, filing and listing fees and expenses, fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel for the underwriters in connection with blue sky qualifications of the Registrable Securities), rating agency fees, all fees and expenses of the transfer agent and registrar for the securities, printing
expenses, messenger and delivery expenses, the fees and reasonable expenses incurred in connection with the listing of the securities to be registered on each securities exchange or automated interdealer quotation system on which Registrable
Securities are to be listed or on which similar securities issued by the Company are to be listed in connection with such transaction, reasonable fees and disbursements of counsel for the Company and all independent certified public accountants for
the Company (including the expenses of any annual audit, special audit and “cold comfort” letters required in connection therewith or incident thereto), the reasonable fees and disbursements of underwriters customarily paid by issuers or
sellers of securities (but not including any underwriting discounts or commissions or transfer taxes, if any, attributable to the sale of Registrable Securities by the holders of such Registrable Securities, or any fees or expenses of counsel), all
fees and expenses of any qualified independent underwriter or any person acting in a similar capacity under the rules of the National Association of Securities Dealers, the reasonable fees and disbursements of one counsel retained in connection with
each such Registration by the Members, such counsel to be selected by the Members who hold two-thirds of the Registrable Securities being Registered, the reasonable fees and expenses of any special experts retained by the Company in connection with
such Registration, fees and expenses of other Persons retained by the Company, and expenses relating to any analyst or investor presentation or any “road shows” undertaken by the Company in connection with the registration, marketing or
selling of the Registrable Securities. 
 “Representative” means, with respect to a particular Person, any
director, officer, general partner, limited partner, co-owner, member, nominee, managing director, financial advisor, accountant, legal counsel, consultant, agent or controlling Person of such Person. 

(b) Each of the following terms is defined in the Section set forth opposite such term: 

 

					
	 Term
	  	 Section
	  	 
	Demand Securities	  	1.2(a)	  	
	Requesting Member	  	1.2(a)	  	
	Shelf Registration	  	1.2(g)	  	

 Section 1.2. Demand Registration Rights. (a) Following the earlier of (x) 180
days after the effective date of the registration statement for the Initial Public-Offering and (y) the expiration of the period during which the managing underwriters for the Initial Public Offering shall prohibit the Company from effecting
any other public sale or distribution of Registrable Securities, upon written notice to the Company from Limited or Buyer (together with its permitted assigns, the “Requesting Member”) (which notice shall specify the number and the
intended method of disposition of Registrable Securities), the Company shall (i) promptly give written notice of such requested Registration to each of the Members then owning Registrable Securities and (ii) use its reasonable best efforts
to effect and maintain the Registration on an appropriate form under the Securities Act of offers and sales of (x) Registrable Securities by the 

 

 B-2 

 
Requesting Member and Registrable Securities by each other Member which shall have made a written request to the Company for Registration thereof (which request shall specify the number of
Registrable Securities) within ten Business Days after the giving of such written notice by the Company (collectively, the “Demand Securities”) and (y) any securities which the Company may elect to Register in connection with
the offering of Demand Securities and such other securities the Company may be obligated to include due to other piggyback registration rights, if any, granted to third parties, in each case in accordance with the intended method or methods of
disposition specified by the Requesting Member, subject to the other provisions of this Annex B; provided that the Company shall not be obligated to effect any Registration pursuant to this Section 1.2 except in accordance with the
following provisions: 
 (i) no Requesting Member shall be entitled to make more than three (3) requests for
Registration pursuant to this Section 1.2, other than Registrations requested to be effected pursuant to a registration statement on Form S-3 under the Securities Act (or any successor thereto), for which an unlimited number of requests
pursuant to this Section 1.2 shall be permitted; provided that at the time of such request the Company is eligible for use of Form S-3 under the Securities Act (or any successor thereto); 

(ii) no Requesting Member shall be entitled to request any Registration pursuant to this Section 1.2 until at least
six (6) months after the closing of the last Registration and sale of Company securities subject to this Section 1.2 or Section 1.3; 

(iii) the Company shall not be required to effect any Registration pursuant to this Section 1.2 unless the
anticipated gross proceeds of the Registrable Securities sought to be registered by the Requesting Member exceed $[•]; and 

(iv) if, after a request for Registration pursuant to this Section 1.2 has been made, the Board of Managers (or the
board of directors of the Company or other equivalent governing body) has determined, in good faith, that the filing of a registration statement to effect such a Registration pursuant to this Section 1.2 would require the disclosure of material
information which the Company has a reasonable justification for keeping confidential on the grounds that such disclosure would materially interfere with a proposed or pending bona fide material financing, acquisition or other material transaction
of the Company, the Company shall not be obligated to effect such a Registration pursuant to this Section 1.2 until the earlier of the expiration of 90 days after the Company first makes such good faith determination or the completion of such
transaction, negotiations or bidding; provided that the Company shall not be permitted to exercise its rights under this Section 1.12(a)(iv) more than twice (not to exceed 90 days in the aggregate) during any twelve-month period.

 (b) Subject to Section 1.2(a), the Requesting Member may, in the notice delivered pursuant to
Section 1.2(a), elect that the requested Registration be pursuant to an underwritten offering. Upon such election by the Requesting Member (or, in the event 

 

 B-3 

 
the Requesting Member does not so elect, if the Company elects an underwritten offering), a majority of the Board of Managers (or, the board of directors of the Company or other equivalent
governing body) shall have the right to designate the managing underwriter(s) and, in such case, the Company shall not be required to include the Registrable Securities of a Member in the underwritten offering unless such Member accepts the
reasonable and customary terms of the underwritten offering as agreed upon between the Company and the managing underwriter(s) so designated. 

(c) If a Registration pursuant to this Section 1.2 involves an underwritten offering, and the managing underwriter
shall advise the Company in writing (with a copy to each holder of Demand Securities) that, in its opinion, the number of securities requested to be included in such Registration (including securities of the Company which are not Registrable
Securities) should be limited due to market or other conditions, the Company will include in such Registration, to the extent of the number which the Company is so advised in writing can be sold in such offering, (i) first, Demand Securities,
pro rata among the holders thereof requesting such Registration on the basis of the number of such securities requested to be included by such holders and (ii) second, any securities which the Company has elected to Register pursuant to
Section 1.2(a) in connection with the offering of Demand Securities and (iii) third, such other securities the Company may be obligated to include due to other piggyback registration rights granted to third parties. 

(d) The Requesting Member(s) requesting a Registration under this Section 1.2 may, at any time prior to the effective
date of the registration statement relating to such Registration, revoke such request by providing written notice thereof to the Company, with the following consequences: 

(i) if such request is withdrawn prior to the filing date of the applicable registration statement, such withdrawn
registration shall count as a requested Registration for purposes of Section 1.2(a)(i) unless the Requesting Member has promptly reimbursed the Company for all Registration Expenses incurred by the Company in connection with the preparation of
such registration statement for filing; or 
 (ii) if such request is withdrawn after the filing date of the
applicable registration statement but prior to its effective date, such withdrawn registration shall count as a requested Registration for purposes of Section 1.2(a)(i) unless the Requesting Member has promptly reimbursed the Company for all
Registration Expenses incurred by the Company in connection with such withdrawn registration. 
 (e) Except as
provided in Section 1.2(d), any Registration requested by any Requesting Member pursuant to Section 1.2(a) shall not be deemed to have been effected (and, therefore, not requested for purposes of Section 1.2(a)): 

(i) unless such Registration has become effective and has remained effective for the period set forth in
Section 1.12(a)(i) (subject to Section 1.1.2(b)); 
  

 B-4 

 
provided that a Registration which does not become effective after the Company has filed a registration statement with respect thereto solely by reason of the refusal to proceed by the
Requesting Member (other than a refusal to proceed based upon the advice of counsel relating to a matter with respect to the Company) shall be deemed to have been effected by the Company at the request of such Requesting Member; 

(ii) if after such Registration has become effective such Registration is interfered with by any stop order, injunction or
other order or requirement of the Commission or other governmental entity for any reason other than a misrepresentation or an omission by the Requesting Member and, as a result thereof, the Registrable Securities requested by the Requesting Member
to be registered cannot be completely distributed in accordance with the plan of distribution set forth in the related registration statement; 

(iii) if the closing pursuant to the purchase agreement or underwriting agreement entered into in connection with such
Registration does not occur; or 
 (iv) if, as a result of a determination made pursuant to Section 1.2(c)
by a managing underwriter, the Requesting Member shall not be entitled to include in such Registration at least 65% of the Registrable Securities that such Requesting Member requested pursuant to Section 1.2(a) to be included in such
registration. 
 (f) Any Registration effected pursuant to Section 1.3 shall not be deemed to have been
requested by a Requesting Member pursuant to this Section 1.2. 
 (g) At any time following the date when
the Company becomes eligible to use Form S-3 under the Securities Act for secondary sales, upon written request of Limited or Buyer, the Company shall use its reasonable best efforts to file a “shelf” registration statement (the
“Shelf Registration”) with respect to all or any portion of such Member’s Registrable Securities, if requested by such Member, on an appropriate form pursuant to Rule 415 (or any similar provision that may be adopted by the
Commission) under the Securities Act and to cause such Shelf Registration to become effective and to keep such Shelf Registration in effect until such Member shall no longer hold any Registrable Securities. 

Section 1.3. Piggyback Registration Rights. (a) If, at any time following the completion of an Initial Public Offering,
the Company proposes to effect a Registration, whether or not for sale for its own account, in a manner which would permit Registration of Registrable Securities for sale to the public under the Securities Act (other than a Registration pursuant to
Section 1.2), it shall give prompt written notice to the Members holding Registrable Securities of its intention to do so and of such Members’ rights under this Section 1.3, at least ten Business Days prior to the anticipated filing
date of the registration statement relating to such Registration. Such notice shall offer all such Members holding Registrable Securities the opportunity to include in such Registration such number of Registrable Securities as each such Member may
request. Upon the written request of any such Member made within five Business Days after the 
  

 B-5 

 
receipt of the Company’s notice (which request shall specify the number of Registrable Securities intended to be disposed of by such Member), the Company shall use its reasonable best
efforts to include in such Registration all of the Registrable Securities which the Company has been so requested to Register by the Members holding such Registrable Securities pursuant to this Section 1.3(a); provided that the Company
shall not be obligated to effect any Registration pursuant to this Section 1.3 except in accordance with the following provisions: 

(i) if such Registration involves an underwritten offering, all Members requesting that their Registrable Securities be
included in the Company’s Registration must, upon request by the underwriter(s), sell their Registrable Securities to such underwriter(s) selected by the Company on the same terms and conditions as apply to the Company or any selling
securityholder, including executing and delivering such underwriting agreements or other agreements (including legal opinions) to which the Company or any such selling securityholder has agreed to execute and deliver; 

(ii) if, at any time after giving written notice of its intention to register any securities pursuant to this
Section 1.3, the Company shall determine for any reason not to Register or to withdraw Registration of such securities, the Company shall give written notice to all Members holding Registrable Securities included in such Registration and,
thereupon, shall be relieved of its obligation to Register (or maintain the effectiveness of the Registration of) any Registrable Securities in connection with such Registration (without prejudice, however, to the rights of the Members immediately
to request that such Registration be effected as a Registration under Section 1.2); 
 (iii) the Company
shall not be required to effect any Registration of Registrable Securities under this Section 1.3 incidental to the registration of any of its securities in connection with mergers, acquisitions, exchange offers, subscription offers, dividend
reinvestment plans or stock option or other executive or employee benefit or compensation plans (including any registration of securities on a Form S-4 or S-8 registration statement or any successor or similar forms); and 

(iv) no Registration of Registrable Securities effected under this Section 1.3 shall relieve the Company of its
obligation to effect a Registration of Registrable Securities pursuant to Section 1.2. 
 (b) If a
Registration pursuant to this Section 1.3 involves an underwritten offering, and the managing underwriter shall advise the Company in writing (with a copy to each Member requesting inclusion of Registrable Securities in such Registration) that,
in its opinion, the number of securities requested to be included in such Registration (including securities of the Company which are not Registrable Securities) should be limited due to market or other conditions, the Company shall include in such
Registration (i) first, the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be included therein pursuant to this Section 1.3, pro rata among the requesting Members on the basis of
the number of Registrable Securities requested to 
  

 B-6 

 
be included in such Registration by such Members and (iii) third, any other securities requested to be included in such registration pro rata among the holders of such securities on
the basis of the number of shares requested to be Registered by such holders or as such holders may otherwise agree. 

Section 1.4. Registration Expenses. Subject to Section 1.2(d), the Company shall pay all Registration Expenses in
connection with each Registration of Registrable Securities requested pursuant to this Annex B and any other actions that may be taken in connection with any such Registration as contemplated by this Annex B; provided that the Company shall
not be obligated to pay any underwriting discounts or commissions or transfer taxes, if any, relating to the Transfer of securities Transferred by Persons other than the Company pursuant to any such Registration. 

Section 1.5. Restrictions on Public Sales by Members. In connection with any underwritten offering of securities of the
Company, including any offering contemplated by this Annex B (other than pursuant to a Shelf Registration), each Member agrees that, whether or not such Member’s Registrable Securities are included in such Registration, it shall consent and
agree to comply with any “hold back” or “lock-up” restriction, relating to Registrable Securities or any other securities of the Company then owned by such holder, that may be reasonably requested by the managing underwriter(s)
of such offering. The Company hereby also agrees to use its reasonable efforts to cause each other holder of equity securities or securities convertible into or exchangeable or exercisable for such securities (other than in the case of equity
securities issued under dividend reinvestment plans or employee stock plans) purchased directly from the Company otherwise than in a public offering to so agree, to the extent reasonably requested by the managing underwriter(s) of such offering.

 Section 1.6. Indemnification by the Company. In the event of any Registration of any Registrable Securities under
the Securities Act pursuant to this Annex B, the Company shall indemnify and hold harmless, to the full extent permitted by law, each of the Members holding any Registrable Securities included in such registration statement, its Representatives,
each other person who participates as an underwriter in the offering or sale of such securities and each other Person, if any, who controls, is controlled by or is under common control with such Member or any such underwriter within the meaning of
the Securities Act, against any and all losses, claims, damages or liabilities, joint or several, and expenses (including any amounts paid in any settlement effected with the Company’s consent) to which such Member, any such Representative or
any such underwriter or controlling Person may become subject under the Securities Act, state securities or blue sky laws, common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof)
or expenses arise out of or are based upon (a) any untrue statement or alleged untrue statement of any material fact contained in any information conveyed in connection with such Registration at or prior to the time of sale, or in any
registration statement under which such securities were Registered under the Securities Act, any preliminary, final or summary prospectus contained therein, or any amendment or supplement thereto, (b) any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (c) any violation by the Company of any law applicable to the Company and relating to action required of or inaction by the
Company in connection with any such Registration, and the Company shall reimburse such Member and each such Representative or 
  

 B-7 

 
underwriter and controlling Person for any legal or any other expenses reasonably incurred by them in connection with investigating or defending such loss, claim, liability, action or proceeding;
provided that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in any information conveyed in connection with such Registration at or prior to the time of sale, or in such registration statement or amendment or supplement thereto or in any such preliminary,
final or summary prospectus in reliance upon and in conformity with written information furnished to the Company through an instrument duly executed by such Member or any such Representative or underwriter specifically stating that it is for use in
the preparation thereof. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Member or any such Representative or underwriter and shall survive the transfer of such securities by such
Member. 
 Section 1.7. Indemnification by the Members and Underwriters. The Company may require, as a condition to
including any Registrable Securities in any registration statement filed in accordance with Annex B, that the Company shall have received an undertaking reasonably satisfactory to it from the holders of such Registrable Securities and any
underwriter, to indemnify and hold harmless severally, and not jointly, in the same manner and to the same extent as set forth in Section 1.6, the Company and its Representatives and all other prospective sellers and their respective
Representatives, and their respective controlling Persons with respect to any statement or alleged statement in or omission or alleged omission from such information, registration statement, any preliminary, final or summary prospectus contained
therein, or any amendment or supplement thereto, if such statement or alleged statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company or its representatives through an
instrument duly executed by or on behalf of such Member or underwriter, as the case may be, specifically stating that it is for use in the preparation of such information, registration statement, preliminary, final or summary prospectus or amendment
or supplement thereto, or a document incorporated by reference into any of the foregoing. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any of the Members, underwriters or
any of their respective Representatives or controlling persons and shall survive the transfer of such securities by such Member; provided that no such Member shall be liable under this Section 1.7 for any amounts exceeding the product of
the purchase price per Registrable Security and the number of Registrable Securities being sold pursuant to such registration statement or prospectus by such Member (net of any underwriters’ or placement agents’ fees, discounts or
commissions related thereto); provided, further, that no underwriter shall be liable under this Section 1.7 for any amounts exceeding the total price at which the Registrable Securities purchased by it and distributed to the public were
offered to the public. 
 Section 1.8. Notices of Claims, Etc. Promptly after receipt by an indemnified party
hereunder of written notice of the commencement of any action or proceeding with respect to which a claim for indemnification may be made pursuant to this Annex B, such indemnified party shall, if a claim in respect thereof is to be made against an
indemnifying party, promptly give written notice to the latter of the commencement of such action; provided that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its
obligations under the preceding Sections of this Annex B, except to the extent that the 
  

 B-8 

 
indemnifying party is actually materially prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, unless in such indemnified party’s
reasonable judgment (a) a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, (b) the claim is criminal in nature or (c) the claim involves material civil liability on the part of
an indemnified party, the indemnifying party shall be entitled to participate in and, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and
after notice from the indemnifying party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by the latter in connection with
the defense thereof, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties arises in respect of such claim after the assumption of the defense thereof, and the
indemnifying party shall not be subject to any liability for any settlement made without its consent (which consent shall not be unreasonably withheld). No indemnified party shall consent to entry of any judgment or enter into any settlement which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. No indemnified party shall consent to entry of any judgment
or enter into any settlement of any such action the defense of which has been assumed by an indemnifying party without the consent of such indemnifying party. An indemnifying party who is not entitled to, or elects not to, assume the defense of a
claim shall not be obligated to pay the fees and expenses of more than one counsel (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any
indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such
additional counsel or counsels. 
 Section 1.9. Other Indemnification. Indemnification similar to that specified in
the preceding Sections of this Annex B (with appropriate modifications) shall be given by the Company and each Member holding Registrable Securities with respect to any required Registration or other qualification of securities under any law other
than arising under the Securities Act. 
 Section 1.10. Indemnification Payments. The indemnification required by
Section 1.6 and Section 1.7 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred. 

Section 1.11. Contribution. (a) If the indemnification provided for in Section 1.6 and Section 1.7 is
unavailable to an indemnified party in respect of any expense, loss, claim, damage or liability referred to therein, then each indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such expense, loss, claim, damage or liability (a) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the participating Members or underwriter(s),
as the case may be, on the other hand, from the distribution of the Registrable Securities or (b) if the allocation provided by clause (a) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits 
  

 B-9 

 
referred to in clause (a) above but also the relative fault of the Company, on the one hand, and of the participating Members or underwriter(s), as the case may be, on the other hand, in
connection with the statements or omissions which resulted in such expense, loss, damage or liability, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the participating Members or
underwriter(s), as the case may be, on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission to state a material fact relates to information supplied by
the Company, by the participating Members or by the underwriter(s) and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided that the foregoing
contribution agreement shall not inure to the benefit of any indemnified party if indemnification would be unavailable to such indemnified party by reason of the provisions contained in the first sentence of either of Section 1.6 and
Section 1.7, and in no event shall the obligation of any indemnifying party to contribute under this Section 1.11 exceed the amount that such indemnifying party would have been obligated to pay by way of indemnification if the
indemnification provided for under Section 1.6 and Section 1.7 had been available under the circumstances. 

(b) The Company and the holders of Registrable Securities agree that it would not be just and equitable if contribution
pursuant to this Section 1.11 were determined by pro rata allocation (even if the holders and any underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 1.11(a). The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in Section 1.11(a) shall be deemed to include, subject to the
limitations set forth in the preceding sentence and Section 1.8, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. 

(c) Notwithstanding the provisions of this Section 1.11, no holder of Registrable Securities or underwriter shall be
required to contribute any amount in excess of the amount by which (i) in the case of any such holder, the net proceeds received by such holder from the sale of Registrable Securities or (ii) in the case of an underwriter, the total price
at which the Registrable Securities purchased by it and distributed to the public were offered to the public exceeds, in any such case, the amount of any damages that such holder or underwriter has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. 
 Section 1.12. Registration Procedures. (a) If and whenever the Company is required to
effect or cause the Registration of any Registrable Securities pursuant to this Annex B, the Company shall, as promptly as practicable: 

(i) prepare in reasonable cooperation with the sellers (and, in the event of an underwritten offering, with the
underwriter(s)), and file with the Commission (subject to Section 1.2(a)(iv)), and otherwise in a manner consistent 

 

 B-10 

 
with the provisions of this Annex B, a registration statement with respect to such Registrable Securities on any form for which the Company then qualifies or which counsel for the Company shall
deem appropriate as the case may be, and which form shall be available for the sale of the Registrable Securities in accordance with the intended methods of distribution thereof, and, except in the case of a registration pursuant to
Section 1.3, use its reasonable best efforts to cause such registration statement to become and remain effective for a period of not less than 120 days (or such shorter period in which all of the Registrable Securities included in such
registration statement have been sold thereunder, but which shall not expire before the expiration of the 90-day period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable) or, in the case of a Shelf
Registration, for so long as any Registrable Securities covered thereby are outstanding; provided that at least seven days before filing with the Commission a registration statement or prospectus or any amendments or supplements thereto, the
Company shall (A) furnish to one counsel selected by the Requesting Member(s), in the event of a Registration effected pursuant to Section 1.2, or selected by the holders of a majority of the Registrable Securities covered by such
registration statement, in the event of any other Registration, copies of all such documents proposed to be filed (other than documents filed pursuant to the Exchange Act and incorporated by reference into such registration statement), which
documents shall be subject to the timely review of such counsel, and (B) notify each holder of Registrable Securities covered by such registration statement of any stop order issued or threatened by the Commission and take all reasonable
actions required to prevent the entry of such stop order or to remove it if entered; 
 (ii) prepare and file
with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for the period required pursuant to
Section 1.12(a)(i) and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement; 
 (iii) furnish to each holder of
Registrable Securities covered by the registration statement and to each underwriter, if any, of such Registrable Securities, such number of copies of such registration statement, each amendment and supplement thereto (in each case including all
exhibits thereto, unless otherwise available via EDGAR), and the prospectus included in such registration statement (including each preliminary prospectus), a copy of any and all material transmittal letters or other material correspondence to or
received from the Commission or any other governmental entity or self-regulatory body or other Person having jurisdiction (including any domestic or foreign securities exchange) relating to such Registration and the related offering, and such other
documents, as such Person may reasonably request, in order to facilitate, the public sale or other disposition of the Registrable Securities owned by such holder; 

 

 B-11 

 (iv) use its reasonable best efforts to register or qualify such Registrable
Securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as any holder, and underwriter, if any, of Registrable Securities covered by such registration statement shall reasonably request,
and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller; provided that the Company
shall not for any such purpose, be required to (A) qualify to do business as a foreign corporation in any jurisdiction where, but for the requirements of this Section 1.12, it is not then so qualified, (B) subject itself to taxation
in any such jurisdiction or (C) take any action which would subject it to consent to general or unlimited service of process to which it is not then so subject; 

(v) notify in writing and on a timely basis each seller of Registrable Securities covered by such registration statement,
at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event which comes to the Company’s attention if as a result of such event the prospectus included in such registration
statement, as then in effect, includes any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading and at
the request of any such seller, deliver a reasonable number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities; such prospectus shall not include
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; 

(vi) use its reasonable best efforts to cause all such Registrable Securities to be listed on such national securities
exchange as may be designated by the Company, and enter into such customary agreements including a listing application and indemnification agreement in customary form, provided that the applicable listing requirements are satisfied, and to
provide a transfer agent and registrar for such Registrable Securities covered by such registration statement no later than the effective date of such registration statement; 

(vii) in the case of such registration that involves an underwritten offering, (A) use its reasonable best efforts to
furnish to any underwriter of such Registrable Securities (1) an opinion of counsel for the Company, addressed to such underwriter and dated the date of the closing under the underwriting agreement and (2) “comfort” letters
addressed to such underwriter and signed by the independent public accountants who have audited the financial statements of the Company and (B) use its commercially reasonable efforts to furnish to any selling Member of such Registrable
Securities (1) an opinion of counsel for the Company, addressed to such selling Member and dated the date of the closing under the underwriting agreement and (2) “comfort” letters addressed to such

  

 B-12 

 
selling Member and signed by the independent public accountants who have audited the financial statements of the Company, in each case in customary form and covering matters of the type
customarily covered in such opinions and letters; 
 (viii) after the filing of the registration statement,
promptly notify each seller of Registrable Securities named in such registration statement in writing of the effectiveness thereof and of any stop order issued or threatened by the Commission and take all reasonable actions required to prevent the
entry of such stop order or to promptly remove it if entered and promptly notify each seller of Registrable Securities of such lifting or withdrawal of such order; 

(ix) in the case of such registration that involves an underwritten offering, use its reasonable best efforts to have
appropriate officers of the Company (A) attend any “road shows” and analyst and investor presentations scheduled in connection with any such Registration and (B) cooperate as reasonably requested by the holders of Registrable
Securities in the marketing of the Registrable Securities; all reasonable out of pocket costs and expenses incurred by the Company or such officers in connection with such attendance or cooperation shall be paid by the Company; 

(x) give the sellers of Registrable Securities named in such registration statement and the underwriters, if any, and
their respective counsel and accountants, such reasonable and customary access to its books, records and properties and such opportunities to discuss the business and affairs of the Company with its officers and the independent public accountants
who have certified the financial statements of the Company as shall be necessary, in the opinion of such sellers and such underwriters or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act;

 (xi) use its reasonable best efforts to comply with all applicable rules and regulations of the Commission,
and make available to its security holders, as soon as reasonably practicable, an earnings statement or such other document satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; and 

(xii) execute and deliver all reasonable and customary instruments and documents (including, in an underwritten offering,
an underwriting agreement in customary form) and take such other reasonable and customary actions and obtain such reasonable and customary certificates and opinions in order to effect a Public Offering of such Registrable Securities; provided
that the Company may require each holder of Registrable Securities as to which any Registration is being effected to furnish to the Company such reasonable and customary information regarding such holder and the distribution of such Registrable
Securities as the Company may from time to time reasonably request in writing in connection with effecting such offering. 
  

