Document:

EX-10.1

Exhibit 10.1

SHAREHOLDERS’ AGREEMENT

          THIS SHAREHOLDERS’ AGREEMENT (this “Agreement”), dated as of December 15, 2008, by and
among Columbus Acquisition Corp. (the “Parent”), a Delaware corporation, Stephen D. Cope
(“Cope”), as escrow representative, and the undersigned parties listed under Company
Shareholders on the signature pages hereto (each, a “Company Shareholder” and,
collectively, the “Company Shareholders”), the undersigned parties listed under Founders on
the signature page hereto (each, a “Founder” and, collectively, the “Founders”),
and such other Persons that become parties to this Agreement pursuant to the terms and conditions
of this Agreement (the “Additional Shareholders”).

          In consideration of the mutual covenants and agreements herein contained and other good and
valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to
this Agreement hereby agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.1 Definitions. The following capitalized terms used herein have the
following meanings:

          “Additional Shareholders” has the meaning set forth in the preamble to this Agreement.

          “Affiliate” or “affiliate” means, with respect to any specified Person, any
other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing;
provided that Affiliate shall be deemed not to include any portfolio companies of Columbus Nova or
their Affiliates; and provided further that the Parent shall not be deemed to be an Affiliate of
any Shareholder.

          “Agreement” means this Agreement, as amended, restated, supplemented, or otherwise
modified from time to time.

          “Board” means the board of directors of Parent.

          “Closing” has the meaning set forth in Section 2.3 of the Merger Agreement.

          “Commission” means the Securities and Exchange Commission, or any other federal agency
then administering the Securities Act or the Exchange Act.

 

 

          “Common Stock” means the common stock, par value $.0001 per share, of Parent.

          “Company” means Integrated Drilling Equipment Company, a Delaware corporation.

          “Company Shareholder” has the meaning set forth in the preamble to this Agreement.

          “Company Shareholder Directors” has the meaning set forth in Section 2.1(b).

          “Company Shareholder Replacement Director” has the meaning set forth in Section 2.2.

          “Company Stock” shall mean the Common Stock and any other capital stock of any class
or series of Parent and any shares of capital stock issuable upon the conversion, exercise or
exchange of securities of the Parent convertible into, or exercisable or exchangeable for, any such
Common Stock or other capital stock of the Parent.

          “Company Shareholder Demand Registration” has the meaning set forth in Section 4.1(a).

          “Company Shareholder Demanding Holder” has the meaning set forth in Section 4.1(a).

          “Demand Registration” means either a Company Shareholder Demand Registration or a
Founder Demand Registration.

          “Demanding Holder” means the Company Shareholder Demanding Holder if a Company
Shareholder Demand Registration is demanded or the Founder Demanding Holder if a Founder Demand
Registration is demanded.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

          “Form S-3” means Form S-3 or any similar short-form registration which may be
available at such time.

          “Founder” has the meaning set forth in the preamble to this Agreement.

          “Founder Demand Registration” has the meaning set forth in Section 4.1(b).

          “Founder Demanding Holder” has the meaning set forth in Section 4.1(b).

          “Founder Director” has the meaning set forth in Section 2.1(b).

          “Founder Replacement Director” has the meaning set forth in Section 2.2.

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          “Founder Warrant” means the warrants purchased privately by certain of the Founders
simultaneously with the consummation of Parent’s initial public offering.

          “Founders Escrow Agreements” means the Stock Escrow Agreement and the Warrant Escrow
Agreement, both dated as of May 18, 2007, by and among Parent, certain of the Founders and
Continental Stock Transfer & Trust Company.

          “Governmental Authority” means any federal, state, local or foreign government,
executive official thereof, governmental or regulatory authority, agency or commission, including
courts of competent jurisdiction, domestic or foreign.

          “Indemnified Party” has the meaning set forth in Section 6.3.

          “Indemnifying Party” has the meaning set forth in Section 6.3.

          “Independent Directors” has the meaning set forth in Section 2.1(b).

          “Initial Parent Shares” has the meaning set forth in Section 1.1 of the Merger
Agreement.

          “Majority-in-interest” as used in Articles II, III and IV means, as to any group of
Persons from time to time, the owners of greater than fifty (50) percent of the Registrable
Securities held by such Person on a fully-diluted basis.

          “Maximum Number of Shares” has the meaning set forth in Section 4.1(e).

          “Merger” has the meaning set forth in the Recitals to the Merger Agreement

          “Merger Agreement” means the Agreement and Plan of Merger, dated as of December 15,
2008, by and among Parent, Merger Sub and the Company.

          “Merger Sub” means IDE Acquisition, LLC, a Delaware limited liability corporation and
the surviving entity in the merger of the Company with and into the Merger Sub.

          “Notices” has the meaning set forth in Section 9.4.

          “Permitted Transferee” of a Shareholder means any other Shareholder and:

          (i) any Affiliate of the Shareholder or any general or limited partner, member or equity
holder of any Shareholder or any officer, director or employee thereof (collectively, the
“Shareholder Affiliates”);

          (ii) with respect to any Shareholder that itself is a Permitted Transferee of a current or
past Shareholder (an “Original Shareholder”), any Original Shareholder;

          (iii) any trust, corporation, limited liability company or partnership, the beneficiaries,
shareholders, members or general or limited partners of which, include only his or her spouse,
members of his or her immediate family or household or his or her lineal descendants; and

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          (iv) any Person that acquires Company Stock from a Shareholder by virtue of the laws of
descent and distribution upon death of such Shareholder or pursuant to a qualified relations order.

          “Person” means an individual, a partnership (general or limited), a corporation, a
limited liability company, an association, a joint stock company, Governmental Authority, a
business or other trust, a joint venture, any other business entity or an unincorporated
organization.

          “Piggy-Back Registration” has the meaning set forth in Section 4.2(a).

          “Pro Rata” means as to a particular Person, pro rata in accordance with the number of
shares of Company Stock that each such Person has requested be included in a respective
registration, regardless of the number of shares of Company Stock held by each such Person.

          “Register,” “Registered” and “Registration” mean a registration
effected by preparing and filing a registration statement or similar document in compliance with
the requirements of the Securities Act, and the applicable rules and regulations promulgated
thereunder, and such registration statement becoming effective.

          “Registrable Securities” means (i) all Common Stock owned or held by the Company
Shareholders (and their Permitted Transferees) or (ii) all Common Stock and Founder Warrants and
shares of Common Stock underlying Founder Warrants owned or held by the Founders (and their
Permitted Transferees). As to any particular Registrable Securities, such securities shall cease to
be Registrable Securities when: (a) a Registration Statement with respect to the sale of such
securities shall have become effective under the Securities Act and such securities shall have been
sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (b)
such securities shall have been otherwise transferred, new certificates for them not bearing a
legend restricting further transfer shall have been delivered by Parent and subsequent public
distribution of them shall not require registration under the Securities Act; or (c) such
securities shall have ceased to be outstanding.

          “Registration Statement” means a registration statement filed by Parent with the
Commission in compliance with the Securities Act and the rules and regulations promulgated
thereunder for a public offering and sale of Common Stock (other than a registration statement on
Form S-4 or Form S-8, or their successors, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity).

          “Replacement Director” has the meaning set forth in Section 2.2.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

          “Shareholders” means, for so long as any such Person holds Company Stock,
collectively, (i) the Founders, (ii) the Company Shareholders, (iii) the Additional Shareholders,
if any, and (iv) Persons who or which have acquired shares of Company Stock from, and are

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Permitted Transferees of, any of the Persons referred to in clauses (i), (ii) and (iii) or
their Permitted Transferees (or any combination of the foregoing).

          “Shareholder Indemnified Party” has the meaning set forth in Section 6.1.

          “Third Party” means, with respect to any Shareholder, any Person other than (i) such
Shareholder’s Permitted Transferees and (ii) Parent.

          “Transfer” means to (a) directly or indirectly offer, sell, contract to sell, pledge
or otherwise dispose of any Company Stock, (b) enter into any transaction which is designed to, or
would reasonably be expected to, result in the disposition, whether by actual disposition or
effective economic disposition due to cash settlement or otherwise, of Company Stock (including the
filing or participation in the filing of a registration statement with the SEC), or (c) establish
or increase a put equivalent position or liquidate or decrease a call equivalent position relating
to Company Stock within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder. “Transferred” and “Transferee” each have a correlative
meaning.

          “Underwriter” or “Underwriters” means a securities dealer or dealers who
purchases any Registrable Securities as principal in an underwritten offering and not as part of
such dealer or dealers’ market-making activities.

          “Underwritten Offering” means a sale of securities of Parent to an underwriter or
underwriters for reoffering to the public.

ARTICLE II

BOARD RIGHTS; MANAGEMENT ARRANGEMENTS

     Section 2.1 Board of Directors. Simultaneously with the Closing, each Company
Shareholder and Founder, severally and not jointly, agrees to vote or otherwise give their consent
in respect of all Common Stock held of record or beneficially owned by such Company Shareholder or
Founder, and Parent shall take all necessary actions within its control, in order to cause:

               (a) Authorized Number. The number of directors serving on the Board to be seven (7).

               (b) Members. The Founders shall designate one (1) member to the Board (the
“Founder Director”). The Company Shareholders shall designate two (2) members to the Board
(the “Company Shareholder Directors”). Four (4) members of the Board shall be “independent”
under the rules of the American Stock Exchange (the “Independent Directors”), of which the
Founders shall designate two (2) members and the Company Shareholders shall designate two (2)
members.

               (c) Classes. The Founder Director and one (1) of the Company Shareholder Directors
shall be appointed to the class of directors with a term expiring on Parent’s third annual meeting
of stockholders after consummation of the Merger. One (1) of the

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Independent Directors designated by Parent, one (1) of the Independent Directors designated by
the Company Shareholders and one (1) of the Company Shareholder Directors shall be appointed to the
class of directors with a term expiring on Parent’s second annual meeting of stockholders after
consummation of the Merger. One (1) of the Independent Directors designated by Parent and one (1)
of the Independent Directors designated by the Company Shareholders shall be appointed to the class
of directors with a term expiring on Parent’s first annual meeting of stockholders after
consummation of the Merger.

          Section 2.2 Replacement Directors. In the event of the death, disability,
disqualification, resignation or removal of the Founder Director or his failure to be elected prior
to the applicable Appointment Termination Date (as defined below), Parent shall nominate for
election to the Board a replacement (the “Founder Replacement Director”) designated by a
Majority-in-interest of the Founders, who shall be entitled to serve until the applicable
Appointment Termination Date. In the event of the death, disability, disqualification, resignation
or removal of the Company Shareholder Directors or their failure to be elected prior to the
applicable Appointment Termination Date, Parent shall nominate for election to the Board a
replacement (the “Company Shareholder Replacement Director” and together with the Founder
Replacement Director, the “Replacement Director”) designated by a Majority-in-interest of
the Company Shareholders, who shall be entitled to serve until the applicable Appointment
Termination Date. Such Replacement Director shall meet any applicable requirements or
qualifications under applicable law, stock exchange rules and Parent’s organizational documents to
be a member of the Board. Nothing herein shall be deemed to require that any party hereto, or any
affiliate thereof, act or be in violation of any applicable provision of law, legal duty or
requirement, or stock exchange or stock market rule.

          Section 2.3 Termination of Director Appointment Right. All of the parties to
this Agreement who are entitled to vote with respect to the election of directors of the Board
agree to vote their shares in favor of the Board as designated in Section 2.1(b), or the applicable
Replacement Director until (i) with respect to the Founder Director or the applicable Replacement
Director, the date when the Founders and their Permitted Transferees hold a number of shares of
Common Stock that is less than 25 percent (25%) of (x) the number of outstanding shares of Common
Stock held by the Founders at the Closing less (y) any shares of Common Stock purchased by the
Founders after the date hereof and at or prior to the Closing and (ii) with respect to the Company
Shareholder Directors or the applicable Replacement Director, the date when the Company
Shareholders and their Permitted Transferees hold a number of shares of Common Stock that is less
than 25 percent (25%) of (x) the number of outstanding shares of Common Stock held by the Company
Shareholders at the Closing less (y) any shares of Common Stock purchased, other than pursuant to
the Merger Agreement, by the Company Shareholders after the date hereof and at or prior to the
Closing (such date, the “Appointment Termination Date”); it being understood that
notwithstanding the occurrence of an Appointment Termination Date, any member of the Board
appointed pursuant to Article II shall continue to hold office until the expiration of his or her
respective term of office and until his or her successor shall have been elected and qualified.

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ARTICLE III

TRANSFER RESTRICTIONS

          Section 3.1 Transfer Restrictions on Initial Parent Shares. Each Company
Shareholder agrees not to Transfer, directly or indirectly, any Initial Parent Shares prior to the
first anniversary of the Closing, except to a Permitted Transferee.

          Section 3.2 Founder Transfer Restrictions.

               (a) The Common Stock and Founder Warrants that are owned by the Founders and held in escrow
pursuant the Founders Escrow Agreements shall continue to be subject to the restrictions and other
provisions of the Founders Escrow Agreements in accordance with their terms and shall be released
to the Founders as and when provided for under the Founders Escrow Agreements.

               (b) In addition to the restrictions contained in Section 3.2(a), each Founder agrees not to
Transfer, directly or indirectly, any Company Stock held by such Founder at or prior the Closing
Date or received by such Founder upon conversion of the Founder Warrants, in each case prior to the
first anniversary of the Closing, except to a Permitted Transferee.

          Section 3.3 Transfer Restrictions

               (a) Any Transfer of shares of Common Stock made in accordance with this Article III to a Third
Party or a Permitted Transferee shall be effective only if:

               (i) in the case of a Transfer to a Permitted Transferee, such Permitted
Transferee (to the extent not already party to this Agreement) shall agree in
writing to be bound by the terms and conditions of this Agreement to the same extent
and in the same manner as the Shareholder transferring such shares of Common Stock;
and

               (ii) the Transfer to such Third Party or Permitted Transferee is in compliance
with all applicable federal, state and foreign securities laws.

          Section 3.4 Restrictive Legend. Each certificate representing the Registrable
Securities shall be stamped or otherwise imprinted with a legend substantially in the following
form (in addition to the legend required under any applicable state securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE
SECURITIES LAWS. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR EXEMPTION THEREFROM UNDER SAID ACT OR LAWS. COPIES OF A
SHAREHOLDERS’ AGREEMENT GOVERNING TRANSFERS OF THESE

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SHARES MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF
THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.

          Parent will promptly, upon request, remove any such legend when no longer required by the
terms of this Agreement or by applicable law.

     Section 3.5 Certain Representations.

               (a) Each Company Shareholder represents and warrants to Parent as follows:

               (i) Such Company Shareholder is acquiring the Initial Parent Shares for its own
account, and not with a view to any distribution thereof in violation of the
securities laws and no other Person has any interest in or participation in the
Initial Parent Shares or any right, option, security interest, pledge or other
interest in or to the Initial Parent Shares. Such Company Shareholder understands
that such Initial Parent Shares have not been registered under the Securities Act by
reason of specific exemptions therefrom which depend upon, among other things, the
bona fide nature of the investment intent and the accuracy of the Company
Shareholder’s representations as expressed herein.

               (ii) Such Company Shareholder’s financial condition and investments are such
that it is in a position to hold such Initial Parent Shares for an indefinite
period, bear the economic risks of the investment and withstand the complete loss of
the investment. Such Company Shareholder has extensive knowledge and experience in
financial and business matters and has the capability to evaluate the merits and
risks of such Initial Parent Shares. Such Company Shareholder qualifies as an
“accredited investor” as such term is defined in Section 2(15) of the Securities Act
and Regulation D promulgated thereunder.

               (iii) Such Company Shareholder acknowledges that the Initial Parent Shares to
be purchased by the Company Shareholder must be held indefinitely unless
subsequently registered under the Securities Act or any applicable state securities
laws or unless exemptions from such registrations are available.

ARTICLE IV

REGISTRATION RIGHTS

          Section 4.1 Demand Registration

               (a) Request by the Company Shareholders. At any time and from time to time after the
first anniversary of the Closing, a Majority-in-interest of the Company Shareholders or the
Permitted Transferees of the Company Shareholders may make a written demand for registration under
the Securities Act of all or part of their Registrable Securities (a

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“Company Shareholder Demand Registration”). Any Company Shareholder Demand
Registration shall specify the number of shares of Registrable Securities proposed to be sold and
the intended method(s) of distribution thereof. Parent will notify all Shareholders of the demand,
and each Shareholder who wishes to include all or a portion of such Shareholder’s Registrable
Securities in the Company Shareholder Demand Registration (each such Shareholder including shares
of Registrable Securities in such registration, a “Company Shareholder Demanding Holder”)
shall so notify Parent within fifteen (15) days after the receipt by the Shareholder of the notice
from Parent. Upon any such request, the Company Shareholder Demanding Holders shall be entitled to
have their Registrable Securities included in the Company Shareholder Demand Registration, subject
to Section 4.1(e) and the provisos set forth in Section 5.1(a); provided, however, Parent shall not
be obligated to effect (i) more than four (4) Company Shareholder Demand Registrations under this
Section 4.1(a) or (ii) any such registration pursuant to this Section 4.1(a) if the value of the
Registrable Securities that a Majority-in-interest of Company Shareholders propose to sell in their
demand for a Company Shareholder Demand Registration is less than $15,000,000.

               (b) Request by the Founders. At any time and from time to time after the date that is
twelve (12) months following the Closing, a Majority-in-interest of the Founders or the Permitted
Transferees of the Founders may make a written demand for registration under the Securities Act of
all or part of their Registrable Securities (a “Founder Demand Registration”). Any demand
for a Founder Demand Registration shall specify the number of shares of Registrable Securities
proposed to be sold and the intended method(s) of distribution thereof. Parent will notify all
Shareholders of the demand, and each Shareholder who wishes to include all or a portion of such
Shareholder’s Registrable Securities in the Founder Demand Registration (each such Shareholder
including shares of Registrable Securities in such registration, a “Founder Demanding
Holder”) shall so notify Parent within fifteen (15) days after the receipt by the Shareholder
of the notice from Parent. Upon any such request, the Founder Demanding Holders shall be entitled
to have their Registrable Securities included in the Founder Demand Registration, subject to
Section 4.1(e) and the provisos set forth in Section 5.1(a); provided, however, Parent shall not be
obligated to effect (i) more than three (3) Founder Demand Registrations under this Section 4.1(b)
or (ii) any such registration pursuant to this Section 4.1(b) if the value of the Registrable
Securities that a Majority-in-interest of Founders propose to sell in their demand for a Founder
Demand Registration is less than $5,000,000.

