Document:

Ex 10_1 - Trails Purchase Agreement

Exhibit 10.1
REAL ESTATE PURCHASE AGREEMENT
THIS REAL ESTATE PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of July 30, 2013 (the “Effective Date”) between Cerner Property Development, Inc., a Delaware corporation, its successors and assigns (“Purchaser”), and Trails Properties II, Inc., a Missouri corporation (“Seller”).  Seller and Purchaser are sometimes collectively referred to herein as the “Parties” and each of the Parties is sometimes singularly referred to herein as a “Party”.  
WHEREAS, Seller is the owner of the Seller's Land (as hereinafter defined) and has certain rights to acquire portions of the Property (as hereinafter defined) not presently owned by Seller; and
WHEREAS, Seller desires to sell, and Purchaser desires to purchase, fee simple title to the Property, due to, among other things, the availability of economic development and job creation incentives and the close proximity of the Property to Purchaser's current Innovations campus facilities; and
WHEREAS, in connection with such purchase, Purchaser desires to acquire the right to certain economic development and job creation incentives previously approved in connection with the potential future development of the Property and seek amendments to cover the increased costs of Purchaser's redevelopment of the Property; 
NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00), the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
DEFINITIONS
As used herein, the following terms shall have the meanings indicated:
“Access Agreement” shall mean that certain Access Agreement dated September 4, 2012, by and between Seller and Purchaser, as amended by amendment dated March 4, 2013, and as the same may be extended or modified from time to time.  
“Agreement” shall mean this Real Estate Purchase Agreement.
“Assignment and Assumption of Leases” shall mean an assignment of the landlord's interests under the Leases, in mutually agreeable customary form to be agreed upon by the Parties during the Review Period, assigning all of Seller's interest in the Leases to Purchaser.
“Bill of Sale” shall mean a bill or bills of sale in substantially the same form as Exhibit D, attached hereto and made a part hereof, and sufficient to transfer to Purchaser all Tangible Personal Property and Intangible Personal Property (excluding the Leases).
“BUILD Missouri Program” shall mean the incentive tool that allows the Missouri Department of Economic Development and the Missouri Development Finance Board to finance a portion of the costs of qualifying capital investments in economic development projects for eligible businesses which seek to locate or expand in Missouri, governed by Sections 100.700 to 100.850, Revised Statutes of Missouri, as amended.

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“Business Days” shall mean any weekday (Monday through Friday) on which banks chartered by the State of Missouri are open to conduct regular banking business with bank personnel.
“Casualty” shall have the meaning set forth in Section 10.4.
“Certificate of Non-Foreign Status” shall mean a certificate or certificates dated as of the Closing Date in substantially the same form as Exhibit I, attached hereto and made a part hereof.
“CID” shall mean the 3-Trails Village Community Improvement District. 
“City” shall mean the City of Kansas City, Missouri.
“Closing” shall mean the consummation of the sale and purchase of the Property provided for herein, to be held at the offices of the Title Company, or such other place as the Parties may mutually agree.
“Closing Certificate” shall mean a certificate or certificates in substantially the same form as Exhibit H, attached hereto and made a part hereof, wherein Seller and Purchaser, respectively, shall represent that the representations and warranties of Seller and Purchaser, respectively, contained in this Agreement are true and correct in all material respects as of the Closing Date as if made on and as of the Closing Date.
“Closing Date” shall mean the date which is fifteen (15) days following the satisfaction of the conditions to Purchaser's obligations set forth in Section 6.1 hereof, or such earlier date mutually agreed to by the Parties.
“Commission” shall mean the Tax Increment Financing Commission of Kansas City, Missouri.
“Contracts” shall mean those certain Existing Contracts which Purchaser during the Review Period elects in writing to accept assignment of prior to the expiration of the Review Period.  Any such Existing Contract which Purchaser does not so elect to take assignment of shall not be deemed a “Contract” hereunder.
“Current Incentives” shall mean all rights, entitlements and incentives granted, offered or provided by any governmental entity, agency or authority relating to the Property as of the Effective Date, including but not limited to any rights, entitlements or incentives arising out of, relating to, created by, or in connection with, any of the following:  (a) the TIF Plan; (b) any agreements with any governmental bodies, including without limitation any agreements with the City or the Commission, relating to the TIF Plan, including all necessary Commission and City approvals associated therewith, or the agreement by the City to appropriate annually fifty percent (50%) of the economic activity taxes (as defined in the Development Agreement) not deposited in the special allocation fund pursuant to the TIF Act; (c) the State Supplemental TIF Documents; (d) any agreements or certificates or other documents issued by any governmental bodies, including without limitation any agreements or certificates or other documents  issued by the Missouri Department of Economic Development or other State agencies, relating to the State Supplemental TIF Documents; (e) the CID and documents, agreements, rights, entitlements and obligations relating thereto; and (f) MDFB Tax Credits (except for the Substitute MDFB Credits).  
“Deed” shall mean a special warranty deed executed by Seller, as grantor, in favor of Purchaser, as grantee, conveying the Land to Purchaser, subject only to the Permitted Exceptions.

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“Delinquent Amounts” shall have the meaning set forth in Section 8.1(c).
“Demolition Work” shall have the meaning set forth in Section 5.6.
“Development Agreement” shall mean that certain Agreement between the Tax Increment Financing Commission of Kansas City, Missouri and Three Trails District Redevelopment, LLC, for the Implementation of the Three Trails District Tax Increment Financing Plan dated April 1, 2013.
“Development Approvals” shall have the meaning set forth in Section 4.5(b).
“Due Diligence Materials” shall have the meaning set forth in Section 4.1(c).
"Due Diligence Materials Delivery Notice" shall have the meaning set forth in Section 4.2(b).
"Due Diligence Materials Review Period" shall have the meaning set forth in Section 4.2(b).
“Effective Date” shall mean the date set forth in the introductory paragraph of this Agreement.
“Environmental Reports” shall mean the reports obtained by Seller set forth at Exhibit E.
“Escrow Agent” shall mean the Title Company or another escrow agent agreed to by Seller and Purchaser.
“Exception Documents” shall mean true, correct and legible copies of each document listed as an exception to title in the Title Commitment.
“Existing Contracts” shall mean all contracts between Seller and any third party or parties listed and described on Exhibit J attached hereto pertaining to or necessary for the operation of the Property, including, but not limited to any agreements that encumber or benefit the Property, warranties, agreements with vendors or service providers, equipment leases, utility contracts, mortgages, or regulatory or other agreements with governmental authorities.
“Final Reconciliation” shall have the meaning set forth in Section 8.1(e).
“Gas Mart Land” shall mean the real property legally described on Exhibit A-2 attached hereto and made a part hereof, together with all of Seller's rights, titles, appurtenant interests, covenants, licenses, water rights, mineral rights, privileges and benefits thereunto belonging, and Seller's right, title and interest in and to any easements, right-of-way, rights of ingress or egress or other interests in, on or under any land, highway, street, road or avenue, open or proposed, in, on, across, in front of, abutting or adjoining such real property including, without limitation, any strips and gores adjacent to or lying between such real property and any adjacent real property.  Following completion of the Survey, the Parties agree that the legal description for the Gas Mart Land contained in the Survey, if different, shall be substituted for the legal description contained on Exhibit A-2 hereto.
“Gas Mart Property” shall mean the Gas Mart Land and any tangible personal property located thereon, any intangible personal property associated therewith, and any improvements located thereon, including, without limitation, landscaping, parking lots and structures, roads, drainage and all above ground and underground utility structures, equipment systems and other so-called “infrastructure” improvements.
“Government Action” shall have the meaning set forth in Section 10.19.

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“Hazardous Materials” shall mean (a) “hazardous substances” or “toxic substances” as those terms are defined by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”), 42 U.S.C. § 9601 et seq., or by the Hazardous Materials Transportation Act, 49 U.S.C. § 1802 et seq., all as now and hereafter amended; (b) “hazardous wastes”, as that term is defined by the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. § 6902 et seq., as now and hereafter amended; (c) any pollutant or contaminant or hazardous, dangerous or toxic chemicals, materials or substances with the meaning of any other applicable federal, state or local law, regulation, ordinance or requirement (including consent decrees and administrative orders) relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste substances or materials, all as now and hereafter amended; (d) petroleum including crude oil or any fraction thereof; (e) any radioactive material, including any source, special nuclear or by-product material as defined at 42 U.S.C. § 2011 et seq., as now and hereafter amended; (f) asbestos in any form or condition; and (g) polychlorinated biphenyl (“PCBs”) or substances or compounds containing PCBs.
“Hazardous Materials Law” shall mean any local, state or federal law relating to environmental conditions or industrial hygiene, including, without limitation, RCRA, CERCLA, as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), the Hazardous Materials Transportation Act, the Federal Waste Pollution Control Act, the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Safe Drinking Water Act, and all similar federal, state and local environmental statutes and ordinances and the regulations, orders, or decrees now or hereafter promulgated thereunder.
“Improvements” shall mean shall mean all buildings, improvements, structures and fixtures now or on the Closing Date located on the Land, including, without limitation, landscaping, parking lots and structures, roads, drainage and all above ground and underground utility structures, equipment systems and other so-called “infrastructure” improvements.
“Independent Consideration” shall have the meaning set forth in Section 3.1.
“Intangible Personal Property” shall have the meaning set forth in Section 2.1(j).
“Investigations” shall have the meaning set forth in Section 4.3.
“Land” shall mean (a) the Gas Mart Land, (b) the Toys "R" Us Land, (c) the Sandor Land (in the event the Sandor Land is acquired by Seller in accordance with Section 5.5(a)), and (d) the Seller's Land.
“Land Assemblage Tax Credit Act” shall mean the Distressed Areas Land Assemblage Tax Credit Act, Section 99.1205.1, Revised Statutes of Missouri, as amended.  
“Land Assemblage Tax Credits” shall mean the tax credits available pursuant to the Land Assemblage Tax Credit Act.  
“Leases” shall mean the leases listed on Exhibit B attached hereto.
"Leases and Contracts Delivery Notice" shall have the meaning set forth in Section 4.4(b).  
"Leases and Contracts Review Period" shall have the meaning set forth in Section 4.4(b).  

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“MDFB Tax Credits” shall mean tax credits for contribution as contemplated under the Missouri Development Finance Board Act, Sections 100.250, et seq., Missouri Revised Statutes, as amended, as more particularly set forth at Section 100.286(6), Missouri Revised Statutes, as amended.  
“Memorandum” shall have the meaning set forth in Section 10.18.
“MOU” shall have the meaning set forth in Section 5.3(j).
“Non-cash Security Deposits” shall have the meaning set forth in Section 8.1(d).
“Party” and “Parties” shall each have the meaning set forth in the introductory paragraph of this Agreement.
“Permitted Exceptions” shall mean those title exceptions which have been approved in writing by Purchaser, or are deemed to have been approved by Purchaser upon the expiration of the Review Period, but specifically excluding mortgages, deeds of trust, or other liens that can be released with the payment of money.
“Project” shall have the meaning set forth in Section 4.5(a).
“Permitted Tenants” shall mean the tenants under the Leases listed on Exhibit B.
“Property” shall mean the Land, the Improvements located thereon at Closing, any easements for the benefit of the Land, the Leases, Tangible Personal Property, Contracts and Intangible Personal Property, as more fully set forth in Article II hereof.
“Purchase Price” shall have the meaning set forth in Section 3.2.
“Review Period” shall mean a period commencing on the Effective Date and ending on December 27, 2013.
“Sandor Land” shall mean the real property legally described on Exhibit A-3 attached hereto and made a part hereof, together with all of Seller's rights, titles, appurtenant interests, covenants, licenses, water rights, mineral rights, privileges and benefits thereunto belonging, and Seller's right, title and interest in and to any easements, right-of-way, rights of ingress or egress or other interests in, on or under any land, highway, street, road or avenue, open or proposed, in, on, across, in front of, abutting or adjoining such real property including, without limitation, any strips and gores adjacent to or lying between such real property and any adjacent real property. Following completion of the Survey, the Parties agree that the legal description for the Sandor Land contained in the Survey, if different, shall be substituted for the legal description contained on Exhibit A-3 hereto.  
“Sandor Property” shall mean the Sandor Land and any tangible personal property located thereon, any intangible personal property associated therewith, and any improvements located thereon, including, without limitation, landscaping, parking lots and structures, roads, drainage and all above ground and underground utility structures, equipment systems and other so-called “infrastructure” improvements.
“Seller's Land” shall mean the real property currently owned by Seller legally described on Exhibit A-1 attached hereto and made a part hereof, together with all of Seller's rights, titles, appurtenant interests, covenants, licenses, water rights, mineral rights, privileges and benefits thereunto belonging, and Seller's right, title and interest in and to any easements, right-of-way, rights of ingress or egress or 

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other interests in, on or under any land, highway, street, road or avenue, open or proposed, in, on, across, in front of, abutting or adjoining such real property including, without limitation, any strips and gores adjacent to or lying between such real property and any adjacent real property.  Following completion of the Survey, the Parties agree that the legal description for the Seller's Land contained in the Survey, if different, shall be substituted for the legal description contained on Exhibit A-1 hereto.  
“State” shall mean the State of Missouri.
“State Supplemental TIF Documents” shall mean the State Supplemental Tax Increment Financing Program Application on file with the Missouri Department of Economic Development associated with the TIF Plan, and any certificate of approval relating to the same.
“Substitute MDFB Credits” shall have the meaning set forth in Section 4.5(e).
“Survey” shall mean a current ALTA/ACSM Land Title Survey of the Land prepared by Shafer, Kline, Warren, certified to ALTA requirements, at Seller's expense, which Survey shall be in a form and content acceptable to Purchaser.  Without limiting the generality of the foregoing, the Survey shall: (a) include a narrative legal description of the Land by metes and bounds (which shall include a reference to the recorded plat, if any), and a computation of the area comprising the Land in both acres and gross square feet (to the nearest one-thousandth of said respective measurement); (b) accurately show the location on the Land of all improvements (dimensions thereof at the ground surface level and the distance therefrom to the facing exterior property lines of the Land), building and set-back lines, parking spaces (including number of spaces), fences, evidence of abandoned fences, ponds, creeks, streams, rivers, officially designated 100-year flood plains and flood prone areas, canals, ditches, easements, roads, rights-of-way and encroachments; (c) accurately show the location of encroachments, if any, upon adjoining property, or from adjoining property, upon the Land; (d) be certified as of the date of the Survey to the Seller, the Purchaser, the Title Company, and any third-party lender designated by Purchaser; (e) legibly identify any and all recorded matters shown on said Survey by appropriate volume and page recording references; (f) show the location and names of all adjoining streets and the distance to the nearest streets intersecting the streets that adjoin the Land; and (g) be satisfactory to (and updated from time to time as may be required by) the Title Company so as to permit it to delete the standard exception for survey matters and replace it with an exception for the matters shown on the Survey.  The Survey shall include the following Table A items under the Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys effective February 23, 2011:  1, 2, 3, 4 (in square feet or acres), 6(b), 7(a), 7(b)(1), 7(c), 8, 9, 11(b), 13, 16, 17, 18, 19, 20(a), as well as any other Table A optional items that Purchaser shall reasonably determine are necessary based upon the information set forth in the Exception Documents, drafts of the Survey or the Due Diligence Materials.
“Tangible Personal Property” shall have the meaning set forth in Section 2.1(i).
“TIF Act” shall mean the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 through 99.865, Revised Statutes of Missouri, as amended.
“TIF Plan” shall the Three Trails District Tax Increment Financing Plan approved by the Commission on November 7, 2007, and approved by the City on December 13, 2007, pursuant to Committee Substitute Ordinance No. 071297, as such plan may be amended from time to time.
“Title Commitment” shall mean a current commitment or current commitments issued by the Title Company to the Purchaser pursuant to the terms of which the Title Company shall commit to issue 

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the Title Policy to Purchaser in accordance with the provisions of this Agreement, and reflecting all matters which would be listed as exceptions to coverage on the Title Policy.
“Title Company” shall mean First American Title Insurance Company.
“Title Policy” shall mean an ALTA Extended Coverage Owner's Policy (or policies) of Title Insurance (2006 unmodified form), or comparable State promulgated policies, with liability in the aggregate amount of the Purchase Price, dated as of the Closing Date, issued by the Title Company, insuring title to the fee interest in the Land as being vested in Purchaser, subject only to the Permitted Exceptions, with the following modifications:  (a) the standard exceptions shall be deleted; (b) the exception for survey matters and mechanics' liens shall be deleted and replaced by an exception for the matters shown on the Survey; (c) the exception for ad valorem taxes shall reflect only taxes for the current and subsequent years, not now due and payable; (d) any exception as to parties in possession shall be deleted except for the Permitted Tenants; (e) there shall be no general exception for visible and apparent easements not of record or roads and highways or similar items (with any exception for visible and apparent easements or roads and highways or similar items to be specifically referenced to and shown on the Survey and also identified by applicable recording information); and (f) the Title Policy shall include endorsements, at Seller's expense, for Contiguity, Access, Comprehensive, Tax Parcel, Deletion of Arbitration, and Same as Survey and such other endorsements as Purchaser, at Purchaser's expense, shall reasonably require.  Purchaser shall have the right to require that the Title Company provide contracts of reinsurance of the liability under the Title Policy with reinsurers acceptable to Purchaser if Purchaser determines in its sole discretion that the amount of liability retained by the Title Company or its underwriter exceeds an amount acceptable to Purchaser.
“Toys "R" Us Land” shall mean the real property legally described on Exhibit A-4 attached hereto and made a part hereof, together with all of Seller's rights, titles, appurtenant interests, covenants, licenses, water rights, mineral rights, privileges and benefits thereunto belonging, and Seller's right, title and interest in and to any easements, right-of-way, rights of ingress or egress or other interests in, on or under any land, highway, street, road or avenue, open or proposed, in, on, across, in front of, abutting or adjoining such real property including, without limitation, any strips and gores adjacent to or lying between such real property and any adjacent real property. Following completion of the Survey, the Parties agree that the legal description for the Toys "R" Us Land contained in the Survey, if different, shall be substituted for the legal description contained on Exhibit A-4 hereto.  
“Toys "R" Us Property” shall mean the Toys "R" Us Land and any intangible personal property associated therewith, and any improvements located thereon, including, without limitation, landscaping, parking lots and structures, roads, drainage and all above ground and underground utility structures, equipment systems and other so-called “infrastructure” improvements.
ARTICLE II
AGREEMENTS TO SELL AND PURCHASE
2.1     Agreement to Sell and Purchase Property.  On the Closing Date, subject to the performance by the Parties of the terms and provisions of this Agreement, Seller shall sell, convey, assign, transfer and deliver to Purchaser and Purchaser shall purchase, acquire and accept from Seller, for the Purchase Price therefor and subject to the terms and conditions of this Agreement, the following described property (collectively, the “Property”):
(a)    The Land.

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(b)    All rights and appurtenances pertaining to the Land, including any right, title and interest of any Seller in and to adjacent streets, alleys or rights-of-way.
(c)    The Improvements.
(d)    The Leases.
(e)    The Contracts.
(f)    All appliances, fixtures, equipment, machinery, tools, automobiles and other motorized vehicles, furniture, carpet, drapes and other personal property, if any, owned by Seller and located on or about the Land and the Improvements (the “Tangible Personal Property”), all of which are listed and described on Exhibit C attached hereto.
(g)    All intangible property (the “Intangible Property”), if any, owned by any Seller and pertaining to the Land, the Improvements, or the Tangible Personal Property including, without limitation, any security deposits under the Leases, transferable utility contracts, transferable telephone exchange numbers, plans and specifications, intellectual property, engineering plans and studies, floor plans and landscape plans.
ARTICLE III
PURCHASE PRICE
3.1    Independent Consideration.  Contemporaneous with the execution of this Agreement by Seller, Purchaser shall deliver to Seller a check in the amount of Fifty Thousand Dollars ($50,000.00) (the “Independent Consideration”) to be held by the Seller pursuant to the terms of this Agreement.  At the Closing, the Independent Consideration shall be applied toward the payment of the Purchase Price.  If Purchaser terminates this Agreement under any right granted to Purchaser hereunder, the Independent Consideration shall be retained by Seller, and the parties hereby agree that the Independent Consideration shall be retained by Seller in consideration of the rights of inspection and investigation granted herein.  If Seller terminates this Agreement under any right granted to Seller hereunder, the Independent Consideration shall be returned to Purchaser.
3.2    Purchase Price.  The Purchase Price shall be Forty-Five Million Five Hundred Thousand and No/100 Dollars ($45,500,000.00) (the "Purchase Price").  The Purchase Price shall be subject to reduction pursuant to Section 5.5(b).
3.3    Payment of Balance of Purchase Price.  The balance of the Purchase Price for the Property shall be delivered by Purchaser at the Closing, in immediately available funds, subject to adjustment as herein provided.
ARTICLE IV
ITEMS TO BE FURNISHED TO PURCHASER BY SELLER
		
	4.1
	Due Diligence Materials.  

(a)Within fifteen (15) days after the Effective Date, Seller shall deliver to Purchaser the Title Commitment and Exception Documents.
(b)Within twenty-five (25) days after the Effective Date, Seller shall deliver to Purchaser the Survey.  

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(c)Within ten (10) days after the Effective Date, Seller shall deliver to Purchaser, at Purchaser's address, for its review and/or copying, the following items respecting the Property to the extent such items are in the direct control of the Seller:
(i)Copies of any documents related to the development of the Property, including without limitation any documentation relating to economic development incentives, zoning, land use, or any agreements with any governmental bodies relating to the Property, if any;
(ii)Copies of tax statements or assessments for all real estate and personal property taxes assessed against the Property for the current and the two prior calendar years, if available;
(iii)Copies of any and all existing surveys, and any environmental studies or impact reports relating to the Property, if any, including without limitation, any Environmental Reports, and any approvals, conditions, orders or declarations issued by any governmental authority relating thereto (such studies and reports shall include, but not be limited to, reports indicating whether the Property is or has been contaminated by Hazardous Materials; 
(iv)Copies of any and all Leases;
(v)Copies of any and all Existing Contracts; and
(vi)Copies of any and all litigation files with respect to any pending litigation and claim files for any claims made or threatened, if any, the outcome of which might materially affect the Property or the use and operation of the Property, together with summaries and such other more detailed information as Purchaser may reasonably request with respect to any other pending litigation or claim the outcome of which might materially affect Seller or materially affect the Property (the foregoing items in Sections 4.1(c)(i) through 4.1(c)(vi), the Title Commitment, the Exception Documents and the Survey are hereinafter collectively referred to as the "Due Diligence Materials").
Purchaser acknowledges that the Land and Property are part of a multi-year, multi-parcel assemblage which involved numerous consultants and independent contractors engaged by the Seller and as such the Seller is not making any warranty as to the completeness or accuracy of the Due Diligence Materials (as herein defined) or any other items delivered, except that Seller hereby warrants and represents that Seller has delivered all of the Due Diligence Materials known to Seller without duty of inquiry.
		
	4.2
	Due Diligence Materials Review.  

(a)During the Review Period, Purchaser shall have the right and opportunity to review the Due Diligence Materials delivered or made available by Seller to Purchaser pursuant to the provisions of Section 4.1 above and all other materials or matters that Purchaser determines in its sole discretion that it should review.  
(b)Upon delivery of all Due Diligence Materials, Seller shall provide Purchaser written notice stating that to its knowledge, it has effectively delivered to Purchaser all Due Diligence Materials as required herein ("Due Diligence Materials Delivery Notice").  Purchaser shall have five (5) Business Days from the date of the Due Diligence Materials Delivery Notice 

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in which to notify Seller in writing of any Due Diligence Materials it reasonably believes Seller failed to deliver, and in such event, Seller shall have five (5) Business Days from the date of such notice to remedy any deficiencies and deliver a new Due Diligence Materials Delivery Notice.  Purchaser shall have sixty (60) days following the date of receipt of a satisfactory Due Diligence Materials Delivery Notice to conduct its review of the Due Diligence Materials (the "Due Diligence Materials Review Period").  Prior to the expiration of the Due Diligence Materials Review Period, Purchaser shall notify Seller in writing of any objections Purchaser has to any matters shown or referred to in the Due Diligence Materials.  Any matters which are set forth in the Due Diligence Materials and to which Purchaser does not object within the Due Diligence Materials Review Period shall be deemed to be Permitted Exceptions.  
(c)With regard to any matter to which Purchaser objects relating to Purchaser's review of the Due Diligence Materials during the Due Diligence Materials Review Period Seller agrees to use commercially reasonable efforts to resolve such objections, but Seller's costs associated with curing such objections shall not be required to exceed Twenty-Five Thousand Dollars ($25,000.00).  As to any matter Seller does not resolve, despite commercially reasonable efforts, Purchaser may either (i) waive its objections and close as otherwise contemplated in this Agreement, (ii) extend Seller's period for curing objections or satisfying requirements (but not beyond the Closing Date) or (iii) terminate this Agreement by written notice to Seller prior to the expiration of the Due Diligence Materials Review Period.
(d)With regard to any matter to which Purchaser objects during the Due Diligence Materials Review Period that constitute liens or other charges of an ascertainable amount, Seller will correct or cause to be released of record at or prior to the Closing any liens or other charges of an ascertainable amount, and if Seller fails to do so, Purchaser shall have the right to cause such matters to be paid at Closing and deducted from the amounts due to Seller at Closing.
		
	4.3
	Investigations.  

(a)During the Review Period, Purchaser and its agents and designees shall have the right and opportunity to examine the Property for the purpose of inspecting the same and making tests, inquiries and examinations, making soil analyses, conducting engineering and studies, core borings, drillings, surveys, environmental assessments and such other physical due diligence investigations and analyses in, on and to the Property as Purchaser deems necessary to ascertain the suitability of the Property for the intended development.  In addition, during the Review Period, Purchaser and its accountants, agents and designees shall have the right and opportunity of access to rent rolls and rent collections reports relating to the Property as may be necessary for the purpose of examining the same, and Seller shall cause its directors, employees, accountants, and other agents and representatives to cooperate fully with Purchaser in connection with such examinations (the investigations carried out pursuant to the terms set forth in this Section are hereinafter collectively referred to as the "Investigations").  Purchaser shall commence its Investigations promptly following the Effective Date.  
(b)With regard to any matter to which Purchaser objects in connection with its Investigations, Purchaser may either (a) waive such objections and close as otherwise contemplated in this Agreement or (b) terminate this Agreement by written notice to Seller prior to the expiration of the Review Period.  

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(c)Purchaser and Seller acknowledge and agree that the terms of this Agreement supersede the terms of the Access Agreement and that upon execution of this Agreement, the Access Agreement shall be terminated.
(d)Purchaser shall promptly at its sole cost and expense return all areas of the Property disturbed by the Investigations to its previous physical condition or as close thereto as reasonably possible.
		
	4.4
	Leases and Contracts.

(a)Within fifteen (15) days after the Effective Date, Seller shall deliver to Purchaser copies of all Leases and all of the Existing Contracts. 
(b)Upon delivery of all Leases and Existing Contracts, Seller shall provide Purchaser written notice stating that to its knowledge, it has effectively delivered to Purchaser all Leases and Existing Contracts as required herein ("Leases and Existing Contracts Delivery Notice").  Purchaser shall have five (5) Business Days from the date of the Leases and Existing Contracts Delivery Notice in which to notify Seller in writing of any Leases and Existing Contracts it reasonably believes Seller failed to deliver, and in such event, Seller shall have five (5) Business Days from the date of such notice to remedy any deficiencies and deliver a new Leases and Existing Contracts Delivery Notice.  Purchaser shall have sixty (60) days following the date of receipt of a satisfactory Leases and Existing Contracts Delivery Notice to conduct its review of the Leases and Existing Contracts (the "Leases and Existing Contracts Review Period").  Prior to the expiration of the Leases and Existing Contracts Review Period, Purchaser shall notify Seller in writing of any objections Purchaser has to any matters shown or referred to in the Leases or Existing Contracts.  
(c)With regard to any matter to which Purchaser objects relating to Purchaser's review of the Leases and Existing Contracts during the Leases and Existing Contracts Review Period Seller agrees to use commercially reasonable efforts to resolve such objections.  As to any matter Seller does not resolve, despite commercially reasonable efforts, Purchaser may either (a) waive its objections and close as otherwise contemplated in this Agreement, (b) extend Seller's period for curing objections or satisfying requirements (but not beyond the Closing Date) or (c) terminate this Agreement by written notice to Seller prior to the expiration of the Leases and Existing Contracts Review Period. 
		
