Document:

exhibit_10-57.htm

    
      EXHIBIT
10.57
 

      
        	
                 

                 

                 

                STOCK
      PURCHASE AGREEMENT

                 

                by
      and among

                 

                AUTOMOTIVE
      SPECIALTY ACCESSORIES AND PARTS, INC.,

                 

                2000
      RIVERSIDE CAPITAL APPRECIATION FUND, L.P.,

                 

                THE
      OTHER STOCKHOLDERS OF

                AUTOMOTIVE
      SPECIALTY ACCESSORIES AND PARTS, INC.

                LISTED
      ON EXHIBITS A-1 AND A-2 HERETO

                 

                and

                 

                GO
      FIDO, INC.

                 

                 

                 

                 

                Dated
      as of August 2, 2010

                 

                 

                 

              

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

      Page

      
        	
                ARTICLE I

              	
                DEFINITIONS 

              	
                1

              

      

      
        	
                ARTICLE
      II

              	
                SALE
      AND PURCHASE 

              	
                7

              

      

      
        	
                 
      

              	
                2.1

              	
                Sale
      and Purchase of Shares 

              	
                7

              

      

      
        	
                 
      

              	
                2.2

              	
                Purchase
      Price 

              	
                7

              

      

      
        	
                 
      

              	
                2.3

              	
                Cash
      Adjustment 

              	
                9

              

      

      
        	
                 
      

              	
                2.4

              	
                Working
      Capital Adjustment 

              	
                11

              

      

      
        	
                ARTICLE
      III

              	
                CLOSING
      AND DELIVERIES

              	
                13

              

      

      
        	
                 
      

              	
                3.1

              	
                Closing 

              	
                13

              

      

      
        	
                 
      

              	
                3.2

              	
                Deliveries
      by the Sellers 

              	
                13

              

      

      
        	
                 
      

              	
                3.3

              	
                Deliveries
      by Buyer 

              	
                14

              

      

      
        	
                ARTICLE
      IV

              	
                REPRESENTATIONS
      AND WARRANTIES RELATING TO THE COMPANY 

              	
                15

              

      

      
        	
                 
      

              	
                4.1

              	
                Capitalization
      and Title 

              	
                15

              

      

      
        	
                 
      

              	
                4.2

              	
                Subsidiaries 

              	
                15

              

      

      
        	
                 
      

              	
                4.3

              	
                No
      Conflict; Required Filings and Consents 

              	
                16

              

      

      
        	
                 
      

              	
                4.4

              	
                Financial
      Statements 

              	
                16

              

      

      
        	
                 
      

              	
                4.5

              	
                No
      Brokers 

              	
                17

              

      

      
        	
                ARTICLE
      V

              	
                REPRESENTATIONS
      AND WARRANTIES OF THE SELLERS 

              	
                17

              

      

      
        	
                 
      

              	
                5.1

              	
                Authority,
      Validity and Effect 

              	
                17

              

      

      
        	
                 
      

              	
                5.2

              	
                Title 

              	
                17

              

      

      
        	
                 
      

              	
                5.3

              	
                Absence
      of Conflicts 

              	
                17

              

      

      
        	
                 
      

              	
                5.4

              	
                Litigation 

              	
                17

              

      

      
        	
                ARTICLE
      VI

              	
                REPRESENTATIONS
      AND WARRANTIES OF BUYER 

              	
                18

              

      

      
        	
                 
      

              	
                6.1

              	
                Investment
      Intent 

              	
                18

              

      

      
        	
                 
      

              	
                6.2

              	
                Authority,
      Validity and Effect 

              	
                18

              

      

      
        	
                 
      

              	
                6.3

              	
                No
      Conflict; Required Consents 

              	
                18

              

      

      
        	
                 
      

              	
                6.4

              	
                No
      Financing 

              	
                18

              

      

      
        	
                 
      

              	
                6.5

              	
                No
      Brokers 

              	
                18

              

      

      
        	
                ARTICLE
      VII

              	
                COVENANTS
      AND AGREEMENTS 

              	
                19

              

      

      
        	
                 
      

              	
                7.1

              	
                Interim
      Operations of the Company 

              	
                19

              

      

      
        	
                 
      

              	
                7.2

              	
                Reasonable
      Access; Confidentiality 

              	
                20

              

      

      
        	
                 
      

              	
                7.3

              	
                Publicity 

              	
                21

              

      

      
        	
                 
      

              	
                7.4

              	
                Records 

              	
                21

              

      

      
        	
                 
      

              	
                7.5

              	
                Indemnification 

              	
                21

              

      

      
        	
                 
      

              	
                7.6

              	
                Update
      and Disclosure 

              	
                21

              

      

      
        	
                 
      

              	
                7.7

              	
                Efforts;
      Cooperation 

              	
                22

              

      

      
        	
                 
      

              	
                7.8

              	
                Post
      Closing Cooperation 

              	
                22

              

      

      
        	
                 
      

              	
                7.9

              	
                No
      Negotiation 

              	
                22

              

      

      
        	
                 
      

              	
                7.10

              	
                Contract
      Termination 

              	
                23

              

      

      
        	
                 
      

              	
                7.11

              	
                Transfer
      Taxes 

              	
                23

              

      

      
        	
                ARTICLE
      VIII

              	
                CONDITIONS
      TO CLOSING 

              	
                23

              

      

      
        	
                 
      

              	
                8.1

              	
                Conditions
      to Obligations of the Sellers 

              	
                23

              

      

      
        	
                 
      

              	
                8.2

              	
                Conditions
      to Obligations of Buyer 

              	
                24

              

      

      
        	
                 
      

              	
                8.3

              	
                Frustration
      of Closing Conditions 

              	
                25

              

      

      
        	
                ARTICLE
      IX

              	
                TERMINATION
      OF AGREEMENT 

              	
                25

              

      

      
        	
                 
      

              	
                9.1

              	
                Termination 

              	
                25

              

      

      
        	
                 
      

              	
                9.2

              	
                Effect
      of Termination 

              	
                26

              

      

      
        	
                 
      

              	
                9.3

              	
                Treatment
      of Deposit 

              	
                26

              

      

      
        	
                ARTICLE
      X

              	
                REMEDIES 

              	
                26

              

      

      
        	
                 
      

              	
                10.1

              	
                Indemnification
      by Buyer 

              	
                26

              

      

      
        	
                 
      

              	
                10.2

              	
                Indemnification
      by the Preferred Stockholders 

              	
                27

              

      

      
        	
                 
      

              	
                10.3

              	
                Survival 

              	
                27

              

      

      
        	
                 
      

              	
                10.4

              	
                Exclusive
      Remedy 

              	
                27

              

      

      
        	
                 
      

              	
                10.5

              	
                No
      Implied Representations 

              	
                28

              

      

      
        	
                ARTICLE
      XI

              	
                MISCELLANEOUS
      AND GENERAL 

              	
                28

              

      

      
        	
                 
      

              	
                11.1

              	
                Seller
      Representative 

              	
                28

              

      

      
        	
                 
      

              	
                11.2

              	
                Expenses 

              	
                29

              

      

      
        	
                 
      

              	
                11.3

              	
                Successors
      and Assigns 

              	
                29

              

      

      
        	
                 
      

              	
                11.4

              	
                Third
      Party Beneficiaries 

              	
                29

              

      

      
        	
                 
      

              	
                11.5

              	
                Further
      Assurances 

              	
                30

              

      

      
        	
                 
      

              	
                11.6

              	
                Notices 

              	
                30

              

      

      
        	
                 
      

              	
                11.7

              	
                Complete
      Agreement 

              	
                31

              

      

      
        	
                 
      

              	
                11.8

              	
                Captions 

              	
                31

              

      

      
        	
                 
      

              	
                11.9

              	
                Amendment 

              	
                31

              

      

      
        	
                 
      

              	
                11.10

              	
                Waiver 

              	
                31

              

      

      
        	
                 
      

              	
                11.11

              	
                Conflict
      of Interest 

              	
                31

              

      

      
        	
                 
      

              	
                11.12

              	
                Governing
      Law 

              	
                31

              

      

      
        	
                 
      

              	
                11.13

              	
                Severability 

              	
                32

              

      

      
        	
                 
      

              	
                11.14

              	
                Counterparts;
      Electronic Transmission 

              	
                32

              

      

      
        	
                 
      

              	
                11.15

              	
                Attorneys’
      Fees 

              	
                32

              

      

      
        	
                 
      

              	
                11.16

              	
                Construction 

              	
                32

              

        
          
             

          

          
             

            
              

            

          

          
             

          

        

SCHEDULES:

      
         

      

      
        	 Schedule
      2.4(a)	 	Working Capital
      Principles
	 Schedule
      4.3(a)	 	No
  Conflict
	 Schedule
      7.1 	 	Interim Operations
      of the Company
	 Schedule
      7.10	 	Contract
      Termination

      

       

      

      EXHIBITS:

      
         

      

      
        	 Exhibit
      A-1  	 	Preferred
      Stockholders
	 Exhibit
      A-2 	 	Common
      Stockholders
	 Exhibit
      B    	 	Optionholders
	 Exhibit
      C   	 	Warrantholders
	 Exhibit
      D  	 	Form of General
      Release

      

       

      
        
          
                                                                            

          

           

        

        
           

          
            

          

        

        
           

        

      

      STOCK PURCHASE
AGREEMENT

       

             THIS STOCK
PURCHASE AGREEMENT (this “Agreement”),
is dated as of August 2, 2010, by and among Automotive Specialty Accessories and
Parts, Inc., a Delaware corporation (the “Company”),
2000 Riverside Capital Appreciation Fund, L.P., a Delaware limited partnership
(the “Seller
Representative”), the other stockholders of the Company, listed on Exhibits
A-1 and A-2
attached hereto (collectively with the Seller Representative, the “Sellers”)
and Go Fido, Inc., a Delaware corporation (“Buyer”).

       

      RECITALS

       

      A.           The
Sellers are the record owners of 325,700 issued and outstanding
shares of common stock, par value $.01 per share (the “Common
Stock”) of the Company and 188,647.14730 issued and outstanding
shares of Series A preferred stock, par value $.01 per share (the “Preferred
Stock”) of the Company.

       

      B.           The
Sellers desire to sell to Buyer, and Buyer desires to purchase from the Sellers,
all of the Shares held by the Sellers upon the terms set forth in this
Agreement.

       

      C.           Simultaneously
herewith, Buyer’s parent, U.S. Auto Parts Network, Inc., a Delaware corporation,
has entered into a guarantee of Buyer’s obligations under this
Agreement.

       

      D.           On
the date hereof, Buyer is making a good faith deposit in the Company equal to
$1,000,000 (collectively with any interest thereon, the “Deposit”).  The
Deposit shall be held in escrow by the Escrow Agent pursuant to the terms of the
Deposit Escrow Agreement.

       

      NOW,
THEREFORE, in
consideration of the foregoing and the respective representations, warranties,
covenants and agreements set forth herein, and subject to the terms and
conditions set forth herein, the Sellers and Buyer hereby agree as
follows:

       

      ARTICLE
I

      DEFINITIONS

      For
purposes of this Agreement:

       

      “Acquisition
Transaction” means any transaction involving:

       

      (a)           the
sale, license or disposition of all or a material portion of the businesses or
assets of the Company or either of the Subsidiaries;

       

      (b)           the
issuance, disposition or acquisition of (i) any outstanding capital stock or
other equity security of the Company or either of the Subsidiaries, (ii) any
option, call, warrant or right (whether or not immediately exercisable) to
acquire any of the capital stock or other equity security of the Company or
either of the Subsidiaries, or (iii) any security, instrument or obligation that
is or may become convertible into or exchangeable for any capital stock or other
equity security of the Company or either of the Subsidiaries; or

       

      (c)           any
merger, consolidation, business combination, reorganization or similar
transaction involving the Company or either of the Subsidiaries.

       

      “Action”
means any suit, legal proceeding (including any civil, criminal, investigative
or appellate proceeding), hearing, audit, litigation, administrative enforcement
proceeding or arbitration proceeding before any Governmental Authority or any
arbitrator or arbitration panel.

       

      “Advisory
Agreement” means the Advisory Agreement, dated June 25, 2002, by and
between Riverside Partners, L.L.C. and Whitney.

       

      “Affiliate”
means with respect to any Person, any Person that directly or indirectly
controls, is controlled by or is under common control with such
Person.

       

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

       

      “Arbitration
Firm” has the meaning set forth in Section 2.3(b).

       

      “Audited Financial
Statements” has the meaning set forth in Section ‎4.4(a).

       

      “Base Purchase
Price” means (a) $27,500,000 if the Closing occurs at or prior to 11:59
p.m. ET on August 12, 2010; (b) $28,000,000 if the Closing occurs after 11:59
p.m. ET on August 12, 2010, but at or prior to 11:59 p.m. ET on August 19, 2010;
(c) $28,500,000 if the Closing occurs after 11:59 p.m. ET  on August
19, 2010, but at or prior to 11:59 p.m. ET on August 26, 2010 and (d)
$29,000,000 if the Closing occurs after 11:59 p.m. ET on August 26,
2010.

