Document:

exv10w2

Exhibit 10.2

STOCK PURCHASE AGREEMENT

by and among

THE STOCKHOLDERS OF

D.S.B. Holding Corp.,

a Delaware corporation,

as Sellers

and

GIBRALTAR INDUSTRIES, INC.

a Delaware corporation

as Purchaser

Dated as of March 10, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Certain Definitions
	 	 	1	 
	1.2 Construction of Certain Terms and Phrases
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE TRANSACTION
	 	 	15	 
	 
	 	 	 	 
	2.1 Purchase and Sale of the Purchased Shares
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 3 PURCHASE PRICE
	 	 	16	 
	 
	 	 	 	 
	3.1 Purchase Price
	 	 	16	 
	3.2 Payment of the Purchase Price
	 	 	16	 
	3.3 Working Capital Purchase Price Adjustment
	 	 	18	 
	3.4 Post-Closing Working Capital Adjustment
	 	 	20	 
	3.5 Negotiation of Purchase Price Adjustment
	 	 	21	 
	3.6 Resolution of Disputes by Referee
	 	 	22	 
	3.7 Payment of Closing Purchase Price Adjustment
	 	 	23	 
	3.8 Options
	 	 	24	 
	3.9 Withholding Rights
	 	 	25	 
	3.10 Tax Treatment
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 4 CLOSING MATTERS
	 	 	25	 
	 
	 	 	 	 
	4.1 Closing
	 	 	25	 
	4.2 Prior to Closing
	 	 	25	 
	4.3 Deliveries at Closing
	 	 	26	 
	4.4 Further Assurances and Cooperation
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLERS
	 	 	28	 
	 
	 	 	 	 
	5.1 Representations and Warranties of Sellers
	 	 	28	 
	5.2 Representations and Warranties of Purchaser
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 6 INDEMNIFICATION
	 	 	50	 
	 
	 	 	 	 
	6.1 Indemnification by Sellers and Purchaser
	 	 	50	 
	6.2 Indemnification Procedures
	 	 	51	 
	6.3 Survival
	 	 	53	 
	6.4 Limitations
	 	 	54	 
	6.5 Exclusive Remedy; Purchaser’s Knowledge
	 	 	55	 
	6.6 Limitations on Damages
	 	 	56	 
	6.7 Method and Treatment of Indemnification Payments
	 	 	56	 

 i

 

	 	 	 	 	 
	 	 	Page	 
	6.8 Materiality
	 	 	56	 
	6.9 Mitigation and Limitation of Claims
	 	 	56	 
	6.10 Purchaser’s Remediation Work
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 7 TAX MATTERS
	 	 	60	 
	 
	 	 	 	 
	7.1 Straddle Period
	 	 	60	 
	7.2 Tax Returns
	 	 	61	 
	7.3 Amendment to Tax Returns
	 	 	61	 
	7.4 Tax Refunds and Benefits Refunds
	 	 	61	 
	7.5 No Code Section 338 Election
	 	 	63	 
	7.6 Cooperation on Tax Matters
	 	 	63	 
	7.7 Treatment of Payments
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 8 CERTAIN COVENANTS
	 	 	64	 
	 
	 	 	 	 
	8.1 Non-Compete; Non-Solicitation
	 	 	64	 
	8.2 Restricted Use of Confidential Information
	 	 	65	 
	8.3 Conduct of Business by the Companies Pending the Closing
	 	 	66	 
	8.4 Announcement
	 	 	68	 
	8.5 Access to Information
	 	 	68	 
	8.6 Consents
	 	 	68	 
	 
	 	 	 	 
	ARTICLE 9 SELLERS’ REPRESENTATIVE
	 	 	70	 
	 
	 	 	 	 
	9.1 Authorization of the Sellers’ Representative
	 	 	70	 
	9.2 Payments of Expenses; Holdbacks
	 	 	72	 
	9.3 Percentage Interests, Disbursements
	 	 	73	 
	9.4 Compensation; Exculpation; Indemnity; Security
	 	 	73	 
	9.5 Successor Representative; Termination of Representative
	 	 	75	 
	9.6 No Third Party Rights
	 	 	75	 
	9.7 No Liability of Purchaser
	 	 	75	 
	 
	 	 	 	 
	ARTICLE 10 CONDITIONS TO CLOSING
	 	 	75	 
	 
	 	 	 	 
	10.1 Conditions to Purchaser’s Obligation to Close
	 	 	75	 
	10.2 Conditions to Sellers’ Obligation to Close
	 	 	76	 
	10.3 Conditions to Obligations of Each Party to Close
	 	 	77	 
	 
	 	 	 	 
	ARTICLE 11 TERMINATION
	 	 	77	 
	 
	 	 	 	 
	11.1 Circumstances for Termination
	 	 	77	 
	11.2 Effect of Termination
	 	 	78	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	78	 
	 
	 	 	 	 
	12.1 Governing Law and Jurisdiction
	 	 	78	 
	12.2 Notices
	 	 	78	 

 ii

 

	 	 	 	 	 
	 	 	Page	 
	12.3 Amendments
	 	 	79	 
	12.4 Entire Agreement
	 	 	80	 
	12.5 Headings; Interpretation
	 	 	80	 
	12.6 No Assignment; Binding Effect
	 	 	80	 
	12.7 Invalidity
	 	 	80	 
	12.8 Counterparts
	 	 	81	 
	12.9 Incorporation by Reference
	 	 	81	 
	12.10 Disclosure Schedules
	 	 	81	 
	12.11 Time of the Essence
	 	 	81	 
	12.12 No Third Party Beneficiaries
	 	 	81	 
	12.13 Facsimile or Electronic Signature
	 	 	81	 
	12.14 Expenses
	 	 	81	 

 iii

 

EXHIBITS: 

	 	 	 

	Exhibit A

	 	Escrow Agreement

 iv

 

 SCHEDULES:

	 	 	 

	Section 1.1(b)

	 	Letters of Credit
	Section 1.1(c)

	 	Permitted Liens
	Section 1.1(e)

	 	Liens Imposed by Law
	Section 5.1(a)(ii)

	 	Power and Authority
	Section 5.1(a)(iii)

	 	Capitalization
	Section 5.1(a)(v)

	 	Pledged Stock
	Section 5.1(a)(vii)

	 	Subsidiaries
	Section 5.1(c)

	 	Consents; No Conflict
	Section 5.1(d)

	 	Governmental Approvals and Filings
	Section 5.1(e)

	 	Liabilities Not Disclosed in Financial Statements
	Section 5.1(f)

	 	Legal Proceedings
	Section 5.1(g)(i)

	 	Employee Benefit Plans
	Section 5.1(g)(vii)

	 	Acceleration of Vesting
	Section 5.1(h)

	 	Title
	Section 5.1(i)

	 	Intellectual Property
	Section 5.1(k)

	 	Permits
	Section 5.1(l)

	 	Environmental Matters
	Section 5.1(l)(iv)

	 	Hazardous Materials at Real Property
	Section 5.1(n)

	 	Taxes
	Section 5.1(o)

	 	No Material Adverse Change
	Section 5.1(p)

	 	Activities Outside of Ordinary Course of Business
	Section 5.1(q)

	 	Real Property
	Section 5.1(r)

	 	Employee Matters
	Section 5.1(u)

	 	Accounts Receivable
	Section 5.1(v)

	 	Insurance
	Section 5.1(v)(ii)

	 	Insurance Exceptions
	Section 5.1(w)

	 	Warranties; Products Liability Claims
	Section 5.1(y)

	 	Related Party Transactions
	Section 5.1(z)

	 	Powers of Attorney
	Section 5.1(aa)

	 	Systems

 v

 

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (collectively with the Exhibits and Schedules referred to
herein, this “Agreement”) is made as of the 10th day of March, 2011 (the “Execution Date”),
by and among each of the stockholders (individually, a “Seller” and, collectively,
“Sellers”) of D.S.B. Holding Corp., a Delaware corporation (“Holdings”), and
Gibraltar Industries, Inc., a Delaware corporation (“Purchaser”).

WITNESSETH:

     1. Holdings, through its direct wholly-owned subsidiary The D.S. Brown Company, an Ohio
corporation (“Brown”), engages in the business of the manufacture and sale of products for
use in the transportation infrastructure industry and all other activities conducted by Brown
related thereto (the “Business”).

     2. Brown has a wholly-owned subsidiary D.S. Brown (Shandong) Co., Ltd., a Shandong, China
corporation (“Brown China”).

     3. Purchaser wishes to purchase from Sellers, and Sellers wish to sell to Purchaser, the
Business by way of the purchase by Purchaser from Sellers of all of the issued and outstanding
shares of the capital stock of Holdings from Sellers.

     4. Each Seller desires to irrevocably appoint Sellers’ Representative as its representative
and proxy to act on behalf of such Seller in connection with this Agreement and to facilitate the
consummation of the Contemplated Transactions.

     NOW, THEREFORE, in consideration of the premises and of the respective representations,
warranties, covenants, agreements, and conditions contained herein, the adequacy and sufficiency of
which is hereby acknowledged by the parties hereto, and Sellers and Purchaser, intending to be
legally bound hereby, agree as follows:

ARTICLE 1

DEFINITIONS

     1.1 Certain Definitions. In this Agreement and any Exhibit or Schedule hereto, the
following capitalized terms have the following respective meanings:

     “Actual Value” has the meaning set forth in Section 3.6(b)(iii).

     “Affiliate” means, as to any Person, any other Person that, directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with
that Person. For purposes of this definition, “control” (including, with correlative meanings, the
terms “controlled by” and “under common control with”), as used with respect to any Person or group
of Persons, means possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of the Person, whether through the ownership of voting securities or
by contract.

 

 

     “Agreement” has the meaning set forth in the preamble.

     “Alternative Supplemental Estimated Remediation Cost” has the meaning set forth in
Section 6.10.

     “Ancillary Agreements” means all agreements, certificates, instruments or other
documents required to be executed and/or delivered pursuant to or in connection with this Agreement
by any Person, including, without limitation, the Related Agreements.

     “Antares” means Antares Capital Corporation, a Delaware corporation.

     “Antares Agreement” has the meaning set forth in Section 6.2(f).

     “Antitrust Laws” has the meaning set forth in Section 8.6(b).

     “Applicable Tax Refunds” has the meaning set forth in Section 7.4.

     “Approved Remediation Contractors” has the meaning set forth in Section 6.10.

     “Base Purchase Price” has the meaning set forth in Section 3.1.

     “Base Working Capital” has the meaning set forth in Section 3.3(b).

     “Basket” has the meaning set forth in Section 6.4(b).

     “Best Efforts” means the commercially reasonable efforts that a prudent Person wanting
to achieve the result in question would take under similar circumstances to achieve that result.

“Brown” has the meaning set forth in the recitals.

“Brown China” has the meaning set forth in the recitals.

“Business” has the meaning set forth in the recitals.

     “Business Day” means a day other than a Saturday, Sunday or national holiday on which
commercial banks in the State of Illinois are open for the transaction of commercial banking
business.

     “Business Material Adverse Effect” means any material and adverse event, occurrence,
circumstance, change or effect that, individually or with all related events, occurrences, changes,
circumstances or effects, has or would be reasonably likely to have, both a material and adverse
effect on the Business, taken as a whole. Notwithstanding the foregoing, none of the following
events constitute or will be taken into account in determining whether there has been a Business
Material Adverse Effect: any adverse change, event, development or effect to the extent arising
from or relating to (a) general business or economic conditions (including such conditions related
to the Business), (b) national or international political or social conditions (including
hostilities and terrorist activity), (c) financial, banking or securities markets (including any
disruption thereof and any decline in the price of any security or any market index), (d) changes
in GAAP, (e) changes in applicable Law, or (f) any change resulting from the execution of this

2

 

Agreement or the consummation of any of the Contemplated Transactions, including any change
resulting from or arising out of any announcement relating to this Agreement.

     “Cap” has the meaning set forth in Section 6.4(a).

     “Carve-out Date” has the meaning set forth in Section 8.3.

     “Carve-out Transfer” has the meaning set forth in Section 8.3.

     “Cash and Cash Equivalents” means all cash, rights in bank accounts, certificates of
deposit, bank deposits, cash equivalents, investment securities and checks or other payments
attributable to the period prior to the Effective Time (including received in lock boxes).

     “Claim” has the meaning set forth in Section 6.2(a).

     “Claim Notice” has the meaning set forth in Section 6.2(a).

     “Closing” means the consummation of the transactions contemplated in this Agreement.

     “Closing Balance Sheet” has the meaning set forth in Section 3.4(a).

     “Closing Cash” has the meaning set forth in Section 3.2(h).

     “Closing Date” has the meaning set forth in Section 4.1.

     “Closing Date Debt” has the meaning set forth in Section 3.2(d).

     “Closing Date Debt Amount” has the meaning set forth in Section 3.2(d).

     “Closing Date Debt Report” has the meaning set forth in Section 3.2(d).

     “Closing Date Tax Benefits” shall mean the Tax deductions to the Companies from or
relating to the payment of (a) the consideration to the Option Holders pursuant to the Option
Termination Agreements, (b) the Company Transaction Expenses, (c) any transaction bonuses or other
compensation payments paid by Holdings or its Subsidiaries in connection with the Closings and (d)
the payment of any outstanding Debt (including, for the avoidance of doubt, the Closing Date Debt
Amount) of Holdings or the Companies on the Closing Date.

     “Closing Payment” has the meaning set forth in Section 3.2(a).

     “Closing Purchase Price” has the meaning set forth in Section 3.4(a).

     “Closing Working Capital” has the meaning set forth in Section 3.4(a).

     “Code” means the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

     “Common Stock” means Holdings common stock, par value $0.01 per share.

     “Companies” or “Company Group” means, collectively, Holdings and Brown.

3

 

     “Company Intellectual Property” means all Intellectual Property owned or used by the
Companies in the conduct of the Business, together with all income, royalties, damages and payments
due or payable as of the Effective Time or thereafter (including the rights to enforce the
foregoing and to collect damages for past, present or future infringements or misappropriations
thereof), and all copies and tangible embodiments of the foregoing.

     “Company Permits” has the meaning set forth in Section 5.1(k).

     “Company Transaction Expenses” means (unless otherwise specified herein as the
responsibility of the Purchaser) the fees and expenses incurred by the Companies or the Sellers in
connection with the Contemplated Transactions (including fees of attorneys, Houlihan Lokey Howard &
Zukin Capital, Inc. and other professionals), in each case that are unpaid as of and through the
Closing Date.

     “Competing Business” means any Person engaged in the manufacture or assembly and sale
of structural steel, fabricated joint assemblies, structural bearing assemblies, expansion joints
or pavement seals and patches for use in elevated roadways, bridges or airport runways.

     “Confidential Information” means any and all of the following confidential or
proprietary information of the Companies or Purchaser that has been or may hereafter be disclosed
in any form, whether in writing, orally, electronically, visually or otherwise, or otherwise made
available by observation, inspection, or otherwise by either party or its directors, managers,
officers, employees, Affiliates, agents or advisors (each a “Representative”)
(collectively, a “Disclosing Party”) to the other party or its Representatives
(collectively, a “Receiving Party”):

     (a) all information that is a trade secret under applicable Law, including, without
limitation, Trade Secrets as defined under the Uniform Trade Secrets Act as adopted in the
State of Illinois;

     (b) all information concerning product specifications, data, know-how, formulae,
compositions, processes, designs, sketches, photographs, graphs, drawings, samples,
inventions and ideas, past, current and planned research and development, current and
planned manufacturing or distribution methods and processes, customer lists or identities,
current and anticipated customer requirements, price lists, market studies, business plans,
computer hardware and software and database technologies, systems, structures and
architectures;

     (c) all information concerning the business and affairs of the Disclosing Party (which
includes historical and current financial statements, financial projections and budgets, Tax
Returns and accountants’ materials, historical, current and projected sales, capital
spending budgets and plans, business plans, strategic plans, marketing and advertising
plans, publications, customer lists and files, contracts, the names and backgrounds of key
personnel and personnel training techniques and materials, however, documented), and all
quantifiable information obtained from review of the Disclosing Party’s documents or
property or discussions with the Disclosing Party regardless of the form of the
communication;

     (d) any documents or materials marked “confidential” or “proprietary”; and

4

 

     (e) all notes, analyses, compilations, studies, summaries and other material prepared
by the Receiving Party or any of its Representatives to the extent containing or based, in
whole or in part, upon any information included in the foregoing.

Any Trade Secrets of a Disclosing Party will also be entitled to all of the protections and
benefits under applicable Law. If any information that a Disclosing Party deems to be a trade
secret is found by a court of competent jurisdiction not to be a Trade Secret for purposes of this
Agreement, such information will still be considered Confidential Information for the purposes of
this Agreement to the extent included within the definition.

Upon the Closing, all Confidential Information of the Companies that relates solely to the Business
will become the property of Purchaser and thereafter shall be treated by Sellers and their
Affiliates for all purposes as Confidential Information of Purchaser subject to the provisions of
Section 8.2.

     “Contract” means any written or verbal contract, commitment, agreement or instrument,
including, without limitation, supply contracts, purchase orders, sale orders, customer agreements,
mortgages, subcontracts, indentures, leases of personal property, license agreements to or from any
of the Companies, deeds of trust, notes or guarantees, pledges, liens, or conditional sales
agreements to which the Person referred to is a party or by which any of its assets may be bound.

     “Contemplated Transactions” means all of the transactions to be carried out in
accordance with this Agreement, including the purchase and sale of the Purchased Shares, and the
performance by the parties of their other obligations under this Agreement.

     “Copyrights” means, as they exist anywhere in the world, copyrights and mask works,
including copyright registrations and applications for registration thereof, all renewals and
extensions thereof, and unregistered copyrights, and moral rights and economic rights of others in
any of the foregoing.

     “Damages” means all damages, payments, losses, injuries, penalties, fines,
forfeitures, assessments, claims, suits, proceedings, investigations, actions, demands, causes of
action, judgments, awards, charges, interest, costs and expenses of any nature (including court
costs, reasonable attorneys’, accountants’, consultants’ and experts’ fees, charges and other costs
and expenses incident to any proceedings or investigation or the defense of any Claim (whether or
not litigation has commenced)).

     “Debt” means, without duplication of any other items contained herein or in Closing
Date Debt, with respect to the Companies at any date: (a) any indebtedness (including interest,
fees and prepayment premiums or penalties) of the Companies for borrowed money or in respect of
loans or advances and other third-party financing (other than third party financing related to the
equipment leases listed on Section 5.1(h)(2) of the Disclosure Schedules); (b) any
indebtedness of the Companies evidenced by any note, bond, debenture, credit agreement or other
debt security; (c) any indebtedness of the Companies for the deferred purchase price of property or
services with respect to which the Companies are liable, contingently or otherwise, as obligor or
otherwise (other than trade payables and other current Liabilities incurred in the Ordinary Course

5

 

of Business); (d) any commitment by which the Companies assure a creditor, customer or another
Person against loss (including contingent reimbursement obligations with respect to letters of
credit (drawn or undrawn), guarantees or any similar arrangements backed by cash collateral
accounts, performance bonds or payment bonds); (e) any obligations under capitalized leases with
respect to which the Companies are liable, contingently or otherwise, as obligor, guarantor or
otherwise or with respect to which obligations such the Companies assure a creditor against loss;
(f) indebtedness of another Person which is guaranteed in any manner by the Companies (including
guarantees in the form of an agreement to repurchase or reimburse); and (g) any indebtedness
secured by any Lien on the Companies’ assets other than Permitted Liens.

     “Disclosing Party” has the meaning set forth in the definition of Confidential
Information.

     “Disclosure Schedules” means the disclosure schedules of Sellers as specified in this
Agreement that are delivered to Purchaser under this Agreement.

     “Effective Time” means 11:59 p.m., Eastern Time, on the Closing Date.

     “Employee Benefit Plans” has the meaning set forth in Section 5.1(g)(i).

     “Employee List” has the meaning set forth in Section 5.1(r)(i).

     “Environmental Laws” means all federal, state, local and foreign statutes and
regulations relating to pollution, the manufacture, processing, distribution, treatment, storage,
use, generation, transportation or disposal of Hazardous Materials, protection of human health or
protection of the environment, including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Clean Air
Act, the Clean Water Act and similar state statutes and regulations.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
rules and regulations promulgated thereunder.

     “Escrow Accounts” has the meaning set forth in Section 9.1(c).

     “Escrow Agent” means JP Morgan Chase.

     “Escrow Agreement” means the Escrow Agreement in the form of Exhibit A attached
hereto, by and among the Escrow Agent, Purchaser and Sellers’ Representative.

     “Estimated Closing Balance Sheet” has the meaning set forth in Section 3.3(a).

     “Estimated Closing Purchase Price” has the meaning set forth in Section
3.4(b).

     “Estimated Closing Working Capital” has the meaning set forth in Section
3.3(a).

     “Estimated Working Capital Adjustment” has the meaning set forth in Section
3.3(b).

     “Execution Date” has the meaning set forth in the preamble.

6

 

     “Final Payment Date” has the meaning set forth in Section 3.7(a).

     “Financial Statements” has the meaning set forth in Section 5.1(e)(i).

     “GAAP” means United States generally accepted accounting principles consistently
applied.

     “Goods” means raw materials, components, supplies, merchandise, finished goods or
other goods and services.

     “Government Antitrust Entity” has the meaning set forth in Section 8.6(b)(i).

     “Governmental or Regulatory Authority” means any federal, state, local or foreign
government, governmental authority or administrative or regulatory body thereof, any agency
instrumentality, political subdivision, department or branch thereof and any court, tribunal,
commission, or judicial or arbitral body thereof.

     “Hazardous Materials” means any substance, waste or material that has been defined or
regulated by any Environmental Law, including, but not limited to, substances that are radioactive,
hazardous or a waste, including PCBs, petroleum and any derivative by-products or any fraction
thereof, and all substances listed, defined or regulated as a “hazardous substance”, “hazardous
waste”, “hazardous material”, or “toxic substance” under any Environmental Law. Notwithstanding
the preceding, “Hazardous Materials” does not include any substance or material that is naturally
occurring and is present in the environment as a result of natural processes and not as a result of
human activities.

     “High Value” has the meaning set forth in Section 3.6(b)(ii).

     “Holdings” has the meaning set forth in the preamble.

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

     “Improvements” means all buildings, structures, fixtures and other improvements
located on the Real Property.

     “Indemnification Escrow Account” means the indemnification escrow subaccount held by
the Escrow Agent for the benefit of Purchaser and Sellers pursuant to the Escrow Agreement.

     “Indemnification Escrow Deposit” means $7.0 million held pursuant to the terms of the
Escrow Agreement.

     “Indemnified Party” has the meaning set forth in Section 6.2(a).

     “Indemnifying Party” has the meaning set forth in Section 6.2(a).

     “Initial Supplemental Estimated Remediation Cost” has the meaning set forth in
Section 6.10.

7

 

     “Insurance Policies” has the meaning set forth in Section 5.1(v).

     “Intellectual Property” means the following:

     (a) Trademarks;

     (b) Patents;

     (c) Copyrights;

     (d) Internet Assets;

     (e) Software; and

     (f) Trade Secrets.

     “Interim Financial Statements” has the meaning set forth in Section 5.1(e)(i).

     “Interim Balance Sheet” has the meaning set forth in Section 5.1(e)(ii).

     “Internet Assets” means, as they exist anywhere in the world, and subject to any
applicable registrar’s terms and conditions and agreements, domain names, Internet addresses and
other computer identifiers, web sites, web pages and similar rights and items.

     “Inventory” means all inventory owned by the Companies that is related to the Business
as of the Effective Time, including all inventories of raw materials, work-in-process, finished
goods, supplies, spare parts and packaging materials including inventory related to the Business,
that are either (a) located at any Brown owned or leased facility, (b) with customers on
consignment, or (c) with third parties.

     “Knowledge” means matters known and matters which, after due inquiry, would reasonably
be expected to be known by Kirk L. Feuerbach, Gerald A. Wetzel, Timothy L. Hack, Tom Lewis, Mark
Kaczinski and Gregory Greenberg.

     “Laws” means all laws, statutes, rules, regulations, ordinances and other
pronouncements having the effect of law in any jurisdiction or any state, county, city or other
political subdivision or of any Governmental or Regulatory Authority, including, without
limitation, Environmental Laws, public health, OSHA and anti-kickback statutes.

     “Leased Real Property” has the meaning set forth in Section 5.1(q).

     “Letter of Credit” means any letter of credit listed on Section 1.1(b) of the
Disclosure Schedules.

     “Liability” or “Liabilities” means any and all loss, damage, adverse claim,
fine or penalty and obligations (whether to make payments, to give notices or to perform or not
perform any action), commitments, contingencies and other liabilities of a Person (whether known or
unknown, asserted or not asserted, whether absolute, accrued, contingent, fixed or otherwise,
determined or determinable, liquidated or unliquidated, and whether due or to become due).

8

 

     “Lien” means any mortgage, pledge, security interest, hypothecation, assignment,
encumbrance, lease, lien, option, right of use, right of refusal and other rights of other Persons,
any conditional sale contract, title retention contract, or other encumbrance of any kind,
including easements, conditions, reservations and restrictions, other than a Permitted Lien.

     “Low Value” has the meaning set forth in Section 3.6(b)(i).

     “Material Contracts” has the meaning set forth in Section 5.1(j)(i).

     “Management Rights Agreements” have the meaning set forth in Section
4.3(a)(xii).

     “Ohio EPA” has the meaning set forth in Section 6.10.

     “Old Brown” has the meaning set forth in Section 5.1(a)(viii).

     “Old Brown Tax Escrow Amount” means $250,000.

     “Old Brown Tax Escrow Claims” means actual, out-of-pocket costs or expenses, including
reasonable attorneys’ fees, incurred by Purchaser or the Companies related to: (a) the collection
of amounts due to any or all of the Companies from Antares pursuant to the Antares Agreement
relating to any Proceeding commenced against any or all of the Companies seeking payment of Old
Brown Taxes, (b) the collection of amounts due to any or all of the Companies from Antares pursuant
to the Antares Agreement relating to the payment by any or all of the Companies of Old Brown Taxes
to any Governmental or Regulatory Authority, (c) the defense of any Proceeding commenced against
any or all of the Companies by any Governmental or Regulatory Authority seeking payment of Old
Brown Taxes, provided that: (i) the Companies shall have first demanded payment from Antares and
instituted Proceedings against Antares, and (ii) any amounts collected by the Companies from
Antares pursuant to the Antares Agreement, to the extent previously received by the Companies from
the Escrow Agent and attributable to out-of-pocket costs or expenses, including reasonable
attorneys’ fees, shall be refunded back to the Indemnification Escrow Account or if such account is
no longer in existence at that time, then to Sellers’ Representative for further disbursement to
Sellers, or (d) the negotiation and payment of a settlement of Old Brown Taxes with any
Governmental or Regulatory Authority provided that: (i) Sellers’ Representative consents to such
settlement, such consent not to be unreasonably withheld, conditioned or delayed, except that it is
acknowledged and agreed by the Purchaser and Sellers that Sellers’ Representative may, in good
faith, contest any assertion of liability relating to Old Brown Taxes and therefore withhold such
consent, (ii) the Companies shall have first demanded payment from Antares and instituted
Proceedings against Antares pursuant to the Antares Agreement, and (iii) any amounts collected as a
result of such Proceedings by the Companies from Antares pursuant to the Antares Agreement, to the
extent previously received by the Companies from the Escrow Agent and attributable to out-of-pocket
costs or expenses, including reasonable attorneys’ fees, shall be refunded back to the
Indemnification Escrow Account or if such account is no longer in existence at the time then to
Sellers’ Representative for further disbursement to Sellers.

     “Option” has the meaning set forth in Section 3.8.

     “Option Holders” has the meaning set forth in Section 3.8.

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     “Option Payment” has the meaning set forth in Section 3.2(g).

     “Option Termination Agreements” has the meaning set forth in Section 3.8.

     “Order” means and includes any writ, judgment, decree, injunction, award or other
order of any Governmental or Regulatory Authority.

     “Ordinary Course of Business” means an action taken by a Person if: (a) such action is
in the ordinary course of business and consistent with the past practices of such Person; (b) such
action is not required to be authorized by the board of directors or members of such Person (or by
any Person or group of Persons exercising similar authority); and (c) such action is similar in
nature and magnitude to actions customarily or previously taken, without any authorization by the
board of directors or members (or by any Person or group of Persons exercising similar authority),
in the ordinary course of normal operations or business activities of other Persons that are in the
same line of business or acting under a similar set of circumstances as such Persons.

     “Organizational Document” means; (a) the articles or certificate of incorporation and
the bylaws of a corporation; (b) the articles of organization, operating agreement, limited
liability company agreement, or similar document governing a limited liability company; (c) any
other charter, articles, bylaws, certificate, statement, statutes or similar document adopted,
filed or registered in connection with the creation, formation, organization, or governance of a
Person, and any Contract among the equity holders, partners or members of a Person relating to the
ownership of such Person; and (d) any amendment to any of the foregoing.

     “Original Filing Date” has the meaning set forth in Section 8.6(b).

     “OSHA” means the Occupational Safety and Health Act of 1970, 29 U.S.C. §651, et seq.

     “Outside Closing Date” has the meaning set forth in Section 11.1(c).

     “Owned Real Property” has the meaning set forth in Section 5.1(q).

     “Patents” means, as they exist anywhere in the world, patents, patent applications and
statutory invention registrations, designs and improvements described and claimed therein,
patentable inventions and other patent rights (including any divisions, continuations,
continuations-in-part, reissues, reexaminations, extensions, equivalents or interferences thereof,
whether or not patents are issued on any such applications and whether or not any such applications
are modified, withdrawn, or resubmitted), and all rights therein provided.

     “Payables” means payment obligations or indebtedness of the Companies to trade
creditors which are classified as accounts payable in accordance with GAAP.

     “Percentage Interest” has the meaning set forth in Section 9.3(a).

     “Permits” means all licenses, permits, authorizations, approvals, registrations,
franchises and similar consents granted or issued by any Governmental or Regulatory Authority.

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     “Permitted Lien” means (a) real property taxes and assessments, both general and
special, that are a Lien but not yet due and payable, (b) exceptions directly or indirectly created
by Purchaser, (c) the Liens listed on Section 1.1(c) of the Disclosure Schedules, (d)
restrictive covenants, easement agreements and other Liens of record with respect to Real Property
which do not adversely affect the operation of the Business in the Ordinary Course of Business, (e)
Liens imposed by applicable Law, such as materialmen’s, mechanics’, carriers’, workmen’s,
repairmen’s and other similar Liens arising in the Ordinary Course of Business for amounts not yet
due or which are being contested in good faith; provided that all such Liens are identified in
Section 1.1(e) of the Disclosure Schedules and can be released and discharged with an
aggregate payment of not more than $50,000, (f) pledges or deposits to secure obligations under
workers’ compensation laws or similar legislation or to secure public or statutory obligations, and
(g) zoning, building codes, and other land uses rules, regulations and Laws.

     “Per Share Common Closing Payment” shall be equal to the (a) Closing Payment, plus the
aggregate exercise price of all of the in-the-money Options, less the sum of the aggregate
liquidation preference and unpaid dividends applicable to any Preferred Stock divided by (B) the
aggregate number of shares of Common Stock issued and outstanding on the Closing Date, plus the
aggregate number of shares of Common Stock underlying any in-the-money Options.

     “Per Share Preferred Closing Payment” shall be equal to the sum of the aggregate
liquidation preference and unpaid dividends applicable to any Preferred Stock divided by the number
of shares of Preferred Stock outstanding on the Closing Date.

     “Person” means any natural person, corporation, general partnership, limited
partnership, limited liability partnership, limited liability company, proprietorship, other
business organization, trust, Governmental or Regulatory Authority, including any entity
disregarded for federal income tax purposes, or any other entity whatsoever.

     “Phase I” has the meaning set forth in Section 6.10.

     “Phase II” has the meaning set forth in Section 6.10.

     “Post-Closing Tax Period” means any taxable period (or portion thereof) commencing
after the Closing, including the portion of any Straddle Period commencing after the Closing.

     “Pre-Closing Stub Returns” has the meaning set forth in Section 7.2.

     “Pre-Closing Tax Period” means any taxable period (or portion thereof) ending on or
prior to the Closing, including the portion of any Straddle Period up to and including the date of
Closing.

     “Preferred Stock” means Holdings Preferred Stock, par value $0.01 per share.

     “Preferred Stock Payment” means the aggregate amount payable at the Closing in respect
of all the outstanding shares of Preferred Stock of Holdings, plus accrued but unpaid dividends
thereof.

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     “Proceeding” means any judicial, administrative or arbitral, claims, controversies,
demands, actions, lawsuits, investigations, hearings, proceedings (public or private) or other
disputes, formal or informal, including any by, involving or before any arbitrator, mediator or any
Governmental or Regulatory Authority and including any audit or examination or other administrative
or court proceeding with respect to Taxes or Tax Returns.

     “Products” means any product or line of products which any Company has marketed and/or
sold in the preceding two (2) calendar years.

     “Purchased Shares” means one hundred percent (100%) of the issued and outstanding
shares of the capital stock of Holdings, all of which are held of record and beneficially by
Sellers.

     “Purchaser” has the meaning set forth in the preamble.

     “Purchaser Group” has the meaning set forth in Section 7.4(a)(i).

     “Purchaser Indemnified Parties” has the meaning set forth in Section 6.1(a).

     “Purchaser’s Approved Remediation Contractor” has the meaning set forth in Section
6.10.

     “Purchaser’s Closing Purchase Price’ has the meaning set forth in Section
3.4(a).

     “Purchaser’s Initial Estimated Remediation Cost” has the meaning set forth in
Section 6.10.

     “Purchaser Remediation Costs” has the meaning set forth in Section 6.10.

     “Purchaser’s Remediation Work” has the meaning set forth in Section 6.10.

     “Purchaser Tax Act” means any (a) Tax election, waiver or disclaimer, (b) change in
Tax accounting method, or (c) change in the Tax reporting treatment of any item, in each case that
(i) is made by Purchaser or its Affiliates (including the Companies) or any successor or assign of
Purchaser or its Affiliates after the Closing Date, and for purposes of (a)-(c), includes any
change to the Companies’ Tax reporting, treatment or Tax method as a result of the Companies being
included in the Purchaser Group’s consolidated Tax Return after the Closing Date; (ii) is made with
respect to the Companies or any of their successors or assigns, (iii) is not required by Law or any
Taxing authority, (iv) has not been approved in writing by the Sellers’ Representative and (v) is
the cause of any increase in income or a decrease in deductions or other allowance or credits for
any taxable period ending on or before the Closing that results in an increase in Taxes for such
period or for which the Sellers would be responsible under this Agreement, as well as any action
outside the Ordinary Course of Business taken by or on behalf of the Companies on the Closing Date
after the Closing.

     “Real Property” means all real property owned or used by the Companies, including all
parcels and tracts of land in which the Companies have a fee simple estate or a leasehold estate,
and all Improvements, easements and appurtenances thereto.

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     “Receivables” means the (a) trade accounts receivable of the Companies which are
reflected on the Interim Financial Statements, and (b) trade accounts receivable of the Companies
from the date of the Interim Financial Statements through the Effective Time, in each case,
excluding any amounts due from Affiliates.

     “Receiving Party” has the meaning set forth in the definition of Confidential
Information.

     “Referee” has the meaning set forth in Section 3.6(a).

     “Related Agreement” means the Escrow Agreement.

     “Representative” has the meaning set forth in the definition of Confidential
Information.

     “Required Remediation” means to the extent that (A) investigation, containment, or
remediation of Hazardous Material is required pursuant to an applicable Environmental Law that is
in effect as of the Closing Date; (B) the cleanup standards that must be met to satisfy the
requirements of the applicable Environmental Law shall reflect the least stringent standards which
are applicable to the North Baltimore Real Property and acceptable to the Ohio EPA; and (C)
investigation, containment, or remediation is conducted using the most cost-effective available
methods, acceptable to the Ohio EPA, including, without limitation, the use of institutional or
engineering controls or deed restrictions such as (i) a deed restriction limiting the use of the
Real Property to industrial purposes, (ii) a deed restriction prohibiting groundwater from being
extracted or used for drinking water or other purposes, and (iii) using an existing structure or
installing an engineered barrier to prevent exposure to a Hazardous Material.

     “Restricted Parties” has the meaning set forth in Section 8.1(a).

     “Restriction Period” has the meaning set forth in Section 8.1(a).

     “Selected Approved Remediation Contractor” has the meaning set forth in Section
6.10.

     “Seller Indemnified Parties” has the meaning set forth in Section 6.1(b).

     “Sellers” has the meaning set forth in the preamble.

     “Sellers’ Approved Remediation Contractor” has the meaning set forth in Section
6.10.

     “Sellers Initial Estimated Remediation Cost” has the meaning set forth in Section
6.10.

     “Sellers’ Representative” has the meaning set forth in Section 9.1.

     “Sellers Closing Purchase Price” has the meaning set forth in Section 3.5.

     “Senior Subordinated Notes and Share Purchase Agreement” has the meaning set forth in
Section 4.3(a)(xiii).

     “Software” means computer software programs, including all source code, object code
(to the extent of existing license or ownership rights), specifications, databases and
documentation related to such programs.

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     “Stockholders Agreement” has the meaning set forth in Section 4.3(a)(v).

     “Straddle Period” has the meaning set forth in Section 7.1.

     “Structures” has the meaning set forth in Section 5.1(q).

     “Tangible Personal Property” means the equipment, machinery, tools, dies, molds,
tooling (including that located at suppliers’ places of business), furniture, fixtures, computers,
hardware supplies, motor vehicles, supplies and other tangible personal property owned by the
Companies and used in the Business.

     “Tax Returns” means all returns, declarations, reports, statements, schedules,
notices, forms or other documents or information required to be filed with a Governmental or
Regulatory Authority in respect of any Tax, and the term “Tax Return” means any one of the
foregoing Tax Returns as well as any foreign bank account filing requirements.

     “Tax” or “Taxes” shall mean any federal, state, local or foreign income, gross
receipts, payroll, employment, excise, custom, duty, franchise, net worth, profits, withholding,
social security (or similar), unemployment, real property, personal property, sales, use, transfer,
value added, estimated or alternative with add-on minimum tax, however denominated, including any
interest, penalty, fines, fees, levies or assessments, including as a result of the Companies
failure, if any, to disclose any foreign bank accounts.

     “Tax Refund Account” has the meaning set forth in Section 7.4.

     “Top Twenty Customers” has the meaning set forth in Section 5.1(s)(i).

     “Top Twenty Suppliers” has the meaning set forth in Section 5.1(s)(ii).

     “Trade Secrets” means, as they exist anywhere in the world, trade secrets, know-how,
invention disclosures, processes, procedures, customer lists and personally-identifiable
information, databases, confidential business information, concepts, ideas, designs, research or
development information, techniques, technical information, specifications, operating and
maintenance manuals, engineering drawings, methods, technical data, discoveries, modifications,
extensions, improvements, and other proprietary information and rights (whether or not patentable
or subject to copyright or mask work protection).

     “Trademarks” means, as they exist anywhere in the world, trademarks, service marks,
trade dress, trade names, brand names, designs, logos, or corporate names, whether registered or
unregistered, and all registrations and applications for registration thereof, and all goodwill
associated therewith, and all rights therein.