 B-13 

 (b) Each holder of Registrable Securities shall, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section 1.12(a)(v), promptly discontinue disposition of the Registrable Securities pursuant to the registration statement covering such Registrable Securities until such
holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 1.12(a)(v), and, if so directed by the Company, such holder shall deliver to the Company (at the Company’s expense) all copies, other
than permanent file copies, then in such holder’s possession, of the prospectus covering such Registrable Securities at the time of receipt of such notice. 

Section 1.13. Rule 144 and Form S-3. If the Company shall have filed a registration statement pursuant to the requirements of
Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act, the Company shall (a) file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules
and regulations adopted by the Commission thereunder (or, if the Company is not required to file such reports, it shall, upon the request of any holder of Registrable Securities, make publicly available other information), and it shall take such
further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell shares of Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (i) Rule 144 or (ii) any similar rule or regulation hereafter adopted by the Commission and (b) use its reasonable best efforts to cause the conditions 1, 2 and 3 under General Instruction I.A.
of Form S-3 (or any successor form and conditions) under the Securities Act for the filing of registration statements under this Annex B to be met. Upon the request of any holder of Registrable Securities, the Company shall deliver to such holder a
written statement as to whether it has complied with such requirements. 
 Section 1.14. Registration Rights to
Others. If the Company shall at any time hereafter provide to any holder of any securities of the Company rights with respect to the registration of such securities under the Securities Act, (i) such rights shall not be in conflict with or
adversely affect any of the rights provided in this Annex B to any Member and (ii) if such rights are provided on terms or conditions more favorable to such holder than the terms and conditions provided in this Annex B, the Company shall
provide (by way of amendment to this Annex B or otherwise) such more favorable terms or conditions to each Member. 

Section 1.15. Assignment of Rights. Each of Buyer or Limited, or each of its Permitted Transferees, may assign some or all of
its rights pursuant to this Annex B to (i) any Permitted Transferee of such Member or (ii) any third-party Transferee of its Registrable Securities; provided that in either case, such Transferee agrees in writing to be bound by the
provisions of this Annex B. 
  

 B-14 

 Annex C 

ADVISORY AGREEMENT 

This Advisory Agreement (this “Agreement”) is made and entered into as of July 6, 2007 (the “Effective
Date”), by and among Express Holding, LLC, a Delaware limited liability company (“Holding”), Express, LLC, a Delaware limited liability company (“Opco”), and GGC Administration, LLC, a Delaware limited
liability company (“GGC”). 
 WHEREAS, Express Investment Corp., a Delaware corporation
(“Buyer”), Limited Brands, Inc., a Delaware corporation (“LBI”), and certain other entities are parties to that certain Unit Purchase Agreement dated May 15, 2007 (as, amended, the “Purchase
Agreement”), pursuant to which Buyer shall acquire 75% of the issued and outstanding limited liability company interests of Holding; 

WHEREAS, Holding and certain of its subsidiaries have entered into that certain Credit Agreement, dated as of the date hereof (the
“Credit Agreement”), with the lenders and agents identified on the signature pages thereto; 
 WHEREAS, this
Agreement shall become effective upon the closing of the transactions contemplated by the Purchase Agreement; and 
 WHEREAS,
each of Holding and Opco desires to retain GGC with respect to the services described herein. 
 NOW, THEREFORE, the parties
agree as follows: 
 1. Term. This Agreement shall be in effect for an initial term commencing upon the closing date of
the transactions contemplated by the Purchase Agreement and ending on the tenth anniversary of the date thereof (the “Term”), and shall automatically be extended thereafter on a year to year basis unless Holding or GGC provides
written notice of its desire to terminate this Agreement to the other parties no later than 90 days prior to the expiration of the Term or any extension thereof. 

2. Services. GGC shall perform or cause to be performed such services for Holding and/or its subsidiaries as mutually agreed by
GGC and Holding’s board of directors, which may include, without limitation, the following: 
 (a) general executive and
management services; 
 (b) identification, support, negotiation and analysis of acquisitions and dispositions by Holding or its
subsidiaries; 
 (c) support, negotiation and analysis of financing alternatives, including, without limitation, in connection
with acquisitions, capital expenditures and refinancing of existing indebtedness; 
 (d) finance functions, including assistance
in the preparation of financial projections and monitoring of compliance with financing agreements; 
  

 C-1 

 (e) marketing functions, including monitoring of marketing plans and strategies; 

(f) human resources functions, including searching and hiring of executives; and 

(g) other services for Holding and its subsidiaries upon which Holding’s board of directors and GGC agree. 

3. Advisory Fees. During the Term of this Agreement, GGC or its designee will be paid for the reasonable out-of-pocket expenses of
GGC and its affiliates in connection with the provision of services hereunder, plus an amount equal to the greater of (i) $2,000,000 per fiscal year, and (ii) 3% of the EBITDA of Holding and its subsidiaries for such fiscal year. The
aforementioned fee shall be payable by Opco to GGC or its designee on a quarterly basis in advance commencing as of the Effective Date and will be based on the projected amount thereof determined in good faith by Holding’s board of directors
(it being agreed that following the completion of each fiscal year of Holding, any estimated fee theretofore paid will be compared to the actual fee due and owing based on actual EBITDA, and the parties will make such settlement payments as are
necessary to ensure the fees paid are based on actual EBITDA); provided, however, that if Opco reasonably anticipates that paying such fee will exceed the amount permitted under the terms of any loan agreement to which Opco is a party and payment of
such excess in violation of the terms of any such loan agreement will jeopardize the ability of Opco to continue as a going concern, Opco will pay such portion of the fee as Opco reasonably anticipates will not exceed the amount permitted under the
terms of such loan agreement and will pay the remainder of such fee at the earliest date that Opco reasonably anticipates the making of such payment will not violate the terms of such loan agreement or that such violation will not jeopardize the
ability of Opco to continue as a going concern, in which case amounts otherwise due as payment of the aforementioned fee will continue to accrue in accordance with the terms of this Agreement. The aforementioned expenses will be payable by Opco to
GGC or its designee on a quarterly basis in arrears commencing on the Effective Date, upon presentation by GGC of invoices for such expenses. For purposes of this Agreement, “EBITDA” shall mean “Consolidated Adjusted EBITDA” as
defined in the Credit Agreement as in effect on the date hereof. 
 4. Transaction Fees. 

(a) Without duplication of the fees and expenses specified in Section 14.03 of the Purchase Agreement, Holding and Opco hereby agree
to pay to GGC or its designee upon the Effective Date the fees and expenses specified in Section 14.03 of the Purchase Agreement (subject to the cap specified therein), it being agreed that a portion of such fees and expenses shall be on
account of GGC’s transaction fee in connection with the transactions contemplated by the Purchase Agreement and the related financings. 

(b) In addition, during the Term, Opco will pay to GGC or its designee a transaction fee in connection with the consummation of each
transaction resulting in a Change in Control (as defined below), acquisition, divestiture or incremental financing (i.e., above and beyond the then existing amount of funded debt being replaced) (whether debt or equity

  

 C-2 

 
financing) by or involving Holding or its subsidiaries in an amount equal to 1.0% of the aggregate value of each such transaction (in each case, whether such transaction is by way of merger,
purchase or sale of stock, purchase or sale or other disposition of assets, recapitalization, reorganization, consolidation, tender offer, public or private offering or otherwise, and whether consummated directly by Holding or its subsidiaries or
indirectly by their respective stockholders). 
 “Change in Control” means (i) any sale or transfer by
Holding or its subsidiaries of all or substantially all of their assets on a consolidated basis (as determined under Delaware law), (ii) any consolidation, merger or reorganization of Holding with or into any other entity or entities as a
result of which the holders of Holding’s outstanding capital stock possessing the voting power (under ordinary circumstances) to elect a majority of the board or directors immediately prior to such consolidation, merger or reorganization cease
to own the outstanding capital stock of the surviving corporation possessing the voting power (under ordinary circumstances) to elect a majority of the surviving corporation’s board of directors, or (iii) issuance by Holding or sale or
transfer to any third party of shares of Holding’s capital stock by the holders thereof as a result of which the holders of Holding’s outstanding capital stock possessing the voting power (under ordinary circumstances) to elect a majority
of the board of directors immediately prior to such sale or transfer cease to own the outstanding capital stock of Holding possessing the voting power (under ordinary circumstances) to elect a majority of the board of directors. 

5. Personnel. GGC will provide and devote to the performance of this Agreement such partners, employees and agents of GGC as GGC
shall deem appropriate to the furnishing of the services mutually agreed upon by Holding and GGC. The fees and other compensation specified in this Agreement will be payable by Opco regardless of the extent of services requested by Holding pursuant
to this Agreement, and regardless of whether or not Holding requests GGC to provide any such services. 
 6. Liability.
In recognition of the fact that Holding, its subsidiaries and their respective affiliates, on the one hand, and the GGC Group (as defined below), on the other hand, may currently engage in, and may in the future engage in, the same or similar
activities or lines of business and have an interest in the same areas and types of corporate opportunities, and in recognition of the benefits to be derived by Holding, its subsidiaries and their respective affiliates through their continued
contractual, corporate and business relations with the GGC Group (including possible service of directors, officers and employees of the GGC Group as directors, officers and employees of Holding), the provisions of this Section 6 are set
forth to regulate and define the conduct of certain affairs of Holding, its subsidiaries and their respective affiliates as they may involve the GGC Group (as defined below), and the powers, rights, duties and liabilities of Holding, its
subsidiaries and their respective affiliates, as well as their directors, officers, employees and stockholders in connection therewith. None of GGC, its affiliates or its portfolio companies, nor any of their respective partners, members, directors,
employees or agents, nor any successor by operation of law (including by merger) of any such person, nor any entity that acquires all or substantially all of the assets of any such person in a single transaction or series of related transactions
(collectively, the “GGC Group”) shall be liable to Holding, its subsidiaries or any of their affiliates for any loss, liability, damage or expense (including attorneys’ fees and expenses) (collectively a
“Loss”) arising out of or in connection with the 
  

 C-3 

 
performance of services contemplated by this Agreement, except to the extent arising from gross negligence or willful misconduct of a member of the GGC Group. GGC makes no representations or
warranties, express or implied, in respect of the services provided by any member of the GGC Group. Except as GGC may otherwise agree in writing after the date hereof: (i) each member of the GGC Group shall have the right to, and shall have no
duty (contractual or otherwise) not to, directly or indirectly: (A) engage in the same, similar or competing business activities or lines of business as Holding, its subsidiaries or any of their affiliates, (B) do business with any client
or customer of Holding, its subsidiaries or any of their affiliates, and (C) make investments in competing businesses of Holding, its subsidiaries or any of their affiliates, and such acts shall not be deemed wrongful or improper; (ii) no
member of the GGC Group shall be liable to Holding, its subsidiaries or any of their affiliates for breach of any duty (contractual or otherwise), including without limitation any fiduciary duties, by reason of any such activities or of such
person’s participation therein; and (iii) in the event that any member of the GGC Group acquires knowledge of a potential transaction or matter that may be a corporate opportunity for Holding, its subsidiaries or any of their affiliates on
the one hand, and any member of the GGC Group, on the other hand, or any other person, no member of the GGC Group shall have any duty (contractual or otherwise), including without limitation any fiduciary duties, to communicate, present or offer
such corporate opportunity to Holding, its subsidiaries or any of their affiliates and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to Holding, its subsidiaries or any of their affiliates for breach of any
duty (contractual or otherwise), including without limitation any fiduciary duties, by reason of the fact that any member of the GGC Group directly or indirectly pursues or acquires such opportunity for itself, directs such opportunity to another
person, or does not present or communicate such opportunity to Holding, its subsidiaries or any of their affiliates, even though such corporate opportunity may be of a character that, if presented to Holding, its subsidiaries or any of their
affiliates, could be taken by Holding, its subsidiaries or any of their affiliates, as applicable. Holding hereby renounces any interest, right, or expectancy in any such opportunity not offered to it by the GGC Group to the fullest extent permitted
by law. In no event will any of the parties hereto be liable to any other party hereto for (i) any indirect, special, incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable or
(ii) in respect of any liabilities relating to any third party claims (whether based in contract, tort or otherwise), except as set forth in Section 7 below. 

7. Indemnity. Holding, its subsidiaries and their affiliates shall defend, indemnify and hold harmless each member of the GGC
Group from and against any and all Losses arising from any claim by any person or entity with respect to, or in any way related to, this Agreement (collectively, “Claims”) resulting from any act or omission of any member of the GGC
Group in connection with this Agreement, except to the extent arising from gross negligence or willful misconduct of the indemnified member of the GGC Group. Holding, its subsidiaries and their affiliates shall defend at their own cost and expense
any and all suits or actions (just or unjust) which may be brought against Holding, its subsidiaries or any of their affiliates, or any member of the GGC Group or in which any member of the GGC Group may be impleaded with others upon any Claims, or
upon any matter, directly or indirectly related to or arising out of this Agreement or the performance hereof by any member of the GGC Group, except to the extent arising from gross negligence or willful misconduct of the indemnified member of the
GGC Group. 
  

 C-4 

 8. Notices. All notices hereunder shall be in writing and shall be delivered
personally or mailed, postage prepaid, addressed to the parties as follows: 
  

			
	To Holding or its subsidiaries:
	
	 Express Holding, LLC

c/o Golden Gate Private Equity, Inc.

	One Embarcadero Center,
33rd Floor
	San Francisco, CA 94111
	Attention:	 	Stefan Kaluzny
	Facsimile:	 	(415) 627-4501
	
	To GGC:
	
	GGC Administration, LLC
	One Embarcadero Center,
33rd Floor
	San Francisco, CA 94111
	Attention:	 	Stefan Kaluzny
		 	Sue Breedlove
	Facsimile:	 	(415) 627-4501

 9. Successors. This
Agreement and all the obligations and benefits hereunder shall inure to the successors and assigns of the parties. 
 10.
Assignment. No party may assign any obligations hereunder to any other party without the prior written consent of each of the other parties (which consent shall not be unreasonably withheld); provided that GGC may, without consent of
any other party hereto, assign its rights and obligations under this Agreement to any of its affiliated investment funds. The assignor shall remain liable for the performance of any assignee. 

11. Counterparts. This Agreement may be executed and delivered by each party hereto in separate counterparts, each of which when
so executed and delivered shall be deemed an original and all of which taken together shall constitute but one and the same agreement. 

12. Entire Agreement; Modification; Governing Law. The terms and conditions hereof constitute the entire agreement between the
parties hereto with respect to the subject matter of this Agreement and supersede all previous communications, either oral or written, representations or warranties of any kind whatsoever, except as expressly set forth herein. No modifications of
this Agreement nor waiver of the terms or conditions thereof shall be binding upon any party unless approved in writing by an authorized representative of such party. All issues concerning this agreement shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the law of any
jurisdiction other than the State of California. 
  

 C-5 

 13. Joint and Several Liability. Each obligation described herein of Holding or Opco,
as the case may be, shall be a joint and several obligation of Holding and Opco and their subsidiaries, as the case may be. If requested by GGC, then Holding or Opco, as the case may be, shall cause any of their respective subsidiaries to sign a
counterpart signature page to this Agreement to evidence such joint and several liability. 
 14. Attorney’s Fees.
If any action at law or in equity is necessary or desirable to enforce or interpret the terms of this Agreement or to protect the rights obtained hereunder, then GGC shall be entitled to recover from the other parties hereto its reasonable
attorneys’ fees incurred in connection therewith, including attorneys’ fees on appeal, costs and disbursements in addition to any relief to which it may be entitled. 

*    *    * 

 

 C-6 

 IN WITNESS WHEREOF, the parties have executed this Advisory Agreement as of the date first
written above. 
  

			
	EXPRESS HOLDING, LLC
		
	By:	 	  

		 	Matt Moellering
		 	Chief Financial Officer and Secretary
	
	EXPRESS, LLC
		
	By:	 	  

		 	Matt Moellering
		 	Chief Financial Officer and Secretary
	
	GGC ADMINISTRATION, LLC
		
	By:	 	  

		 	Stefan Kaluzny
		 	Managing Director

  

					
	[Advisory Agreement]	 	S-1Stock Purchase Agreement

 Exhibit 10.33 

STOCK PURCHASE AGREEMENT 

AMONG 
 SOLO
CUP OPERATING CORPORATION, 
 AS BUYER, 

AND 

INNOWARE, LLC, 

AS SELLER 

March 31, 2010 

 TABLE OF CONTENTS 

 

			
	 	  	Page
		
	 §1. Definitions
	  	1
		
	 §2. Purchase and Sale of Target Shares
	  	8
	 (a) Basic Transaction
	  	8
	 (b) Preliminary Purchase Price
	  	8
	 (c) Net Cash Payment to Seller
	  	8
	 (d) The Closing
	  	8
	 (e) Deliveries at Closing
	  	8
	 (f) Preparation of Closing Date Balance Sheet
	  	9
	 (g) Adjustment to Preliminary Purchase Price
	  	9
		
	 §3. Representations and Warranties Concerning Transaction
	  	10
	 (a) Seller’s Representations and Warranties
	  	10
	 (b) Buyer’s Representations and Warranties
	  	10
		
	 §4. Representations and Warranties Concerning Target and InnoWare Plastic
	  	11
	 (a) Organization, Qualification, and Corporate Power
	  	11
	 (b) Capitalization
	  	12
	 (c) Non-contravention
	  	12
	 (d) Brokers’ Fees
	  	12
	 (e) Title to Tangible Assets
	  	12
	 (f) Subsidiaries
	  	12
	 (g) Financial Statements
	  	13
	 (h) Events Subsequent to Most Recent Fiscal Year End
	  	13
	 (i) Undisclosed Liabilities
	  	15
	 (j) Legal Compliance
	  	15
	 (k) Tax Matters
	  	15
	 (l) Real Property
	  	17
	 (m) Intellectual Property
	  	20
	 (n) Tangible Assets
	  	23
	 (o) Inventory
	  	23
	 (p) Contracts
	  	23
	 (q) Notes and Accounts Receivable
	  	24
	 (r) Powers of Attorney
	  	24
	 (s) Insurance
	  	24
	 (t) Litigation
	  	25
	 (u) Product Warranty
	  	25
	 (v) Product Liability
	  	25
	 (w) Employees
	  	25
	 (x) Employee Benefits
	  	26
	 (y) Guaranties
	  	27
	 (z) Environmental, Health, and Safety Matters
	  	27
	 (aa) Business Continuity
	  	29
	 (bb) Computer and Technology Security
	  	29
	 (cc) Certain Business Relationships with Target and InnoWare Plastic
	  	29
	 (dd) Customers and Suppliers
	  	29
	 (ee) Data Privacy
	  	29
	 (ff) Rail Spur Compliance
	  	30
	 (gg) Disclaimer of Other Representations and Warranties
	  	30
	 (hh) Menomonee Release
	  	30
		
	 §5. Pre-Closing Covenants
	  	30
	 (a) General
	  	30

  

 i 

			
	 (b) Notices and Consents
	  	30
	 (c) Operation of Business
	  	31
	 (d) Preservation of Business
	  	31
	 (e) Full Access
	  	31
	 (f) Notice of Developments
	  	31
	 (g) Exclusivity
	  	31
	 (h) Maintenance of Real Property
	  	32
	 (i) Leases
	  	32
	 (j) Title Insurance and Surveys
	  	32
	 (k) Tax Matters
	  	32
	 (l) Release and Discharge of Indebtedness of Target and InnoWare Plastic
	  	32
	 (m) Transfer of Employee Benefit Plans
	  	32
	 (n) Contact with Employees, Customers and Suppliers
	  	32
		
	 §6. Post-Closing Covenants
	  	33
	 (a) General
	  	33
	 (b) Litigation Support
	  	33
	 (c) Transition
	  	33
	 (d) Confidentiality
	  	33
	 (e) Restrictive Covenants
	  	33
	 (f) SEC Filing Support
	  	34
	 (g) Funding Payments and Costs Under Separation Agreements
	  	34
		
	 §7. Conditions to Obligation to Close
	  	34
	 (a) Conditions to Buyer’s Obligation
	  	34
	 (b) Conditions to Seller’s Obligation
	  	37
		
	 §8. Remedies for Breaches of This Agreement
	  	38
	 (a) Survival of Representations and Warranties
	  	38
	 (b) Indemnification Provisions for Buyer’s Benefit
	  	39
	 (c) Indemnification Provisions for Seller’s Benefit
	  	39
	 (d) Matters Involving Third Parties
	  	39
	 (e) Determination of Adverse Consequences
	  	40
	 (f) Recoupment Against Escrow Agreement
	  	40
	 (g) Exclusive Remedy
	  	40
	 (h) Purchase Price Adjustment
	  	41
	 (i) Acknowledgment by Buyer
	  	41
		
	 §9. Tax Matters
	  	41
	 (a) Tax Indemnification
	  	41
	 (b) Straddle Period
	  	41
	 (c) Responsibility for Filing Tax Returns
	  	41
	 (d) Cooperation on Tax Matters
	  	42
	 (e) Tax-Sharing Agreements
	  	42
	 (f) Certain Taxes and Fees
	  	42
	 (g) Reporting of Transactions
	  	42
	 (h) Impact of NWC Adjustments
	  	43
		
	 §10. Termination
	  	43
	 (a) Termination of Agreement
	  	43
	 (b) Effect of Termination
	  	43
		
	 §11. Miscellaneous
	  	43
	 (a) Nature of Seller’s Obligations
	  	43
	 (b) Press Releases and Public Announcements
	  	44
	 (c) No Third-Party Beneficiaries
	  	44
	 (d) Entire Agreement
	  	44
	 (e) Succession and Assignment
	  	44
	 (f) Counterparts
	  	44

  

 ii 

			
	 (g) Headings
	  	44
	 (h) Notices
	  	44
	 (i) Governing Law
	  	45
	 (j) Amendments and Waivers
	  	45
	 (k) Severability
	  	45
	 (l) Expenses
	  	45
	 (m) Construction
	  	46
	 (n) Incorporation of Exhibits, Annexes, and Schedules
	  	46
	 (o) Informal Dispute Resolution
	  	46
	 (p) Arbitration
	  	46

 Exhibit A— Intentionally Omitted

 Exhibit B— Historical Financial Statements 

Exhibit C— Forms of Side Agreements 

Exhibit D— Form of Opinion of Sellers’ Counsel 

Exhibit E— Form of Opinion of Buyer’s Counsel 

Exhibit F— Escrow Agreement 
 Exhibit
G— Retained Employees 
 Exhibit H— Intentionally Omitted 

Annex I—Exceptions to Seller’s Representations and Warranties Concerning Transaction 

Annex II—Exceptions to Buyer’s Representations and Warranties Concerning Transaction 

Disclosure Schedule—Exceptions to Representations and Warranties Concerning Target and InnoWare Plastic 

 

 iii 

 STOCK PURCHASE AGREEMENT 

This Stock Purchase Agreement (this “Agreement”) is entered into as of March 31, 2010, by and between Solo Cup Operating
Corporation, a Delaware corporation (“Buyer”), and InnoWare, LLC, a Delaware limited liability company (“Seller”). Buyer and Seller are referred to collectively herein as the “Parties.” 