               (c) Effective Registration. A registration will not count as a Demand Registration
until the Registration Statement filed with the Commission with respect to such Demand Registration
has been declared effective and Parent has complied with all of its obligations under this
Agreement with respect thereto; provided, however, that if, after such Registration Statement has
been declared effective, the offering of Registrable Securities pursuant to a Demand Registration
is interfered with by any stop order or injunction of the Commission or any other governmental
agency or court, the Registration Statement with respect to such Demand Registration will be deemed
not to have been declared effective, unless and until (i) such stop order or injunction is removed,
rescinded or otherwise terminated and (ii) a Majority-in-interest of the Demanding Holders
thereafter elect to continue the offering.

               (d) Underwritten Offering. If after the first anniversary of the Closing, a
Majority-in-interest of the Demanding Holders so elect and such holders so advise Parent as part

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of their written demand for a Demand Registration, the offering of such Registrable Securities
pursuant to such Demand Registration shall be in the form of a Underwritten Offering; provided,
however, Parent shall not be obligated to effect an Underwritten Offering if the value of the
Registrable Securities that a Majority-in-interest of Demanding Holders propose to sell in their
demand for a Demand Registration is less than $5,000,000. All Demanding Holders proposing to
distribute their securities through such Underwritten Offering shall enter into an underwriting
agreement in customary form with the Underwriter(s) selected for such underwriting by a
Majority-in-interest of the Demanding Holders whom initiate the Demand Registration. The right of
any Shareholder to include its Registrable Securities in such registration shall be conditioned
upon such Shareholder’s participation in such underwriting and the inclusion of such Shareholder’s
Registrable Securities in the underwriting to the extent provided herein.

               (e) Reduction of Offering. If the managing Underwriter(s) for a Demand Registration
that is to be an underwritten offering advises Parent and the Demanding Holders in writing that the
dollar amount or number of shares of Registrable Securities that the Demanding Holders desire to
sell, taken together with all other shares of Common Stock or other securities that Parent desires
to sell and the shares of Common Stock or other securities, if any, as to which registration has
been requested pursuant to written contractual piggy-back registration rights held by other
shareholders of Parent, exceeds the maximum dollar amount or maximum number of shares that can be
sold in such offering without adversely affecting the proposed offering price, the timing, the
distribution method, or the probability of success of such offering (such maximum dollar amount or
maximum number of shares, as applicable, the “Maximum Number of Shares”), then Parent shall
include in such registration: (i) first, the Registrable Securities as to which Demand Registration
has been requested by the Demanding Holders, Pro Rata, that can be sold without exceeding the
Maximum Number of Shares; (ii) second, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (i), the shares of Common Stock or other securities for the
account of other Shareholders that Parent is obligated to register pursuant to the terms hereof;
(iii) third, to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (i) and (ii), the shares of Common Stock or other securities for the account of
other shareholders of Parent that Parent is obligated to register pursuant to written contractual
arrangements with such shareholders, Pro Rata, that can be sold without exceeding the Maximum
Number of Shares; and (iv) fourth, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (i), (ii) and (iii), the shares of Common Stock or other
securities that Parent desires to sell that can be sold without exceeding the Maximum Number of
Shares.

               (f) Withdrawal. If a Majority-in-interest of the Demanding Holders disapprove of the
terms of any underwriting or are not entitled to include all of their Registrable Securities in any
offering, such Majority-in-interest of the Demanding Holders may elect to withdraw from such
offering by giving written notice to Parent and the Underwriter(s) of their request to withdraw
prior to the effectiveness of the Registration Statement filed with the Commission with respect to
such Demand Registration. If the Majority-in-interest of the Demanding Holders withdraws from a
proposed offering relating to a Demand Registration, then such registration shall not count as a
Demand Registration provided for in Section 4.1. Notwithstanding any such withdrawal, Parent shall
pay all expenses incurred by the Shareholders in connection with such Demand Registration as
provided in Section 5.3; provided, however, that

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Parent shall not be obligated to pay such expenses for more than one Demand Registration that
has been withdrawn by the same Demanding Holders.

          Section 4.2 Piggy-Back Registration.

               (a) Piggy-Back Rights. If at any time after the first anniversary of the Closing
Parent proposes to file a Registration Statement under the Securities Act with respect to an
offering of Common Stock or other securities for its own account or for the accounts of
Shareholders (including, without limitation, pursuant to Section 4.1), other than a Registration
Statement (i) filed on Form S-8 or otherwise in connection with any employee stock option or other
benefit plan, (ii) filed on Form S-4 or otherwise for an exchange offer or offering of securities
solely to Parent’s existing shareholders, (iii) for an offering of debt that is convertible into
Common Stock, (iv) for a dividend reinvestment plan or (v) filed pursuant to Section 4.3(c), then
Parent shall (x) give written notice of such proposed filing to the Shareholders as soon as
practicable, but in no event less than fifteen (15) days before the anticipated filing date, which
notice shall describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing Underwriter(s), if any,
of the offering and (y) offer to the Shareholders in such notice the opportunity to register the
sale of such number of shares of Registrable Securities as such Shareholders may request in writing
within ten (10) days following receipt of such notice (a “Piggy-Back Registration”). Parent
shall cause such Registrable Securities to be included in such registration and shall use its best
efforts to cause the managing Underwriter(s) of a proposed underwritten offering to permit the
Registrable Securities on the same terms and conditions as any similar securities of Parent and to
permit the sale or other disposition of such Registrable Securities in accordance with the intended
method(s) of distribution thereof. All Shareholders proposing to distribute their securities
through a Piggy-Back Registration that involves an Underwriter(s) shall enter into an underwriting
agreement in customary form with the Underwriter(s) selected for such Piggy-Back Registration.

               (b) Reduction of Offering. If the managing Underwriter(s) for a Piggy-Back
Registration that is to be an underwritten offering advises Parent and the Shareholders in writing
that the dollar amount or number of shares of Company Stock or other securities that Parent desires
to sell, taken together the Registrable Securities as to which registration has been requested
pursuant this Section 4.2, and the shares of Company Stock or other securities, if any, as to which
registration has been requested pursuant to written contractual piggy-back registration rights held
by other shareholders of Parent, exceeds the Maximum Number of Shares, then Parent shall include in
any such registration:

               (i) If the registration is undertaken for Parent’s account: (i) first, the
shares of Common Stock or other securities that Parent desires to sell that can be
sold without exceeding the Maximum Number of Shares; (ii) second, to the extent that
the Maximum Number of Shares has not been reached under the foregoing clause (i),
the shares of Common Stock or other securities, if any, comprised of Registrable
Securities, as to which registration has been requested pursuant to this Section
4.2, Pro Rata, that can be sold without exceeding the Maximum Number of Shares; and
(iii) third, to the extent that the Maximum Number of shares has not been reached
under the foregoing clauses (i) and (ii),

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the shares of Common Stock or other securities for the account of other
shareholders that Parent is obligated to register pursuant to written contractual
piggy-back registration rights with such shareholders, Pro Rata, that can be sold
without exceeding the Maximum Number of Shares;

               (ii) If the registration is a “demand” registration undertaken at the demand of
shareholders of Parent other than the Shareholders: (i) first, the shares of Common
Stock or other securities for the account of the demanding shareholders, Pro Rata,
that can be sold without exceeding the Maximum Number of Shares; (ii) second, to the
extent that the Maximum Number of Shares has not been reached under the foregoing
clause (i), the shares of Common Stock or other securities comprised of Registrable
Securities, Pro Rata, as to which registration has been requested pursuant to the
terms hereof that can be sold without exceeding the Maximum Number of Shares; (iii)
third, to the extent that the Maximum Number of Shares has not been reached under
the foregoing clauses (i) and (ii), the shares of Common Stock or other securities
that Parent desires to sell that can be sold without exceeding the Maximum Number of
Shares; and (iv) fourth, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (i), (ii) and (iii), the shares of Common
Stock or other securities for the account of other shareholders of Parent that
Parent is obligated to register pursuant to written contractual arrangements with
such Shareholders, Pro Rata, that can be sold without exceeding the Maximum Number
of Shares; or

               (iii) If the registration is a Demand Registration, the shares required to be
included pursuant to Section 4.1(e) hereof.

               (c) Withdrawal. Any Shareholder may elect to withdraw such holder’s request for
inclusion of Registrable Securities in any Piggy-Back Registration by giving written notice to
Parent of such request to withdraw prior to the effectiveness of the Registration Statement. Parent
(whether on its own determination or as the result of a withdrawal by Persons making a demand
pursuant to written contractual obligations) may withdraw a Registration Statement at any time
prior to the effectiveness of the Registration Statement. Notwithstanding any such withdrawal,
subject to Section 4.1(f), Parent shall pay all expenses incurred by the Shareholders in connection
with such Piggy-Back Registration as provided in Section 5.3.

          Section 4.3 Registrations on Form S-3.

               (a) Request for Registrations on Form S-3 by the Company Shareholders. A
Majority-in-interest of the Company Shareholders or the Permitted Transferees of the Company
Shareholders may at any time after the first anniversary of the Closing demand in writing that
Parent register the resale of any or all of such Registrable Securities on Form S-3, provided,
however that Parent shall not be obligated to effect such request through an Underwritten Offering.
Upon receipt of such written request, Parent will promptly give written notice of the proposed
registration to all Shareholders, and, as soon as practicable thereafter, effect the registration
of all or such portion of such Majority-in-interest of the Company Shareholders or the transferees
of the Company Shareholders’ Registrable Securities as are

12

 

specified in such request, together with all or such portion of the Registrable Securities, if
any, of any other Shareholders joining in such request as are specified in a written request given
within fifteen (15) days after receipt of such written notice from Parent; provided, however, that
Parent shall not be obligated to effect any such registration pursuant to this Section 4.3(a): (i)
if Form S-3 is not available for such offering or (ii) if the value of the Registrable Securities
that a Majority-in-interest of the Company Shareholders or their Permitted Transferees of the
Company Shareholders propose to sell in their demand pursuant to this Section 4.3(a) is less than
$15,000,000. Registrations effected pursuant to this Section 4.3(a) shall not be counted as Demand
Registrations effected pursuant to Section 4.1.

               (b) Request for Registrations on Form S-3 by the Founders. A Majority-in-interest of
the Founders or the Permitted Transferees of the Founders may at any time after the first
anniversary of the Closing demand in writing that Parent register the resale of any or all of such
Registrable Securities on Form S-3, provided, however that Parent shall not be obligated to effect
such request through an Underwritten Offering. Upon receipt of such written request, Parent will
promptly give written notice of the proposed registration to all Shareholders, and, as soon as
practicable thereafter, effect the registration of all or such portion of such Majority-in-interest
of the Founders or the transferees of the Founders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities or other securities of
Parent, if any, of any other Shareholders joining in such request as are specified in a written
request given within fifteen (15) days after receipt of such written notice from Parent; provided,
however, that Parent shall not be obligated to effect any such registration pursuant to this
Section 4.3(b): (i) if Form S-3 is not available for such offering or (ii) if the value of the
Registrable Securities that a Majority-in-interest of Founders or their Permitted Transferees of
the Founders propose to sell in their demand for a Founder Demand Registration is less than
$5,000,000. Registrations effected pursuant to this Section 4.3(b) shall not be counted as Demand
Registrations effected pursuant to Section 4.1.

               (c) Without limiting the foregoing, Parent shall, (i) within one-hundred eighty (180) days
following the Closing, file a registration statement on Form S-3 (or other registration form if
Parent is not eligible to use Form S-3) with respect to the resale of any of the Registrable
Securities issued at the Closing or requested by the Company Shareholders and the Founders to be
included in such registration statement, including any Escrowed Indemnity Shares (as defined in the
Merger Agreement) and any shares purchased by any Company Shareholder with cash proceeds of the
Merger received at the Closing, and (ii) within one-hundred eighty (180) days following the
issuance of any Earnout Shares (as defined in the Merger Agreement), file a registration statement
on Form S-3 (or other registration form if Parent is not then eligible to use Form S-3) with
respect to the resale of such Earnout Shares, and Parent shall use its reasonable efforts to cause
such registration statement to become effective as soon as is practicable; provided, however, that
any resales of Registrable Securities pursuant to this Section 4.3(c) shall in all circumstances be
subject to the transfer restrictions set forth in Sections 3.1 and 3.2. Registrations effected
pursuant to this Section 4.3(c) shall not be counted as a Demand Registration effected pursuant to
Section 4.1, but shall be treated as a “demand” registration for purposes of any other contractual
agreements Columbus has with holders of Columbus common stock, warrants or units to register shares
of Columbus common stock (including, but not limited to, for purposes of addressing any
restrictions imposed by the SEC on the number of shares of Columbus common stock to be registered
under this Section 4.3(c) and

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determining which shares will first be excluded from such registration), and, if applicable,
shall be subject to the other limitations set forth in Section 4.1 and 4.2.

ARTICLE V

REGISTRATION PROCEDURES

          Section 5.1 Filings; Information. Whenever Parent is required to effect the
registration of any Registrable Securities pursuant to Article IV, Parent shall use its best
efforts to effect the registration and sale of such Registrable Securities in accordance with the
intended method(s) of distribution thereof as expeditiously as practicable, and in connection with
any such request:

               (a) Filing Registration Statement. Parent shall, as expeditiously as possible and in
any event within ninety (90) days after receipt of a request for a Demand Registration pursuant to
Section 4.1, prepare and file with the Commission a Registration Statement on any form for which
Parent then qualifies or that counsel for Parent shall deem appropriate and which form shall be
available for the resale of all Registrable Securities to be registered thereunder in accordance
with the intended method(s) of distribution thereof, and shall use its best efforts to cause such
Registration Statement to become and remain effective for the period required by Section 5.1(c);
provided, however, that Parent shall have the right to defer any Demand Registration for up to
thirty (30) days, and any Piggy-Back Registration for such period as may be applicable to deferment
of any demand registration to which such Piggy-Back Registration relates, in each case if Parent
shall furnish to the Shareholders a certificate signed by the chief executive officer or chairman
of Parent stating that, in the good faith judgment of the Board, it would be materially detrimental
to Parent and its shareholders for such Registration Statement to be effected at such time;
provided further, however, that Parent shall not have the right to exercise the right set forth in
the immediately preceding proviso more than once in any 365-day period in respect of a Demand
Registration hereunder.

               (b) Copies. Parent shall, prior to filing a Registration Statement or prospectus, or
any amendment or supplement thereto, furnish without charge to the Shareholders included in such
registration, and, if requested in writing by any Shareholder, such holders’ legal counsel, copies
of such Registration Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and documents incorporated by
reference therein), the prospectus included in such Registration Statement (including each
preliminary prospectus) and such other documents as the Shareholders included in such registration
or legal counsel for any such holders may request in order to facilitate the disposition of the
Registrable Securities owned by such holders.

               (c) Amendments and Supplements. Parent shall prepare and file with the Commission such
amendments, including post-effective amendments, and supplements to such Registration Statement and
the prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective and in compliance with the provisions of the Securities Act until all Registrable
Securities and other securities covered by such Registration Statement have been disposed of in
accordance with the intended method(s) of distribution set forth in such Registration Statement
(which period shall not exceed the sum of

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one hundred eighty (180) days (three-hundred sixty (360) days in the case of any Registration
Statement filed pursuant to Section 4.3(c)) plus any period during which any such disposition is
interfered with by any stop order or injunction of the Commission or any governmental agency or
court) or such securities have been withdrawn.

               (d) Notification. After the filing of a Registration Statement, Parent shall promptly,
and in no event more than two (2) business days after such filing, notify the Shareholders included
in such Registration Statement of such filing, and shall further notify such holders promptly and
confirm such advice in writing in all events within two (2) business days of the occurrence of any
of the following: (i) when such Registration Statement becomes effective; (ii) when any
post-effective amendment to such Registration Statement becomes effective; (iii) the issuance or
threatened issuance by the Commission of any stop order (and Parent shall take all actions required
to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the
Commission for (x) any amendment or supplement to such Registration Statement or any prospectus
relating thereto or (y) additional information of the occurrence of an event requiring the
preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the
purchasers of the securities covered by such Registration Statement, such prospectus will not
contain an untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading. Parent shall promptly
make available to the Shareholders included in such Registration Statement any such supplement or
amendment.

               (i) Before filing with the Commission a Registration Statement or prospectus or
any amendment or supplement thereto, including documents incorporated by reference,
Parent shall furnish to the Shareholders included in such Registration Statement and
to the legal counsel for any such holders, copies of all such documents proposed to
be filed sufficiently in advance of filing to provide such holders and their legal
counsel with a reasonable opportunity to review such documents and comment thereon,
and Parent shall not file any Registration Statement or prospectus or amendment or
supplement thereto, including documents incorporated by reference, to which such
holders or their legal counsel shall reasonably object.

               (e) Securities Laws Compliance. Parent shall use its best efforts to (i) register or
qualify the Registrable Securities covered by the Registration Statement under such securities or
“blue sky” laws of such jurisdictions (domestic or foreign) as the Shareholders included in such
Registration Statement (in light of their intended plan of distribution) may request and (ii) take
such action necessary to cause such Registrable Securities covered by the Registration Statement to
be registered with or approved by such other Governmental Authorities as may be necessary by virtue
of the business and operations of Parent and do any and all other acts and things that may be
necessary or advisable to enable the Shareholders included in such Registration Statement to
consummate the disposition of such Registrable Securities in such jurisdictions; provided, however,
that Parent shall not be required to qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this paragraph or subject itself to taxation in
any such jurisdiction.

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               (f) Agreements for Disposition. Parent shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable
Securities. The representations, warranties and covenants of Parent in any underwriting agreement
which are made to or for the benefit of any Underwriter(s), to the extent applicable, shall also be
made to and for the benefit of the Shareholders included in such Registration Statement. No
Shareholder included in such Registration Statement shall be required to make any representations
or warranties in the underwriting agreement except, if applicable, with respect to such holder’s
organization, good standing, authority, title to Registrable Securities, lack of conflict of such
sale with such holder’s material agreements and organizational documents, and with respect to
written information relating to such holder that such holder has furnished in writing expressly for
inclusion in such Registration Statement.

