Document:

EX-10.1

 

EXHIBIT 10.1

 

ASSET PURCHASE AGREEMENT

AMONG

SOUTHERN SAW ACQUISITION CORPORATION

(“Buyer”)

and

SOUTHERN SAW HOLDINGS, INC.

and

SOUTHERN SAW SERVICE, L.P.

(collectively, “Sellers”)

October 11, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page
	1. Definitions
	 	 	1	 
	2. Terms Of The Purchase
	 	 	7	 
	2.1 Purchase and Sale of Assets
	 	 	7	 
	2.2 Excluded Assets
	 	 	8	 
	2.3 Liabilities
	 	 	9	 
	2.4 Purchase Price for the Acquired Assets
	 	 	11	 
	2.5 Preparation of Statement of Assets Acquired
	 	 	11	 
	2.6 Stub Period Adjustments to the Estimated Purchase Price
	 	 	12	 
	2.7 Method of Payment of the Purchase Price
	 	 	12	 
	2.8 Post-Closing Adjustment to the Purchase Price
	 	 	13	 
	2.9 Deliveries at Closing
	 	 	13	 
	2.10 Allocation of the Purchase Price
	 	 	14	 
	2.11 The Closing
	 	 	14	 
	2.12 Prorations
	 	 	14	 
	3. Representations and Warranties Concerning the Transaction
	 	 	15	 
	3.1 Representations and Warranties of the Sellers
	 	 	15	 
	3.2 Representations and Warranties of the Buyer
	 	 	15	 
	4. Representations and Warranties Concerning the Sellers
	 	 	15	 
	4.1 Organization; Authorization
	 	 	16	 
	4.2 Capitalization
	 	 	16	 
	4.3 Noncontravention
	 	 	17	 
	4.4 Brokers’ Fees
	 	 	17	 
	4.5 Title to Assets
	 	 	17	 
	4.6 Subsidiaries
	 	 	17	 
	4.7 Financial Statements; Trade Accounts Receivable; Inventory
	 	 	17	 
	4.8 SEC Filings
	 	 	18	 
	4.9 Events Subsequent to Most Recent Fiscal Year End
	 	 	18	 
	4.10 Undisclosed Liabilities
	 	 	19	 
	4.11 Legal Compliance; Permits and Licenses
	 	 	19	 
	4.12 Tax Matters
	 	 	19	 
	4.13 Real Property
	 	 	20	 
	4.14 Intellectual Property
	 	 	21	 
	4.15 Fixed Assets
	 	 	21	 
	4.16 Inventory
	 	 	21	 
	4.17 Contracts
	 	 	21	 
	4.18 Notes and Accounts Receivable
	 	 	23	 
	4.19 Powers of Attorney
	 	 	23	 
	4.20 Insurance
	 	 	23	 
	4.21 Litigation
	 	 	23	 
	4.22 Product Warranty
	 	 	24	 
	4.23 Product Liability
	 	 	24	 
	4.24 Employees
	 	 	24	 
	4.25 Employee Benefits
	 	 	24	 
	4.26 Guaranties
	 	 	25	 
	4.27 Environment
	 	 	25	 
	4.28 Certain Business Relationships with the Sellers
	 	 	26	 
	4.29 Customers and Suppliers
	 	 	26	 
	5. Covenants
	 	 	26	 
	5.1 Due Diligence Investigation and Access
	 	 	26	 
	5.2 Operation of the Business of the Sellers
	 	 	26	 
	5.3 Negative Covenant of the Sellers
	 	 	27	 
	5.4 Required Approvals
	 	 	27	 
	5.5 Notification
	 	 	28	 

 

 

	 	 	 	 	 
	 
	 	 	Page
	5.6 No Shopping
	 	 	28	 
	5.7 Reasonable Best Efforts
	 	 	28	 
	5.8 Change of Name
	 	 	28	 
	5.9 Payment of Liabilities
	 	 	28	 
	5.10 Cooperation Concerning Title; Survey; UCC Searches
	 	 	28	 
	5.11 Removing Excluded Assets
	 	 	30	 
	5.12 Bulk Sales Laws
	 	 	30	 
	5.13 Anti-Sandbagging
	 	 	31	 
	5.14 Stub Period
	 	 	31	 
	6. Employees
and Post-Closing Covenants
	 	 	31	 
	6.1 Employees Other than Boyle
	 	 	31	 
	6.2 Payment of Taxes Resulting from Sale of Acquired Assets by the Sellers
	 	 	32	 
	6.3 Payment of Liabilities
	 	 	32	 
	6.4 Restrictions on Dissolution of the Sellers
	 	 	32	 
	6.5 Reports and Returns
	 	 	32	 
	6.6 Further Assurances
	 	 	32	 
	6.7 Litigation Support
	 	 	33	 
	6.8 Transition
	 	 	33	 
	6.9 Post-Closing Access to Assets and Records
	 	 	33	 
	6.10 Warranties and Returns
	 	 	33	 
	7. CONDITIONS TO OBLIGATION TO CLOSE
	 	 	33	 
	7.1 Conditions to Obligation of the Buyer
	 	 	33	 
	7.2 Conditions to Obligation of the Sellers
	 	 	35	 
	8. Remedies for Breaches of This Agreement
	 	 	36	 
	8.1 Survival of Representations and Warranties
	 	 	36	 
	8.2 Indemnification Provisions for Benefit of the Buyer
	 	 	36	 
	8.3 Indemnification Provisions for Benefit of the Sellers
	 	 	36	 
	8.4 Matters Involving Third Parties
	 	 	37	 
	8.5 Limitations
	 	 	37	 
	8.6 Determination of Adverse Consequences
	 	 	38	 
	8.7 Other Indemnification Provisions
	 	 	38	 
	8.8 Mitigation
	 	 	38	 
	9. Miscellaneous
	 	 	38	 
	9.1 Nature of Certain Obligations
	 	 	38	 
	9.2 Press Releases and Public Announcements
	 	 	38	 
	9.3 No Third-Party Beneficiaries
	 	 	38	 
	9.4 Entire Agreement
	 	 	38	 
	9.5 Succession and Assignment
	 	 	38	 
	9.6 Counterparts
	 	 	39	 
	9.7 Headings
	 	 	39	 
	9.8 Notices
	 	 	39	 
	9.9 Governing Law
	 	 	39	 
	9.10 Amendments and Waivers
	 	 	40	 
	9.11 Severability
	 	 	40	 
	9.12 Expenses
	 	 	40	 
	9.13 Construction
	 	 	40	 
	9.14 Specific Performance
	 	 	41	 
	9.15 Dispute Resolution—Mediation and Arbitration
	 	 	41	 
	9.16 Confidentiality
	 	 	42	 

ii 

 

EXHIBITS, SCHEDULES AND DISCLOSURE LETTER

	 	 	 	 	 
	Exhibits
	 	 	 	 
	Exhibit A

	 	—
	 	Steps Required for Compliance with Bulk Sales Law
	Exhibit B

	 	—
	 	Investment Real Estate
	Exhibit C

	 	—
	 	Prepaid Expenses
	Exhibit D

	 	—
	 	Seller Contracts
	Exhibit E

	 	—
	 	Assumed Seller Contracts
	Exhibit F

	 	—
	 	Form of Escrow Agreement
	Exhibit G

	 	—
	 	Allocation of the Purchase Price
	Exhibit H

	 	—
	 	Financial Statements
	Exhibit I

	 	—
	 	Required Consents
	Exhibit J

	 	—
	 	Form of Noncompetition Agreement
	Exhibit K

	 	—
	 	Form of New Boyle Noncompetition Agreement
	Exhibit L

	 	—
	 	Form of Opinion of Counsel to the Sellers and the Holdings ESOP
	Exhibit M

	 	—
	 	Seller Contracts Requiring Changes
	Exhibit N

	 	—
	 	Accrued Expenses
	Exhibit O

	 	—
	 	Form of Opinion of Counsel to the Buyer
	 
	 	 	 	 
	Schedules
	 	 	 	 
	Schedule 2.3(a)(2)

	 	 	 	Trade Accounts Payable (to be delivered at Closing)
	Schedule 2.3(a)(3)

	 	 	 	Accrued Expenses (to be delivered at Closing)
	Schedule 2.4

	 	 	 	Acquired Intangibles and Goodwill (to be delivered at Closing)
	 
	 	 	 	 
	Disclosure Letter
	 	 	 	 
	Section 2.2(g)

	 	 	 	Sellers’ Contracts Other Than Assumed Seller Contracts
	Section 2.2

	 	 	 	Certain Excluded Assets
	Section 4.1

	 	 	 	Directors and Officers of Holdings
	Section 4.9

	 	 	 	Certain Events Since Most Recent Fiscal Year End
	Section 4.10

	 	 	 	Certain Listed Liabilities
	Section 4.12

	 	 	 	Certain Tax Matters
	Section 4.12

	 	 	 	States and Localities for Tax Filings
	Section 4.13

	 	 	 	Certain Matters Relating to the Property
	Section 4.13(e)

	 	 	 	Unsatisfactory Aspects of the Structures
	Section 4.13(i)

	 	 	 	Certain Permitted Exceptions
	Section 4.13(j)

	 	 	 	Tax Information for Owned Real Property
	Section 4.13(k)

	 	 	 	Delinquent Tenants for Investment Real Property
	Section 4.14(a)

	 	 	 	Intellectual Property Owned or Licensed
	Section 4.14(b)

	 	 	 	Adverse Matters Concerning Intellectual Property
	Section 4.17

	 	 	 	Seller Contracts
	Section 4.18

	 	 	 	Terms of Cash Discount or Customer Rebate Programs
	Section 4.20

	 	 	 	Sellers’ Insurance Policies
	Section 4.21

	 	 	 	Litigation and Investigations
	Section 4.22

	 	 	 	Sellers’ Standard Terms and Conditions
	Section 4.23

	 	 	 	Sellers’ Product Liability
	Section 4.24

	 	 	 	Employees
	Section 4.25

	 	 	 	Employee Benefit Plans
	Section 4.27

	 	 	 	Certain Environmental Matters
	Section 4.27(h)

	 	 	 	Persons Handling Sellers’ Hazardous Substances
	Section 4.28

	 	 	 	Certain Business Relationships with the Sellers

 

 

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (as hereinafter defined, this “Agreement”) is made and
entered into effective as of October 11, 2006, by and among SOUTHERN SAW ACQUISITION CORPORATION, a
Delaware corporation (the “Buyer”), SOUTHERN SAW HOLDINGS, INC., a Georgia corporation
(“Holdings”), and SOUTHERN SAW SERVICE, L.P., a Georgia limited partnership (“Southern
Saw,” collectively with Holdings, “Sellers,” and each of Southern Saw and Holdings,
without distinction, a “Seller”). The Buyer and the Sellers are sometimes referred to
herein individually as a “Party” and collectively as the “Parties.” This Agreement
has been joined in by KASCO CORPORATION, a Delaware corporation (“Kasco”), the parent
corporation of Buyer, as Buyer’s Guarantor, by execution of the Joinder of Buyer’s Guarantor
appearing at the end of this Agreement.

Background

     The Sellers are in the Business (as hereinafter defined) throughout the United States. The
Holdings ESOP (as hereinafter defined) owns all of the outstanding capital stock of Holdings, and
Holdings and Davis Family Enterprises, LLC own all of the outstanding equity interests of Southern
Saw. This Agreement contemplates a transaction in which the Buyer will purchase from the Sellers,
and the Sellers will sell to the Buyer, all of the Acquired Assets in return for cash and the
assumption of the Assumed Liabilities, all pursuant to the terms of this Agreement.

     Now, therefore, in consideration of the premises and the mutual promises herein made, and in
consideration of the representations, warranties, covenants and agreements herein contained, the
Parties agree as follows:

Terms

     1. DEFINITIONS.

          “AAA” shall mean the American Arbitration Association.

          “Accrued Expenses” shall have the meaning set forth in Section 2.3 of this Agreement.

          “Acquired Assets” shall have the meaning set forth in Section 2.1 of this Agreement.

          “Acquired Fixed Assets” shall mean all fixed assets (including the manufacturing
facility and the land upon which it rests) and service equipment used by Southern Saw in the
conduct of its business.

          “Acquired Fixed Asset Value” shall have the meaning set forth in Section 2.6.

          “Acquired Intangibles and Goodwill” shall have the meaning set forth in Section
2.1(f).

          “Acquired Working Capital” shall have the meaning set forth in Section 2.5(b) of this
Agreement.

          “Adverse Consequences” shall mean all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages, environmental investigation and remedial costs, dues, penalties, fines, costs,
amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and fees,
including court costs and reasonable attorneys’ fees and expenses.

          “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the
Securities Exchange Act.

 

 

          “Affiliated Group” shall mean any affiliated group of corporations within the meaning
of Code Sec. 1504.

          “Aged Receivables” shall have the meaning set forth in Section 2.2(c) of this
Agreement.

          “Agreement” shall mean this Asset Purchase Agreement and any written amendment hereto
executed and delivered by the Parties.

          “Assumed Liabilities” shall have the meaning set forth in Section 2.3(a) of this
Agreement.

          “Assumed Customer Contracts” shall have the meaning set forth in Section 4.17 of this
Agreement.

          “Assumed Seller Contracts” shall have the meaning set forth in Section 2.3(a) of this
Agreement.

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

          “Boyle” shall mean Peter J. Boyle.

          “Boyle Agreement” shall mean Sellers’ Restated Employment Retention Agreement dated
July 28, 2006 with Boyle, as such agreement may have been contingently restated or amended in
contemplation of closing of the sale by Sellers to Buyer, which provides for gross severance pay
and benefits equal to the sum of (A) two years of salary and bonus determined in the manner set
forth in the Boyle Agreement, and (B) two years of certain employee benefits as specified in the
Boyle Agreement.

          “Bulk Sales Laws” shall mean the bulk-transfer provisions of the Uniform Commercial
Code (or any similar law) of the State of Georgia, as referenced in Exhibit A to this
Agreement.

          “Business” shall mean shall mean any or all of (a) the business of producing, storing,
transporting, sharpening, selling, or leasing sharp edge blade products for the meat business, the
bakery business, and the wood pallet business, and (b) the business of providing repair services
for sharp edge, oven, wall sanitizing, ice machine, compressor and aquarium tank equipment or
products located in retail grocery stores, butcher shops, bakeries, restaurants, meat packing
houses, meat processing houses, or meat slaughter houses.

          “Business Day” shall mean a day other than a Saturday, a Sunday, or a day on which
banks located in Atlanta, Georgia are required or permitted by law to remain closed.

          “Buyer” shall have the meaning set forth in the preface above.

          “Buyer’s Guarantor” shall mean Kasco Corporation, a Delaware corporation that is the
owner of 100% of the equity securities of Buyer.

          “Cash In” shall mean any cash received by the Sellers during the Stub Period
(including but not limited to cash and credit card sales) except that if any of the receipts were
for Aged Receivables (which are Excluded Assets), then such receipts shall be excluded from Cash
In.

          “Cash Out” shall mean, without duplication:

          (a) any cash paid out by the Sellers during the Stub Period for Trade Accounts Payable or
Accrued Expenses included in the calculation of the Preliminary Purchase Price as of the Effective
Date; and

          (b) Trade Accounts Payable or Accrued Expenses (including payroll and payroll related expenses
for the Stub Period) related to the ongoing business of the Sellers created during the Stub Period;

2

 

Notwithstanding the foregoing, Cash Out shall not include: (1) any cash payments (e.g., sales tax
payments, legal/consulting fees related to the acquisition, severance payments to terminated
employees, etc.) made during the Stub Period that (A) relate to Liabilities that are not included
in the Trade Accounts Payable or Accrued Expenses used as a basis for the calculation of the
Purchase Price as of the Effective Date, and (B) do not relate to the ongoing business; or (2) any
cash payment made during the Stub Period for a Liability incurred prior to October 1 that was not
included in Trade Accounts Payable or Accrued Expenses as of the Effective Date.

          “CERCLA” shall have the meaning set forth in Section 4.27(h) of this Agreement.

          “Closing” shall have the meaning set forth in Section 2.11 of this Agreement.

          “Closing Date” shall have the meaning set forth in Section 2.11 of this Agreement.

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

          “Disclosure Letter” shall have the meaning set forth in Section 4 of this Agreement.

          “Dispute Notice” shall have the meaning set forth in Section 2.8(a) of this Agreement.

          “Effective Date” shall mean October 1, 2006, the date when the consummation of the
transactions contemplated hereby shall be deemed to have occurred notwithstanding that the Closing
is occurring as of the date of this Agreement.

          “Employee Benefit Plan” shall mean any (a) nonqualified deferred compensation or
retirement plan or arrangement which is an Employee Pension Benefit Plan, (b) qualified defined
contribution retirement plan or arrangement which is an Employee Pension Benefit Plan, (c)
qualified defined benefit retirement plan or arrangement which is an Employee Pension Benefit Plan
(including any Multiemployer Plan), or (d) Employee Welfare Benefit Plan or material fringe benefit
plan or program.

          “Employee Pension Benefit Plan” shall have the meaning set forth in ERISA Sec. 3(2),
codified at 29 U.S.C. §1002(2).

          “Employee Welfare Benefit Plan” shall have the meaning set forth in ERISA Sec. 3(1),
codified at 29 U.S.C. §1002(1).

          “Employment Schedule” shall have the meaning set forth in Section 6.1.

          “Engaged Banker” shall mean Slusser Associates, Inc. and any investment banking firm
with which Peter Slusser is affiliated, the financial advisor who has been engaged by and shall be
compensated solely by the Sellers in connection with the transactions contemplated by this
Agreement.

          “Environmental Laws” shall mean any federal, state or local law, statute, final
regulation, rule, ordinance, code, policy, permit, license, judgment or order, or rule of common
law now in effect and in each case as amended to date and any judicial or administrative
interpretation thereof including any judicial or administrative order, consent decree or judgment
to which the Sellers or any of their respective assets or properties is subject relating to (a)
emissions, discharges, or releases of Hazardous Substances, (b) the generation, processing,
manufacture, distribution, handling, transport, use, treatment, storage or disposal of Hazardous
Substances or materials containing Hazardous Substances, in each case as in effect on the date of
this Agreement, or (c) otherwise relating to the pollution of the environment, solid waste handling
treatment or disposal, reclamation or remediation activities, environmental matters, the protection
of public health and safety from environmental or health concerns, or otherwise relating to
environmental conditions.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

3

 

          “Escrow Agent” shall mean One Georgia Bank, a Georgia Corporation.

          “Escrow Agreement” shall have the meaning set forth in Section 2.7(a) of this
Agreement.

          “Escrow Amount” shall have the meaning set forth in Section 2.7.

          “Escrowed Proceeds” shall have the meaning set forth in Section 2.7.

          “Estimated Purchase Price” shall have the meaning set forth in Section 2.6 of this
Agreement.

          “Excluded Assets” shall have the meaning set forth in Section 2.2.

          “Financial Statements” shall have the meaning set forth in Section 4.7 of this
Agreement.

          “For Cause” shall mean any termination by the Buyer of a former employee of Sellers
hired under Section 6.1 as a result of such employee’s (a) actual or attempted embezzlement, (b)
conviction (or a plea bargain admitting criminal guilt or no contest) of a crime involving
dishonesty, fraud, or breach of trust, (c) misappropriation, or attempted misappropriation, of any
of the Buyer’s material business opportunities, including violation of any noncompetition agreement
with the Buyer, (d) alcohol or illegal drug abuse (1) while on the job, or (2) that otherwise has a
material adverse effect on job performance, (e) unlawful harassment of any employee or other
business associate of the Buyer, (f) insubordination of a type and degree that reasonably would be
expected to result in dismissal from employment, or (g) any other willful nonfeasance, misfeasance,
or malfeasance in the performance of duties.

          “GAAP” shall mean United States generally accepted accounting principles as in effect
from time to time, consistently applied.

          “Grant Thornton” shall have the meaning specified in Section 2.5(a) of this Agreement.

          “Hazardous Substances” shall mean all (a) substances which contain substances defined
in or regulated under the Environmental Laws; (b) petroleum and petroleum products, including crude
oil and any fractions thereof; (c) natural gas, synthetic gas and any mixtures thereof; (d)
substances with respect to which a federal, state or local agency requires environmental
investigation, monitoring, reporting or remediation; (e) hazardous wastes or solid wastes, within
the meaning of any Environmental Laws; (f) solid, hazardous, dangerous or toxic chemicals,
materials, wastes or substances, within the meaning of and regulated by any Environmental Laws; (g)
radioactive materials; (h) asbestos-containing materials that represent a health hazard, and (i)
polychlorinated biphenyls, including without limitation, any such pollution or contamination and
any materials defined, listed, identified or under or described in any Environmental Laws.

          “Holdings ESOP” shall mean the Southern Saw Holdings, Inc. Employee Stock Ownership
Plan and Trust, which is the sole owner of issued and outstanding equity securities of Holdings.

          “Indebtedness” shall mean all indebtedness or other obligation of the Sellers, or
either of them, for borrowed money, whether current, short-term or long term, secured or unsecured,
capitalized lease obligations, and all accrued interest, premiums, penalties and other monetary
obligations relating thereto.