       

      “Bonus
Release” has the meaning set forth in Section
2.2(b).

       

      “Business Day” means
any day other than a Saturday, a Sunday or any other day on which the Federal
Reserve Bank of New York is closed.

       

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

       

      “Buyer
Indemnitees” has the meaning set forth in Section 10.2(a).

       

      “Cash and Cash Equivalents” means all cash and cash equivalent
assets (including marketable securities) of the Company and the Subsidiaries on
a consolidated basis determined in accordance with GAAP.

       

      “Cash Statement” has the meaning set forth in Section ‎2.3(a).

       

      “Closing” has the meaning set forth in Section ‎3.1.

       

      “Closing Date” has the meaning set forth in Section ‎3.1.

       

      “Code” means the Internal Revenue Code of 1986, as
amended.

       

      “Common Shares” means all of the issued and outstanding shares
of Common Stock.

       

      “Common Stock” has the meaning set forth in the
recitals.

       

      “Common Stock Amount” has the meaning set forth in Section 2.2(c).

       

      “Common Stockholder” means each holder of Common
Stock.

       

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

       

      “Company Debt” means all amounts owed by the Company or the
Subsidiaries at the Closing pursuant to the Advisory Agreement, the Senior
Credit Agreement and the Milos Note.

       

      “Company’s Knowledge” means the actual knowledge of Thomas
West, Jerome Mascitti, Christopher Krohn, Geoff Robertson, Jim Nelson and Vivian
Root after reasonable inquiry.

       

      “Company Stockholders Agreement” has the meaning set forth in Section 3.2(m).

       

      “Confidentiality Agreement” has the meaning set forth in Section ‎7.2(b).

       

      “Consideration Spreadsheet” has the meaning set forth in Section 2.2(f)(i).

       

      “Consent” means any consent, approval, authorization,
qualification, waiver or registration required to be obtained from, filed with
or delivered to any Person in connection with the consummation of the
transactions contemplated hereby.

       

      “Contracts” means all contracts (whether oral or written),
leases, licenses, note or other debenture, guaranty, indemnity, commitment and
other agreements (including any amendments and other modifications thereto) to
which the Company or a Subsidiary is a party, other than purchase orders entered
into in the ordinary course of business.

       

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

       

      “Deposit Escrow Agreement” means the deposit escrow agreement,
dated as of the date hereof, among the Escrow Agent, the Seller Representative
and Buyer.

       

      “Escrow Agent” means KeyBank, N.A.

       

      “Estimated Cash” means the Company’s good faith estimate of
the Cash and Cash Equivalents as of the close of business on the day immediately
preceding the Closing Date.

       

      “Estimated Working Capital” has the meaning set forth in Section ‎2.4(a).

       

      “Final Cash” has the meaning set forth in Section ‎2.3(a).

       

      “Final Working Capital” has the meaning set forth in Section ‎2.4(b).

       

      “GAAP” means United States generally accepted accounting
principles applied on a basis consistent with the preparation of the Audited
Financial Statements.

       

      “General Enforceability Exceptions” means (a) applicable
bankruptcy, reorganization, insolvency, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally from time to time in
effect and (b) the availability of equitable remedies (regardless of
whether enforceability is considered in a proceeding at law or in
equity).

       

      “General Release” means a general release substantially in the
form of Exhibit D.

       

      “Governmental Authority” means any government or political
subdivision, whether federal, state, local, municipal or foreign, or any agency
of any such government or political subdivision, any federal, state, local or
foreign court or a Person exercising, or entitled to exercise, any executive,
legislative, judicial, administrative, regulatory, police or taxing
authority.

       

      “Initial Purchase Price” has the meaning set forth in Section ‎2.2(a).

       

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

       

      “Law” means
any law, statute, code, ordinance, regulation or rule of any Governmental
Authority.

       

      “Liens”
means any mortgage, lien, security interest, option, pledge, hypothecation,
charge, equitable interest, right of first refusal, preemptive right, community
property interest, defect, impairment, imperfection of title, restriction or
other similar encumbrance.

       

      “Losses”
has the meaning set forth in Section
10.1.

       

      “Management
Bonuses” means the bonuses, if
any, paid by the Company or any Subsidiary to employees of the Company or any
Subsidiary in connection with the Closing.

       

      “Material Adverse
Effect” means any change, occurrence, event or development, individually
or in aggregate, that has a material adverse effect on the business, results of
operations or financial condition of the Company and the Subsidiaries, taken as
a whole; but, in each case, none of the following, either alone or in
combination, shall be deemed to constitute, or be taken into account in
determining whether there has been, such a material adverse
effect:  any change, occurrence, event or development (a) resulting
from general economic, political, financial, banking, credit or securities
market conditions, including any disruption thereof and any interest or exchange
rate fluctuations as long as such conditions do not have a materially
disproportionate impact on such Person; (b) resulting from the announcement
or performance of, or compliance with, this Agreement or the transactions
contemplated hereby, (c) resulting from any changes in applicable Laws or
accounting rules as long as such changes do not have a materially
disproportionate impact on such Person, (d) resulting from natural
disasters, acts of terrorism or war (whether or not declared), or epidemics or
pandemics as long as such events do not have a materially disproportionate
impact on such Person or (e) arising out of any action taken or omitted to
be taken at the written request of the other party.

       

      “Milos
Note” means that certain Second Amended and Restated Subordinated
Promissory Note, dated May 14, 2009, by Whitney in favor of John
Milos.

       

      “Net Working
Capital” means, on a consolidated basis, (a) the sum of the Company’s and
the Subsidiaries’ (i) receivables, net of reserve, (ii) inventory, (iii) prepaid
expenses and (iv) deferred catalog expense (excluding Cash and Cash
Equivalents) minus (b) the sum of the Company’s and the Subsidiaries’ (i)
accounts payable, (ii) accrued liabilities, and (iii) other current liabilities
(excluding Company Debt, Management Bonuses and Selling Expenses), calculated in
accordance with the principles of preparation and the trial balances set forth
on Schedule
2.4(a).

       

       “Option
Agreements” means the option agreements between the Company and the
Optionholders.

       

      “Option
Amount” has the meaning set forth in Section
2.2(e)(i).

       

      “Optionholders”
means those individuals listed on Exhibit
B attached hereto.

       

      “Options”
means options to purchase shares of Common Stock issued pursuant to the
Company’s 2002 Equity and Performance Incentive Plan, as amended.

       

      “Order”
means any order, judgment, ruling, injunction, assessment, award, decree or writ
of any Governmental Authority.

       

      “Payoff
Letters” has the meaning set forth in Section
2.2(b).

       

      “Permitted
Liens” means (a) Liens arising under or related to the Company Debt,
(b) Liens for Taxes, assessments and other charges of Governmental
Authorities not yet due and payable or being contested in good faith by
appropriate proceedings for which collection or enforcement against the property
is stayed, (c) mechanics’, workmens’, repairmen’s, warehousemen’s, carriers’ or
other like Liens arising or incurred in the ordinary course of business or by
operation of Law if the underlying obligations are not delinquent, and (d) with
respect to the Real Property, (i) zoning, building and other similar
restrictions or (ii) imperfections in title; provided, that none
of the foregoing described in this clause (d) will individually or in the
aggregate impair the continued use and operation of the property to which they
relate in the business of the Company or any Subsidiary as presently
conducted.

       

      “Person”
means any individual, sole proprietorship, partnership, corporation, limited
liability company, joint venture, unincorporated society or association, trust
or other legal entity or Governmental Authority.

       

      “Preferred
Shares” means all of the issued and outstanding shares of Preferred
Stock.

       

      “Preferred
Stock” has the meaning set forth in the recitals.

       

      “Preferred
Stockholder” means each holder of Preferred Stock.

       

      “Purchase
Price” has the meaning set forth in Section ‎2.2(a).

       

      “Real
Property” means all the Company’s and the Subsidiaries’ real property and
interest in real property, leaseholds and subleaseholds, all buildings and other
improvements thereon and other real property interests currently used in the
business or operations of the Company and the Subsidiaries.

       

      “Representative
Fund Amount” means $750,000.

       

       “Securities
Act” means the Securities Act of 1933, as amended.

       

      “Seller
Indemnitees” has the meaning set forth in Section
10.1.

       

      “Seller
Representative” has the meaning set forth in the preamble.

       

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

       

      “Selling
Expenses” means all of the fees and expenses incurred by the Sellers
and/or the Company or the Subsidiaries in connection with the consummation of
the transactions contemplated hereby.

       

      “Senior Credit
Agreement” means the Revolving Credit, Term Loan, Guaranty and Security
Agreement, dated as of May 14, 2009 (as has been amended, supplemented, restated
or otherwise modified from time-to-time), by and among the Company, the
Subsidiaries, the financial institutions party thereto and PNC Bank, National
Association, as agent.

       

      “Settlement
Amounts” has the meaning set forth in Section 2.2(b).

       

      “Shares”
means, collectively, the Common Shares and the Preferred Shares.

       

      “Subsidiaries”
means, collectively, Whitney and Value Solutions, and each individually is a
“Subsidiary”.

       

      “Subsidiary
Shares” means, collectively, the Whitney Shares and the Value Solutions
Shares.

       

      “Target Working
Capital Range” means a range between negative $7,250,918 and negative
$11,250,918.

       

      “Tax” means
(a) any net income, alternative or add-on minimum tax, gross income, gross
receipts, sales, use, escheat, ad valorem, value added, transfer, franchise,
profits, license, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, environmental or windfall profit tax, custom,
duty or other tax, similar governmental fee or other similar assessment or
similar charge, together with any interest, penalties, additions to tax or
additional amounts imposed by any Taxing Authority, (b) any liability for the
payment of any amounts of the type described in clause (a) of this sentence as a
result of being a member of an affiliated, consolidated, combined, unitary or
aggregate group for any taxable period, and (c) any liability for the payment of
any amounts of the type described in clause (a) or (b) of this sentence as a
result of being a transferee of or successor to any Person or as a result of any
express or implied obligation to assume such Taxes or to indemnify any other
Person.

       

      “Tax
Returns” means all Tax returns, statements, reports, information returns,
and forms required to be filed with any Taxing Authority.

       

      “Taxing Authority”
means any Governmental Authority responsible for the administration or
imposition of any Tax.

       

      “Termination
Date” has the meaning set forth in Section ‎9.1(b).

       

       “Value Solutions” means Value Solutions, Inc., a Delaware
corporation.

       

      “Value Solutions
Shares” has the meaning set forth in Section
4.2(c).

       

      “Warrant
Amount” has the meaning set forth in Section
2.2(e)(ii).

       

      “Warrantholders”
those parties listed on Exhibit
C attached hereto.

       

      “Warrants”
means warrants to purchase shares of Common Stock pursuant to those certain
warrants dated December 30, 2008.

       

      “Whitney”
means Whitney Automotive Group, Inc., a Delaware corporation.

       

      “Whitney
Shares” has the meaning set forth in Section
4.2(b).

       

      “Working Capital
Overage” has the meaning set forth in Section ‎2.4(a).

       

      “Working Capital
Statement” has the meaning set forth in Section ‎2.4(b).

       

      “Working Capital Underage” has the meaning set forth in Section ‎2.4(a).

       

      ARTICLE II

      SALE
AND PURCHASE

       

      2.1 Sale and
Purchase of Shares.  At the Closing (a) the Sellers shall sell,
assign and transfer to Buyer all of the Shares, free and clear of all Liens and
(b) Buyer shall pay and deliver, or cause to be paid and delivered, the
Purchase Price to, or for the benefit of, the Sellers and take the other actions
described in this Article
II.

       

      
        2.2 Purchase
Price.

        
           

          (a) Subject
to the adjustments set forth in Section ‎2.3 and Section
2.4, in full consideration for the transfer of the Preferred Shares,
Buyer shall pay or cause to be paid to, or for the benefit of, the Preferred
Stockholders at the Closing an aggregate amount equal to the Base Purchase Price
plus the
Estimated Cash minus:

           

                  (i) the
aggregate amount of Company Debt outstanding immediately prior to the
Closing;

           

                  (ii) the
Common Stock Amount,

           

                  (iii) the
Option Amount;

             

                  (iv) the
Warrant Amount;

           

                  (v) the
Selling Expenses;

           

                  (vi) the
Management Bonuses;

           

                  (vii) the
Deposit; and

           

                  (viii) the
Representative Fund Amount (such
amount, the “Initial Purchase
Price”), increased by (x) any Working
Capital Overage or decreased by (y) any Working
Capital Underage (the result of such calculation, as adjusted, the “Purchase
Price”).