Seller owns all of the outstanding capital stock of InnoWare Plastic Holding Company, Inc., a Delaware corporation
(“Target”). 
 This Agreement contemplates a transaction in which Buyer will purchase from Seller, and Seller
will sell to Buyer, all of the outstanding capital stock of Target in return for cash. 
 Now, therefore, in consideration of
the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the Parties agree as follows. 

§1. Definitions 

“Acquisition Date” means August 31, 2006. 

“Adverse Consequences” means all actions, suits, proceedings, hearings, investigations, charges, complaints, claims,
demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and fees, including court costs and reasonable attorneys’
fees and expenses. 
 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under
the Securities Exchange Act. 
 “Affiliated Group” means any affiliated group within the meaning of Code
§1504(a) or any similar group defined under a similar provision of state, local or foreign law. 
 “Applicable
Rate” means the prime rate of interest publicly announced from time to time by Bank of America plus 3%. 

“Basis” means any past or present fact, situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction that forms or should form the basis for any specified consequence. 

“Business” means the manufacture, distribution, re-distribution and/or sale of plastic containers with lids, whether or
not hinged. “Business” shall include without limitation the manufacture, distribution, re-distribution and/or sale of: (i) any plastic take-out containers with lids (whether or not hinged) of any shape or form, whether thermoformed,
injection molded or made through any other manufacturing technique and (ii) any plastic containers with lids (whether or not hinged) intended for use by packers/processers, provided that “Business” shall not include (1) plastic
containers and/or lids that are sold at retail and decorated or colored to coordinate with the offering of InnoWare Paper, Inc. products that are currently offered or similar to those currently offered; or (2) non-plastic items with plastic
coating. 
 “Buyer” has the meaning set forth in the preface above. 

“Closing” has the meaning set forth in §2(d) below. 

 “Closing Date” has the meaning set forth in §2(d) below. 

“Closing Date NWC” means the Net Working Capital for Target and InnoWare Plastic calculated as described in §2(f)
below. 
 “Closing Purchase Price” has the meaning set forth in §2(b) below. 

“COBRA” means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code §4980B and of any similar state
law. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Confidential Information” means any information concerning the businesses and affairs of the Target and InnoWare
Plastic that is not already generally available to the public. 
 “Controlled Group” has the meaning set forth
in Code §1563. 
 “Data Laws” has the meaning set forth in §4(ee) below. 

“Disclosure Schedule” has the meaning set forth in §4 below. 

“DUNI Guaranty” means the Performance and Payment Guaranty, dated August 31, 2006, made by, among other parties,
Seller, Target and Innoware Plastic, in favor of DUNI AB, a Swedish limited liability company. 
 “Employee Benefit
Plan” means any “employee benefit plan” (as such term is defined in ERISA §3(3)) and any other material employee benefit plan, program or arrangement of any kind. 

“Employee Pension Benefit Plan” has the meaning set forth in ERISA §3(2). 

“Employee Welfare Benefit Plan” has the meaning set forth in ERISA §3(1). 

“Encumbrance Documents” has the meaning set forth in §4(l) below. 

“Environmental, Health, and Safety Requirements” shall mean and include without limitation, (as amended and as now and
hereafter in effect), any and all federal, state, local, and foreign statutes, regulations, ordinances, and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations,
and all common law regulating or relating to any Hazardous Substances or pertaining in any way to health, safety, industrial hygiene, or the environment, including, without limitation, each of the following: the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. §9601 et seq.; the Resource Conservation and Recovery Act of 1976, as amended (“RCRA”), 42 U.S.C. §6901, et seq.; the
Toxic Substances Control Act, as amended, 15 U.S.C. §2601 et seq.; the Clean Air Act, as amended, 42 U.S.C. §7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1251 et
seq.; the Federal Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq.; the Occupational Safety and Health Act, as amended, 29 U.S.C. §651 et seq.; and the rules, regulations and ordinances of
the U.S. Environmental Protection Agency, and of all other agencies, boards, commissions and other governmental offices, bodies and political subdivisions thereof having jurisdiction over the Target, InnoWare Plastic and their respective
predecessors and their Owned or Leased Real Property or the use or operation thereof. 
 “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” means each entity that is
treated as a single employer with Target for purposes of Code §414. 
  

 2 

 “Escrow Account” has the meaning set forth in §2(b) below. 

“Escrow Agent” has the meaning set forth in §2(b) below. 

“Escrow Agreement” means the escrow agreement entered into concurrently herewith and attached hereto as Exhibit
F. 
 “Escrow Amount” means $3,317,719.73. 

“Estoppel Certificates” has the meaning set forth in §7(a) below. 

“Fiduciary” has the meaning set forth in ERISA §3(21). 

“Financial Statements” has the meaning set forth in §4(g) below. 

“FIRPTA Affidavit” has the meaning set forth in §7(a) below. 

“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently
applied. 
 “Hart-Scott-Rodino Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 “Hazardous Substances” means and includes petroleum and any substance, waste, material, pollutant or
contaminant that is regulated, listed or defined as hazardous or toxic under any Environmental, Health and Safety Requirements. 

“Historic Title Insurance Policies” means those certain title insurance policies issued to Target or InnoWare Plastic
(or their respective Predecessors) set forth in §4(l)(i) of the Disclosure Schedule. 
 “Improvements” has
the meaning set forth in §4(l) below. 
 “Indebtedness” means (i) indebtedness for borrowed money,
(ii) indebtedness evidenced by any note, bond, debenture, mortgage or other debt instrument or debt security, (iii) obligations under any interest rate, currency or other hedging agreement, (iv) obligations under any performance bond
or letters of credit, (v) any capital lease obligations (other than the capital lease for the warehouse space in Thomaston, Georgia, which lease is described on Schedule 7(a)(xxiv) of the Disclosure Schedule), (vi) asset retirement
obligations (as reflected in the Financial Statements), (vii) obligations to NEP, including management fees, (viii) guarantees with respect to any indebtedness, obligation, claim or liability of any other Person of a type described in
clauses (i) through (vi) above, and (ix) for clauses (i) through (ix) above, all accrued interest and bank fees thereon, if any, and any termination fees, prepayment penalties, “breakage” cost or similar payments
associated with the repayments of such Indebtedness on the Closing Date. 
 “Indemnified Party” has the meaning
set forth in §8(d) below. 
 “Indemnifying Party” has the meaning set forth in §8(d) below.

 “InnoWare Paper Supply Agreement” means a Supply Agreement between Target, InnoWare Plastic and InnoWare
Paper, Inc. on mutually acceptable terms providing for the continuing manufacture and supply of plastic products by Target and InnoWare Plastic for sale by InnoWare Paper, Inc. 

“InnoWare Plastic” means InnoWare Plastic, Inc., a Florida corporation, f/k/a Duni Corporation. 

“Intellectual Property” means all of the following in any jurisdiction throughout the world: (a) all inventions
(whether patentable or unpatentable and whether or not reduced to practice), all improvements 
  

 3 

 
thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, and
all equivalent or similar rights under the laws of each jurisdiction throughout the world in inventions and discoveries, (b) all trademarks, service marks, trade dress, logos, slogans, trade names, corporate names, Internet domain names, and
rights in telephone numbers, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all
copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith, (e) all trade secrets and
confidential business information (including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists,
pricing and cost information, and business and marketing plans and proposals), (f) all computer software (including source code, executable code, data, databases, and related documentation), (g) all advertising and promotional materials,
(h) all other proprietary rights, and (i) all copies and tangible embodiments thereof (in whatever form or medium). 

“Knowledge” means actual knowledge of the following: Nicholas Clementi; Leo Waner; John Rice; Timothy DeVries; Mark
Butters; and Michael Healy. 
 “Lease Consents” means the consent, if any, required from a third party in order
to maintain any Lease in full force and effect following the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 

“Leased Employee Agreement” means the Leased Employee Agreement, dated March 31, 2010, between InnoWare Plastic and
InnoWare Paper, Inc. 
 “Leased Real Property” means all leasehold or subleasehold estates and other rights to
use or occupy any land, buildings, structures, improvements, fixtures, or other interest in real property held by Target or InnoWare Plastic. 

“Leases” means all leases, subleases, licenses, concessions and other agreements (written or oral), including all
amendments, extensions, renewals, guaranties, and other agreements with respect thereto, pursuant to which Target or InnoWare Plastic holds any Leased Real Property, including the right to all security deposits and other amounts and instruments
deposited by or on behalf of Target or InnoWare Plastic thereunder. 
 “Liability” means any liability or
obligation of whatever kind or nature (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any
liability for Taxes. 
 “Lien” means any mortgage, pledge, lien, encumbrance, charge, or other security
interest including any environmental covenants, environmental clean up liens or activity and use limitations. 

“Material Adverse Effect” or “Material Adverse Change” means any effect or change that would be (or
could reasonably be expected to be) materially adverse to the business, assets, condition (financial or otherwise), operating results or operations of Target and/or InnoWare Plastic, taken as a whole, or to the ability of Seller to consummate timely
the transactions contemplated hereby (regardless of whether or not such adverse effect or change is capable of cure), including but not limited to any adverse change, event, development, or effect arising from or relating to (y) changes in GAAP
and (z) changes in laws, rules, regulations, orders, or other binding directives issued by any governmental entity. Notwithstanding the foregoing, any adverse change, event, development, or effect (whether short-term or long-term) arising from
or relating to (1) general business or economic conditions, including such conditions related to the business of Target or InnoWare Plastic unless such conditions disproportionately affect the industry or business of Target and InnoWare
Plastic, (2) the taking of any action contemplated by this Agreement and the other agreements contemplated hereby, (3) actions or acts of Target or InnoWare Plastic that are taken prior to the Closing with the written approval or written
consent of Buyer or taken jointly with 
  

 4 

 
Buyer, (4) national or international political or social conditions, including the engagement in or escalation of hostilities by the United States, whether or not pursuant to the declaration
of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the
United States, (5) the announcement or pendency of the transactions contemplated by this Agreement, (6) the loss of any customer of Target or InnoWare Plastic or a reduction in the amount of product purchased by any customer from Target or
InnoWare Plastic or (7) general market conditions or conditions in the capital or financial markets in the United States or any foreign country, shall not be taken into account in determining whether there has been a Material Adverse Effect or
Material Adverse Change. 
 “Menomonee Lease” means the Lease, dated December 31, 1997, by and between
Prentiss Properties Acquisition Partners, L.P., DUNI A.B. and DUNI Corporation, as amended by a First Amendment to Lease dated August 30, 2006 and a Second Lease Amendment dated as of March 30, 2010. 

“Menomonee Release” means the complete release of Target and InnoWare Plastic from any continuing obligations under the
DUNI Guaranty, and the Lease Amendment referred to therein. 
 “Most Recent Balance Sheet” means the balance
sheet contained within the Most Recent Financial Statements. 
 “Most Recent Financial Statements” has the
meaning set forth in §4(g) below. 
 “Most Recent Fiscal Month End” has the meaning set forth in
§4(g) below. 
 “Most Recent Fiscal Year End” has the meaning set forth in §4(g) below. 

“Multiemployer Plan” has the meaning set forth in ERISA §3(37). 

“Net Working Capital” means, at any given date, the amount equal to (i) the following specified current assets of
Innoware Plastic, excluding Cash, intercompany receivables and deferred income taxes, as set forth on the applicable balance sheet of Innoware Plastic as of such date (current assets will consist of the following line item accounts specified for
illustrative purposes on Schedule 2(f)(i) of the Disclosure Schedule: accounts receivable, net; inventory, net; and prepaid expenses, in each case prepared in accordance with accounting principles applied consistently with the audited financial
statements of InnoWare Plastic as of December 31, 2009 (the “2009 InnoWare Plastic Audited Financial Statements), minus (ii) the following specified current liabilities of Innoware Plastic, excluding intercompany payables, accrued
management fees, accrued bank fees, accrued executive bonuses, deferred income taxes, Transaction Expenses and current maturities of capital lease obligations and other Indebtedness (including accrued interest), as set forth on the applicable
balance sheet of Innoware Plastic as of such date (current liabilities will consist of the following line item accounts specified for illustrative purposes on Schedule 2(f)(i) of the Disclosure Schedule: accounts payable, accrued expenses (other
than those accrued expenses excluded from the definition of working capital above), in each case prepared in accordance accounting principles applied consistently with the 2009 InnoWare Plastic Audited Financial Statements. For purposes of this
definition, “Cash” means all cash on hand or in banks or other depositories (net of any outstanding check or similar in-process payment obligations), and “Transaction Expenses” means all costs of Seller and its Affiliates,
including without limitation Target and InnoWare Plastic, incurred in connection with this Agreement and the transactions contemplated thereby, including without limitation all legal, accounting, financial advisory, consulting and all other fees and
expenses of third parties. For the avoidance of doubt, valuations of all assets and liabilities included in Net Working Capital as of the Closing Date shall be made in the manner and basis consistent with the methodologies used by management of
InnoWare Plastic in supporting the balances included in the 2009 InnoWare Plastic Audited Financial Statements that were audited by Baker Tilly. In determining Net Working Capital as of the Closing Date there shall be no retroactive revaluation of
any assets or liabilities based on Buyer’s accounting methodologies. 
  

 5 

 “Non-Disturbance Agreements” has the meaning set forth in §7(a) below.

 “Ordinary Course of Business” means the ordinary course of business consistent with past custom and practice
(including with respect to quantity and frequency). 
 “Owned Real Property” means all land, together with all
buildings, structures, improvements, and fixtures located thereon, including all electrical, mechanical, plumbing and other building systems, fire protection, security and surveillance systems, telecommunications, computer, wiring, and cable
installations, utility installations, water distribution systems, and landscaping, together with all easements and other rights and interests appurtenant thereto (including air, oil, gas, mineral, and water rights), owned by Target or InnoWare
Plastic. 
 “Party” has the meaning set forth in the preface above. 

“PBGC” means the Pension Benefit Guaranty Corporation. 

“Permitted Encumbrances” means with respect to each parcel of Real Property: (a) real estate taxes, assessments and
other governmental levies, fees, or charges imposed with respect to such Real Property that are (i) not due and payable as of the Closing Date or (ii) being contested in good faith and for which appropriate reserves have been established
in accordance with GAAP; (b) mechanics’ liens and similar liens for labor, materials, or supplies provided with respect to such Real Property incurred in the Ordinary Course of Business for amounts that are (i) not due and payable as
of the Closing Date or (ii) being contested in good faith and for which appropriate reserves have been established in accordance with GAAP; (c) zoning, building codes and other land use laws regulating the use or occupancy of such Real
Property or the activities conducted thereon which are imposed by any governmental authority having jurisdiction over such Real Property and are not violated by the current use or occupancy of such Real Property or the operation of Target’s or
InnoWare Plastic’s business as currently conducted thereon; and (d) easements, covenants, conditions, restrictions, and other similar matters of record affecting title to such Real Property that either (i) do not or would not impair
the use or occupancy of such Real Property in the operation of Target’s or InnoWare Plastic’s business as currently conducted thereon or (ii) are identified as exceptions on the Historic Title Insurance Policies (provided that
Permitted Encumbrances shall not include any mortgage recorded against the Owned Real Property and reflected as an exception in any Historic Title Insurance Policy). 

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

“Predecessor” means an entity whose potential liability (including any potential liability for investigatory costs,
cleanup costs, governmental response costs, natural resource damages, property damages, personal injuries, or penalties) for (i) spills, releases, discharges, disposal or for arranging for the disposal of any Hazardous Substances, or
(ii) any violation of Environmental, Health, and Safety Requirements, has been retained or assumed, either contractually or by operation of law, by Target or InnoWare Plastic. 

“Preliminary Purchase Price” has the meaning set forth in §2(b) below. 

“Prohibited Transaction” has the meaning set forth in ERISA §406 and Code §4975. 

“Purchase Price” has the meaning set forth in §2(g) below. 

“Rail Spur Agreements” means the agreements described in §4(ff) below. 

“Real Property” has the meaning set forth in §4(l) below. 

“Real Property Laws” has the meaning set forth in §4(l) below. 

 

 6 

 “Reportable Event” has the meaning set forth in ERISA §4043.

 “Required NWC” means $6,800,000. 

“Retained Employees” means the existing employees of Target or InnoWare Plastic who are listed on Exhibit G to
this Agreement. 
 “Routine IP Agreements” means (i) all fully paid, freely transferable, nonexclusive
licenses for Intellectual Property embedded in any equipment, fixtures, components or finished products, (ii) all fully paid, freely transferable, nonexclusive implied licenses of Intellectual Property, (iii) all nonexclusive licenses for
the use of commercially available Systems or off-the-shelf software where the aggregate value of all licenses of the same or substantially identical information systems or software is less than $50,000, and (iv) all maintenance or service
agreements related to any commercially available Systems or off-the-shelf software. 
 “Securities Act” means
the Securities Act of 1933, as amended. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934,
as amended. 
 “Seller” has the meaning set forth in the preface above. 

“Senior Credit Agreement” means the Credit Agreement dated as of August 31, 2006, by and among InnoWare Plastic,
InnoWare Paper, Inc. and the other persons designated therein as credit parties, and General Electric Capital Corporation, as amended by the Limited Waiver and First Amendment to Credit Agreement entered into as of November 3, 2008. 

“Separation Agreements” means (i) the Confidential Separation Agreement and Release of Claims effective as of
January 14, 2010 between Innoware Plastic and Betina Shearer as in effect on the date hereof, and (ii) the Confidential Separation Agreement and Release of Claims effective as of January 14, 2010 between Innoware Plastic and Charles
Woodward as in effect on the date hereof. 
 “Subsidiary” means, with respect to any Person, any corporation,
limited liability company, partnership, association, or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (ii) if a limited liability
company, partnership, association, or other business entity (other than a corporation), a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or
more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of
such business entity’s gains or losses or shall be or control any managing director or general partner of such business entity (other than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary.

 “Surveys” has the meaning set forth in §7(a) below. 

“Systems” has the meaning set forth in §4(aa) below. 

“Target” has the meaning set forth in the preface above. 

“Target Share” means any share of the common stock, par value $0.001 per share, of Target. 

“Tax” or “Taxes” means any federal, state, local, or foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment,

  

 7 

 
disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 

“Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to
Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
 “Third-Party
Claim” has the meaning set forth in §8(d) below. 
 “Title Commitments” has the meaning set forth
in §7(a) below. 
 “Title Company” has the meaning set forth in §7(a) below. 

“Title Policies” has the meaning set forth in §7(a) below. 

“WARN Act” has the meaning set forth in §4(w) below. 

“Working Capital Holdback” means $500,000 of the Escrow Amount, which Working Capital Holdback will be released in
accordance with §2(g) hereof. 
 §2. Purchase and Sale of Target Shares. 

(a) Basic Transaction. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from Seller, and
Seller agrees to sell to Buyer, all of the Target Shares for the consideration specified below in this §2. 

(b) Preliminary Purchase Price. Buyer agrees to pay to Seller at the Closing (x) $24,000,000, less
(y) the Escrow Amount (such difference, the “Preliminary Purchase Price”) in cash payable by wire transfer or delivery of other immediately available funds. The Preliminary Purchase Price shall be subject to post-Closing
adjustment as set forth below in this §2. Buyer agrees to pay to U.S. Bank National Association, as escrow agent (the “Escrow Agent”), at the Closing the Escrow Amount in cash payable by wire transfer or delivery of other
immediately available funds for deposit into the escrow account (the “Escrow Account”) for a period of twenty-one (21) months after the Closing, provided that the Working Capital Holdback will be released to Seller and/or Buyer
immediately after the Closing Date NWC has been finalized and any amounts due to Buyer under §2(g) have been paid. The Escrow Amount plus any interest accrued thereon will be available to satisfy any amounts owed by Seller to Buyer under
this Agreement in accordance with the terms of the Escrow Agreement attached hereto as Exhibit F. 
 (c) Net Cash
Payment to Seller. Immediately prior to the Closing, InnoWare Plastic may utilize an amount equal to Seller’s good faith estimate of the consolidated Cash of Target and InnoWare Plastic as of the Closing to pay down Indebtedness incurred
under the Senior Credit Agreement that is due from or guaranteed by Target and/or InnoWare Plastic. 
 (d) The Closing.
So long as all conditions to the obligations of the Parties to consummate the transactions contemplated hereby have been satisfied or waived, the closing of the transactions contemplated by this Agreement (the “Closing”) shall
take place at the offices of K&L Gates LLP in Chicago, Illinois on March 31, 2010 and shall be deemed to occur as of 11:59 p.m. on such date (the “Closing Date”), provided that if the conditions to the obligations of
the Parties to consummate the transactions contemplated hereby have not been satisfied or waived prior to 11:59 p.m. on March 31, 2010, the Closing shall take place at 11:59 p.m. on such other date as Buyer and Seller may mutually determine,
and the date upon which the Closing actually occurs shall be the Closing Date. 
 (e) Deliveries at Closing. At the
Closing, (i) Seller will deliver to Buyer the various certificates, instruments, and documents referred to in §7(a) below, (ii) Buyer will deliver to Seller the various 

 

 8 

 
certificates, instruments, and documents referred to in §7(b) below, (iii) Seller will deliver to Buyer one or more stock certificates representing all of the Target Shares, endorsed in
blank or accompanied by duly executed assignment documents, and (iv) Buyer will deliver to Seller the consideration specified in §2(b) above. 