          “Indemnified Party” shall have the meaning set forth in Section 8.4(a) of this
Agreement.

          “Indemnifying Party” shall have the meaning set forth in Section 8.4(a) of this
Agreement.

          “Indemnity Basket” shall have the meaning set forth in Section 8.5(a) of this
Agreement.

          “Indemnity Cap” shall have the meaning set forth in Section 8.5(b) of this Agreement.

4

 

          “Intellectual Property” shall mean (a) 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 reexaminations thereof, (b) all trademarks,
service marks, trade dress, logos, trade names, brand names, designs and corporate names, together
with all translations, adaptations, derivations, and combinations thereof and including all
goodwill associated therewith, and all applications, registrations, and renewals in connection
therewith, (c) all works of authorship, mask works and copyrights therein, including all
applications, registrations, and renewals in connection therewith, (d) all trade secrets and
confidential business information (including research and development, know-how, discoveries,
formulas, compositions, processes, procedures, methods, techniques, technical data, operating and
maintenance manuals, designs, drawings, specifications, customer and supplier lists, pricing and
cost information, and business and marketing plans and proposals), (e) all computer software
(including source code, data, tools, modules, databases and related documentation), Internet
websites and domain names and applications and registrations in connection therewith, (f) all other
proprietary rights, and (g) all copies and tangible embodiments thereof (in whatever form or
medium).

          “Investment Real Estate” shall mean the real property of Southern Saw referenced in
Exhibit B, constituting all of the real property owned by Sellers except for the real
property included in the Acquired Fixed Assets;

          “Knowledge” shall mean: (a) with respect to Sellers, the actual knowledge of either
Holdings or Southern Saw, as established by direct or circumstantial evidence; and (b) with respect
to the Buyer, the actual knowledge, as established by direct or circumstantial evidence, of any of
Luke E. Fichthorn III, Larry Maingot, or Brian E. Turner; provided, however, that any
matter set forth in this Agreement or in any Exhibit or Schedule hereto, or in the Disclosure
Letter shall be deemed within the Knowledge of the Buyer.

          “Lease” shall have the meaning set forth in Section 4.13 of this Agreement.

          “Leased Property” shall have the meaning set forth in Section 4.13 of this Agreement.

          “Liability” shall mean any liability or obligation (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether
liquidated or unliquidated, whether due or to become due, and whether or not required to be
reflected on a balance sheet prepared in accordance with GAAP), including any liability for Taxes.

          “Long Term Contract” shall have the meaning set forth in Section 4.17 of this
Agreement.

          “Most Recent Balance Sheet” shall mean the balance sheet contained within the Most
Recent Financial Statements.

          “Most Recent Financial Statements” shall have the meaning set forth in Section 4.7(a)
of this Agreement.

          “Most Recent Fiscal Month End” shall have the meaning set forth in Section 4.7(a) of
this Agreement.

          “Most Recent Fiscal Year End” shall have the meaning set forth in Section 4.7(a) of
this Agreement.

          “Multiemployer Plan” shall have the meaning set forth in ERISA Sec. 3(37), codified at
29 U.S.C. § 1002 (37).

          “New Boyle Noncompetition Agreement” shall have the meaning set forth in Section
7.1(p).

          “Noncompetition Agreement” shall have the meaning set forth in Section 7.1(o) of this
Agreement.

5

 

          “Ordinary Course of Business” shall mean the ordinary course of business consistent
with past custom and practice (including with respect to quantity and frequency).

          “Offer Letter” shall have the meaning specified in Section 5.1 of this Agreement.

          “Owned Property” shall have the meaning set forth in Section 4.13 of this Agreement.

          “Party” shall have the meaning set forth in the preface above.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation.

          “Pension Plan” shall mean the defined benefit pension plan that Holdings maintains for
employees of Sellers.

          “Permitted Exceptions” shall have the meaning set forth in Section 4.13 of this
Agreement.

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

          “Prepaid Expenses” shall mean the prepaid expenses and deposits of Southern Saw and
Holdings as set forth on Exhibit C to this Agreement.

          “Prohibited Transaction” shall have the meaning set forth in ERISA Sec. 406, codified
at 29 U.S.C. § 1106, and Code Sec. 4975.

          “Property” shall have the meaning set forth in Section 4.13 of this Agreement.

          “Property Taxes” shall have the meaning set forth in Section 2.12(a) of this
Agreement.

          “Purchase Price” shall have the meaning set forth in Section 2.4 of this Agreement.

          “Required Consents” shall have the meaning set forth in Section 7.1(e) of this
Agreement.

          “Retained Liabilities” shall have the meaning set forth in Section 2.3(b) of this
Agreement.

          “Representatives” shall have the meaning set forth in Section 5.4 of this Agreement.

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

          “Security Interest” shall mean any mortgage, pledge, lien, encumbrance, charge,
restriction on transfer, conditional sales agreement, deed of trust or other security interest,
other than (a) mechanic’s, materialmen’s, and similar liens, none of which secure obligations
presently in default, (b) liens for ad valorem and similar Taxes not yet due and payable, (c)
purchase money liens and liens securing rental payments under capital lease arrangements or other
Indebtedness, if any, to be assumed by the Buyer, none of which secure obligations presently in
default, (d) those Permitted Exceptions defined in Section 4.13(i) of the Disclosure Letter; and
(e) other immaterial liens imposed by law, or otherwise arising, in the Ordinary Course of Business
and not incurred in connection with the borrowing of money.

          “Sellers” shall have the meaning set forth in the preface above, and “Seller”
shall mean either of them, without distinction.

          “Seller Contracts” shall have the meaning set forth in Section 2.1(f) of this
Agreement.

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          “Sellers’ Accountants” shall mean George A. Pennington & Co., LLC, the independent
certified public accountants that audited the Financial Statements of the Sellers for the fiscal
years of the Sellers ended June 30, 2004, June 30, 2005, and June 30, 2006.

          “Set-Aside Program” shall mean an affirmative action, minority set-aside, diverse
business enterprise, minority business entity participation goal, historically under-utilized
business participation goal or similar program.

          “Statement of Assets Acquired” shall have the meaning set forth in Section 2.5(a) of
this Agreement.

          “Structures” shall have the meaning set forth in Section 4.13(e) of this Agreement.

          “Stub Period” shall mean the period from the Effective Date to the Closing Date.

          “Subsidiary” shall mean any corporation, partnership, limited liability company or
other entity with respect to which a specified Person (or a Subsidiary thereof) owns a majority of
the common stock or other ownership interest or has the power to vote or direct the voting of
sufficient securities to elect a majority of the directors or otherwise direct the management of
the entity.

          “Survey” shall have the meaning set forth in Section 5.11(b) of this Agreement.

          “Tax” shall mean any federal, state, local, or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental (including taxes under Code Sec. 59A), customs duties, capital stock, franchise,
escheat, abandoned property, unclaimed property, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or other tax of any kind
whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

          “Tax Return” shall mean any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or attachment thereto,
and including any amendment thereof.

          “Third Party Claim” shall have the meaning set forth in Section 8.4(a) of this
Agreement.

          “Trade Accounts Payable” shall mean the trade accounts payable of Southern Saw set
forth in Schedule 2.3(a)(2) to be delivered at Closing.

          “Trade Accounts Receivable” shall mean all the valid trade accounts receivable of
Southern Saw, but excluding any delinquent rent payable to Sellers, or either of them, in respect
to the Investment Real Property.

     2. TERMS OF THE PURCHASE.

          2.1 Purchase and Sale of Assets. On and subject to the terms and conditions of this
Agreement, at the Closing, the Sellers agree to sell, convey, assign, transfer and deliver to the
Buyer, and the Buyer agrees to purchase and acquire from the Sellers, free and clear of any
Security Interest, all of the Sellers’ right, title and interest in and to all of the Sellers’
property and assets, real, personal or mixed, tangible and intangible, wherever located, including
the following (but excluding the Excluded Assets) (collectively, the “Acquired Assets”):

               (a) all of the Trade Accounts Receivable except for the Aged Receivables, all of which shall
be adequately reserved for an ongoing business in accordance with the following provisions of this
Section 2.1;

               (b) all of the inventory of Southern Saw, all of which shall be usable except as adequately
reserved for an ongoing business in accordance with the following provisions of this Section 2.1;

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               (c) the Prepaid Expenses;

               (d) the Acquired Fixed Assets;

               (e) the Investment Real Estate;

               (f) all intangibles and goodwill of the Business (collectively, “Acquired Intangibles and
Goodwill,” including: (1) all trade names presently or historically used by the Sellers in the
Business as well as the trade names “Atlanta Sharptech” and “Southern Saw,” for the Buyer’s
exclusive use worldwide (including as against the Sellers, who shall change their names and the
names of all affiliated entities so that they make no reference to the trade names sold to the
Buyer); (2) the websites and the phone numbers used by the Sellers in the Business; (3) all
technologies, patents, formulas, bills of materials and processes used by the Sellers as well as
all customer and vendor lists and other information necessary to operate the Business; (4)
contract rights of Southern Saw in respect of contracts and leases that Southern Saw has with
unaffiliated parties that are listed in Exhibit D to this Agreement (the “Seller
Contracts”); and (5) the Sellers’ Kaiser medical insurance policy covering Sellers’ employees.

               (g) the right, to the exclusion of the Sellers’ rights, to hire employees of the Sellers, all
of whom presently are employed by Holdings and none of whom are employed by Southern Saw;

               (h) all insurance benefits, including rights and proceeds, arising from or relating to the
Acquired Assets or the Assumed Liabilities prior to the Closing; and

               (i) all claims of the Sellers against third parties relating to the Acquired Assets, whether
choate or inchoate, known or unknown, contingent or noncontingent.

Notwithstanding the foregoing, the transfer of the Acquired Assets pursuant to this Agreement shall
not include the assumption of any Liability related to the Acquired Assets except for the Assumed
Liabilities.

In accordance with the terms of the letter agreement between the parties dated August 1, 2006,
Grant Thornton LLP has performed pre-close agreed-upon procedures in respect of the Trade Accounts
Receivable, inventory and Trade Accounts Payable of Sellers. As a result of that audit, Buyer and
Sellers have agreed to stipulate reserves for Trade Accounts Receivable and inventory. The sole
reserve for Trade Accounts Receivable will be fifty percent (50%) of all Trade Accounts Receivable
over ninety (90) days old but less than twelve (12) months old as of October 1, 2006. The
inventory reserve will be $497,000.

          2.2 Excluded Assets. Notwithstanding anything to the contrary contained in Section
2.1 or elsewhere in this Agreement, the following excluded assets of the Sellers (collectively, the
“Excluded Assets”), without duplication, are not part of the sale and purchase contemplated
hereunder, are excluded from the Acquired Assets and shall remain the property of the Sellers after
the Closing:

               (a) the Pension Plan;

               (b) the related-party receivables (including excess tax distributions and management fees, and
other such receivables between Sellers and Davis Family Enterprises, LLC) of the Sellers;

               (c) all Trade Accounts Receivable of the Sellers that are aged more than 12 months at the
Effective Date (the “Aged Receivables”);

               (d) all minute books, stock records, and corporate seals of the Sellers;

               (e) the shares of equity securities and partnership interests of the Sellers;

               (f) all insurance policies and rights thereunder (except for the Kaiser medical insurance
policy included in the Acquired Assets and any other policies to the extent so provided in Section
4.20);

8

 

               (g) all of the agreements, contracts, leases, consensual obligations, promises or undertakings
of the Sellers other than the Assumed Seller Contracts, with such other contracts being listed in
Section 2.2(g) of the Disclosure Letter;

               (h) all personnel records and other records that the Sellers are required by law or need to
retain in their possession;

               (i) all claims for refund of Taxes and other governmental charges of whatever nature;

               (j) all rights in connection with and assets of the Employee Benefit Plans;

               (k) all rights of the Sellers under this Agreement;

               (l) personal items of the employees, shareholders, partners, officers and directors of
Sellers;

               (m) any monthly rental payments from the Investment Property received by Sellers prior to
Closing and relating to periods prior to Closing;

               (n) the Boyle Agreement;

               (o) delinquent rent payable to Sellers, or either of them, in respect to Investment Real
Property;

               (p) the property and assets expressly designated in Section 2.2 of the Disclosure Letter;

               (q) prorated portion (prorated as of the Effective Date) of any credit card subsidy from the
American Express Company with respect to Southern Saw’s payment arrangements with COSTCO Wholesale
Corporation; and

               (r) all assets not enumerated in Section 2.1.

          2.3 Liabilities.

               (a) Assumed Liabilities. On and subject to the terms and conditions of this
Agreement, the Buyer agrees to assume and discharge only the following Liabilities of the Sellers
(the “Assumed Liabilities”):

               (1) the Trade Accounts Payable set forth in Schedule 2.3(a)(1) to be delivered
at Closing, but also including any trade account payable arising in the Ordinary Course of
Business (and not payable to an affiliate of Sellers), but not recorded as liabilities on
October 1, 2006;

               (2) the accrued liabilities of Southern Saw incurred in the normal course of business
and as set forth in Schedule 2.3(a)(2) to be delivered at Closing (“Accrued
Expenses”), but including any liability arising in the Ordinary Course of Business (and
not payable to an affiliate of Sellers), but not recorded as liabilities on October 1, 2006
(with the Accrued Expenses as of $83,050, 2006 being reflected in Exhibit N to this
Agreement);

               (3) warranties, volume rebates, allowances and similar matters with respect to which
and to the extent to which reserves therefor have been established on the books of the
Sellers;

9

 

               (4) obligations of Sellers under the Seller Contracts set forth or described in Exhibit
E to this Agreement, with such Seller Contracts having been entered into (A) with Persons
other than Affiliates, and (B) in good faith (“Assumed Seller Contracts”); and

               (5) the Sellers’ Kaiser medical insurance policy (but not the related MetLife dental
plan or the related life insurance plan or post-retirement medical benefits), including the
obligation to handle under the Kaiser medical insurance policy the administration of COBRA
for terminated employees of the Sellers.

               (b) Retained Liabilities. The Retained Liabilities shall remain the sole
responsibility of and shall be retained, paid, performed and discharged solely by the Sellers.
“Retained Liabilities” shall mean every Liability of the Sellers other than the Assumed
Liabilities, including:

               (1) any Liability arising out of or relating to products of the Sellers to the extent
sold prior to the Closing Date other than to the extent assumed under Section 2.3(a)(2), (3)
and (4) above, with such Retained Liabilities therefore to include liability for warranty,
volume rebates, allowances, and similar matters with respect to operations prior to the
Closing Date to the extent the liability exceeds established reserves referenced in Sections
2.3(a)(4). Any such warranty work that exceeds established reserves will be performed by
the Buyer for the Sellers’ account at the Buyer’s incremental cost;

               (2) subject to Section 2.3(a)(2), (3) and (4), any Liability that (A) in the case of
matters covered by Sellers’ insurance, arises before or after the Closing Date and relates
to any breach that occurred prior to the Closing Date, or (B) relates to any breach that
occurred prior to the Closing Date;

               (3) any Liability for Taxes owed by Sellers, including (A) any Taxes arising as a
result of the Sellers’ operation of their businesses or ownership of the Acquired Assets
prior to the Effective Date, (B) any Taxes that will arise as a result of the sale of the
Acquired Assets pursuant to this Agreement and (C) any deferred Taxes owed by Sellers of any
nature, but excluding any such Taxes pro-rated by the parties pursuant to Section 2.12(a);

               (4) any Liability under any agreement, contract, lease, consensual obligation, promise
or undertaking not assumed by the Buyer under Section 2.3(a);

               (5) any Liability under the Employee Benefit Plans maintained by Sellers, and any
benefits accrued prior to the Closing Date relating to payroll, vacation (which the Sellers
shall pay in full at or prior to Closing), except in each case Accrued Expenses set forth on
Schedule 2.3(a)(2) assumed by Buyer and included in the computation of Acquired
Working Capital reflected on the Statement of Assets Acquired;

               (6) any Liability under any employment, severance, retention or termination agreement
with any employee of the Sellers or any of their Affiliates;

               (7) any Liability arising out of or relating to any pre-Closing employee grievance
whether or not the affected employees are hired by the Buyer;

               (8) any Liability of either Seller to any Affiliate of the Sellers;

               (9) any Liability to indemnify, reimburse or advance amounts to any officer, director,
employee or agent of the Sellers;

               (10) any Liability to distribute to any of the Sellers’ owners, or any of them, or
otherwise to apply all or any part of the consideration received hereunder;

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               (11) any Liability arising out of any legal proceeding pending as of the Closing Date,
and any Liability arising out of any legal proceeding commenced after the Closing Date and
arising out of or relating to any occurrence or event happening prior to the Closing Date,
except for Liabilities arising out of the acts or omissions of Buyer prior to the Effective
Date;

               (12) any Liability of the Sellers under this Agreement or any other document executed
in connection with the transactions contemplated by this Agreement;

               (13) the Indebtedness, except to the extent that the same is expressly assumed by the
Buyer in the Assumed Liabilities;

               (14) any Liability of the Sellers based upon the Sellers’ acts or omissions occurring
after the Closing Date, except for acts or omissions requested by Buyer after the Closing
Date or arising as a result of the acts or omissions of Buyer; and

               (15) liability under the Boyle Agreement.

          2.4 Purchase Price for the Acquired Assets. As the purchase price for the Acquired
Assets, the Buyer shall pay the Sellers the Purchase Price, as determined under Sections 2.4, 2.5,
2.6, 2.7, and 2.8 of this Agreement (sometimes referred to as the “Purchase Price”).
Subject to the following sentences of this Section 2.4, the purchase price for the Acquired Assets
(the “Purchase Price”) will be the sum of (a) the book value on the books of Sellers of the
Acquired Working Capital as of the Effective Date, which was $4,409,626, (b) the book value (net of
depreciation) on the books of the Sellers of the Acquired Fixed Assets (excluding the Investment
Real Estate), which was $1,878,000, (c) the amortized book value on the books of Sellers of the
Acquired Intangibles and Goodwill of the Sellers described in Schedule 2.4 to this
Agreement, to be executed and delivered at Closing, which was $135,666, and (d) an additional
amount of $7,500,000. The Purchase Price shall be adjusted up or down as specified in Section 2.6
of this Agreement and the Purchase Price will be potentially subject to post-Closing adjustment as
specified in Section 2.8 of this Agreement in order to arrive at the final Purchase Price. The
Purchase Price shall be payable as set forth in Sections 2.6 and 2.7 of this Agreement. The
Purchase Price will be reduced by $500,000 (but without duplication) if Boyle does not sign the New
Boyle Noncompetition Agreement.

          2.5 Preparation of Statement of Assets Acquired.

               (a) On or prior to the Closing Date the parties shall prepare a statement of assets acquired
and the Assumed Liabilities that would be reflected on a balance sheet (the “Statement of
Assets Acquired”) as of the Effective Date. As agreed by the Sellers and the Buyer, Grant
Thornton LLP (“Grant Thornton”) has performed agreed-upon procedures at the expense of the
Buyer in respect of the Trade Accounts Receivable, the inventory, and the Trade Accounts Payable
with a view toward assuring that the Statement of Assets Acquired is accurate as of a time that is
close to the Effective Date. The Statement of Assets Acquired to be used on the Closing Date shall
be prepared as of the Effective Date in a manner consistent with the Sellers’ June 30, 2005 audited
financial statements and shall be consistent with GAAP but applying the special principles
required for calculation of Acquired Working Capital as hereinafter set forth and the following
additional rules:

               (1) No Aged Receivables or delinquent rent on the Investment Real Property shall be
valued on the Statement of Assets Acquired, as the Aged Receivables and the delinquent rent
on the Investment Real Property are Excluded Assets.

               (2) Trade Accounts Receivable aged more than 90 but less than 12 months shall be valued
on the Statement of Assets Acquired at fifty percent (50%) of their face value (with this
reserve to be the only reserve with respect to Trade Accounts Receivable, and will not be
subject to post-closing audit adjustment).

               (3) Inventory shall be valued on the Statement of Assets Acquired net of an inventory
reserve of $497,000 (and this reserve amount will be the only reserve with respect to
inventory, and will not be subject to post-closing audit adjustment).

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               (4) Without duplicating the matters set forth in Section 2.5(a)(1) the 2.5(a)(3) above,
no Trade Accounts Receivable or inventory that previously has been written off shall be
valued on the Statement of Assets Acquired.

               (5) No transaction-related expenses or fees shall be reflected on the Statement of
Assets Acquired, it being agreed that each of the Sellers and the Buyer shall pay such
expenses and fees out of their separate moneys.

               (6) On the Statement of Assets Acquired, all ad valorem taxes payable on the Acquired
Assets shall be prorated as of the Effective Date as provided in Section 2.12(a).