     “Transfer Taxes” means all transfer, documentary, sales, registration, recordation
taxes and similar charges arising in connection with the transfer of the Purchased Shares affected
pursuant to this Agreement.

     “U.S.” means the United States of America.

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     “VAP” has the meaning set forth in Section 6.10.

     “Working Capital” has the meaning set forth in Section 3.3.

     “Working Capital Escrow Account” means the working capital escrow subaccount held by
the Escrow Agent for the benefit of Purchaser and Sellers pursuant to the Escrow Agreement.

     “Working Capital Escrow Deposit” means $1.0 million held pursuant to the terms of the
Escrow Agreement.

     1.2 Construction of Certain Terms and Phrases.

     (a) Unless the context of this Agreement otherwise requires, (i) words of any
gender include each other gender; (ii) words using the singular or plural number also
include the plural or singular number, respectively; (iii) the terms “hereof,” “herein,”
“hereby” and derivative or similar words refer to this entire Agreement; (iv) the terms
“Article,” “Section,” or “clause” refer to the specified Article, Section, or clause of
this Agreement; and (v) the term “including” means including but not limited to.

     (b) Any representation or warranty contained herein as to the enforceability of a
Contract (including this Agreement and any Ancillary Agreement) will be subject to the
effect of any bankruptcy, insolvency, reorganization, moratorium or other similar law
affecting the enforcement of creditors’ rights generally and to general equitable
principles (regardless of whether such enforceability is considered in a proceeding in
equity or at Law). Whenever this Agreement refers to a number of days, such number will
refer to calendar days.

     (c) This Agreement is being entered into by and among competent and sophisticated
parties who are experienced in business matters and represented by counsel and other
advisors, and have been reviewed by the parties and their counsel and other advisors.
Therefore, any ambiguous language in this Agreement will not be construed against any
particular party as the drafter of the language.

ARTICLE 2

PURCHASE AND SALE TRANSACTION

     2.1 Purchase and Sale of the Purchased Shares. Subject to the terms and conditions of
this Agreement, at the Closing, each of the Sellers shall sell, transfer, convey, assign, deliver
and set over to Purchaser, and Purchaser shall purchase and accept, all of the right, title,
benefit and interest of such Seller in and to the Purchased Shares owned by him, her or it, free
and clear of all Liens and all rights of refusal, restrictions on transfer and other encumbrances
of any kind or nature, whether arising under the terms of any stockholders agreement or otherwise.

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ARTICLE 3

PURCHASE PRICE

     3.1 Purchase Price. The aggregate purchase price (the “Base Purchase Price”)
for the Purchased Shares is Ninety Six Million Dollars ($96,000,000). The Base Purchase Price will
be subject to adjustment (a) at Closing as provided in Section 3.3 below, and (b) following
Closing as provided in Section 3.4 below.

     3.2 Payment of the Purchase Price.

     (a) At Closing, Purchaser shall pay to each of the Sellers an amount of cash equal
to the Closing Payment multiplied by the Percentage Interest of such Seller. In
addition, a portion of the Base Purchase Price shall be paid to certain creditors of the
Companies as provided in Section 3.2(d). The Closing Payment to be paid to the
Sellers at the Closing shall be paid by wire transfer of immediately available funds to
the accounts specified in writing by Sellers, no less than one (1) Business Day prior to
the Closing. For purposes of this Agreement, “Closing Payment” shall mean an
aggregate amount of cash equal to (i) the Estimated Closing Purchase Price, (ii)
minus the Indemnification Escrow Deposit, (iii) minus the Working
Capital Escrow Deposit, (iv) minus the Closing Date Debt Amount, (v)
minus the Preferred Stock Payment and (vi) minus the Option Payment. At
the Closing, Purchaser shall pay the Option Payment to Holdings by wire transfer of
immediately available funds.

     (b) At the Closing and as security for any adjustment necessary to the Closing
Working Capital, Purchaser shall remit to the Working Capital Escrow Account to be held
by the Escrow Agent pursuant to the Escrow Agreement, the Working Capital Escrow
Deposit, to be ultimately disbursed in accordance with Section 3.7.

     (c) At the Closing and as security for Sellers’ indemnification obligations set
forth in Article 6, Purchaser shall remit to the Indemnification Escrow Account
to be held by the Escrow Agent pursuant to the Escrow Agreement the Indemnification
Escrow Deposit.

     (i) On the first Business Day following the one (1) year anniversary of the
Closing Date, the Escrow Agent shall deliver to Sellers’ Representative, in the
manner reasonably designated by Sellers to Escrow Agent in writing at least five (5)
Business Days prior to such date, the amount, if any, by which: (A) fifty percent
(50%) of the then aggregate amount contained in the Indemnification Escrow Account;
exceeds (B) the sum of (without duplication): (I) the aggregate amount then claimed
related to indemnification obligations of Sellers’ Representative under this
Agreement; and (II) the aggregate unpaid amount, if any, of the Purchaser
Remediation Costs.

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     (ii) On the first Business Day following the two (2) year anniversary of the
Closing Date, Escrow Agent shall deliver to Sellers’ Representative, in the manner
reasonably designated by Sellers to Escrow Agent in writing at least five (5)
Business Days prior to such date, the amount, if any, by which: (A) the aggregate
amount in the Indemnification Escrow Account; exceeds (B) the sum of (without
duplication): (I) any amount of the Old Brown Tax Escrow Amount not already used to
satisfy Old Brown Tax Escrow Claims; and (II) the aggregate amounts then claimed
related to indemnification obligations arising under this Agreement including the
aggregate unpaid amount, if any, of the Purchaser Remediation Costs; provided, that
any withheld amounts pursuant to Section 3.2(c)(ii)(B)(I) may only be used
to satisfy Old Brown Tax Escrow Claims, and any withheld amounts, to the extent not
applied in satisfaction of such indemnification obligations, shall be paid to
Sellers promptly upon resolution of such dispute.

     (iii) On the first Business Day following July 15, 2013, Escrow Agent shall
deliver to Sellers, in the manner reasonably designated by Sellers’ Representative
to Escrow Agent in writing at least five (5) Business Days prior to such date, the
amount, if any, by which the then aggregate amount contained in the Indemnification
Escrow Account exceeds the aggregate amount of all Old Brown Tax Escrow Claims and
any other aggregate amounts then claimed related to indemnification obligations
arising under this Agreement, for which a notice of claim was filed with the Escrow
Agent and the Sellers’ Representative prior to the second anniversary of the Closing
Date; provided, that any withheld amounts then in dispute related to Old Brown Tax
Escrow Claims and any other indemnification obligations, to the extent not applied
in satisfaction of such Old Brown Tax Escrow Claims or such other indemnification
obligations specified in such notices of claim, shall be paid to Sellers promptly
upon resolution of each such dispute.

     (d) Not less than two (2) Business Days prior to the Closing Date, Sellers shall
deliver to Purchaser a reasonably detailed statement (the “Closing Date Debt
Report”) setting forth: (i) the exact amount, without duplication of each item of
Debt (including interest, fees and prepayment premiums or penalties) of the Companies
for borrowed money or in respect of loans or advances and other third-party financing
(which, for the avoidance of doubt, will include any amount drawn on or prior to the
Closing Date by a beneficiary under any Letter of Credit, but will exclude any amount
relating to any Letter of Credit that has not been drawn by the beneficiary on or prior
to the Closing Date) and any other Debt of the Companies evidenced by any note, bond,
debenture, credit agreement or other debt security; (“Closing Date Debt”), and
(ii) the exact amount of any Company Transaction Expenses remaining unpaid and
outstanding as of the Closing Date (including the Persons to whom such Company
Transaction Expenses are payable and the amount of the Company Transaction Expenses
payable to such Persons) (the aggregate amount of such unpaid Closing Date Debt and
Company Transaction Expenses reflected on the Closing Date Debt Report, the “Closing
Date Debt Amount”).

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     (e) The Closing Date Debt Amount shall be deducted from the Estimated Closing
Purchase Price as contemplated by Section 3.2(a). On the Closing Date,
Purchaser shall (i) repay the Closing Date Debt Amount shown on the Closing Date Debt
Report to the applicable lenders and vendors or (ii) provide Holdings with sufficient
cash to, and cause Holdings to, repay such amount in full to the applicable creditor;
provided, however, that the responsibility for the payment of any Debt
or Company Transaction Expenses not reflected on the Closing Date Debt Report shall at
all times following the Closing remain with the Sellers as provided in this Agreement.

     (f) Not less than two (2) Business Days prior to the Closing Date, the Sellers
shall deliver to the Purchaser a reasonably detailed statement setting forth the exact
amount of the Preferred Stock Payment, the identity of the Persons to whom the Preferred
Stock Payment is to be paid and exact amount to be paid to each such Person. The
Preferred Stock Payment shall be deducted from the Estimated Closing Purchase Price as
contemplated by Section 3.2(a). At the Closing, Purchaser shall pay the
Preferred Stock Payment to the Sellers by paying each Seller $100 per share plus accrued
but unpaid dividends in respect of each share of Preferred Stock held by such Seller
immediately prior to the Closing (with pro rata amounts payable in respect of fractional
 shares).

     (g) Not less than two (2) Business Days prior to the Closing Date, the Sellers
shall deliver to the Purchaser a reasonably detailed statement setting forth the exact
amount which is required to be paid to the Option Holders at the Closing in connection
with the termination and cancellation of the Options, which shall reflect the exact
amount of the employer portion of all payroll and other withholding Taxes payable by
Holdings to any Governmental or Regulatory Authority in connection with the payments to
be made to the Option Holders on the Closing Date (the sum of the aggregate amount of
the payments to be made to the Option Holders on the Closing Date, net of withholding
Taxes, and the employer portion of all payroll and other withholding Taxes payable in
connection with the payments to be made to the Option Holders on the Closing Date being
hereinafter the “Option Payment”).

     (h) Not more than five (5) Business Days following the Closing Date, Purchaser
will: (i) determine all Cash and Cash Equivalents of the Companies, which was on hand as
of the Closing Date and maintained in banks or institutions where the actual branch
office of such bank is located in the United States (“Closing Cash”); and (ii)
pay via wire transfer to Sellers’ Representative for further payment to Sellers in
accordance with their Percentage Interest the aggregate amount of all Closing Cash, less
the aggregate amount, if any, of all outstanding checks issued by the Companies out of
the bank accounts where Closing Cash is located.

     3.3 Working Capital Purchase Price Adjustment. As used herein, “Working
Capital” means as of the Closing Date (but without giving effect to the Closing) (i) the sum of
consolidated current assets of the Companies (which for the avoidance of doubt will exclude Cash or
Cash Equivalents (such Cash and Cash Equivalents being addressed in Section 3.2(h) above)
(1) will be trade accounts receivable, less the Companies’ allowance for doubtful accounts and
sales allowances and returns, in all cases determined consistent with the

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Companies’ historical practices and in accordance with U.S. generally accepted accounting
principles (“GAAP”), miscellaneous receivables, Inventory of the Companies in the
quantities determined pursuant to Section 3.4(a), less the Companies’ reserves for such
Inventory as of the Closing Date determined consistent with the Companies’ historical practices and
in accordance with GAAP, prepaid current assets of the Companies (which shall include prepaid
expenses and the current portion of deposits of the Companies) all of which will be determined
consistent with the Companies’ historical practices and in accordance with GAAP, and (2) will not
include any current or deferred income Tax assets or other Tax assets) or amounts due to the
Companies from Affiliates, determined consistent with the Companies’ historical practices and in
accordance with GAAP, minus (ii) the sum of all consolidated current liabilities of the Companies
(which, for avoidance of doubt, (1) will be trade accounts payable, accrued liabilities and other
current liabilities of the Companies incurred in the Ordinary Course of Business determined
consistent with the Companies’ historical practices and in accordance with GAAP and (2) will not
include current or deferred income Tax liabilities or other Tax liabilities or amounts involving
Affiliates, Debt or Company Transaction Expenses, and any accrued interest thereon, in each case
determined consistent with the Companies’ historical practices and in accordance with GAAP.
Notwithstanding anything to the contrary in this Section 3.3, for purposes of determining
the Working Capital as of the Closing Date, current or accrued liabilities shall not include any
federal or state income Tax liabilities of the Companies for the Taxable year of the Companies that
includes or ends on the Closing Date, it being the intent that any such federal or state income Tax
liabilities will be paid pursuant to Section 7.2 of this Agreement. The Base Purchase
Price will be adjusted at Closing in respect of the Working Capital as follows:

     (a) Not less than two (2) Business Days prior to Closing, Sellers will cause the
Companies to prepare and deliver to Purchaser (i) an estimated consolidated balance
sheet of the Companies as of the Closing Date (but without giving effect to the Closing)
(the “Estimated Closing Balance Sheet”), (ii) a certificate indicating a good
faith estimate of Working Capital as of the Closing Date (the “Estimated Closing
Working Capital”; prepared in accordance with this Agreement, and (iii) a statement
of the Estimated Closing Purchase Price payable at Closing. The Estimated Closing
Balance Sheet and the Estimated Closing Working Capital will be prepared by the
Companies in accordance with GAAP applied on a basis consistent with the historical
practices of the Companies. The Estimated Closing Balance Sheet will show no cash on
hand, with all Closing Cash being reflected as a post-closing Purchase Price adjustment
pursuant to Section 3.2(h). Between the date of this Agreement and the Closing
Date, the Purchaser and the Sellers in the presence of their Representatives shall
conduct a sampling of work in progress to generally confirm the accuracy of items of
Inventory within the work in progress. The Companies will also make available to
Purchaser its explanation for determining the amount of work in progress completed and
the value of such work in progress, in each case as calculated consistent with the
Companies’ historical practices and in accordance with GAAP. Such sampling will be
conducted in a manner so as not to unreasonably interfere with the conduct of the
Business.

     (b) The Base Purchase Price will be: (i) increased on a dollar ($1.00) for dollar
($1.00) basis to the extent that the Estimated Closing Working Capital is

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greater than Thirteen Million Three Hundred Thousand Dollars ($13.3 million) (such
amount, the “Base Working Capital”), plus $350,000, and then to the full extent
of the difference between Estimated Closing Working Capital and Base Working Capital;
and (ii) decreased on a dollar ($1.00) for dollar ($1.00) basis to the extent that the
Estimated Closing Working Capital is less than the Base Working Capital by more than
$350,000, and then to the full extent of the difference between Estimated Closing
Working Capital and Base Working Capital (the amount of any adjustment to the Base
Purchase Price provided for by Section 3.03(b)(i) or (ii) above being
hereinafter the “Estimated Working Capital Adjustment”). The Base Purchase
Price, as adjusted by the Estimated Working Capital Adjustment pursuant to this
Section 3.3(b), is referred to herein as the “Estimated Closing Purchase
Price.” If the Estimated Closing Working Capital exceeds or is less than the Base
Working Capital by less than $350,000, the Estimated Closing Purchase Price shall be the
Base Purchase Price. The parties acknowledge and agree that any Estimated Working
Capital Adjustment shall be initially addressed by an adjustment to the Estimated
Closing Purchase Price and shall not be brought by either party as a claim for
disbursement from the Working Capital Escrow until the final determination of the
Closing Working Capital has been agreed upon by the parties in accordance with this
Agreement.

     3.4 Post-Closing Working Capital Adjustment. The Base Purchase Price will be
recalculated after the Closing based on a determination of the Closing Working Capital (as defined
below) of the Companies as of the Closing Date and the Base Purchase Price, as so adjusted
(including, if applicable, through resolution of any dispute as to the amount of any such
adjustment as provided for in Sections 3.5 and 3.6 below) shall hereinafter be
referred to as the “Closing Purchase Price”. Following the final determination of the
Closing Purchase Price, the amounts, if any, required to be paid by Purchaser to Sellers or by
Sellers to Purchaser shall be determined pursuant to Section 3.7. The post-closing
adjustments to the Base Purchase Price for purposes of calculating the Closing Purchase Price shall
be calculated as follows:

     (a) The Sellers shall, on the Closing Date, conduct a physical inventory of the
Inventory (except for work in progress which will be handled as described below),
including a one hundred percent (100%) count of all raw materials and finished goods.
On the Closing Date, the Purchaser and the Sellers in the presence of their
Representatives shall conduct a physical inventory of work in progress for jobs valued
at $25,000 or more so that the parties can generally confirm the presence of items of
Inventory constituting such work in progress. The work in progress as of the Closing
Date will be recorded on the Company’s Closing Date Balance Sheet based on the
quantities of Inventory (including work in progress) on hand (wherever located) and
determined by the Purchaser and Sellers’ Representative as of the Closing Date. The
Inventory will be valued consistent with the Company’s historical practices and in
accordance with GAAP to reflect the value of such Inventory as of the Closing Date.
Thereafter, as soon as practicable, but not later than the end of the ninety (90) day
period beginning on the first day following the Closing Date, Purchaser will prepare and
deliver to Sellers’ Representative (i) a consolidated balance sheet of the Companies as
of the Closing Date (the “Closing Balance Sheet”), (ii) a certificate, signed by
the President of Purchaser, indicating the Working Capital

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as of the Closing Date (the “Closing Working Capital”) (but without giving
effect to the Closing), in each case in accordance with GAAP applied on a basis
consistent with the historical practices of the Companies, and (iii) a recalculation of
the Base Purchase Price based on the Purchaser’s calculation of the Closing Working
Capital. For purposes of this Agreement, the amount of the Base Purchase Price as
recalculated by Purchaser pursuant to this Section 3.4(a) in connection with the
determination of the Closing Purchase Price is referred to as the “Purchaser’s
Closing Purchase Price”. The Inventory including the quantities of work in progress
to be contained in the Closing Balance Sheet and to be used in calculating the Closing
Purchase Price shall be valued consistent with the Companies’ historical practices, in
accordance with GAAP and valued as of the Closing Date. The aggregate out-of-pocket
fees and expenses incurred by the Companies in connection with the preparation of the
Estimated Closing Balance Sheet and the calculation of the Estimated Closing Working
Capital shall be paid as Company Transaction Expenses. The aggregate out-of-pocket fees
and expenses incurred in the preparation of the Closing Balance Sheet and the
calculation of the Closing Working Capital shall be paid by Purchaser.

     (b) Subject to Sections 3.5 and 3.6 of this Agreement:

     (i) If the Closing Working Capital exceeds the Base Working Capital by
$350,000 or more, the Closing Purchase Price shall be equal to the Base Purchase
Price, increased on a dollar ($1.00) for dollar ($1.00) basis by an amount equal to
the amount by which the Closing Working Capital exceeds the Base Working Capital;

     (ii) If the Closing Working Capital exceeds the Base Working Capital by less
than $350,000, the Closing Purchase Price shall be equal to the Base Purchase Price;

     (iii) If the Closing Working Capital is less than the Base Working Capital by
$350,000 or more, the Closing Purchase Price shall be equal to the Base Purchase
Price, reduced on a dollar ($1.00) for dollar ($1.00) basis by an amount equal to
the amount by which the Base Working Capital exceeds the Closing Working Capital;
and

     (iv) If the Closing working Capital is less than the Base Working Capital by
less than $350,000, the Closing Purchase Price will be equal to the Base Purchase
Price.

     3.5 Negotiation of Purchase Price Adjustment. With respect to the delivery of the
Working Capital calculations pursuant to Section 3.4, not later than twenty-five (25) days
following Sellers’ Representative’s receipt of the Closing Balance Sheet, Closing Working Capital
certificate and Purchaser’s Closing Purchase Price from Purchaser, which shall include a reasonably
detailed methodology of the Purchaser’s Closing Purchase Price calculation, Sellers’ Representative
will deliver to Purchaser and Escrow Agent a written notice setting forth Sellers’ disputes, if
any, with Purchaser’s determination of Closing Working Capital or Purchaser’s

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Closing Purchase Price, which written notice shall include a statement of the Sellers’
Representative’s recalculation of the Base Purchase Price in connection with the determination of
the Closing Purchase Price (such recalculation of the Base Purchase Price by Sellers’
Representative being hereinafter the “Sellers Closing Purchase Price”). In the event that
the Sellers’ Representative fails to deliver written notice of any dispute with the Purchaser’s
determination of the Closing Working Capital to the Purchaser within twenty five (25) days
following Sellers’ Representative’s receipt of the Closing Balance Sheet, Closing Working Capital
certificate and Purchaser’s Closing Purchase Price, the Closing Balance Sheet, the Closing Working
Capital and the Purchaser’s Closing Purchase Price as calculated by the Purchaser shall be final
and binding on the parties and the Closing Purchase Price shall be deemed to be the Purchaser’s
Closing Purchase Price. In the event that the Sellers’ Representative delivers written notice of
any dispute with the Purchaser’s determination of the Closing Working Capital, Closing Balance
Sheet or Purchaser’s Closing Purchase Price to the Purchaser within twenty five (25) days following
Sellers’ Representative’s receipt of any such items, Purchaser and Sellers’ Representative shall
have a period of ten (10) Business Days beginning on the first day following the date on which
Sellers’ Representative’s delivers written notice of its dispute to Purchaser to attempt in good
faith to resolve any differences. During such ten (10) Business Day period, Purchaser and Sellers’
Representative shall be entitled to review the working papers of the other with respect to the
determination of the Closing Balance Sheet, Closing Working Capital and the Closing Purchase Price.
If Purchaser and Sellers’ Representative are able to resolve their differences relating to the
amount of the Closing Balance Sheet, Closing Working Capital and Purchaser’s Closing Purchase
Price, the agreement between the Sellers’ Representative and the Purchaser as to the amount of the
Closing Balance Sheet, Closing Working Capital and the amount of the Closing Purchase Price shall
be set forth in writing and the Closing Balance Sheet, Closing Working Capital and Closing Purchase
Price as so determined shall be final and binding on the parties. If Purchaser and Sellers’
Representative are unable to resolve any such objections within such ten (10) Business Day period,
then the issues in dispute will be submitted for resolution in accordance with the procedures set
forth in Section 3.6 below.

     3.6 Resolution of Disputes by Referee.

     (a) If Purchaser and Sellers’ Representative have a dispute with respect to the
Closing Working Capital or the Purchaser’s Closing Purchase Price and are unable to
resolve the dispute as provided above, then in each case the issue(s) in dispute will be
submitted for resolution to an independent accounting firm of at least a regional
reputation to be selected jointly by Purchaser and Sellers’ Representative (the
“Referee”). The Referee shall determine the item(s) and amount in dispute within thirty
(30) days after the dispute is submitted to it in accordance with this Agreement. If
issue(s) in dispute are submitted to the Referee for resolution, (i) each of Purchaser
and Sellers’ Representative will furnish to the Referee such work papers and other
documents and information relating to the disputed issue(s) as the Referee may request
and are available to such party (or its independent public accountants) and will be
afforded the opportunity to present to the Referee any material relating to the
determination of the issue(s) in dispute and to discuss such determination with the
Referee; and (ii) the determination by the Referee of the issue(s) in dispute, as set
forth in a written notice delivered to both parties by the Referee, will be binding and

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conclusive on Purchaser and Sellers; provided, that the Referee shall not assign a
value to any item greater than the greatest value for such item, or lower than the
lowest value of such item, claimed in any notice of disagreement presented to the such
Referee pursuant hereto.

     (b) In the event Purchaser and Sellers’ Representative submit any unresolved
disputed issue(s) to the Referee for resolution, Purchaser and Sellers shall share
responsibility for the fees and expenses of the Referee as follows:

     (i) if the Referee resolves all of the remaining objections in favor of
Purchaser’s position (the amount as so determined is referred to herein as the
“Low Value”), then Sellers shall be responsible for all of the fees and
expenses of the Referee;

     (ii) if the Referee resolves all of the remaining objections in favor of
Sellers’ position (the amount as so determined is referred to herein as the
“High Value”), then Purchaser shall be responsible for all of the fees and
expenses of the Referee; and

     (iii) if the Referee neither resolves all of the remaining objections in favor
of Purchaser’s position nor resolves all of the remaining objections in favor of
Sellers’ position (the amount as so determined is referred to herein as the
“Actual Value”), Sellers shall be responsible for that fraction of the fees
and expenses of the Referee equal to (x) the difference between the High Value and
the Actual Value over (y) the difference between the High Value and the Low Value,
and Purchaser shall be responsible for the remainder of the fees and expenses of the
Referee.

     3.7 Payment of Closing Purchase Price Adjustment.

     (a) The amount, if any, which shall be paid by Purchaser to Sellers or by Sellers
to Purchaser in connection with any adjustments made to the Base Purchase Price to
calculate the Closing Purchase Price shall be determined by comparing the Estimated
Closing Purchase Price to the Closing Purchase Price.

     (b) If the Closing Purchase Price is equal to the Estimated Closing Purchase Price,
the Purchaser and Sellers’ Representative shall cause the Escrow Agent to release the
entire amount contained in the Working Capital Escrow Account to Sellers no later than
the end of the five (5) Business Day period beginning on the first Business Day
following the final determination of the Closing Purchase Price (such day being
hereinafter the “Final Payment Date”) and no further payment shall be due from
Purchaser to Sellers or from Sellers to Purchaser.

     (c) If the Closing Purchase Price exceeds the Estimated Closing Purchase Price, the
Purchaser and the Sellers’ Representative shall cause the Escrow Agent to release the
entire amount contained in the Working Capital Escrow Account to Sellers no later than
the Final Payment Date and the Purchaser shall, no later than the Final Payment Date,
pay to the Sellers the amount by which the Closing Purchase Price

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exceeds the Estimated Closing Purchase Price by wire transfer of immediately
available funds.

     (d) If the Estimated Closing Purchase Price exceeds the Closing Purchase Price by
an amount which is less than or equal to One Million Dollars ($1,000,000.00), the
Purchaser and Sellers’ Representative shall, no later than the Final Payment Date, cause
the Escrow Agent to release to the Purchaser from the Working Capital Escrow Account,
the amount by which the Estimated Closing Purchase Price exceeds the Closing Purchase
Price and, no later than the Final Payment Date, cause the Escrow Agent to release to
the Sellers the entire remaining balance in the Working Capital Escrow Account.

     (e) If the Estimated Closing Purchase Price exceeds the Closing Purchase Price by
more than One Million Dollars ($1,000,000.00), the Purchaser and Sellers’ Representative
shall, no later than the Final Payment Date, cause the Escrow Agent to release to the
Purchaser, the entire amount contained in the Working Capital Escrow Account and each of
the Sellers shall, no later than the Final Payment Date, pay to the Purchaser by wire
transfer of immediately available funds to an account specified by Purchaser in writing,
their respective Percentage Interests of the amount by which: (i)(A) the Estimated
Closing Purchase Price; minus (B) the Closing Purchase Price; exceeds (ii) One
Million dollars ($1,000,000.00).

     (f) If the Sellers’ Representative delivers written notice of a dispute as to the
Closing Balance Sheet, the Closing Working Capital certificate and the Purchaser’s
Closing Purchase Price to Purchaser and the Estimated Closing Purchase Price exceeds the
Purchaser’s Closing Purchase Price by an amount which is less than One Million Dollars
($1,000,000.00): (i) the Purchaser and Sellers’ Representative shall promptly cause the
Escrow Agent to release to the Seller an amount of the Working Capital Escrow Account
equal to the amount the Purchaser’s Closing Purchase Price exceeds the Estimated Closing
Purchase Price; and (ii) the remaining portion of the Working Capital Escrow Deposit
shall be disbursed in accordance with the final determination of Closing Working Capital
pursuant to this Agreement such that the final total disbursements to both parties
complies with paragraphs (a) through (d) above, as the case may be.

     3.8
Options. Immediately prior to the Closing, each option to purchase common stock of
Holdings, whether vested or unvested (each, an “Option”), shall be cancelled and terminated
pursuant to the terms of the option termination agreements (“Option Termination Agreements”) to be
delivered by the holders of such Options (“Option Holders”) to Holdings on or prior to the Closing
Date. As further provided in such Option Termination Agreements, each such cancelled Option shall
be converted into the right of each holder thereof to receive, for each share of Common Stock
issuable under an Option, and subject to all applicable tax withholdings, an amount equal to the
excess, if any, of (a) the Per Share Common Closing Payment, less (b) the exercise price payable in
respect of such share of Holdings common stock issuable under such Option, plus if and when payable
after the Closing, an amount equal to such Option Holder’s pro rata share of the amount held in the
Indemnification Escrow Account, any Post-Closing Working Capital Adjustment (as provided in Section
3.4) and any payments in respect of

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the Closing Date Tax Benefits and Closing Cash. Such amount (other than any amount to be
paid to the Option Holders out of the Escrow Accounts or in connection with the final determination
of Closing Working Capital and Closing Cash) together with the full amount of the employer portion
of any payroll or other withholding taxes payable by Holdings in connection with the payments to be
made to the Option Holders on the Closing Date shall be paid by Purchaser to Holdings for further
disbursement, on the Closing Date to the Option Holders and, with respect of the employer portion
of any payroll or other withholding taxes payable in connection with the payments made by Holdings
to the Option Holders on the Closing Date, to the applicable Governmental or Regulatory Authorities
as required by Applicable Law. The Option Holders are hereby deemed “Sellers” for purposes of
indemnification obligations pursuant to this Agreement, and, as such, each Option Holder shall be
entitled to its respective Percentage Interest in the Indemnification Escrow Account, the Working
Capital Escrow Account any Closing Cash, and any Closing Date Tax Benefits.

     3.9 Withholding Rights. Holdings shall be entitled to deduct and withhold from any
amounts payable pursuant to Section 3.8 of this Agreement such amounts as are required to
be deducted and withheld under the Code or any other applicable Law. To the extent such amounts
are so deducted or withheld, such amounts shall be treated for all purposes of this Agreement as
having been paid to the Person in respect of which such deduction and withholding was made, and any
Tax deduction attributable to the payments under Section 3.8 shall be treated as Closing
Date Tax Benefits. Notwithstanding the foregoing, provided that Purchaser pays the amount of the
Option Payment to Holdings on the Closing Date as required by Section 3.2(a), in no event
shall Holdings, Brown or any of their Affiliates be obligated to pay or liable for any employer
portion of any Taxes which may be payable in connection with any payments made to the Option
Holders after the Closing Date pursuant to this Agreement.

     3.10 Tax Treatment. Purchaser and Seller agree that the Base Purchase Price, as
finally determined and paid (including the post-Closing adjustments), shall be a payment by the
Purchaser to the Shareholders and the Option Holders for the Purchased Shares and under the Option
Termination Agreements. All Parties shall report the transactions under this Agreement
consistently for all Tax purposes.

ARTICLE
4

CLOSING MATTERS

     4.1 Closing. Upon the terms and subject to the conditions of this Agreement, the
Closing shall take place beginning at 9:00 a.m. (local time) at the offices of Wildman, Harrold,
Allen & Dixon LLP in Chicago, Illinois, on April 1, 2011 or such other date following the
satisfaction or waiver, if permissible, of the conditions to the Closing set forth in Article 10
hereof (other than those conditions to be satisfied on the Closing Date) (the “Closing
Date”). All documents delivered and all transactions consummated at the Closing are deemed for
all purposes to have been delivered and consummated effective as of the Effective Time.

     4.2 Prior to Closing. Other than with respect to the Closing Date Debt, the Companies
shall have discharged, at their sole cost and expense, prior to the Closing Date, all mortgages,
deeds of trust, financing statements and other instruments evidencing or securing the

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repayment of Debt, judgment liens and other liens of a liquidated amount evidencing a monetary
obligation (excluding Permitted Liens) and all obligations to any Affiliates.

     4.3 Deliveries at Closing.

     (a) Deliveries of Sellers. At the Closing, Sellers are delivering or
causing to be delivered to Purchaser the following:

     (i) duly executed counterparts of this Agreement and the Related Agreements;

     (ii) the original stock certificates evidencing the Purchased Shares coupled
with stock powers duly endorsed in blank;

     (iii) evidence of the receipt of the consents identified on Section
5.1(c) of the Disclosure Schedules that Sellers have received as of the Closing
Date;

     (iv) to the extent their transfer is permitted under applicable Laws or to the
extent notification, modification, amendment or transfer is required under
applicable Laws as a result of the consummation of the transactions contemplated by
this Agreement, such duly executed documents as are required to provide notice,
amend, transfer or otherwise modify all Permits held by the Companies in the conduct
of the Business, including the Permits listed on Section 5.1(k) of the
Disclosure Schedules;

     (v) an agreement, executed by the Sellers, providing for the full, complete,
absolute and irrevocable termination, without any continuing effectiveness
whatsoever of that certain shareholders agreement, dated August 25, 2008 and made by
and among the Sellers (the “Stockholders Agreement”);

     (vi) true, correct and complete copies of the Option Termination Agreements, in
form and substance reasonably satisfactory to Purchaser;

     (vii) a Certificate executed on behalf of the Company by its President or Chief
Executive Officer, certifying the matters in Section 10.1(a);

     (viii) evidence reasonably satisfactory to Purchaser that all Liens on assets
of the Companies (other than Permitted Liens) shall have been released prior to the
Closing, shall be released simultaneously with the Closing or, with respect to Liens
related to Closing Date Debt, shall be released upon payment of the applicable
amount set forth in the Closing Date Debt Report following the Closing;

     (ix) the Closing Date Debt Report contemplated by Section 3.2(c);

     (x) a certificate duly executed by the Secretary of each of the Companies,
attaching correct and complete copies of the Organizational Documents;

26

 

     (xi) the Estimated Closing Balance Sheet;

     (xii) an agreement, executed by the applicable Sellers, providing for the full,
complete, absolute and irrevocable termination, without any continuing effectiveness
whatsoever of all Management Rights Agreements dated August 25, 2008 made by and
among the Companies and certain of the Sellers (the “Management Rights
Agreements”);

     (xiii) an agreement, executed by the applicable Sellers, providing for the
full, complete, absolute and irrevocable termination, without any continuing
effectiveness whatsoever of that certain Senior Subordinated Notes and Share
Purchase Agreement dated August 25, 2008 made by and among the Companies and certain
of the Sellers (the “Senior Subordinated Notes and Share Purchase
Agreement”);

     (xiv) resignations of the Companies’ officers and directors in a form
reasonably acceptable to Purchaser and such officers and directors as long as such
resignations will in no way impact the officers’ employment agreements with the
Companies; and

     (xv) such other duly executed documents, instruments and certificates as may be
reasonably required to be delivered to Purchaser by Sellers pursuant to the terms of
this Agreement.

     (b) Deliveries by Purchaser. At the Closing, Purchaser is delivering or
causing to be delivered the following:

     (i) To Sellers, a wire transfer to Sellers’ accounts, in the amount of the
Closing Payment;

     (ii) To Sellers, duly executed counterparts of this Agreement and the Related
Agreements;

     (iii) To Sellers, certified copies of resolutions of the directors of Purchaser
authorizing the execution, delivery and performance of this Agreement and the
Related Agreements; and such other duly executed documents, instruments and
certificates as may be required to be delivered by Purchaser pursuant to the terms
of this Agreement;

     (iv) To Holdings, by wire transfer of immediately available funds, the Option
Payment; and

     (v) To the Companies’ lenders or Acstar Insurance, as applicable, standby
letters of credit to replace the Companies’ standby letters of credit in form and
substance acceptable to the Companies’ lenders, Acstar Insurance and Sellers’
Representative.

27

 

     4.4 Further Assurances and Cooperation.

     (a) Further Assurances. Subject to the terms and conditions of this
Agreement, at any time and from time to time after the Closing, at a party’s reasonable
request, the other party will use its Best Efforts to execute and deliver such other
instruments of sale, transfer, conveyance, assignment and confirmation, and assumption,
and to provide such materials and information and to take such other actions as the
other party may reasonably deem necessary or desirable in order to more effectively
transfer, convey and assign to Purchaser the Purchased Shares.

     (b) Post Closing Access to Books and Records. Following the Closing,
Purchaser and Sellers’ Representative will afford each other, and their respective
Representatives, during normal business hours, reasonable access to books and records in
its possession with respect to periods through the Closing and the right to make copies
and extracts therefrom to the extent that such access may be reasonably required by the
requesting party in connection with (i) the preparation of Tax Returns, (ii) any Tax
audit, Tax protest or other proceeding relating to Taxes, or (iii) compliance with the
requirements of any Governmental or Regulatory Authority. Neither Purchaser nor
Sellers’ Representative may, for a period of five (5) years after the Effective Time or
while a Claim for indemnification under this Agreement is pending, destroy or otherwise
dispose of any such books, records and other data unless such party first offers in
writing to surrender such books, records and other such data to the other party and such
other party does not agree in writing to take possession thereof during the thirty (30)
day period after such offer is made. Purchaser and Sellers’ Representative further will
reasonably cooperate with each other in the conduct of any audit or other proceeding
related to Taxes involving the Business. This reasonable cooperation does not include
payment to attorneys, accountants or other professional advisors in connection with such
cooperation.

     (c) Cooperation. If, in order to properly prepare its Tax Returns or other
documents or reports required to be filed with any Governmental or Regulatory Authority,
it is necessary that either Purchaser or Sellers’ Representative be furnished with
additional information, documents or records relating to, the Business or the Purchased
Shares and such information, documents or records are in the possession or control of
the other party, such other party will use its Best Efforts to furnish or make available
such information, documents or records (or copies thereof) to the recipient party at the
recipient party’s reasonable request and at the recipient party’s cost and expense.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF SELLERS

     5.1 Representations and Warranties of Sellers. Sellers represent and warrant
severally, in accordance with their Percentage Interest, except as otherwise noted, to Purchaser
that:

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     (a) Organization and Existence.

     (i) Each of Holdings and Brown is (A) a corporation duly organized, validly
existing, and in good standing under the laws of the State of Delaware and Ohio
respectively (B) qualified to do business as a foreign corporation in each state in
which the ownership of its assets and/or the conduct of its business requires it to
be so qualified, and (C) in good standing in each such state.

     (ii) Except as set forth on Section 5.1(a)(ii) of the Disclosure
Schedules, each of the Companies has full power and authority to own or lease all of
its assets and to operate its business as currently conducted by it and to carry on
its Business as and where such assets are now owned or leased and its Business is
now conducted.

     (iii) On or prior to the date hereof, Sellers have delivered to Purchaser a
true, correct and complete table of the authorized capital stock and the issued and
outstanding shares of Holdings together with the identity of each holder of any
shares of capital stock of Holdings as well as the number and class of shares of
capital stock of Holdings owned by each such holder. Except as set forth in
Section 5.1(a)(iii) of the Disclosure Schedules, no shares of capital stock
of Holdings are issued and outstanding. On or prior to the date hereof, Sellers
have delivered to Purchaser a true, correct and complete list of the identities of
each Option Holder and the number and class of shares of capital stock of Holdings
which each such Option Holder is entitled to purchase pursuant to the Options held
by such Option Holder. Holdings is the beneficial and record holder of all of the
issued and outstanding shares of the capital stock of Brown.

