Document:

Annex B to the Exchange Agreement

 Exhibit 10.3 

CERTIFICATE OF DETERMINATION 

OF PREFERENCES OF 

SERIES D FIXED RATE CUMULATIVE MANDATORILY CONVERTIBLE 

PREFERRED STOCK 

OF 

PACIFIC CAPITAL BANCORP, 

a California Corporation 

The undersigned, [—] and [—], hereby
certify that: 
 A. They are the duly elected and acting President and Secretary, respectively, of Pacific Capital Bancorp, a
corporation organized and existing under the laws of the State of California (the “Corporation”). 
 B. The
authorized number of shares of Preferred Stock of the Corporation is 1,000,000, and there are a sufficient number of authorized and unissued shares available for the issuance hereunder. 

C. Pursuant to authority given by the Corporation’s Articles of Incorporation, the Board of Directors of the Corporation has duly
adopted the following recitals and resolutions in accordance with the relevant provisions of the California Corporations Code: 

“WHEREAS, the articles of incorporation of the Corporation authorize a class of Preferred Stock comprising 1,000,000 shares
issuable from time to time in one or more series; and 
 WHEREAS, the Board of Directors of the Corporation is authorized
to fix or alter the rights, preferences, privileges, and restrictions granted to or imposed upon any wholly unissued series of Preferred Stock including but not limited to the dividend rights, dividend rates, conversion rights, voting rights, and
the liquidation preferences, and the number of shares constituting any such series and the designation thereof, or any of them; and 

WHEREAS, it is the desire of the Board of Directors of the Corporation, pursuant to its authority as aforesaid, to fix the rights,
preferences, restrictions and other matters relating to Series D Fixed Rate Cumulative Mandatorily Convertible Preferred Stock and the number of shares constituting such series; 

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors, in accordance with the articles of incorporation and bylaws of the
Corporation and applicable law, hereby does create and provide for the issue of a series of Preferred Stock consisting of [—] shares designated as “Series D Fixed Rate Cumulative Mandatorily
Convertible Preferred Stock”, and does hereby fix the voting and other powers, preferences, and relative, participating, optional or other rights, 

 
and the qualifications, limitations and restrictions thereof, and other matters relating to the Designated Preferred Stock (as defined below) are as follows: 

Part 1. Designation and Number of Shares. There is hereby created out of the authorized and unissued shares of preferred stock of
the Corporation a series of preferred stock designated as the “Series D Fixed Rate Cumulative Mandatorily Convertible Preferred Stock” (the “Designated Preferred Stock”). The authorized number of shares of Designated
Preferred Stock shall be [—], none of which has been issued. 
 Part 2.
Standard Provisions. The Standard Provisions contained in Annex A attached hereto are incorporated herein by reference in their entirety and shall be deemed to be a part of this Certificate of Determination to the same extent as if such
provisions had been set forth in full herein. 
 Part 3. Definitions. The following terms are used in this Certificate of
Determination (including the Standard Provisions in Annex A hereto) as defined below: 
 (a) “Common Stock”
means the common stock of the Corporation, no par value per share. 
 (b) “Dividend Payment Date” means
February 15, May 15, August 15 and November 15 of each year. 
 (c) “Exchange Value” means,
for each share of Designated Preferred Stock, an amount equal to $370. 
 (d) “Exchange Agreement” means the
Exchange Agreement, dated as of July 26, 2010, as amended from time to time, between the Corporation and the United States Department of the Treasury, including all annexes and schedules thereto. 

(e) “Initial Conversion Price” means, for each share of Designated Preferred Stock, an amount equal to $0.20.

 (f) “Initial Quarterly Dividend” means $0.22. 

(g) “Junior Stock” means the Common Stock and any other class or series of stock of the Corporation the terms of which
expressly provide that it ranks junior to Designated Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Corporation. 

(h) “Liquidation Amount” means $1,000 per share of Designated Preferred Stock. 

(i) “Mandatory Conversion Date” means the seventh anniversary of the Original Issue Date. 

(j) “Minimum Amount” means $[—]. [Amount equal to 25% of the
aggregate Liquidation Amount of the Designated Preferred Stock issued on the Original Issue Date] 
  

 -2- 

 (k) “Parity Stock” means any class or series of stock of the Corporation
(other than Designated Preferred Stock) the terms of which do not expressly provide that such class or series shall rank senior or junior to Designated Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding
up of the Corporation (in each case without regard to whether dividends accrue cumulatively or non-cumulatively). 
 (l)
“Proposed Charter Amendment” has the meaning set forth in the Exchange Agreement. 
 (m) “Signing
Date” means July 26, 2010. 
 Part 4. Certain Voting Matters. Holders of shares of Designated Preferred
Stock will be entitled to one vote for each such share on any matter on which holders of Designated Preferred Stock are entitled to vote, including any action by written consent. 

RESOLVED FURTHER, that any one of the Chairman of the Board, the President or any Vice President, acting together with any one of
the Secretary, the Chief Financial Officer, the Treasurer, or any Assistant Secretary or Assistant Treasurer of this Corporation are authorized to execute, verify, and file a Certificate of Determination of Preferences of Series D Fixed Rate
Cumulative Mandatorily Convertible Preferred Stock of Pacific Capital Bancorp in accordance with the foregoing resolutions and provisions of California law.” 

D. The Standard Provisions contained in Annex A attached hereto are incorporated by reference as if fully set forth herein and shall be
deemed to be a part of this Certificate of Determination. 
 [Remainder of Page Intentionally Left Blank]

  

 -3- 

 The undersigned declare under penalty of perjury under the laws of the State of California
that the matters set forth in the foregoing Certificate of Determination are true and correct to their own knowledge, and that this declaration was executed on the [—] day of
[—], 2010. 
  

			
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 ANNEX A 

STANDARD PROVISIONS 

Section 1. General Matters. Each share of Designated Preferred Stock shall be identical in all respects to every other share
of Designated Preferred Stock. The Designated Preferred Stock shall rank equally with Parity Stock and shall rank senior to Junior Stock with respect to the payment of dividends and the distribution of assets in the event of any dissolution,
liquidation or winding up of the Corporation. 
 Section 2. Standard Definitions. As used herein with respect to
Designated Preferred Stock: 
 (a) “Affiliate” means, with respect to any Person, any Person directly or
indirectly controlling, controlled by or under common control with, such other Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such Person, whether through the ownership of voting securities by contract or
otherwise. 
 (b) “Applicable Dividend Rate” means (i) during the period from the Original Issue Date to,
but excluding, the first day of the first Dividend Period commencing on or after November 21, 2013, 5% per annum and (ii) from and after the first day of the first Dividend Period commencing on or after November 21, 2013,
9% per annum. 
 (c) “Appraisal Procedure” means a procedure whereby two independent appraisers, one
chosen by the Corporation and one by the Original Designated Preferred Stockholder, shall mutually agree upon the determinations then the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser within 15 days
after the Appraisal Procedure is invoked. If within 30 days after appointment of the two appraisers they are unable to agree upon the amount in question, a third independent appraiser shall be chosen within 10 days thereafter by the mutual consent
of such first two appraisers. The decision of the third appraiser so appointed and chosen shall be given within 30 days after the selection of such third appraiser. If three appraisers shall be appointed and the determination of one appraiser is
disparate from the middle determination by more than twice the amount by which the other determination is disparate from the middle determination, then the determination of such appraiser shall be excluded, the remaining two determinations shall be
averaged and such average shall be binding and conclusive upon the Corporation and the Original Designated Preferred Stockholder; otherwise, the average of all three determinations shall be binding upon the Corporation and the Original Designated
Preferred Stockholder. The costs of conducting any Appraisal Procedure shall be borne by the Corporation. 
 (d)
“Appropriate Federal Banking Agency” means the “appropriate Federal banking agency” with respect to the Corporation as defined in Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(q)), or
any successor provision. 
 (e) “Business Combination” means a merger, consolidation, statutory share exchange
or similar transaction that requires the approval of the Corporation’s stockholders. 
  

 A-1 

 (f) “Business Day” means any day except Saturday, Sunday and any day on
which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close. 

(g) “Bylaws” means the bylaws of the Corporation, as they may be amended from time to time. 

(h) “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such
Person. 
 (i) “Certificate of Determination” means the Certificate of Determination or comparable instrument
relating to the Designated Preferred Stock, of which these Standard Provisions form a part, as it may be amended from time to time. 

(j) “Change of Control” means the occurrence of one of the following: 

(i) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which
is that any “person” becomes the “beneficial owner” (as these terms are defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Capital Stock of the Corporation that
is at the time entitled to vote by the holder thereof in the election of the Board of Directors (or comparable body); or 

(ii) the first day on which a majority of the members of the Board of Directors are not Continuing Directors. 

(k) “Change of Control Effective Date” has the meaning set forth in Section 10(a). 

(l) “Charter” means the Corporation’s certificate or articles of incorporation, articles of association, or similar
organizational document. 
 (m) “Common Stock Issuance” has the meaning set forth in Section 11(d).

 (n) “Common Stock Offering” means the sale and issuance for cash by the Corporation to persons other than
the Corporation or any of its subsidiaries after the Original Issue Date of shares of Common Stock (other than any such sales and issuances made pursuant to agreements or arrangements entered into, or pursuant to financing plans which were publicly
announced, on or prior to the Signing Date). 
 (o) “Continuing Directors” means, as of any date of
determination, any member of the Board of Directors who (i) was a member of the Board of Directors on the Original Issue Date or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority of the
Continuing Directors who were members of the Board of Directors at the time of such new director’s nomination or election. 
  

 A-2 

 (p) “Conversion Date” means any date on which shares of Designated
Preferred Stock are converted as set forth in this Certificate of Determination. 
 (q) “Conversion Price”
means the Initial Conversion Price, subject to adjustment as set forth in Section 11 of this Certificate of Determination. 

(r) “Conversion Rate” means for each share of Designated Preferred Stock, the Exchange Value divided by the Conversion
Price, subject to adjustment as set forth in Section 11 of this Certificate of Determination. 
 (s) “Convertible
Securities” means any rights or warrants or other securities exercisable or convertible into or exchangeable for shares of Common Stock. 

(t) “Depositary” means The Depository Trust Company or its nominee or any successor depositary appointed by the
Corporation. 
 (u) “Dividend Period” has the meaning set forth in Section 3(a). 

(v) “Dividend Record Date” has the meaning set forth in Section 3(a). 

(w) “Early Conversion” has the meaning set forth in Section 7(a). 

(x) “Early Conversion Date” has the meaning set forth in Section 7(c). 

(y) “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations promulgated thereunder. 
 (z) “Ex-Dividend Date” means, in respect of a dividend or distribution
to holders of Common Stock, the first date on which a sale of the Common Stock does not automatically transfer the right to receive the relevant dividend or distribution from the seller of the Common Stock to its buyer. 

(aa) “Fair Market Value” means, with respect to any security or other property, the fair market value of such security
or other property as determined by the Board of Directors, acting in good faith. For so long as the Original Designated Preferred Stockholder holds the Designated Preferred Stock or any portion thereof, it may object in writing to the Board of
Directors’ calculation of fair market value within 10 days of receipt of written notice thereof. If the Original Designated Preferred Stockholder and the Corporation are unable to agree on fair market value during the 10-day period following
the delivery of the Original Designated Preferred Stockholder’s objection, the Appraisal Procedure may be invoked by either party to determine Fair Market Value by delivering written notification thereof not later than the 30th day after
delivery of the Original Designated Preferred Stockholder’s objection. 
 (bb) “Liquidation Preference”
has the meaning set forth in Section 4(a). 
 (cc) “Market Price” means, with respect to the Common Stock,
on any given date, the average VWAP for the 5 consecutive Trading Day-period ending on the Trading Day immediately preceding such given date. “Market Price” shall be determined without reference to

  

 A-3 

 
after hours or extended hours trading. If the Common Stock is not listed and traded in a manner that the quotations referred to above are available for the period required hereunder, the Market
Price per share of Common Stock shall be deemed to be (i) in the event that any portion of the Designated Preferred Stock is held by the Original Designated Preferred Stockholder, the fair market value per share of the Common Stock as
determined in good faith by the Original Designated Preferred Stockholder or (ii) in all other circumstances, the fair market value per share of the Common Stock as determined in good faith by the Board of Directors in reliance on an opinion of
a nationally recognized independent investment banking corporation retained by the Corporation for this purpose and certified in a resolution to the holder(s) of Designated Preferred Stock. For the purposes of determining the Market Price of the
Common Stock on the “Trading Day” preceding, on or following the occurrence of an event, (i) that Trading Day shall be deemed to commence immediately after the regular scheduled closing time of trading on the NASDAQ or NYSE (as
applicable) or, if trading is closed at an earlier time, such earlier time and (ii) that Trading Day shall end at the next regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for the avoidance of
doubt, and as an example, if the Market Price is to be determined as of the last Trading Day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on that
day, the Market Price would be determined by reference to such 4:00 p.m. closing time). 
 (dd) “NASDAQ”
means NASDAQ Stock Market LLC. 
 (ee) “NYSE” means the New York Stock Exchange. 

(ff) “Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock out of surplus or net
profits legally available therefor (determined in accordance with generally accepted accounting principles in effect from time to time), provided that Ordinary Cash Dividends shall not include any cash dividends paid subsequent to the Original Issue
Date to the extent the aggregate per share dividends paid on the outstanding Common Stock in any quarter exceed the Initial Quarterly Dividend, as adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar
transaction. 
 (gg) “Original Designated Preferred Stockholder” means the United States Department of the
Treasury and any successor or assign that is an Affiliate of the United States Department of the Treasury. Any actions specified to be taken by the Original Designated Preferred Stockholder hereunder may only be taken by such Person and not by any
other holder of Designated Preferred Stock. 
 (hh) “Original Issue Date” means the date on which shares of
Designated Preferred Stock are first issued. 
 (ii) “Permitted Transactions” has the meaning set forth in
Section 11(d). 
 (jj) “Per Share Fair Market Value” has the meaning set forth in Section 11(e).

 (kk) “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
  

 A-4 

 (ll) “Preferred Director” has the meaning set forth in Section 13(b).

 (mm) “Preferred Stock” means any and all series of preferred stock of the Corporation, including the
Designated Preferred Stock. 
 (nn) “Pro Rata Repurchase” means any purchase of shares of Common Stock by the
Corporation or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially
all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Corporation, other securities of the Corporation, evidences of indebtedness of the Corporation or any other Person or any other
property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while the Designated Preferred Stock is outstanding. The “Effective
Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares of Common Stock for purchase or exchange by the Corporation under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to
any Pro Rata Repurchase that is not a tender or exchange offer. 
 (oo) “Regulatory Approvals” with respect to
the holder of the Designated Preferred Stock, means, to the extent applicable and required to permit the conversion of the Designated Preferred Stock for Shares and to own such Shares without such holder being in violation of any applicable law,
rule or regulation, including, without limitation, the Bank Holding Company Act of 1956, as amended, and the Change in Bank Control Act of 1978, as amended, and the receipt of any necessary approvals and authorizations of, filings and registrations
with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any other applicable laws and the rules and regulations thereunder. 

(pp) “Share Dilution Amount” has the meaning set forth in Section 3(b). 

(qq) “Shares” means the shares of the Corporation’s Common Stock issuable upon conversion of the Designated
Preferred Stock. 
 (rr) “Special Distribution” means a distribution on the Common Stock of: 

(i) rights, options or warrants (other than pursuant to a shareholder rights plan) entitling holders of Common Stock to
purchase, for a period of 45 calendar days or less, shares of Common Stock at a price less than the average Market Price of the Common Stock for the 10 consecutive Trading Days immediately preceding the declaration date for such distribution; or

 (ii) cash or other assets, debt securities or rights to purchase the Corporation’s securities (other than
pursuant to a shareholder rights plan or a dividend or distribution on the Common Stock in shares of Common Stock), which distribution has a per share value as determined by the Board of Directors exceeding 10% of the Market Price of the Common
Stock on the Trading Day preceding the declaration date for such distribution. 
 (ss) “Specified Corporate
Transaction” has the meaning set forth in Section 9(a). 
  

 A-5 

 (tt) “Standard Provisions” mean these Standard Provisions that form a part
of the Certificate of Determination relating to the Designated Preferred Stock. 
 (uu) “Trading Day” means
(A) if the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the-counter market, a Business Day or (B) if the shares of Common Stock are traded on any national or regional
securities exchange or association or over-the-counter market, a Business Day on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on
any national or regional securities exchange or association or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the trading of the shares of Common Stock. 
 (vv)
“Voting Parity Stock” means, with regard to any matter as to which the holders of Designated Preferred Stock are entitled to vote as specified in Sections 13(a) and 13(b) of these Standard Provisions that form a part of the
Certificate of Determination, any and all series of Parity Stock upon which like voting rights have been conferred and are exercisable with respect to such matter. 

(ww) “VWAP” means the volume-weighted average trading price of a share of Common Stock as reported by Bloomberg LP.

 Section 3. Dividends. 

(a) Rate. Holders of Designated Preferred Stock shall be entitled to receive, on each share of Designated Preferred Stock if, as
and when declared by the Board of Directors or any duly authorized committee of the Board of Directors, but only out of funds legally available therefor, cumulative cash dividends (subject to Section 6(e) below) with respect to each Dividend
Period (as defined below) at a rate per annum equal to the Applicable Dividend Rate on (i) the Liquidation Amount per share of Designated Preferred Stock and (ii) the amount of accrued and unpaid dividends for any prior Dividend Period on
such share of Designated Preferred Stock, if any. Such dividends shall begin to accrue and be cumulative from the Original Issue Date, shall compound on each subsequent Dividend Payment Date (i.e., no dividends shall accrue on other dividends
unless and until the first Dividend Payment Date for such other dividends has passed without such other dividends having been paid on such date) and shall be payable quarterly in arrears on each Dividend Payment Date, commencing with the first such
Dividend Payment Date to occur at least 20 calendar days after the Original Issue Date. In the event that any Dividend Payment Date would otherwise fall on a day that is not a Business Day, the dividend payment due on that date shall be postponed to
the next day that is a Business Day and no additional dividends shall accrue as a result of that postponement. The period from and including any Dividend Payment Date to, but excluding, the next Dividend Payment Date is a “Dividend
Period”, provided that the initial Dividend Period shall be the period from and including the Original Issue Date to, but excluding, the next Dividend Payment Date. 

Dividends that are payable on Designated Preferred Stock in respect of any Dividend Period shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. 
  

 A-6 

 
The amount of dividends payable on Designated Preferred Stock on any date prior to the end of a Dividend Period, and for the initial Dividend Period, shall be computed on the basis of a 360-day
year consisting of twelve 30-day months, and actual days elapsed over a 30-day month. 
 Dividends that are payable on
Designated Preferred Stock on any Dividend Payment Date shall be payable to holders of record of Designated Preferred Stock as they appear on the stock register of the Corporation on the applicable record date, which shall be the 15th calendar day
immediately preceding such Dividend Payment Date or such other record date fixed by the Board of Directors or any duly authorized committee of the Board of Directors that is not more than 60 nor less than 10 days prior to such Dividend Payment Date
(each, a “Dividend Record Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether or not such day is a Business Day. 

Holders of Designated Preferred Stock shall not be entitled to any dividends, whether payable in cash, securities or other property,
other than dividends (if any) declared and payable on Designated Preferred Stock as specified in this Section 3 (subject to the other provisions of the Certificate of Determination). 

(b) Priority of Dividends. So long as any share of Designated Preferred Stock remains outstanding, no dividend or distribution
shall be declared or paid on the Common Stock or any other shares of Junior Stock (other than dividends payable solely in shares of Common Stock) or Parity Stock, subject to the immediately following paragraph in the case of Parity Stock, and no
Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly, purchased, redeemed or otherwise acquired for consideration by the Corporation or any of its subsidiaries unless all accrued and unpaid dividends for all past Dividend
Periods, including the latest completed Dividend Period (including, if applicable as provided in Section 3(a) above, dividends on such amount), on all outstanding shares of Designated Preferred Stock have been or are contemporaneously declared
and paid in full (or have been declared and a sum sufficient for the payment thereof has been set aside for the benefit of the holders of shares of Designated Preferred Stock on the applicable record date). The foregoing limitation shall not apply
to (i) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock in connection with the administration of any employee benefit plan in the ordinary course of business (including purchases to offset the Share
Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan) and consistent with past practice, provided that any purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount;
(ii) purchases or other acquisitions by a broker-dealer subsidiary of the Corporation solely for the purpose of market-making, stabilization or customer facilitation transactions in Junior Stock or Parity Stock in the ordinary course of its
business; (iii) purchases by a broker-dealer subsidiary of the Corporation of Capital Stock of the Corporation for resale pursuant to an offering by the Corporation of such Capital Stock underwritten by such broker-dealer subsidiary;
(iv) any dividends or distributions of rights or Junior Stock in connection with a stockholders’ rights plan or any redemption or repurchase of rights pursuant to any stockholders’ rights plan; (v) the acquisition by the
Corporation or any of its subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial ownership of any other Persons (other than the Corporation or any of its subsidiaries), including as trustees or custodians; and
(vi) the exchange or conversion of Junior Stock for or into other Junior Stock or of Parity Stock for or into other Parity Stock (with the same or lesser aggregate liquidation 

 

 A-7 

 
amount) or Junior Stock, in each case, solely to the extent required pursuant to binding obligations entered into prior to the Signing Date or any subsequent agreement for the accelerated
exercise, settlement or exchange thereof for Common Stock. “Share Dilution Amount” means the increase in the number of diluted shares outstanding (determined in accordance with generally accepted accounting principles in the United
States, and as measured from the date of the Corporation’s consolidated financial statements most recently filed with the Securities and Exchange Commission prior to the Original Issue Date) resulting from the grant, vesting or exercise of
equity-based compensation to employees and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction. 

When dividends are not paid (or declared and a sum sufficient for payment thereof set aside for the benefit of the holders thereof on the
applicable record date) on any Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within a Dividend Period related to such Dividend
Payment Date) in full upon Designated Preferred Stock and any shares of Parity Stock, all dividends declared on Designated Preferred Stock and all such Parity Stock and payable on such Dividend Payment Date (or, in the case of Parity Stock having
dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment Date) shall be declared pro rata so that the respective amounts of such dividends
declared shall bear the same ratio to each other as all accrued and unpaid dividends per share on the shares of Designated Preferred Stock (including, if applicable as provided in Section 3(a) above, dividends on such amount) and all Parity
Stock payable on such Dividend Payment Date (or, in the case of Parity Stock having dividend payment dates different from the Dividend Payment Dates, on a dividend payment date falling within the Dividend Period related to such Dividend Payment
Date) (subject to their having been declared by the Board of Directors or a duly authorized committee of the Board of Directors out of legally available funds and including, in the case of Parity Stock that bears cumulative dividends, all accrued
but unpaid dividends) bear to each other. If the Board of Directors or a duly authorized committee of the Board of Directors determines not to pay any dividend or a full dividend on a Dividend Payment Date, the Corporation shall provide written
notice to the holders of Designated Preferred Stock prior to such Dividend Payment Date. 
 Subject to the foregoing, and not
otherwise, such dividends (payable in cash, securities or other property) as may be determined by the Board of Directors or any duly authorized committee of the Board of Directors may be declared and paid on any securities, including Common Stock
and other Junior Stock, from time to time out of any funds legally available for such payment, and holders of Designated Preferred Stock shall not be entitled to participate in any such dividends. 

Section 4. Liquidation Rights. 

(a) Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, whether voluntary or involuntary, holders of Designated Preferred Stock shall be entitled to receive for each share of Designated Preferred Stock, out of the assets of the Corporation or proceeds thereof (whether capital or surplus)
available for distribution to stockholders of the Corporation, subject to the rights of any creditors of the Corporation, before any distribution of such assets or proceeds is made to or set aside for

  

 A-8 

 
the holders of Common Stock and any other stock of the Corporation ranking junior to Designated Preferred Stock as to such distribution, payment in full in an amount equal to the sum of
(i) the Liquidation Amount per share and (ii) the amount of any accrued and unpaid dividends (including, if applicable as provided in Section 3(a) above, dividends on such amount), whether or not declared, to the date of payment (such
amounts collectively, the “Liquidation Preference”). 
 (b) Partial Payment. If in any distribution
described in Section 4(a) above the assets of the Corporation or proceeds thereof are not sufficient to pay in full the amounts payable with respect to all outstanding shares of Designated Preferred Stock and the corresponding amounts payable
with respect of any other stock of the Corporation ranking equally with Designated Preferred Stock as to such distribution, holders of Designated Preferred Stock and the holders of such other stock shall share ratably in any such distribution in
proportion to the full respective distributions to which they are entitled. 
 (c) Residual Distributions. If the
Liquidation Preference has been paid in full to all holders of Designated Preferred Stock and the corresponding amounts payable with respect of any other stock of the Corporation ranking equally with Designated Preferred Stock as to such
distribution has been paid in full, the holders of other stock of the Corporation shall be entitled to receive all remaining assets of the Corporation (or proceeds thereof) according to their respective rights and preferences. 

(d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section 4, the merger or consolidation of
the Corporation with any other corporation or other entity, including a merger or consolidation in which the holders of Designated Preferred Stock receive cash, securities or other property for their shares, or the sale, lease or exchange (for cash,
securities or other property) of all or substantially all of the assets of the Corporation, shall not constitute a liquidation, dissolution or winding up of the Corporation. 

Section 5. Redemption. 

(a) Optional Redemption. The Corporation, at its option, subject to the approval of the Appropriate Federal Banking Agency, may
redeem, in whole or in part, at any time and from time to time, out of funds legally available therefor, the shares of Designated Preferred Stock at the time outstanding, upon notice given as provided in Section 5(c) below, at a redemption
price equal to the sum of (i) (A) the Liquidation Amount per share or (B) if redeemed on or after the first Dividend Payment Date falling on or after the second anniversary of the Original Issue Date, the greater of (1) the
Liquidation Amount per share and (2) the product of the Conversion Rate and the average of the Market Prices per share of Common Stock over the 20 consecutive Trading Day period beginning on the Trading Day after the notice of redemption is
given as provided in Section 5(c) below and (ii) except as otherwise provided below, any accrued and unpaid dividends to, but excluding, the date fixed for redemption (including, if applicable, as provided in Section 3(a) above,
dividends on such amount), regardless of whether any dividends are actually declared; provided that the aggregate redemption price of the Designated Preferred Stock redeemed pursuant to this paragraph may not exceed an amount equal to the sum of
(x) any aggregate gross proceeds of not less than the Minimum Amount received by the Corporation from one or more Common Stock Offerings and (y) any net increase to the Corporation’s retained earnings after the Original Issue Date
above the Corporation’s retained earnings 
  

 A-9 

 
reflected in its most recent publicly available balance sheet on or prior to the Original Issue Date; and provided further that the minimum number of shares of Designated Preferred Stock redeemed
by the Corporation upon any such redemption shall be at least equal to the lesser of (x) all shares of Designated Preferred Stock then outstanding and (y) 25% of the number of shares of Designated Preferred Stock issued on the Original
Issue Date. 
 The redemption price for any shares of Designated Preferred Stock shall be payable in cash on the redemption date
to the holder of such shares against surrender of the certificate(s) evidencing such shares to the Corporation or its agent. Any declared but unpaid dividends payable on a redemption date that occurs subsequent to the Dividend Record Date for a
Dividend Period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be paid to the holder of record of the redeemed shares on such Dividend Record Date relating to the Dividend Payment
Date as provided in Section 3 above. 
 (b) No Sinking Fund. The Designated Preferred Stock shall not be subject to
any mandatory redemption, sinking fund or other similar provisions. Holders of Designated Preferred Stock shall have no right to require redemption or repurchase of any shares of Designated Preferred Stock. 

(c) Notice of Redemption. Notice of every redemption of shares of Designated Preferred Stock shall be given by first class mail,
postage prepaid, addressed to the holders of record of the shares of Designated Preferred Stock to be redeemed at their respective last addresses appearing on the books of the Corporation. Such mailing shall be at least 30 days (or in the event of a
redemption on or after the first Dividend Payment Date falling on or after the second anniversary of the Original Issue Date, at least 25 Trading Days) and not more than 60 days before the date fixed for redemption. Any notice mailed as provided in
this Subsection shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of
Designated Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Designated Preferred Stock. Notwithstanding the foregoing, if shares of Designated Preferred Stock are
issued in book-entry form through the Depositary or any other similar facility, notice of redemption may be given to the holders of Designated Preferred Stock at such time and in any manner permitted by such facility. Each notice of redemption given
to a holder shall state: (1) the redemption date; (2) the number of shares of Designated Preferred Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to be redeemed from
such holder; (3) the redemption price (or the manner of calculation thereof); and (4) the place or places where certificates for such shares are to be surrendered for payment of the redemption price. 

(d) Partial Redemption. In case of any redemption of part of the shares of Designated Preferred Stock at the time outstanding, the
shares to be redeemed shall be selected either pro rata or in such other manner as the Board of Directors or a duly authorized committee thereof may determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors or a
duly authorized committee thereof shall have full power and authority to prescribe the terms and conditions upon which shares of Designated Preferred Stock shall be redeemed from time to time. If fewer than all the shares represented by any
certificate are redeemed or converted, a new certificate shall be issued representing the unredeemed shares without charge to the holder thereof. 
  

 A-10 

 (e) Effectiveness of Redemption. If notice of redemption has been duly given and if
on or before the redemption date specified in such notice all funds necessary for the redemption have been deposited by the Corporation, in trust for the pro rata benefit of the holders of the shares of Designated Preferred Stock called for
redemption, with a bank or trust company doing business in the Borough of Manhattan, The City of New York, and having a capital and surplus of at least $500 million and selected by the Board of Directors, so as to be and continue to be available
solely therefor, then, notwithstanding that any certificate for any share of Designated Preferred Stock so called for redemption has not been surrendered for cancellation, on and after the redemption date dividends shall cease to accrue on all
Designated Preferred Stock so called for redemption, all shares of Designated Preferred Stock so called for redemption shall no longer be deemed outstanding and all rights with respect to such shares of Designated Preferred Stock shall forthwith on
such redemption date cease and terminate, except only the right of the holders thereof to receive the amount payable on such redemption from such bank or trust company, without interest. Any funds unclaimed at the end of three years from the
redemption date shall, to the extent permitted by law, be released to the Corporation, after which time the holders of the shares of Designated Preferred Stock so called for redemption shall look only to the Corporation for payment of the redemption
price of such shares of Designated Preferred Stock. 
 (f) Status of Redeemed Shares. Shares of Designated Preferred
Stock that are redeemed, repurchased or otherwise acquired by the Corporation shall revert to authorized but unissued shares of Preferred Stock (provided that any such cancelled shares of Designated Preferred Stock may be reissued only as shares of
any series of Preferred Stock other than Designated Preferred Stock). 
 Section 6. General Conversion Provisions.

 (a) Conversion by Holders; Approvals. Holders of Designated Preferred Stock shall have the right, at their option, to
convert, at any time and from time to time, all or any portion of the Designated Preferred Stock (but in no event less than one share of the Designated Preferred Stock), into a number of Shares equal to the product of the then-applicable Conversion
Rate and the number of shares of Designated Preferred Stock surrendered for conversion in accordance with the terms and conditions of this Certificate of Determination (which, in the event of a Specified Corporate Transaction or a Change of Control,
shall include the provisions of Sections 9 and 10, respectively); provided, however, notwithstanding anything in this Certificate of Determination to the contrary, holders of Designated Preferred Stock shall not be entitled to
convert shares of Designated Preferred Stock until the converting holder has first received any applicable Regulatory Approvals; provided, further, notwithstanding anything in this Certificate of Determination to the contrary, the
Designated Preferred Stock may not be converted until the Corporation shall first have obtained, to the extent required by applicable law or regulation or necessary in order to comply with any requirement of any securities exchange on which the
Shares are listed or traded, all stockholder approvals required to effect the conversion and completed all other actions necessary to effect the conversion. 
  

 A-11 

 (b) Effectiveness of Conversion. If any notice of conversion has been duly given in
accordance with the procedures set forth in Sections 7, 8, 9 and 10 below, then, effective immediately (notwithstanding that any certificate for any Designated Preferred Stock to be converted has not been surrendered for conversion) prior to
5:00 p.m., New York City time, on the applicable Conversion Date, holders of Designated Preferred Stock whose shares of Designated Preferred Stock are to be converted shall cease to have any rights to such shares of Designated Preferred Stock
(including with respect to dividends) subject to the right of any such holders to receive any accrued and unpaid dividends to the Conversion Date on such shares of Designated Preferred Stock and any other payments to which they are otherwise
entitled pursuant to the terms hereof. 
 (c) No Rights as Holders of Common Stock Prior to Conversion. The person or
persons entitled to receive the Shares issuable upon conversion shall be treated for all purposes as the record holder(s) of such Shares as of 5:00 p.m., New York City time, on the applicable Conversion Date notwithstanding that the stock
transfer books of the Corporation may then be closed or certificates representing such Shares may not be actually delivered on such date, provided that in the event of a conversion pursuant to Section 9 or 10 below, the holder(s) of
Designated Preferred Stock has complied with Section 9(c) or 10(c), respectively. No allowance or adjustment, except as set forth in Section 11, shall be made in respect of dividends payable to holders of Common Stock of record as of any
date prior to such Conversion Date. Prior to the applicable Conversion Date, Shares issuable upon conversion of Designated Preferred Stock shall not be deemed outstanding for any purpose, and holders of Designated Preferred Stock shall have no
rights with respect to the Common Stock (including voting rights, rights to respond to tender offers for the Common Stock and rights to receive any dividends or other distributions on the Common Stock) by virtue of holding shares of Designated
Preferred Stock. 
 (d) Delivery of Shares and Cash. The Corporation shall deliver to the holders of Designated Preferred
Stock that have been converted the Shares and any amount of cash to which such holders are entitled on or prior to the third Trading Day immediately following the applicable Conversion Date. If fewer than all the shares of Designated Preferred Stock
represented by any certificate are converted, a new certificate shall be issued representing the unconverted shares of Designated Preferred Stock without charge to the holder thereof. 