               (b) As used in this Agreement, “Acquired Working Capital” shall mean the amount
determined at any date of calculation (1) by adding together (A) the Trade Accounts Receivable at
the date of calculation, net of any Trade Accounts Receivable that are Excluded Assets and any
associated reserve for bad or questionable accounts as described in Section 2.3(a) above, (B) the
inventory of Southern Saw at the date of calculation, net of any reserves for damaged, obsolete, or
slow-moving items as set forth in Section 2.3(a) above, but in no event having an aggregate net
value in excess of $3,060,000, and (C) the Prepaid Expenses, and (2) subtracting from the result
obtained in clause (1) above the sum of (A) the Trade Accounts Payable at the date of calculation,
and (B) the Accrued Expenses at the date of calculation.

          2.6 Stub Period Adjustments to the Estimated Purchase Price. Because the Closing
will take place on the Closing Date but shall be deemed to have occurred earlier on the Effective
Date, it shall be necessary to make cash adjustments to reflect certain cash transactions between
the Effective Date and the Closing Date. Sellers shall provide Buyers on the Closing Date a
written statement detailing all cash transactions of the Sellers during the Stub Period,
reconciling the same back to Cash In and Cash Out and the net of which must agree with the change
in the Sellers general ledger cash balances between the Effective Date and the Closing Date. Based
on such information and reconciliation, on the Closing Date the Buyer will pay to the Sellers the
amount by which the Cash Out is greater than the Cash In, and the Sellers will pay to the Buyer the
amount by which the Cash In is greater than Cash Out. Any such payment due from the Buyer to the
Sellers or from the Sellers to the Buyer shall be handled as upward or downward adjustment of the
amount paid in respect of the Purchase Price on the Closing Date.

          2.7 Method of Payment of the Purchase Price. The Estimated Purchase Price, as
adjusted pursuant to Section 2.6 above, shall be paid on the Closing Date as follows:

               (a) The Buyer shall pay to the Escrow Agent immediately available funds in an amount equal to
$500,000 (the “Escrow Amount”), with the Escrow Amount and the earnings thereon (the
“Escrowed Proceeds”) to be held and disposed of as provided in the Escrow Agreement in
substantially the form attached hereto as Exhibit F (the “Escrow Agreement”).
Except in cases of actual fraud of the Sellers, the Escrowed Proceeds would be the sole source
available to the Buyer for (1) downward adjustments to the Purchase Price under Section 2.8 below,
and (2) indemnification for breaches of representations, warranties, and covenants of the Sellers.
Unless sooner disbursed in accordance with the Escrow Agreement, the Escrowed Proceeds shall be
retained by the Escrow Agent until the date that is 18 months after the Closing Date as security
for the Sellers’ representations and warranties and performance of their obligations under this
Agreement. If there is any conflict between the terms of the Escrow Agreement and the description
of the Escrow Agreement appearing in this Section 2.7(a), the terms of the Escrow Agreement shall
control.

               (b) The Buyer shall pay to the Sellers by wire transfer of immediately available funds the
excess of the Purchase Price (as calculated pursuant to the preceding provisions of this Section 2)
over $500,000.

               (c) Within fifteen (15) days after the Closing Date, the Parties also shall compare a new
reconciliation of Cash In and Cash Out during the Stub Period as contemplated by Section 2.6 of
this Agreement. If such new reconciliation shall show an overpayment or an underpayment pursuant
to Section 2.6,

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then the responsible Party shall make the reconciling payment promptly.
Notwithstanding anything in this Agreement apparently to the contrary, any amount payable by the
Sellers to the Buyer pursuant to this Section 2.7(c) shall be payable from the Sellers’ separate
funds and not from the Escrowed Proceeds.

          2.8 Post-Closing Adjustment to the Purchase Price.

               (a) After the Closing, subject to the following provisions of this Section 2.8, the Purchase
Price as determined at the Effective Date by the Parties may be further adjusted based on the
Statement of Assets Acquired, as of the Effective Date, as audited by Grant Thornton at the expense
of the Buyer and completed within ninety days following the Closing Date. In connection with the
preparation of the audited Statement of Assets Acquired, Grant Thornton shall observe the
accounting rules and principles set forth in Section 2.5 above. In this regard, any post-Closing
adjustment or audit will not question or consider the fifty percent (50%) reserve percentage for
Trade Accounts Receivable of Section 2.5 or the $497,000 reserve for inventory specified in Section
2.5, and those reserves will apply for purposes of this Section 2.8. Unless disputed by Sellers,
once the Statement of Assets Acquired has been audited, the final Purchase Price shall be
determined. If the Sellers disagree with the final Purchase Price as so determined, then they may
within ten Business Days deliver a written objection thereto (a “Dispute Notice”), and the
Buyer and the Sellers shall jointly retain an accounting firm other than Grant Thornton to
calculate the final Purchase Price, whose determination of the same shall be final and binding on
the parties absent manifest error. In the event such an additional accounting firm is retained,
half of the cost of retaining such additional accounting firm shall be paid by the Sellers and the
other half shall be paid by the Buyer. Failure of the Sellers to provide a timely Dispute Notice
shall constitute waiver of the Sellers’ right to dispute such post-Closing adjustment to the
Estimated Purchase Price and shall allow the Buyer to make a drawing on the Escrowed Funds as
contemplated by the Escrow Agreement. The Purchase Price as determined under this Section 2.8
shall be the final Purchase Price; provided, however, that if no adjustments to the
Purchase Price determined as of the Closing Date in the manner contemplated by Section 2.6 or 2.7
shall have been made and no adjustment is made under this Section 2.8, then such Purchase Price
calculated under Section 2.4 will be the final Purchase Price.

               (b) For each dollar that the net value of the Acquired Assets shown on the final Statement of
Assets Acquired shall exceed the Purchase Price determined as of the Closing Date, the final
Purchase Price shall be increased by one dollar, and for each dollar that net value of the Acquired
Assets shown on the final Statement of Assets Acquired shall be less than the Purchase Price
determined as of the Closing Date, the Final Purchase Price shall be decreased by one dollar. Any
addition to the Purchase Price will be paid by the Buyer in ten Business Days and, subject to the
following sentence, any decrease to the Purchase Price will be paid promptly from the Escrowed
Proceeds. In the event of a decrease to the Purchase Price that results from: (i) an excess of
assets on the books of Southern Saw as of the Effective Date over the correct assets on the books
of Southern Saw as of the Effective Date (as determined under the procedure set forth in subsection
(a)), (ii) an excess of the correct Assumed Liabilities of Southern Saw as of the Effective Date
(as determined under the procedure set forth in subsection (a)) over the Assumed Liabilities as
reported on the books of Southern Saw on the Effective Date; or (iii) a combination of (i) and
(ii), then Sellers shall pay the excess assets amount, the deficient liability amount, or the
combination of the excess asset amount and the deficient liability amount to the Buyer directly
without payment from the Escrow Proceeds.

               (c) In addition to the adjustments under Section 2.8(a) and (b) above, the Parties also shall
compare a new reconciliation of Cash In and Cash Out during the Stub Period as contemplated by
Section 2.6(b) of this Agreement. If the Parties are unable to agree on such reconciliation of
Cash In and Cash Out during the Stub Period, then they shall refer the matter for resolution to the
additional accounting firm referenced in Section 2.8(a) above, whose reconciliation shall be final
and binding in the absence of manifest error. If such new reconciliation shall show an overpayment
or an underpayment pursuant to Section 2.6(b) at the Closing Date, then any amount payable by the
Buyer will be paid by the Buyer in ten Business Days and any amount payable by the Sellers will be
paid promptly from the Escrowed Proceeds.

          2.9 Deliveries at Closing. At the Closing, (a) the Sellers will deliver to the Buyer
the various certificates, instruments, and documents referred to in Section 7.1 below, (b) the
Buyer will deliver to the Sellers the various certificates, instruments, and documents referred to
in Section 7.2 below, (c) the Sellers will execute, acknowledge (if appropriate), and deliver to
the Buyer assignments (including real property and Intellectual

13

 

Property transfer documents) and such other instruments of sale, transfer, conveyance, and assignment as the Buyer and its counsel
reasonably may request, (d) the Buyer shall execute, acknowledge (if appropriate), and deliver to
the Sellers an assumption of Assumed Liabilities and such other instruments of assumption as the
Sellers and their counsel reasonably may request, and (e) the Buyer will deliver to the Escrow
Agent and the Sellers the consideration specified in Section 2.7 above.

          2.10 Allocation of the Purchase Price. The Parties agree to allocate the Purchase
Price in accordance with Exhibit G. After the Closing, the Parties shall make consistent
use of the allocation, fair market value and useful lives specified in Exhibit G for all
Tax purposes and in all filings, declarations and reports with the IRS in respect thereof,
including the reports required to be filed under Section 1060 of the Code. The Buyer shall prepare
and deliver to Sellers a draft IRS Form 8594 (prepared in accordance with the preceding sentences
of this Section) within 45 days after the Closing Date. If Sellers agree with the draft, the
parties shall file such form with the IRS as necessary. If a disagreement exists, the parties will
work out this disagreement in good faith. In any proceeding related to the determination of any
Tax, neither the Buyer nor the Sellers (or any owner of the Sellers, or either of them) shall
contend or represent that such allocation is not a correct allocation. If the Purchase Price shall
be adjusted after Closing pursuant to Section 2.8 above, such allocation shall be revised so as to
reflect the items that went into the adjustment.

          2.11 The Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Holland & Knight in Atlanta, Georgia, on the
date of this Agreement (the “Closing Date”), but in any event to be deemed effective as of
the Effective Date. Once the Closing shall have taken place on the Closing Date, the transfer of
the Acquired Assets to the Buyer shall be deemed to have occurred on the Effective Date.

          2.12 Prorations.

               (a) Property Taxes. General real estate taxes, personal property taxes, special
assessments, and other governmental taxes and charges relating to the Acquired Assets
(“Property Taxes”) and assessed for the year in which Closing occurs shall be prorated as
of the Effective Date (with maximum discount), except that Property Taxes with respect to the
Investment Real Property will be prorated as of the Closing Date. If Closing occurs before the
actual Property Taxes for the year are known, the proration shall be upon the basis of the Property
Taxes payable during the immediately preceding year; provided, however, that if Property
Taxes payable during the year in which Closing occurs thereafter are determined to be more or less
than the Property Taxes payable during the preceding year (after conclusion of any pertinent appeal
of assessed valuation, as reasonably determined by the Buyer and Sellers), the Sellers and the
Buyer promptly (but no later than 30 days after the date final invoices for such Property Taxes are
issued by the applicable taxing authorities, except in the case of an ongoing tax protest) shall
adjust the proration of Property Taxes, and the Sellers or the Buyer, as the case may be, shall pay
to the other any amount required as a result of such adjustment (as a Retained Liability in the
case of the Sellers).

               (b) Rents. Rents and depreciation on the Investment Real Property will be prorated as
of the Closing Date; provided, however, that October 2006 rents in respect of any
particular tract of Investment Real Property as to which there is any delinquency in rent as of the
Closing Date will be paid to Sellers as and when received.

               (c) Utilities. Solely with respect to those utilities that are paid for by Sellers
(rather than by a tenant of Sellers), the Sellers will notify the utility companies servicing the
Acquired Assets prior to the Closing that billing to Sellers for such utilities shall be
discontinued at the end of the day preceding the Closing Date, and the Buyer will arrange with such
utilities to have such billings for utility services charged to the Buyer from and after the
Closing Date. The Buyer shall be entitled to refunds for all deposits therefor to the extent that
the same are reflected in the Statement of Assets Acquired, but otherwise such deposit refunds
shall go to the Sellers. The Sellers Shall pay at Closing all charges with respect to such utilities for periods prior to
the Effective Date. If for any reason the Sellers’ utility charges to the Closing Date shall not
be paid in full by virtue of the foregoing provisions, then the Sellers shall pay such amounts
after Closing as a Retained Liability.

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               (d) Water. Solely with respect to those water meters that are paid for by Sellers
(rather than by a tenant of Sellers), if there is a water meter on the real property included among
the Acquired Assets, the Sellers shall have furnished at the Closing or will furnish as soon
thereafter as practicable, a reading to a date not more than 30 days prior to the Effective Date,
and the unfixed meter charge, the unfixed sewer rent and/or unfixed water charges, if any, based
thereon for the intervening period shall be apportioned on the basis of such last reading, subject
to adjustment upon receipt of the actual meter charge and sewer rent.

               (e) Pending and Certified Liens. Certified liens levied by any governmental authority
for which the work has been substantially completed and which are currently due and payable in full
shall be paid by the Sellers.

     3. REPRESENTATIONS AND WARRANTIES CONCERNING THE TRANSACTION.

          3.1 Representations and Warranties of the Sellers. The Sellers jointly and severally
represent and warrant to the Buyer that each of the Sellers has full power and authority to execute
and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes
the valid and legally binding joint and several obligation of the Sellers, enforceable in
accordance with its terms and conditions. The Sellers need not give any notice to, make any filing
with, or obtain any authorization, consent, or approval of any government or governmental agency in
order to consummate the transactions contemplated by this Agreement if the absence to obtain such
authorization, consent or approval would have a material adverse effect on the Acquired Assets or
the Business of the Sellers acquired by the Buyer under this Agreement.

          3.2 Representations and Warranties of the Buyer. The Buyer represents and warrants to
the Sellers that the statements contained in this Section 3.2 are correct and complete as of the
date of this Agreement and the Closing Date:

               (a) Organization of the Buyer. The Buyer is a corporation duly organized, validly
existing, and in good standing under the laws of Delaware.

               (b) Authorization of Transaction. Each of the Buyer and Kasco has full power and
authority (including full corporate power and authority) to execute and deliver this Agreement and
to perform its obligations hereunder. Without limiting the generality of the foregoing, the
transactions contemplated by this Agreement have been approved by the respective Boards of
Directors of the Buyer and Kasco. This Agreement constitutes the valid and legally binding
obligation of the Buyer, enforceable in accordance with its terms and conditions. Neither the
Buyer nor Kasco need give any notice to, make any filing with, or obtain any authorization,
consent, or approval of any government or governmental agency in order to consummate the
transactions contemplated by this Agreement.

               (c) Noncontravention. Neither the execution and the delivery of this Agreement, nor
the consummation of the transactions contemplated hereby, will (1) violate any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which the Buyer or Kasco is subject
or any provision of its charter or bylaws or (2) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice or consent under any agreement, contract,
lease, license, instrument, or other arrangement to which the Buyer or Kasco is a party or by which
it is bound or to which any of its assets is subject. There is no litigation pending against the
Buyer and relating to or affecting any of the transactions contemplated by this Agreement.

               (d) Brokers’ Fees. Neither the Buyer nor Kasco has Liability to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions contemplated by this
Agreement for which either of the Sellers could become liable or obligated.

     4. REPRESENTATIONS AND WARRANTIES CONCERNING THE SELLERS. The Sellers, jointly and
severally, represent and warrant to the Buyer that the statements contained in this Section 4 are
correct and complete as of the date of this Agreement, the Effective Date, and the Closing Date,
except as set forth in the

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disclosure letter delivered by the Sellers concurrently with the execution and delivery of this Agreement (the “Disclosure Letter”). Nothing in the
Disclosure Letter shall be deemed adequate to disclose an exception to a representation or warranty
made herein, however, unless the Disclosure Letter identifies the exception with reasonable
particularity to put the Buyer on notice thereof. The Disclosure Letter will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in this Section 4.

     4.1 Organization; Authorization.

               (a) Holdings is a corporation duly organized, validly existing and in good standing under the
laws of Georgia, and Southern Saw is a limited partnership validly existing and in good standing
under the laws of Georgia. Each Seller is duly authorized to conduct business and is in good
standing under the laws of each jurisdiction where such qualification is required. Each Seller has
full corporate or limited partnership, as applicable, power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and used by it. Section
4.1 of the Disclosure Letter lists the directors and officers of Holdings, who also control
Southern Saw as a result of Holdings’ position as sole general partner of Southern Saw. Each
Seller has delivered to the Buyer correct and complete copies of its organizational documents
(including the charter and bylaws of Holdings and the certificate and agreement of limited
partnership of Southern Saw), in each case as amended to date. The minute books (containing the
records of meetings of the shareholders, the board of directors of Holdings, and any committees of
the board of directors of Holdings), the stock certificate books of Holdings, and the stock record
books of Holdings are correct and complete, and no meetings of the stockholders, board of directors
or any committees of the board of directors have been held for which minutes have not been prepared
and are not contained in such minute books. Neither Seller is in default under or in violation of
any provision of its organizational documents.

               (b) Each Seller has full power and authority to execute and deliver this Agreement and to
perform its obligations hereunder. This Agreement constitutes the valid and legally binding joint
and several obligation of the Sellers, enforceable in accordance with its terms and conditions.
The Sellers need not give any notice to, make any filing with, or obtain any authorization,
consent, or approval of any government or governmental agency in order to consummate the
transactions contemplated by this Agreement if the absence to obtain such authorization, consent or
approval would have a material adverse effect on the Acquired Assets or the Business of the Sellers
acquired by the Buyer under this Agreement. The board of directors and the shareholders of Holdings
(in the case of the shareholders, based upon a favorable vote of the participants in the Holdings
ESOP, which owns 100% of the outstanding equity securities of Holdings), and Holdings, as the sole
general partner of Southern Saw, and Holdings and Davis Family Enterprises, LLC, constituting all
of the equity owners of Southern Saw, have approved this Agreement and the transactions
contemplated by this Agreement. The vote of participants in the Holdings ESOP was not conducted in
a manner inconsistent with any applicable statute, regulation, or provision of the documents
governing the Holdings ESOP.

          4.2 Capitalization.

               (a) Holdings. The entire authorized capital stock of Holdings consists of 7,513,051
shares of common stock, $0.10 par value, of which 7,513,051 are issued and outstanding and no
shares are held in treasury. All of the issued and outstanding common stock of Holdings have been
duly authorized, are validly issued, fully paid, and nonassessable, and are held of record by the
Holdings ESOP. There are no outstanding or authorized options, warrants, purchase rights,
subscription rights, conversion rights, exchange rights, or other contracts or commitments that
could require Holdings to issue, sell, or otherwise cause to become outstanding any of its capital
stock. None of the capital stock of Holdings was issued in violation of any applicable laws
(including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and
charges thereunder). There are no outstanding or authorized stock appreciation, phantom stock,
profit participation, or similar rights with respect to Holdings. There are no voting trusts,
proxies, or other agreements or understandings with respect to the voting of the capital stock of
Holdings.

               (b) Southern Saw. In its capacity as sole general partner of Southern Saw, Holdings
owns 75% of the outstanding equity interests of Southern Saw, all of which is owned by Holdings as
a general partner. Davis Family Enterprises, LLC owns as a limited partner the other 25% of the
outstanding equity

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interests of Southern Saw. All of the issued and outstanding equity interests
of Southern Saw have been duly authorized, are validly issued, fully paid, and (in the case of
limited partnership interest held by Davis Family Enterprises, LLC only) nonassessable. There are
no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion
rights, exchange rights, or other contracts or commitments that could require Southern Saw to
issue, sell, or otherwise cause to become outstanding any of its equity interests. No equity
interest of Southern Saw was issued in violation of any applicable laws (including rules,
regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges
thereunder). There are no outstanding or authorized equity appreciation, phantom equity, profit
participation, or similar rights with respect to Southern Saw. There are no voting trusts,
proxies, or other agreements or understandings with respect to the voting of the equity interests
of Southern Saw.

          4.3 Noncontravention. Neither the execution and the delivery of this Agreement, nor
the consummation of the transactions contemplated hereby, will (a) violate any provision of the
organizational documents of either Seller or, to the Knowledge of the Sellers, violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or
other restriction of any government, governmental agency, or court to which the either of the
Sellers is subject, or (b) to the Knowledge of the Sellers, conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice or consent under any agreement,
contract, lease, license, instrument, or other arrangement to which either Seller is a party or by
which it is bound or to which any of its assets is subject (or result in the imposition of any
Security Interest upon any of the assets of either Seller). The Sellers need not give any notice
to, make any filing with, or obtain any authorization, consent, or approval of any government or
governmental agency in order to consummate the transactions contemplated by this Agreement if the
absence to obtain such authorization, consent or approval would have a material adverse effect on
the Acquired Assets or the Business of the Sellers acquired by the Buyer under this Agreement.
Without limiting the generality of the foregoing, the required majority of participants in the
Holdings ESOP that owns 100% of the outstanding equity securities of Holdings have voted to approve
and consummate the transactions contemplated by this Agreement.

          4.4 Brokers’ Fees. Except for the arrangement with the Engaged Banker, neither Seller
has any Liability to pay any fees or commissions to any broker, finder, or agent with respect to
the transactions contemplated by this Agreement.

          4.5 Title to Assets. The Sellers have good and marketable title to, or a valid
leasehold interest in, the properties and assets used by them, located on their premises, or shown
on the Most Recent Balance Sheet or acquired after the date thereof, free and clear of all Security
Interests, except for properties and assets disposed of in the Ordinary Course of Business since
the date of the Most Recent Balance Sheet. Without limiting the generality of the foregoing, the
Sellers have good and marketable title to the Acquired Assets free and clear of all Security
Interests.