           

          (b) At the
Closing, Buyer shall (A) on behalf of the Company and the Subsidiaries,
cause the Company Debt outstanding immediately prior to the Closing to be repaid
in full to the party or parties entitled thereto pursuant to instructions
delivered by the Seller Representative to Buyer at least  two (2)
Business Days prior to the Closing and Buyer shall receive a payoff letter, in a
form reasonably acceptable to Buyer, from each holder of Company Debt (the
“Payoff
Letters”), (B) on behalf of the Sellers, the Company or any
Subsidiary, pay the Selling Expenses to the Persons entitled thereto pursuant to
the invoices and payoff letters delivered to Buyer pursuant to Section
3.2(d), (iii) on behalf of the Company and the Subsidiaries, pay the
Management Bonuses, and Buyer shall receive a general release, in a form
reasonably acceptable to Buyer, from each recipient of a Management Bonus
(“Bonus
Release”), (iv) pay the Representative Fund Amount to the Seller
Representative pursuant to instructions delivered by the Seller Representative
to Buyer at least two (2) Business Days prior to the Closing, and (v) pay the
Escrow Amount to the Escrow Agent (collectively with the Common Stock Amount,
the “Settlement
Amounts”).

           

          (c) At the
Closing, in full consideration for the surrender of the Common Stock held by the
Common Stockholders, Buyer shall pay or cause to be paid to each Common
Stockholder an amount equal to One Dollar ($1.00) (such amount, in the
aggregate, the “Common Stock
Amount”), payable in cash.  Each Common Stockholder that does
not own Preferred Stock acknowledges and understands that the Common Stock
Amount is the only consideration such Common Stockholder is entitled to under
this Agreement.  No Common Stockholder (other than those Common
Stockholders who also own Preferred Stock) shall have any liability pursuant to
this Agreement other than for breaches of the representations made by such
Common Stockholder in Article
V, pursuant to the limitations set forth in this Agreement.

           

          (d) In full
consideration for the Preferred Stock held by the Preferred Stockholders, at the
Closing, Buyer shall pay or cause to be paid to each Preferred Stockholder, an
amount equal to such Preferred Stockholder’s pro-rata portion of the Purchase
Price in accordance with the percentages set forth on Exhibit
A-1, payable in cash by bank wire transfer of immediately available funds
to an account or accounts designated in writing by the applicable Preferred
Stockholder at least two (2) Business Days prior to the Closing.

           

          (e) Treatment of Options and
Warrants.

           

                 (i) At the
Closing, in full consideration for the surrender of the Options held by the
Optionholders,
Buyer shall pay or cause to be paid to each Optionholder an amount equal to One
Dollar ($1.00) (such amount, in the aggregate, the “Option
Amount”), payable in cash.  Prior
to the Closing the Company shall take all actions required to cancel each
outstanding Option effective immediately prior to the Closing without any right
to receive consideration therefore except as set forth in this Section
2.2(e)(i) and the Company shall deliver to Buyer evidence of such
cancellation in a form reasonably acceptable to Buyer.

           

                 (ii) At the
Closing, in full consideration for the surrender of the Warrants held by the
Warrantholders,
Buyer shall pay or cause to be paid to each Warrantholder an amount equal to One
Dollar ($1.00) (such amount, in the aggregate, the “Warrant
Amount”), payable in cash.  Each
Warrantholder acknowledges and understands that the Warrant Amount is the only
consideration such Warrantholder is entitled to under this
Agreement.  Prior to the Closing the Company shall take all actions
required to cancel each outstanding Warrant effective immediately prior to the
Closing without any right to receive consideration therefore except as set forth
in this Section
2.2(e)(ii) and the Company shall deliver to Buyer evidence of such
cancellation in a form reasonably acceptable to Buyer.

           

          (f) Consideration
Spreadsheet.

           

                 (i) The
Company shall deliver a spreadsheet (the “Consideration
Spreadsheet”) to Buyer at least two (2) Business Days prior to Closing
accompanied by a certificate of the Company’s chief financial officer attesting
to the Consideration Spreadsheet’s accuracy.  The Consideration
Spreadsheet shall set forth (A) the name and address of, and wire instructions
for, each Preferred Stockholder, (B) the number of Shares held by each Preferred
Stockholder immediately prior to the Closing, (C) the name and address of, and
wire instructions for, each Person that shall receive a Settlement Amount, (D)
the  calculation of the Purchase Price and the aggregate portion of
the Purchase Price that each Preferred Stockholder is entitled to receive with
respect to such Shares in accordance with Section
2.2, and (F) the percentage of adjustment payments made to, or payable
by, the Preferred Stockholders pursuant to Sections
2.3 or 2.4.  The
Company shall make the work papers and back-up materials used in preparing the
Consideration Spreadsheet available to Buyer and its
representatives.

           

                 (ii) Buyer
shall be entitled to rely conclusively on the information set forth in the
Consideration Spreadsheet with respect to distribution of the Purchase Price
(including the Settlement Amounts) and any adjustments made in accordance with
Sections
2.3 or 2.4,
and no Person shall have any cause of action against Buyer, the Company, the
Escrow Agent or any of their respective representatives for any action taken in
accordance with and in reliance upon the Consideration Spreadsheet.

           

          2.3 Cash
Adjustment.

           

          (a) Cash
Statement.  Within thirty (30) days after the Closing Date,
Buyer shall cause to be prepared and delivered to the Seller Representative a
statement (the “Cash
Statement”), setting forth the Cash and Cash Equivalents as of the close
of business on the day immediately preceding the Closing Date (the “Final
Cash”).  The Cash Statement is to be prepared in accordance
with GAAP.

           

          (b) Dispute.  Within
ten (10) days following receipt by the Seller Representative of the Cash
Statement, Seller Representative shall deliver written notice to Buyer of any
dispute it has with respect to the preparation or content of the Cash
Statement.  Seller Representative shall not dispute the accounting
principles and adjustments used in preparing the Cash Statement and Final Cash
if such principles and adjustments are consistent with GAAP.  If
Seller Representative does not notify Buyer of a dispute with respect to the
Cash Statement within such ten (10)-day period, such Cash Statement will be
final, conclusive and binding on the parties.  In the event of such
notification of a dispute, Buyer and the Seller Representative shall negotiate
in good faith to resolve such dispute.  If Buyer and the Seller
Representative notwithstanding such good faith effort, fail to resolve such
dispute within thirty (30) days after the Seller Representative advises Buyer of
its objections, then Buyer and the Seller Representative jointly shall engage
PricewaterhouseCoopers or such other
independent accounting firm mutually acceptable to Buyer and the Seller
Representative (the “Arbitration
Firm”) to resolve such dispute.  As promptly as practicable
thereafter, Buyer and the Seller Representative shall each prepare and submit a
presentation to the Arbitration Firm.  As soon as practicable
thereafter, Buyer and the Seller Representative shall cause the Arbitration Firm
to choose one of the parties positions based solely upon the presentations by
Buyer and the Seller Representative.  The party whose position is not
accepted by the Arbitration Firm will be responsible for all of the fees and
expenses of the Arbitration Firm.  All determinations made by the
Arbitration Firm will be final, conclusive and binding on the
parties.

           

          (c) Access.  For
purposes of complying with the terms set forth in this
Section ‎2.3, Buyer and
the Company, on the one hand, and the Seller Representative, on the other hand,
shall cooperate with and make available to each other and their respective
representatives all information, records, data and working papers, and shall
permit access to its facilities and personnel, as may be reasonably required in
connection with the preparation and analysis of the Cash Statement and the
resolution of any disputes thereunder.

           

          (d) Downward Adjustment.  If the Final Cash (as
determined pursuant to Section ‎2.3(b)) is less than Estimated Cash, then the Purchase
Price will be adjusted downward by the amount of such shortfall, and the
Preferred Stockholders shall pay, or the Seller Representative shall pay, or
cause to be paid on behalf of the Preferred Stockholders, in the percentages set
forth on the Consideration Spreadsheet, to Buyer an amount in cash equal to such
shortfall by wire transfer of immediately available funds to an account
designated in writing by Buyer to the Seller Representative prior to the date
such payment is due hereunder.  Such payment is to be made within
three (3) Business Days of the date on which the Final Cash is finally
determined pursuant to Section ‎2.3(b).

           

          (e) Upward Adjustment.  If Final Cash (as finally
determined pursuant to Section ‎2.3(b)) is greater
than Estimated Cash, then the Purchase Price will be adjusted upward by the
amount of such excess, and Buyer shall pay or cause to be paid an amount in cash
equal to such excess to the Preferred Stockholders in the percentages set forth
on the Consideration Spreadsheet.  Any such amounts shall be paid by
Buyer within three (3) Business Days from the date on which the Final Cash is
finally determined pursuant to Section ‎2.3(b) by wire
transfer of immediately available funds to an account or accounts
designated on the Consideration Spreadsheet (or such other account designated in
writing by the Seller Representative to Buyer prior to the date such payment is
due hereunder).

           

          2.4 Working
Capital Adjustment.

           

          (a) Estimated Working
Capital.  Within two (2) Business Days prior to the Closing
Date, the Seller Representative shall prepare and deliver, or cause to be
prepared and delivered, to Buyer a good faith estimate of the Net Working
Capital as of the close of business on the day immediately preceding the Closing
Date prepared in accordance with GAAP (except as set forth on Schedule
2.4(a)) and the principles set forth on Schedule
2.4(a) (such estimate, the “Estimated Working
Capital”).  If the Estimated Working Capital is less than
the bottom of the Target Working Capital Range, the Initial Purchase Price will
be reduced by the amount of such shortfall (the “Working
Capital Underage”), subject to further adjustment as provided in this
Section ‎2.4.  If the Estimated Working Capital is greater than the
top of the Target Working Capital Range, the Initial Purchase Price will be
increased by the amount of such excess (the “Working Capital Overage”), subject to further adjustment as
provided in this Section ‎2.4.  If the Estimated Working Capital is within the Target
Working Capital Range, the Initial Purchase Price will not be adjusted pursuant
to this Section 2.4(a), but will be subject to adjustment as
otherwise provided in this Section 2.4.

           

          (b) Working Capital Statement.  Within sixty (60) days
after the Closing Date, Buyer shall cause to be prepared and delivered to the
Seller Representative a working capital statement (the “Working Capital Statement”), setting forth Net Working
Capital as of the close of business on the day immediately preceding the Closing
Date (the “Final Working Capital”).  The Working Capital
Statement is to be prepared in accordance with GAAP (except as set forth on
Schedule 2.4(a)) and the principles set forth on Schedule 2.4(a).

           

          (c) Dispute.  Within thirty (30) days following receipt
by Buyer of the Working Capital Statement, Seller Representative shall deliver
written notice to Buyer of any dispute it has with respect to the preparation or
content of the Working Capital Statement.  Buyer shall not dispute the
accounting principles and adjustments used in preparing the Working Capital
Statement and Final Working Capital if such principles and adjustments are
consistent with GAAP (except as set forth on Schedule 2.4(a)) and those set forth on Schedule 2.4(a).  If the Seller Representative
does not notify Buyer of a dispute with respect to the Working Capital Statement
within such thirty (30)-day period, such Working Capital Statement will be
final, conclusive and binding on the parties.  In the event of such
notification of a dispute, Buyer and the Seller Representative shall negotiate
in good faith to resolve such dispute.  If Buyer and the Seller
Representative, notwithstanding such good faith effort, fail to resolve such
dispute within thirty (30) days after the Seller Representative advises Buyer of
its objections, then Buyer and the Seller Representative jointly shall engage
the Arbitration Firm.  As promptly as practicable thereafter, Buyer
and the Seller Representative shall each prepare and submit a presentation to
the Arbitration Firm.  As soon as practicable thereafter, Buyer and
the Seller Representative will cause the Arbitration Firm to choose one of the
parties positions based solely upon the presentations by Buyer and the Seller
Representative.  The party whose position is not accepted by the
Arbitration Firm shall be responsible for all of the fees and expenses of the
Arbitration Firm.  All determinations made by the Arbitration Firm
will be final, conclusive and binding on the parties.

           

          (d) Access.  For purposes of complying with the terms
set forth in this Section ‎2.4, Buyer
and the Company, on the one hand, and the Seller Representative, on the other
hand, shall cooperate with and make available to each other and their respective
representatives all information, records, data and working papers, and shall
permit access to its facilities and personnel, as may be reasonably required in
connection with the preparation and analysis of the Working Capital Statement
and the resolution of any disputes thereunder.

           

          (e) Within
two Business Days after the date on which the Final Working Capital is finally
determined pursuant to Section
2.4(c), the Seller Representative and Buyer shall jointly determine the
amount by which the Initial Purchase Price would have been adjusted pursuant to
Section
2.4(a) had the Final Working Capital (as finally determined pursuant to
Section
2.4(c)) been submitted for Estimated Working Capital as of the
Closing.

           

                 (i) If such
substitutions would have resulted in a Purchase Price that is less than the
Purchase Price that was paid on the Closing Date, then the Preferred
Stockholders shall pay, or the Seller Representative shall pay, or cause to be
paid, on behalf of the Preferred Stockholders in the percentages set forth on
the Consideration Spreadsheet, by bank wire transfer of immediately available
funds to an account designated in writing by Buyer, an amount in cash equal to
such shortfall within five (5) Business Days from the date on which Final
Working Capital is finally determined pursuant to Section
2.4(c).