     (iv) All of the issued and outstanding shares of the capital stock of Holdings
have been duly authorized, validly issued, fully paid and are nonassessable and are
not subject to, and were not issued in violation of, any preemptive rights. Except
as previously disclosed to Purchaser by Sellers, the shares of Common Stock and
Preferred Stock are owned free and clear of any Liens, encumbrances, rights of
refusal, restrictions on transfer or other charges or restrictions of any kind or
nature, including, but not limited to, rights of refusal, restrictions on transfer
and rights of preemption and other charges and encumbrances arising under the
Stockholders Agreement and, upon transfer of the shares of Common Stock and
Preferred Stock, the Purchaser will acquire such shares of Common Stock and
Preferred Stock free and clear of all Liens, encumbrances, rights of refusal,
restrictions on transfer or other charges or restrictions of any kind or nature
including, but not limited to, rights of refusal, restrictions on transfer and
rights of preemption and other charges and encumbrances arising under the
Stockholders Agreement. The Persons previously identified to the Purchaser as being
the holders of shares of Common Stock and Preferred Stock are the record and
beneficial owners of the shares of Common Stock and Preferred Stock.

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     (v) All of the issued and outstanding shares of the capital stock of Brown have
been duly authorized, validly issued, fully paid and are nonassessable and are not
subject to, and were not issued in violation of, any preemptive rights. Except as
set forth in Section 5.1(a)(v) of the Disclosure Schedules, all of the
issued and outstanding shares of the capital stock of Brown are owned by Holdings
free and clear of any Liens, encumbrances, rights of refusal, restrictions on
transfer or other charges or restrictions of any kind or nature.

     (vi) No other securities of any class of the capital stock of Holdings, and no
other ownership interests in Holdings or Brown are issued, reserved for issuance or
outstanding, except as set forth in Section 5.1(a)(v) of the Disclosure
Schedules. Except as set forth in Section 5.1(a)(v) of the Disclosure
Schedules and except for the options previously disclosed to the Purchaser on or
prior to the date hereof, there are no outstanding or authorized offers,
subscriptions, conversion rights, options, warrants, rights, convertible or
exchangeable securities, stock appreciation, phantom stock, profit participation,
understandings, claims of any character, obligations or other agreements or
commitments of any nature, whether formal or informal, firm or contingent, written
or oral, relating to the capital stock of, or other equity or voting interests in,
Holdings or Brown pursuant to which Holdings or Brown is or may become obligated to:
(A) issue, deliver, sell or transfer, or cause to be issued, delivered, sold or
transferred, any shares of its capital stock or other ownership or voting interests
in or securities of it or any of its Affiliates (whether debt, equity, or a
combination thereof); (B) grant, extend, issue, deliver or enter into any such
agreements or commitments; or (C) repurchase, redeem or otherwise acquire any
capital stock or other ownership interests in or securities of it or any of its
Affiliates.

     (vii) All subsidiaries of the Companies are set forth in Section
5.1(a)(vii) of the Disclosure Schedules.

     (viii) On or prior to the date hereof, Sellers have delivered to Purchaser a
true, complete and correct list of all stock ownership of The D.S. Brown Company, an
Ohio corporation, n/k/a Brown Old Bridge Co. (“Old Brown”) by any
stockholder or any member of the Company Group.

     (b) Authority and Approval. Each Seller represents and warrants, for
himself, herself or itself: (i) that he, she or it has the power to enter into this
Agreement and the Related Agreement, to which he, she or it is a party and to perform
his, her or its obligations thereunder, (ii) this Agreement and the Related Agreement to
which he, she or it is a party have been duly executed and delivered by him, her or it,
(iii) he, she or it is the record and beneficial owner of that number of the Purchased
Shares set forth opposite his, her or its name on the list provided by Sellers to
Purchaser as contemplated by Section 5.1(a)(iii) herein and (v) when executed
and delivered, this Agreement and the Related Agreement will constitute a valid and
binding obligation of such Seller, enforceable against such Seller in accordance with
its terms. If Seller is not a natural Person, it represents and warrants, for itself,
that the execution, delivery and performance by it of this Agreement and the

30

 

Related Agreement to which it is a party, and the consummation by it of the
transactions contemplated herein and therein, have been duly authorized by all required
action on its part.

     (c) No Conflict.

     (i) Each Seller, for himself, herself or itself, represents and warrants that
(A) the execution and delivery by such Seller of this Agreement and the Related
Agreement to which he, she or it is a party (when so executed and delivered), and
such Seller’s compliance with the terms and conditions hereof and thereof, and the
consummation by such Seller of the transactions contemplated hereby and thereby, do
not and will not (A) violate its Organizational Documents, if such Seller is not a
natural Person, (B) subject to obtaining the authorizations referred to in
Section 5.1(d), violate any provision of, or require any consent,
authorization, or approval under, any Law, Order or Contract applicable to such
Seller, or (C) result in the creation of any Lien, charge or other encumbrance upon
the Purchased Shares.

     (ii) The execution and delivery of this Agreement and the Related Agreement
(when so executed and delivered), and Sellers’ compliance with the terms and
conditions hereof and thereof, and the consummation by Sellers of the transactions
contemplated hereby and thereby, do not and will not (A) violate the Organizational
Documents of any of the Companies, (B) to Sellers’ Knowledge, subject to obtaining
the authorizations referred to in Section 5.1(d), violate any provision of,
or require any consent, authorization, or approval under, any Law or Order
applicable to any of the Companies, (C) to Sellers’ Knowledge, except as set forth
in Section 5.1(c) of the Disclosure Schedules, violate, result in a breach
of, constitute a default under, accelerate or permit the acceleration of the
performance required by, or require any consent, authorization, or approval under,
any Material Contract or Permit to which any of the Companies is a party or by which
any of the Companies is bound or to which any of the assets or properties of any of
the Companies are subject, or (D) result in the creation of any Lien, charge or
other encumbrance upon the Purchased Shares or any Lien upon the assets or
properties of any of the Companies.

     (d) Governmental Approvals and Filing. Except as disclosed in Section
5.1(d) of the Disclosure Schedules and other than the filing of a Notification and
Report Form under the HSR Act, no consent, authorization, approval or action of, filing
with, notice to, or exemption from any Governmental or Regulatory Authority is required
on the part of any Seller or any of the Companies is required in connection with the
execution, delivery and performance of this Agreement or the Related Agreement or the
consummation of the transactions contemplated hereby or thereby.

     (e) Financial Statements.

     (i) Sellers have made available to Purchaser copies of (A) the audited
consolidated balance sheets of Holdings as of October 31, 2008, October 31, 2009

31

 

and October 31, 2010 and the related consolidated statements of income and cash
flow for the periods then ended and (B) the unaudited consolidated balance sheet of
Holdings as of February 28, 2011, and the related consolidated statements of income,
and cash flow for the four (4) month period then ended (the “Interim Financial
Statements”) (collectively, the “Financial Statements”). The audited
Financial Statements fairly present in all material respects (x) the financial
condition and results of operations, and cash flow of the Business at and as of the
dates thereof and for the periods covered thereby, and (y) the unaudited Interim
Financial Statements were prepared and compiled in accordance with GAAP applied on a
consistent basis throughout the periods indicated and do not include footnotes or
normal year end adjustments, but include adjustments necessary for the fair
presentation, in all material respects, of the financial condition of the Companies
and the results of operations of the Companies as of the dates thereof or for the
periods covered thereby.

     (ii) Except as and to the extent reflected on the balance sheet included in the
Interim Financial Statements (the “Interim Balance Sheet”), in Section
5.1(e) of the Disclosure Schedules, or as provided by Sellers to Purchaser on or
prior to the date hereof, the Companies have no material Liabilities other than
Liabilities incurred after the date of the Interim Balance Sheet in the Ordinary
Course of Business or in connection with the transactions contemplated hereby.
Except for allowances for doubtful accounts and sales allowances and returns, the
Companies do not record any other reserves against accounts receivable.

     (f) Legal Proceedings. Section 5.1(f) of the Disclosure Schedules
contains a list of each charge, claim, audit, lawsuit, arbitration or other legal or
administrative proceeding to which any of the Companies is currently or, in the last
three (3) years has been, a party in which the amount of the Damages recovered or sought
to be recovered by or from any of the Companies exceeds or exceeded Five Thousand
Dollars ($5,000.00). Except as disclosed in Section 5.1(f) of the Disclosure
Schedules:

     (i) There is no pending, or to the Knowledge of the Companies, threatened
claim, litigation, proceeding or Order of any Governmental or Regulatory Authority
or governmental investigation relating to any of the Companies or any of their
respective officers or directors;

     (ii) There are no lawsuits or arbitrations pending, or to the Knowledge of the
Companies, threatened against any Seller or any of the Companies or any of their
respective officers or directors that would reasonably be expected (A) to have a
Business Material Adverse Effect, (B) to adversely affect the validity or
enforceability of this Agreement or any of the Related Agreements against Sellers or
adversely affect the ability of Sellers to consummate the transactions contemplated
by this Agreement, or (C) result in the issuance of an Order restraining, enjoining
or otherwise prohibiting or making illegal the consummation of the transactions
contemplated by this Agreement; and

32

 

     (iii) There are no Orders outstanding against any Seller or any of the
Companies which would adversely affect the ability of any Seller to consummate the
transactions contemplated by this Agreement.

     (g) Employee Benefit Plans.

     (i) Section 5.1(g)(i) of the Disclosure Schedules sets forth a true and
complete list of each “employee benefit plan” as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
and any other plan, policy, program, practice, agreement or arrangement (whether
written or oral) providing compensation or other benefits to any current or former
director, officer, employee or consultant (or to any dependent or beneficiary
thereof) of the Companies (or any of them), which are now, or were within the past
two years, maintained, sponsored or contributed to by the Companies (or any of
them), or under which the Companies (or any of them) have any obligation or
liability, whether actual or contingent, including, without limitation, all
incentive, bonus, deferred compensation, severance, vacation, holiday, cafeteria,
medical, disability, stock purchase, stock option, stock appreciation, phantom
stock, restricted stock or other stock-based compensation plans, policies, programs,
practices or arrangements (each an “Employee Benefit Plan”).

     (ii) With respect to each Employee Benefit Plan currently in effect, Sellers
have delivered or made available to Purchaser or its Representatives true, correct
and complete copies of, to the extent applicable, (a) each written Employee Benefit
Plan, (b) all summary plan descriptions, (c) the most recent annual reports (Form
5500 series, with all applicable attachments) filed with the DOL with respect to
such Employee Benefit Plan, (d) the most recent financial statement relating to such
Employee Benefit Plan, (e) the most recent determination or opinion letter, if any,
issued by the IRS with respect to any Employee Benefit Plan and (f) all related
trust agreements, insurance contracts, and other funding arrangements that implement
each such Employee Benefit Plan.

     (iii) Each Employee Benefit Plan has been maintained, funded and administered
in all material respects in accordance with its terms and all applicable Laws,
including ERISA and the Code. To the Knowledge of the Companies, no event has
occurred that could subject the Companies (or any of them) to any material liability
(other than for routine benefit liabilities) under the terms of, or with respect to,
such Employee Benefit Plans, ERISA, the Code or any other applicable Law. None of
the Companies has made any express or implied commitment to modify, change or
terminate any Employee Benefit Plan which it has maintained, sponsored or
contributed to other than a modification, change or termination required by Law.

     (iv) Each Employee Benefit Plan which is intended to qualify under Section
401(a) of the Code has received a favorable determination or opinion letter from
the IRS as to its qualified status. To the Knowledge of the Companies, there has
been no prohibited transaction (within the meaning of Section 406 of

33

 

ERISA or Section 4975 of the Code, other than a transaction that is
exempt under a statutory or administrative exemption) with respect to any Employee
Benefit Plan that could result in a material liability to the Companies (or any of
them). No action, suit, proceeding, hearing or investigation with respect to the
investment of the assets of any such Employee Benefit Plan (other than claims for
benefits in the ordinary course) is pending or, to the Knowledge of the Companies
(or any of them) and the Companies (or any of them) Subsidiaries, threatened.

     (v) There is no Employee Benefit Plan that is subject to Title IV of ERISA, and
there is no Employee Benefit Plan which is a “multiemployer plan,” as such term is
defined in Section 3(37) of ERISA, or which is covered by Section
4063 or 4064 of ERISA.

     (vi) No amount that could be received (whether in cash or property or the
vesting of property) as a result of the consummation of the transactions
contemplated by this Agreement by any employee, officer or director of the Companies
(or any of them) who is a “disqualified individual” (as such term is defined in
proposed Treasury Regulation Section 1.280G-1) under any Employee Benefit
Plan could be characterized as an “excess parachute payment” (as defined in
Section 280G(b)(1) of the Code).

     (vii) Except as required by Law, no Employee Benefit Plan provides any of the
following post-employment or retiree benefits to any person: medical, disability or
life insurance benefits. Except as set forth in Section 5.1(g)(vii) of the
Disclosure Schedules, the consummation of the transactions contemplated by this
Agreement will not, either alone or in combination with another event, entitle any
current or former employee or officer or director of any of the Companies to any
severance pay, unemployment compensation, incentive or transaction bonus, bonus to
stay or other payment or accelerate the time of payment or vesting or increase the
amount of compensation due to any such officer, director or employee.

     (viii) All required reports and descriptions (including Form 5500 annual
reports, summary annual reports, and summary plan descriptions) have been 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 respects with respect to each such Employee Benefit Plan and
each Employee Benefit Plan maintained by an ERISA Affiliate that is an Employee
Welfare Benefit Plan subject to COBRA.

     (ix) 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 historical custom and
practice of the Companies (or any of them).

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     (x) The Companies do not, nor does any ERISA Affiliate, contribute to, have any
obligation to contribute to, or have any material Liability under or with respect to
any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in
ERISA Section 3(35)).

     (h) Title Sufficiency of Assets. Except as set forth on Section
5.1(h) of the Disclosure Schedules, each of the Companies has good and marketable
title to all of its assets, including its personal property, and all personal property
of each of the Companies is in satisfactory operating condition, ordinary wear and tear
excepted. The assets, properties and rights of the Companies are sufficient in all
material respects to permit the Companies to continue to conduct the Business after the
Closing Date in substantially the same manner as the business has been conducted
immediately prior to the date hereof.

     (i) Intellectual Property. Section 5.1(i) of the Disclosure
Schedules contains a complete and correct list of all of the following Company
Intellectual Property and indicates the owner of such Company Intellectual Property: (A)
Patents, (B) registered Trademarks and applications therefor and unregistered
Trademarks, (C) registered Copyrights and applications therefor, (D) Internet domain
names, and (E) Software. Information has been provided by Sellers to Purchaser on or
prior to the date hereof regarding, and Section 5.1(i) of the Disclosure
Schedules lists, all Contracts to which any of the Companies is a party and pursuant to
which any Company Intellectual Property is licensed to or by any of the Companies.

     (i) Except as set forth in Section 5.1(i) of the Disclosure Schedules,
no Company Intellectual Property identified in Section 5.1(i) of the
disclosure Schedules has lapsed, expired, or been abandoned, disclaimed, withdrawn,
the subject of any holding, declaration or final judgment of invalidity or final
judgment of unenforceability, the subject of a refusal to reissue by any domestic or
foreign governmental agency, including, without limitation, the United States Patent
and Trademark Office or canceled within the past twelve (12) months;

     (ii) Except as set forth in Section 5.1(i) of the Disclosure Schedules,
no claim has been asserted and, to the Knowledge of the Companies, no claim has been
threatened by any Person (A) relating to the use by the Companies of any of the
Company Intellectual Property; (B) against any of the Companies claiming that the
operation of the Business and/or the possession or use of the Company Intellectual
Property infringes, misappropriates, violates or otherwise conflicts with any
Intellectual Property right of any Person; or (C) challenging the ownership,
enforceability or validity of any of the Company Intellectual Property;

     (iii) Other than the Intellectual Property licensed pursuant to a Contract
listed on Section 5.1(i) of the Disclosure Schedules, the Companies own the
entire right, title and interest to and in, and have the right to use, free and
clear of all licenses, restrictions and Liens (other than Permitted Liens), the
Company Intellectual Property identified in Section 5.1(i) of the Disclosure
Schedules; and

35

 

          (iv) Other than the Company Intellectual Property listed on Section
5.1(i) of the Disclosure Schedules, there are no items of Intellectual Property
that are necessary to the conduct of the business of the Companies as of the
Effective Time.

     (j) Material Contracts.

          (i) A list of all of the following Contracts to which any of the Companies is a
party (“Material Contracts”) has been provided by Sellers to Purchaser on or
prior to the date hereof:

     (a) Contracts which involve the payment or receipt by any of the
Companies of money or property having a value in excess of $100,000 in the
aggregate in any period of twelve (12) consecutive months and which are not
terminable on not less than thirty (30) days’ notice without penalty or
premium;

     (b) All Contracts involving commitments to other Persons extending
beyond one year from the date hereof to make capital expenditures;

     (c) Any written employment, confidentiality, non-competition, severance
or termination agreements as to employees or consultants, notwithstanding
any minimum dollar amount threshold;

     (d) Contracts with any officer or director notwithstanding any minimum
dollar amount threshold;

     (e) Any collective bargaining agreements, notwithstanding any minimum
dollar amount threshold;

     (f) All Contracts, the terms of which provide for continuing financial
commitments to any of the Companies after the Closing relating to any Debt
(including, without limitation, loan agreements, lease purchase
arrangements, guarantees, agreements to purchase goods or services or to
supply funds or other undertakings on which others rely in extending
credit), or any conditional sales contracts, chattel mortgages, equipment
lease agreements and other security arrangements with respect to personal
property;

     (g) Contracts providing for the sale of any assets of any of the
Companies other than in the Ordinary Course of Business;

     (h) All restricting the right of any of the Companies to compete in any
line of business or with any Person, notwithstanding any minimum dollar
amount threshold;

36

 

     (i) All Contracts (whether exclusive or otherwise) with any sales
agent, representative, franchisee, dealer or distributor, notwithstanding
any minimum dollar amount threshold;

     (j) All Contracts providing for the licensing by or to any Person of
any Company Intellectual Property other than licenses or agreements for
generally available commercial, off the shelf software having an annual
license fee of less than $25,000;

     (k) All Contracts that require the payment of royalties,
notwithstanding any minimum dollar amount threshold;

     (l) All Contracts with any Governmental or Regulatory Authority;

     (m) All performance bonds, bid bonds and letters of credit; and

     (n) All Contracts involving a sharing of profits, losses, costs or
liabilities.

     (ii) Copies of the Material Contracts set forth on the list provided by Sellers
to Purchaser pursuant to Section 5.1(j)(i) herein have been made available
to Purchaser. Except as set forth on the list provided by Sellers to Purchaser as
contemplated by Section 5.1(j)(i) herein, each Material Contract is in full
force and effect, and is valid, binding and enforceable against the Company that is
a party thereto in accordance with its terms. None of the Companies is in breach
or default, in any material respect, of its obligations under the Material Contracts
and, to the Knowledge of the Companies, no other Person who is a party to any such
Material Contracts is in breach or default, in any material respect, and within the
past two (2) years there has not occurred any event (with or without the lapse of
time or the giving of notice or both) which would constitute a material breach or
default. Neither the execution and delivery of this Agreement nor the consummation
of the Contemplated Transactions will result in a material breach or default under
or constitute an event which, with the delivery of notice or lapse of time or both
would constitute a material breach or default under the terms of any Material
Contract.

     (k) Compliance with Applicable Laws; Permits. Section 5.1(k) of
the Disclosure Schedules identifies all material Permits required to be held or
possessed by the Companies for the Companies to own, lease, license and operate their
properties and other assets and to carry on their respective businesses as they are
being conducted as of the date hereof (the “Company Permits”). Except as
disclosed in Section 5.1(k) of the Disclosure Schedules all of the Company
Permits possessed by the Companies are valid and in full force and effect. The
Companies are, and have been at all times in the past two (2) years, in compliance with
the terms of the Company Permits and all applicable domestic Laws and, to the Knowledge
of the Companies, foreign Laws relating to the Companies or their respective businesses,

37

 

assets or properties. All applications for Company Permits that otherwise would
expire prior to or immediately following the Closing Date and that could not otherwise
be renewed or extended by Purchaser following the Closing Date, without lapse prior to
expiration, have been or prior to the Closing Date will be timely renewed or extended.
None of the Companies has any Knowledge or has received any information which would lead
it to believe that any Company Permit may not be renewed, extended or reissued in due
course as requested without the imposition of cost or penalty other than any applicable
filing fees imposed in the ordinary course for the renewal, extension or reissuance of
any such Company Permits.

     (l) Environmental Matters. Except as disclosed in Section 5.1(l)
of the Disclosure Schedules:

     (i) Each of the Companies and the Business are in compliance in all respects
with all Environmental Laws and no Company has received written notice from any
Person alleging that any of the Companies or the Business is in violation in any
material respect of any applicable Environmental Law. The Companies have timely
filed with any applicable Governmental or Regulatory Authority, all reports,
documents and information required to be filed under all Environmental Laws.

     (ii) None of the Companies has received any written notice, claim, complaint,
citation or report regarding any actual or alleged violation by any such Company of
any Environmental Laws or any Liabilities which any of the Companies may have,
including any investigatory, remedial or corrective obligations or any requirement
to provide any information relating to any investigation or cleanup of Hazardous
Materials arising under any Environmental Laws. There are no Proceedings pending
or, to the Knowledge of the Companies threatened against or affecting any of the
Companies or the Business relating to any violation of any Environmental Laws. None
of the Companies have any Knowledge that any of them is a potentially responsible
party under any Environmental Laws with regard to the Business.

     (iii) None of the Companies is subject to any outstanding Order: relating (A)
to compliance with any Environmental Law or (B) to the investigation, remediation or
post-remedial care arising from the generation, use, storage, treatment,
transportation, discharge or disposal of Hazardous Materials.

     (iv) Except as set forth in Section 5.1(l)(iv) of the Disclosure
Schedules, none of the Companies and, to the Knowledge of the Companies, no other
Person has placed, stored, deposited, discharged, buried, dumped, disposed of or
released any Hazardous Materials at any Real Property except for inventories of such
substances to be used, and wastes generated therefrom, in each case in the Ordinary
Course of Business (which inventories and wastes were and are, to the Knowledge of
the Companies, stored and disposed of in accordance with applicable Environmental
Laws). To the Knowledge of the Companies, no Hazardous Materials are present in, on
or under the Companies’ facilities, under

38

 

such conditions or in such quantities as to give rise to a violation of
Environmental Laws.

     (v) The Companies have provided to Purchaser all assessments, reports, data,
results of investigations or audits, and other written information that is in the
possession of the Companies regarding environmental matters pertaining to the
environmental condition of the business and properties of the Companies, or the
compliance (or noncompliance) by such entities with any Environmental Laws.

     (vi) To the Knowledge of the Companies, no facts, events or conditions relating
to the assets of any of the Companies or the Companies’ past or present facilities,
will give rise to any investigatory, remedial or corrective obligations pursuant to
Environmental Laws, or give rise to any Liabilities (whether accrued, absolute,
contingent, unliquidated or otherwise) pursuant to Environmental Laws. Neither the
execution and delivery of this Agreement or the consummation of the Closing will
impose any obligations for site investigation or cleanup, or notification to or
consent of any Governmental or Regulatory Authority or any other person pursuant to
any Environmental Law.

     (m) Brokers. Other than Houlihan Lokey Capital, Inc., no broker, finder or
investment banker is entitled to any brokerage commission, finder’s fee or similar
payment in connection with the Contemplated Transactions based upon arrangements made by
or on behalf of Sellers.

     (n) Taxes. Except as set forth on Section 5.1(n) of the Disclosure
Schedules or as disclosed by Sellers to Purchaser on or prior to the date hereof:

     (i) Each member of the Company Group has filed all Tax Returns that it was
required to file and has timely paid all Taxes shown to be due on such Tax Returns.
Except for consolidated Tax Returns of the Companies that include Holdings as the
parent and have been provided to Purchaser, none of the Companies has, at any time
prior to the date hereof, filed any Tax Return as part of any consolidated group.
All such Tax Returns are correct in all material respects as to the amount of Taxes
shown to be due thereon. No written or, to the Knowledge of the Companies, oral
claim has been made against a member of the Company Group by a Governmental or
Regulatory Authority in a jurisdiction where such member does not file a Tax Return
that it is or may be subject to taxation by that jurisdiction. None of the
Companies has received written notice of, and to the Knowledge of the Companies,
neither the Internal Revenue Service nor any other Governmental or Regulatory
Authority is currently proposing, claiming or asserting against any of the
Companies, any adjustment, deficiency or claim for payment of additional Taxes. No
member of the Company Group has requested an extension of time within which to file
any income or other material Tax Return which has not since been filed. Purchaser
has received or been given access to copies of all federal income Tax Returns of
each member of the Company Group for the years ended October 31, 2008 and 2009.

39

 

     (ii) All Taxes that each member of the Company Group was required by Law to
withhold or collect in connection with any amount paid or owing to any employee have
been duly withheld or collected. To the extent required by applicable Law, all such
amounts have been paid over to the proper Governmental or Regulatory Authority or,
to the extent not yet due and payable, have been adequately reserved for.

     (iii) To the Companies’ Knowledge, no federal, state, local or foreign audits
or other Tax Proceedings are pending or being conducted against any member of the
Company Group, nor has any member of the Company Group received any written or oral
notice from any Governmental or Regulatory Authority that any such audit or other
Tax Proceeding leading to potential assessment or collection of Tax is threatened or
contemplated. No member of the Company Group has granted or been requested to grant
any waiver of any statutes of limitations applicable to any claim for Taxes or with
respect to any Tax assessment or deficiency, which waiver is still in effect.
Sellers have delivered to the Purchaser accurate and complete copies of all income
or other material examination reports and statements of deficiencies assessed
against or agreed to by any member of the Company Group since December 31, 2007, and
all assessed deficiencies for any Proceedings not currently pending or being
conducted have been fully paid or finally settled.

     (iv) No member of the Company Group is a party to or bound by any Tax sharing
agreement, Tax indemnity obligation or similar Contract or practice with respect to
Taxes with a party that is not member of the Company Group.

     (v) No member of the Company Group is or has been a United States real property
holding corporation (as defined in Section 897(c)(2) of the Code) during the
applicable period specified in Section 897(c)(1)(A)(ii) of the Code.

     (vi) All Taxes that each member of the Company Group was required by Law to
withhold or collect in connection with any amount paid or owing to any domestic or
foreign Persons for which U.S. withholding was required under Section 1441
et. seq. of the Code has been duly withheld and paid over to the appropriate
Governmental or Regulatory Authority.

     (o) No Material Adverse Change. To Sellers’ Knowledge, except as described
in Section 5.1(o) of the Disclosure Schedules or in connection with the
transactions contemplated hereby, since October 31, 2010, there has not occurred any
event that has resulted in a Business Material Adverse Effect.

     (p) Ordinary Course of Business. Except as set forth in Section
5.1(p) of the Disclosure Schedules, since October 31, 2010:

     (i) The Companies have conducted their businesses only in the Ordinary Course
of Business;

40

 

     (ii) The Companies have not, except for sales of Inventory in the Ordinary
Course of Business, sold, leased, transferred, or assigned any of the properties,
rights or other assets of the Companies having a value, individually or in the
aggregate, in excess of $100,000;

     (iii) The Companies have not made any commitment for capital improvements which
have not been completed and paid in full and which, individually or in the aggregate
exceed $100,000;

     (iv) The Companies have not cancelled, compromised, waived or released any
material right or claim (or series of related rights and claims) other than in the
Ordinary Course of Business;

     (v) The Companies have not granted any increase in the base compensation of any
employees of the Business other than in the Ordinary Course of Business;

     (vi) The Companies have not entered into any employment, consulting, severance,
change in control, retention, termination or indemnification agreement with any
current or former director, consultant or officer of the Companies;

     (vii) None of the Companies has amended or terminated any Employee Benefit
Plan;

     (viii) The Companies have not made any change to any accounting method or
practice or any change to any methods of reporting income, deductions or other items
for Tax purposes other than in the Ordinary Course of Business or as otherwise
required by GAAP;

     (ix) The Companies have not incurred any damage, destruction or other casualty
loss (whether or not covered by insurance) affecting the business or assets of the
Companies which, individually or in the aggregate, has resulted in Damages to the
Companies of $100,000 or more;

     (x) The Companies have not made any agreement to do any of the foregoing; and

     (xi) The Companies have not revoked or amended any material Tax election,
settled a claim or assessment with respect to Income Taxes, executed a closing
agreement or similar agreement with respect to Income Taxes with any Governmental or
Regulatory Authority or extended or waived a statutory period of limitations with
respect to the collection or assessment of any Income Taxes.

     (q) Real Property.

     (i) Section 5.1(q) of the Disclosure Schedules contains (A) a legal
description, street address and, with respect to Real Property located in the United
States, tax parcel identification number of each parcel of Real Property in which

41

 

the Companies have a fee simple estate (any such Real Property being
hereinafter “Owned Real Property”), and (B) a description (by subject leased
Real Property, name of lessor, date of lease and term expiration date) of all leases
of Real Property in which the Companies have a leasehold estate (any such Real
property being hereinafter “Leased Real Property”). Prior to the date
hereof, the Companies have delivered to the Purchaser, true, correct and complete
copies of each lease of any Leased Real Property together with all amendments or
modifications to any such lease (each of such leases, together with all amendments
or modifications being hereinafter a “Real Property Lease”).

     (ii) The Companies own good and marketable title to their respective estates in
the Owned Real Property, free and clear of any Liens, other than Permitted Liens and
those described in the Disclosure Schedules. The Companies own good and
transferable title to all of their other assets, free and clear of any Liens, other
than: (A) Permitted Liens, and (B) those described in the Disclosure Schedules.

     (iii) Each member of the Company Group that is a party to any Real Property
Lease has a valid and enforceable leasehold interest under the terms of such Real
Property Lease. None of the Companies has received any written notice of or has any
Knowledge that any member of the Company Group that is a party to a Real Property
Lease is in breach or default of the terms of any such Real Property Lease or that
any event has occurred which, with notice or lapse of time or both, would constitute
a default under, the terms of any such Real Property Lease. The execution and
delivery of this Agreement and the consummation of the Contemplated Transactions
does not require the consent of any person under the terms of any Real Property
Lease and will not constitute a default under or an event which, with the delivery
of written notice or lapse of time or both, would constitute a breach or default of
the terms of any Real Property Lease. None of the Persons who are parties to any
Real Property Lease which any member of the Company Group is a party to are
Affiliates of any officer, director or employee of any member of the Company Group.

     (iv) None of the Companies has received any written notice or formal
notification that the whole or any part of the Owned Real Property is subject to any
proceedings for condemnation, eminent domain or other taking by any Governmental or
Regulatory Authority. None of the Companies has received any written notice from
any Governmental or Regulatory Authority concerning any actual or contemplated
public improvements made or to be made by any Governmental or Regulatory Authority,
the costs of which are or could become special assessments against or a Lien upon
any Owned Real Property and, to the Knowledge of the Companies, no such public
improvement is threatened. Except as described on the Disclosure Schedules with
respect to a Real Property Lease, there are no contract rights, leases, subleases,
licenses or other Contracts granting any Person the right to purchase, use or occupy
any portion of the Owned Real Property. To the Knowledge of the Companies, the
operation and maintenance of the Owned Real property does not contravene any
existing zoning Law or other

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existing regulation (including, but not limited to, those relating to land use,
building, fire, health and safety) or violate any existing restricted covenant. The
Owned Real Property is supplied with utilities adequate for the use and operation of
the Business and, to the Knowledge of the Companies, such utilities extend through
legal rights of way or validly created easements. To the Knowledge of the
Companies, there are no adverse or other parties in possession of the Owned Real
Property other than the Companies. There is no option to purchase, right of first
offer, right of first refusal or other Contract existing which grants to any person
the right to acquire the Owned Real Property. To the Knowledge of the Companies,
the Owned Real Property is not subject to any real property Tax increases or
recapture of Taxes occasioned by retroactive revaluation, special assessments,
changes in land usage, or loss of any exemption or benefit status.

     (v) To the Knowledge of the Companies and except as set forth on Section
5.1(q)(v) of the Disclosure Schedules, all buildings, offices and other
structures (all such buildings, offices and structures being sometimes hereinafter
collectively referred to as “Structures”) located at the Real Property, the
roofs of such Structures and the plumbing, heating, ventilation and air
conditioning, electrical and mechanical systems contained in such Structures have
been adequately and properly maintained and are in good condition, normal wear and
tear excepted.

     (r) Employee Matters.

     (i) On or prior to the date hereof, Sellers have delivered to Purchaser a true,
complete and correct list, as of February 10, 2011, of all employees of the
Business, together with their respective salaries or wages, other compensation
(other than in respect of Options), dates of employment or service with the
Companies and current positions (such list being hereinafter the “Employee
List”). Section 5.1(r) of the Disclosure Schedules identifies all
agreements between the Companies and the individuals identified in the Employee
List.

     (ii) Except as set forth in Section 5.1(r) of the Disclosure Schedules,
(A) to the Knowledge of the Companies, none of the Companies is delinquent in
payments to any employees for any wages, salaries, commissions, bonuses or other
direct compensation for any services performed by them through the Closing Date or
amounts required to be reimbursed to such employees; (B) there is no unfair labor
practice complaint against any of the Companies pending or, to the Knowledge of the
Companies, threatened before the National Labor Relations Board or any other
Governmental or Regulatory Authority; (C) there is no labor strike, material
dispute, slowdown or stoppage actually pending or, to the Knowledge of the
Companies, threatened against any of the Companies, (D) there has been no charge of
discrimination filed or, to the Knowledge of the Companies, threat of a charge of
discrimination against any of the Companies with the Equal Opportunity Commission or
similar Governmental or Regulatory Authority; and (E) there is no active, pending
administrative or judicial proceeding under the Fair Labor Standards Act, the Family
and Medical Leave

43

 

Act, OSHA, the National Labor Relations Act or any other federal, state or
local Law (including common law) relating to employees of the Business.

     (iii) None of the Companies is a party to or otherwise bound by any collective
bargaining Contract with a labor union or labor organization, nor is any such
Contract presently being negotiated. To the Knowledge of the Companies, within the
past two years, there has not been a representation question respecting any of the
employees of the Companies and, to the Knowledge of the Companies, there are no
campaigns being conducted to solicit cards from employees of the Companies to
authorize representation by any labor organization.

     (iv) Each of the Companies has complied, in all material respects, with all
laws relating to the employment of labor, including, but not limited to, all Laws
relating to wages, hours, commissions, classifying individuals as employees and
independent contractors, the Immigration and Nationality Act, as amended, the
Immigration Reform and Control Act of 1986, as amended, the Worker Adjustment and
Retraining Notification Act and any similar state or local “mass layoff” or “plant
closing” Law.

     (v) To the Knowledge of the Companies, no executive, management or other key
employee of any of the Companies and no group of employees acting in concert has any
plans to terminate employment with the Companies upon closing of the Contemplated
Transactions.

     (s) Suppliers and Customers.

     (i) Customers. On or prior to the date hereof, Sellers have delivered
to Purchaser a true, complete and correct list of the top twenty (20) customers of
the Companies, taken as a whole, by dollar purchase volume (measured by the gross
amount invoiced to the customer) that purchased products from Companies during the
twelve (12) months ended October 31, 2010 (such customers being hereinafter the
“Top Twenty Customers”). None of the Top Twenty Customers has notified any
of the Companies in writing that it has cancelled or otherwise terminated its
relationship with such Company or materially decreased its usage or purchase of the
products of such Company, nor has any such top customer indicated in writing to any
Company its intention to do any of the foregoing. To the Knowledge of the Companies
following the consummation of the Contemplated Transactions, none of the Top Twenty
Customers is reasonably likely to stop or materially decrease the rate of purchasing
of materials products or services from the Companies, except that Purchaser
acknowledges and agrees that certain customers’ orders materially vary year to year
depending on construction projects.

     (ii) Suppliers. On or prior to the date hereof, Sellers have delivered
to Purchaser a true, complete and correct list of the top twenty (20) suppliers to
the Companies, taken as a whole, by dollar purchase volume (measured by the amount
paid by the Companies to such supplier) during the twelve (12) months ended October
31, 2010 (such suppliers being hereinafter the “Top Twenty

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Suppliers”). None of the Top Twenty Suppliers has notified any of the
Companies, in writing that it has cancelled or otherwise terminated its relationship
with such Company or materially decreased its supply of Goods to such Company. To
the Knowledge of the Companies, following the consummation of the Contemplated
Transactions, none of the Top Twenty Suppliers is reasonably likely to stop or
materially decrease the rate of supplying materials to the Companies.

     (t) Inventory.

     (i) The inventory of the Companies, net of applicable reserves, (A) was
acquired or produced in the ordinary course of business, (B) except as disclosed by
Sellers to Purchaser on or prior to the date hereof, is in the physical possession
of the Companies or in transit to or from a customer or supplier of the Companies
and (C) is good and merchantable and is of a quality and quantity presently useable
and salable in the ordinary course of business, consistent with historical practice.

     (ii) Except as disclosed by Sellers to Purchaser on or prior to the date
hereof, the value at which the inventory is carried on the books of the Companies
reflects the lower of cost (on a weighted average basis) or estimated net realizable
market value, and is based on quantities determined by physical count, in accordance
with GAAP applied on a basis consistent with the Financial Statements. The
Companies are not under any obligation with respect to return of Inventory in the
possession of suppliers, distributors, customers, resellers or agents.

     (u) Accounts Receivable. Except as set forth in Section 5.1(u) of
the Disclosure Schedules, the amount of all trade accounts receivable, unbilled invoices
and other debts due or recorded in the respective records and books of account of the
Companies as being due to the Companies has arisen from bona fide transactions entered
into in the Ordinary Course of Business, less the amount of any provision or reserve
therefor made in the respective records and books of account of such Companies, which
reserves have been established in accordance with GAAP and consistent with the Company’s
historical practices. Except as set forth in Section 5.1(u) of the Disclosure
Schedules, to the Knowledge of the Companies, none of such accounts receivable or other
debts is subject to any counterclaim or set-off except to the extent of any such
provision or reserve.

     (v) Insurance.

     (i) Section 5.1(v) of the Disclosure Schedules contains a list and
brief description of each (A) insurance policy issued to the Companies as a “named
insured” or otherwise providing insurance to the Companies as an insured party or
additional insured party, that was in effect at any time within the past two years
(such insurance policies being hereinafter the “Insurance Policies”), and
(B) self-

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insurance program, retrospective premium program or captive insurance program
in which the Companies have participated at any time during the past two years.

     (ii) Except as set forth in Section 5.1(v)(ii) of the Disclosure
Schedules, each of the Insurance Policies is in full force and effect and no written
notice of cancellation, non-renewal, termination, premium increase or change in
coverage has been received with respect to the Insurance Policies. With respect to
each of the Insurance Policies: (A) to the Knowledge of the Companies, no other
party to the Insurance Policies is in breach of or default under any provisions of
the Insurance Policies (including, without limitation, with respect to the payment
of premiums or the giving of notices), and (B) no party to the Insurance Policies
has repudiated any provision thereof. Except as set forth in Section
5.1(v)(ii) of the Disclosure Schedules, during the two (2) year period ending on
the Closing Date, none of the Companies has received any notice of any premium audit
from any company issuing any of the Insurance Policies and each of the Companies has
complied in all material respects with the provisions of the Insurance Policies.
All premiums and other amounts due under the terms of the Insurance Policies have
been paid. Except as set forth in Section 5.1(v)(ii) of the Disclosure
Schedules, no change in ownership provisions or endorsements exist within any of the
Insurance Policies. To the Knowledge of the Companies, the Financial Statements
contain appropriate reserves in accordance with GAAP and consistent with the
Companies’ past practices for any claims that are self-insured, under-insured and/or
fall within any deductibles under any of the Insurance Policies. Except as set forth
in Section 5.1(v)(ii) of the Disclosure Schedules, to the Knowledge of the
Companies, with respect to events or occurrences that take place prior to the
Closing Date, the Purchaser and the Companies will continue to have, after the
Closing Date, full access to all coverages afforded under any occurrence based
Insurance Policies, to the extent the Companies are covered under any such Insurance
Policies. The amount and type of insurance currently maintained under the Insurance
Policies is customary and reasonable in scope and amount for the Business as
currently conducted.