(e) Accrued and Unpaid Dividends. Upon a conversion of any shares of Designated Preferred Stock as set forth in Sections 6,
7, 8, 9 and 10, the holders of such shares shall receive all accrued and unpaid dividends on such shares in cash out of funds legally available therefor or, at the option of the Corporation, in substitute in whole or in part for such cash, in fully
paid and nonassessable shares of Common Stock legally available for such purpose to, but excluding, the applicable Conversion Date. Accrued and unpaid dividends paid in shares of Common Stock shall be paid by delivering to each holder of Designated
Preferred Stock entitled thereto a number of shares of Common Stock determined by dividing the total amount of the cash payment of accrued and unpaid dividends that would otherwise be payable to such holder (rounded to the nearest whole cent) by the
Market Price on the second Trading Day preceding the applicable Conversion Date. The issuance of any such shares of Common Stock in such amount shall constitute full payment of all accrued and unpaid dividends that would otherwise have been payable.
The Board of Directors of the Corporation shall determine the form of payment of accrued and unpaid dividends with respect to any conversion and such election shall be set forth in the applicable notice provided to holders of the Designated
Preferred Stock by the Corporation as set forth in Sections 7, 8, 9 and 10 below. 
  

 A-12 

 (f) Dividends Accrued after Record Date. Any accrued and unpaid dividends payable on
shares of Designated Preferred Stock to be converted on a Conversion Date that occurs subsequent to the Dividend Record Date for a Dividend Period shall not be paid to the holder of record of such shares on such Dividend Record Date, but rather
shall be paid to the holder of such shares on such Conversion Date. 
 (g) Notices by the Corporation. Every notice
required to be given by the Corporation pursuant to Section 7, 8, 9 or 10 below shall be given by first class mail, postage prepaid, addressed to the holders of record of the Designated Preferred Stock at their respective last addresses
appearing on the books of the Corporation and shall contain the information required by Section 7, 8, 9 or 10 hereof, as applicable. Any notice by the Corporation mailed within the time period specified in Section 7, 8, 9 or 10 below shall
be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Designated Preferred
Stock designated for conversion shall not affect the validity of the proceedings for the conversion of any other shares of Designated Preferred Stock. Notwithstanding the foregoing, if shares of Designated Preferred Stock are issued in book-entry
form through the Depositary or any other similar facility, any notice by the Corporation may be given to the holders of Designated Preferred Stock at such time and in any manner permitted by such facility. 

(h) Conversion Procedures by Holder. To effect a conversion, a holder of the Designated Preferred Stock shall: (i) with
respect to a conversion pursuant to Section 6, 9 or 10, complete and manually sign the conversion notice, if any, provided by the Corporation or, if applicable, the conversion agent appointed by the Corporation, or a facsimile of the conversion
notice; (ii) with respect to a conversion pursuant to Section 6, 9 or 10, deliver the completed conversion notice, (iii) with respect to any conversion, deliver the certificated shares of Designated Preferred Stock to be converted to
the Corporation or, if applicable, the conversion agent appointed by the Corporation; and (iv) with respect to any conversion, if required, furnish appropriate endorsements and transfer documents. If a holder’s interest is a beneficial
interest in a global certificate representing the Designated Preferred Stock, a holder must comply with the Depositary’s procedures for converting a beneficial interest in a global security. 

(i) Taxes and Duties. A holder of the Designated Preferred Stock shall not be required to pay any transfer or similar taxes or
duties relating to the issuance or delivery of Shares if such holder of the Designated Preferred Stock exercises its conversion rights, but such holder of the Designated Preferred Stock shall be required to pay any transfer or similar tax or duty
that may be payable relating to any transfer involved in the issuance or delivery of Shares in a name other than the name of such holder. A certificate representing Shares shall be issued and delivered only after all applicable taxes and duties, if
any, payable by the holder of the Designated Preferred Stock have been paid in full. 
 (j) No Fractional Shares. No
fractional shares of Common Stock shall be issued as a result of any conversion of shares of Designated Preferred Stock or the payment of accrued and unpaid dividends on the Designated Preferred Stock in the form of Common Stock. In lieu of

  

 A-13 

 
any fractional share of Common Stock otherwise issuable in respect of any conversion or payment of accrued and unpaid dividends, the Corporation shall pay an amount in cash (computed to the
nearest cent) equal to such fraction of a share of Common Stock multiplied by the Market Price on the second Trading Day immediately preceding the applicable Conversion Date or, in the event of any dividends arising under the Designated Preferred
Stock paid in the form of Common Stock, the Dividend Payment Date (unless there are no legally available assets with which to make such cash payment, in which event such cash payment shall be made as soon as possible thereafter). If more than one
share of the Designated Preferred Stock is surrendered for conversion at one time by or for the same holder, the number of full shares of Common Stock issuable upon conversion thereof, including in respect of accrued and unpaid dividends, shall be
computed on the basis of the aggregate number of shares of the Designated Preferred Stock so surrendered. 
 (k) Status of
Shares Subject to Conversion. Shares of Designated Preferred Stock that are converted in accordance with Sections 6, 7, 8, 9 or 10 shall revert to authorized but unissued shares of Preferred Stock (provided that any such cancelled
shares of Designated Preferred Stock may be reissued only as shares of any series of Preferred Stock other than Designated Preferred Stock). 

Section 7. Early Conversion. 

(a) Conversion at the Option of the Corporation. Subject to Section 7(b), the Corporation shall have the right, at its option
to convert, at any time and from time to time, all or any portion of the Designated Preferred Stock (but in no event less than one share of the Designated Preferred Stock), at any time prior to the date that is nine (9) months following the
date of the Exchange Agreement (“Early Conversion”), into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock selected for conversion; provided,
however, notwithstanding anything in this Certificate of Determination to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received
any applicable Regulatory Approvals. In addition to the number of Shares issuable upon Early Conversion, the holders of shares of Designated Preferred Stock subject to Early Conversion shall have the right to receive (in cash or shares of Common
Stock at the option of the Corporation in accordance with Section 6(e)) any accrued and unpaid dividends on such shares for the period commencing on the date that is 31 days following the Original Issue Date to, but excluding, the Early
Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared; provided, however, that in the event that the Early Conversion Date with
respect to all or any portion of the Designated Preferred Stock occurs on or after 45 days from the Original Issue Date, then the holders of shares of Designated Preferred Stock subject to Early Conversion shall have the right to receive (in cash or
shares of Common Stock at the option of the Corporation in accordance with Section 6(e)) any accrued and unpaid dividends on such shares from the period commencing on the Original Issue Date to, but excluding, the Early Conversion Date
(including, if applicable, as provided in Section 3(a) above, dividends on such amount). 
 (b) Conditions to Early
Conversion. The Corporation’s right of conversion set forth in Section 7(a) is subject to the fulfillment (or waiver by the Original Designated Preferred 

 

 A-14 

 
Stockholder with respect to items (iii) and (iv) below) at or prior to the Early Conversion Date of each of the following conditions: 

(i) the Corporation shall have requested and received from the Appropriate Federal Banking Agency all requisite approvals
of the Early Conversion; 
 (ii) the Corporation shall be a “listed corporation” as defined in
subdivision (d) of Section 301.5 of the California Corporations Code, both at the time of the Original Issue Date and on the Early Conversion Date; 

(iii) the Proposed Charter Amendment shall have been approved by the Corporation’s stockholders, the Company shall
have filed the Proposed Charter Amendment with the California Secretary of State, Business Programs Division, and such Proposed Charter Amendment shall be in full force and effect; and 

(iv) the Corporation shall have made all applicable adjustments pursuant to Section 11 that are required to be made
on or before the Early Conversion Date. 
 (c) Early Conversion Procedures. In the event of an Early Conversion, the
Corporation shall provide notice of such conversion to each holder of Designated Preferred Stock to be converted (such notice, a “Notice of Early Conversion”). Such Notice of Early Conversion shall be mailed at least 1 day and not
more than 60 days before the date fixed for conversion (the “Early Conversion Date”). The requirement to deliver a Notice of Early Conversion and the timing requirements for such delivery may be waived by each holder of Designated
Preferred Stock in its sole discretion. Each Notice of Early Conversion given to a holder shall state: 
 (i) the
Early Conversion Date; 
 (ii) the number of shares of Designated Preferred Stock to be converted and, if less
than all the shares held by such holder are to be converted, the number of such shares to be converted from such holder; 

(iii) the Conversion Rate then in effect and whether the Corporation will pay cash or issue shares of Common Stock
(calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 
 (iv)
the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for issuance of certificates representing Shares. 

(d) Partial Conversion. If the Corporation elects to cause less than all the shares of the Designated Preferred Stock to be
converted under this Section 7, the shares of Designated Preferred Stock to be converted shall be selected either pro rata or in such other manner as the Board of Directors or a duly authorized committee thereof may determine to be fair
and equitable. Subject to the provisions hereof, the Board of Directors or a duly authorized committee thereof shall have full power and authority to prescribe the terms and conditions upon which shares of Designated Preferred Stock shall be
converted from time to time pursuant to an Early Conversion. 
  

 A-15 

 Section 8. Mandatory Conversion. 

(a) Mandatory Conversion. Each share of Designated Preferred Stock shall mandatorily convert (unless otherwise previously
converted, redeemed or otherwise reacquired by the Corporation) on the Mandatory Conversion Date into a number of Shares determined by dividing the Liquidation Amount by the Market Price on the second Trading Day preceding the Mandatory Conversion
Date; provided, however, notwithstanding anything in this Certificate of Determination to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the
converting holder has first received any applicable Regulatory Approvals. In addition to the number of Shares issuable upon mandatory conversion, the holders of the shares of Designated Preferred Stock subject to mandatory conversion shall have the
right to receive any accrued and unpaid dividends on such shares to, but excluding, the Mandatory Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are
actually declared. 
 (b) Mandatory Conversion Procedures. In the event of a mandatory conversion, the Corporation shall
provide notice thereof to each holder of Designated Preferred Stock to be converted (such notice, a “Notice of Mandatory Conversion”). Such Notice of Mandatory Conversion shall be mailed at least 30 days and not more than 60 days
before the Mandatory Conversion Date. Each Notice of Mandatory Conversion given to a holder shall state: 
 (i)
the Mandatory Conversion Date; 
 (ii) that all outstanding shares of Designated Preferred Stock shall be
converted on such date; 
 (iii) the Conversion Rate then in effect and whether the Corporation will pay cash or
issue shares of Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(iv) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for issuance of
certificates representing Shares. 
 Section 9. Conversion upon a Specified Corporate Transaction. 

(a) In addition to the right of a holder of Designated Preferred Stock, at such holder’s option, to convert, at any time and from
time to time, all or any portion of the Designated Preferred Stock as set forth in Section 6, a holder of Designated Preferred Stock shall have the right, at such holder’s option, to convert all or any portion of such holder’s
Designated Preferred Stock into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock surrendered for conversion upon the following events (each a “Specified
Corporate Transaction”): 
 (i) if the Corporation makes a Special Distribution to all or substantially
all holders of Common Stock, at any time after the Corporation has given the notice of such distribution as provided in Section 9(b) below until the earlier of 5:00 p.m., New York City time, on the Business Day preceding the Ex-Dividend
Date for such distribution or any announcement by the Corporation that such distribution shall not take place; 
  

 A-16 

 (ii) if the Corporation adopts a plan relating to the liquidation or
dissolution of the Corporation, at any time beginning on the Business Day following the date notice of the Specified Corporate Transaction is given as provided in Section 9(b) below and ending on the date that is 30 calendar days after such
date; or 
 (iii) if the Corporation consolidates or merges with or into any other Person, or sells, leases,
transfers, conveys or otherwise disposes, in one or a series of related transactions, all or substantially all of its assets and those of its subsidiaries taken as a whole to any Person that results in any reclassification, conversion, exchange or
cancellation of outstanding shares of the Capital Stock of the Corporation, other than any merger solely for the purpose of changing the Corporation’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of
outstanding Shares solely into shares of common stock of the surviving entity, at any time beginning 15 days prior to the date announced by the Corporation as the anticipated effective date of the transaction and until and including the date which
is 15 days after the date that is the actual effective date of such transaction; 
 provided, however, notwithstanding anything in this
Certificate of Determination to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received any applicable Regulatory Approvals. In addition
to the number of Shares issuable upon conversion in connection with a Specified Corporate Transaction, the holders of shares of Designated Preferred Stock so converted shall have the right to receive any accrued and unpaid dividends on such shares
to, but excluding, the Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared. 

(b) Specified Corporate Transaction Conversion Procedures. In the event of a Specified Corporate Transaction, the Corporation
shall provide notice thereof to each holder of Designated Preferred Stock. In the case of a Specified Corporate Transaction contemplated by Section 9(a)(i), such notice shall be mailed at least 30 days prior to the Ex-Dividend Date for such
distribution. In the case of a Specified Corporate Transaction contemplated by Section 9(a)(ii), such notice shall be mailed no later than 5 days after the adoption of the plan of liquidation or dissolution. In the case of a Specified Corporate
Transaction contemplated by Section 9(a)(iii), such notice shall be mailed at least 20 days prior to the beginning of the conversion period related to such Specified Corporate Transaction. Each such notice given to a holder shall state, as
applicable: 
 (i) a description of the Specified Corporate Transaction, including a description of the type and
amount of the distribution to be made or consideration to be received per share of Common Stock; 
 (ii) the
Ex-Dividend Date in the case of a Specified Corporate Transaction contemplated by Section 9(a)(i), the date of adoption of the plan in the case of a Specified Corporate Transaction contemplated by Section 9(a)(ii) or the date on which the
Specified Corporate Transaction is anticipated to be effective in the case of a Specified Corporate Transaction contemplated by Section 9(a)(iii); 
  

 A-17 

 (iii) the date by which the Specified Corporate Transaction conversion
option must be exercised by a holder of Designated Preferred Stock; 
 (iv) the Conversion Rate then in effect
and whether the Corporation will pay cash or issue shares of Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(v) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for issuance of
certificates representing Shares. 
 (c) To exercise a Specified Corporate Transaction conversion option, a holder of the
Designated Preferred Stock must, no later than 5:00 p.m., New York City time, on the date by which the conversion option upon the Specified Corporate Transaction must be exercised as specified in the Notice of Specified Corporate Transaction
delivered under Section 9(b), comply with the procedures set forth in Section 6(h) and indicate that it is exercising its conversion option pursuant to this Section 9. 

(d) If a holder of the Designated Preferred Stock does not elect to exercise its conversion option pursuant to this Section 9, the
shares of Designated Preferred Stock or successor securities held by it shall remain outstanding but the holder of the Designated Preferred Stock shall not thereafter be entitled to convert such holder shares of the Designated Preferred Stock in
accordance with this Section 9. 
 Section 10. Conversion upon Change of Control. 

(a) Change of Control. In addition to the right of a holder of Designated Preferred Stock, at such holder’s option, to
convert, at any time and from time to time, all or any portion of the Designated Preferred Stock as set forth in Section 6, a holder of Designated Preferred Stock shall have the right, at such holder’s option, to convert all or any portion
of such holder’s Designated Preferred Stock into a number of Shares equal to the product of the then-applicable Conversion Rate and the number of shares of Designated Preferred Stock surrendered for conversion during the period beginning on the
Business Day following the effective date of the Change of Control (the “Change of Control Effective Date”) and ending on the date that is 30 calendar days after the Change of Control Effective Date; provided, however,
notwithstanding anything in this Certificate of Determination to the contrary, holders of Designated Preferred Stock shall not be entitled to convert shares of Designated Preferred Stock until the converting holder has first received any applicable
Regulatory Approvals. In addition to the number of Shares issuable upon conversion upon a Change of Control, the holders of shares of Designated Preferred Stock so converted shall have the right to receive any accrued and unpaid dividends on such
shares to, but excluding, the Conversion Date (including, if applicable, as provided in Section 3(a) above, dividends on such amount), regardless of whether any dividends are actually declared. 

(b) Change of Control Conversion Procedures. In the event of a Change of Control, the Corporation shall provide notice thereof to
each holder of Designated Preferred Stock. Such 
  

 A-18 

 
notice shall be mailed at least 20 days prior to the date on which the Corporation anticipates consummating the Change of Control (or, if later, within two Business Days after the Corporation
becomes aware of a Change of Control). Each such notice given to a holder shall state: 
 (i) a description of
the Change of Control; 
 (ii) the date on which the Change of Control is anticipated to be effected or, if
known, the Change of Control Effective Date; 
 (iii) the date by which the Change of Control conversion option
must be exercised, which shall be 30 calendar days after the Change of Control Effective Date; 
 (iv) the
Conversion Rate then in effect and whether the Corporation will pay cash or issue shares of Common Stock (calculated in accordance with Section 6(e) above) in respect of accrued and unpaid dividends; and 

(v) the place or places where certificates for shares of Designated Preferred Stock are to be surrendered for issuance of
certificates representing Shares. 
 (c) To exercise a Change of Control conversion option, a holder of the Designated Preferred
Stock must, no later than 5:00 p.m., New York City time, on the date by which the conversion option upon the Change of Control must be exercised as specified in the notice delivered under Section 10(b), comply with the procedures set forth
in Section 6(h) and indicate that it is exercising its conversion option pursuant to this Section 10. 
 (d) If a
holder of the Designated Preferred Stock does not elect to exercise its conversion option pursuant to this Section 10, the shares of Designated Preferred Stock or successor securities held by it shall remain outstanding but the holder of the
Designated Preferred Stock shall not thereafter be entitled to convert such holder’s shares of the Designated Convertible Preferred Stock in accordance with this Section 10. 

Section 11. Anti-Dilution Adjustments. The Conversion Price and the Conversion Rate shall be subject to adjustment from time
to time as follows; provided, that if more than one Subsection of this Section 11 is applicable to a single event, the Subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more
than one Subsection of this Section 11 so as to result in duplication: 
 (a) Stock Splits, Subdivisions,
Reclassifications or Combinations. If the Corporation shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a
greater number of shares of Common Stock, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number of shares of Common Stock, the Conversion Price in effect at the time of the record date for such dividend or
distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by multiplying the Conversion Price in effect immediately prior to the record or effective date, as the case may be, for
the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by a fraction (x) the numerator of which shall be the number of 

 

 A-19 

 
shares of Common Stock outstanding at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification, in each case, prior
to giving effect to such event, and (y) the denominator of which shall be the number of shares of Common Stock outstanding immediately after, and solely as a result of, such event. 

(b) [Reserved.] 

(c) [Reserved.] 

(d) Other Issuances of Common Stock. Until the date on which the Original Designated Preferred Stockholder no longer holds the
Designated Preferred Stock or any portion thereof, if the Corporation shall issue shares of Common Stock or Convertible Securities other than pursuant to a Permitted Transaction (as defined below) or a transaction for which Section 11(a)
applies (a “Common Stock Issuance”) without consideration or at a consideration per share (or having a conversion price per share) that is less than the Conversion Price in effect immediately prior to such Common Stock Issuance,
then the Conversion Price in effect immediately prior to the Common Stock Issuance shall be decreased to the number obtained by multiplying such Conversion Price by a fraction (A) the numerator of which shall be the sum of (1) the number
of shares of Common Stock of the Corporation outstanding immediately prior to the Common Stock Issuance and (2) the number of additional shares of Common Stock which the aggregate consideration receivable by the Corporation for the total number
of shares of Common Stock issued (or into which Convertible Securities may be exercised or converted) in connection with the Common Stock Issuance would purchase at the Conversion Price in effect immediately prior to such Common Stock Issuance and
(B) the denominator of which shall be the sum of (1) the number of shares of Common Stock outstanding immediately prior to the Common Stock Issuance and (2) the number of shares of Common Stock issued (or into which Convertible
Securities may be exercised or converted) in connection with the Common Stock Issuance. 
 For purposes of the foregoing, the
aggregate consideration receivable by the Corporation in connection with a Common Stock Issuance shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of
any related expenses payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such Convertible Securities into shares of Common Stock; and “Permitted
Transactions” shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related assets at Fair Market Value, (ii) in connection with employee benefit plans and compensation related arrangements
in the ordinary course and consistent with past practice approved by the Board of Directors, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or Convertible Securities for cash conducted by the Corporation
or its Affiliates pursuant to registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by comparable financial institutions and (iv) in connection with the exercise of preemptive
rights on terms existing as of the Original Issue Date. Any adjustment made pursuant to this Section 11(d) shall become effective immediately upon the date of such issuance. For the avoidance of doubt, notwithstanding any other provision
hereof, Section 11(d) shall not apply to any transaction to which Section 11(a) applies. 
  

 A-20 

 (e) Other Distributions. In case the Corporation shall fix a record date for the
making of a distribution to all holders of its shares of Common Stock, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its Common Stock and other dividends or distributions referred to in
Section 11(a)), in each such case, the Conversion Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Conversion Price in effect immediately prior to the reduction by the
quotient of (x) the Market Price of the Common Stock on the last Trading Day preceding the first date on which the Common Stock trades in a regular way (including on the principal national securities exchange on which the Common Stock is listed
or admitted to trading) without the right to receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, cash, rights or warrants to be so distributed in respect of one share
of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided by (y) such Market Price on such date specified in clause (x); such adjustment shall be made successively whenever such a
record date is fixed. In the case of adjustment for a cash dividend that is, or is coincident with, a regular quarterly cash dividend, the Per Share Fair Market Value would be reduced by the per share amount of the portion of the cash dividend that
would constitute an Ordinary Cash Dividend. In the event that such distribution is not so made, the Conversion Price then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such
securities, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Conversion Price that would then be in effect and the Conversion Rate if such record date had not been fixed. 

(f) Certain Repurchases of Common Stock. In case the Corporation effects a Pro Rata Repurchase of Common Stock, then the
Conversion Price shall be reduced to the price determined by multiplying the Conversion Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of
(x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price of a share of Common Stock on the Trading Day immediately preceding the first public announcement by the Corporation
or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock
outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Market Price per share of Common Stock on the Trading Day immediately preceding the first public announcement by
the Corporation or any of its Affiliates of the intent to effect such Pro Rata Repurchase. For the avoidance of doubt, no increase to the Conversion Price shall be made pursuant to this Section 11(f). 

(g) Business Combinations. In case of any Business Combination or reclassification of Common Stock (other than a reclassification
of Common Stock referred to in Section 11(a)), the right of a holder of Designated Preferred Stock to receive Shares upon conversion of the Designated Preferred Stock into Shares shall be converted into the right to convert the Designated
Preferred Stock to acquire the number of shares of stock or other securities or property (including cash) which the Shares issuable (at the time of such Business Combination or reclassification) upon conversion of the Designated Preferred Stock
immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if

  

 A-21 

 
necessary, the provisions set forth herein with respect to the rights and interests thereafter of a holder of Designated Preferred Stock shall be appropriately adjusted so as to be applicable, as
nearly as may reasonably be, to the right of a holder of Designated Preferred Stock to convert the Designated Preferred Stock in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and
amount of stock, securities or the property receivable upon conversion of the Designated Preferred Stock following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of
consideration receivable upon consummation of such Business Combination, then the consideration that a holder of Designated Preferred Stock shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration
received by the majority of all holders of the shares of Common Stock that affirmatively make an election (or of all such holders if none make an election). 

(h) Rounding of Calculations; Minimum Adjustments. All calculations under this Section 11 shall be made to the nearest
one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 11 to the contrary notwithstanding, no adjustment in the Conversion Price or the Conversion Rate
shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and
together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more. 

(i) Timing of Issuance of Additional Common Stock upon Certain Adjustments. In any case in which the provisions of this
Section 11 shall require that an adjustment shall become effective immediately after a record date for an event, the Corporation may defer until the occurrence of such event (i) issuing to the holder of Designated Preferred Stock converted
after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such conversion by reason of the adjustment required by such event over and above the Shares issuable upon such conversion before
giving effect to such adjustment and (ii) paying to such holder of Designated Preferred Stock any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Corporation upon request shall deliver to such
holder of Designated Preferred Stock a due bill or other appropriate instrument evidencing the right of such holder of Designated Preferred Stock to receive such additional shares, and such cash, upon the occurrence of the event requiring such
adjustment. 
 (j) Other Events. For so long as the Original Designated Preferred Stockholder holds the Designated
Preferred Stock or any portion thereof, if any event occurs as to which the provisions of this Section 11 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the
Corporation, fairly and adequately protect the conversion rights of the Designated Preferred Stock in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application
of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such conversion rights as aforesaid. The Conversion Price or the
Conversion Rate shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Corporation. 
  

 A-22 

 (k) Statement Regarding Adjustments. Whenever the Conversion Price or the Conversion
Rate shall be adjusted as provided in this Section 11, the Corporation shall forthwith file at the principal office of the Corporation a statement showing in reasonable detail the facts requiring such adjustment and the Conversion Price that
shall be in effect and the Conversion Rate after such adjustment, and the Corporation shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each holder of Designated Preferred Stock at the address appearing in
the Corporation’s records. 
 (l) Notice of Adjustment Event. In the event that the Corporation shall propose to
take any action of the type described in this Section 11 (but only if the action of the type described in this Section 11 would result in an adjustment in the Conversion Price or the Conversion Rate or a change in the type of securities or
property to be delivered upon conversion of the Designated Preferred Stock), the Corporation shall give notice to each holder of Designated Preferred Stock, in the manner set forth in Section 11(k), which notice shall specify the record date,
if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Conversion Price,
Conversion Rate and the number, kind or class of shares or other securities or property which shall be deliverable upon conversion of the Designated Preferred Stock. In the case of any action which would require the fixing of a record date, such
notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall
not affect the legality or validity of any such action. 
 (m) Proceedings Prior to Any Action Requiring Adjustment. As a
condition precedent to the taking of any action which would require an adjustment pursuant to this Section 11, the Corporation shall take any action which may be necessary, including obtaining regulatory, NYSE, NASDAQ or other applicable
national securities exchange or stockholder approvals or exemptions, in order that the Corporation may thereafter validly and legally issue as fully paid and nonassessable all Shares that the holders of Designated Preferred Stock are entitled to
receive upon conversion of the Designated Preferred Stock pursuant to this Section 11. 
 (n) Adjustment Rules. Any
adjustments pursuant to this Section 11 shall be made successively whenever an event referred to herein shall occur. 

Section 12. Reservation and Listing of Common Stock. The Corporation hereby covenants that any Shares issued upon the
conversion of the Designated Preferred Stock in accordance with this Certificate of Determination shall be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges
created by a holder of Designated Preferred Stock, income and franchise taxes incurred in connection with the conversion of the Designated Preferred Stock or taxes in respect of any transfer occurring contemporaneously therewith). The Corporation
shall at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the conversion of the Designated Preferred Stock, the aggregate number of shares of Common Stock then issuable
upon conversion of the Designated Preferred Stock at any time. The Corporation shall (A) procure, at its sole expense, the listing of the Shares issuable upon conversion of the Designated Preferred Stock at any time, subject to issuance or
notice of 
  

 A-23 

 
issuance, on all principal stock exchanges on which the Common Stock is then listed or traded and (B) maintain such listings of such Shares at all times after issuance. The Corporation shall
use reasonable best efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded. 

Section 13. Voting Rights. 

(a) General. The holders of Designated Preferred Stock shall not have any voting rights except as set forth below or as otherwise
from time to time required by law. 
 (b) Preferred Stock Directors. Whenever, at any time or times, dividends payable on
the shares of Designated Preferred Stock have not been paid for an aggregate of six quarterly Dividend Periods or more, whether or not consecutive, the holders of the Designated Preferred Stock shall have the right, with holders of shares of any one
or more other classes or series of Voting Parity Stock outstanding at the time, voting together as a class, to elect two directors (hereinafter the “Preferred Directors” and each a “Preferred Director”) at the
Corporation’s next annual meeting of stockholders (or at a special meeting called for that purpose prior to such next annual meeting) and at each subsequent annual meeting of stockholders until all accrued and unpaid dividends for all past
Dividend Periods, including the latest completed Dividend Period (including, if applicable as provided in Section 3(a) above, dividends on such amount), on all outstanding shares of Designated Preferred Stock have been declared and paid in full
at which time such right shall terminate with respect to the Designated Preferred Stock, except as herein or by law expressly provided, subject to revesting in the event of each and every subsequent default of the character above mentioned; provided
that it shall be a qualification for election for any Preferred Director that the election of such Preferred Director shall not cause the Corporation to violate any corporate governance requirements of any securities exchange or other trading
facility on which securities of the Corporation may then be listed or traded that listed or traded companies must have a majority of independent directors. Upon any termination of the right of the holders of shares of Designated Preferred Stock and
Voting Parity Stock as a class to vote for directors as provided above, the Preferred Directors shall cease to be qualified as directors, the term of office of all Preferred Directors then in office shall terminate immediately and the authorized
number of directors shall be reduced by the number of Preferred Directors elected pursuant hereto. Any Preferred Director may be removed at any time, with or without cause, and any vacancy created thereby may be filled, only by the affirmative vote
of the holders a majority of the shares of Designated Preferred Stock at the time outstanding voting separately as a class together with the holders of shares of Voting Parity Stock, to the extent the voting rights of such holders described above
are then exercisable. If the office of any Preferred Director becomes vacant for any reason other than removal from office as aforesaid, the remaining Preferred Director may choose a successor who shall hold office for the unexpired term in respect
of which such vacancy occurred. 
 (c) Class Voting Rights as to Particular Matters. So long as any shares of Designated
Preferred Stock are outstanding, in addition to any other vote or written consent of stockholders required by law or by the Charter, the vote or written consent of the holders of at least 66 2/3% of the shares of Designated Preferred Stock at the
time outstanding, voting as a separate class, 
  

 A-24 

 
given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or validating: 

(i) Authorization of Senior Stock. Any amendment or alteration of the Certificate of Determination for the
Designated Preferred Stock or the Charter to authorize or create or increase the authorized amount of, or any issuance of, any shares of, or any securities convertible into or exchangeable or exercisable for shares of, any class or series of Capital
Stock of the Corporation ranking senior to Designated Preferred Stock with respect to either or both the payment of dividends and/or the distribution of assets on any liquidation, dissolution or winding up of the Corporation; 

(ii) Amendment of Designated Preferred Stock. Any amendment, alteration or repeal of any provision of the
Certificate of Determination for the Designated Preferred Stock or the Charter (including, unless no vote on such merger or consolidation is required by Section 13(c)(iii) below, any amendment, alteration or repeal by means of a merger,
consolidation or otherwise) so as to adversely affect the rights, preferences, privileges or voting powers of the Designated Preferred Stock; or 

(iii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any consummation of a binding share exchange
or reclassification involving the Designated Preferred Stock, or of a merger or consolidation of the Corporation with another corporation or other entity, unless in each case (x) the shares of Designated Preferred Stock remain outstanding or,
in the case of any such merger or consolidation with respect to which the Corporation is not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent,
and (y) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not materially less
favorable to the holders thereof than the rights, preferences, privileges and voting powers, and limitations and restrictions thereof, of Designated Preferred Stock immediately prior to such consummation, taken as a whole; 

provided, however, that for all purposes of this Section 13(c), any increase in the amount of the authorized Preferred Stock, including any
increase in the authorized amount of Designated Preferred Stock necessary to satisfy preemptive or similar rights granted by the Corporation to other persons prior to the Signing Date, or the creation and issuance, or an increase in the authorized
or issued amount, whether pursuant to preemptive or similar rights or otherwise, of any other series of Preferred Stock, or any securities convertible into or exchangeable or exercisable for any other series of Preferred Stock, ranking equally with
and/or junior to Designated Preferred Stock with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and the distribution of assets upon liquidation, dissolution or winding up of the Corporation shall not be
deemed to adversely affect the rights, preferences, privileges or voting powers, and shall not require the affirmative vote or consent of, the holders of outstanding shares of the Designated Preferred Stock. 

(d) Changes after Provision for Redemption or Conversion. No vote or consent of the holders of Designated Preferred Stock shall be
required pursuant to Section 13(c) above if, at or 
  

 A-25 

 
prior to the time when any such vote or consent would otherwise be required pursuant to such Section, all outstanding shares of the Designated Preferred Stock shall have been redeemed, or shall
have been called for redemption upon proper notice and sufficient funds shall have been deposited in trust for such redemption, in each case pursuant to Section 5 above or shall have been converted and sufficient Shares shall have been
delivered, in each case, pursuant to Sections 6, 7, 8, 9 or 10 above. 
 (e) Procedures for Voting and Consents. The
rules and procedures for calling and conducting any meeting of the holders of Designated Preferred Stock (including, without limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies at such a meeting, the
obtaining of written consents and any other aspect or matter with regard to such a meeting or such consents shall conform to the requirements of the Charter, the Bylaws, and applicable law and the rules of any national securities exchange or other
trading facility on which Designated Preferred Stock is listed or traded at the time. 
 Section 14. Record Holders.
To the fullest extent permitted by applicable law, the Corporation, the transfer agent, registrar, dividend disbursing agent and conversion agent may deem and treat the record holder of any share of Designated Preferred Stock as the true and lawful
owner thereof for all purposes, and neither the Corporation nor such transfer agent, registrar, dividend disbursing agent or conversion agent shall be affected by any notice to the contrary. 