               (g) Cooperation. The principal executive officer of Parent, the principal financial
officer of Parent, the principal accounting officer of Parent and all other officers and members of
the management of Parent shall cooperate fully in any offering of Registrable Securities hereunder,
which cooperation shall include, without limitation, the preparation of the Registration Statement
with respect to such offering and all other offering materials and related documents, and
participation in meetings with Underwriter(s), attorneys, accountants and the Shareholders included
in such Registration Statement.

               (h) Records. Parent shall make available for inspection by the Shareholders included
in such Registration Statement, any Underwriter(s) participating in any disposition pursuant to
such Registration Statement and any attorney, accountant or other professional retained by any
Shareholder included in such Registration Statement or any Underwriter, all financial and other
records, pertinent corporate documents and properties of Parent as shall be necessary to enable
them to exercise their due diligence responsibility, and cause Parent’s officers, directors and
employees to supply all information requested by any of them in connection with such Registration
Statement.

               (i) Opinions and Comfort Letters. Parent shall furnish to each Shareholder included in
any Registration Statement a signed counterpart, addressed to such holder, of (i) any opinion of
counsel to Parent delivered to any Underwriter and (ii) any comfort letter from Parent’s
independent public accountants delivered to any Underwriter.

               (j) Earnings Statement. Parent shall comply with all applicable rules and regulations
of the Commission and the Securities Act, and make available to its shareholders, as soon as
practicable, an earnings statement covering a period of twelve (12) months, beginning within three
(3) months after the effective date of the Registration Statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

               (k) Listing. Parent shall use its best efforts to cause all Registrable Securities
included in any registration to be listed on such exchanges or otherwise designated for trading in
the same manner as similar securities issued by Parent are then listed or designated or, if no such
similar securities are then listed or designated, in a manner satisfactory to a
Majority-in-interest of the Shareholders included in such registration.

16

 

          Section 5.2 Obligation to Suspend Distribution. Upon receipt of any notice
from Parent of the happening of any event of the kind described in Section 5.1(d)(iv), or, in the
case of a resale registration on Form S-3 pursuant to Section 4.3 hereof, upon any suspension by
Parent, pursuant to a written insider trading compliance program adopted by the Board, of the
ability of all “insiders” covered by such program to transact in Parent’s securities because of the
existence of material non-public information, each Shareholder included in any registration shall
immediately discontinue disposition of such Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such holder receives the supplemented or
amended prospectus contemplated by Section 5.1(d)(iv) or the restriction on the ability of
“insiders” to transact in Parent’s securities is removed, as applicable, and, if so directed by
Parent, each such holder will deliver to Parent all copies, other than permanent file copies then
in such holder’s possession, of the most recent prospectus covering such Registrable Securities at
the time of receipt of such notice.

          Section 5.3 Registration Expenses. Parent shall bear all costs and expenses
incurred in connection with any Demand Registration pursuant to Section 4.1, any Piggy-Back
Registration pursuant to Section 4.2, any registration on Form S-3 effected pursuant to Section
4.3, and all expenses incurred in performing or complying with its other obligations under this
Agreement, whether or not the Registration Statement becomes effective, including, without
limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with
securities or “blue sky” laws (including fees and disbursements of counsel in connection with blue
sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) Parent’s internal
expenses (including, without limitation, all salaries and expenses of its officers and employees);
(v) the fees and expenses incurred in connection with the listing of the Registrable Securities as
required by Section 5.1(k); (vi) Financial Industry Regulatory Authority fees; (vii) fees and
disbursements of counsel for Parent and fees and expenses for independent certified public
accountants retained by Parent (including the expenses or costs associated with the delivery of any
opinions or comfort letters requested pursuant to Section 5.1(i)); (viii) the fees and expenses of
any special experts retained by Parent in connection with such registration; and (ix) the fees and
expenses of one legal counsel selected by a Majority-in-interest of the Company Shareholders
included in such registration and the fees and expenses of one legal counsel selected by a
Majority-in interest of the Founders included in such registration. Parent shall have no obligation
to pay any underwriting discounts or selling commissions attributable to the Registrable Securities
being sold by the holders thereof, which underwriting discounts or selling commissions shall be
borne by such holders. Additionally, in an underwritten offering, all selling Shareholders and
Parent shall bear the expenses of the Underwriter(s) Pro Rata, except as specified in Section
4.1(f).

          Section 5.4 Information. The Shareholders shall provide such information as
may reasonably be requested by Parent, or the managing Underwriter, if any, in connection with the
preparation of any Registration Statement, including amendments and supplements thereto, in order
to effect the registration of any Registrable Securities under the Securities Act pursuant to
Article V hereof and in connection with Parent’s obligation to comply with federal and applicable
state securities laws. At least five (5) business days prior to the first anticipated filing date
of any Registration Statement, Parent shall notify each Shareholder of the information Parent
requires from such Shareholder if such Shareholder elects to have any of the Registrable Securities
included in such Registration Statement. Each Shareholder shall provide such

17

 

information to Parent at least two (2) business days prior to the first anticipated filing
date of such Registration Statement if such Shareholder elects to have any of the Registrable
Securities included in such Registration Statement.

ARTICLE VI

INDEMNIFICATION AND CONTRIBUTION

          Section 6.1 Indemnification by Parent. Parent agrees to indemnify and hold
harmless each Company Shareholder, Founder, each other Shareholder, each of the foregoing’s
respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and
each person, if any, who controls a Company Shareholder, Founder and each other Shareholder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, a
“Shareholder Indemnified Party”), from and against any expenses, losses, judgments, claims,
damages, liabilities or actions, whether joint or several, arising out of or based upon any untrue
statement or allegedly untrue statement of a material fact contained in any Registration Statement
under which the sale of such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained in the Registration
Statement, or any amendment or supplement to such Registration Statement, or arising out of or
based upon any omission or alleged omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, or any violation by Parent of the
Securities Act or any rule or regulation promulgated thereunder applicable to Parent and relating
to action or inaction required of Parent in connection with any such registration. Parent shall
promptly reimburse the Shareholder Indemnified Party for any legal and any other expenses
reasonably incurred by such Shareholder Indemnified Party in connection with investigating and
defending any such expense, loss, judgment, claim, damage, liability or action; provided, however,
that Parent will not be liable in any such case to the extent that any such expense, loss,
judgment, claim, damage, liability or action arises out of or is based upon any untrue statement or
allegedly untrue statement or omission or alleged omission made in any such Registration Statement,
any preliminary prospectus, final prospectus, or summary prospectus, or any such amendment or
supplement, in reliance upon and in conformity with information furnished to Parent, in writing, by
such selling holder expressly for use therein. Parent also shall indemnify any Underwriter of the
Registrable Securities, their officers, affiliates, directors, partners, members and agents and
each person who controls such Underwriter on substantially the same basis as that of the
indemnification provided above in this Section 7.1.

          Section 6.2 Indemnification by the Shareholders. Each selling Shareholder
will, in the event that any registration of any Registrable Securities held by such selling holder
is being effected under the Securities Act pursuant to this Agreement, indemnify and hold harmless
Parent, each of its directors and officers and each Underwriter, if any, and each other selling
holder and each other person, if any, who controls another selling holder or such Underwriter
within the meaning of the Securities Act, against any losses, judgments, claims, damages,
liabilities or actions, whether joint or several, insofar as such losses, judgments, claims,
damages, liabilities or actions arise out of or are based upon any untrue statement or allegedly
untrue statement of a material fact contained in any Registration Statement under which the sale of
such Registrable Securities was registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained in the Registration Statement, or any amendment or

18

 

supplement to the Registration Statement, or arise out of or are based upon any omission or
the alleged omission to state a material fact required to be stated therein or necessary to make
the statement therein not misleading, if the statement or omission was made in reliance upon and in
conformity with information furnished in writing to Parent by such selling holder expressly for use
therein, and shall reimburse Parent, its directors and officers, and each other selling holder or
controlling person for any legal or other expenses reasonably incurred by any of them in connection
with investigation or defending any such loss, judgment, claim, damage, liability or action. Each
selling holder’s indemnification obligations hereunder shall be several and not joint and shall be
limited to the amount of any net proceeds actually received by such selling holder.

          Section 6.3 Conduct of Indemnification Proceedings. Promptly after receipt by
any Person of any notice of any loss, judgment, claim, damage, liability or action in respect of
which indemnity may be sought pursuant to Section 6.1 or 6.2, such Person (the “Indemnified
Party”) shall, if a claim in respect thereof is to be made against any other Person for
indemnification hereunder, notify such other Person (the “Indemnifying Party”) in writing
of the loss, judgment, claim, damage, liability or action; provided, however, that the failure by
the Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party
from any liability which the Indemnifying Party may have to such Indemnified Party hereunder,
except and solely to the extent the Indemnifying Party is actually prejudiced by such failure. If
the Indemnified Party is seeking indemnification with respect to any claim or action brought
against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such
claim or action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to
assume control of the defense thereof with counsel satisfactory to the Indemnified Party. After
notice from the Indemnifying Party to the Indemnified Party of its election to assume control of
the defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection
with the defense thereof other than reasonable costs of investigation; provided, however, that in
any action in which both the Indemnified Party and the Indemnifying Party are named as defendants,
the Indemnified Party shall have the right to employ separate counsel (but no more than one such
separate counsel) to represent the Indemnified Party and its controlling Persons who may be subject
to liability arising out of any claim in respect of which indemnity may be sought by the
Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be
paid by such Indemnifying Party if, based upon the advice of counsel of such Indemnified Party,
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any
claim or pending or threatened proceeding in respect of which the Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless
such judgment or settlement includes an unconditional release of such Indemnified Party from all
liability arising out of such claim or proceeding.

          Section 6.4 Contribution.

               (a) If the indemnification provided for in the foregoing Sections 6.1, 6.2 and 6.3 is
unavailable to any Indemnified Party in respect of any loss, judgment, claim, damage, liability or
action referred to herein, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such Indemnified

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Party as a result of such loss, judgment, claim, damage, liability or action in such
proportion as is appropriate to reflect the relative fault of the Indemnified Parties and the
Indemnifying Parties in connection with the actions or omissions which resulted in such loss,
judgment, claim, damage, liability or action, as well as any other relevant equitable
considerations. The relative fault of any Indemnified Party and any Indemnifying Party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information
supplied by such Indemnified Party or such Indemnifying Party and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

               (b) The parties hereto agree that it would not be just and equitable if contribution pursuant
to this Section 6.4 were determined Pro Rata or by any other method of allocation which does not
take account of the equitable considerations referred to in Section 6.4(a).

               (c) The amount paid or payable by an Indemnified Party as a result of any loss, judgment,
claim, damage, liability or action referred to in Section 6.4(a) shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 6.4, no Shareholder shall be required to contribute
any amount in excess of the dollar amount of the net proceeds (after payment of any underwriting
fees, discounts, commissions or taxes) actually received by such holder from the sale of
Registrable Securities that gave rise to such contribution obligation. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

ARTICLE VII

UNDERWRITING AND DISTRIBUTION

          Section 7.1 Rule 144. Parent covenants that, to the extent that Rule 144 is
available with respect to resales of shares of Common Stock by the Shareholders, it shall file any
reports required to be filed by it under the Securities Act and the Exchange Act and shall take
such further action as the Shareholders may reasonably request, all to the extent required from
time to time to enable such holders to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission.

ARTICLE VIII

TERMINATION

          Section 8.1 This Agreement shall terminate (a) with respect to the Company
Shareholders, on the date when the Company Shareholders hold a number of shares of Common Stock
that is less than 25 percent (25%) of (x) the number of outstanding shares of Common Stock held by
the Company Shareholders at the Closing less (y) any shares of Common Stock

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purchased, other than pursuant to the Merger Agreement, by the Company Shareholders after the
date hereof and at or prior to the Closing and (b) with respect to the Founders, on the date when
the Founders hold a number of shares of Common Stock that is less than 25 percent (25%) of (x) the
number of outstanding shares of Common Stock held by the Founders at the Closing less (y) any
shares of Common Stock purchased by the Founders after the date hereof and at or prior to the
Closing, provided, however, that, in either case, (i) the provisions of Article III shall survive
any termination, (ii) the rights conferred to the Company Shareholders by Article IV and Article V
of this Agreement shall survive until the Company Shareholders no longer own any Common Stock,
(iii) the rights conferred to the Founders by Article IV and Article V of this Agreement shall
survive until the Founders no longer own any Common Stock or Founder Warrants, and (iv) the
provisions of Article VI and Article VII shall survive any termination.

ARTICLE IX

MISCELLANEOUS

          Section 9.1 Charter and Bylaws. The parties shall take or cause to be taken
all lawful action necessary to ensure at all times as of and following the Closing that the
certificate of incorporation and by-laws of Parent are not inconsistent with the provisions of this
Agreement or the transactions contemplated hereby.

          Section 9.2 Other Registration Rights. Except as set forth on Schedule 9.2,
Parent represents and warrants that no Person, other than a Shareholder, has any right to require
Parent to register any Common Stock for sale or to include Common Stock in any registration filed
by Parent for the sale of Common Stock for its own account or for the account of any other Person.
In the event of any registration in which the underwriter cut-back priority provisions contained in
the agreements set forth on Schedule 9.2 apply, if there is a conflict between such provisions and
the provisions contained in this Agreement, the underwriter cut-back priority provisions in such
agreements set forth on Schedule 9.2 shall control

          Section 9.3 Assignment; No Third Party Beneficiaries. This Agreement and the
rights, duties and obligations of Parent hereunder may not be assigned or delegated by Parent in
whole or in part. This Agreement and the rights, duties and obligations of the Shareholders
hereunder may be freely assigned or delegated by such Shareholder in conjunction with and to the
extent of any Transfer of Registrable Securities by any such holder. This Agreement and the
provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and
their respective successors and the Permitted Transferees of the Company Shareholders, the Founders
or Shareholders. This Agreement is not intended to confer any rights or benefits on any Persons
that are not party hereto other than as expressly set forth in Article VII and this Section 9.3.

          Section 9.4 Notices. All notices, demands, requests, consents, approvals or
other communications (collectively, “Notices”) required or permitted to be given hereunder
or which are given with respect to this Agreement shall be in writing and shall be personally
served, delivered by reputable air courier service with charges prepaid, or transmitted by hand
delivery, telegram, telex or facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice. Notice shall be deemed given on
the date of

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service or transmission if personally served or transmitted by telegram, telex or facsimile;
provided, however, that if such service or transmission is not on a business day or is after normal
business hours, then such notice shall be deemed given on the next business day. Notice otherwise
sent as provided herein shall be deemed given on the next business day following timely delivery of
such notice to a reputable air courier service with an order for next-day delivery.

To Parent prior to the Closing:

Columbus Acquisition Corp.

153 E. 53rd Street

New York, NY 10022

Attn: Chief Executive Officer

with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, NY 10036

Attn: Thomas W. Greenberg, Esq.

To Parent after the Closing:

Integrated Drilling Equipment Company

18 Augusta Pines, Suite 240E

Spring, TX 77389

Attn: Chief Financial Officer

with a copy to:

Pryor Cashman LLP

410 Park Avenue

New York, NY 10022

Attn: Eric M. Hellige, Esq.

       John J. Crowe

To the Founders, to:

Columbus Acquisition Holdings LLC

153 E. 53rd Street

New York, NY 10022

Attn: Chief Executive Officer

22

 

          To the Company Shareholders, to the addresses of such Company

          Shareholders
on the signature pages hereto.

Notwithstanding the foregoing, all notices and other communications to a Shareholder relating to a
specific Registration Statement in which such Shareholder is included as selling securityholders
may be given by Parent by e-mail transmission to the e-mail addresses furnished by such Shareholder
to Parent pursuant to Section 5.4.

          Section 9.5 Severability. This Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect the validity or
enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of
any such invalid or unenforceable term or provision, the parties hereto intend that there shall be
added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible that is valid and enforceable.

          Section 9.6 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument.

          Section 9.7 Entire Agreement. This Agreement (including all agreements entered
into pursuant hereto and all certificates and instruments delivered pursuant hereto and thereto)
constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements, representations, understandings, negotiations
and discussions between the parties, whether oral or written; except as described in Section 3.3.
Without limiting the generality of the foregoing, the parties acknowledge and agree that upon
consummation of the Merger, the registration rights provisions of the Registration Rights
Agreement, dated May 18, 2007, by and among Parent and the parties signatory thereto shall be
superseded by the registration rights provisions hereunder.

          Section 9.8 Modifications and Amendments. No amendment, modification or
termination of this Agreement shall be binding upon any party unless executed in writing by such
party.

          Section 9.9 Titles and Headings. Titles and headings of articles and sections
of this Agreement are for convenience only and shall not affect the construction of any provision
of this Agreement.

          Section 9.10 Waivers and Extensions. Any party to this Agreement may waive any
right, breach or default which such party has the right to waive; provided, however, that such
waiver will not be effective against the waiving party unless it is in writing, is signed by such
party, and specifically refers to this Agreement. Waivers may be made in advance or after the right
waived has arisen or the breach or default waived has occurred. Any waiver may be conditional. No
waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any
preceding or succeeding breach thereof or of any other agreement or provision herein contained. No
waiver or extension of time for performance of any obligations or acts shall be deemed a waiver or
extension of the time for performance of any other obligations or acts.

23

 

          Section 9.11 Remedies Cumulative. In the event that Parent fails to observe or
perform any covenant or agreement to be observed or performed under this Agreement, the Company
Shareholders, the Founders, any Shareholder or the respective successors and permitted assignees of
the foregoing may proceed to protect and enforce its rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for an injunction
against the breach of any such term or in aid of the exercise of any power granted in this
Agreement or to enforce any other legal or equitable right, or to take any one or more of such
actions, without being required to post a bond. None of the rights, powers or remedies conferred
under this Agreement shall be mutually exclusive, and each such right, power or remedy shall be
cumulative and in addition to any other right, power or remedy, whether conferred by this Agreement
or now or hereafter available at law, in equity, by statute or otherwise.

