Document:

Partnership Purchase Agreement

 Exhibit 10.2 
 Execution Version 
  
  
 PARTNERSHIP PURCHASE AGREEMENT 
 BY
AND AMONG 
 SP NEWSPRINT HOLDINGS LLC, 
 SP NEWSPRINT MERGER LLC, 
 SP NEWSPRINT CO., 
 AND 
 THE OTHER PARTIES SIGNATORY
HERETO 
 Dated as of March 31, 2008 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I	  	  DEFINITIONS	  	1
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Other Definitions	  	12
	 Section 1.3
	  	Construction	  	13
			
	ARTICLE II	  	  PURCHASE AND SALE	  	14
	 Section 2.1
	  	The Purchase and Sale	  	14
	 Section 2.2
	  	Purchase Price	  	14
	 Section 2.3
	  	Closing	  	15
	 Section 2.4
	  	Deliveries by the Sellers	  	15
	 Section 2.5
	  	Deliveries by Buyer	  	16
	 Section 2.6
	  	Adjustment to Purchase Price	  	17
	 Section 2.7
	  	Reserve Account; Payment Agreement.	  	19
			
	ARTICLE III	  	  REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	21
	 Section 3.1
	  	Organization	  	21
	 Section 3.2
	  	Authorization	  	21
	 Section 3.3
	  	Capitalization	  	22
	 Section 3.4
	  	Subsidiaries	  	22
	 Section 3.5
	  	Consents and Approvals; No Violations	  	22
	 Section 3.6
	  	Financial Statements	  	22
	 Section 3.7
	  	No Undisclosed Liabilities	  	23
	 Section 3.8
	  	Absence of Certain Changes	  	23
	 Section 3.9
	  	Real Property	  	24
	 Section 3.10
	  	Intellectual Property	  	25
	 Section 3.11
	  	Litigation	  	26
	 Section 3.12
	  	Compliance with Applicable Law	  	26
	 Section 3.13
	  	Company Contracts	  	26
	 Section 3.14
	  	Tax Returns; Taxes	  	28
	 Section 3.15
	  	Environmental Matters	  	29
	 Section 3.16
	  	Licenses and Permits	  	30
	 Section 3.17
	  	Suppliers	  	30
	 Section 3.18
	  	Insurance	  	31
	 Section 3.19
	  	Company Benefit Plans	  	31
	 Section 3.20
	  	Labor Relationships	  	33
	 Section 3.21
	  	Certain Fees	  	34
	 Section 3.22
	  	Condition and Sufficiency of Assets	  	34
	 Section 3.23
	  	NO OTHER REPRESENTATIONS OR WARRANTIES	  	35
			
	ARTICLE IV	  	  REPRESENTATIONS AND WARRANTIES OF EACH SELLER	  	35
	 Section 4.1
	  	Authorization	  	35
	 Section 4.2
	  	Partnership Interest Ownership	  	35
	 Section 4.3
	  	Consents and Approvals	  	35

					
	 Section 4.4
	 	Certain Fees	  	36
			
	 ARTICLE V
	 	  REPRESENTATIONS AND WARRANTIES OF BUYER	  	36
	 Section 5.1
	 	Organization	  	36
	 Section 5.2
	 	Authorization	  	36
	 Section 5.3
	 	Consents and Approvals; No Violations	  	36
	 Section 5.4
	 	Litigation	  	37
	 Section 5.5
	 	Financial Capability	  	37
	 Section 5.6
	 	Purchase for Investment; Accredited Investor	  	37
	 Section 5.7
	 	Independent Review	  	37
	 Section 5.8
	 	Certain Fees	  	38
			
	 ARTICLE VI
	 	  COVENANTS	  	38
	 Section 6.1
	 	Conduct of the Business	  	38
	 Section 6.2
	 	Access to Information	  	40
	 Section 6.3
	 	Consents	  	41
	 Section 6.4
	 	Commercially Reasonable Efforts	  	42
	 Section 6.5
	 	Public Announcements	  	42
	 Section 6.6
	 	Financing	  	42
	 Section 6.7
	 	Supplemental Disclosure	  	43
	 Section 6.8
	 	Tax Matters	  	44
	 Section 6.9
	 	Tax Indemnity by the Sellers	  	46
	 Section 6.10
	 	Preservation of Records	  	48
	 Section 6.11
	 	Buyer’s Efforts	  	48
	 Section 6.12
	 	Employees	  	49
	 Section 6.13
	 	Distributions	  	51
	 Section 6.14
	 	Further Assurances	  	51
	 Section 6.15
	 	Confidentiality	  	51
	 Section 6.16
	 	Altamaha Matter	  	51
	 Section 6.17
	 	Partnership Consents and Waivers	  	52
	 Section 6.18
	 	Non-Solicitation	  	52
	 Section 6.19
	 	Brant Guarantee	  	53
	 Section 6.20
	 	Industrial Revenue Bond Payoff Procedure	  	53
	 Section 6.21
	 	Time of Performance of Covenants	  	53
			