     (w) Warranties and Product Liability Claims. Except as set forth in
Section 5(w) of the Disclosure Schedules, as contained in the standard terms and
conditions of sale of the Companies or as implied or imposed by applicable Law, none of
the Companies has, during the three (3) year period ending on the date hereof and the
Closing Date, given any warranty or made any representation with respect to the Products
or services supplied, manufactured or sold by it. Except as set forth in Section
5.1(w) of the Disclosure Schedules, none of the Products manufactured, designed or
sold by any of the Companies has been recalled and, to the Knowledge of the Companies,
no investigation of any of the Products manufactured, designed or sold is proceeding and
no recall of any of the Products of the Companies has been threatened. To the Knowledge
of the Companies, no Company has any material Liability (not otherwise fully covered by
insurance) arising out of any injury to individuals or property as a result of the
ownership, possession, or use of any Product.

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     (x) Certain Payments. None of the Sellers and none of the officers,
or directors, agents or employees of the Companies has directly or indirectly made any
contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment
to any person, private or public, regardless of form, whether in money, property or
services: (i) to obtain favorable treatment in securing business; (ii) to pay for
favorable treatment for business secured; (iii) to pay for special concessions or for
special concessions already obtained, for or in respect to the Business; or (iv) in
violation of any Law.

     (y) Related Party Transactions. Section 5.1(y) of the Disclosure
Schedules contains a list of all agreements or arrangements currently existing between:
(i) any of the Sellers or any of their respective Affiliates on the one hand and any of
the Companies on the other hand; and (ii) any agreements or arrangements (other than any
Employee Benefit Plans) between any of the Companies on the one hand and any officers or
directors of any of the Companies or any Affiliates of any officers or directors of any
of the Companies on the other hand.

     (z) Bank Accounts, Lockboxes and Powers of Attorney. Prior to the date
hereof, the Companies have delivered to the Purchaser, a true, correct and complete list
of each bank account maintained by each of the Companies together with a true, correct
and complete list of each bank or other financial institution at which any lock box for
the collection of accounts receivable of any of the Companies is maintained together
with the identity of all Persons authorized to withdraw any funds contained in such
accounts or lockboxes. Except as set forth in Section 5.1(z)of the Disclosure
Schedules, there are no outstanding powers of attorney which have been executed by any
of the Companies.

     (aa) Systems. Except for individual personal computers and associated
printers provided to employees of the Business, cellular phones, PDAs and shrinkwrap
software, Section 5.1(aa) of the Disclosure Schedules identifies all information
technology systems and all computer hardware and telephone systems which are owned or
leased by any of the Companies in connection with the conduct of the Business
(collectively the “Systems”). All the Systems, in all material respects, are
sufficient for the current needs of each of the Companies including, but not limited to,
capacity and ability to process current data volumes in a timely manner. Except as set
forth in Section 5.1(aa) of the Disclosure Schedules, all Systems, other than
software licensed from third parties, which are used in the Business are owned and
operated by and under the control of the Companies and are not wholly or partly
dependent on any facilities which are not under the ownership or control of the
Companies.

     (bb) No Material Common Owners, Directors, Officers; Acquisition of Old
Brown.

     (i) Except for those individuals identified on the list provided to Purchaser
by Sellers on or prior to the date hereof, none of the Sellers nor any of their
respective owners, officers, directors or Affiliates has or had any direct or

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indirect equity interest or ownership in, or was an officer or director of, Old
Brown.

     (ii) No equity owner or holder of an interest in Altus Capital Partners, Inc.
held any ownership interest, either directly or indirectly, in Old Brown.

     (iii) Except for those individuals identified on the list provided to Purchaser
by Sellers on or prior to the date hereof, no officers of Holdings presently own,
either directly or indirectly, any shares of Common Stock, Preferred Stock or
Options.

     (iv) The purchase by the Company of Old Brown’s assets was accomplished through
an arms-length auction process conducted by the investment banking firm of Lincoln
International on behalf of Old Brown’s secured lender to maximize the value of the
Old Brown business. As a result of the Company’s bid in that auction process, it
was selected by Old Brown’s secured lender to acquire the assets of Old Brown.

     (v) Except as disclosed to Purchaser on or prior to the date hereof, to the
Knowledge of Sellers, none of the officers of Holdings received from Old Brown any
sale bonus, escrow bonus or any other direct or indirect transfer of assets from Old
Brown which was attributable to or contingent upon the closing of the sale of the
Antares Agreement.

     (cc) Completeness of Disclosure. To the Knowledge of Sellers, no
representation, warranty or statement by the Sellers in this Agreement or in any
Disclosure Schedules, certificate, statement, document or instrument furnished or to be
furnished to Purchaser pursuant to this Agreement contains or will contain any untrue
statement of material fact or omits or will omit to state any material fact required to
be stated herein or therein or necessary to make any statement herein or therein not
materially misleading.

     (dd) EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 5.1, SELLERS MAKE NO
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF THE
COMPANIES, THE PURCHASED SHARES OR THE OPERATIONS OF THE COMPANIES, INCLUDING WITH
RESPECT TO CONDITION, MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR
PURPOSE, OR ANY FINANCIAL PROJECTIONS OR FORECASTS, AND ALL SUCH OTHER REPRESENTATIONS
AND WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.

     5.2 Representations and Warranties of Purchaser. Purchaser represents and warrants to
Sellers that:

     (a) Organization and Existence. Purchaser is a Delaware corporation, duly
organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, with full power and authority to own, lease, and

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operate its business and properties as conducted by it and to carry on its business
as and where such properties and assets are now owned or leased and such business is now
conducted.

     (b) Authority and Approval. Purchaser has the power to enter into this
Agreement and the Related Agreement to which it is a party and to perform its
obligations thereunder. The execution, delivery and performance by Purchaser of this
Agreement and the Related Agreement to which it is a party (when so executed and
delivered) and the consummation by Purchaser of the transactions contemplated herein and
therein, have been duly authorized by all required action on its part. This Agreement
and the Related Agreement have been duly executed and delivered by Purchaser (to the
extent it is a party thereto). This Agreement and the Related Agreement to which
Purchaser is a party are (assuming due execution and delivery by Sellers), the valid and
binding obligations of Purchaser, enforceable against Purchaser in accordance with their
respective terms.

     (c) No Conflict. The execution and delivery by Purchaser of this Agreement
and the Related Agreement to which it is a party (when so executed and delivered), and
Purchaser’s compliance with the terms and conditions hereof and thereof, and the
consummation by Purchaser of the transactions contemplated hereby and thereby, do not
and will not (i) violate Purchaser’s Organizational Documents, (ii) violate any
provision of, or require any consent, authorization, or approval under, any Law or any
Order applicable to Purchaser, (iii) violate, result in a breach of, constitute a
default under (whether with or without notice or the lapse of time or both), accelerate
or permit the acceleration of the performance required by, or require any consent,
authorization, or approval under, any material contract to which Purchaser is a party or
by which Purchaser is bound or to which any of its assets or property is subject, or
(iv) result in the creation of any Lien upon the assets or property of Purchaser.

     (d) Governmental Approvals and Filing. Other than the filing of a
Notification and Report Form under the HSR Act, no consent, authorization, approval or
action of, filing with, notice to, or exemption from any Governmental or Regulatory
Authority on the part of Purchaser is required in connection with the execution,
delivery and performance of this Agreement or any Related Agreements to which Purchaser
is a party or the consummation of the transactions contemplated hereby or thereby.

     (e) Sufficient Funds. Purchaser has available and on the Closing Date will
have available, in cash or pursuant to existing credit arrangements, sufficient funds to
consummate all of the Contemplated Transactions

     (f) Brokers. No broker, finder or investment banker is entitled to any
brokerage commission, finder’s fee or similar payment in connection with the
transactions contemplated hereby based upon arrangements made by or on behalf of
Purchaser.

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ARTICLE 6

INDEMNIFICATION

6.1 Indemnification by Sellers and Purchaser.

     (a) Indemnification by Sellers. Subject to the terms and conditions of
this Agreement, following the Closing, Sellers will severally, in accordance with their
Percentage Interests, indemnify and hold harmless Purchaser, its Affiliates and its
successors and permitted assigns (collectively, the “Purchaser Indemnified Parties”)
against and in respect of any Damages actually incurred by any Purchaser Indemnified
Party as a direct result of any of the following:

          (i) the breach of any representation or warranty of such Seller in this
Agreement or in any Related Agreement;

          (ii) the breach of any covenant or agreement of such Seller in this Agreement;

          (iii) any Liability of the Companies for any amount drawn, after the Closing
Date, by a beneficiary under any Letter of Credit; provided that any such drawn
amount(s) shall relate to activities pursuant to which the Companies derived income
prior to Closing;

          (iv) any Liabilities for any Taxes due or payable by the Companies with respect
any periods ending on or prior to the Closing Date, and all Liabilities which may
arise as a result of the Carve-out Transfer of Brown China and the operation of
Brown China prior to Closing;

          (v) any Liabilities of the Companies for any Taxes due and payable or arising
in connection with any payments made to the Option Holders other than Taxes due and
payable in connection with the payments made to the Option Holders on the Closing
Date;

          (vi) any Liabilities of the Companies for any Taxes payable by Old Brown as a
result of the Antares Agreement, but only to the extent that such Liabilities have
not been recovered from Antares as contemplated by Section 6.2(f);

          (vii) any Liabilities of the Companies arising out of the failure to pay any
Closing Date Debt of any of the Companies to their Affiliates, the failure to pay
any other amounts of the Closing Date Debt and/or the failure to pay any Company
Transaction Expenses;

          (viii) as to Purchaser Remediation Costs, Sellers shall be required to
indemnify and hold harmless the Purchaser Indemnified Parties only to the extent of
Required Remediation including reasonable attorneys’ fees and actual out-of-pocket
expenses reasonably incurred as a result of Required Remediation; and

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          (ix) any Liabilities relating solely from the Companies’ breach of any license
agreements set forth on that certain list of license agreements provided by Sellers
to Purchaser on or prior to the date hereof.

Further, each Seller will, for himself, herself or itself, indemnify and hold harmless the
Purchaser Indemnified Parties against and in respect of any Damages actually incurred by any
Purchaser Indemnified Party as a direct result of the breach of any representation or
warranty of such Seller in Sections 5.1(b) or 5.1(c)(i) of this Agreement.
Notwithstanding any other provision in this Section 6.1(a), Altus Capital Partners
SBIC, L.P. and Altus-D.S. Brown Co-Invest, LLC hereby agree to be jointly liable for the
obligations of the other pursuant to this Section 6.1(a), provided that they shall
not be jointly liable for the obligations of any other Seller(s).

     (b) Indemnification by Purchaser. Subject to the terms and conditions of
this Agreement, following the Closing, Purchaser will indemnify and hold harmless
Sellers their respective Affiliates, heirs, personal representatives, successors and
permitted assigns (collectively, the “Seller Indemnified Parties”) against and
in respect of any Damages actually incurred by any Seller Indemnified Party as a direct
result of any of the following:

          (i) the breach of any representation or warranty of Purchaser in this
Agreement or in any Related Agreement;

          (ii) the breach of any covenant or agreement of Purchaser in this Agreement or
in any Related Agreement; or

          (iii) the ownership of the Companies or the operation of the Business after the
Effective Time.

6.2 Indemnification Procedures.

     (a) If a claim for Damages (a “Claim”) is made by a party entitled to
indemnification hereunder (the “Indemnified Party”) against the party from whom
indemnification is claimed (the “Indemnifying Party”), the Indemnified Party
will give notice (a “Claim Notice”) to the Indemnifying Party as soon as
practicable after the Indemnified Party becomes aware of any fact, condition or event
which may give rise to Damages for which indemnification may be sought under this
Article 6.

     (b) If any Person commences any Proceeding with respect to any matter as to which
any of the Purchaser Indemnified Parties intends to seek indemnification under
Section 6.1(a), or with respect to any matter as to which any of the Seller
Indemnified Parties intends to seek indemnification under Section 6.1(b), the
Indemnified Party will promptly notify the Indemnifying Party of the existence of such
Claim or the commencement of such action or proceeding (and in any event within ten (10)
Business Days after the service of any summons or citation). The failure of any
Indemnified Party to give timely notice hereunder will not affect rights to
indemnification hereunder, except to the extent that the resolution of such Claim is
prejudiced by the Indemnified Person’s failure to give such timely notice.

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Notwithstanding the foregoing, a Claim Notice that relates to a representation,
warranty, covenant or agreement that is subject to the survival period set forth in
Section 6.3 must be made within such survival period. A Claim Notice must
describe in reasonable detail the nature of the Claim, including an estimate of the
amount of Damages that have been incurred by the Indemnified Party attributable to such
Claim (to the extent reasonably ascertainable at such time), the basis of the
Indemnified Party’s request for indemnification under this Agreement, the Section of
this Agreement under which the violation or breach is claimed and all information in the
Indemnified Party’s possession relating to such Claim.

     (c) At its election, the Indemnifying Party may elect to assume and control the
defense of any Claim with counsel selected by the Indemnifying Party and reasonably
satisfactory to Indemnified Party. If the Indemnifying Party assumes such defense, the
Indemnified Party shall have the right to participate in the defense thereof and to
employ counsel, at its own expense, separate from the counsel employed by the
Indemnifying Party, it being understood that the Indemnifying Party shall control such
defense. Notwithstanding the foregoing, the Indemnified Party shall be entitled to
participate in any such defense with counsel of its own choice at the reasonable expense
of the Indemnifying Party if the Indemnified Party shall have reasonably concluded based
on written advice of counsel that a conflict of interests exists between the Indemnified
Party and the Indemnifying Party which makes representation of both parties
inappropriate under applicable standards of professional conduct. The Indemnified Party
will cooperate with the Indemnifying Party in any defense and make available to the
Indemnifying Party all witnesses, records, materials and information in the Indemnified
Party’s possession or under the Indemnified Party’s control relating thereto as is
reasonably requested by the Indemnifying Party and which does not result in the loss of
the attorney-client privilege or disclosure of attorney work product. If Purchaser is
the Indemnified Party, Purchaser shall also have the right to assume and control the
defense of any Claim or litigation if a settlement or adverse judgment with respect to
the Claim or litigation is reasonably likely to have a Business Material Adverse Effect.

     (d) If the Indemnifying Party fails to assume the defense of any Claim pursuant to
Section 6.2(c), the Indemnified Party will have the right, but not the
obligation, to undertake the defense of such Claim at the reasonable expense of the
Indemnifying Party. If the Indemnified Party assumes the defense of such Claim, (i) the
Indemnifying Party will no longer have the right to control such defense; (ii) the
Indemnified Party will control the defense of the Claim actively and diligently; and
(iii) the Indemnifying Party will reasonably cooperate with the Indemnified Party in
such defense and make available to the Indemnified Party all such witnesses, records,
materials and information in the Indemnifying Party’s possession or under the
Indemnifying Party’s control relating thereto, during normal business hours and upon
reasonable notice, as is reasonably requested by the Indemnified Party and which does
not result in the loss of the attorney-client privilege or disclosure of attorney work
product.

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     (e) Any party conducting the defense of a Claim will keep the other party advised
as to the current status and progress thereof. The Indemnified Party will not make any
offer of settlement with respect to any Claim if the Indemnifying Party has undertaken
the defense of such Claim. If the Indemnifying Party has not undertaken the defense of
such Claim, the Indemnified Party agrees not to make any offer of settlement with
respect to such Claim without first having provided twenty (20) days’ advance written
notice thereof to the Indemnifying Party and having obtained the written approval of the
Indemnifying Party which approval will not be unreasonably conditioned, delayed or
withheld. In the event the Indemnifying Party undertakes the defense of any such Claim,
action, or proceeding, no compromise or settlement of such Claims may be effected by the
Indemnifying Party without the Indemnified Party’s consent, which consent will not be
unreasonably conditioned, delayed or withheld unless (i) there is no finding or
admission of any material violation of Laws, (ii) the sole relief provided is monetary
damages that are paid in full by the Indemnifying Party; and (iii) such compromise or
settlement is not reasonably likely to have a Business Material Adverse Effect.

     (f) Notwithstanding the provisions of (c),(d) and (e) above, the Purchaser
covenants and agrees that it will actively pursue to the best of its ability all legal
theories, claims and rights and first fully exhaust all of its rights and remedies to
the point of either a settlement acceptable to Purchaser and Sellers’ Representative or
a final non-appealable determination of a court of competent jurisdiction against
Antares pursuant to the terms of that certain Sale Agreement Pursuant to Article 9 of
the Uniform Commercial Code, dated August 25, 2008 and made by and among D.S.B.
Operating Corp. as Buyer and Antares Capital Corporation as Agent for the Lender under
the Credit Agreement (such agreement being hereinafter the “Antares Agreement”),
including, but not limited to, Liabilities for any Taxes in any way related to Old
Brown, whether imposed on any of the Companies on any theory of transferee liability,
fraudulent transfer, alter ego or other theory of Liability, prior to Sellers having any
obligation whatsoever to indemnify Purchaser Indemnified Parties for any such
Liabilities pursuant to the terms of this Agreement. Sellers will not be obligated to
indemnify, defend or hold Purchaser harmless should Purchaser fail to strictly comply
with the terms and procedures for indemnification under the Antares Agreement and should
Purchaser or Sellers be materially prejudiced thereby. Prior to settlement of any claim
for any Taxes with Antares pursuant to the Antares Agreement, Purchaser shall seek and
obtain Sellers’ Representative’s consent, which consent will not be unreasonably
conditioned, delayed or withheld.

     6.3 Survival. The representations and warranties of the Sellers shall survive the
Closing for the following periods of time: (a) the representations and warranties contained in
Section 5.1(a) (“Organization and Existence”), Section 5.1(b)
(“Authority and Approval”) and in Section 5.1(n) (“Taxes”) shall survive
for a period equal to the relevant statute of limitations; (b) Section 5.1(l)
(“Environmental”) shall survive for a period of thirty-six (36) months; and (c) all other
representations and warranties contained in this Agreement will survive the Closing for a period of
twenty-four (24) months. Sellers indemnification obligations, if any, for Taxes related to Old
Brown, will survive until July 15, 2013. In addition to the foregoing, any Claims arising from any
fraudulent act or fraudulent omission will survive the Closing for a period equal to the

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relevant statute of limitations. Upon expiration of the applicable survival period for the
representations and warranties as provided for above, the representations and warranties whose
survival period has expired (which expiration shall be deemed to occur on the first day following
the last day of the applicable survival period) shall terminate, be void, and of no further force
or effect.

     6.4 Limitations. The rights to indemnification of Purchaser under this Agreement are
subject to the following limitations:

     (a) Cap. The aggregate amount which all of the Purchaser Indemnified
Parties will be entitled to receive for all Claims for indemnification under this
Agreement is limited to Nine Million and Six Hundred Thousand Dollars ($9.6 million)
(the “Cap”); provided, however, Claims arising under Section 5.1(a)
Organization and Existence Section 5.1(b) Authority and
Approval, 5.1(h) Title, 5.1(n) Taxes or 6.1(a)(iii), (iv), (v),
and (vii) shall not be limited to the Cap, but in all events shall be limited to the
Purchase Price.

     (b) Basket. The Purchaser Indemnified Parties will not be entitled to
assert any Claim for indemnification pursuant to this Agreement unless the total
monetary value of all Damages with respect to all such matters exceeds Five Hundred
Thousand Dollars ($500,000), and then only for the amount by which the monetary value of
such Damages exceeds Five Hundred Thousand Dollars ($500,000) (the “Basket”);
provided, however, (i) Claims arising under Section 5.1(b), 5.1(h),
5.1(n) or 6.1(a)(ii), (iii), (iv), (v), (vi),(vii) and (ix) shall not be
subjected to the Basket and (ii) Claims for indemnification for Purchaser Remediation
Costs pursuant to this Agreement shall not be subject to the Basket, but the Purchaser
Indemnified Parties, on the one hand, and the Sellers, severally in accordance with
their Percentage Interests, collectively, on the other hand, in the aggregate, will
share equally on a dollar for dollar basis with each bearing fifty percent (50%) of each
dollar of the first Three Hundred Thousand Dollars ($300,000) of Purchaser Remediation
Costs, if any. The Purchaser and the Sellers will share in such Purchaser Remediation
Costs as and when incurred and any claim from the Indemnification Escrow Account shall
reflect solely the portion of such Purchaser Remediation Costs payable by the Sellers in
accordance with this provision. For example, if total Purchaser Remediation Costs are
Three Hundred Fifty Thousand Dollars ($350,000), the Purchaser will be responsible for
$150,000 of such Purchase Remediation Costs and the Sellers will severally be
responsible for the remaining Two Hundred Thousand Dollars ($200,000) of such Purchaser
Remediation Costs in accordance with their Percentage Interests.

     (c) Set-Offs. The amount of each Claim recoverable from an Indemnifying
Party hereunder will be reduced by an amount equal to all indemnification payments or
other recoveries that the Indemnified Person is entitled to receive from a third party,
including an insurance company, in connection with the matter underlying the Claim for
such Damages. Additionally, Sellers indemnification obligations for any Liabilities for
Taxes in any way related to Old Brown shall be offset and mitigated dollar-for-dollar by
any recovery, net of reasonable costs and

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expenses, obtained by Purchaser pursuant to Antares’s indemnification obligations
under the terms of the Antares Agreement.

     (d) Indemnification Net of Tax Benefits. The amount of any indemnity
provided in Section 6.1(a), other than any indemnity with respect to Claims
which are not subjected to the Basket or the Cap shall be reduced (but not below zero)
by the amount of any actual net reduction in cash payments for Taxes realized by the
Purchaser Indemnified Parties as a result of the Damages giving rise to such indemnity
claim. If the indemnity amount is paid prior to the Purchaser Indemnified Parties
realizing any actual reduction in cash payments for Taxes in connection with the Damages
giving rise to such payment, and the Purchaser Indemnified Parties subsequently realize
such actual reduction in cash payments for Taxes, then the Purchaser Indemnified Parties
shall pay the amount of such actual reduction in cash payments for Taxes (but not in
excess of the indemnification payment or payments actually received with respect to such
Damages) to the Sellers and the Option Holders. For purposes of the preceding two
sentences, the Purchaser Indemnified Parties shall be deemed to have realized a
reduction in cash payments for Taxes with respect to a Taxable year if, and to the
extent that, the Purchaser Indemnified Parties’ cumulative liability for Taxes from the
Closing Date through the end of such Taxable year, calculated by excluding any Tax items
attributable to the Damages from all Taxable years, exceeds Purchaser Indemnified
Parties’ actual cumulative liability for Taxes through the end of the Taxable year,
calculated by taking into account any Tax items attributable to the amount of Damages
for all Taxable years (treating such Tax items as the last items claimed for any Taxable
year).

     (e) Notwithstanding anything to the contrary contained in this Agreement, there
shall be no right to indemnification under this Agreement (i) to the extent the Damages
comprising a claim (or a part thereof) with respect to such matter has been taken into
account in the determination of the Closing Working Capital pursuant to Section
3.4 hereof or (ii) if the Damages arise from any liability for Taxes, to the extent
such liability is attributable to a Purchaser Tax Act or is, or can be, reduced by any
net operating or capital loss carryforward or carryback of the Companies arising in a
Pre-Closing Tax Return and Purchaser is not required to make any payment with respect to
such liability for Taxes.

     (f) Notwithstanding anything to the contrary contained in this Agreement, the
Purchaser shall not be entitled to indemnification for Claims under Section
5.1(k) of this Agreement until the total monetary value of all Damages with respect
to all such Claims under Section 5.1(k) exceeds Ten Thousand Dollars ($10,000),
and then, after the total monetary value of all Claims under Section 5.1(k)
exceeds Ten Thousand Dollars ($10,000), only for the amount by which the monetary value
of such Damages exceeds Ten Thousand dollars ($10,000).

     6.5 Exclusive Remedy; Purchaser’s Knowledge.

     (a) Except as set forth herein, from and after the Closing, the indemnification
obligations set forth in Section 6.1 are the sole and exclusive remedy of the
Indemnified

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Parties (i) for any breaches of any of the representations or warranties in this
Agreement or of any covenant or agreement in this Agreement or (ii) otherwise with respect
to this Agreement, the Companies, the Purchased Shares and the transactions contemplated by
this Agreement and matters arising out of, relating to or resulting from the subject matter
of this Agreement, whether based on statute, contract, tort, property or otherwise, and
whether or not arising from the relevant party’s sole, joint or concurrent negligence,
strict liability or other fault; provided, however, that nothing in this Section 6.5
shall limit the remedies of the Indemnified Parties for (i) fraudulent acts or omissions, or
intentional misconduct, or (ii) as provided for in Section 8.1(c).

     (b) Except for potential violations of Environmental Laws as to which the Purchaser is
not aware as a result of not fully completing its due diligence investigation, based upon
Purchaser’s in-depth diligence of the Companies, Purchaser is not aware of any
representation, warranty or statement made by the Sellers in this Agreement or in any
Disclosure Schedules, certificate, statement, document or instrument furnished or to be
furnished to Purchaser pursuant to this Agreement that contains any untrue statement of
material fact or omits to state any material fact required to be stated herein or therein or
necessary to make any statement herein or therein not materially misleading.

     6.6 Limitations on Damages. Notwithstanding anything to the contrary contained in
this Agreement, in no event is Purchaser liable to Seller Indemnified Parties, and in no event are
Sellers liable to any Purchaser Indemnified Parties, for incidental, special, indirect or punitive
damages, including decline in market capitalization, damages to reputation, increased cost of
capital or borrowing for any reason with respect to any matter arising out of, relating to or
resulting from this Agreement, whether based on statute, contract, tort, property or otherwise, and
whether or not arising from the relevant party’s sole, joint or concurrent negligence, strict
liability or other fault unless such incidental, special, indirect or punitive damages are awarded
to third parties.

     6.7 Method and Treatment of Indemnification Payments. For all purposes hereunder, all
indemnification payments made pursuant to Article 6 of this Agreement will be paid first
from the proceeds of the Indemnification Escrow Deposit and will be treated collectively as an
adjustment to the Purchase Price.

     6.8 Materiality. Each of the representations and warranties that contain any
“Material Adverse Effect,” “in all material respects” or other materiality (or correlative
meaning) qualifications shall be deemed to include such qualifiers for purposes of determining
whether or not there is a breach of such representation or warranty and shall be deemed to exclude
such qualifiers for purposes of calculating Damages under this Article 6.

     6.9 Mitigation and Limitation of Claims. Notwithstanding anything to the contrary
contained herein, an Indemnified Party shall take all reasonable steps to mitigate all Damages and
the like relating to a Claim, including availing itself of any defenses, limitations, rights of
contribution, and other rights at law or equity, and shall provide such evidence and documentation
of the nature and extent of such Claim as may be reasonably requested by the Indemnifying Party.
An Indemnified Party’s reasonable steps shall include the reasonable

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expenditure of money to mitigate or otherwise reduce or eliminate any Damages for which
indemnification would otherwise be due under this Article 6.

     6.10 Purchaser’s Remediation Work.

     (a) Promptly following the Closing, Purchaser will engage a nationally recognized
environmental consultant with experience dealing with the Ohio Environmental Protection
Agency’s Voluntary Action Program (the “VAP”) and who is identified on a list of
remediation contractors agreed upon by Purchaser and Sellers’ Representative and
delivered to such parties on or prior to the date hereof (“Approved Remediation
Contractors”) to perform, at Purchaser’s sole cost and expense, a Phase II
investigation of the Real Property located in North Baltimore, Ohio (the “North
Baltimore Real Property”) (such investigation being hereinafter the “Phase
II”). As used herein, any Approved Remediation Contractor selected by Purchaser
will be referred to as “Purchaser’s Approved Remediation Contractor” and any
Approved Remediation Contractor selected by Sellers’ Representative will be referred to
herein as “Sellers’ Approved Remediation Contractor”. In the event, in
Purchaser’s opinion, that the results of the Phase II conducted by Purchaser’s Approved
Remediation Contractor conclude that there are Hazardous Materials at the North
Baltimore Real Property in excess of levels permitted under Environmental Law, Purchaser
shall promptly solicit a detailed written cost proposal from Purchaser’s Approved
Remediation Contractor for the scope and proposed cleanup and remediation of such
Hazardous Materials to Required Remediation levels which are permitted under
Environmental Law (the cost contained in any such proposal received by Purchaser being
hereinafter the “Purchaser’s Initial Estimated Remediation Cost”). Purchaser
shall provide to Sellers’ Representative a copy of the Phase II, a copy of Purchaser’s
Phase I Environmental Assessment, dated February 2011 (the “Phase I”), and, if
applicable, a copy of Purchaser’s Initial Estimated Remediation Cost and a description
of the proposed work and reasons for such proposal within ten (10) Business Days of
receipt of any such documents other than Phase I which will be dated as of an earlier
date. Purchaser will consent to Purchaser’s Approved Remediation Contractor discussing
the results of its Phase I and Phase II with Sellers’ Representative or any Sellers’
Approved Remediation Contractor from the aforementioned list.

     (b) If, in Purchaser’s opinion, the Phase II concludes that there are Hazardous
Materials at the North Baltimore Real Property in excess of levels permitted under
Environmental Law, Sellers’ Representative shall have a period of sixty (60) days
following the receipt of the Purchaser’s Initial Estimated Remediation Cost to deliver
to Purchaser a detailed written proposal from Sellers’ Approved Remediation Contractor
for the scope and cost of the Required Remediation (“Sellers’ Initial Estimated
Remediation Cost”). As part of preparing Sellers’ Initial Estimated Remediation
Cost, Sellers may engage Sellers’ Approved Remediation Contractor, at Sellers’ sole cost
and expense, to perform a Phase II investigation of some or all of the areas of the
North Baltimore Real Property tested by Purchaser’s Approved Remediation Contractor
(“Sellers’ Phase II”). For the avoidance of doubt, any testing performed by the
Sellers’ Approved Remediation Contractor shall be for

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the purpose of verification of the results of the Phase II and as a result should
only be performed in substantially the same locations within the North Baltimore Real
Property as were tested in connection with the Phase II. Within three (3) Business Days
of Purchaser’s receipt from Sellers’ Approved Remediation Contractor of a written plan
detailing proposed sampling locations and sampling activities, Purchaser shall grant
Sellers’ Approved Remediation Contractor access to the North Baltimore Real Property for
purposes of conducting Sellers’ Phase II. If applicable, Sellers shall provide to
Purchaser a copy of Sellers’ Phase II within ten (10) Business Days of Sellers’
Representative’s receipt of such document.

     (c) In the event that Sellers’ Representative fails to deliver to Purchaser a
Sellers’ Initial Estimated Remediation Cost within sixty (60) days following the receipt
by Sellers’ Representative of the Purchaser’s Initial Estimated Remediation Cost, the
initial cost of the Purchaser to perform the Required Remediation described in the
Purchaser’s Initial Estimated Remediation Cost shall be deemed to be the amount
specified in Purchaser’s Initial Estimated Remediation Cost and such amount, subject to
the provisions of Section 6.4(b) and the following sentence and, if applicable,
to the following paragraph, shall, for purposes of determining the amount of the
Indemnification Escrow Deposit which may be held by the Escrow Agent pending completion
of the Required Remediation shall, for purposes of this Agreement, be referred to as the
“Purchaser Remediation Costs”. In the event that the Sellers’ Representative
delivers a Sellers’ Initial Estimated Remediation Cost to the Purchaser within sixty
(60) days following the receipt by Sellers’ Representative of the Purchaser’s Initial
Estimated Remediation Cost, the “Purchaser Remediation Costs” shall, subject to the
provisions of the following paragraph, if applicable, be equal to the lower of
Purchaser’s Initial Estimated Remediation Cost and the Sellers’ Initial Estimated
Remediation Cost.

     (d) Promptly following the determination of the amount of the Purchaser
Remediation Costs as provided in the preceding paragraph, the Purchaser shall, subject
to the restrictions set forth in the definition of Required Remediation, take any action
which may be necessary or required to cleanup the Hazardous Materials which are located
at the North Baltimore Real Property, including, but not limited to, the engagement of
the lowest cost Approved Remediation Contractor as between Purchaser’s Approved
Remediation Contractor and Seller’s Approved Remediation Contractor (hereinafter, the
“Selected Approved Remediation Contractor”) to perform all work and other
actions required to perform the Required Remediation under the so-called “classic track”
of the VAP, including, but not limited to, the performance of additional borings to
determine and delineate the extent of any contamination discovered, the performance of
laboratory testing and analysis of soil and water samples for contamination, the
excavation and removal of contaminated soil, the construction of permanent or temporary
monitoring wells, the communication with any applicable Governmental or Regulatory
Authority regarding the Required Remediation, and the filing of any plans or documents
with any Governmental or Regulatory Authority, including submitting a no further action
letter to the Ohio Environmental Protection Agency (the “Ohio EPA”) for review
and approval and causing the Ohio EPA to issue a covenant not to sue. In addition,
Purchaser

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Remediation Costs will include reasonable attorney fees and actual out-of-pocket
expenses reasonably incurred as a result of Required Remediation. In the event that,
during the performance of the Required Remediation, additional contamination is
discovered which was not anticipated by the Purchaser Remediation Cost furnished by the
Selected Approved Remediation Contractor, Purchaser and Sellers’ Representative shall
promptly seek a detailed written cost proposal from the Selected Approved Remediation
Contractor with respect to the additional cost to cleanup such additional contamination,
if cleanup is required pursuant to the definition of Required Remediation, and shall
promptly, but in no event later than ten (10) Business Days following the receipt by
either Purchaser or Sellers’ Representative, as the case may be, of any such additional
proposal, deliver a copy of the same to Sellers’ Representative or Purchaser, as the
case may be (the cost contained in any such proposal received being hereinafter the
“Initial Supplemental Estimated Remediation Cost”). Either Sellers’
Representative or Purchaser shall have a period of thirty (30) days following the
receipt of the Initial Supplemental Estimated Remediation Cost to deliver to the other a
detailed written proposal of scope and cost for any additional work from the Approved
Remediation Contractor who was not initially selected to prepare the Initial
Supplemental Estimated Remediation Cost (the cost, if any, contained in any such
proposal received by the party furnishing it being hereinafter the “Alternative
Supplemental Estimated Remediation Cost”). In the event that, the either the
Sellers’ Representative or the Purchaser, as the case may be fails to deliver an
Alternative Supplemental Estimated Remediation Cost within thirty (30) days following
the receipt of the Initial Supplemental Estimated Remediation Cost, the Purchaser
Remediation Costs shall be deemed to be increased by the amount specified in Initial
Supplemental Estimated Remediation Cost. In the event that either the Sellers’
Representative or the Purchaser delivers an Alternative Supplemental Estimated
Remediation Cost within thirty (30) days following the receipt of the Initial
Supplemental Estimated Remediation Cost, the amount of the increase in the Purchaser
Remediation Costs shall be the lower of the Initial Supplemental Estimated Remediation
Cost and the Alternative Supplemental Estimated Remediation Cost. There shall be no
limit on the number of times that the amount of the Purchaser Remediation Costs is
increased through the operation of this paragraph; provided that the Purchaser
Remediation Costs shall not be increased pursuant to this paragraph if no additional
cleanup of Hazardous Materials is required pursuant to the definition of Required
Remediation. If the costs of any part of the Required Remediation are increased due to
an act of God or an act or omission (after the Closing) by a Person other than any
Seller or an agent, representative or contractor of any Seller, Sellers shall
not be responsible for any such increase.

     (e) Purchaser and Sellers acknowledge that petroleum in its naturally occurring
form is present beneath and adjacent to the North Baltimore Real Property
(“Petroleum”). Should the removal of Petroleum be part of the Required
Remediation, Purchaser may seek a buyer for the Petroleum. To the extent Purchaser, at
any time, sells the Petroleum removed as part of any Required Remediation, Purchaser
Remediation Costs payable by Sellers shall be reduced or refunded by the amount of money
Purchaser receives for the Petroleum.

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     (f) Subject to the cost sharing specified in Section 6.4(b), Purchaser
shall submit all invoices received from any such environmental contractor, or consultant
in connection with performance of the Required Remediation to Sellers’ Representative
and the Escrow Agent and, if Sellers’ Representative does not object in a writing
provided to Purchaser and the Escrow Agent, the Escrow Agent shall promptly, but in no
event later than ten (10) Business Days following receipt by the Escrow Agent of any
such invoices, pay to the Purchaser the amount reflected on any such invoice. The fact
that a portion of the Indemnification Escrow Deposit is to be withheld from distribution
to Sellers to reflect any unpaid portion of the Purchaser Remediation Costs shall not be
deemed to limit the obligation of Sellers to indemnify the Purchaser for all costs and
expenses incurred by Purchaser to perform the Required Remediation and Sellers hereby
acknowledge their several obligation in accordance with their Percentage Interests to
indemnify Purchaser for all such costs and expenses; provided that, in no event shall
the aggregate amount which the Sellers are obligated to indemnify the Purchaser for with
respect to all Claims for indemnification under this Agreement, including costs and
expenses incurred by Purchaser to perform the Required Remediation, exceed the Cap.
Subject to the foregoing, if and to the extent that the amount of the costs and expenses
incurred by the Purchaser to perform the Required Remediation exceed the amount
contained in the Indemnification Escrow Account, if Sellers’ Representative does not
object in a writing provided to Purchaser and the Escrow Agent, the Sellers shall
promptly, but in no event later than ten (10) Business Days following delivery of any
invoices for such services to Sellers’ Representative, pay to Purchaser their respective
Percentage Interests in the amount of such invoices, subject to the aggregate limit of
the Cap.

ARTICLE 7

TAX MATTERS

     7.1 Straddle Period. In the case of any Tax Return with respect to a Taxable
period that includes (but does not end on) the Closing Date (a “Straddle Period”) of a
member of the Company Group, Purchaser will, to the extent permitted by Law, elect to treat the
Closing as the last day of the taxable year or period and will apportion any Taxes arising out of
or relating to a Straddle Period to the Pre-Closing Tax Period and the Post-Closing Tax Period
under the “closing-the-books” method as described in Treasury Regulation Section
1.1502-76(b)(2)(i) (or any similar provision of state, local or foreign law); provided,
however, that any Closing Date Tax Benefits will be apportioned to the Pre-Closing Tax Period. In
any case where applicable Law does not permit a member of the Company Group to treat the Closing as
the last day of the taxable year or period, any Taxes arising out of or relating to a Straddle
Period will be apportioned to the Pre-Closing Tax Period and the Post-Closing Tax Period based on a
closing of the books; provided, however, that (i) exemptions, allowances or deductions that are
calculated on an annualized basis (including depreciation, amortization and depletion deductions)
will be apportioned on a daily pro rata basis, and (ii) real and personal property Taxes and any
other Tax that is not based on or measured by income, gross receipts, sales, use or payroll shall
be allocated on a per diem basis; provided, however, that any Closing Date Tax Benefits will be
apportioned solely to the Pre-Closing Tax Period.