Section 15. Prohibited Actions. The Corporation agrees that it shall not take any action which would entitle holder(s) of
Designated Preferred Stock to an adjustment of the Conversion Price if the total number of shares of Common Stock issuable after such action upon conversion of the Designated Preferred Stock, together with all shares of Common Stock then outstanding
and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter. 

Section 16. Notices. All notices or communications in respect of Designated Preferred Stock shall be sufficiently given if
given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Certificate of Determination, in the Charter or Bylaws or by applicable law. Notwithstanding the
foregoing, if shares of Designated Preferred Stock are issued in book-entry form through the Depositary or any similar facility, such notices may be given to the holders of Designated Preferred Stock in any manner permitted by such facility.

 Section 17. No Preemptive Rights. No share of Designated Preferred Stock shall have any rights of preemption
whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto, regardless of how such securities, or such warrants, rights or options, may be designated, issued or granted. 

Section 18. Replacement Certificates. The Corporation shall replace any mutilated certificate at the holder’s expense
upon surrender of that certificate to the Corporation. The Corporation shall replace certificates that become destroyed, stolen or lost at the holder’s expense upon delivery to the Corporation of reasonably satisfactory evidence that the
certificate has been destroyed, stolen or lost, together with any indemnity that may be reasonably required by the Corporation. 
  

 A-26 

 Section 19. Other Rights. The shares of Designated Preferred Stock shall not
have any rights, preferences, privileges or voting powers or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Charter or as provided by
applicable law. 
  

 A-27Asset Purchase Agreement

 Exhibit 10.1 

 
  

 
 ASSET
PURCHASE AGREEMENT 
 DATED AS OF
JULY 23, 2010 
 AMONG 

WATERBURY COMPANIES, INC., 

AIR GUARD CONTROL (CANADA) LIMITED, 

AIR GUARD CONTROL CORPORATION 

(AS SELLERS) 

AND 

AMREP, INC., 

AMREP IP HOLDINGS, LLC 

ACUITY HOLDINGS, INC. 

(as Buyers) 

AND, SOLELY WITH RESPECT TO SECTION 5.9, 

 WATCO INTERNATIONAL HOLDINGS CORP., 

WIND POINT PARTNERS V, L.P. 

AND 

WIND POINT EXECUTIVE ADVISOR PARTNERS, L.P. 

AND, SOLELY WITH RESPECT SECTION 10.14, 

ZEP INC. 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	 ARTICLE 1     DEFINITIONS
	  	1
	 SECTION 1.1
	  	 Certain Definitions
	  	1
		
	 ARTICLE 2     TRANSFER OF ASSETS
	  	8
	 SECTION 2.1
	  	 Transfer of Assets by Sellers
	  	8
	 SECTION 2.2
	  	 Excluded Assets
	  	11
	 SECTION 2.3
	  	 Assumption of Liabilities
	  	13
	 SECTION 2.4
	  	 Excluded Liabilities
	  	14
	 SECTION 2.5
	  	 Assignment of Contracts and Rights
	  	15
	 SECTION 2.6
	  	 Closing
	  	16
	 SECTION 2.7
	  	 Purchase Price
	  	16
	 SECTION 2.8
	  	 Working Capital Adjustment
	  	18
	 SECTION 2.9
	  	 Purchase Price Allocations
	  	20
	 SECTION 2.10
	  	 Adjustments
	  	21
		
	 ARTICLE 3     REPRESENTATIONS AND WARRANTIES OF SELLERS
	  	22
	 SECTION 3.1
	  	 Organization and Qualification
	  	22
	 SECTION 3.2
	  	 Authorization
	  	22
	 SECTION 3.3
	  	 Financial Information
	  	23
	 SECTION 3.4
	  	 Consents and Approvals; No Violations
	  	23
	 SECTION 3.5
	  	 Litigation
	  	23
	 SECTION 3.6
	  	 Compliance with Applicable Law
	  	24
	 SECTION 3.7
	  	 Compliance with Permits
	  	24
	 SECTION 3.8
	  	 Labor Matters
	  	24
	 SECTION 3.9
	  	 Employee Plan Matters
	  	25
	 SECTION 3.10
	  	 Taxes
	  	25
	 SECTION 3.11
	  	 Intellectual Property
	  	26
	 SECTION 3.12
	  	 Inventory
	  	28
	 SECTION 3.13
	  	 Brokers
	  	28
	 SECTION 3.14
	  	 Assumed Contracts
	  	28
	 SECTION 3.15
	  	 Title to and Adequacy of Assets
	  	30
	 SECTION 3.16
	  	 Insurance
	  	30
	 SECTION 3.17
	  	 Registrations
	  	30
	 SECTION 3.18
	  	 Product Warranty
	  	32
	 SECTION 3.19
	  	 Suppliers and Customers
	  	32
	 SECTION 3.20
	  	 Accounts Receivable
	  	32
	 SECTION 3.21
	  	 GST Registration
	  	33
	 SECTION 3.22
	  	 Absence of Changes
	  	33
	 SECTION 3.23
	  	 Transactions with Affiliates
	  	33
	 SECTION 3.24
	  	 Unlawful Benefits
	  	33
	 SECTION 3.25
	  	 Books and Records
	  	34

  

 i 

					
	 SECTION 3.26
	  	 Personal Information Consents
	  	34
		
	 ARTICLE 4     REPRESENTATIONS AND WARRANTIES OF BUYERS
	  	34
	 SECTION 4.1
	  	 Organization
	  	34
	 SECTION 4.2
	  	 Authorization
	  	34
	 SECTION 4.3
	  	 Consents and Approvals; No Violations
	  	34
	 SECTION 4.4
	  	 Financial Ability
	  	35
	 SECTION 4.5
	  	 Brokers
	  	35
	 SECTION 4.6
	  	 Litigation
	  	35
	 SECTION 4.7
	  	 GST Registration
	  	35
	 SECTION 4.8
	  	 Personal Information
	  	35
		
	 ARTICLE 5     COVENANTS
	  	35
	 SECTION 5.1
	  	 Conduct of the Business
	  	35
	 SECTION 5.2
	  	 Access to Information
	  	37
	 SECTION 5.3
	  	 Exclusive Dealing
	  	37
	 SECTION 5.4
	  	 Approvals and Consents
	  	38
	 SECTION 5.5
	  	 Additional Agreements
	  	38
	 SECTION 5.6
	  	 Employee Benefits
	  	38
	 SECTION 5.7
	  	 Public Announcements
	  	40
	 SECTION 5.8
	  	 Regulatory Filings
	  	40
	 SECTION 5.9
	  	 Noncompetition Provisions
	  	41
	 SECTION 5.10
	  	 Updating Schedules
	  	43
	 SECTION 5.11
	  	 Possession of Acquired Assets
	  	45
	 SECTION 5.12
	  	 Post-Closing Supply
	  	45
	 SECTION 5.13
	  	 Name Change
	  	45
	 SECTION 5.14
	  	 Risk of Loss
	  	45
	 SECTION 5.15
	  	 Receivables
	  	45
	 SECTION 5.16
	  	 Use of Personal Information
	  	46
	 SECTION 5.17
	  	 Product Returns
	  	46
	 SECTION 5.18
	  	 Insurance
	  	46
	 SECTION 5.19
	  	 Registration Data
	  	46
	 SECTION 5.20
	  	 Consultant
	  	46
		
	 ARTICLE 6     CONDITIONS TO CLOSING
	  	46
	 SECTION 6.1
	  	 Conditions to the Obligations of Sellers
	  	46
	 SECTION 6.2
	  	 Conditions to the Obligations of Buyers
	  	48
		
	 ARTICLE 7     TERMINATION; AMENDMENT; WAIVER
	  	51
	 SECTION 7.1
	  	 Termination
	  	51
	 SECTION 7.2
	  	 Effect of Termination
	  	51
	 SECTION 7.3
	  	 Amendment
	  	52
	 SECTION 7.4
	  	 Extension; Waiver
	  	52
	 SECTION 7.5
	  	 Specific Performance and Other Remedies
	  	52
		
	 ARTICLE 8     SURVIVAL AND INDEMNIFICATION
	  	52
	 SECTION 8.1
	  	 Survival; No Additional Representations and Warranties
	  	52

  

 ii 

					
	 SECTION 8.2
	  	 Indemnification
	  	53
	 SECTION 8.3
	  	 Limits on Indemnification
	  	55
	 SECTION 8.4
	  	 Matters Involving Third Parties
	  	58
	 SECTION 8.5
	  	 Tax Treatment of Indemnity Payments
	  	59
	 SECTION 8.6
	  	 GST Gross Up
	  	59
		
	 ARTICLE 9     TAX MATTERS
	  	59
	 SECTION 9.1
	  	 Transfer Taxes Elections
	  	59
	 SECTION 9.2
	  	 HST Election
	  	59
	 SECTION 9.3
	  	 Canadian Tax Elections
	  	60
	 SECTION 9.4
	  	 Pre-Closing Taxes; Elections
	  	60
	 SECTION 9.5
	  	 Pre-Closing Withholding and Reporting
	  	60
	 SECTION 9.6
	  	 Cooperation
	  	61
		
	 ARTICLE 10     MISCELLANEOUS
	  	61
	 SECTION 10.1
	  	 Entire Agreement; Assignment
	  	61
	 SECTION 10.2
	  	 Severability
	  	62
	 SECTION 10.3
	  	 Notices
	  	62
	 SECTION 10.4
	  	 Governing Law
	  	63
	 SECTION 10.5
	  	 Construction
	  	63
	 SECTION 10.6
	  	 Parties in Interest
	  	64
	 SECTION 10.7
	  	 Compliance with Bulk Sales Laws
	  	64
	 SECTION 10.8
	  	 Cooperation Following the Closing
	  	64
	 SECTION 10.9
	  	 Personal Liability
	  	64
	 SECTION 10.10
	  	 Expenses
	  	64
	 SECTION 10.11
	  	 Disclosure Generally
	  	65
	 SECTION 10.12
	  	 Counterparts
	  	65
	 SECTION 10.13
	  	 Arbitration; Waiver of Jury Trial
	  	65
	 SECTION 10.14
	  	 Zep Guaranty
	  	68

 List of Exhibits 

Exhibit A - Form of Escrow Agreement 
 Exhibit B
- Net Working Capital Calculations 
 Exhibit C - Financial Information 

Exhibit D - Employees 
 Exhibit E - Buyers’
Closing Certificate 
 Exhibit F - Transition Services Agreement 

Exhibit G - IP License Agreement 
 Exhibit H -
Seller’s Closing Certificate 
 Exhibit I - Guaranty by Watco 
  

 iii 

 ASSET PURCHASE AGREEMENT 

THIS ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of July 23, 2010, by and among WATERBURY COMPANIES, INC., a
Delaware corporation (“Waterbury”), AIR GUARD CONTROL (CANADA) LIMITED, a Canadian Federal corporation (“Air Guard Canada”) and AIR GUARD CONTROL CORPORATION, a Delaware corporation (“Air Guard Control” and together
with Air Guard Canada, “Air Guard”) (each of Waterbury, Air Guard Canada, and Air Guard Control being individually referred to herein as a “Seller” and, collectively, as the “Sellers”), and Amrep, Inc., a Delaware
corporation (“US Buyer”), Amrep IP Holdings, LLC, a Delaware limited liability company (“IP Buyer”) and Acuity Holdings, Inc., a Québec corporation (“Canadian Buyer,” each of US Buyer, IP Buyer and Canadian Buyer
being individually referred to herein as “Buyer” and, collectively, as the “Buyers”), and, solely with respect to Section 5.9 hereof, Watco International Holdings Corp., a Delaware corporation (“Watco”), Wind Point
Partners V, L.P., a Delaware limited partnership (“WPP V”) and Wind Point Executive Advisor Partners, L.P., a Delaware limited partnership (“WPP EAP”), and, solely with respect to Section 10.14 hereof, Zep Inc., a Delaware
corporation (“Zep”). 
 RECITALS 

WHEREAS, Sellers are engaged in the business of developing, manufacturing, distributing, marketing and selling air hygiene and pest
control delivery systems, including through automated dispensing of odor counteractants, insect control, waterless urinal technology, touchless bathroom facilities, and other products (as such business is conducted on the date hereof, the
“Business”). 
 WHEREAS, each Seller desires to sell to Buyers such Sellers’ assets used in the Business and
Buyers desire to purchase each Seller’s assets used in the Business, all on the terms set forth herein. 
 AGREEMENT

 NOW THEREFORE in consideration of the premises and the representations, warranties, covenants and agreements herein
contained and intending to be legally bound hereby, Sellers and Buyers hereby agree as follows: 
 ARTICLE 1 

DEFINITIONS 

SECTION 1.1 Certain Definitions. 

(a) The following terms, as used herein, have the following meanings: 

“Affiliate” means a Person that, directly or indirectly, through one or more intermediaries controls, is
controlled by or is under common control with the first-mentioned Person. 

 “Ancillary Agreements” means the Assignment Agreements and the
Assumption Agreements, the Escrow Agreement, the IP License Agreement and all other certificates and agreements delivered in connection with this Agreement, but excluding the Transition Services Agreement. 

“Applicable Laws” means all statutes, laws, rules, regulations, codes, injunctions, restrictions, ordinances,
judgments, orders, decrees, rulings, approvals, directives, writs, awards, policies, procedures and charges of federal, state, local, and foreign governments any and all agencies thereof. 

“Available Cash” means cash and cash equivalents held by any Seller (including, without limitation, marketable
securities and short-term investments). 
 “Business Day” means any day that is not a Saturday, Sunday
or day on which the banks in Chicago, Illinois are required or permitted to be closed. 
 “COBRA” means
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and regulations promulgated thereunder. 

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

“Contracts” means all contracts, subcontracts, agreements, arrangements, options, leases, subleases, licenses,
sublicenses, sales and accepted purchase orders, commitments and other agreements of any kind, whether written or oral, which relate to the Business and to which one or more Sellers is a party or to which one or more Sellers or the Acquired Assets
is otherwise bound. 
 “Direct Affiliates” means, with respect to any Seller, such Seller’s
Affiliates, including without limitation Watco and its direct and indirect subsidiaries, but specifically excluding, (i) the Wind Point Partner entities, such entities’ portfolio companies (other than Watco and its subsidiaries), and such
portfolio companies’ subsidiaries and (ii) the P&L Companies. 
 “Employee Plan” means
any “pension plan” (as defined under Section 3(2) of ERISA, determined without regard to whether such plan is subject to ERISA) (any “Pension Plan”); “welfare plan” (as defined under Section 3(1) of ERISA,
determined without regard to whether such plan is subject to ERISA) (any “Welfare Plan” and, collectively with any Pension Plan, any “ERISA-Type Plan”); any other plan, fund, policy, program, agreement, arrangement or scheme,
qualified or non-qualified, whether or not considered legally binding, that involves any pension, thrift, saving, retirement, profit sharing, deferred compensation, bonus, stock option, stock purchase, phantom stock or other incentive plan; any
other “fringe” benefits including, without limitation, voluntary employees’ beneficiary associations or related trusts, vacation, summer hours, severance, disability, medical, hospitalization, dental, life, accidental death and
dismemberment and other insurance, tuition, company car, club dues, income tax preparation, sick leave, maternity, paternity or family leave, child care, education, cafeteria plan or other benefits; or other employment, supplemental unemployment,
layoff, consulting, “golden parachutes” engagement or retainer agreement, arrangement or plan including, without limitation all Employee Plans provided to any Canadian Hired Employees. 

 

 2 

 “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended. 
 “Escrow Agent” means Wells Fargo Bank, N.A. 

“Escrow Agreement” means an escrow agreement, by and among Sellers, Buyers and the Escrow Agent, in
substantially the form of Exhibit A hereto, pursuant to which Buyers shall fund Two Million Dollars ($2,000,000.00) (the “Escrow Funds”) into an escrow account at Closing to secure and to serve as the first source of funds in
respect of the Sellers’ indemnification obligations hereunder, and, in the Buyers’ sole discretion, in respect of the payment of any post-Closing adjustments made pursuant to Section 2.8 hereof. 

“Environmental Law” means any federal, state, local or foreign law, statute, ordinance, rule, regulation, code,
license, permit, written authorization, written approval, written consent, order, consent agreement, or any applicable judicial or administrative decision relating to (a) pollution or the protection, preservation, remediation or restoration of
health, safety or the environment, including: (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980; (ii) the Resource Conservation and Recovery Act of 1976; (iii) the Hazardous Materials Transportation
Act; (iv) the Toxic Substances Control Act; (v) the Clean Water Act; (vi) the Clean Air Act; (vii) the Safe Drinking Water Act; (viii) the National Environmental Policy Act of 1969; and (ix) the Emergency Planning and
Community Right-to-Know Act; (b) the use, storage, recycling, treatment, generation, transportation processing, handling, labeling, production, release or disposal of Hazardous Substances; or (c) the production, registration,
transportation, testing, analysis, labeling, advertisement, manufacture, development, sale, distribution, or any other use of any pesticidal product or material. 

“FMC” means FMC Corporation, a Delaware corporation. 

“FMC APA” means that certain Asset Purchase Agreement, dated as of February 17, 2009, by and between
Waterbury and FMC, as amended. 
 “GAAP” means generally accepted accounting principles as applied in
the United States at the time such term is used (unless the context expressly indicates otherwise). 

“GST/HST” means goods and services tax or harmonized sales tax payable pursuant to Part IX of the Excise Tax
Act (Canada), or any other statute in any other jurisdiction of Canada, as such statutes may be amended, modified or replaced from time to time, including any successor statute. 

“Governmental Entity” means any federal, state or local U.S., Canadian or other foreign government, any
political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign. 

“Hazardous Substance” means: each and every element, compound, chemical mixture, contaminant, pollutant,
material or other substance included within any applicable federal, state, local or foreign definition or listings of “hazardous substances,” “special waste,” “hazardous waste,” “extremely hazardous
substance,” “hazardous materials,” or “toxic substances,” under 
  

 3 

 
any Environmental Law or the use, handling or Release of which is governed by or subject to any Environmental Law. 

“Hired Employee Obligations” means all obligations of each Seller as of the Closing Date with respect to the
Hired Employees’ compensation payable and accrued in the Ordinary Course of Business (including, without limitation, earned but unused vacation liabilities, accrued bonus and other accrued incentive payments, accrued payroll and related taxes)
and with respect to the Hired Employees’ severance entitlements. 
 “HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “Indebtedness” of any Person means
as of the Closing Date all obligations of such Person (except for any account listed on Exhibit B and included in the Final Actual Net Working Capital) which in accordance with GAAP should be classified on a balance sheet of such Person as a
liability, and in any event, regardless of how classified in accordance with GAAP, shall include (without duplication) all obligations of such Person (a) for borrowed money or funded indebtedness (including obligations in respect of accrued
interest) or evidenced by notes, bonds, debentures or similar instruments, and any prepayment premiums, charges, penalties or other costs or expenses related to any of the foregoing; (b) for capital lease obligations (including the amount
necessary to pay in full all principal, interest, break fees, penalties, lease payments, buyout options, or similar payments such that as of the date of such payment, the payor would own all equipment or other property that is the subject of a lease
or similarly styled agreement); (c) for all of the following: (i) obligations which have been incurred in connection with the acquisition of property or assets (including obligations in respect of principal and accrued interest but
excluding trade payables or accruals included in the Final Actual Net Working Capital), (ii) obligations created or arising under any deferred purchase price, conditional sale or other title retention agreement with respect to property acquired
by such Person, (excluding trade payables or accruals included in the Final Actual Net Working Capital), (iii) all obligations of such Person in regard to guaranties or sureties by others of such Person’s obligations, and (iv) any
prepayment premiums, charges, penalties or other costs or expenses related to any of the foregoing. 

“Intellectual Property” means all United States, international and foreign patents, copyrights, copyrightable
works, trademarks and service marks (including all pending patent applications (including all continuations, continuations-in-part, divisions, renewals, extensions, provisionals, re-issues and re-examination certificates related thereto) and all
registered, applied for and common law copyrights, trademarks and service marks), trade names, service names, rights to trade dress and company names, all goodwill associated with such trademarks, service marks, and trade dress, copyrighted material
contained within labels, software, database rights whether registered or unregistered, designs, know-how, processes, formulations (including formula recipes), trade secrets, inventions, invention disclosures, improvements, domain names, technical
data, customer lists and other proprietary data, whether registered or unregistered, including all files, notes, books and records related thereto and all documentation embodying, representing or documenting any of the foregoing (excluding any
Registration Data which is separately defined). 
  

 4 

 “Intercompany Payables” means, collectively, all intercompany
payables owed by a Seller to one of its Affiliates. 
 “Intercompany Receivables” means, collectively,
all intercompany receivables owed to a Seller by one of its Affiliates. 
 “Liabilities” means all
obligations and other liabilities of a Person (of whatever kind or nature, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due). 

“Lien” means any mortgage, pledge, lien, encumbrance, charge, or other security interest, other than
(a) statutory liens of landlords and liens of carriers, warehousemen, mechanic’s, materialmen’s, and similar liens for amounts not yet due and payable or that are being contested in good faith through appropriate proceedings,
(b) liens for Taxes and/or utilities not yet due and payable or for Taxes that the taxpayer is contesting in good faith through appropriate proceedings, (c) purchase money liens and liens securing rental payments under capital lease
arrangements that have been disclosed pursuant hereto to the extent required to be disclosed, and (d) liens incurred or deposits made in the Ordinary Course of Business in connection with workers’ compensation, unemployment insurance or
other types of social security to the extent the same are not yet due and payable. 
 “Loss” or
“Losses” means any and all damages, dues, penalties, fines, costs, losses, liabilities, (including any reasonable environmental investigation and remediation costs), obligations, Taxes, expenses, fees, and fines, (including without
limitation amounts paid in settlement and reasonable costs of investigation and defense, reasonable legal expenses and other reasonable costs) whether such matters arise out of contract, tort, violation of law or any other theory and whether such
matters are brought or initiated by a Person or a Governmental Entity. 
 “Major Customer” means any
customer of the Business to whom sales in the twelve (12) full calendar months prior to the date hereof generated revenue for the Business in excess of $250,000. 

“Material Adverse Effect” or “Material Adverse Change” means any state of facts, event, occurrence,
circumstance, change or effect that, individually or when taken together with all other such states of fact, events, occurrences, circumstances, changes or effects, is, or could reasonably be likely to be, materially adverse to the Business,
Acquired Assets and Assumed Liabilities taken as a whole, or the financial condition or results of operations of the Business, in each case taken as a whole; provided, however, that none of the following and no circumstance, change or effect
resulting from any of the following shall be deemed either alone or in combination to constitute a Material Adverse Effect or Material Adverse Change: (a) any failure by one or more Sellers, for any period ending (or for which revenues or
earnings are released) on or after the date of this Agreement, to meet internal projections or forecasts or earnings predictions (unless the underlying cause of any such failure is a Material Adverse Effect or a Material Adverse Change); or
(b) any circumstances, changes or effects that are attributable to or resulting from (i) the announcement or pendency of the transaction contemplated by this Agreement; (ii) conditions affecting the industry in which the Business
participates, the U.S. economy as a whole, the Canadian economy as a whole, or the capital/credit markets or economy 

 

 5 

 
in general or in any of the markets in which one or more of Seller’s Business operates, unless such conditions have a significantly disproportionate and adverse effect on the Business
relative to the effect on other similarly sized and similarly situated companies operating in the industry in which the Business operates; (iii) any change in GAAP or other accounting requirements or principles or any change in applicable laws,
rules or regulations or the interpretation thereof; or (iv) actions required to be taken under applicable laws, rules or regulations; or (v) act of God, natural disaster, hurricane, earthquake, epidemic, riot, terrorism or military action
or the threat thereof (collectively, “Acts of God”). 
 “Net Working Capital” means
(i) the Accounts Receivable that are included in the Acquired Assets (net of reserves), plus the Inventory that is included in the Acquired Assets (net of reserves), plus the other categories of current assets of the Sellers in each case
included in the determination of Net Working Capital set forth in the Net Working Capital section of Exhibit B (other than items identified therein as “excluded”), (ii) less accounts payable of the Sellers, less other
current liabilities of the Sellers in each case included in the determination of Net Working Capital set forth in the Net Working Capital section of Exhibit B (including without limitation the Hired Employee Obligations),
(iii) plus or minus the adjustments to Net Working Capital of the categories set forth in the Adjustments section of Exhibit B, in each case determined in accordance with Exhibit B hereto (including the Walkthrough and
Explanation section of Exhibit B) or, if the calculation of any of the foregoing is not addressed by Exhibit B, then determined in accordance with GAAP. 

“Net Working Capital Target” means Six Million, Seven Hundred Sixty-Two Thousand Dollars ($6,762,000).

 “Ordinary Course of Business” means the ordinary course of business of a Seller or the Sellers (as
the context requires) that is consistent in nature and scope with such Seller’s or Sellers’, as applicable, past custom and practice (including as to frequency and amount), including with respect to pricing, rebates, promotional discounts,
volume discounts and other similar pricing or sale promotions, and policies regarding sales returns and allowances. 

“P&L Companies” means, collectively, P+L Systems Corporation, a Delaware corporation and its wholly owned
direct and indirect subsidiaries. 
 “Person” means an individual, corporation, general partnership,
limited partnership, venture, limited liability company, association, trust, unincorporated organization, business, union, society, firm, Governmental Entity or any other entity or organization. 

“Personal Information” means information about an identifiable individual as defined by Privacy Laws.

 “Prime Rate” means the prime rate as reported from time to time in The Wall Street Journal.

 “Privacy Laws” means the federal Personal Information Protection and Electronic Documents Act
and any comparable law of any other province or territory of Canada applicable to the parties hereto or the Business. 
  

 6 

 “Registrations” means all registrations, approvals, consents,
licenses or other authorizations required by Applicable Law and, to the extent not required by Applicable Law, previously granted by a Governmental Entity, which permit the research, testing, development, manufacture, sale or distribution by a
Seller, in such Seller’s operation of the Business, of a product containing one or more pesticidal substances, including to the extent utilized by any Seller in the operation of the Business, any sub-registration, “me-too”
registration or similar registration. 
 “Registration Data” means all studies, data, reports, or
information generated with respect to seeking, applying for, obtaining or maintaining any Registration in any jurisdiction including in any country in the world or any state or territory in the United States or any province or territory in Canada,
whether or not submitted to any Governmental Entity. 
 “Release” means any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or dispensing into the environment of any Hazardous Substance. 

“Seller Facilities” means the owned or leased real property at which Sellers have operated the Business, or at
which Sellers will operate after Closing in order to provide services under the Transition Services Agreement. 

“Sellers’ Software” shall mean all software owned by one or more of Sellers, including without limitation
all production-related, database and inventory control software, currently used in the Business. 

“Tax” and “Taxes” means any and all taxes, charges, fees, duties, levies, unclaimed property and
escheat obligations or other assessments, including, without limitation, all net income, gross income, gross receipts, premium, sales, use, ad valorem, goods and services, harmonized sales, value added, transfer, franchise, capital stock, profits,
license, withholding, payroll, employment, excise, estimated, severance, stamp, occupation, property or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest and any penalties (including penalties for failure
to file in accordance with applicable information reporting requirements), and additions to tax by any Taxing Authority, excluding any maintenance fees paid to any Governmental Authority related to Registrations. 

“Taxing Authority” means, with respect to any Tax, the Governmental Entity or political subdivision thereof that
imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision, including any Governmental Entity that imposes, or is charged with collecting, social security or similar charges or premiums.

 “Tax Return” means any report, return, form, declaration or other document or information required
to be supplied to any Taxing Authority in connection with Taxes, including estimated returns and reports of every kind with respect to Taxes. 

“Third Party Software” shall mean all software currently used in the Business owned in whole or in part by a
Person other than one or more of the Sellers and licensed to one or more of the Sellers, including without limitation all production-related, database and inventory control software. 

 

 7 

 “Transaction Documents” means the Ancillary Agreements and
Transition Services Agreements. 
 “Transaction Expenses” means all third party expenses incurred by
one or more Sellers in connection with the preparation, execution and consummation of this Agreement, including fees and disbursements of attorneys, accountants, brokers and other professional advisors; provided, however, that in no event shall the
Transaction Expenses include the HSR Filing Fees which are addressed in Section 5.8 hereof. 

“Transition Services Agreements” has the meaning set forth in Section 6.1(f)(vi). 

“WARN Act” means the Worker Adjustment Retraining and Notification Act of 1988. 

ARTICLE 2 

TRANSFER OF ASSETS 

SECTION 2.1 Transfer of Assets by Sellers. 