	 ARTICLE VII
	 	  CONDITIONS TO OBLIGATIONS OF THE PARTIES	  	54
	 Section 7.1
	 	Conditions to Each Party’s Obligations	  	54
	 Section 7.2
	 	Conditions to Obligations of the Sellers and the Company	  	54
	 Section 7.3
	 	Conditions to Obligations of Buyer	  	54
			
	 ARTICLE VIII
	 	  TERMINATION	  	55
	 Section 8.1
	 	Termination	  	55
	 Section 8.2
	 	Procedure and Effect of Termination	  	56
	 Section 8.3
	 	Termination Fee	  	57
			
	 ARTICLE IX
	 	  INDEMNIFICATION	  	58
	 Section 9.1
	 	Indemnification Obligations of the Sellers	  	58

  

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	 Section 9.2
	  	Indemnification Obligations of Buyer	  	59
	 Section 9.3
	  	Indemnification Procedure	  	59
	 Section 9.4
	  	Claims Period	  	60
	 Section 9.5
	  	Liability Limits	  	61
	 Section 9.6
	  	Exclusive Remedies	  	63
	 Section 9.7
	  	Tax Matters	  	63
	 Section 9.8
	  	Newberg Facility Indemnity Limits.	  	63
			
	 ARTICLE X
	  	  MISCELLANEOUS	  	66
	 Section 10.1
	  	Fees and Expenses	  	66
	 Section 10.2
	  	Notices	  	66
	 Section 10.3
	  	Severability	  	68
	 Section 10.4
	  	Binding Effect; Assignment	  	69
	 Section 10.5
	  	No Third Party Beneficiaries	  	69
	 Section 10.6
	  	Section Headings	  	69
	 Section 10.7
	  	Entire Agreement	  	69
	 Section 10.8
	  	Governing Law; Venue	  	69
	 Section 10.9
	  	Specific Performance	  	70
	 Section 10.10
	  	Counterparts	  	70
	 Section 10.11
	  	Amendment; Modification	  	70
	 Section 10.12
	  	Conflicts and Privilege	  	70
	 Section 10.13
	  	Schedules	  	70

 Exhibits 
  

			
	 Exhibit 1.1(a)
	  	Brant Guarantee
	 Exhibit 1.1(b)
	  	White Birch Paper Company Guarantee
	 Exhibit 1.1(c)
	  	Parent Guarantee - Media General, Inc.
	 Exhibit 1.1(d)
	  	Parent Guarantee - McClatchy Company
	 Exhibit 1.1(e)
	  	Parent Guarantee - Cox Newspapers, Inc.
	 Exhibit 1.1(f)
	  	Pro Rata Percentage
	 Exhibit 2.7(i)(A)
	  	Payment Agreement
	 Exhibit 2.7(ii)(B)
	  	Letter of Credit
	 Exhibit 5.5
	  	Financing Documents
	 Exhibit 6.6(a)
	  	Required Information
	 Exhibit 6.12(a)
	  	Buyer Employee Benefit Plans

  

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 PARTNERSHIP PURCHASE AGREEMENT 
 This PARTNERSHIP PURCHASE AGREEMENT, dated March 31, 2008 (this “Agreement”), is made and entered into by and among SP NEWSPRINT
HOLDINGS LLC, a Delaware limited liability company, and SP NEWSPRINT MERGER LLC, a Delaware limited liability company (together, “Buyer”), SP NEWSPRINT CO., a Georgia general partnership (the “Company”), VIRGINIA
PAPER MANUFACTURING CORP., a Georgia corporation (“Virginia Paper”), MCCLATCHY NEWSPRINT, INC., a Florida corporation (“McClatchy Newsprint”), and CEI NEWSPRINT, INC., a Georgia corporation (“CEI
Newsprint”). Virginia Paper, McClatchy Newsprint and CEI Newsprint are sometimes individually herein referred to as a “Seller”, and are collectively referred to herein as the “Sellers”. Buyer, the Company,
and each of the Sellers are sometimes individually referred to in this Agreement as a “Party” and collectively as the “Parties”. 
 WHEREAS, the Sellers constitute all of the partners of the Company, and collectively own all of the outstanding Partnership Interests (as defined herein); 
 WHEREAS, the Company and its Subsidiaries are in the business of operating newsprint mills used in the production of newsprint, procuring fiber used in
such operations and operating recycling facilities (the “Business”); and 
 WHEREAS, the Parties desire to enter into this
Agreement pursuant to which the Sellers will sell and assign to Buyer, and Buyer will purchase from the Sellers, all of the Partnership Interests on the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, agreements and conditions set forth in this
Agreement, and intending to be legally bound hereby, each Party hereby agrees: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1
Definitions. The following terms, as used in this Agreement, have the following meanings: 
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by, or under common control with, such specified Person. 
 “Altamaha” means Altamaha Electric Membership Corporation. 
 “Altamaha Agreement” means the Agreement dated as of October 15, 1977 by and between Altamaha and the Company
(formerly known as Southeast Paper Manufacturing Co.). 
 “Altamaha Group” means Altamaha and its officers,
directors, employees, Affiliates, shareholders, agents and representatives. 

