Document:

EX-10.1

 Exhibit 10.1 
 INVESTMENT AGREEMENT 
 BY AND BETWEEN 

FEDERAL-MOGUL CORPORATION 
 AND 
 IEH FM HOLDINGS LLC 

DATED AS OF MAY 28, 2013 

 TABLE OF CONTENTS 

 

					
	  	  	Page	 
		
	 ARTICLE I DEFINITIONS AND INTERPRETATION
	  	 	1	  
		
	 Section 1.1. Definitions
	  	 	1	  
	 Section 1.2. Interpretation
	  	 	5	  
		
	 ARTICLE II THE RIGHTS OFFERING
	  	 	6	  
		
	 Section 2.1. The Rights Offering
	  	 	6	  
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	7	  
		
	 Section 3.1. Organization
	  	 	7	  
	 Section 3.2. Authorization
	  	 	8	  
	 Section 3.3. Valid Issuance of Shares
	  	 	8	  
	 Section 3.4. Non-Contravention; Authorizations
	  	 	8	  
	 Section 3.5. Registration Statement; Prospectus
	  	 	8	  
	 Section 3.6. No Further Reliance
	  	 	9	  
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF INVESTOR
	  	 	9	  
		
	 Section 4.1. Organization
	  	 	9	  
	 Section 4.2. Non-Contravention; Governmental Authorization
	  	 	9	  
	 Section 4.3. Securities Act Compliance
	  	 	10	  
	 Section 4.4. Ownership
	  	 	10	  
	 Section 4.5. Financial Capability
	  	 	10	  
	 Section 4.6. No Further Reliance
	  	 	11	  
		
	 ARTICLE V COVENANTS
	  	 	11	  
		
	 Section 5.1. Securities to be Issued
	  	 	11	  
	 Section 5.2. Share Listing
	  	 	11	  
	 Section 5.3. Minority Stockholder Protection
	  	 	11	  
	 Section 5.4. ERISA Indemnity
	  	 	11	  
	 Section 5.5. Tax Allocation Agreement
	  	 	12	  
		
	 ARTICLE VI TERMINATION
	  	 	12	  
		
	 Section 6.1. Termination
	  	 	12	  
		
	 ARTICLE VII MISCELLANEOUS
	  	 	12	  
		
	 Section 7.1. Survival
	  	 	12	  
	 Section 7.2. Indemnification
	  	 	12	  
	 Section 7.3. Notices
	  	 	14	  
	 Section 7.4. Further Assurances.
	  	 	15	  
	 Section 7.5. Amendments and Waivers
	  	 	15	  
	 Section 7.6. Fees and Expenses
	  	 	15	  

  
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	 Section 7.7.   Successors and Assigns 
	  	 	15	  
	 Section 7.8.   Governing Law
	  	 	15	  
	 Section 7.9.   Waiver of Jury Trial
	  	 	15	  
	 Section 7.10. Entire Agreement
	  	 	16	  
	 Section 7.11. Effect of Headings and Table of Contents
	  	 	16	  
	 Section 7.12. Severability
	  	 	16	  
	 Section 7.13. Counterparts; No Third Party Beneficiaries
	  	 	16	  
	 Section 7.14. Specific Performance
	  	 	16	  
	 Section 7.15. Guaranty of Performance
	  	 	16	  

  

			
	Exhibits	  	
		
	Exhibit A	  	Form of Amendment and Joinder to Registration Rights Agreement
	Exhibit B	  	Form of Tax Allocation Agreement
	Exhibit C	  	Schedule

  
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 INVESTMENT AGREEMENT 

This INVESTMENT AGREEMENT, dated as of May 28, 2013 (this “Agreement”), is by and between Federal-Mogul
Corporation, a Delaware corporation (the “Company”), and IEH FM Holdings LLC, a Delaware limited liability company (the “Investor”). 
 BACKGROUND 
 WHEREAS, the Company has proposed to offer and sell certain
shares of Common Stock (as defined below) pursuant to a Rights Offering (as defined below), on the terms and subject to the conditions set forth herein; and 
 WHEREAS, the Company desires that the Investor provide, and the Investor has agreed to exercise its rights under the Basic Subscription Privilege (as defined below) in the Rights Offering, on the terms
and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS AND INTERPRETATION 

Section 1.1. Definitions. As used in this Agreement, the following terms have the respective meanings set forth below:

 “10b-5 Representation” shall have the meaning set forth in Section 3.5. 

“Acquired Shares” means the Common Stock acquired pursuant to the Basic Subscription Privilege and the Oversubscription
Privilege. 
 “Affiliate” of any Person means any other Person directly or indirectly Controlling, Controlled
by or under direct or indirect common Control with such Person, provided that for purposes of this Agreement, the Company and its Subsidiaries shall not be deemed to be Affiliates of the Investor. 

“Aggregate Offered Shares” shall have the meaning set forth in Section 2.1(b). 

“Agreement” shall have the meaning set forth in the Preamble. 

“Ancillary Agreements” means the Registration Rights Agreement and the Tax Allocation Agreement. 

“Basic Subscription Privilege” shall have the meaning set forth in Section 2.1(b). 

  
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 “Beneficially Own,” “Beneficially Owned,”
“Beneficial Ownership” and “Beneficial Owner” with respect to any securities means a holder who is deemed to be the beneficial owner, or ownership that is deemed to be beneficial ownership, of such securities under
Rule 13d-3 or Rule 13d-5 of the Exchange Act, and shall include such securities Beneficially Owned by all other persons with whom a holder would constitute a “group” within the meaning of Section 13(d) of the Exchange Act
with respect to such securities. 
 “Board” means the Board of Directors of the Company. 

“Business Day” means any day other than a Saturday, Sunday or one on which banks in New York, New York are authorized or
required to close. 
 “Capital Stock” of any Person means any and all shares, interests, participations or
other equivalents however designated of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt securities convertible or exchangeable into an equity
interest), warrants or options to acquire an equity interest in such Person. 
 “Closing Date” means the
closing of the Rights Offering. 
 “Common Stock” means the common stock, par value $0.01 per share, of the
Company. 
 “Company” shall have the meaning set forth in the Preamble. 

“Company Indemnified Parties” shall have the meaning set forth in Section 7.2(b). 

“Control” has the meaning specified in Rule 12b-2 under the Exchange Act. 

“DGCL” means the General Corporation Law of the State of Delaware. 

“Effect” shall have the meaning set forth in the definition of “Material Adverse Effect.” 

“ERISA” shall have the meaning set forth in Section 5.4. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.

 “Governmental Entity” means any national, state, local, county, parish or municipal government, domestic or
foreign, any agency, board, bureau, commission, court, tribunal, subdivision, department or other governmental or regulatory authority or instrumentality that has jurisdiction over any of the Company or any of its properties or assets or any matter
relating to the transactions contemplated by this Agreement. 
 “Group” has the meaning set forth in
Section 13(d) of the Exchange Act as in effect on the date of this Agreement. 
 “Holdings” shall have the
meaning set forth in Section 5.4. 

  
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 “HSR Act” shall have the meaning set forth in Section 4.2(c).

 “Indemnified Party” means an Investor Indemnified Party or a Company Indemnified Party, as the case may be.

 “Indemnifying Party” means the Company or the Investor, as the case may be. 

“Investor” shall have the meaning set forth in the Preamble. 

“Investor Indemnified Parties” shall have the meaning set forth in Section 7.2(a). 

“Law” means any federal, state, local or foreign law, statute or ordinance, common law, or any rule, regulation,
judgment, order, writ, injunction, decree, arbitration award, license or permit of any Governmental Entity. 

“Losses” shall have the meaning set forth in Section 7.2(a). 

“Material Adverse Effect” means any fact, circumstance, event, change, effect or occurrence (an
“Effect”) that, individually or in the aggregate with all other Effects, (x) would reasonably be expected to prevent, materially delay or materially impair the ability of the Company to consummate the transactions contemplated
hereby in the timeframe contemplated hereby or (y) has had or caused, or would have or cause, a material adverse effect on the assets, properties, business, results of operations, or financial condition of the Company and its Subsidiaries,
taken as a whole, but, in the case of this clause (y) shall not include (a) Effects generally affecting (i) the industry in which the Company and its Subsidiaries operate or (ii) economic, political or regulatory conditions or
the financial, securities or credit markets in the U.S. or elsewhere in the world, including natural disasters, any regulatory or political developments, or any outbreak or escalation of hostilities or declared or undeclared acts of war, terrorism
or insurrection, whether occurring before or after the date hereof, unless any such Effects disproportionately affect the assets, properties, business, results of operations or financial condition of the Company and its Subsidiaries, taken as a
whole, relative to other industry participants; (b) Effects to the extent resulting from the announcement of the execution of this Agreement or the pendency of the transactions contemplated hereby (including, without limitation, and solely by
way of example of such Effects, the Effects of the public announcement of this Agreement or the transactions contemplated hereby on the relationships of the Company or any of its Subsidiaries with customers, suppliers, distributors or employees);
(c) Effects resulting from compliance by the Company and its Subsidiaries with the terms of this Agreement; (d) declines in the price or trading volume of shares of any Capital Stock of the Company; (e) Effects to the extent resulting
from any changes in Law or in GAAP (or the interpretation thereof) after the date hereof, unless any such Effects disproportionately affect the assets, properties, business, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole, relative to other industry participants; (f) any failure by the Company to meet any published analyst estimates or expectations regarding the Company’s revenue, earnings or other financial performance or
results of operations for any period, or any failure by the Company to meet its internal budgets, plans or forecasts regarding its revenues, earnings or other financial performance or results of operations; or (g) any change or proposed

  
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change in the debt ratings of the Company or any of its Subsidiaries or any debt securities of the Company or any of its Subsidiaries; provided that the exception in clauses (d), (f),
(g) shall not prevent or otherwise affect a determination that any Effect underlying such failure has resulted in, or contributed to, a Material Adverse Effect. 
 “Nasdaq” means the NASDAQ Global Select Market. 

“Oversubscription Privilege” shall have the meaning set forth in Section 2.1(b). 

“Parent” means American Entertainment Properties Corp. 

“Person” means an individual, a corporation, a partnership, a limited liability company, limited partnership, an
association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Previously Disclosed” means information set forth in or incorporated by reference into the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 or
its other reports and forms filed with the SEC under Sections 13(a), 14(a) or 15(d) of the Exchange Act on or after January 1, 2013 (except for risks and forward looking information set forth in the “Risk Factors” section of such
annual report or in any forward looking statement disclaimers or similar statements that are similarly non-specific and are predictive or forward looking in nature). 
 “Prospectus” means the prospectus, dated May 1, 2013, that forms a part of the Registration Statement, including all documents incorporated therein by reference, as from time to time
amended or supplemented pursuant to the Securities Act or the Exchange Act, including by the Prospectus Supplement. 

“Prospectus Supplement” means the prospectus supplement relating to the Rights and the Common Stock to be issued in the
Rights Offering to be filed pursuant to Rule 424 under the Securities Act. 
 “Record Date” means the date as
of which each record holder of Common Stock will be entitled to receive one (1) Right for each share of Common Stock held as of such date, which date shall be a date selected by the Board in accordance with the DGCL and the requirements of
Nasdaq. 
 “Registration Rights Agreement” means the Registration Rights Agreement between the Company and the
Investor in substantially the form set forth in Exhibit A. 
 “Registration Statement” the registration
statement on Form S-3 (Registration No. 333-187424), which became effective on May 1, 2013, including all documents incorporated therein by reference, as from time to time amended or supplemented pursuant to the Securities Act or the
Exchange Act, including by any information contained in any prospectus or prospectus supplement that is deemed to be a part of the Registration Statement pursuant to Rule 430B under the Securities Act. 

  
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 “Representatives” means, with respect to a Person, such Person’s
directors, officers, investment bankers, attorneys, accountants and other advisors or representatives. 

“Rights” shall have the meaning set forth in Section 2.1(b). 

“Rights Offering” shall have the meaning set forth in Section 2.1(b). 

“SEC” means the Securities and Exchange Commission. 

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

“Special Committee” means a special committee of the Board comprised solely of directors who are independent for
purposes of Nasdaq rules. 
 “Subscription Period” shall have the meaning set forth in
Section 2.1(b). 
 “Subscription Price” means the volume-weighted average price of the Common Stock
as reported by Nasdaq, obtained from Bloomberg L.P., for the trading hours from 9:30 a.m. to 4:00 p.m., Eastern Standard Time on the date of the public announcement of the Rights Offering and the four trading days immediately preceding the date of
the public announcement of the Rights Offering. 
 “Subsidiary” means, with respect to any specified
Person, (a) any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting
agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); (b) any partnership a general partner or a managing general partner of which is such Person or a Subsidiary of such Person; and
(c) any limited liability company a managing member or manager of which is such Person or a Subsidiary of such Person.  
 “Tax Allocation Agreement” shall have the meaning set forth in Section 5.5. 
 Section 1.2. Interpretation. When a reference is made in this Agreement to “Preamble,” “Articles,” “Sections” or “Annexes,” such reference shall be to a
Preamble, Article or Section of, or Annex to, this Agreement, unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural, and vice versa, and words importing any gender include the other gender.
The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the product of
negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to any
statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time 

  
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(and, in the case of statutes, include any rules and regulations promulgated under the statute) and all references to any section of any statute, rule or regulation include any successor to the
section. References to “words of similar import” with respect to Material Adverse Effect or materiality, does not include knowledge qualifiers. 
 ARTICLE II 
 THE RIGHTS OFFERING 

Section 2.1. The Rights Offering. 
 (a) As promptly as practicable after the date of this Agreement, the Company shall use its reasonable best efforts to prepare the Prospectus Supplement. The Prospectus Supplement and any amendment or
supplement to the Prospectus in connection with the Rights Offering shall be provided to the Investor and its counsel prior to its filing with the SEC, and the Investor and its counsel shall be given a reasonable opportunity to review and comment
thereon. 
 (b) As soon as practicable following the Record Date, the Company shall file with the SEC and print the Prospectus
Supplement, distribute copies of the Prospectus Supplement to the holders of record of Common Stock as of the Record Date, and thereafter, promptly commence a rights offering on the following terms: (i) the Company shall distribute, one
transferable right (“Rights”) to each holder of record of Common Stock for each share of Common Stock held by such holder as of the Record Date; (ii) each Right shall entitle the holder thereof to subscribe to purchase, at the
election of such holder, a number of shares of Common Stock at the Subscription Price (the “Basic Subscription Privilege”), equal to such stockholder’s pro rata portion of shares of Common Stock with an aggregate value of
$500,000,000 calculated at the Subscription Price (the actual aggregate number of shares of Common Stock, the “Aggregate Offered Shares”) where such pro rata portion is calculated based upon the number of shares of Common Stock
owned of record (as reflected in the stock ledger maintained by the Company’s transfer agent) by a stockholder on the Record Date relative to the number of shares of Common Stock outstanding on the Record Date; (iii) the offering shall
remain open until June 27, 2013, but in no event shall be open for less than 20 days inclusive of June 27, 2013, which timing shall take into account the closing of the contemplated refinancing of the Company’s debt (or such longer
period as may be required by Law) (the “Subscription Period”); and (iv) each holder who fully exercises its Basic Subscription Privilege shall be entitled to subscribe for additional shares of Common Stock at the Subscription
Price pursuant to the instructions set forth in the Prospectus Supplement and related materials to the extent that other holders elect not to exercise all of their respective Rights under the Basic Subscription Privilege (the
“Oversubscription Privilege”); provided that if insufficient shares of Common Stock are available to satisfy all oversubscription requests, such requests shall be honored on a pro rata basis based upon the number of shares of
Common Stock each holder subscribed for in the Basic Subscription Privilege (such rights offering, the “Rights Offering”). No fractional shares of Common Stock shall be issued in connection with the Rights Offering. The number of
shares of Common Stock to be issued upon exercise by a holder of Rights will be rounded down to the next lowest whole number of shares of Common Stock. The Company shall use reasonable best efforts to engage in and complete the transactions
contemplated in Sections 2.1(a) and 2.1(b) as promptly as practicable. 

  
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 (c) The Investor hereby agrees that it will exercise all of its Rights under its Basic
Subscription Privilege. The Investor agrees to purchase and the Company agrees to issue and sell to the Investor such shares pursuant to this Section 2.1 at the Subscription Price. 

(d) The Company shall not amend any of the terms of the Rights Offering described in Section 2.1(b) or waive any conditions
to the closing of the Rights Offering without the prior written consent of the Investor and a Special Committee. Subject to the terms and conditions of the Rights Offering, the Company shall effect the closing of the Rights Offering as promptly as
practicable following the end of the Subscription Period. 
 (e) The Company shall pay all of its expenses associated with the
Registration Statement, the Prospectus, the Rights Offering and the other transactions contemplated hereby, including filing and printing fees, the fees and expenses of any subscription and information agents, the fees and expenses of its counsel,
accounting fees and expenses and costs associated with clearing the Common Stock offered for sale under applicable state securities Laws. 
 (f) The Investor shall provide to the Company such information as the Company may reasonably require in connection with the preparation and filing of the Prospectus Supplement and any amendment or
supplement to the Prospectus. No such information provided by the Investor shall contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
(i) at the time the Registration Statement became effective under the Securities Act and as of the “new effective date” with respect to the Rights Offering pursuant to, and within the meaning of, Rule 430B(f)(2) under the Securities
Act, and (ii) as of the date of the Prospectus Supplement and the closing date of the Rights Offering and the Closing Date. 
 (g) On the Closing Date the Company shall deliver to the Investor evidence of the issuance of the Acquired Shares in the name of the Investor against payment by or on behalf of the Investor of the
purchase price therefore by wire transfer of immediately available funds to the account designated by the Company in writing. 

ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as Previously
Disclosed, the Company represents and warrants to the Investor that: 
 Section 3.1. Organization. The Company is
duly incorporated and validly existing as a corporation in good standing under the Laws of the State of Delaware and has all corporate power and authority to own its property and assets and conduct its business in all material respects as currently
conducted. The Company is duly qualified as a foreign corporation for the transaction of business and is in good standing under the Laws of each other jurisdiction in which that nature of the business conducts or the property owned by it makes such
qualification necessary, except, in each case, as would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. 

  
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 Section 3.2. Authorization. The Company has the requisite corporate power and
authority to execute and deliver this Agreement and each Ancillary Agreement to which it is a party and to perform its obligations hereunder and thereunder. The execution, delivery and performance by the Company of this Agreement and each Ancillary
Agreement to which it is a party and the consummation of the transactions contemplated hereby and thereby have been (or will be when delivered) duly authorized by all necessary corporate action on the part of the Company, and no further approval or
authorization is required on the part of the Company, its board of directors or stockholders (except as expressly contemplated by this Agreement). This Agreement and each Ancillary Agreement to which the Company is a party constitute (or will
constitute when delivered) the valid and binding obligation of the Company, enforceable against the Company in accordance with their terms, except as such may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization or other
similar Laws affecting creditors’ rights generally and by general equitable principles, and except as may be limited by applicable Law and public policy. 
 Section 3.3. Valid Issuance of Shares. The Acquired Shares will be, as of the date or dates of their issuance, duly authorized by all necessary corporate action on the part of the Company and,
when issued and delivered by the Company against payment therefor as provided in this Agreement, (a) will be validly issued, fully paid and non-assessable and (b) will not be subject to any statutory or contractual preemptive rights or
other similar rights of stockholders. 
 Section 3.4. Non-Contravention; Authorizations. The Company’s
execution, delivery and performance of this Agreement and the Ancillary Agreements, issuance and delivery of the Acquired Shares, and consummation of the transactions contemplated hereby and thereby will not: (i) result in any violation of the
provisions of the charter or bylaws of the Company, (ii) conflict with or constitute a breach of or default (or, with the giving of notice or lapse of time, would be in default) under, result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company pursuant to, or require the consent of any other party to, any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company is a party
or bound or to which any of the property or assets of the Company is subject or (iii) result in any violation of any Law applicable to the Company or any Subsidiary, except, in the case of clauses (ii) and (iii), as would not, individually
or in the aggregate, have a Material Adverse Effect. Except for any application or other filing to be filed with Nasdaq and assuming the accuracy of the Investor’s representations and warranties in Section 4.2(c), no consent,
approval, authorization or other order of, or registration or filing with, any Governmental Entity or Nasdaq is required for the Company’s execution, delivery and performance of this Agreement and the Ancillary Agreements, the issuance and
delivery of the Acquired Shares or the consummation of the transactions contemplated hereby and thereby, except such as have been obtained or made by the Company. 
 Section 3.5. Registration Statement; Prospectus. The Registration Statement and the Prospectus, at the time the Registration Statement became effective and as of the closing date of the Rights
Offering and the Closing Date, will comply as to form in all material respects with the 

  
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applicable requirements of the Securities Act and the Exchange Act and the rules and regulations of the SEC thereunder. The Registration Statement, at the time it became effective under the
Securities Act and as of the “new effective date” with respect to the Rights Offering pursuant to, and within the meaning of, Rule 430B(f)(2) under the Securities Act, shall not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus, at the time the Registration Statement became effective and as of its date and the closing date of the Rights
Offering and the Closing Date, shall not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that, in each case, the Company makes no such representation with respect to information provided to it by the Investor pursuant to Section 2.1(f). The previous sentence is referred to as the “10b-5
Representation.” 
 Section 3.6. No Further Reliance. The Company acknowledges that it is not relying upon
any representation or warranty made by the Investor not set forth in this Agreement or in an Ancillary Agreement. 
 ARTICLE
IV 
 REPRESENTATIONS AND WARRANTIES OF INVESTOR 

The Investor represents and warrants to the Company that: 
 Section 4.1. Organization. The Investor is duly organized and validly existing as a limited liability company in good standing under the Laws of the State of Delaware. 

(a) Authorization. The Investor has the requisite power and authority to execute and deliver this Agreement and each Ancillary
Agreement to which it is a party and to perform its obligations hereunder and thereunder. The execution, delivery and performance by the Investor of this Agreement and each such Ancillary Agreement and consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary action on the part of the Investor, and no further approval or authorization is required on the part of the Investor, its managers or members. This Agreement and each Ancillary Agreement
to which the Investor is a party constitute (or will constitute when delivered) the valid and binding obligation of the Company, enforceable against the Investor in accordance with their terms, except as such may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization or other similar Laws affecting creditors’ rights generally and by general equitable principles, and except as may be limited by applicable Law and public policy. 

Section 4.2. Non-Contravention; Governmental Authorization. 

(a) The execution, delivery and performance by the Investor of this Agreement and the consummation of the transactions contemplated hereby
will not: (i) conflict with or violate any provision of its charter, bylaws or similar governing documents, (ii) conflict with or result in any breach of, or constitute a default (or, with the giving of notice or lapse of time, would be in
default) under, or give rise to any right to termination, acceleration or 

  
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cancellation under, any agreement, lease, mortgage, license, indenture or any other contract to which the Investor is a party or by which its properties may be bound or affected and
(iii) conflict with or violate any Law applicable to the Investor, except, in the case of clauses (ii) and (iii), as would not, individually or in the aggregate, reasonably be expected to materially and adversely affect the Investor’s
ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis. 

(b) Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative or other
Governmental Entity necessary in connection with the execution and delivery by the Investor of this Agreement and the consummation of the transactions contemplated herein (except for such additional steps as may be required by Nasdaq or such
additional steps as may be necessary to qualify the Acquired Shares under federal securities, state securities or blue sky Laws) has been obtained or made and is in full force and effect, except as would not, individually or in the aggregate,
reasonably be expected to materially and adversely affect the Investor’s ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis. 

(c) In connection with the Investor’s prior acquisition of control of the Company, Investor and all other Affiliates of Investor
required to do so made a timely filing pursuant to the Hart-Scott-Rodino Antitrust Improvements Act (“HSR Act”) on February 2, 2007. The waiting periods under the act expired and, accordingly, Investor obtained control of the
Company. Pursuant to Code of Federal Regulations 802.21, no further HSR Act filing will be required in connection with Investor’s purchase of any additional shares of the Company either in any private placement or public offering. 

Section 4.3. Securities Act Compliance. The Acquired Shares being acquired by the Investor hereunder are being acquired for
its own account, for the purpose of investment and not with a view to or for sale in connection with any public resale or distribution thereof in violation of applicable securities Laws. The Investor is an “accredited investor” within the
meaning of Rule 501(a) promulgated under the Securities Act and is knowledgeable, sophisticated and experienced in business and financial matters, and it fully understands the limitations on the ownership and sale, transfer or other disposition of
the Acquired Shares. The Investor is able to bear the financial risk of its investment in the Acquired Shares and is able to afford the complete loss of such investment. The Investor has been afforded access to information about the Company and its
financial condition and business, sufficient to enable the Investor to evaluate its investment in the Acquired Shares. The Investor understands that the Acquired Shares may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by Law. 
 Section 4.4. Ownership. As of the date of this Agreement, Investor and its Affiliates are the Beneficial Owners of 76,697,804 shares of Common Stock. 

Section 4.5. Financial Capability. As of the date hereof and at all relevant times under this Agreement, the Investor will
have available funds necessary to purchase the Acquired Shares on the terms and conditions contemplated by this Agreement. 