          4.6 Subsidiaries. Except for Holding’s ownership of Southern Saw, the Sellers do not
have any Subsidiaries.

          4.7 Financial Statements; Trade Accounts Receivable; Inventory.

               Attached hereto as Exhibit H are the following consolidated financial statements of
Southern Saw (the “Financial Statements”): (a) consolidated balance sheet and statements of
income, changes in stockholders’ equity, and cash flow as of and for the fiscal year ended June 30,
2006 (the “Most Recent Fiscal Year End”) for Southern Saw, as audited by the Sellers’
Accountants, (b) audited consolidated balance sheets and statements of income, changes in
stockholders’ equity, and cash flow as of and for the fiscal years ended June 30, 2005 and June 30,
2004 for the Sellers, as audited by the Sellers’ Accountants, and (c) unaudited consolidated
balance sheet and statements of income, changes in stockholders’ equity, and cash flow (the
“Most Recent Financial Statements”) as of and for the two months ended August 31, 2006 (the
“Most Recent Fiscal Month End”) for Southern Saw. The Financial Statements have been
prepared in accordance with GAAP applied on a consistent basis throughout the periods covered
except as otherwise noted in such Financial Statements. The Trade Accounts Receivable have arisen
in the normal course of business and represent or will represent valid obligations arising from
sales actually made or services actually performed by Sellers in the Ordinary Course of Business,
and, to

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Sellers’ Knowledge, the reserve established in Section 2.5 is adequate for an ongoing
business. The inventory will be usable, and, to Sellers’ Knowledge, the reserve established in
Section 2.5 is adequate for an ongoing business.

          4.8 SEC Filings. To the Knowledge of the Sellers, neither Seller is required to file
any registration statements, prospectuses, reports, schedules, forms, statements or other documents
with the Securities and Exchange Commission.

          4.9 Events Subsequent to Most Recent Fiscal Year End. To the Knowledge of the
Sellers, since the Most Recent Fiscal Year End, there has not been any material adverse change in
the business, assets, financial condition, operations, results of operations, employee relations,
supplier relations, or customer relations of the Sellers, and no event has occurred that may result
in such a change. Without limiting the generality of the foregoing, since that date the Sellers
have conducted their business in the Ordinary Course of Business, and, except as set forth in
Section 4.9 of the Disclosure Letter:

               (a) the Sellers have not sold, leased, transferred, or assigned any of their assets, tangible
or intangible, other than for a fair consideration in the Ordinary Course of Business;

               (b) neither Seller has made any capital investment in, any loan to, or any acquisition of the
securities or assets of (including by merger or consolidation), any other Person (or series of
related capital investments, loans, and acquisitions) either involving more than $100,000 or
outside the Ordinary Course of Business;

               (c) neither Seller has issued any note, bond, or other debt security or created, incurred,
assumed, or guaranteed any Indebtedness either involving more than $50,000 singly or $100,000 in
the aggregate;

               (d) neither Seller has delayed or postponed the payment of accounts payable and other
Liabilities or the accrual of any expenses outside the Ordinary Course of Business, or accelerated
or accepted the prepayment of any notes or accounts receivable or accelerated billings or the
recognition of revenue outside the Ordinary Course of Business;

               (e) neither Seller has cancelled, compromised, waived, or released any right or claim (or
series of related rights and claims) outside the Ordinary Course of Business;

               (f) except as disclosed to the Buyer in Section 4.9 of the Disclosure Letter, there has been
no change made or authorized in the organizational documents of either Seller;

               (g) except in connection with the ordinary operation of the Holdings ESOP in accordance with
past practices, neither Seller has issued, sold, or otherwise disposed of any of its capital stock
or other equity interests, or granted any options, warrants, or other rights to purchase or obtain
(including upon conversion, exchange, or exercise) any of its capital stock or other equity
interests;

               (h) neither Seller has declared, set aside, or paid any dividend or made any distribution with
respect to its capital stock or other equity interests (whether in cash or in kind) or redeemed,
purchased, or otherwise acquired any of its capital stock or other equity interests;

               (i) neither Seller has experienced any material damage, destruction, or loss (whether or not
covered by insurance) to its property;

               (j) neither Seller has granted any increase in the base compensation of, or paid any bonuses
to, any of its directors, officers, or employees outside the Ordinary Course of Business or in
amounts at variance with such Seller’s past practice;

               (k) neither Seller has made any other change in employment terms or deferred any wage or
salary increase for any of its directors, officers, and employees outside the Ordinary Course of
Business;

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               (l) there has not been any material change in accounting or internal control methods,
practices, policies or procedures followed by the Sellers (other than as required by GAAP), any
increase in reserves or any revaluation of any of their assets from those in effect during the past
fiscal year;

               (m) to the Knowledge of the Sellers there has not been any other occurrence, event, incident,
action, failure to act, or transaction outside the Ordinary Course of Business involving either of
the Sellers; and

               (n) neither of the Sellers has committed to take any of the actions contemplated by (a)
through (m) above.

          4.10 Undisclosed Liabilities. To the extent material, neither Seller has any
Liability (and, to the Knowledge of the Sellers, there is no Basis for any present or future
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against
either Seller giving rise to any Liability), except for (a) Liabilities set forth on the face of
the Most Recent Balance Sheet, (b) Liabilities listed in Section 4.10 of the Disclosure Letter, and
(c) Liabilities that have arisen after the date of the Most Recent Balance Sheet in the Ordinary
Course of Business (none of which results from, arises out of, relates to, is in the nature of, or
was caused by any material breach of contract, breach of warranty, tort, infringement, or violation
of law).

          4.11 Legal Compliance; Permits and Licenses.

               (a) Legal Compliance. To the Knowledge of the Sellers, (1) the Sellers and their
predecessors and Affiliates have complied with all applicable laws (including rules, regulations,
codes, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state,
local, and foreign governments (and all agencies thereof), (2) Sellers’ operations and practices
are in compliance with environmental, governmental, and other legal requirements and regulations,
including those of the Environmental Protection Agency and the Occupational Health and Safety
Administration, and (3) no action, suit, proceeding, hearing, investigation, charge, complaint,
claim, demand, or notice has been filed or commenced against, and no notice, correspondence,
inquiry or other communication has been received by, any of them alleging any failure so to comply.

               (b) Permits. To the Knowledge of the Sellers, the Sellers have all permits, licenses,
orders, franchises and approvals of all federal, state, local and foreign governments (and all
agencies thereof), including appropriate zoning and environmental permits necessary for the lawful
operation of the business of the Sellers as currently conducted. All such permits, licenses,
orders, franchises and approvals are in full force and effect, and no suspension or cancellation of
any of such items are pending or, to the Knowledge of the Sellers, threatened.

          4.12 Tax Matters. Except as otherwise set forth in Section 4.12 of the Disclosure
Letter:

               (a) To the Knowledge of the Sellers, the Sellers have filed or caused to be filed all Tax
Returns and all reports with respect to Taxes that are or were required to be filed by the Sellers.
All Tax Returns and reports filed by the Sellers were true, correct and complete in all material
respects and all Taxes owed by Sellers, regardless of whether shown on any return of Sellers, have
been paid in full. There is no Security Interest on any of the Acquired Assets that arose in
connection with any failure (or alleged failure) to pay any Tax, and the Sellers have no Knowledge
of any Basis for assertion of any claims attributable to Taxes which, if adversely determined,
would result in any such Security Interest.

               (b) To the extent material, the Sellers have withheld and paid all Taxes required to have been
withheld and paid in connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other third party.

               (c) There are no disputes or claims concerning any Tax Liabilities of the Sellers either (1)
claimed or raised by any authority in writing delivered to the Sellers or (2) as to which the
Sellers have Knowledge based upon personal contact with any agent of such authority. The Sellers
have delivered or made

19

 

available to the Buyer correct and complete copies of all federal and state
income Tax Returns, federal and state examination reports, and federal and state statements of
deficiencies assessed against or agreed to by the Sellers for all periods beginning after June 30,
2003.

               (d) Neither Seller has waived any statute of limitations in respect of Taxes or agreed to any
extension of time with respect to a Tax assessment or deficiency.

               (e) Southern Saw is not an S corporation as defined in Code Section 1361. Holdings is an S
corporation as defined in Code Section 1361.

               (f) Section 4.12(f) of the Disclosure Letter lists all the states and localities with respect
to which either Seller believes that it is required to file any corporate, income, franchise or
sales Tax Returns. Except as otherwise set forth in Section 4.12(f) of the Disclosure Letter, the
Sellers have properly filed Tax Returns with and paid and discharged any liabilities for Taxes in
those states or localities.

          4.13 Real Property. Section 4.13 of the Disclosure Letter lists and describes briefly
all real property owned by either of the Sellers (each an “Owned Property”) and all real
property leased or subleased to either of the Sellers (each a “Leased Property”) (the Owned
Property and the Leased Property are sometimes referred to herein individually as a
“Property” and collectively as the “Properties”). The Properties include both the
Acquired Fixed Assets and the Investment Real Estate. The Sellers have delivered to the Buyer
correct and complete copies of the leases and subleases listed in Section 4.13 of the Disclosure
Letter (as amended to date) (each a “Lease”). With respect to each Property and, with
respect to each Leased Property, the corresponding Lease:

               (a) The only Person in occupancy of the Property is either or both of the Sellers, or, in the
case of certain parcels of the Investment Property, a month-to-month tenant not Affiliated with the
Sellers who leases the Property from either or both of the Sellers. Except for persons who park on
any portion of the Investment Real Property used as a parking lot, there is no other occupant of
the Property or any other Person having any right or claim to possession or use of the Property
after the Closing Date, and subject to such month-to-month leases to tenants, possession of the
Property will be delivered to the Buyer free of rights or claims of any tenants, occupants or
parties in possession, subject to the Leases. The Property is not homestead property.

               (b) To the Knowledge of the Sellers, the Property used by the Sellers in their business is
zoned and designated for land use purposes to permit the operations of the Sellers that are being
conducted on the Property. To the Knowledge of the Sellers, there are no planned or threatened
changes to the current zoning or land use designations of the Property.

               (c) To the Knowledge of the Sellers, no condition exists with respect to the Property or with
respect to the improvements thereon that violates any city, county, state or federal law,
ordinance, regulation, ruling or code, including without limitation any Environmental Laws.

               (d) The Property is not subject to any outstanding lease (other than the Leases), agreement of
sale (except for this Agreement), option, right of first refusal, “back-up contracts,” or other
right of a third party to acquire any interest therein.

               (e) Except as otherwise stated in Section 4.13(e) of the Disclosure Letter, the buildings,
structures and other improvements constituting parts of the Property (collectively the
“Structures”) are satisfactory for the operation of the Business.

               (f) To the Knowledge of the Sellers, there is no pending or threatened eminent domain,
foreclosure, bankruptcy or insolvency claim, regulatory enforcement action or other litigation
matter affecting or relating to the Property.

               (g) The Sellers have paid all assessments, bonds, and special assessments now or at any time
or times prior to Closing, constituting a lien or Security Interest against the Property or a part
thereof

20

 

related to off-site improvements, streets, roadways, or utility services and installments,
that, as of the Effective Date, exists as a certified and confirmed lien against the Property.

               (h) To the Knowledge of the Sellers, all utilities necessary to operate the business of the
Sellers as currently operated (i.e. electric, water, telephone, internet, etc.) are in place at
each parcel of the Property on which the Business is conducted presently having a Structure located
thereon.

               (i) With respect to each Owned Property, Southern Saw has fee simple title, free from all
Security Interests other than the following: (i) current state and county ad valorem real property
taxes not due and payable on the date of the Effective Date; (ii) easements for the maintenance of
public utilities that service only the Premises and that do not adversely affect the Sellers’
current use of the Owned Property; (iii) those restrictions contained in the vesting deeds to
Sellers, if any; (iv) those matters described in Section 4.13(i) of the Disclosure Letter and (v)
such other matters, if any, as may be subsequently approved by Buyer (hereinafter called the
“Permitted Exceptions”).

               (j) Section 4.13(j) of the Disclosure Letter sets forth: (1) the taxing authority(ies) for the
Owned Property; (2) the tax parcel identification number(s) for the Owned Property. The Sellers
have delivered to the Buyer true, correct and complete copies of all of the most recent bills
relating to real property taxes due and payable on the Owned Property.

               (k) Section 4.13(k) of the Disclosure Letter sets forth information known to Sellers about
tenants who lease property from the Sellers and are delinquent in their rental payments.

          4.14 Intellectual Property.

               (a) Section 4.14(a) of the Disclosure Letter identifies (1) each item of Intellectual Property
owned by the Sellers, (2) each license, agreement, or other permission which either Seller have
granted to any third party with respect to any of its Intellectual Property (together with any
exceptions) and (3) each item of Intellectual Property that any third party owns and that either
Seller uses pursuant to license, sublicense, agreement, or permission. The Sellers have delivered
to the Buyer correct and complete copies of all such Intellectual Property, licenses, sublicenses,
agreements or permissions. The Sellers own or have the right to use pursuant to license,
sublicense, agreement, or permission all Intellectual Property necessary for the operation of their
businesses as currently conducted.

               (b) Except as set forth in Section 4.14(b) of the Disclosure Letter, to the Knowledge of the
Sellers, the Sellers, or either of them, owns and possesses a valid and enforceable right to use
the Intellectual Property listed on Section 4.14(a), have not interfered with, infringed upon, misappropriated, or
otherwise come into conflict with any Intellectual Property rights of third parties, and neither
Seller has ever received any charge, complaint, claim, demand, or notice alleging any such
interference, infringement, misappropriation, or violation. To the Knowledge of the Sellers, no
third party has interfered with, infringed upon, misappropriated, or otherwise come into conflict
with any Intellectual Property rights of the Sellers. To the Knowledge of the Sellers, no
Intellectual Property owned or used by either Seller will interfere with, infringe upon,
misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third
parties as a result of the continued operation of its business as currently conducted.

     4.15 Fixed Assets. The Sellers own or lease all buildings and tangible personal
property necessary for the conduct of their business as currently conducted. All such material
fixed assets required to operate the Business in the manner operated by the Sellers, considered as
a whole, is in working order, and the Sellers will maintain all such material fixed assets in such
condition through the Closing Date.

          4.16 Inventory. The inventory of the Sellers consists of supplies, purchased parts
and items, raw materials, work in process and finished goods.

          4.17 Contracts.

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               (a) Section 4.17 of the Disclosure Letter lists the following contracts and other agreements
to which either of the Sellers is a party:

               (1) any agreement concerning a partnership or joint venture or providing for payments
to or by any Person based on or determined by reference to sales, purchases or profits,
other than direct payments for products and/or services of Southern Saw;

               (2) any agreement (or group of related agreements) under which it has created,
incurred, assumed, or guaranteed any Indebtedness, or any agreement (or group of related
agreements) under which it has imposed a Security Interest on any of its assets, tangible or
intangible, or any currency or interest rate swap, collar or hedge agreement;

               (3) any agreement concerning confidentiality or noncompetition or which contains any
covenant that purports to restrict the business activity of either of the Sellers or limits
its ability to engage in any line of business;

               (4) any agreement with any of their Affiliates;

               (5) any collective bargaining agreement;

               (6) any agreement pursuant to a Set-Aside Program;

               (7) any agreement with (A) any domestic or foreign national, state, multi-state or
municipal or other local government, any subdivision, agency, commission or authority
thereof, including any quasi-governmental or private body exercising any regulatory or
taxing authority thereunder or any judicial authority (or any department, bureau or division
thereof), (B) any prime contractor of an entity described in clause (A) above in its
capacity as a prime contractor, or (C) any subcontractor with respect to any contract of a
type described in clauses (A) or (B) above; and

               (8) any other agreement (or group of related agreements) other than for the sale of
goods and/or services the performance of which involves consideration in excess of $100,000.

               (b) The Sellers have delivered to the Buyer a correct and complete copy of each written
agreement listed in Section 4.17 of the Disclosure Letter (as amended to date) and a written
summary setting forth the terms and conditions of each oral agreement referred to in Section 4.17
of the Disclosure Letter.

               (c) As to each contract listed or described in Section 4.17 of the Disclosure Letter that is
both an Assumed Seller Contract and a contract with a customer of Sellers under which the Sellers
provide products or services to such customer (each of such contracts, an “Assumed Customer
Contract,”), the Sellers provide the following special representations and warranties:

               (1) Except for Southern Saw’s contract with DECA, the Sellers have no Customer
Contracts that are Fixed Price Contracts. As used herein, a “Fixed Price Contract”
shall mean a Long Term Contract that provides for fixed prices or fixed prices that vary on
the basis of an index such as the consumer price index rather than in the discretion of the
Sellers.

               (2) Except for Southern Saw’s contract with DECA, the Sellers have no Long Term
Contracts. As used herein, a “Long Term Contract” shall mean any contract of
Sellers having a remaining duration of one year or more at the Effective Date and not
cancelable at will and without penalty by the Sellers on no more than 90 days notice to the
other contracting party.

               (3) Sellers’ other Customer Contracts are either oral contracts with no specified
prices, purchase orders for particular quantities immediately deliverable at specified
prices, or written agreements that may contain a price list that is variable upon no more
than 90 days notice to the other contracting party.

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               (d) As to each written Assumed Seller Contract that is not an Assumed Customer Contract, the
Buyer has been provided access to a true and complete copy of such Assumed Seller Contract.

               (e) To the Knowledge of the Sellers, with respect to each agreement listed in Section 4.17 of
the Disclosure Letter: (1) the agreement is legal, valid, binding, enforceable, and in full force
and effect; (2) the agreement will continue to be legal, valid, binding, enforceable, and in full
force and effect on identical terms and conditions following the consummation of the transactions
contemplated hereby; (3) no party is in breach or default, and no event has occurred which with
notice or lapse of time would constitute a breach or default, or permit termination, modification,
or acceleration, under the agreement; and (4) no party has repudiated any provision of the
agreement.

               (f) Each distributor agreement is: (i) a nonexclusive distributorship; and (ii) terminable at
the option of the Sellers on not more than ninety (90) days notice.

          4.18 Notes and Accounts Receivable. All notes and accounts receivable of the Sellers
are reflected properly on its books and records, are valid receivables subject to no setoffs or
counterclaims, and represent or will represent valid obligations arising from sales actually made
or services actually performed in the Ordinary Course of Business. Section 4.18 of the Disclosure
Letter sets forth the terms of any cash discount or customer rebate programs.

          4.19 Powers of Attorney. There are no outstanding powers of attorney executed on
behalf of the Sellers, or either of them.

          4.20 Insurance.

               (a) Section 4.20 of the Disclosure Letter identifies each insurance policy (including policies
providing property, casualty, liability, directors and officers liability, employment practices
liability, fiduciary liability, employee dishonesty, environmental liability and workers’
compensation coverage and bond and surety arrangements) to which either of the Sellers is a party,
a named insured, or otherwise the beneficiary of coverage. Section 4.20 of the Disclosure Letter
sets forth, with respect to each policy: (1) the name of the insurer, the name of the policyholder,
and the name of each covered insured; (2) the scope and amount of coverage; (3) whether the policy
was provided on a primary, excess, umbrella or other basis; (4) an indication whether such policy
is on a “claims made” or “occurrence” basis; and (5) a description of any retroactive premium
adjustments or other loss-sharing or experience-based Liability arrangements. Section 4.20 of the
Disclosure Letter also describes any self-insurance arrangements affecting the Sellers, including any self insured retention, captive
insurance programs or other self insured risks, or any reserves established thereunder.

               (b) The Sellers have made a good faith effort to provide the Buyer with a complete and correct
copy of each insurance policy referenced in Section 4.20 of the Disclosure Letter and will continue
to do so after the Closing.

               (b) All of the insurance policies referenced in Section 4.20 of the Disclosure Letter are
current through the Closing Date.

          4.21 Litigation. Section 4.21 of the Disclosure Letter sets forth each instance in
which either Seller (a) is subject to any outstanding injunction, judgment, order, decree, ruling,
or charge or (b) is a party or, to the Knowledge of the Sellers, is threatened to be made a party
to any action, suit, proceeding, hearing, or investigation of, in, or before any court or
quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or
before any arbitrator. To the Knowledge of the Sellers, none of the actions, suits, proceedings,
hearings, and investigations set forth in Section 4.21 of the Disclosure Letter could result in any
material adverse change in the business, financial condition, operations, results of operations, or
future prospects of the Sellers. No executive or key employee of the Sellers is a party to any
action, suit, proceeding, hearing, or investigation of, in, or before any arbitrator that would
adversely affect his or her ability to perform his or her employment duties. The Sellers have no
reason to believe that any such action, suit, proceeding, hearing, or investigation may be brought
or threatened against the Sellers, or either of them.

23

 

          4.22 Product Warranty. Section 4.22 of the Disclosure Letter includes copies of the
standard terms and conditions of sale or lease for the Sellers (containing applicable guaranty,
warranty, and indemnity provisions). No product manufactured, sold, leased, or delivered by the
Sellers is subject to any guaranty, warranty, or other indemnity beyond the applicable standard
terms and conditions of sale or lease set forth in Section 4.22 of the Disclosure Letter.