	4.5
	Developmental Approvals.

(a)Seller understands that it is Purchaser's intent, following Closing, to redevelop the property for Purchaser's intended uses (collectively, the “Project”).
(b)During the Review Period, Purchaser may, at Purchaser's expense, diligently pursue the following:
(i)subdivision of the Land, including without limitation any required drainage or storm water management, building permits for the planned Project including approval for the construction of utilities, and any necessary governmental approval for access such as curb cuts or entrances and any wetlands or environmental approvals and permits;
(ii)re-zoning, site plan and development plan approvals;

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(iii)approval for the assignment, transfer and vesting of the Current Incentives in Purchaser;
(iv)amendment of the TIF Plan to Purchaser's satisfaction, including designation of Purchaser as the redeveloper under the TIF Plan and all necessary Commission and City approvals associated therewith;
(v)amendment of any agreements with any governmental bodies, including without limitation any agreements with the City or the Commission, relating to the TIF Plan, including all necessary Commission and City approvals associated therewith, or the agreement by the City to appropriate annually fifty percent (50%) of the City's economic activity taxes not deposited in the special allocation fund pursuant to the TIF Plan;
(vi)amendment of the documentation associated with the State Supplemental TIF Documents;
(vii)amendment of any agreements with any governmental bodies, including without limitation any agreements with the Missouri Department of Economic Development or other State agencies, relating to the State Supplemental TIF Documents, including all necessary governmental approvals associated therewith;
(viii)removal of the Land, or any portion thereof, from the boundaries of the CID or amendment of documentation and agreements related to the CID;
(ix)application for incentives offered under the BUILD Missouri Program or other similar State incentive programs;
(x)negotiation and procurement of any use restriction(s) and reciprocal easement agreement(s) (or amendments or terminations of any existing use restriction(s) or reciprocal easement agreement(s)) for purposes of (a) providing, modifying or terminating the terms of such easements and rights of way over the Property and over adjacent property as Purchaser may reasonably require for the development of the Property and the Project, (b) providing, modifying or terminating the terms of use restrictions for the Property and adjacent property; and
(xi)all appropriate municipal, county, State and federal authorities approvals necessary for the development and construction of the Project (the foregoing Subsections 4(b)(i) through (xi) shall collectively be referred to herein as the “Development Approvals”).
(c)During the Review Period, Purchaser may commence efforts, and thereafter diligently continue its efforts, to obtain any and all such Developmental Approvals at its own cost and expense.  Seller shall cooperate with Purchaser in this regard and shall, if requested to do so, execute such applications or requests, or subdivision plat, as may be necessary for the owner of the Property to execute, and to provide any information privy to, known to, or in possession of Seller which may be necessary or useful in completing applications, requests, or a legal subdivision of the Land. Purchaser shall endeavor to keep Seller reasonably apprised of Purchaser's efforts in regard to the Developmental Approvals.  Purchaser shall provide Seller copies of the initial application relating to each Developmental Approvals three (3) days prior 

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to Purchaser's submittal of any such documents to any governmental authorities.  Thereafter, Purchaser shall endeavor to provide Seller with copies of all applications, agreements, and related documentation associated with the Developmental Approvals concurrently with or within a reasonable time after submission thereof to the applicable governmental authorities, but in no event shall Purchaser's failure to do so constitute a default by Purchaser hereunder.
(d)Prior to the expiration of the Review Period, Purchaser shall deliver notice to Seller in writing of any Developmental Approvals that Purchaser does not wish to have assigned or transferred to Purchaser on the Closing Date.
(e)Purchaser acknowledges that Seller has been seeking (i) approval of an amendment to the Land Assemblage Tax Credit Act to enable Seller to receive Land Assemblage Tax Credits in order to reimburse Seller for certain of the costs incurred by Seller in Seller's acquisition, assemblage and holding of the Property, or (ii) approval by the State of MDFB Tax Credits, in lieu of Land Assemblage Tax Credits, in order to reimburse Seller for certain of the costs incurred by Seller in Seller's acquisition, assemblage and holding of the Property (such MDFB Tax Credits, if any, provided by the State in lieu of Land Assemblage Tax Credits are hereinafter referred to as the "Substitute MDFB Credits").  Seller shall have the right to continue to obtain the Land Assemblage Tax Credits or Substitute MDFB Credits following the Effective Date.  Notwithstanding anything to the contrary herein, if Seller shall obtain either Land Assemblage Tax Credits or Substitute MDFB Credits, Seller shall have a right to retain such Land Assemblage Tax Credits or Substitute MDFB Credits for its own account, and such Land Assemblage Tax Credits or Substitute MDFB Credits shall not be part of the Development Approvals, so long as (i) the total aggregate amount of such Land Assemblage Tax Credits or Substitute MDFB Credits does not exceed Ten Million and No/100 Dollars ($10,000,000.00), (ii) by their terms, the right to receive such Land Assemblage Tax Credits or Substitute MDFB Credits are not transferable by Seller except to Seller's shareholders or principals (provided, however, that this limitation shall not affect the transferability of such Land Assemblage Tax Credits or Substitute MDFB Credits following receipt by Seller), and (iii) the State confirms, in a manner satisfactory to Purchaser, that the issuance of such Land Assemblage Tax Credits or Substitute MDFB Credits to Seller shall not reduce or otherwise adversely affect any Development Approvals available to Purchaser, nor shall the issuance of such Land Assemblage Tax Credits or Substitute MDFB Credits to Seller impose any duties or obligations upon Purchaser or require any minimum performance standards or requirements of any kind, including without limitation requirements relating to number of jobs, wages or other compensation or capital investment, or the scheduled time for the commencement or completion of any activity or the timing of any employment or development activities.
ARTICLE V
REPRESENTATIONS, WARRANTEES, COVENANTS AND AGREEMENTS
5.1    Representations and Warranties of Seller.  To induce Purchaser to enter into this Agreement and to purchase the Property, Seller represents and warrants to Purchaser as follows:
(a)Seller has good, marketable, indefeasible and insurable right and title to the Property (other than the Gas Mart Property, the Toys "R" Us Property and the Sandor Property) free and clear of any deeds of trust, mortgages, liens, encumbrances, leases, tenancies, licenses, chattel mortgages, conditional sales agreements, security interests, covenants, conditions, restrictions, judgments, rights-of-way, casements, encroachments, claims and any other matters affecting title or use of the Property, except for any matters shown on the Title Commitment.

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(b)Seller has duly and validly authorized and executed this Agreement, and has full right, title, power and authority to enter into this Agreement and to consummate the transactions provided for herein, and the joinder of no person or entity will be necessary to convey all of the Property fully and completely to Purchaser at the Closing.  Seller is qualified to do business in the State.  The execution by Seller of this Agreement and the consummation by Seller of the transactions contemplated hereby do not, and at the Closing will not, result in a breach of any of the terms or provisions of, or constitute a default or a condition that upon notice or lapse of time or both would ripen into a default under, Seller's bylaws, operating agreement or certificate or articles of organization, any indenture, agreement or instrument or obligation to which Seller is a party or by which the Property or any portion thereof is bound; and does not constitute a violation of any laws, order, rule or regulation applicable to Seller or any portion of the Property of any court or of any federal, state or municipal regulatory body or administrative agency or other governmental body having jurisdiction over Seller or any portion of the Property.
(c)There are no third parties in possession of the Property or of any part thereof except for the Permitted Tenants.  Seller has not granted to any party any license, lease or other right relating to the use or possession of the Property.
(d)The Leases are the only leases affecting the Property, and have not been modified, changed, altered, superseded, supplemented or amended in any respect.
(e)There are no existing notices or claims of default that have been asserted against Seller as lessor under the Leases, and there are no events or conditions existing which, with or without notice or the lapse of time or both, could constitute a monetary or other default by Seller as lessor under the Leases, or entitle any of the Permitted Tenants to offsets or defenses against any of the Permitted Tenant's obligations under the Leases.
(f)To Seller's knowledge without duty of inquiry, there are no events or conditions existing which, with or without the giving of notice or the lapse of time or both, could constitute a monetary or other default by any of the Permitted Tenants under the Leases.
(g)To Seller's knowledge without duty of inquiry, Seller has not received any notice of any material default under any of the Existing Contracts. 
(h)There is no pending condemnation, eminent domain, assessment or similar proceeding or charge affecting the Property or any portion thereof, and to Seller's knowledge without duty of inquiry, no such proceeding or charge is contemplated.
(i)To Seller's knowledge without duty of inquiry, the location, construction, occupancy, operation and use of any building fully or partially occupied by any Permitted Tenant does not violate any applicable law, statute, ordinance, rule, regulation, order or determination of any governmental authority or any board of fire underwriters (or other body exercising similar functions), or any restrictive covenant or deed restriction (recorded or otherwise) affecting the Property or the location, construction, occupancy, operation or use thereof, including, without limitation, all applicable zoning ordinances and building codes, flood disaster laws and health and environmental laws and regulations.
(j)Seller has received no notice that the location, construction, occupancy, operation and use of the Property is in violation of any applicable law, statute, ordinance, rule, regulation, order or determination of any governmental authority or any board of fire underwriters (or other 

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body exercising similar functions), or any restrictive covenant or deed restriction (recorded or otherwise) affecting the Property or the location, construction, occupancy, operation or use thereof, including, without limitation, all applicable zoning ordinances and building codes, flood disaster laws and health and environmental laws and regulations.
(k)No work has been performed or is in progress at the Property under contract with Seller, and no materials will have been delivered to the Property under contract with Seller, that might provide the basis for a mechanics', materialmen's or other lien against the Property or any portion thereof, and all amounts due for such work and material shall have been paid and all discharged to Purchaser's satisfaction as of the Closing.  To Seller's knowledge without duty of inquiry, no work has been performed or is in progress at the Property, and no materials will have been delivered to the Property, that might provide the basis for a mechanics', materialmen's or other lien against the Property or any portion thereof.
(l)Seller is not in default, nor has there been any event or occurrence that will ripen into or constitute a default with notice or passage of time, under any of the covenants, conditions, restrictions, rights-of-way or easements affecting the Property or any portion thereof or under any of the Existing Contracts or Leases in any manner that would result in a material adverse effect on the Seller or the Property, and, to Seller's knowledge without duty of inquiry no other party to any of the foregoing is in default thereunder in a manner that would result in a material adverse effect on the Property.
(m)Seller has received no notice of default, under any of the covenants, conditions, restrictions, rights-of-way or easements affecting the Property or any portion thereof or under any of the Existing Contracts or Leases. 
(n)There are no actions, suits or proceedings pending or, to Seller's actual knowledge without duty of inquiry, threatened against or affecting the Property or any portion thereof, or relating to or arising out of the ownership or operation of the Property, or by any federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality.  
(o)There are no attachments, executions, or voluntary or involuntary proceedings in bankruptcy or under any other debtor relief laws existing or, to Seller's knowledge, pending or threatened against Seller or the Property.
(p)Except as otherwise set forth on Exhibit F hereto:
(i)No Hazardous Materials have been installed, used, generated, manufactured, treated, handled, refined, produced, processed, stored or disposed of, or otherwise present in, on or under the Property by Seller or, to Seller's knowledge without duty of inquiry, by any third party.  
(ii)No activity has been undertaken on the Property by Seller or, to Seller's knowledge without duty of inquiry, by any third party which would cause (a) the Property to become a hazardous waste treatment, storage or disposal facility within the meaning of, or otherwise bring the Property within the ambit of RCRA, or any Hazardous Materials Law, (b) a release or threatened release of Hazardous Materials from the Property within the meaning of, or otherwise bring the Property within the ambit of, CERCLA or SARA or any Hazardous Materials Law or (c) the discharge of Hazardous Materials into any 

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watercourse, body of surface or subsurface water or wetland, or the discharge into the atmosphere of any Hazardous Materials which would require a permit under any Hazardous Materials Law.  
(iii)No activity has been undertaken with respect to the Property by Seller or, to Seller's knowledge without duty of inquiry, any third party which would cause a violation or support a claim under RCRA, CERCLA, SARA or any other Hazardous Materials Law.  
(iv)No investigation, administrative order, litigation or settlement with respect to any Hazardous Materials is in existence with respect to the Property, nor, to Seller's knowledge without duty of inquiry, is any of the foregoing threatened.  
(v)No written notice has been received by Seller from any entity, governmental body or individual claiming any violation of any Hazardous Materials Law, or requiring compliance with any Hazardous Materials Law, or demanding payment or contribution for environmental damage or injury to natural resources.  
(vi)Seller has not obtained and, to Seller's knowledge, is not required to obtain, and Seller has no knowledge of any reason Purchaser will be required to obtain, any permits, licenses, or similar authorizations to occupy, operate or use the improvements or any part of the Property by reason of any Hazardous Materials Law.
(q)Except as set forth in Section 4.5(e), Seller has not requested or received reimbursement from any governmental agencies or authorities under the TIF Plan or the State Supplemental TIF Documents or with respect to any of the Current Incentives.
(r)The Existing Contracts are all of the contracts now in effect between Seller and any third party or parties pertaining to or necessary for the operation of the Property. 
(s)Pursuant to Section 99.810.1(3) of the TIF Act, the time allowed for approval by ordinance of any redevelopment projects under the TIF Plan and under any agreements related thereto began to run on December 13, 2007, with the City's adoption of Committee Substitute Ordinance No. 071297 approving the redevelopment plan under the amended and restated TIF Plan; the time allowed for approval by ordinance of any redevelopment projects under the TIF Plan does not relate back to the ordinance approving the redevelopment plan under the prior version of the TIF Plan approved in 2002.
(t)Purchaser acknowledges and agrees that such representations and warranties herein which are based solely on "Seller's knowledge” shall mean the actual knowledge of Cliff Illig and Neal Patterson with no duty of investigation or inquiry for the purpose of making these representations, prior to the execution of this Agreement.  Notwithstanding any contrary provision of this Agreement, in no event shall the foregoing individuals have any personal liability or obligation hereunder.
5.2    Seller Indemnification.  Seller hereby agrees to indemnify and defend, at its sole cost and expense, and hold Purchaser harmless from and against and to reimburse Purchaser with respect to any and all claims, demands, actions, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees and court costs) actually incurred of any and every kind or character, known or unknown, fixed or contingent, asserted against or incurred by Purchaser 

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at any time and from time to time by reason of or arising out of (a) the breach of any representation or warranty of Seller set forth in Section 5.1 or any breach by Seller of any of its covenants and agreements set forth in this Agreement; (b) the failure of Seller, in whole or in part, to perform any obligation required to be performed by Seller pursuant to Section 5.l. or any other part of this Agreement; or (c) the ownership, construction, occupancy, operation, use and maintenance by Seller or its agents of the Property prior to the Closing Date.  The provisions of this Article shall survive the Closing of the transaction contemplated by Section 2.1 of this Agreement and shall continue thereafter in full force and effect for the benefit of Purchaser, for a period of three (3) years.  Notwithstanding any provision of this Agreement to the contrary, Purchaser may exercise any right or remedy Purchaser may have at law or in equity should Seller fail to meet, comply with or perform its indemnity obligations required by this Section 5.2. Notwithstanding the foregoing Seller does not indemnify or hold Purchaser harmless from any injury, damages or claims resulting from Purchaser (or Purchaser's agents and representatives) actions. 
5.3    Covenants and Agreements of Seller.  Seller covenants and agrees with Purchaser, from the Effective Date until the Closing with respect to the Property or the earlier termination of this Agreement:
(a)Seller shall continue to operate the Property in the ordinary course, but shall consult with Purchaser and provide Purchaser with information concerning decisions involving the operation of the Property.  
(b)Seller shall not enter into any new leases or contracts with respect to the Property without the prior written consent of Purchaser that do not terminate at or prior to the Closing, nor shall Seller modify or amend any of the Leases or Contracts without prior written consent of Purchaser.
(c)Seller shall fully maintain and repair any buildings and parcels fully or partially occupied by any Permitted Tenant in compliance with all legal requirements and the terms of all Leases, and if Seller shall receive any notice that any part of the Property is in violation of any applicable law, statute, ordinance, rule, regulation, order or determination of any governmental authority or any board of fire underwriters (or other body exercising similar functions), or any restrictive covenant or deed restriction (recorded or otherwise) affecting the Property, Seller shall promptly cause such violation to be corrected.
(d)Seller shall maintain, or shall cause to be maintained, in full force and effect public liability insurance with respect to damage or injury to persons or property occurring on or relating to operation of the Property in commercially reasonable amounts.
(e)Seller shall maintain, or shall cause to be maintained, in full force and effect property insurance with respect to damage or casualty to the portions of the Property on which there are located Improvements that are occupied under the Leases, in commercially reasonable amounts sufficient to avoid the application of any coinsurance provisions in such insurance policies and, in any event, as required by the terms of the Leases.
(f)Seller shall pay, or shall cause to be paid, when due all bills and expenses of the Property.  Seller shall not enter into, subject the Property to, or assume any new agreements with regard to the Property, without the prior written consent of Purchaser.

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(g)Seller shall not create or permit to be created any liens, easements or other conditions affecting any portion of the Property or the uses thereof, without the prior written consent of Purchaser.
(h)Except as set forth in Section 4.5(e), Seller shall not request reimbursement under the TIF Plan, the State Supplemental TIF Documents or any of the Current Incentives.
(i)Seller may apply for Land Assemblage Tax Credits, MDFB Tax Credits or any incentives offered under the BUILD Missouri Program, but except as set forth in Section 4.5(e) with respect to Land Assemblage Tax Credits and the Substitute MDFB Credits, Seller shall not receive any credits or incentives offered under said programs. 
(j)The Parties acknowledge that the Property is currently located within the CID and that the Seller has entered into that certain Memorandum of Understanding dated December 1, 2012, with the CID (the "MOU") which obligates Seller to petition the City to remove the Property from the CID contingent upon the approval by the City of a petition to create a new community improvement district including the Property.  Seller shall utilize commercially reasonable efforts to (i) remove the Property from the CID, and (ii) amend the MOU to allow the Property to be released from the CID without the creation of a new community improvement district.  
(k)Seller agrees to use commercially reasonable efforts to negotiate and execute the appropriate applications and agreements to receive and monetize the Substitute MDFB Credits and to satisfy the conditions precedent to Seller's obligations set forth in Section 6.3.
5.4    Acquisition of Gas Mart Property and Toys "R" Us Property.  Seller shall acquire, without cost to Purchaser, fee simple title to the Gas Mart Property and the Toys "R" Us Property prior to Closing.  Seller shall indemnify and hold Purchaser harmless from and against any and all claims of any seller arising under any purchase contract for the purchase of any of the Gas Mart Property or the Toys "R" Us Property.  The Parties acknowledge that as of the Effective Date, Seller has entered into certain contracts giving Seller the right to purchase the Gas Mart Property and the Toys “R” Us Property.  Seller shall perform its obligations under such contracts, but the obligation to acquire such properties as stated in this Agreement shall be contingent upon the sellers under such contracts proceeding to close and convey title to Seller pursuant to such contracts.  Seller shall use commercially reasonable efforts to cause specific performance of such contracts, but shall not be deemed to be in default of this Agreement due to a failure to deliver the Gas Mart Property or the Toys “R” Us Property arising from a default by the Seller under the respective purchase contracts for such properties.
5.5    Acquisition of Sandor Property.  
(a)Seller shall utilize reasonable efforts to acquire, without cost to Purchaser, fee simple title to the Sandor Property prior to Closing.  Seller shall indemnify and hold Purchaser harmless from and against any and all claims of any seller arising under any purchase contract the Seller, or any party that Seller controls, that controls Seller or that is under common control with Seller, enters into for the purchase of the Sandor Property.  
(b)If Seller fails to acquire fee simple title to the Sandor Property prior to Closing, then the Purchase Price shall automatically be reduced by Three Million and No/100 Dollars ($3,000,000.00), and Seller shall be released from all obligations of Seller set forth in Section 

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5.5(a) and all further obligations of Seller with respect to the Sandor Property under this Agreement.
5.6    Demolition Work.  Within sixty (60) days following the Effective Date, Seller shall commence or shall cause to be commenced, at Seller's cost and expense the demolition activities with respect to the portions of the Property identified on Exhibit K (the “Demolition Work”).  The Demolition Work shall at minimum include (i) the demolition and removal from the Property of any improvements and all alterations, fixtures, machinery and equipment located upon the portions of the Property identified on Exhibit K, (ii) the capping of any utility lines affected by the Demolition Work; (iii) the removal from the Property of all debris and refuse associated with the Demolition Work; and (iv) the restoration of all parcels affected by the Demolition Work to a neat, orderly condition, consistent with all applicable laws (the "Demolition Work").  The Demolition Work shall be completed prior to Closing. Seller shall indemnify and hold Purchaser harmless from and against any and all claims, including all mechanics', materialman's or similar liens, arising under the Demolition Work.  The Parties hereby acknowledge that Seller's obligation to complete the Demolition Work prior to Closing shall be subject to reasonable excusable delays for instances including, but not limited to, weather or instances in which Seller has not acquired title to the property underlying a portion of the Demolition Work in a time sufficient to allow completion of the Demolition Work prior to Closing.  In that event that any portion of the Demolition Work is not complete prior to Closing, Seller agrees to deliver into escrow a sum that is two hundred percent (200%) of the costs of such portion of the Demolition Work, as reasonably agreed by the Parties.  If Seller has not completed any portion of the Demolition Work on or before the date that is sixty (60) days after Closing, the sums in escrow pursuant to this Section shall be released to Purchaser, and Seller shall be relieved of its obligation under this Agreement to complete that portion of the Demolition Work.  
5.7    Representations and Warranties of Purchaser.  To induce Seller to enter into this Agreement and to sell the Property, Purchaser represents and warrants to Seller as follows:
(a)Purchaser has duly and validly authorized and executed this Agreement, and has full right, title, power and authority to enter into this Agreement and to consummate the transactions provided for herein, and the joinder of no person or entity will be necessary to purchase the Property from Seller at Closing.
(b)There are no actions, suits or proceedings pending, or to the actual knowledge of Purchaser, threatened, before or by any judicial body or any governmental authority, against Purchaser which would affect in any material respect Purchaser's ability to proceed with the transaction contemplated by this Agreement.
(c)Seller acknowledges and agrees that such representations and warranties herein which are based solely on the “actual knowledge” shall mean the actual knowledge of Marc G. Naughton and Randy D. Sims, with no duty of investigation or inquiry with other necessary third parties, for the purpose of making these representations, prior to the execution of this Agreement.  Notwithstanding any contrary provision of this Agreement, in no event shall the foregoing individuals have any personal liability or obligation hereunder.
ARTICLE VI
CONDITIONS TO OBLIGATIONS
6.1    Conditions to Purchaser's Obligations.  The obligations of Purchaser to purchase the Property from Seller and to consummate the transactions contemplated by this Agreement are subject 

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to the satisfaction, at all times prior to and as of the Closing with respect to the Property (or such other time period specified below), of each of the following conditions:
(a)Seller shall have obtained fee simple title to the Gas Mart Property and the Toys "R" Us Property, each free and clear of any liens or material defects. 
(b)All of the representations and warranties of Seller set forth in this Agreement shall be true and correct at and as of, the Closing; provided however, with regard to the representation and warranty contained in Section 5.1(a), Seller shall have good, marketable, indefeasible and insurable right and title to the Property, including the Gas Mart Property and the Toys "R" Us Property (and the Sandor Property, if the Sandor Property is acquired by Seller in accordance with Section 5.5(a)), free and clear of any deeds of trust, mortgages, liens, encumbrances, leases, tenancies, licenses, chattel mortgages, conditional sales agreements, security interests, covenants, conditions, restrictions, judgments, rights-of-way, casements, encroachments, claims and any other matters affecting title or use of the Property, except for the Permitted Exceptions.  If Seller shall acquire title to the Sandor Property prior to Closing as set forth in Section 5.5(a), then all of the representations and warranties of Seller set forth in this Agreement shall be true and correct at and as of, the Closing; provided however, with regard to the representation and warranty contained in Section 5.1(a), Seller shall have good, marketable, indefeasible and insurable right and title to the Property, including the Gas Mart Property and the Toys "R" Us Property (and the Sandor Property if the Sandor Property is acquired by Seller in accordance with Section 5.5(a)), free and clear of any deeds of trust, mortgages, liens, encumbrances, leases, tenancies, licenses, chattel mortgages, conditional sales agreements, security interests, covenants, conditions, restrictions, judgments, rights-of-way, casements, encroachments, claims and any other matters affecting title or use of the Property, except for the Permitted Exceptions.  
(c)Seller shall have executed and delivered, all of the items, instruments and documents required by this Agreement to be executed or delivered, by it prior to, or as of, the Closing, and Seller shall have performed, observed, satisfied and complied with all of the covenants, agreements and conditions required by this Agreement to be performed, observed or satisfied or complied with by it prior to, or as of, the Closing.
(d)Seller shall not be in receivership or dissolution or have made any assignment for the benefit of creditors, or admitted in writing its inability to pay its debts as they mature, or have been adjudicated a bankrupt, or have filed a petition in voluntary bankruptcy, a petition or answer seeking reorganization or an arrangement with creditors under the federal bankruptcy law or any other similar law or statute of the United States or any state and no such petition shall have been filed against it.
(e)No material or substantial adverse change shall have occurred with respect to the condition, financial or otherwise, of the Property.
(f)Neither the Property nor any part thereof or interest therein shall have been taken by execution or other process of law in any action prior to Closing, nor shall any action or proceeding seeking any such taking be threatened or pending.
(g)The condition of the Property shall not have materially changed from the state it existed in on the date the Review Period expired or was waived.

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(h)Seller shall have delivered to Purchaser a legal opinion of Seller's attorney in a form satisfactory to Purchaser as to the matters set forth in Subsection 5.1(s).
(i)Purchaser shall have secured all Developmental Approvals and any governmental approvals in such amounts, and upon such terms and conditions, as Purchaser shall determine, in its sole and subjective discretion, to be necessary or desirable.
(j)Purchaser shall have received final approval of its board of directors to consummate the transactions contemplated by this Agreement.
(k)The MOU shall have been amended to allow the Property to be released from the CID without the creation of a new community improvement district.
(l)The Property shall have been removed the CID.  
(m)The Demolition Work shall be completed to Purchaser's reasonable satisfaction, free and clear of any mechanics', materialman's or similar liens.
6.2    Failure of Conditions to Purchaser's Obligations.  In the event any one or more of the conditions to Purchaser's obligations are not satisfied or waived in whole or in part at any time prior to or as of the Closing, Purchaser, at Purchaser's option, shall be entitled to:  (a) terminate this Agreement with regard to the Property by giving written notice thereof to Seller, whereupon Purchaser shall have no further obligations or liabilities hereunder; or (b) proceed to Closing hereunder.  Notwithstanding the foregoing, to the extent that Purchaser shall elect not to proceed to Closing hereunder with respect to the Property, Purchaser will deliver all of the Due Diligence Materials regarding such Property, at the direction of Seller.
6.3    Conditions to Seller's Obligations.  The obligations of Seller to sell the Property to Purchaser and to consummate the transactions contemplated by this Agreement are subject to the satisfaction of each of the following conditions within sixty (60) days of the Effective Date: 
(a)Issuance by the Missouri Development Finance Board and receipt by Seller of the Substitute MDFB Credits in the amount of Ten Million and No/100 Dollars ($10,000,000.00); and 
(b)Seller entering into a binding and non-conditional tax credit purchase and sale agreement with a financial institution or other third party with the following terms:
(i)The transaction will result in net tax credit sale proceeds being paid to Seller of not less than Nine Million and No/100 Dollars ($9,000,000.00); and
(ii)Such tax credit purchase and sale agreement shall provide for closing of the sale of the Substitute MDFB Credits, and funding of the purchase price for the Substitute MDFB Credits, prior to or concurrently with Closing.
6.4    Failure of Conditions to Seller's Obligations.  If the conditions to Seller's obligations set forth in Section 6.3 are not satisfied or waived within sixty (60) days following the Effective Date, Seller, at Seller's option, shall be entitled to terminate this Agreement by giving written notice thereof to Purchaser, whereupon Seller shall have no further obligations or liabilities hereunder except as set forth herein.  If Seller shall fail to give Purchaser written notice of its election to terminate as provided herein, then Seller's right to terminate hereunder shall be null and void.

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ARTICLE VII
PROVISIONS WITH RESPECT TO THE CLOSING
7.1    Seller's Closing Obligations.  At the Closing with respect to the Property, Seller shall furnish and deliver to the Purchaser, at Seller's expense, the following:
(a)The Deed, Bill of Sale, Certificate of Non-Foreign Status in the form set forth at Exhibit I, Closing Certificate, and the Assignment and Assumption of Leases, each document being duly executed and acknowledged by the applicable Seller and in recordable form, where appropriate, in the state and county in which the Property is located, and acceptable to Purchaser.
(b)The Title Policy.
(c)Such assignments, agreements or other documentation necessary to effectuate assignment of the Developmental Approvals, and all necessary approvals of such assignment by all governmental authorities as Purchaser shall determine to be necessary.
(d)Such affidavits or letters of indemnity from Seller as the Title Company shall reasonably require in order to omit from the Title Policy all exceptions for unfilled mechanics', materialman's or similar liens and rights of parties in possession.
(e)A letter advising the Permitted Tenants under the Leases of the change in ownership of the premises and directing them to pay rent to Purchaser or as Purchaser may direct in a form and substance reasonably satisfactory to Purchaser.
(f)Releases sufficient to discharge of record any mortgages, deeds of trust, or other liens affecting the Property.
(g)Any assignable bonds, warranties or guaranties which are in any way applicable to the Property or any part thereof.
(h)All keys for the Property, including without limitation keys for maintenance areas, storage rooms and equipment, with the identification of the lock to which each key relates.
(i)Such instruments or documents as are necessary, or reasonably required by Purchaser or the Title Company, to evidence the status and capacity of Seller and the authority of the person or persons who are executing the various documents on behalf of Seller in connection with the transaction contemplated hereby.
(j)The originals of all of the Leases (to the extent available, and if unavailable, copies certified by Seller to be true, complete and correct).  Purchaser shall receive a credit against the Purchase Price for the fully funded tenant security deposits, and other deposits under the Leases.
(k)The originals of all of the Contracts (to the extent available, and if unavailable, copies certified by Seller to be true, complete and correct), together with such notices to all parties to such Contracts as shall be necessary or desirable to cause all such Contracts to be transferred to Purchaser.