  
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 Section 4.6. No Further Reliance. The Investor acknowledges that it is not
relying upon any representation or warranty made by the Company not set forth in this Agreement or in an Ancillary Agreement. The Investor acknowledges that it has conducted such review and analysis of the business, assets, condition, operations and
prospects of the Company that the Investor considers sufficient for purposes of the purchase of the Acquired Shares. 

ARTICLE V 

COVENANTS 
 Section 5.1. Securities to be Issued. The Acquired Shares to be issued to the Investor pursuant to this Agreement shall be subject to the terms and provisions of the Company’s certificate
of incorporation. 
 Section 5.2. Share Listing. The Company shall use its reasonable best efforts to cause the
Common Stock to be issued in the Rights Offering to be issued and approved for listing on Nasdaq, subject to official notice of issuance. 
 Section 5.3. Minority Stockholder Protection. Except for the Acquired Shares as specifically contemplated by this Agreement, the Investor (together with all Affiliates of the Investor) shall
not, until the Closing Date acquire any additional shares of Common Stock. For a period of at least one (1) year from the Closing Date, the Investor and its Affiliates shall not effectuate a merger involving the Company in which any of the
Company’s stockholders is converted into the right to receive cash or other property other than stock of a surviving or resulting company at a one-for-one exchange ratio so as to create a holding company structure whereby immediately
following the implementation of that structure, the Corporation and each of its businesses will be held through a public holding company having the same stockholders as the Corporation had immediately prior to the
implementation of such structure (and shall not be permitted to effect any merger pursuant to Sections 253 or 267 of the General Corporation Law of the State of Delaware involving the Company). For purposes of this provision, the Company shall
include any successor in interest to the Company or any holding company of the Company. For the avoidance of doubt , the Investor and its Affiliates shall have no obligation to engage in any such transaction following such one year period and the
Company shall have no obligation to consent to or approve any such transaction at any time. 
 Section 5.4. ERISA
Indemnity. Icahn Enterprises Holdings L.P. (“Holdings”) and Investor shall indemnify the members of the FMC Group (as defined in the Tax Allocation Agreement (as defined below)) for any and all liability imposed upon any member
of the FMC Group pursuant to the Employee Retirement Income Security Act of 1974, as amended, or any regulation thereunder (hereinafter “ERISA”) resulting from such member of the FMC Group being considered a member of a controlled
group within the meaning of ERISA § 4001(a)(14) of which Parent is a member, except with respect to liability in respect to any employee benefit plan, as defined by ERISA § 3(3), maintained by any member of the FMC Group or any
other Person (as defined in the Tax Allocation Agreement) in which FMC (as defined in the Tax Allocation Agreement) has any direct or indirect investment constituting a 5% or greater interest in such person. Holdings and Investor hereby represent
that, except as disclosed on Exhibit C to 

  
 11 

 
this Agreement, to the best of their knowledge, there are no material unfunded liabilities with respect to any employee benefit plan maintained by any member of the controlled group within the
meaning of ERISA § 4001(a)(14) of which Parent is a member, other than with respect to employee benefit plans maintained by members of the FMC Group. 
 Section 5.5. Tax Allocation Agreement. If and solely to the extent that the Investor’s purchase of the Acquired Shares would cause the Company to become part of an affiliated group of
corporations as defined in Section 1504 of the Internal Revenue Code of 1986, as amended, of which Parent is the common parent, the Company and Parent shall enter into a tax allocation agreement (the “Tax Allocation Agreement”)
in the form attached hereto as Exhibit B. 
 ARTICLE VI 

TERMINATION 
 Section 6.1. Termination. This Agreement may be terminated at any time prior to the occurrence of the Closing Date by mutual agreement of a Special Committee, acting on behalf of the Company,
and the Investor. This Agreement shall be terminated by either a Special Committee, acting on behalf of the Company, or the Investor upon written notice to the other party to this Agreement if the Rights Offering is not consummated by
August 15, 2013. 
 Section 6.2. Effects of Termination. In the event of the termination of this Agreement as
provided in Section 6.1, this Agreement shall forthwith become wholly void and of no further force and effect, except as expressly provided in Section 7.1; provided that nothing herein shall relieve any party from
liability for any intentional and willful breach of this Agreement occurring prior to such termination. In determining losses or damages recoverable upon termination by a party hereto for the other party’s breach, the parties hereto acknowledge
and agree that such losses and damages shall not be limited to reimbursement of expenses or out-of-pocket costs, and shall include the benefit of the bargain lost by such party. 

ARTICLE VII 
 MISCELLANEOUS 
 Section 7.1. Survival. Each of the
representations and warranties set forth in Section 3 and Section 4 shall survive the Closing Date. In addition, Section 5.3, Section 5.4, Section 7.2 and Section 7.7 shall
survive the Closing Date. 
 Section 7.2. Indemnification. 

(a) Notwithstanding anything in this Agreement to the contrary, from and after the date hereof, the Company agrees to indemnify and hold
harmless the Investor, its Affiliates and each of their respective officers, directors, partners, employees, agents and Representatives (the “Investor Indemnified Parties”), to the fullest extent lawful, from and against any and all
actions, suits, claims, proceedings, costs, losses, liabilities, damages, expenses (including reasonable and documented fees of counsel), amounts paid in settlement and 

  
 12 

 
other costs (collectively, “Losses”) arising out of or relating to (i) any inaccuracy in or breach of the Company’s representations or warranties contained in this
Agreement or (ii) the Company’s breach of any agreement or covenant made by the Company in this Agreement. Notwithstanding the above, there shall be no indemnity hereunder in respect of any Losses resulting from any action, suit,
claim, matter or proceeding initiated by or on behalf of a stockholder of the Company (other than the Investor, with respect to its rights under this Agreement against the Company) relating to the transactions contemplated by this Agreement.

 (b) Notwithstanding anything in this Agreement to the contrary, from and after the date hereof the Investor, agrees to
indemnify and hold harmless the Company, its Affiliates and each of their respective officers, directors, partners, employees, agents and Representatives (the “Company Indemnified Parties”), to the fullest extent lawful, from and
against any and all Losses arising out of or relating to (i) any inaccuracy in or breach of the Investor’s representations or warranties contained in this Agreement, or (ii) the Investor’s breach of any agreement or covenant made
by the Investor in this Agreement. 
 (c) An Indemnified Party shall give written notice to the Indemnifying Party of any claim
with respect to which it seeks indemnification promptly after the discovery by such Indemnified Party of any matters giving rise to a claim for indemnification pursuant to Section 7.2(a) or Section 7.2(b), and the
Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided that the
failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 7.2 unless and to the extent that the Indemnifying Party shall have been actually
prejudiced by the failure of such Indemnified Party to so notify the Indemnifying Party. Such notice shall describe in reasonable detail such claim. An Indemnified Party shall have the right to employ separate counsel in any such proceeding and to
participate in the defense thereof, provided that the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses;
(ii) the Indemnifying Party shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such proceeding; or (iii) the named parties to any such
proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to
represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and shall be liable for the reasonable and documented legal fees and expenses of one law firm retained by the Indemnified Party). The Indemnifying Party shall not be liable for any
settlement of any action, suit, claim or proceeding effected without its written consent. The Indemnifying Party will not, without the Indemnified Party’s prior written consent, settle or compromise any claim or consent to entry of any judgment
in respect thereof in any pending or threatened action, suit, claim or proceeding in respect of which indemnification has been sought hereunder unless such settlement or compromise includes an unconditional release of such Indemnified Party from all
liability arising out of such action, suit, claim or proceeding. 

  
 13 

 Section 7.3. Notices. All notices and other communications required or permitted
to be given under this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered personally or by facsimile, upon confirmation of receipt, (b) on the first Business Day following
the date of dispatch if delivered by a recognized next-day courier services, (c) upon receipt, if delivered by facsimile or other electronic transmission (provided confirmation of transmission and deliver is electronically generated and kept on
file by the sending party) or (d) on the third Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid, to the parties to this Agreement at the following address or to
such other address either party to this Agreement shall specify by notice to the other party: 
 If to the Company: 

Federal-Mogul Corporation 
 2655 Northwestern Highway 
 Southfield, Michigan 

Attention: General Counsel 
 Facsimile: (248) 354-7727 
 With a copy to (which shall not constitute
notice): 
 Winston & Strawn LLP 
 35 West Wacker Drive 
 Chicago, Illinois 60601 

Attention: Bruce A. Toth 
                  Erin G. Stone 
 Facsimile: (312) 558-5700 
 If to the Investor: 

IEH FM Holdings LLC 
 c/o Icahn Enterprises L.P. 
 767 Fifth Avenue, 46th Floor 

New York, New York 10153 
 Attention: Daniel A. Ninivaggi 
 Facsimile: (212) 658-9371 

With a copy to (which shall not constitute notice): 
 Icahn Enterprises L.P. 
 767 Fifth Avenue, 47th Floor 

New York, New York 10153 
 Attention: Keith L. Schaitkin 

                 Jesse A. Lynn 

Facsimile: (212) 688-1158 

  
 14 

 Section 7.4. Further Assurances. Each party hereto shall do and perform or cause
to be done and performed all further acts and shall execute and deliver all other agreements, certificates, instruments and documents as the other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of
this Agreement and the consummation of the transactions contemplated hereby. 
 Section 7.5. Amendments and Waivers.
Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is duly executed and delivered: (x) by a Special Committee, acting on behalf of the Company; and (y) by the Investor. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law. 
 Section 7.6. Fees and Expenses. Each party hereto shall pay all of its own fees and expenses (including attorneys’ fees) incurred in connection with this Agreement and the transactions
contemplated hereby. 
 Section 7.7. Successors and Assigns. This Agreement shall not be assignable or otherwise
transferable (by operation of law or otherwise) by any party hereto without the prior written consent of the other party hereto. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
 Section 7.8. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York. The parties hereby irrevocably submit to the exclusive jurisdiction of the Court of Chancery of the state of Delaware, or to the extent such court does not have subject matter
jurisdiction, the Superior Court of the State of Delaware or the United States District Court of the State of Delaware, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement
hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by said courts,
and the parties hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard and determined in the Court of Chancery of the state of Delaware, or to the extent such court does not have subject matter
jurisdiction, the Superior Court of the State of Delaware or the United States District Court of the State of Delaware. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter
of any such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 7.3, or in such other manner as may be permitted by applicable Law, shall be valid
and sufficient service thereof. 
 Section 7.9. Waiver of Jury Trial. Each party acknowledges and agrees that any
controversy that may arise under this agreement is likely to involve complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any
litigation directly or indirectly arising out of or relating to this agreement or the transactions contemplated by this agreement. 

  
 15 

 Section 7.10. Entire Agreement. This Agreement, together with the Ancillary
Agreements, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties and/or their Affiliates with
respect to the subject matter of this Agreement. 
 Section 7.11. Effect of Headings and Table of Contents. The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
 Section 7.12. Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable Law, such provision shall be deemed to be excluded from this Agreement and
the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by Law. 

Section 7.13. Counterparts; No Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures were upon the same instrument. No provision of this Agreement shall confer upon any Person other than the parties hereto any rights or remedies hereunder. 

Section 7.14. Specific Performance. The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of
this Agreement and to enforce specifically the terms and provisions hereof in the Court of Chancery of the State of Delaware or, to the extent such courts does not have subject matter jurisdiction, the United States District Court for the District
of Delaware, and each party hereto agrees to waive in any action for such enforcement the defense that a remedy at law would be adequate. 
 Section 7.15. Guaranty of Performance. Holdings hereby unconditionally and irrevocably guarantees the full and punctual payment (x) by Investor and Parent of each of their obligations
under this Agreement and (y) by Parent of each of its obligations under the Tax Allocation Agreement. 
 (Signature page
follows) 

  
 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Investment Agreement to be duly
executed by their respective authorized officers as of the date first written above. 
  

			
	FEDERAL-MOGUL CORPORATION
		
	 By:
	 	 /s/ Rainer Jueckstock

	 Name:
	 	 Rainer Jueckstock

	 Title:
	 	 Co-CEO

	
	 IEH FM HOLDINGS LLC

By: ICAHN ENTERPRISES HOLDINGS
 L.P., its sole
member
 By: ICAHN ENTERPRISES G.P., INC.,
 its general partner

		
	 By:
	 	 /s/ Sung Hwan Cho

	 Name:
	 	 Sung Hwan Cho

	 Title:
	 	 CFO

  

			
	 For Purposes of Section 7.15
  

ICAHN ENTERPRISES HOLDINGS L.P.
 By: ICAHN
ENTERPRISES G.P., INC.,
 its general partner

		
	 By:
	 	 /s/ Sung Hwan Cho

	 Name:
	 	 Sung Hwan Cho

	 Title:
	 	 CFO

  
 17 

 EXHIBIT A 
 FORM OF AMENDMENT AND JOINDER TO REGISTRATION RIGHTS AGREEMENT 

  
 A-1

 FORM OF AMENDMENT AND JOINDER TO 

FEDERAL-MOGUL CORPORATION 
 REGISTRATION RIGHTS AGREEMENT 
 This Amendment and Joinder to the
Federal-Mogul Registration Rights Agreement is dated as of             , 2013 (this “Joinder”), among Federal-Mogul Corporation, a Delaware corporation (the
“Company”), and IEH FM Holdings LLC, a Delaware limited liability company (the “Investor”). Capitalized terms used but not defined herein have the meaning ascribed to them in the Registration Rights Agreement (as
defined below). 
 R E C I T A L S 
 WHEREAS, the Company is party to that certain Registration Rights Agreement dated as of December 27, 2007 (the “Registration Rights Agreement”); 

WHEREAS, reference is hereby made to that certain Investment Agreement, dated as of
            , 2013, between the Company and the Investor (the “Investment Agreement”), pursuant to which the Investor will acquire from the Company shares of common stock,
par value $0.01 per share, of the Company (the “Shares”), in one or more transactions; 
 WHEREAS, the
execution and delivery of this Joinder is a condition precedent to the consummation of the transactions contemplated under the Investment Agreement; 
 WHEREAS, pursuant to Section 3(g) of the Registration Rights Agreement, certain amendments to the Registration Rights Agreement may be effected with the written consent of the Company and the Holders
holding a Majority in Interest of the then Outstanding Registrable Securities; 
 WHEREAS, the Investor currently owns a
Majority in Interest in the Outstanding Registrable Securities; 
 WHEREAS, the Company desires to join the Investor as a party
to the Registration Rights Agreement and amend the Registration Rights Agreement as set forth below. 
 NOW, THEREFORE, in
consideration of the foregoing premises and for other good and valuable consideration, the parties hereby agree as follows: 
 1. Amendment
of Registration Rights Agreement 
 (a) The introductory paragraph of the Registration Rights Agreement is hereby amended to
delete “(the “Major Holders”)”. 
 (b) Section 1 of the Registration Rights Agreement is hereby amended
to add the following definitions: 

  
 A-2

 “Investor Common Shares: shall mean the shares of common stock of the Company
acquired by IEH FM Holdings LLC pursuant to (i) that certain Investment Agreement dated as of             , 2013, between the Company and IEH FM Holdings LLC (the “Investment
Agreement”), including IEH FM Holdings LLC’s obligation to backstop the Company’s rights offering under Section 2.2(a) of the Investment Agreement and (ii) any shareholder rights offering conducted by the Company in
accordance with the Investment Agreement.” 
 “Major Holders: shall mean the parties listed on Schedule I to the
Registration Rights Agreement and IEH FM Holdings LLC.” 
 (c) The definition of “Initiating Holder” set forth in
Section 1 of the Registration Rights Agreement is hereby amended and restated in its entirety to read as follows: 

“Initiating Holder: shall mean with respect to (i) Reorganization Common Stock, any Major Holder or Major Holders who in
the aggregate are holders of more than 20% of the then outstanding Reorganization Common Stock, (ii) PIK Debt, any Major Holder or Major Holders who in the aggregate are holders of more than 20% of the then outstanding principal amount of PIK
Debt, and (iii) Investor Common Shares, any Major Holder or Major Holders who in the aggregate are holders of more than 20% of the then outstanding Investor Common Shares.” 

(d) The definition of “Registrable Securities” set forth in Section 1 of the Registration Rights Agreement is hereby
amended and restated in its entirety to read as follows: 
 “Registrable Securities: shall mean the PIK Debt, the
shares of Reorganization Common Stock and the Warrants (together with any securities issued or issuable in respect thereof by way of a dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or
other reorganization or otherwise) issued or issuable to the Holders pursuant to the Plan; the Investor Common Shares (together with any securities issued or issuable in respect thereof by way of a dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise); and any Reorganization Common Stock or Investor Common Shares that may be purchased from time to time by a Major Holder or its affiliates after the
Effective Date, provided, however, that any shares of Reorganization Common Stock or Investor Common Shares that cease to be owned by a Holder or any of its affiliates shall cease to be Registrable Securities; provided further,
however, that Registrable Securities shall not include any Securities acquired by any Person (other than a Major Holder) in the market or otherwise (other than directly from a Major Holder in a transaction that includes a contractual
assignment to such Person of such Major Holder’s registration rights under this Agreement) subsequent to the Effective Date or acquired in any other manner other than pursuant to the terms of the Plan. For the purpose of determining whether one
is a Holder, the record and beneficial owner of Class B Common Stock shall be deemed to hold the Class A Common Stock into which 

  
 A-3

 
the Class B Common Stock would convert if it were transferred by such record and beneficial owner. Any Holder who may offer and sell all of its Reorganization Common Stock, its PIK Debt or its
Investor Common Shares to the public in a transaction that (i) does not involve a registration under the Securities Act or (ii) is pursuant to an exemption from registration in which the volume of sales is not required to be limited shall
no longer be deemed to hold Registrable Securities that would enable it to require the Company to include such securities in a registration statement pursuant hereto.” 
 (e) The first clause of the first sentence of Section 2(a)(i) is hereby amended as follows: 
 “Request for Registration. If the Company shall receive from an Initiating Holder, at any time after the Effective Date, subject to Section (2)(i), if applicable, a written request that the
Company effect any registration with respect to more than 10% of the Reorganization Common Stock, more than 10% of the outstanding principal amount of the PIK Debt or more than 10% of the Investor Common Shares, the Company will:” 

2. Joinder 
 (a) Investor
acknowledges receipt of a copy of the Registration Rights Agreement and, after review and examination thereof, by execution of this Joinder does hereby agree to be bound by the terms, conditions and agreements contained therein in its capacity as a
Holder there under. By execution hereof, the Investor hereby consents to the amendment of the Registration Rights Agreement in accordance with Section 3(g) thereof. 
 (b) By execution hereof, the Company hereby (i) accepts Investor’s agreement to be bound by the Registration Rights Agreement, (ii) covenants and agrees that the Registration Rights
Agreement is hereby amended to include Investor as a party in a capacity as Holder and (iii) agrees that Investor shall have all rights provided to a Holder under the Registration Rights Agreement. 

3. Miscellaneous 
 (a)
Interpretation; Headings. From and after the date hereof, each reference in the Registration Rights Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, shall mean
and be a reference to the Registration Rights Agreement as amended hereby. The headings of the sections and subsections of this Joinder are inserted for convenience only and shall not be deemed to constitute a part thereof. 

(b) Registration Rights Agreement Otherwise Unaltered. Except as specifically set forth above, the Registration Rights Agreement
shall remain unaltered and in full force and effect and the respective terms, conditions or covenants thereof are hereby in all respects ratified and confirmed. 

  
 A-4

 (c) Governing Law. This Joinder shall be governed by and construed in accordance with
the laws of the State of New York without regard to the principles of conflicts of law. 
 (d) Severability. In the event
that any part or parts of this Joinder shall be held illegal or unenforceable by any court or administrative body of competent jurisdiction, such determination shall not affect the remaining provisions of this Joinder which shall remain in full
force and effect. 
 (e) No Third Party Beneficiaries. The parties hereto acknowledge and agree that there are no
intended third party beneficiaries to this Joinder and no third parties have any rights under or relating to this Joinder 
 (f)
Counterparts. This Joinder may be executed in two or more counterparts (including by facsimile), each of which shall be deemed an original and all of which together shall be considered one and the same agreement. 

[Signature page follows] 

  
 A-5

 IN WITNESS WHEREOF, the undersigned have executed this Joinder as of the date first set forth above.

  

			
	FEDERAL-MOGUL CORPORATION
		
	By:	 	 
	 Name:
 Title:
	 	

  

			
	IEH FM HOLDINGS LLC
		
	By:	 	 
	 Name:
 Title:
	 	

  
 A-6

 EXHIBIT B 
 FORM OF TAX ALLOCATION AGREEMENT 

  
 B-1

 FORM OF TAX ALLOCATION AGREEMENT 

Agreement (the “Agreement”) as of             , 2013 (the
“Effective Date”) by and among American Entertainment Properties Corp. (“Parent”), a Delaware corporation, having offices at 9017 S. Pecos Road, Suite 4350, Henderson, Nevada 89074 and Federal-Mogul Corporation, a Delaware
corporation (“FMC”), having offices at 26555 Northwestern Highway, Southfield, Michigan 48033 and the FMC Subsidiaries (as defined below). 
 WHEREAS, Parent is the common parent of an affiliated group (as such term is defined in the Internal Revenue Code of 1986, as amended, or any succeeding law (the “Code”)) of corporations for
federal income tax purposes which, as of             , 2013, includes the FMC Group (as defined below): 
 WHEREAS, Parent and its subsidiaries have been filing U.S. consolidated federal income tax returns (“Consolidated Federal Returns”) and will continue to file Consolidated Federal Returns for all
periods in which Parent and FMC are members of an affiliated group (as defined in the Code); 
 WHEREAS, it is contemplated that
the FMC Group will continue to file separate state income or franchise tax returns unless Parent elects to file such returns on a consolidated or combined basis with the FMC Group (“Consolidated State Returns”); 

WHEREAS, FMC has minority shareholders; and 
 WHEREAS, Parent and FMC believe it is desirable to provide for the allocation and payment of federal and state income tax liabilities and certain related matters. 

NOW, THEREFORE, in consideration of the foregoing and of the covenants set forth below, the parties hereto have agreed as follows:

  

	1.	Definitions. 

  

	 	(i)	“Consolidated Returns” mean all Consolidated Federal Returns and Consolidated State Returns. 

 

	 	(ii)	“Federal Income Taxes” means any income tax imposed under the Code including, without limitation, the corporate income tax, the minimum tax imposed on
corporations, and the personal holding company tax. 

  
 B-2

	 	(iii)	“FMC Group” means FMC together with the FMC Subsidiaries. “FMC Subsidiaries” means all direct and indirect subsidiaries of FMC that are eligible to
be included in a Consolidated Return (as defined below) with FMC. “FMC” means FMC and any corporation that becomes the owner of 100% of the stock of FMC as a result of any transaction (whether by merger or otherwise) and such corporation
shall be treated as a member of the FMC Group. 

  

	 	(iv)	“State Income Taxes” means any income or franchise tax imposed under the tax law of any state (or political subdivision thereof) including, without
limitation, corporate income taxes and minimum taxes. 

  

	 	(v)	“Net Operating Loss” means the amount of any net operating loss as defined in the Code or under any similar provision of the tax law of any state.

  

	 	(vi)	“Net Capital Loss” means the amount of any net capital loss as defined in the Code or under any similar provision of the tax law of any state.

  

	 	(vii)	“Credit” means the amount of any tax credit allowed under the Code or under any similar provision of the tax law of any state including, without limitation,
investment tax credits and foreign tax credits. 

  

	 	(viii)	The “Regulations” means final, temporary and proposed regulations issued by the U.S. Secretary of the Treasury interpreting the Code.

  

	 	(ix)	The “Consolidated Group” means the affiliated group (as defined in the Code) of which Parent (or its successor) is the common parent, for so long as such
affiliated group files a Consolidated Return. 

  

	 	(x)	“Tax Benefits” as to any entity (or group of entities) means the Net Operating Loss, Net Capital Loss, and Credits generated by or available to such entity
(or group of entities) and any carryforwards thereof. 

  

	 	(xi)	 “Final Determination” shall mean the final resolution of liability for any Tax for a taxable period, (i) by IRS Form 870 or 870-AD (or
any successor form thereto), on the date of the final acceptance by or on behalf 

  
 B-3

	 	
of a party thereto, or by a comparable form under the laws of another jurisdiction; except that a Form 870 or 870-AD or comparable form that reserves (whether by its terms or by operation of law)
the right of the taxpayer to file a claim for refund and/or the right of taxing authority to assert a further deficiency shall not constitute a Final Determination; (ii) by a decision, judgment, decree, or other order by a court of competent
jurisdiction, which has become final and unappealable; (iii) by a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or comparable agreement under the laws of another jurisdiction; (iv) by any
allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the Tax imposing jurisdiction; or (v) by any other final
disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 

  

	 	(xii)	“Excess FMC Tax Benefit” means any Tax Benefit of the FMC Group (determined as if the FMC Group had always filed separate Consolidated Returns with respect to
the FMC Group) that reduces the liability of the Consolidated Group for Federal Income Taxes or Consolidated State Income Taxes for any year ending after the date hereof in excess of the Section 4(d) Reimbursed Tax Benefits.