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     7.2 Tax Returns. Sellers shall prepare or cause to be prepared and file all
Pre-Closing Tax Period Tax Returns of each member of the Company Group which are to be filed after
the Closing Date, including, all Straddle Period Tax Returns of each member of the Company Group.
The Purchasers shall provide an authorization to Seller’s to allow Sellers to execute such
Pre-Closing Tax Period Tax Returns on behalf of the Company Group. Such Tax Returns shall be
prepared in a manner consistent with the past practices and customs of the Company Group except to
the extent any such practice or custom is clearly not permitted by applicable Law. Sellers shall
use their Best Efforts to prepare and file the federal and state income Tax Returns for the taxable
year of the Company Group that ends on the Closing Date (the “Pre-Closing Stub Returns”)
within seventy-five (75) days of the Closing Date. Sellers shall deliver the Straddle Period Tax
Returns to Purchaser at least thirty (30) days prior to the proposed filing date of such Tax
Returns, for review and comment. Sellers shall make any changes requested by the Purchaser that
are reasonable, in accordance with applicable Law and consistent with Sellers past practices in the
preparation of its Straddle Period Tax Returns. Sellers shall not file the Straddle Period Tax
Returns without the consent of Purchaser, which consent shall not be unreasonably withheld;
provided, that it shall not be unreasonable to withhold consent to the filing of any Tax Return
that does not comply with this Section 7.2. In the event that Sellers’ Representative
refuses to make a change to the Straddle Period Tax Return requested by Purchaser and in the event
that, within ten (10) days following receipt by Sellers’ Representative of written notice from
Purchaser that Purchaser is disputing the refusal of Sellers’ Representative to make any such
change to the Straddle Period Tax Return, the determination of whether or not the change should be
made to the Straddle Period Tax Return shall be referred to the Referee whose determination shall
be conclusive and binding on the parties. The fees and expenses of the Referee shall be allocated
among the Purchaser and the Sellers in the same manner as provided for in Section 3.6
hereof. Within ten (10) days prior to the due date of a Straddle Period Tax Return, the Purchaser
shall pay the Sellers’ Representative the amount of Taxes attributable to the Post Closing Tax
Period shown to be due on such Tax Returns prepared in accordance with this Section 7.2 and
consented to by the Purchaser in accordance with this Section 7. In addition, Sellers’
Representative will provide Purchaser with copies of all other pre-Closing Date Tax Returns that
have not been filed as of the Closing Date in advance of filing such Tax Returns.

     7.3 Amendment to Tax Returns. Without the prior written consent of the Sellers’
Representative, which consent shall not be unreasonably withheld, conditioned or delayed, none of
Purchaser or any member of the Company Group shall amend, refile or otherwise modify any Tax Return
of any member of the Company Group for a Pre-Closing Tax Period or Straddle Period Tax Return, or
waive any limitations period with respect to such Tax Returns, if such amendment, refiling or
modification would (a) result in an increase in Taxes for any Pre-Closing Tax Period for which the
Sellers would be liable hereunder, (b) create an obligation of Sellers to indemnify Purchasers
under this Agreement or (c) would reduce the amount of any refunds for the Closing Date Tax Benefit
or the tax refunds contemplated by the last sentence of Section 7.4.

     7.4 Tax Refunds and Benefits Refunds.

(a) Refunds

     (i) Purchaser is a C corporation that will include Holdings and Brown or
any Affiliate of Purchaser in its Federal consolidated Tax group (“Purchaser

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Group”) on the first day following the Closing Date. Purchaser and
Sellers acknowledge and agree that Holdings and Brown shall end their consolidated
Tax year at the Closing Date and Sellers shall file for a refund of Taxes paid by
the Company Group for the period prior to the Closing.

     (ii) All “Applicable Tax Refunds” received after Closing by the
Purchaser Group shall solely be for the account of the Sellers and the Option
Holders as described in this Section. An “Applicable Tax Refund” is a refund of Tax
received by the Purchaser Group after the Closing that is attributable to Closing
Date Tax Benefits recognized after the Closing.

     (iii) The Purchaser Group shall direct all Governmental or Regulatory
Authorities to pay any and all such Applicable Tax Refunds directly via SWIFT or
wire transfer to a segregated, interest bearing account with a federally insured
banking institution with branches in Illinois acceptable to Sellers’ Representative
solely designated for the purpose of providing the Sellers and the Option Holders
with the Applicable Tax Refunds (the “Tax Refund Account”), which shall be a
subaccount of the Escrow Account.

     (iv) The Purchaser Group shall keep all assets in such Tax Refund Account
unencumbered from any third party and shall not assign, sell, pledge, transfer or
otherwise encumber Sellers’ and Option Holders’ interest in the Applicable Tax
Refunds or the Tax Refund Account to any party other than the Sellers and the Option
Holders. Purchaser Group covenants to the Sellers and the Option Holders that the
Tax Refund Account will only be used for the collection and disbursement of any
Applicable Tax Refunds for the benefit of the Sellers and the Option Holders and for
no other purpose. The Purchaser Group will: (a) notify the Sellers’ Representative
immediately upon notice that a Governmental or Regulatory Authority has deposited
funds in the Tax Refund Account, and (b) provide the Sellers’ Representative with
monthly statements from the Tax Refund Account within five Business Days of receipt
from the banking institution.

     (v) To the extent any Governmental or Regulatory Authorities do not pay any
Applicable Tax Refunds via SWIFT or wire transfer directly to the Tax Refund
Account, but instead pay such Applicable Tax Refunds via check or other means
directly to any member of the Purchaser Group, then the Purchaser Group shall
immediately endorse and delivery such check to the Sellers’ Representative.

     (b) Tax Benefits.

     (i) To the extent the Purchaser Group recognizes any reduction in Tax
liability arising from the Closing Date Tax Benefits at any time, the Purchaser
Group shall pay to the Sellers’ Representative for the benefit of the Sellers and
Option Holders an amount of cash equal to the reduction in Taxes owed within five
(5) Business Days after the Purchaser Group files any Tax Return after the Closing.
The amount that the Purchaser Group shall pay under this subsection

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shall be determined on a “with and without” basis considering the Closing Date
Tax Benefits.

     (ii) The Purchaser Group will indemnify, defend and hold the Sellers and
the Option Holders harmless from any breach of the provisions of this Section
7.4 by any member of the Purchaser Group. The Purchaser Group agrees that
should the Sellers or the Option Holders find it necessary to take any action to
enforce their rights pursuant to the provisions of this Section 7.4, then
the Purchaser Group shall within five (5) Business Days of Sellers’ Representatives
written request, reimburse Sellers and the Option Holders, as applicable, for all
fees, costs and expenses (including attorneys fees and fees of accountants and other
professionals retained by Sellers or the Option Holders) in connection with
enforcement of the rights pursuant to this Section 7.4, which rights shall
be cumulative and in addition to any other rights or remedies to which the Sellers
or the Option Holders may be entitled hereunder or under applicable Law. All
calculations necessary to compute the amount of a cash benefit or additional Closing
Date Tax Benefits under this Section 7.4 shall be done on a with and without
basis similar to that done in Section 6.4(d).

     7.5 No Code Section 338 Election. Purchaser shall not make, or cause to be made,
any election under Section 338 of the Code with respect to the transactions contemplated by this
Agreement.

     7.6 Cooperation on Tax Matters. Purchaser, the Company Group and Sellers will
cooperate fully, as and to the extent reasonably requested by the other party, in connection with
any Tax matters relating to the Company Group (including by the provision of reasonably relevant
records or information). The party requesting such cooperation will pay the reasonable
out-of-pocket expenses of the other party. Such cooperation will include without limitation:

     (i) assisting the other party in preparing any Tax Returns including
requests for Tax refunds which such other party is responsible for preparing and
filing, such assistance to include reasonable access by the Sellers’ Representative
to Tim Hack for such purposes;

     (ii) cooperating fully in preparing for any audits of, or disputes with
Governmental or Regulatory Authorities regarding, any Tax Returns of the Companies
or Taxes due by the Companies, it being acknowledged and agreed that Sellers’
Representative shall be granted the right to dispute any Taxes which may be the
subject of indemnification obligations of the Sellers;

     (iii) making available to the other and to any Governmental or Regulatory
Authority as reasonably requested all information, records and documents relating to
Taxes of the Companies;

     (iv) providing timely notice to the other in writing of any pending or
threatened Tax audits or assessments relating to Taxes of the Companies for taxable
periods for which the other may have any liability; and

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     (v) furnishing the other with copies of all correspondence received from
any Governmental or Regulatory Authority in connection with any Tax audit or
information request with respect to any such taxable period.

     7.7 Treatment of Payments. Any payments made under this Section 7 or
under the indemnification provisions of Section 6 shall be treated as either an increase or
decrease in Base Purchase Price.

ARTICLE 8

CERTAIN COVENANTS

     8.1 Non-Compete; Non-Solicitation.

     (a) Altus Capital Partners SBIC, L.P. and Altus-D.S. Brown Co-Invest, LLC
(collectively, the “Restricted Parties”) agree that for a period of two (2)
years from the Closing Date (the “Restriction Period”), neither the Restricted
Parties nor any of their respective Affiliates over which they have control will,
directly or indirectly, without the prior written consent of Purchaser:

     (i) engage or participate or have any ownership or other financial interest
in (except for owning not more than five percent (5%) of the outstanding securities
of any class of securities of a publicly traded company), or in any way assist (as
an employee, agent, consultant, investor, partner, shareholder or otherwise) a
Competing Business anywhere in the world; or

     (ii) divert, solicit or attempt to divert, or assist or encourage any
Person in diverting, soliciting or attempting to divert, to or for any Competing
Business, any customer or supplier of Purchaser related to the Business; or

     (b) The Restricted Parties agree that for a period of three (3) years from the
Closing Date neither the Restricted Parties nor any of their respective Affiliates over
which they have control, will directly or indirectly, without the prior consent of
Purchaser, solicit (other than by means of general advertisement) or hire any of Kirk L.
Feuerbach, Gerald A. Wetzel, Timothy L. Hack, Tom Lewis or Mark Kaczinski to become an
employee or consultant of any of the Restricted Parties for employment or consultation
in connection with a Competing Business.

For purposes of this Section 8.1, all references to Purchaser shall be deemed to include
any and all subsidiaries of Purchaser. A notice by any Restricted Party of any job listing or
opening, or similar general publication of a job search or availability shall not be construed as a
violation or breach of this Section 8.1.

     (c) Each Restricted Party, on behalf of himself, herself or itself, agrees and
acknowledges that the duration and scope of the non-solicitation/no-hire, and other
provisions described in this Section 8.1 are fair, reasonable and necessary in
order to protect the legitimate interests of Purchaser, and that adequate consideration
has been received by such Restricted Party for such obligations. If, however, for any

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reason any court determines that the restrictions in this Section 8.1 are
not reasonable or that such consideration is inadequate, such restrictions shall be
interpreted, modified or rewritten to include as much of the duration, scope and
geographic area identified in this Section 8.1 as will render such restrictions
valid and enforceable.

     (d) Each Restricted Party, on behalf of himself, herself or itself,
acknowledges that any breach of the provisions contained in this Section 8.1 may
result in serious and irreparable injury to Purchaser. Therefore, notwithstanding
Section 6.5, Restricted Parties acknowledge and agree that only in the event of
a breach of this Section 8.1 by any Restricted Party, Purchaser shall be
entitled, in addition to any other remedy at Law or in equity to which Purchaser may be
entitled, to a grant by a court of competent jurisdiction of equitable relief against
such Restricted Party, including, without limitation, an injunction to restrain such
Restricted Party from such breach and to compel compliance with the obligations of
Restricted Party hereunder in protecting or enforcing Purchaser’s rights and remedies.

     8.2 Restricted Use of Confidential Information.

     (a) Non-Disclosure and Non-Use of Confidential Information. Each
Receiving Party acknowledges the confidential and proprietary nature of the Confidential
Information of the Disclosing Party and agrees that such Confidential Information (i)
will be kept confidential by the Receiving Party; (ii) will be used by it, its
Affiliates and Representatives only for the purposes of evaluating and consummating the
transactions contemplated by this Agreement; and (iii) without limiting the foregoing,
will not be disclosed by the Receiving Party to any Person, except in each case as
otherwise expressly permitted by the terms of this Agreement or with the prior written
consent of an authorized Representative of the Disclosing Party. Each Receiving Party
will disclose the Confidential Information of the Disclosing Party only to its
Representatives who require such material for the purpose of evaluating or advising with
respect to the transactions contemplated by this Agreement and are informed by the
Receiving Party of its obligations under this Section 8.2 with respect to such
information. Each Receiving Party will enforce the terms of this Section 8.2 as
to its respective Representatives and be responsible and liable for any breach of the
provisions of this Section 8.2 by it or its Representatives.

     (b) From and after the Closing, the provisions of Section 8.2(a) will
not apply to or restrict in any manner Purchaser’s use of any Confidential Information
that is a Company asset or liability.

     (c) Section 8.2(a) does not apply to Confidential Information that (i)
was, is or becomes generally available to the public other than as a result of a breach
of this Section 8.2 or any applicable confidentiality agreement by the Receiving
Party or its Representatives; (ii) was or is developed by the Receiving Party
independently of and without reference to any Confidential Information of the Disclosing
Party; or (iii) was, is or becomes available to the Receiving Party on a nonconfidential
basis from a third party not bound by a confidentiality agreement with the Disclosing
Party or any legal, fiduciary or other obligation to the Disclosing Party restricting
such disclosure.

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Sellers will not disclose any Confidential Information of the Companies acquired
prior to Closing relating to any of the Companies in reliance on the exceptions in
clauses (ii) or (iii) above.

     (d) If a Receiving Party is required by applicable Law, stock exchange
requirement or regulation to make any disclosure that is prohibited or otherwise
constrained by this Section 8.2, that Receiving Party will provide the
Disclosing Party with prompt notice of such compulsion or request (unless prevented by
applicable Law) so that it may seek an appropriate protective order or other appropriate
remedy or waive compliance with the provisions of this Section 8.2. In the
absence of a protective order or other remedy, the Receiving Party may disclose that
portion (and only that portion) of the Confidential Information of the Disclosing Party
that, based upon advice of the Receiving Party’s counsel, the Receiving Party is legally
compelled to disclose; provided, however, that the Receiving Party will
use reasonable efforts to obtain reliable assurance that confidential treatment will be
accorded by any Person to whom any Confidential Information is so disclosed. The
provisions of this Section 8.2(d) do not apply to any legal proceedings between
the parties to this Agreement.

     8.3 Conduct of Business by the Companies Pending the Closing.

     (a) From the Execution Date through the Effective Time, the Companies shall:
(i) conduct their business in the Ordinary Course of Business and in compliance in all
material respects with all applicable Laws; (ii) use reasonable best efforts to preserve
intact their respective business organizations and goodwill, keep available the services
of their respective present officers, employees and independent contractors, and
preserve the goodwill and business relationships with customers, suppliers, licensors,
licensees and others having business relationships with them, in each case such that the
Business and its operations, organization shall be unimpaired in all material respects
on the Closing Date; (iii) make no capital expenditure in excess of One Hundred Thousand
Dollars ($100,000) without prior notification to Purchaser; (iv) preserve the present
business relationships which it has with its vendors, customers, suppliers and other
Persons having business relationships with any of the Companies. Notwithstanding the
foregoing, as soon as possible but not later than three (3) months after the execution
of this Agreement (“Carve-out Date”), the Sellers and the Companies (prior to
the Closing Date) and the Purchaser and the Companies (on and after the Closing Date)
shall take, and shall procure Kirk Feuerbach, or such other individual as may be
reasonably acceptable to Sellers’ Representative, in the capacity of the legal
representative of Brown China to take, such action as may be required to terminate the
status of Brown China as a subsidiary or Affiliate of the Companies as of the Carve-out
Date, by means of transferring all of the equity interests in Brown China to a designee
of the Sellers (“Carve-out Transfer”). From the date hereof, the sole
activities to be conducted in connection with Brown China will be to spinoff and
liquidate the business. The Sellers’ Representative and its counsel shall prepare the
documents necessary for the Carve-out Transfer and shall provide copies of all such
documents to the Purchaser in advance of execution or filing for the Purchaser’s review.
Sellers shall reimburse

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Purchaser up to Seven Thousand Five Hundred and no/100th Dollars
($7,500.00) for its legal fees in connection with the review of such documents.

     (b) Except as otherwise contemplated by this Agreement, (x) in connection with
the Carve-out Transfer of Brown China, (y) as required by applicable Law, or (z) with
the advance written approval of the Purchaser, during the period beginning on the date
hereof and continuing through to the Closing Date, the Sellers shall take such action as
may be necessary to cause each of the Companies not to: (i) declare, set aside, make or
pay any dividend or other distribution in stock or property of any member of the Company
Group; (ii) split, combine or reclassify any shares of capital stock of any of the
Companies; (iii) redeem or otherwise acquire (directly or indirectly) any shares of
capital stock of any of the Companies; (iv) transfer, issue, sell, deliver, pledge or
otherwise dispose of any shares of capital stock or other equity interests in any of the
Companies; (v) grant any options, warrants, calls or other rights to purchase or
otherwise acquire any capital stock or other equity interests of any of the Companies;
(vi) directly or indirectly acquire, by merger, consolidation or purchase, all or a
substantial equity interest in any Person or all or substantially all the assets of any
Person; (vii) except in the Ordinary Course of Business, sell, lease, license or
otherwise dispose of or subject to any Lien (other than Permitted Liens), any material
property or assets of any of the Companies other than pursuant to Contracts entered into
prior to the date hereof; (viii) make any loans, advances or capital contributions to or
investments in any Person; (ix) enter into, terminate or amend any Material Contract
other than in the Ordinary Course of Business: (x) except as required by Law or any
existing Employee Benefit Plan, adopt, enter into, amend in any material respect, alter
in any material respect or terminate any Employee Benefit Plan or any collective
bargaining agreement; (xi) make any change in any of its present accounting methods and
practices, except as required by changes in GAAP or applicable Law, or make or change
any Tax election, adopt or change any Tax accounting method, file any amended Tax
Return, enter into any closing agreement with respect to Taxes, settle any Tax Claim or
assessment, 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 or take any
other action, or omit to take any other action relating to the filing of any Tax Return
or the payment of any Tax, if such election, change, amendment, agreement, settlement,
surrender, consent or other action or omission would have the effect of increasing the
Tax liability of the Purchaser, any of its Affiliates or any of the Companies for any
period ending after the Closing Date or decreasing any Tax attribute of the Purchaser or
any of its Affiliates or any of the Companies existing as of the Closing Date; (xii)
amend or authorize any amendment to any of the Organizational Documents of any of the
Companies; (xiii) effect or agree to effect any merger, acquisition, recapitalization,
reclassification, consolidation, liquidation, bankruptcy or other reorganization with
respect to any of the Companies; (xiv) cancel or terminate any Insurance Policies or
allow the coverage under any Insurance Policies to lapse, unless, in the case of any
Insurance Policies as to which no claims have been made, simultaneously with such
termination, cancellation or lapse, replacement policies have been procured and are in
full force and effect providing coverage equal to or greater than coverage under the
canceled, terminated or lapsed Insurance Policies for substantially similar premiums

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and with insurance companies having substantially the same or better AM Best rating
as the AM Best rating of the insurance companies whose Insurance Policies have been
terminated, cancelled or allowed to lapse; (xv) except as set forth on Section 8.3
(xv) of the Disclosure Schedules, abandon or fail to maintain any material
Intellectual Property or license, assign, sell, encumber or otherwise transfer or
dispose of any Intellectual Property; (xvi) sell, lease, license, encumber or dispose of
any Owned Real Property or modify, amend or terminate any leases of any Leased Real
Property; (xvii) settle or compromise any Proceeding or commence any proceeding; (xviii)
delay or postpone the payment of any accounts payable or other Liabilities or accelerate
the collection of its accounts receivables or otherwise manage its working capital other
than in the Ordinary Course of Business; (xix) issue any note, bond, other debt security
or create, incur, assume or guarantee any Debt other than in the Ordinary Course of
Business; or (xx) agree or commit to do any of the foregoing.

     8.4 Announcement. Neither Sellers nor Purchaser will issue any press release or
otherwise make any public statement with respect to this Agreement and the transactions
contemplated hereby without the prior written consent of the other (which consent will not be
unreasonably withheld), except as may be required by applicable Law. Notwithstanding anything in
this Section 8.3 to the contrary, Sellers and Purchaser may mutually agree to issue a press
release and/or make public statements (together or independently) regarding this Agreement and the
transactions contemplated hereby upon Closing and will, to the extent practicable, consult with
each other before issuing, and provide each other a reasonable prior opportunity to review and
comment upon, any such press release or other public statements whether or not required by
applicable Law.

     8.5 Access to Information. Between the date of this Agreement and the Closing
Date and upon reasonable advance notice from Purchaser, Sellers will, and will cause the Companies
to, afford Purchaser reasonable access during normal business hours to the Companies’ personnel,
properties, Contracts, books and records and other financial, operating and other data and
information as Purchaser may reasonably request. The foregoing covenant will not require Sellers
or the Companies to provide Purchaser with access to any personnel, properties, Contracts, books
and records or other financial, operating or other data and information (a) that Sellers believe in
good faith may be subject to any contractual confidentiality obligation, (b) that may be covered by
any attorney-client, work product or similar legal privilege or (c) that permit Purchaser to
conduct any Phase II or other invasive environmental testing procedures, including conducting soil,
ground water, air emissions or other testing relating to any of the Real Property.

     8.6 Consents.

     (a) Sellers and the Companies shall use commercially reasonable efforts to
obtain all Consents needed to consummate the transactions contemplated by this Agreement
or that are listed in Section 5.1(c) of the Disclosure Schedules; provided,
however, that Sellers and the Companies shall not offer or pay any consideration, or
make any agreement or understanding affecting the Business or the assets, properties or
Liabilities of the Companies, in order to obtain any such third Person consents,
approvals or waivers, except with the prior written consent of Purchaser.

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     (b) The Companies and Purchaser shall file the notification report, and all
other documents to be filed in connection therewith, required by the HSR Act and the
notification rules promulgated thereunder with the United States Federal Trade
Commission and the United States Department of Justice, as well as any other filings
required under the Antitrust Laws of any other jurisdiction, as soon as practicable
following the date hereof, but in any event within two Business Days following the date
hereof with respect to filings required under the HSR Act (the date on which such filing
is made, the “Original Filing Date”) and ten Business Days for any filings
required under any other Antitrust Law. Purchaser shall pay directly to the applicable
Government Antitrust Entity the applicable filing fee required in connection with any
HSR notification or other antitrust filing required in connection with this Agreement.
The Companies and Purchaser shall respond promptly to any request for information that
may be issued by any Government Antitrust Entity. Subject to the terms and conditions
herein, Purchaser and the Companies shall use commercially reasonable efforts to cause
the waiting periods under the HSR Act and the Antitrust Laws of any other jurisdiction,
as applicable, to terminate or expire at the earliest possible date after the Original
Filing Date (it being understood that this provision is not intended to require any
party to seek early termination of the HSR Act waiting period or any other applicable
waiting period). For purposes of this Agreement, “Antitrust Laws” shall mean
the HSR Act and any other federal, state or foreign statutes, rules, regulations, orders
or decrees that are designed to prohibit, restrict or regulate actions having the
purpose or effect of monopolization or restraint of trade. Without limiting the
generality of the undertakings of the Companies pursuant to this Section 8.5(b),
the Companies shall, in each case with the consent of Purchaser:

     (i) use their commercially reasonable efforts to prevent the entry in a
Proceeding brought under any Antitrust Law by a Governmental or Regulatory Authority
with jurisdiction over the enforcement of any applicable Antitrust Laws
(“Government Antitrust Entity”) or any other party of any permanent or
preliminary injunction or other order that would make consummation the transactions
contemplated by this Agreement in accordance with the terms of this Agreement
unlawful or that would prevent or delay such consummation; provided that, Purchaser
and its counsel shall be responsible for all discussions with any Government
Antitrust Entity (after consultation with the Companies and their counsel) to the
maximum extent permitted by Law and except as required by any Government Antitrust
Entity; and

     (ii) take promptly, in the event that such an injunction or order has been
issued in such a Proceeding, any and all steps, including the appeal thereof or the
posting of a bond, necessary to vacate, modify or suspend such injunction or order
so as to permit such consummation on a schedule as close as possible to that
contemplated by this Agreement.

     (c) Subject to applicable Laws and subject to all applicable privileges,
including the attorney-client privilege, Purchaser and the Companies will consult and
cooperate with one another in connection with any analyses, appearances, presentations,
memoranda, briefs, arguments, opinions and proposals made or

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submitted by or on behalf of any party hereto relating to proceedings under the HSR
Act or any other Antitrust Law, and shall promptly inform the other of any oral
communication with, and provide copies of written communications with, any Governmental
Antitrust Entity regarding any such filings or this transaction.

ARTICLE 9

SELLERS’ REPRESENTATIVE

     9.1 Authorization of the Sellers’ Representative. Sellers hereby appoint,
authorize and empower Altus Capital Partners, Inc. (and each successor appointed in accordance with
Section 9.5 hereof) to act as the representative, for the benefit of Sellers (the
“Sellers’ Representative”), in connection with and to facilitate the consummation of the
Contemplated Transactions, and in connection with the performance of the various actions required
or permitted to be performed on behalf of Sellers under this Agreement and the Escrow Agreement,
for the purposes and with the powers and exclusive authority hereinafter set forth in this
Article 9 and in the Escrow Agreement, which shall include the sole and exclusive power and
authority:

     (a) To execute and deliver the Escrow Agreement in substantially the forms
attached to this Agreement (with such modifications or changes therein as to which the
Sellers’ Representative, in its sole discretion, shall have consented) and to agree to
such amendments or modifications thereto as the Sellers’ Representative, in its sole
discretion, determines to be desirable, provided that Sellers’ Representative will not
exercise its discretion to its sole advantage in a manner that is otherwise solely to
the detriment of the other Sellers;

     (b) To execute and deliver such amendments, waivers and consents in connection
with this Agreement and the Escrow Agreement, and the consummation of the transactions
contemplated hereunder and thereunder as the Sellers’ Representative, in its sole
discretion, may deem necessary or desirable (provided, however, that any such amendment,
waiver or consent the effect of which is to treat any Seller(s) differently than the
other Sellers shall require such Seller(s) prior written consent, provided further, that
in no event will any indemnity obligation of a Seller hereunder be increased without the
written consent of such Seller nor will the Sellers’ Representative exercise its sole
discretion to its sole advantage in a manner that is otherwise solely to the detriment
of the other Sellers;

     (c) To collect and receive all moneys payable to Sellers pursuant to the terms
of this Agreement and the Escrow Agreement, including, without limitation, the Closing
Payment, and the Indemnification Escrow Deposit in the Indemnification Escrow Account,
the Working Capital Escrow Deposit in the Working Capital Escrow Account and any Closing
Date Tax Benefits in the Tax Refund Account (collectively, the “Escrow
Accounts”) and, subject to this Agreement and the Escrow Agreement and subject to
the withholding and retention provisions hereinafter set

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forth in this Article 9, to disburse and pay the same to each Seller to the
extent of and in accordance with their respective Percentage Interests;

     (d) As the Sellers’ Representative, to enforce and protect the rights and
interests of Sellers and to enforce and protect the rights and interests of the Sellers’
Representative arising out of or under or in any manner relating to this Agreement and
the Escrow Agreement, and each other agreement, document, instrument or certificate
referred to herein or therein or the transactions provided for herein or therein
(including, without limitation, in connection with any and all claims for
indemnification brought by any indemnifying party under Article 6 hereof) and,
in connection therewith, to (i) assert any claim or institute any action, proceeding or
investigation in the name of the Sellers’ Representative or, if the Sellers’
Representative so elects, in the names of one or more of Sellers; (ii) investigate,
defend, contest or litigate any claim, action, proceeding or investigation against the
Sellers’ Representative and/or any of the Sellers, and receive process on behalf of any
or all Sellers in any such claim, action, proceeding or investigation and compromise or
settle on such terms as the Sellers’ Representative shall determine to be appropriate,
and give receipts, releases and discharges with respect to, any such claim, action,
proceeding or investigation; (iii) file any proofs of debt, claims and petitions as the
Sellers’ Representative may deem advisable or necessary; (iv) to settle or compromise
any claims asserted under this Agreement or the Escrow Agreement and (v) file and
prosecute appeals from any decision, judgment or award rendered in any such action,
proceeding or investigation in the name of the Sellers’ Representative or, if the
Sellers’ Representative so elects, in the names of one or more of the Sellers, it being
understood that the Sellers’ Representative shall not have any obligation to take any
such actions, and shall not have any liability for any failure to take any such actions;

     (e) To enforce payment of the Closing Payment and amounts due to Sellers from
the Escrow Accounts and any other amounts payable to Sellers, in each case on behalf of
Sellers and each of them to the extent of each of their respective Percentage Interests
therein, in the name of the Sellers’ Representative or, if the Sellers’ Representative
so elects, in the names of one or more of the Sellers;

     (f) To cause to be paid out of the Indemnification Escrow Account in accordance
with the terms of the Escrow Agreement the full amount of any judgment or judgments and
legal interest and costs awarded in favor of any Indemnified Party arising out of the
indemnification provisions set forth in Article 6 hereof, or any amounts payable
to any such Indemnified Party in respect of any compromise or settlement of any claim
for indemnification under such Article 6 agreed to by the Sellers’
Representative in its sole discretion;

     (g) To refrain from enforcing any right of Sellers or any of them and/or of the
Sellers’ Representative arising out of or under or in any manner relating to this
Agreement, the Escrow Agreement or any other agreement, instrument or document in
connection with the foregoing; provided, however, that no such failure
to act on the part of the Sellers’ Representative, shall be deemed a waiver of any such
right or

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interest by the Sellers’ Representative unless such waiver is in a writing signed
by the Sellers’ Representative; and

     (h) To make, execute, acknowledge and deliver all such other agreements,
guarantees, orders, receipts, endorsements, notices, requests, instructions,
certificates, stock powers, letters and other writings, and, in general, to do any and
all things and to take any and all action that that Sellers’ Representative, in its sole
and absolute discretion, may consider necessary or proper or convenient in connection
with or to carry out the transactions contemplated by this Agreement and the Escrow
Agreement and all other agreements, documents or instruments referred to herein or
therein or executed in connection herewith or therewith; provided that Sellers’
Representatives will not exercise its sole and absolute discretion to its sole advantage
in a manner that is otherwise solely to the detriment of the other Sellers.

     The grant of authority provided for in this Section 9.1: (i) is coupled with an
interest and shall be irrevocable and survive the death, incompetency, bankruptcy or liquidation of
any Seller; (ii) subject to the provisions of Section 9.5 below, may be exercised by the
Sellers’ Representative either by signing separately as Sellers’ Representative of each of Sellers
or, after listing all of the Sellers executing an instrument, by the signature of the Sellers’
Representative acting in such capacity for all of them; and (iii) shall survive the delivery of an
assignment by a Seller of the whole or any fraction of its interest hereunder, including his, her
or its Percentage Interest. Purchaser shall have the right to rely upon all actions taken or
omitted to be taken by the Sellers’ Representative pursuant to this Agreement and the Escrow
Agreement, all of which actions or omissions shall be legally binding upon the Sellers. Following
receipt of written notice by Sellers Representative, it will provide Sellers with notice of any
material claim, investigation or proceeding against Sellers.

     9.2 Payments of Expenses; Holdbacks.

     (a) The Sellers’ Representative shall withhold and retain from the Closing
Payment, and shall have the right to withhold and retain from the funds distributed by
the Escrow Agent to the Sellers’ Representative from the Escrow Accounts, ratably in
accordance with each Seller’s Percentage Interest, Two Hundred Fifty Thousand Dollars
($250,000.00) to pay all known expenses which are required to be paid or borne by
Sellers pursuant to this Agreement and the Escrow Agreement and shall pay all such
expenses out of the amount or amounts so withheld. The Sellers’ Representative shall
provide to Sellers a breakdown of the expenses for which Sellers are responsible as such
expenses are withheld and retained from the Closing Payment. In the event that the
amounts so withheld are insufficient to pay all expenses required to be paid or borne by
Sellers or incurred for the benefit of Sellers, each Seller, upon written notification
from the Sellers’ Representative of any such deficiency, shall promptly deliver to the
Sellers’ Representative full payment of its, his or her ratable share of the amount of
such deficiency in accordance with such Seller’s Percentage Interest or the Sellers’
Representative, at its election, may deduct from the Expense Account all amounts
required to compensate the Sellers’ Representative for such deficiency. Within ninety
(90) days after the second (2nd) anniversary of the date on which the funds
in the Escrow Accounts have been disbursed in full, the Sellers’

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Representative shall disburse to each Seller its, his or her ratable share of the
amounts withheld pursuant to this Section 9.2(a), less any amounts expended or
committed to be expended and less the amount of any pending disputes or claims.

     (b) In connection with the performance of its obligations hereunder, the
Sellers’ Representative shall have the right at any time and from time to time to select
and engage, at the cost and expense of Sellers in accordance with their Percentage
Interests (to the extent hereinafter set forth), attorneys, accountants, investment
bankers, advisors, consultants (including, without limitation, consultants specializing
in environmental liability and similar matters), and clerical personnel and obtain such
other professional and expert assistance, and maintain such records, as the Sellers’
Representative may deem necessary or desirable and incur other out-of-pocket expenses.
In furtherance of the foregoing and to enable the Sellers’ Representative to pay all
costs and expenses payable pursuant to this Agreement, the Sellers’ Representative shall
be authorized to withhold amounts received for the account of Sellers (including,
without limitation, amounts otherwise distributable to Sellers from the Closing Payment
and the Escrow Accounts).

     9.3 Percentage Interests, Disbursements.

     (a) All payments to Sellers out of the Purchase Price, the Escrow Accounts and
by the Sellers’ Representative hereunder, and all deductions or other setoffs from such
payments or other proceeds, shall be allocated among Sellers in accordance with their
respective Percentage Interests, which Percentage Interest with respect to each Seller
shall at any given time be a percentage equal to (i) a fraction, the numerator of which
shall be the aggregate amount of the Purchase Price to which such Seller or Option
Holder is entitled under this Agreement at such time and the denominator of which shall
be the aggregate amount of the Purchase Price payable to all Sellers and Option Holders
hereunder at such time, multiplied by (ii) 100 (the “Percentage Interest”).

     (b) The Purchase Price and the Escrow Accounts shall be distributed by the
Sellers’ Representative in accordance with this Agreement to each Seller in accordance
with its Percentage Interest (calculated as provided in Section 9.3(a) above),
subject, however, to the right of the Sellers’ Representative to deduct and withhold
amounts as contemplated by the provisions of this Article 9.

     9.4 Compensation; Exculpation; Indemnity; Security. 

     (a) The Sellers’ Representative shall not be entitled to any fee, commission or
other compensation for the performance of its services hereunder, but shall be entitled
to the payment of all its out-of-pocket expenses incurred as the Representative, and in
furtherance of the foregoing, may pay or cause to be paid or reimburse itself for the
payment of any and all such out-of-pocket expenses, or may draw advances in respect of
anticipated out-of-pocket expenses, from the Purchase Price and funds properly disbursed
to the Sellers’ Representative from the Escrow Accounts in accordance with the terms of
this Agreement and the Escrow Agreement.

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The Sellers’ Representative shall provide to Sellers a breakdown of such
out-of-pocket expenses.

     (b) In dealing with this Agreement, the Escrow Agreement and any instruments,
agreements or documents relating thereto, and in exercising or failing to exercise all
or any of the powers conferred upon the Sellers’ Representative hereunder, (i) the
Sellers’ Representative assumes and shall incur no responsibility whatsoever to any
Seller by reason of any error in judgment or other act or omission performed or omitted
hereunder or in connection with the Escrow Agreement or any such other agreement,
instrument or document, excepting only responsibility for any act or failure to act
which represents willful misconduct, and (ii) the Sellers’ Representative shall be
entitled to rely on the advice of counsel, public accountants or other independent
experts experienced in the matter at issue, and any error in judgment or other action or
omission of the Sellers’ Representative pursuant to such advice shall in no event
subject the Representative to liability to any Seller.

     (c) Each Seller, severally, shall indemnify the Sellers’ Representative against
all damages, liabilities, claims, obligations, costs and expenses, including reasonable
attorneys’, accountants’ and other experts’ fees and the amount of any judgment against
the Sellers’ Representative, of any nature whatsoever, arising out of or in connection
with any claim, investigation, challenge, action or proceeding or in connection with any
appeal thereof, relating to the acts or omissions of the Sellers’ Representative
hereunder, or under the Escrow Agreement or otherwise; provided,
however, that the aggregate amount which any Seller may be liable to indemnify
the Sellers’ Representative under this Section 9.4(c) shall not exceed the
aggregate Purchase Price paid or payable to such Seller hereunder, and the Sellers’
Representative shall be entitled to withhold and retain from amounts otherwise payable
to such Seller hereunder any amount required to satisfy such Seller’s indemnification
obligations hereunder. The foregoing indemnification shall not be deemed exclusive of
any other right to which the Sellers’ Representative may be entitled apart from the
provisions hereof. The foregoing indemnification shall not apply in the event of any
action or proceeding which finally adjudicates the liability of the Sellers’
Representative hereunder for its willful misconduct. In the event of any
indemnification under this Section, the Sellers’ Representative shall notify Sellers as
to the payment of any such indemnification amount, and each Seller shall promptly
deliver to the Sellers’ Representative full payment of his or her ratable share of the
amount of such deficiency, in accordance with such Percentage Interest.

     (d) All of the indemnities, immunities and powers granted to the Sellers’
Representative under this Agreement shall survive the Closing and/or any termination of
this Agreement and/or the Escrow Agreement.

74

 

     9.5 Successor Representative; Termination of Representative.

     (a) In the event the Sellers’ Representative becomes unwilling to continue in
its capacity hereunder, the Sellers’ Representative may resign at any time and be
discharged from its duties or obligations hereunder by giving a written resignation to
Purchaser and Sellers, specifying the date when such resignation shall take effect;
provided, however, that Sellers’ Representative will give not less than
thirty (30) days prior written notice of such resignation. In the event of such
resignation, Sellers shall elect a replacement Sellers’ Representative to serve as such
hereunder, with each Seller having that number of votes equal to the number of Purchased
Shares set forth opposite his, her or its name on Section 5.1(a)(iii) of the
Disclosure Schedules.