(a) Upon the terms and subject to the conditions of this Agreement and in reliance upon the representations, warranties and agreements
herein set forth, and subject to Section 2.2, US Buyer agrees to purchase and acquire from Waterbury, Canadian Buyer agrees to purchase and acquire from Air Guard Canada and Air Guard Control, Waterbury agrees to grant, sell, assign, transfer,
convey and deliver to US Buyer and Air Guard Canada, and Air Guard Control agree to grant, sell, assign, transfer, convey and deliver to Canadian Buyer, at the Closing (or to the extent provided in Section 2.1(a)(vii) below, at such times as
provided in Section 2.1(a)(vii) below) (defined below in Section 2.6), in each case free and clear of all Liens, all of such Seller’s right, title and interest in and to the following (which shall be collectively referred to herein,
together with the Transferred Intellectual Property to be conveyed pursuant to Section 2.1(b) below, as the “Acquired Assets”): 

(i) all rights of the Sellers under any Contracts relating to the Business (excluding (i) the Contracts listed on
Section 2.2(a) of the Seller Disclosure Schedule (the “Excluded Contracts”); (ii) any lease or agreement related to any real property; (iii) any Employee Plan, employment agreement or similar agreement; and
(iv) any sales representative agreement if such agreement is not amended, in a form and substance reasonably acceptable to Buyers, to provide that the exclusive rights of such sales representative applies only to products of Sellers as of the
date of this Agreement and, if not already provided in such agreement, imposing non-competition obligations on such sales representative) including without limitation those contracts listed on Section 2.1(a)(i) of the Seller Disclosure Schedule
which are in effect as of the Closing and, subject to the provisions of Section 5.1(e), any Contracts relating to the Business to which a Seller becomes a party in the Ordinary Course of Business between the date hereof and the Closing
(collectively, the “Assumed Contracts”) and, to the extent maintained by a Seller, all files, notes, books and records primarily related thereto; 

(ii) except for (i) each Seller’s Intercompany Receivables, (ii) rights with respect to payments pursuant
to Section 2.7 of the FMC APA, and (iii) Accounts 
  

 8 

 
Receivable from FMC and Spectrum Brands (a/k/a United Industries), all trade accounts receivable, notes receivable and other receivables due and payable to the Sellers and any security therefor
(the “Accounts Receivable”); 
 (iii) all inventories owned by Sellers, wherever located, including all
finished goods, work in process, and raw materials (excluding any finished goods inventory manufactured for FMC or Spectrum Brands (a/k/a United Industries) and any raw materials that are used exclusively for products manufactured for FMC or
Spectrum Brands (a/k/a United Industries)) (the “Inventory”); 
 (iv) subject to Section 2.2
hereof, the deposits, advances, pre-paid expenses and credits of the Sellers and used in the Business including without limitation those listed on Section 2.1(a)(iv) of the Seller Disclosure Schedule (the “Deposits”); 

(v) subject to Section 2.2(n), the equipment, machinery and other tangible personal property of the Sellers and used in
the Business, whether or not located at any Sellers’ location or any vendor, customer, or bailee of any Seller, including without limitation those listed on Section 2.1(a)(v) of the Seller Disclosure Schedule, together with all parts,
tools, spare parts and repair parts related thereto (the “Transferred Equipment”); 
 (vi) other than
to the extent, but only to the extent, relating to an Excluded Liability or Excluded Asset, all Sellers’ rights, claims, credits, causes of action or rights of set-off against third parties to the extent relating to the Business or affecting
the Acquired Assets, whether liquidated or unliquidated, fixed or contingent (“Business Claims”) and whether arising by way of counterclaim or otherwise and all third party guarantees thereof. Other than to the extent relating to Excluded
Liabilities or Excluded Assets, Business Claims shall include claims pursuant to all warranties, representations and guarantees made by suppliers, manufacturers, contractors and other third parties in connection with inventory, equipment, products
or services purchased by or furnished to a Seller for use in the Business or affecting any of the Acquired Assets; 

(vii) in accordance with Applicable Law and at such times as provided in the TSA (i) all Registrations used in the
operation of the Business including without limitation those identified on Sections 3.17(a) and 3.17(b) of the Seller Disclosure Schedule (excluding those EPA Registrations identified in Section 2.1(a)(vii) of the Seller Disclosure
Schedule) (ii) the Registration Data relating to the Registrations being transferred pursuant to Section 2.1(a)(vii)(i) hereof (and any associated rights to data compensation), and all applications, files, notes, lab notebooks, documents,
reports, data, books, records, and correspondence with Governmental Agencies relating to such Registrations and Registration Data (including, without limitation all documentation of the internal and external costs of studies, data, reports or
information), (iii) all other rights a Seller may have to Registrations used in the Business, and (iv) all other rights a Seller may have to the Registration Data or the use thereof relating to the Registrations being transferred pursuant
to Section 2.1(a)(vii)(i) hereof; 
  

 9 

 (viii) those transferable franchises, licenses, permits, consents,
approvals, registrations or other authorizations issued or granted by a Governmental Entity or to the extent not covered by the foregoing issued pursuant to any Applicable Law, (other than Registrations which are separately addressed), including
without limitation those that are listed on Section 2.1(a)(viii) of the Seller Disclosure Schedule (“Permits”) and, to the extent maintained by a Seller, all files, notes, books and records primarily related thereto; 

(ix) (i) to the extent related to the Acquired Assets and not (a) primarily relating to an Excluded Asset and/or an
Excluded Liability, relating to an Assumed Contract, Registration and Registration Data and/or a Permit (all of which are otherwise addressed herein) and (b) already included in Intellectual Property, all books and records related to or used in
connection with the Business, including, without limitation, (1) all records and lists of Sellers relating to the Acquired Assets and the Assumed Liabilities, (2) all records and lists relating to the Business, and customers, suppliers,
vendors, distributors or personnel of the Business, (3) all product, business and marketing plans, advertising and sales literature and promotional literature, sales and call reports relating to the Business, including product specifications
and material safety data sheets, and (4) all other books, ledgers, files, reports, plans, drawings and operating records, manuals and reports, notes, models, databases, sales and receivables history, other sales and purchase correspondence and
treatises and other publications of every kind maintained by Sellers in connection with the Business, and (ii)(a) copies of books and records which primarily relate to an Excluded Asset and/or an Excluded Liability but which also relate to or are
used in the Business, (the books and records and copies of books and records set forth in this Section 2.1(a)(ix)(i) and 2.1(a)(ix)(ii) being collectively referred to as the “Books and Records”), which, for purposes of clarity, shall
in all events exclude the originals of Sellers’ minute books, stock record books and Tax Returns; provided, that Sellers shall be permitted to retain a copy of the Books and Records for recordkeeping purposes and Buyers shall provide
Waterbury with copies of the Books and Records to the extent necessary to enable Waterbury to fulfill its obligations under the Transition Services Agreement; 

(x) all goodwill associated with the Business or the Acquired Assets; 

(xi) other than to the extent, but only to the extent, related to an Excluded Liability or Excluded Asset, all rights in
and under all express or implied guarantees, warranties, representations, covenants, indemnities and similar rights in favor of the Sellers with respect to the Business, any Acquired Asset or any Assumed Liability; 

(xii) all unfilled customer orders of the Business; 

(xiii) in the event of an Act of God between the date hereof and the Closing, all amounts recovered and recoverable under
the applicable insurance policies of Sellers including any property and casualty insurance related to the Acquired Assets, business interruption insurance (allocated between Buyers and Sellers at a ratio of the contribution margin of the products
included as part of the Acquired Assets to the 
  

 10 

 
contribution margins for the Business immediately prior to the date hereof) and other insurance policy and coverages; 

(xiv) to the extent such transfer is permitted under Applicable Law, but in each case as is, where is, without
representations, warranties or covenants of any kind, any rights of the Sellers under and pursuant to any employment or similar agreement with respect to non-solicitation, non-competition, non-disparagement and similar clauses to the extent related
to the Business (provided that notwithstanding anything herein to the contrary Buyers shall not assume any liability with respect to any officer or employee of any Seller other than Hired Employee Obligations to the extent, but only to the extent,
included in the Actual Final Net Working Capital and other than the Listed Employee Obligations) and Sellers’ rights under and pursuant to any non-competition or non-solicitation clauses or provisions in any other Contract; and 

(xv) that certain Indenture made the
4th day of February 2002 in Pursuance of the Short Forms
of Leases Act between Charlie Graci and Graziell Graci and 3974782 Canada Inc. (n/k/a as Air Guard Control (Canada) Ltd) as amended by that certain Renewal Agreement made as of March 1, 2010 (the “Canadian Lease”) and all of Air Guard
Canada’s real property rights and interests in and to the real property leased pursuant to the Canadian Lease. 
 (b) IP
Buyer agrees to purchase and acquire from Sellers and Sellers agree to grant, sell, assign, transfer, convey and deliver to IP Buyer, at the Closing (defined below in Section 2.6), in each case free and clear of all Liens, all of Sellers’
right, title and interest in and to all Intellectual Property used in whole or in part in the Business together with all Intellectual Property assignments, transfers and acknowledgments, other than the Excluded Intellectual Property
(“Transferred Intellectual Property”). 
 SECTION 2.2 Excluded Assets. Notwithstanding anything herein to the
contrary, each Seller will retain and will not transfer, convey, assign or deliver to Buyers, and Buyers will not acquire any right, title or interest in or to any of the following (all being the “Excluded Assets”): 

(a) the Excluded Contracts; 

(b) any Available Cash; 

(c) each Seller’s Intercompany Receivables or any other amounts owed to a Seller by one of its Affiliates, any unpaid interest or
fees accrued thereon or other amounts due with respect thereto, and any security or collateral therefor, including recoverable advances and deposits; 

(d) any life insurance policies covering officers and other employees of one or more of the Sellers and any other insurance policies
relating to the operation of the Business; 
 (e) all ownership and other rights with respect to any Employee Plans, including
assets held in trust or insurance contracts for the benefit of Employee Plan participants or beneficiaries, and amounts otherwise set aside or recorded as available for the payment of costs and benefits attributable to the operation of any Employee
Plans, and all employee 
  

 11 

 
advances owed to a Seller by its employees (including by each person who, following the Closing, is a Hired Employee); 

(f) any real property, whether owned or leased other than the real property rights under and pursuant to the Canadian Lease; 

(g) any refunds or credits, if any, of Taxes due to or from a Seller by reason of its ownership of the Acquired Assets or operation of
the Business to the extent attributable to any time or period ending at or prior to the Closing Date, the Sellers’ respective Tax identification numbers and Tax Returns; 

(h) any rights (including indemnification) and claims and recoveries under litigation of any Seller against third parties (other than
rights, claims and recoveries acquired by Buyers pursuant to Section 2.1(a)(vi) and other than pursuant to Section 2.1(a)(xiii)); 

(i) any personnel business records, and other business records (copies of which have been provided to Buyers), that a Seller is required
by law to retain in its possession, the Sellers’ respective minute books and the Sellers’ respective stock record books; 

(j) consideration to be received by any Seller, and each Seller’s other rights, under this Agreements and the Transaction Documents;

 (k) the Intellectual Property which is owned or licensed by a Seller and listed on Section 2.2(k) of the Seller
Disclosure Schedule and any rights with respect thereto, (collectively, the “Excluded Intellectual Property”); 
 (l)
the deposits, advances, pre-paid expenses and credits of the Sellers and used in the Business listed on Section 2.2(l) of the Seller Disclosure Schedule (the “Excluded Deposits”); 

(m) all right, title and interest to the Excluded Milestone Payments; and 

(n) furniture, machinery and equipment identified on Section 2.2(n) of the Seller Disclosure Schedule. 

 

 12 

 SECTION 2.3 Assumption of Liabilities. Except as provided herein, Buyers shall not
assume, in connection with the transactions contemplated hereby, any liability or obligation of Sellers whatsoever, and Sellers shall retain responsibility for all liabilities and obligations accrued on or prior to the Closing Date and all
liabilities and obligations arising from the Sellers’ operations on or prior to the Closing Date, whether or not accrued and whether or not disclosed. As the sole exceptions to the foregoing, but in any case subject to the limitations contained
in Section 2.4, upon the terms and subject to the conditions of this Agreement and in reliance upon the representations, warranties and agreements herein set forth, US Buyer agrees to assume from Waterbury and Canadian Buyer agrees to assume
from Air Guard Canada at Closing, and each agrees to thereafter perform and discharge, only the Liabilities identified specifically below (collectively, the “Assumed Liabilities”): 

(a) all liabilities and obligations of Sellers included in the Final Net Actual Working Capital, including all accounts payable and other
current liabilities, but excluding (i) any liabilities or obligations of a Seller to an Affiliate and (ii) trade and accounts payable for raw materials used exclusively in finished goods manufactured for FMC or Spectrum Brands (a/k/a
United Industries) and excluding that portion of the trade and accounts payable for raw materials used for finished goods manufactured for FMC or Spectrum Brands (a/k/a United Industries) and for other finished goods allocated based on the finished
goods inventory for FMC and Spectrum Brands (a/k/a United Industries) as of the Closing Date as a ratio of the total finished goods inventory for the Business as of the Closing Date; 

(b) to the extent not covered by Section 2.3 but in each case to the extent but only to the extent accrued in or reserved for in the
Final Actual Net Working Capital, (i) each Seller’s obligations with respect to the replacement of or refund for damaged, defective or returned goods of the Business sold by such Seller prior to the Closing; or (ii) Seller’s
obligations under, pursuant to, or with respect to any marketing fund, sales rebates, volume discounts or similar obligations; 

(c) all liabilities and obligations of Sellers under each Assumed Contract other than any liability or obligation resulting from, arising
out of, relating to, in the nature of, or caused by (A) tort, infringement or violation of Law occurring prior to or arising from facts, events, actions, or circumstances that occurred or failed to occur prior to the Closing Date; (B) any
breach by the Sellers of such Assumed Contract occurring prior to the Closing Date; (C) any facts, events, actions, or circumstances that occurred or failed to occur prior to the Closing Date which, with notice or passage of time, would result
in or give rise to a default or breach by Buyers of such Assumed Contract; and (D) any indemnification (or similar) obligation under and pursuant to Assumed Contracts to the extent arising from or relating to any facts, events, actions, or
circumstances that occurred or failed to occur prior to the Closing Date; 
 (d) all rent and other obligations of Air Guard
Canada under and pursuant to the Canadian Lease due and payable after the Closing Date; provided that Canadian Buyer (or any other Buyer) shall not assume any liability or obligation resulting from, arising out of, relating to, in the nature of, or
caused by (A) tort, infringement or violation of Law (including any Environmental Law) occurring prior to or arising from facts, events, actions, or circumstances that occurred or failed to occur prior to the Closing Date; (B) any breach
by the Sellers of the Canadian Lease occurring prior to the Closing Date; (C) any facts, events, actions, 
  

 13 

 
or circumstances that occurred or failed to occur prior to the Closing Date which, with notice or passage of time, would result in or give rise to a default or breach by Buyers of the Canadian
Lease; and (D) any indemnification (or similar) obligation under and pursuant to the Canadian Lease to the extent arising from or relating to any facts, events, actions, or circumstances that occurred or failed to occur prior to the Closing
Date; and 
 (e) all obligations in any way related to the termination or cessation of employment of any or all of the Canadian
Listed Employees, including without limitation such obligations arising out of such Canadian Listed Employees’ employment with Air Guard Canada (the “Listed Employee Obligations”). 

SECTION 2.4 Excluded Liabilities. Specifically, and without in any way limiting the generality of the first sentence of
Section 2.3, the Assumed Liabilities shall not include, and Sellers shall not assign to Buyers, and Buyers shall not assume, agree to pay, discharge or satisfy any of the following (collectively, the “Excluded Liabilities”): any of
Sellers’ Liabilities, or any of the costs, expenses, claims, losses or other obligations and liabilities related thereto, whether known or unknown, accrued, absolute, matured or unmatured, liquidated or unliquidated, known or unknown,
contingent, actual or otherwise, except for the Assumed Liabilities specifically enumerated in Section 2.3. For clarity, except to the extent an Assumed Liability, the Excluded Liabilities include, but are not limited to, the following:

 (a) other than the Hired Employee Obligations to the extent included in the Final Actual Net Working Capital and other than
the Listed Employee Obligations, (i) any Liabilities related to any Seller’s employees, officers, directors or stockholders, (ii) any Liabilities related to Sellers’ Employee Plans, including those under ERISA (whether or not
such liabilities arise prior to, on or following the Closing Date), or (iii) to the extent arising from Sellers’ actions, any WARN Act Liabilities (whether or not such liabilities arise prior to, on or following the Closing Date);

 (b) any Seller Liabilities relating to any violations or failure to comply with any Applicable Laws; 

(c) any Indebtedness of any Seller or any costs, expenses, or amounts necessary, required or incurred to remove or release any Lien on
any Acquired Asset; 
 (d) to the extent pertaining to any Excluded Assets; 

(e) except as provided in Section 2.3(d), any Seller Liability with respect to real property, whether owned or leased; 

(f) except as set forth in Section 2.3(b) hereof, relating to, resulting from, or arising out of, (i) claims made in pending or
future suits, actions, investigations or other legal, governmental or administrative proceedings or (ii) claims based on violations of law, breach of contract, employment practices or environmental, health and safety matters or any other actual
or alleged failure of Sellers to perform any obligation, in each case, to the extent, arising out of, or relating to, (x) events that shall have occurred, (y) services performed or (z) the operation of the Business, in each case,
prior to the Closing Date; 
  

 14 

 (g) any Liability arising from any claims, demands, suits, or causes of action for personal
injury arising from any product transferred, distributed, shipped or sold by a Seller prior to Closing; 
 (h) any Seller
Liability with respect to Taxes other than that portion of any of the Transfer Taxes Buyers have agreed to pay as provided in the first sentence of Section 9.1; 

(i) any Liability, whether currently in existence or arising hereafter, owed by any Seller to any of its Affiliates; 

(j) any Transaction Expenses; and 

(k) any liability associated with Seller Facilities, including without limitation Sellers’ past, current or future operations,
Sellers’ ownership of Seller Facilities, and Release of Hazardous Substances by Sellers, and/or Sellers’ compliance with or liability under Environmental Laws. 

To the extent, if any, that any Liability might be partly an Assumed Liability and partly an Excluded Liability, the apportionment of
such Liability shall be determined pursuant to equitable principles. Nothing set forth in the foregoing sentence shall be deemed to affect, amend, modify, supplement or otherwise change the definitions of Assumed Liabilities and Excluded
Liabilities. In no event shall any Buyer Indemnifiable Losses or Liabilities arising out of a Transaction Document (the responsibility for which is addressed in that Transaction Document) constitute Excluded Liabilities. In no event shall any Seller
Indemnifiable Losses or Liabilities arising out of a Transaction Document (the responsibility for which is addressed in that Transaction Document) constitute Assumed Liabilities. 

SECTION 2.5 Assignment of Contracts and Rights. 

(a) Except as provided in Section 5.4(b), with respect to any Assumed Contract and any claim, right or benefit arising thereunder or
resulting therefrom, promptly after the date hereof, to the extent required by the terms of the Assumed Contract, each Seller will use commercially reasonable efforts to obtain the written consent of the other parties to any such Assumed Contract
for the assignment thereof to Buyers in form and substance reasonably satisfactory to Buyers. 
 (b) If (i) such consent is
not obtained with respect to any such Assumed Contract and (ii) Buyers elect to waive the conditions in Section 6.2(d) with respect to such Assumed Contract and agree to consummate the Closing, applicable Seller and Buyers shall cooperate
in an arrangement reasonably satisfactory to Buyers and such Seller under which Buyers would obtain, to the extent practicable, the claims, rights and benefits with respect to such Assumed Contract and assume the Assumed Liabilities (but no Excluded
Liabilities) associated therewith and corresponding to the claims, rights and benefits obtained by Buyers. In such event, such Seller will promptly pay to Buyers all monies received by such Seller under any Acquired Asset or any claim, right or
benefit arising thereunder not transferred to Buyers pursuant to this Section 2.5. 
  

 15 

 SECTION 2.6 Closing. 

(a) The closing (the “Closing”) of the transactions contemplated by this Agreement shall take place at the offices of Reed
Smith LLP, 10 S. Wacker Drive, 40th Floor, Chicago, IL 60606, on the second Business Day after the last of the conditions to Closing set forth in Sections 6.1 and 6.2 have been satisfied or waived by the party or parties entitled to waive the
same or such other date as to which Buyers and Sellers may mutually agree, provided that the closing shall not occur prior to 12:01 a.m. on September 1, 2010. The date on which the Closing actually occurs is referenced herein as the
“Closing Date”. Other than for purposes of the representations and warranties set forth herein (and with respect to which the Closing shall be deemed effective as of the time the Closing is consummated) the Closing shall be deemed
effective as of the close of business (Eastern Time) on the Closing Date. 
 (b) At the Closing, Buyers shall deliver to the
Sellers such customary instruments of assumption as may be reasonably requested by Sellers to evidence the assumption of the Assumed Liabilities (the “Assumption Agreements”); provided, however, that no such documents shall
expand in any way any of Buyers’ obligations to assume anything other than the Assumed Liabilities. 
 (c) At the Closing,
Sellers shall deliver to Buyers such bills of sale, certificates of title, endorsements, assignments and other good and sufficient instruments of conveyance and assignment of such rights as may be reasonably requested by Buyers to vest in Buyers all
of the Sellers’ respective right, title and interest in, to and under the Acquired Assets (the “Assignment Agreements”), provided, however, that no such documents shall expand in any way the Acquired Assets being
assigned to Buyers hereunder. 
 SECTION 2.7 Purchase Price. 

(a) The consideration for the Acquired Assets (the “Purchase Price”) shall be 

(i) an amount equal to 

(A) Sixty-Six Million Dollars ($66,000,000.00) in cash (the “Closing Cash Payment”), 

plus or minus, as applicable, 

(B) the Net Working Capital Adjustment, if any (as defined and described below in Section 2.7(b)), and 

(ii) the amount of the Assumed Liabilities. 

The consideration for the Acquired Assets owned by Air Guard Canada shall be an amount equal to U.S. $4,000,000 of the Purchase Price plus
the amount of the Assumed Liabilities being assumed from Air Guard Canada as shown in the Closing Date Statement (the “Air Guard Canada Purchase Price”). The consideration for the assets of Air Guard Control and Waterbury shall be the
balance of the Purchase Price. 
  

 16 

 (b) The Purchase Price shall be reduced, dollar for dollar, by the amount, if any, by which
the Net Working Capital Target is greater than the Final Actual Net Working Capital (as defined below). The Purchase Price shall be increased, dollar for dollar, by the amount, if any, by which the Net Working Capital Target is less than the Final
Actual Net Working Capital. The amount by which the Purchase Price shall be reduced or increased in accordance with this Section 2.7(b) is herein referred to as the “Net Working Capital Adjustment”. 

(c) The Purchase Price shall be paid or satisfied at Closing per the direction of the Sellers as follows: 

(i) Buyers shall wire the Escrow Funds to the escrow account designated by the Escrow Agent pursuant to the Escrow
Agreement, to be distributed in accordance with the terms of the Escrow Agreement; 
 (ii) Buyers shall, on
behalf of Sellers, remit an amount equal to the amount of the Indebtedness of Sellers specified in the payment letters delivered to Buyers pursuant to Section 6.2(f)(vi) (the “Payoff Payment”) at least two (2) Business Days prior
to the Closing by wire transfer of immediately available funds in accordance with such payment letters; 
 (iii)
Buyers shall pay the balance of the Estimated Cash Payment (as defined below) by wire transfer of immediately available funds to an account or accounts designated by the Sellers by written notice delivered to Buyers at least two (2) Business
Days prior to the Closing; and 
 (iv) Buyers shall assume the Assumed Liabilities. 

For purposes of the Closing and not less than five (5) Business Days prior to the scheduled Closing Date, Sellers shall provide
Buyers with a good faith estimate of the Net Working Capital as of the Closing (“Sellers’ Net Working Capital Estimate”), and a calculation, as applicable, of the amount by which the Net Working Capital Target is greater than
Sellers’ Net Working Capital Estimate or the amount by which the Net Working Capital Target is less than the Sellers’ Net Working Capital Estimate. Buyers shall have three (3) Business Days to propose reasonable adjustments to
Sellers’ Net Working Capital Estimate in good faith (the Sellers’ Net Working Capital Estimate, as such amount would be adjusted per Buyers’ proposal, the “Buyers’ Net Working Capital Estimate”). 

If Sellers disagree with Buyers’ Net Working Capital Estimate, Sellers and Buyers shall negotiate in good faith to immediately
resolve any disputes regarding the estimated amount. The amount, if any, agreed to by Sellers and Buyers shall constitute the Estimated Net Working Capital. If Sellers and Buyers are unable to resolve the disagreement prior to the scheduled Closing
the Estimated Net Working Capital shall be the arithmetic average of the Sellers’ Net Working Capital Estimate and the Buyers’ Net Working Capital Estimate. 

The “Estimated Cash Payment” shall be an amount equal to the Closing Cash Payment minus the Escrow Funds, minus,
if applicable, the amount by which the Net Working 
  

 17 

 
Capital Target is greater than the Estimated Net Working Capital, plus, if applicable, the amount by which the Net Working Capital Target is less than the Estimated Net Working Capital.

 SECTION 2.8 Working Capital Adjustment. 

(a) On or about the Closing Date (but in no event more than five (5) days before the Closing Date), Buyers and Sellers agree that
Sellers’ representatives from McGladrey & Pullen, LLP shall conduct a physical inventory of the Business as of the Closing Date (the “Physical Inventory”), and Buyers and their representatives shall be allowed full,
unconditional observation rights of the Physical Inventory. As promptly as practicable after the Physical Inventory (but in no event later than sixty (60) days after the Closing Date), Sellers shall prepare and deliver to Buyers a statement
(the “Closing Date Statement”) setting forth a calculation, with reasonable supporting written documentation detail (including, but not limited to, supporting schedules setting forth in reasonable detail all assets and liabilities included
therein (including such detail regarding the Inventory) for the determination of Net Working Capital as of the close of business (Eastern Time) on the Closing Date (the “Actual Net Working Capital”). The Closing Date Statement shall be
prepared as of the close of business (Eastern Time) on the Closing Date in accordance with Exhibit B, or to the extent not addressed by Exhibit B, GAAP (as in effect as of the Closing Date). Until such time as the calculation of the
amounts shown on the Closing Date Statement is final, binding and conclusive on the Parties in accordance with this Section 2.8, Buyers and their accountants shall be permitted to discuss with Sellers and their accountants the proposed Closing
Date Statement, and shall be provided copies of, and have reasonable access, at the cost and expense of the Buyers, upon reasonable notice at times during normal business hours to, the work papers and supporting records of Sellers and their
Affiliates and their respective accountants so as to allow Buyers and their accountants to become fully informed concerning the preparation of the Closing Date Statement and the accounting procedures, methodologies, tests and approaches being used
in connection therewith. 
 (i) If Buyers have any objections to the Closing Date Statement as prepared by
Sellers (including objections to Inventory as determined by the Physical Inventory), Buyers shall, within sixty (60) days after Buyers’ receipt of the Closing Date Statement (the “Notice Period”), give written notice to Sellers,
which, to be effective, must set forth the specific line items in Sellers’ calculation of Actual Net Working Capital with which Buyers disagree and Buyers’ calculation of such line items and of Actual Net Working Capital together with
supporting schedules setting forth in reasonable detail all assets and liabilities included therein (the “Notice”). If Buyers do not deliver the Notice within the Notice Period, the Sellers’ calculations on the Closing Date Statement
shall be final, binding and conclusive on Sellers and Buyers. If Buyers provide a Notice to Sellers within the Notice Period, all calculations, terms, facts, amounts, valuations, and line items expressly set forth on the Closing Date Statement not
objected to in the Notice shall be final, binding and conclusive on Sellers and Buyers. If Buyers provide a Notice within the Notice Period, Sellers and Buyers shall negotiate in good faith during the thirty (30) day period after the date of
Sellers’ receipt of the Notice (the “Resolution Period”) to resolve any disputes regarding the amounts set forth in the Notice, which shall include each side exchanging in writing their positions concerning the matter or matters in
dispute and a meeting to discuss their respective positions. Any 
  

 18 

 
resolution by Sellers and Buyers as to any matters in dispute shall be final, binding and conclusive on the parties hereto. 

(ii) If Sellers and Buyers are unable to resolve all such disputes through good faith negotiations within the Resolution
Period, then Sellers and Buyers shall submit, within five (5) Business Days after the expiration of the Resolution Period, all unresolved disputes to an independent nationally recognized account firm mutually acceptable to Sellers and Buyers
(the “Neutral Accountant”), who Buyers and Sellers shall use their good faith efforts to engage as promptly as possible to provide a final, binding and conclusive resolution of all unresolved disputes. Within ten (10) days after the
Neutral Accountant is appointed, Buyers and Sellers shall each submit their respective calculations of the unresolved disputed items in the Notice together with work papers, calculations and other materials that such party has determined supports
such party’s calculation. The Neutral Accountant’s role shall be limited to resolving such disputed items in the Notice that have not been resolved by Buyers and Sellers. In resolving such objections, the Neutral Accountant shall calculate
such unresolved disputed items in the Notice in accordance with the terms and conditions of this Agreement including Exhibit B, provided that if any such calculation or item is not included on Exhibit B then it shall be calculated in
accordance with GAAP and the decision of the Neutral Accountant shall be solely based on (x) whether such item objected to was calculated in accordance with Exhibit B or GAAP, as applicable or (y) whether the item objected to
contains a mathematical or clerical error. The Neutral Accountant shall promptly provide written notice of its resolution of such objections to Buyers and Sellers and the resulting adjustments shall be deemed finally determined for purposes of
Section 2.8. The Neutral Accountant shall be instructed to use reasonable efforts to perform its services within thirty (30) days of submission of the Closing Date Statement and objection(s) to it and, in any case, as soon as practicable
after such submission. If the Neutral Accountant selected as described above is unable or unwilling to act when called upon pursuant to this Section 2.8, then the Parties shall jointly appoint a substitute to act in substitution for the
original designee, (or if no substitute is so appointed within fifteen (15) days after the Neutral Accountant notifies Buyers and Sellers of its inability or unwillingness to act, then such dispute shall be resolved by a single arbitrator
having financial accounting experience and having experience with working capital disputes and calculations similar to the provisions in this Agreement, sitting in Chicago, Illinois appointed by the American Arbitration Association upon application
by the Parties to be made within five (5) days thereafter), and, upon acceptance of such appointment, such substitute, or arbitrator so appointed, shall, for purposes of this Agreement, be deemed the Neutral Accountant, as applicable, and the
time periods prescribed above in this Section 2.8(a)(ii) shall run from the date of such substitute’s or arbitrator’s acceptance of appointment hereunder. The fees and expenses of the Neutral Accountant shall be borne by the Parties
in proportion to the amounts by which their proposals differed from the Neutral Accountant’s final determination. In connection with the resolution of any dispute, each of Sellers and Buyers shall pay its own fees and expenses, including
without limitation, legal, accounting and consultant fees and expenses. Notwithstanding anything to the contrary in this Agreement, any disputes regarding amounts shown in the Closing Date Statement shall be resolved as set forth in this
Section 2.8(a). The Actual Net Working Capital, as finally determined 
  

 19 

 
pursuant to this Section 2.8(a) shall be referred to herein as the “Final Actual Net Working Capital.” 

(b) Any differences between the Final Actual Net Working Capital and the Estimated Net Working Capital shall be paid as follows (any such
adjustment, the “Final Net Working Capital Adjustment”): 
 (i) If the Final Actual Net Working Capital
is greater than the Estimated Net Working Capital, then Buyers shall pay to Sellers an amount equal to the difference between the Final Actual Net Working Capital and the Estimated Net Working Capital. 

(ii) If the Final Actual Net Working Capital is less than the Estimated Net Working Capital, then Sellers shall pay to
Buyers an amount equal to the difference between the Final Actual Net Working Capital and the Estimated Net Working Capital. 

(c) Any payment required pursuant to Section 2.8(b) above (any “True-Up Payment”) shall include interest at the Prime Rate
from the Closing Date through the date of payment. Interest on any True-Up Payment shall be calculated monthly on a compounding basis assuming thirty (30) day months and three hundred sixty (360) day years. Undisputed True-Up Payments
shall be made within five (5) Business Days after delivery of the Notice (or, if no Notice is delivered within the Notice Period with respect to the amounts governing such True-Up Payment, then five (5) Business Days after the last day of
the Notice Period). Disputed True-Up Payments shall be made within five (5) Business Days after resolution during the Resolution Period or resolution by the Neutral Accountant, as applicable. All True-Up Payments shall be made by wire transfer
of immediately available funds to a bank account designated by the recipient party. 
 SECTION 2.9 Purchase Price
Allocations. 
 (a) The parties hereto shall allocate the purchase price for the Acquired Assets purchased by US Buyer and
IP Buyer, in accordance with the applicable provisions of Section 1060 of the Code and the Treasury regulations promulgated thereunder (the “U.S. Price Allocation”). 

(b) The parties hereto shall allocate the Air Guard Canada Purchase Price in accordance with the fair market value of each such Acquired
Asset sold by Air Guard Canada pursuant to this Agreement (“Canadian Price Allocation”). 
 (c) Within sixty
(60) days after the Closing, the Buyers shall provide Sellers with statements (“Price Allocation Statement”) containing Buyers’ proposed U.S. Price Allocation (“Price Allocation”). If Sellers do not notify the Buyers
that Sellers object to Buyers’ proposed Price Allocation within twenty (20) days after delivery thereof, Buyers’ proposed Price Allocation shall be deemed the Final Price Allocation. If within twenty (20) days after the delivery
of the Price Allocation Statement, Sellers notify Buyers that Sellers object to Buyers’ proposed Price Allocation contained in the Price Allocation Statement, Buyers and Sellers shall negotiate in good faith to resolve such dispute within
twenty (20) days of Buyers’ notification and the Price Allocation agreed to by Buyers and Sellers shall be deemed the Final Price 

 

 20 

 
Allocation. Each of Buyers and Waterbury shall prepare and timely file all Tax Returns, including, without limitation, IRS Form 8594 (and all supplements thereto) reflecting the Final Price
Allocation for the taxable year that includes the Closing Date and to make any timely filing required by applicable state or local laws. None of the Buyers and Sellers shall take any position inconsistent with the Final Price Allocation in the
preparation of financial statements, the filing of any Tax Returns or in the course of any audit by any Taxing Authority, Tax review or Tax proceeding relating to any Tax Returns. In the event that Buyers and Sellers are unable to agree to a Final
Purchase Price Allocation, there shall be no Final Purchase Price Allocation and the prior two sentences shall not apply. 
 (d)
Notwithstanding the foregoing, in the event that any Transfer Taxes (as defined in Section 9.1) are payable in respect of the Acquired Assets being sold by Air Guard Canada, Air Guard Canada and Canadian Buyer shall, no later than seven
(7) days prior to the date when such Transfer Taxes are required to be remitted or self-assessed, mutually agree on an allocation of the Purchase Price payable in respect of such Acquired Assets, including an allocation of such amount to the
Acquired Assets located in each Canadian province, to be used for calculating the amount(s) of Transfer Taxes to be remitted or self-assessed to the relevant Taxing Authority. 

(e) Prior to Closing, Air Guard Canada and Canadian Buyer shall agree on the Canadian Price Allocation, provided that if within ten
(10) days prior to the expected Closing Date, Air Guard Canada and Canadian Buyer do not so agree, they shall jointly hire a third party valuation firm to determine, prior to Closing, the Canadian Price Allocation (as agreed to or determined
pursuant to this Section 2.9(e) the “Final Canadian Price Allocation”). The parties shall allocate the Air Guard Canada Purchase Price in accordance with the Final Canadian Price Allocation. The parties shall not take any position
inconsistent with such allocation in the preparation of financial statements, the filing of any Tax Returns or in the course of any audit by any Governmental Entity, Tax review or Tax proceeding relating to any Tax Returns. 

SECTION 2.10 Adjustments. 

(a) Following Closing, Sellers shall pay to Buyers the cost of any and all returns received and refunds paid pursuant to
Section 5.17 to the extent, but only to the extent, the costs of such returns and refunds exceed the reserves for such returns and refunds and included in the Final Actual Net Working Capital. The costs of such returns shall be determined based
on the value of such inventory on and as of the Closing Date and the cost of such refunds shall equal the actual amount paid to such customer with respect to such refunds. 

(b) Following Closing, Sellers shall pay to Buyers an amount equal to the pro rata portion of any and all marketing allowances, sales
volume refunds and similar sales allowances and payments in excess of the aggregate of the accruals for such items included in the Final Actual Net Working Capital. The pro rata portion of such amounts shall be determined based on the ratio of the
pre-closing sales used to determine the amount of such allowances, refunds and payments to the total sales used to determine the amount of such allowances, refunds and payments. 

 

 21 

 (c) Any amounts due and payable hereunder shall be paid within ten (10) Business Days
of demand for the same by Buyers to Sellers. In making any such demand, Buyers shall provide Sellers with such calculations and information necessary to support such payments and Sellers shall have, upon reasonable notice at times during normal
business hours, access to such books and records of Buyers necessary to support the determination of the payments required pursuant to this Section 2.10. 

(d) Any adjustments made pursuant to this Section 2.10 shall for all purposes be considered an adjustment of the Purchase Price.