  

	2.	Joinder in Consolidated Returns. 

  

	 	(a)	 FMC hereby agrees and consents to (i) join with the Consolidated Group in the filing of Consolidated Returns with respect to any fiscal year in
which Parent elects to file such returns, (ii) use its best efforts to cause each of the FMC Subsidiaries to consent to the filing of Consolidated Returns for such years, (iii) furnish to Parent at its expense all information relating to
members of the FMC Group as may be necessary or appropriate for the preparation of Consolidated Returns, (iv) execute and deliver to Parent, and use its best efforts to cause the FMC Subsidiaries to execute and deliver to Parent, all consents,
directors’ 

  
 B-4

	 	
resolutions and other documentation which Parent may reasonably require to evidence Parent’s authority to file Consolidated Returns, and (v) maintain the same fiscal year as Parent and
use its best efforts to cause the FMC Subsidiaries to maintain the same fiscal year as Parent for all periods in which Parent and FMC are members of an affiliated group (as defined in the Code). 

 

	 	(b)	Parent hereby consents to join with the Consolidated Group in the filing of Consolidated Returns; provided, however, that Parent is not precluded from taking any action
which would require Parent to discontinue the filing of Consolidated Returns including, without limitation, a sale or other disposition of all or a portion of its stock ownership in FMC and/or the filing of an application with the Commissioner of
Internal Revenue, or other appropriate authorities, including tax authorities of any state (or political subdivision thereof) (“Taxing Authorities”) on behalf of the Consolidated Group, requesting permission to discontinue the filing of
Consolidated Returns. 

  

	 	(c)	Parent shall prepare and file Consolidated Returns on behalf of the Consolidated Group. Parent shall make all decisions regarding any elections or other matters
relating to the preparation and filing of Consolidated Returns. 

  

	 	(d)	FMC will promptly pay to Parent a reasonable and appropriate amount for all out-of-pocket expenses (including legal and accounting expenses) incurred by Parent in
connection with any administrative or judicial proceedings with respect to such Consolidated Returns to the extent that such proceedings are reasonably allocable to the FMC Group. 

 

	3.	Payment of Tax and Refunds. 

 Subject to the provisions of this Agreement and compliance with the terms hereof, Parent shall be obligated to and shall make all payments and be entitled to all refunds of Federal Income Taxes and
estimated Federal Income Taxes on behalf of any and all members of the Consolidated Group, and shall indemnify and hold the members of the FMC Group harmless against all such Taxes (including penalties and interest) provided, however, that the FMC
Group shall be entitled to any refunds of the FMC Group for taxable periods ended prior to FMC joining the Consolidated Group. Further, subject to the provisions of this Agreement and 

  
 B-5

 
compliance with the terms hereof, whenever Parent elects to file state or local income or franchise tax returns on a consolidated or combined basis, Parent shall be obligated to and shall make
all payments and be entitled to all refunds of such State Income Taxes and estimated State Income Taxes (such actual and estimated State Income Taxes are referred to herein as “Consolidated State Income Taxes”) on behalf of all members of
the Consolidated Group, and shall indemnify and hold the members of the FMC Group harmless against all such Taxes (including penalties and interest), provided, however, that the FMC Group shall be entitled to any refunds of the FMC Group for taxable
periods ended prior to FMC joining the Consolidated Group. Subject to the provisions of Section 5(a) of this Agreement, (and to the extent not indemnified pursuant to the two immediately preceding sentences) for all periods on or after the date
hereof, Parent shall indemnify and hold FMC and the other members of the FMC Group harmless against all Federal Income Taxes, Consolidated State Income Taxes, and State Income Taxes and local income taxes payable by or with respect to any member of
the Consolidated Group other than the members of the FMC Group, including any interest and penalties with respect thereto and reasonable out-of-pocket expenses (including legal and accounting expenses) incurred by the FMC Group in connection with an
administrative or judicial proceeding initiated by a governmental authority relating to any such tax. 
  

	4.	Payments by FMC to Parent. 

  

	 	(a)	 FMC shall pay to Parent, for the Consolidated Group’s taxable year (or portion thereof) commencing on or after the Effective Date and subsequent
taxable years or periods during which FMC is included in a Consolidated Return with the Consolidated Group, an amount equal to the amount of Federal Income Taxes and Consolidated State Income Taxes that the FMC Group would have been required to pay
to the Internal Revenue Service and the taxing authorities of any state (or political subdivision thereof) (“Taxing Authorities”) if it were not part of the Consolidated Group and if the FMC Group had filed separate Consolidated Returns
for federal, state and/or local tax purposes, as the case may be, with respect to the FMC Group (the “FMC Group Taxes”). The above calculation shall give effect to any federal, state or local Net Operating Loss, Net Capital Loss and Credit
carryforwards which would have been available to the FMC Group if it had never been included in a Consolidated Return with the 

  
 B-6

	 	
Consolidated Group (which shall include, without limitation, FMC Group Tax Benefits existing when FMC joined the Consolidated Group), but such calculation shall be subject to (i) any
reduction pursuant to Section 4(d) of this Agreement and (ii) any audit adjustments and any limitations on the utilization of tax attributes (including, without limitation, such carryforwards and any limitations on the utilization of
interest, depreciation, amortization or other similar deductions) of the FMC Group imposed by law. For 2013, the taxable year of the FMC Group shall be the period commencing on the Effective Date and ending on December 31, 2013.

  

	 	(b)	FMC shall pay to Parent any amount (including amounts in respect of estimated tax) that would be due on the basis of the foregoing calculations within three
(3) business days after Parent notifies FMC of the calculated amount, but in no event earlier than the times such payments are, or would be required, to be made to the applicable Taxing Authorities. The excess of any amounts paid to Parent,
with respect to estimated tax payments under Section 4(a) of this Agreement for a taxable year, over the liability of the FMC Group to Parent under this Section 4(b) for such year, shall be refunded by Parent to FMC within three
(3) business days after FMC notifies Parent that it has made such an excess payment. At FMC’s election, such refund may be applied as a credit against any future estimated tax payment of the FMC Group under this Agreement.

  

	 	(c)	FMC shall indemnify and hold Parent harmless against any liability for any interest and penalties with respect thereto imposed upon Parent by reason of any false or
fraudulent information supplied by any member of the FMC Group to Parent in connection with the determination of the federal, state, or local income tax liability payable by any member of the Consolidated Group. 

 

	 	(d)	 If, for any taxable year ending after the date hereof during which FMC is included in a Consolidated Return with the Consolidated Group, a Tax Benefit
of the FMC Group that it would have had had it filed a separate Consolidated Return for federal, state and/or local taxes, as the case may be, reduces the liability of the Consolidated Group for Federal Income Taxes or Consolidated State Income

  
 B-7

	 	
Taxes (with such reduction in liability being measured as the excess, if any, of (x) such liability computed as though the FMC Group had never been included in a Consolidated Return with the
Consolidated Group over (y) such liability), then Parent shall pay to FMC an amount equal to twenty percent (20%) of the amount of such reduction within thirty (30) days after the filing of such Consolidated Return; provided that such
calculation shall be subject to any Final Determination affecting computation of any item included in such calculation and any limitations on the utilization of tax attributes (including, without limitation, such carryforwards and any limitations on
the utilization of depreciation, amortization or other similar deductions) of the FMC Group imposed by law. For purposes of calculating any Net Operating Loss, Net Capital Loss and Credit carryforwards of the FMC Group pursuant to Section 4(a)
of this Agreement, twenty percent (20%) of any Tax Benefits taken into account in the calculation of a payment made by Parent pursuant to the preceding sentence (the “Section 4(d) Reimbursed Tax Benefits”) shall be deemed to have been
used by the FMC Group. It is intended that payments under this Section 4(d) shall be characterized for tax purposes as contributions to capital by Parent to FMC, and the parties shall not take any position inconsistent with such
characterization. 

  

	5.	Further Provisions. 

  

	 	(a)	In the event of a Final Determination with respect to the tax liability of the Consolidated Group, appropriate adjustments (including, without limitation, adjustments
to FMC’s payment obligation under Section 4(a) of this Agreement) shall, except as inconsistent with this Agreement, be made hereunder consistent with such Final Determination. Further, FMC shall pay to Parent any interest, penalties and
additions to tax imposed in connection with a Final Determination to the extent that such amounts are attributable to items of FMC or its subsidiaries. Similarly, Parent shall pay FMC any interest received from a governmental authority in connection
with a Final Determination that there has been an overpayment, together with the amount of any refund received, to the extent attributable to items of FMC or its subsidiaries (except to the extent attributable to any Section 4(d) Reimbursed Tax
Benefits). 

  
 B-8

	 	(b)	Payments under this Section 5 shall be made promptly after the amounts thereof are determined. For purposes of this Agreement, any Net Operating Loss, Net Capital
Loss, or Credit shall be carried forward. 

  

	 	(c)	Except as specifically provided in this Agreement, neither Parent nor FMC shall be obligated to make any payments to the other with respect to Federal Income Taxes or
State Income Taxes for any taxable year or period (including any taxable year or period occurring after FMC is no longer included in a Consolidated Return with the Consolidated Group). 

 

	6.	Adjustments After Deconsolidation. 

  

	 	(a)	If there is a change in the ownership of the stock of FMC (a “Deconsolidation Event”) and FMC ceases to join in the filing of Consolidated Federal Returns and
where applicable, Consolidated State Returns with Parent, and any member of the FMC Group would have been entitled, if FMC had never joined in the filing of such Consolidated Returns, to carry forward to a taxable year (“Post–Consolidation
Year”) which is not a taxable year for which FMC joined in the filing of such Consolidated Returns, an Excess FMC Tax Benefit (“Non–Available FMC Carryforward Items”), then no later than April 15 following each
Post–Consolidation Year, Parent shall be obligated to pay to FMC an amount equal to the excess of (i) the FMC Group’s actual Federal Income Taxes and, where applicable, actual State Income Taxes for such Post–Consolidation Year
over (ii) such Federal Income Taxes and, where applicable, State Income Taxes for such Post–Consolidation Year computed as if such Non–Available FMC Carryforward Items were available to the FMC Group. The calculation in
Section 6(a)(ii) above shall be subject to any audit adjustments and any limitations on the utilization of the Non–Available FMC Carryforward Items imposed by law (including, without limitation, any such limitation imposed or which would
have been imposed as a result of the Deconsolidation Event). It is intended that payments under this Section 6(a) shall be characterized for tax purposes as contributions to capital by Parent to FMC, and the parties shall not take any position
inconsistent with such characterization. 

  
 B-9

	 	(b)	Parent shall not be required to make payments to FMC under Section 6(a) of this Agreement to the extent that such payments would cause cumulative payments made by
Parent to FMC under Section 6(a) of this Agreement to exceed the cumulative reductions in Federal Income Taxes and, where applicable, Consolidated State Income Taxes, of the Consolidated Group which resulted from the Consolidated Group’s
use of Excess FMC Tax Benefits. Such cumulative reductions shall be determined (i) by deeming the reduction in State Income Taxes (if any) to be reduced by any corresponding increase in Federal Income Taxes; (ii) without any adjustment for
an increase or reduction in Federal Income Taxes (and, where applicable, Consolidated State Income Taxes) resulting from the Deconsolidation Event; and (iii) by apportioning the reduction in Federal Income Taxes and, where applicable,
Consolidated State Income Taxes, resulting from the use of Tax Benefits of members of the FMC Group and non–members in accordance with the principles of the federal income tax consolidated return regulations (and similar provisions of
applicable state tax law) that determine the Tax Benefits that would be attributed to a member in the event such member ceases to be a member of the consolidated group. 

 

	7.	Late Filing. 

Notwithstanding any other provisions of this agreement, Parent shall indemnify and hold harmless the FMC Group against any interest or
penalties incurred by reason of late filing of any Consolidated Return for the Consolidated Group, or by reason of late payment of any tax or estimated tax for the Consolidated Group, unless such late filing or late payment is due to the fault of
FMC or any other member of the FMC Group. 
  

	8.	State Taxes. 

 FMC and
each of the FMC Subsidiaries shall continue to prepare and file all applicable state tax returns, at their own expense, and to pay, or cause its subsidiaries to so prepare, file and pay, all amounts shown to be due thereunder unless Parent elects to
have FMC and/or members of the FMC Group file state and/or local tax returns on a consolidated or combined basis with Parent. 

  
 B-10

	9.	Accounting. 

  

	 	(a)	For the purpose of the computation of assumed tax liabilities herein, all payments made (i) by Parent to FMC and (ii) by FMC to Parent, pursuant to the
provisions thereof shall not be considered income to the recipient of the payment or an expense of the payor, but rather shall be considered the payment of a tax. Any difference between a Consolidated Group member’s tax liability under this
Agreement and such member’s liability under Treasury Regulation Sections 1.1502-33 and 1.1552-1 shall be treated as a distribution with respect to its stock or as a contribution to its capital, as the case may be. 

 

	 	(b)	The calculation of the amounts hereunder shall be determined by Parent; provided, however, that if FMC disputes such determination, KPMG LLP or another mutually
acceptable nationally recognized accounting firm shall determine such amounts. 

  

	10.	Certain Transactions. 

Notwithstanding anything in this Agreement to the contrary, in the event of the occurrence of any transaction the result of which is that
there are no longer any holders (other than Parent and its Affiliates or any other single person or “group” as such term is used in Rule 13D under the Securities Exchange Act of 1934) of equity securities of FMC, all of Parent’s
payment obligations under this Agreement shall terminate immediately prior to the transaction and for purposes of Section 4(a) of this Agreement, the computation of the FMC Group Taxes shall not give effect to any Net Operating Loss, Net
Capital Loss or Credits carryforwards referred to in the second sentence thereof. For the purpose of determining holders of equity securities pursuant to this Section 10, neither (x) warrantholders who have no right to receive equity
securities of FMC on exercise thereof nor (y) the holders of equity securities of the acquiring company, shall be considered holders of equity securities. 

  
 B-11

	11.	Parties. 

 Any corporation
which is a FMC Group member on the date hereof or which becomes a FMC Group member at any time subsequent to such date shall automatically be subject to the terms and conditions of this Agreement. If any entity other than Parent shall become the
common parent of the affiliated group of corporations for federal income tax purposes which includes members of the FMC Group, Parent shall cause such entity to enter into an agreement substantially identical to this Agreement with FMC. 

 

	12.	Notices. 

 All notices,
requests, consents and other communications hereunder shall be in writing and shall be deemed to have been duly and properly given or sent (a) on the date when such notice, request, consent or other communication is personally delivered with
receipt acknowledged, or (b) if mailed, three (3) days after the date on which the same is deposited in a post office box and sent by certified or registered mail, return receipt requested, postage prepared and addressed to the party for
whom intended at its address set forth below or to such other address or addresses as any of the parties hereto shall theretofore designated by notice hereunder. 
 If to Parent, at: 
 American Entertainment Properties Corp. 

9017 S. Pecos Road – Suite 4350 
 Henderson, Nevada 89074 
 If to FMC or the FMC Subsidiaries, at: 

Federal-Mogul Corporation 
 26555 Northwestern Highway 
 Southfield, Michigan 48033 

 

	13.	Entire Agreement. 

 This
agreement (a) contains the entire understanding of the parties hereto with respect to the subject matter hereof, (b) shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and
performed therein, and (c) shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 

  
 B-12

	14.	Amendments. 

 This
Agreement may not be modified, changed or amended except by a writing signed by all parties hereto. 
  

	15.	Further Assurances. 

 Each
of the parties hereto agrees to execute, acknowledge, deliver, file, record and publish such further certificates, instruments, agreements and other documents, and to take all such further actions as may be required by law or deemed necessary or
useful in furtherance of the objectives and intentions underlying this Agreement and not inconsistent with the terms hereof. 
  

	16.	Captions. 

 Captions are
inserted for convenience only and shall not be given any legal effect. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement as of June             , 2013. 
  

			
	American Entertainment Properties Corp.
		
	By:	 	 
	Name:	 	Craig Pettit
	Title:	 	Vice President – Tax Administration
	
	 Federal-Mogul Corporation
 (on behalf of itself and the FMC Subsidiaries)

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 B-13

 EXHIBIT C 
 ACF Industries LLC (“ACF”) is the sponsor of several pension plans. All the minimum funding requirements for these plans have been met as of March 31, 2013 and December 31, 2012. If
the plans were voluntarily terminated, they would be underfunded by approximately $127 million and $130 million as of March 31, 2013 and December 31, 2012, respectively. These results are based on the most recent information provided by
the plans’ actuaries. These liabilities could increase or decrease, depending on a number of factors, including future changes in benefits, investment returns, and the assumptions used to calculate the liability. 

  
 C-1EX-10.1

 Exhibit 10.1 
 STOCK PURCHASE AGREEMENT 
 This Stock Purchase Agreement
(“Agreement”) is between ASTRONICS CORPORATION, a corporation organized under the laws of New York (“Buyer”), PECO, INC., a corporation organized under the laws of the state of Oregon, USA (“Company”), and the
shareholders of the Company identified on the signature page (collectively, “Sellers”). 
 Section 1. DEFINITIONS

 Unless defined elsewhere in this Agreement, capitalized terms used in this Agreement will have the meanings ascribed to
them in the attached Appendix A. 
 Section 2. SHARES 

At the Closing, Sellers will sell the Shares to Buyer and Buyer will buy the Shares from Sellers. 

Section 3. PURCHASE PRICE 
 Purchase Price. The purchase price for the Shares (the “Purchase Price”) is One Hundred Thirty-Six Million Dollars US ($136,000,000.00), less unpaid Indebtedness, less unpaid Sellers
Transaction Expenses, as adjusted in accordance with Section 3.3. 
 Payment. Subject to
Section 3.3, Buyer will pay the Purchase Price as follows: 
 (a) at the Closing, Buyer will pay the Purchase Price
less the Holdback Amount by cashier’s check or wire transfer of immediately available funds to the Sellers’ Representative, from which each Seller shall receive such Sellers’ Pro Rata Percentage, subject to the provisions of
Section 19.19(a)(6) (reserves for future expenses). 
 (b) Buyer shall hold back from the Purchase Price the sum of
Seven Million Dollars ($7,000,000) (the “Holdback Amount”) until the Holdback Amount Release Date on which date the Holdback Amount less any indemnity payments due to Buyer in accordance with the provisions of Sections 3.2(c), 14.2 and
14.3 and less the amount of all pending Buyer’s claims for indemnification and /or payment under Sections 3.2(c), 14.2 and 14.3 shall be released to the Sellers’ Representative. At the Closing, Buyer shall pay the Holdback
Amount to the Escrow Agent, who shall hold such funds in escrow pursuant to the terms of this Agreement and the Environmental Escrow Agreement. 
 (c) Buyer shall hold back from the Purchase Price an additional sum of Five Million Dollars ($5,000,000) (the “Environmental Holdback Amount”) to be used by Buyer and the Company to address
costs associated with the Pre-Closing Environmental Liabilities as described in Section 11.4. The Environmental Holdback Amount shall be released in accordance with the provisions of Section 11.4 and the Environmental Escrow
Agreement. Notwithstanding anything to the contrary in this Agreement, should the Environmental Holdback Amount be completely exhausted prior to the release of the Holdback Amount, Buyer shall have the ability to offset costs associated with the
Pre-Closing Environmental Liabilities against the Holdback Amount. 

 Working Capital Adjustment. 

(c) If the Company’s Closing Working Capital exceeds the Company’s Target Working Capital by more than $100,000: 

(1) the Purchase Price for the Shares will be increased by the Working Capital Adjustment Amount on a dollar for dollar basis, and

 (2) Buyer will promptly deliver to Sellers’ Representative a certified check or wire transfer in the amount of the
Working Capital Adjustment Amount. 
 (d) If the Company’s Closing Working Capital is less than the Company’s Target
Working Capital by more than $100,000: 
 (1) the Purchase Price for the Shares will be decreased by the Working Capital
Adjustment Amount on a dollar for dollar basis, and 
 (2) Sellers’ Representative will promptly deliver to Buyer a
certified check or wire transfer in the amount of the Working Capital Adjustment Amount. 
 Working Capital Adjustment
Procedure. 
 (e) Within 60 days after the Closing Date, Buyer will deliver to Sellers’ Representatives the
Buyer’s calculation of the Company’s Closing Working Capital, together with a copy of the Closing Date Balance Sheet. The Closing Date Balance Sheet: 
 (1) will fairly present the assets and liabilities of the Company as at the Closing Date, excluding the unpaid Indebtedness and unpaid Sellers Transaction Expenses that were either deducted from the
Purchase Price or paid with proceeds of the Purchase Price at Closing; 
 (2) subject to the provisions of
Section 4.7, will be prepared in a manner consistent with the preparation of the Financial Statements; and 
 (3)
will be prepared from the books and records of the Company as consistently and historically maintained. 
 (f) If Sellers’
Representative fails to object in writing to Buyer’s calculation of the Company’s Closing Working Capital within 30 days after the delivery of the Closing Date Balance Sheet, Buyer’s calculation will be binding on the parties and used
to compute the Working Capital Adjustment Amount. 
 (g) If Sellers’ Representative objects in writing to Buyer’s
calculation of the Company’s Closing Working Capital within 30 days after the delivery of the Closing Date Balance Sheet, and if the parties are unable to agree on the Company’s Closing Working Capital within 30 days after the delivery of
Sellers’ objection: 
 (1) the parties will submit all issues remaining in dispute to an independent public accountant
(the “Independent Accountant”) to be selected by the parties within 30 days after Buyer’s receipt of Sellers’ written objection. If the parties cannot agree upon a single Independent Accountant during such period, then each party
shall designate its own independent public accountant who shall then confer among themselves and they shall then designate an Independent Accountant to resolve the dispute; 

 (2) the Independent Accountant shall consider only those items (2) and amounts in
Buyer’s and the Sellers’ Representative’s respective determinations of the Company’s Closing Working Capital that are identified as being items and amounts to which Buyer and the Sellers’ Representative have been unable to
agree. In resolving any such disputed item or amount, the Independent Accountant may not assign a value to any item or amount that is higher than the highest value for such item or amount claimed by either party or lower than the lowest value for
such item or amount claimed by either party; 
 (3) each of Sellers’ Representative and Buyer will furnish the Independent
Accountant with any documents and information that the Independent Accountant may request; 
 (4) each of Sellers’
Representative and Buyer may present to the Independent Accountant any additional documents and information relating to the disputed issues; 
 (5) the Independent Accountant’s resolution of the disputed issue will be binding on the parties and used to compute the Company’s Closing Working Capital and the Working Capital Adjustment
Amount; and 
 (6) each of Sellers’ Representative and Buyer will pay 50% of the Independent Accountant’s fees,
costs, and expenses. 
 Section 4. REPRESENTATIONS AND WARRANTIES OF SELLERS 

Except for the express representations and warranties in this Agreement, Sellers expressly exclude all warranties with respect to the
Transaction, express and implied. Except as disclosed in Schedule 4 (“Seller’s Disclosure Schedule”) or in any other schedule hereto, Sellers represent and warrant to Buyer as follows: 

Status and Organization. 
 (a) The signature page sets forth the name of each Seller; 
 (b) The Company is a
corporation duly organized and validly existing under the laws of the State of Oregon. The Company is not currently registered as a foreign corporation in any other state, nor does the character or location of the assets owned, leased or operated by
it or the nature of the business conducted by it require such registration as a foreign corporation. Sellers have delivered to Buyer complete and accurate copies of the Articles of Incorporation and Bylaws of the Company as of the date of this
Agreement. 
 Authority. Sellers have full power and authority to sign and deliver this Agreement and the other
Transaction Documents to which they are party and to perform all of their obligations under this Agreement and such Transaction Documents. The Company has full corporate power and authority to conduct the Company’s business as it is now being
conducted, to own and use the Company’s assets, and to perform all of the Company’s obligations under its contracts and contractual commitments. 
 Binding Obligation. The Transaction Documents executed by Sellers will, when delivered to Buyer, constitute the legal, valid, and binding obligation of Sellers, enforceable against Sellers in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, or other similar laws of general application or by general principles of equity. 

 No Conflicts. The signing and delivery of the Transaction Documents by Sellers and,
if applicable, by the Company and the performance by Sellers of all of their obligations contemplated thereby will not result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default (or
give rise to any right of termination, modification, payment or acceleration) under, or result in the creation of any Lien on any of the properties or assets of the Company under: 

(c) the Articles of Incorporation or Bylaws of the Company; 
 (d) subject to obtaining and making any of the approvals, consents, notices and filings referred to in paragraph (d) below, any Contract to which any Seller or the Company is a party; or 

(e) subject to obtaining and making any of the approvals, consents, notices and filings referred to in paragraph (d) below, any Law
or Governmental Order applicable to the Company or any Seller or by which any of his, her or its properties or assets may be bound; or 
 (f) require the prior consent, authorization, approval of, or filing with, or notice to, any Person, including but not limited to any governmental body, except for: (i) consent required by the change
in control provisions set forth in the Company’s contracts with The Boeing Company and Mitsubishi Heavy Industries, Ltd., (ii) the registration requirements with the State Department’s Directorate of Defense Trade Controls to remain
compliant with International Traffic in Arms Regulations (“ITAR”), and (iii) required filings and expiration of applicable waiting periods under the HSR Act. 
 Capitalization. 
 (g) Appendix B sets forth: 

(1) the number of authorized shares of the Company’s capital stock; 

(2) the name of each record and owner of all Shares; and 
 (3) the number of Shares owned by each record owner. 
 (h) There are no
outstanding or authorized Rights or other equity interest in the Company pursuant to which the Company is or may become obligated to issue, deliver or sell, or cause to be issued, delivered or sold, stock or other equity interest in the Company or
any securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire, any stock or other equity interest in the Company; 
 (i) All of the issued and outstanding equity securities of the Company were issued in compliance with applicable securities laws; 
 (j) All of the issued and outstanding shares of the Company were validly issued and are fully paid and nonassessable; 
 (k) There are no agreements or commitments to which any Seller or the Company is a party or by which any of them are bound to (i) repurchase, redeem or otherwise acquire any outstanding equity
securities or voting interest in the Company or any other Person, other than the Buy-Sell Agreement, including amendments thereto, among the Sellers and Company, or (ii) vote or dispose of any shares or other equity or voting interest in the
Company, except for revocable proxies authorized from time to time by one or more Sellers; and 

 (l) There are no irrevocable proxies or voting agreements with respect to any Shares.