     (b) Upon the later of: (i) the date on which all of the funds in the Escrow
Accounts are distributed to Sellers or Purchaser, as applicable, in accordance with the
terms hereof and of the Escrow Agreement; and (ii) the date on which all of Sellers’
indemnification obligations under Article 6 shall have expired in accordance
with such Section, the Sellers’ Representative shall be entitled to resign at any time
upon giving written notice to Purchaser and Sellers not less than ten (10) Business Days
prior to such resignation, and upon the effectiveness of such resignation, the
provisions of this Article 9, and the corresponding rights and obligations of
the Sellers’ Representative under this Agreement, shall expire automatically;
provided, however, that such resignation shall not have the effect of
releasing the Sellers’ Representative from any obligation under this Agreement existing
as of the date of such resignation.

     9.6 No Third Party Rights. Notwithstanding anything contained in this Agreement
or elsewhere to the contrary, no Person or Persons other than the Sellers’ Representative (and its
successors) shall (i) be entitled to exercise any of the rights or powers of the Sellers’
Representative hereunder or under the Escrow Agreement, (ii) have any right to make a call or
demand upon any of the Sellers (including the Sellers’ Representative) to contribute any amounts to
cover expenses or otherwise, or (iii) as a result of the provisions of this Article 9 have
any claims or rights against any of the Sellers (including the Sellers’ Representative) other than
any claims or rights that would exist in any event absent the provisions of this Article 9.

     9.7 No Liability of Purchaser. The Purchaser, the Companies, and the Escrow Agent
shall not have any liability to any Seller in connection with any action taken by, or omission of,
the Sellers’ Representative pursuant to the terms of this Agreement and the Escrow Agreement
(including, without limitation, any failure of the Sellers’ Representative to disburse any funds to
the Sellers or any expenses incurred by the Sellers’ Representative by or on behalf of Sellers).

ARTICLE 10

CONDITIONS TO CLOSING

     10.1 Conditions to Purchaser’s Obligation to Close. The obligations of Purchaser
to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction,

75

 

on or prior to the Closing Date, of each of the following conditions, any of which may be
waived by Purchaser in writing:

     (a) Representations, Warranties and Covenants. The representations and
warranties made by the Companies and the Sellers in this Agreement and qualified as to
materiality shall be true and correct, and those not so qualified shall be true and
correct in all material respects, in each case, on the Closing Date with the same force
and effect as if this Agreement had been executed on and as of the Closing Date. The
Companies and Sellers shall have duly performed all of the agreements and covenants and
satisfied all of the conditions to be performed or complied with by them on or prior to
the Closing Date (including agreements of Sellers to cause the Companies to take or
refrain from taking certain actions).

     (b) Documents. Sellers shall have delivered to Purchaser all of the
documents and agreements set forth in Section 4.3(a).

     (c) No Proceedings. Since the date of this Agreement, no Proceeding
shall have been commenced or threatened against Purchaser, or against any Representative
of Purchaser (a) involving any challenge to, or seeking Damages or other relief in
connection with, the transactions contemplated by this Agreement; or (b) that may have
the effect of preventing, delaying, making illegal, imposing limitations or conditions
on or otherwise interfering with the transactions contemplated by this Agreement. In
addition, no Proceeding shall have been commenced against or threatened against any of
the Companies, which Proceeding, if successfully prosecuted against any of the
Companies, would have a Business Material Adverse Effect.

     (d) No Business Material Adverse Effect. No event that has had, or
could reasonably be expected to have a Business Material Adverse effect shall have
occurred since the date hereof.

     (e) Seller shall have delivered to Purchaser the Consents, to the extent
required by Material Contracts.

     10.2 Conditions to Sellers’ Obligation to Close. The obligations of Sellers to
consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, on
or prior to the Closing Date, of each of the following conditions, any of which may be waived by
Sellers in writing:

     (a) Representations, Warranties and Covenants. The representations and
warranties made by Purchaser in this Agreement and qualified as to materiality shall be
true and correct, and those not so qualified shall be true and correct in all material
respects, on the Closing Date with the same force and effect as if this Agreement had
been executed on and as of the Closing Date. Purchaser shall have duly performed all of
the agreements and covenants and satisfied all of the conditions to be performed or
complied with Purchaser on or prior to the Closing Date.

76

 

     (b) Deliveries. Purchaser shall have delivered to Sellers all of the
documents and agreements set forth in Section 4.3(b).

     10.3 Conditions to Obligations of Each Party to Close. The respective obligations
of each party to this Agreement to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction, on or prior to the Closing Date, of each of the following
condition(s), any of which may be waived by Purchaser or Sellers, as applicable, in writing:

     (a) No Legal Impediments to Closing. There shall not be in effect any
Order issued by any Governmental or Regulatory Authority preventing the consummation of
the transactions contemplated by this Agreement, seeking any Damages as a result of the
transactions contemplated by this Agreement, or otherwise affecting the right or ability
of Purchaser to own, operate or control the Business, nor shall any Proceeding be
pending that seeks any of the foregoing. There shall not be any Law prohibiting Sellers
from selling or Purchaser from owning, operating or controlling the Business or that
makes this Agreement or the consummation of the transactions contemplated by this
Agreement illegal.

     (b) HSR Act. The waiting periods (and any extensions thereof) under
the HSR Act and any other filings required under any other applicable Antitrust Law
shall have expired or been terminated and all filings required to be made prior to the
Closing Date with, and all consents, approvals, permits and authorizations required to
be obtained prior to the Closing Date from any Governmental or Regulatory Authority in
connection with the execution and delivery of this Agreement and the consummation of the
transactions contemplated by this Agreement will have been made or obtained (as the case
may be).

ARTICLE 11

TERMINATION

     11.1 Circumstances for Termination. At any time prior to the Closing, this
Agreement may be terminated by written notice explaining the reason for such termination (without
prejudice to other remedies which may be available to the parties under this Agreement, at law or
in equity):

     (a) by the mutual written consent of Purchaser and Sellers;

     (b) by either Purchaser or Sellers if (i) the non-terminating party is in
material breach of any material provision of this Agreement and such breach shall not
have been cured within thirty (30) days of receipt by such party of written notice from
the terminating party of such breach; and (ii) the terminating party is not, on the date
of termination, in material breach of any material provision of this Agreement;

     (c) by either Purchaser or Sellers if (i) the Closing has not occurred, for any
reason, on or prior to April 1, 2011 (the “Outside Closing Date”) unless such
Outside Closing Date is delayed by satisfaction of the conditions specified in 10.3(b)

77

 

above; and (ii) the terminating party is not, on the date of termination, in
material breach of any material provision of this Agreement; and

     (d) by either Purchaser or Sellers if (i) satisfaction of a closing condition of
the terminating party in Article 10 is impossible; and (ii) the terminating
party is not, on the date of termination, in material breach of any material provision
of this Agreement.

     11.2 Effect of Termination. If this Agreement is terminated in accordance with
Section 11.1, all obligations of the parties hereunder shall terminate, except for the
obligations set forth in Section 8.2, this Article 11 and Article 12;
provided, however, that nothing herein shall relieve any party from liability for the breach of any
of its representations, warranties, covenants or agreements set forth in this Agreement.

ARTICLE 12

MISCELLANEOUS

     12.1 Governing Law and Jurisdiction. This Agreement will be governed by and be
construed in accordance with the Laws of the State of Illinois, without regard however to the
conflicts of laws principles thereof.

     (a) The parties agree that, subject to the provisions of Article 6, any
Claim relating to this Agreement shall be brought solely in the state and federal courts
of the Delaware and all obligations to personal jurisdiction and venue in any action,
suit or proceeding so commenced are hereby expressly waived by all parties hereto;
provided, however, that, a party may commence any action or proceeding
in a court other than as set forth above solely for the purpose of enforcing an order or
judgment issued by one of such courts. The parties waive personal service of any and
all process on each of them and consent that all such service of process shall be made
by certified mail, postage prepaid and return receipt requested to the party and at the
address set forth in Section 12.2 of this Agreement, and service so made shall
be complete at the time notice is deemed to be given as stated in such section.

     (b) To the extent not prohibited by applicable Law or court rule, each party hereby
waives and agrees not to assert, by way of motion, as a defense or otherwise in any such
proceeding, any Claim (i) that it is not subject to the jurisdiction of the above-named
courts, (ii) that the proceeding is brought in an inconvenient forum, (iii) that it is
immune from any legal process with respect to itself or its property, (iv) that the
venue of the proceeding is improper or (v) that this Agreement or the subject matter
hereof or thereof may not be enforced in or by such courts.

     12.2 Notices. All notices and other communications hereunder will be in writing and
will be deemed to have been duly given when delivered in person, sent by facsimile or e-mail with
confirmation of transmission by the transmitting equipment, or on the next Business Day when sent
by overnight courier or when received or rejected by the addressee when sent by

78

 

registered or certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as will be specified by
like notice):

	 	 	 	 	 	 	 
	 
	 	(1)	 	If to Purchaser to:	 	Gibraltar Industries, Inc.
	 
	 	 	 	 	 	3556 Lake Shore Road
	 
	 	 	 	 	 	P.O. Box 2028
	 
	 	 	 	 	 	Buffalo, NY  14219-0228
	 
	 	 	 	 	 	Attn:  Henning N. Kornbrekke
	 
	 	 	 	 	 	Telecopy:  (716) 826-1589
	 
	 	 	 	 	 	e-mail: hkornbrekke@gibraltar1.com
	 
	 	 	 	 	 	 
	 
	 	 	 	With a copy to:	 	Lippes Mathias Wexler Friedman, LLP
	 
	 	 	 	 	 	665 Main Street, Suite 300
	 
	 	 	 	 	 	Buffalo, NY  14203
	 
	 	 	 	 	 	Attn:  Paul J. Schulz, Esq.
	 
	 	 	 	 	 	Telecopy: (716) 853-5199
	 
	 	 	 	 	 	e-mail: pschulz@lippes.com
	 
	 	 	 	 	 	 
	 
	 	(2)	 	If to Sellers to:	 	c/o Altus Capital Partners, Inc.
	 
	 	 	 	 	 	10 Wright Street, Suite 110
	 
	 	 	 	 	 	Westport, CT 06880
	 
	 	 	 	 	 	Attention:  Russell Greenberg
	 
	 	 	 	 	 	Telecopy:  (203) 429-2010
	 
	 	 	 	 	 	E-mail:  rgreenberg@altuscapitalpartners.com
	 
	 	 	 	 	 	 
	 
	 	 	 	With a copy to:	 	Wildman, Harrold, Allen & Dixon LLP
	 
	 	 	 	 	 	225 West Wacker Drive, Suite 2800
	 
	 	 	 	 	 	Chicago, Illinois 60606
	 
	 	 	 	 	 	Attention: Alan Roth
	 
	 	 	 	 	 	Telecopy: (312) 416-4709
	 
	 	 	 	 	 	E-mail:  roth@wildman.com

     12.3 Amendments.

          (a) This Agreement may be amended, superseded, canceled, renewed, or extended, and
the terms hereof may be waived, only by a written instrument signed by the parties
hereto or, in the case of a waiver, by the party against whom the waiver is to be
effective. Neither the failure nor any delay by any party in exercising any right,
power or privilege under this Agreement will operate as a waiver of such right, power or
privilege, and no single or partial exercise of any such right, power or privilege will
preclude any other or further exercise of such right, power or privilege

79

 

or the exercise of any other right, power or privilege. To the maximum extent
permitted by applicable Law (i) no Claim or right arising out of this Agreement can be
discharged by one party, in whole or in part, by a waiver or renunciation of the Claim
or right unless in writing signed by the other party, (ii) no waiver that may be given
by a party will be applicable except in the specific instance for which it is given, and
(iii) no notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or demand to
take further action without notice or demand as provided in this Agreement.

          (b) A failure or omission of any party to insist, in any instance, upon strict
performance by another party of any term or provision of this Agreement or to exercise
any of its rights hereunder will not be deemed a modification of any term or provision
hereof or a waiver or relinquishment of the future performance of any such term or
provision by such party, nor will such failure or omission constitute a waiver of the
right of such party to insist upon future performance by another party of any such term
or provision or any other term or provision of this Agreement.

     12.4 Entire Agreement. This Agreement, together with the Disclosure Schedules, all
Exhibits and Schedules hereto and the documents, agreements, certificates and instruments referred
to herein and therein, constitutes the entire agreement between the parties hereto and with respect
to the subject matter hereof and supersedes all prior representations, warranties, agreements, and
understandings, oral or written, with respect to such matters and other than any written agreement
of the parties that expressly provides that it is not superseded by this Agreement. In the event
of any conflict between the Disclosure Schedules, all Exhibits and Schedules hereto and the
documents, agreements, certificates and instruments referred to herein and therein, the Ancillary
Agreements and this Agreement, the provisions of this Agreement shall control.

     12.5 Headings; Interpretation. The headings in this Agreement are intended solely for
convenience of reference and will be given no effect in the construction or interpretation of this
Agreement. Unless the context otherwise requires, the singular includes the plural, and the plural
includes the singular.

     12.6 No Assignment; Binding Effect. This Agreement is not assignable by any party
without the prior written consent of the other party. Notwithstanding the foregoing, (a) either
party may assign this Agreement in whole or in part to any of its Affiliates (b) either party may
assign this Agreement to its lenders and (c) either party may assign this Agreement to any party
acquiring all or substantially all of the assets of the assigning party; provided that, in no event
will any such an assignment release the assigning party from its obligations hereunder. This
Agreement will be binding upon and will inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

     12.7 Invalidity. In the event that any provision of this Agreement is declared to be
void or unenforceable, the remainder of this Agreement will not be affected thereby and will remain
in full force and effect to the extent feasible in the absence of the void and unenforceable
declaration. The parties furthermore agree to execute and deliver such amendatory contractual

80

 

provisions to accomplish lawfully as nearly as possible the goals and purposes of the
provision so held to be void or unenforceable.

     12.8 Counterparts. This Agreement may be executed in multiple counterparts, each of
which will be deemed an original but all of which together will constitute one and the same
instrument.

     12.9 Incorporation by Reference. The Disclosure Schedules and other Schedules and
Exhibits and the documents referenced therein constitute integral parts of this Agreement and are
hereby incorporated by reference herein.

     12.10 Disclosure Schedules. The Disclosure Schedules will be arranged in sections
corresponding to the numbered and lettered sections of this Agreement; provided that the statements
in a section of such Disclosure Schedules will be deemed to be disclosed for any sections of this
Agreement or the Disclosure Schedules to the extent that it is reasonably evident from the content
of such disclosure that it is applicable to another section of this Agreement or the Disclosure
Schedules, as applicable. The disclosure by Sellers of any matter in the Disclosure Schedules will
expressly not be deemed to constitute an admission by Sellers or their respective Affiliates or
Representatives, or to otherwise imply, that any such matter is material for the purposes of this
Agreement.

     12.11 Time of the Essence. With regard to all dates and time periods set forth or
referred to in this Agreement, time is of the essence.

     12.12 No Third Party Beneficiaries. Except for Article 6 as provided therein,
the terms and provisions of this Agreement are intended solely for the benefit of the parties
hereto and their respective successors and permitted assigns, and it is not the intention of the
parties hereto to confer third party beneficiary rights upon any other Person.

     12.13 Facsimile or Electronic Signature. Any facsimile or electronically transmitted
signature attached hereto will be deemed to be an original and will have the same force and effect
as an original signature.

     12.14 Expenses. Except as otherwise expressly provided in this Agreement, whether or
not the transactions contemplated hereby are consummated, each party hereto will pay its own costs
and expenses incurred in connection with the negotiation, execution and closing of this Agreement
and the Ancillary Agreements and the transactions contemplated hereby and thereby. Notwithstanding
the foregoing, Purchasers agree to pay all Transfer Taxes, documentary, sales, use, stamp,
registration and other Taxes and conveyance fees, recording charges, escrow fees, title company
fees, and other fees and charges incurred in connection with the transaction contemplated by the
Agreement when due and agrees to file all necessary Tax Returns and other documentation with
respect to such Transfer Taxes.

[Signature Page to Follow]

81

 

     IN WITNESS WHEREOF, the parties, intending legally to be bound, have caused this Agreement to
be duly executed and delivered as of the day and year first herein above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SELLERS:	 	 	 	PURCHASER:	 	 	 	 
	 
	ALTUS CAPITAL PARTNERS SBIC, L.P.	 	 	 	GIBRALTAR INDUSTRIES, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	By:	 	 	 	 	 	 
	Print
Name: 
	 	 	 	Print
Name: 
	 	 	 	 
	Title: 
	 	 	 	Title: 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ALTUS-D.S. BROWN CO-INVESTMENT, LLC	 	 	 	 	 	 	 	 	 	 
	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	Print
Name: 
	 	 	 	 	 	 	 	 	 	 
	Title: 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CENTERFIELD CAPITAL PARTNERS II, L.P.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	Print
Name: 
	 	 	 	 	 	 	 	 	 	 
	Title: 
	 	 	 	 	 	 	 	 	 	 
	 
	RGA REINSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 
	Print
Name: 
	 	 

	 	 
	Title: 
	 	 	 	 

82

 

	 	 	 

	Kirk Feuerbach
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Gerald Wetzel
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Tim Hack
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Mark Kaczinski
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Tom Lewis
	 	 
	 
	 	 
	 

	 	 

83

 

EXHIBIT A

ESCROW AGREEMENT

 

 

DISCLOSURE SCHEDULES

to the

STOCK PURCHASE AGREEMENT

dated as of

March 10, 2011

by and among

THE STOCKHOLDERS OF

D.S.B. Holding Corp.,

a Delaware corporation,

as Sellers

and

GIBRALTAR INDUSTRIES, INC.,

a Delaware corporation,

as Purchaser

     These Disclosure Schedules are being delivered pursuant to the Stock Purchase Agreement, dated
March 10, 2011, by and among the stockholders of D.S.B. Holding Corp., a Delaware corporation
(“Holdings”), and Gibraltar Industries, Inc., a Delaware corporation (“Purchaser”)
(the “Agreement”). D.S.B. Operating Corp. is the former name of The D.S. Brown Company, a
Delaware corporation (“Brown”). Capitalized terms used and not otherwise defined herein
shall have the meanings given such terms in the Agreement.

     Any information set forth in a particular section or subsection of these Disclosure Schedules
shall be deemed to be disclosed in each other section or subsection hereof where such disclosure is
readily apparent on the face of such disclosure (i.e., without reviewing any documentation beyond
the section or subsection itself) that it would qualify or apply to such other section or
subsection. Notwithstanding the foregoing, however, in no event shall the disclosures made in any
of Sections 5.1(c) (Consents; No Conflict), 5.1(e) (Liabilities Not Disclosed in Financial
Statements), 5.1(f) (Legal Proceedings), 5.1(n) (Taxes) or 5.1(g) (Employee Benefits) of these
Disclosure Schedules be deemed qualified or modified by disclosures in any other Sections of the
Disclosure Schedules unless specifically cross-referenced in such Sections. The inclusion of any
matter in these Disclosure Schedules does not constitute a determination by any of the Parties that
such matter is material. The information contained in
these Disclosure Schedules is disclosed solely for purposes of this Agreement and for the
benefit of Purchaser, and no third party is entitled to rely on the disclosures contained herein
for any

1

 

reason, including without limitation as an admission of any liability or obligation by any
party hereto.

     These Disclosure Schedules are qualified in their entirety by reference to the provisions of
the Agreement and are not intended to constitute, and shall not be construed as constituting,
representations or warranties of the Company, except as and to the extent provided in the
Agreement. The headings in these Disclosure Schedules are for convenience of reference only and
shall not be deemed to modify or influence the interpretation of the information contained in these
Disclosure Schedules or the Agreement.

2

 

	 	 	 
	Section 1.1(b)

	 	Letters of Credit
	Section 1.1(c)

	 	Permitted Liens
	Section 1.1(e)

	 	Liens Imposed by Law
	Section 5.1(a)(ii)

	 	Power and Authority
	Section 5.1(a)(iii)

	 	Capitalization
	Section 5.1(a)(v)

	 	Pledged Stock
	Section 5.1(a)(vii)

	 	Subsidiaries
	Section 5.1(c)

	 	Consents; No Conflict
	Section 5.1(d)

	 	Governmental Approvals and Filings
	Section 5.1(e)

	 	Liabilities Not Disclosed in Financial Statements
	Section 5.1(f)

	 	Legal Proceedings
	Section 5.1(g)(i)

	 	Employee Benefit Plans
	Section 5.1(g)(vii)

	 	Acceleration of Vesting
	Section 5.1(h)

	 	Title
	Section 5.1(i)

	 	Intellectual Property
	Section 5.1(k)

	 	Permits
	Section 5.1(l)

	 	Environmental Matters
	Section 5.1(l)(iv)

	 	Hazardous Materials at Real Property
	Section 5.1(n)

	 	Taxes
	Section 5.1(o)

	 	No Material Adverse Change
	Section 5.1(p)

	 	Activities Outside of Ordinary Course of Business
	Section 5.1(q)

	 	Real Property
	Section 5.1(r)

	 	Employee Matters
	Section 5.1(u)

	 	Accounts Receivable
	Section 5.1(v)

	 	Insurance
	Section 5.1(v)(ii)

	 	Insurance Exceptions
	Section 5.1(w)

	 	Warranties; Products Liability Claims
	Section 5.1(y)

	 	Related Party Transactions
	Section 5.1(z)

	 	Powers of Attorney
	Section 5.1(aa)

	 	Systems

3

 

Section 1.1(b)

Letters of Credit

	1.	 	Irrevocable Standby Letter of Credit No. X-2273 for $250,000.00, issued by MB Financial Bank,
N.A. through U.S. Bank National Association on behalf of Brown, in favor of Acstar Insurance
Company, dated December 12, 2008, which will be replaced by Purchaser at Closing.

	2.	 	Irrevocable Standby Letter of Credit No. X-2347 for $850,000.00, issued by MB Financial Bank,
N.A. through U.S. Bank National Association on behalf of Brown, in favor of Acstar Insurance
Company, dated June 12, 2009, which will be replaced by Purchaser at Closing.

4

 

Section 1.1(c)

Permitted Liens

	1.	 	Bailment filing by Duramax Marine LLC on specific tooling, molds, patters, specs, drawings,
etc. for the sole purpose of manufacturing products for Duramax Marine LLC.

	2.	 	Liens set forth in Sections 5.1(q)(5)(c) and (e) of these Disclosure Schedules.

5

 

Section 1.1(e)

Liens Imposed by Law

	1.	 	Clouse Construction Corporation has filed a notice of commencement in connection with the
current building expansion project, which preserves their right to file a mechanic’s lien.

6

 

Section 5.1(a)(ii)

Power and Authority

No disclosure.

7

 

Section 5.1(a)(iii)

Capitalization

	1.	 	Holdings has 100,000 authorized shares of Common Stock, of which 66,749.90 shares are issued
and outstanding.

	2.	 	Holdings has 100,000 authorized shares of Preferred Stock, of which 65,750.10 shares are
issued and outstanding.

8

 

Section 5.1(a)(v)

Pledged Stock

	1.	 	Holdings has pledged all 1,000 of its shares of Brown to MB Financial Bank, N.A. pursuant to
that certain Pledge Agreement dated August 25, 2008 by and between D.S.B. Holding Corp. and MB
Financial Bank, N.A. This pledge will be released at Closing.

9

 

Section 5.1(a)(vii)

Subsidiaries

	1.	 	Brown is a wholly owned subsidiary of Holdings.

	2.	 	Brown China is a wholly owned subsidiary of Brown. Brown China will be spun-off and
subsequently distributed to the stockholders of Holdings. This process will be started prior
to Closing.

10

 

Section 5.1(c)

Consents; No Conflict

	1.	 	Stockholders Agreement by and among Holdings, Altus Capital Partners SBIC, L.P., Altus-D.S.
Brown Co-Investment, LLC, Centerfield Capital Partners II, L.P., RGA Reinsurance Company, Kirk
Feuerbach, Gerald A. Wetzel, Timothy L. Hack, Mark R. Kaczinski and Thomas H. Lewis, dated as
of August 25, 2008. Sellers will provide a termination agreement, in a form acceptable to
Purchaser.
	 
	2.	 	First Lien Loan and Security Agreement by and among Brown, Holdings and MB Financial Bank,
N.A., dated August 26, 2008, which will be terminated as of the Closing Date.
	 
	3.	 	Senior Subordinated Notes and Share Purchase Agreement by and among Centerfield Capital
Partners II, L.P., RGA Reinsurance Company, Holdings and Brown, dated as of August 25, 2008,
which will be terminated as of the Closing Date, and such Notes having been paid in full
pursuant to that certain letter dated June 30, 2010 by and among Centerfield Capital Partners
II, L.P., RGA Reinsurance Company, Holdings and Brown.
	 
	4.	 	Management Rights Agreement by and between Holdings and Centerfield Capital Partners II,
L.P., dated August 25, 2008, which by its terms expires in the event that Centerfield Capital
Partners II, L.P. no longer holds any Common Shares and/or Preferred Shares of Holdings, which
will occur at Closing. Sellers will provide a termination agreement, in a form acceptable to
Purchaser, executed by Holdings and Centerfield Capital Partners II, L.P.
	 
	5.	 	Management Rights Agreement by and between Holdings and RGA Reinsurance Company, dated August
25, 2008, which by its terms expires in the event that RGA Reinsurance Company no longer holds
any Common Shares and/or Preferred Shares of Holdings, which will occur at Closing. Sellers
will provide a termination agreement, in a form acceptable to Purchaser, executed by Holdings
and RGA Reinsurance Company.
	 
	6.	 	Distribution Agreement by and between Chase Corporation and Brown, dated November 17, 2010,
where Brown acts as a distributor of certain products of Chase Corporation.
	 
	7.	 	Management Services Agreement by and between Altus Capital Partners, Inc. and Holdings, dated
as of August 25, 2008. Sellers will provide a termination agreement, in a form acceptable to
Purchaser, executed by Holdings and Altus Capital Partners, Inc.

11

 

Section 5.1(d)

Governmental Approvals and Filings

None.

12

 

Section 5.1(e)

Liabilities Not Disclosed in Financial Statements

	1.	 	Liabilities that arise from litigation described in Section 5.1(f)(2) of these Disclosure
Schedules.
	 
	2.	 	Liabilities that may arise in connection with any draws upon any of the letters of credit set
forth below:

	 	a.	 	Irrevocable Standby Letter of Credit No. X-2273, issued by MB Financial Bank,
N.A. through U.S. Bank National Association on behalf of Brown, in favor of Acstar
Insurance Company, dated December 12, 2008, which will be replaced by the Purchaser at
Closing.
	 
	 	b.	 	Irrevocable Standby Letter of Credit No. X-2347, issued by MB Financial Bank,
N.A. through U.S. Bank National Association on behalf of Brown, in favor of Acstar
Insurance Company, dated June 12, 2009, which will be replaced by the Purchaser at
Closing.

	3.	 	Liabilities that may arise in connection with any claims made under any of the surety bonds
set forth below:

	 	a.	 	Outstanding Performance Bonds with North American Specialty:

	 	i.	 	#2132168, Kiewit Infrastructure West, effective 10/25/10
	 
	 	ii.	 	#2131988, Dragados USA, effective 8/30/10
	 
	 	iii.	 	#2097090, Kiewit Southern Co., effective 5/19/10
	 
	 	iv.	 	#2097062, Manafort Brothers, effective 3/18/10
	 
	 	v.	 	#2132196, Kiewit Infrastructure South Co., effective 12/21/10

	 	b.	 	Outstanding Performance Bonds with Acstar Insurance Company:

	 	i.	 	#F20850, OCCI Engineering Contractors, effective 6/24/09
	 
	 	ii.	 	#16070, Tacoma Narrows Constructors, effective 3/19/08

13

 

Section 5.1(f)

Legal Proceedings

	1.	 	Delmont D. Brown, Individually and as Assignee of the Estate of Galen C. Brown, deceased v.
The D.S. Brown Company, an Ohio Corporation, et al., United States District Court for the
Northern District of Ohio Case No. 3:09CV00361.

	 	a.	 	Settled by the Full Release and Indemnity Agreement by Delmont D. Brown dated
September 21, 2009.

	2.	 	Worker’s Compensation Claim #09-812932 against Brown by David Sherrill in Ohio.

	 	a.	 	Mr. Sherrill was found to have reached Maximum Medical Improvement (MMI) and
Temporary Total Disability (TTD) payments were stopped in October 2010. Mr. Sherrill
may still be eligible for Partial/Permanent Disability. This injury claim was made in
March 2009 and will remain on Brown’s rating experience for 5 years. To date, $6,144
has been paid in medical benefits (last treatment was on Jan. 4, 2011); an open medical
reserve of $15,649 has been placed in the claim; $22,809 has been paid in indemnity
benefits (last paid on Oct. 10, 2010). Brown is in position to file for a Handicap
Reimbursement but is holding off on filing the application in order to secure the full
benefit. Brown has six years from the date of injury to file the application.
	 
	 	b.	 	Mr. Sherrill was known to be working at a local auto repair shop in Bowling
Green while he was collecting Temporary Total Disability payments and, after proof was
obtained, the case was referred to the Ohio Bureau of Worker’s Compensation’s Fraud
Department (“BWC”). BWC has informed Brown that the fraud aspect of this claim is
currently being investigated.

	3.	 	Since the formation of the Companies, there have been a number of Worker’s Compensation
claims against the Companies which are no longer active, the list of which has been previously
provided to Purchaser.

14

 

Section 5.1(g)(i)

Employee Benefit Plans

	1.	 	Health Insurance
	 
	2.	 	Dental Insurance
	 
	3.	 	Flexible Spending Accounts
	 
	4.	 	Group Life Insurance
	 
	5.	 	Accidental Death and Dismemberment
	 
	6.	 	Optional Life Insurance
	 
	7.	 	Short Term Disability Insurance
	 
	8.	 	Long Term Disability Insurance
	 
	9.	 	COBRA Continuation Health Coverage
	 
	10.	 	401k Retirement Savings
	 
	11.	 	Scheduled Time Off
	 
	12.	 	Unscheduled Time Off
	 
	13.	 	Education Assistance
	 
	14.	 	Employee Referral Program
	 
	15.	 	Boot/Shoe Allowance
	 
	16.	 	Protective Eyewear Allowance
	 
	17.	 	Uniform Allowance
	 
	18.	 	Voluntary Benefits AFLAC Plan
	 
	19.	 	Holiday Schedule
	 
	20.	 	Bereavement Leave
	 
	21.	 	Jury Duty Leave
	 
	22.	 	Maternity Leave
	 
	23.	 	Military Leave
	 
	24.	 	Time Off to Vote
	 
	25.	 	Family and Medical Leave
	 
	26.	 	Leave of Absence Policy
	 
	27.	 	2008 Stock Option Plan of D.S.B. Holding Corp.
	 
	28.	 	Service Loyalty Awards, whereby employees receive awards after achieving certain
anniversaries with Brown
	 
	29.	 	Annual Discretionary Bonus Awards

	 	a.	 	FY2011 Engineering Department Bonus Plan
	 
	 	b.	 	FY2011 Operations Management Bonus Plan
	 
	 	c.	 	FY2011 Estimating Incentive Plan
	 
	 	d.	 	FY2011 Executive Incentive Plan
	 
	 	e.	 	FY2011 Sales Incentive Plan

	30.	 	Monthly Incentive Plan

	 	a.	 	North Baltimore Structural Bearings Incentive System
	 
	 	b.	 	North Baltimore Expansion Joint Incentive System
	 
	 	c.	 	North Baltimore Rubber Products Incentive System
	 
	 	d.	 	Mixing Team Based Incentives
	 
	 	e.	 	Rail Machining Team Based Incentives
	 
	 	f.	 	Shipping & Receiving Incentives
	 
	 	g.	 	Maintenance Incentives
	 
	 	h.	 	Installation Incentives

15

 

	31.	 	Employment Agreement by and between Brown and Kirk Feuerbach, dated as of August 25, 2008.
	 
	32.	 	Employment Agreement by and between Brown and Gerald Wetzel, dated as of August 25, 2008.
	 
	33.	 	Employment Agreement by and between Brown and Timothy L. Hack, dated as of August 25, 2008.
	 
	34.	 	Employment Agreement by and between Brown and Mark R. Kaczinski, dated as of August 25, 2008.
	 
	35.	 	Employment Agreement by and between Brown and Tom H. Lewis, dated as of August 25, 2008.
	 
	36.	 	Employment Offer by and between Brown and John Bettin, dated January 26, 2010.
	 
	37.	 	Non-Competition Agreement by and between Brown and John Bettin, dated January 26, 2010.
	 
	38.	 	Technical Services Agreement by and between Bill Kudrenski and Brown, dated November 12,
2010.
	 
	39.	 	Agreement by and between Bruce Holiday and Brown, effective as of December 1, 2004 (note
that there is no signed agreement and Bruce Holiday has not entered into a Non-Competition
Agreement with Brown).
	 
	40.	 	Employment Offer by and between Eugene Yu and Brown, dated November 1, 2009, and the
Non-Competition Agreement associated therewith.
	 
	41.	 	Sales Representative Agreement by and between Ripoll Consulting De Ingenieria S.L. and Brown,
dated April 24, 2008, as amended by the First Amendment to Sales Representative Agreement
dated April 7, 2010.
	 
	42.	 	Independent Sales Representative Agreement by and between Brown and Harry Funk, dated October
28, 2003.
	 
	43.	 	Independent Sales Representative Agreement by and between Brown and Nancy R. Ruiz, dated July
31, 2006.
	 
	44.	 	Independent Sales Representative Agreement by and between Brown and MRC Group, dated March
27, 2008.
	 
	45.	 	Independent Sales Representative Agreement by and between Brown and Charles Thrasher, dated
September 29, 2003.

16

 

Section 5.1(g)(vii)

Acceleration of Vesting

	1.	 	Pursuant to Option Agreements by and between Holdings and the individuals set forth below,
the consummation of the transactions contemplated by the Agreement will cause the Options to
vest in full for those employed by Holdings within ninety days prior to a change in control.

	 	a.	 	Kirk Feuerbach
	 
	 	b.	 	Jerry Wetzel
	 
	 	c.	 	Tim Hack
	 
	 	d.	 	Mark Kaczinski
	 
	 	e.	 	Tom Lewis
	 
	 	f.	 	David Arps
	 
	 	g.	 	Steve Toy
	 
	 	h.	 	Bob Rose
	 
	 	i.	 	Eric Devine
	 
	 	j.	 	Steve Mathey
	 
	 	k.	 	Gary Dible
	 
	 	l.	 	Joe Miller
	 
	 	m.	 	Ben Jacobus
	 
	 	n.	 	Dwayne Shafer
	 
	 	o.	 	 Bob Nitkiewicz

	2.	 	Bonuses totaling $250,000 will be paid by the Sellers to various middle managers in
recognition of their contributions and assistance in connection with transaction contemplated
by the Agreement.
	 
	3.	 	Certain option holders will receive a gross up in the form of a bonus which will be paid by
the Sellers to cover the tax differential between ordinary income tax rates and capital gain
tax rates.

17

 

Section 5.1(h)

Title

	1.	 	MB Financial Bank, N.A. has a lien on all assets of the Companies, which will be terminated
in connection with the closing of the transactions contemplated by the Agreement.
	 
	2.	 	Leases of:

	 	a.	 	3 Copiers, with payments made to U.S. Bancorp
	 
	 	b.	 	1 Forklift, with payments made to GE Capital
	 
	 	c.	 	1 Forklift, with payments made to NMHG Financial Services, Inc.
	 
	 	d.	 	4 Forklifts, with payments made to Wells Fargo Financial
	 
	 	e.	 	1 Forklift, with payments made to De Lage Landen
	 
	 	f.	 	1 Vehicle, with payments made to Ford Commercial
	 
	 	g.	 	1 Copier, with payments made to GE Capital

	3.	 	Leases of real property described in Section 5.1(q)(4) of these Disclosure Schedules.

18

 

Section 5.1(i)

Intellectual Property

(1) Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issued Patents
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title
	U.S.

	 	 	5,390,386*	 	 	 	02/21/95	 	 	S. Mathey, R. Lanham

B. McMartin,

A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	European

(see below)

	 	 	0722015	 	 	 	07/29/98	 	 	S. Mathey, R. Lanham

B. McMartin, 
A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
(Corresponds To U.S. Patent #
5,390,386)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Mexico

	 	 	197,238	 	 	 	2001	 	 	S. Mathey, R. Lanham

B. McMartin, 
A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
(Corresponds To U.S. Patent
# 5,390,386)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Hong Kong

	 	HK1012034
	 	 	04/28/00	 	 	S. Mathey, R. Lanham

B. McMartin, 
A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
(Corresponds To U.S. Patent
# 5,390,386)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Canada

	 	 	2,140,062	 	 	 	03/02/04	 	 	S. Mathey, R. Lanham

B. McMartin, 
A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
(Corresponds To U.S. Patent
# 5,390,386)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	China

	 	CN1127818

App #:

ZL95100371.2
	 	 	01/27/95	 	 	S. Mathey, R. Lanham

B. McMartin, 
A. Rader,
D. Brown
	 	Suspension Bridge Cable Wrap
and Application Method
(Corresponds To U.S. Patent #
5,390,386)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	U.S.

	 	 	5,509,243*	 	 	 	04/23/96	 	 	Neal H. Bettigole,

Robert A. Bettigole
	 	Exodermic Deck System
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	U.S.

	 	 	5,664,378*	 	 	 	09/09/97	 	 	Robert A. Bettigole,

Neal H. Bettigole
	 	Exodermic Deck System

19

 

	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title
	U.S.

	 	 	7,197,854*	 	 	04/03/07
	 	Robert Bettigole,

Christopher Higgins
	 	Pre-stressed or Post-Tension

Composite Structural System
	 
	 	 	 	 	 	 	 	 	 	 
	Canada

	 	 	2,181,554	 	 	01/20/95
	 	Neal H. Bettigole,

Robert A Bettigole
	 	Exodermic Deck System
(corresponding to US Patent
5,509,243)
	 
	 	 	 	 	 	 	 	 	 	 
	Canada

	 	 	2,239,727	 	 	09/06/05
	 	Neal H. Bettigole,

Robert A. Bettigole
	 	Improved Exodermic Deck
System
(corresponding to US Patent
5,664,378)
	 
	 	 	 	 	 	 	 	 	 	 
	U.S.

	 	 	7,038,159*	 	 	05/02/06
	 	William L. Bong,

Stephen R. Toy,

James R. Connor
	 	System and Method for
Electroslag Welding
an Expansion Joint Rail
	 
	     The European Patent # 0722015 for Suspension Bridge Cable Wrap and Application Method applies
to the following countries: Denmark, France, Germany, Portugal and the United Kingdom. Germany
will be allowed to lapse.
	 
	Pending Patent Applications
	Country	 	 	Patent No.	 	 	Filing Date	 	Inventor(s)	 	Title
	U.S.

	 	 	12/474,495
	 	 	05/29/09
	 	Jesse S. Mathey
	 	For and Method of Installing
Elongate Strip Seals
	 
	 	 	 	 	 	 	 	 	 	 
	U.S.

	 	 	12/831,812
	 	 	07/07/10
	 	Jesse S. Mathey

Stephen G. Mathey
	 	Cylindrical Heat Application

Apparatus

20

 

(2) Trademarks

	 	 	 	 	 	 	 	 	 
	Registered Trademarks
	Country	 	Trademark	 	Reg. No.	 	Reg. Date
	U.S.