           

                 (ii) If such
substitutions would have resulted in a Purchase Price that is greater than the
Purchase Price that was paid on the Closing Date, then Buyer shall pay, or cause
to be paid, to the Preferred Stockholders in the percentages set forth on the
Consideration Spreadsheet, an amount in cash equal to such
excess.  Such amounts shall be paid by Buyer within five (5) Business
Days from the date on which the Final Working Capital is finally determined
pursuant to Section
2.4(c) by wire transfer of immediately available funds to an account or
accounts designated on the Consideration Spreadsheet (or such other accounts
designated in writing by the Seller Representative to Buyer prior to the date
such payment is due hereunder).

           

                 (iii) If such
substitutions would have resulted in a Purchase Price that is equal to the
Purchase Price that was paid on the Closing Date, there will be no adjustment to
the Purchase Price pursuant to this Section
2.4(e).

           

          (f) Each of
Buyer, the Company or any agent thereof shall be entitled to deduct and withhold
from any consideration payable pursuant to this Agreement to any Seller or other
security holder or former security holder of the Company such amounts as are
required to be deducted or withheld therefrom or in connection therewith under
the Code or any provision of state, local or foreign Tax Law.  To the
extent such amounts are so deducted or withheld, such amounts shall be treated
for all purposes under this Agreement as having been paid to the Person to whom
such amounts would otherwise have been paid.

           

          ARTICLE
III

          CLOSING
AND DELIVERIES

           

          3.1 Closing.  The
closing of the transactions contemplated hereby (the “Closing”)
will take place at the offices of Jones Day, 901 Lakeside Avenue, Cleveland,
Ohio in no event later than the second (2nd)
Business Day following the satisfaction or waiver of each of the conditions set
forth in Article
VIII (other than those conditions that are to be satisfied at the
Closing), or on such other date or at such other time and place as the parties
mutually agree in writing (the “Closing
Date”).  All proceedings to be taken and all documents to be
executed and delivered by all parties at the Closing will be deemed to have been
taken and executed simultaneously and no proceedings will be deemed to have been
taken nor documents executed or delivered until all have been taken, executed
and delivered.  The effective time of the Closing will be on 12:01
a.m. Eastern Time on the Closing Date.

           

          3.2 Deliveries
by the Sellers.  At or prior to the Closing, the Sellers shall
deliver, or cause to be delivered, to Buyer the following items:

           

          (a) The stock
certificates representing the Shares, with duly executed stock powers, in a form
reasonably acceptable to Buyer, attached in proper form for
transfer;

           

          (b) Evidence,
reasonably acceptable to Buyer, of the termination and/or cancellation of each
Option and Warrant as of immediately prior to the Closing;

           

          (c) The
Payoff Letters and any necessary UCC authorizations or other releases as may be
reasonably required to evidence the satisfaction of such Company
Debt;

           

          (d) Invoices
and payoff letters reflecting the Selling Expenses;

           

          (e) The Bonus
Releases;

           

          (f) The
Consideration Spreadsheet and accompanying officer’s certificate;

           

          (g) The
certificate of incorporation of the Company and each of the Subsidiaries
certified as of a recent practicable date by the Secretary of State of
Delaware;

           

          (h) A
certificate of the Secretary of State of Delaware (and from the Secretary of
State from each other foreign jurisdiction in which the Company or the
Subsidiaries are qualified) as to the good standing as of the most recent
practicable date of the Company and the Subsidiaries;

           

          (i) A
certificate of the Secretary of the Company and each Subsidiary, given by him or
her on behalf of the Company and not in his or her individual capacity,
certifying as to the bylaws of the Company and each of the Subsidiaries and the
resolutions of the Board of Directors of the Company authorizing this Agreement
and the transactions contemplated hereby;

           

          (j) A
certificate from an officer of the Company, given by him or her on behalf of the
Company and not in his or her individual capacity, to the effect that the
conditions set forth in Sections ‎8.2(a) and 8.2(b)
have been satisfied;

           

          (k) Written
resignations of board membership and elected offices (but not employment), in a
form reasonably acceptable to Buyer, from each of the directors and officers of
the Company and the Subsidiaries, unless otherwise requested in writing by Buyer
prior to the Closing;

           

          (l) Original
corporate record books and stock record books of the Company and the
Subsidiaries;

           

          (m) Evidence
of the termination of the Stockholders Agreement, dated as of June 25, 2002 (as
amended October 3, 2003 and December 30, 2008), by and among the Company, the
Seller Representative and the other parties thereto (the “Company
Stockholders Agreement”);

           

          (n) Evidence
of the termination of the Advisory Agreement, in a form reasonably acceptable to
Buyer;

           

          (o) A General
Release executed by each of the Sellers and each of the directors and officers
of the Company and the Subsidiaries;

           

          (p) Bank
signatory cards for each of the Company’s and Subsidiaries’ bank
accounts;

           

          (q) A
confidentiality agreement, executed by the Seller Representative, in a form
reasonably acceptable to Buyer;

           

          (r) An
affidavit issued to Buyer by an officer of the Company as required by Treasury
Regulation Section 1.1445-2(c)(3) certifying that the Company has not been a
United States real property holding corporation (as the term is defined in the
Code and the Treasury Regulations promulgated in connection therewith) at any
time during the five (5)-year period ending on the Closing Date in form and
substance reasonably satisfactory to Buyer; and

           

          (s) Evidence,
reasonably acceptable to Buyer, of the termination of the Company’s 401(k)
plans.

           

          3.3 Deliveries
by Buyer.  At the Closing, Buyer shall deliver, or cause to be
delivered, to the Seller Representative the following items:

           

          (a) The
Purchase Price and the Settlement Amounts, in each case, paid in accordance with
Section ‎2.2 to the
Person or Persons entitled thereto;

           

          (b) The certificate of incorporation of Buyer certified as of a recent
practicable date by the Secretary of State of Delaware;

           

          (c) A certificate of the Secretary of State of Delaware as to the good
standing as of a recent practicable date of Buyer in such
jurisdiction;

           

          (d) A certificate of the Secretary of Buyer, given by him or her on
behalf of Buyer and not in his or her individual capacity, certifying as to the
bylaws of Buyer and as to the resolutions of the Board of Directors of Buyer
authorizing this Agreement and the transactions contemplated hereby;
and

           

          (e) A certificate
of an officer of Buyer, given by him or her on behalf of Buyer and not in his or
her individual capacity, to the effect that the conditions set forth in Sections ‎8.1(a) and
8.1(b) have been satisfied.

           

          ARTICLE
IV

          REPRESENTATIONS
AND WARRANTIES RELATING TO THE COMPANY

           

          The
Company and the Sellers severally represent and warrant to Buyer as
follows:

           

          4.1 Capitalization
and Title.  The authorized capital stock of the Company
consists of 1,200,000 shares, of which (a) 200,000 shares are Preferred Stock,
(b) 1,000,000 shares are Common Stock, (c) 188,647.14730 shares of Preferred
Stock are issued and outstanding and (d) 325,700 shares of Common Stock
are issued and outstanding, and each issued and outstanding share of Preferred
Stock and Common Stock is duly authorized, validly issued, fully paid and
nonassessable.  Other than the Warrants and the Options, there are no:
(a) outstanding securities convertible or exchangeable into shares of capital
stock of the Company; (b) options, warrants, calls, subscriptions or other
rights, agreements or commitments obligating the Company to issue, transfer or
sell any shares of its capital stock; or (c) voting trusts or other
agreements or understandings to which the Company is a party or by which the
Company is bound with respect to the voting, transfer or other disposition of
its shares of capital stock other than the Company Stockholders
Agreement.  The Consideration Spreadsheet is accurate and complete in
all respects and accurately sets forth the names, addresses and number of shares
of Preferred Stock held by each Seller and the consideration payable to such
Seller.  Exhibit
B accurately sets forth the number of Options held by each
Optionholder.  Exhibit
C accurately sets forth the number of Warrants held by each
Warrantholder.  To the Company’s Knowledge, there are no conditions or
circumstances that may give rise to or provide a basis for the assertion of a
claim by any Person to the effect that such Person is entitled to acquire or
receive any shares of capital stock of the Company or other securities of the
Company.  All outstanding (i) shares of Common Stock, (ii) Preferred
Stock, (iii) Warrants and (iv) Options have been issued and granted in
compliance with the applicable provisions of all applicable
Laws.  Immediately following the Closing, Buyer shall have god and
marketable title to all of the issued and outstanding capital stock of the
Company free and clear of any Liens.

           

          4.2 Subsidiaries.

           

          (a) Other
than the Subsidiaries, neither the Company nor the Subsidiaries owns
beneficially or otherwise, any shares or securities of, or any direct or
indirect interest of any nature in, any Person.

           

          (b) The
authorized capital stock of Whitney consists of 1,000 shares of common stock,
par value $.01 per share, of which 100 shares are issued and outstanding and are
duly authorized, validly issued, fully paid and nonassessable (the “Whitney
Shares”).

           

          (c) The
authorized capital stock of Value Solutions consists of 100 shares, par value
$.01 per share, of which 10 shares are issued and outstanding and are duly
authorized, validly issued, fully paid and nonassessable (the “Value Solutions
Shares”).

           

          (d) The
Company directly or indirectly owns all issued and outstanding Subsidiary Shares
free and clear of all Liens other than Liens arising under the Senior Credit
Agreement.  There are no authorized or outstanding options, warrants,
calls, subscriptions or other rights relating to the Subsidiary Shares or with
respect to which the Subsidiaries may be obligated to issue or sell any shares
of their capital stock.

           

          4.3 No
Conflict; Required Filings and Consents.

           

          (a) Neither
the execution and delivery of this Agreement by the Sellers or the Company, nor
the consummation by the Sellers of the transactions contemplated hereby, nor
compliance by the Sellers with any of the provisions hereof, will (i) conflict
with or result in a breach of any provisions of the certificate of incorporation
or bylaws of the Company or any Subsidiary, (ii) except as set forth on Schedule
4.3(a),
constitute or result in the breach of any term, condition or provision of, or
constitute a default under, require advance notice of, or give rise to any right
of termination, cancellation, acceleration or any payment with respect to, or
result in the creation or imposition of a Lien upon any property or assets of
the Company or any Subsidiary pursuant to any Contract to which any of them is a
party or by which any of them or their respective properties or assets may be
subject or (iii) violate any Order or Law applicable to the Company or any
Subsidiary or any of their respective properties or assets.

           

          (b) Other
than approval of the Board of Directors of the Company, no Consent is required
to be obtained by the Company or the Sellers for the consummation by the Sellers
of the transactions contemplated by this Agreement.

           

          (c) This
Agreement and other agreements to which the Company is a party delivered
hereunder have been (or upon execution and delivery will be) duly authorized,
executed and delivered by the Company, and assuming the due and valid
authorization, execution and delivery of this Agreement and the other agreements
to which the Company is a party delivered hereunder constitutes (or upon
execution and delivery will constitute) the legal, valid and binding obligation
of the Company, enforceable against it in accordance with its terms except for
General Enforceability Exceptions.

           

          4.4 Financial
Statements.

           

          (a) Copies of
the following financial statements have been delivered to Buyer or have been
made available to Buyer for its review: (i) a draft of the audited consolidated
balance sheet of the Company as of December 31, 2009 and a draft of the related
audited consolidated statements of operations, stockholders’ equity, and cash
flows for the fiscal year ended December 31, 2009, together with the notes
thereto (the “Audited Financial
Statements”), and (ii) the unaudited consolidated balance sheet of the
Company as of June 30, 2010, and the related unaudited consolidated statements
of operations, stockholders’ equity, and cash flows for the six (6)-month period
then ended.

           

          4.5 No
Brokers.  Except for Harris Williams & Co., no broker,
finder or similar agent has been employed by or on behalf of the Sellers or the
Company, and no Person with which the Sellers or the Company has had any
dealings or communications of any kind is entitled to any brokerage commission,
finder’s fee or any similar compensation in connection with this Agreement or
the transactions contemplated hereby.

           

          ARTICLE
V

          RESENTATIONS
AND WARRANTIES OF THE SELLERS

           

          Each
Seller represents and warrants, solely with respect to itself, himself or
herself, as the case may be, to Buyer as follows:

           

          5.1 Authority,
Validity and Effect.  Such Seller has all requisite power and
authority or capacity to enter into and perform his, her

           or
its obligations under this Agreement and to consummate the transactions
contemplated hereby, and this Agreement has been duly executed and delivered by
such Seller pursuant to all necessary authorization and is the legal, valid and
binding obligation of such Seller, enforceable against such Seller in accordance
with its terms, except as limited by the General Enforceability
Exceptions.

           

          5.2 Title.  Such
Seller (a) is the record and beneficial owner of the Shares set forth across
from such Seller’s name on Exhibit
A-1 and/or Exhibit
A-2 hereto, (b) has full power, right and authority, and any approval
required by Law, to (i) make and enter into this Agreement and (ii) sell,
assign, transfer and deliver his, her or its respective Shares to Buyer, and (c)
has good and valid title to his, her or its respective Shares free and clear of
all Liens, other than Liens arising under the Company Stockholders
Agreement.  Upon the consummation of the transactions contemplated by
this Agreement in accordance with the terms hereof, at the Closing, Buyer will
acquire valid title to the Shares, free and clear of all Liens, other than Liens
created by Buyer.