 “Brant Guarantee” means the guarantee made by Peter M. Brant of the
obligations of Buyer in Section 8.3, in the form attached hereto as Exhibit 1.1(a). 
 “Business
Day” means any day except Saturday, Sunday or any days on which banks are generally not open for business in Atlanta, Georgia. 
 “Buyer Fundamental Obligations” means the indemnification obligations of the Buyer described in Sections 9.2(b) and 9.2(c), provided that the Buyer Fundamental Obligations shall not include
indemnification obligations of Buyer arising under Section 9.2(b) with respect to a breach by Buyer of a covenant of Buyer to be performed prior to the Closing. 
 “Buyer Fundamental Representations” means the representations or warranties of Buyer made in Section 5.1
(Organization), Section 5.2 (Authorization), Section 5.6 (Purchase for Investment; Accredited Investor) and Section 5.8 (Certain Fees). 
 “Buyer Indemnified Parties” means Buyer, and its Affiliates, and their respective officers, directors, employees, agents, trustees and representatives and each of the heirs, executors, successors and
assigns of any of the foregoing. 
 “Cash” means cash and cash equivalents. 
 “Change in Control Agreements” means the (a) Change in Control Agreement between the Company and Joseph R. Gorman,
dated July 25, 2007, as amended by Amendment Number One dated October 17, 2007, (b) the Change in Control Agreement between the Company and Mark Klimko, dated July 25, 2007, as amended by Amendment Number One dated
October 17, 2007, (c) the Change in Control Agreement between the Company and Mark J. Rawlings, dated July 25, 2007, as amended by Amendment Number One dated October 17, 2007, (d) the Change in Control Agreement between the
Company and Thomas M. Hahn, dated July 25, 2007, as amended by Amendment Number One dated October 17, 2007, (e) the Change in Control Agreement between the Company and Peter I. Labella, dated July 25, 2007, as amended by
Amendment Number One dated October 17, 2007, (f) the Change in Control Agreement between the Company and Randy B. Jones, dated July 25, 2007, as amended by Amendment Number One dated October 17, 2007 and (g) Change in
Control Agreement between the Company and John R. Wells, dated July 25, 2007, as amended by Amendment Number One dated October 17, 2007. 
 “Claims Period” means the period during which a claim for indemnification may be asserted hereunder by an Indemnified Party. 
 “Code” means the United States Internal Revenue Code of 1986, as amended from time to time. 
 “Company Benefit Plan” means each Employee Benefit Plan to which the Company or any Subsidiary makes, or has any
obligation to make, any contributions or with respect to which the Company or any Subsidiary has any other material liabilities. 
  