	 	Delcrete*
	 	 	1,518,915	 	 	01/03/89
	 
	 	 	 	 	 	 	 	 
	Mexico

	 	Delcrete
	 	 	440,290	 	 	08/23/93
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	Steelflex*
	 	 	2,062,964	 	 	05/20/97
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	Delastic*
	 	 	2,104,782	 	 	10/14/97
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	Exodermic*
	 	 	2,747,531	 	 	08/05/03
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	Exodermic*
	 	 	2,879,486	 	 	08/31/04
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	Delastic-LS
	 	 	3,816,291	 	 	07/13/10

	 	 	 	 	 	 	 
	Pending Trademark Applications
	Country	 	Trademark	 	Serial No.	 	Filing Date
	U.S.

	 	TransPatch*
	 	77/581,316
	 	09/29/08
	 
	 	 	 	 	 	 
	U.S.

	 	Matrix Premix
	 	77/696,995
	 	03/23/09

	 	 	 	 	 
	Unregistered Trade Names
	Cableguard

	 	DelPatch
	 	 
	 
	 	 	 	 
	Delastibond

	 	Pavesaver	 	 
	 
	 	 	 	 
	Delastiflex

	 	SealTek	 	 
	 
	 	 	 	 
	Delastilube

	 	Versiflex	 	 
	 
	 	 	 	 
	Delastiseal
	 	 	 	 

 

			
	*	 	Prior to Closing, Sellers will update the filings with the U.S. Patent and Trademark Office to
reflect the assignment to and ownership by The D.S. Brown Company.

21

 

(3) Copyrights

     None.

(4) Domain Names

	 	1.	 	dsbrown.com
	 
	 	2.	 	dsbrownerpd.com
	 
	 	3.	 	dsbrownmarketing.com
	 
	 	4.	 	bgfma.org
	 
	 	5.	 	sealnoseal.org

(5) Software

     The Companies do not develop or use their own software over which they have intellectual
property rights. The Companies do, however, use certain “off-the-shelf” software, such licenses
having been previously provided to Purchaser.

     MB Financial Bank has a security interest in certain Intellectual Property, which will be
released at Closing.

(i) Lapsed Intellectual Property

     The Companies allowed Patent No. 0722015, Suspension Bridge Cable Wrap and Application Method,
to lapse in Germany. To the Knowledge of the Companies, Patent No. 0722015 remains in full force
and effect in all other countries where it was registered.

     The below patent was applied for but has since been abandoned.

	 	 	 	 	 	 	 	 	 	 	 
	Abandoned Patent Applications
	Country	 	Serial No.	 	Filing Date	 	Inventor(s)	 	Title
	U.S.

	 	 	5,390,386	 	 	09/26/08
	 	Eric Devine,

Thomas H. Lewis,

Benjamin Jacobus,

Jesse Mathey
	 	Pavement Seal, Installation
Machine and

Method of Installation

(ii) Claims Relating to Intellectual Property

     None.

(iii) Licensed Intellectual Property

Patent Licenses

22

 

	 	 	 	 	 	 	 	 	 
	Country or	 	 	 	 	 	Effective	 	 
	Territory	 	Licensor	 	Licensee	 	Date	 	Subject Matter
	U.S. and
Canada

	 	Friedrich Maurer
Sohne GmbH &
Co.
	 	D.S. Brown
Company
	 	02/10/84
	 	Maurer-Swivel Joints
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	The D. S. Brown
Company
	 	L.B. Foster
Company
	 	06/13/06
	 	Exodermic Bridge Decking
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	The D. S. Brown
Company
	 	Interlocking

Deck

Systems

International
	 	06/13/06
	 	Exodermic Bridge Decking
	 
	 	 	 	 	 	 	 	 
	U.S.

	 	The D. S. Brown
Company
	 	Bailey

Bridge
	 	06/13/06
	 	Exodermic Bridge Decking
	 
	Trademark Licenses
	 
	Country or	 	 	 	 	 	Effective	 	Product /
	Territory	 	Licensor	 	Licensee	 	Date	 	Marks
	Worldwide

	 	Crafco, Inc.
	 	The D. S. Brown
Company
	 	02/21/05
	 	Asphaltic Expansion
Joints — Matrix 502
	 
	 	 	 	 	 	 	 	 
	U.S.A. &
Canada

	 	The D.S. Brown
Company
	 	L.B. Foster
	 	06/13/06
	 	Exodermic Bridge

Decking
	 
	 	 	 	 	 	 	 	 
	U.S.A. &
Canada

	 	The D.S. Brown
Company
	 	Interlocking Deck
Systems International,
LLC (acquired by L. B.
Foster)
	 	06/13/06
	 	Exodermic Bridge

Decking
	 
	 	 	 	 	 	 	 	 
	U.S.A. &
Canada

	 	The D.S. Brown
Company
	 	Bailey Bridges, Inc.
	 	06/13/06
	 	Exodermic Bridge

Decking

23

 

(iv) Other Intellectual Property

     None.

24

 

Section 5.1(k)

Permits

	1.	 	Environmental Permits

	 	a.	 	Air Pollution Source Premise — Permit No. 0387000118
	 
	 	b.	 	Permits to Install, for the following emission sources:

	 	i.	 	03-13827 Thermal Spray Application
	 
	 	ii.	 	03-13757 Paint Coating Lines (K001-K004)
	 
	 	iii.	 	03-16015 Shim Coating Line

	 	c.	 	NPDES General Permit No. OHR000004 — Facility Permit No. 2GG00162*DG
	 
	 	d.	 	Ohio EPA Hazardous Waste Generator No. OHD987000734 (Small Quantity Generator)

	2.	 	Occupancy Permits

	 	a.	 	Certificate of Occupancy, Wood County Building Inspection dated February 1,
2010, Building Permit No. B09-000609
	 
	 	b.	 	Certificate of Occupancy, Wood County Building Inspection dated June 28, 2010,
Building Permit No. B10-000126
	 
	 	c.	 	Certificate of Occupancy, Wood County Building Inspection dated September 8,
2010, Building Permit No. B09-000133
	 
	 	d.	 	Ordinance No. 03-93 by the Village of North Baltimore, Wood County, Ohio,
relating to the change of zoning of land owned by Brown to general industrial.

	3.	 	Compliance with Applicable Law

	 	a.	 	See Section 5.1(n) of these Disclosure Schedules regarding taxation issues with
respect to Chinese law.

25

 

Section 5.1(l)

Environmental Matters

	1.	 	Transformers containing oil with polychlorinated biphenyls (“PCBs”) were once located on
Brown’s property but were properly removed and disposed of in accordance with all applicable
laws and regulations.
	 
	2.	 	Several residences formerly located on Brown’s property (main site, Beecher Street site and
Gillett Street Site) were demolished and the demolition debris buried on site. Though not
identified or tested, such debris may include materials typical to residences of the ages of
the demolished structure including, but not limited to, asbestos containing materials,
residual fuel oil from heating tanks and lead based paint.
	 
	3.	 	Water wells formerly used for process water were located in the central portion of Brown’s
main building adjacent to the rubber mill. One of these wells showed evidence of naturally
occurring crude oil. The wells have been properly closed in accordance with all applicable
laws and regulations.
	 
	4.	 	Oil wells existed on Brown’s main site both north and south of the main building as well as
at the Gillett Street site and the Beecher Street site. Those wells have been plugged and
abandoned, however, some naturally occurring crude oil may be present at those locations.
	 
	5.	 	As documented in the environmental reports provided in the data room, the following spills
occurred from ASTs located at Brown’s main site:

	 	a.	 	In 1978, five hundred gallons of #2 fuel oil was spilled form an AST.
	 
	 	b.	 	In 1988, approximately 30,000 gallons of #2 fuel oil was spilled from an AST.
	 
	 	c.	 	In 2000, approximately 200 gallons of product (possibly Plastsol) was spilled
in an over-fill of an AST in the chemical room.

	6.	 	During the 1998 Phase II Environmental Site Assessment performed by Tighe & Bond (the “1998
Phase II”), the drum crushing area tested positive for the presence of total petroleum
hydrocarbons (“TPH”) but not in concentrations above the then applicable Ohio EPA action
levels for such materials.
	 
	7.	 	During the 1998 Phase II, the drum storage area tested positive for the presence of volatile
organic compounds (“VOC”) but, with the exception of toluene, the concentration of such
compounds was below the then applicable Ohio EPA action levels for such materials. Toluene
levels in one sample were 22000 μg/kg. The then applicable action level was 9000 μg/kg.
Tighe & Bond, however, indicated that no remediation was necessary.
	 
	8.	 	As disclosed in environmental site assessments made available to Purchaser, there is a
potential for building materials used in the structures at the Owned Real Property to include
asbestos containing materials, given the dates of the structures’ construction. In
particular, as disclosed in the May 2008 Phase I Environmental Site Assessment, transite

26

 

	 	 	board in the boiler room of Brown’s main building identified as asbestos containing
material. The board was removed.

	9.	 	The matters disclosed in Section 5.1(l)(iv) of these Disclosure Schedules are hereby
incorporated by reference.

27

 

Section 5.1(l)(iv)

Hazardous Materials at Real Property

	1.	 	The following above ground storage tanks (“ASTs”) are located in Brown’s main building and
have the following contents:

	 	 	 	 	 
	No.	 	Volume	 	Contents
	2

	 	6,000 gal.
	 	Sundex 790
	1

	 	6,000 gal.
	 	Calsol 875
	1

	 	6,000 gal.
	 	Sunpar
	1

	 	1,000 gal.
	 	Ammonia (Anhydrous)

	2.	 	The following ASTs are located in steel containment north of Garage 2 at Brown’s east
entrance and have the following contents:

	 	 	 	 	 
	No.	 	Volume	 	Contents
	1

	 	500 gal.
	 	Diesel Fuel
	1

	 	500 gal.
	 	Gasoline

	3.	 	The matters disclosed in Section 5.1(l) of these Disclosure Schedules are hereby incorporated
by reference.

28

 

Section 5.1(n)

Taxes

	1.	 	The Companies have filed for extensions of time within which to file their federal and state
tax returns for the year ended October 31, 2010.
	 
	2.	 	In 2010, the California State Board of Equalization conducted a sales tax audit with respect
to the Companies and assessed minimal penalties.
	 
	3.	 	Brown has not filed Form 5471 for the year ended October 31, 2009 with the IRS related to
activities in China.

29

 

Section 5.1(o)

No Material Adverse Change

None.

30

 

Section 5.1(p)

Activities Outside of Ordinary Course of Business

	1.	 	Details of uncompleted or unpaid capital improvement commitments in excess of $100,000 are as
follows:

	 	a.	 	Building Expansion — A purchase order has been issued to Clouse Construction
for $196,000 for an extension to the machine shop. This work has only recently begun
and is expected to be completed in April 2011. Most of this expenditure will occur in
March and April of 2011. This item is listed in the current capital budget for
$160,000.
	 
	 	b.	 	Microwave Replacement — A purchase order has been issued to Cober Electronics
for $252,000, of which $75,600 has been paid as a deposit. Delivery is expected
approximately March 31, 2011, at which time remaining payments will become due. This
total project has a budget of $380,000 including the additional installation,
rearrangement, and support equipment expenditures. This item is included in the
current capital budget.
	 
	 	c.	 	Installation of Makino a81 Horizontal Machining Center — A purchase order has
been issued to Makino, Inc. for $419.881. This project has a total budget of $490,000,
including installation costs, tooling, material handling and fixtures. This item is
included in the current capital budget.

	2.	 	Brown entered into a Technical Services Agreement dated November 12, 2010 with Bill
Kudrenski, a consultant to Brown.
	 
	3.	 	The D.S. Brown Company Health Benefit Plan is being amended by a Seventh Amendment, a draft
of which has been made available to Purchaser. The amendments to be included in the Seventh
Amendment are intended to make the Health Benefit Plan compliant with new health care reform
laws and to enhance the plan.

31

 

Section 5.1(q) 

Real Property

	1.	 	Owned Real Property Legal Descriptions:

	 	 	 	Parcel I:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10
east, Village of North Baltimore, Henry Township, Wood County, Ohio, bounded and
described as follows:
	 
	 	 	 	Beginning at the interior 1/4 post of said Section 26; thence easterly along the
east-west 1/2 section line, a distance of 827.57 feet to the place of beginning; thence
continuing easterly along that same line, a distance of 452.43 feet to the intersection
of that line with the west right of way line of the B & O Railroad; thence southerly,
following the west right of way line of said railroad, a distance of 1162.3 feet to a
point on the north right of way line of Cherry Street in the Village of North
Baltimore, Ohio; thence westerly along the north right of way line of Cherry Street, a
distance of 144.5 feet to a point; thence northerly along a line parallel to the west
line of southeast 1/4 of said Section 26, a distance of 1126.05 feet to the place of
beginning. Subject to legal highways.
	 
	 	 	 	Parcel II:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10
east, Village of North Baltimore, Henry Township, Wood County, Ohio, bounded and
described as follows:
	 
	 	 	 	Beginning at a point 1117.02 feet north 89° 00’ west, of the east 1/4 post of said
Section 26, said point of beginning being on the north section line of the southeast
1/4; thence north 89° 00’ west, a distance of 219.90 feet to a point, same being on the
east right of way line of the Baltimore and Ohio Railroad Company; thence south 0° 41’
west, a distance of 42.57 feet to the point of curvature; thence along the curve of the
railroad right of way to the right of radius 1,176.28 feet, a distance of 570.73 feet to
a point of tangency; thence south 28° 30’ west, a distance of 54.08 feet to the point of
curvature on the east line of the railroad right of way; thence along the curve of the
railroad right of way to the left of a radius 1116.28 feet, a distance of 70.20 feet to
a point, which is on the south line of Elm Street extended; thence north 89° 08’ 20”
east, a distance of 419.47 feet to a point; which is on the west line of Gillett Street
extended; thence north 0° 1’ 40” east, a distance of 689.99 feet to the point of
beginning. Subject to legal highways.
	 
	 	 	 	Parcel III:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10
east, Village of North Baltimore, Henry Township, Wood County, Ohio, bounded and
described as follows:
	 
	 	 	 	Beginning at the east 1/4 post of said Section 26; thence westerly along the east-west
1/2 section line of said section, a distance of 826.6 feet to the place of beginning;
thence southerly along a line that is parallel to the east line of said section, a
distance of 1146.8 feet to a point on the north right of way line of Cherry Street;
thence westerly along the north right of way line of Cherry Street, a distance of 279.3
feet (previous deed 280.5 feet) to a point on the east right of way line of Gillett
Street; thence northerly along the east right of way line of Gillett Street, a distance
of 49 feet to a point on the north right of way line of Cherry Street; thence westerly
along the north line of way line of Cherry Street, a distance of 53 feet (previous deed
60 feet) to a point; thence northerly a distance of 1103.1 feet to a point on the
east-west 1/2 section line of said Section 26; thence easterly along the east-west 1/2
section line, a distance of 320.75 feet to the place of beginning. Subject to legal
highways.

32

 

	 	 	 	Parcel IV:
	 
	 	 	 	Inlots 1426,1427,1428,1429 and 1430 in the Village of North Baltimore, Wood County, Ohio. 
	 
	 	 	 	Parcel V:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10 east, Village
of North Baltimore, Henry Township, Wood County, bounded and described as follows:
	 
	 	 	 	Beginning at the northeast corner of Inlot 1426 in the Village of North Baltimore, thence northerly
along the easterly line extended of said Inlot 1426 to the south right of way line of Cherry Street;
thence westerly along the south right of way line of Cherry Street to a point, same being on the
westerly line of said  Inlot 1426 if extended northerly; thence southerly along westerly line extended
of Inlot 1426 to the northwest corner of said  Inlot 1426; thence easterly along the northerly line of
Inlot 1426 to the point of beginning.
	 
	 	 	 	Parcel VI:
	 
	 	 	 	Inlots 1392 and 1393 in the Village of North Baltimore, Wood County, Ohio, together with the easterly
1/2 of the vacated alley lying westerly of and adjoining said Inlots.
	 
	 	 	 	Parcel VII:
	 
	 	 	 	Inlots 1362,1363,1364,1365 and 1366 in the Village of North Baltimore, Wood County, Ohio, excepting
therefrom the westerly 17.5 feet thereof.
	 
	 	 	 	Parcel VIII:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10 east, Village
of North Baltimore, Henry Township, Wood County, Ohio, bounded and described as follows:
	 
	 	 	 	Commencing at the northeast corner of Inlot 1366; thence north to the south line of Cherry Street;
thence west along the south line of Cherry Street to the east line of the right of way of the C.H.
& D. R.R.; thence south along said right of way to the northwest corner of said Inlot 1366; thence
east to the place of beginning.
	 
	 	 	 	Parcel IX:
	 
	 	 	 	Inlot 1361 in the Village of North Baltimore, Wood County, Ohio, excepting therefrom the westerly
17.5 feet thereof.
	 
	 	 	 	Parcel X:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10 east, Village
of North Baltimore, Henry Township, Wood County, Ohio, bounded and described as follows:
	 
	 	 	 	Commencing at a point where the east line of the right of way of the Railway known as The
Cincinnati, Hamilton and Dayton Railway Company intersects with the north line of the straight
continuance of Cherry Street, as laid out in Pfau’s Addition; thence east along said north line
about 506 feet to a point intersected by the west line of a straight continuance of Gillett Avenue;
thence north along said west line about 415 feet to a point intersected by the south line of the
straight continuance of Elm Street, as laid out in Pfau’s Addition; thence west along said south
line to the east line of the aforesaid right of way of The Cincinnati, Hamilton and Dayton Railway
Company; thence southerly along said east line to the place of beginning.

33

 

	 	 	 	Parcel XI:
	 
	 	 	 	Inlots 1394, 1395, 1396, 1397 and 1398 in the Village of North Baltimore, Wood
County, Ohio, together with the easterly 1/2 of the vacated alley lying westerly of
and adjoining said Inlots.
	 
	 	 	 	Parcel XII:
	 
	 	 	 	A parcel of land located in the southeast 1/4 of Section 26, Town 3 north, Range 10
east, Village of North Baltimore, Henry Township, Wood County, Ohio, bounded and
described as follows:
	 
	 	 	 	Commencing for the same at the northwest corner of Inlot 1398; thence running, north
to the south line of Cherry Street; thence east along the south line of Cherry
Street to the west line of Gillett Avenue; thence south along the west line of
Gillett Avenue to the northeast corner of Inlot 1398; thence west along the north
line of Inlot 1398 to the place of beginning; together with the easterly 1/2 of the
vacated alley lying westerly of and adjoining said parcel.
	 
	 	 	 	Parcel XIII:
	 
	 	 	 	Inlot 374 in the Village of North Baltimore, Wood County,
Ohio.
	 
	 	 	 	Parcel XIV:
	 
	 	 	 	Inlots 1359 and 1360 in the Village of North Baltimore, Wood County, Ohio, excepting
therefrom the westerly 17.5 feet thereof.
	 
	 	 	 	Parcel XV:
	 
	 	 	 	Inlots 1389, 1390 and 1391 in the Village of North Baltimore, Wood County, Ohio,
together with the easterly 1/2 of the vacated alley lying westerly of and adjoining
said Inlots.

	2.	 	Owned Real Property Street Addresses:

	 	1.	 	300 East Cherry Street
North Baltimore, Ohio 45872
	 
	 	2.	 	331 East Cherry Street
North Baltimore, Ohio 45872
	 
	 	3.	 	207 East Walnut Street
North Baltimore, Ohio 45872
	 
	 	4.	 	403 N. Gillette Street
North Baltimore, Ohio 45872
	 
	 	5.	 	407 N. Gillette Street
North Baltimore, Ohio 45872

34

 

	3. Owned Real Property Tax Parcel Identification Numbers:

	 	 	 
	Parcel of Land:	 	Parcel No.:
	PI Cenl PI SE 4.8 Acres

	 	F23-310260401018000
	 
	 	 
	Irrcg Pt Com 826.6 8.56 Acres

	 	F23-310260401019000
	 
	 	 
	NE CorNW SE WofRR 8.19 Acres

	 	F23-310260401016000
	 
	 	 
	Irreg Pc Com 1117.02 4.94 Acres

	 	F23-310260401017000
	 
	 	 
	Inlot 1359 Less RR

	 	F23-310260406015000
	 
	 	 
	Inlot 1360 Less RR

	 	F23-310260406016000
	 
	 	 
	Inlot 1361 Less RR

	 	F23-310260406017000
	 
	 	 
	Inlot 1362 Less RR

	 	F23-310260406018000
	 
	 	 
	Inlot 1363 Less RR

	 	F23-310260406019000
	 
	 	 
	Inlot 1364 Less RR

	 	F23-310260406020000
	 
	 	 
	Inlot 1365 Less RR

	 	F23-310260406021000
	 
	 	 
	Inlot 1366 Less RR

	 	F23-310260406022000
	 
	 	 
	PI SE Bel Lot 1366 & Cherry 0.23 Acres

	 	F23-310260406023000
	 
	 	 
	Inlot 1389

	 	F23-310260407012000
	 
	 	 
	Inlot 1390

	 	F23-310260407013000
	 
	 	 
	Inlot 1391

	 	F23-310260407014000
	 
	 	 
	Inlot 1392 S 1/2

	 	F23-310260407015000
	 
	 	 
	Inlot 1392 N 1/2

	 	F23-310260407016000
	 
	 	 
	Inlot 1393

	 	F23-310260407017000
	 
	 	 
	Inlot 1394

	 	F23-310260407018000
	 
	 	 
	Inlot 1395

	 	F23-310260407019000
	 
	 	 
	Inlot 1396

	 	F23-310260407020000
	 
	 	 
	Inlot 1397

	 	F23-310260407021000
	 
	 	 
	Inlot 1398

	 	F23-310260407022000
	 
	 	 
	Pt SE N of Lot 1398 & Cherry 0.3 Acres

	 	F23-310260407023000
	 
	 	 
	Inlot 1426

	 	F23-310260408018000
	 
	 	 
	Inlot 1427

	 	F23-310260408019000
	 
	 	 
	Inlot 1428

	 	F23-310260408020000
	 
	 	 
	lnlot 1429

	 	F23-310260408021000
	 
	 	 
	Inlot 1430

	 	F23-310260408022000
	 
	 	 
	Spl SE N of Lot 1430 0.14 Acres

	 	F23-310260408023000
	 
	 	 
	Inlot 374

	 	F23-310260414005000

35

 

	4. Leased Real Property:

	 	 	 	 	 	 	 
	Address of	 	 	 	 	 	Term Expiration
	Leased Real Property:	 	Lessor:	 	Date of Lease:	 	Date:
	623 North Vance Street
Carey, 

Ohio 43316,
which is leased to
Carry D. 

Durain, Jr.

	 	L. Durain

Enterprises, LLC
	 	February 1, 2009
	 	February 1, 2012
(will automatically
renew for one-year
term unless 60
days’ notice
provided)
	 
	 	 	 	 	 	 
	136 Drum Point Road 

Hamilton Square, Suite
6B 

Brick, New Jersey 08723

	 	Lindstrom, 

Diessner
& Carr, P.C.
	 	April 23, 2010
	 	April 30, 2011
(Brown may renew
for one-year term
by providing notice
at least 60 days
prior to expiration
date)
	 
	 	 	 	 	 	 
	136 Drum Point Road 

Hamilton Square, Suite
5C 

Brick, New Jersey 08723

	 	Lindstrom, 

Diessner
& Carr, P.C.
	 	August 23, 2010
	 	August 15, 2011
(Brown may renew
for one-year term
by providing notice
at least 60 days
prior to expiration
date)
	 
	 	 	 	 	 	 
	4005 Nine McFarland 

Alpharetta, Georgia
30004

	 	Midway 

Professional
Center, LLC
	 	April 16, 2008
	 	May 31, 2009
(per its terms,
lease has continued
in effect as a
tenancy at will)
	 
	 	 	 	 	 	 
	Storage Space H1-01

2075 Valley Road 

Reno, Nevada 89512

	 	A-American Self

Storage
	 	May 14, 2005
	 	Month-to-month lease
	 
	 	 	 	 	 	 
	Storage Space V-15

2075 Valley Road 

Reno, Nevada 89512

	 	A-American Self

Storage
	 	May 14, 2005
	 	Month-to-month lease

	5. The following Liens exist on Owned Real Property:

	 	a.	 	MB Financial Bank, N.A. mortgage, which will be released at Closing.
	 
	 	b.	 	MB Financial Bank, N.A. fixture filing, which will be released at Closing.
	 
	 	c.	 	Those matters set forth in Schedule B, Section 2 of the Commitment for Title
Insurance issued by Chicago Title Insurance Company, Commitment No. 580110097 dated
January 27, 2011 and attached hereto as Attachment 5.1(q)(5).

36

 

	 	d.	 	Centerfield Capital Partners II, L.P. mortgage, which will be released at
Closing.
	 
	 	e.	 	Clouse Construction Corporation has filed a notice of commencement in
connection with the current building expansion project, which preserves their right to
file a mechanic’s lien.

	6.	 	A portion of Brown’s Walnut Street facility is leased by the North Baltimore Food Assistance
Program, a food pantry, for storage.
	 
	7.	 	Brown is currently benefiting from a real estate tax abatement. During the period of the
abatement, Brown must pay directly to the local school district the portion of the abated real
estate taxes that would have been allocated to the school district. In addition, if certain
conditions of the abatement are not met, Brown could be subject to additional, catch-up or
recapture taxes. When the period of the abatement ends, Brown’s real estate taxes will
increase.
	 
	8.	 	Condition of Real Property:

	 	a.	 	The roofs exhibit a normal amount of age-related wear and tear based on age,
size and number of intersecting rooflines, and as such require routine maintenance and
repair.
	 
	 	b.	 	The air conditioning systems have also been properly maintained and have a
normal amount of wear and tear. However, the air conditioning system for the rubber
mixing area has been identified as being in need of replacement within the next two
years. This replacement would fall within normal planned capital budget requirements.

37

 

Attachment 5.1(g)(5) 

Schedule B, Section 2 of Commitment No. 580110097 dated January 27, 2011

Order
No.: 580110097

Loan No.:

SCHEDULE B — SECTION 2

EXCEPTION

The Policy or Policies to be issued will contain exception to the
following unless the same are disposed of to the satisfaction of the
Company.

	1.	 	Defects, liens, encumbrances, adverse claims or other
matters, if any, created, first appearing in the public records or
attaching subsequent to the effective date hereof but prior to the
date the proposed Insured acquires for value of record the estate or
interest or mortgage thereon.

	2.	 	Assessments, if any, not yet certified to the County Auditor.

	3.	 	Rights or claims of parties other than Insured in
actual possession of any or all of the property.

	4.	 	Any encroacnment, encumbrance, violation, variation, or
adverse circumstance affecting the Title that would be disclosed by
an accurate and complete land survey of the Land. The term
“encroachment” includes encroachments of existing
improvements located on the Land onto adjoining land, and
encroachments onto the Land of existing improvements located on
adjoining land.

	6.	 	No liability is assumed for tax increases occasioned by
retroactive revaluation change in land usage, or loss of any
homestead exemption status for insured premises.

	7.	 	Any inaccuracy in the specific quantity of acreage
contained on any survey if any or contained with the legal
description of premises Insured herein.

	8.	 	Covenants, conditions and restrictions and other
instruments recorded in the public records and purporting to impose a
transfer fee or conveyance fee payable upon the conveyance of a
interest in real property or payable for the right to make or accept
such a transfer, and any and all fees, liens or charges, whether
recorded or unrecorded, if any, currently due payable or that will
become due or payable, and any other rights deriving therefrom, that
are assessed pursuant thereto.

	9.	 	Oil and gas leases, pipeline agreements or any other instruments related to the
production or sale of oil and gas which may arise subsequent to the date of the
Policy.

	10.	 	Reservations, restrictions, covenants, limitations,
easements, and/or conditions, as established in instrument, filed
for record August 8, 1891, in Deed Volume 98, Page 269, of the Wood
County Records. (as to Lot 1391)

	11.	 	Reservations, restrictions, covenants, limitations,
easements, and/or conditions, as established in instrument, filed
for record August 12, 1891 , in Deed Volume 98, Page 275, of the Wood
County Records. (as to Lot 1393)

	12.	 	Reservations, restrictions, covenants, limitations,
easements, and/or conditions, as established in instrument, filed
for record January 13, 1893, in Deed Volume 99, Page 487, of the
Wood County Records. (as to Lots 1397-1398)

	13.	 	Reservations, restrictions, covenants, limitations, casements, and/or
conditions, as
established in Instrument, filed for record March 22,1909, in Deed Volume 154, Page
302, of the Wood County Records. (as to Lots 1394-1398)

38

 

Order No.: 580110097

Loan No.:

	14.	 	Reservations, restrictions, covenants,
limitations, easements, and/or conditions, as established in
instrument, filed for record December 10, 1909, in Deed Volume 156,
Page 474, of the Wood County Records. (as to Lot 1389-1390)

	15.	 	Reservations, restrictions, covenants, limitations,
easements, and/or conditions, as established in instrument, filed for
record June 12, 1924, in Deed Volume 199, Page 524, of the Wood County
Records. (as to Lots 1392-1393)

	16.	 	Right-of-Way to The Buckeye Pipe Line Company, filed for
record March 21, 1927, in Deed Volume 40, Page 185 of the Wood
County Records.

	17.	 	Reservations restrictions, covenants, limitations, easements, and/or conditions,
as
established in instrument, filed for record January 21, 1963, in Deed
Volume 417, Page 64, of the Wood County Records. (as to Lot 1389)

	18.	 	Ordinance No. 02-93, vacating a certain North-South Alley
abutted on the West by a .25 acre parcel and by Inlots 1367 and 1375 and
on the East by a .30 acre parcel and by Inlots 1390 to 1398, filed for
record May 4, 1993 in Deed Volume 676, Page 638, of the Wood County
Records.

	19.	 	Easements, f any, for public utilities pipelines or
facilities installed in, and any private right to use, any portion
of the vacated street or alley, lying within the land, together
with the right of ingress and egress to repair, maintain replace
and remove the same.

39

 

Section 5.1(r)

Employee Matters

     All employees are part of a bonus plan, as set forth by Section 5.1(g)(i) of these Disclosure
Schedules.

     The Companies have entered into agreements with employees as set forth by Section 5.1(g)(vii)
of these Disclosure Schedules. Holdings and certain employees are also parties to the Stockholders
Agreement by and among Holdings, Altus Capital Partners SBIC, L.P., Altus-D.S. Brown Co-Investment,
LLC, Centerfield Capital Partners II, L.P., RGA Reinsurance Company, Kirk Feuerbach, Gerald A.
Wetzel, Timothy L. Hack, Mark R. Kaczinski and Thomas H. Lewis, dated as of August 25, 2008, which
will be terminated as of the Closing Date.

40

 

Section 5.1(u)

Accounts Receivable

	1.	 	The Companies’ customers sometimes request that the Companies temporarily hold product that
the Companies have manufactured pursuant to the customers’ purchase orders, even though the
product has been completed and is ready for shipment. Without having shipped the product, the
Companies may invoice the customers for the product, creating a receivable in the Companies’
records and books of account.
	 
	2.	 	The Companies’ customers sometimes make periodic progress payments to the Companies during
the manufacture of particular custom products. If the Companies were to ultimately not
deliver the product when it was due in such a case, the customer could have the right to a
counterclaim or setoff with respect to any unpaid invoices.

41

 

Section 5.1(v)

Insurance

	1.	 	General liability policy having policy no. GLP6011143-02, issued by Maxum Indemnity.
	 
	2.	 	Automobile policy having policy no. PRA6555575-01, issued by American Guarantee and Liability
Insurance Company.
	 
	3.	 	Property/inland marine/boiler policy having policy no. PRA6555575-01, issued by Zurich
American.
	 
	4.	 	Umbrella policy having policy no. 06598A101ALI, issued by Torus Specialty.
	 
	5.	 	Foreign package/WC policy having policy no. GEP9380563-04, issued by Zurich American.
	 
	6.	 	Executive risk (D&O) policy having policy no. 00KB025264610, issued by Twin City Fire
Insurance Co.
	 
	7.	 	Workers compensation policy having policy no. WC-9672778-03, issued by American Guarantee and
Liability Insurance Company.
	 
	8.	 	Insurance policy information:

	 	a.	 	The D.S. Brown Group Health Plan policy through QBE Insurance Corporation
(re-insurer) is SLS00196-10.
	 
	 	b.	 	The D.S. Brown Dental Plan is self-insured, administered by NGS with a benefit
plan code 001.
	 
	 	c.	 	The D.S. Brown flexible spending plan number is 501.
	 
	 	d.	 	AFLAC policies are voluntarily insured plans with individual policy numbers.
	 
	 	e.	 	Mutual of Omaha short-term disability plan is GUG-434G.
	 
	 	f.	 	Mutual of Omaha long-term disability plan is GLTD-434G.
	 
	 	g.	 	Mutual of Omaha group life and accidental death and dismemberment plan is
GLUG-434G.
	 
	 	h.	 	Mutual of Omaha voluntary group life and accidental death and dismemberment
plan is GVTL-434G.

	9.	 	The Companies self-insure with respect to the group health plan. Each covered individual has
a specific deductible of $50,000. In addition, there is a specific aggregate corridor of
$40,000 and two covered individuals have a separate deductible of $150,000. The aggregate
deductible for the Companies is $1,773,988 (also referred to as the minimum aggregate
attachment point). The prescription drug benefit is not included in the calculation of the
aggregate deductible for the Companies. A reinsurance policy through QBE Insurance
Corporation provides coverage and reimburses the Companies for eligible claims paid in excess
of the specific and/or company aggregate deductibles.
	 
	10.	 	The Companies’ premiums under its general liability, automobile and non-Ohio workers
compensation policies are determined retrospectively based on annual audits.

42

 

Section 5.1(v)(ii)

Insurance Exceptions

	 	1.	 	The Companies have received notices of premium increases under some of their insurance
policies. The health and disability premiums for Fiscal Years 2009, 2010 and 2011 are as set
forth below and other insurance premiums are as set forth in Attachment 5.1(v)(ii).

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Benefit	 	FY 2009	 	 	FY 2010	 	 	FY 2011	 
	Group Health Plans:
	 	 	 	 	 	 	 	 	 	 	 	 
	Medical administration fee (per employee)
	 	 	17.66	 	 	 	17.66	 	 	 	17.66	 
	Dental administration fee (per employee)
	 	 	3.70	 	 	 	3.70	 	 	 	3.70	 
	Healthcare management fee (per employee)
	 	 	2.39	 	 	 	2.39	 	 	 	2.39	 
	Consulting & service fee (per employee)
	 	 	2.50	 	 	 	2.50	 	 	 	2.50	 
	Specific reinsurance rate (single)
	 	 	47.50	 	 	 	41.69	 	 	 	43.25	 
	Specific reinsurance rate (family)
	 	 	125.52	 	 	 	111.05	 	 	 	113.59	 
	Aggregate reinsurance rate (single)
	 	 	7.11	 	 	 	5.97	 	 	 	5.26	 
	Network access fixed fee (Medical Mutual)
	 	 	35.00	 	 	 	24.00	 	 	 	24.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Ancillary Plans (Mutual of Omaha):
	 	 	 	 	 	 	 	 	 	 	 	 
	Life (rate per $1,000)
	 	 	0.1777	 	 	 	0.1777	 	 	 	0.1777	 
	AD&D (rate per $1,000)
	 	 	0.03	 	 	 	0.03	 	 	 	0.03	 
	Short-term disability (rate per $10 covered payroll)
	 	 	0.27	 	 	 	0.27	 	 	 	0.27	 
	Long-term disability (rate per $100 covered payroll)
	 	 	0.43	 	 	 	0.43	 	 	 	0.43	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	COBRA:
	 	 	 	 	 	 	 	 	 	 	 	 
	Administrative fees (Mongoose)-per employee per event
	 	 	12.50	 	 	 	12.50	 	 	 	12.50	 
	COBRA rate — Plan A single (Medical & Rx)
	 	 	528.90	 	 	 	528.90	 	 	 	556.47	 
	COBRA rate — Plan A family (Medical & Rx)
	 	 	1,189.01	 	 	 	1,189.01	 	 	 	1,257.38	 
	COBRA rate — Plan B single (Medical & Rx)
	 	 	439.49	 	 	 	439.49	 	 	 	512.70	 
	COBRA rate — Plan B family (Medical & Rx)
	 	 	988.00	 	 	 	988.00	 	 	 	1,156.70	 
	COBRA rate — Dental single
	 	 	36.58	 	 	 	36.58	 	 	 	25.11	 
	COBRA rate — Dental family
	 	 	82.25	 	 	 	82.25	 	 	 	73.32	 

	 	2.	 	The Companies’ premiums under its general liability, automobile and non-Ohio workers
compensation policies are determined retrospectively based on annual audits. Accordingly, the
Companies have received notices related to such audits during the two (2) year period ending
on the Closing Date.
	 
	 	3.	 	The terms of the Companies’ D&O insurance policy provided that the policy will terminate upon
a change of control such as that that will occur upon the Closing.
	 
	 	4.	 	The Companies do not maintain any professional liability insurance coverage.

43

 

Attachment 5.1(v)(ii)

Other Insurance Premiums

The D.S. Brown Company, Inc.