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(l)An updated listing of all Existing Contracts together with a certification signed by Seller, certifying that the updated list of Existing Contracts set forth in Exhibit J is complete and accurate in all respects.
(m)A rent roll for the Property, updated as of the Closing Date, together with a certification signed by Seller, certifying that to Seller's knowledge the rent roll is complete and accurate in all respects.
(n)Such notices to service providers, manufacturers of equipment and personal property transferred pursuant to this transaction, and utility companies providing utility services to the Property, and any party to any other Contract (to the extent required by any such Contract or deemed appropriate by Purchaser) as shall be necessary or desirable to cause all applicable warranties and Contracts to be transferred to Purchaser, provided that Purchaser shall notify Seller of its requirements for such notices prior to the expiration of the Review Period.
(o)Seller shall furnish a certification in the form attached hereto as Exhibit H that all representations and warranties contained in this Agreement remain true and correct as of the Closing Date; provided however, with regard to the representation and warranty contained in Section 5.1(a), Seller shall have good, marketable, indefeasible and insurable right and title to the Property, including the Gas Mart Property and the Toys "R" Us Property (and if acquired by Seller prior to the Closing Date, the Sandor Property), free and clear of any deeds of trust, mortgages, liens, encumbrances, leases, tenancies, licenses, chattel mortgages, conditional sales agreements, security interests, covenants, conditions, restrictions, judgments, rights-of-way, casements, encroachments, claims and any other matters affecting title or use of the Property, except for the Permitted Exceptions.  If Seller fails to acquire the Sandor Property pursuant to Section 5.5(b), then the certification provided for herein shall be modified to exclude the Sandor Property.  
(p)Signed statements or notices to all Permitted Tenants, notifying the Permitted Tenants that the Property has been transferred to Purchaser and that Purchaser is responsible for security deposits, if any (specifying the amounts of such deposits).
(q)Such other and further documents and instruments, to be signed by Seller, as Purchaser may reasonably deem necessary in order to carry out the transaction contemplated by this Agreement.
7.2    Purchaser's Closing Obligations.  At the Closing with respect to the Property, Purchaser shall furnish and deliver to Seller, at Purchaser's expense, the following:
(a)Immediately available collected funds payable to the order of Seller representing the Purchase Price due in accordance with Section 3.2 hereof.
(b)The Assignment and Assumption of Leases, Closing Certificate and Certificate of Non-Foreign Status duly executed and acknowledged by Purchaser.
(c)Such instruments or documents as are necessary, or reasonably required by Seller or the Title Company, to evidence the status and capacity of Purchaser and the authority of the person or persons who are executing the various documents on behalf of Purchaser in connection with the transaction contemplated hereby.

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(d)Purchaser shall furnish a certification in the form attached hereto as Exhibit H that all representations and warranties contained in this Agreement remain true and correct as of the Closing Date.
7.3    Additional Closing Provision.  If Closing has not occurred by December 31, 2013, then either Party may, at its sole discretion, terminate this Agreement upon ten (10) days prior written notice to the other Party, provided that the Party proposing to terminate the Agreement is not in default of this Agreement beyond any applicable cure periods.
ARTICLE VIII
EXPENSES OF CLOSING
8.1    Adjustments.  Statements of prorations and other adjustments shall be prepared by Seller in conformity with the provisions of this Agreement and submitted to Purchaser for review and approval not less than five (5) Business Days prior to the Closing Date.  For purposes of prorations, Purchaser shall be deemed the owner of the Property on the Closing Date.  In addition to the prorations and other adjustments that may otherwise be provided for in this Agreement, the following items are to be prorated or adjusted, as the case may require, as of the Closing Date:
(a)Except as otherwise specifically provided in Section 8.1(b) hereof, all real estate  and personal property taxes, (except for special assessments), water or sewer charges, gas, electric, telephone or other utilities, operating expenses, or other normally proratable items, shall be prorated between Seller and Purchaser as of the Closing Date on the basis of the last ascertainable bills and invoices (and re-prorated upon receipt of the actual bills or invoices) unless in the case of utilities, final meter readings can be obtained.  Seller and Purchaser shall notify all providers of utility services to the Property of the Closing and request that such providers bill Seller for all costs incurred up to the Closing Date and bill Purchaser for all costs incurred on and after the Closing Date.  To the extent practicable, Seller shall cause meters for utilities to be read not more than one (1) Business Day prior to the Closing Date.
(b)Seller shall pay all real estate taxes and all special assessments, of whatever kind, accruing against the Property prior to the year in which the Closing occurs.  All real estate taxes, sewer rents and taxes, or any other governmental tax or charge, levied or assessed against the Property for the year in which the Closing occurs (irrespective of when such taxes, assessments and charges are due and payable), except for any installments of special assessments, it being agreed that payment in full of such special assessments shall be the responsibility of Seller, shall be prorated between Purchaser and Seller as of the Closing Date.  If the precise amount of taxes or other charges to be prorated hereunder for the year in which the Closing occurs cannot be ascertained on the Closing Date, proration shall be computed on the basis of the taxes other charges to be prorated hereunder payable for the year preceding the year in which the Closing occurs, with readjustment to be made as soon as reasonably practicable after the actual assessed valuation and the actual rate are determined.
(c)The rent payable by the Permitted Tenants under the Leases shall be prorated between Seller and Purchaser as of the Closing Date, with Purchaser to receive a credit for all rents (including expense “pass throughs” or common area maintenance charges paid on a periodic basis after Closing), whether collected or uncollected by Seller, for the month during which Closing occurs.  Purchaser shall cause all rent and all other sums which are due and payable to Seller for the period prior to Closing by any Permitted Tenant but uncollected as of the Closing (including expense “pass throughs” or common area maintenance charges paid on a periodic 

24

basis after Closing), to be remitted to Seller after the completion of the Final Reconciliation (hereinafter defined) to be completed by Purchaser, if, as and when collected (provided Seller's share of rent collected by Purchaser for the month of Closing (less any and all reasonable costs and expenses, including reasonable attorneys' fees, incurred by Purchaser in the collection thereof) shall be remitted by Purchaser to Seller within five (5) Business Days of Purchaser's receipt thereof, and not after the Final Reconciliation has been completed), and if received by Seller after Closing, Seller shall remit to Purchaser its share thereof, if any.  Purchaser will make a commercially reasonable effort for three (3) months following Closing to collect such sums (but in no event shall Purchaser be obligated to bring a legal claim therefor) however, Seller shall retain the right to collect such sums itself, including the right to bring a legal claim therefor.  At Closing, Seller shall deliver to Purchaser a schedule of all rent, charges and other amounts payable by Permitted Tenants for the month in which the Closing occurs, and in a separate disclosure, all delinquent rents owed for months prior to Closing, and any amount due and owing to Seller before the Closing by Tenants under the Leases which are unpaid on the Closing Date, or if the exact amount of such payment is not ascertainable at that time, a statement describing what such payment is to be made for (such amounts are collectively referred to herein as the “Delinquent Amounts”).  Notwithstanding the foregoing or any direction from Permitted Tenants to the contrary, rental and other payments received by Purchaser from Permitted Tenants shall first be applied toward Purchaser's actual costs of collection (including reasonable attorneys' fees), then toward the payment of rent and other charges for the month of Closing, and thereafter toward the payment of rent and other charges owed to Purchaser for periods after the Closing, and any excess monies received shall be applied toward the payment of Delinquent Amounts.  Purchaser may not waive any Delinquent Amounts or modify a Lease so as to reduce amounts or charges owed under Leases for any period in which Seller is entitled to receive a share of charges or amounts, without first obtaining the written consent of Seller.  With respect to Delinquent Amounts owed by Permitted Tenants that are no longer tenants of the Property as of the Closing Date, Seller shall retain all rights relating thereto.
(d)The full amount of security deposits paid under the Leases, and not theretofore applied by Seller prior to Closing in accordance with the Lease (unless such amount has been replaced by the Tenant), together with interest thereon to the extent any interest is required by law or otherwise to be paid to such Permitted Tenants, shall be delivered by Seller to Purchaser on the Closing Date, or alternatively, Purchaser shall receive a credit against the Purchase Price for the amounts of such security deposits.  If and to the extent that Seller has, prior to Closing, applied any portion of any security deposits in accordance with any Lease, Seller shall provide to Purchaser, not less than five (5) Business Days prior to the Closing Date, an accounting of all such security deposits so applied.  Seller shall indemnify and hold Purchaser harmless from and against any and all claims of any Tenant with respect to any such application of any security deposit of any Tenant by Seller prior to Closing.  After the Review Period, Seller will not apply any security deposits to any obligations of any Permitted Tenant, even if permitted by the terms of such Permitted Tenant's Lease, and if Seller shall apply any security deposits to any obligations of any Permitted Tenant prior to the expiration of the Review Period, Seller will provide written notice of any such application to Purchaser prior to the expiration of the Review Period.  Seller shall use commercially reasonable efforts to cause an applicable Permitted Tenant to replenish such amounts of a security deposit so applied if required under the applicable Lease.  In the event any security deposits are provided in the form of a letter of credit or guaranty (the “Non-cash Security Deposits”), the Non-cash Security Deposits shall be transferred to Purchaser at Closing by way of assignment or other appropriate method, and Seller shall be responsible for the payment of all transfer fees, if any, in connection therewith.  Furthermore, in the event there is a delay in 

25

the transfer of the Non-cash Security Deposits at Closing (for administrative reasons or otherwise), Seller agrees to escrow at Closing cash in an amount equal to the amount of Non-cash Security Deposits which are not transferred at Closing, which escrowed amounts shall be held and applied in the manner that the Non-cash Security Deposits are to be applied until such Non-cash Security Deposits are transferred to Purchaser.
(e)Any proration which must be estimated at Closing shall be re-prorated and finally adjusted as soon as practicable after the Closing Date with any refunds payable to Seller or Purchaser to be made as soon as practicable; otherwise all prorations shall be final.  Purchaser shall, as soon as is reasonably practicable, complete a reconciliation of operating expenses for the year 2013 incurred with respect to the operation of the Property (the “Final Reconciliation”).  Seller shall furnish to Purchaser any operating expense information for the year 2013 which is compiled before the Closing Date.  Any final prorations to be based upon the Final Reconciliation shall be settled between Seller and Purchaser within thirty (30) days after the completion of the Final Reconciliation.  Amounts on deposit with utility companies shall not be prorated; provided, however, that promptly following the Closing, Purchaser shall substitute its own deposit for any amounts on deposit with utility companies and shall refund to Seller any portion of Seller's deposit which is refunded by the utility company.  The rights, covenants and obligations contained in this Section 8.1(e) shall survive the Closing.
8.2    Closing Costs.  In addition to all other costs and expenses which are required to be paid by the Parties pursuant to other provisions of this Agreement, the costs of Closing shall be allocated as follows:
	
			
	Purchaser
	Cost/Expense
	Seller

	 
	Seller's legal, accounting and other professional fees and expenses and the cost of all opinions, certificates, instruments, documents and papers required to be delivered by Seller hereunder, including without limitation, the cost of performance by Seller of its obligations hereunder
	X

	X
	Purchaser's legal, accounting and other professional fees and expenses and the cost of all opinions, certificates, instruments, documents and papers required to be delivered by Seller hereunder, including without limitation, the cost of performance by Seller of its obligations hereunder
	 

	 
	Title examination fees and premiums for the Title Commitment and Title Policy in the amount of the Purchase Price
	X

	 
	Survey, as revised
	X

	X
	Cost of any Environmental Report
	 

	 
	Applicable state and local transfer taxes or fees, if any
	X

	 
	Charges for or in connection with the recording and/or filing of any instrument or document provided herein or contemplated by this Agreement or any agreement or document described or referred to herein
	X

	1⁄2
	Title Company closing or escrow charges
	1⁄2

8.3    Commissions/Broker's Fees.  Seller hereby represents and warrants to Purchaser that it has not taken any action that would result in any real estate broker's, finder's or other fees being due or payable to any party with respect to the transaction contemplated hereby.  Purchaser hereby represents and warrants to Seller that Purchaser has not contacted any real estate broker, finder or any other party in connection with this transaction contemplated hereby, and that it has not taken any action that would result in any real estate broker's, finder's or other fees being due or payable to any party with respect to 

26

the transaction contemplated hereby, or being due and payable by Seller with respect to any subsequent sale, lease, purchase or other transaction by Purchaser with respect to all or any portion of the Property.  Each Party hereby indemnifies and agrees to hold the other Party harmless from any loss, liability, damage, cost or expenses (including reasonable attorneys' fees) resulting to such other Party by reason of a breach of the representation and warranty made by such Party herein.  Notwithstanding anything to the contrary herein, any commission or broker fee due to Lane 4 Property Group or any affiliated party shall be paid by Seller.
ARTICLE IX
DEFAULT AND REMEDIES
9.1    Seller's Default; Purchaser's Remedies.
(a)Seller's Default.  Seller shall be deemed to be in default hereunder upon the occurrence of one of the following events: (i) any of Seller's warranties or representations set forth herein shall be untrue in any respect when made or at Closing; or (ii) Seller shall fail to meet, comply with, or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement, which, in either of such events, is not cured by Seller within ten (10) days following receipt by Seller of written notice of default from Purchaser, unless such default cannot with due diligence be wholly cured within such period, in which case Seller shall have such longer period as shall be reasonably necessary to cure the default.
(b)Purchaser's Remedies.  In the event Seller shall be deemed to be in default hereunder, Purchaser may, at Purchaser's sole option: (i) terminate this Agreement by written notice delivered to Seller on or before the Closing whereupon Purchaser shall have no further rights or obligations hereunder; or (ii) enforce specific performance of this Agreement against Seller including Purchaser's reasonable costs and attorneys' fees and court costs in connection therewith.
9.2    Purchaser's Default; Seller's Remedies.
(a)Purchaser's Default.  Purchaser shall be deemed to be in default hereunder upon the occurrence of one of the following events: (i) any of Purchaser's warranties or representations set forth herein shall be untrue in any respect when made or at Closing; or (ii) Purchaser shall fail to meet, comply with, or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement which, in either of such events, is not cured by Purchaser within ten (10) days following receipt by Purchaser of written notice of default from Seller, unless such default cannot with due diligence be wholly cured within such period, in which case Purchaser shall have such longer period (not to exceed forty-five (45) days from the date of notice of the default) as shall be reasonably necessary to cure the default.
(b)Seller's Remedies. In the event that Purchaser shall be deemed to be in default hereunder, Seller may (i) terminate this Agreement by written notice to Purchaser, and retain the Independent Consideration as liquidated damages (the parties recognizing that it would be extremely difficult to ascertain the extent of actual damages caused by Purchaser's breach, and that said amount represents as fair an approximation of such actual damages as the parties can now determine), or (ii) enforce specific performance of this Agreement against Seller including Purchaser's reasonable costs and attorneys' fees and court costs in connection therewith.

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ARTICLE X
MISCELLANEOUS
10.1    Survival.  All of the representations, warranties, covenants, agreements and indemnities of Seller and Purchaser contained in this Agreement, unless otherwise specified, shall survive the Closing for a period of five (5) years from the Closing Date and shall not merge upon the acceptance of the Deed by Purchaser.
10.2    Assignment.  Without Purchaser's prior written consent, Seller will not assign all or any of its interest under this Agreement.  Notwithstanding the foregoing, Seller may assign its right to receive the Purchase Price under this Agreement, provided that any such assignment shall not constitute a release of Seller from its obligations under this Agreement.  Purchaser may assign its rights under this Agreement, provided that any such assignment shall not constitute a release of Purchaser from its obligations under this Agreement.
10.3    Notices.  All notices, requests and other communications under this Agreement shall be in writing and shall be either (a) delivered in person, (b) sent by certified mail, return-receipt requested, or (c) delivered by a recognized delivery service as follows:
	
			
	If intended for Purchaser:
	 
	Cerner Property Development, Inc.
c/o Cerner Corporation
2800 Rock Creek Parkway
Kansas City, Missouri  64117-2551
Attention:  Chief Financial Officer

	 
	 
	 

	With a copy to:
	 
	Cerner Corporation
2800 Rock Creek Parkway, Suite 601
Kansas City, Missouri  64117-2551
Attention:  Chief Legal Officer

	 
	 
	 

	And with a copy to:
	 
	Stinson Morrison Hecker LLP
1201 Walnut, Suite 2900
Kansas City, Missouri  64106
Attention: David W. Frantze, Esq.

	 
	 
	 

	If intended for Seller:
	 
	Trails Properties II, Inc.
11150 Overbrook, Suite 210
Leawood, KS  66211
Attention: Karen Virgillito

	 
	 
	 

	With a copy to:
	 
	Polsinelli PC
700 W. 47th Street, Suite 1000
Kansas City, Missouri  64112
Attention: F. Chase Simmons, Esq.

or at such other address, and to the attention of such other person, as the parties shall give notice as herein provided.  A notice, request and other communication shall be given as follows: (i) if delivered in person, upon the date of delivery or refusal to accept delivery, (ii) if by a recognized overnight delivery service one Business Day following deposit with such overnight delivery service with overnight delivery charges paid, or (iii) if sent by certified mail, return-receipt requested, with postage prepaid three (3) Business Days following such deposit; provided that if a notice, request or other communication is served by hand on a day which is not a Business Day, or after 5:00 P.M. (recipient's local time) on any 

28

Business Day at the addressee's location, such notice or communication shall be deemed to be duly received by the recipient at 9:00 A.M. on the first Business Day thereafter.
10.4    Casualty.
(a)If, at any time after the Effective Date and prior to Closing or earlier termination of this Agreement, the Property or any portion thereof are destroyed or damaged by fire or any other casualty (a “Casualty”), Seller shall give written notice of each such Casualty to Purchaser promptly after the occurrence of such Casualty, and, if the cost to repair the damage resulting from such Casualty would equal or exceed One Hundred Thousand and No/100 Dollars ($100,000.00) or such Casualty would otherwise materially impair the value of the Property, Purchaser shall have the right to elect, by providing written notice to Seller within thirty (30) days after Purchaser's receipt of written notice of such Casualty, to (i) terminate this Agreement in its entirety, or (ii) proceed to Closing, without terminating this Agreement, in which case Seller shall (A) provide Purchaser with a credit against the Purchase Price in an amount equal to the lesser of: (y) the applicable insurance deductible plus any uninsured amount of the repair or restoration cost, and (z) the reasonable estimated costs for the repair or restoration of the Property required by such Casualty, and (B) transfer and assign to Purchaser all of Seller's right, title and interest in and to all proceeds from all casualty, business interruption, lost profits, and other applicable insurance policies maintained by any Seller with respect the Property (except those proceeds specifically payable in connection with and allocable to business interruption and lost profits and costs incurred by any Seller for the period prior to the Closing) to the extent assignable, and if such proceeds are not assignable, Purchaser shall receive a credit against the Purchase Price at Closing in an amount equal to the amount of such proceeds. If the Closing is scheduled to occur within Purchaser's thirty (30) day election period, the Closing Date shall, upon Purchaser's election, be postponed until the date which is five (5) Business Days after the expiration of such thirty (30) day election period.
(b)Notwithstanding anything to the contrary contained herein, if at any time after the Effective Date and prior to Closing, a Casualty occurs with respect to any building fully or partially occupied by any Permitted Tenant, Seller shall promptly notify Purchaser in writing of such Casualty and shall comply with the casualty provisions of the Lease of such Permitted Tenant.  If such Lease may be terminated as a result of the Casualty, then Seller shall, concurrently with Seller's notice of Casualty, notify Purchaser of such right to terminate such Lease and Purchaser shall have the right to elect, by providing written notice to Seller within the timeframes allowed under the Lease, to cause Seller to (i) terminate the Lease in its entirety; or (ii) to comply with the terms of the Lease with respect to the Casualty.  In the event the Lease is not terminated and under the terms of the Lease Seller is to make repairs to the premises demised by such Lease, Purchaser shall have the right to delay Closing until such repairs are completed, and the Closing shall be conditioned upon written confirmation from such Permitted Tenant (including delivery from such Permitted Tenant to Purchaser of an estoppel certificate, in form acceptable to Purchaser) that such repairs were satisfactorily completed and such Lease are in full force and effect.  Seller shall indemnify and defend, at its sole cost and expense, Purchaser, its successors and assigns, for any and all claims, demands, actions, causes of action, losses, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees and court costs) actually incurred of any and every kind or character, known or unknown, fixed or contingent, asserted against or incurred by Purchaser at any time and from time to time by reason of or arising out of any repairs performed after the Effective Date and prior to Closing under any casualty provisions of any Leases.

29

10.5    Entire Agreement; Modifications.  This Agreement, together with the other documents, instruments and agreements heretofore or hereinafter entered into in connection with the transactions contemplated herein, embody and constitute the entire understanding between the Parties with respect to the transactions contemplated herein, and all prior or contemporaneous agreements, understandings, representations and statements (oral or written) are merged into this Agreement.  Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the Party against whom the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.
10.6    Captions.  The captions in this Agreement are inserted for convenience of reference only and in no way define, describe, or limit the scope or intent of this Agreement or any of the provisions hereof.
10.7    Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and assigns.
10.8    Time is of the Essence.  With respect to all provisions of this Agreement, time is of the essence.  However, if the first date of any period which is set out in any provision of this Agreement falls on a day which is not a Business Day, then, in such event, the time of such period shall be extended to the next day which is a Business Day.
10.9    Waiver of Conditions.  Any Party may at any time or times, at its election, waive any of the conditions to its obligations hereunder, but any such waiver shall be effective only if contained in a writing signed by such Party that states specifically (a) the condition being waived (identified by reference to the Section of this Agreement containing such condition) and (b) the express intent of such Party to make such waiver.  No waiver by a Party of any breach of this Agreement or of any warranty or representation hereunder by the other Party shall be deemed to be a waiver of any other breach by such other Party (whether preceding or succeeding and whether or not of the same or similar nature), and no acceptance of payment or performance by a Party after any breach by the other Party shall be deemed to be a waiver of any breach of this Agreement or of any representation or warranty hereunder by such other Party, whether or not the first Party knows of such breach at the time it accepts such payment or performance.  No failure or delay by a Party to exercise any right it may have by reason of the default of the other Party shall operate as a waiver of default or modification of this Agreement or shall prevent the exercise of any right by the first Party while the other Party continues to be so in default.
10.10    Confidentiality.  Except as hereinafter provided, from and after the execution of this Agreement, Seller and Purchaser shall keep this Agreement and the contents hereof confidential and shall not disclose the contents hereof except (if and to the extent reasonably necessary) to their respective attorneys, accountants, engineers, surveyors, financiers, bankers and other parties necessary for the consummation of the contemplated transactions and except to the extent any such disclosure is reasonably necessary in connection with the enforcement of the right of a Party hereunder or is required to be disclosed by Purchaser under the rules and regulations of the Securities and Exchange Commission.
10.11    Attorneys' Fees.  In the event suit is brought or an attorney is retained by any party to this Agreement to enforce the terms of this Agreement or to collect for the breach hereof or for the interpretation of any provision herein in dispute, the prevailing Party shall be entitled to recover, in addition to any other remedy, reasonable attorneys' fees, court costs, costs of investigation and other related expenses incurred in connection therewith.  If suit is commenced, attorneys' fees shall be fixed by the court.

30

10.12    Remedies Cumulative.  Except as herein expressly set forth, no remedy conferred upon a Party by this Agreement is intended to be exclusive of any other remedy herein or by law provided or permitted, but each shall be cumulative and shall be in addition to every other remedy given herein or now or hereafter existing at law, in equity or by statute.
10.13    Terminology.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The words “herein”, “hereof”, “hereunder” and similar terms shall refer to this Agreement unless the context requires otherwise.  Whenever the context so requires, the neuter gender includes the masculine and/or feminine gender, and the singular number includes the plural and vice versa.
10.14    Estoppel.  Each Party confirms and agrees that (a) it has read and understood all of the provisions of this Agreement; (b) it is an experienced real estate investor and is familiar with major sophisticated transactions such as that contemplated by this Agreement; (c) it has negotiated with the other Party at arm's length with equal bargaining power; and (d) it has been advised by competent legal counsel of its own choosing.
10.15    Joint Preparation.  This Agreement (and all exhibits thereto) is deemed to have been jointly prepared by the Parties hereto, and any uncertainty or ambiguity existing herein, if any, shall not be interpreted against any Party, but shall be interpreted according to the application of the rules of interpretation for arm's-length agreements.
10.16    Counterparts.  This Agreement may be executed in counterparts, and it is agreed that such counterpart signatures, when assembled into a single document with multiple signature pages, shall be binding upon and enforceable against the parties hereto to the same extent as if all signatures were set forth on the same copy of this Agreement.  Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be as effective as delivery of a manually executed counterpart of this Agreement.  In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart signed by the Party against whom enforcement is sought.
10.17    Joint and Several Liability.  In the event that the Seller consists of more than one individual or entity, the liabilities and obligations of each party constituting the Seller shall be the joint and several obligations of each such party.
10.18    Recording.  This Agreement shall not be recorded. At Purchaser's request, the Parties will execute a memorandum of this Agreement (“Memorandum”) which Memorandum shall, at Purchaser's request, be recorded in the public land records for Jackson County, Missouri, promptly following Purchaser's request.
10.19    Cooperation and Support.  Seller shall fully cooperate with Purchaser, and shall use reasonable efforts to cause its agents, representatives and contractors to cooperate with Purchaser, including the execution of all documents reasonably necessary, should Purchaser pursue or request approval of any of the following (collectively “Governmental Actions”) with respect to the Property: (a) rezoning or subdivision applications, (b) site plans, development plans and preliminary plans, including without limitation any amendments to or revisions of any such plans, (c) creation of any benefit, development or special assessment district, including without limitation any transportation development district or other special financing district, or (d) a request for governmental assistance or development incentives, including without limitation the Developmental Approvals set forth in Section 4.5 hereof.  Seller hereby covenants and agrees that it will not oppose, and will as requested offer its support for and endorsement of, all Governmental Actions sought by Purchaser or any assignee from 

31

time to time.  The covenants and agreements set forth in this Section 10.19 shall survive any termination or expiration of this Agreement, or any closing of the transactions contemplated herein.
10.20    Press Releases.  Seller and Purchaser each agree that, except to the extent otherwise provided herein and except to the extent that it is legally required to issue any public statement or release, prior to the Closing it will not make any public statement, including without limitation, any press release, with respect to this Agreement and the transactions contemplated hereby without the prior written approval of the other party, which approval shall not be unreasonably withheld or delayed.
10.21    Legal Description Refinement.  Notwithstanding the legal description set forth on Exhibit A, the Parties acknowledge that the legal description and approximate dimensions of the subject property herein set forth may contain minor inaccuracies, may not be complete, or may lack definition which can only be provided through a survey.  The Parties agree that such legal description and dimensions of the subject property shall be subject to refinement, correction or completion, based on a plat or Survey made subsequent to the date of this Agreement, and/or further investigation of the title, before as well as a after the Closing of this transaction.  This provision shall survive the Closing.
[The remainder of the page intentionally left blank.  Signature pages follow.]

32

EXECUTED to be effective as of the Effective Date.
	
		
	 
	SELLER:
TRAILS PROPERTIES II, INC.,
a Missouri corporation
/s/ Clifford W. Illig                                 
By: Clifford W. Illig                               
Its: President                                           

PURCHASER:

CERNER PROPERTY DEVELOPMENT, INC.,
a Delaware corporation
/s/ Marc G. Naughton                             
By: Marc G. Naughton                           
Its: President                                           

EXHIBIT A-1
The Seller's Land
Properties Owned by 3 Trails Acquisition II, LLC, a Missouri Limited Liability Company

34

35

36

37

38

39

40

Properties Owned by Bannister Partners II, LLC, a Missouri Limited Liability Company

41

42

43

44

Properties Owned by Trails Properties II, Inc., a Missouri Corporation

45

46

47

48

49

50

51

52

53

54

Additional Properties Owned by Trails Properties II, Inc., a Missouri Corporation

55

56

EXHIBIT A-2
The Gas Mart Land
“TRACT C-2” OF THE CERTIFICATE OF SURVEY FOR LOT SPLIT, TRACT C, BENJAMIN PLAZA SECOND PLAT, a subdivision in Kansas City, Jackson County, Missouri, (Said Certificate of Survey having been recorded on March 13, 1991, as Document No. K-962389, in Book S-3, at Page 85) said “TRACT C-2” being more particularly described as follows:
All that part of TRACT C, BENJAMIN PLAZA SECOND PLAT, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, being more particularly described as follows:
Commencing at the most Northerly corner of Tract C of said BENJAMIN PLAZA SECOND PLAT, thence Southwesterly along the Westerly line of said Tract C, being also the Easterly right-of-way line of Hillcrest Road, as now established, having an initial tangent bearing of South 43 degrees 40 minutes 49 seconds West, a radius of 1845 feet and a central angle of 1 degree 44 minutes 07 seconds, an arc distance of 55.88 feet to the Point of Beginning of the tract of land to be herein described; thence Northeasterly, Easterly and Southeasterly along a curve to the right and no longer along said Easterly right-of-way line, having an initial tangent bearing of North 80 degrees 44 minutes 45 seconds East, a radius of 40 feet and a central angle of 73 degrees 37 minutes 49 seconds an arc distance of 51.40 feet, thence continuing Southeasterly along a curve to the right, having a common tangent with the last described curve, a radius of 230 feet and a central angle of 27 degrees 51 minutes 54 seconds, an arc distance of 111.86 feet; thence South 4 degrees 15 minutes 50 seconds West: tangent to the last described curve, 33.19 feet; thence Southeasterly, Southerly, and Southerly along a curve to the right, tangent to the last described course, having a radius of 100 feet and a central angle of 26 degrees 13 minutes 19 seconds, an arc distance of 45.77 feet; thence South 37 degrees 14 minutes 29 seconds West, tangent to the last described curve, 55.56 feet; thence Southwesterly along a curve to the right, tangent to the last described course, having a radius of 85 feet and a central angle of 55 degrees 00 minutes 00 seconds, an arc distance of 81.59 feet; thence North 87 degrees 45 minutes 31 seconds West, tangent to the last described curve, 145.12 feet to a point on the Easterly right-of-way line of said Hillcrest Road, being also a point on the Westerly line of said Tract C; thence Northeasterly along said Easterly right-of-way line and said Westerly line, having an initial tangent bearing of North 31 degrees 12 minutes 37 seconds East, a radius of 1845 feet and a central angle of 10 degrees 44 minutes 05 seconds, an arc distance of 345.68 feet to the Point of Beginning.

57

EXHIBIT A-3
The Sandor Land
Lot 1, Benjamin Plaza, Third Plat, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof.