          Section 9.12 Governing Law. This Agreement shall be governed by, interpreted
under, and construed in accordance with the internal laws of the State of Delaware applicable to
agreements made and to be performed within the State of New York, without giving effect to any
choice-of-law provisions thereof that would compel the application of the substantive laws of any
other jurisdiction.

          Section 9.13 Waiver of Trial by Jury. Each party hereby irrevocably and
unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other
proceeding (whether based on contract, tort or otherwise) arising out of, connected with or
relating to this Agreement, the transactions contemplated hereby, or the actions of the Founders
and Company Shareholders in the negotiation, administration, performance or enforcement hereof.

          Section 9.14 Effectiveness. This Agreement shall be effective upon, and is
subject to, the Closing. In the event that the Merger Agreement is terminated prior to Closing,
this Agreement shall cease to have any further power or effect.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

24

 

          IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their duly authorized representatives as of the date first written above.

	 	 	 	 	 	 	 
	 	 	COLUMBUS ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Andrew Intrater	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Name:
	 	Andrew Intrater
	 	 
	 

	 	Title:	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Stephen Cope, as escrow representative	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Stephen Cope	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FOUNDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	COLUMBUS ACQUISITION HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Andrew Intrater	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Name:
	 	Andrew Intrater
	 	 
	 

	 	Title:	 	Senior Managing Partner	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Barry J. Rourke	 	 
	 	 	 	 	 
	 	 	Barry J. Rourke	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Eric Zachs	 	 
	 	 	 	 	 
	 	 	Eric Zachs	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Rolf Zimmermann	 	 
	 	 	 	 	 
	 	 	Rolf Zimmermann	 	 

 

 

	 	 	 	 	 	 	 
	 	 	/s/ Jason Lustig	 	 
	 	 	 	 	 
	 	 	Jason Lustig	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Michael W. Ernestus	 	 
	 	 	 	 	 
	 	 	Michael W. Ernestus	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

COMPANY SHAREHOLDERS:                         

 

 

Accepted and Agreed as of the date first above written:
 

	 	 	 	 	 
	 

	 	M1 CAPITAL GROUP LTD.	 	 
	 
	 	 	 	 
	 

By:

	 	 	 	 
	 

	 	 

Name: Michael Campbell
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	Address:

	 	Akara Building	 	 
	 

	 	24 De Castro Street	 	 
	 

	 	Wickhams Cay 1, Road Town	 	 
	 

	 	Tortola, British Virgin Islands	 	 

 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Michael Campbell

	 	 

			
	Address:	 	11753 Willard Avenue
Tustin, CA 92782

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Theodore Swindells

	 	 

			
	Address:	 	139 24th Avenue
San Francisco, CA 94121

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Edward Mooney

	 	 

			
	Address:	 	1503 Smokey Mountain Drive
Petaluma, CA 94954

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Deyin Chen

	 	 

			
	Address:	 	300 Jinxiu Road, Suite 18-1602
Shanghai, China 200135

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

  

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	PRYOR CASHMAN LLP	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name: Eric M. Hellige
	 	 
	 

	 	Title: Partner	 	 
	 
	 	 	 	 
	Address:

	 	410 Park Avenue	 	 
	 

	 	New York, NY 10022	 	 

 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

John F. Steinmetz

	 	 

			
	Address:	 	33 Fairchild Road
Sharon, CT 06069

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Gregory Lorenzetti

	 	 

			
	Address:	 	630-101 Holbrook Court
Long Beach, CA 90803

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Jeff Senglaub

	 	 

			
	Address:	 	3960 Hillside Drive, Suite 201
Delafield, WI 53018

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

 

	 	 	 	 	 
	 

	 	GALT, BV	 	 
	 
	 	 	 	 
	 

By:

	 	 

 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	Ooise Straat 4	 	 
	 

	 	4054 MN – Echteld	 	 
	 

	 	The Netherlands	 	 
	 

	 	Attn: Luc Jongen	 	 

 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

	 	 	 
	 

Luc Verelst

	 	 

			
	Address:	 	La Baumaniere

Rue de Creta

CO No.: 3

1936 – Verbier

Switzerland

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

 

 

Accepted and Agreed as of the date first above written:

 

	 	 	 	 	 
	 	 	EUROPEAN AMERICAN EQUITIES, LTD.
	 
	 	 	 	 
	 

By:

	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Address:

	 	1 Regent Street	 	 
	 

	 	London, UK SW1Y4NS	 	 

 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	ALLIANCE FINANCIAL LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	310 Little Elk Creek Avenue	 	 
	 

	 	Snowmass, CO 81654	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	BRIO CAPITAL LP	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	401 East 34th Street, Suite South 33C	 	 
	 

	 	New York, NY 10016	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 	 	 
	Courtney L. Clark	 	 
	 
	 	 	 	 
	Address:

	 	310 Stevens Street	 	 
	 

	 	Aspen, CO 81612	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	CROWN NORTHERN WAY CAPITAL LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	15021 Medici Way	 	 
	 

	 	Naples, FL 34110	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 	 	 
	Abraham Heifetz	 	 
	 
	 	 	 	 
	 	 	 
	Naomi Heifetz	 	 
	 
	 	 	 	 
	Address:

	 	10 Israel Eldad Street, Apartment 36	 	 
	 

	 	Jerusalem, Israel 93399	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 	 	 
	J. Mitchell Hull	 	 
	 
	 	 	 	 
	Address:

	 	9 Horse Hollow Road	 	 
	 

	 	Locust Valley, NY 11560	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	RONALD HELLER REVOCABLE TRUST U/A/D 12/23/97	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	74 Fairview Road	 	 
	 

	 	Tenafly, NJ 07670	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	STRATEGIC ALLIANCE FUND, LP	 	 
	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	14 Wall Street, 20th Floor	 	 
	 

	 	New York, NY 10005	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	STRATEGIC ALLIANCE FUND II, LP	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	14 Wall Street, 20th Floor	 	 
	 

	 	New York, NY 10005	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 	 	 
	Robert Abbanat	 	 
	 
	 	 	 	 
	Address:

	 	China Central Place No. 6 Da Wang Lu	 	 
	 

	 	Building 1, Apartment 2705	 	 
	 

	 	Beijing, 100025, China	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 	 	 
	Timothy McLaughlin	 	 
	 
	 	 	 	 
	Address:

	 	249 Mountain View Road	 	 
	 

	 	Whitefield, NH 03598	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Petula Boland

	 	 	 
	Address:

	 	1380 West Third Street
	 

	 	Benicia, CA 94510

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Kathleen McDonnell

	 	 	 
	Address:

	 	495 King George Road
	 

	 	Basking Ridge, NJ 07920

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	WILLIAM EVAN SWINDELLS TRUST	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	139 24th Avenue	 	 
	 

	 	San Francisco, CA 94121	 	 
	 

	 	Attn: Theodore Swindells	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	PHILLIP EDWARD SWINDELLS TRUST	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	139 24th Avenue	 	 
	 

	 	San Francisco, CA 94121	 	 
	 

	 	Attn: Theodore Swindells	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	ELIZABETH HARLEY SWINDELLS TRUST	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	139 24th Avenue	 	 
	 

	 	San Francisco, CA 94121	 	 
	 

	 	Attn: Theodore Swindells	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	ROTH CAPITAL PARTNERS, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	24 Corporate Plaza	 	 
	 

	 	Newport Beach, CA 92660	 	 

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Eric M. Hellige

	 	 	 
	Address:

	 	c/o Pryor Cashman LLP
	 

	 	410 Park Avenue
	 

	 	New York, NY 10022

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Stephen D. Cope

	 	 	 
	Address:

	 	7303 August Pines Drive
	 

	 	Spring, TX 77389

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Jeff Sweet

	 	 	 
	Address:

	 	23610 Tuskin Ranch Court
	 

	 	Katy, TX 77494

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Ronald Moreau

	 	 	 
	Address:

	 	23931 Majestic Forest
	 

	 	New Caney, TX 77357

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Christopher G. Naquin

	 	 	 
	Address:

	 	19110 Owen Oak
	 

	 	Humble, TX 77346

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

                                                            

Eric Storm

	 	 	 
	Address:

	 	315 Cheddington Drive
	 

	 	Katy, TX 77450

 

 

SIGNATURE PAGE TO SHAREHOLDERS’ AGREEMENT

Accepted and Agreed as of the date first above written:

	 	 	 	 	 
	 

	 	SDC Management, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address:

	 	4514 Brittmoore Road	 	 
	 

	 	Houston, TX 77041EX-10.1

Exhibit 10.1

ASSET PURCHASE AGREEMENT

among

THE SELLERS PARTY HERETO

AIG SECURITIES LENDING CORP.,

as AIG Agent

AMERICAN INTERNATIONAL GROUP, INC.,

MAIDEN LANE II LLC,

as Buyer

and

FEDERAL RESERVE BANK OF NEW YORK,

as Controlling Party

Dated as of December 12, 2008

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 1

	Purchase and Sale of RMBS Pool; Limited Recourse; Assignments

	 
	 	 	 	 
	Section 1.01. Purchase and Sale of RMBS Pool

	 	 	2	 
	Section 1.02. Determination and Payment of the Cash Purchase Price

	 	 	2	 
	Section 1.03. Payment and Priority of the Deferred Purchase Price

	 	 	4	 
	Section 1.04. Treatment

	 	 	7	 
	Section 1.05. Misallocated Assets

	 	 	8	 
	Section 1.06. Delivery of RMBS Issues

	 	 	8	 
	Section 1.07. Purchase Prices of RMBS Issues

	 	 	9	 
	 
	 	 	 	 
	ARTICLE 2

	Representations and Warranties of Each Seller Party

	 
	 	 	 	 
	Section 2.01. Organization; Powers

	 	 	10	 
	Section 2.02. Authorization; No Conflict

	 	 	10	 
	Section 2.03. Enforceability

	 	 	10	 
	Section 2.04. Governmental Approvals

	 	 	10	 
	Section 2.05. Litigation; Compliance With Laws

	 	 	11	 
	Section 2.06. Margin Regulations

	 	 	11	 
	Section 2.07. Investment Company Act

	 	 	11	 
	Section 2.08. Sanctioned Persons

	 	 	11	 
	Section 2.09. Participation Percentage

	 	 	12	 
	Section 2.10. Certain Information

	 	 	12	 
	Section 2.11. Solvency

	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3

	Representations and Warranties of AIG

	 
	 	 	 	 
	Section 3.01. RMBS Issues

	 	 	13	 
	Section 3.02. Litigation; Compliance With Laws

	 	 	13	 
	Section 3.03. No Material Misstatements

	 	 	13	 
	Section 3.04. Book Value of RMBS Pool

	 	 	14	 
	Section 3.05. Reasonable Consideration

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 4

	Representations and Warranties of the Buyer

	 
	 	 	 	 
	Section 4.01. Organization; Powers

	 	 	14	 

ii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 4.02. Authorization; No Conflict

	 	 	14	 
	Section 4.03. Enforceability

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 5

	Conditions to Sale and Purchase

	 
	 	 	 	 
	Section 5.01. Conditions to Sale by Each Seller of its Share of Each RMBS Issue

	 	 	15	 
	Section 5.02. Conditions to Purchase of RMBS Pool by the Buyer

	 	 	15	 
	 
	 	 	 	 
	ARTICLE 6

	Miscellaneous

	 
	 	 	 	 
	Section 6.01. Waivers; Amendments

	 	 	17	 
	Section 6.02. Notices; Electronic Communications

	 	 	18	 
	Section 6.03. Binding Effect

	 	 	19	 
	Section 6.04. Survival Of Agreement

	 	 	19	 
	Section 6.05. Indemnity

	 	 	19	 
	Section 6.06. Successors and Assigns

	 	 	20	 
	Section 6.07. Counterparts

	 	 	21	 
	Section 6.08. Severability

	 	 	21	 
	Section 6.09. Integration

	 	 	22	 
	Section 6.10. Applicable Law

	 	 	22	 
	Section 6.11. Jurisdiction; Consent to Service of Process

	 	 	22	 
	Section 6.12. Confidentiality

	 	 	23	 
	Section 6.13. WAIVER OF JURY TRIAL

	 	 	23	 
	Section 6.14. Limited Recourse

	 	 	24	 
	Section 6.15. Certain Tax Matters

	 	 	24	 
	Section 6.16. Headings

	 	 	25	 
	Section 6.17. Further Assurances

	 	 	25	 
	Section 6.18. Third Party Beneficiary

	 	 	25	 
	Section 6.19. Role Of Investment Manager And Controlling Party

	 	 	25	 
	 
	 	 	 	 
	ARTICLE 7

	Definitions

	 
	 	 	 	 
	Section 7.01. Certain Definitions

	 	 	25	 
	Section 7.02. Other Definitional Provisions

	 	 	30	 

SCHEDULES

	 	 	 
	Schedule A

	 	Designated RMBS Issues
	Schedule B

	 	Sellers
	Schedule C

	 	Notice Information

EXHIBIT

iii

 

	 	 	 
	Exhibit A

	 	Cash Purchase Price Adjustment Amount Certificate
	Exhibit B

	 	Form of opinion of Sullivan & Cromwell LLP, New York counsel to each Seller and the AIG Agent
	Exhibit C

	 	Form of opinion of Richards Layton & Finger, Delaware counsel to each Delaware Seller
	Exhibit D

	 	Form of opinion of local insurance counsel to each Seller
	Exhibit E

	 	Form of opinion of in-house counsel to each Seller

iv

 

ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into as of December ____, 2008 among
American General Life Insurance Company (“Seller 1”), American General Life and Accident Insurance
Company (“Seller 2”), The United States Life Insurance Company in the City of New York (“Seller
3”), AIG Life Insurance Company (“Seller 4”), American International Life Assurance Company of New
York (“Seller 5”), American Life Insurance Company (“Seller 6”), AIG Annuity Insurance Company
(“Seller 7”), The Variable Annuity Life Insurance Company (“Seller 8”), SunAmerica Life Insurance
Company (“Seller 9”), First SunAmerica Life Insurance Company (“Seller 10”), AIG SunAmerica Life
Assurance Company (“Seller 11”), AIG Securities Lending Corp., as agent of the Sellers (the “AIG
Agent”), American International Group, Inc. (“AIG”), Maiden Lane II LLC, a Delaware limited
liability company (the “Buyer”) and Federal Reserve Bank of New York in its capacity as Controlling
Party (the “Controlling Party”). Each of Seller 1, Seller 2, Seller 3, Seller 4, Seller 5, Seller
6, Seller 7, Seller 8, Seller 9, Seller 10, and Seller 11 are referred to herein as a “Seller” and
such entities are collectively referred to herein as the “Sellers.” Each Seller and the AIG Agent
are referred to herein as a “Seller Party” and such entities are collectively referred to herein as
the “Seller Parties.” Seller Parties, the Buyer and the Controlling Party are sometimes referred
to herein collectively as the “Parties” or individually as a “Party.”

RECITALS

     A. Each Seller wishes to sell to the Buyer, effective as of the Closing Date, all of its Share
of each RMBS Issue.

     B. The Buyer proposes to purchase from each Seller such Seller’s Share of each RMBS Issue on
the Closing Date by payment to it of its Share of the Cash Purchase Price, the Fixed Deferred
Purchase Price and the Variable Deferred Purchase Price.

     NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth
below, the Parties hereto agree as follows:

 

 

ARTICLE 1

Purchase and Sale of RMBS Pool; Limited Recourse; Assignments

     Section 1.01. Purchase and Sale of RMBS Pool. Subject to the terms and conditions hereof,
effective on the Closing Date, each Seller shall sell, transfer, convey and deliver to the Buyer
all of its right, title and interest in and to its Share of each RMBS Issue and the Buyer hereby
accepts each Seller’s Share of each
such RMBS Issue in exchange for such Seller’s Share of the Cash Purchase Price and of the
Deferred Purchase Price. Immediately upon the sale by all Sellers to the Buyer of all of their
Shares in all of the RMBS Issues on the Closing Date, all Sellers shall instruct the AIG Agent to,
and the AIG Agent shall, deliver all RMBS Issues to the Collateral Agent in accordance with Section
1.06 hereof.

     Section 1.02. Determination and Payment of the Cash Purchase Price.

     (a) The Buyer shall pay to each Seller on the Closing Date its Share of an amount equal to the
Cash Purchase Price (as adjusted for the estimated Cash Purchase Price Adjustment Amount) by paying
such amount to the Escrow Account to be released for purposes only of payment to Federal Reserve
Bank of New York, as counterparty, to close out outstanding securities lending transactions later
on the Closing Date.

     (b) Within 30 days after the Closing Date, the AIG Agent shall deliver to the Controlling
Party a final Cash Purchase Price Adjustment Amount Certificate describing the AIG Agent’s
calculation of the final Cash Purchase Price Adjustment Amount and such other information as shall
permit the Controlling Party to review such calculation. If the Controlling Party and the AIG
Agent agree on the amount of the final Cash Purchase Price Adjustment Amount and such amount
differs from the estimated Cash Purchase Price Adjustment Amount as of the Closing Date, then
within five Business Days after such agreement is reached each Seller shall pay to the Buyer its
Share of the amount by which the final Cash Purchase Price Adjustment Amount exceeds the estimated
Cash Purchase Price Adjustment Amount or the Buyer shall pay to the AIG Agent for the account of
each Seller its Share of the amount by which the final Cash Purchase Price Adjustment Amount is
less than the estimated Cash Purchase Price Adjustment Amount.

     (c) If the AIG Agent or the Controlling Party determines at any time after a determination of
the actual Cash Purchase Price Adjustment Amount is made and before the 90th day
following the Closing Date (and notifies the other party of the same within that same 90-day
period) that such Cash Purchase Price Adjustment Amount must be revised because of the discovery
subsequent to such prior determination of relevant facts, then the AIG Agent shall deliver to the
Controlling Party a revised final Cash Purchase Price Adjustment Amount Certificate describing the
AIG Agent’s calculation of the revised final Cash Purchase Price Adjustment Amount and such other
information as shall permit the Controlling Party to review such calculation. Any further
challenges to the Cash

2

 

Purchase Price Adjustment that have not been raised by the AIG Agent or the
Controlling Party within 90 days after the Closing Date will be deemed waived; provided that such
90-day period may be extended by mutual agreement of the Parties in which case any further
challenges to the Cash Purchase Price Adjustment may be raised in accordance with this Section
within such other mutually-agreed period of time. If the Controlling Party and the AIG Agent agree
on the actual amount of the revised final Cash Purchase Price Adjustment Amount
and such amount differs from the prior final Cash Purchase Price Adjustment Amount, then
within five Business Days after such agreement is reached each Seller shall pay to the Buyer its
Share of the amount by which the revised final Cash Purchase Price Adjustment Amount exceeds the
prior final Cash Purchase Price Adjustment Amount or the Buyer shall pay to the AIG Agent for the
account of each Seller its Share of the amount by which the revised final Cash Purchase Price
Adjustment Amount is less than the prior final Cash Purchase Price Adjustment Amount.