 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF SELLERS 

Except as set forth on the Disclosure Schedule attached hereto (the “Seller Disclosure Schedule”), the Sellers hereby represent
and warrant to Buyers, on a joint and several basis, that the following statements are true and correct as of the date of this Agreement: 

SECTION 3.1 Organization and Qualification. Each of Waterbury and Air Guard Control is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware. Air Guard Canada is a corporation incorporated, organized and subsisting under the laws of Canada. Each Seller has all corporate power and authority to own, lease and operate the
properties owned, leased and operated by it in the Business and to carry on the Business as now being conducted. Each Seller is duly qualified or licensed and in good standing to do business in each jurisdiction in which the property owned, leased
or operated by it in the Business or the nature of the Business makes such qualification or licensing necessary, except in such jurisdictions where the failure to be so duly qualified or licensed and in good standing would not have a Material
Adverse Effect. Each Seller has made available to Buyers a correct and complete copy of its articles of incorporation and by-laws (or similar governing documents), as currently in effect and its corporate record books with respect to actions taken
by its shareholders and board of directors (or similar governing body) since February 5, 2005. Section 3.1 of the Seller Disclosure Schedule contains a correct list of the jurisdictions in which any Seller is qualified or registered to do
business as a foreign corporation. Except as set forth on Section 3.1 of the Seller Disclosure Schedule, no Seller currently owns, directly or indirectly, any capital stock or other equities, securities or similar interests in any other
corporation, limited liability company, partnership, joint venture or other entity that is engaged in or conducts the Business. 

SECTION 3.2 Authorization. The execution, delivery and performance by each Seller of this Agreement and the Transaction Documents
and the consummation by each Seller of the transactions contemplated hereby and thereby are, or with respect to the Transaction Documents shall be as of the Closing Date, within each Seller’s corporate powers and authority and have been, or
with respect to the Transaction Documents shall be as of the Closing Date, duly and validly authorized by all requisite corporate action on the part of each Seller. This Agreement has been and the Transaction Documents shall be as of the Closing
Date duly and validly executed and delivered by each Seller and constitute (or when executed will constitute) the legal, valid and binding agreements of each Seller, enforceable against it in accordance with

  

 22 

 
their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to general
principles of equity. 
 SECTION 3.3 Financial Information. 

(a) Attached hereto as Exhibit E are true, correct and complete copies of the following information (collectively, the
“Financial Information”): the statements of contribution margin for the Business for the fiscal years ended December 31, 2008 and December 31, 2009 and the four-month period ending April 30, 2010, and schedule of working
capital for the Business as of the end of each month for each of the twelve (12) months prior to the date hereof and consolidating balance sheets for the Business dated December 31, 2009 and April 30, 2010. 

(b) Other than the manner in which it was formatted and classified and except as set forth on Section 3.3(b) of the Seller
Disclosure Schedule, the Financial Information has been prepared from the books and records of Sellers and in accordance with GAAP consistently applied during the periods presented. The Financial Information presents fairly, in all material
respects, the financial details regarding the Business, the contribution margins for the operation of the Business for the periods shown therein, and the assets and liabilities of the Business as of the date hereof. 

SECTION 3.4 Consents and Approvals; No Violations. 

(a) Except as set forth on Section3.4(a) of the Seller Disclosure Schedule or expressly contemplated by this Agreement or the Transaction
Documents (including, without limitation, filings pursuant to the HSR Act), and except as set forth on Schedule 6.2(c), no filing with or notice to, permit, authorization, consent, waiver or approval of any Governmental Entity is necessary for
the execution and delivery by the Sellers of this Agreement or any Transaction Document or the consummation by the Sellers of the transactions contemplated hereby or thereby. 

(b) Neither the execution, delivery and performance of this Agreement or the Transaction Documents by the Sellers nor the consummation by
the Sellers of the transactions contemplated hereby or thereby will (i) conflict with or result in any breach of any provision of the Certificate of Incorporation or Bylaws (or similar governing documents) of the Sellers, (ii) except as
set forth on Section 3.4(b) of the Seller Disclosure Schedule, result in a material breach of, constitute a material default under (with or without notice or lapse of time, or both), result in the acceleration of, create in any party the right
to modify in any material respect, accelerate, terminate or cancel, create in any party the right to encumber any of the Acquired Assets under, increase or accelerate any Assumed Liability under, or require any consent or approval of any Person
under, any Assumed Contract or (iii) violate any Applicable Laws applicable to the Sellers or any of the Acquired Assets or any Assumed Liability. 

SECTION 3.5 Litigation. 

(a) Except as set forth on Section 3.5(a) of the Seller Disclosure Schedule there is no claim, suit, demand, legal action,
proceeding or, to the Knowledge of Sellers, investigation pending, or to the Knowledge of Sellers threatened, before any Governmental 

 

 23 

 
Entity, against any Seller or relating to any of the Acquired Assets or which could reasonably be expected to prevent or delay the consummation of the transactions contemplated by this Agreement
in any material respect. The Sellers are not subject to any outstanding consent or administrative order, writ, injunction, decree judgment, injunction or award with respect to the Business (any “Litigation Action”) nor is any such
Litigation Action binding on any Acquired Asset or Assumed Liability or which could reasonably be expected to prevent or delay the consummation of the transactions contemplated hereby in any material respect. 

(b) Except as set forth on Section 3.5(b) of the Seller Disclosure Schedule there is no claim, suit, demand, legal action,
arbitration, proceeding or, to the Knowledge of Sellers, investigation, pending or, to the Knowledge of Sellers, threatened (other than, in each case, those before any Governmental Entity which are addressed in Section 3.5(a) hereof) directly
relating to, or involving, any Seller, any of the Acquired Assets, any Assumed Liability or the Business or which could reasonably be expected to prevent or delay the consummation of the transactions contemplated by this Agreement in any material
respect. 
 SECTION 3.6 Compliance with Applicable Law. Except as set forth on Section 3.6 of the Seller Disclosure
Schedule, Sellers are and have been at all times in the past five (5) years in material compliance with all Applicable Laws relating to the Business, and in the past five (5) years no Seller has been charged in writing with or received
written notice that it is under investigation with respect to, and, to the knowledge of the Sellers, no Seller is otherwise now under investigation with respect to, a material violation of any Applicable Law. 

SECTION 3.7 Compliance with Permits. Except with respect to Registrations (which are addressed in Section 3.17), between
them, the Sellers currently and at all times have filed all reports and hold all permits, licenses, variances, exemptions, orders, registrations, consents and approvals of all Governmental Entities necessary for the lawful conduct of the Business
(collectively, the “Seller Permits”). The Business is being conducted in all material respects in compliance with all Seller Permits and in all material respects with Applicable Laws relating to the Business. Section 3.7 of the Seller
Disclosure Schedule sets forth all the Seller Permits necessary for Air Guard Canada to conduct its business and operate at its current location. 

SECTION 3.8 Labor Matters. No Seller is a party to any collective bargaining agreement, contract or legally binding commitment to
any labor union or similar employee organization in respect of or affecting employees of the Business nor does any Seller know of any activities or proceedings of any labor union or similar employee organization to organize any such employees. No
Seller is currently engaged in any negotiation with any labor union or similar employee organization. No Seller has engaged in any unfair labor practice within the meaning of the United States National Labor Relations Act, and there is no pending
or, to the Sellers’ Knowledge, threatened complaint regarding any alleged unfair labor practices. There is no strike, labor dispute, work slow down or stoppage pending or, to the Sellers’ Knowledge, threatened against any of Sellers, and ,
since February 5, 2005, none of the Sellers have experienced any material work stoppage. Sellers are in compliance in all material respects with all Applicable Laws related to labor matters. 

 

 24 

 SECTION 3.9 Employee Plan Matters. Section 3.9 of the Seller Disclosure Schedule
sets forth a list of the ERISA-Type Plans sponsored or maintained by any Seller or to which any Seller is required to make contributions. In all material respects, each Employee Plan maintained or sponsored by a Seller for its employees or former
employees and subject to Title IV of ERISA or Section 412 or 430 of the Code has been maintained, funded and administered in accordance with its terms, ERISA, the Code or other Applicable Law. Except as disclosed on Section 3.9 of the
Seller Disclosure Schedule, no Employee Plan constitutes a “multiemployer plan,” as defined in Section 3(37) of ERISA, or a “defined benefit plan,” as defined in Section 3(35) of ERISA and is subject to Title IV of
ERISA. Each Employee Plan that is subject to the COBRA health continuation or similar state law has complied in all material respects with all applicable requirements of such laws. Buyers shall have no liability with respect to any of the
Sellers’ Employee Plans (except for Listed Employee Obligations and except to the extent of Hired Employee Obligations included in the Final Actual Net Working Capital). 

SECTION 3.10 Taxes. 

(a) All Tax Returns required to be filed by a Seller or otherwise in respect of the Business have been duly filed on a timely basis or
within appropriate extensions of time, and all such Tax Returns were when filed, and continue to be, correct and complete in all material respects. Except as set forth on Section 3.10 of the Seller Disclosure Schedule, all Taxes owed by any
Seller or otherwise relating to the Business (whether or not shown on any Tax Return) for any taxable period or portion thereof ending on or before the Closing Date have been timely paid or adequate provision has been or will be made therefor prior
to Closing. Except as set forth on Section 3.10 of the Seller Disclosure Schedule, no Seller currently is the beneficiary of any extension of time within which to file any Tax Return in respect of the Business. No Seller has received any
written claim or written notice of a proposed claim by any Governmental Entity in a jurisdiction where such Seller does not file Tax Returns that such Seller is or may be subject to taxation by that jurisdiction. No Seller has received written
notice of a proposed audit by any Governmental Entity in any jurisdiction where such Seller does not file Tax Returns. 
 (b)
All Taxes required to have been withheld or collected and paid prior to the date hereof in connection with amounts paid or owing to any employee, independent contractor, creditor, member, shareholder or any other third party, or otherwise in
connection with the Business have been withheld or collected and timely paid by or on behalf of the Sellers. 
 (c) There are no
Liens with respect to Taxes on any of the Acquired Assets, and no Seller has received any written notice that any such Liens are pending or threatened. 

(d) No proposed adjustment, claim, assessment, deficiency, audit, investigation, or administrative judicial proceeding involving any
Taxes or any Tax Return of any Seller relating to the Business has been asserted in writing, is pending or, to the knowledge of Sellers, has been threatened. 

(e) No Seller has waived any statute of limitations in respect of Taxes relating to the Business or agreed to any extension of time with
respect to any such Tax assessment or deficiency. 
  

 25 

 (f) None of the Acquired Assets owned by Waterbury directly or indirectly secures any debt
the interest on which is exempt from tax under §103(a) of the Code, and none of the Acquired Assets owned by Waterbury is “tax-exempt use property” within the meaning of §168(h) of the Code. 

(g) Sellers with respect to the Acquired Assets are not obligated to make any payments that will not be fully deductible under
Section 280G of the Code (or any similar provision of any Applicable Law) 
 (h) Air Guard Canada is not a non-resident of
Canada for purposes of section 116 of the Income Tax Act (Canada) (the “Tax Act”). 
 SECTION 3.11
Intellectual Property. 
 (a) Except as set forth on Section 3.11 of the Seller Disclosure Schedule, between them,
Sellers own and have good and exclusive title to, or hold licenses or other contractual rights to use (sufficient for the conduct of the Business as currently conducted) and have the valid and enforceable right to fully and completely assign,
transfer and convey, (i) each item of Transferred Intellectual Property, free and clear of any Liens, and (ii) those patents, pending patent applications, trademark registrations and pending trademark applications, copyright registrations
and pending copyright applications, and domain name registrations listed on Section 3.11 of the Seller Disclosure Schedule, free and clear of any Liens. Section 3.11 of the Seller Disclosure Schedule sets forth, to the extent used in or
held for use in the Business as it is currently being conducted, a list of all United States, international and foreign patents, pending patent applications, trademark registrations, pending trademark applications, service marks, pending service
mark applications, registered copyrights and applications for copyright registration, and domain name registrations. 
 (b)
Section 3.11 of the Seller Disclosure Schedule contains a true, correct and complete list of Sellers’ Software and Third Party Software excluding commercially available, off-the-shelf software programs licensed pursuant to shrink-wrap or
“click to accept” agreements having a license cost less than $1,000 per copy. To Sellers’ Knowledge, Sellers are in compliance with the material terms and conditions of all license agreements in favor of Sellers relating to Third
Party Software. 
 (c) All registration, annuity, maintenance, renewal and other fees required to maintain the patents, patent
applications, trademark registrations, trademark applications, domain names registrations and other forms of registered Intellectual Property included within the Transferred Intellectual Property are current and, except as set forth on
Section 3.11 of the Seller Disclosure Schedule, no such fees shall be due within three months following the Closing Date and to Sellers’ knowledge all legally necessary documents, recordations and certifications in connection with such
registered Intellectual Property included within the Transferred Intellectual Property have been filed with the relevant patent, copyright or trademark authorities. 

(d) Except as set forth on Section 3.11 of the Seller Disclosure Schedule, no action, suit, hearing, claim, demand or proceeding is
pending or, to the Sellers’ Knowledge, is any investigation pending, or, to the Sellers’ Knowledge, is any action, suit, hearing, claim, 

 

 26 

 
demand, proceeding, or investigation threatened, that challenges the legality, validity, enforceability, use, or ownership of the Transferred Intellectual Property. 

(e) To conduct the Business, as it is currently being conducted, no Seller requires any rights to any Intellectual Property that it does
not already own (or to which the applicable Seller has not already been granted a valid and existing license). Except as set forth on Section 3.11 of the Seller Disclosure Schedule, there are no pending or to Sellers’ knowledge, threatened
claims by any third party against any Seller alleging that its use of any Transferred Intellectual Property or the operation of the Business as it is currently conducted, or any act, product or service of the Business as it is currently being
conducted, infringes or misappropriates the Intellectual Property of any third party. To Sellers’ knowledge, the use of the Transferred Intellectual Property in, and the operation of, the Business as it is currently being conducted does not
infringe or misappropriate the Intellectual Property of any third party. 
 (f) Except as set forth on Section 3.11 of the
Seller Disclosure Schedule, to Sellers’ knowledge no Person is infringing or misappropriating any of the Transferred Intellectual Property or since February 5, 2005 has infringed or misappropriated any of the Transferred Intellectual
Property. 
 (g) Except as set forth on Section 3.11 of the Seller Disclosure Schedule, the Sellers have not granted any
license or made any assignment of any of the Transferred Intellectual Property, no Person jointly holds any rights with Sellers in the Transferred Intellectual Property and no Person other than the Sellers has any right to use any of the Transferred
Intellectual Property. 
 (h) Except as set forth on Section 3.11 of the Seller Disclosure Schedule, in the conduct of the
Business as it is currently being conducted, the Sellers do not pay any royalties or other consideration for the right to use any Transferred Intellectual Property. 

(i) The Sellers have no proprietary or confidential information relating to or affecting the Business as it is currently being conducted
that is owned or claimed by third parties and that is not rightfully in the possession of the Sellers, and the Sellers have complied in all material respects with all contracts and agreements governing the disclosure and use of proprietary or
confidential information relating to or affecting the Business as it is currently being conducted. 
 (j) Since February 5,
2005, to the extent that any Transferred Intellectual Property has been developed or created by a third party or any employee of Sellers, except as set forth on Section 3.11 of the Seller Disclosure Schedule, Sellers have a written agreement
with such third party or employee (as the case may be) with respect thereto and Sellers thereby either (i) have obtained ownership of and are the exclusive owner of, or (ii) have obtained a license (sufficient for the conduct of the
Business as currently conducted) to all of such third party’s or employee’s Intellectual Property rights in such work, material or invention. 

(k) The Sellers have used commercially reasonable efforts to maintain the confidentiality of all material trade secrets included within
the Transferred Intellectual Property to the extent necessary to maintain all proprietary rights therein. 
  

 27 

 (l) Since February 5, 2005, the products sold under any patents included in the
Transferred Intellectual Property include patent marking and notice in accordance with applicable patent marking laws and regulations, including without limitation 35 USC 287. 

SECTION 3.12 Inventory. All Inventory (the “Final Inventory”) is sufficient for the operation of the Business in the
Ordinary Course of Business, is of a quality, quantity and condition presently saleable (in the case of finished goods Inventory) or useable (in the case of other Inventory) in the Ordinary Course of Business, except for obsolete items and items of
below-standard quality, which as of the date hereof have been, or between the date hereof and the Closing will be reserved for or written down to net realizable value on the applicable Seller’s accounting records. Other than those items which
as of the date hereof have been, or between the date hereof and the Closing will in the Ordinary Course of Business of the Sellers be, as applicable, reserved for or written down to net realizable value on the applicable Seller’s accounting
records, and presuming the Final Inventory is utilized in the Ordinary Course of Business, none of the Final Inventory (a) is obsolete or (b) has been or, during the period commencing January 1, 2010 should have been, written down.
Presuming the Final Inventory is utilized in the Ordinary Course of Business, the quantities of each item of such Inventory are not excessive and are reasonable in the present circumstances of the Business. Presuming the Final Inventory is utilized
in the Ordinary Course of Business, all Final Inventory is free of any material defect or other material deficiency. Except as set forth on Section 3.12 of the Seller Disclosure Schedule, all of such inventory is located at a Seller facility
and no such inventory is held on a consignment basis. 
 SECTION 3.13 Brokers. Except as set forth on Section 3.13
of the Seller Disclosure Schedule, no broker, finder or investment banker is entitled to any brokerage, finders or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on
behalf of any Seller or any of its Affiliates. 
 SECTION 3.14 Assumed Contracts. Section 2.1(a)(i) of the Seller
Disclosure Schedule sets forth a correct and complete list of all Assumed Contracts. True, correct and complete copies of the Assumed Contracts (and written summaries of the terms of any oral Assumed Contract) and the Canadian Lease have been
provided to Buyers, together with all amendments, supplements or modifications thereto. The Canadian Lease and each Assumed Contract is legal, valid, binding and in full force and effect, except as to enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the rights and remedies of creditors generally and the general principles of equity. No Seller, nor to the Sellers’ Knowledge any other party thereto, is in default (nor has an event occurred or is a
condition existing (or, with respect to any counter party to any such Assumed Contract to the Sellers’ Knowledge has an event occurred or is a condition existing) that, with notice or lapse of time or both, would be reasonably expected to
constitute a default) in any material respects in the performance, observance or fulfillment of any obligation, covenant or condition contained in any Assumed Contract or the Canadian Lease. Each Seller has duly performed in all material respects
and is in compliance in all material respect with all its obligations under the Assumed Contracts and the Canadian Lease. No party with whom a Seller has entered into an Assumed Contract and nor the landlord with respect to the Canadian Lease has
given such Seller written notice that such party is terminating, rescinding or annulling such Assumed Contract or the Canadian Lease. Sellers are not participating in any discussions or negotiations regarding a material modification of or

  

 28 

 
material amendment to any Assumed Contract or the Canadian Lease, or entry into any new Assumed Contract, in either case outside the Ordinary Course of Business. 

(a) Except as set forth on Section 2.1(a)(i) of the Seller Disclosure Schedule, there are none of the following Contracts related to
the Business: 
 (i) Contracts providing for a commitment of employment or consultation services; 

(ii) Contracts (other than this Agreement) providing for the future disposition or acquisition of any assets or properties
(other than purchase orders providing for acquisition Inventory or supplies in the Ordinary Course of Business); 

(iii) Contracts with employees (other than Employee Plans); 

(iv) Contracts that confer rights to the Transferred Intellectual Property; 

(v) Contracts with any Person that provides distribution, dealer, representative or sales agency services for the
Business; 
 (vi) Contracts entered into outside the Ordinary Course of Business providing any party thereto
(other than a Seller) with indemnification rights; or 
 (vii) any joint venture or partnership agreement or any
co-marketing, co-licensing, co-branding or similar agreement or arrangement to which a Seller is a party or which is included in the Assumed Contracts. 

(b) Section 3.14(b) of the Seller Disclosure Schedule sets forth with respect to the Business and the Assumed Contracts each of the
following: 
 (i) all Contracts with any Person containing any provision or covenant prohibiting or materially
limiting the ability of a Seller (or any officer or employee of the Business) to engage in any business activity, hire employees, solicit potential customers or compete with any Person, including any non-competition, non-solicitation, exclusivity or
similar agreement; 
 (ii) all Contracts that are with any Governmental Entity related to the Business or the
Acquired Assets; 
 (iii) each manufacturing representation, sale representation, agency, sales brokerage, sales
agency or similar agreement; 
 (iv) any Assumed Contract pursuant to which a Seller has agreed to indemnify any
person; 
  

 29 

 (v) any supplier or vendor agreement for any materials, products or
Inventory listed on any Registration or included in or listed on any Confidential Statements of Formula; and 

(vi) any other supplier or vendor agreement for raw materials or supplies used in the operation of the Business that,
pursuant to the terms of any such agreement, involve the payment by a Seller of more than One Hundred Thousand Dollars ($100,000) annually or at any one time. 

SECTION 3.15 Title to and Adequacy of Assets. Except for the Excluded Assets, services to be provided pursuant to the Transition
Services Agreements and services to be provided by the Buyers and their Affiliates, the Acquired Assets constitute all of the assets, properties and rights, and upon Closing and sale of all such Acquired Assets to Buyers, Buyers will have all
assets, properties and rights, in each case, necessary and sufficient to conduct the operations of the Business in the Ordinary Course of Business. Except as set forth on Section 3.15 of the Seller Disclosure Schedule, the Sellers own (and
shall convey to Buyers at the Closing) good and marketable title, free and clear of all Liens, to all of the Acquired Assets. Each Seller’s machinery, equipment and other tangible personal or movable property and assets which are part of the
Acquired Assets are in good operating condition and repair, except for ordinary wear and tear, and are useable in the Ordinary Course of Business of such Seller. 

SECTION 3.16 Insurance. The Sellers have maintained since and now maintain (a) insurance on the Acquired Assets covering
property damage and loss of income by fire or other casualty, and (b) insurance protection against liabilities, claims, and risks, including, without limitation, product liability insurance, against which it is customary in the Business to
insure. To Sellers’ Knowledge, all insurance policies now maintained with respect to the Business and the Acquired Assets are, by their terms, in effect. 

SECTION 3.17 Registrations. 

(a) Section 3.17(a) of the Seller Disclosure Schedule sets forth a list of all Registrations owned and held by a Seller in
connection with the Business, and any supplemental distributor registrations held by a Seller, and further including identification of product name, registration number, the particular entity owns or holds such Registration and the expiration date
of such Registration (if any). Sellers have provided Buyers with true, correct and complete copies of all such Registrations, together with all amendments, supplements, and modifications thereto of which the Sellers have knowledge. 

(b) Section 3.17(b) of the Seller Disclosure Schedule sets forth a list of all Registrations outside the United States for which a
Seller is the beneficial but not nominal owner, including product name, registration number, the particular entity that owns or holds such Registration and expiration date of such Registration (if any). Each Seller has paid all maintenance and
similar fees to any Governmental Entity necessary to maintain each Registration active in each jurisdiction reflected on Sections 3.17(a) or 3.17(b) of the Seller Disclosure Schedule. 

 

 30 

 (c) Except as set forth on Section 3.17(c) of the Seller Disclosure Schedule, the
Sellers own all Registration Data or are currently authorized to rely on any such Registration Data owned by one or more third parties and have properly and fully compensated all third party owners of required Registration Data needed to support the
Registrations required to be listed on Sections 3.17(a) and 3.17(b) of the Seller Disclosure Schedule (the “Data Owners”). Except as set forth on Section 3.17(c) of the Seller Disclosure Schedule, no Seller has granted any
letters of access, license or other form of citation rights to any of the Registration Data. Each Registration has sufficient Registration Data to support the label claims currently made with respect to the products sold in the Business under such
Registrations. 
 (d) Each Seller owns, is the beneficial owner of, holds or owns a license or other contractual right to use in
the operation of the Business all Registrations that are necessary for it to conduct the Business and, to the extent not covered by the foregoing, the Registrations set forth on Section3.17(a) and 3.17(b) of the Seller Disclosure Schedule, free and
clear of all Liens, other than with respect to any Registration in which such Seller is a sub-registrant or “me-too” Registrant, Liens on those primary registrations owned or held by a Person other than a Seller. The Registrations owned
and held by the Sellers are valid and in full force and effect. Each Seller is in material compliance with the key terms of such Registrations. Each such Registration is, and the products manufactured pursuant thereto are, in compliance with
Applicable Law. Each Seller’s labels are in compliance with Applicable Law with respect to labels and labeling. 
 (e) Each
Seller has complied in all material respects with all requests or notices from any Governmental Entity sent to it for any modification, change or alteration to any Registration relating to the Business and except as set forth on Section3.17(e) of
the Seller Disclosure Schedule, to the Sellers’ Knowledge, there are no (i) pending notices or requests from any Governmental Entity for any modification, change or alteration to any Registration, or (ii)pending notices or requests from
any Governmental Entity requesting or requiring Sellers or any other Person to generate additional data to support any Registration, in either case where such Registration is required to be listed on Section 3.17(a) or Section 3.17(b) of
the Seller Disclosure Schedule. 
 (f) No Seller has, within the last three (3) years, received written notice of any
violation of, conflict with, failure to comply with the terms of, or any revocation, withdrawal, termination, cancellation, suspension or modification of, any Registration relating to the Business. No Seller is in default, nor has any Seller
received within the last three (3) years’ written notice of any claim of default, or stop sales order, with respect to any Registration directly relating to, the Business. 

(g) Except as set forth in Section 3.17(g) of the Seller Disclosure Schedule, the Sellers have not voluntarily or involuntarily
issued any recall, market withdrawal, safety alert, warning or any notice relating to an alleged lack of safety of its products or received any written notice of any claim against any of them relating to safety or the bodily injury, death or other
disability caused by the products manufactured, distributed or sold by or for the Sellers and, to the Sellers’ Knowledge, there are no facts or circumstances that would form a basis for any such claim or for any such recall, market withdrawal,
safety alert, warning or notice. The 
  

 31 

 
manufacture of the current products of the Sellers is being conducted in material compliance with current good manufacturing standards. 

(h) No Seller has received any notice from any vendor of any active, inert or other products or ingredients in any products that such
vendor cannot currently continue or will not be able to continue to supply any such products or ingredients. To the Knowledge of Sellers all such vendors and suppliers have timely responded to all requests or notices from any Governmental Entity
sent to it for any modification, change, alteration to or request for data or other information for any products or ingredients sold to Sellers. 

SECTION 3.18 Product Warranty. 

(a) Other than with respect to products returned in the Ordinary Course of Business, each product of the Business sold, distributed,
provided, shipped or licensed by a Seller, and each service rendered by a Seller, prior to Closing conformed in all material respects with all applicable contractual commitments, warranties and Applicable Law, and there are no material design,
manufacturing or other defects, latent or otherwise, in such products. With respect to each product of the Business sold, distributed, provided, shipped or licensed by a Seller prior to Closing, such products complied in all material respects with
requirements of Applicable Law relating to warning labels. 
 (b) Each Seller’s accounting records reflect adequate
reserves for product design and warranty claims and similar claims with respect to each product of the Business manufactured, sold, distributed, provided, shipped or licensed by such Seller, and each service rendered by such Seller, on or prior to
the date of such accounting records. Each Seller’s accounting records reflect or will reflect, as applicable, adequate reserves for such claims with respect to each product of the Business manufactured, sold, distributed, provided, shipped or
licensed by such Seller, and each service rendered by such Seller, prior to Closing. 
 (c) Section 3.18(c) of the Seller
Disclosure Schedule sets forth the return and refund policies of the Business pursuant to which any customer may return any product or pursuant to which Buyers may be required to accept returns or make refunds under and pursuant to
Section 5.17. 
 SECTION 3.19 Suppliers and Customers. Section 3.19 of the Seller Disclosure Schedule contains
a complete and accurate list of the ten (10) largest suppliers of the Business in the last fiscal year (the “Major Suppliers”) and of the Major Customers. To Sellers’ Knowledge, no event has occurred which would be reasonably
likely to materially and adversely affect Sellers’ relations with such Major Suppliers and Major Customers. To Sellers’ Knowledge, no Major Supplier has in the last twelve (12) months indicated to any Seller that it is considering
stopping or materially decreasing the rate of supplying materials, products or services to the Business. To Sellers’ Knowledge, no Major Customer of the Business has in the last twelve (12) months indicated to any Seller that it is
considering stopping or materially decreasing the rate of buying products from the Business. 
 SECTION 3.20 Accounts
Receivable. Sellers have delivered to Buyers a schedule of all accounts receivable showing the amount of each receivable and an aging of 

 

 32 

 
amounts due thereunder, which schedule is correct and complete as of [June 30, 2010]. No such sales were made pursuant to any discounts, rebates or allowances outside the Ordinary Course of
Business. All accounts receivable of the Sellers that are reflected in the Financial Information represent bona fide receivables and are valid obligations arising from sales actually made or services actually performed in the Ordinary Course of
Business. To Sellers’ knowledge, there is no contest, claim, defense or right of set-off, refund or adjustment, other than returns in the Ordinary Course of Business, of any account debtor relating to the amount or validity of any accounts
receivable reflected in the Financial Information. Sellers have not factored any of their accounts receivable. 
 SECTION 3.21
GST Registration. Air Guard Canada is registered for GST purposes under Part IX of the Excise Tax Act (Canada) and its GST registration number is 866370935. 

SECTION 3.22 Absence of Changes. Except as set forth on Section 3.22 of the Seller Disclosure Schedule, since April 30,
2010, Sellers have not with respect to the Business or the Acquired Assets: (i) sold, assigned, transferred, leased, exchanged or otherwise disposed of any of its properties or assets other than in the Ordinary Course of Business or where such
properties or assets were replaced with substantially equivalent properties or assets, (ii) except in the Ordinary Course of Business, made any general wage or salary increase, increased the compensation of any employee, entered into any
employment contract with any employee, or instituted any employee welfare, bonus, stock option, profit-sharing, retirement or similar plan or arrangement directly benefiting any such employee, (iii) suffered any damage, destruction or loss,
whether as the result of fire, explosion, earthquake, accident, casualty, labor trouble, requisition or taking of property by any government or any agency of any government, flood, windstorm, embargo, riot or act of God or the enemy, or other
similar casualty or event or otherwise (whether or not covered by insurance), (iv) entered into any transaction, contract or commitment outside the Ordinary Course of Business committing a Seller to make a capital expenditure in excess of
$25,000 in the aggregate, (v) terminated, discontinued, closed or disposed of any material business operation, (vi) entered into, materially amended or terminated any Contract with any Major Customer or any Major Supplier. 

SECTION 3.23 Transactions with Affiliates. Except as disclosed on Section 3.23 of the Seller Disclosure Schedule, Sellers are
not now, nor during the past three (3) years have been, parties directly or indirectly, to any contract, whether for the purchase, lease or sale of property, for the rendition of services or otherwise, with any Hired Employee or any
“associate” of any Hired Employee (as the term “associate” is defined in Rule 405 of the Rules and Regulations promulgated under the Securities Act of 1933, as amended), other than a contract which relates to or is entered into
in connection with the full or part time employment of an employee. Except as set forth on Section 3.23 of the Seller Disclosure Schedule, there are not now, nor for the past three (3) years have there been, any loans outstanding to any of
the Hired Employees from Sellers. 
 SECTION 3.24 Unlawful Benefits. Except as provided on Section 3.24 of the
Seller Disclosure Schedule, since February 5, 2005, no Seller or Person authorized to act on behalf of any of them, in connection with the conduct of the Business, directly or indirectly, has given, or has agreed to give, any significant gift
or similar benefit to any supplier, customer, or 
  

 33 

 
potential employee of the Business or any other Person who was, is or may be, in a position to help or hinder the Business under circumstances that involve a violation of any Law which was then
in effect and which could reasonably be expected to subject the Business or the Sellers to any damages or penalty in excess of $25,000. 

SECTION 3.25 Books and Records. The Books and Records of the Sellers, all of which Sellers have made available to Buyers, are, to
Sellers’ Knowledge, for all periods after February 5, 2005: (i) complete and correct in all material respects, (ii) reflect actual bona fide transactions or meetings of the respective shareholders, board of directors and
committees of the board of directors (or bodies acting in similar roles) and (iii) have been maintained in all material respects in accordance with Applicable Law and sound business practices 

SECTION 3.26 Personal Information Consents. Section 3.26 of the Seller Disclosure Schedule sets forth the purposes pursuant
to which any Seller collected Personal Information. 
 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF BUYERS 

Except as set forth on the Disclosure Schedule attached hereto (the “Buyer Disclosure Schedule”), Buyers hereby represent and
warrant to each Seller, on a joint and several basis that the following representations and warranties are true and correct as of the date hereof: 

SECTION 4.1 Organization. US Buyer is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. IP Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Canadian Buyer is a corporation incorporated by, organized and subsisting under the laws of the
Province of Québec. 
 SECTION 4.2 Authorization. The execution, delivery and performance by Buyers of this
Agreement and the Transaction Documents and the consummation by Buyers of the transactions contemplated hereby or thereby are, or with respect to the Transaction Documents shall be as of the Closing Date, within each Buyer’s corporate powers
and have been, or with respect to the Transaction Documents shall be as of the Closing Date, duly and validly authorized by all requisite corporate action on the part of each Buyer. This Agreement has been and the Transaction Documents shall be as
of the Closing Date duly and validly executed and delivered by Buyers and constitute the legal, valid and binding agreements of Buyers, enforceable against them in accordance with their respective terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to general principles of equity. 

SECTION 4.3 Consents and Approvals; No Violations. 