(f) Preparation of Closing Date Balance Sheet. 

(i) Within 60 days after the Closing Date, Buyer will prepare and deliver to Seller a draft
calculation of Net Working Capital (the “Closing Date NWC”) for Target and InnoWare Plastic as of the close of business on the Closing Date (determined on a pro forma basis as though the Parties had not consummated the transactions
contemplated by this Agreement). Section 2(f)(i) of the Disclosure Schedule sets forth the methodology by which the Closing Date NWC shall be calculated. Buyer’s draft calculation of Closing Date NWC will set forth Buyer’s calculation
in sufficient detail to enable Seller to evaluate Buyer’s calculations. 
 (ii) If
Seller has any objections to the Closing Date NWC, it shall deliver a detailed statement describing its objections to Buyer within 60 days after receiving the Closing Date NWC. Buyer and Seller shall use reasonable efforts to resolve any such
objections themselves. If the Parties do not obtain a final resolution within 30 days after Buyer has received the statement of objections, however, Buyer and Seller shall retain a professional with arbitration experience who is a partner with or
otherwise affiliated with Deloitte & Touche (or another accounting firm mutually acceptable to them if Deloitte & Touche has a conflict or is otherwise unavailable) to resolve any remaining objections. If Deloitte & Touche
is unavailable and Buyer and Seller are unable to agree on the choice of an accounting firm within thirty (30) days, they will select a nationally-recognized accounting firm by lot (after excluding their respective regular outside accounting
firms). The determination of any accounting firm so selected shall be set forth in writing and shall be conclusive and binding upon the Parties and not subject to the provisions of §§ 11(o) and 11(p) of this Agreement. Buyer shall revise
the Closing Date NWC as appropriate to reflect the resolution of any objections thereto pursuant to this §2(f)(ii). The “Closing Date NWC” shall mean the Closing Date NWC together with any revisions thereto pursuant to this
§2(f)(ii). 
 (iii) In the event the Parties submit any unresolved objections to an accounting firm for
resolution as provided in §2(f)(ii) above, Buyer and Seller shall share equally the fees and expenses of the accounting firm. 

(g) Adjustment to Preliminary Purchase
Price. If the Closing Date NWC is less than the
Required NWC, Seller shall pay to Buyer an amount equal to such deficiency by wire transfer or delivery of other immediately available funds within 3 business days after the date on which the Closing Date NWC for Target and InnoWare Plastic finally
is determined pursuant to §2(f) above. Any amount due to Buyer under this §2(g) shall be paid, first, through the Escrow Agreement from the Working Capital Holdback and second, to the extent the amount due to Buyer exceeds
the Working Capital Holdback, by wire transfer or delivery of other immediately available funds from Seller to Buyer. To the extent that the amount due Buyer (if any) under this §2(g) is less than the Working Capital Holdback, the balance of
the Working Capital Holdback shall be released to Seller immediately after any amounts due to Buyer under this §2(g) have been paid. 

The Preliminary Purchase Price as so adjusted is referred to herein as the “Purchase Price.” 

 

 9 

 §3. Representations and Warranties Concerning Transaction. 

(a) Seller’s Representations and Warranties. Seller represents and warrants to Buyer that the statements contained in this
§3(a) are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this
§3(a)) with respect to itself, except as set forth in Annex I attached hereto. 
 (i) Organization of
Seller. Seller is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation or formation. 

(ii) Authorization of Transaction. Seller has full power and authority (including full limited liability company
power and authority) to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Seller, enforceable in accordance with its terms and conditions. Seller need
not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. The execution, delivery, and performance
of this Agreement and all other agreements contemplated hereby have been duly authorized by Seller. 
 (iii)
Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government, governmental agency, or court to which Seller is subject or any provision of its charter, bylaws, or other governing documents, (B) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party
or by which it is bound or to which any of its assets are subject, or (C) result in the imposition or creation of a Lien upon or with respect to the Target Shares. 

(iv) Brokers’ Fees. Seller has no Liability to pay any fees or commissions to any broker, finder, or agent
with respect to the transactions contemplated by this Agreement. 
 (v) Target Shares. Seller holds of
record and owns beneficially all of the issued and outstanding Target Shares, free and clear of any restrictions on transfer (other than any restrictions under the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase
rights, contracts, commitments, equities, claims, and demands. Seller is not a party to any option, warrant, purchase right, or other contract or commitment (other than this Agreement) that could require Seller to sell, transfer, or otherwise
dispose of any capital stock of Target. Seller is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any capital stock of Target. 

(b) Buyer’s Representations and Warranties. Buyer represents and warrants to Seller that the statements contained in this
§3(b) are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this
§3(b)), except as set forth in Annex II attached hereto. 
 (i) Organization of Buyer. Buyer is a
corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. 

(ii) Authorization of Transaction. Buyer has full power and authority (including full corporate power and
authority) to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms and conditions. Buyer need not give any
notice 
  

 10 

 
to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. The
execution, delivery, and performance of this Agreement and all other agreements contemplated hereby have been duly authorized by Buyer. 

(iii) Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Buyer is subject
or any provision of its charter, bylaws, or other governing documents or (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or
cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which it is bound or to which any of its assets are subject, except for such violations, conflicts,
breaches, defaults or accelerations that would not reasonably be expected to have a material adverse effect on the timely consummation of the transactions contemplated hereby. 

(iv) Brokers’ Fees. Buyer has no Liability to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which Seller could become liable or obligated. 

(v) Investment. Buyer is not acquiring the Target Shares with a view to or for sale in connection with any
distribution thereof within the meaning of the Securities Act. 
 (vi) Availability of Funds. On the date
hereof, Buyer has available cash or existing available borrowing capacity under committed borrowing facilities, and at the Closing Buyer will have available cash, in each case in an amount sufficient to enable Buyer to consummate the transactions
contemplated herein. Buyer’s obligations hereunder are not contingent upon procuring any financing. 
 §4.
Representations and Warranties Concerning Target and InnoWare Plastic. Seller represents and warrants to Buyer that the statements contained in this §4 are correct and complete as of the date of this Agreement and will be correct and
complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this §4), except as set forth in the disclosure schedule delivered by Seller to Buyer on the date
hereof and attached hereto (the “Disclosure Schedule”). The Disclosure Schedule will be arranged in paragraphs corresponding to the lettered and numbered paragraphs contained in this §4. Certain information is contained in the
Disclosure Schedule solely for information purposes, may not be required to be disclosed pursuant hereto and will not imply that such information or any other information is required to be disclosed. Inclusion of such information will not establish
any level of materiality or similar threshold or be an admission that any of such information is material. Each matter disclosed in any section of the Disclosure Schedule in a manner that makes its relevance to one or more other sections of the
Disclosure Schedule reasonably apparent or obvious on the face of such disclosure will be deemed to have been appropriately included in each such other section of the Disclosure Schedule. 

(a) Organization, Qualification, and Corporate Power. Each of Target and InnoWare Plastic are corporations duly organized, validly
existing, and in good standing under the laws of the jurisdiction of their incorporation. Each of Target and InnoWare Plastic are duly authorized to conduct business and are in good standing under the laws of each jurisdiction where such
qualification is required. Each of Target and InnoWare Plastic have full corporate power and authority and all licenses, permits, and authorizations necessary to carry on the businesses in which they are engaged and in which they presently propose
to engage and to own and use the properties owned and used by them. §4(a) of the Disclosure Schedule lists the directors and officers of Target and InnoWare Plastic. Seller has delivered to Buyer correct and complete copies of the charter and
bylaws for each of Target and InnoWare Plastic (as amended to date). The minute books (containing the records of meetings of the stockholders, the board of directors, and any committees of the board of directors) are complete and correct in all
material respects, and the stock 
  

 11 

 
certificate books and the stock record books for each of Target and InnoWare Plastic are correct and complete. Neither Target nor InnoWare Plastic is in default under or in violation of any
provision of its charter or bylaws. Other than owning all of the issued and outstanding equity securities of InnoWare Plastic, Target engages in no business or operations, has no liabilities, maintains no bank, brokerage or other accounts and
engages in no financial activities. 
 (b) Capitalization. The entire authorized capital stock of Target consists of one
thousand (1,000) Target Shares, of which one hundred (100) Target Shares are issued and outstanding and zero (0) Target Shares are held in treasury. All of the issued and outstanding Target Shares have been duly authorized, are
validly issued, fully paid, and non-assessable, and are held of record by the Seller. There are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or
commitments that could require Target to issue, sell, or otherwise cause to become outstanding any of its capital stock. There are no outstanding or authorized stock appreciation, phantom stock, profit participation, or similar rights with respect
to Target. There are no voting trusts, proxies, or other agreements or understandings with respect to the voting of the capital stock of Target. 

(c) Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated
hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which any of Target or InnoWare Plastic is
subject or any provision of the charter or bylaws of any of Target or InnoWare Plastic or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any consent or notice under any agreement, contract, lease, license, instrument, or other arrangement to which any of Target or InnoWare Plastic is a party or by which it is bound or to which any of its
assets is subject (or result in the imposition of any Lien upon any of its assets). Neither Target nor InnoWare Plastic needs to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or
governmental agency in order for the Parties to consummate the transactions contemplated by this Agreement. 
 (d)
Brokers’ Fees. Neither Target nor InnoWare Plastic has any Liability to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement. 

(e) Title to Tangible Assets. Target and InnoWare Plastic have good and marketable title to, or in the case of any properties or
assets identified as leased in the Disclosure Schedule, a valid leasehold interest in, the tangible properties and assets used by them, located on their premises, or shown on the Most Recent Balance Sheet or acquired after the date thereof, free and
clear of all Liens, except Permitted Encumbrances, and except for properties and assets disposed of in the Ordinary Course of Business since the date of the Most Recent Balance Sheet. For the avoidance of doubt, Seller will obtain releases, or cause
Target or InnoWare Plastic to obtain releases, of any mortgage or other security interest encumbering the Owned Real Property, whether or not such mortgages are reflected as exceptions in the Historic Title Insurance Policies. 

(f) Subsidiaries. InnoWare Plastic is the only Subsidiary of Target. §4(f) of the Disclosure Schedule sets forth for InnoWare
Plastic (i) its name, jurisdiction of incorporation, and each jurisdiction in which it is qualified to transact business, (ii) the number of authorized shares for each class of its capital stock, (iii) the number of issued and
outstanding shares of each class of its capital stock, the names of the holders thereof, and the number of shares held by each such holder, and (iv) the number of shares of its capital stock held in treasury. All of the issued and outstanding
shares of capital stock of InnoWare Plastic have been duly authorized and are validly issued, fully paid, and non-assessable. Target holds of record and owns beneficially all of the outstanding shares of InnoWare Plastic, free and clear of any
restrictions on transfer (other than restrictions under the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. There are no outstanding or authorized
options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require Target to sell, transfer, or otherwise 

 

 12 

 
dispose of any capital stock of InnoWare Plastic or that could require InnoWare Plastic to issue, sell, or otherwise cause to become outstanding any of its own capital stock. There are no
outstanding stock appreciation, phantom stock, profit participation, or similar rights with respect to InnoWare Plastic. There are no voting trusts, proxies, or other agreements or understandings with respect to the voting of any capital stock of
InnoWare Plastic. Neither Target nor InnoWare Plastic controls directly or indirectly or has any direct or indirect equity participation in any other corporation, partnership, trust, or other business association. Except for Target’s ownership
of InnoWare Plastic, neither Target nor InnoWare Plastic owns or has any right to acquire, directly or indirectly, any outstanding capital stock of, or other equity interests in, any Person. 

(g) Financial Statements. Attached hereto as Exhibit B are the following financial statements (collectively the
“Financial Statements”): (i) audited balance sheets and statements of income, changes in stockholders’ equity, and cash flow as of and for the four months ended December 31, 2006, and the fiscal years ended
December 31, 2007, December 31, 2008 and December 31, 2009 (the “Most Recent Fiscal Year End”) for InnoWare Plastic; and (ii) unaudited balance sheets and statements of income, changes in stockholders’
equity, and cash flow (the “Most Recent Financial Statements”) as of and for the two months ended February 28, 2010 (the “Most Recent Fiscal Month End”) for InnoWare Plastic. The Financial Statements (including
the notes thereto) have been prepared in accordance with GAAP throughout the periods covered thereby, and present fairly the financial condition of InnoWare Plastic as of such dates and the results of operations and cash flows of InnoWare Plastic
for such periods; provided, however, that the Most Recent Financial Statements are subject to normal year-end adjustments (the effect of which will not individually or in the aggregate be material) and lack footnotes. The Financial Statements fairly
present the financial condition and results of operations for Target and InnoWare Plastic. 
 (h) Events Subsequent to Most
Recent Fiscal Year End. Since the Most Recent Fiscal Year End, there has not been any Material Adverse Change. Without limiting the generality of the foregoing, since that date: 

(i) neither Target nor InnoWare Plastic has sold, leased, transferred, or assigned any of its assets, tangible or
intangible, other than for a fair consideration in the Ordinary Course of Business; 
 (ii) neither Target nor
InnoWare Plastic has entered into any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) either involving more than $50,000 or outside the Ordinary Course of Business; 

(iii) no party (including Target and InnoWare Plastic) has accelerated, terminated, modified, or cancelled any agreement,
contract, lease, or license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which Target or InnoWare Plastic is a party or by which any of them is bound; 

(iv) neither Target nor InnoWare Plastic has taken any action to manage Net Working Capital that is outside of the
Ordinary Course of Business; 
 (v) neither Target nor InnoWare Plastic has imposed any Liens upon any of its
assets, tangible or intangible; 
 (vi) neither Target nor InnoWare Plastic has made any capital expenditure (or
series of related capital expenditures) either involving more than $50,000 or outside the Ordinary Course of Business (other than capital expenditures listed in Exhibit A that represent the Cap Ex Adjustment); 

(vii) neither Target nor InnoWare Plastic has made any capital investment in, any loan to, or any acquisition of the
securities or assets of, any other Person (or series of related capital investments, loans, and acquisitions) to an Affiliate or outside the Ordinary Course of Business; 
  

 13 

 (viii) neither Target nor InnoWare Plastic has become subject to any
Indebtedness outside the Ordinary Course of Business or otherwise in excess of $50,000; 
 (ix) neither Target
nor InnoWare Plastic has delayed or postponed the payment of accounts payable and other obligations outside the Ordinary Course of Business; 

(x) neither Target nor InnoWare Plastic has cancelled, compromised, waived, or released any right or claim (or series of
related rights and claims) either involving more than $5,000 or outside the Ordinary Course of Business; 
 (xi)
neither Target nor InnoWare Plastic has transferred, assigned, or granted any license or sublicense of any rights under or with respect to any Intellectual Property; 

(xii) there has been no change made or authorized in the charter or bylaws of any of Target and InnoWare Plastic;

 (xiii) neither Target nor InnoWare Plastic has issued, sold, or otherwise disposed of any of its capital
stock, or granted any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of its capital stock; 

(xiv) neither Target nor InnoWare Plastic has declared, set aside, or paid any dividend or made any distribution with
respect to its capital stock (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of its capital stock; 

(xv) neither Target nor InnoWare Plastic has experienced any damage, destruction, or loss (whether or not covered by
insurance) to its property with a loss value or replacement cost of $100,000 or more; 
 (xvi) neither Target nor
InnoWare Plastic has made any loan to, or entered into any other transaction with, any of its directors, officers, and employees outside the Ordinary Course of Business; 

(xvii) neither Target nor InnoWare Plastic has entered into or terminated any employment contract or collective bargaining
agreement, written or oral, or modified the terms of any existing such contract or agreement; 
 (xviii) neither
Target nor InnoWare Plastic has granted any material increase in the base compensation of any of its directors, officers or other employees; 

(xix) except as disclosed in the Disclosure Schedule, neither Target nor InnoWare Plastic has adopted, amended, modified,
or terminated any bonus, profit sharing, incentive, severance, or other plan, contract, or commitment for the benefit of any of its directors, officers, and employees (or taken any such action with respect to any other Employee Benefit Plan), nor
granted any bonuses or other direct or indirect compensation outside the Ordinary Course of Business; 
 (xx)
neither Target nor InnoWare Plastic has made any other change in employment terms for any of its directors, officers, and employees outside the Ordinary Course of Business; 

(xxi) neither Target nor InnoWare Plastic has made or pledged to make any charitable or other capital contribution outside
the Ordinary Course of Business; 
 (xxii) there has not been any other material occurrence, event, incident,
action, failure to act, or transaction outside the Ordinary Course of Business involving Target or InnoWare Plastic; 
  

 14 

 (xxiii) other than the payment to be made pursuant to §2(c), neither
Target nor InnoWare Plastic has discharged a material Liability or Lien outside the Ordinary Course of Business; 

(xxiv) neither Target nor InnoWare Plastic has made any loans or advances of money or otherwise incurred any Indebtedness;

 (xxv) neither Target nor InnoWare Plastic has disclosed any Confidential Information to any Person other than
to Buyer, its Affiliates, directors, officers, employees, agents, accountants and other representatives; 

(xxvi) neither Target nor InnoWare Plastic has disposed of any asset or otherwise taken any action that would materially
impair the operation of the business of Target and InnoWare Plastic; and 
 (xxvii) neither Target nor InnoWare
Plastic has committed to any of the foregoing. 
 (i) Undisclosed Liabilities. Neither Target nor InnoWare Plastic has
any Liability that would be required to be reflected on a balance sheet that is prepared in accordance with GAAP, or that would be required to be disclosed, reflected on or otherwise described in the Financial Statements or any notes thereto in
accordance with GAAP or loss contingencies as defined in Statement of Financial Accounting Standards No. 5 (“FAS 5”) that are not required to be included in a balance sheet that is prepared in accordance with GAAP because the Target
and/or InnoWare Plastic have made a determination that the amount of loss cannot be reasonably estimated (within the meaning of FAS 5) (and, to Seller’s Knowledge, there is no Basis for any such Liability), except for (i) Liabilities set
forth on the face of the Most Recent Balance Sheet (and in any notes thereto); (ii) Liabilities that have arisen after the Most Recent Fiscal Month End in the Ordinary Course of Business (none of which results from, arises out of, relates to,
is in the nature of, or was caused by any breach of contract, breach of warranty, tort, infringement, or violation of law); (iii) Liabilities incurred in connection with the transactions contemplated hereby, all of which will be paid or
satisfied by the Seller; and (iv) Liabilities which relate to matters disclosed with reasonable specificity in the Disclosure Schedule. 

(j) Legal Compliance. Each of Target, InnoWare Plastic, and their respective Affiliates have complied with all applicable laws
(including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder and including the Foreign Corrupt Practices Act, 15 U.S.C. 78dd-1 et seq.) of federal, state, local, and foreign governments
(and all agencies thereof), other than failures to comply which would not, individually or in the aggregate, be reasonably expected to cause a Material Adverse Effect, and no action, suit, proceeding, hearing, investigation, charge, complaint,
claim, demand, or notice has been filed or commenced against any of them alleging any failure so to comply. 
 (k) Tax
Matters. 
 (i) Since the Acquisition Date, each of Target and InnoWare Plastic have filed all Tax Returns
that they were required to file under applicable laws and regulations. All such Tax Returns were correct and complete in all material respects and were prepared in substantial compliance with all applicable laws and regulations. All Taxes due and
owing by Target or InnoWare Plastic (whether or not shown on any Tax Return) have been paid. Except as disclosed in Section 4(k)(iii) of the Disclosure Schedule, neither Target nor InnoWare Plastic currently is the beneficiary of any extension
of time within which to file any Tax Return. The extensions described in Section 4(k)(iii) of the Disclosure Schedule include extensions for all Tax Returns due after the Closing Date and prior to April 30, 2010 that are extendable in
accordance with applicable laws and regulations. Section 4(k)(iii) of the Disclosure Schedule lists all Tax Returns that are due after the Closing Date and prior to April 30, 2010 that are not extendable under applicable laws and
regulations. No claim has been made since the Acquisition Date by an authority in a jurisdiction where Target or InnoWare Plastic does not file Tax Returns that Target 

 

 15 

 
or InnoWare Plastic is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of Target or InnoWare
Plastic. 
 (ii) Each of Target and InnoWare Plastic have withheld and paid all Taxes required to have been
withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party. 

(iii) No foreign, federal, state, or local tax audits or administrative or judicial Tax proceedings are pending or, to
Seller’s knowledge, being conducted with respect to Target or InnoWare Plastic. Since the Acquisition Date, neither Target nor InnoWare Plastic has received from any foreign, federal, state, or local taxing authority (including jurisdictions
where Target or InnoWare Plastic have not filed Tax Returns) any written (i) notice indicating an intent to open an audit or other review, (ii) request for information related to tax matters, or (iii) notice of deficiency or proposed
adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority against Target or InnoWare Plastic. §4(k)(iii) of the Disclosure Schedule lists all federal, state, local, and foreign income Tax Returns filed with
respect to Target or InnoWare Plastic for taxable periods ended on or after December 31, 2006, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of audit. Seller has delivered to
Buyer correct and complete copies of all federal income Tax Returns, examination reports, work papers related to the preparation of such Tax Returns and statements of deficiencies assessed against or agreed to by Target or InnoWare Plastic filed or
received since December 31, 2006. 
 (iv) Neither Target nor InnoWare Plastic has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. 

(v) Neither Target nor InnoWare Plastic is a party to any agreement, contract, arrangement or plan that has resulted or
could result, separately or in the aggregate, in the payment of (i) any “excess parachute payment” within the meaning of Code §280G (or any corresponding provision of state, local or foreign Tax law) and (ii) any amount that
will not be fully deductible as a result of Code §162(m) (or any corresponding provision of state, local or foreign Tax law). Neither Target nor InnoWare Plastic has been a United States real property holding corporation within the meaning of
Code §897(c)(2) during the applicable period specified in Code §897(c)(1)(A)(ii). Each of Target and InnoWare Plastic has disclosed on their federal income Tax Returns all positions taken therein that could give rise to a substantial
understatement of federal income Tax within the meaning of Code §6662. Neither Target nor InnoWare Plastic is a party to or bound by any Tax allocation or sharing agreement. Neither Target nor InnoWare Plastic (A) has been a member of an
Affiliated Group filing a consolidated federal income Tax Return (other than a group the common parent of which was Target) or (B) has any liability for the Taxes of any Person (other than Target or InnoWare Plastic) under Treasury Regulation
§1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise. 