     (d) All calculations and determinations made by the AIG Agent and the Controlling Party under
this Section shall be made in good faith and in a commercially reasonable manner and each such
Person shall provide each other such Person reasonable cooperation in connection with the process
of making such calculations and determinations. In furtherance of the foregoing, the AIG Agent and
each of the Sellers agrees to provide access to its books and records relating to each RMBS Issue
to the Controlling Party and its designees during regular business hours to aid the Controlling
Party and its agents and advisors in their calculations and determinations under this Section. The
Cash Purchase Price Adjustment Amount Certificates delivered pursuant to subsection (b) and (c) of
this Section shall be prepared on a basis consistent with the preparation of Exhibit A hereto and
shall be complete and correct as of the time when delivered by AIG Agent to the Buyer.

     (e) If the AIG Agent and the Controlling Party are unable to reach an agreement on the Cash
Purchase Price Adjustment Amount or any other calculation or determination under Section 1.02(b) or
(c) above, they shall promptly thereafter cause independent accountants (who shall not have any
material relationship with the AIG Agent or any of its Affiliates) of nationally recognized
standing reasonably satisfactory to the AIG Agent and the Controlling Party, promptly to review
this Agreement and the disputed items or amounts for the purpose of calculating the applicable Cash
Purchase Price Adjustment Amount. Such independent accountants shall deliver to the AIG Agent and
the Controlling Party, as promptly as practicable, a report setting forth such calculation. Such
report shall be final and binding upon the AIG Agent, each Seller, the Buyer, the Senior Lender and
the Controlling Party. The cost of such review and report shall be borne by the Buyer.

     (f) If on the scheduled Closing Date any RMBS Issue is delivered to the Collateral Account in
anticipation of purchase by the Buyer but is not purchased in accordance with Section 1.02(a) by
1:30 pm, EST on such day, the Buyer will

3

 

instruct the Collateral Agent to redeliver such RMBS
Issues to the account of the AIG Agent for the account of the Sellers.

     Section 1.03. Payment and Priority of the Deferred Purchase Price.

     (a) After the Closing Date the Deferred Purchase Price shall be paid by the Buyer only in
accordance with the Waterfall. Each Seller shall be entitled to
such Seller’s Share of the Deferred Purchase Price. Interest on the Fixed Deferred Purchase
Price shall accrue during each Calculation Period on a daily basis on the amount of the Fixed
Deferred Purchase Price outstanding as of each day and at a rate per annum equal to LIBOR in effect
for such Calculation Period plus 3.00%; provided that interest on the Fixed Deferred Purchase Price
shall accrue during the initial Calculation Period at the rate of 4.635% per annum. Interest shall
be calculated during any Calculation Period on the basis of the actual days elapsed and the actual
number of days in the calendar year during which such Calculation Period occurs. Interest on the
Fixed Deferred Purchase Price shall be capitalized as of the start of each Interest Capitalization
Date by increasing the outstanding amount of the Fixed Deferred Purchase Price by the amount of
accrued but unpaid interest on the Fixed Deferred Purchase Price as of such time and thereafter
deeming such accrued interest paid in full as of such time. Interest shall not accrue on the
Variable Deferred Purchase Price.

     (b) All rights of the Sellers to payment of the Deferred Purchase Price and any amounts owed
by the Buyer to the Seller Parties under any Transaction Document (other than pursuant to Section
1.02 hereof) or otherwise (collectively, the “Junior Obligations”) are subordinate and junior in
right of payment to (i) the Obligations (excluding the Contingent Interest) owing to the Senior
Lender pursuant to the Credit Agreement, including in respect of principal and interest on the
Senior Loan (excluding the Contingent Interest), and (ii) all other items above the Fixed Deferred
Purchase Price in the priority of payments set forth in the Waterfall (the amounts in clauses (i)
and (ii) being, collectively, the “Senior Debt”) to the extent and in the manner provided in the
Credit Agreement and in the Security Agreement.

     (c) Unless and until all Senior Debt shall have been paid in full in cash in accordance with
its terms, the Buyer shall not, directly or indirectly, make or agree to make:

     (i) any payment (in cash or property, by set-off or otherwise), direct or indirect,
of or on account of Junior Obligations (except for payments relating to the Cash Purchase
Price Adjustment Amount under Section 1.02(b) or (c) above) and no such payment shall be
accepted by any Seller Party; or

     (ii) any purchase, prepayment or other acquisition, direct or indirect, in respect of
the Junior Obligations, and no such payment shall be accepted by any Seller Party.

4

 

     (d) Upon any payment by the Buyer of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution or winding up or total or partial liquidation or
reorganization of the Buyer, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other statutory or common law proceedings or arrangements, then and in any such
event all principal and interest and all other amounts due or that become due upon the
Senior Debt shall first be paid in full in cash before any Seller Party shall be entitled to
retain any amounts so paid in respect of the Junior Obligations and, upon any such dissolution or
winding up or liquidation or reorganization, any payment of any kind or character, whether in cash,
property or securities, to which any Seller Party would be entitled, except as otherwise provided
herein, shall be paid by the Buyer or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other Person making such payment, or by any Seller Party if received by them, to the
Collateral Agent for distribution in accordance with the Waterfall, to the extent necessary to pay
all the Senior Debt in full in cash, after giving effect to any concurrent payment to or for any
holder of the Senior Debt, before any payment is made to any Seller Party on account of the Junior
Obligations.

     (e) Until the Senior Debt shall have been paid in full in cash, each Seller Party irrevocably
authorizes and empowers (without imposing any obligation on) the Senior Lender and its
representatives, under the circumstances set forth in paragraph (c) above, to demand, sue for,
collect and receive every such payment described therein and give acquittance therefor and to file
claims and proofs of claims in any statutory or nonstatutory proceeding. Each Seller Party shall
execute and deliver to the Senior Lender and its representatives all such further instruments
confirming the foregoing authorization, and all such powers of attorney, proofs of claim,
assignments of claim and other instruments, and shall take all such other action as may be
requested by the Senior Lender or its representatives in order to enable the Senior Lender to
enforce all of its claims upon or in respect of the Junior Obligations.

     (f) Until the Senior Debt shall have been paid in full in cash, should any payment be
collected or received by any Seller Party or should any Seller Party acquire custody, control or
possession of all or any portion of the Collateral or the proceeds thereof other than, in each
case, pursuant to or in accordance with the terms of this Agreement, any such Seller Party shall
promptly (but in any event within five Business Days) turn over the same to the Collateral Agent in
the form received (except for the endorsement or the assignment of any such Seller Party when
necessary) and, until so turned over, the same shall be held in trust by any such Seller Party as
the property of the Senior Lender.

     (g) Each Seller Party agrees that it will not at any time, without the prior written consent
of the Controlling Party, (i) commence or institute against the Buyer or join with or facilitate
any other Person in commencing or instituting against the Buyer, any bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution, receivership, insolvency or liquidation
proceedings, or other proceedings under any United States Federal or state, or other jurisdiction,

5

 

bankruptcy or similar law or statute now or hereafter in effect in connection with any obligations
relating to this Agreement or any of the other Transaction Documents or (ii) participate in any
assignment for benefit of creditors, compositions, or arrangements with respect to the Buyer’s
debts. The agreements in this Section 1.03 shall survive termination of this Agreement and payment
in full of the Senior Debt.

     (h) No Seller Party shall have any right to demand payment of, or institute any proceedings in
respect of, the Junior Obligations, or exercise any remedies under this Agreement or any of the
Transaction Documents or request or instruct the Controlling Party or the Collateral Agent to
exercise any such remedies until the Senior Debt is paid in full in cash.

     (i) Application of the foregoing provisions to the Junior Obligations, the subordination
effected thereby and the rights of the Senior Lender shall not be affected by (i) any amendment of
or addition or supplement to any Transaction Document or the Senior Debt or any instrument or
agreement relating thereto or providing collateral security for any Senior Debt, (ii) any exercise
or non-exercise of any right, power or remedy under or in respect of any Transaction Document or
the Senior Debt or any instrument or agreement relating thereto, or any release of any collateral
securing the Senior Debt or (iii) any waiver, consent, release, indulgence, extension, renewal,
modification, delay or any other action, inaction or omission in respect of any Transaction
Document or the Senior Debt or any instrument or agreement relating thereto or providing collateral
security for the Senior Debt, in each case whether or not any Seller Party shall have had notice or
knowledge of any of the foregoing.

     (j) Each Seller Party hereby waives notice of or proof of reliance by the Senior Lender upon
the provisions hereof, and the Senior Debt shall conclusively be deemed to have been created,
contracted, incurred or maintained in reliance upon the provisions hereof.

     (k) The Buyer hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever. The non-exercise by any holder of Senior Debt, the Controlling Party or the Collateral
Agent of any of its rights hereunder or under any other Transaction Document in any particular
instance shall not constitute a waiver thereof in that or any subsequent instance.

     (l) The subordination provisions contained herein are for the benefit of the holders of Senior
Debt and their respective successors and assigns and may not be rescinded or cancelled or modified
in any way without the prior written consent of the Controlling Party.

     (m) Notwithstanding anything herein to the contrary, neither the Controlling Party nor any
holder of Senior Debt shall have any obligation to take the interests of any Seller Party into
consideration when making decisions

6

 

concerning the exercise of any rights or remedies as against
the Buyer or in respect of the Collateral.

     (n) Notwithstanding anything in this Section to the contrary, the Contingent Interest and the
Variable Deferred Purchase Price will rank pari passu with each other and subordinate to the Senior
Debt.

     (o) In addition, none of the foregoing provisions of this Section 1.03 is intended or will be
interpreted as requiring any Seller to return to the Buyer any amounts received by it pursuant to
the Waterfall.

     Section 1.04. Treatment.

     (a) It is the intention of each Party that the sale, transfer, conveyance and delivery of the
RMBS Pool and each Seller’s Share thereof shall constitute a true sale and absolute assignment,
without recourse (except as specifically provided herein), and not for security of RMBS Pool from
the applicable Seller Party to the Buyer and that neither any RMBS Issue nor the RMBS Pool nor any
Seller’s Share thereof be a part of any Seller’s property or estate for any purpose under any state
or federal law, including without limitation in the event of the insolvency of any Seller, after
the Closing Date. Although it is not the intent of the Parties, if the sale, transfer, conveyance
and delivery of any RMBS Issue, the RMBS Pool or any Seller’s Share thereof contemplated by this
Agreement is deemed to be other than a true sale notwithstanding the express intent of the Parties
hereto, this Agreement shall be deemed to be a security agreement that grants as of the date hereof
a first priority security interest from the relevant Seller to the Buyer, and the Buyer shall have
all the rights, powers and privileges of a secured party under the UCC. In such event, each Seller
agrees, at the Buyer’s expense, to take such action and execute and file such documents as shall be
necessary or requested by the Buyer in order to fully realize the benefits of such secured party
status, including, without limitation, powers of attorney, financing statements, notices of lien or
other instruments or documents.

     (b) In accordance with Section 1.04(a), each Party will report the transfer, conveyance, and
delivery of the RMBS Pool, as applicable to such Party, contemplated hereunder as an absolute sale
in any general ledger or other accounting record and, as to each Seller, the separate
unconsolidated financial statements of such Seller. In addition, the transfer, conveyance and
delivery of the RMBS Pool (i) is intended to constitute a sale of such assets and will be reported
as such under United States generally accepted accounting principles or statutory accounting
principles (or such recognized accounting principles applicable to the respective reporting Party)
and for United States federal income tax purposes such that the RMBS Pool will no longer be
included in any consolidated financial statements in which any financial statements of any Seller
are included and (ii) meet all of the requirements for such accounting and tax treatment. Except
as described herein, neither the Sellers nor the AIG Agent now has or intends to acquire any other
direct or indirect ownership or other economic

7

 

interest in, or swap, cap or other hedge or
derivative instrument or other right or obligation with respect to, any RMBS Issue or security
backed thereby.

     (c) Each of the parties hereto hereby agrees that, with respect to any RMBS Issue or other
property, assets or rights purported to be transferred, in whole or in part, by Seller 4 or Seller
6 (together, the “Delaware Sellers” and each a “Delaware Seller”) pursuant to this Agreement, such
transfer shall be deemed to
constitute a “securitization transaction” as the term is defined in the Asset-Backed
Securities Facilitation Act, 6 Del. C. § 2701A et seq.(the
“Securitization Act”). In addition, each of the Parties agrees that any transfer of any RMBS Issue
or other property, assets or rights, in whole or in part, by the Delaware Sellers pursuant to this
Agreement shall be subject to the provisions of the Securitization Act, all of which are
incorporated herein by reference. For purposes of complying with the requirements of the
Securitization Act, each of the Parties hereby further agrees that:

     (i) Any property, assets or rights purported to be transferred, in whole or in part,
by a Seller Party pursuant to this Agreement shall be deemed to no longer be the property,
assets or rights of such Seller Party;

     (ii) None of the Delaware Sellers, their respective creditors or, in any insolvency
proceeding with respect to a Delaware Sellers or its property, a bankruptcy trustee,
receiver, debtor, debtor in possession or similar person, to the extent the issue is
governed by Delaware law, shall have any rights, legal or equitable, whatsoever to
reacquire (except pursuant to provision of this Agreement), reclaim, recover, repudiate,
disaffirm, redeem or recharacterize as property of the Delaware Sellers any property,
assets or rights purported to be transferred, in whole or in part, by the Delaware Sellers
pursuant to this Agreement; and

     (iii) In the event of a bankruptcy, receivership or other insolvency proceeding with
respect to a Delaware Seller or its property, to the extent the issue is governed by
Delaware law, such property, assets and rights shall not be deemed to be part of such
Delaware Seller’s property, assets, rights or estate.

     Section 1.05. Misallocated Assets. If, at any time or from time to time (whether prior to or
after the Closing Date), any Party hereto shall receive or otherwise possess any asset that is
allocated to any other Person pursuant to this Agreement, such Party shall promptly transfer, or
cause to be transferred, such asset to the Person so entitled thereto. Prior to any such transfer,
the Person receiving or possessing such asset shall hold such asset in trust for the other Person
entitled to such asset.

     Section 1.06. Delivery of RMBS Issues. In furtherance of the assignment, transfer,
conveyance and delivery of the RMBS Pool, (a) on the Closing Date each Seller shall instruct the
AIG Agent to, and the AIG Agent shall, execute and

8

 

deliver such stock powers, certificates of
title, assignments of contracts and other instruments of assignment, transfer and conveyance as and
to the extent necessary to evidence the sale, assignment, transfer, conveyance and delivery of all
of the Seller Parties’ right, title and interest in and to each RMBS Issue to the Buyer and (b) on
the Closing Date or as soon as reasonably practicable thereafter (but, in any event, not later than
30 days following the date of this Agreement), the AIG Agent shall use commercially reasonable
efforts to provide to the Collateral
Agent the originals (or, if originals, are not held by the AIG Agent, true and complete
copies) and to the Investment Manager electronic copies of all Related Instruments, if any, in its
possession relating to the RMBS Issues sold to the Buyer under this Agreement. Without limiting
the foregoing, the AIG Agent shall, prior to 10 a.m., New York time, on the Closing Date, cause The
Bank of New York Mellon, as custodian for the RMBS Pool for the benefit of the AIG Agent, to (i)
debit the RMBS Issues to the AIG Agent’s account with The Bank of New York Mellon and credit such
RMBS Issues to the Collateral Account established under the Control Agreement and (ii) confirm in
writing to the Buyer, the Controlling Party and the AIG Agent that all RMBS Issues have been so
credited to the Collateral Account; provided that, if any RMBS Issues have not been so transferred
by such time, the Cash Purchase Price for such RMBS Issues, adjusted as provided in Section 1.02(a)
hereof, shall be subtracted from the Cash Purchase Price payable by the Buyer at the Closing on the
Closing Date. If less than all RMBS Issues are credited to the Collateral Account as of the
Closing Date, each Seller Party agrees to take all further action that may be required to cause all
RMBS Issues to be credited to the Collateral Account promptly following the Closing Date and in no
event later than five Business Days after the Closing Date.

     Section 1.07. Purchase Prices of RMBS Issues. Each of the Parties hereto hereby acknowledges
that: (a) the Investment Manager provided certain mid-market pricing estimates of the RMBS Issues
to the Parties and advised them that they were as of October 31, 2008, that such estimates do not
purport to be current as of the Closing Date and are based on projected cash flows relating to such
RMBS Issues (based in turn on agreed upon assumptions); (b) such estimates, like any estimates
provided under or in connection with the Transaction (including, without limitation, any estimates
of the market value for each RMBS Issue), are inherently uncertain, do not purport to reflect
prices at which transactions in any such RMBS Issues could actually be effected (if any
transactions could be effected) and do not necessarily reflect discounts that would be reflected in
actual market transactions as a result of, among other things, the highly illiquid nature of the
RMBS Issues and related markets; and (c) the parties used such estimates as the basis for their
negotiation of the Purchase Price of the RMBS Issues.

ARTICLE 2

Representations and Warranties of Each Seller Party

     Each Seller Party, as to itself, represents and warrants to the Buyer that:

9

 

     Section 2.01. Organization; Powers. Such Seller (a) is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization, (b) has all requisite
power and authority to (i) own its Share of each RMBS Issue, (ii) sell, transfer, convey and
deliver its Share of each RMBS Issue to the Buyer hereunder and (iii) execute, deliver and perform
its obligations under each Transaction Document and each other agreement or instrument contemplated
thereby to which it is a party and (c) has authorized the Agent to transfer its Share to the
RMBS Pool to ML II and accept the Cash Purchase Price proceeds on such Seller’s behalf as provided
in this Agreement and the other Transaction Documents.