(a) Except as expressly contemplated by this Agreement or the Transaction Documents (including, without limitation, filings pursuant to
the HSR Act), no filing with or notice to, and no permit, authorization, consent, waiver or approval of, any Governmental Entity 

 

 34 

 
is necessary for the execution and delivery by Buyers of this Agreement or any of the Transaction Documents or the consummation by Buyers of the transactions contemplated hereby. 

(b) Neither the execution, delivery and performance of this Agreement or the Transaction Documents by Buyers nor the consummation by
Buyers of the transactions contemplated hereby or thereby will (i) conflict with or result in any breach of any provision of the Certificate of Incorporation or Bylaws (or similar governing documents) of Buyers, (ii) result in a material
breach of, constitute a material default under (with or without notice or lapse of time, or both), result in the acceleration of, create in any party the right to modify in any material respect, accelerate, terminate or cancel, or require any
consent or approval of any Person under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or other instrument or obligation to which Buyers are a party or are otherwise bound or
(iii) violate any Applicable Laws applicable to Buyers or any of their properties or assets. 
 SECTION 4.4 Financial
Ability. At the Closing, the Buyers will have the financial ability to fund the transactions contemplated by this Agreement through a combination of debt, equity issuances and/or cash. 

SECTION 4.5 Brokers. Except as set forth on Schedule 4.5, no broker, finder or investment banker is entitled to any
brokerage, finders or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyers or any of their Affiliates. 

SECTION 4.6 Litigation. There is no suit, claim, or action, or, to the knowledge of Buyers, proceeding or investigation, pending,
or, to the knowledge of Buyers, any suit, claim, action, proceeding or investigation threatened, against any Buyer or which could reasonably be expected to prevent or delay the consummation of the transactions contemplated by this Agreement in any
material respect. 
 SECTION 4.7 GST Registration. Canadian Buyer is registered for GST purposes under Part IX of the
Excise Tax Act (Canada) and its GST registration number is 121602353RT0005. 
 SECTION 4.8 Personal Information.
To the extent that Buyers have been given access to Personal Information in the custody or control of one or more of the Sellers prior to the date hereof, Buyers have not used or disclosed any such Personal Information for any purposes other than
purposes that directly relate to the transactions contemplated hereby. 
 ARTICLE 5 

COVENANTS 

SECTION 5.1 Conduct of the Business. From the date hereof until the Closing Date, each Seller shall, except as expressly required
hereby, disclosed on Schedule 5.1, or otherwise consented to in advance in writing by Buyers: 
  

 35 

 (a) conduct the Business in the Ordinary Course of Business on a basis consistent with past
practice and not engage in any new line of business or enter into any agreement, transaction or activity or make any commitment with respect to the Business or the Acquired Assets, or the Assumed Liabilities except those in the Ordinary Course of
Business and not otherwise prohibited under this Section 5.1; 
 (b) use its commercially reasonable efforts to preserve
intact the goodwill and business organization of each Seller, provided, however, than in no event shall the foregoing require any Seller to expend funds outside the Ordinary Course of Business; 

(c) duly and timely file or cause to be filed all reports and returns required to be filed with any Governmental Entity and promptly pay
or cause to be paid when due all Taxes, assessments and governmental charges, including interest and penalties levied or assessed, unless diligently contested in good faith by appropriate proceedings; 

(d) except as may be required as a result of a change in law or in GAAP, not change any of the accounting principles or practices used by
it; 
 (e) except as otherwise provided herein, not amend any Assumed Contract in a material manner, nor enter into any new
Contract that would constitute an Assumed Contract which would have to be scheduled on Section 3.14 of the Seller Disclosure Schedule, in either case outside the Ordinary Course of Business, unless such Assumed Contract can be cancelled by
Sellers without penalty on thirty (30) days’ notice; 
 (f) notwithstanding the provisions of Section 5.1(e), not
enter into any new Contract that would constitute an Assumed Contract the terms of which would prohibit, restrict or limit access to, review by or disclosure to Buyers of such Contract; 

(g) not amend the Canadian Lease; 

(h) not increase any Hired Employee’s compensation; 

(i) not, with respect to the Business or the Acquired Assets, (A) sell, assign, transfer, lease, exchange or otherwise dispose of
any of its properties or assets other than in the Ordinary Course of Business or where such properties or assets are replaced with substantially equivalent properties or assets, (B) except in the Ordinary Course of Business or as necessary for
compliance with Applicable Law, enter into, amend or terminate employee welfare, bonus, stock option, profit-sharing, retirement or similar plan or arrangement directly benefitting any Hired Employee, (C) enter into any transaction, contract or
commitment intended to be an Assumed Contract or Assumed Contracts committing Sellers in the aggregate to make capital expenditures in excess of $25,000 or (D) terminate, discontinue, close or dispose of any material business operation;

 (j) not dispose of or permit to lapse any right to the use of any Transferred Intellectual Property, or dispose of, or
disclose to any Person (other than to a Seller’s employees, legal counsel, Seller’s customers permitted to use Seller’s labels, or the Persons to whom such Intellectual Property will be licensed pursuant to the IP License Agreement),
any trade secret, 
  

 36 

 
formula, process, technology or know-how of Sellers or the Business not heretofore a matter of public knowledge; and 

(k) not authorize, or commit or agree to take, any of the foregoing actions which are prohibited or restricted hereunder. 

SECTION 5.2 Access to Information. 

(a) Prior to the Closing, Buyers and Buyers’ representatives shall contact and communicate with the employees, customers, suppliers
and other business relations of each Seller in connection with the transactions contemplated hereby only with the prior written consent of such Seller which consent shall not be unreasonably withheld, conditioned or delayed. Between the date hereof
and the Closing Date, each Seller will provide Buyers and their authorized representatives with reasonable access during normal business hours and upon reasonable prior notice to the facilities, senior management, Books and Records of the Business
and, subject to the immediately preceding sentence, the employees of the Business, provided that (i) Buyers agree that such access will give due regard to minimizing interference with the operations, activities and employees of such Seller and
(ii) such access and disclosure would not violate the terms of any agreement by which such Seller is bound or any Applicable Law, and Sellers shall provide electronic copies of such Books and Records to Buyers for integration planning and to
facilitate the post closing transition 
 (b) Between the date hereof and the Closing Date, each Seller shall promptly furnish
to Buyers and their authorized representatives such financial, technical and operating data and other information with respect to the Business and properties thereof or the Acquired Assets as Buyers may from time to time reasonably request.

 (c) Buyers acknowledge that they remain bound by that certain Confidentiality Agreement between Zep Inc. and Watco
International Holdings Corp. dated May 27, 2010 (the “Confidentiality Agreement”). 
 (d) To the extent that
Buyers are given access to Personal Information in the custody or control of a Seller during the period leading up to and including Closing, Buyers shall not use or disclose such Personal Information for any purpose other than purposes that directly
relate to the transactions contemplated hereby. 
 SECTION 5.3 Exclusive Dealing. During the period from the date of this
Agreement through the earlier of the Closing Date or the termination of this Agreement pursuant to Section 7.1, the Sellers shall not take, nor will the Sellers permit any of their Affiliates or representatives, directly or indirectly, through
any officer, director, manager or agent of them or otherwise, to take, any action to solicit, initiate, engage, encourage (including by way of furnishing non-public information or assistance) or enter into discussions or negotiations with, or enter
into any confidentiality agreement, letter of intent, purchase agreement or similar agreement with, any Person (other than Buyers, their Affiliates and their respective representatives) concerning any proposal that constitutes, or could reasonably
be expected to lead to, a proposal to acquire all or any portion of the Acquired Assets (other than assets sold in the Ordinary Course of Business) (“Acquisition Proposal”). Each Seller agrees to promptly

  

 37 

 
notify Buyers should it be contacted in any regard by any Person with respect to any actual or potential Acquisition Proposal. 

SECTION 5.4 Approvals and Consents. 

(a) The parties hereto shall use their respective commercially reasonable efforts, and shall cooperate with each other, to promptly make
all filings with, provide notices to, obtain all consents, waivers, approvals, authorizations and permits that is required or reasonably appropriate in connection with the consummation of the transactions contemplated hereby, including, without
limitation, (i) those to be made with, provided to or obtained from any Governmental Entity and (ii) those to be made with, provided to or obtained from any party to any Contract listed on Schedule 6.2(d). 

(b) Buyers shall use their commercially reasonable efforts to cause the conditions set forth in Section 6.1 to be satisfied and to
consummate the transactions contemplated herein, provided that, except as expressly set forth herein, no Buyer or its Affiliates shall be required to expend any funds to obtain any consents, waivers, permits, registrations, authorizations and
approvals of Governmental Entities. Each Seller shall use its commercially reasonable efforts to (i) cause the conditions set forth in Section 6.2 to be satisfied and to consummate the transactions contemplated herein and (ii) to
amend each of the sales representative agreements, in a form and substance reasonably acceptable to Buyers, to provide that the exclusive rights of such sales representative applies only to products of Sellers as of the date of this Agreement and,
if not already provided in such agreement, imposing non-competition obligations on such sales representative, provided that, except as expressly set forth herein, no Seller shall be required to expend any funds to obtain any consents, waivers,
permits, registrations, authorizations and approvals of Governmental Entities set forth on Schedule 6.2(c). 
 SECTION 5.5
Additional Agreements. From time to time, as and when requested by any party hereto and at such party’s expense, any other party(ies) hereto shall execute and deliver, or cause to be executed and delivered, all such documents and
instruments and shall take, or cause to be taken, all such further or other actions as the requesting party may reasonably deem necessary or desirable to evidence and effectuate the transactions contemplated by this Agreement. 

SECTION 5.6 Employee Benefits. 

(a) Offer of Employment. Each Buyer shall offer employment, commencing on the Closing Date, to the employees of the Business
listed across such Buyer’s name on Exhibit D hereto (“Listed Employees”), which offers for U.S. Hired Employees shall be at such locations and on such terms and conditions as may be determined by the Buyers or their
Affiliates in their discretion and with respect to Canadian Hired Employees, which offers shall be no less favorable to such employee in the aggregate as the terms and conditions of employment for such employees as of the date hereof; provided that
nothing herein shall cause or require the Buyers to assume or adopt any pension or similar plan of any Seller or create any Employee Plan. The parties hereto shall cooperate in each such Buyer’s efforts to make such offers. Those employees who
accept a Buyer’s offer of employment and become employed by Buyers shall hereafter be referred to as “Hired Employees”. Buyers shall recognize the past 

 

 38 

 
services of U.S. Hired Employees with Sellers for (i) purposes of eligibility and vesting credit (but not for the purposes of benefit accrual or rate of benefit accrual) under employee
benefit plans (but not including any equity-based compensation plan) sponsored by Buyers, (ii) years of service for any severance policy of Buyers, and (iii) Buyers’ vacation policy. Buyers shall, with respect to employees of Air
Guard Canada, recognize the Hired Employees’ years of service for any severance policy of Buyers and for any other purposes as required by Applicable Law. 

(b) Actions Prior to Closing. Prior to, or in connection with, the Closing, Buyers shall take no action to cause any Seller or the
Business to terminate the employment of any employee of the Business (other than in connection with the retention or relocation of any Hired Employee), and no Sellers nor the Business shall be under any obligation to terminate any employee of the
Business prior to or on the Closing Date. 
 (c) Actions After Closing. After the Closing, each Seller shall have full
responsibility for any employment decisions regarding staff who are not Hired Employees. Buyers shall be responsible only for those employees who are Hired Employees, and subject to the first sentence of Section 5.6(a), shall have the full
discretion to determine the terms and conditions of employment for the Hired Employees. Expenses and benefits with respect to claims incurred by Hired Employees or their covered dependents on or after the Closing Date shall not, except to the extent
provided in Section 5.6(d) or required under the applicable Employee Plan or Applicable Law, be the responsibility of any Seller (or of any Employee Plan maintained by any Seller), but shall be the responsibility of Buyers to the extent such
claims are covered under any Employee Plan maintained by Buyers in which the Hired Employee is then participating. For purposes of this Section 5.6(c), a claim is deemed incurred when the services that are the subject of the claim are
performed; in the case of life insurance, when the death occurs; in the case of long-term disability benefits, when the disability occurs; and, in the case of a hospital stay, when the individual first enters the hospital. Notwithstanding the
foregoing, each Seller shall be solely responsible for any obligations of such Seller to provide retiree life insurance, retiree medical, and retiree dental benefits to employees of the Business who are entitled to such benefits prior to the Closing
and who were covered under retiree welfare programs of such Seller as of the Closing, and to their covered dependents. 
 (d)
COBRA. After the Closing Waterbury shall continue to maintain its group health plan for a limited period of time. Until termination of Waterbury’s group health plan, Waterbury shall be solely responsible for any legally mandated
continuation of health care coverage for any “M&A qualified beneficiary” and/or their dependents who are covered by any Employee Plan before or at the Closing, and for satisfaction of any related notice requirements. Upon termination
of Waterbury’s group health plan, US Buyer shall be responsible for any legally mandated continuation of health care coverage for “M&A qualified beneficiaries”, in accordance with Treas. Reg. § 54.980B-9, Q&A 8(c). For
purposes hereof, each of “M&A qualified beneficiary,” “group health plan” and “qualifying event” shall have the meaning ascribed thereto in Section 4980B of the Code. 

(e) No Third-Party Beneficiary. Except as specifically provided, no provision of this Agreement shall create any third-party
beneficiary rights in any person or organization, including without limitation employees or former employees (including any beneficiary or dependent thereof) of a Seller, unions or other representatives of such employees or former

  

 39 

 
employees, or trustees, administrators, participants, or beneficiaries of any Employee Plan of Seller, and no provision of this Agreement shall create such third-party beneficiary rights in any
such person or organization in respect of any benefits that may be provided, directly or indirectly, under any Employee Plan of a Seller, including the currently existing Employee Plans of Sellers. 

SECTION 5.7 Public Announcements. Prior to Closing, the parties hereto will agree on a communications plan regarding the timing
and content of the public announcement on the Closing Date of the transactions contemplated hereby. From and after the date hereof and prior to and in connection with the Closing, no public release or announcement concerning the transactions
contemplated hereby shall be issued by any party hereto without the prior written consent of the other party(ies) hereto (which consent shall not be unreasonably withheld or delayed), except as such release or announcement may be required by law or
the rules or regulations of any United States or non-United States securities exchange, in which case the party required to make the release or announcement shall allow the other party(ies) reasonable time to comment on such release or announcement
in advance of such issuance. 
 SECTION 5.8 Regulatory Filings. Not later than July 30, 2010, the applicable
Buyer(s) shall, on the one hand, and the applicable Seller(s) shall, on the other, make any and all filings, notifications and related materials which are required under the HSR Act with the United States Federal Trade Commission (the
“FTC”) and the Antitrust Division of the United States Department of Justice (the “DOJ”), and with any other Governmental Entities pursuant to any other antitrust Applicable Laws with respect to the transactions contemplated by
this Agreement. The applicable Seller(s) shall furnish to the applicable Buyer(s), and the applicable Buyer(s) shall furnish to the applicable Seller(s), such necessary information and reasonable assistance as the other(s) may request in connection
with its preparation of any filing or submission that is necessary under the HSR Act or any other antitrust Applicable Laws. The applicable Seller(s) shall promptly inform the applicable Buyer(s), and the applicable Buyer(s) shall promptly inform
the applicable Seller(s), as to any communications with, and any inquiries or requests for additional information from, any Governmental Entity in connection with the foregoing, and subject to Applicable Law, shall provide the other parties with a
copy of any written communication to the foregoing, and each party hereto shall comply as promptly as possible with any such inquiry or request. No party shall participate in any substantive meeting or discussion with any Governmental Entity in
respect of any filing, investigation or inquiry concerning antitrust matters related to the consummation of the transactions contemplated by this Agreement unless it consults with the other parties hereto in advance and, to the extent permitted by
such Governmental Entity, gives the other parties hereto the opportunity to attend and participate in such meeting or discussion. Buyers and Sellers hereby covenant and agree to use commercially reasonable efforts to secure early termination or
expedited review of any waiting periods under the HSR Act, to obtain the approval of any Governmental Entity necessary to consummate the transactions contemplated hereby and to resolve such objections, if any, as may be asserted by any Governmental
Entity with respect to the transactions contemplated hereby provided that, notwithstanding anything herein to the contrary, neither Buyers nor Sellers shall be required to file suit, defend or take any other legal action in order to obtain any
necessary approvals. No party hereto shall extend any waiting period under the HSR Act or enter into any agreement with the FTC or the DOJ not to consummate the transactions contemplated by this Agreement, except with the prior written consent of
the other parties hereto, which consent shall not be 
  

 40 

 
unreasonably withheld or delayed. All filing fees required in connection with the filing of any notifications and related materials that are required under the HSR Act shall be borne by Buyers
(the “HSR Filing Fees”). Notwithstanding anything to the contrary contained in this Agreement, in connection with any filing or submission required or action to be taken by Buyers to consummate the transactions contemplated herein, in no
event shall Buyers be obligated to propose or agree to accept any undertaking or condition, to enter into any consent decree, to make any divestiture or accept any operational restriction, or take or commit to take any action that, in the reasonable
discretion of Buyers, could be expected to limit (i) the freedom of action of Buyers with respect to the operation of, or Buyers’ ability to retain, the Acquired Assets, or (ii) the ability to retain, own or operate any portion of the
businesses, product lines, or assets, of Buyers or their Affiliates, or alter or restrict in any way the business or commercial practices of Buyers or their Affiliates. 

SECTION 5.9 Noncompetition Provisions. 

(a) (i) Each Seller and Watco hereby agrees that, during the period beginning on the Closing Date and ending on the date that is five
(5) years following the Closing Date (the “Seller Non-Competition Period”), it will not, and will not cause, permit or assist any of its directors, officers, employees, agents or Direct Affiliates to, either directly or indirectly
(including by way of sale or distribution of products to other Persons who re-sell or distribute such products on such Seller’s or any of its Direct Affiliates behalf), do any of the following without the prior written consent of Buyers (it
being understood and agreed that Waterbury’s fulfillment of its obligations under the Transition Services Agreements shall not constitute a breach of this Section 5.9): other than as a holder of less than one percent (1%) of the
outstanding securities of any class of any publicly-traded securities of a company that is engaged in a Worldwide Competitive Business, engage, directly or indirectly, as an owner, equity holder, member, lender, partner, co-venturer, director,
officer, employee, agent, consultant, service provider or otherwise in any business that competes with the Business in the territories and countries where Sellers currently conduct the Business or through the Business otherwise sell products and
services (a “Worldwide Competitive Business”). 
 (ii) Each Seller and Watco hereby agrees that, during
the Seller Non-Competition Period, it will not, and will not cause, permit or assist any of the P&L Companies to, either directly or indirectly (including by way of sale or distribution of products to other Persons who re-sell or distribute such
products on such Seller’s or any of the P&L Companies’ behalf), do any of the following without the prior written consent of Buyers: other than as a holder of less than one percent (1%) of the outstanding securities of any class
of any publicly-traded securities of a company that is engaged in a North American Competitive Business, engage, directly or indirectly, as an owner, equity holder, member, lender, partner, co-venturer, director, officer, employee, agent,
consultant, service provider or otherwise in any business that competes with the Business in North America (a “North American Competitive Business”). 

(iii) Each Seller hereby agrees that, during the Seller Non-Competition Period, it will not, and will not cause, permit or
assist any of its directors, officers, employees, agents or Direct Affiliates or the P&L Companies to, and each of Watco, WPP V and WPP EAP hereby agrees that, during the Seller Non-Competition Period, it

  

 41 

 
will not and will not cause, permit or assist any of its directors, officers, employees, or agents, or the P&L Companies to, or encourage, instruct or assist any of their respective direct or
indirect subsidiaries or affiliates, to either directly or indirectly, do any of the following without the prior written consent of Buyers: during the term of any Hired Employee’s employment with a Buyer and during the six month period
following the termination of such employment, solicit for employment, employ or retain, or arrange to have any other Person solicit for employment, employ or retain, any Hired Employee. 

For purposes of clarity, unless such customers are doing so at a Seller’s direction, with a Seller’s assistance, or otherwise
on a Seller’s behalf, a Seller shall not be deemed to have breached this Section 5.9 in the event that any of its customers take any action such Seller is prohibited to take under this Section 5.9; provided the same is not done with
the assistance, encouragement or advice of the Sellers otherwise in violation of this Section 5.9. Moreover, for further purposes of clarity, the fact that Watco and Waterbury Companies Acquisition Corp., a Delaware corporation have ownership
interests in the P&L Companies shall not, in and of itself, be deemed a breach of Section 5.9(a)(i) but nothing in this sentence shall permit Watco or Waterbury from providing advice or assistance otherwise in violation of
Section 5.9(a)(i). 
 (b) Except (i) in Waterbury’s fulfillment of its obligations under the Transition Services
Agreements (and in such instance, only on a need-to-know basis), (ii) as contemplated by this Agreement and (iii) as permitted by the IP License Agreement each Seller hereby further agrees that during the Non-Competition Period, it will
not, and will not cause or give permission to any of its directors, officers, employees, agents or Direct Affiliates, or to any of its Affiliates to whom it has provided any Buyer Confidential Information, either directly or indirectly, in any
capacity whatsoever, to divulge, disclose or communicate to any Person not subject to obligations of confidentiality in favor of Buyers at least as stringent as those contained herein any Buyer Confidential Information (as defined below). Each
Seller agrees that “Buyer Confidential Information” includes but is not limited to: (A) any financial, business, planning, operations, services, potential services, products, potential products, technical information and/or know-how,
formulas, production, purchasing, marketing, sales, personnel, customer, broker, supplier, or other information of Buyers and/or Buyers’ business (including, after Closing, the Business and the Acquired Assets); (B) any papers, data,
records, processes, methods, techniques, systems, models, samples, devices, equipment, compilations, invoices, customer lists, or documents of the Business, or of Buyers and/or Buyers’ business; (C) any confidential information or trade
secrets of or related to the Business or Buyers and/or Buyers’ business; and (D) any other information, written, oral, or electronic, whether existing now or at some time in the future, whether pertaining to current or future developments,
which pertains to the affairs or interests of the Business, the Buyers and/or Buyers’ business, but shall in no event include information which is or becomes generally available to the public other than as a result of a breach of this Agreement
by a Seller (or any of its directors, officers, employees, agents or Affiliates). Each Seller shall be permitted to disclose Buyer Confidential Information as may be required by Applicable Law, subject to promptly providing Buyers with prior notice
of such required disclosure and an opportunity to request protection from the relevant Governmental Entity within ten (10) Business Days of such notice (or such shorter period required by Applicable Law or order of the relevant Governmental
Entity). 
  

 42 

 (c) Except (i) in fulfilling such Seller’s and its Direct Affiliates’
obligations under the Transition Services Agreements (and in such instance, only on a need-to-know basis), (ii) as contemplated by this Agreement and (iii) as permitted under the terms of the IP License Agreement, each Seller hereby agrees
that it will not, and will not cause or give permission to any of its directors, officers, employees, agents or Direct Affiliates or any of its other Affiliates to whom it has provided any unpublished Transferred Intellectual Property, either
directly or indirectly, in any capacity whatsoever, to divulge, disclose, use, or communicate to any Person not in the employment of Buyers any unpublished Transferred Intellectual Property. Each Seller and its Affiliates shall be permitted to
disclose such unpublished Transferred Intellectual Property in connection with any disputes relating to this Agreement, any Transaction Document and/or the transactions contemplated hereby and thereby, in connection with the fulfillment of its
obligations hereunder and as may be required by Applicable Law, subject to providing Buyers with prior notice of such required disclosure and an opportunity to request protection from the relevant Governmental Entity within ten (10) Business
Days of such notice (or such shorter period required by Applicable Law or order of the relevant Governmental Entity. 
 (d) The
parties hereto agree that the duration and geographic area for which the covenant not to compete and confidentiality covenant set forth in this Section 5.9 are to be effective are reasonable. In the event that any court determines that the time
period or the geographic area or both of them, are unreasonable and that either such covenant is to that extent unenforceable, the parties hereto agree that such covenant shall remain in full force and effect for the greatest time period and in the
greatest geographic area that would not render it unenforceable. The parties hereto intend that these covenants shall be deemed to be series of separate covenants one for each and every county of each and every state of the United States of America
and each and every political subdivision of each and every country outside of the United States of America where these covenant are intended to be effective. The parties hereto agree that damages are an inadequate remedy for any breach of these
covenants and that each Buyer shall be entitled to equitable relief in the form of preliminary or permanent injunctions without bond or other security upon any actual or potential breach of either of these covenants in addition to any other remedy
each Buyer may have hereunder. 
 SECTION 5.10 Updating Schedules. 

(a) From the date hereof up and until the Closing Date, Sellers shall disclose to Buyers in writing (in the form of an updated Seller
Disclosure Schedule) any material variances from the disclosures provided by Sellers in the Seller Disclosure Schedule in connection with the representations and warranties contained in Article 3 promptly upon discovery thereof (“Updated
Disclosure”), which shall include (i) any matter first existing or occurring following the date hereof, with respect to the existence of which a Seller has Knowledge, and that (1) if existing or occurring at or prior to the date
hereof, would have been required to be set forth or described in the Seller Disclosure Schedule, or (2) is necessary to correct any information in the Seller Disclosure Schedule that has been rendered inaccurate thereby or (ii) any matter
that, to the Sellers’ Knowledge, arose prior to the date of this Agreement and was not previously set forth in the Seller Disclosure Schedule. Such Updated Disclosure shall amend and supplement the Seller Disclosure Schedule delivered on the
date hereof. Notwithstanding the foregoing, Buyers shall have ten (10) days to review any such Updated Disclosure, together with the Seller Disclosure Schedule and any and all previously 

 

 43 

 
provided Updated Disclosures (notwithstanding the fact that Buyers may have previously reviewed and accepted any such previous Updated Disclosures), to determine if such Updated Disclosure
together with any and all previously provided Updated Disclosures would, if in effect on the Closing Date, prevent satisfaction of the closing conditions in Section 6.2(a). During such ten (10) day review period and notwithstanding any
cure period that may be applicable pursuant to Section 7.1, Buyers may, at their sole discretion, terminate this Agreement pursuant to the provisions of Section 7.1 (to the extent entitled to do so pursuant to Section 7.1). If Buyers
do not provide Sellers with a termination notice prior to the end of such ten (10) day review period, Buyers shall be deemed to have waived their right to terminate this Agreement, solely with respect to such Updated Disclosure unless
additional Updated Disclosures are provided. If any Updated Disclosures include information which needed to be disclosed on the date hereof for the representations and warranties contained in Article 3 to have been true and correct on the date
hereof (whether or not Buyers elects to terminate this Agreement pursuant to this provisions of this Section 5.10(a), then for purposes of determining Buyers’ indemnification rights under this Agreement, the Seller Disclosure Schedule
shall not be deemed to be amended or supplemented by such Updated Disclosures and unless this Agreement is terminated pursuant to Section 7.1 (or the transactions contemplated herein fail to close, in which case such Updated Disclosures shall
not limit or modify Buyers’ remedies for breach of this Agreement) Buyers shall be entitled to indemnification for Losses resulting from the breach to the extent set forth in this Agreement.  

(b) From the date hereof until the Closing Date, Buyers shall disclose to Sellers in writing any material variances from Buyers’
representations and warranties contained in Article 4 promptly upon discovery thereof (“Buyer Updated Disclosures”), which shall include (i) any matter first existing or occurring following the date hereof, with respect to the
existence of which a Buyer has knowledge, and that (1) if existing or occurring at or prior to the date hereof, would have been required to be set forth or described in the Buyer Disclosure Schedule, or (2) is necessary to correct any
information in the Buyer Disclosure Schedule that has been rendered inaccurate thereby or (ii) any matter that, to the knowledge of a Buyer, arose prior to the date of this Agreement and was not previously set forth in the Buyer Disclosure
Schedule. Such Buyer Updated Disclosure shall amend and supplement the any Buyer disclosure schedules delivered on the date hereof. Notwithstanding the foregoing, Sellers shall have ten (10) days to review any such Buyer Updated Disclosure,
together with the Buyers disclosure schedules delivered on the date hereof and any and all previously provided Buyer Updated Disclosures (notwithstanding the fact that Sellers may have previously reviewed and accepted any such previous Buyer Updated
Disclosures), to determine if such Buyer Updated Disclosure together with any and all previously provided Buyer Updated Disclosures would, if in effect on the Closing Date, prevent satisfaction of the closing conditions in Section 6.1(a).
During such review ten (10) day review period and notwithstanding any cure period that may be applicable pursuant to Section 7.1 (to the extent entitled to do so pursuant to Section 7.1), Sellers may, at its sole discretion, terminate
this Agreement pursuant to the provisions of Section 7.1. If Sellers do not provide Buyers with a termination notice prior to the end of such ten (10) day review period, Sellers shall be deemed to have waived their right to terminate this
Agreement, solely with respect to such Buyer Updated Disclosure unless additional Buyer Updated Disclosures are provided. If any Buyer Updated Disclosures include information which needed to be disclosed on the date hereof for the representations
and warranties contained in Article 4 to have been true and correct on the date hereof (whether or not Sellers elect to terminate this Agreement pursuant to this provisions of this Section 5.10(b), then for purposes of determining

  

 44 

 
Sellers’ indemnification rights under this Agreement, the Buyers’ disclosure schedule shall not be deemed to be amended or supplemented by such Buyer Updated Disclosures and unless this
Agreement is terminated pursuant to Section 7.1 (or the transactions contemplated herein fail to close, in which case such Buyer Updated Disclosures shall not limit or modify Sellers’ remedies for breach of this Agreement). Sellers shall
be entitled to indemnification for Losses resulting from the breach to the extent set forth in this Agreement.  

SECTION 5.11 Possession of Acquired Assets. Each Seller acknowledges and agrees that from and after the Closing the Buyers will,
subject to the limitations set forth in the Transition Services Agreements, be entitled to immediate possession of all Acquired Assets. Subject to the terms and conditions of the Transition Services Agreements, except as may be provided in the
Transition Services Agreement, Buyers shall be solely responsible for removal and transfer of all tangible Acquired Assets from each Seller’s facilities (the “Transferred Asset Transfer”) and any and all Losses resulting therefrom.

 SECTION 5.12 Post-Closing Supply. US Buyer agrees that in the one (1) year period following the Closing, it will
supply to P. & L. Systems Limited, at P. & L. Systems Limited’s request, those products of Sellers set forth on Section 5.12 of the Seller Disclosure Schedule at the prices as set forth in such Section and in such monthly
volumes during such one year period as set forth on Section 5.12 of the Seller Disclosure Schedule. All such orders shall be on the standard terms and conditions of US Buyer, including all payment and delivery terms as the same may be modified
by US Buyer from time to time. 
 SECTION 5.13 Name Change. As promptly as reasonably practicable following the Closing,
but in any event within thirty (30) days following the Closing Date, (a) Sellers shall change their respective corporate names from Air Guard Control Corporation, Air Guard Control (Canada) Limited and Waterbury Companies, Inc.,
respectively, to another name that is dissimilar to the foregoing and remove any reference to the names “Air Guard,” “Waterbury” or variations thereof, or any other trade name used in the Business, and (b) Sellers shall file
in all jurisdictions in which they are qualified to do business all documents necessary to reflect such change of names or to terminate their qualifications therein except in fulfilling their obligations under the Transition Services Agreements. In
connection with enabling Buyers, at or as soon as practicable following the Closing, to use the current corporate name of the Sellers, the Sellers shall, at or prior to the Closing, (x) execute and deliver to Buyers all consents related to such
change of name as may be reasonably requested by Buyers, and (y) otherwise use commercially reasonable efforts to cooperate with Buyers, provided, however, that, in connection with this clause (y), in no event shall the foregoing require any
Seller to expend funds. 
 SECTION 5.14 Risk of Loss. The risk of loss with respect to the Acquired Assets shall remain
with the Sellers until the Closing. Until the Closing, the Sellers shall maintain in force all the policies of property damage insurance under which any Acquired Asset is insured. 

SECTION 5.15 Receivables. From and after the Closing, Sellers shall promptly remit to a designated bank account any checks or
other payments received by Sellers which constitute receivables acquired by Buyers hereunder. 
  

 45 

 SECTION 5.16 Use of Personal Information. To the extent that a Seller transfers
Personal Information to Buyers following the Closing, Buyers shall not, without the consent of the individuals to whom such Personal Information relates or as permitted or required by Applicable Law, use or disclose such Personal Information:
(a) for purposes other than those described in Section 3.26 of the Seller Disclosure Schedule; or (b) which does not relate directly to the carrying on of the Business. 

SECTION 5.17 Product Returns. From and after the Closing, and to the extent (but only to the extent) required under any applicable
Seller’s refund and return policy in effect as of the date hereof, Buyers shall replace or refund, as appropriate, damaged, defective or returned goods of the Business sold by a Seller prior to the Closing. 