 Title to Shares. Sellers have good title to the Shares, free from all Liens. 

Financial Statements. The Company has delivered to Buyer true and complete copies of the financial statements of the Company
listed on Schedule 4.7 (the “Financial Statements”). The Financial Statements: 
 (m) consist of the audited
balance sheets of the Company as of December 31, 2011 and 2012 and the related statements of income for the two (2) years ended December 31, 2011 and 2012 and (ii) the unaudited balance sheet of the Company as at
February 28, 2013 and the related unaudited statements of income for the two (2) months then ended (the unaudited balance sheet of the Company as at February 28, 2013, is hereinafter referred to as the “Interim Balance
Sheet”). 
 (n) have been prepared in accordance with GAAP, except, with respect to the Interim Balance Sheet and the
related unaudited statements of income for the two (2) months ended February 28, 2013, for the absence of notes and normal year-end audit adjustments. 
 (o) fairly present the financial condition and the results of operations, changes in shareholders’ equity, and cash flow of the Company as at the dates and as of the periods specified; 

Books and Records. The books of account and records of the Company: 

(p) are complete and accurate in all material respects; 
 (q) represent actual, bona fide transactions; and 
 (r) have been maintained in
accordance with sound business practices, including the maintenance of an adequate system of internal accounting controls. 

Real Property. Except as otherwise set forth on Schedule 4.9, the Company does not currently and has never owned any real
property. Schedule 4.9 sets forth a true and complete list of each lease or sublease relating to the use or occupancy of the Leased Real Property (the “Leases”). Each Lease is in full force and effect, and with respect to each Lease
(i) all rents and additional rents due to date on the Lease have been paid; (ii) the Company is not in material default thereunder; (iii) no waiver of the Company’s obligations under the Lease has been granted by the lessor, and
(iv) to the Knowledge of the Sellers, there exists no event, occurrence, condition or act which, with the giving of notice or the lapse of time, would give rise to a right of termination by the lessor under such Lease or give rise to any
material liability of the Company under such Lease. 
 Tangible Personal Property. 

(s) Schedule 4.10 sets forth (i) a true and complete list of each item of Tangible Personal Property owned by the Company
having a book value in excess of $50,000 and (ii) a true and complete list of each item of Tangible Personal Property leased by the Company having an annual rental in excess of $100,000. Except as set forth in Schedule 4.10, there is no
Tangible Personal Property with a book value in excess of $50,000 used by the Company other than the Tangible Personal Property reflected in the Initial Balance Sheet or thereafter acquired, except for Tangible Personal Property disposed of by the
Company in the Ordinary Course of Business since the date of the Initial Balance Sheet; 

 (t) the Tangible Personal Property, taken as a whole, has been properly maintained and is in
reasonable working order and adequate for its intended use, ordinary wear and tear and normal repairs and replacements excepted; and 
 (u) all of the Tangible Personal Property of the Company is in the Company’s possession at the Leased Real Property, except for certain assets in the possession of overseas suppliers as set forth on
Schedule 4.10, and except as set forth on Schedule 4.10, there is no Tangible Personal Property used by the Company located at the Leased Real Property which is not owned or leased by the Company. 

Inventories. 
 (v) Schedule 4.11 sets forth all Inventory of the Company as of two business days prior to the date of this Agreement. Except as set forth in Schedule 4.11, (i) the Inventory is in the
physical possession of the Company and (ii) none of the Inventory has been pledged as collateral or otherwise is subject to any Lien or is held on consignment from others, except for the security interest granted to US Bank National
Association; 
 (w) except as set forth on Schedule 4.11, all of the Inventory reflected on the Initial Balance Sheet
(net of (b) reserves for excess and obsolete Inventory as reflected thereon) is useable and salable by the Company in the Ordinary Course of Business; and 
 (x) all of the Inventory that was purchased by the Company after the date of the Initial Balance Sheet was purchased in the Ordinary Course of Business at market prices. 

Accounts Payable and Accounts Receivable. 
 (y) Schedule 4.12 sets forth a true and complete list of the accounts receivable and accounts payable of the Company as of two business days prior to the date hereof. 

(z) Except with respect to the accounts payable and accounts receivable related to the TriMet Light Rail Condemnation Project, each
account payable and account receivable that required to be set forth on Schedule 4.12 represents a valid obligation arising from sales actually made or services actually performed by the Company or by its vendors in the Ordinary Course of
Business, and all of such accounts receivable (less any provision or reserve recorded on the Initial Balance Sheet or in Schedule 4.12) are collectible in full, without any setoff or counterclaim, in the Ordinary Course of Business and in any
event not later than one hundred (120) days after the Closing Date. 
 (aa) Except as set forth in Schedule 4.12,
the accounts payable do not include any amounts owing from the Company with respect to personal property acquired by the Company in connection with the relocation of a portion of its West Plant facilities resulting from the TriMet condemnation for
which the Company has already received payment; and 
 (bb) any reserve for uncollectible accounts receivable shown on the
Initial Balance Sheet is adequate and calculated in a manner consistent with past practice and the Financial Statements. 

 Intellectual Property. 

(cc) Schedule 4.13(a) sets forth a true and complete list of (i) all issuances and registrations of Intellectual Property
owned by or issued to the Company, (ii) each pending application therefor by the Company and (iii) each license, sublicense or other agreement which the Company has granted to any third party with respect to any of its Intellectual
Property. Each such issuance, registration and application has been duly and validly registered in, filed in or issued by, the official governmental registrars and/or issuers (or officially recognized issuers) of patents, trademarks, copyrights or
Internet domain names, in the appropriate jurisdictions in the United States. Except as set forth on Schedule 4.13(a), (i) each such registration, issuance and application (A) has not been abandoned, canceled or terminated,
(B) has been maintained effective by all requisite filings, renewals and payments and (C) remains in full force and effect as of the Closing Date and (ii) with respect to each item of Intellectual Property required to be identified in
Schedule 4.13(a): (A) the Company possesses all right, title and interest in and to the item, free and clear of any Liens or licenses, (B) the item is not subject to any outstanding Governmental Order, (C) no Proceeding is
pending or, to the Knowledge of the Sellers, threatened which challenges the legality, validity, enforceability, use or ownership of the item and (D) other than routine indemnities given to distributors, sales representatives, dealers and
customers, the Company has no current obligations to indemnify any Person for or against any interference, infringement, misappropriation, or other conflict with respect to the item. 

(dd) Schedule 4.13(b) sets forth a true and complete list of each item of Intellectual Property that any third party owns and that
the Company uses pursuant to a license, sublicense or other agreement (other than commercially available off-the-shelf licenses or embedded software). The Sellers have delivered to Buyer true and complete copies of all such licenses, sublicenses and
other agreements (as amended to date). Except as set forth on Schedule 4.13(b), with respect to each item of Intellectual Property required to be identified in Schedule 4.13(b): (i) each license, sublicense or other agreement
covering the item is enforceable against the Company and, to Seller’s Knowledge, the other party or parties thereto and, following the Closing, will continue to be enforceable on substantially similar terms and conditions, (ii) neither the
Company nor, to the Knowledge of the Sellers, any other party to a license, sublicense or other agreement is in breach or default, and, to the Knowledge of the Sellers, no event has occurred which, with notice or lapse of time, would reasonably be
expected to constitute a breach or default or permit early termination, modification or acceleration thereunder, (iii) neither the Company nor, to the Knowledge of the Sellers, any other party to a license, sublicense or other agreement has
repudiated any provision thereof, (iv) to the Knowledge of the Sellers, the underlying item of Intellectual Property is not subject to any outstanding Governmental Order, (v) no Proceeding is pending or, to the Knowledge of the Sellers,
threatened against the Company which challenges the legality, validity, enforceability or use of the underlying item of Intellectual Property and (vi) the Company has not granted any sublicense or similar right with respect to any license,
sublicense or other agreement. 
 Sufficiency of Assets. Except for certain assets identified in Schedule 4.14,
which are in the process of being relocated, ordered, installed, and tested in connection with the TriMet Light Rail Project, the assets of the Company constitute all of the assets necessary to conduct the Company’s business as it is now being
conducted. 
 Title to Assets. Except for certain fixtures conveyed to TriMet in connection with the TriMet Light Rail
Project identified in Schedule 4.15, the Company has good title to its assets, free from all Liens. Immediately before the Closing, the Company will have good title to its assets, free from all Liens except Permitted Closing Encumbrances.

 Taxes. 
 (ee) The Company has delivered to Buyer (i) a true and complete copy of each Tax return and report filed by the Company during the 3-year period immediately prior to the date of this Agreement,
(ii) all audit reports, letter rulings, technical advice memoranda and similar documents issued by any Governmental Authority relating to Taxes due from or with respect to the Company and (iii) any closing agreements entered into by the
Company with any Governmental Authority in each case existing on the date hereof. 

 (ff) The Company has filed on a timely basis all Tax returns and reports required to be
filed by Law, including all foreign bank account reporting requirements. 
 (gg) The Company’s filed Tax returns and
reports are complete and accurate. 
 (hh) The Company has paid, or made provision for the payment of, all Taxes that have
become due for all periods; has complied with all Laws relating to the payment and withholding of Taxes and has, within the time and manner prescribed by Law, withheld and paid over to the proper Governmental Authorities all amounts required to be
withheld and paid over by it. 
 (ii) No Governmental Authority has asserted, or informed any Seller or the Company that it
intends to assert, any deficiency in the payment of any Taxes by the Company. 
 (jj) No filed Tax return of the Company is
currently being audited except for the recent audit of the 2010 U.S. federal Tax return; and there is no other audit, Proceeding, examination or similar claim that has been commenced or is presently pending or, to the Knowledge of the Sellers,
threatened with respect to any Taxes or Tax return of the Company. The 2010 federal Tax audit of the Company was closed without any penalties or adjustments, and the Company received a “no change report” from the IRS. 

(kk) The Company has not been given or been requested to give a waiver or an extension of any statute of limitations relating to the
payment of any Taxes, including any Tax assessment or deficiency. 
 (ll) The Company is not a party to any Tax sharing
agreement, Tax allocation agreement, Tax indemnity agreement, or similar Tax agreement that may require the Company to make any payment of any kind. 
 (mm) The Company has no liability for any Taxes of any other Person, other than obligations for real property Taxes pursuant to the Company’s Leases. 

(nn) No written claim has been made by any Governmental Authority within the last six years in a jurisdiction where the Company does not
file a Tax return that the Company is or may be subject to taxation in that jurisdiction. 
 (oo) The Company is not presently,
and has never previously been, a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code. 

(pp) The Company has not been required to include in income any adjustment pursuant to Section 481 of the Code by reason of a
voluntary change in accounting method initiated by the Company, and the Internal Revenue Service has not initiated or proposed any such adjustment or change in accounting method. 

 (qq) the Company is not a party to any agreement that would require it to make any payment
that would constitute an “excess parachute payment” for purposes of Sections 280G and 4999 of the Code. 
 (rr) The
Company has made a valid S corporation election under the Code, effective for the Tax year of the Company beginning July 1, 1987 and continuing in full force and effect through the date hereof; and the Company has not had any ineligible
shareholders that would disqualify or adversely affect such election. 
 No Undisclosed Liabilities. The Company has no
liabilities, obligations or Indebtedness of any kind, whether absolute, accrued, fixed or contingent, disputed or undisputed, matured or unmatured, liquidated or unliquidated, or secured or unsecured, except for: 

(ss) liabilities, obligations or Indebtedness reflected or reserved against on the Company’s audited financial statements for the
year ended December 31, 2012; 
 (tt) liabilities incurred in the Ordinary Course of Business since the date of the Initial
Balance Sheet (none of which results from, arises out of or relates to any breach of contract, breach of contractual warranty, tort, infringement or violation of law); 
 (uu) future liabilities under Contracts that do not arise out of or result from any breach of contract, breach of contractual warranty, tort, infringement or violation of law by the Company; and

 (vv) the environmental liabilities referred to in Schedule 4.28 and Section 11.4. 

No Material Adverse Change. Except for cash distributions to the Company’s shareholders and Employees and bonus payments
since the date of the Initial Balance Sheet, no material adverse change in the financial condition of the Company has occurred. Sellers have no Knowledge of any facts or circumstances that will likely result in a material adverse change in the
financial condition of the Company since the date of the Initial Balance Sheet. 
 No Other Changes. Since the date of
the Initial Balance Sheet: 
 (ww) the Company has conducted the Company’s business only in the ordinary course of the
Company’s business, except for the condemnation of a portion of its West Plant facility in connection with the TriMet Light Rail Project; 
 (xx) no change in the ownership of any equity securities of the Company has occurred; 
 (yy) the Company has not issued, sold, or bought any securities of the Company or Rights; 
 (zz) the Company has not become a party to any agreement, and has not become subject to any Law or Governmental Order, that requires or may require the Company to issue, sell, or buy any securities of the
Company or Rights; 
 (aaa) the Company has not amended or restated its articles of incorporation or bylaws; 

(bbb) the Company has not changed its accounting methods; 

 (ccc) no material loss or damage has occurred with respect to any asset of the Company with
a fair market value over $50,000, whether or not the loss or damage is covered by insurance; 
 (ddd) except as set forth in
Schedule 4.19, the Company has not sold, leased, transferred, waived any right with respect to, or otherwise disposed of any asset with a value of more than $100,000 other than inventory in the Ordinary Course of Business; 

(eee) the Company has not increased the salary, bonus payments, benefits, or other compensation of any director, officer, or employee,
other than in the Ordinary Course of Business; 
 (fff) no Employee Plan has been adopted, amended, or terminated, and the
Company has not withdrawn from any Employee Plan; 
 (ggg) except as set forth in Schedule 4.19, the Company has not
entered into any agreement, contract, lease or license involving more than $100,000, except for purchase orders and sales orders entered into in the Ordinary Course of Business; 

(hhh) except as set forth in Schedule 4.19, the Company has not accelerated, terminated, modified or cancelled any Contract
involving more than $100,000 (or had any other party thereto take such action); 
 (iii) the Company has not granted any Lien on
any of its assets; 
 (jjj) except as set forth in Schedule 4.19, the Company has not made any capital expenditures or
commitments therefor involving more than $100,000 individually or $1,000,000 in the aggregate; 
 (kkk) the Company has not
received any written notice from any customer with respect to any warranty claims, termination of contracts or purchase orders, or disputes as to amounts involving more than $100,000; 

(lll) except as set forth in Schedule 4.19, the Company has not entered into or amended any joint venture, partnership, strategic
alliance, co-marketing, joint development or similar agreement; and 
 (mmm) the Company has not entered into any contract or
otherwise committed or agreed, whether or not in writing, to do any of the foregoing. 
 Contracts. 

(nnn) Schedule 4.20 sets forth a true and complete list of all Contracts involving more than $100,000 annually. Except as set
forth in Schedule 4.20, each Contract is in full force and effect and there exists no (i) default or event of default by the Company or, to the Knowledge of the Sellers, any other party to any such Contract or (ii) event,
occurrence, condition or act (including the consummation of the transactions contemplated by this Agreement) which, with the giving of notice, the lapse of time or the happening of any other event or condition, would become a default or event of
default by the Company thereto or, to the Knowledge of the Sellers, any other party thereto, with respect to any material term or provision of any such Contract. 

 (ooo) Except as set forth on Schedule 4.20, the Company is not a party to any
Contract with any customer where the cost of completion of such Contract would be reasonably expected to exceed the balance of monies to be paid by a customer or other Person to the Company under such Contract. 

(ppp) No Contract to which the Company is presently a party contains a “change-of-control” or similar provision that will
require the Company to obtain the consent of any Person before the Closing, other than its contracts with The Boeing Company and Mitsubishi Heavy Industries, Ltd. and which consents will be obtained by Sellers prior to Closing. 

Insurance. 
 (qqq) The Company has delivered to Buyer a complete and accurate copy of each insurance policy that has provided coverage to the Company during the 5-year period before the date of this Agreement and each
insurance policy that provides coverage for environmental contamination. 
 (rrr) To Sellers’ Knowledge, 

(1) the insurance policies that provide coverage to the Company (i) are in full force and effect, except for insurance policies
that have been renewed, replaced, bought-out or are occurrence-based policies that are not currently in force but may provide coverage for occurrences more than three (3) years ago; (ii) provide adequate insurance coverage for all risks
normally insured against by a Person carrying on a similar business in a similar location, and for any other risks to which the Company is normally exposed; and (iii) are sufficient to comply with all material Contracts to which the Company is
a party; 
 (2) the Company has complied with the terms and conditions of each insurance policy in all material respects,
including the payment of all premiums; 
 (3) no act, circumstance, condition or event has occurred or exists that is
reasonably likely to result in the Company’s failure to comply with the terms and conditions of any applicable insurance policy or entitle any insurer to terminate or cancel such policies; and 

(4) the Company has not received any notice of cancellation or non-renewal of any of the insurance policies that are in full force and
effect and provide coverage to the Company. 
 Compliance With Laws. Except as otherwise provided on Schedule
4.22: 
 (sss) the Company is in compliance with all applicable Laws, Governmental Orders and Permits, except for such
non-compliance that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the business, assets or financial condition of the Company; 

(ttt) no act, circumstance, condition or event has occurred or exists that will likely result in the Company’s failure to comply in
all material respects with the terms and conditions of any applicable Law, Governmental Order or Permit; and 
 (uuu) during the
3-year period before the date of this Agreement, neither the Sellers nor the Company has received any written notice from any Governmental Authority or other Person regarding any actual, alleged, or potential failure by the Company to comply in any
material respect with any applicable Law, Governmental Order or Permit, and to the Knowledge of the Sellers, there are no presently existing facts, circumstances or events which, with notice or lapse of time, would result in the violation in any
material respect of any applicable Law, Governmental Order or Permit. 

 Governmental Authorizations. 

(vvv) Schedule 4.23 sets forth a list of each material license, Permit, registration, and other governmental authorization of the
Company. 
 (www) The Company’s governmental authorizations constitute all of the governmental authorizations required to
conduct the Company’s business as it is now being conducted. 
 (xxx) The Company has complied with the material terms and
conditions of each governmental authorization of the Company. 
 (yyy) No act, circumstance, condition or event has occurred or
exists that is reasonably likely to result in the Company’s failure to comply with the terms and conditions of any governmental authorization of the Company. 
 (zzz) Neither the Sellers nor the Company has received any written notice from any Governmental Authority or other Person regarding any actual, alleged, or potential failure by the Company to comply with
any governmental authorization of the Company, and to the Knowledge of the Sellers, there are no presently existing facts, circumstances or events which, with notice or lapse of time, would likely result in the violation of any applicable
governmental authorization; 
 (aaaa) No governmental authorization of the Company is subject to a “change-of-control”
or similar law or provision that would require a consent or a new registration other than the Company’s FAA and EASA certificates and the ITAR permit and the related registration with the Directorate of Defense Trade Contracts. 

Legal Proceedings. 
 (bbbb) Schedule 4.24 contains a complete list of each Proceeding that is pending or, to Sellers’ Knowledge, threatened against the Company. 

(cccc) Except as otherwise provided on Schedule 4.24: 
 (1) no act, circumstance, condition or event has occurred or circumstances exist that is reasonably likely to result in a Proceeding against the Company; and 

(2) no Proceeding listed on Schedule 4.24 could reasonably be expected to have a material adverse effect on the business, assets
or financial condition of the Company. 
 Orders. 

(dddd) Schedule 4.25 sets forth a true and complete list of each Governmental Order to which the Company is subject. 

(eeee) The Company has complied with the terms and conditions of each Governmental Order to which the Company is subject. 

(ffff) No act, circumstance, condition or event has occurred or exists that is reasonably likely to result in the Company’s failure
to comply with the terms and conditions of any Governmental Order to which the Company is subject. 

 (gggg) Neither the Sellers nor the Company has received any notice from any Governmental
Authority or other Person regarding any actual, alleged, or potential failure by the Company to comply with the terms and conditions of any Governmental Order to which the Company is subject. 

Employees. 
 (hhhh) Schedule 4.26 contains a true and complete list of each employee of the Company as of the date of this Agreement, including the following information for each employee: 

(1) name; 

(2) job title; 
 (3) date of hiring; 
 (4) current compensation, including base salary and
bonuses; 
 (5) unused personal time off (“PTO”); 

(6) service credited for purposes of vesting and eligibility to participate in each applicable Employee Plan. 

(iiii) (i) Except for its collective bargaining agreement with Teamsters’ Local Union #305, the Company does not have any
obligations under any written or oral labor agreement, collective bargaining agreement or other agreement with any labor organization or employee group, (ii) the Company is not currently engaged in any unfair labor practice and there is no
unfair labor practice charge or other employee-related or employment-related complaint pending or, to the Knowledge of the Sellers, threatened against the Company before any Governmental Authority, (iii) there is currently no labor strike,
labor disturbance, slowdown, work stoppage or other material labor dispute or arbitration pending or, to the Knowledge of the Sellers, threatened against the Company and no material grievance currently being asserted, (iv) the Company has not
experienced a labor strike, labor disturbance, slowdown, work stoppage or other material labor dispute at any time during the three (3) years immediately preceding the date of this Agreement and (v) to the Knowledge of the Sellers, there
are no pending or, to Sellers’ Knowledge, threatened claims against the Company by any Person for unpaid wages, wrongful termination, accidental injury or death, sexual harassment or discrimination or violation in any material respect of any
employment Law. 
 (jjjj) The Company has classified each individual who currently performs services for or on behalf of the
Company as a contractor or employee in accordance with all applicable Laws. 
 (kkkk) The Company currently uses E-Verify and
has on file (i) a valid Form I-9 for each current employee hired by it on or after November 6, 1986 and (ii) copies of Forms I-9 completed by former employees for three years after the date of each such employee’s hire or for one
year after the date each such employee’s employment ended, whichever date is later. All of the Company’s employees are (i) United States citizens or lawful permanent residents of the United States, (ii) aliens whose right to work
in the United States is unrestricted, (iii) aliens who have valid, unexpired work authorization issued by the U. S. Department of Homeland Security or (iv) aliens who have been continually employed by the Company since November 6,
1986. With respect to its employees, the Company has not been the subject of an immigration compliance or employment visit from, nor has it been assessed any fine or penalty by, or been the subject of any Order or directive of, the United States
Department of Labor or the U. S. Department of Homeland Security. 

 Employee Benefits. 

(llll) Schedule 4.27 sets forth a true and complete list of each Employee Plan. 