          4.23 Product Liability. Except as set forth in Section 4.23 of the Disclosure Letter,
to the Knowledge of the Sellers, the Sellers have no Liability (and to the Knowledge of the
Sellers, there is no Basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against either of the Sellers giving rise to any
Liability) arising out of any injury to individuals or property as a result of the ownership,
possession, or use of any product manufactured, sold, leased, or delivered by the Sellers.

          4.24 Employees.

               (a) Section 4.24 of the Disclosure Letter contains a list of the names and compensation rates
and bonus commitments for all employees of the Sellers. All of such employees are employed by
Holdings and none of such employees is employed by Southern Saw. To the Knowledge of the Sellers,
as of the date of this Agreement, no executive, key employee, or group of employees has any plans
to terminate employment with the Sellers. The Sellers have not promised or represented to any
employee or otherwise entered into an agreement with any employee (whether written, verbal or
otherwise), to the effect that such employee’s benefits or compensation (base salary, bonus, or
equity compensation) shall in any way increase subsequent to the Closing Date, except to the extent
of the Buyer’s obligation for certain severance for employees it terminates (other than For Cause)
after Closing as set forth in Section 6.1(d) of this Agreement. To the Knowledge of the Sellers,
no executive or key employee of the Sellers is a party to, or is otherwise bound by, any agreement
that in any way adversely affects or will affect the performance of his or her employment duties,
his or her ability to assign to the Sellers any rights to any invention, improvement, discovery or
information relating to the business of the Sellers or their ability to conduct their business.

               (b) The consummation of the transactions contemplated by this Agreement will not (1) entitle
any current or former employee, director, consultant or agent of the Sellers to severance pay, or
(2) with the exception of the possible payment to Boyle under the Boyle Agreement, accelerate the
time of payment or vesting, or increase the amount of any compensation due to, or in respect of,
any current or former employee, director, consultant or agent of the Sellers, or either of them. Notwithstanding the foregoing,
the Sellers will settle in cash at or prior to Closing all vacation that any of its employees may
have accrued through the date of Closing.

               (c) Neither Seller is a party to or bound by any collective bargaining agreement, nor, to the
Knowledge of the Sellers, has either Seller experienced any strikes, grievances, claims of unfair
labor practices, or other collective bargaining disputes. To the Knowledge of the Sellers, the
Sellers have not committed any material unfair labor practice, and the Sellers have complied with
all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders,
decrees, rulings, and charges thereunder) relating to employment practices, terms and conditions of
employment, equal employment opportunity, nondiscrimination, immigration, wages, hours, benefits,
collective bargaining and plant closing. The Sellers have no Knowledge of any organizational
effort currently being made or threatened by or on behalf of any labor union with respect to
employees of the Sellers.

               (d) The Sellers’ workers’ compensation, general liability, group life and health plans are
fully funded and/or expensed for all past and current experience and occurrences through Closing.
Sellers shall retain all such liabilities as Retained Liabilities and shall satisfy them in the
normal course of business.

          4.25 Employee Benefits.

               (a) Section 4.25 of the Disclosure Letter lists each Employee Benefit Plan that either Seller
maintains or to which either Seller contributes or has any obligation to contribute. Except for
the Sellers’ Kaiser medical insurance plan (excluding the related MetLife dental plan and the
related life insurance plan

24

 

and post-retirement medical benefits) and excluding post-retirement
medical benefits, which the Buyer will assume and continue, the Buyer will not assume any Employee
Benefit Plans.

               (b) Each Employee Pension Benefit Plan that is intended to be a “qualified plan” under Code
Section 401(a) has been determined by the Internal Revenue Service to be so qualified, and, to the
Knowledge of the Sellers, nothing has occurred since the date of the most recent such determination
(other than the effective date of certain amendments to the Code for which the remedial amendment
period has not yet expired) that would reasonably be expected to adversely affect the qualified
status of such Employee Pension Benefit Plan.

               (c) For each Employee Pension Benefit Plan, the Sellers have delivered to the Buyer correct
and complete copies of the plan documents and summary plan descriptions, the three most recently
filed Form 5500 Annual Reports, all related trust agreements, insurance contracts, and other
funding agreements and third party administrative agreements which implement each such Employee
Pension Benefit Plan.

          4.26 Guaranties. Neither Seller is a guarantor or otherwise is liable for any
Liability of any other Person (other than the other Seller).

          4.27 Environment. Except as otherwise set forth in Section 4.27 of the Disclosure
Letter, to the Knowledge of the Sellers:

               (a) The Sellers and their predecessors and Affiliates, have complied and are in full
compliance with all Environmental Laws, and no action, suit, violation, proceeding, hearing,
investigation, charge, complaint, claim, demand, or notice has been filed, commenced or is being
threatened against any of them alleging any failure so to comply.

               (b) Without limiting the generality of the preceding sentence, to their Knowledge, the Sellers
and their predecessors and Affiliates have obtained and been in compliance with all of the terms
and conditions of all permits, licenses, and other authorizations which are required under, and
have complied in all respects with all other limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules, and timetables which are contained in, all
Environmental Laws.

               (c) The Sellers and their predecessors or Affiliates have not manufactured, sold, marketed or
distributed products containing asbestos, and to their Knowledge, no such entity has any Liability
with respect to the presence of asbestos in or on any product.

               (d) None of the Sellers’ current or past operations, or any byproduct thereof, and none of the
currently or formerly owned property or assets of the Sellers are related to or subject to any
investigation or evaluation by any governmental entity, as to whether any remedial action is needed
to respond to a release or threatened release of Hazardous Substances.

               (e) The Sellers have filed all notices required under any Environmental Laws indicating a past
or present use, management, handling, transport, treatment, generation, storage, or release of
Hazardous Substances.

               (f) There is not now at, on, in or under the property or assets, and there was not at, on, in
or under any real property previously owned, leased, operated or otherwise used by either Seller:
(1) any treatment, recycling, storage or disposal of any Hazardous Substances; (2) any underground
or above ground storage tank, service impoundment, lagoon, or other containment facility (past or
present) for the temporary or permanent storage, treatment, or disposal of Hazardous Substances;
(3) any landfill or solid waste disposal area containing Hazardous Substances; (4) any
polychlorinated biphenyls; or (5) any release of Hazardous Substances.

               (g) Neither Seller is subject to any outstanding order from, or contractual obligation with,
any governmental body or other person in respect of which such Seller may be required to incur any
Liabilities, including any with respect to any remedial action, arising from the release or
threatened release of any Hazardous Substances, and neither Seller has entered into any contractual
or other obligation with any governmental

25

 

body or any other Person pursuant to which such Seller
has assumed responsibility for, either directly or indirectly, the remediation of any condition
arising from or relating to the release or threatened release of Hazardous Substances.

               (h) None of the Properties, and no properties previously owned or leased by either of the
Sellers, has transported or arranged for transportation, directly or indirectly, of any Hazardous
Substances to any other location that is listed or proposed for listing under the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”), or any other similar
state list, or the subject of a federal, state, or local enforcement action or investigation or
remedial action. The names of the entities that have been retained, currently or in the past, by
either of the Sellers in handling, transporting, and disposal of Hazardous Substances are listed in
Section 4.27(h) of the Disclosure Letter.

               (i) There are no Environmental Laws applicable to the Sellers for the Properties that would
require the Sellers or any other Person to provide notice to, to take actions to satisfy or to
obtain the approval of, any governmental entity as a condition to the consummation of the
transactions contemplated by this Agreement, except for approvals related to the transfer or
assignments of permits.

               (j) The Sellers have disclosed and made available to the Buyer all information, including
without limitation, all studies, analysis and test results, in their possession, custody, or
control relating to (1) environmental conditions on, under or about the Properties and (2)
Hazardous Substances used, managed, handled, transported, treated, generated, stored, at any time
by the Sellers or any other Person on the Properties or any other adjacent properties, or otherwise
in connection with the use and operation of the Properties.

          4.28 Certain Business Relationships with the Sellers. Except for cross ownership of
the Sellers and except as otherwise set forth in Section 4.28 of the Disclosure Letter:

               (a) no Affiliate of Sellers has, or since July 1, 2004 has had, any interest in any asset,
tangible or intangible, used in the business of the Sellers or any interest in any business
arrangement or relationship with the Sellers;

               (b) no Affiliate of Sellers owns, or since July 1, 2004 has owned, an equity interest or any
other financial or profit interest in a Person that has (1) had business dealings or a financial
interest in any transaction with either of the Sellers, or (2) engaged in competition with either
of the Sellers with respect to any products or services of the Sellers, except, in each such case,
for the ownership of less than 1% of the outstanding stock of any publicly-traded corporation.

          4.29 Customers and Suppliers. The top 20 customers and suppliers of the Sellers,
taken as a whole, by dollar volume of business for the fiscal year ended June 30, 2006, have not
materially reduced their business with the Sellers or advised the Sellers that they intend to cease
doing business or materially reduce their business with the Sellers.

     5. PRE-CLOSING COVENANTS.

          5.1 Due Diligence Investigation and Access. In accordance with the letter agreement
dated August 1, 2006 between the Sellers and Kasco (the “Offer Letter”), the Buyer has been
conducting a due diligence investigation of the Acquired Assets, the Assumed Liabilities, and the
Business. Although not specified in the Offer Letter agreement, such review has included
subsurface testing as part of the Phase II environmental survey performed at the Buyer’s expense.
In addition, the Buyer commissioned Grant Thornton to conduct the pre-closing agreed-upon
procedures contemplated by Section 2.5(a) above.

          5.2 Operation of the Business of the Sellers. Between the date of the Effective Date
and the Closing Date, the Sellers have:

26

 

               (a) conducted their business only in the Ordinary Course of Business and confer with the Buyer
prior to implementing operational decisions of a material nature, provided that such operations
will not have prohibited funding any Employee Pension Benefit Plan in any manner;

               (b) except as otherwise directed by the Buyer in writing, and without making any commitment on
the Buyer’s behalf, used the reasonable best efforts to preserve intact their current business
organization, kept available the services of its officers, employees and agents and maintained its
relations and good will with suppliers, customers, landlords, creditors, employees, agents and
others having business relationships with it;

               (c) maintained the Acquired Assets in working order;

               (d) kept in full force and effect, without amendment, all material rights relating to the
Sellers’ business;

               (e) continued in full force and effect the insurance coverage under the policies referenced in
Section 4.20 of this Agreement or substantially equivalent policies;

               (f) cooperated with the Buyer and assisted the Buyer in identifying the governmental
authorizations required by the Buyer to operate the business from and after the Closing Date upon
either transferring existing governmental authorizations of the Sellers to the Buyer, where
permissible, or obtaining new governmental authorizations for the Buyer; and

               (g) maintained all books and records of the Sellers relating to the Sellers’ business in the
Ordinary Course of Business.

          5.3 Negative Covenant of the Sellers. Except as otherwise expressly permitted herein,
between the date of this Agreement and the Closing Date, the Sellers shall not, without the prior
written consent of the Buyer, (a) take any affirmative action, or fail to take any reasonable
action within its control, as a result of which any of the changes or events listed in Section 4.9
or any material adverse change in the assets, liabilities, or business of Sellers would occur; (b)
make any modification to any material Seller Contract or governmental authorization; (c) allow the
levels of raw materials, supplies or other materials included in the Inventories to vary materially
from the levels customarily maintained; or (d) enter into any compromise or settlement of any
litigation, proceeding or governmental investigation relating to the Acquired Assets, the business
of the Sellers, or the Assumed Liabilities.

          5.4 Required Approvals. As promptly as practicable after the date of this Agreement,
the Sellers and the Buyer shall make all filings required by law to be made in order to consummate
the transactions contemplated by this Agreement. Each of the Buyer, on the one hand, and the
Sellers, on the other hand, shall cooperate with the other Party and its employees, agents,
brokers, employees, attorneys, accountants, bankers, environmental consultants and other
representatives (collectively, “Representatives”) with respect to all filings that a Party shall be
required to make in connection with the transactions contemplated by this Agreement. Each of the
Buyer, on the one hand, and the Sellers, on the other hand, also shall cooperate with the other

27

 

Party and its Representatives with respect to procuring all consents contemplated hereby or
necessary to consummate the transactions contemplated by this Agreement.

          5.5 Notification. Between the date of this Agreement and the Closing, the Sellers
shall promptly notify the Buyer in writing if any of them becomes aware of (a) any fact or
condition that causes or constitutes a breach of any of the Sellers’ representations and warranties
made as of the date of this Agreement, or (b) the occurrence after the date of this Agreement of
any material fact or condition that would or be reasonably likely to (except as expressly
contemplated by this Agreement) cause or constitute a breach of any such representation or warranty
had that representation or warranty been made as of the time of the occurrence of, or the Sellers’
discovery of, such fact or condition. Should any such fact or condition require any change to the
Disclosure Letter, the Sellers shall promptly deliver to the Buyer a supplement to the Disclosure
Letter specifying such change. Such delivery shall not affect any rights of the Buyer under
Section 8. During the same period, the Sellers also shall promptly notify the Buyer of the
occurrence of any breach of any covenant of the Sellers in this Agreement or of the occurrence of
any event that may make the satisfaction of the conditions in Section 7.1 impossible or unlikely.

          5.6 No Shopping. Until such time as this Agreement shall be terminated, neither of
the Sellers shall directly or indirectly solicit, initiate, encourage or entertain any inquiries or
proposals from, discuss or negotiate with, provide any nonpublic information to or consider the
merits of any inquiries or proposals from any Person (other than the Buyer) relating to any
business combination transaction involving the Sellers, or either of them, including the sale of
any equity interest in either of the Sellers, the merger or consolidation of either of the Sellers
or the sale of the Sellers’ business or any of the assets of the Sellers (other than in the
Ordinary Course of Business).

          5.7 Reasonable Best Efforts. The Sellers and the Buyer shall use their reasonable
best efforts to cause the conditions in Section 7 to be satisfied.

          5.8 Change of Name. On or before the Closing Date, the Sellers shall (a) amend their
organizational documents and take all other actions necessary to change their names to names
sufficiently dissimilar to the Sellers’ present names, in the Buyer’s judgment, to avoid confusion
(and in no event containing the words “Southern Saw,” “Atlanta,” or “Sharptech”), and (b) take all
actions requested by the Buyer to enable the Buyer to use one of such names in the State of
Georgia.

          5.9 Payment of Liabilities. Prior to the Closing Date, the Sellers shall pay or
otherwise satisfy their Liabilities in the Ordinary Course of Business.

          5.10 Cooperation Concerning Title; Survey; UCC Searches.

               (a) Cooperation Concerning Title. The Sellers shall reasonably cooperate with the
Buyer in obtaining for the Buyer, at the Buyer’s expense, for each parcel, tract or subdivided land
lot of Owned Property, from Chicago Title Insurance Company (the “Title Insurer”):

28

 

                 (1) title commitments issued by the Title Insurer to insure title to all Owned
Property, including the land, improvements, insurable appurtenances, in the amount of that
portion of the Purchase Price allocated to the Property, naming the Buyer as the proposed
insured and having an effective date after the date of this Agreement, wherein the Title
Insurer shall agree to issue an ALTA 1992 form owner’s policy of title insurance subject to
the Permitted Exceptions (each a “Title Commitment”);

                 (2) complete and legible copies of all recorded documents listed as Schedule B-1
matters to be terminated or satisfied in order to issue the policy described in the Title
Commitment or as special Schedule B-2 exceptions thereunder (the “Recorded
Documents”); and

The Title Commitment also shall set forth the Title Insurer’s requirements for issuing its title
policy subject to Permitted Exceptions, it being understood that such requirements (other than the
payment of the premium, which shall be the responsibility of the Buyer) shall be met by the Sellers
on or before the Closing Date (including those requirements that must be met by releasing or
satisfying monetary encumbrances, but excluding encumbrances that will remain after Closing and
those requirements that are to be met solely by the Buyer). In order to assist the Buyer in
obtaining the Title Commitment, the Sellers shall deliver to the Buyer promptly any existing title
insurance policies and title information that they may have with respect to any parcel of Owned
Property.

               (b) Survey. The Sellers shall furnish to the Buyer as promptly as practicable and in
any event before September 15, 2006 a survey an updated and/or current survey of the Owned Property
completed or updated immediately prior to or after the date of this Agreement by a land surveyor
licensed by the State of Georgia and bearing a certificate, signed and sealed by the surveyor,
certifying to the Buyer and the Title Insurer that: such survey was made (A) in accordance with
“Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys,” jointly established and
adopted by ALTA and ACSM in 2005, and includes Items 2, 3, 4, 7(A), 7(B)(1), 8, 9, 10, 11(A) and 13
of Table A thereof, and (2) pursuant to the Accuracy Standards (as adopted by ALTA and ACSM and in
effect on the date of said certificate) (“Survey”).

               (c) Title Objections. If any of the following shall occur (collectively, a “Title
Objection”):

                 (1) any Title Commitment or other evidence of title or search of the appropriate real
estate records discloses that any party other than the Sellers has title to the insured
estate covered by the Title Commitment;

                 (2) any title exception is disclosed in Schedule B to any Title Commitment that is not
one of the Permitted Exceptions or one that the Sellers will cause to be deleted from the
Title Commitment concurrently with the Closing, including (A) any exceptions that pertain to
encumbrances securing any loans that do not constitute an Assumed Liability and (B) any
exceptions that the Buyer reasonably believes could

29

 

materially and adversely affect the Buyer’s use and enjoyment of the Owned Property described therein; or

                 (3) any Survey discloses any matter that the Buyer reasonably believes could materially
and adversely affect the Buyer’s use and enjoyment of the Owned Property described therein;

then the Buyer shall notify the Sellers in writing (“Buyer’s Notice”) of such matters
within ten (10) Business Days after receiving all of the Title Commitment, the Survey and copies of
the relevant Recorded Documents. The Sellers shall use their reasonable best efforts to cure each
Title Objection and take all steps required by the Title Insurer to eliminate each Title Objection
as an exception to the Title Commitment. Any Title Objection that the Title Company is willing to
insure over on terms acceptable to the Sellers and the Buyer is herein referred to as an “Insured
Exception.” The Insured Exceptions, together with any title exception or matters disclosed by the
Survey not objected to by the Buyer in the manner aforesaid shall be deemed to be acceptable to the
Buyer. Nothing in this Section 5.11(c) waives the Buyer’s right to claim a breach of Sellers’
obligations under this Agreement.

               (d) UCC Searches. The Sellers shall cooperate with the Buyer in obtaining complete
and current searches in the names of the Sellers and other appropriate parties of all Uniform
Commercial Code Financing Statement records maintained by the Secretary of State of Georgia, in
which both of the Sellers are organized, and each county within Georgia where either Seller does
business and in which a UCC Financing State properly and effectively could be filed with respect to
accounts, inventory, and equipment in order to perfect a security interest in such Acquired Assets
and wherever else the Sellers or the Buyer shall believe that a Uniform Commercial Code Financing
Statement has been filed. Sellers also shall take such action as shall be necessary, effective no
later than Closing, to obtain such releases, termination statements and other documents as may be
necessary to provide reasonable evidence that all Acquired Assets to be sold under this Agreement
are free and clear of Security Interests, other than as permitted under this Agreement.

          5.11 Removing Excluded Assets. On or within ninety (90) days following the
Closing Date, the Sellers shall have removed all Excluded Assets from all facilities of the
Sellers. Such removal shall be done in such manner as to avoid any damage to the facilities and
other properties of the Sellers. Any damage to the Acquired Assets resulting from such removal
shall be promptly paid by the Sellers. Should the Sellers fail to remove the Excluded Assets as
required by this Section 5.12, the Buyer shall have the right, but not the obligation, after
Closing (a) if agreed upon with the Sellers, to remove the Excluded Assets at the Sellers’ sole
cost and expense; (b) to store the Excluded Assets and to charge the Sellers all storage costs
associated therewith; or (c) to exercise any other right or remedy conferred by this Agreement or
otherwise available at law or in equity. The Sellers shall promptly reimburse the Buyer for all
costs and expenses incurred by the Buyer in connection with any Excluded Assets not removed by the
Sellers within ninety (90) days.

          5.12 Bulk Sales Laws. The Sellers shall comply with the provisions of the Bulk Sales
Laws in connection with the transactions contemplated by this Agreement. The Sellers warrant and
agree to pay and discharge when due (and in any event prior to Closing) all claims of creditors
that could be asserted against the Buyer by reason of any non-compliance to the extent that such
liabilities are not Assumed Liabilities. To the extent that the procedures for compliance with the
Bulk Sales Laws referenced in Exhibit A to this Agreement otherwise would allow the Sellers
to satisfy any such obligations after Closing, the Sellers nevertheless agree to satisfy all such
obligations prior to Closing. The Sellers hereby jointly and severally indemnify and agree to hold
the Buyer

30

 

harmless from, against and in respect of, and shall on demand reimburse the Buyer for,
any loss, liability, cost or expense suffered or incurred by the Buyer by reason of the failure of
the Sellers to pay or discharge any such claims.