           

          5.3 Absence
of Conflicts.  The execution and delivery of this Agreement,
the performance by such Seller of his, her or its obligations hereunder and the
consummation of the transactions contemplated hereby will not (a) violate, or
constitute a breach or default under, any provisions of such Seller’s
organizational documents, (b) require the consent of any third party (including
any Governmental Authority and, if applicable, such Seller’s spouse), (c) result
in the creation or imposition of any Lien upon the Shares owned by such Seller,
(d) violate any Law or Order to which such Seller or the Shares owned by such
Seller may be subject, or (e) result in the breach of any of the terms or
conditions of, or constitute a default under, or in any manner release any party
thereto from any obligation under, any mortgage, note, bond, indenture,
contract, agreement, license or other instrument or obligation of any kind or
nature by which such Seller or the Shares owned by such Seller may be bound or
affected.

           

          5.4 Litigation.  There
are no pending or, to the knowledge of such Seller, threatened Actions either to
which such Seller is a party or by which the Shares owned by such Seller are
bound or affected or which affect or relate to the transactions contemplated
hereby.  To the knowledge of such Seller, there is no reasonable basis
for any such legal action, proceeding or investigation.  None of the
Shares owned by such Seller is subject to any Order.

           

          ARTICLE
VI

          REPRESENTATIONS
AND WARRANTIES OF BUYER

          Buyer
represents and warrants to the Company and the Sellers as follows:

           

          6.1 Investment
Intent.  The Shares are being purchased for Buyer’s own account
and not with the view to, or for resale in connection with, any distribution or
public offering thereof within the meaning of the Securities Act and the rules
and regulations promulgated thereunder.

           

          6.2 Authority,
Validity and Effect.  Buyer has the requisite power and
authority to execute and deliver this Agreement and all agreements and documents
contemplated hereby to be executed and delivered by it, and to consummate the
transactions contemplated hereby and thereby without obtaining any additional
approvals (whether internal or third party).  The execution and
delivery of this Agreement and such other agreements and documents and the
consummation of the transactions contemplated hereby and thereby, have been duly
and validly authorized by all necessary action on the part of
Buyer.  This Agreement has been duly and validly executed and
delivered by Buyer and constitutes the legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms, except as limited
by the General Enforceability Exceptions.

           

          6.3 No
Conflict; Required Consents.

           

          (a) Neither
the execution and delivery of this Agreement by Buyer, nor the consummation by
Buyer of the transactions contemplated hereby, nor compliance by Buyer with any
of the provisions hereof, will (i) conflict with or result in a breach of any
provisions of the articles or certificate of incorporation or bylaws or
equivalent organizational documents of Buyer, (ii) constitute or result in the
breach of any term, condition or provision of, or constitute a default under,
any material contract to which the Buyer is a party, or (iii) violate any Order
or Law applicable to Buyer or any of its properties or assets.

           

          (b) Other
than approval of the Board of Directors of each of Buyer and U.S. Auto Part
Network, Inc., no Consent is necessary for the consummation by Buyer of the
transactions contemplated by this Agreement.

           

          6.4 No
Financing.  Buyer has (or will have from its Affiliates)
sufficient funds presently available, and no non-Affiliate third party debt or
equity financing is required, for Buyer to deliver the Purchase Price and to
consummate the transactions contemplated by this Agreement.  As of the
date hereof, Buyer has no reason to believe that Buyer will not be able to pay
the Purchase Price.

           

          6.5 No
Brokers.  No broker, finder or similar agent has been employed
by or on behalf of Buyer, and no Person with which Buyer has had any dealings or
communications of any kind is entitled to any brokerage commission, finder’s fee
or any similar compensation in connection with this Agreement or the
transactions contemplated hereby.

           

          ARTICLE
VII

          COVENANTS
AND AGREEMENTS

           

          7.1 Interim
Operations of the Company.  Prior to the Closing Date or the
earlier termination of this Agreement pursuant to Article
IX (such period, the “Interim
Period”), except as set forth on Schedule ‎7.1 or as
expressly contemplated by this Agreement, unless Buyer has previously consented
in writing thereto (which consent will not be unreasonably withheld, conditioned
or delayed), the Company agrees, and agrees to cause the Subsidiaries, to use
commercially reasonable efforts to carry on the businesses of the Company and
the Subsidiaries in accordance with the expense plan delivered to Buyer on the
date hereof and to preserve intact the Company’s and Subsidiaries’ current
business organization, keep available the services of the Company’s and
Subsidiaries’ current officers and employees and to preserve the Company’s and
the Subsidiaries’ relationships with suppliers, distributors, licensors,
licensees and others with which the Company and the Subsidiaries have business
dealings (including, without limitation, shipping products, paying vendors and
continuing marketing efforts, all in accordance with the expense plan delivered
to Buyer on the date hereof).  In addition, without limiting the
foregoing, during the Interim Period, except as set forth on Schedule ‎7.1 or as
expressly contemplated by this Agreement, unless Buyer has previously
consented in writing thereto (which consent will not be unreasonably withheld,
conditioned or delayed), the Company shall not and shall not permit the
Subsidiaries to:

           

          (a) incur any
indebtedness for borrowed money or issue any long-term debt securities or
assume, guarantee or endorse such obligations of any other Person, except for
indebtedness incurred in the ordinary course of business consistent with past
practice under the Senior Credit Agreement; provided, the
additional aggregate amount of such borrowed money under the Senior Credit
Agreement shall not exceed $2,000,000;

           

          (b) except
for the sale of products in the ordinary course of business consistent with past
practice, (i) acquire, or dispose of, any property or assets, (ii) mortgage
or encumber any property or assets other than Permitted Liens, or (iii) cancel
any debts owed to or claims held by the Company or any Subsidiary;

           

          (c) (i) enter
into any Contracts that would constitute a material Contract except Contracts
made in the ordinary course of business consistent with past practice,
(ii) terminate any material Contract or (iii) amend any material
Contract;

           

          (d) enter
into or amend any Contracts with any Affiliates of the Company, except to the
extent required by Law;

           

          (e) except to
the extent required by Law, enter into, adopt, amend or terminate any Contract
relating to the compensation or severance of any employee of the Company or any
Subsidiary other than in the ordinary course of business consistent with past
practice or establish, adopt, enter into or amend any employee
plan;

           

          (f) make any
material change to its accounting (including Tax accounting) methods, principles
or practices, except as may be required by GAAP, or make any Tax
election;

           

          (g) make any
amendment to its certificate of incorporation or bylaws (or equivalent
organizational documents);

           

          (h) declare
or pay any dividends or distributions (whether in cash, stock or property or any
combination thereof) or repurchase any shares of capital stock or other equity
interests;

           

          (i) issue or
sell any capital stock or other equity interests or options, warrants, calls,
subscriptions or other rights to purchase any capital stock or other equity
interests of the Company or any Subsidiary or split, combine or subdivide the
capital stock or other equity interests of the Company or any
Subsidiary;

           

          (j) sell,
transfer, license, sublicense or otherwise dispose of any material company
intellectual property, or amend or modify any existing agreements with respect
to any material intellectual property rights of the Company;

           

          (k) acquire
(by merger, consolidation, or acquisition of stock or assets) any corporation,
partnership or other business organization or division thereof or enter into any
partnership arrangements, joint development agreements or strategic
alliances;

           

          (l) initiate,
settle or agree to settle any Action (other than any such litigation, action,
suit, proceeding, or arbitration involving a claimed amount of less than
$10,000 and not
involving any equitable relief); or

           

          (m) take, or
agree to take, any of the actions described in sub-clauses (a) through (l)
above, or any action which would make any of the representations or warranties
of the Company or the Sellers untrue or incorrect.

           

          If the
Company wishes to obtain the consent of Buyer to take actions for which prior
consent is required pursuant to this Section
7.1, the Company shall request such consent in a writing delivered to the
attention of the Chief Executive Officer of Buyer.  A consent signed
by such officer(s) shall be deemed sufficient for purposes hereof.

           

          7.2 Reasonable
Access; Confidentiality.

           

          (a) From the
date hereof until the Closing Date or the earlier termination of this Agreement,
and subject to applicable Law, the Company shall give and shall cause the
Subsidiaries to give Buyer and its representatives, upon reasonable notice to
the Seller Representative or its representatives, reasonable access, during
normal business hours, to the assets, properties, books, records, employees and
agreements of the Company and the Subsidiaries and the Company shall, and shall
cause the Subsidiaries to, permit Buyer to make such inspections (but excluding
sampling or testing of the Environment without the Seller Representative’s prior
written consent (provided such consent shall not be unreasonably withheld or
delayed)) as Buyer may reasonably require and to furnish Buyer during such
period with all such information relating to the Company and the Subsidiaries as
Buyer may from time to time reasonably request.  Notwithstanding the
broad scope of the foregoing, the Company shall provide Buyer with access to the
Company’s inventory to conduct an inventory audit from August 6-9,
2010.

           

          (b) Any
information provided to or obtained by Buyer pursuant to clause (a) above
will be subject to the Confidentiality Agreement, dated June 13, 2010 entered
into by Buyer or its Affiliate for the benefit of the Company (the “Confidentiality
Agreement”), and must be held by Buyer in accordance with and be subject
to the terms of the Confidentiality Agreement.

           

          (c) Prior to
the Closing, Buyer agrees to be bound by and comply with the provisions set
forth in the Confidentiality Agreement as if such provisions were set forth
herein, and such provisions are hereby incorporated herein by reference, the
Confidentiality Agreement shall terminate as to Buyer as of the date of
Closing.

           

          7.3 Publicity.  Except
as may be required to comply with the requirements of any applicable Law or the
rules and regulations of any stock exchange or national market system upon which
the securities of Buyer are listed, no party will issue any press release or
other public announcement prior to the Closing Date relating to the subject
matter of this Agreement or the transactions contemplated hereby without the
prior written approval (which approval will not be unreasonably withheld,
conditioned or delayed) of in the case of a press release or other public
announcement by Buyer, the Seller Representative and in the case of a press
release or other public announcement by the Company or any Seller, Buyer; provided, however, that after
the Closing, Buyer will be entitled to issue any such press release or make any
such other public announcement without obtaining such prior
approvals.  For purposes of clarity, nothing herein shall limit the
Seller Representative’s ability to provide information relating to this
Agreement to its Affiliates on a confidential basis.

           

          7.4 Records.  With
respect to the financial books and records and minute books of the Company and
the Subsidiaries relating to matters on or prior to the Closing
Date:  (a) for a period of two (2) years (or such shorter period as
permitted by the Company’s applicable document retention policy) after the
Closing Date, Buyer shall not cause or permit their destruction or disposal
without first offering to surrender them to the Seller Representative; and (b)
where there is legitimate purpose and subject to the delivery of a
confidentiality agreement in a form reasonably acceptable to Buyer, Buyer shall
allow the Seller Representative and its respective representatives access to
such books and records during regular business hours.

           

          7.5 Indemnification.  The
Seller Representative has procured and shall maintain an extended reporting
period endorsement under the Company’s existing directors’ and officers’
liability insurance coverage for the Company’s current and former directors and
officers that provides such directors and officers with coverage for six (6)
years following the Closing.

           

          7.6 Update
and Disclosure.

           

          (a) From the
date hereof through the Closing Date or the earlier termination of this
Agreement, Buyer and the Seller Representative shall promptly give written
notice to the other parties of any event, condition or circumstance occurring
from the date hereof through the Closing Date or earlier termination of this
Agreement that would cause any representation or warranty of Buyer, on the one
hand, or the Company or any Seller, on the other hand, respectively, contained
herein to become misleading, inaccurate or false or that would constitute a
violation or breach of this Agreement, or that would make the timely
satisfaction of any of the conditions set forth in Article
VIII impossible or unlikely.

           

          (b) Each of
the Company, the Sellers and Buyer shall give reasonable notice to the other
of:  (i) any written or, to the Company’s Knowledge, oral notice from
any person alleging that the Consent of such person is or may be required in
connection with the transactions contemplated by this Agreement; (ii) any
written or, to the Company’s Knowledge, oral notice from any Governmental
Authority in connection with the transactions contemplated by this Agreement;
(iii) any litigation that is filed relating to or involving or otherwise
affecting the Company, the Sellers or Buyer that relates to the transactions
contemplated by this Agreement; and (iv) any change that could reasonably be
expected to impair in any material respect the ability of either the Company,
the Sellers or Buyer to consummate the transactions contemplated by this
Agreement.

           

          7.7 Efforts;
Cooperation.  Upon the terms and subject to the conditions set
forth in this Agreement, each of the parties agrees to use commercially
reasonable efforts to take, or cause to be taken, all actions, and to do, or
cause to be done, and to assist and cooperate with the other parties in doing,
all things necessary, proper or advisable to consummate and make effective, in
the most expeditious manner practicable, the transactions contemplated by this
Agreement and to obtain satisfaction or waiver of the conditions precedent to
the consummation of the transactions contemplated hereby, including (a)
obtaining all of the necessary Consents from Governmental Authorities and other
third parties and the making of all filings and the taking of all steps as may
be necessary to obtain Consent from, or to avoid an Action by, any Governmental
Authority, (b) the defending of any lawsuits or other legal proceedings, whether
judicial or administrative, challenging this Agreement or the consummation of
the transactions contemplated hereby, including seeking to have any stay or
temporary restraining order entered by any court or other Governmental Authority
vacated or reversed and (c) the execution and delivery of any additional
instruments necessary to consummate the transactions contemplated by, and to
fully carry out the purposes of, this Agreement.