(mmmm) Sellers have delivered to Buyer copies of: 
 (1) each Employee Plan; 
 (2) all reports relating to each Employee Plan that the
Company has filed with any Governmental Authority; 
 (3) all rulings, determination letters, no-action letters, and advisory
opinions relating to each Employee Plan that the Company has received from any Governmental Authority; and 
 (4) all summary
plan descriptions relating to each Employee Plan. 
 (nnnn) With respect to each Employee Plan: 

(1) all contributions that have become due by the Company under the terms and conditions of such Employee Plan have been paid;

 (2) Except for the 401(k) audit report required for the 2012 plan year, which is due on October 15, 2013, the Company
has filed on a timely basis all reports and descriptions of each Employee Plan required to be filed by applicable Laws; 
 (3)
the Company has paid, or made provision for the payment of, all Taxes payable by the Company as required by such Employee Plan; 
 (4) the Company has paid all insurance premiums required to be made by the Company for such Employee Plan that have become due; 
 (5) the Company has not been required to provide security under Section 401(a)(29) of the Code; 
 (6) the consummation of the Transaction will not result in: 
 (A) any amendment
or termination of any Employee Plan, or the Company’s withdrawal from any Employee Plan; 
 (B) the payment by the Company
or any ERISA Affiliate of any Tax or penalty under Section 511 of the Code, Section 4971 of the Code, Section 4975 of the Code, or Section 502(l) of ERISA; 

(C) a violation by the Company or any ERISA Affiliate of Section 406 of ERISA; 

(D) the payment by the Company or any ERISA Affiliate of any minimum funding contribution under Section 302 of ERISA or
Section 412 of the Code; 

 (E) the payment by the Company or any ERISA Affiliate of any interest payment under
Section 302(e) of ERISA or Section 412(m) of the Code; or 
 (F) any lien on any property or right of the Company or
any ERISA Affiliate imposed under Section 302(f) of ERISA or Section 412(n) of the Code. 
 (7) neither any Seller
nor the Company has received any notice from any Governmental Authority or other Person regarding any actual, alleged, or potential withdrawal liability with respect to such Employee Plan that is a multiemployer plan under Section 4001(3) of
ERISA, other than a letter dated December 21, 2012, from the Western Conference of Teamsters Pension Trust with an estimated employer withdrawal liability of approximately $2,414,530, if the Company were to elect to withdraw from the Trust Fund
in 2012; and 
 (8) no Proceeding relating to such Employee Plan is pending or, to Sellers’ Knowledge, threatened against
the Company. 
 Environmental. The Company has provided access to Buyer of true and complete copies of all material
environmental reports, audits, studies, analyses, tests, site assessments, risk assessments and other similar documents with respect to the Company’s business or the Real Property or any other real property the Company has ever occupied,
controlled, operated or used. Except as otherwise provided on Schedule 4.28: 
 (oooo) the Company has no liabilities or
obligations of any kind (including, but not limited to, those retained or assumed by contract) arising out of or from any Environmental Law or environmental Permit, whether known or unknown, fixed or contingent, disputed or undisputed, matured or
unmatured, liquidated or unliquidated, or secured or unsecured; 
 (pppp) except for conditions that, either individually or in
the aggregate, would not reasonably be expected to result in the Company incurring material liability under Environmental Laws and except in accordance with a valid governmental Permit, license, certificate or approval, (i) there have been no
Releases of any Hazardous Substances into the environment by the Company; and, (ii) with respect to any Releases of Hazardous Substances, the Company have given all required notices to Governmental Authorities (copies of which have been made
available to Buyer); 
 (qqqq) no act, circumstance, condition or event has occurred or exists that will likely result in the
Company having any liability or obligation of any kind arising out of any Environmental Law or environmental Permit; 
 (rrrr)
the Company is currently in material compliance with all applicable Environmental Laws and environmental Permits, and has not received from any Person any written notice of an Environmental Claim; 

(ssss) the Company has obtained, and is in material compliance with, all environmental Permits necessary for the ownership, lease,
operation or use of the business, Real Property or assets of the Company; 
 (tttt) no proceeding listed on Schedule 4.28
will likely result in a material adverse change in the financial condition of the Company; and 
 (uuuu) neither any Seller nor
the Company has received any notice from any Governmental Authority or other Person regarding any actual, alleged, or potential failure by the Company to comply with the terms and conditions of any judgment or order relating to any Environmental
Law. 

 Affiliate Transactions. Except as set forth in Schedule 4.29, (i) there
are no Contracts, liabilities or obligations between the Company, on the one hand, and any of its Affiliates on the other hand and (ii) neither the Company nor any of its directors, shareholders, officers or employees possesses, directly or
indirectly, any financial interest in, or is a shareholder, director, officer, member, manager or employee of, any Person which is a client, supplier, customer, lessor, lessee, or competitor or potential competitor of the Company; provided however,
that it shall not be a violation of this Section 4.29 if any Seller owns less than five percent (5%) of the stock of a publicly held company that is a competitor or potential competitor of the Company. 

Suppliers and Customers. Schedule 4.30 sets forth the top ten (10) customers and suppliers of the Company, based on
aggregate dollar sales volume, for the period beginning on January 1, 2012 and ending on December 31, 2012. Except as set forth in Schedule 4.30, to the Knowledge of the Sellers, the relationship of the Company with each such
supplier and customer is a good commercial working relationship, and no such supplier or customer has canceled or otherwise terminated, or threatened to cancel or otherwise terminate, its relationship with the Company. The Company has not received
any written notice that any such supplier or customer may cancel or otherwise materially and adversely modify its relationship with the Company or limit its services, supplies or materials to the Company, or its usage or purchase of the services and
products of the Company either as a result of the transactions contemplated hereby or otherwise. Except as set forth in Schedule 4.30, no customer of the Company has any re-stocking rights or similar right to return any non-defective products
to the Company for reimbursement or credit. 
 Bank Accounts; Powers of Attorney. Schedule 4.31 sets forth a true
and complete list containing (i) the name and address of each bank in which the Company has an account or safe deposit box, the number of any such account or any such box and the names of all Persons authorized to draw thereon or to have access
thereto and (ii) the names of all Persons, if any, holding general powers of attorney from the Company and a summary statement of the terms thereof. 
 Product Warranties. 
 (vvvv) Schedule 4.32 contains a form of each
standard product warranty relating to products produced or sold by the Company or services performed by the Company which will be in effect on the Closing Date. 
 (wwww) To the Knowledge of the Sellers, no material defect exists in any design, materials, manufacture or otherwise in any products designed, manufactured, marketed or sold by the Company during the past
five (5) years which could give rise to any material claim. 
 (xxxx) Except as provided in any of the standard product
warranties described in Section 4.32 and as otherwise set forth in Schedule 4.32, the Company has not sold any products or services which are subject to an extended warranty of the Company beyond twelve (12) months and which
warranty has not yet expired 
 (yyyy) To the Knowledge of the Sellers, there are no statements, citations or decisions by any
Governmental Authority or any product testing laboratory stating that any product of the Company is unsafe or fails to meet any applicable standards, whether mandatory or voluntary, promulgated by such Governmental Authority or testing laboratory,
as the case may be. 

 Absence of Questionable Payments. The Company has not, nor, to the Knowledge of the
Sellers, has any of its shareholders, directors, officers, agents, employees or any other Persons acting on its behalf, (i) used any funds for unlawful contributions, unlawful gifts, unlawful entertainment or other unlawful expenses relating to
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns, (iii) accepted or received any unlawful contributions, payments,
expenditures or gifts or (iv) otherwise taken any action that would cause the Company to be in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable Law of similar effect. 

Export Control Regulations. 
 (zzzz) Schedule 4.34 contains (i) a true and complete list of all current and active import and export licenses issued by the United States government for the products imported or exported by
the Company and for the procurement by the Company of materials related to the manufacture of its products; (ii) a complete and current accounting of licensing exemptions used by the Company for products being imported or exported; and
(iii) all export related agreements, including, but not limited to, technical assistance agreements, manufacturing license agreements, distribution and warehousing agreements with any non-U.S. entity for the manufacture of export-controlled
designs or for the transfer of technical information between the Company and a non-U.S. Person and (iv) a true and complete list of all voluntary disclosures made, currently in process or proposed for submission to the U.S. Government by the
Company with respect to import and export matters. 
 (aaaaa) To the Knowledge of the Sellers, no current or past violation of
the regulations of the United States or of any foreign government as related to the import or export of the products of the Company has occurred. 
 (bbbbb) The Company has an Export Compliance Program that has been administered in such a manner so as to reasonably assure that the Company is in compliance in all material respects with the U.S.
Government regulations regarding the export of commercial and defense related products and technology. 
 No Brokers or
Finders. Sellers have not incurred any liability or obligation – whether contingent or otherwise – for a brokerage commission, a finder’s fee, or any other similar payment in connection with the Transaction except for their
financial advisor, Houlihan Lokey. Any transaction fees and expenses owed to Houlihan Lokey in connection with this Transaction will be paid by Sellers. 
 Section 5. REPRESENTATIONS AND WARRANTIES OF BUYER 
 Except for
the express representations and warranties in this Agreement, Buyer expressly excludes all warranties with respect to the Transaction, express and implied. Buyer represents to Sellers as follows: 

Organization. Buyer is a corporation duly organized and validly existing under the laws of New York. 

Authority. Buyer has full power and authority to sign and deliver this Agreement and the other Transaction Documents and to
perform all of Buyer’s obligations under this Agreement and such Transaction Documents. 
 Binding Obligation. The
Transaction Documents executed by Buyer will, when delivered to Seller, constitute the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, or other similar laws of general application or by general principles of equity. 

 No Conflicts. The signing and delivery of the Transaction Documents by Buyer and the
performance by Buyer of all of its obligations contemplated thereby will not result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination,
modification, payment or acceleration) under: 
 (a) the Articles of Incorporation or Bylaws of Buyer; 

(b) any agreement to which Buyer is a party; 
 (c) any Law or Governmental Order applicable to Buyer or by which any of its properties or assets may be bound; or 
 (d) require the consent, authorization, or approval of, or any filing with, or notice to, any Person, including but not limited to any Governmental Authority, except for the required filings and
expiration of applicable waiting periods under the HSR Act. 
 Legal Proceedings. No Proceeding is pending or, to
Buyer’s Knowledge, threatened against Buyer that: 
 (e) involves any challenge to or seeks any damages or other relief in
connection with the Transaction; or 
 (f) may have the effect of prohibiting, delaying, or imposing material limitations or
conditions on the Closing. 
 No Brokers or Finders. Buyer has not incurred any liability or obligation – whether
contingent or otherwise – for a brokerage commission, a finder’s fee, or any other similar payment in connection with the Transaction. 
 Investment. 
 (g) Buyer understands that the Shares are a speculative
investment and involve a high degree of risk of loss of Buyer’s investment. 
 (h) Buyer understands that Buyer may be
unable to liquidate Buyer’s investment in the Shares because the Shares are subject to substantial transfer restrictions and because no public market exists for the Shares. 

(i) Buyer has the knowledge and experience in financial and business matters necessary to make Buyer capable of evaluating the merits and
risks of an investment in the Shares. 
 (j) Buyer has had the opportunity to ask questions and receive answers concerning the
Company and the terms and conditions of the purchase of the Shares, and to obtain any additional information deemed necessary by Buyer to evaluate the merits and risks of an investment in the Shares. Buyer has obtained all of the information desired
in connection with the Shares. 
 (k) Buyer is acquiring the Shares solely for Buyer’s own account, for investment, and not
with a view to or for resale in connection with any distribution of the Shares. 

 (l) Buyer has no oral or written agreement or plan to sell, transfer, or pledge or otherwise
dispose of the Shares. 
 (m) Buyer understands that Buyer must bear the economic risk of owning the Shares for an indefinite
period of time. 
 (n) Buyer understands that the Shares have not been registered under the Securities Act of 1933 or any state
securities laws and that the Company is not obligated to register the Shares. 
 Section 6. COVENANTS OF SELLERS AND COMPANY
BEFORE CLOSING 
 Sellers and Company covenant to Buyer as follows: 

Buyer’s Investigation. Until the Closing and upon reasonable advance notice from Buyer, the Company will, during the
Company’s regular business hours and in a manner that does not unreasonably interfere with the operation of the Company’s business: 
 (a) afford Buyer and Buyer’s representatives full and free access to the Company’s personnel, Real Property, contracts, Permits, governmental authorizations, books of account and records, and
other data related to the Company; 
 (b) provide Buyer and Buyer’s representatives with copies of all contracts,
governmental authorizations, Permits, books of account and records, and other data related to the Company that Buyer may reasonably request; 
 (c) permit Buyer and Buyer’s representatives to inspect, test, and survey the Real Property of the Company, and inspect the personal property assets of the Company; and 

(d) otherwise cooperate and assist with Buyer’s investigation of the Company and its assets. 

Company’s Business. From the date of this Agreement until the Closing: 

(e) the Company will conduct the Company’s business only in the Ordinary Course of Business, subject to the TriMet Light Rail
Project and the related relocation; 
 (f) the Company will not issue, sell, or buy any Rights or securities of the Company;

 (g) the Company will not become a party to any agreement – and will not become subject to any Law or Governmental Order
– that requires or may require the Company to issue, sell, or buy any Rights or securities of the Company; 
 (h) the
Company will not change its accounting methods; 
 (i) the Company will not increase the compensation of any of its employees or
adopt, amend, terminate, or withdraw from any Employee Plan, except for such increases and any amendments of any Employee Plan provided for in the existing collective bargaining agreement of the Company; 

(j) Sellers will use Sellers’ best efforts to cause the Company to preserve the Company’s business organization and the
Company’s relations and goodwill with the Company’s customers, suppliers, lessors, creditors, employees, agents, and other business relations; 

 (k) the Company will keep books of account and records that: 

(1) are complete and accurate in all material respects; 
 (2) represent actual, bona fide transactions; and 
 (3) are maintained in
accordance with sound business practices, including the maintenance of an adequate system of internal accounting methods. 
 (l)
the Company will keep the Tangible Personal Property in good repair and operating condition, reasonable wear and tear excepted; 

(m) the Company will perform all of the Company’s liabilities and obligations under all Contracts and other agreements and
commitments to which the Company is a party; 
 (n) the Company will maintain the insurance coverage under the applicable
policies that provide coverage to the Company as of the date of this Agreement; 
 (o) the Company will not (i) grant any
special conditions with respect to any account receivable other than in the Ordinary Course of Business, (ii) fail to pay any account payable on a timely basis in the Ordinary Course of Business, (iii) make or commit to make any capital
expenditures in excess of $100,000 in the aggregate or (iv) start up or acquire any new business or product line which is not similar to or directly complementary to any existing business or product line without the prior written approval of
Buyer; 
 (p) the Company will comply with all applicable Laws and Governmental Orders; and 

(q) the Company will not voluntarily take any action which would cause, or voluntarily fail to take any action the failure of which would
cause, any representation or warranty of the Sellers set forth in this Agreement to be breached or untrue in any material respect. 
 Notification. Until the Closing, the Company will promptly notify Buyer if Sellers or the Company obtain Knowledge of: 
 (r) any material adverse change in the business of the Company; 
 (s) any material
adverse change in the financial condition of the Company; 
 (t) any material loss or damage with respect to any asset of the
Company with a fair market value over $50,000, other than equipment that is being replaced in connection with the TriMet Light Rail Project; 
 (u) any breach by Sellers of any representation or warranty in Section 4; 
 (v) the occurrence after the date of this Agreement of any fact or condition that would cause Sellers to commit a breach any representation or warranty in Section 4 if the representation or
warranty were made as of the date of the occurrence; 
 (w) any breach by Sellers or the Company of any covenant in this
Section 6; 

 (x) any communication with a Governmental Authority or Person regarding any prior or ongoing
remediation liabilities and obligations or any Environmental Claims related to the Real Property; or 
 (y) any event that makes
the satisfaction of any condition in Section 8 impossible or unlikely. 
 Financial Statements. Until the
Closing, the Company will deliver to Buyer within 20 days after the end of each calendar month the Company’s financial statements for the calendar month. The financial statements: 

(z) will fairly present the financial condition and the results of operations, changes in shareholders’ equity, and cash flow of the
Company as at the dates and as of the periods specified; 
 (aa) except as otherwise provided on Schedule 4.7, will have
been prepared in accordance with GAAP; 
 (bb) will reflect the consistent application of such accounting principles throughout
the periods involved, except as disclosed in the notes to the financial statements; and 
 (cc) will have been prepared in
accordance with the books of account and records of the Company. 
 Organizational Documents. The Company will not amend
or restate its articles of incorporation or bylaws. 
 Filings and Notices. Sellers and the Company will make all filings
and give all notices that Sellers and the Company are required to make and give to close the Transaction. Sellers and the Company will cooperate with Buyer with respect to all filings and notices that Buyer is required to make and give to close the
Transaction. 
 Consents. Sellers and the Company will use commercially reasonable efforts to obtain and to cause the
Company to obtain all consents, authorizations, and approvals that Sellers and the Company are required to obtain to close the Transaction. Sellers and the Company will cooperate with Buyer with respect to all consents, authorizations, and approvals
that Buyer and the Company are required to obtain to close the Transaction and conduct business immediately after the Transaction. 
 No Negotiations. Until such time as this Agreement may be terminated pursuant to Section 15, the Sellers will not, and will cause the Company not to, directly or indirectly, solicit,
initiate, encourage or entertain any inquiries or proposals from, or discuss or negotiate with any Person other than Buyer or its Representatives relating to an acquisition or other disposition of the Shares or any material assets, properties and
rights of the Company (other than the sale of products in the Ordinary Course of Business). 
 Update of Schedules. From
time to time prior to the Closing Date, Sellers and/or the Company may provide updates of all Schedules attached hereto to reflect changes thereto, including changes to any representations and warranties set forth in Section 4 as to which no
Schedules have been created as of the date hereof but as to which a Schedule would have been required to have been created on or before the date hereof if such changes had existed on the date hereof; provided, however, that to the extent the Sellers
or the Company does update any Schedules, the Sellers or the Company will deliver such updated Schedules not less than three (3) days prior to the Closing Date and will provide any additional information with respect to such updated Schedules
that Buyer may reasonably request within one (1) day after such request. If any such updated Schedule represents a material adverse change from such Schedule as attached to this Agreement on the date hereof, Buyer may terminate this Agreement
in reliance on Section 15. 

 Distributions of Cash. Prior to Closing, the Company may distribute or dividend its
cash to its shareholders, provided, however, that at Closing, the Company will have cash in its accounts in an amount sufficient to cover the amount of all checks written on accounts of the Company on or prior to the Closing Date that have not
cleared as of the Closing Date. For avoidance of doubt, the cash in the Company’s accounts will also include deposits that may not have cleared as of the Closing Date. 
 Conditions. Sellers will use commercially reasonable efforts to cause the conditions in Section 8 to be satisfied. 

Cooperation with Financing. To the extent Buyer reasonably requests in connection with the Financing, the Company shall, and shall
cause its officers, directors, employees, auditors, attorneys and financial advisors (collectively, “Company Representatives”) to: (i) reasonably cooperate in assisting in the preparation of any bank information memoranda, business
projections, customary and reasonably available marketing materials and other information to be used in connection with the syndication of the Financing; (ii) use their respective commercially reasonable efforts to be reasonably available for
meetings and due diligence sessions; (iii) cooperate with prospective lenders and their respective advisors in performing their due diligence; (iv) execute and deliver (subject to the occurrence of the Closing) or help procure credit
agreements, hedging arrangements, notes, mortgages, pledge and security documents, landlord waivers, estoppels, consents, and approvals and other definitive financing documents or other requested certificates or documents, including documents
relating to the payoff of existing Indebtedness and to the release of related Liens; (v) assist prospective lenders in connection with their evaluation of the Company’s current assets, cash management and accounting systems, and policies
and procedures relating thereto for the purpose of establishing collateral arrangements, and (vi) take all required corporate action (subject to the occurrence of the Closing) to authorize the Financing on the Closing Date; provided,
however, that (A) nothing herein shall require such cooperation to the extent it would interfere unreasonably with the business or operations of the Company, (B) the Company shall not be required to bear any cost or expense or to
pay any fee or make any other payment, other than for reasonable out-of-pocket expenses incidental to cooperation under this Section 6.12 that shall be reimbursed to the Company by Buyer prior to the Closing, and (C) the Company
shall have no liability or obligation in connection with the Financing prior to the Closing. 
 Section 7. COVENANTS OF BUYER
BEFORE CLOSING 
 Buyer covenants to Sellers as follows: 

Filings and Notices. Buyer will make all filings and give all notices that Buyer is required to make and give to close the
Transaction. Buyer will cooperate with Sellers and the Company with respect to all filings and notices that Sellers and the Company are required to make and give to close the Transaction. 

Consents. Buyer will use Buyer’s best efforts to obtain all consents, authorizations, and approvals that Buyer is required to
obtain to close the Transaction. Buyer will cooperate with Sellers and the Company with respect to all consents, authorizations, and approvals that Sellers and the Company are required to obtain to close the Transaction. 

Conditions. Buyer will use commercially reasonable efforts to cause the conditions in Section 9 to be satisfied.

 Financing Matters. Buyer is negotiating various financing options with respect to the
acquisition of the Shares. In connection with the negotiation of the definitive financing agreements (the “Definitive Financing Agreements”), (i) Buyer shall keep the Sellers’ Representative reasonably informed of the ongoing
status of any such negotiations, and (ii) Buyer shall conduct any such negotiations in good faith. Buyer shall use its commercially reasonable efforts to effect the closing of the financing on the terms set forth in the Definitive Financing
Agreements (the “Financing”) as soon as reasonably practicable on or before the Closing Date. 
 Section 8. CONDITIONS
TO BUYER’S CLOSING OBLIGATIONS 
 Buyer’s obligation to close the Transaction is subject to the satisfaction of the
following conditions: 
 Accuracy of Representations and Warranties. Each of Sellers’ representations and warranties
in Section 4 will be true and accurate on and as of the Closing Date as though made on and as of the Closing Date. 

Accuracy of Covenants. The Company and the Sellers shall have performed or complied with all agreements and covenants required by
this Agreement to be performed or complied with by them on or prior to the Closing Date;. 
 Closing Documents. Sellers
and Company must have caused the following items to be delivered to Buyer : 
 (a) the items set forth in Section 10.2;

 (b) a certificate signed by the secretary of the Company certifying that the articles of incorporation and bylaws of the
Company attached to the certificate are complete and accurate as of the Closing Date; 
 (c) for each Lien on any asset of the
Company on or after the date of this Agreement that is not a Permitted Closing Encumbrance, a release from the applicable secured party; and 
 (d) a certificate of existence or current status from the Secretary of State of Oregon dated not earlier than 5 days before the Closing Date, certifying as to the existence or current status of the
Company. 
 Consents. The consents, authorizations, and approvals set forth on Schedule 8.4 must have been
obtained. 
 No Legal Proceedings. No Proceeding will be pending or have been threatened against Buyer, any Seller, or
the Company that: 
 (a) involves any challenge to or seeks any damages or other relief in connection with the Transaction;

 (b) may have the effect of prohibiting, delaying, or imposing material limitations or conditions on the Closing; or

 (c) involves any claim by any Person that the Person has an ownership interest in any equity security of the Company.

 No Conflict. The Closing is not in violation of any Law applicable to the parties. No
Governmental Order will be in effect as of the Closing Date that prohibits the Closing. 
 Related Party Indebtedness.
All indebtedness owed to the Company by any Seller or by any Related Party of any Seller or the Company will have been paid in full. 
 HSR Act. All applicable filings under the HSR Act will have been made, and the termination or expiration of all applicable waiting periods under the HSR Act must have occurred. 

No Material Adverse Change. Since the date of the Interim Balance Sheet, no material adverse change with respect to the Company
will have occurred, either with respect to its assets, financial condition or business. 
 Escrow Agreement. The parties
and Escrow Agent shall have executed and delivered a mutually satisfactory Escrow Agreement under which the Escrow Agent shall hold the Holdback Amount. 
 Environmental Escrow Agreement. The parties and Escrow Agent shall have executed and delivered a mutually satisfactory Environmental Escrow Agreement under which the Escrow Agent shall hold the
Environmental Holdback Amount. 
 Financing Contingency. The Financing shall have been obtained and fully funded.

 Section 9. CONDITIONS TO SELLERS’ CLOSING OBLIGATIONS 

Sellers’ obligation to close the Transaction is subject to the satisfaction of the following conditions: 

Accuracy of Representations and Warranties. Each of Buyer’s representations and warranties in Section 5 will be
true and accurate on and as of the Closing Date as though made on and as of the Closing Date. 
 Performance of
Covenants. Buyer will have performed and complied with each of Buyer’s covenants in Section 7. 

Closing Documents. Buyer will have caused the items set forth in Section 10.3 to be delivered to Sellers. 

Consents. The consents, authorizations, and approvals set forth on Schedule 9.4 must have been obtained. 

No Conflict. No Governmental Order must be in effect as of the Closing Date that prohibits the Closing. 

HSR Act. All applicable filings under the HSR Act must have been made, and the termination or expiration of all applicable waiting
periods under the HSR Act must have occurred. 
 Escrow Agreement. The parties and Escrow Agent shall have executed and
delivered a mutually satisfactory Escrow Agreement under which the Escrow Agent shall hold Holdback Amount. 

 Section 10. CLOSING 

Closing. The Closing will take place: 
 (a) at such place as the parties shall mutually agree on the later of: 
 (1)
June 30, 2013; or 
 (2) five business days after the expiration or termination of the applicable waiting period under the
HSR Act, if the HSR Act applies to the Transaction; or 
 (b) at any other time as may be agreed upon by Buyer and Sellers’
Representative. 
 Notwithstanding the foregoing, in the event Buyer is unable to consummate and fund the Financing on or prior
to June 30, 2013, Buyer may extend the date set forth in Section 10.1(a)(1) above to July 31, 2013 upon delivery to Sellers’ Representative on or prior to June 30, 2013 of (i) prior written notice of such extension and
(ii) a written confirmation by Buyer that its executive officers have no actual knowledge of any existing material breach by the Sellers or the Company of any representation and warranty or covenant contained in this Agreement. For the
avoidance of doubt, such written confirmation will not be deemed to be a waiver of any of Buyer’s conditions to Closing set forth in Section 8 of this Agreement or preclude Buyer from terminating this Agreement pursuant to
Section 15(b) of this Agreement based upon (i) a breach or inaccuracy of any representation or warranty of Sellers contained in this Agreement, (ii) a breach of any covenant by Sellers set forth in this Agreement or
(iii) a material adverse change with respect to the Company, in any case that either (i) has occurred on or after the delivery by Buyer of such written confirmation or (ii) was not actually known by Buyer’s executive officers at
the time of delivery by Buyer of such written confirmation. 
 Obligations of Sellers. Sellers will deliver the following
items to Buyer at the Closing: 
 (c) all share certificates representing the Shares, together with one or more stock powers or
assignments indorsed in blank, in form and substance reasonably satisfactory to Buyer; 
 (d) a resignation signed by each
Seller who is a director or officer of the Company in which the Seller resigns as a director and/or officer of the Company; 

(e) a certificate signed by Sellers certifying to Buyer that: 
 (1) each of the representations and warranties set forth in Section 4 was true and correct in all material respects as of the date of this Agreement and is true and correct as of the Closing
Date; and 
 (2) Sellers have performed and complied with each of the covenants set forth in Section 6. 