58

EXHIBIT A-4
The Toys "R" Us Land

59

EXHIBIT B
The Leases
1.    Lease Agreement between BP Development, L.P., a Delaware limited partnership and Burlington Coat Factory Warehouse of Benjamin KC, Inc. dated September 23, 1993.  
2.    A month-to-month tenancy pursuant to that certain Lease between BP-SP Associates, L.L.C., a Missouri limited liability company, and Sei K. Oh, an individual, dated March 26, 2003.  
3.    A month-to-month tenancy pursuant to that certain Commercial Lease Contract between Trails Properties II, Inc. and Transformed Barber & Cosmetology Academy, LLC effective April 1, 2009, as amended by that certain Amendment to Commercial Lease Contract dated March 1, 2012.  
4.    A month-to-month tenancy pursuant to that certain Lease between BP Development, L.P., a Delaware limited partnership, and Funco, Inc., a Minnesota corporation, dated October 10, 1994, as amended by that certain Lease Extension and Modification Agreement between BP Development, L.P., a Delaware limited partnership, and Funco, Inc., a Minnesota corporation, dated August 28, 1997, as extended by a certain Letter dated June 27, 2000, as modified by a certain Letter dated January 13, 2003, as amended by that certain Second Lease Modification and Extension Agreement between BP-SP Associates, LLC, a Missouri limited liability company, and Gamestop, Inc., a Minnesota corporation.
5.    A month-to-month tenancy pursuant to that certain Commercial and Industrial Lease Agreement between Specialty Restaurants Corporation and Ranch Entertainment Incorporated, a Missouri corporation, dated December 28, 2005.  
6.    License Agreement between Trails Properties, II, Inc. and Kansas City Area Transportation Authority.  
7.    Recycling Center Site Agreement between Bannister Partners, LLC and Kansas City, Missouri dated November 2007.

60

EXHIBIT C
Tangible Personal Property
None.

61

EXHIBIT D
BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS, that as of this ___ day of _________, 201__ (the “Effective Date”) ________________, a _______________ __________________ (hereinafter, “Seller”), for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration to it in hand paid by _____________________, a __________________ _____________________ (“Purchaser”), do by these presents severally GRANT, SELL, ASSIGN, TRANSFER, CONVEY, and DELIVER unto the said Purchaser all of their respective right, title and interest in and to the following described property, rights, and interests (such property, rights and interests being hereinafter collectively referred to as “Personal Property”), located on or about, used in connection with the operation of, or otherwise affiliated with that certain land described on Exhibit 1, and attached hereto and incorporated herein for all purposes, or the buildings, improvements, structures and fixtures thereon (such land, buildings, improvements, structures and fixtures being hereinafter collectively referred to as the “Real Property”):
[To be conformed prior to Closing to provisions of Agreement]
1.    all development rights, options, rights of first refusal, easements, licenses, operational agreements or other such rights benefitting the Real Property;
2.    all permits, licenses, approvals, entitlements and other governmental, quasi-governmental and nongovernmental authorizations including, without limitation, certificates of use and occupancy, required in connection with the ownership, planning, development, construction, use, operation or maintenance of the Real Property;
3.    all leases, contract rights, rights as a lender under loan agreements or mortgagee under mortgages, easements, covenants, restrictions or other agreements or instruments affecting all or a portion of the Real Property;
4.    all other rights and intangible property or any interest therein now or on the Closing Date owned or held by Seller in connection with the Real Property, including all rights, claims and causes of action, water rights and reservations, rights to use trade names, trademarks and service marks applicable to the Real Property, the books and records of Seller applicable to the Real Property and Seller's operations thereon, Seller's business and operating licenses for the facilities on the Real Property, easements and zoning rights related to the Real Property, or any part thereof;
5.    all warranties and guaranties with respect to the Real Property or Personal Property, whether express or implied, including all warranties and guaranties of the Improvements and Personal Property by general contractors, subcontractors, suppliers and manufacturers which Seller now holds or under which Seller is the beneficiary, to the extent the same are assignable by Seller;
6.    all site plans, surveys, soil and substrata studies, architectural drawings, plans and specifications, engineering plans and studies, floor plans, landscape plans, Americans with 

62

Disabilities Act compliance reports, environmental reports and studies, professional inspection reports, construction and/or architect's reports or certificates, feasibility studies appraisals, and other similar plans and studies in the possession or control of Seller that relate to the Real Property or the Personal Property, to the extent same are transferable by Seller;
7.    all items of tangible personal property located on or about, used in connection with the operation of, or otherwise affiliated with the Real Property, including but not limited to those items described on Exhibit 2, attached hereto and incorporated herein for all purposes, or equal or better replacements therefor now or on the Closing Date owned by Seller.
TO HAVE AND TO HOLD the Personal Property so transferred above unto the said Purchaser, its successors and assigns, forever, and Seller does hereby bind itself and its successors to warrant and forever defend, all and singular, title to the said Personal Property unto the said Purchaser, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof.
The agreements herein set forth shall be binding upon and shall inure to the benefit of Seller and Purchaser and their respective successors and assigns.
Seller and Purchaser agree that all personal property hereby transferred shall be transferred as is and where is without warranty of merchantability or fitness for any particular purpose.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

63

IN WITNESS WHEREOF, the parties hereto have caused this Bill of Sale and Bill of Sale to be executed by its duly authorized officers effective as of date aforesaid.
	
	
	SELLER:
________________________, a _________________ _________________
By:
Name:
Title:
PURCHASER:
________________________, a _________________ ________________
By:
Name:
Title:

64

EXHIBIT 1
TO BILL OF SALE
Legal Description

65

EXHIBIT 2
TO BILL OF SALE
Items of Tangible Personal Property

66

EXHIBIT E

Environmental Reports
		
	1.
	Phase I Environmental Site Assessment; 9100 Old Santa Fe Road; April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	2.
	Phase I Environmental Site Assessment; Benjamin Plaza East, 9111  9251 Hillcrest Road (Vacant Land); April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	3.
	Phase I Environmental Site Assessment; Benjamin Plaza West, 8938  9120 Hillcrest Road; April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	4.
	Phase I Environmental Site Assessment; Benjamin Ranch, 6401 E. 87th Street; May 29, 2009; prepared by Underground Environmental Services, Inc.

		
	5.
	Phase I Environmental Site Assessment; Former Blockbuster, 9400 Hillcrest Road, April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	6.
	Phase I Environmental Site Assessment; Former Boater's World/Petsmart, 9317  9321 Hillcrest Road, April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	7.
	Phase I Environmental Site Assessment; Former Conoco/Wal-Mart; 9005  9051 Hillcrest Road, April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	8.
	Phase I Environmental Site Assessment; Former Bannister Mall (including Sears, Dillards, J C Penney, Jones Store) 5600 E. Bannister Road; February 5, 2009; prepared by Underground Environmental Services, Inc.

		
	9.
	Phase I Environmental Site Assessment; Former Fire Station; 5700 E. Bannister Road; April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	10.
	Phase I Environmental Site Assessment; Former Red Lobster; 5630 E. Bannister Road; February 5, 2009; prepared by Underground Environmental Services, Inc.

		
	11.
	Phase I Environmental Site Assessment; International House of Pancakes; 8932 Hillcrest Road; April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	12.
	Phase I Environmental Site Assessment; Transformed Cosmetology Academy; 5720 E. Bannister Road; April 6, 2009; prepared by Underground Environmental Services, Inc.

		
	13.
	Phase I Environmental Site Assessment; Two Commercial Buildings; 5540 and 5620 E. Bannister Road; November 10, 2010; prepared by Kingston Environmental Companies.

67

		
	14.
	Pre-Demolition Asbestos Inspection; Parcel D Sites - Former Bannister Mall Sites; July 31, 2008; prepared by Underground Environmental Services, Inc.

		
	15.
	Pre-Demolition Asbestos Survey of Parcels B1-B16 (incorrectly referred to in the document as the “Parcel D properties”); Underground Environmental Services, Inc.

		
	16.
	NESHAP Inspection for Demolition; Vacant Commercial Building & McDonalds 5540 and 5620 E Bannister Road; November 10, 2010; prepared by Kingston Environmental Companies.

		
	17.
	Letter Report of Findings - Post Abatement Visual Inspection Summary; Former Sears Building - Bannister Mall; January 24, 2009; prepared by Underground Environmental Services, Inc.

		
	18.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - Party Barn; November 2, 2007; prepared by ACT.

		
	19.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - Arena Ticket Office; November 2, 2007; prepared by ACT.

		
	20.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - House; November 2, 2007; prepared by ACT.

		
	21.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - Ranch Cafe; November 2, 2007; prepared by ACT.

		
	22.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - Santa Fe Hall; November 2, 2007; prepared by ACT.

		
	23.
	Asbestos-Containing Material Survey Report; Benjamin Ranch - Stage, Petting Farm Stable, Mx Shop Barn, Hay Barn, JC Main Building; November 2, 2007; prepared by ACT.

		
	24.
	Asbestos-Containing Material Survey Report; Old Hypermart, Hillcrest Drive; August 17, 2007; prepared by ACT.

		
	25.
	Analytical Results from Asbestos-Containing Material Sampling Events; Jones Store; June 25, 2008; prepared by ACT.

		
	26.
	Analytical Results from Asbestos-Containing Material Sampling Events; Dillards; April 28, 2008; prepared by ACT.

		
	27.
	Analytical Results from Asbestos-Containing Material Sampling Events; Red Lobster; August 3, 2007; prepared by ACT.

		
	28.
	Analytical Results from Asbestos-Containing Material Sampling Events; Fire Station; June 17, 2008; prepared by ACT.

68

		
	29.
	Analytical Results from Asbestos-Containing Material Sampling Events; Barber/Beauty School; June 17, 2008; prepared by ACT.

		
	30.
	Pre-Demolition Asbestos Inspection, Benjamin Plaza West & East Shops & Select Out Structures, Kansas City, Missouri; February 6, 2008; prepared by Underground Environmental Services, Inc.

		
	31.
	13-0123 Environmental Report Summary - Environmental Site Assessment; Bannister Asbestos Summary

		
	32.
	12-0917 Asbestos Abatement Parcel Map

		
	33.
	12-0917 Phase 1 Completed Parcel Map

		
	34.
	Phase I Environmental Site Assessment; Benjamin Plaza East Out-Parcels (Former Tippin's, Men's Shoes, National Tire & Battery, Darryl's) 9101-9211 Hillcrest Road; May 19, 2009; prepared by Underground Environmental Services, Inc.

		
	35.
	Letter dated January 31, 2013 from Construction and Abatement Services regarding asbestos Waste Manifest, including Non-Hazardous Waste Manifests for 9400 Hillcrest Road, and 5700 East Bannister Road, and Waste Shipment Records for 5540 Bannister Road and Bannister Mall.   

		
	36.
	Letter dated March 23, 2007 regarding 5600/5630 Bannister Road; prepared by Underground Environmental Services, Inc.

		
	37.
	Letter dated August 17, 2007 regarding Former Red Lobster Building 5360 Bannister Rd. Kansas City, MO from Underground Environmental Services, Inc.

		
	38.
	Letter dated August 17, 2007 regarding Former Wal-Mart Store #1484 9051 Hillcrest Rd. Kansas City, MO 64138 & Former Gasoline Station 9005 Hillcrest Rd.  Kansas City, MO 64138 from Underground Environmental Services, Inc.

		
	39.
	Letter dated November 9, 2007 regarding Benjamin Stables 87th& Hillcrest Rd. Kansas City, MO 64138 & Cameron Property S.W.C of 91st Street & Winchester Ave Kansas City, MO 64138 from Underground Environmental Services, Inc.

		
	40.
	Letter dated January 22, 2008 regarding Former Toys-R-Us & Babies R-Us-Building 9110-9120 Hillcrest Rd Kansas City, MO 64138 from Underground Environmental Services, Inc.

		
	41.
	Letter dated February 13, 2008 regarding Former Boater's World Building 9317 Hillcrest Rd Kansas City, MO 64138 from Underground Environmental Services, Inc.

		
	42.
	Letter dated March 6, 2008 regarding Benjamin Plaza West 8938-9110 Hillcrest Rd. Kansas City, MO from Underground Environmental Services, Inc.

69

		
	43.
	Letter dated March 6, 2008 regarding IHOP 8932 Hillcrest Rd. Kansas City, MO from Underground Environmental Services, Inc.

		
	44.
	Letter dated March 6, 2008 regarding Benjamin Plaza East  9115-9251 Hillcrest Rd. Kansas City, MO from Underground Environmental Services, Inc.

		
	45.
	Letter dated March 6, 2008 regarding Retail Buildings-Benjamin Plaza East 9101/9145/9211 Hillcrest Rd Kansas City, MO from Underground Environmental Services, Inc.

		
	46.
	Letter dated June 18, 2008 regarding Former Fire Station 5700 Bannister Road Kansas City, MO from Underground Environmental Services, Inc.

		
	47.
	Letter dated June 18, 2008 regarding Retail Building (Former Blockbuster) 9400 Hillcrest Road Kansas City, MO from Underground Environmental Services, Inc.

		
	48.
	Letter dated June 18, 2008 regarding Retail Building (Former Beauty School) 5720 Bannister Road Kansas City, MO from Underground Environmental Services, Inc.

70

EXHIBIT F

Matters Relating Hazardous Materials and the Property

None.

71

EXHIBIT G

Form of Estoppel Certificate
TENANT ESTOPPEL CERTIFICATE

THIS TENANT ESTOPPEL CERTIFICATE (“Certificate”) is made as of this _____ day of _______, 20__, with respect to that certain _______________ dated ____________ (the “Lease”) by and between ______________ (“Tenant”) and ______________ (“Landlord”) for the premises therein described (the “Leased Premises”):

1.Attached hereto as Exhibit A is a true, correct and complete copy of the Lease.  To Tenant's knowledge, the Lease is in full force and effect, has not been modified, amended, added onto, extended or renewed, and to Tenant's knowledge is binding upon, and enforceable against, Tenant in accordance with its terms.

2.As of the date hereof, neither Tenant is not in breach of, or in default under, the Lease, and to Tenant's knowledge, (a) Landlord is not in breach of, or in default under, the Lease, and (b) there is (i) no event or condition which, with the passage of time or the giving of notice or both, would constitute a breach or default by Tenant or Landlord under the Lease or (ii) no claims by third parties against Landlord relating to the Leased Premises, or their respective uses.

3.Neither Tenant nor, to Tenant's knowledge, Landlord has commenced any action, or received any notice, with respect to the termination of the Lease. Tenant's interest in the Lease has not been assigned, pledged or encumbered by Tenant, Tenant has accepted and is in full and complete possession of the Leased Premises, and no part of the Leased Premises has been sublet by Tenant.

4.There are no actions, whether voluntary or otherwise, pending against the undersigned and/or any guarantor of the undersigned's obligations under the Lease pursuant to the bankruptcy or insolvency laws of the United States or any state thereof and, to the best knowledge of the undersigned, none have been threatened.

5.Tenant has not entered into any agreement to pay any real estate broker in connection with the leasing of the Leased Premises to Tenant.

6.Tenant acknowledges that all construction required to be performed by Landlord under the Lease has been fully completed in a manner satisfactory to Tenant, and that payment of any tenant allowance or similar up-front sum from Landlord has been made in full.

7.The term of the Lease commenced on _________ ___, ____ and expires _________ ___, 20__ (the "Expiration Date").  The current monthly base rent Tenant is obligated to pay under the Lease is $____________. Tenant has no offsets, defenses, or claims in connection with said rent. 

72

8.Tenant has no rights or options to purchase the Leased Premises or any part thereof or interest therein, nor does Tenant have (a) any right or option to renew or extend the term of the Lease beyond the Expiration Date, or (b) any right of first refusal or option to lease or purchase any additional premises other than the Leased Premises, except as follows: ________________________________________________.
9.There is no prepaid rent or security deposit paid under the terms of the Lease, except as follows: ________________________________________________________.
10.This Certificate shall be binding upon Tenant and its successors and assigns and shall inure to the benefit of and be enforceable by Landlord, Cerner Corporation, a Delaware limited liability company, and their successors, assigns, affiliates and designees.

IN WITNESS WHEREOF, Tenant has duly executed, acknowledged and delivered this Certificate as of the date set forth below.

Dated:  _________ __, 20__

[TENANT]

By: ____________________________________
       Name:  
       Title:    

73

EXHIBIT H

Form of Closing Certificate
[Conforming certificate to be prepared for Purchaser prior to Closing]
______________________, a _________ (“Seller”) hereby certifies that the representations and warranties contained in that that certain Agreement of Sale and Purchase (the “Agreement”) dated as of _____________ __, 2013, by and between ___________________, a ____________________ (“Purchaser”), and Seller, which representations and warranties are incorporated herein as though set out in full herein, are true and correct in all material respects as of the Closing Date defined in the Agreement as if made on and as of the Closing Date, shall survive the consummation of the purchase and sale transaction as contemplated by and for the time period provided in the Agreement and shall not be deemed to merge upon the acceptance of the deed by Purchaser delivered in connection with the consummation of such purchase and sale transaction.
Capitalized terms not otherwise defined herein shall have those meanings as set forth in the Agreement.
This certificate is given to Purchaser with the realization and understanding that all matters referenced above are material to the decision of Purchaser to close said sale and purchase on the Closing Date and Purchaser is acting in reliance thereon.
Dated this ___ day of _________, 201__.
______________________, a _________
By:

74

EXHIBIT I
CERTIFICATE OF NON-FOREIGN STATUS
[Conforming certificate to be prepared for Purchaser prior to Closing]
STATE OF ________________        )
__________________________        ) KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF ______________        )
BEFORE ME, the undersigned authority, on this day personally appeared __________________ ““Affiant”), _________________ of ______________________, a _________, (“Seller”) who after being duly sworn, upon his oath did depose and state under penalty of perjury that for purposes of Section 1445 of the Internal Revenue Code of 1986, as amended, in connection with the sale, transfer and conveyance of that certain property located and particularly described on Exhibit A attached hereto and incorporated herein for all purposes (the “Property”), and in order to inform ______________________, a ________________________ (“Purchaser”), that withholding of tax is not required upon the disposition of the Property by Seller:
(a)    that Seller is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as these terms are defined in the Internal Revenue Code and Income Tax Regulations);
(b)    that Seller's United States taxpayer identification number is _______________;
(c)    that Seller's mailing address is ____________________________; and
(d)    that Seller and Affiant understand that this Affidavit may be disclosed to the Internal Revenue Service by Purchaser and that any false statement contained herein could be punishable by fine, imprisonment or both.
Under penalties of perjury Affiant declares that he has examined this Affidavit, that to the best of his knowledge and belief it is true, correct and complete, and that Affiant has the authority to sign this Affidavit on behalf of Seller.
______________________ 
a _________
By:

75

EXHIBIT J
Existing Contracts
1.    Commercial Schedule of Protection Proposal and Sales Agreement between Trails Properties II, Inc. and Protection Security Solutions dated September 23, 2011.

2.    Service Contract between The Trails, LLC and Metro Air Conditioning dated October 26, 2012.  

3.    Service Contract between The Trails, LLC and Ackerson Landscape effective as of March 1, 2013.

4.    Service Contract between The Trails Properties, LLC and Eco Lighting Systems, Inc.  executed July 10, 2013.  

5.    Service Contract between The Trails, LLC and All Care Sweeping dated December 1, 2012.

6.    Service Contract between The Trails, LLC and C&M Restoration dated February 25, 2013.

7.    Service Contract between The Trails, LLC and Royalty Companies dated April 9, 2013.

8.    Service Contract between The Trails, LLC and First Response, Inc. executed July 6, 2011.

9.    Service Contract between The Trails, LLC and Metro Snow Contractors dated December 15, 2008 (unexecuted).

10.    Service Contract between The Trails, LLC and Deb's Disposal Service dated December 14, 2011.  

11.    Memorandum of Understanding between 3-Trails Village Community Improvement District, a Missouri political subdivision, and Trails Properties II, Inc., a Missouri corporation, dated December 1, 2012.  

12.    Letter of Intent regarding purchase of Toys “R” Us Property dated May 13, 2013.  

13.    Access and Use Agreement between Trails Properties II, Inc. and Cerner Corporation dated June 15, 2012.

14.    Access Agreement between Trails Properties II, Inc. and Cerner Corporation dated September 4, 2012. 

76

15.    Mutual Non-Disclosure Agreement between Trails Properties II, Inc. and Cerner Corporation dated September 9, 2012.    

77

EXHIBIT K
The Demolition Work

78

79Ex1055stockpurchaseagreement

	
	
	SHARE PURCHASE AGREEMENT

by and among

the individuals and entities listed in the first and second columns of  SCHEDULE A,
as Sellers

and

2371701 Ontario Limited,
as Buyer
and
The Andersons, Inc. and Lansing Trade Group, LLC,
as Parents

dated as of May 31, 2013

1

Table of Contents

SHARE PURCHASE AGREEMENT
		
	Part 1 INTERPRETATION
	4

		
	1.1
	Defined Terms                                        4

		
	1.2
	Interpretation                                        9

		
	1.3
	Preparation of Agreement                                9

		
	1.4
	Schedules                                        10

		
	Part 2 SALE AND PURCHASE
	10

		
	2.1
	Agreement to Sell and Purchase                                10

		
	2.2
	Purchase Price                                        10

		
	2.3
	Allocation of Purchase Price                                10

		
	2.4
	Purchase Price/Working Capital and Accounts Receivable Adjustment            10

		
	Part 3 SELLERS' REPRESENTATIONS AND WARRANTIES
	12

		
	3.1
	Representations and Warranties                                12

		
	3.2
	Disclaimer of other Representations and Warranties                    20

		
	Part 4 BUYER'S REPRESENTATIONS AND WARRANTIES
	21

		
	4.1
	Representations and Warranties                                21

		
	4.2
	Due Diligence by Buyer                                    22

		
	Part 5 COVENANTS OF THE parties
	22

		
	5.1
	Conduct of Business Prior to Closing                            22

		
	5.2
	Restrictions Prior to Closing                                22

		
	5.3
	Access to Information                                    22

		
	5.4
	Consents                                        23

		
	5.5
	Notification                                        23

		
	5.6
	Confidentiality                                        23

		
	5.7
	Filings in Relation to obtaining Competition Act Approval                    23

		
	5.8
	Books and Records                                    24

		
	5.9
	Pre-Closing Reorganization                                24

		
	5.10
	Directors and Officers                                    24

		
	5.11
	Taxes.                                            24

		
	5.12
	Working Capital Certificate                                25

		
	5.13
	Accounts Receivable                                    25

		
	5.14
	Environmental.                                        26

		
	Part 6 CONDITIONS
	27

		
	6.1
	Buyer's Conditions.                                    27

		
	6.2
	Waiver/Termination                                    27

		
	6.3
	Sellers' Conditions                                    27

		
	6.4
	Waiver/Termination                                    27

		
	6.5
	Frustration                                        27

2

		
	Part 7 SURVIVAL AND INDEMNITY
	28

		
	7.1
	Survival of Representations and Warranties                        28

		
	7.2
	Indemnification of Buyer                                    28

		
	7.3
	Indemnification of Sellers                                29

		
	7.4
	Limitations on Sellers' Liability                                29

		
	7.5
	Limitations on Buyer's Liability                                29

		
	7.6
	No Double Recovery                                    29

		
	7.7
	Eligible Damages                                    29

		
	7.8
	Awareness of Buyer.                                    29

		
	7.9
	Exclusive Remedy                                    29

		
	7.10
	Duty to Mitigate                                        30

		
	7.11
	Agency for Non-Parties                                    30

		
	7.12
	Notice of Claim                                        30

		
	7.13
	Direct Claims                                        30

		
	7.14
	Third Party Claims                                    30

		
	7.15
	Several Obligations                                    31

		
	7.16
	Purchase Price Adjustment                                31

		
	7.17
	Notice/Agency                                        31

		
	Part 8 TERMINATION
	31

		
	8.1
	Termination                                        31

		
	8.2
	Effect of Termination                                    31

		
	Part 9 CLOSING
	32

		
	9.1
	Closing                                            32

		
	9.2
	Delivery by Sellers                                    32

		
	9.3
	Delivery by Buyer                                    32

		
	Part 10 GENERAL
	33

		
	10.1
	Public Announcements                                    33

		
	10.2
	Notices                                            33

		
	10.3
	Time of Essence                                    34

		
	10.4
	Governing Law                                        34

		
	10.5
	Submission to Jurisdiction                                34

		
	10.6
	Entire Agreement                                    34

		
	10.7
	Severability                                        34

		
	10.8
	Currency                                        34

		
	10.9
	Accounting Principles                                    34

		
	10.10
	Enurement                                        35

		
	10.11
	Further Assurances                                    35

		
	10.12
	Costs and Expenses                                    35

		
	10.13
	Assignment                                        35

		
	10.14
	Holdback.                                        35

		
	10.15
	Parents.                                        35

		
	10.16
	Counterparts                                        35

3

SHARE PURCHASE AGREEMENT
THIS AGREEMENT dated as of May 31, 2013 is between:
The individuals and entities listed under the heading “Sellers” in SCHEDULE A.
(the “Sellers”)
AND
2371071 ONTARIO LTD.
(the “Buyer”)
AND
THE ANDERSONS, INC. AND LANSING TRADE GROUP LLC
(together, “Parents”)
BACKGROUND
		
	A.
	        The Sellers own, directly or indirectly, all of the issued and outstanding shares in the capital of the Corporation.

B.The Parents own, directly or indirectly, all of the issued and outstanding shares in the capital of the Buyer.
C.The Sellers have agreed to sell and the Buyer has agreed to buy, the Shares on the terms and conditions contained in this Agreement.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which each party acknowledges, the parties agree as follows:
		
	Part1
	

INTERPRETATION

1.Defined Terms.   In this Agreement the following terms have the following meanings:
		
	(a)
	“Act” means the Income Tax Act, R.S.C. 1985, c.1 (5th supp.), as amended from time to time;

		
	(b)
	“Additional Environmental Diligence” means the additional environmental diligence work described in SCHEDULE V including, without limitation, the sampling, drilling and testing described therein, for the purpose of examining in further detail certain areas of potential environmental concern identified in phase 1 environmental site assessment reports prepared by WESA in 2013 in respect of the Real Property;

		
	(c)
	“Affiliate” in respect of a Person means any other Person that, directly or indirectly, Controls, is Controlled by, or is under common Control with, such first Person;

		
	(d)
	“Agreement” means this share purchase agreement and all schedules hereto whether attached or incorporated by reference, in each case as supplemented, amended, restated or replaced from time to time by a written agreement signed by the parties;

		
	(e)
	“Applicable Laws” means any applicable laws (including common law), statutes, by-laws, rules, regulations, orders, ordinances, codes, treaties, decrees, judgments, awards or requirements, in each case of a Governmental Authority having the force of law;

		
	(f)
	“AR Shortfall” has the meaning specified in Section 5.13(d)(i);

		
	(g)
	“AR Statement” has the meaning specified in Section 5.13(d);

		
	(h)
	“AR Surplus” has the meaning specified in Section 5.13(d)(ii);

4

		
	(i)
	“Assets” means all property or assets of any nature, whether real or personal, tangible or intangible, corporeal or incorporeal, and includes any interest in any property or assets;

		
	(j)
	“Balance Sheet Date” means the date of the balance sheet included in the Financial Statements;

		
	(k)
	“Business” means the business of the Corporation and the Subsidiaries as carried on at the date of this Agreement;

		
	(l)
	“Business Day” means any day which is not a Saturday, Sunday or a statutory holiday in Toronto, Ontario or New York, New York;

		
	(m)
	“Buyer” has the meaning specified in the preface;

		
	(n)
	“Buyer's Losses” has the meaning specified in Section 7.2;

		
	(o)
	“Certificate Date” has the meaning specified in Section 5.12; 

		
	(p)
	“Closing” has the meaning specified in Section 9.1;

		
	(q)
	“Closing Balance Sheet” has the meaning specified in Section 2.4(b);

		
	(r)
	“Closing Date” has the meaning specified in Section 9.1;

		
	(s)
	“Closing Document” means any agreement or instrument (in addition to this Agreement) to be executed by a party as contemplated in this Agreement;

		
	(t)
	“Closing Working Capital” has the meaning specified in Section 2.4(b);

		
	(u)
	“Commercially Reasonable Efforts” means the efforts that would be taken by a prudent party but do not include extraordinary or unreasonable measures, including the payment of amounts in excess of normal and usual filing fees and processing fees or any other significant and unusual payments with respect to any contracts;

		
	(v)
	“Competition Act Approval” means:

		
	(i)
	the Commissioner or any Person authorized to exercise the powers and perform the duties of the Commissioner has issued an advance ruling certificate pursuant to Section 102 of the Competition Act, R.S.C., 1985, c. C-34 in respect of the transactions contemplated in this Agreement; or

		
	(ii)
	notification of the transactions contemplated in this Agreement pursuant to Section 114 of the Competition Act has been given by the parties hereto or its requirement has been waived by the Commissioner or any Person authorized by the Commissioner, and the Commissioner or any Person authorized by the Commissioner confirms that the Commissioner does not, at the time of such confirmation, intend to file an application under Section 92 of the Competition Act with respect to the transactions contemplated in this Agreement and the form of and any terms and conditions attached to any such confirmation are acceptable to the Sellers and the Buyer, acting reasonably, and such advice has not been rescinded or amended;

		
	(w)
	“Confidential Information” has the meaning specified in the Confidentiality Agreement;

		
	(x)
	“Confidentiality Agreement” means the confidentiality agreements entered into between the Corporation and each of the Parents dated November 14, 2012 and January 21, 2013, respectively;

		
	(y)
	“Control” means, with respect to the relationship between two or more Persons, the direct or indirect possession of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting shares, as trustee, personal representative or executor, by contract, credit arrangement or otherwise, including, without limitation:

		
	(i)
	the right to exercise a majority of the votes which may be cast at a general meeting of a corporation; and

		
	(ii)
	the right to elect or appoint, directly or indirectly, a majority of the directors of a corporation or other persons who have the right to manage or supervise the management of the affairs and business of the corporation;

		
	(z)
	“Corporation” means Thompsons Limited, a corporation incorporated under the laws of Ontario (incorporation number 58576);

		
	(aa)
	“Credit Facilities” means, collectively, the credit agreement among the Corporation, the Subsidiaries, Bank of America, N.A., Canada Branch and the lenders from time to time party thereto, dated July 21, 2011, the credit agreement between Thompsons USA Limited and U.S. Bank N.A. dated September 1, 2006 and the credit agreement between Thompsons USA Limited and U.S. Bank N.A. dated December 9, 2011;