          5.13 Anti-Sandbagging. The Buyer has disclosed to Sellers any inaccuracies or
breaches of the Sellers’ representations and warranties that are within the Knowledge of the Buyer
on or prior to the Closing Date. Nothing in this Section 5.13 shall relieve the Sellers of any
indemnity obligation in respect of such breach if Buyer decides to close the transactions
contemplated hereby notwithstanding such breach.

          5.14 Stub Period. The following rules will apply to the Stub Period:

               (a) During the Stub Period, the Sellers have continued to be the legal owner of the Acquired
Assets and the business. Consequently, the Sellers shall keep their properties and operations
insured under the policies of insurance referenced in Section 4.20 of this Agreement.

               (b) By the close of business on the Closing Date, the Sellers shall have terminated all
employees except Boyle.

               (c) The Buyer shall be entitled to any earnings during the Stub Period and shall bear any loss
incurred during the Stub Period. Notwithstanding the foregoing, (1) the expense of terminated
employees outside ordinary compensation, (2) any Liability covered by the Sellers’ insurance, and
(3) any matter constituting a breach of Sellers’ representations and warranties shall be for
Sellers’ account throughout the Stub Period.

     6. EMPLOYEES AND POST-CLOSING COVENANTS. The Parties agree as follows with respect to
Employees and the period following the Closing:

          6.1 Employees Other than Boyle. Not less than five days prior to the Closing Date,
the Buyer has provided the Sellers with a list of the employees of the Sellers (it being stipulated
that Southern Saw has no employees and that all employees of Sellers are employees of Holdings) who
will be offered employment by Buyer (the “Employment Schedule”). The following terms shall
apply to the employment of those employees listed on the Employment Schedule:

               (a) Concurrent with Closing, the Buyer shall offer employment to the employees of Sellers
listed on the Employment Schedule at such employees’ then existing base wages (except that in the
case of territory managers such compensation may consist of a different mix of salary and
commissions than Sellers have paid), subject to such other employment benefits and incentive
compensation plans as the Buyer may choose. Subject to the foregoing, the Buyer may offer
employment on Buyer’s standard employment terms (which, for territory managers, may include a
noncompetition agreement).

               (b) The Buyer may delete from the Employment Schedule any person originally listed who shall
fail to have proper INS employment documentation (e.g., documents required to complete Form I-9
“Employment Eligibility Verification”) or who shall fail the Buyer’s pre-employment drug test. No
deletion of an employee from the Employment Schedule pursuant to this Section 6.1(c) shall obligate
the Buyer to add any substitute employee to the Employment Schedule.

               (c) If the Buyer shall hire any employee of the Sellers at Closing and thereafter shall
terminate such employee (other than For Cause) within one year following the Closing Date, the
Buyer shall pay such terminated employee as severance pay three months of such employee’s base pay
(for territory managers the pay will be the average compensation for the preceding twelve (12)
months, provided that months of employment will apply for any territory manager employed less than
12 months).

               (d) Notwithstanding the Buyer’s obligation to pay severance pay in certain circumstances as
set forth above it is understood and agreed that:

                 (1) The employment offered by the Buyer is “at will” and may be terminated by the Buyer
or by an employee at any time for any reason; and

31

 

                 (2) Nothing in this Agreement shall be deemed to prevent or restrict in any way the
right of the Buyer to terminate, reassign, promote or demote any of the employees of the
Sellers after the Closing or to change adversely or favorably the title, powers, duties,
responsibilities, functions, or terms or conditions of employment of such employees.

               (e) The Sellers shall be solely liable for (1) any amounts payable or distributable to
Sellers’ employees under any Employment Benefit Plan maintained or contributed to by Sellers, or
either of them, and (2) any severance payment required to be made to the Sellers’ employees due to
the transactions contemplated by this Agreement, save and except for any severance that the Buyer
may be liable for under this Section 6.1. Without limiting the generality of the foregoing, the
Buyer shall not have any responsibility, liability or obligation, whether to employee, former
employees, their beneficiaries or to any other Person, with respect to any employee benefit plans,
practices, programs or arrangements (including the establishment, operation or termination thereof
and the notification and provision of COBRA coverage extension) maintained or contributed to by the
Sellers, or either of them.

               (f) Nothing in this Section 6.1 shall apply to Boyle, and Boyle shall not be included in the
95% test referenced above.

               (g) Employees of Holdings who are hired by the Buyer will be entitled to (a) receive credit
under the Buyer’s Employee Benefit Plans for purposes of eligibility and vesting for all years of
service under the Holdings ESOP, but their years of service prior to Closing shall not be taken
into account for purposes of accruing benefits under any retirement plan of the Buyer or any
Affiliate; and (b) until such time as the same is altered to include Sellers’ employees in Kasco’s
existing medical insurance plan, to participate in the Kaiser medical insurance policy maintained
by the Sellers prior to Closing (provided, however, that dental and life coverage shall be provided
only under Kasco’s existing dental and life insurance plans).

          6.2 Payment of Taxes Resulting from Sale of Acquired Assets by the Sellers. The
Sellers shall pay as required by law all Taxes resulting from or payable in connection with the
sale of the Acquired Assets pursuant to this Agreement, regardless of the Person on whom such Taxes
are imposed by legal requirements, only to the extent that such Taxes may affect the free and clear
title to the Acquired Assets.

          6.3 Payment of Liabilities. In addition to payment of Taxes pursuant to Section 6.2,
the Sellers shall pay, or make adequate provision for the payment, in full all of the Retained
Liabilities and other Liabilities of the Sellers under this Agreement to the extent that the
nonpayment of such Retained Liabilities or other Liabilities may affect the free and clear title to
the Acquired Assets. The Sellers will in any event abide by their obligations under Section 5.12
of this Agreement. The Buyer will pay all Assumed Liabilities in a timely manner.

          6.4 Restrictions on Dissolution of the Sellers. The Sellers shall not dissolve until
after the later of (a) 30 days after the completion of all adjustment procedures contemplated by
Section 2 above, (b) the Sellers’ payment, or adequate provision for the payment, of all of its
obligations pursuant to Sections 6.2 and 6.3. Neither Buyer nor Kasco will dissolve prior to
payment of all Assumed Liabilities as provided in this Agreement; provided, however, that
the Buyer may be merged into Kasco without violating the covenant set forth in this Section 6.4.

          6.5 Reports and Returns. The Sellers shall promptly after the Closing prepare and
file all reports and returns required by legal requirements relating to the business of the Sellers
as conducted using the Acquired Assets, to and including the Effective Date. The Buyer shall
promptly after the Closing Date prepare and file all reports and returns required by law relating
to the Acquired Assets, the Assumed Liabilities and the Business after the Effective Date.

          6.6 Further Assurances. In case at any time after the Closing any further action is
necessary or desirable to carry out the purposes of this Agreement, each of the Parties will take
such further action (including the execution and delivery of such further instruments and
documents) as any other Party reasonably may request, all at the sole cost and expense of the
requesting Party (unless the requesting Party is entitled to

32

 

indemnification therefor under Section
8 below). Each Party acknowledges and agrees that from and after the Closing any Party will be
entitled to possession of all documents, books, records (including Tax records), agreements, and
financial data of any sort relating to the Business that was conducted by Southern Saw prior to the
Closing Date.

          6.7 Litigation Support. In the event and for so long as any Party actively is
contesting or defending against any action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand brought by a third party or brought by a Party against a third party in
connection with (a) any transaction contemplated under this Agreement or (b) any fact, situation,
circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction on or prior to the Closing Date involving the Sellers or Buyer, each
of the other Parties will cooperate with it and its counsel in the contest or defense, make
available their personnel, and provide such testimony and access to their books and records as
shall be necessary in connection with the contest or defense, all at the sole cost and expense of
the contesting or defending Party (unless the contesting or defending Party is entitled to
indemnification therefor under Section 8 below).

          6.8 Transition. Neither the Sellers nor their Affiliates will take any action that is
designed or intended to have the effect of discouraging any lessor, licensor, customer, supplier,
or other business associate of the Business from maintaining the same business relationships with
the Buyer after the Closing as it maintained with the Sellers prior to the Closing. The Sellers
and their Affiliates will refer all customer inquiries relating to the Business to the Buyer from
and after the Closing.

          6.9 Post-Closing Access to Records. After the Closing Date, the Buyer shall retain
for a period consistent with the Buyer’s record-retention policies and practices those records of
the Sellers delivered to the Buyer. The Buyer also shall provide the Sellers and their
Representatives reasonable access to such records, during normal business hours on at least four
(4) hours prior written notice, to enable them to prepare financial statements or tax returns, deal
with audits of any nature, do any other activities necessary (as determined by Sellers) to collect
and liquidate retained Trade Accounts Receivable, pay employee compensation (if any), administer or
terminate any Employee Benefit Plans maintained by Sellers and close the business of Sellers.
Wherever the Buyer shall have charged the Buyer the Buyer’s incremental cost of warranty work and
returns as contemplated by Section 6.10 of this Agreement, the Buyer shall provide the Sellers such
access to the books and records of the Buyer as shall be reasonably necessary to substantiate the
Buyer’s charges to the Sellers. In addition, Boyle will be entitled to use (off-site) the computer
that he has used while working for Holdings for a period of ninety (90) days following the Closing
Date.

          6.10 Warranties and Returns. After the Closing, the Buyer will perform for the
Sellers at its incremental cost all warranty work that is the responsibility of the Sellers
pursuant to warranties described in Disclosure 4.22. The Buyer also will process returns for the
Sellers. In performing such warranty work and processing such returns, the Buyer will perform
work, process returns, and incur expenses for the Sellers’ account only to the extent that the
Buyer would do the same when acting on its own account. All such costs will be charged to, and be
payable solely from, the Escrow Account. Buyer will provide Sellers with written proof of all
charges.

     7.  CONDITIONS TO OBLIGATION TO CLOSE.

          7.1 Conditions to Obligation of the Buyer. The obligation of the Buyer to
consummate the transactions to be performed by it in connection with the Closing is subject to
satisfaction of the following conditions:

               (a) the representations and warranties set forth in Section 3.1 and Section 4 above
(without regard to any amendment or supplement to the Disclosure Letter pursuant to Section 4
above) shall be true and correct in all material respects as of the Effective Date and as of the
Closing Date;

               (b) the Sellers shall have performed and complied with all of their covenants and agreements
hereunder in all material respects through the Closing;

33

 

               (c) no action, suit, or proceeding shall be pending before any court or quasi-judicial or
administrative agency of any federal, state, local, or foreign jurisdiction or before any
arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (1)
prevent consummation of any of the transactions contemplated by this Agreement, (2) cause any of
the transactions contemplated by this Agreement to be rescinded following consummation, (3)
materially and adversely affect the right of the Buyer to own the Acquired Assets, or (4)
materially and adversely affect the business of the Buyer with respect to the Acquired Assets (and
no such injunction, judgment, order, decree, ruling, or charge shall be in effect);

               (d) the Buyer shall have received (1) a certificate, signed by the appropriate officers of the
Sellers, as to the satisfaction of the conditions contained in Sections 7.1(a)-(c) above and (2) a
certificate of the appropriate officer reasonably necessary for contracts to be transferred to
Buyer of Holdings as to the authenticity and effectiveness of the actions of the board of directors
of Holdings and the Holdings ESOP authorizing the Sellers to enter into this Agreement and
approving the transactions contemplated by this Agreement;

               (e) the Sellers shall have procured all of governmental or other the third party consents
specified in Exhibit I (“Required Consents”) reasonably necessary for contracts to
be transferred to Buyer, and without any change in the terms of the underlying contract;

               (f) the absence of material pending or threatened litigation or material claims regarding this
Agreement or the transactions contemplated hereby;

               (g) the absence of any material adverse change in Sellers’ business, financial condition,
assets or operations since June 30, 2006 and the absence of any termination of any material
contract or customer relationship as a result of the change of control of Sellers;

               (h) the audited financial statements of the Sellers for the fiscal year ended June 30, 2006
shall reflect earnings before interest, taxes, and ESOP costs, of at least $100,000;

               (i) based solely on the Sellers’ sales to those persons who are customers of the Sellers at
June 30, 2006, the Sellers shall have had for the fiscal year ended June 30, 2006 annualized sales
of $16,500,000 or more;

               (j) the environmental experts engaged by the Buyer shall have conducted environmental surveys
of the Property (including Phase II surveys, if reasonably required), and the results of such
surveys shall not reveal the presence of environmental conditions that are unacceptable to the
Buyer on a reasonable basis;

               (k) the Buyer shall have obtained with respect to the Owned Property the Title Commitment
contemplated by Section 5.11(a) of this Agreement, in such amount equal to value of such Owned
Property (including all improvements located thereon), insuring title to the Owned Property to be
in the Sellers as of the Closing and subject only to the Permitted Exceptions described in Section
4.13(i) of the Disclosure Letter;

               (l) with respect to the Owned Property, the Sellers shall have procured a Survey as
contemplated by Section 5.11(b) of this Agreement not disclosing any survey defect or encroachment
from or onto the Owned Property which has not been cured or insured over to the Buyer’s reasonable
satisfaction prior to the Closing;

               (m) the Sellers and the Escrow Agent shall have entered into the Escrow Agreement;

               (n) the Sellers shall have entered into a noncompetition agreement and confidentiality
agreement in form and substance as set forth in Exhibit J attached hereto (the
“Noncompetition Agreement”), which, for a period of two years after the Closing Date, (1)
shall impose on Sellers various obligations of confidentiality, (2) shall preclude Sellers, and
companies in which either of them has a material financial interest from directly or indirectly
competing with Buyer in the Business being acquired, and (3) shall preclude Sellers or their
affiliates from soliciting during the five-year period following the Closing any employees of
Holdings to whom

34

 

Buyer shall have made an offer of employment; provided, however, that if
there is any conflict between the Noncompetition Agreement and the description of it that appears
above, the terms of the Noncompetition Agreement shall control;

               (o) Boyle shall have executed and delivered the New Boyle Noncompetition Agreement in the form
attached to this Agreement as Exhibit K; provided, however, that this condition
shall be deemed waived by the Buyer and the Sellers if Boyle refuses to execute the New Boyle
Noncompetition Agreement and the Buyer is relieved of its obligation to pay the additional $500,000
contemplated by Section 2.4 of this Agreement;

               (p) the Buyer shall have received from Smith Moore, LLP, counsel to the Sellers and the
Holdings ESOP, an opinion in the form set forth in Exhibit L attached hereto, addressed to
the Buyer, and dated as of the Closing Date;

               (q) the Seller Contracts requiring changes, as identified in Exhibit M (the
“Seller Contracts Requiring Changes”) shall have been amended to assign them to the Buyer,
and such amendment shall be approved by the other parties to such agreements;

               (r) the Sellers shall have complied with the Bulk Sales Laws of the State of Georgia as
contemplated by Section 5.12 of this Agreement;

               (s) all actions to be taken by the Sellers in connection with consummation of the transactions
contemplated hereby and all certificates, opinions, instruments, and other documents required to
effect the transactions contemplated hereby will be reasonably satisfactory in form and substance
to the Buyer.

The Buyer may waive any condition specified in this Section 7.1 if it executes a writing so stating
at or prior to the Closing. The Buyer shall use its reasonable best efforts to cause the
conditions contained in Section 7.1 to be satisfied.

          7.2 Conditions to Obligation of the Sellers. The obligation of the Sellers to
consummate the transactions to be performed by them in connection with the Closing is subject to
satisfaction of the following conditions:

               (a) the representations and warranties set forth in Section 3.2 above shall be true and
correct in all material respects as of the Effective Date and as of the Closing Date, except for
any representations or warranties qualified by materiality limitations, which shall instead be true
and correct in all respects;

               (b) the Buyer shall have performed and complied with all of its covenants and agreements
hereunder in all material respects through the Closing;

               (c) no order issued by any court of competent jurisdiction preventing the consummation of the
transactions contemplated by this Agreement shall be in effect;

               (d) the Sellers shall have received a certificate, signed by the appropriate officer of the
Buyer as to the satisfaction of the conditions specified above in Section 7.2(a)-(c);

               (e) the Buyer and the Escrow Agent shall have entered into the Escrow Agreement.

               (f) the Sellers shall have received from Holland & Knight, LLP, counsel to the Buyer, an
opinion in the form set forth in Exhibit O attached hereto, addressed to the Sellers, and
dated as of the Closing Date; and

               (g) the absence of pending litigation or material claims (including any legal action by Steel
Partners II, LLP or an affiliate thereof) regarding this Agreement or the transactions contemplated
hereby.

35

 

The Sellers may waive any condition specified in this Section 7.2 if they execute a writing so
stating at or prior to the Closing. The Sellers will use their reasonable best efforts to cause
the conditions contained in this Section 7.2 to be satisfied.

     8. REMEDIES FOR BREACHES OF THIS AGREEMENT.

          8.1 Survival of Representations and Warranties. All of the representations and
warranties of the Parties contained in this Agreement shall survive the Closing hereunder (even if
the damaged Party knew or had reason to know of any misrepresentation or breach of warranty at the
time of Closing, except as set forth in Section 6.6 above) for eighteen (18) months after the
Closing Date. No such termination shall affect the rights of a Party in respect of any claim made
by such Party in a writing received by another Party prior to the expiration of any such period.

          8.2 Indemnification Provisions for Benefit of the Buyer.

               (a) If the Sellers breach any of their representations, warranties, covenants or agreements
contained herein (including, without limitation, the Sellers’ obligation to satisfy all Retained
Liabilities), if there is an applicable survival period pursuant to Section 8.1 above, provided
that the Buyer makes a written claim for indemnification against the Sellers pursuant to Section
10.8 below within such survival period, then the Sellers, jointly and severally, agree to indemnify
the Buyer from and against the entirety of any Adverse Consequences the Buyer may suffer through
and after the date of the claim for indemnification (including any Adverse Consequences the Buyer
may suffer after the end of any applicable survival period) resulting from, arising out of,
relating to, in the nature of, or caused by the breach. Notwithstanding the foregoing, except in
the instances of actual fraud on the part of Sellers, or either of them, the Buyer agrees that it
shall collect any Adverse Consequences recoverable by the Buyer pursuant to this Section 8.2(a)
solely from the Escrowed Proceeds pursuant to the Escrow Agreement, and the amount recoverable by
the Buyer under this Section 8.2(a) shall be limited to the amount of the Escrowed Proceeds.

               (b) The Sellers and not the Buyer shall be solely liable in respect of any matters
constituting the Retained Liabilities.

               (c) The Sellers jointly and severally agree to indemnify the Buyer from and against the
entirety of any Adverse Consequences the Buyer may suffer resulting from, arising out of, relating
to, in the nature of, or caused by actual fraud of the Sellers, or either of them.

          8.3 Indemnification Provisions for Benefit of the Sellers.

               (a) General. If the Buyer breaches any of its representations, warranties, covenants
or agreements contained herein (including, without limitation, the Buyer’s obligation to satisfy
all Assumed Liabilities), and, only if there remains an applicable survival period pursuant to
Section 8.1 above, provided that the Sellers make a written claim for indemnification against the
Buyer pursuant to Section 8.8 below within such survival period, then the Buyer agrees to indemnify
the Sellers from and against the entirety of any Adverse Consequences the Sellers may suffer
through and after the date of the claim for indemnification (including any Adverse Consequences the
Sellers may suffer after the end of any applicable survival period) resulting from, arising out of,
relating to, in the nature of, or caused by the breach (or the alleged breach) subject to the
limitations set forth in this Article 8.

               (b) The Buyer and not the Sellers will be solely liable for, and in respect of, the Assumed
Liabilities and matters relating thereto.

               (c) The Buyer agrees to indemnify the Sellers from and against the Adverse Consequences the
Sellers may suffer resulting from, arising out of, relating to, in the nature of, or caused by
actual fraud of the Buyer.

               (d) Steel Partners Tender Offer. Should either Seller incur any litigation or general
legal fees or other costs or expenses as a result of being named as a party defendant, being called
to testify, or filing

36

 

any responsive pleading in a court of law to defend its rights in any action
or proceeding relating to the tender offer of Steel Partners II, LLP with respect to Bairnco
Corporation. Buyer will indemnify Sellers for all such fees and costs.

          8.4 Matters Involving Third Parties.

               (a) If any third party shall notify any Party (the “Indemnified Party”) with respect
to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification
against any other Party (the “Indemnifying Party”) under this Section 8, then the
Indemnified Party shall promptly notify each Indemnifying Party thereof in writing; provided,
however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party
shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the
extent) the Indemnifying Party thereby is prejudiced.

               (b) Any Indemnifying Party will have the right to defend the Indemnified Party against the
Third Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party so
long as (1) the Indemnifying Party notifies the Indemnified Party in writing within 15 days after
the Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party will
indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the
Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or
caused by the Third Party Claim, except that the Indemnified Party will pay any costs or
liabilities attributable to its conduct (2) the Indemnifying Party provides the Indemnified Party
with evidence acceptable to the Indemnified Party that the Indemnifying Party will have the
financial resources to defend against the Third Party Claim and fulfill its indemnification
obligations hereunder, (3) the Third Party Claim involves only money damages and does not seek an
injunction or other equitable relief, (4) settlement of, or an adverse judgment with respect to,
the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to
establish a precedential custom or practice adverse to the continuing business interests of the
Indemnified Party, and (5) the Indemnifying Party conducts the defense of the Third Party Claim
actively and diligently.