(f) possession of all of the assets of the Company; 
 (g) evidence of payment by the Sellers or by the Company of (i) all Indebtedness of the Company, and (ii) all Sellers Transaction Expenses, including without limitation, evidence of the payment
of all amounts due to Stephen M. Scheidler under the Scheidler Employment Agreement and the payment of all amounts due to Merrick Smith, and David Freund under their respective agreements with the Company. It is understood that this Agreement is a
“no cash-no debt” transaction except that accounts payable incurred in the ordinary course of business of the Company shall remain an obligation of the Company post-Closing; 

 (h) the Company’s original minute book and stock records; 

(i) evidence of the termination of the Buy-Sell Agreement among the Company and its shareholders; 

(j) an Appointment of Agent for Service of Process signed by each of the shareholders, in form and substance satisfactory to Buyer;

 (k) evidence of the termination of the Scheidler Employment Agreement, or modification thereof to the mutual satisfaction of
Buyer and Sellers; and 
 (l) evidence of the termination of the Company’s existing incentive stock option plan.

 Obligations of Buyer. Buyer will deliver the following items to the Sellers’ Representative at the Closing:

 (m) a wire transfer to the account of the Sellers’ Representative for One Hundred Twenty-Four Million Dollars
($124,000,000.00), less the amount of unpaid Indebtedness and less the amount of unpaid Sellers Transaction Expenses; 
 (n) a
certificate signed by Buyer certifying to Sellers that: 
 (1) each of the representations and warranties set forth in
Section 5 was true and correct in all material respects as of the date of this Agreement and is true and correct on the Closing Date; and 
 (2) Buyer has performed and complied with each of the covenants set forth in Section 7; and 
 (o) a certificate signed by the secretary of Buyer certifying: 
 (1) that the
resolutions of the board of directors of Buyer approving and authorizing the Transaction, copies of which are attached to the certificate, are in full force and effect as of the Closing Date; and 

(2) to the incumbency and signatures of the officers of Buyer signing this Agreement and any other agreement or document relating to the
Transaction; 
 (p) evidence of payment to the Escrow Agent of the Holdback Amount and the Environmental Holdback Amount.

 Section 11. COVENANTS OF SELLERS AFTER CLOSING 
 Sellers covenant to Buyer as follows: 
 Business Relations. After the
Closing, Sellers will cooperate with Buyer in Buyer’s efforts to preserve the Company’s relations and goodwill with the customers, suppliers, lessors, creditors, employees, agents, and other business relations of the Company that existed
before the Closing. 

 Warranty Obligations. Following the Closing Date, Buyer will cause the Company to
perform all warranty obligations with respect to products manufactured and sold by the Company prior to the Closing Date pursuant to the terms of the warranties issued in connection with such sales (the “Warranty Obligations”). Products
will be deemed to be “manufactured and sold” prior to the Closing Date if such products were completed, sold and shipped prior to the Closing Date. Products that were not completed prior to the Closing Date or were in raw materials or work
in process Inventory or were not shipped shall not be deemed to have been manufactured and sold prior to the Closing Date and any warranty obligations with respect to such products shall be the sole responsibility of Buyer. Following the Closing
Date, Sellers will reimburse and indemnify Buyer for all direct out-of-pocket costs incurred in performing such Warranty Obligations (less the amount of any provision or reserve therefor reflected in the Interim Balance Sheet). Buyer will cause the
Company to use commercially reasonable efforts to perform the Warranty Obligations in the most cost effective manner, utilizing personnel familiar with the subject product. The obligations of Sellers under this Section 11.2 shall survive
the Closing for eighteen (18) months and shall be subject to the terms of Section 14.3. 

Confidentiality. 
 (a) Commencing on the date hereof and continuing for a period of five (5) years thereafter, the Sellers will not (i) divulge, transmit or otherwise disclose (except as requested or required by
Law, after prompt notice to Buyer of any such request or requirement), directly or indirectly, any Confidential Information with respect to the Company, (ii) use, directly or indirectly, any Confidential Information for the benefit of anyone
other than the Company and (iii) take any action to disparage Buyer, the Company or their respective Affiliates, personnel or customers, and will refrain from any tortious interference with the contracts and relationships of the Company.

 (b) It is the desire and intent of the parties to this Agreement that the provisions of this Section 11.3 will be
enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. If any particular provisions or portion of this Section 11.3 is adjudicated to be invalid or
unenforceable, this Section 11.3 will be deemed amended to delete therefrom such provision or portion adjudicated to be invalid or unenforceable, such amendment to apply only with respect to the operation of such Section in the
particular jurisdiction in which such adjudication is made. 
 (c) The parties recognize that the performance of the obligations
under this Section 11.3 by the Sellers is special, unique and extraordinary in character, and that in the event of the breach by any Seller of the terms and conditions of this Section 11.3, Buyer and/or the Company will be
entitled, if they so elect, to obtain damages for any breach of this Section 11.3 or to enforce the specific performance thereof by the breaching Seller(s). 
 Environmental Cleanup. 
 (a) Sellers shall be responsible for addressing
and managing any judicial or administrative proceedings in connection with the release of a Hazardous Substance into the environment by the Company where the alleged release occurred prior to the Closing (“Environmental Proceedings”),
including but not limited to the on-going environmental cleanup project at the Company’s Leased Real Property pursuant to the Voluntary Cleanup Program Letter of Agreement, dated February 21, 2002, entered into between the Company and the
Oregon Department of Environmental Quality (“DEQ”), and in a manner consistent with the final Record of Decision, dated August 22, 2012. Sellers, and their designees (attorneys and environmental consultants selected by the
Sellers’ Representative), shall have the right to control such Environmental Proceedings, provided, however, that upon Buyer’s request, Sellers or their designees shall consult with Buyer’s representatives regarding the management and
status of the Environmental Proceedings, and provide Buyer’s representatives with copies of any documentation associated with the Environmental Proceedings. Sellers agree to manage and conduct the Environmental Proceedings in a manner so as not
to unreasonably disrupt Buyer’s operation of the Company at the Real Property following the Closing Date, and if requested, will undertake reasonable alternative methods for addressing the environmental remediation at the Real Property, so long
as such action (i) is not unreasonably expensive, (ii) will not cause an unreasonable delay in addressing the Environmental Proceedings and (iii) is consistent with the requirements of the overseeing Governmental Authority and
recommendations of Sellers’ environmental consultants. Sellers shall include Buyer’s representatives in all material meetings with any Governmental Authority regarding the Environmental Proceedings. Sellers will be responsible for
managing, undertaking and overseeing all necessary actions (including, but not limited to, obtaining and maintaining all necessary governmental Permits and/or authorizations, engaging all third-party contractors and professionals directly; ensuring
that all third-party contractors and professionals maintain adequate insurance coverage, etc.), in order to effectuate Closure of the Environmental Proceedings. 

 (b) Buyer will work cooperatively with Sellers to negotiate with any of the Company’s
carriers under the historic comprehensive general liability excess and umbrella policies listed in Schedule 11.4 (the “Environmental Policies” and each “Environmental Policy”) for reimbursement of the costs and expenses
associated with the Environmental Proceeding. Upon Sellers’ Representative’s reasonable written request, Buyer agrees to cause the Company to retain counsel, mutually acceptable to Buyer and Sellers’ Representative, to institute
insurance coverage litigation against any of the Company’s carriers under the Environmental Policies for reimbursement of costs and expenses associated with the Environmental Proceedings, so long as (i) a good faith basis exists to do so,
(ii) it does not detrimentally affect the business, operations or assets of the Company in any material respect and (iii) all litigation costs are borne by the Sellers and not Buyer or the Company. Notwithstanding the foregoing, if
insurance coverage litigation is instituted at the request of Sellers’ Representative with regard to the Environmental Policies, and such litigation results in a prevailing judgment or settlement that includes either (i) the recovery of
reasonable attorney fees or (ii) a result in excess of the total amount expended to obtain Closure, Sellers’ will be entitled to reimbursement by the Company in an amount up to, and including, Seller’s reasonable attorneys’ fees
for such coverage litigation, subject to evidence of such fees being provided to the Company. The Company will consent to a written request by Sellers to enter into settlement agreements and policy buy-backs with one or more of the Environmental
Policy carriers in order to facilitate the reimbursement of the Company for the costs incurred in connection with the Environmental Proceedings so long as such request is reasonable and does not detrimentally affect the business, operations or
assets of the Company in any material respect. 
 (c) Buyer shall cause the Company to submit within 30 days of receipt, any
invoices which are associated with the Environmental Proceeding (including, but not limited to, invoices for DEQ oversight costs, reasonable professional fees, etc.), to the Escrow Agent for payment from the Environmental Holdback Amount (and/or the
Holdback Amount if the Environmental Holdback Amount is depleted) in accordance with the terms of this Agreement, the Escrow Agreement and the Environmental Escrow Agreement; and Buyer shall cause the Company to seek reimbursement for these same
invoice payments on a quarterly basis from the applicable insurance carriers under the Environmental Policies. Notwithstanding anything to the contrary set forth in this Agreement, upon written approval by the DEQ that no further remedial action is
necessary with regard to the Environmental Proceeding with the exception of further monitoring requirements, the Buyer will release to the Sellers’ Representative any remaining balance of the Environmental Holdback Amount except for $1,000,000,
which will remain available to the Company to pay for any post-remedial monitoring and/or subsequent remedial activity required by DEQ in conjunction with the Environmental Proceedings. Upon written evidence from DEQ that Closure has been completely
satisfied, including any post-remedial monitoring (if any) and any subsequent remedial activity (if any), the remaining balance of the Environmental Holdback Amount shall be released to the Sellers’ Representative in accordance with the terms
of this Agreement and the Environmental Escrow Agreement. 

 (d) Any payments received by the Company from the applicable carriers under the
Environmental Policies, including payments from any settlements or policy buy-backs which were requested in writing by Sellers, shall be paid promptly by the Company to the Sellers’ Representatives, so long as (i) such insurance payments
correspond to an environmental expense already paid to the Company from the Environmental Holdback Amount (and/or from the Holdback Amount) that has not been previously reimbursed to the Sellers’ Representative or (ii) such payments from
the applicable insurance carriers were derived from a prevailing judgment or a settlement of insurance coverage litigation where the initial costs of the litigation were borne by the Sellers in accordance with Section 11.4(b) above.
Notwithstanding the foregoing, if before Closure the balance of the Environmental Holdback Amount falls below $1,000,000 at the time of any payment or payments from any applicable carrier under the Environmental Policies, Buyer shall retain such
portion of the payment or payments which would result in the balance of the Environmental Holdback Amount to equal $1,000,000 (the “Retained Amount”). If upon Closure any portion of the Retained Amount has not been expended, it will be
reimbursable to Sellers’ Representative. In the event that both the Environmental Holdback Amount and the Holdback Amount have been exhausted, but costs and expenses associated with the Environmental Proceedings still need to be paid in
conjunction with activities undertaken prior to issuance of Closure, or for further monitoring and/or remedial action in furtherance of Closure, the Company shall seek indemnification directly from the Sellers under Sections 14.2 and
14.3 of this Agreement, and contemporaneously work in good faith with Sellers’ Representative to seek reimbursement from the applicable insurance carriers under the Environmental Policies, if available. 

Additional SEC Filings. For a period of three (3) years after the Closing Date, the Sellers will cooperate with the Buyer in
good faith, and will use commercially reasonable efforts to cause the Company’s independent accountants to cooperate, with respect to any financial data relating to the Company required to be included in any registration statement or other
document or filing required in connection with any registration statement or other filing made by Buyer with the U.S. Securities and Exchange Commission. Buyer will pay or reimburse, as the case may be, Sellers for any reasonable out-of-pocket costs
incurred in complying with this Section 11.5. 
 Further Assurances. Sellers will promptly take, or cause to
be taken, all reasonable actions, and promptly do, or cause to be done, and assist and cooperate with the other parties in doing, all things reasonably necessary, proper or advisable under applicable Laws to effectuate the Transaction. 

Section 12. COVENANTS OF BUYER AND COMPANY AFTER CLOSING 
 Buyer and Company covenant to Sellers as follows: 
 Records. The Company
will retain the Company’s data and records for a period of not less than six years after the Closing Date. Subject to applicable Law, during the 6-year period and upon reasonable advance notice from any Seller, or the Sellers’
Representative, the Company will, during the Company’s regular business hours and in a manner that does not unreasonably interfere with the operation of the Company’s business, afford the notifying party and the party’s
representatives reasonable access to the Company’s data and records. 
 Environmental Cleanup. Buyer and Company
will take all actions necessary to maintain the Environmental Policies that may provide coverage for environmental costs in connection with the Environmental Proceedings and any Pre-Closing Environmental Liabilities, and they will not assign, settle
or release any insurance policies that may provide coverage for any costs or expenses related to Environmental Proceedings or any Pre-Closing Environmental Liabilities without the prior written consent of Sellers’ Representatives.
Notwithstanding the foregoing, Buyer and Company hereby agree to the provisions set forth in Section 11.4; and in the event that Buyer sells or transfers control of the Company, or in the event of an asset sale or merger of the Company,
the Buyer and the Company will cause any successor in interest to agree to be bound by the provisions set forth in Sections 11.4 and 12.2. 

 12.3 Assignment of Delinquent Accounts Receivable. If a
Buyer’s Claim arises out of Section 4.12 because an account receivable is disputed by the account debtor or is not paid for any reason within one hundred twenty (120) days after the Closing Date, then each such account
receivable shall be referred to as a “Delinquent Account” under this Agreement. Not later than the earlier of the one hundred thirtieth (130th) day after the Closing Date or the date on which Buyer asserts the Buyer’s Claim related to the Delinquent
Account against either the Threshold or Holdback Amount, Buyer shall assign to Sellers the Delinquent Account and all payments received by Buyer with respect thereto and shall provide to Sellers all correspondence and supporting documents related to
such Delinquent Account and any dispute related thereto. Sellers may take commercially reasonable collection action to collect each Delinquent Account; provided however, that Sellers will consult with Buyer prior to commencing litigation or
arbitration against the account debtor and shall not commence such litigation or arbitration if the account debtor is a current customer of the Company and such litigation or arbitration would, in the reasonable judgment of Buyer, be reasonably
likely to have a material adverse effect on the Company’s relationship with such customer. 
 Section 13. TAX MATTERS

 13.1 Termination of Subchapter S Election. If the Closing occurs: 

(a) the Company’s election to be an S corporation will terminate as of the Closing Date; and 

(b) Sellers’ Representative will arrange and pay for a qualified certified public accounting firm to prepare the subchapter S Tax
return of the Company for the period ending on the Closing Date, and Buyer and Company will reasonably cooperate with the Sellers’ Representative and their accountant to provide the necessary financial information to permit the timely filing of
the final S corporation income Tax returns on behalf of the Company and the Sellers. 
 (c) Items of income, gain, loss,
deduction and credit shall be allocated between the S short year (as defined in Section 1362(e)(1)(A) of the Code) and the C short year (as defined in Section 1362(e)(1)(B) of the Code) pursuant to Sections 1362(e)(3) and 1362(e)(6) of the
Code. 
 13.2 Post-Closing Returns. Buyer shall, at Buyer’s expense, prepare or cause to be prepared, and file, or
cause to be filed, all Tax returns of the Company for all periods beginning after the Closing Date. 
 13.3 Pre-Closing
Returns. The Sellers’ Representative shall, at the Sellers’ expense, (i) prepare or cause to be prepared and file or cause to be filed all Tax returns for the Company for periods ending prior to or including the Closing Date which
have not yet been filed as of the Closing Date; (ii) pay or cause to be paid all Tax reported, or required to be reported, on such Tax returns for such pre-Closing Tax returns; (iii) include any income or gain recognized as a result of
Section 13.8 in such pre-Closing Tax returns; and (iv) cause to be prepared all such Tax returns consistent with the past practice of the Company, except as otherwise required by applicable law, provided that, for the
avoidance of doubt and to the extent permitted by applicable Law, all deductions related to or arising out the transactions contemplated by this Agreement shall be treated as arising on or before the Closing Date. At least 30 days prior to the date
on which each such pre-Closing Tax return is filed (including any applicable extensions), the Sellers’ Representative shall submit such Tax return to Buyer for Buyer’s review and approval, which approval shall not be unreasonably withheld
or delayed. Notwithstanding the above, all expense, including fines, late fees and additional Taxes, resulting from or arising out of amendments to the Company’s Tax returns filed by or on behalf of Sellers for periods prior to the Closing Date
shall be the obligation of, and be paid by, the Sellers. 

 13.4 Straddle Period Returns. In the case of any taxable period that includes (but
does not end on) the Closing Date (a “Straddle Period”), (i) real, personal and intangible property Taxes of the Company for the pre-Closing portion of the Straddle Period that ends on the close of business on the Closing Date (the
“Pre-Closing Straddle Period”) shall be the sole obligation of the Sellers and shall be equal to the amount of such real, personal and intangible property Taxes for the entire Straddle Period multiplied by a fraction, the numerator of
which is the number of days in the Pre-Closing Straddle Period that are in such pre-Closing Period and the denominator of which is the number of days in the Straddle Period; and (ii) the Taxes of the Company for the portion of the Straddle
Period other than the pre-Closing Straddle Period, other than income Taxes and those payable by the Sellers pursuant to clause (i) above, shall be computed as if such taxable period ended as of the close of business on the Closing Date, and to
the extent not accrued in the Financial Statements, shall be the obligation of the Sellers and an indemnifiable claim of the Purchaser against the Sellers under Section 14 of this Agreement. 

13.5 Conduct and Notice of Audits. After the Closing, Sellers and Buyer shall (i) provide to the other party such information
relating to the Company as Sellers’ Representative or Buyer may reasonably request with respect to Tax matters and (ii) cooperate with each other in the conduct of any audit or other proceeding with respect to any Tax involving the Company
and shall retain or cause to be retained all books and records pertinent to the Company for each taxable period or portion thereof ending on or prior to the Closing Date until the expiration of the applicable statute of limitations (giving effect to
any and all extensions and waivers). If any party to this Agreement receives any written notice from any taxing authority proposing an adjustment to any Tax for which any other party hereto may be obligated to indemnify under this Agreement, such
party shall give prompt written notice thereof to the other that describes such proposed adjustment in reasonable detail; the failure to give such notice, however, shall not reduce the obligations of a party hereunder unless, and to the extent that,
such failure prejudices the rights of the other party to contest such Tax. 
 13.6 Amendment of Tax Returns. Without the
prior written consent of the Sellers’ Representative, Buyer will not amend or permit the Company to amend any Tax return relating to a taxable period (or portion of such taxable period) ending on or prior to the Closing Date. Provided however,
that the tax return of the Company for the year ended 2011 will have been amended prior to the Closing Date. 
 13.7 Tax
Refunds. Any income Tax refunds that are received by Buyer or the Company, and any amounts credited against income Tax to which Buyer or the Company become entitled in a Tax period ending after the Closing Date, that relate to Tax periods or
portions of such periods ending on or before the Closing Date shall be for the account of the Sellers, but only to the extent such refunds are not reflected in the Closing Date Balance Sheet. Buyer shall pay over to the Sellers’ Representative
for distribution to the Sellers any such refund or the amount of any such credit within fifteen (15) days after actual receipt of such refund or application of such credit against Taxes. 

 13.8 338(h)(10) Election. 

(a) Subject to the terms and conditions as noted in Section 13.8(b) below (i) the Sellers and Buyer agree to an election
under Section 338(h)(10) of the Code and any corresponding elections under state, local or foreign tax law (collectively, the “Section 338(h)(10) Elections”) in accordance with applicable tax laws and as set forth herein, and
(ii) Buyer further agrees that in order to entice Sellers to agree to the Section 338(h)(10) Elections, Buyer shall be required to pay to Sellers’ Representative an Estimated Tax Indemnification Payment on or before the Tax
Indemnification Payment Date (as defined in Section 13.8(b) below) in the aggregate amount of $20 million (to be adjusted in accordance with Section 13.8(b) below) which will be used to fund (A) an amount for each Seller
equal to the aggregate amount reasonably required to reimburse such Seller on a net, after-tax basis for Taxes reasonably incurred in connection with the aforesaid Section 338(h)(10) Elections, (B) any increase in the bonus amount due or
paid to Steve Scheidler under the Scheidler Employment Agreement (including Amendment No. 1 to the Scheidler Employment Agreement) based on the Section 338(h)(10) Elections, and (C) all reasonable legal and accounting expenses and
costs incurred by Sellers after the Closing in connection with the Section 338(h)(10) Elections. 
 (b) Subject to
compliance by Buyer and Sellers with the Tax Timetable attached as Appendix C to this Agreement (the “Tax Timetable”), Buyer reserves the right to revoke its agreement under Section 13.8(a) to make the
Section 338(h)(10) Elections at any time on or prior to November 30, 2013. If Buyer does not revoke its agreement, Buyer shall make the Final Tax Indemnification Payment (as defined below) to the Sellers’ Representative on behalf of
each of the Sellers on or before December 15, 2013 (the “Tax Indemnification Payment Date”). The term “Final Tax Indemnification Payment” shall mean the Estimated Tax Indemnification Payment, as finally agreed upon between
Buyer and Sellers, representing the amount that Buyer shall be required to pay to Sellers equal to (i) the aggregate amount reasonably required to reimburse such Seller on a net, after-tax basis for Taxes reasonably incurred in connection with
the aforesaid Section 338(h)(10) Elections, (ii) any increase in the bonus amount due or paid to Steve Scheidler under the Scheidler Employment Agreement (including Amendment No. 1 to the Scheidler Employment Agreement) based on the
Section 338(h)(10) Elections, and (iii) all reasonable legal and accounting expenses and costs incurred by Sellers after the Closing in connection with the Section 338(h)(10) Elections. For avoidance of doubt, the Final Tax
Indemnification Payment will be a reasonable estimate of the net, after-tax basis for Taxes reasonably incurred by the Sellers in connection with the Section 338(h)(10) Elections. If Buyer revokes its agreement under Section 13.8(a)
to make the Section 338(h)(10) Elections at any time on or prior to November 30, 2013, Buyer will have no liability or obligation to any Seller or to Sellers’ Representative with respect to the revocation of Buyer’s agreement to
make the Section 338(h)(10) Elections, including any and all amounts associated with the either the Estimated Tax Indemnification Payment or Final Tax Indemnification Payment, except for amounts under Section 13.8(a)(ii)(C).

 (c) 
 (1) If the Buyer makes a Final Tax Indemnification Payment to a Seller (or, as provided by the following paragraph to the Escrow Agent), on or prior to the Tax Indemnification Payment Date, such Seller
will take, and will cooperate with the Buyer and with each other Seller to take (i) all actions necessary and appropriate (including filing such forms, returns, elections, schedules and other documents as may be required) to effect and preserve
a timely Section 338(h)(10) Election in accordance with the Code and the regulations thereunder, or any successor provisions; and (ii) such Seller and Buyer shall, for Tax purposes, report the sale of the Shares pursuant to this Agreement
in a manner which is consistent with the Section 338(h)(10) Election and shall take no position contrary thereto or inconsistent therewith in any Tax return or in any discussion with or proceeding before any taxing authority, or otherwise. As
soon as practicable following the receipt by such Seller of valuation reports arranged by the Buyer, but in any event not later than the date specified in the Tax Timetable for the same, each Seller shall deliver a written statement containing the
amount of the Final Tax Indemnification Payment which is claimed to be due to such Seller and the manner in which the amount of such Final Tax Indemnification Payment has been calculated to Buyer. 