		
	(ab)
	“Current Assets” means the aggregate amount of current accounts receivable, inventory, unrealized gains or losses on hedging agreements (net of forward contracts and reserves) and prepaid expenses of the Corporation and the Subsidiaries, in each case as determined in accordance with GAAP;

		
	(ac)
	“Current Liabilities” means the aggregate amount of the current accounts payable and current liabilities of the Corporation and the Subsidiaries, in each case as determined in accordance with GAAP.  For greater clarity and without duplication, Current Liabilities will be deemed to include the Special Accruals;

5

		
	(ad)
	“Damages” means losses, costs, damages, liabilities and fees;

		
	(ae)
	“Direct Claim” has the meaning specified in Section 7.12; 

		
	(af)
	“Employee Benefit Plan” means any retirement, pension, bonus, stock, purchase, profit sharing, stock option, deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation, legal benefits, unemployment benefits, vacation, incentive or other employee compensation or benefit plan, arrangement, policy, program or practice (whether provided on a pre- or post-retirement basis) which is maintained or otherwise contributed to or required to be contributed to, by the Corporation for the benefit of any present or former employees, officers or directors of the Corporation;

		
	(ag)
	“Encumbrance” means any lien, claim, charge, pledge, hypothecation, security interest, mortgage, title retention agreement, declaration of trust, right of set-off, option or other encumbrance of any kind;

		
	(ah)
	“Environmental Events” has the meaning specified in Section 5.14(c);

		
	(ai)
	“Environmental Laws” means all applicable international, federal, provincial, state, municipal or local treaties, conventions, laws, statutes, regulations, orders, by-laws, governmental decrees or ordinances relating to fisheries, the protection or preservation of the environment or the manufacture, processing, distribution, use, treatment, storage, disposal, discharge, transport or handling of Hazardous Substances and includes any published standards for the permissible concentrations of Hazardous Substances in the environment that  have the force of law;

		
	(aj)
	“Environmental Permits” has the meaning specified in Section 3.1(nn)(ii); 

		
	(ak)
	“Escrow Agent” means Davis LLP, or such other agent as may be appointed from time to time pursuant to the terms of the Escrow Agreement;

		
	(al)
	“Escrow Agreement” means an escrow agreement to be entered into among the parties hereto and Davis LLP as initial escrow agent, on terms and conditions substantially similar to those set out in the form of escrow agreement attached hereto as SCHEDULE B;

		
	(am)
	“Existing Accounts” has the meaning specified in Section 5.13(a);

		
	(an)
	“Financial Records” means the books of account and other financial data and information of the Corporation and the Subsidiaries, and includes all records, data and information stored electronically, digitally or on computer-related media;

		
	(ao)
	“Financial Statements” means the audited consolidated financial statements of the Corporation for the fiscal year ended August 31, 2012, consisting of a consolidated balance sheet, statement of income, statement of retained earnings, and statement of cash flow including the notes to such financial statements;

		
	(ap)
	“Fundamental Representations” has the meaning specified in Section 7.1;

		
	(aq)
	“GAAP” means generally accepted accounting principles in Canada, recommended by the Canadian Institute of Chartered Accountants, as contained in the “CICA Handbook” and, in the absence of a specific recommendation, such accounting practices as are generally accepted in Canada for businesses similar to the Business, in all cases applied on a consistent basis;

		
	(ar)
	“Governmental Authority” means any Canadian, United States (whether federal, territorial, provincial, state, municipal or local), international or foreign government, governmental authority, court, self-regulatory organization, commission, tribunal or organization or any agent, subdivision, department or branch of any of the foregoing;

		
	(as)
	“Hazardous Substance” means any pollutant, contaminant, waste, special or hazardous waste, toxic or hazardous substance or material which, when released into the natural environment may cause harm or risk to the natural environment or to human or animal health, including without limitation, any substance considered hazardous under Environmental Laws;

		
	(at)
	“Holdback” means $6,500,000;

		
	(au)
	“Holdco” means the holding companies described in SCHEDULE C;

		
	(av)
	“Holdco Financial Statements” means, in respect of a Holdco, the unaudited financial statements of such Holdco for its most recent fiscal year consisting of a balance sheet, statement of profit and loss and statement of changes of financial position together with notes thereto, if any and for the purposes of Section 7.2(a) “Holdco Financial Statements” shall mean and include unaudited financial statements of such Holdco for the period ended December 31, 2012 consisting of a balance sheet, statement of profit and statement of changes of financial position together with notes thereto if any;

		
	(aw)
	“Holdco Shares” means the issued and outstanding Shares in the capital of a Holdco;

		
	(ax)
	“Indemnified Party” means a Person whom the Sellers or the Buyer, as the case may be, are required to indemnify under Part 7;

		
	(ay)
	“Indemnifying Party” means, in relation to an Indemnified Party, the party to this Agreement that is required to indemnify such Indemnified Party under Part 7;

		
	(az)
	“Independent Accounting Firm” has the meaning specified in Section 2.4(d);

6

		
	(ba)
	“Intellectual Property Rights” means any patents, trade marks, service marks, industrial designs, utility models, design patents, petty patents, copyright (including copyright in computer software), database rights, circuit topography rights, mask works, inventions, trade secrets, confidential information, know-how, business or trade names (including internet domain names and e-mail address names) and all other intellectual and industrial property and rights of a similar or corresponding nature in any part of the world, including the right to apply for, and all applications for, any of the foregoing rights and the right to sue for infringements of any of the foregoing rights;

		
	(bb)
	“Interim Financial Statements” means the unaudited consolidated financial statements of the Corporation and the Subsidiaries for the period ended April 30, 2013 consisting of a consolidated balance sheet, statement of income, statement of retained earnings, and statement of cash flow;

		
	(bc)
	“Knowledge of the Sellers” means the actual knowledge of Wesley T. Thompson and Terry Koehler as of the date of this Agreement, upon reasonable inquiry;

		
	(bd)
	“Leased Real Property” means premises which are used by the Corporation or the Subsidiaries which are leased, subleased, licensed or otherwise occupied by the Corporation or the Subsidiaries and the interest of the Corporation or the Subsidiaries, as applicable, in all plants, buildings, structures, fixtures, erections, improvements, easements, rights-of-way, spur tracks and other appurtenances situate on or forming part of such premises;

		
	(be)
	“Legal Proceeding” means any litigation, action, application, suit, investigation, hearing, claim, deemed complaint, grievance, civil, administrative, regulatory or criminal proceeding, arbitration proceeding or other similar proceeding, before or by any court, tribunal or Governmental Authority, and includes any appeal or review thereof and any application for leave for appeal or review;

		
	(bf)
	“Material Adverse Change” means any transaction, event, condition, change, circumstance or effect that is materially adverse to the financial condition or results of the operations of the Corporation and Subsidiaries and is not cured favorably or resolved prior to the Closing Date, but excluding any transaction, event, condition, change, circumstance or effect to the extent that it arises from: (i) changes to financial markets or general economic or political conditions including changes to interest rates or commodity prices or changes to the industry in which the Corporation and Subsidiaries operate (so long as the Corporation and Subsidiaries are not disproportionately affected thereby); (ii) any changes generally affecting the industry in which the Corporation and the Subsidiaries participate or the markets in which they operate (so long as the Corporation and the Subsidiaries are not disproportionately affected thereby); (iii) any bankruptcy, insolvency or other financial distress of any customer or other counterparty of the Corporation or the Subsidiaries; (iv) any action permitted or required by this Agreement; (v) the announcement of the transactions contemplated in this Agreement; (vi) terrorist activities, hostilities or acts of war; (vii) any change in Applicable Law or GAAP; or (viii) matters disclosed in the Schedules;

		
	(bg)
	“Material Contract” means any contract, arrangement or obligation to which the Corporation or either of the Subsidiaries is a party and which:

		
	(i)
	involves expenditure by the Corporation or the Subsidiaries in excess of $500,000 per annum;

		
	(ii)
	provides income to the Corporation or the Subsidiaries in excess of $500,000 per annum;

		
	(iii)
	is of a term in excess of 12 months and involves expenditure by or provides income to, the Corporation or Subsidiaries in excess of $250,000; or

		
	(iv)
	is outside the ordinary course of the Business;

		
	(bh)
	“Migration Event” has the meaning specified in Section 5.14(a)(ii);

		
	(bi)
	“MOE Event” has the meaning specified in Section 5.14(a)(i);

		
	(bj)
	“Non-Competition Agreement” means non-competition agreements to be entered into between the Buyer and each of Wesley T. Thompson and John Thompson, respectively, in the form attached hereto as SCHEDULE D;

		
	(bk)
	“Notice of Claim” has the meaning specified in Section 7.12;

		
	(bl)
	“Objection Notice” has  the meaning specified in Section 2.4(c);

		
	(bm)
	“Objection Period” has the meaning specified in Section 2.4(c); 

		
	(bn)
	“Owned Real Property” means all real property owned or purported to be owned in fee simple, by the Corporation or the Subsidiaries, and all real property, other than the Leased Real Property, in which the Corporation or the Subsidiaries has an interest;

		
	(bo)
	“Outside Date” means August 31, 2013 or such later date as may be agreed in writing among the parties;

		
	(bp)
	“Parents” has the meaning specified in the preface;

		
	(bq)
	“Permit” has the meaning specified in Section 3.1(m);

		
	(br)
	“Permitted Encumbrances” means:

7

		
	(i)
	inchoate liens for Taxes, assessments and governmental charges not yet due and liens for Taxes, assessments and governmental charges due, which are being contested in good faith and diligently by appropriate proceedings but only for so long as such contestation effectively postpones enforcement of any such liens and in respect of which provision for the related monetary obligation has been made in the Financial Statements;

		
	(ii)
	security given in the ordinary course of the Business to any public utility, municipality or Governmental Body, other than security for borrowed money;

		
	(iii)
	statutory or regulatory restrictions to title which do not in the aggregate materially detract from the value of the real property concerned or materially impair its current use in the operation of the Business;

		
	(iv)
	servitudes, easements, restrictions, rights-of-way and other similar rights or any interest therein, relating to sewers, waterlines, gas lines, pipelines, electric lines, telephone lines, utilities and other similar products or services and any registered restrictions that run with the land, provided that there has been compliance with the provisions thereof and that they do not in the aggregate materially detract from the value of the property and will not materially adversely affect the ability to carry on the Business as it has been carried on in the past;

		
	(v)
	the reservations, limitations, provisos and conditions expressed in any original grants from the Crown of any real property or interest therein;

		
	(vi)
	liens of carriers, warehousemen, mechanics and materialmen incurred in the ordinary course of business for amounts not yet due and payable;

		
	(vii)
	undetermined or inchoate construction or repair or storage liens arising in the ordinary course of the Business, a claim for which has not been filed or registered pursuant to law or notice in writing of which has not been given to the Corporation or the Subsidiaries; and

		
	(viii)
	the Encumbrances described in SCHEDULE E;

		
	(bs)
	“Person” means an individual, legal personal representative, corporation, body corporate, firm, partnership, trust, trustee, syndicate, joint venture, limited liability company, association, unincorporated organization, union, Governmental Authority or other entity or organization;

		
	(bt)
	“Pre-Closing Reorganization” has the meaning specified in Section 5.9;

		
	(bu)
	“Price Reduction” has the meaning specified in Section 2.4(e); 

		
	(bv)
	“Purchase Price” has the meaning specified in Section 2.2;

		
	(bw)
	“Real Property” means the Owned Real Property and the Leased Real Property;

		
	(bx)
	“Relevant Holdco” has the meaning specified in Section 3.1(h);

		
	(by)
	“Required Consents” has the meaning specified in Section 5.4;

		
	(bz)
	“Required Working Capital” has the meaning specified in Section 2.4(a);

		
	(ca)
	“Review Date” has the meaning specified in 5.13(c);

		
	(cb)
	“Seller Group” means the groups of Sellers described in column 1 on SCHEDULE A;

		
	(cc)
	“Seller Representative” has the meaning specified in Section 7.17;

		
	(cd)
	“Sellers” has the meaning specified in the preface; 

		
	(ce)
	“Sellers' Losses” has the meaning specified in Section 7.3;

		
	(cf)
	“Shares” means all of the issued and outstanding shares in the capital of the Holdcos, and the shares in the capital of the Corporation held by Margaret L. Thompson, Patricia F. Thompson and Wesley D. Thompson, all as described in detail in SCHEDULE A;

		
	(cg)
	“Special Accruals” means, with respect to the Corporation or the Subsidiaries,:

		
	(i)
	any amount payable as a consequence of completion of this Agreement pursuant to any employee incentive plan, bonus program or stock option plan, but excluding any amounts payable as a result of or in connection with new agreements with employees of the Corporation or the Subsidiaries negotiated by the Buyer or Parents;

		
	(ii)
	obligations owing pursuant to any employee benefit plans incurred prior to the Closing Date and not otherwise reflected in the Corporation's financial records; and

		
	(iii)
	$602,339, representing an amount equal to any liability for employee vacation pay earned prior to the Closing Date and not otherwise reflected in the Corporation's financial records;

		
	(ch)
	“Subsidiaries” means WGT US Ltd., a Delaware corporation, and Thompsons USA Ltd., a Delaware corporation;

		
	(ci)
	“Taxes” means all taxes, surtaxes, duties, levies, imposts, fees, assessments, withholdings, dues and other charges of any nature, including interest and penalties associated therewith, imposed or collected by any Governmental Authority, whether disputed or not, including Canadian or United States federal, provincial, state, territorial, municipal and local, foreign and other income, franchise, capital, real property, personal property, withholding, payroll, health, transfer, goods and services, harmonized sales, value added, sales, use, consumption, excise, customs, anti-dumping, countervail, net worth, 

8

stamp, registration, franchise, payroll, employment, education, business, school, local improvement, development and occupation taxes, duties, levies, imposts, fees, assessments and withholdings, dues and other charges of any nature and Canada and Quebec pension plan contributions, employment insurance premiums and all other taxes and similar governmental charges of any kind;
		
	(cj)
	“Threatened”, when used in relation to a Legal Proceeding or other matter, means that a demand or statement (oral or written) has been made or a notice (oral or written) has been given that a Legal Proceeding or other matter, as applicable, is to be asserted, commenced, taken or otherwise pursued in the future;

		
	(ck)
	“Third Party Claim” has the meaning specified in Section 7.12;

		
	(cl)
	“Water Event” has the meaning specified in Section 5.14(a)(iii);

		
	(cm)
	“WESA” means WESA Inc.;

		
	(cn)
	“WESA Report” has the meaning specified in Section 5.14(a);

		
	(co)
	“Working Capital” means Current Assets minus Current Liabilities, determined in the manner specified in the sample calculation described in SCHEDULE F, and using the same accounting methods, policies, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in the preparation of the sample calculation in SCHEDULE F; and

		
	(cp)
	“Working Capital Statement” has the meaning specified in Section 2.4(b).

2.Interpretation.  In this Agreement, except as otherwise expressly provided:
		
	(a)
	the terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”, “herein”, “hereby”, “hereunder” and similar expressions refer to this Agreement in its entirety and not to any particular provision hereof;

		
	(b)
	the headings to the parts, sections, paragraphs, and schedules of this Agreement are inserted for convenience only and will not affect the interpretation of this Agreement;

		
	(c)
	any reference to a part, section, paragraph or schedule is to the relevant part, section, paragraph or schedule of this Agreement;

		
	(d)
	words of one gender include all genders, and words in the singular include the plural and vice versa;

		
	(e)
	the word “including” is deemed to mean including without limitation;

		
	(f)
	all references herein to any period of days mean the relevant number of calendar days unless otherwise specified;

		
	(g)
	all references herein to a “party” or “parties” are to a party or parties to this Agreement unless otherwise specified;

		
	(h)
	any reference to a statute includes and is a reference to such statute, and to the regulations made pursuant to it, as amended and in force from time to time, and to any statute or regulations that may be passed which have the effect of supplementing or superseding such statute or regulations; and

		
	(i)
	any references to any agreement, document or instrument mean such agreement, document or instrument as amended, supplemented, modified, varied or replaced from time to time in accordance with the terms thereof and, unless otherwise specified therein, includes all schedules and exhibits attached thereto.

3.Preparation of Agreement.  The parties acknowledge and agree that each has negotiated and reviewed the terms of this Agreement, assisted by such legal and tax counsel as they desired, and has contributed to its final form.  The parties further agree that the rule of construction that any ambiguities are resolved against the drafting party will be subordinated to the principle that the terms and provisions of this Agreement will be construed fairly as to all parties and not in favor of or against any party.
		
	4.
	       Schedules.  The following are the Schedules attached to and incorporated into this Agreement by reference and each of them forms part of this Agreement: 

9

		
	SCHEDULE A
	- Sellers/ Shares 

		
	SCHEDULE B
	- Form of Escrow Agreement

		
	SCHEDULE C
	- Corporate Information

		
	SCHEDULE D
	- Form of Non-Competition Agreements

		
	SCHEDULE E
	- Permitted Encumbrances

		
	SCHEDULE F
	- Working Capital Sample Calculation

		
	SCHEDULE G
	- Holdco Assets

		
	SCHEDULE H
	- Permits

		
	SCHEDULE I
	- Disclosure

		
	SCHEDULE J
	- Locations

		
	SCHEDULE K
	- Leased Assets

		
	SCHEDULE L
	- Owned Real Property

		
	SCHEDULE M
	- Leased Real Property

		
	SCHEDULE N
	- Intellectual Property

		
	SCHEDULE O
	- Insurance

		
	SCHEDULE P
	- Employees

		
	SCHEDULE Q
	- Labour Relations

		
	SCHEDULE R
	- Benefit Plans

		
	SCHEDULE S
	- Required Consents

		
	SCHEDULE T
	- Pre-Closing Reorganization

		
	SCHEDULE U
	- Legal Opinion

		
	SCHEDULE V
	- Additional Environmental Diligence

		
	SCHEDULE W
	- Sample AR Calculations

		
	Part2
	

SALE AND PURCHASE

1.Agreement to Sell and Purchase.  Each Seller agrees to sell, free and clear of all Encumbrances, and the Buyer agrees to purchase, the Shares set out opposite such Seller's name in SCHEDULE A, on the terms and conditions contained in this Agreement.
		
	2.
	           Purchase Price.  The total purchase price payable by the Buyer for the Shares will be the sum of $145,000,000, plus or minus any amount required to be paid pursuant to Section 2.4(e), if any, (the “Purchase Price”), payable as follows:  (i) $138,500,000 will be paid on the Closing Date by wire transfer of immediately available funds to the single bank account designated in writing by the Seller Representative; (ii) the Holdback will be paid on the Closing Date to the Escrow Agent to be held in trust in accordance with the terms of the Escrow Agreement; and (iii) the amount of any Working Capital in excess of or less than the Required Working Capital, if any, will be paid in the manner specified in Section 2.4(e).

		
	3.
	      Allocation of Purchase Price.  The Purchase Price will be allocated among the Sellers in the proportions set out in column 4 of SCHEDULE A, as such Schedule may be amended pursuant to Section 5.9.

		
	4.
	     Purchase Price/Working Capital and Accounts Receivable Adjustment.  

		
	(a)
	The Purchase Price has been determined on the basis that the Corporation will have Working Capital of not less than $45,000,000 (the “Required Working Capital”) on the Closing Date.

		
	(b)
	The Buyer will prepare and deliver to the Sellers within 45 days after the Closing Date: (i) an unaudited consolidated balance sheet of the Corporation and the Subsidiaries as of the Closing Date (the "Closing Balance Sheet") prepared in accordance with GAAP applied consistently with the Corporation's past practices, as used in the preparation of the Financial Statements; and (ii) a statement setting forth the consolidated Working Capital of the Corporation and the Subsidiaries as of the Closing Date (the "Closing Working Capital") determined by reference to the Closing Balance Sheet (the "Working Capital Statement"), which Working Capital Statement will also be prepared in accordance with GAAP, applied consistently with the Corporation's past practices, as used in the preparation of the Financial Statements.  No change in such accounting principles and practices will be made from those described above, including with respect to the nature or classification of accounts.  No reserves or other accruals will be increased or created other than as a result of objective events occurring in the underlying business other than with respect to the Special Accruals.  The Buyer will provide, or cause to be provided to the Sellers, copies of all working papers resulting from, or used in connection with, the preparation of the Closing Balance Sheet and Working Capital Statement.

		
	(c)
	On or prior to the 20th Business Day after the Sellers' receipt of the Closing Balance Sheet and the Working Capital Statement (such 20 Business Day period, the "Objection Period"), the Sellers may 

10

give the Buyer a written notice (the "Objection Notice") stating in reasonable detail the Sellers' objections, if any, to the Closing Balance Sheet and/or the Working Capital Statement.  Any Objection Notice will specify in reasonable detail the dollar amount and nature of any objection and the basis therefor.  Except to the extent that the Sellers make a specific objection to a specific determination set forth on the Closing Balance Sheet and/or the Working Capital Statement pursuant to the Objection Notice delivered to the Buyer within the Objection Period, the Closing Balance Sheet and the Working Capital Statement will be conclusive and binding upon the parties for purposes of determining the adjustment in subsection (d) below.
		
	(d)
	If the Sellers deliver a timely Objection Notice as described in subsection (c) above, then the Sellers and the Buyer will negotiate in good faith to resolve any dispute regarding the Closing Balance Sheet and/or the Working Capital Statement.  If the Sellers and the Buyer are unable to resolve all disputes regarding the Closing Balance Sheet and the Working Capital Statement on or prior to the 20th day after the Buyer's receipt of the Objection Notice, then the Sellers and the Buyer will retain an independent national firm of chartered accountants (selected either by mutual agreement or, in the absence of mutual agreement, within a further period of five Business Days, such independent national firm of chartered accountants will be selected by two such national firms, one nominated by the Sellers and the other nominated by the Buyer) (an "Independent Accounting Firm"), to resolve the dispute as soon as practicable, and in any event within 20 Business Days of its appointment.  The Independent Accounting Firm will act as an expert, and not as an arbitrator, to determine, based solely on the written submissions of the parties and not by independent investigation, only the specific items under dispute by the parties.  The Independent Accounting Firm will render a written report as to the resolution of the dispute and the resulting computation of the Closing Working Capital.  The Closing Working Capital as determined by the Independent Accounting Firm will, absent manifest error, be conclusive and binding upon the parties and will constitute the Closing Working Capital for all purposes of this Section 2.4(d).  In resolving any disputed item, the Independent Accounting Firm will be bound by the provisions of this Section 2.4(d) and may not assign a value to any item greater than the greatest value for such item claimed by any party or less than the smallest value for such item claimed by any party.  The fees, costs and expenses of the Independent Accounting Firm in resolving the dispute will be borne equally by the Sellers (as a group) and the Buyer, except to the extent that the Closing Working Capital, as finally determined by the Independent Accounting Firm, differs from the Closing Working Capital initially proposed by the Buyer by more than $100,000, in which case the fees, costs and expenses of the Independent Accounting Firm will be borne by: (i) the Buyer if the Closing Working Capital, as finally determined, is higher than that initially proposed, or (ii) the Sellers if the Closing Working Capital, as finally determined, is lower than that initially proposed.

		
	(e)
	If the Closing Working Capital exceeds the Required Working Capital, the Buyer will pay such amount to the Sellers by wire transfer to an account designated in writing by the Seller Representative.  If the Closing Working Capital is less than the Required Working Capital, the Sellers (in the proportions set out in column 4 of SCHEDULE A) will pay such amount expressed as a positive number to the Buyer by wire transfer to an account designated in writing by the Buyer (the “Price Reduction”).  Any payment made pursuant to this subsection (e) will be made within ten days of the final determination of the Closing Working Capital pursuant to this Section 2.4 and will be deemed to be an adjustment to the Purchase Price.  Any payment by the Sellers made pursuant to this Section 2.4(e) will not be subject to any maximum liability or de minimus threshold as set out in Section 7.4 hereof.  Notwithstanding the provision herein for a Price Reduction, the parties acknowledge that Sellers are obligated to maintain the Required Working Capital at the Closing, and any failure of Sellers to so maintain Required Working Capital will be a default under Section 5.2(d), which may entitle Buyer not to consummate the Closing and terminate the Agreement, and the existence of the Price Reduction provision will not be construed as an amendment or waiver of Sections 5.2(d) or 6.1(h).  If the Sellers fail to maintain the Required Working Capital at the Closing, and Buyer elects in its sole discretion to consummate the Closing, then the Price Reduction shall be applied to reduce the Purchase Price.

		
	(f)
	For purposes of complying with the terms set forth herein, each party will cooperate with and promptly make available to the other party and its auditors and representatives all information, records, data and supporting papers reasonably relevant to the preparation of the Closing Balance Sheet, the Objection Notice and any adjustment thereto being disputed and the resolution of any disputes thereunder.  The Buyer will cause the Corporation and the Subsidiaries to permit the Sellers and their representatives access to such Corporation's and the Subsidiaries' books and records, facilities and personnel, as may be reasonably required (upon reasonable advance notice) in connection with the Sellers' analysis of the Closing Balance Sheet and their preparation of any Objection Notice and any adjustment thereto being disputed and the resolution of any disputes thereunder.

11

		
	(g)
	The Sellers agree that the Holdback shall not be consumed in the event of any obligation of the Sellers to pay under Section 2.4(e) and similarly the provisions of Section 7.4 shall not apply.

Part3

SELLERS' REPRESENTATIONS AND WARRANTIES

1.Representations and Warranties.   In order to induce the Buyer to enter into and consummate this Agreement, each Seller represents and warrants to the Buyer that the following statements are true and correct (provided that, for the representations and warranties in paragraphs (a) through (i), each Seller makes such representations only in respect of itself, its Relevant Holdco and its Seller Group).

SELLERS AND HOLDCOS
		
	(a)
	Individual Sellers.  Each Seller that is an individual has the authority to own its Shares and to enter into, execute and deliver this Agreement and the Closing Documents to which it is a party and to complete the transactions contemplated herein.

		
	(b)
	Corporate Sellers.  Each Seller that is a corporation:

		
	(i)
	is a corporation duly incorporated and validly existing under the laws of Ontario;

		
	(ii)
	has the capacity and authority to own its Shares and to enter into, execute and deliver this Agreement and the Closing Documents to which it is a party and to complete the transactions contemplated hereby; and

		
	(iii)
	has taken all action necessary to authorize the execution and delivery of, and the observance and performance of its covenants and obligations under, this Agreement and the Closing Documents to which it is a party.

		
	(c)
	Trust Sellers.  Each Seller that is a trust: 

		
	(i)
	is a trust validly subsisting under the laws of the Province of Ontario;

		
	(ii)
	has the capacity and authority to own its Shares and to enter into, execute and deliver this Agreement and the Closing Documents to which it is a party and to complete the transactions contemplated hereby;

		
	(iii)
	has taken all action necessary to authorize the execution and delivery of, and the observance and performance of its covenants and obligations under, this Agreement and the Closing Documents to which it is a party; and

the list of trustees in SCHEDULE C constitutes a complete and accurate list of all trustees of each Seller that is a trust on the date hereof.
		
	(d)
	Execution, Delivery and Enforceability.  This Agreement has been, and each Closing Document to which each Seller is a party will on Closing be, duly executed and delivered by the Seller, and this Agreement constitutes, and each Closing Document to which a Seller is a party will on Closing constitute, a valid and binding obligation of the Seller enforceable against such Seller in accordance with its terms.

		
	(e)
	Title to Shares.  Each Seller has, and on Closing will transfer, good and marketable title to all of its Shares, free and clear of all Encumbrances.

		
	(f)
	Non-Contravention.  The performance of this Agreement will not:

		
	(i)
	conflict with, or result in the breach of, or constitute a default under, any agreement, arrangement or instrument to which the Seller is party or the constating documents of the Seller, or any Encumbrance, lease, contract, order, judgment, regulation or other restriction or obligation of any kind by which the Seller or any of its Assets is bound;

		
	(ii)
	subject to obtaining Competition Act Approval, contravene or conflict with any laws or regulations binding upon or applicable to the Seller or its Shares; or

		
	(iii)
	result in the creation, imposition or enforcement of any Encumbrance on or over any of the Shares.  

		
	(g)
	Canadian Residence.  None of the Sellers is a “non-resident” of Canada within the meaning of section 116 of the Act.

		
	(h)
	Holdco Matters.  Each Seller selling Shares in a Holdco (the “Relevant Holdco”) represents and warrants in respect of such Relevant Holdco that:

		
	(i)
	Incorporation and Existence.  The Relevant Holdco is a corporation duly incorporated and validly existing under the laws of Ontario.

12

		
	(ii)
	Capacity.  The Relevant Holdco has the capacity and authority to own its shares in the capital of the Corporation.

		
	(iii)
	Authorization of Share Transfer.  The Relevant Holdco has taken, or on or prior to the Closing Date will have taken, all action necessary to authorize the transfer of Holdco Shares pursuant to this Agreement.

		
	(iv)
	Holdco Capital.

		
	A.
	The authorized share capital of the Relevant Holdco and number of shares issued and outstanding are as shown in SCHEDULE C.

		
	B.
	The number and class of Holdco Shares owned by each Seller legally, in the case of trusts, and legally and beneficially, in the case of individuals, is as set out opposite each Seller's name in SCHEDULE A.

		
	C.
	The Holdco Shares held by the members of a Seller Group constitute all of the issued and outstanding capital of the Relevant Holdco.

		
	D.
	There are no restrictions on the transfer of the Holdco Shares.

		
	E.
	No Person other than the Buyer has any oral or written agreement, option, warrant, right, privilege or any other right, commitment or arrangement of any character capable of becoming any of the foregoing (whether legal, equitable, contractual or otherwise) for the purchase, subscription or issuance of any shares in the Relevant Holdco.

		
	F.
	There are no shareholders' agreements, pooling agreements, voting trusts, proxies or other similar agreements, arrangements or understandings with respect to the ownership or voting of any of the Holdco Shares.