(vi) The unpaid Taxes of Target and InnoWare Plastic (A) did not, as of the Most Recent Fiscal Month End, exceed the
reserve for Tax liability (rather than any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) and (B) do
not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Target and InnoWare Plastic in filing their Tax Returns. Since the date of the Most Recent Balance Sheet, neither
Target nor InnoWare Plastic has incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the Ordinary Course of Business consistent with past custom and practice. 

 

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 (vii) Neither Target nor InnoWare Plastic will be required to include any
item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending on or after the Closing Date as a result of any: 

(A) change in method of accounting for a taxable period ending on or prior to the Closing Date; 

(B) “closing agreement” as described in Code §7121 (or any corresponding or similar provision of state,
local or foreign income Tax law) executed on or prior to the Closing Date; 
 (C) intercompany transaction or
excess loss account described in Treasury Regulations under Code §1502 (or any corresponding or similar provision of state, local or foreign income Tax law); 

(D installment sale or open transaction disposition made on or prior to the Closing Date; or 

(E) prepaid amount received on or prior to the Closing Date. 

(viii) Neither Target nor InnoWare Plastic has distributed stock of another Person, or has had its stock distributed by
another Person, in a transaction that was purported or intended to be governed in whole or in part by Code §355 or Code §361. 

(ix) Neither Target nor InnoWare Plastic is or has been a party to any “reportable transaction,” as defined in
Code §6707A(c)(1) and Treasury Regulation §1.6011-4(b). 
 (x) Seller has not taken a worthless stock
loss with respect to the stock of Target. Target has not taken a worthless stock loss with respect to the stock of InnoWare Plastic. The Target has no excess loss accounts or any other deferred gain or loss with respect to the stock of InnoWare
Plastic. There has been no “ownership change” within the meaning of Section 382 with respect to Target or InnoWare Plastic, or any other event that would restrict the availability of InnoWare Plastic’s net operating losses, since
the Acquisition Date. Prior to the contemplated cancellation of approximately $18.9 million of debt on the Closing Date, neither Target nor InnoWare Plastic has been the beneficiary of any discharge of indebtedness or has reduced any tax attribute
pursuant to Section 108 of the Code. At December 31, 2009, the aggregate basis for federal income Tax purposes of the assets of InnoWare Plastic, other than cash and cash equivalents, was not less than $28 million. The representation in
the preceding sentence assumes that InnoWare Plastic will elect for 2009 to take advantage of all available bonus and other accelerated depreciation. 

(l) Real Property. 

(i) §4(l)(i) of the Disclosure Schedule sets forth the address and description of each parcel of Owned Real Property
and lists the Historic Title Insurance Policies. With respect to each parcel of Owned Real Property: 
 (A)
Target or InnoWare Plastic has good and marketable title, free and clear of all Liens, except Permitted Encumbrances; 

(B) except for Permitted Encumbrances and except as set forth in §4(l)(i)(B) of the Disclosure Schedule, neither
Target nor InnoWare Plastic has leased or otherwise granted to any Person the right to use or occupy such Owned Real Property or any portion thereof; and 
  

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 (C) other than the right of Buyer pursuant to this Agreement, there are no
outstanding options, rights of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein. 

(ii) §4(l)(ii) of the Disclosure Schedule sets forth the address of each parcel of Leased Real Property, and a true
and complete list of all Leases for each such Leased Real Property (including the date and name of the parties to such Lease document). Target has made available to Buyer in the Seller’s on-line data room a true and complete copy of each such
Lease document, and in the case of any oral Lease, a written summary of the material terms of such Lease. Except as set forth in §4(l)(ii) of the Disclosure Schedule, with respect to each of the Leases: 

(A) such Lease is legal, valid, binding, enforceable and in full force and effect; 

(B) the transactions contemplated by this Agreement do not require the consent of any other party to such Lease (except
for those Leases for which Lease Consents (as hereinafter defined) are obtained), will not result in a breach of or default under such Lease, and will not otherwise cause such Lease to cease to be legal, valid, binding, enforceable and in full force
and effect on identical terms following the Closing; 
 (C) neither Target’s nor InnoWare Plastic’s
possession and quiet enjoyment of the Leased Real Property under such Lease has been disturbed and, to Seller’s Knowledge, there are no disputes with respect to such Lease; 

(D) neither Target nor InnoWare Plastic, nor, to Seller’s Knowledge, any other party to the Lease is in breach of or
default under such Lease, and, to Seller’s Knowledge, no event has occurred or circumstance exists that, with the delivery of notice, the passage of time or both, would constitute such a breach or default, or permit the termination,
modification or acceleration of rent under such Lease; 
 (E) to Seller’s Knowledge, no security deposit or
portion thereof deposited with respect to such Lease has been applied in respect of a breach of or default under such Lease that has not been redeposited in full; 

(F) neither Target nor InnoWare Plastic owes, or will owe in the future, any brokerage commissions or finder’s fees
with respect to such Lease; 
 (G) the other party to such Lease is not an Affiliate of, and otherwise does not
have any economic interest in, Target or InnoWare Plastic; 
 (H) neither Target nor InnoWare Plastic has
subleased, licensed or otherwise granted any Person the right to use or occupy the Leased Real Property or any portion thereof; 

(I) neither Target nor InnoWare Plastic has collaterally assigned or granted any other Lien in such Lease or any interest
therein; and 
 (J) there are no Liens on the estate or interest created by such Lease. 

(iii) The Owned Real Property identified in §4(l)(i) of the Disclosure Schedule and the Leased Real Property
identified in §4(l)(ii) of the Disclosure Schedule (collectively, the “Real Property”), comprise all of the real property used or intended to be used in, or otherwise related to, Target’s and InnoWare Plastic’s
business; and neither Target nor InnoWare Plastic is a party to any agreement or option to purchase any real property or interest therein. 
  

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 (iv) To Seller’s Knowledge, all buildings, structures, fixtures,
building systems and equipment, and all components thereof, including the roof, foundation, load-bearing walls and other structural elements thereof, heating, ventilation, air conditioning, mechanical, electrical, plumbing and other building
systems, environmental control, remediation and abatement systems, sewer, storm and waste water systems, irrigation and other water distribution systems, parking facilities, fire protection, security and surveillance systems, and telecommunications,
computer, wiring and cable installations, included in the Real Property that are material to the operation of InnoWare Plastic’s business (the “Improvements”) are in good condition and repair (subject to ordinary wear and tear)
and sufficient for Target’s and InnoWare Plastic’s business as currently operated. To Seller’s Knowledge, there are no structural deficiencies or latent defects affecting any of the Improvements and there are no facts or conditions
affecting any of the Improvements that would, individually or in the aggregate, interfere in any material respect with the use or occupancy of the Improvements or any portion thereof in the operation of Target’s or its Subsidiaries’
business as currently conducted thereon. 
 (v) There is no condemnation, expropriation or other proceeding in
eminent domain, pending or, to Seller’s Knowledge, threatened, affecting any parcel of Owned Real Property or any portion thereof or interest therein and to Seller’s Knowledge there is no such proceeding pending or threatened with respect
to the Leased Real Property. There is no injunction, decree, order, writ or judgment outstanding, or any claim, litigation, administrative action or similar proceeding, pending or, to Seller’s Knowledge, threatened, relating to the ownership,
lease, use or occupancy of the Owned Real Property or any portion thereof (or, to Seller’s Knowledge, of the Leased Real Property), or the operation of Target’s or InnoWare Plastic’s business as currently conducted thereon.

 (vi) The Owned Real Property, and to Seller’s Knowledge the Leased Real Property, is in compliance in all
material respects with all applicable building, zoning, subdivision, health and safety and other land use laws, including the Americans with Disabilities Act of 1990, as amended, and all insurance requirements affecting the Real Property
(collectively, the “Real Property Laws”), and the current use and occupancy of the Owned Real Property and operation of Target’s and InnoWare Plastic’s business thereon do not violate in any material respect any Real
Property Laws. Neither Target nor InnoWare Plastic has received any notice of violation of any Real Property Law and to Seller’s Knowledge there is no Basis for the issuance of any such notice or the taking of any action for such violation. To
Seller’s Knowledge, there is no pending or anticipated change in any Real Property Law that will materially impair the ownership, lease, use or occupancy of any Real Property or any portion thereof in the continued operation of InnoWare
Plastic’s business as currently conducted thereon. 
 (vii) To Seller’s Knowledge, none of the
Improvements or any portion thereof is dependent for its access, use or operation on any land, building, improvement or other real property interest that is not included in the Real Property. To Seller’s Knowledge, all water, oil, gas,
electrical, steam, compressed air, telecommunications, sewer, storm and waste water systems and other utility services or systems for the Real Property have been installed and are operational and sufficient for the operation of Target’s or
InnoWare Plastic’s business as currently conducted thereon. To Seller’s Knowledge, each such utility service enters the Real Property from an adjoining public street or valid private easement in favor of the supplier of such utility
service or appurtenant to such Real Property, and is not dependent for its access, use or operation on any land, building, improvement or other real property interest that is not included in the Real Property. 

(viii) To Seller’s Knowledge, all certificates of occupancy, permits, licenses, franchises, approvals and
authorizations (collectively, the “Real Property Permits”) of all governmental authorities, boards of fire underwriters, associations or any other entity having jurisdiction over the Real Property that are required or appropriate to
use or occupy the Real Property or operate Target’s or InnoWare Plastic’s business as currently conducted thereon, have been issued and are in full force and effect. §4(l)(ix) of the Disclosure Schedule lists all material

  

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Real Property Permits held by Target or InnoWare Plastic with respect to each parcel of Real Property. Target has made available to Buyer a true and complete copy of all Real Property Permits in
its possession. Neither Target nor InnoWare Plastic has received any notice from any governmental authority or other entity having jurisdiction over the Real Property threatening a suspension, revocation, modification or cancellation of any Real
Property Permit and, to Seller’s Knowledge, there is no Basis for the issuance of any such notice or the taking of any such action. The Real Property Permits are transferable to Buyer without the consent or approval of the issuing governmental
authority or entity; no disclosure, filing or other action by Target or InnoWare Plastic is required in connection with such transfer; and Buyer shall not be required to assume any additional liabilities or obligations under the Real Property
Permits as a result of such transfer. 
 (ix) To Seller’s Knowledge, the classification of each parcel of
Real Property under applicable zoning laws, ordinances and regulations permits the use and occupancy of such parcel and the operation of Target’s and InnoWare Plastic’s business as currently conducted thereon, and permits the Improvements
located thereon as currently constructed, used and occupied. To Seller’s Knowledge, there are sufficient parking spaces, loading docks and other facilities at such parcel to comply with such zoning laws, ordinances and regulations.
Target’s and InnoWare Plastic’s use or occupancy of the Real Property or any portion thereof or the operation of Target’s or InnoWare Plastic’s business as currently conducted thereon is not dependent on a “permitted
non-conforming use” or “permitted non-conforming structure” or similar variance, exemption or approval from any governmental authority. 

(x) To Seller’s Knowledge, the current use and occupancy of the Real Property and the operation of Target’s and
InnoWare Plastic’s business as currently conducted thereon do not violate any easement, covenant, condition, restriction or similar provision in any instrument of record or other unrecorded agreement affecting such Owned Real Property (the
“Encumbrance Documents”). None of Seller, Target, or InnoWare Plastic has received any notice of violation of any Encumbrance Documents, and, to Seller’s Knowledge, there is no Basis for the issuance of any such notice or the
taking of any action for such violation. 
 (xi) To Seller’s Knowledge, each parcel of Owned Real Property
is a separate lot for real estate tax and assessment purposes, and no other real property is included in such tax parcel. There are no Taxes, assessments, fees, charges or similar costs or expenses imposed by any governmental authority, association
or other entity having jurisdiction over the Real Property (collectively, the “Real Estate Impositions”) with respect to any Real Property or portion thereof that are delinquent. There is no pending or to Seller’s Knowledge
threatened increase or special assessment or reassessment of any Real Estate Impositions for such parcel. 

(xiii) To Seller’s Knowledge, none of the Real Property or any portion thereof is located in a flood hazard area (as
defined by the Federal Emergency Management Agency). 
 (m) Intellectual Property. 

(i) Target and InnoWare Plastic own and possess or have the right to use pursuant to a valid and enforceable written
license, sublicense, agreement, or permission all material Intellectual Property necessary or desirable for the operation of the business of Target and InnoWare Plastic as presently conducted and as presently proposed to be conducted by Target or
InnoWare Plastic. Each item of Intellectual Property owned or used by Target or InnoWare Plastic immediately prior to the Closing will be owned or available for use by Target or InnoWare Plastic on identical terms and conditions immediately
subsequent to the Closing without additional payments (other than continuing license fees that are required under the intellectual property agreements listed in the Disclosure Schedule or future maintenance payments) by InnoWare Plastic or the
Buyer. Each of Target and InnoWare Plastic has taken reasonably prudent actions to maintain and protect each item of Intellectual Property that they own or use. 
  

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 (ii) Neither Target nor InnoWare Plastic has interfered with, infringed
upon, misappropriated, or otherwise come into conflict with any Intellectual Property rights of third parties, and none of Seller and the directors and officers (and employees with responsibility for Intellectual Property matters) of Target or
InnoWare Plastic has received any charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, or violation (including any claim that Target or InnoWare Plastic must license or refrain from using any
Intellectual Property rights of any third party). Neither Target nor InnoWare Plastic has engaged in false marking in violation of 35 U.S.C. §292. To the Knowledge of Seller, no third party has interfered with, infringed upon, misappropriated,
or otherwise come into conflict with any Intellectual Property rights of Target or InnoWare Plastic. 
 (iii)
§4(m)(iii) of the Disclosure Schedule identifies each patent or registration that is owned by Target or InnoWare Plastic with respect to any of its Intellectual Property, identifies each pending patent application or application for
registration that Target or InnoWare Plastic has made with respect to any of its Intellectual Property, and identifies each license, sublicense or agreement (other than Routine IP Agreements) that Target or InnoWare Plastic has granted to any third
party with respect to any of its Intellectual Property (together with any exceptions). Seller has delivered to Buyer correct and complete (where practicable) copies of all such patents, registrations, applications, licenses, sublicenses, and
agreements (as amended to date). §4(m)(iii) of the Disclosure Schedule also identifies each unregistered trademark, service mark, trade name, corporate name or Internet domain name, computer software item (other than commercially available
off-the-shelf software purchased or licensed for less than a total cost of $1,000 in the aggregate) and each material unregistered copyright used by Target or InnoWare Plastic in connection with any of its businesses. With respect to each item of
Intellectual Property required to be identified in §4(m)(iii) of the Disclosure Schedule: 
 (A) Target and
InnoWare Plastic own and possess all right, title, and interest in and to the item, free and clear of any Lien, license, or other restriction or limitation regarding use or disclosure; 

(B) the item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 

(C) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to
Seller’s Knowledge, threatened that challenges the legality, validity, enforceability, use, or ownership of the item and the Seller has no Knowledge of any Basis for such a challenge; 

(D) neither Target nor InnoWare Plastic has ever agreed to indemnify any Person for or against any interference,
infringement, misappropriation, or other conflict with respect to the item; and 
 (E) the item is valid and
subsisting and no loss or expiration of the item is threatened, pending, or reasonably foreseeable, except for patents expiring at the end of their statutory terms (and not as a result of any act or omission by Seller, Target, or InnoWare Plastic,
including without limitation, a failure by Seller, Target, or InnoWare Plastic to pay any required maintenance fees). 

(iv) §4(m)(iv) of the Disclosure Schedule identifies each item of Intellectual Property that any third party owns and
that Target or InnoWare Plastic uses pursuant to license, sublicense, or agreement (other than Routine IP Agreements). Seller has delivered to Buyer correct and complete copies of all such licenses, sublicenses, and agreements (each as amended to
date). With respect to each item of Intellectual Property required to be identified in §4(m)(iv) of the Disclosure Schedule: 

(A) the license, sublicense, or agreement covering the item is legal, valid, binding, enforceable, and in full force and
effect; 
  

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 (B) the license, sublicense, or agreement will continue to be legal, valid,
binding, enforceable, and in full force and effect on identical terms following consummation of the transactions contemplated hereby; 

(C) neither Target nor InnoWare Plastic nor, to Seller’s Knowledge, any other party to the license, sublicense, or
agreement is in breach or default, and no event has occurred that with notice or lapse of time would constitute a breach or default or permit termination, modification, or acceleration thereunder; 

(D) neither Target nor InnoWare Plastic nor, to Seller’s Knowledge, any other party to the license, sublicense,
agreement, or permission has repudiated any provision thereof; 
 (E) with respect to each sublicense, the
representations and warranties set forth in subsections (A) through (D) above are true and correct with respect to the underlying license; 

(F) the underlying item of Intellectual Property is not subject to any outstanding injunction, judgment, order, decree,
ruling, or charge created by Seller, Target or InnoWare Plastic or, to Seller’s Knowledge, created by any other party; 

(G) to Seller’s Knowledge, no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand
is pending or threatened that challenges the legality, validity, or enforceability of the underlying item of Intellectual Property, and to Seller’s Knowledge there is no Basis for the same; and 

(H) neither Target nor InnoWare Plastic has granted any sublicense or similar right with respect to the license,
sublicense, agreement, or permission. 
 (v) (A) neither Target nor InnoWare Plastic has in the past nor will it
interfere with, infringe upon, misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third parties as a result of the continued operation of its business as presently conducted and as presently proposed to be
conducted by Target or InnoWare Plastic; (B) to Seller’s Knowledge, there is no Basis for any of the foregoing; and/or (C) no notices regarding any of the foregoing (including, without limitation, any demands or offers to license any
Intellectual Property from any third party) have been received. 
 (vi) Target and InnoWare Plastic have taken
all reasonably prudent actions to maintain and protect all of the Intellectual Property of Target and InnoWare Plastic and will continue to maintain and protect all of the Intellectual Property of Target and InnoWare Plastic prior to Closing so as
not to adversely affect the validity or enforceability thereof. To the Knowledge of Seller, the owners of any of the Intellectual Property licensed to Target and InnoWare Plastic have taken all reasonably prudent actions to maintain and protect the
Intellectual Property covered by such license. A list of all reasonably prudent actions to maintain and protect the Intellectual Property as described in this paragraph and required to be taken within 120 days following the Closing Date is set forth
in §4(m)(vii) of the Disclosure Schedule. 
 (viii) InnoWare Plastic has complied with and is presently in
compliance in all material respects with all foreign, federal, state, local, governmental (including, but not limited to, the Federal Trade Commission and State Attorneys General), administrative or regulatory laws, regulations, guidelines and rules
applicable to any Intellectual Property and Seller shall take all steps necessary to ensure such compliance in all material respects until Closing. 
  

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 (n) Tangible Assets. Target and InnoWare Plastic own or lease all buildings,
machinery, equipment, and other tangible assets necessary for the conduct of their business as presently conducted and as presently proposed to be conducted. Each such tangible asset is free from material defects (patent and latent), has been
maintained in accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it presently is used and presently is proposed to be used by Target or
InnoWare Plastic. 
 (o) Inventory. The inventory of Target and InnoWare Plastic consists of raw materials (including
regrind resin offal) and supplies, manufactured and purchased parts, goods in process, and finished goods, all of which is merchantable and fit for the purpose for which it was procured or manufactured, and none of which is known to be slow-moving,
obsolete, damaged, or defective, subject only to the reserve for inventory writedown set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance
with the past custom and practice of Target and InnoWare Plastic. 
 (p) Contracts. §4(p) of the Disclosure Schedule
lists the following contracts and other agreements to which Target or InnoWare Plastic is a party: 
 (i) any
agreement (or group of related agreements) for the lease of personal property to or from any Person providing for lease payments in excess of $40,000 per annum; 

(ii) any agreement (or group of related agreements) for the purchase or sale of raw materials, commodities, supplies,
products, or other personal property, or for the furnishing or receipt of services, the performance of which will extend over a period of more than 1 year, result in a material loss to Target or InnoWare Plastic, or involve consideration in excess
of $40,000; 
 (iii) any agreement concerning a partnership or joint venture; 

(iv) any agreement (or group of related agreements) under which it has created, incurred, assumed, or guaranteed any
Indebtedness, in excess of $10,000 or under which it has imposed a Lien on any of its assets, tangible or intangible; 

(v) any agreement imposing confidentiality, exclusivity or non-competition obligations on Target or InnoWare Plastic;

 (vi) any agreement with Seller and its Affiliates (other than Target and InnoWare Plastic); 

(vii) any profit sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance, or other
plan or arrangement for the benefit of its current or former directors, officers, and employees; 
 (viii) any
collective bargaining agreement; 
 (ix) any agreement for the employment of any individual on a full-time,
part-time, consulting, or other basis providing annual base salary in excess of $150,000 or providing severance benefits; 

(x) any agreement under which it has advanced or loaned any amount to any of its directors, officers, and employees
outside the Ordinary Course of Business; 
 (xi) any agreement under which the consequences of a default or
termination would reasonably be expected to have a Material Adverse Effect; 
 (xii) any agreement under which it
has granted any Person any registration rights (including, without limitation, demand and piggyback registration rights); 
  

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 (xiii) any settlement, conciliation or similar agreement, the performance of
which will involve payment after the Most Recent Fiscal Month End of consideration in excess of $20,000, or imposition of monitoring or reporting obligations to any Governmental Entity outside the ordinary course of business; or 

(xiv) any agreement under which Target or InnoWare Plastic has advanced or loaned any other Person amounts in the
aggregate exceeding $5,000. 
 Seller has delivered to Buyer a correct and complete copy of each written agreement (as amended to date) listed
in §4(p) of the Disclosure Schedule and a written summary setting forth the terms and conditions of each oral agreement referred to in §4(p) of the Disclosure Schedule. With respect to each such agreement: (A) the agreement is legal,
valid, binding, enforceable, and in full force and effect; (B) the agreement will continue to be legal, valid, binding, enforceable, and in full force and effect on identical terms following the consummation of the transactions contemplated
hereby; (C) neither Seller nor Target nor InnoWare Plastic is in breach or default, and to Seller’s Knowledge, no other party is in breach or default, and no event has occurred that with notice or lapse of time would constitute a breach or
default, in each case that would reasonably be expected to result in materially adverse consequences to Target or InnoWare Plastic, or permit termination, modification, or acceleration, under the agreement; and (D) no party has repudiated any
provision of the agreement. 
 (q) Notes and Accounts Receivable. All notes and accounts receivable of Target and
InnoWare Plastic are reflected properly on their books and records, are valid receivables subject to no setoffs or counterclaims, and InnoWare Plastic has established a reserve for bad debts in accordance with GAAP set forth on the face of the
balance sheet for the Most Recent Fiscal Month End (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Target and InnoWare Plastic. 

(r) Powers of Attorney. Except as set forth on §4(r) of the Disclosure Schedule, there are no outstanding powers of attorney
executed on behalf of Target or InnoWare Plastic. 
 (s) Insurance. §4(s) of the Disclosure
Schedule sets forth the following information with respect to each insurance policy (including policies providing property, casualty, liability, and workers’ compensation coverage and bond and surety arrangements) to which Target or InnoWare
Plastic has been a party, a named insured, or otherwise the beneficiary of coverage at any time since the Acquisition Date:  

(i) the name, address, and telephone number of the agent; 

(ii) the name of the insurer, the name of the policyholder, and the name of each covered insured; 

(iii) the policy number and the period of coverage; 

(iv) the scope (including an indication of whether the coverage was on a claims made, occurrence, or other basis) and
amount (including a description of how deductibles and ceilings are calculated and operate) of coverage; and 

(v) a description of any retroactive premium adjustments or other loss-sharing arrangements. 