 (2) If Buyer disagrees with a Seller’s calculation of the Final Tax Indemnification
Payment (including the calculation of the additional bonus amount due or paid to Steve Scheidler based upon the Section 338(h)(10) Elections) then Buyer shall notify such Seller within the time permitted in the Tax Timetable of the amount of
the Final Tax Indemnification Payment calculated by Buyer and the manner in which the amount of such Final Tax Indemnification Payment was calculated by Buyer. Buyer and such Seller shall confer within ten (10) days after delivery by Buyer of
such notice to such Seller, and use their reasonable good faith efforts to resolve any differences in their respective Final Tax Indemnification Payment calculations. In the event the parties are unable to resolve the differences, Buyer shall pay
(A) to such Seller the amount of the Final Tax Indemnification Payment as calculated by the Buyer for such Seller (the “Buyer’s Amount”) and (B) to the Escrow Agent an amount (the “Escrowed Amount”) equal to the
amount of the Final Tax Indemnification Payment calculated by such Seller less the Buyer’s Amount. The Escrow Agent shall agree to hold the Escrowed Amount for Buyer and such Seller until the Buyer and such Seller resolve their differences with
respect to the amount of the disputed Final Tax Indemnification Payment in accordance with the procedures described in Section 3.4 (with respect to the calculation of the Company’s Closing Working Capital). Upon payment by the Buyer
to the Escrow Agent of the amount of the disputed Final Tax Indemnification Payment, such Seller that has computed the Final Tax Indemnification Payment which is in dispute shall take, and cooperate with Buyer and each other Seller to take, all
actions necessary and appropriate to effect and preserve a timely Section 338(h)(10) Election. One-half of the fees charged by the Escrow Agent shall be paid by Buyer, and one-half of the fees shall be paid by the Sellers who dispute their
respective Final Tax Indemnification Payments. 
 (3) By way of clarification, the Final Tax Indemnification Payment that is to
be made by Buyer to each Seller shall be computed individually for each Seller, in an amount which is not only necessary to offset fully any additional Tax incurred by such Seller as a result of the Section 338(h)(10) Election having been made,
but also any additional Tax attributable to the receipt by each such Seller of the Final Tax Indemnification Payment, and the additional bonus amount due or paid to Steve Scheidler based upon the 338(h)(10) Election. The Final Tax Indemnification
Payment (including the additional bonus payment due or paid to Steve Scheidler because of the 338(h)(10) Election) for each Seller shall be paid by wire transfer of immediately available funds to the Sellers’ Representative on behalf of each
Seller (or, if applicable, to the Escrow Agent) on or before the Tax Indemnification Payment Date. 
 (4) By way of further
clarification, it is the intention of all the parties that the Final Tax Indemnification Payment that will be paid by Buyer to each of the Sellers will be an amount sufficient so that each Seller will receive the same after-tax proceeds from the
sale of its Shares, after payment of all such additional Taxes (and the additional Steve Scheidler bonus payments attributable to the 338(h)(10) Election) that it would have received had the Section 338(h)(10) Election not been made. The amount
of this payment to Sellers is not subject to adjustment, deduction, refund or return based on the actual tax liability of the Sellers, amendments of returns or otherwise. 
 (5) The consideration paid for the Shares (and any other amounts required to be capitalized pursuant to Section 338 of the Code) shall be allocated among the Company’s assets in accordance with
the principles of Section 338 of the Code and the regulations thereunder. Buyer shall prepare, using its goods faith efforts, and deliver to the Sellers’ Representative a proposed allocation of such consideration and the valuation reports
as set forth the Tax Timetable. Unless, within 30 days from receipt thereof, the Sellers’ Representative disagrees in writing with such allocation or valuation, the amount so allocated to each asset shall be as proposed by Buyer and shall
constitute the agreed upon allocation. Buyer and the Sellers shall utilize the allocation of consideration described in and agreed upon pursuant to this Section 13.8 in the preparation of all Tax Returns or forms and for all other Tax
purposes, including, but not limited to, the preparation of IRS Form 8883. Neither Buyer nor the Sellers shall agree to any adjustment relating to the manner in which the consideration has been allocated as set forth in this Section 13.8
without the prior written approval of the other, which approval shall not be unreasonably withheld. The parties agree to consult and resolve in good faith any disputes in allocating the consideration under this Section 13.8. Any
adjustment to the Purchase Price paid pursuant to this Agreement shall result in an appropriate adjustment to such allocation. 

 (6) For purposes of the Final Tax Indemnification Payment (including the calculation
thereof) under this Section 13.8, the terms “Seller” and “Sellers” shall also mean and include the grantor of any trust where the grantor is deemed to be the owner for federal tax purposes. 

Section 14. INDEMNIFICATION 
 Survival. Subject to the provisions of Sections 14.3 and 14.5, all representations, warranties, covenants, and other obligations in this Agreement and all other agreements and documents
relating to the Transaction will survive the Closing. For the avoidance of doubt, (i) all representations, warranties (other than those set forth in clause (ii) below) will survive the Closing for a period of eighteen (18) months
following the Closing Date, (ii) the representations, warranties set forth in Sections 4.5, 4.6, 4.16 and 4.28 will survive the Closing for a period equal to the greater of six (6) years or the expiration of an applicable statute of
limitations and (iii) unless otherwise specifically provided otherwise, all covenants contained in this Agreement will survive the Closing indefinitely. 
 Sellers’ Indemnification. If the Closing occurs, and subject to the provisions of this Section 14, Sellers will defend, indemnify and hold harmless Buyer, the Company, and each
present and future shareholder, director, officer, and authorized representative of Buyer and the Company for, from, and against any and all Losses related to, arising out of or in connection with (i) any inaccuracy of any representation or the
breach of any representation or warranty made by Sellers in this Agreement; (ii) any breach or non-fulfillment of any covenant or agreement made by Sellers in this Agreement; (iii) any Taxes of the Company with respect to periods prior to
the Closing; (iv) any Indebtedness of the Company that is outstanding on the Closing Date; (v) any Sellers Transaction Expenses; and (vi) any Pre-Closing Environmental Liabilities and any Pre-Closing Indemnification Liabilities. The
liability of Sellers hereunder shall be several, but not joint, according to their Sellers’ Pro Rata Percentage as set forth on Appendix B to this Agreement. Any claim for indemnification by the Buyer, Company, and each present and future
shareholder, director, officer, and authorized representative of Buyer pursuant to this Section 14.2 and Section 11.2 shall hereinafter be referred to as a “Buyer’s Claim.” 

Limitations on Sellers’ Liability. 
 (a) Subject to Section 14.3(b), Sellers will have no liability to Buyer, the Company, or any other Person for indemnification or otherwise with respect to: 

(1) any Buyer’s Claim that arises out of or results from an inaccuracy or breach of any representation or warranty in
Section 4 or breach of any covenant in Section 11.2 or Section 6, unless Buyer notifies Sellers of the claim and specifies in reasonable detail the facts giving rise to the claim within eighteen (18) months
of the Closing Date; 
 (2) any Buyer’s Claim that arises out of or results from an inaccuracy or breach of any
representation or warranty in Section 4, or breach of any covenant in Section 6 or Section 11.2, if the aggregate liability for all such claims is less than $600,000 (the “Threshold”). For clarity, this
Threshold shall be treated as a “deductible”, and Sellers shall only be obligated for that portion of such claims in excess of this Threshold; and 

 (3) Buyer’s Claims that arise out of or result from an inaccuracy or breach of any
representation or warranty in Section 4 or breach of any covenant in Section 6, or any covenant in Section 11 to the extent that Sellers’ aggregate liability for all such Buyer’s Claims exceeds Ten
Million Dollars ($10,000,000) (the “Cap”). It is understood that except in the case of fraud or as otherwise set forth below, the Buyer’s indemnity claims against the Holdback Amount are Buyer’s exclusive remedy under this
Agreement. 
 (b) The limitation on Seller’s liability in this Section 14.3(a) will not apply with respect to a
Buyer’s Claim that arises out of or results from: 
 (1) a breach of any “Capitalization” representation or
warranty in Section 4.5; 
 (2) a breach of any “Title to Shares” representation or warranty in
Section 4.6; 
 (3) a breach of any “Taxes” representation or warranty in Section 4.16;

 (4) a breach of any “Environmental” representation or warranty in Section 4.28; 

(5) a breach of the Environmental Cleanup covenant in Section 11.4; 

(6) any costs and expenses associated with the Environmental Cleanup covenant in Section 11.4 in excess of the Holdback
Amount and the Environmental Holdback Amount; 
 (7) a breach of Sellers’ indemnification obligation in
Section 14.2(iii) through and including Section 14.2(vi); or 
 (8) fraud. 

Sellers will have no liability to Buyer, the Company, or any other Person for indemnification or otherwise with respect to any claim that
arises out of or results from (i) a breach of the representations and warranties of the Sellers set forth in Sections 4.5, 4.6, 4.16 and 4.28, unless Buyer notifies Sellers of the claim and specifies in reasonable detail the facts giving
rise to the claim before the later of six (6) years after the Closing Date or thirty (30) days following the expiration of an applicable statute of limitations, if any, relating to the rights of any third party to bring a claim with
respect to such matters. Sellers will have liability to Buyer, the Company, or any other Person for indemnification or otherwise with respect to any claim that arises out of or results from a breach of the Environmental Cleanup covenant in
Section 11.4 or a breach of Sellers’ indemnification obligation in Section 14.2(iii) through and including Section 14.2(vi) or fraud and any such liability will not be subject to the Threshold or the Cap. In
no event will the aggregate liability of Sellers under this Section 14 for all Buyer’s Claims exceed the Purchase Price. Any indemnification obligations by Sellers under this Agreement will be net of any insurance proceeds received
by the Company or by the Buyer in connection with such claim after giving effect to any increase in premium attributable to the loss run for the Buyer’s Claim for the next three (3) policy years following the year in which such
claim is made. For the avoidance of doubt, it is understood that Buyer and the Company shall use commercially reasonable efforts for at least three years after the Closing Date to maintain insurance policies providing coverage with terms and
conditions which are not materially different than the Company’s current insurance coverage; and to submit appropriate claims to the Company’s insurance carriers for which coverage might be available under such policies. In addition, the
Buyer and the Company shall use commercially reasonable efforts to maintain indefinitely the Company’s Environmental Policies. 

 Buyer’s Indemnification. If the Closing occurs, and subject to the provisions of
this Section 14, Buyer will defend, indemnify and hold harmless Sellers for, from, and against any and all Losses resulting from or arising out of Buyer’s breach of any representation, warranty, covenant, or other obligation of
Buyer in this Agreement or any other agreement or document relating to the Transaction. Any claim for indemnification by the Sellers pursuant to this Section 14.4 shall hereinafter be referred to as a “Sellers’ Claim.”

 Limitations on Buyer’s and Company’s Liability. 

(c) Subject to Section 14.5, Buyer and Company will have no liability to Sellers or any other Person for indemnification or
otherwise with respect to: 
 (1) any Sellers’ Claim that arises out of or results from an inaccuracy or breach of any
representation or warranty in Section 5 or breach of any covenant in Section 7, unless Sellers notify Buyer of the claim and specifies in reasonable detail the facts giving rise to the claim within eighteen (18) months
of the Closing Date; 
 (2) any Seller’s Claim that arises out of or results from an inaccuracy or breach of any
representation or warranty in Section 5, or breach of any covenant in Section 7, if the aggregate liability for all such claims is less than $600,000 (“Buyer’s Threshold”). For clarity, it is understood that
the Buyer’s Threshold shall be treated as a “deductible”, and Buyer shall only be obligated for that portion of such claims in excess of the Buyer’s Threshold; and 

(3) Seller’s Claims that arise out of or result from an inaccuracy or breach of any representation or warranty in
Section 5, or breach of any covenant in Section 7, or any covenant in Section 12, to the extent that Buyer’s and Company’s aggregate liability for all claims that arise out of or result from a breach of
any representation or warranty in Section 5, or any covenant in Section 7, or any covenant in Section 12 exceeds the Purchase Price. 
 Direct Claims. If an Indemnified Person notifies an Indemnifying Party of a direct claim by the Indemnified Person for which the Indemnifying Party has liability under this Section 14,
the Indemnifying Party will pay the claim – or cause the claim to be paid – within 30 days after the delivery of the Indemnified Person’s notice. Notwithstanding anything to the contrary set forth above or in this Agreement, any
Buyer’s Claims shall first be made as offsets against the Holdback Amount, and to the extent the remaining balance of the Holdback Amount is insufficient to pay any Buyer’s Claim in full, then by the Sellers, severally, but not jointly.

 Third-Party Claims. 
 (d) If an Indemnified Person receives a claim by a third party that is subject to the indemnification provisions in this Section 14, the Indemnified Person will promptly notify the
Indemnifying Party of the claim. The notice will include a copy of all correspondence relating to the claim that the Indemnified Person received from the third party. 
 (e) The Indemnifying Party may elect to control the defense of the third-party claim by notifying the Indemnified Person within 10 days after the delivery of the Indemnified Person’s notice. The
election will conclusively establish that the claim is subject to the indemnification provisions in this Section 14. 

 (f) The Indemnified Person may object to the Indemnifying Party’s election to control
the defense of the third-party claim by notifying the Indemnifying Party within 10 days after the delivery of the Indemnifying Party’s notice, but only if: 
 (1) the Indemnified Person reasonably determines that the Indemnifying Party does not have the financial ability to diligently defend the claim; 

(2) the claim is also made against the Indemnifying Party and the Indemnified Person reasonably determines that joint representation of
the Indemnifying Party and the Indemnified Person would be inappropriate; 
 (3) the Indemnified Person reasonably determines
that the claim may result in non-monetary damages that may materially and adversely affect the Indemnified Person; or 
 (4)
the amount of the claim, when added to existing indemnification claims paid by, or pending against, the Indemnifying Person, are subject to the Cap and exceed the Cap. 
 (g) If the Indemnifying Party elects to control the defense of the third-party claim and the Indemnified Person does not object to the election: 

(1) the Indemnifying Party will control the defense of the claim and diligently defend the claim, with counsel reasonably satisfactory
to the Indemnified Person; 
 (2) the Indemnified Person may participate in the defense of the claim, at the Indemnified
Person’s own cost and expense; and 
 (3) the Indemnifying Party may settle the claim: 

(i) with the consent of the Indemnified Person, which the Indemnified Person may not withhold unreasonably; or 

(ii) without the consent of the Indemnified Person, but only if: 

(A) the settlement does not contain any finding of any violation by the Indemnified Person of any applicable law or any right of any
Person; 
 (B) the settlement expressly states that the Indemnified Person is not admitting to any such violation; and

 (C) the only relief provided in the settlement is for monetary damages that are – subject to the provisions of this
Section 14 – paid in full by the Indemnifying Party. 
 (h) If the Indemnifying Party does not elect to control
the defense of the third-party claim, or if the Indemnifying Party elects to control the defense of the claim and the Indemnified Person objects to the election under Section 14.7(c)(1): 

(1) the Indemnified Person will control the defense of the claim and diligently defend the claim; 

(2) the Indemnifying Party may participate in the defense of the claim, at the Indemnifying Party’s own cost and expense; and

 (3) the Indemnifying Party will be bound by any determination made by the Indemnified
Person in connection with the claim, including but not limited to any settlement of the claim. 
 (i) If the Indemnifying Party
elects to control the defense of the third-party claim and the Indemnified Person objects to the election under Section 14.7(c)(2) or Section 14.7(c)(3): 

(1) the Indemnified Person will control the defense of the claim and diligently defend the claim, with counsel reasonably satisfactory
to the Indemnifying Party; 
 (2) the Indemnifying Party may participate in the defense of the claim, at the Indemnifying
Party’s own cost and expense; and 
 (3) the Indemnified Person may settle the claim: 

(i) with the consent of the Indemnifying Party, which the Indemnifying Party may not withhold unreasonably; or 

(ii) without the consent of the Indemnifying Party, but only if: 

(A) the settlement does not contain any finding of any violation by the Indemnifying Party of any applicable law or any right of any
Person; 
 (B) the settlement expressly states that the Indemnifying Party is not admitting to any such violation; and

 (C) the only relief provided in the settlement is for monetary damages. 

(j) In any third-party claim that is subject to the indemnification provisions in this Section 14, the Indemnifying Party and
the Indemnified Person will: 
 (1) keep each other fully informed of the status of the claim; 

(2) cooperate with each other with respect to the defense of the claim; and 

(3) attempt to preserve in full any attorney-client and work-product privileges and the confidentiality of any Confidential Information.

 Section 15. TERMINATION 
 This Agreement will terminate upon the earliest to occur of the following: 
 (a)
upon the written agreement of Buyer and Sellers; 
 (b) upon notice by Buyer to Sellers’ Representative, if: 

(1) any condition set forth in Section 8 has not been satisfied or waived on or before the date set forth in
Section 10.1(a)(1), unless the failure to satisfy the condition is due to a material breach of this Agreement by Buyer; 

 (2) the satisfaction of any condition set forth in Section 8 on or before the
date set forth in Section 10.1(a)(1) becomes impossible, unless the satisfaction of the condition became impossible because Buyer materially breached this Agreement; or 

(3) any Seller materially breaches this Agreement and fails to cure the breach within 15 days after Buyer notifies the Sellers’
Representative of the breach. 
 (c) upon notice by Sellers’ Representative to Buyer, if: 

(1) any condition set forth in Section 9 has not been satisfied or waived on or before the date set forth
Section 10.1(a)(1), unless the failure to satisfy the condition is due to a material breach of this Agreement by any Seller; 
 (2) the satisfaction of any condition set forth in Section 9 on or before the date set forth in Section 10.1(a)(1) becomes impossible, unless the satisfaction of the condition
became impossible because any Seller materially breached this Agreement; or 
 (3) Buyer materially breaches this Agreement and
fails to cure the breach within 15 days after Sellers notify Buyer of the breach. 
 (d) Except as provided in this
Section 15, in the event of the termination of this Agreement pursuant to Section 15(a), 15(b) or 15(c), this Agreement (other than this Section 15(d) and Sections 18, 19.2, 19.5, 19.14, and 19.17, which
shall survive such termination) will forthwith become void, and there will be no liability on the part of any party to this Agreement or any of their respective officers or directors to the other and all rights and obligations of any other party
hereto will cease, except that nothing herein shall relieve any party hereto from liability for fraud or for any intentional and material breach, prior to termination of this Agreement in accordance with its terms, of any representation, warranty,
covenant or agreement contained herein. 
 (e) Notwithstanding anything to the contrary contained in this Agreement, in the
event of the termination of this Agreement by Buyer pursuant to Section 15(b) or Buyer’s failure to close on June 30, 2013 (including any extensions under Section 10.1(b)) as a result of the inability of Buyer to
satisfy the condition to closing in Section 8.12 of this Agreement (other than as a result of a material breach by the Company or Company Representatives of their respective covenants in Section 6.12 of this Agreement), Buyer
shall pay to Sellers’ Representative the sum of $4,000,000. Upon receipt of such payment, the Company, the Sellers and the Sellers’ Representative shall be deemed to have waived all other remedies (including equitable remedies) with
respect to, any Loss suffered as a result of (i) any failure of the Transaction to be consummated, (ii) for any breach by Buyer of its obligation to consummate the Transaction or (iii) for any breach by Buyer of any representation,
warranty, covenant or agreement set forth in this Agreement, and upon payment of such amount Buyer shall have no further liability or obligation to the Company, Sellers or the Sellers’ Representative relating to or arising out of this Agreement
or any other document executed in connection with the transactions contemplated hereby. 
 Section 16. HSR ACT 

As soon as practicable after the date hereof, Buyer and Sellers will undertake and file a Notification and Report Form in respect of the
Transaction that substantially complies with the provisions of the HSR Act and the rules thereunder, with the United States Federal Trade Commission and the Antitrust Division of the United States Department of Justice (and will file as soon as
practicable any form or report required by any other Governmental Authority relating to antitrust matters). Buyer and Sellers will each be responsible for one-half of the filing fee associated with the Notification and Report Form. 

 Each of Buyer and the Sellers will, and the Sellers will cause the Company to,
(i) respond as promptly as practicable to any inquiries or requests received from any Governmental Authority for additional information or documentation related to such filings, (ii) not extend any waiting period under the HSR Act or enter
into any agreement with any Governmental Authority not to consummate the Transaction, except with the prior written consent of Buyer and the Sellers’ Representative, which consent shall not be unreasonably withheld or delayed, (iii) use
reasonable commercial efforts to obtain an early termination of the applicable waiting period under the HSR Act, (iv) make any further filings or information submissions pursuant thereto that may be reasonably necessary or advisable and
(v) promptly make any filings or submissions required under any applicable foreign antitrust or trade Law. 
 Each of Buyer
and the Sellers will, and the Sellers will cause the Company to, use reasonable commercial efforts to obtain any clearance under the HSR Act or to resolve any objections that may be asserted by the applicable Governmental Authority, in each case as
promptly as practicable; provided, however, that nothing in this Section 16 will require or be construed to require Buyer or the Company to propose or make any divestiture or other undertaking, or propose or enter into any consent decree or
otherwise limit the freedom of Buyer, the Company or their Affiliates of action with respect to, or the ability to retain, one or more of its businesses, product lines or assets. 
 Section 17. ANNOUNCEMENTS 
 Neither the Sellers, the Company nor
Buyer, nor shall any of their respective Affiliates, without the approval of the other parties, issue any press releases or otherwise make any public statements with respect to the transactions contemplated by this Agreement, except as may be
required by applicable law or regulation or by obligations pursuant to any listing agreement with any national securities exchange. Sellers and Buyer will consult and cooperate with each other concerning the timing and manner of the announcements of
the Transaction to the Company’s employees, customers, suppliers, and other business relations. Upon Buyer’s request, Sellers will permit Buyer to be present at any such announcement. Any public announcements with respect to the
Transaction or this Agreement will be made, if at all, at such time and in such manner as Buyer determines. 
 Section 18.
EXPENSES 
 Except as otherwise provided in this Agreement, each party will bear the party’s own fees, costs, and
expenses incurred in connection with the Transaction, including but not limited to the preparation, negotiation, signing, and performance of this Agreement and the other agreements and documents relating to the Transaction. 

Section 19. GENERAL 
 Time of Essence. Time is of the essence with respect to all dates and time periods in this Agreement. 
 No Assignment. No party may assign or delegate any of the party’s rights or obligations under this Agreement to any Person without the prior written consent of the other parties, which the
other parties may not withhold unreasonably; provided, that Buyer may assign its rights, interests and obligations hereunder to any direct or indirect wholly owned subsidiary, but notwithstanding any such assignment, Buyer will remain liable under
this Agreement. 

 Binding Effect. This Agreement will be binding on the parties and their respective
heirs, personal representatives, successors, and permitted assigns, and will inure to their benefit. 
 Amendment. This
Agreement may be amended only by a written agreement signed by each party. 
 Notices. All notices or other
communications required or permitted by this Agreement: 
 (a) must be in writing; 

(b) must be delivered to the parties at the addresses set forth below, or any other address that a party may designate by notice to the
other parties; and 
 (c) are considered delivered: 
 (1) upon actual receipt if delivered personally or an overnight delivery service; and 
 (2) at the end of the third business day after the date of deposit in the United States mail, postage pre-paid, certified, return receipt requested. 

 

			
	To Buyer:	  	To Sellers:
		
	 Astronics Corporation
 130
Commerce Parkway
 East Aurora, NY 14052

Attn: Corporate Secretary
	  	Notices to Sellers shall be sent or delivered to their addresses in Appendix B
		
	 With a copy to:
  

Hodgson Russ LLP
 The Guaranty
Building
 140 Pearl Street, Suite 100

Buffalo, NY 14202
 Attn: Robert J.
Olivieri
	  	 With a copy to:
  

Farleigh Wada Witt
 121 SW Morrison Street, Suite
600
 Portland, OR 97204
 Fax: (503)
228-1741
 Attn: F. Scott Farleigh and Mark R. Wada

		
	 To Company:
  

Peco, Inc.
 PO Box 82189

Portland, OR 97282-0189
	  	
		
	 With a copy, after the Closing, to:
  

Hodgson Russ LLP
 The Guaranty
Building
 140 Pearl Street, Suite 100

Buffalo, NY 14202
 Attn: Robert J.
Olivieri
	  	

 Waiver. No waiver will be binding on a party unless it is in writing and signed by
the party making the waiver. A party’s waiver of a breach of a provision of this Agreement will not be a waiver of any other provision or a waiver of a subsequent breach of the same provision. 

Severability. If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the
provision in any other respect and of the remaining provisions of this Agreement will not be impaired. 
 Further
Assurances. The parties will sign other documents and take other actions reasonably necessary to further effect and evidence this Agreement. 
 No Third-Party Beneficiaries. The parties do not intend to confer any right or remedy on any third party. 
 Termination. The termination of this Agreement, regardless of how it occurs, will not relieve a party of obligations that have accrued before the termination. 

Survival. All provisions of this Agreement that would reasonably be expected to survive the termination of this Agreement will do
so. 
 Attachments. Any exhibits, schedules, and other attachments referenced in this Agreement are part of this
Agreement. In this Agreement, unless the context otherwise requires, references to Sections, Exhibits and Schedules are references to sections, exhibits and schedules of this Agreement. 

Remedies. The parties will have all remedies available to them at law or in equity. All available remedies are cumulative and may
be exercised singularly or concurrently. 
 Governing Law. This Agreement is governed by the laws of the State of Oregon,
without giving effect to any conflict-of-law principle that would result in the laws of any other jurisdiction governing this Agreement. 
 Venue. Any action or proceeding arising out of this Agreement will be litigated in courts located in Multnomah County, Oregon. Each party consents and submits to the jurisdiction of any local,
state, or federal court located in Multnomah County, Oregon. 
 Arbitration. 

(d) Except as otherwise provided in Section 19.16(c), any controversy or claim arising out of this Agreement will be settled
by arbitration in Portland, Oregon. 
 (e) The arbitration will be conducted in accordance with the arbitration rules of
Arbitration Service of Portland, Inc. If the parties are unable to agree upon a single arbitrator to resolve the dispute within 30 days of the delivery of an intent to arbitrate notice by either party to the other, then each party (the Sellers’
Representative and the Buyer) will select an arbitrator from the panel of Arbitration Service of Portland, Inc. and those two arbitrators will select a third arbitrator and the three of them shall decide the matter. 

 (f) A party may seek from a court an order to compel arbitration, or any other interim
relief or provisional remedies pending the arbitrators’ resolution of any controversy or claim. Any such action or proceeding will be litigated in courts located in Multnomah County, Oregon. 