		
	(v)
	Constating Documents. A true copy of the articles and all by-laws of the Relevant Holdco has been made available to the Buyer on or before the date hereof.

		
	(vi)
	Corporate Records.  The minute books of the Relevant Holdco are complete in all material respects.

		
	(vii)
	No Other Assets.  Except as disclosed in SCHEDULE G, the Relevant Holdco has never had any Assets other than its shares in the capital of the Corporation, distributions of profits from the Corporation and financial assets.  Except as disclosed in SCHEDULE G, the Relevant Holdco has never been an operating company, has never had any liabilities or obligations which have not been satisfied in full and has never been involved in any civil or criminal legal proceeding, dispute or claim.

		
	(viii)
	Insolvency or Amalgamation.  Except for any Pre-Closing Reorganization, no proceedings have been taken or authorized by any Person with respect to the bankruptcy, insolvency, liquidation, dissolution or winding-up of the Relevant Holdco or with respect to any amalgamation, merger, consolidation, arrangement or reorganization relating to the Relevant Holdco.

		
	(ix)
	Applicable Laws.  The Relevant Holdco is in material compliance with all Applicable Laws. 

		
	(x)
	Financial Statements.  The Relevant Holdco's Holdco Financial Statements have been prepared in accordance with GAAP, consistently applied throughout the period to which they relate.  The balance sheets contained in the Holdco Financial Statements fairly present in all material respects the financial position of the Holdco as at the date specified therein.

		
	(xi)
	Guarantees.  The Relevant Holdco has no guarantees, indemnities or contingent or indirect obligations with respect to the liabilities or obligations of any other Person.

		
	(xii)
	Employees.  The Relevant Holdco does not have, and has never had, any employees.

		
	(xiii)
	Tax Matters.  

		
	A.
	The Relevant Holdco has duly filed in an accurate manner all returns, reports, forms or other information required to be filed with respect to any Taxes.

		
	B.
	The Relevant Holdco has paid all Taxes required to be paid up to and including the Closing Date. 

		
	C.
	There is no agreement, waiver or other arrangement providing for an extension of time with respect to the filing of any return in respect of Taxes, or payment of any Taxes by the Relevant Holdco, nor is there any action, suit, litigation, arbitration, proceeding, governmental proceeding, investigation or claim, including appeals and applications for review, in progress, pending, or to the Knowledge of the Sellers, Threatened against or relating to the Relevant Holdco.

		
	D.
	The Relevant Holdco has withheld, and will continue until the Closing Date to withhold, any Taxes that are required by Applicable Laws to be withheld and has timely paid or remitted, and will continue until the Closing Date to pay and remit, on a timely basis, the full amount of any Taxes that have been or will be withheld, to the applicable Governmental Authority.

13

		
	E.
	The Relevant Holdco does not have any outstanding assessments for Taxes and, to the Knowledge of the Sellers, there are no threatened or potential assessments or other proceedings, negotiations or investigations in respect of Taxes, against the Relevant Holdco.

		
	F.
	The Relevant Holdco is not subject to liability for Taxes of any other Person.  The Relevant Holdco has not acquired property from any Person in circumstances where it did or could become liable for any Taxes of such Person.  The value of the consideration paid or received by the Relevant Holdco for the acquisition, sale, transfer or provision of property (including intangibles) or the provision of services (including financial transactions) from or to a Person with whom it was not dealing at arm's length within the meaning of the Act was equal to the estimated fair market value of such property acquired, provided or sold or services purchased or provided.  The Relevant Holdco has not entered into any agreement with, or provided any undertaking to, any Person pursuant to which it has assumed liability for the payment of income Taxes owing by such Person.

		
	(i)
	Governmental Authorization.  Except for the Competition Act Approval, the execution, delivery and performance of this Agreement by the Sellers requires no action by, consent or approval of, or filing with, any Governmental Authority.

CORPORATION, SUBSIDIARIES, BUSINESS AND ASSETS
		
	(j)
	Corporate Matters.  The Corporation is a corporation duly incorporated and validly existing under the laws of Ontario.  Neither the nature of the Business nor the location or character of the Assets of the Corporation requires that the Corporation be registered in any other jurisdiction.  The Subsidiaries are duly incorporated under the laws of Delaware and qualified as a foreign corporation in all jurisdictions where the nature of their respective Businesses or the nature and location of their respective Assets requires such qualification and where the failure to do so would reasonably be expected to have a Material Adverse Change.  Neither the nature of the Business nor the location or character of the Assets of the Subsidiaries requires the Subsidiaries to be registered in any other jurisdiction.

		
	(k)
	Authorized and Issued Capital.  The authorized and issued share capital of the Corporation and the Subsidiaries is set out on SCHEDULE C.  Except for employee options which will be terminated on or before Closing, no Person other than the Buyer has any oral or written agreement, option, warrant, right, privilege or any other right, commitment or arrangement of any character capable of becoming any of the foregoing (whether legal, equitable, contractual or otherwise) for the purchase, subscription or issuance of any shares in any of the Corporation or the Subsidiaries.  There are no voting trusts, voting agreements, proxies, shareholder agreements or other similar agreements that may affect the voting or transfer of the Shares or any of the other shares of the Corporation or the Subsidiaries.

		
	(l)
	Capacity to Carry on Business.  The Corporation and the Subsidiaries have all necessary corporate powers and qualifications to own their respective Assets and to carry on their respective Businesses as they are now being operated and carried on.

		
	(m)
	Permits.  SCHEDULE H sets forth a complete list of all material authorizations, licences and permits (together, “Permits”) from any Person, Governmental Authority or other body issued or granted to the Corporation or the Subsidiaries.  To the Knowledge of the Sellers, all such Permits are validly possessed by the Corporation or the Subsidiaries, as applicable, and the Corporation or the Subsidiaries, as applicable, are in compliance with all material terms and conditions thereof.  Except as disclosed in SCHEDULE I, the Corporation possesses or has applied for all Permits necessary in connection with the conduct of its business as currently conducted other than such Permits the absence of which would not reasonably be expected to have a Material Adverse Change.

		
	(n)
	Insolvency or Amalgamation.  No proceedings have been taken or authorized by any Person with respect to the bankruptcy, insolvency, liquidation, dissolution or winding-up of the Corporation or the Subsidiaries or with respect to any amalgamation, merger, consolidation, arrangement or reorganization relating to the Corporation or the Subsidiaries.

		
	(o)
	Financial Statements.  Except as disclosed in SCHEDULE I, the Financial Statements have been prepared in accordance with GAAP, consistently applied throughout the periods to which they relate. The balance sheets contained in the Financial Statements fairly present in all material respects the financial position of the Corporation and the Subsidiaries as at the Balance Sheet Date.  Since the Balance Sheet Date there has been no Material Adverse Change.  

		
	(p)
	Interim Financial Statements.  The Interim Financial Statements have been prepared in accordance with GAAP, applied on a basis consistent with that of the Financial Statements, except for the absence of footnote 

14

disclosure and year-end adjustments and fairly present in all material respects the financial position of the Corporation and the Subsidiaries as at the date of the Interim Financial Statements.
		
	(q)
	Liabilities.  Except to the extent expressly disclosed in the Schedules hereto or reserved against in the Financial Statements or incurred since the Balance Sheet Date in the ordinary course of the Business, neither the Corporation nor any Subsidiary has any outstanding indebtedness or material obligations (whether accrued, absolute, contingent or otherwise) of a nature required by GAAP to be reflected in the Financial Statements.  Any liabilities or obligations incurred in the ordinary course of the Business since the Balance Sheet Date have not, and will not, result in a Material Adverse Change.

		
	(r)
	Litigation.  Except as disclosed in SCHEDULE I, there is no Legal Proceeding in progress or pending or, to the Knowledge of the Sellers, Threatened against or relating to the Corporation or the Subsidiaries or any of their respective Assets or title thereto, nor, to the Knowledge of the Sellers, is there any factual or legal basis upon which any such Legal Proceeding might be commenced with any reasonable likelihood of success.  There is no judgement, decree, injunction, rule or order of any court or Governmental Authority outstanding against the Corporation or the Subsidiaries or any of their respective Assets.

		
	(s)
	Guarantees.  Except for those provided in connection with the Credit Facilities, none of the Corporation or the Subsidiaries has any guarantees, indemnities or contingent or indirect obligations with respect to the liabilities or obligations of any other Person.

		
	(t)
	Indebtedness to Sellers.  Except for the payment of salaries and reimbursement for out-of-pocket expenses in the ordinary course of the Business, neither the Corporation nor any Subsidiary is indebted to any Seller or any director, officer or employee of the Corporation or any Affiliate of any of them.

		
	(u)
	Accounts Receivable.  All accounts receivable of the Corporation and the Subsidiaries: (i) are recorded in the Financial Records; and (ii) are valid obligations enforceable against the account debtor and not subject to set-off, counter-claim or other defences, which arose in the ordinary course of Business.  The reserve taken for doubtful or bad debts in the Financial Statements and Interim Financial Statements is consistent with the past experience and practice of the Corporation and to the Knowledge of the Sellers, no account debtors with material accounts at Closing have sustained any material change of circumstances such as would negatively impact their ability to pay.  Except as disclosed in SCHEDULE I, no internal policy of the Corporation with respect to customer credit has been amended since December 31, 2012.

		
	(v)
	Corporate Records.  The minute books of the Corporation and each Subsidiary are complete in all material respects.

		
	(w)
	Advisory Fees.  Except as disclosed in SCHEDULE I, there is no investment banker, broker, finder or other intermediary or advisor that has been retained by or is authorized to act on behalf of the Corporation, the Subsidiaries, the Holdcos or any Seller who might be entitled to any fee, commission or reimbursement from the Buyer, the Corporation or any Subsidiary and for greater clarity, the transaction fee disclosed in connection with 3.1(w) - Advisory Fees in SCHEDULE I will be deemed to have been incurred immediately prior to Closing.

		
	(x)
	Material Contracts.  Except as disclosed in SCHEDULE I, all Material Contracts to which the Corporation or a Subsidiary is party are valid and subsisting, in full force and effect, and are enforceable by the Corporation or the Subsidiaries, as applicable, in accordance with their terms, except as limited by Applicable Laws affecting the enforcement of creditors' rights generally, by general equitable principles or by the discretion of any Governmental Authority before which any Legal Proceeding seeking enforcement may be brought.  The Corporation and the Subsidiaries are not, and, to the Knowledge of the Sellers, no other party to any Material Agreement is, in default under any Material Contract in any material respect, nor has any event occurred which, with the lapse of time or giving of notice or both, would constitute a material default under any Material Agreement by the Corporation or the Subsidiaries.  

		
	(y)
	Assets.  Each of the Corporation and the Subsidiaries has good and marketable legal and beneficial title to its respective Assets, free and clear of any Encumbrances other than Permitted Encumbrances.  The Assets owned, licensed or leased by the Corporation and the Subsidiaries constitute all of the Assets used or held for use in connection with the Business and are sufficient to permit the continued operation of the Business in substantially the same manner as conducted in the year ended on the Balance Sheet Date.  SCHEDULE J sets out a complete and accurate list of all locations where Assets of the Corporation and the Subsidiaries are located.  Except as disclosed in SCHEDULE I, there is no agreement or other right outstanding in favour of any Person for the purchase from any of the Corporation or the Subsidiaries of the Business or any of its Assets.

		
	(z)
	Leased Assets.  SCHEDULE K sets out details of all personal property other than office or telephone equipment in respect of which any of the Corporation or the Subsidiaries is lessee or licensee and describes the leases, licences, agreements or other documentation relating to them.  All such leases, licences, agreements and documentation are valid and subsisting, all rental and other payments or obligations required to be paid or made by the Corporation or the Subsidiaries, as applicable, pursuant to them have been duly paid and none of the Corporation or the Subsidiaries is otherwise in default in meeting its obligations under them.

15

		
	(aa)
	Owned Real Property.

		
	(i)
	SCHEDULE L sets forth a complete list of the Owned Real Property, in each case by reference to the owner, municipal address and legal description.

		
	(ii)
	Except as disclosed in SCHEDULE I, the Corporation or one of the Subsidiaries, as applicable, is the legal and beneficial owner of the Owned Real Property in fee simple, with good and marketable title thereto, free and clear of all Encumbrances other than Permitted Encumbrances.

		
	(iii)
	Except as disclosed in SCHEDULE I and save for any documentation registered on title to the Owned Real Property or delivered to the Buyer prior to the date hereof, there are no agreements, undertakings or other documents which adversely affect the title to, or ownership of, or the right to occupy, the Owned Real Property and easement rights relating to the Owned Real Property.

		
	(iv)
	Except as disclosed in SCHEDULE I, all accounts for work and services performed or materials placed or furnished upon or in respect of the construction and completion of any of the buildings, improvements or other structures constructed on the Owned Real Property have been fully paid and no one is entitled to claim a lien under the Construction Lien Act, R.S.O. 1990, Chapter C.30, or other similar legislation for such work performed by or on behalf of the Corporation or the Subsidiaries.

		
	(v)
	Except as disclosed in SCHEDULE I or as may be disclosed on title, the operations of the Corporation from the Real Property are not subject to any restriction or limitation that would materially adversely affect the Corporation and are not in contravention of any Applicable Laws.

		
	(vi)
	The Corporation has not received notice of any assessment or any capital charges or levies assessed or proposed to be assessed against any of its Assets by a Governmental Authority or that any Governmental Authority intends to require the Corporation to pay for any future roads, utilities or services relating to the Real Property.

		
	(vii)
	Except as disclosed in SCHEDULE I all improvements (including all plant, buildings, structures, erections, appurtenances and fixtures) situated on or forming part of the Real Property were completed in a good and competent manner and in all material respects in accordance with the requirements of all applicable Governmental Authorities and all such improvements are free of material defect.

		
	(viii)
	The Real Property is serviced by all private and public utility services that are necessary for the operations of the Corporation and/or the Subsidiaries on the Real Property.

		
	(ix)
	To the Knowledge of the Sellers, neither the Corporation nor the Subsidiaries have received a deficiency notice, request or written advice of any breach of any Applicable Law in respect of the Owned Real Property which could, if not corrected, become a work order or could require performance of work or expenditure of money to correct.

		
	(x)
	Access.  To the Knowledge of the Sellers, the Corporation and the Subsidiaries have such rights of entry and exit to and from its Real Property as are reasonably necessary to carry on the Business substantially in the manner in which it is currently carried on.

		
	(xi)
	Flood Hazard Area.  Except as disclosed in SCHEDULE I, to the Knowledge of the Sellers, no portion of the Real Property is located in a flood hazard area as designated by a Governmental Authority or is subject to any flood hazard restrictions or fill regulations of any Governmental Authority.

		
	(xii)
	No Work Orders.  To the Knowledge of the Sellers, there are no work orders outstanding against the Owned Real Property and neither the Corporation nor the Subsidiaries have received a deficiency notice, request or written advice of any breach of any Applicable Law in respect of the foregoing which could, if not corrected, become a work order or could require performance of work or expenditure of money to correct.

		
	(xiii)
	Zoning.  To the Knowledge of the Sellers, the Owned Real Property is zoned to permit current uses and the buildings and improvements situate on the Owned Real Property comply in all material respects with the by-laws and building codes of each municipality in which they are situate.  To the Knowledge of the Sellers, no part of the Owned Real Property is subject to any building or use restriction that would restrict or prevent the use and operation of the Owned Real Property for its current use.  To the Knowledge of the Sellers, neither the Corporation nor the Subsidiaries have outstanding any application for a re-zoning of any of the Owned Real Property and the Sellers are not aware of any proposed or pending change to any zoning affecting the Owned Real Property.

16

		
	(xiv)
	Boundaries.  To the Knowledge of the Sellers, the buildings and improvements situate on the Owned Real Property are located wholly within the boundaries of such Owned Real Property.  To the Knowledge of the Sellers, there are no encroachments affecting the Owned Real Property which could affect the ability of the Corporation or the Subsidiaries to carry on the operations of the Business as they have been carried on in the past or which in the aggregate materially detract from the value of the Owned Real Property.

		
	(xv)
	Permitted Encumbrances.  To the Knowledge of the Sellers, all Permitted Encumbrances which are easements or registered agreements or restrictions are in good standing.  To the Knowledge of the Sellers, each of the Corporation and Subsidiaries subject thereto, and, if relevant, each other Person who is a party thereto, has performed all obligations required to be performed by it thereunder and is not in breach or default in any respect thereunder.

		
	(xvi)
	Easements.  To the Knowledge of the Sellers, none of the easements, rights-of-way and other similar appurtenant interests necessary for the continued use and operation of the Business requires the consent of any other party thereto with respect to the Closing.

		
	(xvii)
	Title.  To the Knowledge of the Sellers, there are no matters affecting the right, title and interest of the Corporation or the Subsidiaries in and to the Owned Real Property which, in the aggregate, would adversely affect the ability to carry on the Business upon the Owned Real Property substantially in the manner in which such operations are currently carried on.

		
	(ab)
	Leased Real Property.

		
	(i)
	SCHEDULE M sets forth a complete list of the Leased Real Property.  The Sellers have made available to the Buyer complete copies of each Real Property Lease and, except as may be noted in SCHEDULE M, each Real Property Lease is valid and in full force and effect.

		
	(ii)
	All payments required to be made by the Corporation or any Subsidiary, as applicable, pursuant to the Real Property Leases have been paid.  Neither the  Corporation nor any Subsidiary is in default in meeting any of its obligations under any of the Real Property Leases, and to the Knowledge of the Sellers, no event exists which but for the passage of time or the giving of notice, or both, would constitute a default of the Corporation or any Subsidiary under the Real Property Leases in any material respect and no party to any Real Property Lease has claimed any default by the Corporation or the Subsidiaries or, to the Knowledge of the Sellers, is taking action purportedly based on such a default..

		
	(iii)
	To the Knowledge of the Sellers, and subject to SCHEDULE I, none of the landlords, sublandlords, tenants, subtenants or other relevant parties under any of the Real Property Leases is in default in meeting any of its obligations under Real Property Leases to which it is a party.

		
	(iv)
	None of the Corporation or the Subsidiaries has waived, or omitted to take any action in respect of, any material rights under any of the Real Property Leases.

		
	(ac)
	Non Disturbance Agreements.  To the Knowledge of the Sellers, there are no non-disturbance agreements, lessor forbearance agreements, lessor waiver agreements or similar agreements affecting any of the Real Property Leases.

		
	(ad)
	Real Property Generally.  The Corporation or the Subsidiaries, as applicable, hold all rights necessary for the continued possession, enjoyment and use of the Real Property for their present purpose without any restriction.

		
	(ae)
	Plant and Equipment.  All plant, equipment, vehicles and other equipment owned or used by the Corporation or the Subsidiaries are:

		
	(i)
	in a good state of repair and condition and in satisfactory working order and have been regularly and properly maintained, ordinary wear and tear excepted; and

		
	(ii)
	capable of doing the work for which they were designed or purchased.

		
	(af)
	Inventories.  The Corporation's and Subsidiaries' inventories of raw materials, components, work in progress and finished goods now held and reflected in the Financial Statements or Interim Financial Statements are:

		
	(i)
	adequate in relation to the current trading requirements of the Business and not excessive;

		
	(ii)
	not obsolete, unusable, unmarketable or inappropriate to the Business as it is currently carried out; and

		
	(iii)
	in good condition, free from defects and capable of being sold by the Corporation and the Subsidiaries, as applicable, in the ordinary course of the Business.

		
	(ag)
	Interests in other Businesses.  Other than the Subsidiaries, the Corporation does not, directly or indirectly, own any shares in or other securities of, or have any interest in the Assets or business of, any other Person.

		
	(ah)
	Intellectual Property Rights.  SCHEDULE N lists all registrations and pending applications for the Intellectual Property Rights owned by the Corporation or the Subsidiaries.  All Intellectual Property Rights used in the course of the Business are either legally and beneficially owned by the Corporation 

17

or the Subsidiaries or are licensed to the Corporation or the Subsidiaries under valid and binding licence agreements and, in each case, are free from any Encumbrance other than Permitted Encumbrances.  The Corporation and its Subsidiaries do not own any registrations or pending applications for Intellectual Property Rights other than those listed in SCHEDULE N.
		
	(ai)
	Non-infringement.  To the Knowledge of the Sellers, the conduct of the Business does not infringe the Intellectual Property Rights of any Person and is in accordance with all agreements pursuant to which the Corporation or the Subsidiaries have the right to use or license any third party Intellectual Property Rights.  To the Knowledge of the Sellers, none of the Corporation or the Subsidiaries has received notice that any Person has instituted or Threatened  any proceeding or action against the Corporation or any of the Subsidiaries alleging any infringement by the Corporation or the Subsidiaries of any Intellectual Property Rights of any Person within the past five years.

		
	(aj)
	Non-infringement by Third Party.  To the Knowledge of the Sellers, there is no challenge, infringement or other violation of any of the Corporation's or Subsidiaries' Intellectual Property Rights by any third party.

		
	(ak)
	Insurance.  Particulars of all insurance policies maintained by the Corporation and Subsidiaries are listed in SCHEDULE O.  The Corporation and the Subsidiaries maintain insurance policies in force against loss on such Assets, against such risks, in such amounts and to such limits as is in accordance with prudent business practices for corporations such as the Corporation and the Subsidiaries, in each case having regard to the location, age and character of its Assets.  The Corporation and the Subsidiaries have complied in all material respects with all requirements of such insurance, including the payment of all premiums and the prompt giving of notice of any claim.

		
	(al)
	Applicable Laws.  To the Knowledge of the Sellers, the Corporation and the Subsidiaries are in material compliance with all Applicable Laws, except as disclosed in SCHEDULE I and except for such non-compliance which would not reasonably be expected to result in a Material Adverse Change. 

		
	(am)
	Employees.  

		
	(i)
	Privacy Laws.  The Corporation is in full compliance with the Personal Information Protection and Electronic Documents Act, S.C. 2000, c.5., except for such non-compliance which would not reasonably be expected to result in a Material Adverse Change.

		
	(ii)
	Employees.  SCHEDULE P contains a complete and up-to-date list of all employees of the Corporation and the Subsidiaries specifying the length of service, the job title or classification, level of remuneration, and if the employee is not actively employed as of the date of this Agreement, the reason why. 

		
	(iii)
	Outstanding Offers.  No outstanding offer of employment has been made by the Corporation or the Subsidiaries to any person, nor has any person accepted an offer of employment made by the Corporation or the Subsidiaries who has not yet commenced employment with the Corporation or the Subsidiaries.

		
	(iv)
	Claims.  There are no complaints, appeals, claims or charges pending or outstanding at any tribunal or agency or, to the Knowledge of the Sellers, Threatened, nor are there any orders, decisions, directions or convictions currently registered or outstanding by any tribunal or agency against, or in respect of, the Corporation or the Subsidiaries under or in respect of any Applicable Law or regulations relating to employment, employment practices, workers' compensation or the protection of the health and safety of employees.

		
	(v)
	Collective Agreements.  

		
	(a)
	No trade union, counsel of trade unions, employee bargaining agency or affiliated bargaining agent:

		
	(i)
	holds bargaining rights with respect to any employees of the Corporation or the Subsidiaries by way of certification, interim certification, voluntary recognition, designation or successor rights;

		
	(ii)
	has applied to be certified as the bargaining agent of any employees of the Corporation or the Subsidiaries within the last year; or

		
	(iii)
	has applied to have the Corporation or the Subsidiaries declared a related employer or successor employer pursuant to applicable labour legislation.

		
	(b)
	To the Knowledge of the Sellers, there are no actual, threatened or pending, organizing activities of any trade union, counsel of trade unions, employee bargaining agency or affiliated bargaining agent or any actual, threatened or pending unfair labour 

18

practice complaints, strikes, work stoppages, picketing, lock-outs, boycotts, slowdowns, arbitrations, grievances, complaints, charges or similar labour related disputes or proceedings pertaining to the Corporation or the Subsidiaries, and there have not been any such activities or disputes or proceedings within the last year, except as disclosed in SCHEDULE Q.
		
	(vi)
	Vacation Pay.  Except as disclosed in SCHEDULE Q, all vacation pay for employees of the Corporation or the Subsidiaries is properly reflected and accrued in the books and accounts of the Corporation.

		
	(vii)
	Terms and Conditions. Except as disclosed in SCHEDULE I, since the Balance Sheet Date, except in the ordinary course of business and consistent with the Corporation's past practices, there have been no increases or decreases in staffing levels of the Corporation or the Subsidiaries and there have been no material changes in the terms and conditions of employment of any employees of the Corporation or the Subsidiaries, including their salaries, remuneration and any other payments to them, and there have been no material changes in any remuneration payable or benefits provided to any officer, director, consultant, independent or dependent contractor or agent of the Corporation or the Subsidiaries, and the Corporation or the Subsidiaries has not agreed or otherwise become committed to materially change any of the foregoing since that date.

		
	(viii)
	Employee Benefit Plans.  SCHEDULE R contains a complete and accurate list of each Employee Benefit Plan.  All of the Employee Benefit Plans, and all contributions to and payments from such Employee Benefit Plans, are and have been made, established, registered, qualified (if applicable) invested and administered in all material respects in accordance with all Applicable Laws or other legislative, administrative or judicial proclamations applicable to the Employee Benefit Plans and; the terms of the Employee Benefit Plans.  Except as disclosed in SCHEDULE I, neither the execution, delivery or performance of this Agreement, nor the consummation of any of the other transactions contemplated by this Agreement, will result in any bonus, golden parachute, severance or other payment or obligation to any current or former employee or director of the Corporation or the Subsidiaries, materially increase the benefits payable or provided under any Employee Benefit Plan, result in any acceleration of the time of payment or vesting of any such benefit, or increase or accelerate employer contributions thereunder.

		
	(an)
	Environmental.  Except as described in SCHEDULE I:

		
	(i)
	the Business is and has been, and the associated Assets are, in compliance in all material respects with Environmental Laws, except where the failure to be in compliance would not result in a Material Adverse Change;

		
	(ii)
	the Corporation and the Subsidiaries have obtained all permits, licences and authorizations required under Environmental Laws for the operation of the Business, or any part thereof, (the “Environmental Permits”), except where the failure to possess any such Environmental Permit would not reasonably be expected to result in a Material Adverse Change.  All of such Environmental Permits are described in SCHEDULE H. Each such Environmental Permit is valid and subsisting, and none of the Corporation or the Subsidiaries is in default or breach, in any material respect, of any of such Environmental Permits and no proceeding is pending or, to the Knowledge of the Sellers, Threatened to revoke, amend or limit any Environmental Permit. Subject to receipt of Required Consents, none of the Environmental Permits will become void, or be in default, as a result of this Agreement or the completion of the transactions contemplated in this Agreement;

		
	(iii)
	none of the Corporation or the Subsidiaries has received written notice of, nor been prosecuted for, an offence alleging violation of, or non-compliance with, any Environmental Laws.  To the Knowledge of the Sellers, there are no facts that could give rise to a notice of non-compliance with any Environmental Law which would result in a Material Adverse Change.  None of the Corporation or the Subsidiaries has received written notice of or have knowledge, to the Knowledge of the Sellers, of a threatened order of a Government Authority relating to Environmental Laws requiring any work, repairs, construction or capital expenditures to be made with respect to the Business or Assets;

		
	(iv)
	none of the Corporation or the Subsidiaries has received written notice or have knowledge, to the Knowledge of the Sellers, of a threatened proceeding by a Governmental Authority, or a lawsuit, making a demand for damages or alleging other potential liability with respect to violations of Environmental Laws; 

19

		
	(v)
	none of the Corporation or the Subsidiaries has used the Assets to generate, manufacture, process, distribute, use, treat, store, dispose of, transport or handle any Hazardous Substance except in compliance with Environmental Laws in all material respects; 

		
	(vi)
	none of the Corporation or the Subsidiaries has caused or permitted the release of any Hazardous Substance in, under or on its Real Property except in compliance with Environmental Laws in all material respects;

		
	(vii)
	the Corporation and the Subsidiaries have provided the Buyer with copies of all analyses and monitoring data for soil, groundwater and surface water and all reports pertaining to any environmental assessments or audits relating to the Corporation and the Subsidiaries that are in the possession or control of the Corporation and the Subsidiaries;

		
	(viii)
	the Corporation and the Subsidiaries maintained all environmental and operating documents and records in the manner and for the time periods required by Environmental Laws; and

		
	(ix)
	neither the Corporation nor the Subsidiaries has breached any obligation to report to any Governmental Authority imposed by any Environmental Law.

		
	(ao)
	Tax Filings and Payments.  The Corporation and the Subsidiaries have: 

		
	(i)
	duly filed in an accurate manner all returns, reports, forms or other information required to be filed with respect to any Taxes; and

		
	(ii)
	paid all Taxes for all previous years required to be paid up to and including the Closing Date.

		
	(ap)
	Tax Dispute Matters.  

		
	(i)
	There is no agreement, waiver or other arrangement providing for an extension of time with respect to the filing of any return in respect of Taxes, or payment of any Taxes by any of the Corporation or the Subsidiaries, nor is there any action, suit, litigation, arbitration, proceeding, governmental proceeding, investigation or claim, including appeals and applications for review, in progress, or to the Knowledge of the Sellers, Threatened or pending against or relating to the Corporation or the Subsidiaries, except as disclosed in SCHEDULE I.

		
	(ii)
	the Corporation and the Subsidiaries have withheld, and will continue until the Closing Date to withhold, any Taxes that are required by Applicable Laws to be withheld and has timely paid or remitted, and will continue until the Closing Date to pay and remit, on a timely basis, the full amount of any Taxes that have been or will be withheld, to the applicable Governmental Authority;

		
	(iii)
	none of the Corporation or the Subsidiaries has any outstanding assessments for Taxes and, to the Knowledge of the Sellers, there are no threatened or potential assessments or other proceedings, negotiations or investigations in respect of Taxes, against the Corporation or the Subsidiaries, except as disclosed in SCHEDULE I;

		
	(iv)
	none of the Corporation or the Subsidiaries are subject to liability for Taxes of any other Person.  None of the Corporation or the Subsidiaries have acquired property from any Person in circumstances where the said entity did or could become liable for any Taxes of such Person.  The value of the consideration paid or received by the said entity for the acquisition, sale, transfer or provision of property (including intangibles) or the provision of services (including financial transactions) from or to a Person with whom the said entity was not dealing at arm's length within the meaning of the Act was equal to the estimated fair market value of such property acquired, provided or sold or services purchased or provided.  None of the Corporation or the Subsidiaries have entered into any agreement with, or provided any undertaking to, any Person pursuant to which it has assumed liability for the payment of income Taxes owing by such Person;

		
	(aq)
	Canadian-Controlled Private Corporation.  Immediately before execution of this Agreement, the Corporation was a "Canadian-controlled private corporation" within the meaning of that term under the Act.