With respect to each such insurance policy: (A) the policy is legal, valid, binding, enforceable, and in full force and effect; (B) neither
Target, nor InnoWare Plastic, nor any other party to the policy is in breach or default (including with respect to the payment of premiums or the giving of notices), and no event has occurred that, with notice or the lapse of time, would constitute
such a breach or default, or permit termination, modification, or acceleration, under the policy; and (C) no party to the policy has repudiated any provision thereof. §4(s) of the Disclosure Schedule describes any self-insurance
arrangements affecting Target or InnoWare Plastic. 
  

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 (t) Litigation. §4(t) of the Disclosure Schedule sets forth each instance in
which Target or InnoWare Plastic (i) is subject to any outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is a party or to Seller’s Knowledge is threatened to be made a party to any action, suit, proceeding,
hearing, or investigation of, in, or before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator. None of the actions, suits, proceedings, hearings, and investigations
set forth in §4(t) of the Disclosure Schedule could reasonably be expected to result in any Material Adverse Change; and to Seller’s Knowledge, there is no Basis for any such material action, suit, proceeding, hearing, or investigation.

 (u) Product Warranty. Each product manufactured, sold, leased, or delivered by Target or InnoWare Plastic has been in
material conformity with all applicable contractual commitments and all express and implied warranties, and neither Target nor InnoWare Plastic has any obligations relating to the replacement or repair thereof or other damages in connection
therewith, subject only to the reserve for product warranty claims set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past
custom and practice of Target and InnoWare Plastic. §4(u) of the Disclosure Schedule includes copies of the standard terms and conditions of sale or lease for each of Target and InnoWare Plastic (containing applicable guaranty, warranty, and
indemnity provisions). No product manufactured, sold, leased, or delivered by Target or InnoWare Plastic is subject to any guaranty, warranty, or other indemnity beyond the applicable standard terms and conditions of sale or lease set forth in
§4(u) of the Disclosure Schedule. 
 (v) Product Liability. Neither Target nor InnoWare Plastic has any financial or
other obligations arising out of any injury to individuals or property as a result of the ownership, possession, or use of any product manufactured, sold, leased, or delivered by Target or InnoWare Plastic. 

(w) Employees. 

(i) With respect to the business of Target and InnoWare Plastic, except as set forth in §4(w) of the Disclosure
Schedule: 
 (A) there is no collective bargaining agreement or relationship with any labor organization;

 (B) to Seller’s Knowledge, no executive of Target or InnoWare Plastic (1) has any present intention
to terminate his or her employment, or (2) is a party to any confidentiality, non-competition, proprietary rights or other such agreement between such employee and any Person besides such entity that would be material to the performance of such
employee’s employment duties, or the ability of such entity or Buyer to conduct the business of such entity; 

(C) no labor organization or group of employees has filed any representation petition or made any written or oral demand
for recognition; 
 (D) to Seller’s Knowledge, no union organizing or decertification efforts are underway
or threatened and no other question concerning representation exists; 
 (E) no labor strike, work stoppage,
slowdown, or other material labor dispute has occurred, and none is underway or, to Seller’s Knowledge, threatened; 

(F) there is no workers compensation liability, experience or matter outside the Ordinary Course of Business; 

(G) there is no employment-related charge, complaint, grievance, investigation, inquiry or obligation of any kind, pending
or, to Seller’s Knowledge, threatened in any forum, relating to an alleged violation or breach by Target or InnoWare Plastic (or its or their officers or directors) of any law, regulation or contract; and, 

 

 25 

 (H) to Seller’s Knowledge, no employee or agent of Target or InnoWare
Plastic has committed any act or omission giving rise to material liability for any violation or breach identified in subsection (G) above. 

(ii) Except as set forth in §4(w) of the Disclosure Schedule, there are no written personnel policies, rules, or
procedures applicable to employees of Target or InnoWare Plastic. True and complete copies of all such documents identified in §4(w) of the Disclosure Schedule have been provided to Buyer prior to the date of this Agreement. 

(iii) With respect to this transaction, any notice required under any law or collective bargaining agreement has been
given, and all bargaining obligations with any employee representative have been, or prior to the Closing Date will be, satisfied. Within the past 3 years, neither Target nor InnoWare Plastic has implemented any plant closing or layoff of employees
that could implicate the Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar foreign, state, or local law, regulation, or ordinance (collectively, the “WARN Act”), and no such action will be implemented
without advance notification to Buyer. 
 (x) Employee Benefits. 

(i) §4(x) of the Disclosure Schedule lists each Employee Benefit Plan that Target or InnoWare Plastic maintains, to
which Target or InnoWare Plastic contributes or has any obligation to contribute, or with respect to which Target or InnoWare Plastic has any liability. 

(A) Each such Employee Benefit Plan (and each related trust, insurance contract, or fund) has been maintained, funded and
administered in accordance with the terms of such Employee Benefit Plan and complies in form and in operation in all material respects with the applicable requirements of ERISA, the Code, and other applicable laws. 

(B) All required reports and descriptions (including Form 5500 annual reports, summary annual reports, and summary plan
descriptions) have been timely filed and/or distributed in accordance with the applicable requirements of ERISA and the Code with respect to each such Employee Benefit Plan. The requirements of COBRA have been met in all material respects with
respect to each such Employee Benefit Plan subject to COBRA. 
 (C) All contributions (including all employer
contributions and employee salary reduction contributions) that are due have been made within the time periods prescribed by ERISA and the Code to each such Employee Benefit Plan that is an Employee Pension Benefit Plan and all contributions for any
period ending on or before the Closing Date that are not yet due have been made to each such Employee Pension Benefit Plan or accrued in accordance with the past custom and practice of Target and InnoWare Plastic. All premiums or other payments for
all periods ending on or before the Closing Date have been paid or accrued with respect to each such Employee Benefit Plan that is an Employee Welfare Benefit Plan. 

(D) Each such Employee Benefit Plan that is intended to meet the requirements of a “qualified plan” under Code
§401(a) has received a determination from the Internal Revenue Service that such Employee Benefit Plan is so qualified (or is entitled to rely on the opinion letter of the prototype plan sponsor), and, to Seller’s Knowledge, nothing has
occurred since the date of such determination that could adversely affect the qualified status of any such Employee Benefit Plan. All such Employee Benefit Plans have been timely amended for the requirements of the Tax legislation commonly known as
“GUST” or “EGTRRA” and, to the extent applicable, have been or will be submitted to the Internal Revenue Service for a favorable determination letter on the GUST and EGTRRA requirements within the applicable remedial amendment
period. 
  

 26 

 (E) To Seller’s Knowledge, there have been no Prohibited Transactions
with respect to any such Employee Benefit Plan. To Seller’s Knowledge, no Fiduciary has any liability for breach of fiduciary duty or any other failure to act or comply in connection with the administration or investment of the assets of any
such Employee Benefit Plan. No action, suit, proceeding, hearing, or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other than routine claims for benefits) is pending or
threatened. None of Seller and the directors and officers (and employees with responsibility for employee benefits matters) of Target and InnoWare Plastic has any Knowledge of any Basis for any such action, suit, proceeding, hearing, or
investigation. 
 (F) Seller has delivered to Buyer correct and complete copies of the plan documents and summary
plan descriptions, the most recent determination, notification, approval or opinion letter, as applicable, received from the Internal Revenue Service, the most recent annual report (Form 5500, with all applicable attachments), and all related trust
agreements, insurance contracts, and other funding arrangements that implement such Employee Benefit Plan. 

(ii) Neither Target nor InnoWare Plastic contributes to, has any obligation to contribute to, or has any liability under
or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in ERISA §3(35)). No asset of Target or InnoWare Plastic is subject to any Lien under ERISA or the Code. 

(iii) Neither Target nor InnoWare Plastic contributes to, has any obligation to contribute to, or has any liability
(including withdrawal liability as defined in ERISA §4201) under or with respect to any Multiemployer Plan. 

(iv) Neither Target nor InnoWare Plastic maintains, contributes to or has an obligation to contribute to, or has any
liability with respect to, any Employee Welfare Benefit Plan providing health or life insurance or other welfare-type benefits for current or future retired or terminated directors, officers or employees (or any spouse or other dependent thereof) of
Target or InnoWare Plastic or of any other Person other than in accordance with COBRA. 
 (v) §4(x)(v) of
the Disclosure Schedule lists each agreement, contract, plan, or other arrangement—whether or not written and whether or not an Employee Benefit Plan (collectively a “Plan”)—to which Target or InnoWare Plastic is a party that is
a “nonqualified deferred compensation plan” subject to Code §409A. Each such Plan complies with the requirements of Code §409A(a)(2), (3), and (4) and any Internal Revenue Service guidance issued thereunder. 

(y) Guaranties. Except as set forth on §4(y) of the Disclosure Schedule, neither Target nor InnoWare Plastic is a guarantor
or otherwise is liable for any financial or other obligations (including indebtedness) of any other Person. 
 (z)
Environmental, Health, and Safety Matters. 
 (i) Each of Target and InnoWare Plastic and each of their
respective Affiliates, and to Seller’s Knowledge, each of their respective Predecessors, has at all times complied in all material respects, and are in compliance in all material respects, with all Environmental, Health, and Safety
Requirements. 
 (ii) Except as identified in §4(z)(ii) of the Disclosure Schedule, the Target, InnoWare
Plastic and their respective Affiliates and, to Seller’s Knowledge, each of their respective Predecessors, have acquired, obtained, applied for or made any permits, licenses, notifications, applications or other reports to or from all
governmental or administrative agencies having jurisdiction over the Target, InnoWare Plastic and their respective Affiliates and Predecessors or any property owned, leased or operated by any of them, as required under any applicable Environmental,
Health, and Safety Requirements. 
  

 27 

 (iii) Except as identified in §4(z)(iii) of the Disclosure Schedule,
there is no claim, action, suit, proceedings, arbitration, investigation or inquiry pending or, to Seller’s Knowledge, threatened against the Target, InnoWare Plastic or their respective Affiliates (or, to Seller’s Knowledge, each of their
respective Predecessors) by or before any federal, state, municipal, foreign or other court, or any other governmental or administrative body or agency, nor to Seller’s Knowledge has there been any written or oral complaint, order, directive,
claim, citation, notice, report, or lien by or in favor of any governmental authority or private person with respect to (a) the use, storage, generation, treatment, transportation or disposal of Hazardous Substances at or from any property or
facility owned, leased or operated by the Target and InnoWare Plastic or their respective Affiliates (or, to Seller’s Knowledge, each of their respective Predecessors); (b) spills, releases, discharges or disposal of Hazardous Substances
on or into any real property, buildings, appurtenances, fixtures and facilities owned, leased, or operated by the Target, InnoWare Plastic or their respective Affiliates (or, to Seller’s Knowledge, each of their respective Predecessors), or any
other property as a result of operations or activities on real property owned, leased or operated by the Target, InnoWare Plastic or their respective Affiliates (or, to Seller’s Knowledge, each of their respective Predecessors), or on or into
any surface water, groundwater or septic or sewer systems; (c) air emissions; or (d) the violation of or noncompliance with any Environmental, Health, and Safety Requirements. 

(iv) Other than as identified in §4(z)(iv) of the Disclosure Schedule, to Seller’s Knowledge, none of the
following exists at any Real Property: (1) underground storage tanks, (2) groundwater monitoring wells, drinking water wells, or production water wells, (3) asbestos-containing material in any form or condition, (4) materials or
equipment containing polychlorinated biphenyls, or (5) landfills, surface impoundments, septic fields or disposal areas. 

(v) Neither Target, nor InnoWare Plastic, nor their respective Affiliates has treated, stored, disposed of, arranged for
or permitted the disposal of, transported, handled, manufactured, distributed, exposed any person to, or released any Hazardous Substance so as to give rise to any current or future liabilities or obligations, including any liability or obligation
related to notification or failure to notify, fines, penalties, response costs, corrective action costs, personal injury, property damage, natural resources damages or attorneys’ fees, pursuant to any Environmental, Health, and Safety
Requirements. 
 (vi) To Seller’s Knowledge, neither this Agreement nor the consummation of the transactions
that are the subject of this Agreement will result in any obligations for site investigation or cleanup, or notification to or consent of government agencies or third parties, pursuant to any of the so-called “transaction-triggered” or
“responsible property transfer” of any Environmental, Health, and Safety Requirements. 
 (vii) Neither
Target, nor InnoWare Plastic, nor their respective Affiliates has designed, manufactured, sold, marketed, installed, or distributed products or other items containing asbestos and, to Seller’s Knowledge, none of such entities is or will become
subject to any liabilities or obligations with respect to the presence of asbestos in any product or item. 

(viii) Except for contracts disclosed in §4(p) of the Disclosure Schedule, neither Target nor InnoWare Plastic has
assumed, undertaken, provided an indemnity with respect to, or otherwise become subject to, any liability or obligation, including without limitation any obligation for corrective or remedial action, of any other Person relating to Environmental,
Health, and Safety Requirements. 
 (ix) Seller, Target, and InnoWare Plastic have furnished to Buyer all
environmental audits, reports, sampling plans, analytical results and other material environmental documents relating to Target’s, InnoWare Plastic’, or their respective predecessors’ or Affiliates’ past or current properties,
facilities, or operations that are in their possession, custody, or under their reasonable control. 
  

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 (aa) Business Continuity. 

(i) None of the computer software, computer hardware (whether general or special purpose), telecommunications capabilities
(including all voice, data and video networks) and other similar or related items of automated, computerized, and/or software systems and any other networks or systems and related services that are used by or relied on by Target and/or InnoWare
Plastic in the conduct of their business (collectively, the “Systems”) have experienced bugs, failures, breakdowns, or continued substandard performance in the past 12 months that has caused any substantial disruption or
interruption in or to the use of any such Systems by Target or InnoWare Plastic. 
 (ii) Each of Target and
InnoWare Plastic is covered by business interruption insurance in scope and amount customary and reasonable to ensure their ongoing business operations. 

(bb) Computer and Technology Security. Target and InnoWare Plastic have taken reasonably prudent steps to safeguard the
information technology systems utilized in the operation of the business of Target and InnoWare Plastic, including the implementation of procedures to ensure that such information technology systems are free from any disabling codes or instructions,
timer, copy protection device, clock, counter or other limiting design or routing and any “back door,” “time bomb,” “Trojan horse,” “worm,” “drop dead device,” “virus,” or other software
routines or hardware components that in each case permit unauthorized access or the unauthorized disablement or unauthorized erasure of data or other software by a third party, and there have been no successful unauthorized intrusions or breaches of
the security of the information technology systems. 
 (cc) Certain Business Relationships with Target and InnoWare Plastic.
None of Seller, its Affiliates, directors, officers, employees, members, managers and shareholders, and Target’s and InnoWare Plastic’s directors, officers, employees, and shareholders has been involved in any business arrangement or
relationship with Target or InnoWare Plastic within the past 12 months, and none of Seller, its Affiliates, directors, officers, employees, members, managers, and shareholders, and Target’s and InnoWare Plastic’s directors, officers,
employees, and shareholders owns any asset, tangible or intangible, that is used in the business of Target or InnoWare Plastic. 

(dd) Customers and Suppliers. 

(i) §4(dd) of the Disclosure Schedule lists the ten (10) largest customers of Target (on a consolidated basis)
for each of the two (2) most recent fiscal years and sets forth opposite the name of each such customer the percentage of consolidated net sales attributable to such customer. §4(dd) of the Disclosure Schedule also lists any additional
current customers that Target anticipates shall be among the ten (10) largest customers for the current fiscal year. 

(ii) As of this date only, and not making any representation as of the Closing Date, since the date of the Most Recent
Balance Sheet, no supplier of Target or InnoWare Plastic has indicated that it shall stop, or decrease the rate of, supplying materials, products or services to Target or InnoWare Plastic, and no customer listed on §4(dd) of the Disclosure
Schedule has indicated that it shall stop, or decrease the rate of, buying materials, products or services from Target or InnoWare Plastic. 

(ee) Data Privacy. 

(i) The collection, use, transfer, import, export, storage, disposal, and disclosure by Target and InnoWare Plastic of
personally identifiable information, or other information relating to Persons protected by law, has not violated and, if performed after Closing in substantially the same manner as performed immediately prior to Closing, will not violate in any
material respect any applicable U.S. or foreign law relating to data collection, use, privacy, or protection (including, without limitation, any requirement arising under any constitution, statute, code, treaty, decree, rule, ordinance, or
regulation) (collectively, “Data Laws”). Target and InnoWare 
  

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Plastic have complied with, and are presently in compliance with, their respective privacy policies, which policies comply in all material respects with all Data Laws. The transactions
contemplated by this Agreement will not result in the violation of any Data Laws, or the respective privacy policies of Target or InnoWare Plastic. 

(ii) (A) There is no complaint, audit, proceeding, investigation, or claim against or, to the Knowledge of Seller,
threatened against, Target or InnoWare Plastic by any governmental authority, or by any Person respecting the collection, use, transfer, import, export, storage, disposal, and disclosure of personal information by any Person in connection with
Target or InnoWare Plastic or their businesses, and (B) to Seller’s Knowledge, there have been no security breaches compromising the confidentiality or integrity of such personal information. 

(ff) Rail Spur Compliance. InnoWare Plastic: (i) is in compliance with the terms of (A) the Agreement dated as of
November 17, 2008 (the “Authority Rail Spur Agreement”) by and between the Thomaston-Upson County Industrial Development Authority (the “Authority”) and InnoWare Plastic, and (B) the CDBG/EIP Economic Development and
Construction Agreement dated as of June 17, 2009 (the “County Rail Spur Agreement”) among Upson County (the “County”), the Authority and InnoWare Plastic, in each case as such agreement may have been amended or supplemented;
(ii) has satisfied in full, on or prior to the date hereof, the requirements of Section 2.5(a) of the Authority Rail Spur Agreement (the “134 FTE Job Requirement”) and, in accordance with Section 2.6 of the Authority Rail
Spur Agreement, has delivered an affidavit signed by an officer of InnoWare Plastic stating that InnoWare Plastic has met the 134 FTE Job Requirement, and has delivered to Buyer a true and correct copy of such affidavit; (iii) has, as of the
date hereof, made eligible expenditures in the aggregate amount of $8,694,000 in fulfillment of the $9,700,000 expenditure requirement of Section 2.5(d) of the Authority Rail Spur Agreement and has delivered to the Buyer a schedule of, and
evidence to support, such expenditures; (iv) has invested at least $6,600,000 in building upgrades, machinery and equipment and rail spur costs in accordance with, and fulfillment of, the obligations of Section 4(A) of the County Rail Spur
Agreement, and has notified the County that it has fulfilled its investment obligations under Section 4(A) and delivered to the Buyer a schedule of, and evidence to support, such investments; and (v) has filed a CDBG Quarterly Expenditures
and Progress Report in accordance with the provisions of the County Rail Spur Agreement, every three months from the date of the EIP Grant referred to in the County Rail Spur Agreement, and has delivered to Buyer a true and correct copy of each such
Quarterly Expenditures and Progress Report. 
 (gg) Disclaimer of Other Representations and Warranties. Except as
expressly set forth in §3 and this §4, Seller makes no representation or warranty in respect of Target, InnoWare Plastic, or any of their respective assets, Liabilities or operations. 

(hh) Menomonee Release. The Menomonee Lease is in full force and effect. Under the Second Amendment, dated as of March 30,
2010, by and between CJF1 LLC, a Delaware limited liability company (“Landlord”), and InnoWare Paper, Inc., the Guaranty of Lease dated August 30, 2006 (the “Lease Guaranty”) from DUNI A.B. (the “Guarantor”) to and
for the benefit of Landlord has been deemed to be released and terminated in full by Landlord, and Guarantor has no further obligations to Landlord with respect to the Lease. Neither Target nor InnoWare Plastic shall have any further Liability under
the (i) DUNI Guaranty, (ii) Lease Guaranty or (iii) Menomonee Lease. 
 §5. Pre-Closing Covenants.
The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing: 
 (a)
General. Each of the Parties will use its commercially reasonable best efforts to take all actions and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the Closing conditions set forth in §7 below). 
 (b) Notices and Consents.
Seller will cause each of Target and InnoWare Plastic to give any notices to third parties, and will cause each of Target and InnoWare Plastic to use their commercially 

 

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reasonable best efforts to obtain any third-party consents referred to in §4(c) above, the Lease Consents, and the items set forth on §5(b) of the Disclosure Schedule. Each of the
Parties will (and Seller will cause each of Target and InnoWare Plastic to) give any notices to, make any filings with, and use its commercially reasonable best efforts to obtain any authorizations, consents, and approvals of governments and
governmental agencies in connection with the matters referred to in §3(a)(ii), §3(b)(ii), and §4(c) above. Without limiting the generality of the foregoing, each of the Parties will file (and Seller will cause each of Target and
InnoWare Plastic to file) any Notification and Report Forms and related material that it may be required to file with the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice under the Hart-Scott-Rodino Act, will use
his, her, or its reasonable best efforts to obtain (and Seller will cause each of Target and InnoWare Plastic to use its reasonable best efforts to obtain) an early termination of the applicable waiting period, and will make (and Seller will cause
each of Target and InnoWare Plastic to make) any further filings pursuant thereto that may be necessary, proper, or advisable in connection therewith. 

(c) Operation of Business. Except as contemplated by §4(h) of the Disclosure Schedule, Seller will not cause or permit Target
or InnoWare Plastic to engage in any practice, take any action, or enter into any transaction outside the Ordinary Course of Business. Without limiting the generality of the foregoing, Seller will not cause or permit Target or InnoWare Plastic to
(i) except as specifically contemplated by this Agreement and disclosed in writing to Buyer prior to the Closing Date, declare, set aside, or pay any dividend or make any distribution with respect to its capital stock or redeem, purchase, or
otherwise acquire any of its capital stock, or (ii) except as contemplated by §4(h) of the Disclosure Schedule, otherwise engage in any practice, take any action, or enter into any transaction of the sort described in §4(h) above.

 (d) Preservation of Business. Seller will use commercially reasonable best efforts to cause each of Target and
InnoWare Plastic to keep their business and properties substantially intact, including its present operations, physical facilities, working conditions, insurance policies, and relationships with lessors, licensors, suppliers, customers, and
employees. 
 (e) Full Access. Seller will permit, and Seller will cause each of Target and InnoWare Plastic to permit,
representatives of Buyer (including legal counsel and accountants) to have full access at all reasonable times, and in a manner so as not to interfere with the normal business operations of Target and InnoWare Plastic, to all premises, properties,
personnel, books, records (including Tax records), contracts, and documents of or pertaining to each of Target and InnoWare Plastic. 