(g) For the purposes set forth in Section 19.16(c), each party consents and submits to the jurisdiction of any local, state,
or federal court located in Multnomah County, Oregon. 
 Attorney’s Fees. If any arbitration or litigation is
instituted to interpret, enforce, or rescind this Agreement, including but not limited to any proceeding brought under the United States Bankruptcy Code, the prevailing party on a claim will be entitled to recover with respect to the claim, in
addition to any other relief awarded, the prevailing party’s reasonable attorney’s fees and other fees, costs, and expenses of every kind, including but not limited to the costs and disbursements specified in ORCP 68 A(2), incurred in
connection with the arbitration, the litigation, any appeal or petition for review, the collection of any award, or the enforcement of any order, as determined by the arbitrator or court. 

Entire Agreement. This Agreement contains the entire understanding of the parties regarding the subject matter of this Agreement
and supersedes all prior and contemporaneous negotiations and agreements, whether written or oral, between the parties with respect to the subject matter of this Agreement. 
 Sellers’ Representative. 
 (h) By the execution and delivery hereof,
including counterparts hereof, each Seller hereby irrevocably constitutes and appoints Steven Michaelis, James Stocks and Herbert Taylor as the true and lawful agents and attorneys-in-fact (the “Sellers’ Representative”) of such
Seller with full powers of substitution to act in the name, place and stead of such Seller with respect to the performance on behalf of such Seller under the terms and provisions hereof and to do or refrain from doing all such further acts and
things, and to execute all such documents, as the Sellers’ Representative shall deem necessary or appropriate in connection with any transaction contemplated hereunder, including the power to: 

(1) act for each Seller with respect to all indemnification matters referred to herein, including the right to compromise or settle any
such claim on behalf of any Seller; 
 (2) act for each Seller with respect to all Purchase Price adjustments referred to
herein; 
 (3) amend or waive any provision hereof (including any condition to Closing) in any manner that does not
differentiate among the Sellers, except to the extent of Sellers’ Pro Rata Percentage; 
 (4) employ, obtain and rely upon
the advice of legal counsel, accountants and other professional advisors as the Sellers’ Representative, in the sole discretion thereof, deems necessary or advisable in the performance of the duties of the Sellers’ Representative;

 (5) receive and receipt for any portion of the Purchase Price or any other payment due from the Buyer to the Sellers
pursuant to this Agreement; 
 (6) incur any expenses, liquidate and withhold assets received on behalf of the Sellers prior to
their distribution to the Sellers to the extent of any amount that the Sellers’ Representative deems necessary for payment of or as a reserve against expenses, and pay such expenses or deposit the same in an interest-bearing account established
solely for such purpose, and to then make distributions to Sellers in accordance with their Pro Rata Payment Percentages; 

 (7) receive all notices, communications and deliveries hereunder on behalf of the Sellers;
and 
 (8) do or refrain from doing any further act or deed on behalf of each Seller that the Sellers’ Representative
deems necessary or appropriate, in the sole discretion of the Sellers’ Representative, relating to the subject matter hereof as fully and completely as any Seller could do if personally present and acting as though any reference to any Seller
herein was a reference to the Sellers’ Representative. 
 (i) The appointment of the Sellers’ Representative shall be
deemed coupled with an interest and shall be irrevocable, and any other Person may conclusively and absolutely rely, without inquiry, upon any action of the Sellers’ Representative as the act of any Seller in all matters referred to herein.
Each Seller hereby ratifies and confirms that the Sellers’ Representative shall do or cause to be done by virtue of such Sellers’ Representative’s appointment as Sellers’ Representative of such Seller. The Sellers’
Representative shall act for each Seller on all matters set forth herein in the manner the Sellers’ Representative believes to be in the best interest of such Seller, but the Sellers’ Representative shall not be responsible to any Seller
for any loss or damage any Seller may suffer by reason of the performance by the Sellers’ Representative of such Sellers’ Representative’s duties hereunder, other than loss or damage arising from willful misconduct or gross negligence
in the performance of such Sellers’ Representative’s duties hereunder. 
 (j) Each Seller hereby expressly
acknowledges and agrees that the Sellers’ Representative is authorized to act on behalf of such Seller notwithstanding any dispute or disagreement among the Sellers, and that any Person shall be entitled to rely on any and all action taken by
the Sellers’ Representative hereunder without liability to, or obligation to inquire of, any Seller. In the event the Sellers’ Representative resigns or ceases to function in such capacity for any reason whatsoever, then the successor
Sellers’ Representative shall be the Person the remaining Sellers appoint; provided, however, that in the event for any reason no successor has been appointed within thirty (30) days following such resignation or cessation, then any Seller
shall have the right to petition a court of competent jurisdiction for appointment of a successor Sellers’ Representative. The Sellers, jointly and severally, shall indemnify and hold the Sellers’ Representative harmless from and against
any and all liabilities, losses, costs, damages and expenses (including attorneys’ fees) reasonably incurred or suffered as a result of the performance of the Sellers’ Representative’s duties hereunder, except for willful misconduct
or gross negligence. 
 (k) For purposes of clarification, the Buyer shall be entitled to rely on any and all action taken only
jointly by two of the three Sellers’ Representatives identified in Section 19.19(a) acting in their respective capacities as a Sellers’ Representative. 
 Signatures. This Agreement may be signed in counterparts. A fax transmission of a signature page will be considered an original signature page. At the request of a party, a party will confirm a
fax-transmitted signature page by delivering an original signature page to the requesting party. 
 [Signature page to follow]

 Dated effective: May 28, 2013. 

 

			
	BUYER:	 	
	
	ASTRONICS CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

	
	 SELLERS:

 
 Steven M. Michaelis

 
 Sally Jane Michaelis

 
 Scott M. Michaelis

 
 Sarah Jane Levy

 
 Scott A. Smith, Trustee, or successors in trust,

under the Scott A. Smith Trust Agreement

 
 James M. Stocks

 
 Joseph C. Kempe, as
Trustee of the Margaret C.
 Taylor Investment Trust u/t/d June 4, 2010

 
 Joseph C. Kempe, as Trustee of the Herbert J.

Taylor Investment Trust u/t/d June 4, 2010

  

			
	COMPANY:
	
	PECO, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 APPENDIX A 
 Definitions 
 “Affiliate(s)” shall mean, with respect to a
specified Person, a Person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified Person, and with respect to a natural Person, means any immediate family of
such specified natural Person. A Person shall be deemed to control another Person if such first Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through
the ownership of voting securities, by contract or otherwise. 
 “Closing” means the closing of the
Transaction. 
 “Closing Date” means the date on which the Closing takes place. The Closing will be deemed
effective at 11:59 p.m. Pacific Time on the Closing Date. 
 “Closing Date Balance Sheet” means an unaudited
balance sheet of the Company as at the Closing Date. 
 “Closure” means a written determination by the
applicable Governmental Authority that no further action is required at the Real Property to address the Environmental Proceedings, including, but not limited to, any type of post-remedial monitoring and/or subsequent remedial activity. Closure will
be evidenced by receipt of a “no further action” letter from the applicable Governmental Authority, as well as documented proof from Seller’s environmental consultants that any post-remedial monitoring requirement (if any) or
subsequent remedial action (if any) has been met to the satisfaction of the applicable Governmental Authority, which will be evidenced in writing 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder. Section references to the Code are to the Code as in
effect at the date of this Agreement. 
 “Company” means PECO, Inc. an Oregon corporation. 

“Company’s Closing Working Capital” means the Company’s Working Capital as at the Closing Date, excluding the
unpaid Indebtedness and unpaid Sellers Transaction Expenses that were either deducted from the Purchase Price or paid with proceeds of the Purchase Price at Closing. 
 “Company’s Working Capital” means the current assets (excluding cash and cash equivalents) of the Company less the current liabilities of the Company 

“Contract(s)” means the contracts, agreements, purchase orders and commitments, whether written or oral, which are currently in effect
and to which the Company is a party or by which it or its assets or properties are bound, including, without limitation, contracts, agreements, purchase orders and commitments: 

(i) which contain restrictions with respect to payment of dividends or any other distribution in respect of the capital stock or other
equity interests of the Company; 

 (ii) relating to capital expenditures or other purchases of material, supplies, equipment or
other assets or properties (other than purchase orders for Inventory, materials or supplies in the Ordinary Course of Business) with respect to the Company in excess of $100,000 individually, or $500,000 in the aggregate; 

(iii) involving a loan (other than accounts receivable from trade debtors in the Ordinary Course of Business) or advance to (other than
travel and entertainment allowances to the employees of the Company extended in the Ordinary Course of Business), or investment in, any Person or relating to the making of any such loan, advance or investment; 

(iv) involving Indebtedness; 
 (v) granting or evidencing a Lien on any properties or assets of the Company; 

(vi) providing for any management, consulting, or any other similar service; 

(vii) limiting the ability of the Company to engage in any line of business or to compete with any Person; 

(viii) (including letters of intent) involving the future disposition or acquisition of assets or properties other than in the Ordinary
Course of Business, or any merger, consolidation or similar business combination transaction, whether or not enforceable; 

(ix) involving any joint venture, partnership, stockholders’ agreement, co-marketing, co-promotion, joint development or similar
arrangements; 
 (x) involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other
dispute; 
 (xi) involving a confidentiality, standstill or similar arrangement; 

(xii) involving leases or subleases of personal property to which the Company is a party (as lessee or lessor) and involving an annual
base rental payment in excess of $100,000; 
 (xiii) involving the annual payment or receipt by the Company of $100,000 or more
which are not cancelable by the Company without penalty on thirty (30) days’ or less notice; 
 (xiv) containing a
“most favored nation” clause or similar provision; and 
 (xvi) granting a general power of attorney or other similar
grant of agency. 
 “Customer Advances” means each loan, advance, deposit or other amount received by the
Company from a customer in advance of performance by the Company under its contract with such customer, but only to the extent such loan, advance, deposit or other amount, as a percentage of the total payments due under the applicable contract or
purchase order with such customer, exceeds the percentage of completion under such contract or purchase order. Customer Advances shall not include any payment or deposit for tooling that will be paid to a third party vendor that will supply such
tooling. For avoidance of doubt, any payment or deposit for tooling described herein will not be distributed to the Sellers as of the Closing Date, nor will such amounts be paid by the Sellers as Indebtedness. 

 “Employee Plan” means any “employee benefit plan” as defined
under Section 3(3) of ERISA whether or not subject to ERISA, and all other bonus, stock option, restricted stock grant, stock purchase, other stock-based incentive, profit sharing, savings, retirement, disability, insurance, severance,
retention, change in control and deferred compensation plans, policies, programs, agreements or arrangements sponsored, maintained, contributed to or required to be contributed to, or entered into or made by the Company with or for the benefit of,
or relating to, any current or former Employee, director or other independent contractor of, or consultant to, the Company and with respect to which the Company has or will have any direct or indirect liability: 

(a) to which the Company or any ERISA Affiliate has contributed during the 6-year period before the date of this Agreement; 

(b) to which the Company or any ERISA Affiliate has been a party during the 6-year period before the date of this Agreement; 

(c) under which the Company or any ERISA Affiliate may have had any liability or obligation during the 6-year period before the date of
this Agreement; or 
 (d) that provided benefits or described policies applicable to any director, employee, or independent
contractor of the Company or any ERISA Affiliate during the 6-year period before the date of this Agreement. 

“Environmental Claim” means administrative, regulatory or judicial action, suits, demands, demand letters, claims,
Liens, fines, penalties, settlements, notices of non-compliance or violation (whether written or oral), investigations, orders or agreements, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility
for the costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages, property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and
injunctive relief) arising out of, based on or resulting from: (i) any Environmental Law or any term or condition of any Permit issued under any Environmental Law; or (ii) the presence, Release of, or exposure to, any Hazardous Substance.

 “Environmental Escrow Agreement” means the Environmental Escrow Agreement among Buyer, Sellers and Escrow
Agent. 
 “Environmental Law” means any applicable Law, and any Governmental Order or binding agreement with
any Governmental Authority: (a) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the environment (including ambient air, soil, surface water or
groundwater, or subsurface strata); or (b) concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing,
production, disposal or remediation of any Hazardous Substance. The term “Environmental Law” includes, without limitation, the following (including their implementing regulations and any state analogs): the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of
1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et seq.; the Toxic
Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act
Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §§ 651 et seq. 

 “Environmental Policies” means as defined in Section 11.4.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
rules and regulations promulgated thereunder. Section references to ERISA are to the Code as in effect at the date of this Agreement. 
 “ERISA Affiliate” means any Person that during the 6-year period before the date of this Agreement: 
 (a) has been under “common control” with the Company under Section 4001(a)(14) of ERISA or Section 4001(b) of ERISA; or 

(b) has been treated as a single employer with the Company under Section 414 of the Code. 

“Escrow Agent” means Union Bank, N.A., including its successors and assigns. 

“Escrow Agreement” means the Escrow Agreement among Buyer, Sellers and Escrow Agent. 

“Financial Statements” as defined in Section 4.7. 

“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any
agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such
organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction. 

“Governmental Order” means any agreement, order, writ, judgment, injunction, decree, stipulation, determination or award
entered by or with any Governmental Authority. 
 “Hazardous Substance” means: 

(l) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral or gas, in each case,
whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect under Environmental Laws (including, but not limited to, “contaminant,” “dangerous goods,”
“pollutant,” “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” or “toxic
pollutants); and 
 (m) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any
form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls. 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and the pronouncements of the Financial Accounting Standards Board, which are in effect from time to time, consistently applied. 

 “Holdback Amount Release Date” means the date that is eighteen
(18) months after the Closing Date. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended from time to time, and the rules and regulations promulgated thereunder. 

“Indebtedness” means, without duplication, (i) any obligations of the Company for borrowed money (including
all obligations for principal, interest, premiums, penalties, fees, expenses and breakage costs) or indebtedness of the Company issued or incurred in substitution or exchange for obligations for borrowed money, (ii) Customer Advances,
(iii) amounts owing by the Company as deferred purchase price for property or services (other than trade payables incurred in the Ordinary Course of Business), (iv) any obligations of the Company evidenced by any note, bond, debenture or
other debt security, (v) any obligations of a Person other than the Company secured by a Lien against (A) the capital stock or other equity interests of the Company or (B) any right, title and interest in and to the business,
properties, assets and rights of any kind, whether tangible or intangible, real or personal, owned by the Company or in which the Company has any interest, (vi) any obligations of the Company under any capital leases, (vii) any obligations
of the Company which would become due and owing under any employment, severance, bonus, commission or similar agreement upon the execution of this Agreement or the consummation of the transactions contemplated hereby including, without limitation,
amounts owed by the Company to Stephen Scheidler under the Scheidler Employment Agreement and to Merrick Smith, and David Freund under their respective agreements with the Company and (viii) all obligations of the types described in clauses
(i) through (vii) above of any Person other than the Company, the payment of which is guaranteed, directly or indirectly, by the Company. Indebtedness will not, however, include accounts payable incurred in the Ordinary Course of Business
or the endorsement of negotiable instruments for collection in the Ordinary Course of Business. 
 “Indemnified
Person” means a Person entitled to indemnity from an Indemnifying Party under Section 14. 

“Indemnifying Party” means a party obligated to indemnify an Indemnified Person under Section 14.

 “Independent Accountant” means as defined in Section 3.4(c)(1). 

“Intellectual Property” means all intellectual property used by the Company including, without limitation, (i) all
inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part,
revisions, extensions, and re-examinations thereof, (ii) all trademarks, service marks, trade dress, logos, trade names, and corporate names (including the name “Peco”), together with all translations, adaptations, derivations, and
combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (iii) all copyrightable works, all copyrights, and all applications, registrations and renewals in
connection therewith, (iv) all mask works and all applications, registrations, and renewals in connection therewith, (v) all trade secrets and confidential business information (including ideas, research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals),
(vi) all computer software (including data and related documentation and including software installed on hard disk drives) other than generally available commercial off-the-shelf computer software subject to shrinkwrap or clickwrap licenses and
(vii) all copies and tangible embodiments of any of the foregoing (in whatever form or medium). 

 “Initial Balance Sheet” means the balance sheet of the Company dated as at
December 31, 2012. 
 “Interim Balance Sheet” means the balance sheet of the Company dated as at
February 28, 2013. 
 “Knowledge” means: 

(a) with respect to Sellers, the actual knowledge of each Seller, Stephen Scheidler, Merrick Smith, and David Freund after due inquiry;
and 
 (b) with respect to Buyer, the actual knowledge of its officers after due inquiry. 

“Law” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, judgment, decree, other
requirement or rule of law of any Governmental Authority. 
 “Leased Real Property” means the real property and
improvements thereon leased by the Company pursuant to the Leases. 
 “Liens” means liens, security interests,
pledges, mortgages, charges, indentures, deeds of trust or similar encumbrances. 
 “Losses” means losses,
claims, damages, liabilities, deficiencies, actions, judgments, interest, awards, penalties, fines, assessments, deficiencies, costs or expenses of whatever kind, including reasonable professional and attorneys’ fees and the cost of enforcing
any right to indemnification hereunder. 
 “Ordinary Course of Business” means the ordinary course of business
of the Company consistent with past custom and practice (including with respect to quantity and frequency). 

“Permit” means all permits, licenses, franchises, approvals, authorizations, and consents obtained from any Governmental
Authority in connection with the operation of the Company’s assets and business and necessary to conduct the business as presently conducted. 
 “Permitted Closing Encumbrance” means: 
 (a) any Liens arising by
operation of law for Taxes, assessments, or government charges not yet due; 
 (b) any statutory Liens for services or materials
arising in the ordinary course of the Company’s business for which payment is not yet due; and 
 (c) any nonconsensual
Liens incurred in the ordinary course of the Company’s business for workers’ compensation and unemployment insurance and other types of social security. 
 “Person” means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

 “Pre-Closing Environmental Liabilities” means any Losses from Environmental Claims arising out of or
resulting from the conduct of the business of the Company or the operation, use or condition of the Leased Real Property on or prior to the Closing Date. 

 “Pre-Closing Indemnification Liabilities” means any Losses arising out of
or resulting from the Company’s obligations under (i) the Omnex Control Systems, ULC Stock Purchase Agreement, dated December 24, 2007, by and among Cooper Industries (Electrical), Inc. and Peco, Inc. and Peco Omnex Co. and
(ii) the Sure Power, Inc. Stock Purchase Agreement, dated December 24, 2007, by and among Cooper US, Inc. and the Sellers listed on the signature page thereof. 
 “Proceeding” means any claim, demand, action, suit, litigation, dispute, audit or Order by any Governmental Authority, order, writ, injunction, judgment, decree, arbitration, mediation or
other proceeding, whether civil, criminal, administrative or investigative. 
 “Real Property” means the real
property leased or subleased by the Company, together with all buildings, structures and facilities located thereon. 

“Rights” means preemptive rights, warrants, options, restricted stock, performance units, convertible securities and
other similar arrangements or commitments which obligate the Company to issue or dispose of any of its capital stock or other securities or to pay cash therefor. 
 “Release” means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, abandonment, disposing or
allowing to escape or migrate into or through the environment (including, without limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building, structure, facility or fixture).

 “Scheidler Employment Agreement” means the Employment Agreement, effective as of April 6, 2011 between
the Company and Stephen M. Scheidler. 
 “Sellers’ Pro Rata Percentage” means the pro rata ownership
percentages set forth on Appendix B. 
 “Sellers’ Representative” means as defined in
Section 19.19. 
 “Sellers Transaction Expenses” means all fees, costs and expenses paid or
incurred by the Sellers and/or the Company in connection with the transactions contemplated by this Agreement, including, without limitation, the fees and expenses of attorneys, accountants, consultants and financial advisers. 

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

“Straddle Period” means as defined in Section 13.4. 

“Tangible Personal Property” means all of the tangible personal property (other than Inventory) owned or leased by the
Company or in which the Company has any interest, including, without limitation, production and processing equipment, warehouse equipment, computer hardware, furniture and fixtures, tooling, transportation equipment, leasehold improvements, supplies
and other tangible assets, together with any transferable manufacturer or vendor warranties related thereto. 
 “Target
Working Capital” shall mean US$16,000,000. 
 “Tax” or “Taxes” means any
federal, state, local or foreign income, gross receipts, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, ad valorem/personal property, stamp, excise, occupation, sales, use, transfer, value
added, alternative minimum, estimated or other tax, including any interest, penalty or addition to such items, whether disputed or not. 

 “Transaction” means the purchase and sale of the Shares provided for in
this Agreement. 
 “Transaction Documents” means this Agreement and all other documents delivered in connection
with the consummation of the transactions contemplated by this Agreement. 
 “Working Capital Adjustment
Amount” means the difference between the Company’s Closing Working Capital and the Company’s Initial Working Capital. 

 APPENDIX B TO STOCK PURCHASE AGREEMENT 

Stock Ownership Of Peco, Inc. 
 As of February 22, 2013 
 SUMMARY 

 

											
	Certificate
Number	  	Shareholders of Record	  	 Quantity
 Shares
	 	  	Pro Rata Percentage	 
	 26 & 43
	  	 Steven M. and Sally Jane Michaelis
 5615 S.E. Scenic Lane, Unit #301
 Vancouver, WA 98661

stevemic@hotmail.com
	  	 	100,000	  	  	 	17.8	% 
				
	 34, 45 & 67
	  	 Sally Jane Michaelis
 5615
S.E. Scenic Lane, Unit #301
 Vancouver, WA 98661
 stevemic@hotmail.com
	  	 	11,000	  	  	 	2.0	% 
				
	 37, 44 & 66
	  	 Steven M. Michaelis
 5615
S.E. Scenic Lane, Unit #301
 Vancouver, WA 98661
 stevemic@hotmail.com
	  	 	127,190	  	  	 	22.7	% 
				
	 68
	  	 Scott M. Michaelis
 2015
S.E. Columbia River Drive, Unit #430
 Vancouver, WA 98661
 sm350@hotmail.com
	  	 	5,000	  	  	 	.9	% 

											
	Certificate
Number	  	Shareholders of Record	  	 Quantity
 Shares
	 	  	Pro Rata Percentage	 
	 75
	  	 Sarah Jane Levy
 2598
Crestview Dr.
 West Linn, OR 97068

sarahj.levy@gmail.com
	  	 	5,000	  	  	 	.9	% 
				
	 82
	  	 Scott A. Smith, Trustee, or successors in trust,
 under the Scott A. Smith Trust Agreement
 1221 S.E. Ellsworth Road, Apt. 29C

Vancouver, WA 98664

scott.smith.1254@gmail.com
	  	 	65,000	  	  	 	11.6	% 
				
	 51
	  	 James M. Stocks
 5615 SE
Scenic Lane, #200
 Vancouver, WA 98661-0526
 jims@symlic.com
	  	 	124,095	  	  	 	22.1	% 
				
	 81
	  	 Joseph C. Kempe, Trustee of the Margaret C. Taylor Investment Trust u/t/d June 4, 2010

 
 Joseph C. Kempe
 941 North Highway A1A
 Jupiter, FL 33477
 (561) 747-7300
 joekempe@jckempe.com
	  	 	62,047	  	  	 	11.05	% 

											
	Certificate
Number	  	Shareholders of Record	  	 Quantity
 Shares
	 	  	Pro Rata Percentage	 
	 80
	  	 Joseph C. Kempe, Trustee of the Herbert J. Taylor Investment Trust u/t/d June 4, 2010

 
 Joseph C. Kempe
 941 North Highway A1A
 Jupiter, FL 33477
 (561) 747-7300
 joekempe@jckempe.com
	  	 	62,048	  	  	 	11.05	% 
		
	 TOTAL ISSUED AND OUTSTANDING SHARES
	   
	  	 	561,380	  
		
	 Total Authorized Shares
	   
	  	 	1,000,000.00	  

 APPENDIX C TO STOCK PURCHASE AGREEMENT 

Tax Timetable for 338(h)(10) Election** 
  

			
	 	  	Closing of sale of shares of the Company to the Buyer.
		
	September 1, 2013	  	Delivery to Sellers’ Representative, of the following: (1) valuation reports arranged by the Buyer of assets of the Company and (2) proposed allocation of purchase price to
such assets of the Company.
		
	October 23, 2013	  	Delivery to the Buyer by Sellers’ Representative, on behalf of Sellers, of information and calculations of the amount of the Final Tax Indemnification Payments payable to
the Sellers if a Section 338(h)(10) Election is made (and the additional bonus payments payable to Steve Scheidler if a 338(h)(10) Election is made).
		
	November 30, 2013	  	Buyer’s ability to revoke its agreement to make a Section 338(h)(10) Election agreement will lapse. If the Buyer has not revoked its agreement to make Section 338(h)(10)
Elections, then cooperation between tax advisors to the Sellers, and the Buyer regarding finalization of the Final Tax Indemnification Payment amounts.
		
	December 15, 2013	  	If the Buyer has not revoked its agreement to make a Section 338(h)(10) Election, then: (1) payment of the Tax Indemnification Payment amounts by the Buyer to the Sellers; and
(2) execution of Section 338(h)(10) Election documents by the Buyer and the Sellers.
		
	Date TBD	  	Filing of Section 338(h)(10) Election.

  

	**	Capitalized terms used in this Tax Timetable have their respective meanings set forth in the Stock Purchase Agreement to which this Annex is attached.

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