           

          7.8 Post
Closing Cooperation.  After the Closing, the Seller
Representative shall (and shall use reasonable efforts to cause each of the
Sellers to) provide Buyer (at Buyer’s reasonable cost and expense) with such
cooperation and information relating to the Company as Buyer reasonably may
request in defending or pursuing any Action.

           

          7.9 No
Negotiation.  During the Interim Period, the Company and the
Sellers shall not, and shall not authorize or permit any of their respective
directors, officers, employees, agents or representatives, to, directly or
indirectly:

           

          (a) solicit
or encourage the initiation of any inquiry, proposal or offer from any Person
(other than Buyer or its Affiliates) relating to a possible Acquisition
Transaction;

           

          (b) participate
in any discussions or negotiations or enter into any agreement with, or provide
any non-public information to, any Person (other than Buyer or its Affiliates)
relating to or in connection with a possible Acquisition Transaction;
or

           

          (c) consider,
entertain or accept any proposal or offer from any Person (other than Buyer or
its Affiliates) relating to a possible Acquisition Transaction.

           

          The
Company shall promptly (and in no event later than two (2) Business Days after
receipt of any inquiry or indication of interest that could reasonably lead to
any Acquisition Transaction or any request for nonpublic information relating to
a potential Acquisition Transaction) advise Buyer orally and in writing of any
such inquiry or indication of interest that could reasonably lead to any
Acquisition Transaction or any request for nonpublic information relating to a
potential Acquisition Transaction (including the terms thereof) that is made or
submitted by any Person during the Interim Period.  Company shall keep
Buyer reasonably informed with respect to the status of any such offer,
proposal, inquiry or indication of interest contemplating or otherwise relating
to any Acquisition Transaction and any modification or proposed modification
thereto.

           

          7.10 Contract
Termination.  On or prior to August 6, 2010 the Company shall
deliver to Buyer a proposed contract termination letter as set forth on, and
subject to the provisions of, Schedule
7.10.

           

          7.11 Transfer
Taxes.  All transfer, documentary, sales, use, stamp,
registration, value added and other such Taxes and fees (including any penalties
and interest) imposed in connection with this Agreement will be borne and timely
paid one-half by Buyer and one-half by the Sellers and the parties, at their
shared expense, will cause to be timely filed all necessary Tax Returns and
other documentation.

           

          ARTICLE
VIII

          CONDITIONS
TO CLOSING

           

          8.1 Conditions
to Obligations of the Sellers.  The obligations of the Sellers
to consummate the transactions contemplated by this Agreement are subject to the
satisfaction or waiver (if permitted by applicable Law) at or prior to the
Closing of each of the following conditions:

           

          (a) The
representations and warranties of Buyer set forth in this Agreement and in each
of the other agreements, schedules and instruments delivered by Buyer in
connection with the transactions contemplated by this Agreement shall have been
accurate in all material respects as of the date of this Agreement (without
giving effect to any materiality or material adverse effect qualifications
contained therein) and must be true and correct in all material respects
(without giving effect to any materiality or material adverse effect
qualifications contained therein) as of the Closing Date as though made on and
as of the Closing Date (except to the extent expressly made as of an earlier
date, in which case as of such date).

           

          (b) Buyer
must have performed in all material respects all obligations required to be
performed by it under this Agreement at or prior to the Closing.

           

          (c) Buyer
must have delivered to the Sellers the items required by Section ‎3.3.

           

          (d) None of the parties hereto will be subject to any Order of a court
of competent jurisdiction that prohibits the consummation of the transactions
contemplated by this Agreement.

           

          8.2 Conditions to Obligations of Buyer.  The
obligations of Buyer to consummate the transactions contemplated by this
Agreement are subject to the satisfaction or waiver (if permitted by applicable
Law) at or prior to the Closing of each of the following
conditions:

           

          (a) The representations and warranties of the Company and the Sellers
set forth in this Agreement and in each of the other agreements, schedules and
instruments delivered by the Company and the Sellers in connection with the
transactions contemplated by this Agreement shall have been accurate in all
material respects as of the date of this Agreement (without giving effect to any
materiality or material adverse effect qualifications contained therein) and
must be true and correct in all material respects (without giving effect to any
materiality or material adverse effect qualifications contained therein) as of
the Closing Date as though made on and as of the Closing Date (except to the
extent expressly made as of an earlier date, in which case as of such
date).

           

          (b) The Sellers and the Company must have performed in all material
respects all obligations required to be performed by them under this Agreement
at or prior to the Closing Date.

           

          (c) The Sellers must have delivered to Buyer the items required by Section 3.2.

           

          (d) None of the parties hereto will be subject to any Order of a court
of competent jurisdiction that prohibits the consummation of the transactions
contemplated by this Agreement.

           

          (e) The Company shall have caused, at Buyer’s expense, the Company’s
auditors to commence the procedures necessary to update the Audited Financial
Statements for fiscal year end January 2, 2010 promptly following the date of
this Agreement, but in any event prior to August 6, 2010.

           

          (f) Since the date of this Agreement, there shall have been no Material
Adverse Effect on the Company.

           

          8.3 Frustration of Closing Conditions.  Neither the
Sellers nor Buyer may rely on the failure of any condition set forth in Section ‎8.1 or Section ‎8.2, as the case may be, to be satisfied if such failure
was caused by such party’s failure to comply with its obligations to consummate
the transactions contemplated by this Agreement as required by and subject to
Section 7.7.

           

          ARTICLE IX

          TERMINATION OF AGREEMENT

           

          9.1 Termination.  Notwithstanding any other provision
of this Agreement, this Agreement may be terminated at any time prior to the
Closing:

           

          (a) by the mutual written consent of Buyer, the Company and the Seller
Representative (on behalf of the Sellers);

           

          (b) by Buyer, on the one hand, or the Company and the Seller
Representative (on behalf of the Sellers), on the other hand, upon written
notice to the other party, if the transactions contemplated by this Agreement
have not been consummated on or prior to August 31, 2010 or such later date, if any, as Buyer and the Seller
Representative agree upon in writing (the “Termination Date”); provided, however, that the right to terminate this Agreement pursuant
to this Section ‎9.1(b) is not available to any party whose breach of any
provision of this Agreement results in or causes the failure of the transactions
contemplated by this Agreement to be consummated by such time;

           

          (c) by Buyer, on the one hand, or the Company and the Seller
Representative (on behalf of the Sellers), on the other hand, upon written
notice to the other party, if a Governmental Authority of competent jurisdiction
and residing in a jurisdiction in which the Company or any Subsidiary does
business has issued an Order or any other action permanently enjoining,
restraining or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement, and such Order has become final and
non-appealable; provided, however, that the right to terminate this Agreement pursuant
to this Section ‎9.1(c) is not available to any party whose breach of any
provision of this Agreement results in or causes such Order or other action or
such party is not in compliance with its obligations under Section ‎7.7;

           

          (d) by the Seller
Representative and the Company, if (i) Buyer has breached or failed to perform
any of its covenants or other agreements contained in this Agreement to be
complied with by Buyer such that the closing condition set forth in Section ‎8.1(b) would
not be satisfied or (ii) there exists a breach of any representation or warranty
of Buyer contained in this Agreement such that the closing condition set forth
in Section ‎8.1(a) would not be satisfied, and in the case of both
(i) and (ii) above, such breach or failure to perform is not cured within thirty
(30) days after receipt of written notice thereof (but in no event later than
the Termination Date) or is incapable of being cured by Buyer by the Termination
Date; provided,
however, that
the right to terminate this Agreement pursuant to this Section 9.1(d)
is not available to any party who (A) breached any representation or warranty
contained in this Agreement such that the closing condition set forth in Section
8.2(a) would not be satisfied or (B) failed to perform any of its
covenants; or

           

          (e) by Buyer,
if (i) the Sellers or the Company have breached or failed to perform any of
their covenants or other agreements contained in this Agreement to be complied
with by them such that the closing condition set forth in Section ‎8.2(b) would
not be satisfied or (ii) there exists a breach of any representation or warranty
of the Sellers or the Company contained in this Agreement such that the closing
condition set forth in Section ‎8.2(a) would
not be satisfied, and in the case of both (i) and (ii) above, such breach or
failure to perform is not cured within thirty (30) days after receipt of written
notice thereof (but in no event later than the Termination Date) or is incapable
of being cured by the Sellers by the Termination Date; provided, however, that the right to terminate this Agreement pursuant
to this Section 9.1(e) is not available if Buyer (A) breached any
representation or warranty contained in this Agreement such that the closing
condition set forth in Section 8.1(a) would not be satisfied or (B) failed to
perform any of its covenants.

           

          9.2 Effect of Termination.  In the event of termination
of this Agreement pursuant to Section ‎9.1 by
either Buyer, on the one hand, or the Seller Representative and the Company, on
the other hand, this Agreement will become void and have no effect effective
immediately upon the delivery of written notice of the terminating party to the
other party hereto (or upon expiration of the applicable cure period if this
Agreement is terminated pursuant to Section 9.1(d) or (e)), without any liability or
obligation on the part of Buyer or the Sellers, other than the provisions of
Section ‎7.2(b), Section ‎7.3, this Section ‎9.2, and
Article
XI which will survive any termination of this Agreement; provided,
however,
that nothing herein will relieve any party from any liability for any breach by
such party of its covenants or agreements set forth in this
Agreement.

           

          9.3 Treatment
of Deposit.

           

          (a) In the
event of the termination of this Agreement pursuant to Section 9.1(d),
Buyer and the Seller Representative shall cause the Escrow Agent to immediately
release the Deposit (plus any interest earned on the Deposit) to the Company
pursuant to the terms of the Deposit Escrow Agreement and Buyer shall have no
claims to the return of the Deposit.

           

          (b) In the
event of the termination of this Agreement for any reason other than pursuant to
Section
9.1(d), Buyer and the Seller Representative shall cause the Escrow Agent
to immediately release the Deposit (plus any interest earned on the Deposit) to
Buyer pursuant to the terms of the Deposit Escrow Agreement and the Company and the
Sellers shall have no claims to the Deposit.

           

          ARTICLE
X

          REMEDIES

           

          10.1 Indemnification
by Buyer.  Buyer will indemnify and hold harmless the Sellers
and their respective successors and permitted assigns, and the officers,
employees, directors, managers, members, partners and stockholders of the
Sellers and their heirs and personal representatives (collectively, the “Seller
Indemnitees”) from and against, and will pay to the Seller Indemnitees
the amount of, any and all out-of-pocket losses, liabilities, claims, damages,
penalties, fines, judgments, awards, settlements, Taxes, costs, fees (including
reasonable investigation fees), expenses (including reasonable attorneys’ fees)
and disbursements (collectively, “Losses”)
actually incurred by any of the Seller Indemnitees following the Closing Date
based upon any breach of or inaccuracy in the representations and warranties of
Buyer contained in Section
6.1 (Investment Intent) and Section
6.2 (Authority, Validity and Effect).

           

          10.2 Indemnification
by the Preferred Stockholders.

           

          (a) Each
Preferred Stockholder will severally, on a pro-rata basis based on the
percentages set forth on Exhibit
A-1, indemnify and hold harmless Buyer and its Affiliates (including,
after the Closing, the Company) and each of their respective successors and
permitted assigns, officers, employees, directors, members, managers,
stockholders, representatives and agents (collectively, the “Buyer
Indemnitees”) from and against, and will pay to the Buyer Indemnitees the
amount of, any Losses actually incurred by any of the Buyer Indemnitees based
upon any breach of or inaccuracy in the representations and warranties of the
Sellers or the Company contained in Section
4.1 (Capitalization and Title) and Section
4.3 (Authority).

           

          (b) Each
Preferred Stockholder will indemnify and hold harmless the Buyer Indemnitees
from and against, and will pay to the Buyer Indemnitees the amount of, any
Losses actually incurred by any of the Buyer Indemnitees based upon any breach
of or inaccuracy in the representations and warranties of such Preferred
Stockholder contained in Section
5.1 (Authority, Validity and Effect) and Section
5.2 (Title).  No Seller will be liable for any claim with
respect to another Seller's breach of any representation or warranty contained
in Article
V.

           

          (c) Except in
the case of fraud, intentional misrepresentation or willful misconduct committed
by such Seller, notwithstanding anything to the contrary in this Agreement, no
Seller will be liable for any amount under this Agreement in excess of his or
its portion of the Purchase Price actually received by such Seller on the
Closing Date.

           

          10.3 Survival.  The
representations and warranties set forth in Section
4.1 (Capitalization and Title), Section
4.3(c) (Authority), Section
5.1 (Authority, Validity and Effect), Section
5.2 (Title), Section
6.1 (Investment Intent) and Section
6.2 (Authority, Validity and Effect) will survive the Closing Date for a
period of 90 days, at which point such representations and warranties and any
claim for indemnification on account thereof or otherwise will terminate, except
for pending claims brought prior to the 90-day anniversary of the Closing
Date.  Except as explicitly set forth in the prior sentence, none of
the representations and warranties in this Agreement or in any Schedule,
instrument or other document delivered pursuant to this Agreement will survive
the Closing Date.