     The AIG Agent represents and warrants to the Buyer that it (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization and (b) has
all requisite power and authority to (i) act as agent for each Seller, (ii) sell, transfer, convey
and deliver the RMBS Pool as agent on behalf of the Sellers hereunder and (iii) execute, deliver
and perform its obligations under each Transaction Document and each other agreement or instrument
contemplated thereby to which it is or will be a party.

     Section 2.02. Authorization; No Conflict. The execution, delivery and performance of each
Transaction Document (to which it is a party) by such Seller Party (a) have been duly authorized by
all requisite corporate and, if required, stockholder action and (b) will not (i) result in the
violation by such Seller Party of (A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or bylaws of such Seller
Party, (B) any order of any Governmental Authority or (C) any provision of any indenture, agreement
or other instrument to which such Seller Party is a party or by which it or any of its property is
or may be bound, (ii) be in conflict with, result in a breach of or constitute (alone or with
notice or lapse of time or both) a default under, or give rise to any right to accelerate or to
require the prepayment, repurchase or redemption of any obligation under any such indenture,
agreement or other instrument or (iii) result in the creation or imposition of any Lien upon or
with respect to any property or assets now owned or hereafter acquired by such Seller Party.

     Section 2.03. Enforceability. This Agreement has been duly executed and delivered by such
Seller Party and constitutes, and each other Transaction Document to which it is a party, when
executed and delivered by such Seller Party, will constitute, a legal, valid and binding agreement
of such Seller Party enforceable against such Seller Party in accordance with its terms, except
that such enforceability may be limited by bankruptcy, insolvency, or other similar laws of general
applicability affecting the enforcement of creditors’ rights generally and by the court’s
discretion in relation to equitable remedies.

     Section 2.04. Governmental Approvals. No action, consent or approval of, notice,
registration or filing with, or any other action by, any Governmental Authority is or will be
required to be taken, obtained or made by such Seller Party

10

 

in connection with the Transactions
except such as (i) have been made or obtained and are in full force and effect and (ii) with
respect to any Governmental Authority of the United States or any state thereof, if the failure to
take such action, obtain such consent or approval or register to file with such Governmental
Authority could not reasonably be expected to have a Material Adverse Effect.

     Section 2.05. Litigation; Compliance With Laws. Except as set forth in AIG’s most recent
Form 10-Q filed with the Securities and Exchange Commission, there are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority or arbitrator now
pending or, to the knowledge of such Seller Party, threatened against or affecting such Seller
Party or any business, property or rights of any such Seller Party (i) that involve any Transaction
Document or the Transactions or (ii) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

     Section 2.06. Margin Regulations. No part of the proceeds of such Seller’s Share of the
Purchase Price will be used, whether directly or indirectly, and whether immediately, incidentally
or ultimately, for any purpose that entails a violation of, or that is inconsistent with, the
provisions of the regulations of the Board of Governors of the Federal Reserve System, including
Regulation T, Regulation U or Regulation X.

     Section 2.07. Investment Company Act. The AIG Agent represents that it is not, and in the
case of each Seller, such Seller represents that it is not, and after application of the proceeds
of its portion of the Purchase Price will not be, required to register as an “investment company”
as such term is defined in the Investment Company Act of 1940, as amended.

     Section 2.08. Sanctioned Persons.

     (a) Each Seller Party represents that neither such Seller Party nor, to the knowledge of such
Seller Party, any director, officer, agent or Affiliate of such Seller Party is a Person that is,
or is owned or controlled by a Person that is, currently:

     (i) the subject of any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department or other relevant non-U.S. sanctions authority
(collectively “Sanctions”) or

     (ii) located, organized or resident in a country or territory that is the subject of
Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, North Korea, Sudan
and Syria).

     (b) Each Seller Party represents and covenants that such Seller Party will not, directly or
indirectly, use the proceeds of its Share of the Cash Purchase

11

 

Price or the Deferred Purchase Price
of the RMBS Pool, or otherwise make available such proceeds to any Person, for the purposes of
financing any activities or business of or with any Person or in any country or territory that, at
the time of such financing, is the subject of Sanctions.

     Section 2.09. Participation Percentage. Such Seller agrees that the Participation Percentage
set forth opposite its name in the definition thereof is its Participation Percentage.

     Section 2.10. Certain Information. The exact legal name of such Seller and jurisdiction of
organization of such Seller is set forth on Schedule B and such information is correct and
complete.

     Section 2.11. Solvency. (a) As of the date hereof and immediately after the Closing, (i) the
consolidated fair value of the assets of such Seller, at a fair valuation, do and will exceed such
Seller’s consolidated debts and liabilities, subordinated, contingent or otherwise; (ii) the
consolidated present fair saleable value of the property of such Seller is and will be greater than
the amount that will be required to pay the probable amount of such Seller’s consolidated debts and
other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (iii) such Seller is and will be able to pay its consolidated debts
and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured and (iv) such Seller does not have and will not have unreasonably small
capital with which to conduct the business in which such Seller is engaged as such business is now
conducted and is proposed to be conducted after the Closing.

     (b) With respect to each Seller which is a regulated insurance company, as of the date hereof
and immediately after the Closing: (a) such Seller’s assets exceeded and will exceed its
liabilities as measured in accordance with statutory accounting principals permitted or prescribed
by such Seller’s primary regulator; (b) net realizable value of the property of such Seller is and
will be greater than the amount that will be required to pay the probable amount of such Seller’s
debts and other liabilities, subordinate, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c) such Seller is and will be able to pay its
liabilities, subordinated, continent or otherwise, as such liabilities become absolute and matured;
and (d) such Seller has and will have capital in excess of company action levels (or, in the case
of Seller 6, its equivalent).

     (c) In any proceeding involving, or determining, any of the matters set forth in subsection
(a) of this Section, if and to the extent that the laws of the State of New York other than the
insurance laws are applicable, the provisions of subsection (a) and not subsection (b) shall be
applicable. In any proceeding involving, or determining, any of the matters set forth in
subsection (b) of this Section, if and to the extent insurance laws are applicable, the provisions
of subsection (b) and not subsection (a) shall be applicable.

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ARTICLE 3

Representations and Warranties of AIG

     AIG represents to the Buyer that:

     Section 3.01. RMBS Issues. (a) Each Seller has good and marketable title to its Share of
each of the RMBS Issues and has full right to sell and assign its Share of each RMBS Issue to the
Buyer free and clear of any Lien or impediment to sale, or any other adverse claim (as defined in
Article 8 of the NYUCC), and has full right and authority to sell and assign its Share of each RMBS
Issue pursuant to this Agreement. On the Closing Date, upon the sale, conveyance and delivery to
the Buyer of all of such Seller’s right, title and interest in and to its Share of each RMBS Issue
in accordance with Section 1.06 hereof and on payment of the Cash Purchase Price by the Buyer to
the Sellers, the Buyer shall have good and marketable title to 100% of all of the right, title and
interest in each RMBS Issue free and clear of all Liens and any other adverse claims other than by
or on behalf of the Buyer and will be a bona fide holder for value with respect to each RMBS Issue.

     (b) Each RMBS Issue is in the custody of or maintained on the books of the Depository Trust
Company.

     Section 3.02. Litigation; Compliance With Laws. Except as set forth in AIG’s most recent
Form 10-Q filed with the Securities and Exchange Commission, there are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority or arbitrator now
pending or, to the knowledge of AIG, threatened against or affecting AIG or any business, property
or rights of AIG (i) that involve any RMBS Issue or (ii) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined, could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect.

     Section 3.03. No Material Misstatements. No information, report, certificate, financial
statement, exhibit or schedule furnished by AIG or by the Seller Parties to the Buyer in connection
with the negotiation of any Transaction Document or in connection with the acquisition of any RMBS
Issue, when taken as a whole, contained any material misstatement of fact or omitted to state any
material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that to the extent any such information, report,
certificate, financial statement, exhibit or schedule was based upon or constitutes a forecast or
projection, AIG represents only that it or the Seller Parties, as the case may be, acted in good
faith and utilized assumptions reasonable at the time made (based upon accounting principles
consistent with the historical audited financial statements of AIG or such Seller Party, as the
case may be) and exercised due care in the preparation of such information, report, certificate,
financial statement, exhibit or schedule.

13

 

     Section 3.04. Book Value of RMBS Pool. The AIG Agent’s October 31, 2008 valuation of the
RMBS Pool, as previously provided to Buyer, was prepared applying the same policies, processes and
procedures that are used for valuations performed for use in AIG’s quarter-end financial statements
in accordance with FASB Statement No. 115 Accounting for Certain Investments in Debt and Equity
Securities and FASB Statement No. 157 Fair Value Measurement.

     Section 3.05. Reasonable Consideration. Prior to entering into this Agreement, AIG Agent
explored various means of monetizing the RMBS Pool on behalf of the Sellers. These efforts
included, among other things, internal analysis and retaining and consulting with BlackRock
Financial Management, Inc. (“BlackRock”) and Morgan Stanley & Co. Incorporated to assist the AIG
Agent in determining available options for disposing of the RMBS Pool. Based upon (a) the
foregoing efforts, (b) the AIG Agent’s valuation of the RMBS Pool for purposes of AIG’s third
quarter financial statements and also as of October 31, 2008, (c) the AIG Agent’s assessment of
market conditions and pricing provided by third-party pricing services and (d) the valuations
determined by Blackrock in consultation with the Controlling Person and Buyer, the Seller Parties
concluded that the Purchase Price was reasonable consideration for the RMBS Pool.

ARTICLE 4

Representations and Warranties of the Buyer

     The Buyer represents to each Seller Party as of the date hereof that:

     Section 4.01. Organization; Powers. The Buyer (i) is duly organized and validly existing
under the laws of the State of Delaware, (ii) is in good standing under the laws of such state and
(iii) has full power and authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents to which it will be a party.

     Section 4.02. Authorization; No Conflict. The Buyer’s execution, delivery, and performance
of this Agreement and the other Transaction Documents to which it is a party have not resulted, and
will not result, in a breach or violation of any provision of (i) the Buyer’s organizational
documents, (ii) any statute, law, writ, order, rule or regulation of any governmental authority
applicable to the Buyer, (iii) any judgment, injunction, decree order or determination applicable
to the Buyer or (iv) any contract, indenture, mortgage, loan agreement, note, lease or other
instrument by which the Buyer may be bound or to which any of the assets of the Buyer are subject.

     Section 4.03. Enforceability. This Agreement and each other Transaction Document to which
the Buyer is a party (i) has been duly authorized, executed and delivered by the Buyer and (ii)
constitutes the legal, valid, and binding

14

 

obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except
that such enforceability may be limited by bankruptcy, insolvency, or other similar laws of general
applicability affecting the enforcement of creditors’ rights generally and by the court’s
discretion in relation to equitable remedies. No notice to, registration with, consent or approval
of, or any other action by, any relevant Governmental Authority or other Person is or will be
required for the Buyer to execute, deliver and perform its obligations under this Agreement or any
other Transaction Document except such as have been obtained and are in full force and effect.

ARTICLE 5

Conditions to Sale and Purchase

     Section 5.01. Conditions to Sale by Each Seller of its Share of Each RMBS Issue. Each
Seller’s obligation to sell, transfer, convey and deliver its Share of the RMBS Pool to the Buyer
on the Closing Date shall be subject to the conditions that (a) the Buyer’s representations and
warranties set forth in Article 4 hereof are true and correct on the Closing Date as if made on and
as of the Closing Date, (b) such Seller shall have received a counterpart of this Agreement duly
executed on behalf of the Buyer and (c) such Seller shall have received payment of its Share of the
Cash Purchase Price for the RMBS Pool from the Buyer.

     Section 5.02. Conditions to Purchase of RMBS Pool by the Buyer. The Buyer’s obligation to
purchase all of the Sellers’ Shares of the RMBS Pool and to pay the Cash Purchase Price on the
Closing Date are subject to satisfaction of the following conditions precedent on the Closing Date:

     (a) The Buyer shall have received executed legal opinions dated the Closing Date and addressed
to, and in form satisfactory to, the Buyer and the Controlling Party and covering such other
matters incident to the Transactions as any the Buyer or the Controlling Party shall have
reasonably requested from:

     (i) Sullivan & Cromwell LLP, New York counsel to each Seller and the AIG Agent, in
substantially the form of Exhibit B hereto;

     (ii) Richards Layton & Finger, Delaware counsel to each Delaware Seller in
substantially the form of Exhibit C hereto;

     (iii) local insurance counsel to each Seller in substantially the form of Exhibit D
hereto; and

     (iv) in-house counsel for each Seller in substantially the form of Exhibit E hereto.

15

 

     (b) All legal matters incident to this Agreement, the purchase and sale of each Seller’s Share
of the RMBS Pool hereunder and the other Transaction Documents shall be satisfactory to the Buyer.

     (c) The Buyer shall have received (i) a copy of the certificate or articles of incorporation,
formation or organization (as applicable), including all amendments thereto, of each Seller Party,
certified as of a recent date by the Secretary of State of the state of its organization, and a
certificate as to the good standing of each Seller Party, as of a recent date, from such Secretary
of State; (ii) a certificate of the Secretary or Assistant Secretary of each Seller Party dated the
Closing Date and certifying (A) that attached thereto is a true and complete copy of the bylaws,
operating agreement, partnership agreement or other applicable constitutive document of such Seller
Party as in effect on the Closing Date and at all times since a date prior to the date of the
resolutions described in clause (B) below, (B) that attached thereto is a true and complete copy of
resolutions duly adopted by the Board of Directors or equivalent body of such Seller Party
authorizing the execution, delivery and performance of the Transaction Documents to which such
Seller Party is a Party and that such resolutions have not been modified, rescinded or amended and
are in full force and effect, (C) that the certificate or articles of incorporation, formation or
organization (as applicable) of such Seller Party have not been amended since the date of the last
amendment thereto furnished pursuant to clause (i) above and (D) as to the incumbency and specimen
signature of each officer executing any Transaction Document or any other document delivered in
connection herewith on behalf of such Seller Party; (iii) a certificate of another officer as to
the incumbency and specimen signature of the Secretary or Assistant Secretary executing the
certificate pursuant to clause (ii) above; and (iv) such other documents as the Buyer may
reasonably request.

     (d) The Buyer shall be satisfied in its sole discretion with the collateral (including the
value of such collateral) securing the obligations of the Obligors with respect to the RMBS Issues.

     (e) The Buyer shall have received the results of a search of the Uniform Commercial Code
filings (or equivalent filings) made with respect to each Seller Party in the states (or other
jurisdictions) of formation of such Seller Parties as indicated on Schedule B hereto and no Liens
on or with respect to any RMBS Issue or any Seller’s Share of any RMBS Issue shall be indicated by
such search.

     (f) All requisite Governmental Authorities and third parties shall have approved or consented
to the Transactions to the extent required, all applicable appeal periods shall have expired and
there shall not be any pending or threatened litigation, governmental, administrative or judicial
action that could reasonably be expected to restrain, prevent or impose burdensome conditions on
the Transactions.

     (g) The representations and warranties of each of the Seller Parties set forth in Article 2
hereof and of AIG set forth in Article 3 hereof and in each other

16

 

Transaction Document to which a Seller Party or AIG is a party shall be true and correct on
and as of the Closing Date with the same effect as though made on and as of such date, except to
the extent such representations and warranties expressly relate to an earlier date.

     (h) At the time of and immediately after the Closing, no Default (as defined in the Credit
Agreement dated as of September 22, 2008 between AIG, as Borrower, and Federal Reserve Bank of New
York, as Lender) shall have occurred and be continuing.

     (i) If the Collateral Agent shall have advised the Buyer in writing prior to noon, EST, on the
Closing Date that not all RMBS Issues have been delivered to the Collateral Account, the Buyer
shall be satisfied, in its sole discretion, with the number of RMBS Issues so delivered.

     (j) The Buyer shall have received a copy of the true sale and non-consolidation signed legal
opinions delivered to each Seller or its accountants.

     (k) The Buyer shall have received counterparts of this Agreement duly executed by each Party
other than the Buyer.

     (l) Agreements terminating the Sec Lending Program upon closing out the last of the
transactions then outstanding thereunder, in form and substance satisfactory to the Buyer, shall
have been executed and delivered by all the parties thereto other than Federal Reserve Bank of New
York.

     (m) Each of the conditions precedent set forth in Section 6.01 of the Credit Agreement shall
have been satisfied.

ARTICLE 6

Miscellaneous

     Section 6.01. Waivers; Amendments.

     (a) No failure or delay of the Buyer in exercising any power or right hereunder or under any
other Transaction Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
a right or power, preclude any other or further exercise thereof or the exercise of any other right
or power. The rights and remedies of the Buyer hereunder and under the other Transaction Documents
are cumulative and are not exclusive of any rights or remedies that it would otherwise have. No
waiver of any provision of this Agreement or any other Transaction Document or consent to any
departure by any Seller Party shall in any event be effective unless the same shall be permitted by
paragraph (b) below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand

17

 

on any Seller Party in any case shall entitle any Seller Party to any other or further notice
or demand in similar or other circumstances.

     (b) The Buyer may, with the consent of the Controlling Party (and shall, if directed by the
Controlling Party), from time to time, (i) enter into written amendments, supplements or
modifications hereto and to the other Transaction Documents for the purpose of adding any
provisions to this Agreement or the other Transaction Documents or changing in any manner the
rights of the Controlling Party or the Buyer hereunder or thereunder or (ii) waive any of the
requirements of this Agreement or the other Transaction Documents or any Event of Default and its
consequences; provided that no such waiver and no such amendment, supplement or modification shall,
without the written consent of each AIG Entity directly affected thereby, (A) reduce the Purchase
Price, (B) reduce the rate at which interest accrues hereunder on the Fixed Deferred Purchase
Price, (C) amend the Waterfall in a way that is material and adverse to the Sellers or (D) amend
any term or provision of this Agreement or any other Transaction Document in a way that is material
and adverse to such AIG Entity. Any such waiver and any such amendment, supplement or modification
shall be binding upon the Buyer, the Controlling Party and each AIG Entity. No waiver of any Event
of Default shall extend to any subsequent or other Event of Default or impair any right consequent
thereon. Neither this Agreement nor any provision hereof may be waived, amended or modified except
in accordance with the provisions of this Section, and any purported amendment, supplement or
modification not complying with the terms of this Section shall be null and void.