		
	(ar)
	Withholdings and Remittances.  The Corporation and the Subsidiaries have withheld from each payment made to any of their present or former employees, officers and directors, and to all non-resident Persons all amounts required by Applicable Law to be withheld, and have remitted such withheld amounts to the appropriate Governmental Authority.  Each of the Corporation and the Subsidiaries has remitted all pension plan contributions, employment insurance premiums, employer health taxes and other Taxes payable by it in respect of its respective employees to the proper Governmental Authority under Applicable Laws.  The Corporation and the Subsidiaries have charged, collected and remitted all Taxes as required under Applicable Laws on any sale, supply or delivery whatsoever, made by the Corporation or the Subsidiaries, as applicable.

2.Disclaimer of other Representations and Warranties

20

.  The Sellers do not make and have not made any representations and warranties, express or implied, in respect of the Corporation or the Subsidiaries other than those expressly set forth in Section 3.1 and the Sellers expressly disclaim all liability and responsibility for any representation, warranty, covenant, agreement or statement made or information communicated (orally or in writing) to the Buyer (including any opinion, information or advice that may have been provided to the Buyer or any of its Affiliates by any Seller or any director, officer, employee, accounting firm, legal counsel or other agent of the Corporation or any Subsidiary).  All implied warranties of merchantability and fitness for a particular purpose are expressly excluded.  It is also understood that any cost estimates, projections or other predictions, any data, any financial information or any memoranda or presentations are not and will not be deemed to be or to include representations and warranties of the Sellers, except to the extent otherwise expressly covered by the representations and warranties of the Sellers hereunder.  Notwithstanding anything to the contrary contained in this Agreement or in any of the Schedules, any information disclosed in one Schedule will be deemed to be disclosed for all purposes of this Agreement where the relevance of such matter is or should be reasonably apparent. The disclosure of any information will not be deemed to constitute an acknowledgement that such information is required to be disclosed in connection with the representations and warranties made by the Sellers in this Agreement or that it is material, nor will such information be deemed to establish a standard of materiality (and the actual standard of materiality may be higher or lower than the matters disclosed by such information).
		
	Part4
	

BUYER'S REPRESENTATIONS AND WARRANTIES

1.Representations and Warranties.  In order to induce the Sellers to enter into and consummate this Agreement, the Buyer, severally in respect of paragraphs (a) through (g) and each Parent, severally in respect of paragraphs (a) through (c), represents and warrants to the Sellers that the following statements set out in this Part 4 are true and correct:
		
	(a)
	Corporate Matters.  The Buyer and each Parent:

		
	(i)
	is a corporation duly incorporated and validly existing under the laws of its jurisdiction of incorporation;

		
	(ii)
	has the capacity and authority to execute and deliver this Agreement and the Closing Documents to which it is party and to complete the transactions contemplated hereby; and

		
	(iii)
	has taken all action necessary to authorize the execution and delivery of, and the observance and performance of its covenants and obligations under, this Agreement and the Closing Documents, if any, to which it is party.

		
	(b)
	Execution, Delivery and Enforceability.  This Agreement has been, and each Closing Document to which the Buyer or either Parent is a party will on Closing be, duly executed and delivered by the Buyer and each Parent, as applicable, and this Agreement constitutes, and each Closing Document to which the Buyer or either Parent is a party will on Closing constitute, a valid and binding obligation of the Buyer and each Parent, as applicable, enforceable against the Buyer and the Parents, as applicable, in accordance with its terms.

		
	(c)
	Non-Contravention.  The performance of this Agreement will not:

		
	(i)
	conflict with, or result in the breach of, or constitute a default under, any agreement, arrangement or instrument to which the Buyer or either Parent is party or the constating documents of the Buyer or either Parent, or any Encumbrance, lease, contract, order, judgment, regulation or other restriction or obligation of any kind by which the Buyer or either Parent or any of their respective Assets is bound; or

		
	(ii)
	subject to obtaining Competition Act Approval, contravene or conflict with any laws or regulations binding upon or applicable to the Buyer or either Parent.

		
	(d)
	Financial Ability. The Buyer has cash on hand or unconditional commitments from lenders, copies of which have been provided to the Seller, in amounts sufficient to allow it to pay the Purchase Price, including any adjustments, and all other costs and expenses in connection with the consummation of the transactions contemplated by this Agreement.

		
	(e)
	Litigation.  There is no Legal Proceeding in progress or pending, or, to the Knowledge of the Sellers, Threatened against or relating to the Buyer, nor, to the Knowledge of the Buyer, is there any factual or legal basis upon which any such Legal Proceeding might be commenced with any likelihood of success, and there is no judgment, decree, injunction, rule or order outstanding against or affecting the Buyer, which, if determined adversely to the Buyer, would prevent the Buyer from paying the Purchase Price to the Sellers, enjoin, restrict or prohibit the transfer of all or any part of the Shares as contemplated by this Agreement or prevent the Buyer from fulfilling any of its obligations set out in this Agreement or arising from this Agreement. 

21

		
	(f)
	Regulatory Approvals and Consents.  Except for the Competition Act Approval, no approval or filing with, notice to, or waiver from any Governmental Authority is required to be obtained or made by the Buyer, and no consent is required nor is any notice required to be given under any agreement to which the Buyer is a party or by which it is bound, in connection with the execution and delivery of, and performance by the Buyer of its obligations under, this Agreement or the consummation of the transactions contemplated hereby.

		
	(g)
	Advisory Fees.  There is no investment banker, broker, finder or other intermediary or advisor that has been retained by or is authorized to act on behalf of the Buyer who might be entitled to any fee, commission or reimbursement from the Sellers.

2.Due Diligence by Buyer. The Buyer acknowledges that it has conducted to its satisfaction an independent investigation of the financial condition, liabilities, results of operations and projected operations of the Corporation and the Subsidiaries and the nature and condition of their respective Assets and, in making the determination to proceed with the transactions contemplated by this Agreement, has relied solely on the results of such investigation and the representations and warranties in Section 3.1 as well as the Seller's covenants set out in Section 5 and the Buyer's Conditions in Section 6, and, except to the extent specifically set forth in Section 3.1. 

		
	Part5
	

COVENANTS OF THE PARTIES

1.Conduct of Business Prior to Closing.  Except as otherwise permitted by this Agreement, during the period from the date of this Agreement to the Closing Date, the Sellers will, and will cause the Corporation and the Subsidiaries to:
		
	(a)
	use its Commercially Reasonable Efforts to carry on the Business in the usual and ordinary course, consistent with past practice, except as permitted by this Agreement.  Notwithstanding the foregoing, nothing contained in this Agreement will prohibit the Corporation or the Subsidiaries, whether or not in the usual and ordinary course of Business and whether or not consistent with past practices, to pay or prepay any obligation or to pay, distribute or transfer any cash to the Corporation or the Sellers;

		
	(b)
	continue in force all existing policies of insurance presently maintained by the Corporation and maintain insurance on all the assets of the Corporation and the Subsidiaries at least to the levels as they are insured on the date of this Agreement and give all notices and present all claims under all such policies of insurance in a due and timely fashion;

		
	(c)
	preserve intact the Business and the Assets, operations and affairs of the Corporation and the Subsidiaries (other than the sale of Assets in the ordinary course of the Business) and use Commercially Reasonable Efforts to preserve for the Buyer the goodwill of suppliers, customers and others having business relations with the Corporation and the Subsidiaries;

		
	(d)
	comply in all material respects with Applicable Laws affecting the operation of the Business and pay all required Taxes;

		
	(e)
	subject to Section 5.1(a), above, pay and discharge all liabilities or obligations of the Corporation and the Subsidiaries in the ordinary and usual course of the Business consistent with past practice, except for such liabilities or obligations as may be contested by the Corporation or the Subsidiaries in good faith; and

		
	(f)
	not increase the compensation level of any employee, officer or director in any material respect.

2.Restrictions Prior to Closing.  Except as otherwise permitted by this Agreement or with the prior written consent of the Buyer, which will not be unreasonably withheld, conditioned or delayed, during the period from the date of this Agreement to the Closing Date, the Sellers will not and will ensure that the Corporation and the Subsidiaries do not:
		
	(a)
	permit the Corporation or the Subsidiaries to incur or agree to incur any liability other than in the ordinary course of the Business;

		
	(b)
	enter into, amend or terminate or agree to enter into, amend or terminate any Material Contract; 

		
	(c)
	create, allot, issue, purchase or redeem any of its share capital or acquire any shares in any other corporation or agree to do so; or

		
	(d)
	permit the Working Capital to be less than the Required Working Capital.

3.Access to Information.  Between the date of this Agreement and the Closing Date, the Sellers will (and will cause the Corporation and the Subsidiaries to) give to the Buyer and its directors, officers, employees, agents and advisers full access, during normal business hours, to all of the properties, employees, books, records, databases, contacts, commitments and records of the Corporation and the Subsidiaries, and will furnish to the Buyer any information reasonably requested by it.

22

		
	4.
	      Consents.  The Sellers and the Buyer will each use Commercially Reasonable Efforts to obtain, at or before Closing, all permits, consents, assignments, approvals, certificates, registrations and authorizations required to permit the completion of the transactions contemplated by this Agreement including consent of the lenders under the Credit Facilities (“Required Consents”), a complete list of which is set out in SCHEDULE S.  The Buyer will cooperate with the Sellers and will use Commercially Reasonable Efforts to assist the Sellers, to obtain all Required Consents required to be obtained by the Sellers.  The Sellers will cooperate with the Buyer and will use Commercially Reasonable Efforts to assist the Buyer, to obtain all Required Consents required to be obtained by the Buyer.  Each party will notify the other parties as soon as reasonably practicable upon becoming aware of any fact or matter that may affect or prevent obtaining the Required Consents and each time a Required Consent has been obtained.  The parties acknowledge and agree that no Seller, the Corporation, nor any Subsidiary will be required to make any payment to any third party in order to obtain any Required Consent unless the Buyer agrees to reimburse such payment.

		
	5.
	       Notification.  The Sellers will immediately notify the Buyer in writing of any action or circumstance which may arise between the date of this Agreement and the Closing Date which results, or may result, in:

		
	(a)
	a Material Adverse Change; 

		
	(b)
	a breach of any representation or warranty of the Sellers contained in this Agreement, if such representation or warranty were repeated at any time before Closing by reference to the facts and circumstances then existing; or

		
	(c)
	any of the information provided in the Schedules to this Agreement becoming untrue or incorrect in any material respect.

6.Confidentiality.  The parties acknowledge and agree that the following will apply to the use and disclosure of Confidential Information:
		
	(a)
	the Buyer will not at any time use or disclose or permit there to be used or disclosed any Confidential Information relating to or belonging to the Corporation or the Subsidiaries except as permitted in the Confidentiality Agreement;

		
	(b)
	the Buyer will treat all information received from or on behalf of the Corporation or the Subsidiaries in connection with the transactions contemplated in this Agreement as confidential and subject to the Confidentiality Agreement and the Buyer will cause its officers, directors, employees, affiliates, financial advisors and agents to comply with the provisions of the Confidentiality Agreement with respect to such information;

		
	(c)
	the provisions of the Confidentiality Agreement are hereby incorporated in this Agreement by reference with the same effect as if fully set forth herein and the Buyer will comply with such terms as if it were also a party thereto; and

		
	(d)
	the parties acknowledge that the fulfillment of requirements to file with Governmental Authorities, including those under the Competition Act and the Investment Canada Act and other disclosures permitted or contemplated in this Agreement do not constitute a breach of this paragraph.

7.Filings in Relation to obtaining Competition Act Approval.
		
	(a)
	Each of the parties hereto shall prepare and submit, and will cooperate with each other in connection with the preparation and submission of, all applications and filings as may be or become necessary or deemed advisable under the Competition Act for or in connection with the consummation of the transactions contemplated in this Agreement.

		
	(b)
	Without limiting the generality of subparagraph (a), the parties agree that:

		
	(i)
	as soon as is reasonably practicable, the Buyer and the Sellers will prepare and file a pre-merger notification pursuant to Section 114(1) of the Competition Act and a request for an advance ruling certificate pursuant to Section 102 of the Competition Act (or, in the alternative, a no-action letter);

		
	(ii)
	the parties will promptly supply such additional or supplementary information as may be requested by the Competition Bureau (Canada) with respect to the Competition Act Approval, whether pursuant to Section 114 (2) of the Competition Act or otherwise;

		
	(iii)
	to the extent it is reasonably practicable to do so having regard to the circumstances then existing, cooperate with each other in connection with the making of all filings with or responses to the Competition Bureau (Canada), including providing copies to each other party and its advisors of all documents proposed to be filed or submitted to the Competition Bureau (Canada) prior to filing or responding, and, if requested, consider in good faith all reasonable additions, deletions or changes suggested in connection therewith, provided that any competitively sensitive, privileged or confidential matters will only be shared with and between external counsel for the parties and will not be exchanged between the parties hereto;

		
	(iv)
	to the extent it is reasonably practicable to do so having regard to the circumstances then existing, promptly notify the other parties of any communication to that party from the 

23

Competition Bureau (Canada) and permit the other party to review in advance any proposed communication to the Competition Bureau (Canada);
		
	(v)
	to the extent it is reasonably practicable to do so having regard to the circumstances then existing, not participate in any meeting with the Competition Bureau (Canada) in respect of any filings, investigation or other inquiry unless that party consults with the other party in advance and, to the extent permitted by the Competition Bureau (Canada), gives the other party the opportunity to attend and participate thereat; and

		
	(vi)
	they will not take any action that will have the effect of delaying, impairing or impeding the receipt of the Competition Act Approval.  For greater certainty, other than as explicitly provided for in this section, the Buyer will not be required to take any action to resolve any objections the Commissioner may have to the transactions contemplated in this Agreement or to avoid or eliminate any impediments to obtaining the Competition Act Approval.

		
	(c)
	The Buyer and Sellers each pay 50% of all governmental fees associated with any filing under or pursuant to this Section 5.7, which will be paid at the time of the applicable filing.

		
	(d)
	The Buyer will file a notification as required under Part III of the Investment Canada Act (Canada) in the manner prescribed thereunder, within 30 days after Closing.

8.Books and Records.  The Buyer covenants to use reasonable care to preserve the books and records of the Corporation, the Subsidiaries and the Holdcos delivered to it for a period of six years from the Closing Date, or for such longer period as is required by any Applicable Law, and will permit the Sellers or their authorized representatives reasonable access thereto in connection with the affairs of the Sellers.
		
	9.
	Pre-Closing Reorganization.  Buyer agrees that any or all of the Sellers may, at any time before Closing, implement a reorganization (“Pre-Closing Reorganization”) in the manner described at SCHEDULE T, provided that any new shareholders arising as a result of such reorganization will be bound by the terms of this Agreement, deemed to be “Sellers” for the purpose of this Agreement, obliged to sell their shares in the Relevant Holdco to the Buyer on the terms and conditions contained herein, and required to provide all of the representations, warranties and covenants that are provided by the Sellers herein, shall assume all liabilities and duties of any shareholder or Seller for whom such shareholder is the successor in interest, and provided further that the Pre-Closing Reorganization:  (a) will not have the effect of imposing any incremental obligations for Taxes for the Buyer, the Holdcos, the Corporation or the Subsidiaries; and (b) will not have an adverse effect on Holdcos, the Corporation or the Subsidiaries or their respective businesses or Assets or impose any cost, liability or expense on any of them that is not reimbursed by Sellers.  No Pre-Closing Reorganization will be considered in determining whether a representation, warranty or covenant of the Sellers hereunder has been breached, other than pursuant to the terms of this Section 5.9 but excluding the consideration of the Competition Act Approval.  The Sellers will provide written notice to the Buyer upon completion of any Pre-Closing Reorganization together with an updated SCHEDULE A reflecting any changes to Sellers, Shares and Purchase Price allocation resulting from the Pre-Closing Reorganization (which updated SCHEDULE A will be deemed to be incorporated into and form part of this Agreement), and access to all relevant documentation relating to such Pre-Closing Reorganization.

		
	10.
	Directors and Officers.  If Closing occurs, the Buyer will, and will cause the Corporation and the Subsidiaries to, take any necessary actions to provide that all rights to indemnification, exculpation, expense reimbursement and all limitations on liability existing in favour of any current or former officers, directors or employee of the Corporation or the Subsidiaries, as provided in: (a) its constating documents in effect as of the date hereof; or (b) any policy of insurance or agreement in existence as of the date hereof; will, if commercially reasonable, survive Closing and continue in full force and effect for a period of not less than six years after the Closing Date.

		
	11.
	Taxes.

		
	(a)
	The Buyer will cause each of the Corporation, the Subsidiaries and each Holdco to prepare and file Tax returns for all taxation years or periods ending on or prior to the Closing Date on a timely basis.  The Seller Representative will have the opportunity to review such returns before they are filed.  Such returns will be prepared consistent with prior practice, except where otherwise required under Applicable Law.  The Buyer will cooperate with the Seller Representative to effect such filings on a timely basis.  The Buyer will cause the Corporation, Holdcos and the Subsidiaries to remit any Taxes shown as owing on such Tax returns in a timely manner.

		
	(b)
	The Buyer will provide notice to the Seller Representative of any inquiries made by, discussions with or representations or submissions proposed to be made to any taxation authority to the extent that the subject matter thereof relates to representations, covenants or obligations of the Sellers hereunder or could reasonably give rise to a right of indemnity hereunder.  The Buyer will forthwith advise the Seller Representative of the substance of any such inquiries or discussions and provide the Seller Representative with copies of any written communications from any taxation authority relating to such inquiries or discussions.  The Buyer will provide the Seller Representative a reasonable opportunity 

24

to comment on any such representations or submissions and to attend any meeting with any such taxation authority with respect to such matters.
		
	(c)
	The Buyer will provide the reasonable assistance of the employees or personnel of the Buyer, Corporation, the Subsidiaries and the accounting and legal and other representatives and advisors of the Buyer, the Corporation and the Subsidiaries and otherwise take such reasonable steps to cooperate with the Seller Representative and render all reasonable assistance, as the Seller Representative may reasonably request (including, to the extent requested by the Seller Representative, dealing directly with any taxation authority in relation to audits, inquiries, discussions or disputes), with respect to all matters relating to any inquiries, discussions or disputes where the subject matter thereof relates to representations, covenants or obligations of the Sellers hereunder or could reasonably be expected to give rise to a right of indemnity hereunder.

		
	(d)
	The Buyer will, and will cause the Corporation, Holdcos and Subsidiaries to, upon reasonable request of the Seller Representative, use all reasonable commercial efforts to take reasonable steps, including obtaining any certificate or other document from, or effect any filing with, any taxation authority as may be considered desirable to mitigate, reduce or eliminate any Taxes that could be imposed on the Corporation, Holdcos or Subsidiaries and that could reasonably give rise to a right of indemnity hereunder, provided that the Buyer and the Corporation will not be required to expend more than nominal amounts of money to effect same, unless their reasonable costs of doing so are reimbursed by the Sellers.

12.Working Capital Certificate.  The Sellers will cause the Corporation to provide the Buyer with one unaudited Working Capital statement within ten Business Days after receipt of a written request from the Buyer (the “Certificate Date”) (provided that such request is delivered more than ten Business Days before Closing), such statement to be in keeping with the format set out in SCHEDULE F and certified by the Seller Representative as being true and complete to the Knowledge of the Sellers and prepared in accordance with GAAP, applied consistently with the Corporation's past practices as used in its preparation of Financial Statements (the “Working Capital Certificate”).  Where the request is made before the 15th day of the month, the Working Capital Certificate will be current as of the close of business on the last Business Day of the second month preceding the Certificate Date.  Where the request is made after the 15th day of the month the Working Capital Certificate will be current as of the close of business on the last Business Day of the month immediately preceding the Certificate Date.
		
	13.
	Accounts Receivable

		
	(a)
	The Buyer will cause the Corporation and the Subsidiaries to take commercially reasonable efforts to collect accounts receivable which were outstanding as of the Closing Date and included in the Working Capital Statement (“Existing Accounts”), which efforts will be deemed not to include judicial action or legal demand.  After 120 days following Closing, the Seller Representative may participate in the Corporation's collections efforts with respect to Existing Accounts then outstanding and subject to this Section 5.13.  Such participation may include contacting customers directly, and the Buyer will cause the Corporation and the Subsidiaries to cooperate with the Seller Representative by providing information to enable the Seller Representative to participate in the collection efforts, including the details of any outstanding Existing Accounts, and the name and contact information for each applicable customer.

		
	(b)
	If the Buyer creates additional accounts receivable from an account debtor who is also an account debtor under certain Existing Accounts after the Closing Date (“New Accounts”), and such account debtor makes only partial payment of its obligations in respect of the New Accounts and the Existing Accounts, such partial payments will be allocated to payment of the New Accounts or Existing Accounts as such account debtor designates in writing with its payments. If the account debtor does not make any such designation, then for the purpose of this section, such payments will be applied on a first-issued, first-paid basis.  For any account debtor in bankruptcy proceedings, such payments will be allocated as determined by a court of competent jurisdiction.

		
	(c)
	During the period beginning on the Closing Date and ending on the 180th day following Closing (the “Review Date”), the Buyer will provide the Seller Representative with a report within five Business Days after the end of each month listing all Existing Accounts and showing in detail any payment history as well as, in reasonable detail, a description of collection efforts.  After the Review Date, the Buyer will provide the Seller Representative with such a report within five Business Days after the end of each month only in respect of Existing Accounts for which the Buyer received a reimbursement for an AR Shortfall in accordance with this Section 5.13 until the earlier of: (a) the date on which the parties agree not to take any further collection proceedings in respect of such accounts; or (b) the 

25

date on which collection of the accounts becomes statute barred pursuant to applicable limitations legislation.
		
	(d)
	The Buyer will produce a statement current to the Review Date (the “AR Statement”) listing all Existing Accounts and identifying all amounts collected with respect to such Existing Accounts and any collections of other accounts receivable issued prior to Closing which were written off prior to Closing and not included in the Working Capital Statement (“Other Pre-Closing Collections”), which AR Statement will include a calculation showing, as applicable, either:

		
	(i)
	the amount by which the outstanding Existing Accounts exceeds the aggregate of the reserve referred to in Section 3.1(u) and any Other Pre-Closing Collections (as such amounts may be adjusted pursuant to the dispute resolution proceedings described below) (“AR Shortfall”); provided that, in respect of Existing Accounts which remain outstanding on the Review Date because of a customer setting off obligations relating to its dealings with the Corporation or the Subsidiaries after closing, the amount of any such set off will be excluded from the amount of such Existing Account outstanding on the Review Date; or

		
	(ii)
	the amount by which the aggregate of the reserve referred to in Section 3.1(u) and any Other Pre-Closing Collections exceeds the outstanding Existing Accounts (as such amounts may be adjusted pursuant to the dispute resolution proceedings described below) (“AR Surplus”).

		
	(e)
	The Buyer will deliver such AR Statement to the Seller Representative on or before the fifth day of the month following the Review Date.  Within ten Business Days after receipt of the AR Statement, the Seller Representative will either: confirm the calculation of AR Shortfall or AR Surplus, as applicable; or dispute the calculation of AR Shortfall or AR Surplus, as applicable, setting out in reasonable detail the Seller Representative's objections to the calculation.  If the Seller Representative disputes the AR Shortfall, the process for dispute resolution in Section 2.4(d) will apply mutatis mutandis.

		
	(f)
	Upon confirmation of an AR Shortfall pursuant to (e), above, the Sellers will pay 50% of  the AR Shortfall (“Indemnification Amount”) to the Buyer as follows: the Buyer will be entitled to withdraw the lesser of the Indemnification Amount and the remaining balance of the Holdback within two days of notice to the Escrow Agent to the Buyer, and the Sellers will pay any remaining outstanding portion of the Indemnification Amount to the Buyer within five Business Days of receipt of a written request from the Buyer.  Upon confirmation of an AR Surplus pursuant to (e), above, the Buyer will pay 50% of the AR Surplus to the Sellers within five Business Days of receipt of a written request from the Seller Representative.

		
	(g)
	In the event of a confirmed AR Shortfall the Sellers will have the right to pay 50% of any third party costs incurred to pursue collection of accounts after the Review Date and in such event any collections made net of expenses will be shared.

		
	(h)
	The Sellers will have the right, upon reasonable notice and during business hours, to designate representatives to audit the financial records of the Corporation and the Subsidiaries to confirm compliance with this Section 5.13.

		
	(i)
	Several sample calculations based on the provisions of this Section are set out at SCHEDULE W for illustrative purposes.

14.Environmental.
		
	(a)
	The parties will jointly engage WESA to perform and complete as soon as reasonably practicable the Additional Environmental Diligence and provide a report (“WESA Report”) to the parties.  If, in the course of conducting the Additional Environmental Diligence, WESA identifies:

		
	(i)
	the presence of any contamination that, if brought to the attention of the Ministry of the Environment, would result in the issuance of a remediation order against the Corporation excluding, for certainty, orders arising due to the absence of an environmental compliance approval (“MOE Event”);

		
	(ii)
	the presence of contamination that has migrated, is, or may imminently be, migrating off of the Owned Real Property at a level in excess of applicable standard from the “Soil, Ground Water and Sediment Standards for Use under Part XV.1 of the Environmental Protection Act” published by the Ministry of the Environment and dated April 15, 2011 (“Migration Event”); or

		
	(iii)
	the presence of any contamination (other than those parameters excluded by the public health unit) exceeding the Ontario Drinking Water Quality Standards in a groundwater aquifer that is used for drinking water within 250 metres of the boundary of the Owned Real Property (“Water Event”);

then the parties will direct WESA to provide its reasonable estimate of the cost of remediating such condition, in the case of an MOE Event, such that the Ministry of Environment would not issue a 

26

remediation order, and in the case of an Environmental Event, to the applicable standard described above, and include such estimate in the WESA Report.
		
	(b)
	If the WESA Report identifies one or more MOE Events with an aggregate estimated remediation cost of $1,000,000 or less, then the Closing Working Capital will be deemed to be reduced by an amount equal to such aggregate estimated remediation cost.

		
	(c)
	If the WESA Report identifies one or more Migration Events or Water Events (together, “Environmental Events”) and the aggregate estimated remediation cost for such events is greater than $1,000,000 but less than $2,000,000, then the Closing Working Capital will be deemed to be reduced by an amount equal to the amount by which the estimated remediation cost exceeds $1,000,000.

		
	(d)
	For the purpose of this section, if the estimated cost of remediation specified in the WESA is a range, the parties will use the median of such range as the estimated remediation cost.

		
	(e)
	All costs incurred in connection with the WESA Report will be shared and paid 50% by the Buyer and 50% by the Sellers.

Part6

CONDITIONS
1.Buyer's Conditions.  The obligations of the Buyer to complete the sale and purchase of the Shares under this Agreement will be subject to the fulfilment of each of the following conditions on or before the Closing Date.
		
	(a)
	Accuracy of Representations and Warranties.  The representations and warranties of the Sellers set out in this Agreement that are qualified as to materiality will be true and correct, and those not so qualified will be true and correct in all material respects as at the Closing Date, except to the extent that such representations and warranties expressly relate to an earlier date (in which case such representations and warranties qualified as to materiality will be true and correct, and those not so qualified will be true and correct in all material respects as at such earlier date).

		
	(b)
	Consents.  All Required Consents will have been obtained from the appropriate Governmental Authorities and other Persons on terms reasonably satisfactory to the Buyer.

		
	(c)
	Competition Act.  Any required Competition Act Approval will have been obtained.

		
	(d)
	Performance of Obligations.  The Sellers will have performed and complied in all material respects with all obligations, covenants and agreements to be performed and complied with by each of them on or before Closing under this Agreement.

		
	(e)
	Material Adverse Change.  There will have been no change, event or circumstance that has resulted or that could reasonably be expected to result in a Material Adverse Change between the date of this Agreement and the Closing Date.

		
	(f)
	Closing Documentation.  All documents listed in Section 9.2 will have been received by the Buyer.

		
	(g)
	Outside Date.  The transactions contemplated under this Agreement will have Closed on or before the Outside Date.

		
	(h)
	Required Working Capital.  The Buyer will have received a certificate of a senior officer of the Corporation confirming that, as of the Closing Date, the Working Capital is not less than the Required Working Capital.

		
	(i)
	Confirmation of Discharge.  The Buyer will have received a pay-out statement from lenders to the Corporation and the Subsidiaries under the Credit Facilities confirming the amount of any outstanding indebtedness and a commitment to discharge security upon receipt by such lenders of payment in full.

		
	(j)
	Environmental.  The Buyer will have received the WESA Report and such report will not have identified:

		
	(i)
	one or more MOE Events with an aggregate estimated remediation cost in excess of $1,000,000, unless the Sellers have agreed to a deemed reduction of the Closing Working Capital by the full amount of such estimated remediation costs; or

		
	(ii)
	one or more Environmental Events with an aggregate estimated remediation cost in excess of $2,000,000, unless the Sellers have agreed to a deemed reduction of the Closing Working Capital by an amount equal to $1,000,000 plus 50% of the amount by which the estimated remediation costs exceed $2,000,000.