           

          10.4 Exclusive
Remedy.  Except in the case of fraud, intentional
misrepresentation or willful misconduct, the parties agree that, from and after
the Closing Date, the exclusive remedies of the parties for any Losses based
upon, arising out of or otherwise in respect of the matters set forth in this
Agreement are the indemnification or reimbursement obligations of the parties
set forth in this Article
X.

           

          10.5 No
Implied Representations. Except
in the case of any claims for fraud, each of Buyer, the Company and the Sellers
acknowledge that, except as expressly provided in  this Agreement, no
party hereto, and none of the representatives of any party hereto, has made or
is making any representations or warranties whatsoever, implied or
otherwise.

           

          ARTICLE
XI

          MISCELLANEOUS
AND GENERAL

           

          11.1 Seller
Representative.

           

          (a) The
Seller Representative is hereby constituted and appointed as exclusive proxy,
representative, agent and attorney-in-fact for and on behalf of the other
Sellers, with full power of substitution, to make all decisions and
determinations and to act and execute, deliver and receive all documents,
instruments and consents on behalf of and as agent for such Sellers at any time
in connection with, and that may be necessary or appropriate to accomplish the
intent and implement the provisions of this Agreement.  Without
limiting the generality of the foregoing, the Seller Representative has full
power and authority, on behalf of each Seller and his or her successors and
assigns, to (i) interpret the terms and provisions of this Agreement and
the documents to be executed and delivered by the Sellers in connection
herewith, (ii) execute and deliver and receive deliveries of all agreements,
certificates, statements, notices, approvals, extensions, waivers, undertakings,
amendments and other documents required or permitted to be given in connection
with the consummation of the transactions contemplated by this Agreement, (iii)
receive service of process in connection with any claims under this Agreement,
(iv) agree to, negotiate and enter into settlements and compromises of, assume
the defense of claims and comply with Orders with respect to such claims, and to
take all actions necessary or appropriate in the judgment of the Seller
Representative for the accomplishment of the foregoing, (v) give and receive
notices and communications, (vi) take all actions necessary or appropriate in
the judgment of the Seller Representative on behalf of the Sellers in connection
with this Agreement, (vii) make any determinations and settle any matters in
connection with the adjustments to the Purchase Price in Section
2.3 and Section
2.4, and (viii) use the Representative Fund Amount to pay, or establish a
reserve for, any costs, fees, expenses and other liabilities incurred by the
Seller Representative (in its capacity as such) in connection with this
Agreement and its obligations hereunder.  By executing this Agreement,
the Seller Representative accepts the appointment, authority and power
contemplated by this Section
11.1.

           

          (b) Such
agency may be changed by the Seller Representative from time to time upon not
less than five (5) days prior written notice to Buyer (so long as such change is
reasonably acceptable to Buyer).  The Seller Representative, or any
successor hereafter appointed, may resign at any time by written notice to
Buyer.  Such written notice to the Buyer shall include the Seller
Representative’s appointment of a successor (and such successor shall be
reasonably acceptable to Buyer).  All power, authority, rights and
privileges conferred in this Agreement to the Seller Representative will apply
to any successor Seller Representative.

           

          (c) The
Seller Representative will not be liable for any act done or omitted under this
Agreement as Seller Representative while acting in good faith, and any act taken
or omitted to be taken pursuant to the advice of counsel will be conclusive
evidence of such good faith.  Buyer agrees that it will not look to
the personal assets of the Seller Representative, acting in such capacity, for
the satisfaction of any obligations to be performed by the Company (pre-Closing)
or the Sellers and the Seller Representative will not look to Buyer or,
post-Closing, the Company for any of the Sellers’ indemnification obligations
hereunder.  In performing any of its duties under this Agreement or
any agreements or documents executed and delivered in connection herewith, the
Seller Representative will not be liable to the Sellers for any losses any that
such Person may incur as a result of any act, or failure to act, by the Seller
Representative under this Agreement or any agreements or documents executed and
delivered in connection herewith, and the Seller Representative will be
indemnified and held harmless by the Sellers for all losses, except to the
extent that the actions or omissions of the Seller Representative were taken or
omitted not in good faith.  The limitation of liability and
indemnification provisions of this Section
11.1(c) will survive the termination of this Agreement and the
resignation of the Seller Representative.

           

          (d) The
appointment of the Seller Representative is coupled with an interest and may not
be revoked in whole or in part (including, without limitation, upon the death or
incapacity of any Seller). Such appointment shall be binding upon the heirs,
executors, administrators, estates, personal representatives, officers,
directors, security holders, successors and assigns of each Seller. All
decisions of the Seller Representative shall be final and binding on all of the
Sellers and no securityholder shall have the right to object, dissent, protest
or otherwise contest the same. Buyer shall be entitled to rely upon, without
independent investigation, any act, notice, instruction or communication from
the Seller Representative and any document executed by the Seller Representative
on behalf of any Seller and shall be fully protected in connection with any
action or inaction taken or omitted to be taken in reliance
thereon.

           

          11.2 Expenses.  Except
as set forth in this Agreement, all costs and expenses (including all legal,
accounting, broker, finder or investment banker fees) incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid, in
the case of the Company, by the Company (if the transactions contemplated by
this Agreement are not consummated), or will be treated as Selling Expenses (if
the transactions contemplated by this Agreement are consummated) to the extent
unpaid at the Closing, in the case of Buyer, by Buyer, and in the case of each
Seller, by such Seller.

           

          11.3 Successors
and Assigns.  This Agreement is binding upon and inures to the
benefit of the parties hereto and their respective successors and permitted
assigns, but is not assignable by any party without the prior written consent of
the other parties hereto; provided, however, Buyer may, without consent, assign
all such rights to any Person that controls, is controlled by or under common
control with Buyer or to any entity that acquires substantially all of the
assets of Buyer or survives any merger with Buyer.  Subject to the
foregoing, this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted
assigns.

           

          11.4 Third
Party Beneficiaries.  Except as set forth in Section ‎7.5 and the rights of the Indemnitees under Article X (which is intended to be for the benefit of the
parties indemnified thereby and may be enforced by such parties), each party
hereto intends that this Agreement does not benefit or create any right or cause
of action in or on behalf of any Person other than the parties
hereto.

           

          11.5 Further Assurances.  The parties shall execute such
further instruments and take such further actions as may reasonably be necessary
to carry out the intent of this Agreement.  Each party hereto shall
cooperate affirmatively with the other parties, to the extent reasonably
requested by such other parties, to enforce rights and obligations herein
provided.

           

          11.6 Notices.  Any
notice or other communication provided for herein or given hereunder to a party
hereto must be in writing, and (a) sent by facsimile transmission, (b)
electronic mail, (c) delivered in person, (d) mailed by first class registered
or certified mail, postage prepaid, or (e) sent by Federal Express or other
overnight courier of national reputation, addressed as follows:

          
            	 	 
	  

                     

                  	
                    If
      to the Company (only after Closing) or Buyer:

                     

                    c/o
      U.S. Auto Parts Network, Inc.

                    17150
      South Margay Avenue

                    Carson,
      CA 90746

                    Attention:
      Vice President Legal

                    Fax:  (310)
      735-0553

                    email:  akrallman@usautoparts.com

                     

                    If
      to the Company (only prior to Closing) or the Seller
      Representative:

                     

                    The
      Riverside Company

                    45
      Rockefeller Center

                    630
      Fifth Avenue, Suite 2400

                    New
      York, New York 10111

                    Attention:  Chief
      Financial Officer

                    Fax:
      (212) 265-6478

                    email:  brs@riversidecompany.com

                     

                    with
      a copy to:

                     

                    Jones
      Day

                    901
      Lakeside Ave.

                    Cleveland,
      OH, 44114

                    Attention:
      Lisa S. Lathrop

                    Fax:
      (216) 579-0212

                    email:
      lslathrop@jonesday.com

                  

          

           

          or to
such other address with respect to a party as such party notifies the other in
writing as above provided.  Each such notice or communication will be
effective (i) if given by facsimile, when the successful sending of such
facsimile is electronically confirmed, (ii) if given by electronic mail, when
electronic evidence of receipt is received, or (iii) if given by any other means
specified in the first sentence of this
Section ‎11.6, upon
delivery or refusal of delivery at the address specified in this Section ‎11.6.

           

          11.7 Complete
Agreement.  This Agreement and exhibits and schedules hereto
and the other documents delivered by the parties in connection herewith,
together with the Confidentiality Agreement, contain the complete agreement
between the parties hereto with respect to the transactions contemplated hereby
and thereby and supersede all prior agreements and understandings between the
parties hereto with respect thereto.

           

          11.8 Captions.  The
captions contained in this Agreement are for convenience of reference only and
do not form a part of this Agreement.

           

          11.9 Amendment.  This
Agreement may be amended or modified only by an instrument in writing duly
executed by the Seller Representative and Buyer.

           

          11.10 Waiver.  The
Seller Representative or Buyer may (a) waive any inaccuracies in the
representations and warranties contained herein or in any document delivered
pursuant hereto or (b) waive compliance with any of the covenants, agreements or
conditions contained herein, to the extent permitted by applicable
Law.  Any agreement to any such waiver will be valid only if set forth
in a writing signed by the Seller Representative, on behalf of the Sellers if
the Sellers are making the waiver, or Buyer.  No failure on the part
of any Person to exercise any power, right, privilege or remedy under this
Agreement, and no delay on the part of any Person in exercising any power,
right, privilege or remedy under this Agreement, shall operate as a waiver of
such power, right, privilege or remedy; and no single or partial exercise of any
such power, right, privilege or remedy shall preclude any other or further
exercise thereof or of any other power, right, privilege or
remedy.  Any waiver shall not be applicable or have any effect except
in the specific instance in which it is given.

           

          11.11 Conflict
of Interest.  If the Sellers or the Seller Representative so
desire, and without the need for any consent or waiver by the Company or Buyer,
Jones Day is permitted to represent the Sellers and/or the Seller Representative
after the Closing in connection with any matter, including without limitation
anything related to the transactions contemplated by this Agreement or any
disagreement or dispute relating thereto.  Without limiting the
generality of the foregoing, after the Closing, Jones Day is permitted to
represent the Sellers, the Seller Representative, any of their agents and
affiliates, or any one or more of them, in connection with any negotiation,
transaction or dispute (“dispute” includes litigation, arbitration or other
adversary proceeding) with Buyer, the Company or, any Subsidiary any of their
respective agents or affiliates under or relating to this Agreement, any
transaction contemplated by this Agreement, and any related matter, such as
claims for indemnification and disputes involving employment or noncompetition
or other agreements entered into in connection with this
Agreement.  Upon and after the Closing, the Company and the
Subsidiaries shall cease to have any attorney-client relationship with Jones
Day, unless and to the extent Jones Day is specifically engaged in writing by
the Company or any Subsidiary to represent the Company or any Subsidiary after
the Closing and either such engagement involves no conflict of interest with
respect to Sellers or the Seller Representative or the Sellers, or the Seller
Representative (as applicable) consent in writing at the time to such
engagement.

           

          11.12 Governing
Law.  This Agreement is to be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, without regard
to its rules of conflict of laws. Without limiting the procedures expressly set
forth in Sections
2.3 or 2.4,
in any action between any of the parties arising out of or relating to this
Agreement or any of the transactions contemplated by this Agreement:
(a) each of the parties irrevocably and unconditionally consents and
submits to the exclusive jurisdiction and venue of the state and federal courts
located in Delaware; (b) if any such action is commenced in a state court, then,
subject to applicable law, no party shall object to the removal of such action
to any federal court located in Delaware; (c) each of the parties irrevocably
waives the right to trial by jury; and (d) each of the parties irrevocably
consents to service of process by first class certified mail, return receipt
requested, postage prepaid, to the address at which such party is to receive
notice in accordance with Section
11.6.

           

          11.13 Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
jurisdiction will, as to that jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction.  If any provision of this Agreement is so broad as to be
unenforceable, the provision will be interpreted to be only so broad as is
enforceable.  If the final judgment of a court of competent
jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the parties hereto agree that the court making such determination
shall have the power to limit the term or provision, to delete specific words or
phrases, or to replace any invalid or unenforceable term or provision with a
term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and
this Agreement shall be enforceable as so modified.  In the event such
court does not exercise the power granted to it in the prior sentence, the
parties hereto agree to replace such invalid or unenforceable term or provision
with a valid and enforceable term or provision that will achieve, to the extent
possible, the economic, business and other purposes of such invalid or
unenforceable term.

           

          11.14 Counterparts;
Electronic Transmission.  This Agreement may be executed in two
or more counterparts (any of which may be delivered by facsimile or email
transmission), each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

           

          11.15 Attorneys’
Fees.  If any action or
proceeding relating to this Agreement or the enforcement of any provision of
this Agreement is brought against any party hereto, the prevailing party shall
be entitled to recover reasonable attorneys’ fees, costs and disbursements (in
addition to any other relief to which the prevailing party may be
entitled).