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 “Company Collective Bargaining Agreement” means the Labor Agreement,
dated April 1, 2002, by and between the Company and the Association of Western Pulp and Paper Workers. 
 “Company Industrial Revenue Bonds” means (a) the State of Oregon Economic Development Department Revenue Bonds Series 196, Series 197, Series 202 and Series 203 and (b) the Development Authority for Laurens County
Tax Exempt Adjustable Mode Solid Waste Disposal Revenue Bonds, Series 1993 and Series 1997, Southeast Paper Manufacturing Co. Project. 
 “Company Intellectual Property” means any Intellectual Property that is owned by the Company or any Subsidiary, including the Company Software. 
 “Company Registered Intellectual Property” means all of the Registered Intellectual Property owned by the Company or any
Subsidiary. 
 “Company Software” means all Software owned by the Company or any Subsidiary. 
 “Confidentiality Agreement” means that certain confidentiality agreement, dated April 6, 2007, by and between the
Company and White Birch Paper Company. 
 “Continued Employee” means each individual who is employed by the
Company or any of its Subsidiaries at the close of business on the Closing Date (including those who are actively employed or on leave, disability or other absence from employment) and each individual who has a right to be re-employed by the Company
or any Subsidiary under applicable Law or any Company or Subsidiary policy, in each case, whose terms of employment are not subject to a collective bargaining agreement. 
 “Contracts” means all agreements, contracts, leases, subleases, purchase orders, arrangements and legally enforceable
commitments to which the Company or any Subsidiary is a party and is currently subject to or is currently bound. 
 “Credit Agreement” means the Second Amended and Restated Credit Agreement, between the Company, TD Securities (USA) LLC (f/k/a TD Securities (USA) Inc.), SunTrust Bank, U.S. Bank National Association and TD Texas, dated
January 9, 2004, as amended by that certain First Amendment, dated April 19, 2005, as subsequently amended by that certain Second Amendment, dated December 13, 2005, as subsequently amended by that certain Third Amendment, dated
October 11, 2007, as subsequently amended by that certain Fourth Amendment dated January 7, 2008. 
 “Credit
Facilities” means the credit facilities contemplated by the Debt Financing Commitment. 
 “Current
Assets” means the consolidated current assets of the Company and its Subsidiaries as of the Closing Date as further determined in accordance with the guidelines set forth on Schedule 1.1(a) and GAAP applied on a basis consistent with
past practices, but excluding Cash; provided, however, that to the extent Schedule 1.1(a) is 

  

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inconsistent with GAAP or past practices, GAAP shall control with respect to valuation of current assets and Schedule 1.1(a) shall govern which items
are included as current assets. 
 “Current Liabilities” means the consolidated current liabilities of the
Company and its Subsidiaries as of the Closing Date as further determined in accordance with the guidelines set forth on Schedule 1.1(a) and GAAP applied on a basis consistent with past practices, but excluding (a)(i) all intercompany
indebtedness and (ii) the current portion of any Net Indebtedness subtracted from the Purchase Price pursuant to Section 2.2(b), (b) all of the Sellers’ Transactional Expenses and (c) any other amounts subtracted from the
Purchase Price pursuant to Section 2.2(c) or any amounts otherwise required by this Agreement to be paid for by the Sellers; provided, however, that to the extent Schedule 1.1(a) is inconsistent with GAAP or past practices,
GAAP shall control with respect to valuation of current liabilities and Schedule 1.1(a) shall govern which items are included as current liabilities. 
 “Debt Financing Commitment” means the financing commitment as in effect on the date hereof relating to the debt financing
to be obtained by Buyer or any Affiliate of Buyer from GECC in connection with the transactions contemplated by this Agreement, a copy of which is attached hereto as Exhibit 5.5. 
 “Definitive Debt Financing Documents” means the definitive financing documents to be entered into by Buyer pursuant to
the Debt Financing Commitment. 
 “Employee Benefit Plan” means, with respect to any Person, each plan or
agreement to which such Person makes, or has an obligation to make, contributions or to which such Person has any liability providing for employee benefits or for the remuneration of the employees, former employees, directors, managers, officers,
consultants, independent contractors, contingent workers or leased employees of such Person or the dependents of any of them (whether written or oral), including (a) each “welfare” plan (within the meaning of Section 3(1) of
ERISA, determined without regard to whether such plan is subject to ERISA), (b) each “pension” plan (within the meaning of Section 3(2) of ERISA, determined without regard to whether such plan is subject to ERISA), and
(c) each equity-based compensation, vacation, severance, employment, change in control, retention, fringe benefit, bonus, incentive, and deferred compensation plan, agreement, program, policy, practice or arrangement. 
 “Environment” means surface or ground water, drinking water supply, soil, surface or subsurface strata or medium, ambient
air and indoor air and natural resources such as wetlands flora and fauna. 
 “Environmental Claim” means any
administrative, regulatory or judicial action, suit, demand, demand letter, written claim, written notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, order, decree, judgment, or consent
agreement relating in any way to any Environmental Law, any Environmental Permit, or Hazardous Material, or arising from alleged injury, or threat to health, or the Environment, including (a) by any Governmental Authority for enforcement,
compliance, 

  

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cleanup, removal, response, remedial or other actions or damages and (b) by any Governmental Authority or third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief. 
 “Environmental Laws” means all U.S.
federal, state and local Laws relating to pollution or to protection of human health, or the Environment, and/or use, handling, distribution, generation, transportation, storage, treatment, Release, recycling, disposal of or exposure to Hazardous
Materials. 
 “Environmental Permits” means all licenses, approvals, authorizations, and identification
numbers required under Environmental Laws. 
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. 
 “ERISA Affiliate” means any Person (whether incorporated or unincorporated) that
together with the Company would be deemed a “single employer” within the meaning of Section 414 of the Code. 
 “ERISA Affiliate Plan” means each Employee Benefit Plan to which an ERISA Affiliate makes, or has any obligation to make, any contributions or with respect to which an ERISA Affiliate has any other liabilities. 