               (c) So long as the Indemnifying Party is conducting the defense of the Third Party Claim in
accordance with Section 8.4(b) above, (1) the Indemnified Party may retain separate co-counsel at
its sole cost and expense and participate in the defense of the Third Party Claim, (2) the
Indemnified Party will not consent to the entry of any judgment or enter into any settlement with
respect to the Third Party Claim without the prior written consent of the Indemnifying Party, and
(3) the Indemnifying Party will not consent to the entry of any judgment or enter into any
settlement with respect to the Third Party Claim without the prior written consent of the
Indemnified Party.

               (d) In the event any of the conditions in either Section 8.4(b)(1) or (5) above is or becomes
unsatisfied (in the case of Section 8.4(b)(5) after the Indemnified Party has given the
Indemnifying Party written notice of the specific deficiencies in the performance of the
Indemnifying Party and the Indemnifying Party has failed to take reasonable steps to remedy such
deficiencies within 15 days after receipt of such notice), however, (1) the Indemnified Party may
defend against, and consent to the entry of any judgment or enter into any settlement with respect
to, the Third Party Claim in any manner it may in good faith deem appropriate (and the Indemnified
Party need not consult with, or obtain any consent from, any Indemnifying Party in connection
therewith), (2) the Indemnifying Party will reimburse the Indemnified Party promptly and
periodically for the costs of defending against the Third Party Claim (including reasonable
attorneys’ fees and expenses), and (3) the Indemnifying Party will remain responsible for any
Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to,
in the nature of, or caused by the Third Party Claim to the fullest extent provided in this Section
8, subject to the limitations stated in Section 8.5. In the event any of the conditions in
Sections 8.4(b)(2), (3), or (4) above is unsatisfied, the Indemnified Party will have the right to
participate in the defense of the applicable Third Party Claim with counsel of its choice at its
expense, and the Indemnifying and Indemnified Party will use all reasonable good faith efforts to
agree on an equitable apportionment of the expenses of defense and other terms of joint defense, it
being understood that neither party will have the unilateral right to commit the other party to any
compromise or settlement of such Third Party Claim.

          8.5 Limitations. The liability of the Sellers for claims under this Agreement shall
be limited by the following:

37

 

               (a) No Adverse Consequences shall be recoverable by the Buyer pursuant to the provisions of
this Section 8 unless and only to the extent that the amount of all such Adverse Consequences
equals or exceeds in the aggregate eighty thousand dollars ($80,000) (the “Indemnity
Basket”); provided, however, that after the Indemnity Basket has been satisfied in the
aggregate such claims shall be recoverable from the first dollar. Claims in respect of (A) downward
adjustments of the Purchase Price, and (B) actual fraud of Sellers shall be payable from the first
dollar.

               (b) The aggregate amount of Adverse Consequences recoverable pursuant to the provisions of
this Section 8 by the Buyer shall be absolutely and entirely limited to the Escrowed Proceeds (the
“Indemnity Cap”). Such limitation does not apply to Adverse Consequences based on actual
fraud of the Sellers, or either of them.

          8.6 Determination of Adverse Consequences. The Parties shall take into account the
time cost of money (using the prime rate as reported from time to time in The Wall Street Journal
as the discount rate) in determining Adverse Consequences for purposes of this Section 8. All
indemnification payments under this Section 8 shall be deemed adjustments to the final Purchase
Price.

          8.7 Other Indemnification Provisions. This Section 8 shall be the absolute and
exclusive remedy of the Parties for the breach (or alleged breach) of any representation, warranty,
covenant or agreement contained herein or made pursuant to this Agreement and the transactions
contemplated hereby; provided, however, that these exclusive remedies will not (a) apply in the
case of fraud and (b) be construed to preclude a Party from bringing an action for specific
performance or other equitable remedy to require the other parties to perform its or their
obligations under this Agreement. .

          8.8 Mitigation. Each Indemnified Party and each Indemnifying Party shall use its
reasonable best efforts and shall consult and cooperate with each other with a view towards
mitigating claims, losses, liabilities, damages, deficiencies, costs and expenses that may give
rise to claims for indemnification under Sections 8.2 through 8.7.

     9. MISCELLANEOUS.

          9.1 Nature of Certain Obligations. . The representations, warranties, covenants and
agreements of the Sellers in this Agreement are joint and several obligations of the Sellers.

          9.2 Press Releases and Public Announcements. No Party shall issue any press release
or make any public announcement relating to the subject matter of this Agreement prior to or
immediately after the Closing without the prior written approval of the Buyer and the Sellers;
provided, however, that the Buyer may make any public disclosure it believes in good faith
is required by applicable law or any listing or trading agreement concerning its publicly-traded
securities.

          9.3 No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors and permitted
assigns, except that the employees of Holdings will be able to enforce their rights to
compensation, benefits and severance pay against Buyer.

          9.4 Entire Agreement. This Agreement (including the recitals appearing at the
beginning of this Agreement, the Exhibits, the Schedules, and any other documents referred to
herein) constitutes the entire agreement among the Parties and supersedes any prior understandings,
agreements, or representations by or among the Parties, written or oral, to the extent they relate
in any way to the subject matter hereof, except that the confidentiality agreement dated September
26, 2005 and the provisions of the Offer Letter relating to due diligence and access will remain in
effect.

          9.5 Succession and Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties named herein and their respective successors and permitted assigns. No
Party may assign

38

 

either this Agreement or any of its rights, interests, or obligations hereunder
without the prior written approval of the Buyer and the Sellers; provided, however, that
the Buyer may (a) assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (b) designate one or more of its Affiliates to perform its obligations hereunder (in
any or all of which cases the Buyer nonetheless shall remain responsible for the performance of all
of its obligations hereunder and the guarantee of the Buyer’s Guarantor will continue to apply).

          9.6 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together will constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
shall be as effective as delivery of a manually executed counterpart of this Agreement.

          9.7 Headings. The Section and subsection headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or interpretation of this
Agreement.

          9.8 Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder
shall be deemed duly given (a) when delivered personally to the recipient, (b) one Business Day
after being sent to the recipient by reputable overnight courier service (charges prepaid), (d) on
the day of transmission if transmitted by facsimile on any Business Day between 9:00 a.m. and 4:00
p.m. local time, or, if transmitted outside of these times, on the commencement of the following
Business Day or (d) four Business Days if it is sent by registered or certified mail, return
receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:

	 	 	 	 	 	 	 
	 	 	If to the Sellers:	 	Southern Saw Holdings, Inc.
	 

	 	 	 	 	 	Southern Saw Service, L.P.
	 

	 	 	 	 	 	c/o Peter J. Boyle
	 

	 	 	 	 	 	8775 Torrington Drive
	 

	 	 	 	 	 	Roswell, Georgia 30076
	 
	 	 	 	 	 	 
	 

	 	Copy to:
	 	 	 	Smith Moore LLP
	 

	 	 	 	 	 	One Atlantic Center
	 

	 	 	 	 	 	1201 W. Peachtree Street, Suite 3700
	 

	 	 	 	 	 	Atlanta, GA 30309
	 

	 	 	 	 	 	Facsimile: (404) 962-1236
	 

	 	 	 	 	 	Attention: Allen Buckley, Esq.
	 
	 	 	 	 	 	 
	 	 	If to the Buyer:	 	Southern Saw Acquisition Corporation
	 

	 	 	 	 	 	c/o Kasco Corporation
	 

	 	 	 	 	 	300 Primera Blvd., Suite 432
	 

	 	 	 	 	 	Lake Mary, FL 32746
	 

	 	 	 	 	 	Facsimile: (407) 875-3398
	 

	 	 	 	 	 	Attention: Luke E. Fichthorn III Chairman
	 
	 	 	 	 	 	 
	 

	 	Copy to:
	 	 	 	Holland & Knight LLP
	 

	 	 	 	 	 	200 South Orange Ave., Suite 2600
	 

	 	 	 	 	 	Orlando, FL 32801
	 

	 	 	 	 	 	Facsimile: (407) 244-5288
	 

	 	 	 	 	 	Attention: Leighton D. Yates, Jr.

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

          9.9 Governing Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Georgia without giving effect to any choice or conflict of
law provision or

39

 

rule (whether of the State of Georgia or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Georgia.

          9.10 Amendments and Waivers. No amendment of any provision of this Agreement shall be
valid unless the same shall be in writing and signed by the Buyer and the Sellers. No waiver by
any Party of any default, misrepresentation, or breach of warranty, covenant or agreement
hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty, covenant or agreement hereunder or affect in any
way any rights arising by virtue of any prior or subsequent such occurrence.

          9.11 Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability
of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

          9.12 Expenses. Except as otherwise provided in this Agreement, each party to this
Agreement will bear its respective fees and expenses (including legal fees and expenses) incurred
in connection with the preparation, negotiation, execution and performance of this Agreement and
the transactions contemplated hereby. Notwithstanding the foregoing:

               (a) Brokers and Finders. Each party will be responsible for compensating any broker
or finder engaged by such party.

               (b) Title Insurance. The Buyer will be responsible for the cost of the Title
Commitment and the related title insurance policy to be procured by the Buyer, and the Sellers will
be responsible for the cost of the Surveys.

               (c) Due Diligence Expenses. The Buyer will be responsible for its due diligence
expenses and the Phase I and/or Phase II environmental audit to be performed on Sellers’ facilities
that are included in the Acquired Assets.

               (d) Grant Thornton and Other Accountants. The Buyer will be responsible for the fees
and expenses of Grant Thornton in connection with its audits, including the audit required for the
post-closing adjustment. If other accountants are engaged because the Sellers do not accept Grant
Thornton’s post-closing determination, each of the Buyer, on the one hand, and the Sellers, on the
other hand, will be responsible for 50% of such other accountants’ fees and expenses.

               (e) Transfer Taxes. Each of the Buyer, on the one hand, and the Sellers, on the other
hand, shall be liable for 50% of all transfer taxes on the Acquired Assets. The Sellers and the
Buyer will cooperate in seeking by lawful means to reduce the amount of transfer taxes so payable.
Without limiting the generality of the foregoing, the Sellers and the Buyer specifically agree, to
the extent the same is relevant under the applicable sales tax laws, as follows:

                 (1) With respect to all inventory items that are to be resold by the Buyer in
transactions subject to sales Tax, the Buyer shall execute and deliver to the Sellers a
resale certificate or other certificate as required by local law.

                 (2) With respect to any Acquired Assets constituting personal property as to which any
“isolated transaction,” “casual sales,” or similar exemption from transfer Taxes may be
available, the Parties shall submit such documentation as shall be necessary to establish
the isolated nature of the transfer.

          9.13 Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement. Any reference to any

40

 

federal, state or local statute or law
shall be deemed also to refer to all rules and final regulations promulgated thereunder, unless the
context requires otherwise. The word “including” shall mean including without limitation. The
Parties intend that each representation, warranty, covenant and agreement contained herein shall
have independent significance. If any Party has breached any representation, warranty, covenant or
agreement contained herein in any respect, the fact that there exists another representation,
warranty, covenant or agreement relating to the same subject matter (regardless of the relative
levels of specificity) which the Party has not breached shall not detract from or mitigate the fact
that the Party is in breach of the first representation, warranty, covenant or agreement.

          9.14 Specific Performance. Each of the Parties acknowledges and agrees that the other
Parties would be damaged irreparably in the event any of the provisions of this Agreement are not
performed in accordance with their specific terms or otherwise are breached. Accordingly, each of
the Parties agrees that the other Parties shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof in any action instituted in any state or federal court sitting in
Atlanta, Georgia and otherwise having equity jurisdiction (subject to the provisions set forth in
Section 10.15 below, but with the understanding that any action for specific performance shall be
through a court proceeding rather than through a mediation or arbitration ), in addition to any
other remedy to which they may be entitled, at law or in equity. Each of the Parties submits to the
jurisdiction of any state or federal court sitting in Atlanta, Georgia, in any action or proceeding
under this Section 10.14 arising out of or relating to this Agreement and agrees that all claims in
respect of the action or proceeding may be heard and determined in any such court.

          9.15 Dispute Resolution—Mediation and Arbitration. In Section 2.8 above, the Parties
have specified a means of resolving disputes as to the final Purchase Price. In Section 10.14
above, the Parties have specified that a court proceeding will be used to seek specific performance
of this Agreement. Concerning all other disputes under this Agreement, the Parties agree as
follows:

               (a) Claims, disputes, or other matters in question between the Parties arising out of this
Agreement or breach thereof shall be subject to and decided by mediation or arbitration. Such
mediation or arbitration shall be conducted in accordance with the applicable rules of the AAA
currently in effect, but each party shall have rights of discovery in accordance with the Federal
Rules of Civil Procedure rather than such mediation or arbitration rules. Any arbitration pursuant
to this Agreement shall be held in Atlanta, Georgia and shall be conducted by a panel of three
arbitrators to be selected pursuant to the applicable rules of the AAA currently in effect. The
fees and expenses of arbitration shall be part of the award. Each Party in any mediation or
arbitration shall pay its own attorneys’ fees.

               (b) In addition to and prior to arbitration, the Parties shall endeavor to settle disputes by
mediation. Demand for mediation shall be filed in writing with the other Party to this Agreement
and with the
AAA. A demand for mediation shall be made within a reasonable time after the claim, dispute,
or other matter in question has arisen. In no event shall the demand for mediation be made after
the date when institution of legal or equitable proceedings based on such claim, dispute, or other
matter in question would be barred by the applicable statutes of repose or limitations.

               (c) Demand for arbitration shall be filed in writing with the other Party to this Agreement
and with the AAA. A demand for arbitration shall be made within a reasonable time after the claim,
dispute, or other matter in question has arisen. In no event shall the demand for arbitration be
made after the date when institution of legal or equitable proceedings based on such claim,
dispute, or other matter in question would be barred by the applicable statutes of repose or
limitations.

               (d) An arbitration pursuant to this Section may be joined with other matters between the
Parties involving common issues of law or fact as to which the Parties have an obligation to
arbitrate disputes. No arbitration arising out of this Section shall include, by consolidation,
joinder, or in any other manner an additional person or entity not a Party hereto, except by
written consent containing a specific reference to this Section signed by the other person or
entity sought to be joined. Consent to arbitration involving an additional person or entity shall
not constitute consent to arbitration of any claim, dispute, or other matter in question not
described in the written consent or with a person or entity not named or described therein. The
foregoing agreement

41

 

to arbitrate and other agreements to arbitrate with an additional person or
entity duly consented to by the Parties shall be specifically enforceable in accordance with
applicable law in any court having jurisdiction thereof.

               (e) The award rendered by the arbitrator or arbitrators shall be final, and judgment may be
entered upon it in accordance with applicable law in any court having jurisdiction thereof.
Similarly, the arbitrator or arbitrators shall have the right to enter, in appropriate
circumstances, injunctions and other orders in equity as well as in law, all of which orders shall
be final, and judgment may be entered upon them in accordance with applicable law in any court
having jurisdiction thereof. Notwithstanding the provisions of Section 10.14(a), an arbitrator or
arbitrators shall be permitted to award attorneys’ fees and litigation costs and expenses to the
prevailing party.

          9.16 Confidentiality.

               (a) Between the date of this Agreement and the Closing Date, the existing Confidentiality
Agreement between the Buyer and Sellers will remain in effect. However, nothing provided therein
will preclude the Buyer from conducting due diligence contemplated by the Offer Letter.

               (b) If the transactions contemplated by this Agreement are not consummated, each Party will
return or destroy as much of such written information as the other party may reasonably request.

[Signature Page Follows]

42

 

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

	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW ACQUISITION CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian E. Turner
 

Brian E. Turner
	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	SELLERS:	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter J. Boyle
 

Peter J. Boyle
	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW SERVICE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SOUTHERN SAW HOLDINGS, INC.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter J. Boyle
 

Peter J. Boyle
	 	 
	 

	 	 	 	President	 	 

[Signature Pages to Asset Purchase Agreement]

 

 

JOINDER OF BUYER’S GUARANTOR

     KASCO CORPORATION, a Delaware corporation (“Buyer’s Guarantor”) hereby joins in
the foregoing Asset Purchase Agreement (the “Agreement”) for the purpose of guaranteeing
the obligations of Southern Saw Acquisition Corporation (the “Buyer”) thereunder, on the
following terms:

W I T N E S S E T H:

     1. Capitalized Terms. Capitalized terms used in this Joinder of Buyer’s Guarantor
(this “Joinder”) and not otherwise defined shall have the meanings set forth in the
Agreement.

     2. Consideration for Guaranty. The Buyer’s Guarantor acknowledges that it is the
owner of the Buyer, and consequently it will benefit materially from the transactions contemplated
by the Agreement, and thus it has received adequate consideration for its covenants, guarantees and
agreements set forth herein. The Sellers have told the Buyer and the Buyer’s Guarantor that the
Sellers would not have entered into the Agreement unless the Buyer’s Guarantor guaranteed the
Buyer’s obligations thereunder. This Joinder is being entered into at the Buyer’s request.

     3. Guaranty. By executing and delivering this Joinder, the Buyer’s Guarantor hereby
irrevocably, absolutely, and unconditionally guarantees the full and punctual payment and
performance by the Buyer of the Guaranteed Obligations (as defined below). For all purposes of this
Joinder, “Guaranteed Obligations” means: (a) the Buyer’s prompt payment in full, when due or
declared due, and at all such times of all obligations heretofore, now or at any time or times
hereafter owing, arising, due or payable from the Buyer to the Sellers; and (b) the Buyer’s prompt,
full and faithful performance, observance and discharge of each and every agreement, undertaking,
covenant and provision in favor of Sellers to be performed, observed or discharged by the Buyer
under the Agreement and all other documents executed by Buyer related to the asset purchase
transaction contemplated thereby (“Related Agreements”). The Guaranteed Obligations to the Sellers
under this Joinder are hereinafter collectively referred to as the “Guaranteed Obligations”.

     The Buyer’s Guarantor agrees that it is directly and primarily liable for the Guaranteed
Obligations, but that fact shall not be construed to relieve the Buyer from its own primary
liability.

     4. Payment. To the extent that any payment is required of the Buyer in respect of the
Guaranteed Obligations, the guarantee set forth herein shall be deemed a guarantee of payment and
not a guarantee of collection. If the Buyer shall default in payment or performance of any of the
Guaranteed Obligations when and as the same shall become due, and after expiration of any
applicable grace period, whether according to the terms of the Agreement, or otherwise, or upon the
occurrence and during the continuance of any default under the Agreement, then the Buyer’s
Guarantor will, upon receipt of written demand thereof by the Sellers, fully pay to the Sellers an
amount equal to all the Guaranteed Obligations then due and owing.

     5. Absolute Rights and Obligations. The Guaranteed Obligations under this Joinder
shall be absolute and unconditional irrespective of, and the Buyer’s Guarantor hereby expressly
waives, to the extent permitted by law, any defense to its obligations under this Joinder by reason
of:

          (a) any lack of legality, validity or enforceability of the Agreement or Related Agreements
relating to the Guaranteed Obligations;

          (b) any action taken under the Agreement or any of the Related Agreements, any exercise of any
right or power therein conferred, any failure or omission to enforce any right conferred thereby,
or any waiver of any covenant or condition therein provided;

          (c) any release, exchange, amendment or waiver of any provision of the Agreement or Related
Agreements, or with respect to the Guaranteed Obligations made in accordance with the terms of such
agreements or otherwise, and no settlement or determination of any disputes between the parties in
respect of the Agreement or Related Agreements, whether or not in connection with any proceeding;

 

 

          (e) any dissolution of the Buyer or any other party to an Agreement or Related Agreements, or
the combination or consolidation of the Buyer or the Buyer’s Guarantor or any other party to a
Related Agreement into or with another entity or any transfer or disposition of any assets of the
Buyer or the Buyer’s Guarantor or any other party to a Related Agreement;

          (f) any extension (including without limitation extensions of time for payment), renewal,
amendment, restructuring or restatement of, and any acceptance of late or partial performance or
payments under the Agreement or any Related Agreement, in whole or in part;

          (g) the existence, addition, modification, termination, reduction or impairment of value, or
release of any other guaranty of the Guaranteed Obligations;

          (h) any waiver of, forbearance or indulgence under, or other consent to any change in or
departure from any term or provision contained in the Agreement or any other Related Agreement;

          (i) any other circumstance whatsoever (with or without notice to or Knowledge of the Buyer’s
Guarantor) which may or might in any manner or to any extent vary the risks of the Buyer’s
Guarantor, or might otherwise constitute a legal or equitable defense available to, or discharge
of, a surety or a guarantor, including without limitation any right to require or claim that resort
be had to the Buyer or to any collateral in respect of the Guaranteed Obligations.