           

          11.16 Construction.

           

          (a) For
purposes of this Agreement, whenever the context requires: the singular number
shall include the plural, and vice versa; the masculine gender shall include the
feminine and neuter genders; the feminine gender shall include the masculine and
neuter genders; and the neuter gender shall include the masculine and feminine
genders.

           

          (b) As used
in this Agreement, the words “include” and “including,” and variations thereof,
shall not be deemed to be terms of limitation, but rather shall be deemed to be
followed by the words “without limitation.”

           

          

          [Signatures
on Following Pages]

          
            
              
                 

              

               

            

            
               

              
                

              

            

            
               

            

          

                

                 IN WITNESS
WHEREOF, Buyer, the Sellers and the Seller Representative have caused this
Agreement to be executed as of the day and year first above
written.

           

          
            	 	
                    COMPANY:

                     

                    
                      AUTOMOTIVE
      SPECIALTY ACCESSORIES AND PARTS, INC.

                       

                      By: 
         /s/
      KRISTIN
      A. NEWHALL            

                      Name: 
      Kristin A. Newhall

                      Title:   
      President and Assistant Secretary

                       

                       

                       

                       

                      
                        SELLER
      REPRESENTATIVE:

                         

                        
                          2000
      RIVERSIDE CAPITAL APPRECIATION FUND, L.P.

                           

                        

                        By:
      Riverside Capital Associates
      2000, LLC, its general partner

                        
                           

                        

                        
                          By:     /s/
      STEWART A. KOHL     
                                                                                            

                          Name: 
      Stewart A. Kohl

                          Title:    Co-Chief Executive Officer  

                        

                      

                    

                  

          

           

           

           

          
            
              
                 

              

               

            

            
               

              
                

              

            

            
               

            

          

          
             

             

          

          
            
              	 	
                      SELLER:

                       

                      
                         

                           /s/
      JAMES J.
      NELSON                 

                        NAME: 
      James J. Nelson

                         

                         

                        
                          SELLER:

                           

                          
                             

                               /s/ THOMAS
      WEST                    

                            NAME: 
      Thomas West

                             

                            
                              SELLER:

                               

                              
                                 

                                   /s/
      JEROME
      MASCITTI              

                                NAME: 
      Jerome Mascitti

                                 

                                 

                                
                                  SELLER:

                                   

                                  
                                     

                                       /s/
      JOHN
      MILOS                     
           

                                    NAME: 
      John Milos

                                     

                                     

                                    
                                      SELLER:

                                       

                                      
                                         

                                           /s/
      EUGENE
      GEIGER               
           

                                        NAME: 
      Eugene Geiger

                                         

                                        
                                           

                                          
                                            SELLER:

                                             

                                            
                                               

                                                 /s/
      WILLIAM BR
      HOBBS            

                                              NAME: 
      William BR Hobbs

                                               

                                              
                                                
                                                   

                                                  
                                                    SELLER:

                                                     

                                                    
                                                       

                                                         /s/
      CHRISTOPHER E. KROHN    

                                                      NAME: 
      Christopher E. Krohn

                                                       

                                                      
                                                         

                                                        
                                                          SELLER:

                                                           

                                                          
                                                             

                                                               /s/ GEOFFREY ROBERTSON    
       

                                                            NAME: 
      Geoffrey Robertson

                                                          

                                                        

                                                      

                                                      
                                                        
                                                           

                                                           

                                                          
                                                            SELLER:

                                                             

                                                            
                                                               

                                                                 /s/
      GREGORY R. HERMAN         

                                                              NAME: 
      Gregory R.
      Herman

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

            

             

            
              
                
                  
                     

                  

                   

                

                
                   

                  
                    

                  

                

                
                   

                

              

            

          

          
            	 	 
	
                     

                     

                     

                  	
                    SELLER
      REPRESENTATIVE:

                     

                    
                      
                        2000
      RIVERSIDE CAPITAL APPRECIATION FUND, L.P.

                         

                      

                      
                        By: Riverside Capital Associates 2000, LLC, its
      general partner

                      

                      
                        
                           

                        

                        
                          By:     /s/
      STEWART A. KOHL     
                                                                                            

                          Name: 
      Stewart A. Kohl

                          Title:    Co-Chief Executive Officer  

                        

                      

                    

                  

          

           

        

         

         

        

        

        
          
            
              
                 

              

               

            

            
               

              
                

              

            

            
               

            

          

        

         

        
          	 	 
	
                	
                  BUYER:

                   

                  
                    
                      GO
      FIDO, INC.

                       

                    

                    
                      By:     /s/ SHANE
      EVANGELIST                                                                                           

                    

                    
                      
                        Name: 
      Shane Evangelist

                        Title:    Chairmanexhibit_10-58.htm

    EXHIBIT
10.58

    GUARANTEE

    OF

    U.S.
AUTO PARTS NETWORK, INC.

     

    GUARANTEE, dated as of August
2, 2010 (this “Guarantee”),
by U.S. Auto Parts Network, Inc., a Delaware corporation (the “Guarantor”),
in favor of 2000 Riverside Capital Appreciation Fund, L.P., a Delaware limited
partnership (the “Representative”),
in its capacity as the representative of and for the benefit of the stockholders
of Automotive Specialty Accessories and Parts, Inc., a Delaware corporation (the
“Company”)
and the Company.  Defined terms used herein and not otherwise defined
have the meaning ascribed to them in that certain Stock Purchase Agreement (the
“Purchase
Agreement”), dated as of the date hereof, by and among the Company, the
Representative, the stockholders of the Company listed on Exhibit A-1 and
Exhibit A-2 to the Purchase Agreement and Go Fido, Inc., a Delaware corporation
(the “Buyer”).

     

    1. Guarantee.

     

    (a) To induce
the Company and the Sellers (as defined in the Purchase Agreement) to enter into
the Purchase Agreement, pursuant to which the Buyer will acquire all of the
issued and outstanding shares of capital stock of the Company, the Guarantor
absolutely, unconditionally, directly and irrevocably guarantees to the
Representative and the Company (i) the due observance, performance and
discharge, when due, of any obligation of Buyer under the Purchase Agreement,
including, without limitation, the obligation (A) to pay the Purchase Price and
(B) to consummate the Closing in accordance with the terms of the Purchase
Agreement if all of the conditions to closing in Article VIII of the Purchase
Agreement are satisfied or waived (except for such conditions that would be
satisfied by the delivery by Sellers of documents that are required to be
delivered at Closing in the event that the Sellers are ready, willing and able
to execute and deliver such documents), unless the Purchase Agreement is
terminated in accordance with Article IX of the Purchase Agreement and (ii) the
Buyer’s obligation to satisfy any damages that become payable by the Buyer for a
breach of the Buyer’s obligations under the Purchase Agreement, subject to the
limitations set forth therein (the “Obligations”).

     

    (b) This
Guarantee is in no way conditioned upon (i) any attempt by the Representative or
the Company to pursue their rights against the Buyer or the Buyer's property or
(ii) the invalidity or unenforceability of any provision of the Purchase
Agreement that does not affect the Buyer's obligations thereunder.

     

    (c) The
obligations of the Guarantor under this Agreement are independent of the
obligations of the Buyer.  A separate action or actions may, at the
Representative’s or the Company's option, be brought and prosecuted against the
Guarantor, whether or not any action is first or subsequently brought against
the Buyer, or whether or not the Buyer is joined in any such action; provided,
however, that the Representative or the Company must first make a written demand
on the Buyer to satisfy the Buyer's obligation.

     

    2. No Waiver; Cumulative
Rights.  No failure on the part of the Representative to
exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise by the
Representative of any right, remedy or power hereunder preclude any other or
future exercise of any right, remedy or power.  Each and every right,
remedy and power hereby granted to the Representative or allowed it by law or
other agreement shall be cumulative and not exclusive of any other, and may be
exercised by the Representative at any time or from time to time.

     

    3. Representations and
Warranties.  The Guarantor hereby represents and warrants
that:

     

    (a) the
execution, delivery and performance of this Guarantee has been duly authorized
by all necessary action and does not contravene any provision of the Guarantor’s
certificate of incorporation, bylaws or similar organizational documents or any
Law or contractual restriction binding on the Guarantor or its assets;
and

     

    (b) this
Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable against the Guarantor in accordance with its terms, subject to
(i) the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting creditors’ rights
generally, and (ii) general equitable principles (whether considered in a
proceeding in equity or at law).

     

    4. Assignment.  The
Guarantor may freely assign its rights, interests or obligations hereunder to
any other person or company (including by operation of law or pursuant to any
change of control of Guarantor), without the prior written consent of the
Representative, so long as such person or person (a) has financial resources
comparable to those of the Guarantor as of the date hereof and (b) assumes the
Guarantor’s obligations hereunder (whether by operation of law or such other
written agreement reasonably acceptable to the Representative).

     

    5. Notices.  Any notice
or other communication provided for herein or given hereunder to a party hereto
must be in writing, and (a) sent by facsimile transmission, (b) sent by
electronic mail, (c) delivered in person, (d) mailed by first class registered
or certified mail, postage prepaid, or (e) sent by Federal Express or other
overnight courier of national reputation, addressed as follows:

     

    If to
Guarantor:

     

    U.S. Auto
Parts Network, Inc.

    17150
South Margay Avenue

    Carson,
CA 90746

    Attention:
Vice President Legal

    Fax:  (310)
735-0553

    email:  akrallman@usautoparts.com

    

    If to
Representative:

     

    The
Riverside Company

    45
Rockefeller Center

    630 Fifth
Avenue, Suite 2400

    New York,
New York 10111

    Attention:  Chief
Financial Officer

    Fax:
(212) 265-6478

    email:  brs@riversidecompany.com

    

    with a
copy to:

     

    Jones
Day

    901
Lakeside Ave.

    Cleveland,
OH, 44114

    Attention:
Lisa S. Lathrop

    Fax:
(216) 579-0212

    email:
lslathrop@jonesday.com

    

    or to
such other address with respect to a party as such party notifies the other in
writing as above provided.  Each such notice or communication will be
effective (i) if given by facsimile, when the successful sending of such
facsimile is electronically confirmed, (ii) if given by electronic mail, when
electronic evidence of receipt is received, or (iii) if given by any other means
specified in the first sentence of this Section 5, upon delivery or refusal of
delivery at the address specified in this Section 5.

    

    6. Term.  After
complete satisfaction of the Buyer’s obligations under the Purchase Agreement,
the Guarantor shall be relieved of its duties hereunder and this Guarantee shall
automatically terminate and be of no further force or effect.

     

    7. Governing Law.  THIS
GUARANTEE, THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO, AND ANY CLAIMS OR
DISPUTES RELATING THERETO, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF DELAWARE (EXCLUDING THE CHOICE OF LAW RULES
THEREOF).  Each of the parties irrevocably and unconditionally
consents and submits to the exclusive jurisdiction and venue of the state and
federal courts located in Delaware.  If any action between any of the
parties arising out of or relating to this Guarantee or the Purchase Agreement
or any of the transactions contemplated by the Purchase Agreement is commenced
in a state court, then, subject to applicable law, no party shall object to the
removal of such action to any federal court located in Delaware.  Each
of the parties irrevocably consents to service of process by first class
certified mail, return receipt requested, postage prepaid, to the address at
which such party is to receive notice in accordance with Section
5.  Each of the parties agrees that a final judgment in any such suit,
action or proceeding brought in any such court shall be conclusive and binding
upon the parties and may be enforced in any other courts to whose jurisdiction a
party is or may be subject, by suit upon such judgment.

     

    8. Waiver of Jury
Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATED TO THIS GUARANTEE.

     

    9. Fax/Electronic
Execution.  A Signature on an
execution page of this Guarantee sent to the Company or the Representative by
facsimile or other electronic transmission shall be binding as evidence of such
signatory party’s agreement to and acceptance of the terms hereof and
thereof.

     

    12. Miscellaneous.

     

    (a) This
Guarantee contains the entire agreement between the parties relative to the
subject matter hereof and supersedes all prior agreements and undertakings
between the parties with respect to the subject matter hereof.  No
modification or waiver of any provision hereof shall be enforceable unless
approved by the parties hereto in writing.

     

    (b) If any
part of any provision of this Guarantee shall be invalid or unenforceable in any
respect, such part shall be ineffective to the extent of such invalidity or
unenforceability only, without in any way affecting the remaining parts of such
provision or the remaining provisions of this Guarantee.

     

    (c) The
descriptive headings herein are inserted for convenience of reference only and
are not intended to be part of or to affect the meaning or interpretation of
this Guarantee.

     

     

    SIGNATURE
PAGE FOLLOWS

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the Guarantor has caused this Guarantee to be executed and
delivered as of the date first written above by its officer thereunto duly
authorized.

     

    
      	
            	
              U.S.
      AUTO PARTS NETWORK, INC.

              
                 

                
                  By:     /s/ SHANE
      EVANGELIST                                                                                           

                

                
                  
                    Name: 
      Shane Evangelist

                    Title:    Chief
      Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]