     Section 6.02. Notices; Electronic Communications.

     (a) Except in the case of notices and other communications expressly permitted to be given by
telephone, notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
fax or e-mail, and all notices and other communications expressly permitted hereunder to be given
by telephone shall be made, to the applicable address, fax number, e-mail address or telephone
number specified for the applicable Party in Schedule C.

     (b) All notices and other communications given to any Party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service or sent by fax or email or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such Party as provided in this Section or in accordance with the latest
unrevoked direction from such Party given in accordance with this Section. As agreed to among the
Parties from time to time, notices and other communications may also be delivered by e-mail to the
e-mail address of a representative of the applicable Party provided from time to time by such
Party.

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     (c) The Buyer hereby agrees that it shall cause the Administrative Agent to provide to AIG on
behalf of the Sellers copies of all notices and reports (other than those by or from the Investment
Manager) delivered to the Buyer or the holders of the Senior Loan pursuant to the Transaction
Documents to the extent such notices and reports have not been delivered to AIG or the Sellers
pursuant to the other Transaction Documents. AIG shall provide to the Sellers copies of all
notices and reports delivered to AIG pursuant to the Transaction Documents to the extent such
notices and reports have not been delivered to the Sellers pursuant to the other Transaction
Documents.

     Section 6.03. Binding Effect. This Agreement shall become effective when it shall have been
executed by each Party and a fully executed counterpart hereof is delivered to the Buyer and, on
behalf of each Seller Party, to the AIG Agent.

     Section 6.04. Survival Of Agreement. All covenants, agreements, representations and
warranties made by each Seller Party herein and in the certificates or other instruments prepared
or delivered in connection with or pursuant to this Agreement or any other Transaction Document
shall be considered to have been relied upon by the Buyer and shall survive the Closing, regardless
of any investigation made by the Buyer or on its behalf, and shall continue in full force and
effect as long as any RMBS Issue is outstanding and unpaid. Notwithstanding anything to the
contrary herein, the provisions of Section 6.05 and Section 6.14 shall remain operative and in full
force and effect regardless of the expiration of the term of this Agreement, the consummation of
the Transactions, the Disposition, repayment, prepayment or collection of the last RMBS Issue, the
invalidity or unenforceability of any term or provision of this Agreement or any other Transaction
Document or any investigation made by or on behalf of the Buyer.

     Section 6.05. Indemnity. (a) Each Seller Party severally agrees to indemnify the Buyer, the
Controlling Party and each of their respective Related Parties (each such party being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees, charges and
disbursements, incurred by or asserted against any Indemnitee arising out of, in any way connected
with or as a result of any claim, litigation, investigation or proceeding relating to such Seller
having made a representation or warranty herein or in any other Transaction Document that is
incorrect in any respect at the time made or deemed made, whether or not any Indemnitee is a Party
thereto (and regardless of whether such matter is initiated by a third Party or by any Seller Party
or any of their respective Affiliates), provided that no Seller Party shall have any obligation
under this subsection to any such Indemnitee if the representation or warranty alleged to be
incorrect is determined by a final and unappealable decision of a court not to have been incorrect.

19

 

     (b) The indemnities in clause (a) of this Section shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted primarily from the bad faith, gross negligence, fraudulent actions or willful misconduct
of such Indemnitee; provided that the Seller Parties shall not be obligated to pay, indemnify or
hold harmless any Indemnitee if such Indemnitee (i) does not provide reasonably prompt notice to
the Seller Parties (with a copy to the Controlling Party) of any claim for which indemnification is
sought or (ii) admits any liability or incurs any significant expenses after receiving actual
written notice of the claim (which is sufficiently specific to give reasonable notice of the
existence of the claims and the expenses of such legal proceedings), or agrees to any settlement
without the prior written consent of the Seller Parties. The Seller Parties may, in their sole
discretion and at their expense, control the defense of the claim including designating counsel for
the Indemnitees and controlling all negotiations, litigation, arbitration, settlements, compromises
and appeals of any claim.

     (c) To the extent permitted by applicable law, no Party, and no Person benefitting from the
indemnity provided herein, shall assert, and each Party waives and the Seller Parties shall have no
obligation with respect to, any claim against any other party, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, the Senior Loan, or the use of the proceeds
thereof.

     (d) Notwithstanding any provision in this Agreement or any other Transaction Document, the
Seller Parties shall have no liability to the Buyer with respect to the collectibility of any
amounts under the RMBS Pool, the Obligor of any RMBS Issue, the default by any Obligor on any
obligation of such Obligor with respect to the applicable RMBS Issue, or the failure of any Obligor
to make any payment pursuant to the applicable RMBS Issue and its Related Instruments.

     Section 6.06. Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective successors and assigns permitted by this Section. Any
assignment or transfer by a Party of rights or obligations under this Agreement that does not
comply with this Section shall be null and void.

     (b) No Party may assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the consent of the Controlling Party and each other Party hereto, other than
in accordance with this Section.

     (c) The Buyer may transfer or assign its rights and obligations under this Agreement, in whole
or from time to time in part, to (i) one or more of its

20

 

Affiliates at any time and (ii) after the Closing Date, to any Person; provided that no such
transfer or assignment by the Buyer will relieve the Buyer of its obligations hereunder or enlarge,
alter or change any obligation of any other party hereto or due to the Buyer; provided further that
no such transfer or assignment shall be permitted unless the Buyer first obtains an opinion
(reasonably satisfactory to the Controlling Party) of nationally recognized tax counsel that such
transfer or assignment will not (I) result in the income from the RMBS Pool becoming subject to
corporate income tax in such a manner that it would reduce the amounts of Deferred Purchase Price
available for payment to the Sellers or (II) cause losses realized by the Sellers from the sale of
any RMBS Issue hereunder that were deferred by the Sellers under section 267(f) of the Code, if
any, to be disallowed pursuant to Section 267(a) of the Code. The Buyer agrees to provide a copy
of any such opinion to the Sellers at least 3 Business Days prior to such assignment or transfer
(if such prior delivery is reasonably practicable under the circumstances, and if not, as soon as
such delivery is reasonably practicable) copying such notice and opinion to Tax Director, American
International Group, Inc., 70 Pine Street, New York, New York, 10270. AIG and the Sellers shall
provide the Buyer and its tax counsel any information reasonably requested for the purpose of
counsel’s rendering the required opinion.

     (d) Each Seller may sell, assign or otherwise transfer (including through participation) all,
but not less than all, of its Share of the Deferred Purchase Price to (i) AIG if it is at the time
a “qualified purchaser” (as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940,
as amended) or (ii) any other Person with the consent of the Controlling Party. Any assigning
Seller shall promptly notify the Controlling Party, any other Seller, the Senior Lender, the
Investment Manager, the Collateral Agent, the Administrator and the Buyer of such assignment and
the date of effectiveness of such assignment. From and after the date of such notice of
assignment, AIG or such other Person shall be a party hereto and have the rights and obligations of
the assigning Seller under this Agreement and the other Transaction Documents, and the assigning
Seller shall be released from its obligations under this Agreement (to the extent of the interest
so assigned) and such Seller shall cease to be a Party hereto but shall continue to be subject to
the obligations set forth in Section 6.05.

     Section 6.07. Counterparts. This Agreement may be executed in counterparts (and by different
Parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective when the
condition described in Section 6.03 is satisfied. Delivery of an executed signature page to this
Agreement by facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.

     Section 6.08. Severability. If any one or more of the provisions contained in this Agreement
or in any other Transaction Document should be held invalid, illegal or unenforceable in any
respect, then, to the extent permitted by applicable law, the validity, legality and enforceability
of the remaining provisions contained

21

 

herein and therein shall not in any way be affected or impaired thereby (it being understood
that the invalidity of a particular provision in a particular jurisdiction shall not in and of
itself affect the validity of such provision in any other jurisdiction). The Parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions, the economic effect of which comes as close as possible to that of the
invalid, illegal or unenforceable provisions.

     Section 6.09. Integration. This Agreement and the other Transaction Documents represent the
entire agreement of the Parties with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the Borrower, any Seller Party or
the Controlling Party relative to the subject matter hereof not expressly set forth or referred to
herein or in the other Transaction Documents.

     Section 6.10. Applicable Law. THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK; provided, however,
that any sale, transfer, assignment or other conveyance of any RMBS Issue or other property, assets
or rights by a Delaware Seller to the Buyer pursuant to this Agreement shall be governed by and
construed in accordance with the laws of the state of Delaware, including the Securitization Act,
without reference to its conflict of law provisions, and the effectiveness and nature of any such
sale, transfer, assignment or other conveyance shall be determined in accordance with such laws.

     Section 6.11. Jurisdiction; Consent to Service of Process. (a) Each Party hereby
irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of any New York State court or federal court of the United States of America sitting in New York
City, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Transaction Documents, or for recognition or enforcement of
any judgment, and each of the Parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such federal court. Each Party agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

     (b) Each Party hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement or the other
Transaction Documents in any New York State or federal court. Each Party hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

22

 

     (c) Each Party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 6.02. Nothing in this Agreement will affect the right of any Party
to this Agreement to serve process in any other manner permitted by law.

     Section 6.12. Confidentiality. AIG and each Seller Party agrees to keep confidential all non
public information, including, without limitation, the Transaction Documents, and other related
documents provided to it by any Party pursuant to or in connection with the Transaction Documents;
provided that nothing herein shall prevent AIG or any Seller Party (or its Related Parties who are
provided such information pursuant to clause (a) below) from disclosing any such information (a) to
its Related Parties who have a need to know such information (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of such information and
instructed to keep such information confidential), (b) upon the request or demand of any regulatory
authority, any tax authority or the National Association of Insurance Commissioners, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process, (d)
in connection with the exercise of any remedies hereunder or under the other Transaction Documents
or any suit, action or proceeding relating to the enforcement of its rights hereunder or
thereunder, (e) with the consent of the Controlling Party, (f) to the extent such information
becomes publicly available other than as a result of a breach of this Section or (g) to any
prospective buyers of such Seller Party or prospective providers of financing for such buyers and
their agents and representatives if such buyer or financing provider and their agents and
representatives agree to be bound by the provisions of this Section with respect to such
information; provided, further, that prior to any disclosure of information pursuant to clause (b)
or (c) of the proviso above, AIG or such Seller Party shall notify the Buyer, if legally permitted
to do so, of any proposed disclosure as far in advance of such disclosure as practicable and, upon
the Buyer’s or the Controlling Party’s request, take all reasonable actions to ensure that any
information disclosed is accorded confidential treatment, or if such notice to the Buyer and the
Controlling Party is prohibited by law, inform the relevant court or regulatory authority of the
Buyer’s and the Controlling Party’s interest in the disclosed information and request that such
court, regulatory authority inform the Buyer and the Controlling Party of the disclosure.

     Section 6.13. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER TRANSACTION DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE

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EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     Section 6.14. Limited Recourse. Notwithstanding anything to the contrary contained in this
Agreement and the other Transaction Documents, the obligations of the Buyer under this Agreement
and all other Transaction Documents are solely the obligations of the Buyer and shall be payable
solely to the extent of funds received by and available to the Buyer in accordance with the
Waterfall. Whether or not any portion of the Purchase Price or any other amount remains
outstanding at the time, all obligations of the Buyer with respect to the Purchase Price and such
other amounts shall be terminated and extinguished on the date on which all of the assets of the
Buyer have been fully liquidated and disposed of and all proceeds thereof have been distributed in
accordance with the Waterfall. No recourse shall be had for the payment of any amount owing in
respect of any obligation of, or claim against, the Buyer arising out of or based upon this
Agreement or any other Transaction Document against any holder of a Membership Interest, employee,
officer or Affiliate thereof and, except as specifically provided herein and in the other
Transaction Documents, no recourse shall be had for the payment of any amount owing in respect of
any obligation of, or claim against, the Buyer arising out of or based upon this Agreement against
the Collateral Agent, the Administrator, the Investment Manager or any holder of the Membership
Interests of the Buyer or any Related Party of any thereof; provided that the foregoing shall not
relieve any such person or entity from any liability they might otherwise have as a result of
willful misconduct, gross negligence or fraudulent actions taken or omissions by them. The
provisions of this Section shall survive the termination or expiration of this Agreement and
payment in full of all of the Purchase Price.

     Section 6.15. Certain Tax Matters. It is the intention of the Parties that for U.S. federal
income tax purposes: (a) the Senior Loan shall be treated as the sole equity interest in the Buyer;
(b) the proceeds realized by the Sellers of the RMBS Pool shall be the sum of (i) the Cash Purchase
Price, (ii) the Fixed Deferred Purchase Price (other than any interest thereon) and (iii) the
Variable Deferred Purchase Price (other than any interest imputed thereon for federal income tax
purposes); (c) the Buyer shall be treated as the owner of the RMBS Pool; and (d) the Buyer shall be
treated as an entity disregarded from its owner. The terms of this Agreement and the other
Transaction Documents shall be interpreted consistently with this intention, and the Parties agree
to not take any position for U.S. federal income tax purposes (in a filing or otherwise) contrary
to this intention. For the avoidance of doubt, each Party agrees that it shall not make an
election to treat the Buyer as an association taxable as a corporation for federal income tax
purposes.

24

 

     Section 6.16. Headings. Article and Section headings used herein are for convenience of
reference only, are not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

     Section 6.17. Further Assurances. Each of the Seller Parties and the Buyer agrees to execute
any and all further documents, financing statements, agreements and instruments, and take all
further action (including filing Uniform Commercial Code and other financing statements) that may
be required under applicable law, or that the Buyer or any of the Seller Parties may reasonably
request, in order to effectuate the transactions contemplated by this Agreement; provided that no
party shall be required to incur any costs or liabilities in connection therewith.

     Section 6.18. Third Party Beneficiary. The Senior Lender is an express third party
beneficiary of Sections 1.03 and 6.06(d) hereof. The Investment Manager is an express third party
beneficiary of Sections 1.06, 1.07, 3.05, 3.06, 6.06(d), 6.14 and 6.19 hereof. The Collateral Agent
is an express third party beneficiary of Sections 1.01, 1.03, 1.06, 6.06(d) and 6.14 hereof.

     Section 6.19. Role Of Investment Manager And Controlling Party. Each party hereby accepts
the role and powers of the Investment Manager described in the Credit Agreement and the other
Transaction Documents and understands that the Investment Manager will be solely the agent of the
Controlling Party. In addition, the Controlling Party has ultimate authority with respect to all
decisions regarding the management of the Collateral (which it may delegate, in whole or in part,
to the Investment Manager or otherwise), including decisions as to when to dispose of Collateral.
In exercising such control, the Controlling Party and its agents, including the Investment Manager,
shall have no duty to maximize returns on the Collateral or to take into account the interests of
any AIG Entity or the Senior Lender or any other Secured Party.

ARTICLE 7

Definitions

     Section 7.01. Certain Definitions. Capitalized terms used herein and not defined herein
shall have the meanings ascribed to such terms in the Credit Agreement dated as of the date hereof
(the “Credit Agreement”) among the Buyer, as Borrower, Federal Reserve Bank of New York, as the
Senior Lender and the Controlling Party, and the Collateral Agent. The following capitalized terms
used herein shall have the following meanings:

     “Accrual Rate” means one month LIBOR as of October 29, 2008, which was 3.1175%, plus 1.0%.

25

 

     “Affiliate” means, when used with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified. For the avoidance of doubt, none of the Buyer, any Federal
Reserve Bank nor the United States Treasury shall be deemed to be an “Affiliate” of any AIG Entity
for purposes of any Transaction Document. “Control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise, and the terms “Controlling”
and “Controlled” shall have meanings correlative thereto.

     “AIG” means American International Group, Inc.

     “AIG Agent” has the meaning set forth in the introductory paragraph of this Agreement.

     “AIG Entity” has the meaning set forth in the Credit Agreement.

     “Buyer” has the meaning set forth in the introductory paragraph to this Agreement.

     “Calculation Period” has the meaning set forth in the Credit Agreement.

     “Cash Purchase Price” means an amount equal to (i) the Designated Purchase Price plus (ii)
interest from and including the Designation Date to but excluding the Closing Date on the
Designated Purchase Price at the Accrual Rate as set forth in column G of Schedule A hereto minus
(iii) the Cash Purchase Price Adjustment Amount.

     “Cash Purchase Price Adjustment Amount” means an amount equal to (i) interest and other yield
payments received by or on behalf of any Seller on each RMBS Issue (except payments due prior to
the Designation Date and not included in the determination of the Designated Purchase Price of such
RMBS Issue) on or after the Designation Date set forth in column J of Schedule A hereto (as may be
revised by the Cash Purchase Price Adjustment Amount Certificate in accordance with Sections 1.02
(b) and (c)) plus (ii) all net sale proceeds, if any, and payments of principal received by or on
behalf of any Seller in respect of each RMBS Issue on or after the Designation Date (except
payments due prior to the Designation Date and not included in the determination of the Designated
Purchase Price of such RMBS Issue) set forth in column I of Schedule A hereto (as may be revised by
the Cash Purchase Price Adjustment Amount Certificate in accordance with Sections 1.02 (b) and (c))
plus (iii) interest at the Accrual Rate on each amount referred to in clauses (i) and (ii) above
from and including the date as of which such amount is credited to the account of the AIG Agent or
a Seller as set forth in column H of Schedule A hereto to but excluding the Closing Date as set
forth in column L of Schedule A hereto (as may be revised by the

26

 

Cash Purchase Price Adjustment Amount Certificate in accordance with Sections 1.02 (b) and
(c)).

     “Cash Purchase Price Adjustment Amount Certificate” means a certificate of the AIG Agent in
substantially the form of Exhibit A hereto delivered pursuant to Section 1.02 (b) or (c) hereof.

     “Closing” means the consummation of the Transactions scheduled to occur on the Closing Date
upon satisfaction of the conditions precedent set forth in Article 5 hereof and in Section 4.01 of
the Credit Agreement.

     “Closing Date” has the meaning set forth in the Credit Agreement.

     “Collateral Account” has the meaning set forth in the Security Agreement.