(f) Notice of Developments. Seller will give prompt written notice to Buyer of any development that occurs after the date
hereof that causes a material breach of any of the representations and warranties in §4 above, it being understood that, for purposes of determining the materiality of such developments, all “Material Adverse Effect” qualifications
and other qualifications based on the word “material” or similar phrases contained in such representations shall be disregarded. Seller will also promptly give Buyer notice of any customer listed on §4(dd) of the Disclosure Schedule
that indicates prior to the Closing that it shall stop, or decrease the rate of, buying materials, products or services from Target or InnoWare Plastic. Each Party will give prompt written notice to the others of any material adverse development
causing a breach of any of its own representations and warranties in §3 above, it being understood that, for purposes of determining the materiality of such developments, all “Material Adverse Effect” qualifications and other
qualifications based on the word “material” or similar phrases contained in such representations shall be disregarded. If Buyer has a right to terminate this Agreement pursuant to §10(a)(ii) below by reason of the development, and
Buyer fails to exercise that right within the time period of ten (10) business days referred to in §10(a)(ii) below, the written notice pursuant to this §5(f) will be deemed to have amended the Disclosure Schedule, to have qualified
the representations and warranties contained in §4 above, and to have cured any misrepresentation or breach of warranty that otherwise might have existed hereunder by reason of the development.  

(g) Exclusivity. Seller will not (and Seller will not cause or permit Target or InnoWare Plastic to) (i) solicit, initiate,
or encourage the submission of any proposal or offer from any Person relating to the acquisition of any capital stock or other voting securities, or any substantial portion of the assets, of 

 

 31 

 
Target or InnoWare Plastic (including any acquisition structured as a merger, consolidation, or share exchange) or (ii) participate in any discussions or negotiations regarding, furnish any
information with respect to, assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing. Seller will not vote its Target Shares in favor of any such acquisition. Seller will
notify Buyer immediately if any Person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing. 

(h) Maintenance of Real Property. Seller will cause each of Target and InnoWare Plastic to maintain the Real Property, including
all of the Improvements, in substantially the same condition as existed on the date of this Agreement, ordinary wear and tear excepted, and shall not demolish or remove any of the existing Improvements, or erect new improvements on the Real Property
or any portion thereof, without the prior written consent of Buyer. 
 (i) Leases. Seller will not cause or permit any of
Target’s or InnoWare Plastic’s Leases to be amended, modified, extended, renewed or terminated, nor shall Target or InnoWare Plastic enter into any new lease, sublease, license or other agreement for the use or occupancy of any Real
Property, without the prior written consent of Buyer. 
 (j) Title Insurance and Surveys. Seller will cause each of
Target and InnoWare Plastic to cooperate with Buyer in Buyer’s efforts to obtain the Title Commitments, Title Policies and Surveys (at no cost to Seller, Target or InnoWare Plastic) in form and substance as set forth in §7 of this
Agreement. Seller shall provide the Title Company with any affidavits, indemnities, memoranda or other assurances reasonably and customarily requested by the Title Company to issue the Title Policies. 

(k) Tax Matters. Without the prior written consent of Buyer, neither Target nor InnoWare Plastic shall make or change any
election, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment relating to Target or InnoWare Plastic, surrender any right to
claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to Target or InnoWare Plastic, or take any other similar action relating to the filing of any Tax Return or the
payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax liability of Target or InnoWare Plastic for any period ending after the Closing
Date or decreasing any Tax attribute of Target or InnoWare Plastic existing on the Closing Date. 
 (l) Release and Discharge
of Indebtedness of Target and InnoWare Plastic. Seller shall use its commercially reasonable best efforts to cause Target and InnoWare Plastic to be released and discharged in full from any and all obligations with regard to any of its or their
Indebtedness (whether intercompany or external) and neither Target nor InnoWare Plastic shall have any liability as of the Closing Date with regard to such Indebtedness. 

(m) Transfer of Employee Benefit Plans. Except as specifically provided in this Agreement, Seller shall cause
the sponsorship, administration and all other aspects of each Employee Benefit Plan to be transferred to an entity other than Target or InnoWare Plastic, and for Target and InnoWare Plastic to be released and discharged from any and all obligations
with respect to such Employee Benefit Plans such that Target and InnoWare Plastic shall have no liability as of the Closing Date with regard to such Employee Benefit Plans for events occurring on or after the date of such transfers.

 (n) Contact with Employees, Customers and Suppliers. Neither the Buyer nor any of Buyer’s representatives
shall contact or otherwise communicate with any employees, customers or suppliers of the Target or InnoWare Plastic in connection with or regarding the transactions contemplated hereby, except (i) to the extent approved in writing by Seller;
and (ii) Buyer’s employees and representatives may continue to contact the employees and representatives of Target and InnoWare Plastic who have been assisting in the due diligence process with additional due diligence, integration and
other similar questions or requests. 
  

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 §6. Post-Closing Covenants. The Parties agree as follows with respect to the
period following the Closing: 
 (a) General. In case at any time after the Closing any further actions are necessary or
desirable to carry out the purposes of this Agreement, each of the Parties will take such further actions (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request, all at the sole
cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor under §8 below). Seller acknowledges and agrees that from and after the Closing Buyer will be entitled to possession of all documents,
books, records (including Tax records), agreements, and financial data of any sort relating to Target and InnoWare Plastic. Seller shall use commercially reasonable efforts to obtain, within thirty (30) days after the Closing Date, a
termination of the DUNI Guaranty; provided, however, that nothing herein shall require Seller to make any payment or incur any other economic obligation or concession in connection with obtaining such termination. 

(b) Litigation Support. In the event and for so long as any Party actively is contesting or defending against any action, suit,
proceeding, hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction contemplated under this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving Target or InnoWare Plastic, the other Party will cooperate with it and its counsel in the contest or defense, make available its personnel,
and provide such testimony and access to its books and records as shall be necessary in connection with the contest or defense, all at the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is
entitled to indemnification therefor under §8 below). 
 (c) Transition. Seller will not take any action that is
designed or intended to have the effect of discouraging any lessor, licensor, customer, supplier, or other business associate of Target or InnoWare Plastic from maintaining the same business relationships with Target and InnoWare Plastic after the
Closing as it maintained with Target and InnoWare Plastic prior to the Closing. Seller will refer all customer inquiries relating to the business of Target and InnoWare Plastic to Buyer from and after the Closing. 

(d) Confidentiality. Seller will treat and hold as such all of the Confidential Information, refrain from using any of the
Confidential Information except in connection with this Agreement, and deliver promptly to Buyer or destroy, at the request and option of Buyer, all tangible embodiments (and all copies) of the Confidential Information that are in its possession. In
the event that Seller is requested or required pursuant to written or oral question or request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process to disclose any Confidential
Information, Seller will notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate protective order or waive compliance with the provisions of this §6(d). If, in the absence of a protective order or the receipt
of a waiver hereunder, Seller is, on the advice of counsel, compelled to disclose any Confidential Information to any tribunal or else stand liable for contempt, Seller may disclose the Confidential Information to the tribunal; provided,
however, that Seller shall use its reasonable best efforts to obtain, at the reasonable request of Buyer and at Buyer’s expense, an order or other assurance that confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as Buyer shall designate. The foregoing provisions shall not apply to any Confidential Information that is generally available to the public immediately prior to the time of disclosure unless such Confidential
Information is so available due to the actions of Seller. Notwithstanding the foregoing, Seller shall be entitled to retain copies of any Confidential Information (A) consistent with Seller’s general record retention policy and (B) to
the extent that such Confidential Information is imbedded in Seller’s information and materials relating to its other businesses. 

(e) Restrictive Covenants. For a period of five (5) years from and after the Closing Date, none of Seller, InnoWare Paper,
Inc., or any Subsidiary of Seller or InnoWare Paper, Inc. will directly or indirectly, (i) engage in the Business in North America; provided, however, that (w) no owner of less than 1% of the outstanding stock of any publicly traded
corporation shall be deemed to engage solely by reason thereof in its business, (x) InnoWare Paper, Inc. may sell products manufactured by Buyer or one 

 

 33 

 
of its Affiliates, their successors or any other party as contemplated by the InnoWare Paper Supply Agreement, (y) if the InnoWare Paper Supply Agreement is terminated by InnoWare Paper,
Inc. in connection with a material breach thereof by InnoWare Plastic, then InnoWare Paper, Inc. may sell products similar to those identified as “Products” in the InnoWare Paper Supply Agreement to the “Customers” identified in
such agreement, and (z) this §6(e) shall terminate with respect to InnoWare Paper Holding Company, Inc. and/or InnoWare Paper, Inc. following the sale (by stock sale, merger, sale of all or substantially all of the assets, or otherwise) of
such entity by Seller or InnoWare Paper Holding Company, Inc. so long as Norwest Equity Partners does not directly or indirectly (1) own or have the right to acquire a majority of the voting rights of the acquiring entity, (2) by
contractual arrangement have a right to vote a majority of the voting securities of the acquiring entity, or (3) otherwise have the right to appoint a majority of the board of directors or board of managers of the acquiring entity;
(ii) induce any customer of Target to patronize any such competitive business; or (iii) solicit for employment any employee of Buyer, Target, or InnoWare Plastic employed in InnoWare Plastic’s business or any Retained Employee with
regard to employment after the term of the Leased Employee Agreement (provided, however, that nothing in this §6(e) shall be deemed to prohibit Seller or any parent, Subsidiary or other Affiliate of Seller from placing advertisements in
newspapers or other media of general circulation advertising employment opportunities or from hiring persons who respond to such advertisements). If the final judgment of a court of competent jurisdiction declares that any term or provision of this
§6(e) is invalid or unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or
phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed. 
 (f) SEC
Filing Support. Seller agrees to, and agrees to cause its relevant employees to, assist Buyer as reasonably requested in preparing any filings with the Securities and Exchange Commission necessitated by the execution of this Agreement or the
consummation of the transactions contemplated hereby. 
 (g) Funding Payments and Costs Under Separation
Agreements. Seller agrees to make any cash payments required to be made by Innoware Plastic under Section 3 of either of the Separation Agreements, including amounts owed in respect of separation compensation, applicable withholding and
health insurance coverage under InnoWare Plastic’s group insurance plan. The Escrow Amount plus any interest accrued thereon will be used to satisfy any amounts owed by Seller to Buyer under this Section 6(g) in accordance with the terms
of the Escrow Agreement.  
 §7. Conditions to Obligation to Close 

(a) Conditions to Buyer’s Obligation. Buyer’s obligation to consummate the transactions to be performed by it in
connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations
and warranties of the Seller contained in §3(a) and §4 hereof will be true and correct at and as of the time of the Closing, as if made on the Closing Date and the Closing Date were substituted for the date of this Agreement throughout
such representations and warranties, except (A) to the extent that the failure of such representations and warranties to be true and correct has not caused a Material Adverse Effect, (B) for changes contemplated by this Agreement or
actions or acts of Target or InnoWare Plastic that are taken prior to the Closing with the written approval or written consent of Buyer or taken jointly with Buyer, and (C) for those representations and warranties that address matters as of any
other particular date (in which case such representations and warranties shall have been true and correct as of such particular date, except to the extent that the failure of such representations and warranties to have been true and correct as of
such particular date has not caused a Material Adverse Effect), it being understood that, for purposes of determining the accuracy of such representations and warranties, all “Material Adverse Effect” qualifications and other
qualifications based on the word “material” or similar phrases contained in such representations shall be disregarded, except for those in §4(g) above and the first sentence of §4(h) above; 

 

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 (ii) Seller shall have performed and complied with all of its covenants
hereunder in all material respects through the Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in
which case Seller shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects through the Closing; 

(iii) Target and InnoWare Plastic shall have procured all of the third-party consents listed in §5(b) of the
Disclosure Schedule; 
 (iv) no action, suit, or proceeding shall be pending or threatened before (or that could
come before) any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before (or that could come before) any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or
charge would (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation, (C) adversely affect the right
of Buyer to own the Target Shares and to control Target and InnoWare Plastic, or (D) materially adversely affect the right of Target or InnoWare Plastic to own its assets and to operate its business (and no such injunction, judgment, order,
decree, ruling, or charge shall be in effect); 
 (v) Seller shall have delivered to Buyer a certificate to the
effect that each of the conditions specified above in §7(a)(i)-(iv) is satisfied in all respects; 

(vi) the Parties, Target, and InnoWare Plastic shall have received all authorizations, consents, and approvals of
governments and governmental agencies referred to in §3(a)(ii), §3(b)(ii), and §4(c) above; 

(vii) each of Seller, InnoWare Paper Holding Company, Inc. and InnoWare Paper, Inc., as applicable, shall have entered
into the Innoware Paper Supply Agreement in the form of Exhibit C-1; the Trademark License Agreement in the form of Exhibit C-2; and the Transition Services Agreement in the form of Exhibit C-3; 

(viii) Buyer shall have received from counsel to Seller an opinion in form and substance as set forth in Exhibit D
attached hereto, addressed to Buyer, and dated as of the Closing Date; 
 (ix) Buyer shall have received the
resignations, effective as of the Closing, of each director and officer of Target and InnoWare Plastic other than those whom Buyer shall have specified in writing at least 5 business days prior to the Closing; 

(x) the employment with Target or InnoWare Plastic of all employees other than the Retained Employees shall have been
terminated and all severance costs and obligations related to such terminations, including but not limited to COBRA obligations, shall have been transferred to Seller or a Seller Affiliate other than Target or InnoWare Plastic; 

(xi) each of the Retained Employees shall have been transferred to Seller or a Seller Affiliate other than Target or
InnoWare Plastic; 
 (xi) all actions to be taken by Seller in connection with consummation of the transactions
contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby shall be reasonably satisfactory in form and substance to Buyer; 

 

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 (xii) Buyer shall have obtained, no later than 10 days prior to the Closing,
a commitment for a 2006 ALTA Owner’s Title Insurance Policy or other form of policy reasonably acceptable to Buyer for each Owned Real Property (other than Owned Real Property located outside the U.S.), issued by a title insurance company
satisfactory to Buyer (the “Title Company”), together with a copy of all documents referenced therein (the “Title Commitments”); 

(xiii) at Closing, Buyer (at its sole cost and expense) shall have obtained title insurance policies from the Title
Company (which may be in the form of a mark-up of a pro forma of the Title Commitments) in accordance with the Title Commitments, insuring each of Target’s and InnoWare Plastic’s fee simple title to each Owned Real Property, as of the
Closing Date (including all recorded appurtenant easements, insured as separate legal parcels), with gap coverage from Seller through the date of recording, subject only to Permitted Encumbrances, in such amount as Buyer reasonably determines to be
the value of the Real Property insured thereunder and which shall include endorsements reasonably requested by Buyer and acceptable to the Title Company (the “Title Policies”); 

(xiv) Buyer (at its sole cost and expense) shall have obtained, no later than 10 days prior to the Closing, a survey for
each Owned Real Property, dated no earlier than the date of this Agreement, prepared by a licensed surveyor in the jurisdiction where the real property is located, reasonably satisfactory to Buyer, and conforming to 1999 ALTA/ACSM Minimum Detail
Requirements for Land Title Surveys, including such Table A Items as are reasonably requested by Buyer and acceptable to its surveyor. The Surveys shall not disclose any encroachment from or onto any of the Real Property or any portion thereof or
any other survey defect that has not been cured or insured over to Buyer’s reasonable satisfaction prior to the Closing; 

(xv) Target and InnoWare Plastic shall have obtained and delivered to Buyer the Lease Consents; 

(xvi) Target and InnoWare Plastic shall have used commercially reasonable efforts to obtain and deliver to Buyer an
estoppel certificate with respect to each of the Leases, dated no more than 30 days prior to the Closing Date, from the other party to such Lease, in form and substance reasonably satisfactory to Buyer (the “Estoppel Certificates”);

 (xvii) Seller shall deliver to Buyer a non-foreign affidavit dated as of the Closing Date, sworn under penalty
of perjury and in form and substance required under the Treasury Regulations issued pursuant to Code §1445 stating that Seller is not a “Foreign Person” as defined in Code §1445 (the “FIRPTA Affidavit”);

 (xviii) no damage or destruction or other change shall have occurred with respect to any of the Real Property
or any portion thereof that, individually or in the aggregate, would materially impair the use or occupancy of the Real Property or the operation of Target’s or InnoWare Plastic’s business as currently conducted thereon; 

(xix) Seller shall have delivered to Buyer copies of the certificate of incorporation (or formation) of Seller, Target,
and InnoWare Plastic certified on or soon before the Closing Date by the Secretary of State (or comparable officer) of the jurisdiction of each such Person’s incorporation (or formation); 

(xx) Seller shall have delivered to Buyer copies of the certificate of good standing of Seller, Target, and InnoWare
Plastic issued on or soon before the Closing Date by the Secretary of State (or comparable officer) of the jurisdiction of each such Person’s organization and in the case of Target and InnoWare Plastic, of each jurisdiction in which each such
Person is qualified to do business; 
 (xxi) Seller shall have delivered to Buyer a certificate of the secretary
or an assistant secretary of Seller, dated the Closing Date, in form and substance reasonably satisfactory to 
  

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Buyer, as to: (i) no amendments to the certificate of formation of Seller since the date specified in clause (xix) above; (ii) the operating agreement (or other governing
documents) of Seller; (iii) the resolutions of the members or manager(s) of Seller authorizing the execution, delivery, and performance of this Agreement and the transactions contemplated hereby; and (iv) incumbency and signatures of the
officers or managers of Seller executing this Agreement or any other agreement contemplated by this Agreement; 

(xxii) Omitted; 

(xxiii) Seller shall have delivered to Buyer a certificate of the secretary or an assistant secretary of each of Target
and InnoWare Plastic, dated the Closing Date, in form and substance reasonably satisfactory to Buyer, as to: (i) no amendments to the certificate of incorporation of such Person since the date specified in clause (xix) above; (ii) the
bylaws (or other governing documents) of such Person; and (iii) any resolutions of the board of directors or other authorizing body (or a duly authorized committee thereof) of such Person relating to this Agreement and the transactions
contemplated hereby; 
 (xxiv) Each of Target and InnoWare Plastic shall have been released and discharged in
full from any and all obligations with regard to any of its or their Indebtedness (whether intercompany or external) and Seller shall have delivered to Buyer releases, in form and substance reasonably acceptable to Buyer, of all Liens and
Indebtedness (whether intercompany or external) incurred outside the Ordinary Course of Business or exceeding $10,000 (individually or in the aggregate) that is not otherwise reflected on the Closing Date NWC to which the Target, InnoWare Plastic or
any of its or their property is a subject or party, other than the capital lease for the warehouse space in Thomaston, Georgia, which lease is described in §7(a)(xxiv) of the Disclosure Schedule; 

(xxv) Seller shall have delivered to Buyer releases or other evidence reasonably acceptable to Buyer to establish that
(i) each Employee Benefit Plan has been transferred to an entity other than Target or InnoWare Plastic and (ii) Target and InnoWare Plastic shall have been released and discharged from any and all obligations with respect to the Employee
Benefit Plans such that Target and InnoWare Plastic shall have no liability as of the Closing Date with regard to such Employee Benefit Plans for events occurring on or after the date of such transfers; 

(xxvi) The assets of Target identified on Schedule 7(a)(xxvi) shall have been transferred to Seller or one of its
Affiliates; and 
 (xxvii) The Menomonee Lease, including the provisions of Section 3 of the Second
Amendment thereto, shall be in full force and effect. 
 Buyer may waive any condition specified in this §7(a) if it
executes a writing so stating at or prior to the Closing. 
 (b) Conditions to Seller’s Obligation. The obligation
of Seller to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 

(i) the representations and warranties set forth in §3(b) above shall be true and correct at and as of the time of
the Closing, as if made on the Closing Date and the Closing Date were substituted for the date of this Agreement throughout such representations and warranties, except (A) to the extent that the failure of such representations and warranties to
be true and correct has not caused a Material Adverse Effect, (B) for changes contemplated by this Agreement, and (C) for those representations and warranties that address matters as of any other particular date (in which case such
representations and warranties shall have been true and correct as of such particular date, except to the extent that the failure of such representations and warranties to have been true and correct as of such particular date has not caused a
Material Adverse Effect), it being understood that, for purposes of determining the accuracy of such 
  

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representations and warranties, all “Material Adverse Effect” qualifications and other qualifications based on the word “material” or similar phrases contained in such
representations and warranties shall be disregarded; 
 (ii) Buyer shall have performed and complied with all of
its covenants hereunder in all material respects through the Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse
Change,” in which case Buyer shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects through the Closing; 

(iii) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative
agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this
Agreement or (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 

(iv) Buyer shall have delivered to Seller a certificate to the effect that each of the conditions specified above in
§7(b)(i)-(iii) is satisfied in all respects; 
 (v) Seller shall have received from counsel to Buyer an
opinion in form and substance as set forth in Exhibit E attached hereto, addressed to Seller, and dated as of the Closing Date; 

(vi) the Parties, Target and InnoWare Plastic shall have received all authorizations, consents and approvals of
governments and governmental agencies referred to in §3(a)(iii), §3(b)(ii) and §4(c) above; and 

(vii) each of Buyer, Target and InnoWare Plastic, as applicable, shall have entered into the Trademark License Agreement
in the form of Exhibit C-2 and the Transition Services Agreement in the form of Exhibit C-3. 
 Seller may waive any condition
specified in this §7(b) if it executes a writing so stating at or prior to the Closing. 
 §8. Remedies for
Breaches of This Agreement. 
 (a) Survival of Representations and Warranties. 

(i) §3(a)(i), (ii) and (v); §4(a), (b), (f), (r) and (hh) shall survive the Closing hereunder and
continue in full force and effect forever; 
 (ii) §4(g)-(j), §4(l)-(q), §4(s)-(y), and
§4(aa)-(gg) above shall survive the Closing hereunder (unless Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect for a period of 21 months
thereafter, provided that any tax related obligations arising under §4(x) or guaranties related to Indebtedness under §4(y) shall be subject to the survival period set forth in subsection (iii) below; and §4(z) above shall
survive the Closing hereunder (unless Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect for a period of 36 months thereafter; and 

(iii) All of the other representations and warranties of the Parties contained in this Agreement shall survive the Closing
and continue in full force and effect until the expiration of any applicable statutes of limitations (after giving effect to any extensions or waivers) plus 60 days; 

 

 38 

 (b) Indemnification Provisions for Buyer’s Benefit. 

(i) In the event Seller breaches any of its representations, warranties, and covenants contained herein and, provided that
a Buyer Indemnitee (as defined below) makes a written claim for indemnification against Seller pursuant to §11(h) below within the survival period (if there is an applicable survival period pursuant to §8(a) above), then Seller shall be
obligated to indemnify such Buyer Indemnitee from and against the entirety of any Adverse Consequences the Buyer Indemnitee may suffer (including any Adverse Consequences Buyer Indemnitee may suffer after the end of any applicable survival period)
resulting from, arising out of, relating to, in the nature of, or caused by the breach; provided, however, that Seller shall not have any obligation to indemnify Buyer Indemnitees from and against any Adverse Consequences resulting from,
arising out of, relating to, in the nature of, or caused by the breach of any representation or warranty listed in §4(g)-(j), §4(l)-(q), §4(s)-(z), and §4(aa)-(gg) (other than any tax related obligations arising under §4(x)
or guaranties related to Indebtedness under §4(y)) until Buyer Indemnitee has suffered Adverse Consequences by reason of all such breaches in excess of a $250,000 in the aggregate (after which point Seller will be obligated to indemnify Buyer
Indemnitee from and against all such Adverse Consequences, including the first $250,000 of Adverse Consequences), and provided further that, with respect to breaches by Seller of the representations and warranties listed in §4(g)-(j),
§4(l)-(q), §4(s)-(z), and §4(aa)-(gg) (other than any tax related obligations arising under §4(x) or guaranties related to Indebtedness under §4(y)), the maximum amount of Adverse Consequences of Buyer Indemnitees for which
Seller may be liable under this §8(b)(i) shall not exceed an aggregate ceiling of $5,000,000 (after which point Seller will have no obligation to indemnify buyer from and against further such Adverse Consequences). The term Buyer Indemnitee
shall include the Buyer and any of its Subsidiaries, parents, Affiliates, officers, directors or employees. 