2010-2011 Final Bound Insurance Program

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Zurich	 	 	 	 	 	 	Zurich	 	 	 	 
	 	 	Maxum (GL)	 	 	Renewal	 	 	Maxum (GL)	 	 	 	 
	 	 	Torus (UMB)	 	 	Exposures at	 	 	Torus (UMB)	 	 	%	 
	Coverage	 	2009-2010	 	 	Expiring Rates	 	 	2010-2011	 	 	Change	 
	Property 1
	 	$	59,270	 	 	$	62,756	 	 	$	61,747	 	 	 	ü 	 
	Building
	 	$	l2,650,000	 	 	$	14,150,000	 	 	$	l4,150,000	 	 	 	 	 
	Business Personal Property
	 	$	39,350,000	 	 	$	40,850,000	 	 	$	40,850,000	 	 	 	 	 
	Business Income/Extra Expense
	 	$	16,000,000	 	 	$	17,000,000	 	 	$	17,000,000	 	 	 	 	 
	Total Insured Values
	 	$	68,000,000	 	 	$	72,000,000	 	 	$	72,000,000	 	 	 	 	 
	Average Rate/$100
	 	$	0.09	 	 	$	0.09	 	 	$	0.09	 	 	 	 	 
	Deductible
	 	$	5,000	 	 	$	25,000	 	 	$	5,000	 	 	 	 	 
	Ded. on Bus. Inc.
	 	24 Hrs	 	 	48 Hrs	 	 	24 Hrs	 	 	 	 	 
	Earthquake/Flood Limit Each
	 	$	10,000,000	 	 	$	5,000,000	 	 	$	10,000,000	 	 	 	 	 
	Earthquake/Flood Deductible
	 	$	100,000	 	 	$	100,000	 	 	$	100,000	 	 	 	 	 
	General Liability 2
	 	$	85,963	 	 	$	98,857	 	 	$	90,417.60	 	 	 	ü 	 
	Sales, Basis
	 	$	60,000,000	 	 	$	69,000,000	 	 	$	69,000,000	 	 	 	 	 
	Average Rate Per $1,000
	 	 	1.433	 	 	 	1.433	 	 	 	1.310	 	 	 	 	 
	Deductible
	 	$	10,000	 	 	$	10,000	 	 	$	10,000	 	 	 	 	 
	Workers’ Compensation 1
	 	$	13,906	 	 	$	18,587	 	 	$	16,668	 	 	 	ü 	 
	Payroll
	 	$	1,010,000	 	 	$	1,350,000	 	 	$	1,350,000	 	 	 	 	 
	Avg. Rate
	 	$	1.38	 	 	$	1.38	 	 	$	1.23	 	 	 	 	 
	Experience Mod
	 	 	0.85	 	 	 	0.97	 	 	 	0.97	 	 	 	 	 
	Umbrella 2
	 	$	76,910	 	 	$	88,447	 	 	$	85,000.65	 	 	 	ü 	 
	Limit
	 	$	10,000,000	 	 	$	10,000,000	 	 	$	10,000,000	 	 	 	 	 
	Sales Basis
	 	$	60,000,000	 	 	$	69,000,000	 	 	$	69,000,000	 	 	 	 	 
	Average Rate Per $1,000
	 	$	1.28	 	 	$	1.28	 	 	$	1.23	 	 	 	 	 
	Auto 1
	 	$	10,327	 	 	$	9,682	 	 	$	9,568	 	 	 	ü 	 
	No. of Units
	 	 	16	 	 	 	15	 	 	 	15	 	 	 	 	 
	Average Rate
	 	$	645	 	 	$	645	 	 	$	638	 	 	 	 	 
	Foreign Package 2
	 	$	10,000	 	 	$	10,000	 	 	$	10,000	 	 	 	ü 	 
	International Liability Aggregate
	 	$	1,000,000	 	 	$	1,000,000	 	 	$	1,000,000	 	 	 	 	 
	Intl. Auto DIC/Excess Liability
	 	$	1,000,000	 	 	$	1,000,000	 	 	$	1,000,000	 	 	 	 	 
	Intl. Employer’s Liability
	 	$	1,000,000	 	 	$	1,000,000	 	 	$	1,000,000	 	 	 	 	 
	Total Premium
	 	$	256,376	 	 	$	288,329	 	 	$	273,401	 	 	 	-5	%
	Commission/Risk
Management Fee 3
	 	$	45,000	 	 	$	45,000	 	 	$	48,000	 	 	 	ü 	 

 

			
	1	 	25% down with 9 Installments
	 
	2	 	Full Pay — may be financed, DECLINED FINANCE AGREEMENT
	 
	3	 	Quarterly Installments

General Liability & Umbrella Include Terrorism and surplus Lines Taxes

44

 

Section 5.1(w)

Warranties; Product Liability Claims

	1.	 	Warranties

	 	a.	 	Manufacturer’s Limited Warranty issued to AGW Steel, in connection with I-40
Mississippi River Bridge Shelby County, TN and Crittenden County, AR Pier W28 and Pier
A, dated July 15, 2001.
	 
	 	b.	 	Manufacturer’s Limited Warranty issued to AGW Steel, in connection with I-40
Mississippi River Bridge Shelby County, TN and Crittenden County, AR Pier C, dated June
25, 2002.
	 
	 	c.	 	Manufacturer’s Limited Warranty issued to CJ Mahan Construction Company, in
connection with Corridor H Bridge 4273 DOT X316-H-117.40 05 Hard County WV, dated
October 24, 2006.
	 
	 	d.	 	Manufacturer’s Limited Warranty issued to Dement Construction, in connection
with I-40 Mississippi River Bridge Shelby County, TN and Crittenden County, AR Pier NO
1, dated August 21, 2010.
	 
	 	e.	 	D.S. Brown Pavement Products Warranty issued to Dement Construction
(responsible to submit to TRC Imbsen), in connection with I-40 Mississippi River Bridge
Shelby County, TN and Crittenden County, AR Group B Bridges. The warranty on the first
half of the joints was effective as of August 27, 2008, and the warrant on the last
half of the joints was effective as of December 3, 2008.
	 
	 	f.	 	Manufacturer’s Limited Warranty issued to EDM Construction, Inc, in connection
with Central Artery I-93 Tunnel I-90 Project I-90 1A Interchange and MBTA Airport
Station 30225-C08A1, dated March 27, 2002.
	 
	 	g.	 	Warranty issued to Hamilton Construction, in connection with Willamette River
Bridge, Eugene OR. The product is not yet installed. The warranty will last for two
years from the placed in service date.
	 
	 	h.	 	D.S. Brown Pavement Products Warranty issued to Hymmco, in connection with
Tampa International Airport FAA # 3-12-0078-XX-209 Taxiway B Reconstruction and Bridge
Project, dated November 10, 2010.
	 
	 	i.	 	D.S. Brown Pavement Products Warranty issued to International Contractors, in
connection with Orlando International Airport GOAA Project BP 372 Airfield Pavement
Restoration, dated March 3, 2009.
	 
	 	j.	 	D.S. Brown Pavement Products Warranty issued to John Carlo (sold through
Hymmco), in connection with Detroit Metropolitan Wayne County Airport Runway 3R-21L and
Taxiway W Rehabilitation WCAA Project # AF-114.C.00.0, dated August 1, 2007.
	 
	 	k.	 	Warranty issued to KFM, in connection with 04-SF, ALA-80-13.9/14.3, 0.0/1.6
SFOBB Skyway Project Contract 04-012024, dated March 24, 2008.
	 
	 	l.	 	Letter of Guarantee issued to Larsen & Toubro Ltd, ECC Division, in connection
with Allshabad Bypass Project — Construction of Bridge Across River Ganga -
Construction Package ABP-1, dated September 26, 2006.
	 
	 	m.	 	Warranty issued to LCL-Bridge Products Technology Inc., in connection with
Manitoba Floodway Authority Project. The project began in April 2010 and the warranty
is to last for five years.

 

 

	 	n.	 	Warranty issued to LCL-Bridge Products Technology Inc., in connection with
Reconstruction & Strengthening of Ext Bridge over Assiniboine River Project. The
product shipped on October 3, 2010 and the warranty is to last for five years.
	 
	 	o.	 	Manufacturer’s Limited Warranty issued to LCL-Bridge Products Technology Inc. -
Graham Industrial Services, in connection with Circle Drive Bridge Widening City of
Saskatoon, dated June 1, 2007.
	 
	 	p.	 	Warranty issued to Lojac, Inc, in connection with Air Cargo Building One, Phase
One, MSCAA Project # 00-1025-02, dated May 14, 2008.
	 
	 	q.	 	D.S. Brown Pavement Products Warranty issued to Lojac, Inc, in connection with
Airport Pavement Joint Rehabilitation at Northwest Arkansas Regional Airport Benton
County, AR, dated January 30, 2009.
	 
	 	r.	 	Manufacturer’s Limited Warranty issued to Lorig Construction Company, in
connection with I-05-7711 I-355, dated May 14, 2008.
	 
	 	s.	 	Manufacturer’s Limited Warranty issued to Lunda Construction Company, in
connection with Ramsey — Washington County I-494, dated June 18, 2003. The warranty
remains valid on the second bridge only, which was placed in service on July 1, 2010.
	 
	 	t.	 	Manufacturer’s Limited Warranty issued to Max J. Kuney, in connection with
US-95 over Lake Creek Bridge Kootenai County ID NH-5110(157), dated August 22, 2007.
	 
	 	u.	 	Warranty issued to Service Construction, in connection with Sacramento Mather
Airport PCC Rehabilitation Project AIP # 3-06-0363-08, 10 & 11, Contract # 3903, dated
November 3, 2006.
	 
	 	v.	 	Manufacturer’s Limited Warranty issued to Shaw Group Stone Webster, in
connection with New Jersey Turnpike Contract R-1393B, dated October 31, 2009.
	 
	 	w.	 	Manufacturer’s Limited Warranty issued to Stinger Welding, in connection with
Town Lake Bridge Contract Number LRT-04-029-TLB Central Phoenix/East Valley Light Rail
Transit Project Disc Bearings, dated October 30, 2006.
	 
	 	x.	 	Warranty issued to Tacoma Narrows Constructors, in connection with State Route
16 Tacoma Narrows Bridge Project, dated July 2, 2007.

	2.	 	Recalls

	 	a.	 	In December 2010, Brown initiated a voluntary product recall related to belt
guarding on a pavement seal installation machine it sells. The recall affected 66
machines and the cost to repair the deficiency is $80 per machine. Letters have been
issued to all machine owners and, to date, there have been fewer than 20 responses.
There have been no reported injuries associated with the deficiency.

46

 

Section 5.1(y)

Related Party Transactions

	1.	 	Stockholders Agreement by and among Holdings, Altus Capital Partners SBIC, L.P., Altus-D.S.
Brown Co-Investment, LLC, Centerfield Capital Partners II, L.P., RGA Reinsurance Company, Kirk
Feuerbach, Gerald A. Wetzel, Timothy L. Hack, Mark R. Kaczinski and Thomas H. Lewis, dated as
of August 25, 2008. Sellers will provide a termination agreement, in a form acceptable to
Purchaser.
	 
	2.	 	Senior Subordinated Notes and Share Purchase Agreement by and among Centerfield Capital
Partners II, L.P., RGA Reinsurance Company, Holdings and Brown, dated as of August 25, 2008,
which will be terminated as of the Closing Date, and such Notes having been paid in full
pursuant to that certain letter dated June 30, 2010 by and among Centerfield Capital Partners
II, L.P., RGA Reinsurance Company, Holdings and Brown.
	 
	3.	 	Management Services Agreement by and between Altus Capital Partners, Inc. and Holdings, dated
as of August 25, 2008. Sellers will provide a termination agreement, in a form acceptable to
Purchaser, executed by Holdings and Altus Capital Partners.
	 
	4.	 	Management Rights Agreement by and between Holdings and Centerfield Capital Partners II,
L.P., dated August 25, 2008, which by its terms expires in the event that Centerfield Capital
Partners II, L.P. no longer holds any Common Shares and/or Preferred Shares of Holdings, which
will occur at Closing. Sellers will provide a termination agreement, in a form acceptable to
Purchaser, executed by Holdings and Centerfield Capital Partners II, L.P.
	 
	5.	 	Management Rights Agreement by and between Holdings and RGA Reinsurance Company, dated August
25, 2008, which by its terms expires in the event that RGA Reinsurance Company no longer holds
any Common Shares and/or Preferred Shares of Holdings, which will occur at Closing. Sellers
will provide a termination agreement, in a form acceptable to Purchaser, executed by Holdings
and RGA Reinsurance Company.
	 
	6.	 	Employment Agreement by and between Brown and Kirk Feuerbach, dated as of August 25, 2008.
	 
	7.	 	Employment Agreement by and between Brown and Gerald Wetzel, dated as of August 25, 2008.
	 
	8.	 	Employment Agreement by and between Brown and Timothy L. Hack, dated as of August 25, 2008.
	 
	9.	 	Employment Agreement by and between Brown and Mark R. Kaczinski, dated as of August 25, 2008.
	 
	10.	 	Employment Agreement by and between Brown and Tom H. Lewis, dated as of August 25, 2008.

47

 

	11.	 	Tax Insurance Policy issued by Nutmeg Insurance Company to Kirk Feuerbach, Gerald Wetzel and
Timothy Hack, and designated Policy Number: DR0258800-09.

48

 

Section 5.1(z)

Powers of Attorney

	1.	 	All of the following outstanding powers of attorney involve foreign freight shipping.

	 	a.	 	Customs Power of Attorney/Designation as Export Forwarding Agent and
Acknowledgement of Terms and Conditions executed by Brown in favor of World Express
Shipping, Transportation and Forwarding Services Inc. dba W.E.S.T. Forwarding Services,
dated September 30, 2010.
	 
	 	b.	 	Customs Power of Attorney executed by Brown in favor of Cargo Services Inc.,
dated February 13, 2009.
	 
	 	c.	 	Customs Power of Attorney executed by Brown in favor of Professional Cargo
Services USA Ltd. d/b/a Pro Cargo USA, dated February 8, 2008.

49

 

Section 5.1(aa)

Systems

The Companies employ the following systems:

	 
	Office Professional 2010

	HP Proliant Server

	Tekla Detailing Software

	 

	Tekla Viewer Software

	Cisco Catalyst WS-C3560G-24PS

	Cisco Catalyst WS-C3560G-24PS

	AutoCad LT 2011

	WH335UT #ABA HP620

	 

	WH335UT #ABA HP620

	WH335UT #ABA HP620

	VS695UT #ABA Compaq 500B

	VS695UT #ABA Compaq 500B

	 

	VS695UT #ABA Compaq 500B

	HP Storageworks Tape Drive

	Adobe Acrobat

	MicroSoft Office Professional 2010

	HP TFT7600 KVM Console

	 

	VS695UT #ABA Compaq 500B

	 

	VS695UT #ABA Compaq 500B

	VS695UT #ABA Compaq 500B

	WH335UT #ABA HP620

	WH335UT #ABA HP620

	 

	MP3025 SPF Cabinet

	MathCad Software

	 

	HP ProBook 4720S

	HP Workstation Z800

	 

	HP Workstation Z800

	Backup System

	 

	FaxFinder

	HP Workstation Z800 w/ AutoCad

	AutoCad LT 2011 & MathCad 14 Software

	Flash Media Presentation of Signature Projects

	HP Proliant DL380 G6 Performance Server

	 

	HP Probook 4710S

	HP Compaq 610 Notebook

	Compaq PIII 1.26 Processor

	Labor Interface Dataload

	Licenses for Microsoft Office, Windows Srvr, MS Ex

	 

	Autocad LT 2002 Licenses

	Compaq EVO D510 S/N 6X26-KH9Z-COEF

	Compaq EVO D510 S/N 6X26-KH9Z-COLL

	Compaq EVO D510 S/N 6X26-KH9Z-COH7

	Licenses for Microsoft Office, Windows Srvr, MS Ex

	 

	Catalyst 3548 XL Network Switch

	Fiber Optic Upgrade

	Compaq EVO D510 P4 1.8 (3)

	Catalyst 3524 XL Network Switch for Access to Serv

	 

	Compaq EVO D510 S/N 6X27-KH9Z-H2NC

	Compaq EVO D510 S/N 6X27-KH9Z-H29Z

	Laserjet 1200N 15PPM #C7048A#ABA

	Compaq EVO D510 P4 2.0 (2)

	LP240 MMPROJ SVGA-1000 Lumen Office Projector

	Compaq EVO D510 CMT P4 2.0 256 40GB 48X XPP 2K

	Compaq Rack 10642 42U Flat Panel

	Compaq EVO N410C PIII 1.2 30 256 2K

	UPS System Batteries(10)

	Compaq TFT5600 RKM Flat Panel MSD Integrated Keybo

	Compaq DLT1 1280 Super Loader and Cartridges

	Compaq Proliant DL380 G3 Xeon 2.8 512KB Cache, 2U

	Compaq 36GB 15k U320 Uni Hard Drive (6)

	Compaq EVO N800V P4 1.8 256 30GB DVD15 NIC XPP (2)

	Compaq 2.8 GHZ Xeon Processor Option Kit

	Compaq 1 GB PC2100 DDR (2X5I2MB) Memory Servers

	Compaq EVO D510 S/N 6X31KN8ZW09M

	Windows XP Pro 1 Client License Version Upgrade

	Sun Microsystems Server

	Compaq EVO D510 (2)

	Compaq Proliant DL380 G3 Xeon 2.8 512KB Cache, 2U

	Compaq 36GB 15k U320 Uni Hard Drive (6)

	Compaq 2.8 GHZ Xeon Processor Option Kit

50

 

	 
	HP Compaq 610 Notebook

	 

	HP Compaq 610 Notebook

	HP OfficeJet Pro Printer

	ProNest Nesting Software

	 

	ABA HP Workstation Z800 w/AutoCad Software

	 

	Network for Production Office Building

	 

	Phone System for Production Office Building

	CISCO CATALYST 3560G-24PS

	CISCO CATALYST 3560G-48PS

	 

	CISCO CATALYST 3560G-48PS

	 

	Ricoh 3025SP Copier

	HP Proliant Server

	Aficio MP 4000SP Printer

	Aficio MP 4000SP Printer

	HP LaserJet P4014N

	HP ProBook 4710S

	HP ProBook 4710S

	Desk Top Faxing

	Adobe Acrobat Standard Software

	HP Proliant DL380 Server

	KS146UT#ABA Mini Note

	NV438UT#ABA Smart Buy WVB/XPP

	NV438UT#ABA Smart Buy WVB/XPP

	NV438UT#ABA Smart Buy WVB/XPP

	AutoCad LT Software

	WS-C3750G-12S-S Catalyst Switch

	HP Compaq Business Desktop

	HP Compaq Business Desktop

	HP Compaq Business Desktop

	Ricoh Copier/Printer/Scanner MP3350SP

	HP2140 Mini-Notebook

	HP2140 Mini-Notebook

	HP2140 Mini-Notebook

	Cisco Catalyst 3560G 48PS Switch

	HP Proliant DL360 G5 Server

	AutoCad LT 2009 Software

	HP Proliant DL380 G5 Server

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	HP Compaq Business Notebook

	HP Compaq Business Notebook

	Compaq 1 GB PC2100 DDR (2X5I2MB) Memory Servers

	Adobe Acrobat 6.0 Professional

	Danka Color Copier

	Compaq EVO D510 CMT, P4 2.4, 256 Mb S/N USC32308XS

	Compaq EVO D510 CMT, P$ 2.4, 256 Mb S/N USC32308Z1

	Compaq EVO N800V P4 1.8 256 30GB DVD15 NIC (2)

	Compaq EVO N800V P4

	Windows XP Pro (10)

	HP Laserjet 4200N Printer w/network card,duplex un

	 
	Compaq EVO D30 Tower; Pentium 4 2.53 GHz; S/N USU3

	Citrix Metaframe XPS Software, Licenses, installat

	ADT Timeclock Security System

	ABRA Payroll System

	PROLIANT DL380 RACK G3 3.06X

	UR UNRESTRICTED FIREWALL

	Backup Exec Win Svrs 9.1C

	HP D220M MT P4-2.4/256/40G/48

	Axxess CPC 256 (Phone System) 1st Phase

	HP D220 MT P4-2.66/128/40G/48

	9100C Digital Sender — THHNET 1 Scanner

	LASERJET 5100TN 21PPM PAR/NIC

	EVO N610C P4-2.0/256.30G/DVD

	LASERJET 2300DN

	Exchange Server Hardware and Software Upgrade

	NX9010 2.8GHZ 15IN XGA, 40GB, 5

	Wireless Network

	LASERJET 2300N 25PPM USB/PAR/

	Network Switch

	Time Clock Security System

	Citrix Server Hardware Upgrade

	HP NC6000 P4M-1.6/512/40G/C

	Preventative Maintenance Software

	Add’l Charges: Sales & Use Tax Audit FY2001

	Add’l Charges: Sales & Use Tax Audit FY2002

	Add’l Charges: Sales & Use Tax Audit FY2000

	HP D220MT P2.8/256/40G/CD/N

	150 User Web Surfing Software

	DSB NT Server Upgrade

	Memory Upgrade for Exchange Server

	PF673AA#ABA NC4010 PM/1600 512MB-40GB 1

	Network Switch for Operations Area

	Dell Desktop from Singapore Office

	HP NC6000 PM1.7 512 40GB

	Server & Memory Upgrade-Server Room

51

 

	 
	HP Compaq Business Notebook

	HP Compaq Business Notebook

	Cisco Catalyst 3560G-24PS Switch

	Cisco Catalyst 3560G-24PS Switch

	Fiber Optic Network Wiring

	Microsoft Windows Server 2008

	MicroSet Fax Upgrade

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	Cisco Catalyst 3560-8PC Switch

	Cisco ASA 5510 SEC PLUS Appliance (Firewall)

	 

	Microsoft Exchange Server 2007

	 

	Video Conferencing System

	 

	KR916UT#ABA HP Compaq Business Notebook

	Q38967 HP Compaq Business Desktop DC5800

	KR916UT#ABA HP Compaq Business Notebook

	Time Clock Plus Professional Edition

	IBM Typewriter

	 

	IBM Typewriter

	IBM Typewriter

	IBM Typewriter

	Great Plains Accounting System

	Company Sign

	EDM Software-Die Machine

	AutoSTAAD

	 

	Steinbergs Microwave,Refrig

	VTECH M-486DX250 SERIAL #3639539

	 

	Kodak Slide Projector #2

	 

	Great Plains Version 8 Upgrade

	 

	(7) AutoCAD R12 to R14 PC Upgrade / AutoEDMS

	 

	Automated Drawing Package for HLMR Bearings

	 

	Datum Software For Windows ASTM D-41 Lab

	Alpha’s FACSys V4.5 For WNT 4.0 Server & Client

	 

	AutoCAD R14

	 

	DK424 Large Unit RCTUC

	 

	Card, 4 Port Tie Lin REMU

	 

	Security Software

	Compaq Notebook from Singapore

	Dell Desktop from Singapore Office

	LaserJet 5100TN 21PPM PAR/N

	Promo NC6230 PM1.86 512Mb

	Promo HP DX2000 P4 2.8 GHz

	Citrix License

	OLB Exchange Sever

	(6) WYSE Winterm v30 64F/128R

	ETRAVE8003PUE2C Etrust Antivirus R8-100 2

	PU985AA#ABA PROMO NC6230 NV6230 PM1.86 512MB

	PU985AA#ABA PROMO NC6230 NV6230 PM1.86 512MB

	PU985AA#ABA PROMO NC6230 NV6230 PM1.86 512MB

	EV268AA#ABA HP PROMO NX9420 17” Display

	DeskPro EN Series 174225-B21-AX 256 Mb

	TR1034-P4-4L 4PT V34-ALOG

	Win Server 2003 Licenses

	WS-C3750-24PS-S Catalyst 3750 24Pt 10/100-2 Switch

	PZ044UT#ABA HPXW6200 XEON 3.4GHz Router

	EV268AA#ABA HP PROMO NX9420 17” Display

	MathCad Software (10 copies)

	EY695AA#ABA HP PROMO 15.4 WSXGA+ WVA

	Universal Rack

	SolidWorks CAD Software

	EV268AA#ABA HP PROMO NX9420 17” Display Laptop

	WS-C3750-48PS-S Catalyst 3750 Switch

	PU984AW#ABA HP NC6230 PM1.86 512Mb 60Gb Laptop

	PU984AW#ABA HP NC6230 PM1.86 512Mb 60Gb Laptop

	PU984AW#ABA HP NC6230 PM1.86 512Mb 60Gb Laptop

	EN176UT#ABA HP EN176UT 14”/1.66Ghz/512Mhz Laptop

	EN176UT#ABA HP EN176UT 14”/1.66Ghz/512Mhz Laptop

	Wireless Network

	Dell PE6800 3.0GHz/2X2MB, XEON, 7041, 800FSB Serve

	Dell PV110T, LTO-3, 400/800 GB, EXT-R Tape Drive

	 

	Dell OPTIPLEX 745 ULTRA SMALL FORM FACTOR PENTIUM

	Dell OPTIPLEX 745 ULTRA SMALL FORM FACTOR PENTIUM

52

 

	 
	Cisco 2610 Ethernet Router/VPN Server/Accessories

	 

	PRN HP Laserjet/Proxima DP5800 

Projector/Accessori

	Legend 400 GS/LS/TTR Module/Page Pal Tel Interface

	Cisco 2610 Ethernet Router/VPN Server/Accessories

	 

	24T-1 Interface Board (WAN)

	 

	WAN Network (Eltrax Systems)

	 

	Upgrading Licenses IP T and Memory 8MB DRAM & DIMM

	Printers-HP Laserjet 4050N 1200DPI 17 PPM 16MB (

	NIC Cards for Laptops/Jet Direct Printer 300X Offi

	Pinnacle Database Programming-Estimating Departm

	Vertex Inc. (Quantum for Sales Tax)

	 

	Scantron

	 

	Oracle ERP System

	HP 8000 Laser Printer

	 

	HP 4050 N

	 

	Sigma Website Development

	Citrix Server (Licenses, Metaframe 1.8, Install &

	HP Laser Jet 8000DN Printer

	Etherlink 10/100 PXCI NIC for PC Complete PC Manag

	174224-B21 Compaq 128 MB SDRAM DIMM 133 MHZ Deskpr

	Infocus Projector IF193340 LP340V DLP Projector

	Powerpoint Digital System Copier

	HP Color Laserjet 8550 DN

	National Data for Runways & Bridges Licenses-FW

	 

	IF193340 Infocus LP34OV DLP Projector

	Licenses for Microsoft Office, Autocad, Windows Sr

	 

	HP Laser Jet 5000 4mb Printer (iv at DSB)

	Plantmerics Software ABZ9358PLTM2100ENE

	 

	HPJ4111A HP Procurve 8 Port

	Office 2000 Pro Full MS521833

	Netraspect Inc

	Oracle Discoverer Desktop Edition-28 Licenses

	EN362UT#ABA HP INTEL CORE 2 DUO NC6400

	 

	APC Smart UPS

	 

	AG554A SMARTBUY AIO600 3TB-STORAGE

	 

	Axxess DKSC-16 Upgrade

	 

	Dell PE6800 3.0GHz/2X2MB, XEON, 7041, 800FSB Serve

	Dell PV110T, LTO-3, 400/800 GB, EXT-R Tape Drive

	 

	Additional Memory for the Proliant DL380 Servers

	 

	AG052A HP TFT7600 Flat 17” Display w/ Rackmount

	 

	Enterprise Vault-Email Archive System

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	376237-001 HP PROLIANT DL360 G4P XEON SERVER

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	Wireless LAN Controller 2106

	WS-C3560G-24PS CISCO CATALYST 3560G-24PS SWITCH 24

	EN362UT#ABA HP COMPAQ BUSINESS NOTEBOOK

	AG554A HP STORAGE WORKS

	GF21AT#ABA HP COMPAQ 6510B T7100

	Epson GT Flatbed Scanner

	AutoCad Software

	 

	SWF2000 Web Filter Appliance

	 

	AutoCad 2008

	Oracle 11i Upgrade

	Compaq S/N 6X2AKN8ZA22E

	AF001A HP Rack 10642 G2 Pallet Rack

	 

	Diskeeper Software

	AutoCad LT2008 Software

	 

	RM276UT#ABA Promo

	RM254UT#ABA 17.1# HP Compaq Business Notebook

	RT956UT#ABA HP Compaq

	C8547A#ABA HP Color LaserJet Printer

	AutoCad 2008 Software

	HP Workstation XW8600

53

 

	 
	Dataload B&I Reporting (Warnock Tanner)

	 

	HP546405/CPQ107784/WD081821/BLBEHN5152

	Development-Maintenance Database

	UPS System backup battery

	 

	Lab Computer-Princeton Ultra 73E/Compaq Deskpro

	DL125755 fax

	Compaq 36.4 GB SCSI 10000 RPM Server Hard Drives,

	CPI/400-PCI 4 Port /analog Fax Board for Fax Serve

	 

	Compaq Proliant DL380 G2 PIII

	 

	RM306UT#ABA HP Compaq Business Notebook 6710B

	WS-C3560G-48PS-S Cisco Catalyst

	RB452UT#ABA HP Workstation

	Time Clock Secruity System Expansion (3 Readers an

	 

	AutoCad LT2008 Software

	 

	Catalyst 3560 24 Port 10/100/100T POE 4 SFP

	HP Storage Works

	 

	HP Storage Works Tape Drive

	 

	RM298UT#ABA HP Compaq Business Notebook 8710P

54exv10w3

Exhibit 10.3

SECOND AMENDMENT AGREEMENT

     This SECOND AMENDMENT AGREEMENT (this “Amendment”) is made as of the 10th day of
March, 2011 among:

          (a) GIBRALTAR INDUSTRIES, INC., a Delaware corporation (“Gibraltar”);

          (b) GIBRALTAR STEEL CORPORATION OF NEW YORK, a New York corporation (“GSNY” and,
together with Gibraltar, collectively, “Borrowers” and, individually, each a “Borrower”);

          (c) the Lenders, as defined in the Credit Agreement, as hereinafter defined;

          (d) KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book runner and
administrative agent for the Lenders under the Credit Agreement (“Agent”);

          (e) JPMORGAN CHASE BANK, N.A. and BMO HARRIS FINANCING, INC., formerly known as BMO
Capital Markets Financing, Inc., as co-syndication agents; and

          (f) HSBC BANK USA, NATIONAL ASSOCIATION and MANUFACTURERS AND TRADERS TRUST COMPANY, as
co-documentation agents.

     WHEREAS, Borrowers, Agent and the Lenders are parties to that certain Third Amended and
Restated Credit Agreement, dated as of July 24, 2009, that provides, among other things, for loans
and letters of credit aggregating Two Hundred Million Dollars ($200,000,000), all upon certain
terms and conditions (as amended and as the same may from time to time be further amended, restated
or otherwise modified, the “Credit Agreement”);

     WHEREAS, Borrowers, Agent and the Lenders desire to amend the Credit Agreement to modify
certain provisions thereof and add certain provisions thereto;

     WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not
otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

     WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement
revised herein are amended effective as of the date of this Amendment;

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for
other valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Borrowers, Agent and the Lenders agree as follows:

 

 

     1. Amendment to Definitions in the Credit Agreement. Section 1.1 of the Credit
Agreement is hereby amended to delete the definition of “Fixed Charge Coverage Ratio” therefrom and
to insert in place thereof the following:

          “Fixed Charge Coverage Ratio” means, as determined for the most recently completed four
fiscal quarters of Gibraltar, on a Consolidated basis and in accordance with GAAP, the ratio
of (a) (i) Consolidated EBITDA, minus (ii) Consolidated Unfunded Capital Expenditures, minus
(iii) Consolidated Income Tax Expense paid in cash (net of tax refunds received in cash) but
excluding taxes paid in cash that are specifically attributable to the gain from the United
Steel Products and Renown Disposition, minus (iv) Capital Distributions; to (b) Consolidated
Fixed Charges.

     2. Additions to Definitions in the Credit Agreement. Section 1.1 of the Credit
Agreement is hereby amended to add the following new definitions thereto:

          “Renown” means Renown Specialties Company Ltd., a company organized under the law of
Canada.

          “United Steel Products” means United Steel Products Company, Inc., a Minnesota
corporation.

          “United Steel Products and Renown Disposition” means the sale by GSNY of all of its
outstanding equity interests in United Steel Products and Renown pursuant to the United
Steel Products and Renown Disposition Documents.

          “United Steel Products and Renown Disposition Date” means the date that the United
Steel Products and Renown Disposition is consummated, pursuant to the United Steel Products
and Renown Disposition Documents.

          “United Steel Products and Renown Disposition Documents” means the United Steel
Products and Renown Purchase Agreement and each other document executed and delivered in
connection therewith.

          “United Steel Products and Renown Purchase Agreement” means (a) that certain Stock
Purchase Agreement, dated as of March 10, 2011, among GSNY, MiTech Industries, Inc., a
Missouri corporation and MiTech Canada Ltd., a company organized under the law of Canada.

     3. Amendment to Addition of Borrowing Base Company Provisions. Section 2.15 of the
Credit Agreement is hereby amended to delete subsection (a) therefrom and to insert in place
thereof the following:

          (a) such Domestic Subsidiary shall have complied with all requirements of Section 5.20
hereof,

2

 

     4. Addition to Merger and Sale of Asset Covenant Provisions. Section 5.12 of the
Credit Agreement is hereby amended to add the following new subsection (k) at the end thereof:

     (k) if no Default or Event of Default shall have occurred and be continuing or
would result therefrom, GSNY may consummate the United Steel Products and Renown
Disposition, provided that:

     (i) the United Steel Products and Renown Disposition is on an arm’s
length basis and has been approved by the board of directors of GSNY;

     (ii) at least eighty percent (80%) of the consideration for the United
Steel Products and Renown Disposition consists of cash;

     (iii) one hundred percent (100%) of the Net Cash Proceeds from the
United Steel Products and Renown Disposition shall (A) first, if there are
any Revolving Loans outstanding, be applied to the Revolving Loans, with
such payment first to be applied to the outstanding Base Rate Loans and then
to the outstanding Eurodollar Loans, and (B) second, be applied or used for
such purposes as Borrowers deem appropriate (but not inconsistent with this
Agreement); and

     (iv) the United Steel Products and Renown Disposition occurs prior to
April 30, 2011.

     5. Amendment to Schedules After the United Steel Products and Renown Disposition Date.
Upon the acceptance by Agent of the updated Schedules to the Credit Agreement pursuant to Section
7 hereof, the Credit Agreement shall be amended to delete Schedule 2 (Guarantors of
Payment), Schedule 3 (Borrowing Base Companies), Schedule 4 (Real Property),
Schedule 5 (Pledged Securities), Schedule 6.1 (Corporate Existence; Subsidiaries;
Foreign Qualification), Schedule 6.9 (Locations) and Schedule 6.17 (Intellectual
Property) therefrom, and to insert in place thereof, respectively, a new Schedule 2,
Schedule 3, Schedule 4, Schedule 5, Schedule 6.1, Schedule
6.9 and Schedule 6.17.

     6. Closing Deliveries. Concurrently with the execution of this Amendment, Borrowers
shall:

          (a) cause each Guarantor of Payment to execute the attached Guarantor Acknowledgment
and Agreement; and

          (b) pay all legal fees and expenses of Agent in connection with this Amendment and any
other Loan Documents.

     7. Required Deliveries After the United Steel Products and Renown Disposition. Within
twenty (20) days after the United Steel Products and Renown Disposition Date, unless a longer
period is agreed to by Agent in writing, Borrowers shall deliver to Agent the following

3

 

replacement Schedules to the Credit Agreement, in each case, as may be requested by Agent, to be in
form and substance acceptable to Agent and giving effect to the United Steel Products and Renown
Disposition: Schedule 2 (Guarantors of Payment), Schedule 3 (Borrowing Base
Companies), Schedule 4 (Real Property), Schedule 5 (Pledged Securities),
Schedule 6.1 (Corporate Existence; Subsidiaries; Foreign Qualification), Schedule
6.9 (Locations) and Schedule 6.17 (Intellectual Property);

     8. Representations and Warranties. Borrowers hereby represent and warrant to Agent
and the Lenders that (a) Borrowers have the legal power and authority to execute and deliver this
Amendment; (b) the officers executing this Amendment have been duly authorized to execute and
deliver the same and bind Borrowers with respect to the provisions hereof; (c) the execution and
delivery hereof by Borrowers and the performance and observance by Borrowers of the provisions
hereof do not violate or conflict with the Organizational Documents of Borrowers or any law
applicable to Borrowers or result in a breach of any provision of or constitute a default under any
other agreement, instrument or document binding upon or enforceable against Borrowers; (d) no
Default or Event of Default exists, nor will any occur immediately after the execution and delivery
of this Amendment or by the performance or observance of any provision hereof; (e) each of the
representations and warranties contained in the Loan Documents is true and correct in all material
respects as of the date hereof as if made on the date hereof, except to the extent that any such
representation or warranty expressly states that it relates to an earlier date (in which case such
representation or warranty is true and correct in all material respects as of such earlier date);
(f) Borrowers are not aware of any claim or offset against, or defense or counterclaim to,
Borrowers’ obligations or liabilities under the Credit Agreement or any Related Writing; and (g)
this Amendment constitutes a valid and binding obligation of Borrowers in every respect,
enforceable in accordance with its terms.

     9. Waiver and Release. Borrowers, by signing below, hereby waive and release Agent
and each of the Lenders, and their respective directors, officers, employees, attorneys, affiliates
and subsidiaries, from any and all claims, offsets, defenses and counterclaims of which Borrowers
are aware, such waiver and release being with full knowledge and understanding of the circumstances
and effect thereof and after having consulted legal counsel with respect thereto.

     10. References to Credit Agreement and Ratification. Each reference to the Credit
Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be
construed as a reference to the Credit Agreement as amended hereby. Except as herein otherwise
specifically provided, all terms and provisions of the Credit Agreement are confirmed and ratified
and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan
Document.

     11. Counterparts. This Amendment may be executed in any number of counterparts, by
different parties hereto in separate counterparts and by facsimile signature, each of which, when
so executed and delivered, shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.

4

 

     12. Headings. The headings, captions and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment.

     13. Severability. Any term or provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the term or provision so held to be
invalid or unenforceable.

     14. Governing Law. The rights and obligations of all parties hereto shall be governed
by the laws of the State of New York, without regard to principles of conflicts of laws.

[Remainder of page intentionally left blank.]

5

 

     JURY TRIAL WAIVER. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date
first set forth above.

	 	 	 	 	 
	 	GIBRALTAR INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GIBRALTAR STEEL CORPORATION OF

NEW YORK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

as Agent and as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MANUFACTURERS AND TRADERS

TRUST COMPANY,

as a Co-Documentation Agent and a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page 1 of 3 to

Second Amendment Agreement

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Co-Syndication Agent and a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BMO HARRIS FINANCING, INC.,

as a Co-Syndication Agent and a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HARRIS N.A.,

as a Fronting Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HSCB BANK USA, NATIONAL ASSOCIATION,

as a Co-Documentation Agent and a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as successor to National City Bank, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page 2 of 3 to

Second Amendment Agreement

 

	 	 	 	 	 
	 	US BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	RBS CITIZENS, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIRST NIAGARA BANK, N.A.,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMERICA BANK,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page 3 of 3 to

Second Amendment Agreement

 

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

     The undersigned consent and agree to and acknowledge the terms of the foregoing Second
Amendment Agreement, dated as of March 10, 2011. The undersigned further agree that the
obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned are
hereby ratified and shall remain in full force and effect and be unaffected hereby.

     The undersigned hereby waive and release Agent and the Lenders and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets,
defenses and counterclaims of any kind or nature, absolute and contingent, of which the undersigned
are aware or should be aware, such waiver and release being with full knowledge and understanding
of the circumstances and effect thereof and after having consulted legal counsel with respect
thereto.

     JURY TRIAL WAIVER. THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWERS, AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF,
IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

	 	 	 	 	 	 	 

	AIR VENT INC.	 	ALABAMA METAL INDUSTRIES CORPORATION
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	APPLETON SUPPLY CO., INC.	 	UNITED STEEL PRODUCTS COMPANY, INC.
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	CONSTRUCTION METALS, LLC	 	DIAMOND PERFORATED METALS, INC.
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 

 

	 	 	 	 	 	 	 

	DRAMEX INTERNATIONAL INC	 	FLORENCE CORPORATION
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	FLORENCE CORPORATION OF KANSAS	 	GIBRALTAR INTERNATIONAL, INC.
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	GIBRALTAR STRIP STEEL, INC.	 	NOLL/NORWESCO, LLC
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	SEA SAFE, INC.	 	SOLAR GROUP, INC.
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:	 
	 	 	 	 	 	 	 
	SOLAR OF MICHIGAN, INC.	 	SOUTHEASTERN METALS MANUFACTURING COMPANY, INC.
	 
	By: 	 	 	By: 	 
	 	Name: 	 	 	 	Name: 	 
	 	Title:	 	 	 	Title:

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