     “Collateral Agent” has the meaning set forth in the Security Agreement.

     “Controlling Party” has the meaning set forth in the Credit Agreement.

     “Deferred Purchase Price” means the Fixed Deferred Purchase Price and the Variable Deferred
Purchase Price.

     “Designated Purchase Price” means the sum of the amounts set forth opposite the Designated
RMBS Issues in column F of Schedule A hereto, which amounts were determined as of the Designation
Date and include accrued and unpaid interest and other yield payments (but not overdue interest and
other equivalent yield payments) through but excluding the Designation Date as set forth in column
E of Schedule A hereto.

     “Designated RMBS Issue” means an RMBS Issue listed on Schedule A attached hereto that is owned
by the AIG Agent for the benefit of the Sellers on the Designation Date.

     “Designation Date” means October 31, 2008.

     “Disposition” means, with respect to any RMBS Issue or any right therein or thereunder, any
sale, assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and
“Disposed of” have correlative meanings.

     “Financial Officer” of any Person means the chief financial officer, principal accounting
officer, treasurer or controller of such Person.

     “Fixed Deferred Purchase Price” means, with respect to all of the Sellers, an amount equal to
one billion dollars ($1,000,000,000) plus interest thereon and, with respect to any Seller, such
Seller’s Share of the Fixed Deferred Purchase Price.

27

 

     “Governmental Authority” means any federal, state, local, municipal or foreign court or
governmental agency, authority, instrumentality or regulatory body, including any board of
insurance, insurance department or insurance commissioner.

     “Junior Obligations” has the meaning set forth in Section 1.03(b).

     “LIBOR” has the meaning set forth in the Credit Agreement.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).

     “Material Adverse Effect” means (a) a material impairment of the totality of the rights and
remedies of, or benefits available to the Buyer, the Senior Lender or the Collateral Agent under
the Transaction Documents taken as a whole or (b) a material adverse effect on the value of the
RMBS Pool.

     “NYUCC” means the UCC as in effect from time to time in the State of New York.

     “Obligor” means the issuer or the guarantor or both of any RMBS Issue, as the context
requires.

     “Participation Percentage” means, with respect to each Seller, the percentage set forth below
for that Seller:

	 	 	 	 	 
	 	 	Participation
	Seller	 	Percentage
	Seller 1: American General Life Insurance
Company
	 	 	17.65	%
	Seller 2: American General Life and Accident
Insurance Company
	 	 	4.41	%
	Seller 3: The United States Life Insurance
Company in the City of New York
	 	 	1.76	%
	Seller 4: AIG Life Insurance Company
	 	 	3.91	%
	Seller 5: American International Life
Assurance Company of New York
	 	 	3.46	%
	Seller 6: American Life Insurance Company
	 	 	2.13	%
	Seller 7: AIG Annuity Insurance Company
	 	 	34.79	%
	Seller 8: The Variable Annuity Life Insurance
Company
	 	 	17.38	%
	Seller 9: SunAmerica Life Insurance Company
	 	 	9.85	%

28

 

	 	 	 	 	 
	 	 	Participation
	Seller	 	Percentage
	Seller 10: First SunAmerica Life Insurance
Company
	 	 	3.17	%
	Seller 11: AIG SunAmerica Life Assurance
Company
	 	 	1.49	%

     “Party” has the meaning set forth in the preamble to this Agreement.

     “Person” means any natural person, corporation, business trust, joint venture, association,
company, limited liability company, partnership, Governmental Authority or other entity.

     “Purchase Price” means, with respect to all of the Sellers, the sum of the Cash Purchase
Price, the Fixed Deferred Purchase Price and the Variable Deferred Purchase Price and, with respect
to any Seller, such Seller’s Share of the Purchase Price.

     “Related Instruments” means any participation, pooling, servicing or other agreement, document
or instrument pursuant to which an RMBS Issue has been created, pooled, securitized, issued, sold,
serviced, enhanced, insured or guaranteed and each other agreement, document, indenture and
instrument that governs or affects the terms of, or secures the obligations represented by, such
RMBS Issue or of which the holders of such RMBS Issue are the beneficiaries.

     “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and
the respective directors, officers, employees, agents, attorneys, accountants, and other advisors,
and controlling persons of such Person and such Person’s Affiliates. For the avoidance of doubt,
none of the Buyer, any Federal Reserve Bank nor the United States Treasury shall be deemed to be a
“Related Party” of any AIG Entity for purposes of any Transaction Document.

     “RMBS Issue” means the securities of a single issue of residential mortgage-backed securities
listed on Schedule A attached hereto that is owned by the AIG Agent for the benefit of the Sellers
immediately prior to the Closing, together with all right, title and interest in and to all Related
Instruments.

     “RMBS Pool” means the RMBS Issues collectively.

     “S&P” means Standard & Poor’s.

     “Sanctions” has the meaning set forth in Section 2.08

     “Security Interest” has the meaning set forth in the Security Agreement.

     “Security Agreement” means the Security Agreement dated as of the date hereof among the Buyer,
as borrower, the Federal Reserve Bank of New York, as

29

 

the Senior Lender and the Controlling Party, and The Bank of New York Mellon, as Collateral
Agent.

     “Seller” and “Sellers” have the respective meanings set forth in the introductory paragraph to
this Agreement.

     “Seller Parties” has the meaning set forth in the introductory paragraph of this Agreement.

     “Senior Debt” has the meaning set forth in Section 1.03(b).

     “Senior Lender” has the meaning set forth in the Credit Agreement.

     “Share” means, with respect to any Seller, such Seller’s ownership interest in an RMBS Issue,
RMBS Pool, Cash Purchase Price or Deferred Purchase Price in the amount of its Participation
Percentage thereof.

     “Transaction Documents” has the meaning set forth in the Credit Agreement.

     “Transactions” means the transactions contemplated by the Transaction Documents.

     “UCC” means the Uniform Commercial Code as in effect from time to time in any applicable
state.

     “Variable Deferred Purchase Price” means, with respect to all of the Sellers, 1/6th
of the net cash proceeds from the RMBS Pool plus cash on hand with the Buyer after payment in full
of the Senior Loan plus accrued interest thereon and the Fixed Deferred Purchase Price plus accrued
interest thereon and, with respect to any Seller, such Seller’s Share of the Variable Deferred
Purchase Price.

     “Waterfall” means the order of payments set forth in Section 5(b) of the Security Agreement.

     Section 7.02. Other Definitional Provisions. (a) As used herein and in any certificate or
other document made or delivered pursuant hereto or thereto, (i) accounting terms shall have the
respective meanings given to them under GAAP, (ii) the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”, (iii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and
the words “incurred” and “incurrence” shall have correlative meanings), (iv) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, capital stock, securities, revenues,
accounts, leasehold interests and contract rights, and (v) references to agreements or other
contractual obligations shall, unless otherwise specified, be deemed to refer to

30

 

such agreements or contractual obligations as amended, supplemented, restated or otherwise
modified from time to time, or any successor or replacement agreement which may be entered into
from time to time.

     (b) The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

     (c) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

[signature pages follow]

31

 

     IN WITNESS WHEREOF, each of the Parties has caused this Asset Purchase Agreement to be
executed on its behalf by its officers thereunto duly authorized on the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAIDEN LANE II LLC,

by the Federal Reserve Bank of New
York, as its sole Managing Member	 	FEDERAL RESERVE BANK OF
NEW YORK, as Controlling Party	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Helen Mucciolo	 	By:	 	/s/ Helen Mucciolo	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Helen Mucciolo
	 	 	 	Name:	 	Helen Mucciolo	 	 
	 

	 	Title:
	 	Senior Vice President
	 	 	 	Title:	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICAN INTERNATIONAL GROUP, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ David L. Herzog	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	David L. Herzog	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and	 	 	 	 	 	 	 	 
	 

	 	 	 	Chief Financial Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICAN GENERAL LIFE INSURANCE
COMPANY	 	AMERICAN GENERAL LIFE AND ACCIDENT

INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Mary Jane B. Fortin	 	By:	 	/s/ Mary Jane B. Fortin	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Mary Jane B. Fortin
	 	 	 	Name:
	 	Mary Jane B. Fortin	 	 
	 

	 	Title:
	 	Executive Vice President and
	 	 	 	Title:
	 	Executive Vice President	 	 
	 

	 	 	 	Chief Financial Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICAN GENERAL LIFE
INSURANCE COMPANY	 	AMERICAN GENERAL LIFE AND ACCIDENT

INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Kyle L. Jennings	 	By:	 	/s/ Kyle L. Jennings	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Kyle L. Jennings
	 	 	 	Name:
	 	Kyle L. Jennings	 	 
	 

	 	Title:
	 	Executive Vice
President, 
General
Counsel and Secretary
	 	 	 	Title:
	 	Executive Vice
President, 
General
Counsel and Secretary	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE UNITED STATES LIFE INSURANCE 

COMPANY IN THE CITY OF NEW YORK	 	THE UNITED STATES LIFE INSURANCE

COMPANY IN THE CITY OF NEW YORK	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Mary Jane B. Fortin	 	By:	 	/s/ Kyle L. Jennings	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Mary Jane B. Fortin
	 	 	 	Name:
	 	Kyle L. Jennings	 	 
	 

	 	Title:
	 	Executive Vice President and
	 	 	 	Title:
	 	Executive Vice President,	 	 
	 

	 	 	 	Chief Financial Officer
	 	 	 	 	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AIG LIFE INSURANCE COMPANY	 	AMERICAN INTERNATIONAL LIFE ASSURANCE

COMPANY OF NEW YORK	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Mary Jane B. Fortin	 	By:	 	/s/ Mary Jane B. Fortin	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Mary Jane B. Fortin
	 	 	 	Name:
	 	Mary Jane B. Fortin	 	 
	 

	 	Title:
	 	Executive Vice President and
	 	 	 	Title:
	 	Executive Vice President and	 	 
	 

	 	 	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AIG LIFE INSURANCE COMPANY	 	AMERICAN INTERNATIONAL LIFE

ASSURANCE COMPANY OF NEW YORK	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Kyle L. Jennings	 	By:	 	/s/ Kyle L. Jennings	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Kyle L. Jennings
	 	 	 	Name:
	 	Kyle L. Jennings	 	 
	 

	 	Title:
	 	Executive Vice President,
	 	 	 	Title:
	 	Executive Vice President,	 	 
	 

	 	 	 	General Counsel and Secretary
	 	 	 	 	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICAN LIFE INSURANCE
COMPANY	 	AIG ANNUITY INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Dennis R. Vigneau	 	By:	 	/s/ N. Scott Gillis	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Dennis R. Vigneau
	 	 	 	Name:
	 	N. Scott Gillis	 	 
	 

	 	Title:
	 	Chief Financial Officer
	 	 	 	Title:
	 	Senior Vice President 
Chief Financial Officer	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE VARIABLE ANNUITY LIFE INSURANCE 

COMPANY	 	SUNAMERICA LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 /s/ N. Scott Gillis
	 	By:

	 	 /s/ N. Scott Gillis
	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	N. Scott Gillis
	 	 	 	Name:
	 	N. Scott Gillis	 	 
	 

	 	Title:
	 	Senior Vice President
	 	 	 	Title:
	 	Senior Vice President	 	 
	 

	 	 	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	FIRST SUNAMERICA LIFE INSURANCE
COMPANY	 	AIG SUNAMERICA LIFE ASSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ N. Scott Gillis
	 	By:

	 	 /s/ N. Scott Gillis
	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	N. Scott Gillis	 	 	 	Name:
	 	N. Scott Gillis	 	 
	 

	 	Title:
	 	Senior Vice President
	 	 	 	Title:
	 	Senior Vice President	 	 
	 

	 	 	 	Chief Financial Officer
	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	AIG SECURITIES LENDING CORP.,
as AIG Agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Michael F. Thorp
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Michael F. Thorp	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 	 	 	 	 	 	 

 

 

Schedule A to

Asset Purchase Agreement

DESIGNATED RMBS POOL

[Attached]

 

 

Schedule B

to

Asset Purchase Agreement

SELLERS

	 	 	 
	 	 	Jurisdiction of
	Seller	 	Organization
	Seller 1: American General Life Insurance Company

	 	Texas
	Seller 2: American General Life and Accident
Insurance Company

	 	Tennessee
	Seller 3: The United States Life Insurance
Company in the City of New York

	 	New York
	Seller 4: AIG Life Insurance Company

	 	Delaware
	Seller 5: American International Life
Assurance Company of New York

	 	New York
	Seller 6: American Life Insurance Company

	 	Delaware
	Seller 7: AIG Annuity Insurance Company

	 	Texas
	Seller 8: The Variable Annuity Life Insurance Company

	 	Texas
	Seller 9: SunAmerica Life Insurance Company

	 	Arizona
	Seller 10: First SunAmerica Life Insurance Company

	 	New York
	Seller 11: AIG SunAmerica Life Assurance Company

	 	Arizona

 

 

Schedule C

to

Asset Purchase Agreement

NOTICE INFORMATION

EACH SELLER PARTY

[Name of Seller]

c/o American International Group, Inc.

70 Pine Street, New York, New York 10270

Attention: General Counsel

Fax: (212) 425-2175

Telephone: (212) 770-7000

with a copy to:

Sullivan & Cromwell LLP

125 Broad Street, New York, New York 10004

Attention: Robert W. Reeder III, Michael M. Wiseman

                  and Benjamin R. Weber

Telephone: (212) 558-4000

BUYER

Federal Reserve Bank of New York

33 Liberty Street New York, New York 10045

Attention: William Walsh, Assistant Vice President

Telecopy: (212) 720-5686

Telephone: (212) 720-7743

E-mail: william.walsh@ny.frb.org

 

 

with copies to:

Federal Reserve Bank of New York

33 Liberty Street New York, New York 10045

Attention: Joyce M. Hansen, Deputy General Counsel and Senior Vice President

Telecopy: (212) 720-1756

Telephone: (212) 720-5024

E-mail: joyce.hansen@ny.frb.org

Davis Polk & Wardwell

450 Lexington Avenue, New York, New York 10017

Attention: Marshall S. Huebner and Robert L. Heckart

Telephone: (212) 450-4000

 

 

EXHIBIT A

to

Asset Purchase Agreement

CASH PURCHASE PRICE ADJUSTMENT AMOUNT

CERTIFICATE

Date:                     ,          

     Pursuant to Section 1.02 [(b)][(c)]] of the Asset Purchase Agreement dated as of December      ,
2008 (as amended, modified or supplemented from time to time, the “Asset Purchase Agreement”; the
terms defined therein being used herein as therein defined) among the Sellers named therein, AIG
Securities Lending Corp. (the “AIG Agent”), Maiden Lane II and Federal Reserve Bank of New York,
the AIG Agent hereby certifies as follows:

     1. Set forth on Annex A hereto is a true and correct revised description of the cash flows on
each Designated RMBS Issue identified therewith from and including October 31, 2008 to and
excluding the Closing Date.

     2. The amounts set forth in columns I, J and L of Schedule A attached to the execution copies
of the Asset Purchase Agreement delivered on the Closing Date are revised as set forth in columns
I, J and L of the Annex A hereto.

     3. Each Seller’s portion of the [final] [revised final] Cash Purchase Price Adjustment Amount
is set forth on Annex B hereto.

     4. The amount by which the [final][revised final] Cash Purchase Price Adjustment Amount
differs from the [estimated Cash Purchase Price Adjustment Amount] [prior final Cash Purchase Price
Adjustment Amount set forth in the Cash Purchase Price Adjustment Amount Certificate dated as of
          ,           ] is $          .

[signature page follows]

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed in its name and
behalf by its duly authorized representative as of the date first above-written.

	 	 	 	 	 
	 	AIG SECURITIES LENDING CORP., as AIG Agent

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Annex A to

Cash Purchase Price

Adjustment Amount

Certificate

CASH PURCHASE PRICE ADJUSTMENT AMOUNT

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	L	 	 
	 	 	 	 	I	 	J	 	Accrued Interest on	 	Cash Purchase Price
	A	 	B	 	Post 10/31/2008	 	Post 10/31/2008	 	amounts in columns	 	Adjustment Amount
	CUSIP	 	Security Name	 	Principal	 	Interest	 	I and J	 	(I+J+L)
	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	 	 	 	 	 

 

 

Annex B

to

Cash Purchase Price

Adjustment Amount

Certificate

Cash Purchase Price Adjustment Amount for each Seller

Date:                

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount by which the
	 	 	 	 	 	 	 	 	 	 	[final] [revised
	 	 	 	 	 	 	 	 	 	 	final] Cash
	 	 	 	 	 	 	 	 	 	 	Purchase Price
	 	 	 	 	 	 	 	 	 	 	Adjustment Amount
	 	 	 	 	 	 	 	 	 	 	exceeds (is less
	 	 	 	 	 	 	 	 	 	 	than) the
	 	 	 	 	 	 	Cash Purchase Price	 	[estimated] [prior
	 	 	Seller’s	 	Adjustment Amount	 	final] Cash
	 	 	Participation	 	for each	 	Purchase Price
	Seller	 	Percentage	 	Seller1	 	Adjustment Amount
	Seller 1
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 2
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 3
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 4
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 5
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 6
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 7
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 8
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 

 

			
	1	 	For each Seller: the product of (x) such Seller’s
Participation Percentage as set forth in the second column of this table and
(y) the Cash Purchase Price Adjustment Amount for the RMBS Pool as set forth in
the last column of Annex A.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount by which the
	 	 	 	 	 	 	 	 	 	 	[final] [revised
	 	 	 	 	 	 	 	 	 	 	final] Cash
	 	 	 	 	 	 	 	 	 	 	Purchase Price
	 	 	 	 	 	 	 	 	 	 	Adjustment Amount
	 	 	 	 	 	 	 	 	 	 	exceeds (is less
	 	 	 	 	 	 	 	 	 	 	than) the
	 	 	 	 	 	 	Cash Purchase Price	 	[estimated] [prior
	 	 	Seller’s	 	Adjustment Amount	 	final] Cash
	 	 	Participation	 	for each	 	Purchase Price
	Seller	 	Percentage	 	Seller1	 	Adjustment Amount
	Seller 9
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 10
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]	 
	Seller 11
	 	 	[     ]	%	 	$	[               ]	 	 	$	[               ]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]