(ii) Seller shall be obligated to indemnify Buyer Indemnitees from and against the entirety of any Adverse Consequences
Buyer Indemnitees may suffer resulting from, arising out of or relating to (x) the DUNI Guaranty or (y) the breach of any representation or warranty listed in §4(hh). The indemnification obligations of this §8(b)(ii) shall
survive the Closing hereunder and continue in full force and effect forever, and shall not be subject to any threshold, deductible, or ceiling. 

(c) Indemnification Provisions for Seller’s Benefit. In the event Buyer breaches any of its representations, warranties, and
covenants contained herein and, provided that a Seller Indemnitee (as hereinafter defined) makes a written claim for indemnification against Buyer pursuant to §11(h) below within such survival period (if there is an applicable survival period
pursuant to §8(a) above), then Buyer shall indemnify each Seller Indemnitee from and against the entirety of any Adverse Consequences suffered (including any Adverse Consequences suffered after the end of any applicable survival period)
resulting from, arising out of, relating to, in the nature of, or caused by the breach. The term Seller Indemnitee shall include the Seller and any of its Subsidiaries (other than Target and InnoWare Plastic), parents, Affiliates, officers,
directors or employees. 
 (d) Matters Involving Third Parties. 

(i) If any third party notifies any Party (the “Indemnified Party”) with respect to any matter (a
“Third-Party Claim”) that may give rise to a claim for indemnification against any other Party (the “Indemnifying Party”) under this §8, then the Indemnified Party shall promptly notify each Indemnifying Party
thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the
Indemnifying Party is thereby prejudiced. 
 (ii) Any Indemnifying Party will have the right at its sole cost and
expense to assume the defense of the Third-Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party at any time within 15 days after the Indemnified Party has given notice of the Third-Party Claim; provided, however,
that the Indemnifying party must conduct the defense of 
  

 39 

 
the Third-Party Claim actively and diligently thereafter in order to preserve its rights in this regard; and provided further that the Indemnified Party may retain separate co-counsel as its sole
cost and expense and participate in the defense of the Third-Party Claim. 
 (iii) So long as the Indemnifying
Party has assumed and is conducting the defense of the Third-Party Claim in accordance with §8(d)(ii) above, (A) the Indemnified Party will not consent to the entry of any judgment on or enter into any settlement with respect to the
Third-Party Claim without the prior written consent of the Indemnifying Party (not to be unreasonably withheld, conditioned or delayed), and (B) unless the judgment or proposed settlement involves only the payment of money damages by one or
more of the Indemnifying Parties and does not impose an injunction or other equitable relief upon the Indemnified Party, the Indemnifying Party will not consent to the entry of any judgment on or enter into any settlement with respect to the
Third-Party Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld, conditioned or delayed). 

(iv) In the event none of the Indemnifying Parties assumes and conducts the defense of the Third-Party Claim in accordance
with §8(d)(ii) above, however, (A) the Indemnified Party may at its sole cost and expense (except to the extent such costs and expenses are indemnifiable under this §8) defend against, and consent to the entry of any judgment on or
enter into any settlement with respect to, the Third-Party Claim in any manner he, her, or it may reasonably deem appropriate (and the Indemnified Party need not consult with, or obtain any consent from, any Indemnifying Party in connection
therewith), (B) the Indemnifying Parties will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim to the fullest
extent provided in this §8. 
 (e) Determination of Adverse Consequences. The Parties shall take into account the
time cost of money (using the Applicable Rate as the discount rate) in determining Adverse Consequences for purposes of this §8. All indemnification payments under this §8 shall be paid by the Indemnifying Party net of any Tax benefits and
insurance coverage that may be available to the Indemnified Party. An Indemnified Party shall use reasonable commercial efforts to mitigate the amount and extent of any Adverse Consequences. All indemnification payments under this §8 and
§9(a) shall be deemed adjustments to the Purchase Price. 
 (f) Recoupment Against Escrow Agreement. Any
indemnification to which Buyer is entitled under this Agreement as a result of any Adverse Consequences it may suffer shall first be made as a payment to Buyer from the Escrow Account in accordance with the terms of the Escrow Agreement and, to the
extent that the aggregate amount of such indemnification exceeds the Escrow Amount plus any interest accrued thereon, from Seller. 

(g) Exclusive Remedy. 

(i) The foregoing indemnification provisions shall be the sole and exclusive remedy for any Adverse Consequences of Buyer,
Target or their respective Subsidiaries with respect to any misrepresentation or inaccuracy in, or breach of, any representations or warranties or any breach or failure in performance of any covenants or agreements made by Seller in this Agreement
or in any exhibit or schedules hereto or any certificate delivered hereunder or otherwise with respect to the transactions contemplated hereby. 

(ii) No claim shall be brought or maintained by Buyer, Target or any of their respective Subsidiaries or their respective
successors or permitted assigns against any officer, director, employee (present or former), partner or Affiliate of any party hereto which is not otherwise expressly identified as a party hereto, and no recourse shall be brought or granted against
them, by virtue of or based upon any alleged misrepresentation or inaccuracy in or breach of any of the representations, warranties or covenants of any party hereto set forth or contained in this Agreement or any exhibit or schedule hereto or any
certificate delivered hereunder. 
  

 40 

 (h) Purchase Price Adjustment. Notwithstanding anything to the contrary herein,
Seller shall not be obligated to indemnify Buyer against any Adverse Consequences as a result of, or based upon or arising from, any claim or liability to the extent such claim or liability is taken into account in determining the Preliminary
Purchase Price pursuant to §2(f). In addition, no such Adverse Consequences shall be included in meeting the stated indemnification deductible in §8(b) above. 

(i) Acknowledgment by Buyer. Buyer has conducted to its satisfaction an independent investigation and verification of the
financial condition, results of operations, assets, Liabilities, properties and projected operations of Target and, in making its determination to proceed with the transactions contemplated by this Agreement, Buyer has relied on the results of its
own independent investigation and verification and the representations and warranties of Seller expressly and specifically set forth in this Agreement. Such representations and warranties by Seller constitute the sole and exclusive representations
and warranties of Seller to Buyer in connection with the transactions contemplated hereby. With respect to any estimates, projected financial results or forecasts provided to Buyer, Buyer acknowledges that there are uncertainties inherent in
attempting to make such estimates, projections and other forecasts and plans, that Buyer is familiar with such uncertainties, and that Buyer will have no claim against Seller with respect thereto. Accordingly, neither Seller nor Target nor InnoWare
Plastic make any representations or warranties whatsoever with respect to any estimates, projections, and other forecasts and plans provided to Buyer. 

§9. Tax Matters. The following provisions shall govern the allocation of responsibility as between Buyer and Seller for
certain tax matters following the Closing Date: 
 (a) Tax Indemnification. Seller shall indemnify Target, InnoWare
Plastic, Buyer, and each Buyer Affiliate and hold them harmless from and against without duplication, any loss, claim, liability, expense, or other damage attributable to (i) all Taxes (or the non-payment thereof) of Target and InnoWare Plastic
for all taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing Date (“Pre-Closing Tax Period”), (ii) all
Taxes of any member of an affiliated, consolidated, combined or unitary group of which Target or InnoWare Plastic (or any predecessor of any of the foregoing) is or was a member on or prior to the Closing Date, including pursuant to Treasury
Regulation §1.1502-6 or any analogous or similar state, local, or foreign law or regulation, (iii) any and all Taxes of any person (other than Target and InnoWare Plastic) imposed on Target or InnoWare Plastic as a transferee or successor,
by contract or pursuant to any law, rule, or regulation, which Taxes relate to an event or transaction occurring before the Closing; and (iv) all Taxes of Target or InnoWare Plastic relating to cancellation of indebtedness income of Target or
InnoWare Plastic resulting from the release of Target and/or InnoWare Plastic from its Indebtedness (i) under the Senior Credit Agreement, (ii) under the Subordinated Note Purchase Agreement dated as of August 31, 2006 by and among
Seller, Target, InnoWare Plastic, InnoWare Paper, Inc. and Norwest Mezzanine Partners II, LP, as amended by Limited Waiver and First Amendment to Subordinated Note Purchase Agreement entered into as of November 3, 2008 or (iii) to Seller
or Seller’s Subsidiaries or Affiliates (other than Target and InnoWare Plastic. 
 (b) Straddle Period. In the case
of any taxable period that includes (but does not end on) the Closing Date (a “Straddle Period”), the amount of any Taxes based on or measured by income or receipts of Target and InnoWare Plastic for the Pre-Closing Tax Period shall
be determined based on an interim closing of the books as of the close of business on the Closing Date (and for such purpose, the taxable period of any partnership or other pass-through entity in which Target or InnoWare Plastic holds a beneficial
interest shall be deemed to terminate at such time) and the amount of other Taxes of Target and InnoWare Plastic for a Straddle Period that relates to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire taxable
period multiplied by a fraction the numerator of which is the number of days in the taxable period ending on the Closing Date and the denominator of which is the number of days in such Straddle Period. 

(c) Responsibility for Filing Tax Returns. Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax
Returns for Target and InnoWare Plastic that are filed after the Closing Date. If any Tax Return for Target and InnoWare Plastic (whether original or amended) prepared (or caused to be 

 

 41 

 
prepared) by Buyer relates to or includes any Pre-Closing Tax Period, then such Tax Return will be prepared in accordance with the past practice of Target and InnoWare Plastic. The Buyer will
give the Seller a copy of such Tax Return as soon as practicable after the preparation, but before the filing, thereof for Seller’s review and comment, except that Buyer shall not be required to consult with Seller regarding the filing of any
Section 338(g) election under the Code. Buyer will make any changes to such Tax Returns that are reasonably requested by Seller. 

(d) Cooperation on Tax Matters. 

(i) Buyer, Target and InnoWare Plastic, and Seller shall cooperate fully, as and to the extent reasonably requested by the
other Party, in connection with the filing of Tax Returns pursuant to §9(c) and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the
provision of records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material
provided hereunder. Target and InnoWare Plastic and Seller agree (A) to retain all books and records with respect to Tax matters pertinent to Target and InnoWare Plastic relating to any taxable period beginning before the Closing Date until the
expiration of the statute of limitations (and, to the extent notified by Buyer or Seller, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and
(B) to give the other Party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, Target and InnoWare Plastic or Seller, as the case may be, shall allow the
other Party to take possession of such books and records. For the avoidance of doubt, it is understood that significant assistance of Seller and its Affiliates will be required with respect to any extensions or returns due on or before
April 30, 2010. 
 (ii) Buyer and Seller further agree, upon request, to use their best efforts to obtain
any certificate or other document from any governmental authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the transactions contemplated
hereby). 
 (iii) Buyer and Seller further agree, upon request, to provide the other Party with all information
that either Party may be required to report pursuant to Code §6043, or Code §6043A, or Treasury Regulations promulgated thereunder. 

(e) Tax-Sharing Agreements. All tax-sharing agreements or similar agreements with respect to or involving Target and InnoWare
Plastic shall be terminated as of the Closing Date and, after the Closing Date, Target and InnoWare Plastic shall not be bound thereby or have any liability thereunder. 

(f) Certain Taxes and Fees. All transfer, documentary, sales, use, stamp, registration and other such Taxes, and all conveyance
fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with consummation of the transactions contemplated by this Agreement shall be paid by Seller when due, and Seller will, at its own
expense, file all necessary Tax Returns and other documentation with respect to all such Taxes, fees and charges, and, if required by applicable law, Buyer will, and will cause its Affiliates to, join in the execution of any such Tax Returns and
other documentation. 
 (g) Reporting of Transactions. Seller will not claim a worthless stock loss with respect to the
stock of Target for any Tax period ending on or before the Closing Date. With respect to any Indebtedness of Target or Innoware Plastic under the Senior Credit Agreement not paid in cash on the Closing Date, the Seller will treat any obligation of
Seller or any Affiliate of Seller to pay any such amount under the Senior Credit Agreement as a capital contribution made by Seller to Target immediately prior to the Closing and will not claim any bad debt deduction with respect to any such amount.

  

 42 

 (h) Impact of NWC Adjustments. Notwithstanding anything to the contrary herein,
Seller shall not be obligated to indemnify Buyer for any amounts pursuant to this §9 to the extent such amount is taken into account in determining and reducing the Closing Date NWC. 

§10. Termination. 

(a) Termination of Agreement. Certain of the Parties may terminate this Agreement as provided below: 

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

(ii) Buyer may terminate this Agreement by giving written notice to Seller at any time prior to the Closing (A) in
the event Seller has breached any representation or warranty contained in this Agreement and such breach would or would reasonably be expected to result in a Material Adverse Effect (it being understood that, for purposes of determining the accuracy
of such representations and warranties, all “Material Adverse Effect” qualifications and other qualifications based on the word “material” or similar phrases contained in such representations shall be disregarded), Buyer has
notified Seller of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach; (B) in the event Seller has breached any material covenant contained in this Agreement (it being understood that, for
purposes of determining covenant compliance, all “Material Adverse Effect” qualifications and other qualifications based on the word “material” or similar phrases contained in such covenant shall be disregarded), Buyer has
notified Seller of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach, or (C) if the Closing shall not have occurred on or before April 30, 2010, by reason of the failure of any
condition precedent under §7(a) hereof (unless the failure results primarily from Buyer itself breaching any representation, warranty, or covenant contained in this Agreement); and 

(iii) Seller may terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (A) in
the event Buyer has breached any representation or warranty contained in this Agreement and such breach would or would reasonably be expected to result in a Material Adverse Effect (it being understood that, for purposes of determining the accuracy
of such representations and warranties, all “Material Adverse Effect” qualifications and other qualifications based on the word “material” or similar phrases contained in such representations shall be disregarded), Seller has
notified Buyer of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach; (B) in the event Buyer has breached any material covenant contained in this Agreement (it being understood that, for
purposes of determining covenant compliance, all “Material Adverse Effect” qualifications and other qualifications based on the word “material” or similar phrases contained in such covenant shall be disregarded), Seller has
notified Buyer of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach, or (C) if the Closing shall not have occurred on or before April 30, 2010, by reason of the failure of any
condition precedent under §7(b) hereof (unless the failure results primarily from Seller breaching any representation, warranty, or covenant contained in this Agreement). 

(b) Effect of Termination. If any Party terminates this Agreement pursuant to §10(a) above, all rights and obligations of the
Parties hereunder shall terminate without any Liability of any Party to any other Party (except for any Liability of any Party then in breach). 

§11. Miscellaneous. 

(a) Nature of Seller’s Obligations. Seller shall be responsible to the extent provided in §8(b)(i), (ii) and
(iii) above for the entirety of any Adverse Consequences Buyer Indemnitees may suffer as a result of any breach of the representations, warranties, and covenants in this Agreement. 

 

 43 

 (b) Press Releases and Public Announcements. No Party shall issue any press release
or make any public announcement relating to the subject matter of this Agreement without the prior written approval of Buyer and Seller; provided, however, that any Party may make any public disclosure it believes in good faith is required by
applicable law or any listing or trading agreement concerning its publicly traded securities (in which case the disclosing Party will use its reasonable best efforts to advise the other Parties prior to making the disclosure). 

(c) No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties
and their respective successors and permitted assigns. 
 (d) Entire Agreement. This Agreement (including the documents
referred to herein) constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter
hereof. 
 (e) Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties
named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of his, her, or its rights, interests, or obligations hereunder without the prior written approval of Buyer and Seller; provided,
however, that Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or more of its Affiliates to perform its obligations hereunder (in any or all of which cases
Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder). 
 (f) Counterparts.
This Agreement may be executed in one or more counterparts (including by means of facsimile), each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

(g) Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of this Agreement. 
  

 44 

 (h) Notices. All notices, requests, demands, claims, and other communications
hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient, (ii) 1 business day after being sent to the recipient by
reputable overnight courier service (charges prepaid), (iii) 1 business day after being sent to the recipient by facsimile transmission or electronic mail, or (iv) 4 business days after being mailed to the recipient by certified or
registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below: 
  

			
	If to Seller:	  	Copies to:
		
	InnoWare, LLC	  	Barbara Muller
	Attn: John D. Rice	  	Fredrikson & Byron, P.A.
	c/o InnoWare Paper, Inc.	  	200 South Sixth Street, Suite 4000
	W165 N5830 Ridgewood	  	Minneapolis, MN 55402-1425
	Menomonee Falls, WI 53051-5655	  	Phone: (612) 492-7050
	Phone: (262) 345-6010	  	Fax: (612) 492-7077
	Fax: (262) 252-7710	  	Email: bmuller@fredlaw.com
	Email: john.rice@innowareinc.com	  	
		
		  	Bruce Engler
		  	Faegre & Benson LLP
		  	2200 Wells Fargo Center
		  	90 South Seventh Street
		  	Minneapolis, MN 55402
		  	Phone: (612) 766-8811
		  	Fax: (612) 766-1600
		  	Email: bengler@faegre.com
		
	If to Buyer:	  	Copy to:
		
	Solo Cup Operating Corporation	  	J. Craig Walker
	Attn: General Counsel	  	K&L Gates LLP
	150 S. Saunders Road, Suite 150	  	70 W. Madison St., Suite 3100
	Lake Forest, IL 60045	  	Chicago, Illinois 60602
	Phone: (847)444-3387	  	Phone: (312) 807-4321
	Fax: (847)	  	Fax: (312) 827-8179
	Email: Jan.Reed@solocup.com	  	Email: Craig.Walker@klgates.com

 Any Party may
change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth. 

(i) Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Illinois
without giving effect to any choice or conflict of law provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. 

(j) Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and
signed by Buyer and Seller. No waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and
signed by the Party making such waiver nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such default, misrepresentation, or breach of warranty or covenant. 
 (k) Severability. Any term or provision
of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision
in any other situation or in any other jurisdiction. 
 (l) Expenses. Except as otherwise specifically provided in this
Agreement, each of Buyer, Seller, Target, and InnoWare Plastic shall bear its own costs and expenses (including legal fees and expenses) 

 

 45 

 
incurred in connection with this Agreement and the transactions contemplated hereby; provided, however, that Seller shall also bear the costs and expenses of Target and InnoWare
Plastic (including all of their legal fees and expenses) in connection with this Agreement and the transactions contemplated hereby incurred prior to Closing. 

(m) Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word
“including” shall mean including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) that the Party has not breached shall not
detract from or mitigate the fact that the Party is in breach of the first representation, warranty, or covenant. 
 (n)
Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 

(o) Informal Dispute Resolution. 

(i) Except for any dispute under § 2(f)(3), the parties shall attempt in good faith to resolve any dispute arising
out of or relating to this Agreement, promptly by negotiations between executives who have authority to settle the controversy for each of Buyer and Seller. Either party may give the other party written notice of any dispute not resolved in the
normal course of business. Within twenty (20) days after delivery of said notice, executives representing each of Buyer and Seller shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to
exchange relevant information and to attempt to resolve the dispute. If the matter has not been resolved within thirty (30) days of the disputing party’s notice, or if the parties fail to meet within twenty (20) days, either Buyer or
Seller may initiate arbitration of the controversy or claim as provided hereinafter. 
 (ii) If a Party intends
to be accompanied at a meeting by an attorney, the other Party shall be given at least three (3) business days’ notice of such intention and may also be accompanied by an attorney. All negotiations pursuant to this §11(o) are
confidential and shall be treated as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and applicable state rules of evidence. 

(p) Arbitration. Except for any dispute under § 2(f)(3), any controversy or claim arising out of, relating to, or in
connection with this Agreement or any related agreement and not resolved pursuant to §11(q) shall be settled by arbitration in accordance with the following provisions: 

(i) The agreement of the Parties to arbitrate covers all disputes of every kind relating to or arising out of this
Agreement, any related agreement, or any of the transactions contemplated hereby, including the interpretation, breach, termination, or validity hereof or thereof, except that any Party may apply to any court of competent jurisdiction for emergency
or provisional relief in order to prevent irreparable harm to such Party pending the appointment of the arbitrators hereunder, including a temporary restraining order, preliminary injunction, or other similar relief, in connection with any matter
for which equitable relief is specifically provided in this Agreement or any other related agreement. Disputes include actions for breach of contract with respect to this Agreement or the related agreements, as well as any claim based upon tort or
any other causes of action relating to the negotiation, execution, delivery, or performance of this Agreement or to the transactions contemplated hereby, such as claims based upon an allegation of fraud or misrepresentation and claims based upon a
federal or state statute. In addition, the arbitrators selected according to the procedures set forth below shall determine the arbitrability of any matter covered by this §11(p), and their decision shall be final and binding on the Parties.

  

 46 

 (ii) The forum for the arbitration shall be Indianapolis, Indiana.

 (iii) The governing law for the arbitration shall be the law of the State of Delaware, without reference to
its conflicts of laws provisions. 
 (iv) There shall be three arbitrators, unless the Parties are able to agree
on a single arbitrator. In the absence of such agreement within ten days after the initiation of an arbitration proceeding, the Buyer shall select one arbitrator and the Seller shall select one arbitrator, and those two arbitrators shall then
select, within ten days, a third arbitrator. If those two arbitrators are unable to select a third arbitrator within such ten-day period, a third arbitrator shall be appointed from the commercial panel of the American Arbitration Association in
accordance with the selection rules of the American Arbitration Association. The decision in writing of at least two of the three arbitrators shall be final and binding upon the Parties, unless the arbitrators shall have committed a gross and
manifest error with respect to applicable law, in which case a party may appeal such error to the Federal District Court for the Southern District of Indiana. The Parties submit to the exclusive jurisdiction of such court in connection with any such
appeal, and waive any and all objections to such jurisdiction that it may have under the laws of the United States or of any state. 

(v) The rules of arbitration shall be the Commercial Arbitration Rules of the American Arbitration Association, as
modified by any other instructions that the Parties may agree upon at the time. If there is any conflict between those Rules and the provisions of this section, the provisions of this section shall prevail. 

(vi) The arbitrators’ decision shall be in writing and shall provide a reasoned basis, including all relevant
findings of fact and conclusions of law, for the resolution of each dispute and for any award. 
 (vii) Each
Party to any arbitration pursuant to this §11(p) shall pay the fees and expenses of the arbitrator selected by such Party, and shall share equally the fees and expenses of the American Arbitration Association and the third arbitrator
contemplated by §11(p)(iv). 
 (viii) The arbitrators shall have power and authority to award any remedy or
judgment that could be awarded by a court of law in Indiana. The award rendered by arbitration shall be final and binding upon the Parties, and judgment upon the award may be entered in any court of competent jurisdiction in the United States.
Notwithstanding the foregoing, the arbitrators shall have no authority to award any remedy or judgment that is expressly proscribed by this Agreement. 
  

 47 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above
written. 
  

			
	SOLO CUP OPERATING CORPORATION
		
	By:	 	 /s/ Robert M. Korzenski

			
		
	Print Name:	 	 Robert M. Korzenski

			
		
	Title:	 	 Chief Executive Officer and
President

			
	
	INNOWARE, LLC

			
		
	By:	 	 /s/ John D. Rice

			
		
	Print Name:	 	 John D. Rice

			
		
	Title:	 	 Chief Operating Officer

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