SECTION 5.18 Insurance. On or prior to the Closing Date, Sellers shall cause Buyers to be named as an “additional
insured” with respect to any and all property, casualty, products liability, business interruption and other insurance policies currently maintained by any such Seller. Following Closing, Sellers shall not terminate or cause to be cancelled any
insurance coverage for any period prior to the Closing Date. 
 SECTION 5.19 Registration Data. Prior to Closing, Sellers
shall have provided to Buyers Registration Data supporting or purporting to support those Registrations identified by the parties as Registrations “237”, “210” and “137” and as the sub Registrations for the
“Ozium” products. 
 SECTION 5.20 Consultant. Sellers shall engage a consultant, reasonably acceptable to
Buyers, whose scope and engagement shall be reasonably acceptable to Buyers and which consultant shall both prior to Closing and following Closing assist in the identification of all Registration Data necessary to support all and any claims made in
any Registration and related labels and technical and marketing materials. If (a) any Registration has been identified as not having all necessary Registration Data or (b) any Government Authority requests additional data, in the case of
(a) or (b) above necessary to support any claims currently made with respect to such product on or before the Closing Date (other than pursuant to an industry-wide data call-in), Sellers shall pay the cost of obtaining all such
Registration Data. Sellers shall pay all fees and expenses of the consultant. 
 ARTICLE 6 

CONDITIONS TO CLOSING 

SECTION 6.1 Conditions to the Obligations of Sellers. The obligations of Sellers to consummate the transactions contemplated by
this Agreement are subject to the satisfaction of the following conditions as of the Closing Date: 
 (a) Representations and
Warranties. The representations and warranties set forth in Article 4 shall, without giving effect to any materiality or Material Adverse Effect qualifier therein, be true, correct and complete in all respects at and as of the Closing Date
(except for those representations and warranties, expressly required to be made as of a particular 
  

 46 

 
date, which shall be true, correct and complete in all respects as of such date), except where the failure of such representations and warranties to be so true and correct would not, in the
aggregate, have a material adverse effect on the ability of Buyers to consummate the transactions contemplated hereby; 
 (b)
Performance of Covenants and Agreements. Each Buyer shall have performed or complied with in all material respects, all the covenants and agreements required to be performed or complied with by it under this Agreement at or prior to the
Closing; 
 (c) Governmental Consents and Notices. Buyers, to the extent applicable, shall have received consents,
waivers, permits, authorizations and approvals of Governmental Entities set forth on Schedule 6.1(c)(1) and/or the applicable waiting periods with respect thereto shall have expired; Buyers shall have made filings with and/or provided notices
to, as applicable, those Governmental Entities set forth on Schedule 6.1(c)(2); Sellers, to the extent applicable, shall have received consents, waivers, permits, authorizations and approvals of Governmental Entities set forth on
Schedule 6.2(c)(1) and/or the applicable waiting periods with respect thereto shall have expired; 
 (d) Third Party
Consents. Sellers shall have received, in form and substance reasonably satisfactory to Sellers and in full force and effect, the consents from the third parties set forth on Schedule 6.1(d); 

(e) Actions and Proceedings. No action or proceeding before any Governmental Entity shall be pending wherein an unfavorable
judgment, decree or order would prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby, declare unlawful the transactions contemplated by this Agreement or cause such transactions to be
rescinded; 
 (f) Closing Deliverables. 

(i) US Buyer shall have delivered, or caused to be delivered, to Sellers certified copies of the resolutions duly adopted
by its board of directors authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions contemplated hereby and thereby, IP Buyer shall have delivered to
Sellers certified copies of the resolutions of its sole member authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions contemplated hereby and
thereby and Canadian Buyer shall have delivered to Sellers certified copies of the resolutions of its board of directors and certified copies of the resolutions passed by the sole shareholder of Canadian Buyer (if necessary for the consummation of
the transaction contemplated hereby) authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions contemplated hereby and thereby; 

(ii) Buyers shall have delivered to Sellers, a copy of the certificate of incorporation of US Buyer, certified by the
Secretary of State of Delaware and certified copies of US Buyer’s other governing documents, a copy of the certificate of formation 

 

 47 

 
of IP Buyer, certified by the Secretary of State of Delaware and certified copies of IP Buyer’s other governing documents, a copy of the articles of incorporation of Canadian Buyer certified
by Corporations Canada and a certified copy of the by-laws and other governing documents of Canadian Buyer, and a certified incumbency with respect to each Buyer’s signatory or signatories for the Transaction Documents; 

(iii) Buyers shall have delivered to Sellers, a certificate of Buyers in the form set forth as Exhibit E hereto,
dated the Closing Date, stating that the conditions specified in Sections 6.1(a) and 6.1(b) have been satisfied; 

(iv) Buyers shall have delivered the Payoff Payment in accordance with the payment letters required pursuant to Section
6.2(f)(vi) and Buyer shall have delivered to Sellers and/or such Persons as Sellers may have directed in writing the balance of the Estimated Cash Payment; 

(v) Buyers shall have delivered to the Escrow Agent, the Escrow Funds; 

(vi) Buyers shall have delivered to Waterbury a duly executed Transition Services Agreement, in the form of Exhibit
F hereto (the “Transition Services Agreement”); 
 (vii) Buyers shall have delivered a duly
executed IP License Agreement, in the form of Exhibit G hereto (the “IP License Agreement”); 

(viii) Buyers shall have delivered duly executed copies of the other Transaction Documents to which one or more Buyers is
a party; 
 (ix) Buyers shall have delivered to Sellers a good standing certificate issued by the Secretary of
State of the State of Delaware with respect to US Buyer and IP Buyer, as of a date no more than seven (7) days prior to the Closing and a certificate of compliance issued by Corporations Canada with respect to Canadian Buyer, as of a date no
more that seven (7) days prior to the Closing; and 
 (x) Buyers shall have delivered to Sellers duly
executed copies of all such other documents or instruments as Sellers may have reasonably requested a reasonable time prior to the scheduled Closing Date in order to give effect to the transactions contemplated hereby. 

SECTION 6.2 Conditions to the Obligations of Buyers. The obligation of Buyers to consummate the transactions contemplated by this
Agreement is subject to the satisfaction of the following conditions as of the Closing Date: 
 (a) Representations and
Warranties. The representations and warranties set forth in Article 3 shall, without giving effect to any materiality or Material Adverse Effect qualifier therein, be true, correct and complete in all respects at and as of the Closing Date
(except for those representations and warranties, expressly required to be made as of a particular date, which shall be true, correct and complete in all respects as of such date), except where the

  

 48 

 
failure of such representations and warranties to be so true and correct would not, in the aggregate, have a Material Adverse Effect or would not have a material adverse effect on the ability of
Sellers to consummate the transactions contemplated hereby; 
 (b) Performance of Covenants and Agreements. Each Seller
shall have performed or complied with in all material respects, all the covenants and agreements required to be performed or complied with by it under this Agreement at or prior to the Closing; 

(c) Governmental Consents and Notices. Sellers, to the extent applicable, shall have received consents, waivers, permits,
registrations, authorizations and approvals of Governmental Entities set forth on Schedule6.2(c)(1) and/or the applicable waiting periods with respect thereto shall have expired; Sellers shall have made filings with and/or provided notices to, as
applicable, those Governmental Entities set forth on Schedule 6.2(c)(2); Buyers, to the extent applicable, shall have received consents, waivers, permits, authorizations and approvals of Governmental Entities set forth on
Schedule 6.1(c)(1) and/or the applicable waiting periods with respect thereto shall have expired; 
 (d) Consents to
Assignment. Buyers shall have received, in form and substance reasonably satisfactory to Buyers and in full force and effect, all consents and approvals set forth on Schedule6.2(d); 

(e) Actions and Proceedings. No action or proceeding before any Governmental Entity shall be pending wherein an unfavorable
judgment, decree or order would prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby, declare unlawful the transactions contemplated by this Agreement or cause such transaction to be rescinded;

 (f) Closing Deliverables. 

(i) Sellers shall have delivered, or caused to be delivered, to Buyers a certificate of Sellers in the form set forth in
Exhibit H hereto, dated the Closing Date, stating that the conditions specified in Sections 6.2(a) and 6.2(b) have been satisfied; 

(ii) Sellers shall have delivered to Buyers a copy of the certificate of incorporation of each of Waterbury and Air Guard
Control, certified by the Secretary of State of Delaware, certified copies of Waterbury’s and Air Guard Control’s other governing documents, a copy of the articles of incorporation of Air Guard Canada certified by Corporations Canada, a
certified copy of the by-laws and other governing documents of Air Guard Canada, and a certified incumbency with respect to each Seller’s signatory or signatories for the Transaction Documents; 

(iii) Each of Waterbury and Air Guard Control shall have delivered, or caused to be delivered, to Buyers certified copies
of the resolutions duly adopted by its board of directors and sole stockholder (if necessary for the consummation of the transaction contemplated hereby) authorizing the execution, delivery and performance of this Agreement and the other agreements
contemplated hereby, and the consummation of all transactions contemplated hereby and thereby and Air Guard Canada shall have delivered to Buyers certified copies of the resolutions of its board of directors and

  

 49 

 
certified copies of the resolutions passed by the sole shareholder of Air Guard Canada (if necessary for the consummation of the transaction contemplated hereby) authorizing the execution,
delivery and performance of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions contemplated hereby and thereby; 

(iv) Waterbury shall have delivered to Buyers a duly executed Transition Services Agreement; 

(v) Sellers shall have delivered to Buyers a duly executed IP License Agreement; 

(vi) The holders of any Liens on or affecting the Acquired Assets shall have irrevocably released such Liens or shall have
delivered payment letters including customary language, reasonably acceptable to Buyers, relating to the release of all Liens (including without limitation the Liens listed on Schedule 6.2(f)(vi)) affecting the Acquired Assets upon receipt of
the amount set forth in the payment letters; 
 (vii) Waterbury shall have delivered to Buyers a good standing
certificate issued by the Secretary of State of the State of Delaware with respect to Waterbury and Air Guard Control, as of a date no more than seven (7) days prior to the Closing and a certificate of compliance issued by Corporations Canada
with respect to Air Guard Canada, as of a date no more that seven (7) days prior to the Closing; 
 (viii)
Sellers shall have delivered duly executed copies of the other Transaction Documents to which one or more of Sellers is a party; 

(ix) Sellers shall have delivered to Buyers duly executed copies of all such other documents or instruments as Buyers may
have reasonably requested a reasonable time prior to the scheduled Closing Date in order to give effect to the transactions contemplated hereby; 

(x) Sellers shall have delivered to Buyers the instructions required in Section 2.7(c); 

(xi) Watco shall have duly executed and delivered a guaranty in the form attached hereto as Exhibit I; and

 (xii) Sellers shall have delivered certificates of insurance evidencing Buyers being name as an
“additional insured” pursuant to Section 5.18 hereof. 
 (g) Material Adverse Change. Since the date
hereof, there shall not have occurred any Material Adverse Change. 
 (h) Ozium Reformulation. Sellers shall have
delivered to Buyers evidence, in form and substance reasonably acceptable to Buyers, that the “Ozium” products (and other products that contain any phthalates) will be reformulated and commercially available at

  

 50 

 
materially comparable prices to those available on the date hereof in a formulation that does not contain phthalates. 

ARTICLE 7 

TERMINATION; AMENDMENT; WAIVER 

SECTION 7.1 Termination. This Agreement may be terminated at any time prior to the Closing: 

(a) by the mutual written consent of each Buyer and each Seller; 

(b) by written notice from Buyers to Sellers, if (i) there has been a violation or breach by a Seller of any covenant,
representation or warranty contained in this Agreement which, if in effect as of the Closing Date, would prevent the satisfaction of the conditions set forth in Sections 6.2(a) and 6.2(b), and such violation or breach has not been waived by
Buyers or, in the case of a covenant breach, cured by the applicable Seller within ten (10) days after written notice thereof from Buyers or (ii) Sellers fail to perform in any material respect any of their agreements contained herein
required to be performed by them at or prior to the Closing and such failure has not been waived by Buyers or cured by the applicable Seller within ten (10) days after written notice thereof from Buyers; 

(c) by written notice from Sellers to Buyers, if (i) there has been a violation or breach by a Buyer of any covenant, representation
or warranty contained in this Agreement which, if in effect as of the Closing Date, would prevent the satisfaction of the conditions set forth in Sections 6.1(a) and 6.1(b), and such violation or breach has not been waived by Sellers or, in the
case of a covenant breach, cured by the applicable Buyer within ten (10) days after written notice thereof from Sellers (provided that the failure of Buyers to deliver the consideration to be paid by Buyers pursuant to Section 2.6 as
required hereunder shall not be subject to cure hereunder unless otherwise agreed to in writing by Sellers) or (ii) Buyers fail to perform in any material respect any of their agreements contained herein required to be performed by them at or
prior to the Closing and such failure has not been waived by Sellers or cured by the applicable Buyer within ten (10) days after written notice thereof from Sellers; or 

(d) by written notice from Buyers to Sellers, or Sellers to Buyers, as the case may be, if the Closing has not occurred by,
September 30, 2010 (“Termination Date”); provided that neither Buyers nor Sellers shall be entitled to terminate this Agreement pursuant to this Section 7.1(d) if any such Person’s knowing or willful breach of this Agreement
has prevented the consummation of the transactions contemplated hereby. 
 SECTION 7.2 Effect of Termination. In the
event of termination of this Agreement by either Buyers or Sellers pursuant to this Article 7 as provided above, the provisions of this Agreement shall immediately become void and of no further force and effect (other than this
Section 7.2, Section 5.7, Sections 10.3 through 10.5 hereof, Sections 10.9 through 10.10 hereof, Section 10.13 hereof and the Confidentiality Agreement, which shall each survive the termination of this Agreement), and there
shall be no liability on the part of any of 
  

 51 

 
Buyers (on the one hand) or Sellers (on the other hand) to one another, except for knowing or willful breaches of this Agreement prior to the time of such termination 

The parties hereto hereby acknowledge and agree that each of the Buyers shall be deemed to have knowingly and willfully breached this Agreement, and such
breach shall be deemed to have prevented the consummation of the transactions contemplated hereby, in the event that all of the Closing Conditions set forth in Section 6.2 hereof have been satisfied in accordance with the terms of thereof, but
the Buyers have, for any reason whatsoever, failed to pay the Closing Cash Payment. 
 SECTION 7.3 Amendment. This
Agreement may be amended only by an instrument in writing signed on behalf of each of the parties hereto. 
 SECTION 7.4
Extension; Waiver. At any time prior to the Closing Date, each party hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations
and warranties of the other parties contained herein or in any document, certificate or writing delivered pursuant hereto or (c) waive compliance by the other parties with any of the agreements or conditions contained herein. Except as
permitted under Article 6 hereof, any agreement on the part of any party hereto to any such extension or waiver shall be valid only if set forth in an instrument, in writing, signed on behalf of such party. Except as set forth in Article 6
hereof, the failure of any party hereto to assert any of its rights hereunder shall not constitute a waiver of such rights. 

SECTION 7.5 Specific Performance and Other Remedies. Each party hereto acknowledges that the rights of each of the other parties
hereto to consummate the transactions contemplated hereby are special, unique and of extraordinary character and that, in the event that any party hereto violates or fails or refuses to perform any covenant or agreement made by it herein, the other
parties hereto may be without an adequate remedy at law. In the event that any party hereto violates or fails or refuses to perform any covenant or agreement made by such party herein, the other parties hereto may, subject to the terms hereof and in
addition to any remedy at law for damages or other relief, institute and prosecute an action in any court of competent jurisdiction to enforce specific performance of such covenant or agreement or seek any other equitable relief. 

ARTICLE 8 

SURVIVAL AND INDEMNIFICATION 

SECTION 8.1 Survival; No Additional Representations and Warranties. 

(a) All of the representations and warranties of Sellers shall survive the Closing until the twelve (12) month anniversary of the
Closing Date (the “Standard Survival Period”) except for (a) the representations and warranties set forth in Sections 3.8, 3.10, and 3.11 (the “Extended Representations”) which shall survive the Closing until sixty
(60) days following the expiration of the applicable statute of limitations (the “Extended Survival Period”); and (b) the representations and warranties set forth in the first three sentences of Section 3.1, in
Section 3.2, in Section 3.13 and in the first two sentences of Section 3.15 (the “Special 
  

 52 

 
Representations”) which shall survive indefinitely. All of the representations and warranties of Buyers shall survive until the Standard Survival Period except for the representations and
warranties set forth in Sections 4.1 and 4.2 (collectively, the “Buyer Special Representations”) which shall survive indefinitely. Covenants of all parties shall survive according to their terms. Further, the survival period for
claims for indemnification by any Buyer Indemnitee pursuant to Section 8.2(a)(v) shall end on the twenty-four (24) month anniversary of the Closing Date and pursuant to 8.2(a)(vi) shall end on the thirty-six (36) month anniversary of
the Closing Date. The survival period for claims for indemnification by any Buyer Indemnitee pursuant to Sections 8.2(a)(ii) through 8.2(a)(iv) shall survive indefinitely. As used herein, the term “Survival Period” shall mean the
period for which the representations and warranties survive as set forth in this Section 8.1(a) or during which any claim for indemnification may be made as set forth in this Section 8.1(a). 

(b) EACH PARTY HERETO UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT THE REPRESENTATIONS AND WARRANTIES BY EACH OTHER PARTY HERETO
EXPRESSLY AND SPECIFICALLY SET FORTH IN THIS AGREEMENT CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF EACH SUCH OTHER PARTY HERETO IN CONNECTION WITH THE ACQUIRED ASSETS, ASSUMED LIABILITIES AND THE TRANSACTIONS CONTEMPLATED
HEREBY (EXCLUDING FROM THIS LIMITATION THE REPRESENTATIONS, WARRANTIES AND CONDITIONS PROVIDED BY SELLERS PURSUANT TO THE TRANSITION SERVICES AGREEMENT), AND EACH PARTY HERETO UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT ALL OTHER REPRESENTATIONS AND
WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, WRITTEN OR ORAL (INCLUDING, BUT NOT LIMITED TO, IN THE CASE OF THE SELLERS, ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OR PROJECTIONS OF OPERATIONS, ASSETS OR
LIABILITIES OF THE BUSINESS) ARE SPECIFICALLY DISCLAIMED BY EACH OTHER PARTY HERETO AND THAT EXCEPT AS OTHERWISE PROVIDED HEREIN EACH SELLER IS CONVEYING THE ACQUIRED ASSETS ON AN “AS IS, WHERE IS” BASIS. Each party hereto further
agree that none of the other parties hereto nor any of its Affiliates or nor any other Person acting on behalf of any such Party(ies) will have or be subject to any liability, except as specifically set forth in this Agreement or any Transaction
Document. 
 SECTION 8.2 Indemnification. 

(a) Joint and Several Indemnification by Sellers. The Sellers shall (subject to the provisions of this Article 8) indemnify,
defend and hold harmless each Buyer and its Affiliates and their officers, directors, employees, shareholders, members, managers, partners and/or agents (each, a “Buyer Indemnitee” and collectively, the “Buyer Indemnitees”) from
and against the entirety of any Losses Buyer Indemnitees shall suffer, sustain or become subject to (including any Losses Buyer Indemnitees shall suffer after the end of the applicable Survival Period with respect to claims made within such period),
subject to Section 8.3, resulting from (i)any breach or inaccuracy of any of the representations and warranties of any Seller made herein or, subject to any limitations on any Buyer’s remedies for Losses set forth therein, in any
Transaction Document (other than the Transition Services Agreement), (ii) any breach of any 
  

 53 

 
covenant, agreement or undertaking made by any Seller in this Agreement or, subject to any limitations on any Buyer’s remedies for Losses set forth therein, in any Transaction Document
(other than the Transition Services Agreement), (iii) any liability or obligation of any Seller of any nature whatsoever (including, without limitation any liability with respect to any Hired Employee for employment periods prior to the Closing
Date and any liability (including liabilities that may be out of pocket obligations of Buyer pursuant to Section 5.6(d) hereof, Treas. Reg. § 54.4980B-9 Q&A 8(c) or otherwise) with respect to any past or future employee of
Sellers), except the Assumed Liabilities, (iv) any liability or obligation incurred or arising prior to the Closing Date in connection with the conduct or operations of the Business or the use or ownership of the Acquired Assets, except the
Assumed Liabilities, (v) any liability obligation or Losses resulting from or arising from any of the items, events, facts or circumstances described on Section 8.2(a)(v) of the Seller Disclosure Schedule and (vi) any liability,
obligation or Losses resulting from lost gross margin as a result of any Buyer’s inability to sell products after the Closing Date because of deficiencies or other problems with respect to any Registration included with the Acquired Assets. For
purposes of determining under this Section 8.2(a) (x) whether a breach of any representation or warranty has occurred and (y) the Losses suffered by Buyer Indemnitees as a result of such breach, the terms “material”,
“Material Adverse Effect” and words of similar import shall be disregarded wherever they appear in such representation or warranty of any Seller in this Agreement or in any Transaction Document (other than the Transition Services
Agreement) and given no effect. The Losses from and against which the Sellers are obligated to indemnify, defend and hold harmless Buyer Indemnitees against under this Section 8.2(a) are collectively, the “Seller Indemnifiable
Losses”. 
 (b) Joint and Several Indemnification by Buyers. The Buyers shall (subject to the provisions of this
Article 8) indemnify, defend and hold harmless each Seller and its Affiliates and their officers, directors, employees, shareholders, members, managers, partners and/or agents (each, a “Seller Indemnitee” and collectively, the
“Seller Indemnitees”) (each Buyer and/or Buyer Indemnitee individually and the Buyers and/or Buyer Indemnitees collectively, each Seller and/or Seller Indemnitee individually and the Sellers and/or Seller Indemnitees collectively, as the
context requires, are each sometimes referred to herein as an “Indemnified Party” or an “Indemnifying Party”), from and against the entirety of any Losses Seller Indemnitees shall suffer, sustain or become subject to (including
any Losses Seller Indemnitees shall suffer after the end of the applicable Survival Period with respect to claims made within such period), resulting from (i) any breach or inaccuracy of any of the representations and warranties of any Buyer
made herein or in any Transaction Document (other than the Transition Services Agreement), (ii) any breach of any covenant, agreement or undertaking made by any Buyer in this Agreement or, subject to any limitations on any Seller’s
remedies for Losses set forth therein, in any Transaction Document (other than the Transition Services Agreement), (iii) any Buyer’s failure to perform, discharge or satisfy any Assumed Liability, and (iv) any liability or obligations
incurred or arising on or after the Closing Date in connection with the conduct or operations of the Business or the use or ownership of the Acquired Assets (including, without limitation, except as provided in the Transition Services Agreement, the
Transferred Asset Transfer) (collectively, the “Buyer Indemnifiable Losses”). For purpose of determining under this Section 8.2(b) (x) whether a breach of any representation or warranty has occurred and (y) the Losses
suffered by Seller Indemnitees as a result of such breach, the terms “material,” “Material Adverse Effect” and words of similar import shall be disregarded wherever they appear in such representation or warranty of any Buyer in
this 
  

 54 

 
Agreement or, subject to any limitations on any Seller’s remedies for Losses set forth therein, in any Transaction Document and given no effect. Buyer Indemnifiable Losses and Seller
Indemnifiable Losses, as the context requires, are each sometimes referred to herein as “Indemnifiable Losses.” 

SECTION 8.3 Limits on Indemnification. 

(a) With respect to Seller Indemnifiable Losses the aggregate liability of Sellers (collectively) to indemnify Buyer Indemnitees
(collectively) from and against any Seller Indemnifiable Losses shall not exceed an amount equal to $3,300,000 (the “Cap”). Notwithstanding the foregoing, the Cap shall not apply to Seller Indemnifiable Losses arising from
(i) breaches of any of the representations and warranties set forth in Section 3.10, Section 3.11 or Section 3.17 or any of the Special Representations, (ii) matters indemnified pursuant to Sections 8.2(a)(ii) through
(vi), or (iii) fraud or intentional misrepresentation. The liability, if any, of Sellers to indemnify Buyer Indemnitees hereunder shall first be satisfied from the Escrow Funds, and only if and to the extent the aggregate liability of Sellers
(collectively) to indemnify Buyer Indemnitees from and against Seller Indemnifiable Losses hereunder exceeds the Escrow Funds Buyer Indemnitees shall be entitled to seek funding of any Seller Indemnifiable Losses directly from the Sellers. With
respect to Buyer Indemnifiable Losses, the aggregate liability of Buyers (collectively) to indemnify Seller Indemnitees (collectively) from and against any Buyer Indemnifiable Losses shall not exceed the Cap. Notwithstanding the foregoing, the Cap
shall not apply to Buyer Indemnifiable Losses arising from (i) breaches of any Buyer Special Representations or any of the representations and warranties set forth in Section 4.4, (ii) matters indemnified pursuant to
Sections 8.2(b)(ii) through (iv), or (iii) fraud or intentional misrepresentation. 
 (b) Sellers will not have any
obligation to indemnify Buyer Indemnitees with respect to any Seller Indemnifiable Losses until the aggregate of all such Seller Indemnifiable Losses exceeds an amount equal to $660,000 (the “Basket”) (at which point Sellers will be
obligated to indemnify Buyer Indemnitees for (but only for) such Seller Indemnifiable Losses in excess of the Basket); provided, however, that no Seller will have any obligation to indemnify Buyer Indemnitees with respect to individual
Seller Indemnifiable Losses of less than Ten Thousand ($10,000) (the “Threshold”) unless more than one Seller Indemnifiable Loss, each less than the Threshold, arises from the same or similar facts or circumstances and such Seller
Indemnifiable Losses collectively exceed the Threshold, in which case all such Seller Indemnifiable Losses shall be indemnified by Sellers pursuant to the terms hereof. Notwithstanding the foregoing, (A) neither the Basket or Threshold shall
apply to Seller Indemnifiable Losses arising from (i) breach of any Special Representations or a breach of any of the representations and warranties set forth in Section 3.10, (ii) matters indemnified pursuant to
Sections 8.2(a)(ii) through (v), or (iii) fraud or intentional misrepresentation and (B) the amount of the Basket with respect to Buyer Indemnifiable Losses from matters indemnified pursuant to Section 8.2(a)(vi) shall be an amount
equal to $150,000. Buyers will not have any obligation to indemnify any Seller Indemnitee with respect to any Buyer Indemnifiable Losses until the aggregate of all such Buyer Indemnifiable Losses exceeds the Basket (at which point Buyers will be
obligated to indemnify Seller Indemnitees for (but only for) Buyer Indemnifiable Losses in excess of the Basket); provided, however, that Buyers will not have any obligation to indemnify any Seller Indemnitee with respect to individual
Buyer Indemnifiable Losses of less 
  

 55 

 
than the Threshold unless more than one Buyer Indemnifiable Loss, each less than the Threshold, arises from the same or similar facts or circumstances and such Buyer Indemnifiable Losses
collectively exceed the Threshold, in which case all such Buyer Indemnifiable Losses shall be indemnified by Buyers pursuant to the terms hereof. Notwithstanding the foregoing, neither Basket or Threshold shall apply to Buyer Indemnifiable Losses
arising from (i) breaches of any Buyer Special Representations or any representations and warranties set forth in Section 4.4, (ii) matters indemnified pursuant to Section 8.2(b)(ii) through (iv) or (iii) fraud or
intentional misrepresentation. 
 (c) Sellers shall have no obligation to indemnify Buyers from and against any Seller
Indemnifiable Losses arising out of the breach or inaccuracy of any of the representations, warranties or covenants made herein that are subject to the Standard Survival Period unless Buyers make a written claim within the Standard Survival Period
for the breach or inaccuracy that gives rise to such Seller Indemnifiable Losses. Sellers shall have no obligation to indemnify Buyers from and against any Seller Indemnifiable Losses arising out of the breach or inaccuracy of any of the
representations, warranties or covenants made herein that are subject to the Extended Survival Period or any other longer survival period unless Buyers make a written claim for the breach or inaccuracy that gives rise to such Seller Indemnifiable
Losses within the Extended Survival Period or any other longer survival period. 
 (d) Buyers shall have no obligation to
indemnify Sellers from and against any Buyer Indemnifiable Losses arising out of the breach or inaccuracy of any of the representations, warranties or covenants made herein that are subject to the Standard Survival Period or any other longer
survival period unless Sellers made a written claim within the Standard Survival period or any other longer survival period for the breach or inaccuracy that gives rise to such Buyer Indemnifiable Losses. 

(e) For the avoidance of doubt, it is agreed that if there is a breach of more than one representation or warranty on account of the same
facts or circumstances, such breach shall give rise to full single indemnification as provided by this Article 8, but shall not give rise to indemnification more than once on account thereof. For further avoidance of doubt, it is agreed that no
Seller shall be liable for any Seller Indemnifiable Losses to the extent, but only to the extent, that the same has been specifically accounted for in the determination of the Actual Final Net Working Capital. 

(f) Each Indemnified Party shall use commercially reasonable efforts and shall cause their respective Affiliates to use their
commercially reasonable efforts to mitigate and otherwise minimize the Indemnifiable Losses to the maximum extent reasonably possible upon and promptly after becoming aware of any event which would reasonably be expected to give rise to any
Indemnifiable Losses; provided that the costs of such efforts shall be included in the determination of the Losses indemnified hereunder if such efforts successfully mitigate, in whole or in part, such Indemnifiable Losses. An Indemnified Party
shall, at the Indemnifying Party’s request, cooperate in the defense of any matter subject to indemnification or contribution hereunder. Each Indemnified Party shall use commercially reasonable efforts to collect any amounts available from any
other Person alleged to be responsible (including, without limitation, from any other Person responsible pursuant to any warranty, representation and/or guarantee) for any Indemnifiable Losses to the same extent that the Indemnified Party would if
such 
  

 56 

 
Indemnifiable Loss were not subject to indemnification hereunder; provided that the costs of such efforts shall be included in the determination of the Losses indemnified hereunder. 

(g) The amount of any Indemnifiable Losses payable under Section 8.2 by the Indemnifying Party shall be net of amounts actually
recovered from any other third party with indemnification or contribution obligations or from any other Person responsible therefor (including, without limitation, from any other Person responsible therefor pursuant to any warranty, representation
and/or guarantee). The Indemnified Party shall use commercially reasonable efforts to promptly notify any potential third party indemnitor or contributor which may be liable for any portion of such losses or claims. If an Indemnified Party receives
any amounts from any other third party with indemnification obligations or from any other Person alleged to be responsible for any Indemnifiable Losses, subsequent to an indemnification payment by any Indemnifying Party, then such Indemnified Party
shall promptly, and in any event within ten (10) Business Days of its receipt of such amounts reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification
payment up to the amount received by the Indemnified Party. 
 (h) The amount of any Indemnifiable Losses payable by Sellers
pursuant to Section 8.2(a) shall be net of any insurance proceeds actually received by any Buyer pursuant to the insurance policies maintained by Sellers and pursuant to which Sellers have named Buyers as additional insureds. Each of Buyers and
Sellers shall use commercially reasonable efforts to seek recovery for any such insurance proceeds, provided that neither shall be required to incur any cost in pursuing such proceeds. If an Indemnified Party receives any amounts with respect to
such insurance policies, for an Indemnifiable Loss subsequent to the indemnification payment by an Indemnifying Party, with respect to such Indemnifiable Loss, then such Indemnified Party shall promptly, and in any event within ten
(10) Business Days of its receipt of such amounts, reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification payment up to the amount received by such
Indemnified Party from such insurance proceeds. 
 (i) Except with respect to Third-Party Claims no Indemnifying Party shall be
obligated to indemnify an Indemnified Party under this Article 8 for any consequential, incidental, indirect, special or punitive damages, lost profits, or opportunity costs, diminution of value or similar items or damages or losses calculated
as a multiple of damages or as a multiple of earnings, profits, contribution margin or similar items. Notwithstanding the foregoing, in the case of matters indemnified pursuant to Section 8.2(a)(vi), an Indemnified Party shall be entitled to seek
damages for lost profits, diminution of value or similar items or damages or losses calculated as a multiple of damages or as a multiple of earnings, profits, contribution margin or similar items for the period of the event giving rise to the
indemnification obligation. 
 (j) After the Closing, this Article 8 will provide the exclusive remedy of all Indemnified
Parties for any misrepresentation, breach of warranty, covenant or other agreement, other than for (i) remedies of specific performance, injunction and other equitable relief and (ii) fraud or intentional misrepresentation. 

 

 57 

 SECTION 8.4 Matters Involving Third Parties. 