It is the express purpose and intent of the parties hereto that this Joinder and the Guaranteed
Obligations hereunder shall be absolute and unconditional under any and all circumstances and shall
not be discharged except by the payment and performance in full of the Guaranteed Obligations as
herein provided.

     6. Set-Off and Waiver. To the extent permitted by applicable law, the Buyer’s
Guarantor waives any right to assert against the Sellers as a defense, counterclaim, set-off or
cross claim, any defense (legal or equitable) or other claim which the Buyer’s Guarantor may now or
at any time hereafter have against the Buyer or the Sellers without waiving any additional
defenses, set-offs, counterclaims or other claims otherwise available to the Buyer’s Guarantor.

     7. Waiver of Notice.

          (a) The Buyer’s Guarantor hereby waives to the extent permitted by law notice of the following
events or occurrences: (i) acceptance of this Joinder; (ii) any amendments, modifications, or
supplements made by the Buyer or Sellers to the Agreement or Related Agreements, or replacements or
extensions thereof; and (iii) presentment, demand, acceptance, default, non-payment, partial
payment, performance, and protest. The Buyer’s Guarantor agrees that the Sellers may heretofore,
now or at any time hereafter do any or all of the foregoing in such manner, upon such terms and at
such times as the Sellers, in their sole and absolute discretion, deem advisable, without in any
way or respect impairing, affecting, reducing or releasing the Buyer’s Guarantor from the
Guaranteed Obligations, and the Buyer’s Guarantor hereby consents to each and all of the foregoing
events or occurrences.

          (b) The Buyer’s Guarantor hereby agrees that payment or performance by the Buyer’s Guarantor
of the Guaranteed Obligations under this Joinder may be enforced by the Sellers upon demand by the
Sellers to the Buyer’s Guarantor without the Sellers’ being required (the Buyer’s Guarantor
expressly waiving to the extent permitted by law any right it may have to require the Sellers) to
(i) prosecute collection or seek to enforce or resort to any remedies, or bring a claim against the
Buyer or any other guarantor of the Guaranteed Obligations, or (ii) seek to enforce or resort to
any remedies granted to the Sellers in the Agreement or Related Agreements by the Buyer, any other
guarantor of the Guaranteed Obligations or any other Person on account of the Guaranteed
Obligations or any guaranty thereof, IT BEING EXPRESSLY UNDERSTOOD, ACKNOWLEDGED AND AGREED TO BY
THE BUYER’S GUARANTOR THAT DEMAND UNDER THIS JOINDER MAY BE MADE BY THE SELLERS, AND THE PROVISIONS
HEREOF ENFORCED BY THE SELLERS, EFFECTIVE AS OF THE FIRST DATE ANY EVENT OF DEFAULT OR BREACH
OCCURS AND IS CONTINUING UNDER THE AGREEMENT OR RELATED AGREEMENTS.

     8. Representations and Warranties. The Buyer’s Guarantor warrants and represents to
the Sellers that it is duly authorized to execute, deliver and perform this Joinder; that this
Joinder has been duly executed and delivered on behalf of the Buyer’s Guarantor by its duly
authorized representatives; that this Joinder is legal, valid, binding and enforceable against the
Buyer’s Guarantor in accordance with its terms except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles; and that the Buyer’s

2

 

Guarantor’s execution, delivery and performance of this Joinder do not violate or constitute a
breach of any of its operating documents or organizational documents, any agreement or instrument
to which the Buyer’s Guarantor is a party, or any law, order, regulation, decree or award of any
governmental authority or arbitral body to which they or their properties or operations are
subject.

     9. Binding Agreement; Assignment. This Joinder, and the terms, covenants and
conditions hereof, shall be binding upon and inure to the benefit of the parties hereto, and to
their respective heirs, legal representatives, successors and assigns; provided, however, that the
Buyer’s Guarantor shall not be permitted to assign any of its rights, powers, duties or obligations
under this Joinder or any other interest herein without the prior written consent of the Sellers.

     10. Severability. The provisions of this Joinder are independent of and separable from
each other. If any provision hereof shall for any reason be held invalid or unenforceable, such
invalidity or unenforceability shall not affect the validity or enforceability of any other
provision hereof, but this Joinder shall be construed as if such invalid or unenforceable provision
had never been contained herein.

     11 Counterparts. This Joinder may be executed in any number of counterparts each of
which when so executed and delivered shall be deemed an original, and it shall not be necessary in
making proof of this Joinder to produce or account for more than one such counterpart executed by
the Buyer’s Guarantor.

     12. Notices. Any notice required or permitted hereunder shall be given, (a) with
respect to the Buyer’s Guarantor, at the address of the Buyer indicated in the Agreement and (b)
with respect to the Sellers, at the Sellers’ address indicated in the Agreement. All such addresses
may be modified, and all such notices shall be given and shall be effective, as provided in the
Agreement.

     13. Construction. The rules of interpretation specified in Section 10.13 of the
Agreement shall be applicable to this Agreement.

     14. Jurisdiction; Consent to Service of Process.

     (a) The Buyer’s Guarantor hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any Georgia state courts or federal court
of the United States of America sitting in Atlanta, Georgia, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this Joinder or the
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in such Georgia state courts or, to the extent
permitted by law, in such federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Joinder shall affect any right that the Sellers may otherwise have to bring any action or
proceeding relating to this Joinder or the Agreement against the Buyer’s Guarantor or its
properties in the courts of any jurisdiction.

     (b) The Buyer’s Guarantor hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or relating to this
Joinder or the other Agreement in any Georgia state or federal court. Each of the parties
hereto hereby irrevocably waive, to

3

 

the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Joinder
this 11th day of October, 2006.

	 	 	 	 	 	 	 
	 	 	BUYER’S GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	KASCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian E. Turner
 

Brian E. Turner
	 	 
	 

	 	 	 	President	 	 

4X-10.2

 

EXHIBIT 10.2

NONCOMPETITION AGREEMENT

     THIS NONCOMPETITION AGREEMENT (as hereinafter defined, this “Agreement”), is made
as of this 11th day of October, 2006, by and among SOUTHERN SAW SERVICE, L.P., a Georgia limited
partnership (“Southern Saw”), SOUTHERN SAW HOLDINGS, INC., a Georgia corporation
(“Holdings” and together with Southern Saw, the “Sellers”) and SOUTHERN SAW
ACQUISITION CORPORATION, a Delaware corporation having its headquarters and principal place of
business in Lake Mary, Florida (“Buyer”).

W I T N E S S E T H:

     WHEREAS, capitalized terms used in these recitals and not otherwise defined shall have the
meanings set forth in Section 1 of this Agreement; and

     WHEREAS, concurrently with the execution and delivery of this Agreement, Buyer is purchasing
substantially all of the assets of both Sellers pursuant to that certain Asset Purchase Agreement
dated as of October 11, 2006 (as hereinafter defined, the “Asset Purchase Agreement”); and

     WHEREAS, Kasco Corporation, a Delaware corporation (“Kasco” and together with Buyer,
the “Buyer Parties”), is the parent company of the Buyer and Kasco shall be an intended
third party beneficiary of this Agreement; and

     WHEREAS, the Asset Purchase Agreement calls for the execution and delivery of a Noncompetition
Agreement by Sellers for the benefit of the Buyer Parties, and this is the Noncompetition Agreement
contemplated by the Asset Purchase Agreement; and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein set forth and
other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, it is hereby agreed as follows:

     1. Definitions. Capitalized terms used in this Agreement and not otherwise defined
shall have the respective meanings ascribed to such terms in the Asset Purchase Agreement. In
addition, the following capitalized terms shall have the respective meanings as follows:

          “Affiliate” shall mean, with respect to any Person, any other Person controlling
controlled by, or under common control with the first Person; provided, however, that
“Affiliate” shall not include any employee of Holdings or any individual participant in the
Holdings ESOP.

          “Agreed Courts” shall have the meaning set forth in Section 8 of this Agreement.

          “Agreement” shall mean this Noncompetition Agreement and all written amendments hereto
that hereafter shall be executed and delivered by the parties.

          “Asset Purchase Agreement” shall mean that certain Asset Purchase Agreement dated as
of October 11, 2006 between the Buyer and Sellers, together with any written amendment thereto that
heretofore has been executed and delivered by the parties.

          “Confidential Information” shall mean all of the following information pertaining to
the Restricted Business or the Buyer Parties: (a) data or trade secrets, including secret
processes, formulas or other technical data; (b) production methods; (c) customer lists; (d)
personnel lists; (e) proprietary information; (f) financial or corporate records; (g) operational,
sales, promotional and marketing methods and techniques; (h) computer programs, including source
codes and/or object codes and other proprietary, competition-sensitive, or technical information or
secrets developed with or without the help of either Seller; (i) all technologies, patents,
formulas, bills of materials and processes used by Sellers; and (j) all customer and vendor lists
and other related information. Confidential Information shall not include any information that: (1)
at the time of disclosure is

5

 

within the public domain; (2) after disclosure becomes a part of the public domain or
generally known within the industry through no fault, act or failure to act, error, effort or
breach of this Agreement by either Seller; (3) is required by order, statute or regulation, of any
governmental authority to be disclosed to any federal or state agency, court, or other body, or (4)
information received by either Seller from a source other than the business sold by the Sellers
which is not known by either Seller to be under an obligation of confidentiality.

          “Employee” shall mean any full-time or part-time employee and any independent
contractor performing services similar to those performed by employees.

          “Geographic Area” shall mean all locations in the world.

          “Buyer” shall mean Southern Saw Acquisition Corporation, a Delaware corporation.

          “Buyer Parties” shall mean Buyer and Kasco.

          “Noncompetition Period” shall mean the period beginning on the date of this Agreement
and ending on the fifth (5th) anniversary of this Agreement.

          “Person” shall mean any individual, proprietorship, corporation, partnership, limited
liability company, joint venture, association, trust, venture, or other organization or legal
entity.

          “Restricted Business” shall mean any or all of (a) the business of producing, storing,
transporting, sharpening, selling, or leasing sharp edge blade products for the meat business, the
bakery business, the wood pallet business, and for other commercial businesses, and (b) the
business of providing repair services for any equipment or products located in retail grocery
stores, butcher shops, bakeries, restaurants, meat packing houses, meat processing houses, or meat
slaughter houses.

          “Sellers” shall mean Southern Saw and Holdings.

     2. Acknowledgements by Sellers. Sellers acknowledge that:

          (a) This Agreement is ancillary to the main business purpose of the Asset Purchase Agreement
and is executed by Sellers to protect the legitimate interests of the Buyer Parties with respect to
Buyer’s acquisition of the assets of the Sellers.

          (b) This Agreement has been duly authorized, executed and delivered by the Sellers and is a
valid and binding obligation of each Seller enforceable against each Seller in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, and
similar laws affecting creditors’ rights generally.

     3. Noncompetition. As an inducement for the Buyer to enter into the Asset Purchase
Agreement and for Kasco to support the Buyer in closing the transactions contemplated by the Asset
Purchase Agreement, and as additional consideration for the Purchase Price to be paid to Sellers
under the Asset Purchase Agreement, the Sellers specifically agree that during the Noncompetition
Period, no Seller shall, without the prior written consent of the Buyer, either directly or
indirectly:

          (a) compete with the Buyer Parties in, or otherwise engage in, any aspect of the Restricted
Business; or

          (b) solicit, hire, or induce to refuse employment by the Buyer Parties or to leave the employ
of the Buyer Parties any person who as of either the date of this Agreement was an Employee of
Holdings working in the Restricted Business to whom Buyer shall have made an offer of employment.

In the event of a breach by either Seller of any covenant set forth in this Section 3, the term of
such covenant will be extended for both Sellers by the period of the duration of such breach.

     4. Exception and Exclusion. Nothing in this Agreement shall be deemed to prevent
or limit the right of either Seller to be a passive owner of capital stock or other securities of
any Person if such securities are regularly traded on any national securities exchange or have been
registered under Section 12(g) of the

6

 

Securities Exchange Act of 1934; provided, however, that such passive
ownership interest of both Sellers together shall not exceed, Directly or Indirectly, one percent
(1%) of the issuer’s outstanding securities of that class.

     5. Confidential Information. During the Noncompetition Period, each Seller shall,
except as required by law or by order of any court or government agency, keep and retain in
strictest confidence and shall not divulge, communicate, use to the detriment of the Buyer Parties,
or for the benefit of any other Person, or otherwise misuse, any Confidential Information. Nothing
herein shall be construed to preclude the Sellers from using any Confidential Information in
connection with their own Tax Returns or those of any employee or Affiliate.

     6. Equitable Remedies and Remedies at Law. The parties recognize that because of the
nature of the subject matter of this Agreement it would be extremely difficult or impossible to
determine the actual damages suffered and to be suffered by the Buyer Parties as a consequence of a
breach of this Agreement by either Seller. Sellers therefore specifically agree that if either
Seller commits a breach or threatens to commit a breach of any of the provisions of this Agreement,
the Buyer Parties shall be entitled to all available legal and equitable remedies, including
without limitation, injunctive relief, both preliminary and permanent, without any need on the part
of the Buyer Parties to post a surety bond in connection therewith. In addition to such equitable
relief, the Buyer Parties shall be entitled to seek all other lawful remedies upon either Seller’s
breach of this Agreement, including money damages in appropriate cases. The rights and remedies of
the parties to this Agreement are cumulative and not alternative.

     7. Severability.

          (a) Separate Covenants. The parties intend that the covenants set forth in Section 3
and in Section 5 of this Agreement be construed as a series of separate covenants. It is the
desire and intent of the parties that the covenants be enforced to the fullest extent possible
under the laws and public policies applied in each jurisdiction in which enforcement is sought. If
any particular covenant set forth in Section 3 or in Section 5 shall be held to be invalid or
unenforceable in whole or in part, such adjudication shall apply only with respect to the operation
of this Agreement in the particular jurisdiction in which such adjudication is made and then only
to the extent such provision is adjudicated to be invalid or unenforceable. If any particular
covenant set forth in Section 3 of this Agreement shall be held to be invalid or unenforceable in
whole or in part because of the scope of this Agreement or the Restricted Business, or the duration
of the Noncompetition Period, the court making such determination (which shall be an Agreed Court
as specified in Section 8 of this Agreement) shall have the power to reform the provisions of this
Agreement to the maximum scope, time and/or geographic limitations permitted by applicable law.

          (b) Enforcement. The covenants of the Sellers under this Agreement shall be
independent of any other contractual relationship between either Seller, on the one hand, and the
Buyer Parties or the Sellers, on the other hand. Consequently, the existence of any claim or cause
of action that either of the Sellers may have against the Buyer Parties shall not constitute a
defense to the enforcement of this Agreement by the Buyer Parties.

     8. Exclusive Jurisdiction; Service of Process. Any action or proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement shall be brought by
or against any of the parties only in the courts of the State of Georgia, County of Fulton, or, if
it has or can acquire jurisdiction, in the United States District Court for the Northern District
of Georgia, Atlanta Division, and the applicable appellate courts for such courts (the “Agreed
Courts”). Each of the parties specifically consents to the exclusive jurisdiction of the
Agreed Courts in any such action or proceeding, waives any objection to venue laid therein, and
agrees not to assert the doctrine of forum non conveniens in order to avoid the jurisdiction of or
venue in the Agreed Courts. Every court located in the United States and elsewhere shall be
obligated to give full faith and credit to any decision of the Agreed Courts. Process in any
action or proceeding referred to in the preceding sentence may be served on any party anywhere in
the world.

     9. Governing Law. This Agreement shall be construed, and the legal relations between
the parties hereto shall be determined, in accordance with the local laws of the State of Georgia
applicable to agreements made and to be performed entirely

7

 

within the State of Georgia (notwithstanding that a portion of the Geographic Area is located
outside of the State of Georgia), without giving effect to its conflicts of laws provisions as part
of the agreed-upon exchange contemplated by the Asset Purchase Agreement and this Agreement, the
parties hereto have specifically agreed that in no event or circumstance shall the laws of Florida
apply to any portion of this Agreement.

     10. Attorneys’ Fees. In connection with any action brought to enforce this Agreement,
the prevailing party shall be entitled to recover from the non-prevailing party its reasonable
attorneys’ and paralegals’ fees and costs incurred in connection with such litigation. The
foregoing shall include reasonable attorneys’ and paralegals’ fees and costs incurred at trial, on
any appeal and in any administrative or bankruptcy proceeding.

     11. Successors and Assigns. This Agreement will be binding upon the Buyer and each
Seller and will inure to the benefit of the Buyer Parties and each Seller, and in each such case,
its respective successors and assigns. Sellers specifically agree that in connection with any
assignment of this Agreement by the Buyer, no consent of either Seller shall be required;
provided, however, that the parties agree that the scope of the activities prohibited to
the Sellers under Sections 3 and 5 of this Agreement shall not be increased solely by virtue of any
such assignment. The Acquired Companies are specifically designated as third party beneficiaries
of this Agreement.

     12. Recitals. The recitals set forth at the beginning of this Agreement are true and
correct and by this reference are incorporated into the body of this Agreement.

     13. Waiver. The rights and remedies of the parties to this Agreement are cumulative
and not alternative. Neither the failure nor any delay by any party in exercising any right,
power, or privilege under this Agreement will operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any such right, power, or privilege will preclude
any other or further exercise of such right, power, or privilege or the exercise of any other
right, power, or privilege. To the maximum extent permitted by applicable law, (a) no claim or
right arising out of this Agreement can be discharged by a party, in whole or in part, by a waiver
or renunciation of the claim or right unless in writing signed by the other parties; (b) no waiver
that may be given by a party will be applicable except in the specific instance for which it is
given; and (c) no notice to or demand on a party will be deemed to be a waiver of any obligation of
such party or of the right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement.

     14. Notices. All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand
(with written confirmation of receipt), (b) sent by facsimile (with written confirmation of
receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when
received by the addressee, if sent by a nationally recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses and facsimile numbers set forth below (or to
such other addresses and facsimile numbers as a party may designate by notice to the other
parties):

	 	 	 	 	 
	 

	 	Sellers:
	 	Southern Saw Holdings, Inc.
	 

	 	 	 	Peter J. Boyle
	 

	 	 	 	President
	 

	 	 	 	1594 Evans Drive, SW
	 

	 	 	 	Atlanta, GA 30310-0010
	 

	 	 	 	Facsimile No.: (404) 752-9034
	 
	 	 	 	 
	 

	 	Buyer Parties:
	 	Southern Saw Acquisition Corporation
	 

	 	 	 	c/o Kasco Corporation
	 

	 	 	 	300 Primera Blvd., Suite 432
	 

	 	 	 	Lake Mary, FL 32746
	 

	 	 	 	Attention: Luke E. Fichthorn III, Chairman
	 

	 	 	 	Facsimile No.: (407) 875-3398

8

 

	 	 	 	 	 
	 

	 	 	 	Kasco Corporation
	 

	 	 	 	300 Primera Blvd., Suite 432
	 

	 	 	 	Lake Mary, FL 32746
	 

	 	 	 	Attention: Luke E. Fichthorn III, Chairman
	 

	 	 	 	Facsimile No.: (407) 875-3398

     15. Complete Agreement. This Agreement contains the entire agreement between the
parties hereto with respect to the subject matter hereof and, except as provided herein, supersedes
all previous oral and written and all contemporaneous oral negotiations, commitments, writings and
understandings relating to the subject matter hereof. In the event of any direct conflict between
the express terms of the Asset Purchase Agreement and the express terms of this Agreement, the
express terms of this Agreement shall control.

     16. Modifications and Amendments. All modifications or amendments to this Agreement
shall be in writing and signed by the Buyer and Sellers.

     17. Rules of Construction. The following rules of construction shall be applicable to
this Agreement:

          (a) The headings in this Agreement are for convenience of reference only and will not affect
in any way the meaning or interpretation of this Agreement.

          (b) As used herein, the plural includes the singular, the singular includes the plural and any
reference to the gender of any person shall be deemed adjusted to connote the gender of the person
intended to be designated by such reference.

          (c) The parties shall be deemed to have participated equally in the preparation of this
Agreement, so that this Agreement shall not be construed more strictly against one party by virtue
of such party’s being deemed responsible for its preparation than against the other parties.

     18. Counterparts. This Agreement may be executed in any number of counterparts and
any party hereto may execute any such counterpart, each of which when executed and delivered will
be deemed to be an original and all of which counterparts taken together will constitute but one
and the same instrument. The execution of this Agreement by any party hereto will not become
effective until counterparts hereof have been executed by all the parties hereto.

[SIGNATURES FOLLOW]

9

 

     IN WITNESS WHEREOF, the parties, each thereunto duly authorized, have executed this Agreement
as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	“SELLERS”	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter J. Boyle
 

Peter J. Boyle
	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW SERVICE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SOUTHERN SAW HOLDINGS, INC.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter J. Boyle
 

Peter J. Boyle
	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	“BUYER”	 	 
	 
	 	 	 	 	 	 
	 	 	SOUTHERN SAW ACQUISITION CORPORATION, a Delaware

corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Luke E. Fichthorn, III
 

Luke E. Fichthorn, III, Chairman and CEO
	 	 

10

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