2.Waiver/Termination.  The conditions contained in Section 6.1 are for the exclusive benefit of the Buyer and may be waived by it in whole or in part at any time.  If any of the conditions in Section 6.1 are not fulfilled or waived on or before the Closing Date, the Buyer will be entitled to treat this Agreement as terminated and will be relieved of all obligations under this Agreement, except that rights and liabilities of the parties which have accrued prior to termination will subsist.

27

		
	3.
	        Sellers' Conditions.  The obligations of the Sellers to complete the sale and purchase of the Shares under this Agreement will be subject to the fulfilment of each of the following conditions on or before the Closing Date.

		
	(a)
	Accuracy of Representations and Warranties.  The representations and warranties of the Buyer set out in this Agreement that are qualified as to materiality will be true and correct, and those not so qualified will be true and correct in all material respects as at the Closing Date, except to the extent that such representations and warranties expressly relate to an earlier date (in which case such representations and warranties qualified as to materiality will be true and correct, and those not so qualified will be true and correct in all material respects as at such earlier date).

		
	(b)
	Consents.  All Required Consents will have been obtained from the appropriate Governmental Authorities and other Persons on terms reasonably satisfactory to the Sellers.

		
	(c)
	Competition Act.  Any required Competition Act Approval will have been obtained.

		
	(d)
	Performance of Obligations.  The Buyer will have performed and complied in all material respects with all obligations, covenants and agreements to be performed and complied with by each of them on or before Closing under this Agreement.

		
	(e)
	Material Adverse Change.  There will have been no change, event or circumstance that has resulted or that could reasonably be expected to result in a Material Adverse Change between the date of this Agreement and the Closing Date.

		
	(f)
	Closing Documentation.  All documents and payments listed in Section 9.3 will have been received by the Sellers including, without limitation, payment of the Purchase Price.

		
	(g)
	Outside Date.  The transactions contemplated under this Agreement will have Closed on or before the Outside Date.

		
	(h)
	Environmental.  The Sellers will have received the WESA Report and such report will not have identified: 

		
	(i)
	one or more MOE Events with an aggregate estimated remediation cost in excess of $1,000,000; or

		
	(ii)
	one or more Environmental Events with an aggregate estimated remediation cost in excess of $2,000,000.

4.Waiver/Termination.  The conditions contained in Section 6.3 are for the exclusive benefit of the Sellers and may be waived by them in whole or in part at any time.  If any of the conditions in Section 6.3 are not fulfilled or waived on or before the Closing Date, the Sellers will be entitled to treat this Agreement as terminated and will be relieved of all obligations under this Agreement, except that rights and liabilities of the parties which have accrued prior to termination will subsist.
		
	5.
	Frustration.  Neither Buyer nor the Sellers may rely on the failure of any condition set forth in this Part to be satisfied if such failure was caused by such party's breach of its obligations under this Agreement or failure to act in good faith or use Commercially Reasonable Efforts to cause the Closing to occur.

		
	Part7
	

SURVIVAL AND INDEMNITY

1.Survival of Representations and Warranties.  The representations and warranties of the Sellers in this Agreement will survive Closing and the payment of the Purchase Price and will continue in full force and effect for a period of 18 months from the Closing Date: (i) except that the representations and warranties of the Sellers with respect to Taxes contained in Sections 3.1(h)(xiii), 3.1(oo), 3.1(pp), 3.1(qq) and 3.1(rr) will remain in full force and effect for a period of 90 days after the later of: (A) the last date on which an assessment or reassessment for Taxes under Applicable Law imposing Taxes can be made against the Relevant Holdco, Corporation or the Subsidiaries, as applicable, in respect of the period up to the Closing Date; and (B) the date on which the period for an appeal in respect of an assessment, reassessment or other determination of the Taxes for which the Relevant Holdco, Corporation or the Subsidiaries, as applicable, is liable, or in respect of a decision of a court or other Governmental Authority in respect of such Taxes expires without an appeal having been lodged; and (ii) except that the representations and warranties of the Sellers in Sections 3.1(d), 3.1(e), 3.1(h), 3.1(j) and 3.1(k) (together, “Fundamental Representations”) will survive indefinitely; and (iii) except that the representations and warranties of the Sellers in Section 3.1(nn) will survive for a period of three years from the Closing Date; and (iv) except that there will be no time limit for the Buyer to make a claim in respect of fraud.
		
	2.
	Indemnification of Buyer.  The Sellers severally, and not jointly unless otherwise expressly indicated, covenant and agree to indemnify and hold harmless the Corporation, the Buyer, their Affiliates, and their respective directors, officers, employees and agents from and against any Damages (including, without limitation, reasonable legal fees) suffered or incurred as a result of, or arising out of:

		
	(a)
	any assessment or reassessment for Taxes for any period up to and including the Closing Date for which no adequate reserve has been provided for and disclosed in the Financial Statements or Interim 

28

Financial Statements or in the case of a Seller's Relevant Holdco, the applicable Holdco Financial Statements;
		
	(b)
	any of the representations or warranties of the Sellers in this Agreement being untrue or incorrect; or

		
	(c)
	a breach of any covenant or obligation made in this Agreement by any Seller;

(which Damages are collectively referred to as “Buyer's Losses”).
		
	3.
	Indemnification of Sellers.  The Buyer covenants and agrees to indemnify and hold harmless the Sellers, their Affiliates, and their respective directors, officers, employees and agents from and against any Damages (including, without limitation, reasonable legal fees) suffered or incurred as a result of, or arising out of:

		
	(a)
	any of the representations or warranties of the Buyer in this Agreement being untrue or incorrect; or

		
	(b)
	a breach of any covenant or obligation made in this Agreement by the Buyer;

(which Damages are collectively referred to as “Sellers' Losses”).
		
	4.
	Limitations on Sellers' Liability.  The Sellers will not be liable under the indemnity provision in Section 7.2 in respect of any claim unless:

		
	(a)
	written notice of the claim providing reasonable details of the alleged Buyer's Losses has been provided to the Seller Representative on or before the expiry dates specified in Section 7.1; and

		
	(b)
	the aggregate of the Buyer's Losses exceeds the sum of $1,000,000 (in which event, the Sellers will only be liable for the aggregate amount of such Buyer's Losses in excess of such amount) provided that to the extent that any Buyer's Losses are based on fraud or on any breach of the Fundamental Representations, Section 3.1(u) or that any AR Shortfall under Section 5.13 arises, the foregoing de minimus threshold will not apply.

The aggregate liability of the Sellers under this Agreement will not in any circumstances exceed: (i) for Buyer's Losses arising out of a breach of Fundamental Representations, the Purchase Price, and (ii) for any other Buyer's Losses, 10% of the Purchase Price, except to the extent that such Buyer's Losses arise from fraud, Section 3.1(u) or in the event and to the extent of any AR Shortfall under Section 5.13, in which case no maximum threshold will apply. For purposes of determining whether minimum or maximum indemnifiable Buyer Losses have occurred, any misrepresentation or warranty that is qualified in scope as to materiality, Material Adverse Change or similar qualifications will be deemed to be made or given without such qualification, except where any such representation or warranty requires disclosure of lists or items of a material nature or above a specified threshold.  The Buyer will not be entitled to make a claim for indemnification based on breach of the representations and warranties of the Sellers in Section 3.1(nn) for matters identified in the WESA Report which are the subject of a deemed reduction of the Closing Working Capital.
		
	5.
	Limitations on Buyer's Liability.  The Buyer will not be liable under the indemnity provision in Section 7.3 in respect of any claim unless written notice of the claim providing reasonable details of the alleged Sellers' Losses has been provided to the Buyer within 18 months after the Closing Date, except in respect of a claim arising out of the Buyer's breach of Section 5.10.

		
	6.
	No Double Recovery.  No party will be entitled to double recovery for any Damages even though they may have resulted from the breach of more than one of the representations, warranties, agreements and covenants made by another party in this Agreement.  The amount of any Buyer's Losses or Sellers' Losses, as applicable, will be: (i) increased to take into account any net Tax cost incurred by the Indemnified Party arising out of the receipt of the indemnity payments hereunder; (ii) reduced to take account of any Tax benefit realizable by the Indemnified Party arising out of the incurrence or payment of any such Buyer's Losses or Sellers' Losses, as applicable.

		
	7.
	Eligible Damages.  No Party will be liable for any special, indirect, incidental, consequential, punitive or aggravated Damages, including Damages for loss of profits and lost business opportunities.

		
	8.
	Awareness of Buyer.   Notwithstanding any other provision of this Agreement to the contrary, if on the Closing Date an Indemnified Party knows of any information that would cause one or more of the representations and warranties made by any Indemnifying Party in this Agreement to be inaccurate, the Indemnified Party will have no right or remedy after the Closing with respect to such inaccuracy and will be deemed to have waived its rights to indemnification in respect thereof.

		
	9.
	Exclusive Remedy.  The rights of indemnity set forth in this Part 7 are, from and after Closing, the sole and exclusive remedy of each party in respect of any misrepresentation, incorrectness in or breach of any representation or warranty, or breach of covenant, by the another party under this Agreement.  Accordingly, the parties waive, from and after the Closing, any and all rights, remedies and claims that one party may have against another, whether at law, under any statute or in equity (including claims for contribution or other rights of recovery, claims for breach of contract, breach of representation and warranty, negligent misrepresentation and all claims for breach of duty), or otherwise, directly or indirectly, relating to the provisions of this Agreement 

29

or the transactions contemplated by this Agreement other than as expressly provided for in this Part 7 and other than those arising with respect to any fraud.  The parties agree that if a claim for indemnity is made by one party in accordance with Sections 7.2 or 7.3, as the case may be, and there has been a refusal by another party to make payment or otherwise provide satisfaction in respect of such indemnity, then a legal proceeding is the appropriate means to seek a remedy for such refusal.  This Section 7.9 will remain in full force and effect in all circumstances and will not be terminated by any breach (fundamental, negligent or otherwise) by any party of its representations, warranties or covenants under this Agreement or under any agreement or document delivered pursuant to this Agreement or by any termination or rescission of this Agreement. 
		
	10.
	Duty to Mitigate.  Nothing in this Agreement will in any way restrict or limit the general obligation at law of a party to mitigate any Damages which it may suffer or incur by reason of the breach by the another party of any representation, warranty or covenant of that other party under this Agreement. 

		
	11.
	Agency for Non-Parties.  Each party hereby accepts each indemnity in favour of each of its Indemnified Parties who are not parties as agent and trustee of that Indemnified Party. Each party may enforce an indemnity in favour of any of that party's Indemnified Parties on behalf of each such Indemnified Party.

		
	12.
	Notice of Claim.  If any of the Sellers or the Buyer become aware of any act, omission or state of facts that may give rise to Damages in respect of which a right of indemnification is provided for under this Part 7, that party will promptly give written notice thereof (a “Notice of Claim”) to the other parties.  The Notice of Claim will specify whether the potential Damages arise as a result of a claim by a Person against that party (a “Third Party Claim”) or whether the potential Damages do not so arise (a “Direct Claim”), and will also specify with reasonable particularity (to the extent that the information is available) the factual basis for the Direct Claim or Third Party Claim, as the case may be, and the amount of the potential Damages arising therefrom, if known.

		
	13.
	Direct Claims.  In the case of a Direct Claim, the Indemnifying Party will have 60 days from receipt of a Notice of Claim in respect thereof within which to make such investigation as the Indemnifying Party considers necessary or desirable. For the purpose of such investigation, the Indemnified Party will make available to the Indemnifying Party the information relied upon by the Indemnified Party to substantiate its right to be indemnified under this Part 7, together with all such other information as the Indemnifying Party may reasonably request. If the Parties fail to agree at or before the expiration of such 60 day period (or any mutually agreed upon extension thereof), the Indemnified Party will be free to pursue such remedies as may be available to it.

		
	14.
	Third Party Claims.  In the case of a Third Party Claim, the provisions in the following paragraphs of this Section 7.14 apply.

		
	(a)
	Rights of Indemnifying Party. The Indemnifying Party will have the right, at its expense, to participate in but not control the negotiation, settlement or defence of the Third Party Claim, which control will rest at all times with the Indemnified Party, unless the Indemnifying Party:

		
	(i)
	irrevocably acknowledges in writing complete responsibility for, and agrees to indemnify the Indemnified Party in respect of, the Third Party Claim; and

		
	(ii)
	furnishes evidence to the Indemnified Party which is satisfactory to the Indemnified Party of its financial ability to indemnify the Indemnified Party;

in which case the Indemnifying Party may assume such control at its expense through counsel of its choice.
		
	(b)
	Respective Rights on Indemnifying Party's Assumption of Control. If the Indemnifying Party elects to assume control as contemplated in Section 7.14(a), the Indemnifying Party will reimburse the Indemnified Party for all of the Indemnified Party's out-of-pocket expenses incurred as a result of such participation or assumption up to the date of the Indemnifying Party's election. The Indemnified Party will continue to have the right to participate in the negotiation, settlement or defence of such Third Party Claim and to retain counsel to act on its behalf, provided that the fees and disbursements of such counsel will be paid by the Indemnified Party unless the Indemnifying Party consents to the retention of such counsel at its expense or unless the named parties to any action or proceeding include both the Indemnifying Party and the Indemnified Party and a representation of both the Indemnifying Party and the Indemnified Party by the same counsel would be inappropriate due to the actual or potential differing interests between them (such as the availability of different defences), in which case the fees and disbursements of such counsel will be paid by the Indemnifying Party. The Indemnified Party will co-operate with the Indemnifying Party so as to permit the Indemnifying Party to conduct such negotiation, settlement and defence and for this purpose will preserve all relevant documents in relation to the Third Party Claim, allow the Indemnifying Party access on reasonable notice to inspect and take copies of all such documents and require its personnel to provide such statements as the Indemnifying Party may reasonably require and to attend and give evidence at any trial or hearing in respect of the Third Party Claim.

30

		
	(c)
	Lack of Reasonable Diligence. If, having elected to assume control of the negotiation, settlement or defence of the Third Party Claim, the Indemnifying Party thereafter fails to conduct such negotiation, settlement or defence with reasonable diligence, then the Indemnified Party will be entitled to assume such control and the Indemnifying Party will be bound by the results obtained by the Indemnified Party with respect to such Third Party Claim.

		
	(d)
	Other Rights of Indemnified Party. If the Indemnifying Party fails to assume control of the defence of any Third Party Claim, the Indemnified Party will have the exclusive right to contest, settle or pay the amount claimed and the Indemnifying Party will be bound by the results obtained by the Indemnified Party with respect to such Third Party Claim. Whether or not the Indemnifying Party assumes control of the negotiation, settlement or defence of any Third Party Claim, the Indemnifying Party will not settle any Third Party Claim without the written consent of the Indemnified Party, which consent will not be unreasonably withheld or delayed.

15.Several Obligations. Except in respect of Buyer's Losses arising as a result of a Seller's representations or warranties under Sections 3.1(a) through 3.1(i) being untrue or incorrect, each Seller's obligations under this Part will be limited to such Seller's proportionate share of Buyer's Losses based on the percentages set out in column 4 of SCHEDULE A.  The obligations of each Seller hereunder are several, except that the obligations of each Seller within a Seller Group are joint and several with each other Seller within such Seller Group, and the obligations of each Seller Group will be limited to the aggregate portion of the Purchase Price received by such Seller Group.
		
	16.
	        Purchase Price Adjustment.  Any amount paid by the Buyer or the Sellers pursuant to this Part will be treated as an adjustment to the Purchase Price for all Tax purposes.

		
	17.
	       Notice/Agency.  Each Seller hereby irrevocably constitutes and appoints Wesley T. Thompson (“Seller Representative”) as such Seller's attorney-in-fact and agent for the purpose of dealing with the Buyer for all matters relating to or arising out of this Agreement, and the Sellers acknowledge and agree that, as agent, Wesley T. Thompson has authority to deal with the Buyer on behalf of all Sellers in respect of any matter arising out of this Agreement.  This power is irrevocable and coupled with an interest, and will not be affected by the death, incapacity, illness, dissolution or other inability to act of any Seller.  Any notice or other deliverable required to be given to the Sellers under this Part will be effective if provided to Wesley T. Thompson in accordance with Section 10.2.  The Seller's may designate a replacement Seller Representative from among the individual Sellers by notice in writing to the Buyer signed by all Sellers delivered to the Buyer no later than five Business Days before such designation takes effect.  All Sellers agree that any notices or deliverables from the Sellers to the Buyer hereunder, including though not limited to Section 2.4, shall be provided exclusively through the Seller Representative and the Buyer may rely on the authority of the Seller Representative in that regard and further will deal exclusively with the Seller Representative and not individual Sellers.

		
	Part8
	

TERMINATION
1.Termination.  This Agreement may be terminated, by notice given prior to completion of the sale and purchase of the Shares herein contemplated:
		
	(a)
	by the Buyer if any of the conditions in Section 6.1 have not been satisfied as of the Closing Date or if satisfaction of such a condition is or becomes impossible (other than through the failure of the Buyer to comply with its obligations under this Agreement) and the Buyer has not waived such condition on or before the Closing Date;

		
	(b)
	by the Seller Representative if any of the conditions in Section 6.3 have not been satisfied as of the Closing Date or if satisfaction of such a condition is or becomes impossible (other than through the failure of the Sellers to comply with their obligations under this Agreement) and the Sellers have not waived such condition on or before the Closing Date;

		
	(c)
	by written agreement of the Seller Representative and the Buyer; or

		
	(d)
	by the Seller Representative or the Buyer if the completion of the sale and purchase of the Shares herein contemplated has not occurred (other than through the failure of the party seeking to terminate this Agreement to comply fully with its obligations under this Agreement) on or before the Outside Date.

2.Effect of Termination.  Each party's right of termination under Section 8.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.  If this Agreement is terminated pursuant to Section 8.1, all further obligations of the parties under this Agreement will terminate, except that the obligations in Sections 5.6, 7.17, 10.2, 10.4, 10.5, 10.6 and 10.12 will survive; provided, however, that if this Agreement is terminated by a party because of a breach of a representation or warranty, covenant, obligation or other provision of this Agreement by the other party or because one or more of the conditions to the terminating party's obligations under this Agreement is not 

31

satisfied as a result of the other party's failure to comply with its obligations under this Agreement, the terminating party's right to pursue all legal remedies with respect to such breach will survive such termination unimpaired.

		
	Part9
	

CLOSING

1.Closing.  The sale and purchase of the Shares and the other transactions contemplated by this Agreement will be closed (the “Closing”) at the offices of Davis LLP, 1 First Canadian Place, Suite 6000, 100 King Street West, Toronto, Ontario at 10a.m. (Toronto Time) on July 31, 2013, or if the conditions precedent to Closing are not satisfied or waived on or before July 26, 2013, then the last month-end Business Day after satisfaction or waiver of all conditions precedent, or such other date or at such other place as may be mutually agreed upon in writing by the parties (the “Closing Date”).

		
	2.
	Delivery by Sellers.  On the Closing Date the Sellers will deliver, or cause to be delivered, the following documents to the Buyer:

		
	(a)
	share certificates representing the Shares in the names of the respective Sellers endorsed for transfer to the Buyer;

		
	(b)
	new share certificates representing the Shares in the name of the Buyer;

		
	(c)
	a certified copy of resolutions of the directors of each Holdco and the Corporation approving and authorizing the transfer of the Shares from the Sellers to the Buyer, the registration of the Shares in the name of the Buyer and the issue of the share certificates referred to in Section 9.2(b);

		
	(d)
	the minute books and all other books and records of the Corporation, the Subsidiaries and each Holdco;

		
	(e)
	a certificate executed by the Sellers certifying that the representations and warranties of the Sellers set out in this Agreement are true and correct; 

		
	(f)
	duly executed resignations of all existing directors and officers of the Corporation, the Subsidiaries and each Holdco, such resignations to be effective as of the Closing Date;

		
	(g)
	all documentation, fully executed, necessary to change the registered and records office of the Corporation and the Holdcos and the Subsidiaries to addresses designated in writing by the Buyer, effective as of the Closing Date;

		
	(h)
	executed copies of all Required Consents required to be obtained by the Sellers;

		
	(i)
	a certificate of status for the Corporation and certificates of good standing for each Subsidiary issued not earlier than ten Business Days prior to the Closing Date;

		
	(j)
	the Non-Competition Agreement;

		
	(k)
	confirmation of the payment in full of any outstanding shareholder loans (which may take the form of a direction from the relevant Seller to the Buyer directing the Buyer to pay the amount of such shareholder loan to the Corporation from such Seller's allocation of the Purchase Price); 

		
	(l)
	legal opinions in respect of the Sellers that are corporations or trusts, in form and substance substantially similar to the draft legal opinion attached as SCHEDULE U; and

		
	(m)
	all such other documents, instruments, records, conveyances, assignments, assurances, consents and certificates which, in the opinion of the Buyer, acting reasonably, are necessary to effect and evidence the transfer of the Shares to the Buyer free and clear of all Encumbrances. 

3.Delivery by Buyer.  On the Closing Date, the Buyer will deliver, or cause to be delivered, the following to the Sellers:
		
	(a)
	a certificate executed by the Buyer certifying that the representations and warranties of the Buyer set out in this Agreement are true and correct;

		
	(b)
	executed copies of all Required Consents required to be obtained by the Buyer;

		
	(c)
	a wire transfer for an amount equal to the Purchase Price to the bank account(s) designated in writing by the Sellers;

		
	(d)
	a certificate of status or good standing, as applicable, for the Buyer issued not earlier than ten Business Days prior to the Closing Date;

		
	(e)
	20 baseball caps with the Parents' logos, the style, size and color to be determined by the Buyer, in its sole discretion; and

		
	(f)
	all such other documents, instruments, records, conveyances, assignments, assurances, consents and certificates which, in the opinion of the Sellers, acting reasonably, are necessary to effect and evidence the transfer of the Shares to the Buyer.

32

Part10

GENERAL
1.Public Announcements.  Except: (a) to the extent required by Applicable Law; or (b) with the written consent of the other parties; no party will make any public announcement or disclosure regarding the transactions contemplated by this Agreement.  If announcement is required by Applicable Law, the party proposing to make the announcement will consult with the other parties in advance of making its announcement, and use Commercially Reasonable Efforts to incorporate any suggested revisions to the form and content of the proposed announcement.
		
	2.
	       Notices.  Any notice or communication required or permitted to be given under this Agreement will be in writing and will be considered to have been sufficiently given if delivered by hand, transmitted by facsimile transmission or mailed by prepaid registered post in Canada to the address or facsimile transmission number of each party set out below:

if to the Buyer:
Lansing Trade Group LLC 
10975 Benson Drive, Suite 400 
Overland Park, Kansas, US 66210 
Attention:    William Krueger
Fax No:      913-748-3001
and 
The Andersons, Inc. 
480 W. Dussel 
Maumee, Ohio 43537 
Attention:    Dennis Addis
Fax No:      419-891-6513
with copies to 
Thomas Carew 
Lansing Trade Group LLC 
10975 Benson Drive, Suite 400 
Overland Park, Kansas, US 66210 
and 
Naran Burchinow 
The Andersons, Inc. 
480 W. Dussel 
Maumee, Ohio 43537

33

c/o Wesley T. Thompson
43 Nichols Dr.
Blenheim, ON
N0P 1A0
with a copy to:
Don Bell
Davis LLP
1 First Canadian Place, Suite 6000
PO Box 367, 100 King Street West
Toronto, Ontario M5X 1E2
Fax: 416-777-7413
or to such other address or facsimile transmission number as any party may, from time to time, designate in the manner set out above.  Any such notice or communication will be considered to have been received:
		
	(a)
	if delivered by hand during business hours on a Business Day, upon receipt by a responsible representative of the receiver, and if not delivered during business hours, upon the commencement of business hours on the next Business Day;

		
	(b)
	if sent by facsimile transmission during business hours on a Business Day, upon the sender receiving confirmation of the transmission, and if not transmitted during business hours, upon the commencement of business hours on the next Business Day following confirmation of the transmission; and

		
	(c)
	if mailed by prepaid registered post in Canada, upon the fifth Business Day following posting; except that, in the case of a disruption or an impending or threatened disruption in postal services every notice or communication will be delivered by hand or sent by facsimile transmission.

3.Time of Essence.  Time will be of the essence of this Agreement.
		
	4.
	      Governing Law.  This Agreement will be governed by and construed in accordance with the laws of Ontario and applicable Canadian law and will be treated in all respects as an Ontario contract.

		
	5.
	      Submission to Jurisdiction.  Each of the parties will:

		
	(a)
	submit to the jurisdiction of the courts of Ontario; and

		
	(b)
	if any appointed agent is required, notify the others in writing of the name and address of its appointed agent.

6.Entire Agreement.  This Agreement and the documents and instruments to be executed and delivered under it constitute the entire agreement among the parties and supersedes any previous agreement or arrangement, oral or written, among the parties.  This Agreement and the documents and instruments to be executed and delivered under it, contain all the covenants, representations, and warranties of the respective parties.  There are no oral representations or warranties between the parties of any kind.  This Agreement may not be amended or modified in any respect except by written instrument signed by each of the parties.
		
	7.
	      Severability.  If any provision of this Agreement is or becomes illegal, invalid or unenforceable under the laws of any jurisdiction, that will not affect or impair:

		
	(a)
	the legality, validity or enforceability in that jurisdiction of any other provision of this Agreement; or

		
	(b)
	the legality, validity or enforceability under the law of any other jurisdiction of that or any other provision of this Agreement.

8.Currency.  All transactions referred to in this Agreement will be made in lawful currency of Canada in immediately available funds.  Any reference to cash in this Agreement includes a reference to cash, certified cheque, bankers draft, wire or electronic transfer.
		
	9.
	Accounting Principles.  All calculations made or referred to in this Agreement will be made in accordance with GAAP.  Unless the context otherwise requires, all accounting terms used in this Agreement which are not defined in this Agreement will have the meaning assigned to them in accordance with GAAP.

34

		
	10.
	Enurement.  This Agreement will enure to the benefit of and will be binding upon the parties and their respective heirs, executors, administrators, successors and assigns.

		
	11.
	Further Assurances.  At any time after Closing, each of the parties will at their own expense execute and deliver all such documents and instruments and do all such acts as any other party may reasonably require in order to give full effect to the intent and meaning of this Agreement and the transactions contemplated by it.

		
	12.
	Costs and Expenses.  Except as specifically provided otherwise in this Agreement, each party will be responsible for its own legal fees and other costs and expenses incurred in connection with the purchase and sale of the Shares (including any Taxes imposed on such fees, costs or expenses), all negotiations between the parties and the consummation of the transactions contemplated by this Agreement.

		
	13.
	Assignment.  Subject to the Sellers' right to implement a Pre-Closing Reorganization and subject to the Buyer's right to assign this Agreement to its Affiliate (which may be a newly incorporated entity), this Agreement and the rights and obligations hereunder are not assignable or transferable by any party without the prior written consent of the other parties hereto.  The Buyer will remain fully liable for its obligations under this Agreement notwithstanding any assignment of its rights to its Affiliate.  The obligations of each Buyer under this Agreement are joint and several.

		
	14.
	Holdback.  The amount of the Holdback will not be deemed to create or imply any limitation to the indemnification rights of Buyer (including the maximum size of any claim subject to indemnification) or any other claims it may have pursuant to this Agreement or by operation of law.

		
	15.
	Parents.  The Parents will each cause the Buyer to comply with its obligations under this Agreement and indemnify and hold harmless the Sellers, their Affiliates from any Damages arising out of a failure by the Buyer to comply with its obligations under this Agreement.

		
	16.
	Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts (which may be facsimile copies) but will not take effect until each party has executed at least one counterpart.  Each counterpart will constitute an original and all the counterparts together will constitute a single agreement.

TO EVIDENCE THEIR AGREEMENT each of the parties has executed this Agreement as of the date first set out above.

	
			
	BUYER:
2371701 ONTARIO LIMITED
	 
	 

	/s/Ken Whitelaw
	 
	 

	Ken Whitelaw
Director
	 
	 

	PARENTS:

	THE ANDERSONS, INC.
	 
	LANSING TRADE GROUP LLC

	/s/Michael J. Anderson
	 
	/s/William Krueger

	Michael J. Anderson
Chairman and Chief Executive Officer
	 
	William Krueger
President and Chief Executive Officer

SELLERS:    
	
			
	

	 
	WESLEY T. THOMPSON FAMILY TRUST

35

	
			
	/s/Wesley T. Thompson
	 
	/s/Wesley T. Thompson

	Wesley T. Thompson
	 
	Wesley T. Thompson
Trustee

	 
	 
	ANNA MCKINLAY FISHER FAMILY BUSINESS TRUST

	/s/Anna McKinlay Fisher
	 
	/s/Anna McKinlay Fisher

	Anna McKinlay Fisher
	 
	Anna McKinlay Fisher
Trustee

_/s/John C. Thompson__________________________
John C. Thompson
Trustee

	

	 
	JOHN CRAWFORD THOMPSON FAMILY BUSINESS TRUST

	/s/John C. Thompson
	 
	/s/John C. Thompson

	John C. Thompson
	 
	John C. Thompson
Trustee

_/s/Anna McKinlay Fisher_______________________
Anna McKinlay Fisher
Trustee

	

	 
	ROBERT MACCALLUM THOMPSON FAMILY BUSINESS TRUST

	/s/Robert M. Thompson
	 
	/s/Robert M. Thompson

36

	
			
	Robert M. Thompson
	 
	Robert M. Thompson
Trustee

_/s/W. Jeffrey Thompson_______________________
W. Jeffrey Thompson
Trustee

	

	 
	WILLIAM JEFFREY THOMPSON FAMILY BUSINESS TRUST

	/s/W. Jeffrey Thompson
	 
	/s/W. Jeffrey Thompson

	W. Jeffrey Thompson
	 
	W. Jeffrey Thompson
Trustee

_/s/Robert M. Thompson________________________
Robert M. Thompson
Trustee

	/s/Jennifer Patricia Wilson
	 
	/s/Margaret L. Thompson

	Jennifer Patricia Wilson
	 
	Margaret L. Thompson

	/s/Patricia F. Thompson
	 
	/s/Wesley D. Thompson

	Patricia F. Thompson
	 
	Wesley D. Thompson

37

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