(a) If subsequent to the Closing any third party shall notify an Indemnified Party with respect to any claim, complaint, or the
commencement of any audit, investigation, action or proceeding (a “Third Party Claim”) which may give rise to a claim for indemnification against the Indemnifying Party under this Article 8, then the Indemnified Party shall promptly
notify the Indemnifying Party thereof in writing of the Third Party Claim together with a statement of any available information regarding such Third Party Claim; provided, however, that the failure to so notify the Indemnifying Party
shall relieve the Indemnifying Party from liability hereunder with respect to such Third Party Claim only to the extent that such failure to notify the Indemnifying Party materially prejudices the Indemnifying Party with respect to such Third Party
Claim. 
 (b) The Indemnifying Party will have the right to assume the defense of such Third Party Claim with counsel of the
Indemnifying Party’s choice, such counsel subject to Indemnified Party’s consent (which consent shall not be unreasonably withheld, conditioned or delayed), so long as (i) the Indemnifying Party notifies the Indemnified Party, within
thirty (30) days after the Indemnified Party has given notice of the Third Party Claim to the Indemnifying Party that the Indemnifying Party is assuming the defense of such Third Party Claim and will irrevocably indemnify the Indemnified Party
against such Third Party Claim in its name or, if necessary, in the name of the Indemnified Party in accordance with the terms and limitations of this Article 8, (ii) the Indemnifying Party provides the Indemnified Party with evidence
reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend the Indemnified Party and fulfill its indemnification obligations hereunder, (iii) the applicable Third Party Claim involves
only money damages, does not involve a class action, allegations of criminal activities, or violations of the Racketeering Influenced and Corrupt Organization Act, does not arise from a qui tam or similar whistle blower claim, and does not seek an
injunction or other equitable relief, and (iv) the Indemnifying Party conducts the defense of the Third Party Claim in a commercially reasonable and diligent manner. In the event the Indemnifying Party declines or fails to assume the defense of
a Third Party Claim within the time and as prescribed in this Section 8.4(b), then the Indemnified Party shall have the right to conduct such defense in good faith and may employ counsel reasonably acceptable to the Indemnifying Party to
represent it or defend it against such Third Party Claim, and the Indemnifying Party shall pay the reasonable and documented fees and disbursements of such counsel in a timely manner, but the Indemnified Party shall be prohibited from compromising
or settling the claim without the prior written consent of the Indemnifying Party, such consent not to be unreasonably withheld or delayed. In the event that the Indemnifying Party does deliver notice as prescribed in this Section 8.4(b) and
thereby elects to conduct the defense of the subject Third Party Claim, the Indemnified Party will cooperate with and make available to the Indemnifying Party such assistance and materials as the Indemnifying Party may reasonably request, all at the
expense of the Indemnifying Party. Regardless of which party(ies) hereto defend(s) such claim, the other party(ies) hereto shall have the right, at its(their) expense, to participate in the defense assisted by counsel of its own choosing. The
Indemnifying Party or the Indemnified Party (as the case may be) shall at all times use reasonable efforts to keep the Indemnifying Party or Indemnified Party (as the case may be) reasonably apprised of the status of the defense of any Third Party
Claim the defense of which it is maintaining and the 
  

 58 

 
Indemnifying Party and Indemnified Party shall cooperate in good faith with each other with respect to the defense of any such Third Party Claim. 

(c) So long as the conditions set forth in Section 8.4(b) are and remain satisfied, then (i) the Indemnifying Party may conduct
the defense of the Third Party Claim in accordance with Section 8.4(b), (ii) the Indemnified Party may retain separate co-counsel at its sole cost and expense and (iii) the Indemnifying Party will not, without the prior written
consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), consent to the entry of any judgment with respect to the matter, or enter into any settlement which either (i) imposes an injunction or
other equitable relief upon the Indemnified Party, (ii) does not include a provision whereby the plaintiff or claimant in the matter unconditionally releases the Indemnified Party and its officers, directors, employees and Affiliates from all
liability with respect thereto, (iii) contains any admission or statement suggesting any wrongdoing or liability on behalf of the Indemnified Party; or (iv) results in any damages, costs, expenses or liabilities from such settlement,
compromise or consent being paid by any Indemnified Party for which the Indemnified Party does not receive full indemnification hereunder. 

SECTION 8.5 Tax Treatment of Indemnity Payments. Sellers and Buyers shall treat any payments that Buyers and Sellers receive
pursuant to this Article 8 as an adjustment to and refund of the Purchase Price for federal Tax purposes, unless a final determination (which shall include the execution of a Form 870-AD or successor form) with respect to Buyers and Sellers
causes such payment not to be treated as an adjustment to or refund of the Purchase Price for federal Tax purposes. 
 SECTION
8.6 GST Gross Up. If any payment made by Sellers or Buyers pursuant to this Article 8 is deemed by the Excise Tax Act (Canada) to include GST, or is deemed by any applicable provincial or territorial legislation to include a
similar value added or multi-staged tax, the amount of such payment shall be increased accordingly. 
 ARTICLE 9

 TAX MATTERS 

SECTION 9.1 Transfer Taxes Elections. All transfer, documentary, GST/HST, value added, sales, use, stamp, registration and other
similar Taxes on, and all conveyance fees, recording charges, and other fees and charges (including any penalties and interest) resulting from, the transactions contemplated by this Agreement (collectively, the “Transfer Taxes”) to the
extent recoverable by a Buyer shall be borne by Buyers. All other Transfer Taxes shall be borne one hundred percent (100%) by Sellers. Buyers and Sellers, as required, will prepare and file any affidavits or returns required in connection with
the foregoing at their own cost and expense. Buyers shall provide Sellers with a purchase exemption certificate or its equivalent to support any reasonable exemption from Transfer Taxes claimed in respect of the Acquired Assets. 

SECTION 9.2 HST Election. At the Closing, Canadian Buyer and Air Guard Canada shall execute jointly an election under
Section 167 of the Excise Tax Act (Canada) to 
  

 59 

 
have the sale of the Acquired Assets purchased from Air Guard Canada take place on a GST/HST-free basis under Part IX of the Excise Tax Act (Canada). Canadian Buyer shall file the election
in the manner and within the time prescribed by the relevant legislation. Notwithstanding anything to the contrary in this Agreement, Buyers shall indemnify and hold Air Guard Canada harmless in respect of any GST, penalties, interest and
other amounts which may be assessed against Air Guard Canada as a result of the transactions under this Agreement not being eligible for such election or as a result of Canadian Buyer’s failure to file the election within the prescribed
time.  
 SECTION 9.3 Canadian Tax Elections. In accordance with the requirements of the Income Tax Act
(Canada), the regulations thereunder, the administrative practice and policy of the Canada Revenue Agency and any applicable equivalent or corresponding provincial or territorial legislative, regulatory and administrative requirements, where
applicable, with respect to each purchase and sale of Acquired Assets, Buyers and the applicable Seller shall make and file, in a timely manner: 

(a) A joint election to have section 22 of the Income Tax Act (Canada), and any equivalent or corresponding provision under
applicable provincial or territorial tax legislation, apply in respect of the Accounts Receivable of Air Guard Canada included in the Acquired Assets and shall designate therein that portion of the Air Guard Canada Purchase Price allocated to such
Accounts Receivable under Section 2.9 as the consideration paid by Canadian Buyer to Air Guard Canada. 
 (b) If requested
by either party, Sellers and Buyer shall file any elections or amended elections in prescribed form (or such other form as such party may reasonably request) and within the prescribed time limits pursuant to proposed section 56.4 of
the Income Tax Act (Canada) as it reads on the date of this Agreement or any amended or successor provision hereto, and any analogous provision of provincial or territorial Tax legislation. 

(c) Canadian Buyer and Air Guard Canada shall prepare and file their respective Tax Returns in a manner consistent with the aforesaid
elections, provided such manner is in accordance with Applicable Law. 
 (d) If a party to this Agreement fails to file its Tax
Returns in a manner consistent with the aforesaid elections, provided such manner is in accordance with Applicable Law, it shall indemnify and save harmless the other party or parties in respect of any resulting Taxes and any resulting legal or
accounting expenses paid or incurred by the other party or parties. 
 SECTION 9.4 Pre-Closing Taxes; Elections. Sellers
shall be liable for all Taxes of or relating to the Acquired Assets or the Business for any period or portion thereof ending on or prior to the Closing Date. No new elections with respect to Taxes or any change in current elections with respect to
Taxes, affecting the Acquired Assets or Assumed Liabilities shall be made after the date of this Agreement without Buyer’s consent. 

SECTION 9.5 Pre-Closing Withholding and Reporting. Sellers shall be responsible for and will perform all Tax withholding, payment
and reporting duties with respect 
  

 60 

 
to any wages and other compensation to any employee of Sellers in connection with the operation or conduct of the Business for any period or portion thereof ending on or prior to the Closing
Date. Sellers and Buyers agree to utilize, or cause their respective Affiliates to utilize, the standard procedures set forth in Revenue Procedure 2004-53, 2004-2 C.B. 320 with respect to wage reporting for the Hired Employees subject to United
States Tax. 
 SECTION 9.6 Cooperation. Each of the Buyers and each of the Sellers shall reasonably cooperate, and shall
cause their respective Affiliates, and their and their Affiliates’ respective officers, employees, agents, auditors and representatives to reasonably cooperate, in connection with the preparation and filing of all Tax Returns, any other
returns, reports and forms relating to Taxes, audit examinations and any administrative or judicial proceedings relating to Taxes, and as necessary or desirable in order to minimize any withholding Taxes imposed on the transactions contemplated by
this agreement, including the furnishing or making available to each other of records, information, personnel, powers of attorney or other materials necessary or helpful for the preparation and filing of all Tax Returns and any other returns,
reports and forms relating to Taxes, the conduct of audit examinations, the resolving of or the defense of any administrative or judicial proceedings relating to Taxes. 

Each Buyer and each Seller recognizes that the others may need access, from time to time, after the Closing Date, to certain accounting
and Tax records and information held by it, to the extent such records and information pertain to events occurring prior to the Closing Date; therefor, each Buyer and each Seller agrees, (a) to properly retain and maintain such records and
(b) to allow each of the other parties hereto and its respective agents, auditors and representatives, at times and dates mutually acceptable to the parties hereto, to inspect, review and make copies of such records as such party or its agents,
auditors or representatives may deem necessary or appropriate from time to time, such activities to be conducted during normal business hours and at the expense of the requesting party. 

ARTICLE 10 

MISCELLANEOUS 

SECTION 10.1 Entire Agreement; Assignment. This Agreement (including the Seller Disclosure Schedule, the Updated Disclosures (if
any and as permitted pursuant to Section 5.10) and the other exhibits and schedules hereto), the Transaction Documents and, until Closing the Confidentiality Agreement, (a) constitute the entire agreement between the parties hereto with
respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings both written and oral between the parties hereto with respect to the subject matter hereof and thereof; and (b) shall not be assigned
by operation of law or otherwise without the written consent of all the parties hereto or thereto (as applicable); provided, however, that (i) Buyers may, without any consent, assign any or all of their rights and obligations under this
Agreement to any affiliate of Buyers, but no such assignment shall relieve Buyers of their obligations hereunder if such assignee does not perform such obligations, and (ii) Buyers may, without any consent, assign any or all of their rights,
but not their obligations, hereunder to any of their financing sources as collateral security. 
  

 61 

 SECTION 10.2 Severability. To the extent any provision of this Agreement or the
application thereof to any Person or circumstance is held invalid or unenforceable in any jurisdiction, with respect to such jurisdiction, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall
not be affected thereby and to such end the provisions of this Agreement are agreed to be severable. Any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by Applicable Law, the parties hereto waive any provision of law that renders any such provision invalid or unenforceable in any respect. 

SECTION 10.3 Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be
given (and shall be deemed to have been duly given upon receipt) by delivery in person, by facsimile, by nationally recognized overnight courier or by registered or certified mail (postage prepaid, return receipt requested) to each other party
hereto as follows: 
  

			
	 if to Buyers [or Zep]:
	  	Amrep, Inc.
		  	1310 Seaboard Industrial Boulevard, NW
		  	Atlanta, GA 30318
		  	Telecopier: (404) 367-4083
		  	Attention: Mark R. Bachmann
		
	 with a copy to:
	  	Hunton & Williams LLP
		  	Bank of America Plaza
		  	600 Peachtree Street, N.E., Suite 4100
		  	Atlanta, GA 30308
		  	Telecopier: (404) 602-9012
		  	Attention: G. Roth Kehoe II
		
	 if to any Seller or Watco to:
	  	c/o Watco International
		  	Holdings Corp.
		  	64 Avenue of Industry
		  	Waterbury, CT 06705
		  	Telecopier: (203) 805-0630
		  	Attention: Michael Rohl
		
	 with copies to:
	  	Wind Point Partners
		  	676 N. Michigan Avenue
		  	Chicago, IL 60611
		  	Telecopier: (312) 255-4820
		  	Attention: Michael L. Nelson
		
	and	  	

  

 62 

			
		  	Reed Smith LLP
		  	10 S. Wacker Drive, 40th Floor
		  	Chicago, IL 60606
		  	Telecopier: (312) 207-6400
		  	Attention:         Seth M. Hemming
		  	                          Michelle L.
Moore
		
	 if to WPP V or WPP EAP to:
	  	Wind Point Partners
		  	676 N. Michigan Avenue
		  	Chicago, IL 60611
		  	Telecopier: (312) 255-4820
		  	Attention: Michael L. Nelson
		
	 with copies to:
	  	Reed Smith LLP
		
		  	10 S. Wacker Drive, 40th Floor
		  	Chicago, IL 60606
		  	Telecopier: (312) 207-6400
		  	Attention:         Seth M. Hemming
		  	                          Michelle L.
Moore

 or to such other address as the person to whom notice is given may have previously furnished to the others in writing in
the manner set forth above. 
 SECTION 10.4 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to the choice-of-laws or conflicts-of-laws provisions thereof, or rule (whether the State of Georgia or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware. 
 SECTION 10.5 Construction. The parties hereto have jointly participated
in the negotiation and drafting of this Agreement. In the event of an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumptions or burdens of proof
shall arise favoring any party hereto by virtue of the authorship of any of the provisions of this Agreement. Each defined term used in this Agreement has a comparable meaning when used in its plural or singular form. Each gender-specific term used
herein has a comparable meaning whether used in a masculine, feminine or gender-neutral form. As used in this Agreement, the word “including” and its derivatives means “without limitation” and its derivatives and shall be deemed
to be for purposes of identifying only one or more of the possible alternatives, the word “or” is not exclusive and the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to
this Agreement as a whole. As used in this Agreement, the term “knowledge of Sellers,” “Knowledge of Sellers,” “Sellers’ Knowledge”, “Seller’s Knowledge,” “knowledge of Seller” or any
similar phrases, shall mean the actual knowledge of Michael Rohl, Robert Potvin, Ron Lombardi, Mark Sargent, John Wishney and Michael Nelson and such knowledge and awareness as any such person should have had after reasonable inquiry of the
employees who directly report to such person. The section headings contained in this Agreement are inserted for convenience of reference only and 

 

 63 

 
shall not affect in any way the meaning or interpretation of this Agreement. Reference in this Agreement to any legal term for any law, action, remedy, method of judicial proceeding, legal
document, legal status, court, official or any other legal concept or thing shall in respect of any jurisdiction other than the United States be deemed to include that legal concept or thing in that other jurisdiction which most nearly approximates
that United States legal term (in addition to any other analogous legal concept or term specified). The schedules (including the Seller Disclosure Schedule) and exhibits hereto and any Updated Disclosures, as permitted pursuant to Section 5.10,
identified in this Agreement are incorporated herein by reference and made a part hereof. Any capitalized terms used in any schedule (including the Seller Disclosure Schedule) or exhibit attached hereto or any Updated Disclosure and not otherwise
defined therein shall have the meanings set forth in this Agreement (or, in the absence of any ascribed meaning, the meaning customarily ascribed to any such term in Sellers’ industry or in general commercial usage). Where any provision in this
Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether the action in question is taken directly or indirectly by such Person. All references to dollars (or the
symbol “$”) contained herein shall be deemed to refer to United States dollars. 
 SECTION 10.6 Parties in
Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and its successors and permitted assigns and, except as provided in Section 5.6 and Article 8, nothing in this Agreement express or
implied is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. 

SECTION 10.7 Compliance with Bulk Sales Laws. Each party hereto hereby waives compliance by the parties hereto with the “bulk
sales,” “bulk transfers” or similar Applicable Laws and all other similar Applicable Laws in all applicable jurisdictions in respect of the transactions contemplated by this Agreement; provided that Sellers shall indemnify and hold
Buyers harmless for the failure to comply with the Bulk Sales Act (Ontario) or any similar Law in any Canadian jurisdiction wherein any of the Acquired Assets are located. 

SECTION 10.8 Cooperation Following the Closing. Following the Closing, each party hereto shall deliver to the other party such
further information and documents and shall execute and deliver to the other party such further instruments and agreements as any other party shall reasonably request to consummate or confirm the transactions provided for herein, to accomplish the
purpose hereof or to assure to any other party the benefits hereof. 
 SECTION 10.9 Personal Liability. Except with
respect to the Non-Competition Agreements, this Agreement shall not create or be deemed to create or permit any personal liability or obligation on the part of any direct or indirect stockholder of any Seller or Buyers or any officer, director,
manager, member, employee, agent, representative or investor of any party hereto. 
 SECTION 10.10 Expenses. Except as
otherwise explicitly provided for herein, each of the parties hereto will bear all legal, accounting, and other fees and expenses incurred by it or on its behalf in connection with the transactions contemplated by this Agreement, whether or not such
transactions are consummated. 
  

 64 

 SECTION 10.11 Disclosure Generally. Of and to the extent any information required to
be furnished in any section of the Seller Disclosure Schedule is expressly set forth in this Agreement or is disclosed in any section of the Seller Disclosure Schedule or in any Updated Disclosures, such information shall be deemed to be included in
all sections of the Seller Disclosure Schedule or Updated Disclosures, in which the information is required to be included to the extent that such other disclosure is reasonably apparent on its face. 

SECTION 10.12 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original and all of which shall constitute one and the same agreement. It is the express intent of the parties hereto to be bound by the exchange of signatures on this Agreement via facsimile or electronic mail via the portable document format
(PDF). A facsimile or other copy of a signature shall be deemed an original. 
 SECTION 10.13 Arbitration; Waiver of Jury
Trial. 
 (a) Arbitration. Each party to this Agreement hereby irrevocably agrees that, except as expressly provided
in Article 2 Article 8 or Section 10.13(b) and except the enforcement (including any equitable relief or specific enforcement) of any of the covenants contained in Article 5 hereof, any legal action or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby, shall be resolved by binding arbitration (“Arbitration”) in accordance with the following procedures: 

(i) Initiation of the Arbitration. The party or parties on one side of the dispute(s) (collectively the
“Claimant”) may initiate the Arbitration by sending to the party or parties on the other side of the dispute(s) (collectively, the “Respondent”) written notice identifying the matter(s) in dispute and invoking the procedures of
this Section 10.13(a) (the “Demand”). The Demand shall include a brief statement setting forth the nature of the dispute(s), the amount in controversy, if any and if known, and the remedy sought. Within thirty (30) days of
receipt of the Demand, the Respondent shall submit a statement (the “Answer”), that shall set forth the Respondent’s response(s) to the Claimant’s claim(s) and any counterclaims asserted by the Respondent, setting forth the
nature and amount of such counterclaim(s) if any and if known, and the remedy sought by the Respondent. 

(ii) Selection of the General Arbitrators. Within five (5) Business Days after the due
date of the Answer (the “Answering Date”), the parties shall confer and make a bona fide attempt to agree upon three (3) independent arbitrators to whom to submit the matter in dispute for final and binding arbitration (the
“General Arbitrators”). The General Arbitrators shall be individuals who are either attorneys or business persons experienced with merger and acquisition transactions of the type set forth in this Agreement. If the parties cannot agree
upon three arbitrators, the arbitrators they do agree upon shall select the remaining member or members of the panel. In the event that, on or prior to the fifteenth
(15th) Business Day following the Answering Date, the
parties cannot agree upon at least one General Arbitrator, the parties shall submit the Demand and Answer, along with required fees, to the American Arbitration Association (“AAA”), and a three member neutral panel of General Arbitrators
who have familiarity and experience with merger and acquisition transactions of the type set forth in this 
  

 65 

 
Agreement shall be selected in accordance with the Commercial Arbitration Rules of the AAA, or any successor thereto, in effect at the time the relevant dispute, controversy, difference or claim
is submitted for arbitration pursuant to this Agreement (the “AAA Rules”). However chosen, the parties shall use commercially reasonable efforts to engage the General Arbitrators within thirty (30) days of the Answering Date.

 (iii) Rules of Procedure. The Arbitration proceeding shall be conducted in accordance with the AAA
Rules, except as modified in this Section 10.13(a) (collectively, the “Arbitration Rules”). 

(iv) Discovery. The parties shall have twenty (20) Business Days following the date the third and last General
Arbitrator is engaged (the “Arbitrator Engagement Date”) to serve written document requests and not more than ten (10) interrogatories (including subparts). Responses to written discovery shall be due thirty (30) Business Days
after service on the party(ies) from whom such discovery is sought. Discovery shall be conducted in accordance with the Arbitration Rules of the AAA, or any successor thereto, in effect at the time the relevant dispute, controversy, difference or
claim is submitted for arbitration pursuant to this Agreement. The party(ies) on each side of the dispute shall have the right to take up to ten (10) depositions, with each deposition limited to seven hours of testimony. Subject to the
availability of the deponent, such depositions shall be completed within three (3) months of the Arbitrator Engagement Date. The General Arbitrators shall determine the scope and order of discovery available to the parties, and for good cause
shown by the requesting party(ies), can modify the discovery schedule set forth herein. 
 (v) The Arbitration
Hearing. At a date that is mutually convenient to the General Arbitrators and the parties, but commencing no later than thirty (30) days following the close of discovery, the General Arbitrators shall commence the arbitration hearing (the
“Arbitration Hearing”). The Arbitration Hearing shall take place at a location mutually selected by the parties or, absent agreement, chosen by the General Arbitrators. The Arbitration Hearing need not run for consecutive days but must be
completed within sixty (60) days following commencement of the Arbitration Hearing. At the Arbitration Hearing, the parties to this Agreement shall follow the Federal Rules of Evidence, and the General Arbitrators are bound to apply such rules
of evidence, unless the parties mutually agree to deviate from any rule in writing in advance of the Arbitration Hearing. The General Arbitrators are also bound to follow the substantive laws of Delaware applicable to the issues in the case, without
regard to conflict of law principles. Upon a showing of good cause by the requesting party(ies), the General Arbitrators, using their reasonable discretion, shall determine the need to modify the time limits set forth in this clause (v). 

(vi) Form of Decision. The General Arbitrators shall render a reasoned award in writing, setting forth their
decision, the basis therefor, and the relief to be granted to the party(ies) on each side of the dispute (the “Award”), no later than the thirty (30) days following the last day of the Arbitration Hearing. In no event shall the
General Arbitrators award punitive damages to any of the parties involved in the dispute. The General Arbitrators shall be allowed to grant injunctive relief and may, at the General 

 

 66 

 
Arbitrators’ sole discretion, require the posting of a bond. The General Arbitrators’ decision shall be a final and binding determination of the dispute. Judgment upon the Award may be
entered in any court having jurisdiction and venue over the party(ies) against whom the execution is sought, or in any jurisdiction in which such party’s (parties’) assets are located. 

(vii) Miscellaneous Provisions. 

(A) Payment of Arbitration Expenses. The parties shall pay the General Arbitrators’ fees and expenses while
the Arbitration is pending in accordance with the AAA Rules subject to clause (C) below. 
 (B)
Submission to Jurisdiction. To the extent any party seeks to challenge or dispute the scope, jurisdiction, conduct or result of the Arbitration, or requires judicial intervention in aid or furtherance of the Arbitration, such party(ies) shall
bring such action in the state or federal court located in the state of Delaware. With respect to any such action, the parties irrevocably submit to the exclusive jurisdiction of the state and federal courts located in the state of Delaware;
irrevocably and unconditionally waive any objection to the laying of venue of any such action in the state or federal courts located in the state of Delaware; and hereby further irrevocably and unconditionally agree not to plead or claim that any
such action in such court has been brought in an inconvenient forum or to raise any similar defense or objection. 

(C) Attorneys Fees and Costs. The prevailing party in the Arbitration shall be entitled to payment of its
reasonable out of pocket costs and expenses (including reasonable and documented fees and disbursements of counsel and other professionals). To the extent the General Arbitrators award less than all of the relief requested, the General Arbitrators
shall award the reasonable out of pocket costs and expenses of a party in proportion to the extent such party prevailed in the Arbitration. If a party fails to proceed with the Arbitration, unsuccessfully challenges the Award, or fails to comply
with the Award, the party(ies) on the other side of the dispute shall be entitled to recover its(their) costs of suit including reasonable attorneys’ fees for having to compel arbitration or defend or enforce the Award. 

(b) Waiver of Trial by Jury. TO THE EXTENT PERMITTED BY LAW, EACH OF THE SELLERS AND BUYERS HEREBY KNOWINGLY, VOLUNTARILY,
INTENTIONALLY IRREVOCABLY AND UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTION DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR THERETO IN CONNECTION HEREWITH OR THEREWITH. EACH OF THE SELLERS AND BUYERS HEREBY EXPRESSLY ACKNOWLEDGE THAT THIS WAIVER

  

 67 

 
IS A MATERIAL INDUCEMENT FOR BUYERS AND SELLERS TO ENTER INTO THIS AGREEMENT. 

SECTION 10.14 Zep Guaranty. Zep does hereby fully, absolutely, unconditionally and irrevocably guaranty the timely payment when
due and owing of the obligations of the Buyers (i) under Sections 2.7, 2.8 and 2.10 hereof; (ii) under Article 8 hereof and (iii) under the other Transaction Documents, in each case, (a) including all amounts Buyers are
obligated to pay hereunder or the Transaction Documents in the event Buyers fail to perform their obligations thereunder or hereunder or are otherwise liable for damages pursuant thereto and (b) to the extent not paid by Buyers at such time
(collectively, the “Obligations”); provided that nothing herein shall cause Zep to be a Buyer or to otherwise own any Acquired Asset or assume any Assumed Liability. 

(a) The obligations of Zep in this Section 10.14 are primary and not as surety only, and this Guarantee constitutes a guarantee of
payment when due and owing, and not merely of collection. Zep expressly waives any legal obligations, duty or necessity for the Sellers to proceed first against Buyers or to exhaust any remedy it may have against Buyers. The obligations of Zep
hereunder shall remain in full force and effect until all Obligations have been performed in full, without regard to, and shall not be released, discharged or in any way affected to the extent permitted by applicable law (whether or not Zep shall
have any knowledge or notice thereof): 
 (i) any waiver, consent, change, extension, or indulgence in respect of
any Obligation; 
 (ii) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation, dissolution or similar proceeding with respect to Buyers or Zep; 
 (iii) any assignment or other
transfer of this Agreement or any Transaction Document by the Sellers or Buyers; 
 (iv) any lien, charge,
restriction or encumbrance affecting Buyers; 
 (v) any sale or other disposition of all or any part of the
capital stock or assets of Buyers; 
 (vi) any payment by Buyers which is received by Buyers’ trustee in
bankruptcy; or 
 (vii) any other circumstance which might otherwise constitute a legal or equitable discharge or
defense of a guarantor (other than payment in full of the Obligations). 
 Zep unconditionally waives, to the extent permitted by applicable
law, notice of any of the matters referred to in this Section 10.14, all notices which may be required by statute, rule of law or otherwise to preserve any rights against Zep hereunder, including, without limitation, any demand, proof or notice
of nonpayment of any sums payable under this Agreement or any 
  

 68 

 
Transaction Document (including, without limitation, any indemnity payment), any right to the enforcement, assertion or exercise of any right, remedy, power or privilege under or in respect of
any of the Obligations, any requirement of diligence and any requirement to mitigate the damages resulting from a breach of or default under this Agreement or the Transaction Documents by Buyers. All of the Obligations shall conclusively be deemed
to have been created, contracted or incurred in reliance upon this Guarantee and all dealings between the Sellers and Buyers shall likewise be conclusively presumed to have been had or consummated in reliance upon this Guarantee. 

(b) Zep agrees that the Sellers may at any time and from time to time, either before or after the maturity thereof, without notice to or
further consent of Zep, extend the time of payment of, exchange or surrender any collateral for, or renew any of the Obligations, and may also make any agreement with Buyers for the extension, renewal, payment, compromise, discharge or release
thereof, in whole or in part, or for any modification or waiver of the terms thereof or of any agreement between Sellers and Buyers or any such other Person, without in any way impairing or affecting the provisions of this Section 10.14.

 (c) Zep agrees to pay on demand all reasonable fees and out-of-pocket expenses (including the reasonable fees and expenses of
the Sellers’ counsel) in any way relating to the enforcement of this Section 10.14 against Zep or the protection of the rights provided hereunder; provided, that (i) Zep shall not be liable for any such fees and expenses of the
Sellers if no payment under this Guarantee is or was at such time due and owing and (ii) Zep shall have no liability to pay any such fees and expenses of Sellers if such expenses would not have been required to be paid by Buyers with respect to
the enforcement of their obligations, or the rights and remedies of the Sellers, hereunder or under the Transaction Documents. 

(d) This Section 10.14 shall remain in full force and effect and be binding upon Zep and its successors and assigns until all of the
Obligations have been satisfied in full. If any of the present or future Obligations are guaranteed by any Persons in addition to Zep, the death, release or discharge, in whole or in part, or the bankruptcy, liquidation or dissolution of one or more
of them shall not discharge or affect the liabilities of Zep under this Section 10.14. 
 (e) No failure to exercise and no
delay in exercising, on the part of Sellers, any right, remedy, power or privilege provided for in this Section 10.14 shall operate as a waiver thereof, nor shall any single or partial exercise by Sellers of any right, remedy, power or
privilege hereunder preclude any other or future exercise of any such right, remedy, power or privilege. Each and every right, remedy, power and privilege granted to Sellers under this Section 10.14 or allowed to it by Applicable Law shall be
cumulative and not exhaustive of any other, and may be exercised by Sellers from time to time. 
 (f) ZEP ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS SECTION 10.14 IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, IT HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECTION 10.14. ZEP 

 

 69 

 
CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER, (ii) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (iii) IT MAKES SUCH WAIVER VOLUNTARILY AND (iv) THIS WAIVER AND THE CERTIFICATIONS CONTAINED HEREIN HAVE INDUCED THE SELLERS TO
ENTER INTO THE AGREEMENT. 
 (g) Zep (i) irrevocably submits itself to the personal jurisdiction of any federal or state
court of appropriate jurisdiction that presides in New Castle County, Delaware, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, in any suit, action or proceeding arising out of or relating to this
Guarantee or any facts and circumstances leading to its execution or performance, (ii) agrees that all claims in respect of such suit, action or proceeding must be brought, heard and determined exclusively in such courts, (iii) agrees that
it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such courts, (iv) agrees not to bring any action or proceeding arising out of or relating to this Section 10.14 in any other court
and (v) waives any defense of inconvenient forum to the maintenance of any suit, action or proceeding so brought. 
 (h)
Zep agrees to waive any bond, surety or other security that might be required of any other party with respect to any action, suit or proceeding, including any appeal thereof. 

[signatures on following pages] 
  

 70 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Asset Purchase Agreement to be duly executed
on its behalf as of the day and year first above written. 
  

					
	WATERBURY COMPANIES, INC.
		
	By:	 	/s/ Michael Rohl
		 	Name:	 	Michael Rohl
		 	Title:	 	Chairman of the Board, Chief Executive Officer and President

 

					
	AIR GUARD CONTROL (CANADA) LIMITED
		
	By:	 	/s/ Michael Rohl
		 	Name:	 	Michael Rohl
		 	Title:	 	Chairman of the Board, Chief Executive Officer and President

 

					
	AIR GUARD CONTROL CORPORATION
		
	By:	 	/s/ Michael Rohl
		 	Name:	 	Michael Rohl
		 	Title:	 	Chairman of the Board, Chief Executive Officer and President

Signature pages to Asset Purchase Agreement 

					
	AMREP, INC.
		
	By:	 	/s/ Mark R. Bachmann
		 	Name:	 	Mark R. Bachmann
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	AMREP IP HOLDINGS, LLC
		
	By:	 	/s/ Mark R. Bachmann
		 	Name:	 	Mark R. Bachmann
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	ACUITY HOLDINGS, INC.
		
	By:	 	/s/ Mark R. Bachmann
		 	Name:	 	Mark R. Bachmann
		 	Title:	 	Executive Vice President, Chief Financial Officer

Signature pages to Asset Purchase Agreement 

			
	 Solely with respect to Section 5.9 hereof:

 
 WATCO INTERNATIONAL HOLDINGS CORP.

		
	By:	 	/s/ Michael Rohl
	Name:	 	Michael Rohl
	Title:	 	Chief Executive Officer and President
	
	 WIND POINT PARTNERS V, L.P.
  

By: Wind Point Investors V, L.P.
 Its: General
Partner

		
	By:	 	/s/ Nathan Brown
	Name:	 	Nathan Brown
	Its: Managing Member
		
	By:	 	/s/ Robert Cummings
	Name:	 	Robert Cummings
	Its: Managing Member
	
	 WIND POINT EXECUTIVE ADVISOR PARTNERS, L.P.

 
 By: Wind Point Investors V, L.P.

Its: General Partner

		
	By:	 	/s/ Nathan Brown
	Name:	 	Nathan Brown
	Its: Managing Member
		
	By:	 	/s/ Robert Cummings
	Name:	 	Robert Cummings
	Its: Managing Member

Signature pages to Asset Purchase Agreement 

			
	 Solely with respect to Section 3.14 hereof:

 
 ZEP INC.

		
	By:	 	/s/ Mark R. Bachmann
	Name:	 	Mark R. Bachmann
	Title:	 	Executive Vice President and Chief Financial Officer

Signature pages to Asset Purchase Agreement 

 EXHIBIT A 

FORM OF ESCROW AGREEMENT 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT B 

NET WORKING CAPITAL CALCULATIONS 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT C 

FINANCIAL INFORMATION 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT D 

EMPLOYEES 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT E 

BUYERS’ CLOSING CERTIFICATE 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT F 

TRANSITION SERVICES AGREEMENT 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT G 

IP LICENSE AGREEMENT 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT H 

SELLER’S CLOSING CERTIFICATE 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request) 

 EXHIBIT I 

GUARANTY BY WATCO 

(The Registrant will furnish supplementally a copy of this exhibit to the Commission upon request)

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