“Fixed Charge Coverage Ratio” shall have the meaning set forth in the Definitive Debt Financing Documents. 

“GAAP” means generally accepted accounting principles in the United States as in effect on any applicable date.

 “GECC” means General Electric Capital Corporation. 
 “Governmental Entity” means any federal, state, local or applicable non-U.S. government, any political subdivision
thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency. 
 “Harmful Code” means any computer viruses, worms, time bombs, logic bombs, Trojan horses, trap doors, backdoors, undocumented passwords, protect codes or other malicious computer instructions, devices
or techniques that can, or are designed to, threaten, assault, vandalize, subvert, disrupt, damage, slow down, disable or shutdown a computer system or any component of a computer system, including its security or user data. 
 “Hazardous Materials” means any material, waste, pollutant, contaminant, chemical, compound, mixture, constituent,
substance, by-product, or process-intermediate product in any form, including petroleum or petroleum-derived substance or waste, asbestos and asbestos containing material, and polychlorinated biphenyls, regulated by or which can give rise to
liability under any Environmental Law. 
  

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 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended. 
 “Indebtedness” means (a) all indebtedness for borrowed money or for the deferred
purchase price of property or services (including reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’ acceptances, whether or not matured), including the current portion of such indebtedness,
(b) all obligations evidenced by notes, bonds or debentures and (c) all amounts paid by the Company or its Subsidiaries in connection with the termination as of the Closing Date of any interest rate hedging or swap agreements. 

“Indemnified Party” means a Buyer Indemnified Party or Seller Indemnified Party. 
 “Intellectual Property” means any or all of the following and all rights, arising out of or in connection therewith:
(a) all patents and applications therefor in any jurisdiction and all reissues, divisions, renewals, re-examinations, extensions, provisionals, continuations and continuations-in-part thereof, (b) all inventions (whether patentable or
not), invention disclosures, improvements, Software, trade secrets, proprietary information, know-how, technology, designs, processes, methods, technical data and customer lists, and all documentation relating to any of the foregoing, (c) all
works of authorship (whether copyrightable or not), all copyrights, copyright registrations and applications therefor, any renewals or extensions thereof, and all other rights corresponding thereto, (d) all industrial designs (whether
patentable or not) and any registrations and applications therefor, (e) all Internet uniform resource locators, domain names, trade names, logos, slogans, designs, trade dress, trademarks and service marks and any registrations and applications
for any of the foregoing in any jurisdiction, and (f) the right to sue for past infringement or misappropriation of Intellectual Property. 
 “IRS” means the U.S. Internal Revenue Service. 
 “Knowledge” with respect to the Company means all facts known by those employees of the Company listed on Schedule 1.1(b) on the date hereof. 
 “Law” means any applicable common law and any applicable statutes, laws, rules, codes, regulations, ordinances, orders,
judgments, or decrees, of, or issued by, Governmental Entities. 
 “Licenses” means all licenses, permits
(including construction and operation permits), franchises and certificates issued by any Governmental Entity. 
 “Liens” means, with respect to any property, (a) any mortgage, deed of trust, lien, pledge, encumbrance, claim, charge, hypothecation, security interest or encumbrance of any kind, or any arrangement to provide
priority or preference or any filing of any financing statement under the UCC or any other similar notice of lien under any similar notice or recording statute of any Governmental Entity, including any easement, right-of-way or other encumbrance on
title to Real Property, in each of the foregoing cases whether voluntary or imposed by law, and any agreement to give any of the foregoing; 

  

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(b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing) relating to such property; and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 
 “Losses” means any claims, liabilities, obligations, damages, losses, costs (including any costs for investigation,
responses and other corrective actions and monitoring under any Environmental Law), expenses, penalties, fines and judgments (at equity or at law, including statutory and common) and damages (including natural resource damages) whenever arising or
incurred (including reasonable attorneys’ fees and expenses actually incurred, but not including any such fees or expenses in connection with investigating or pursuing any claim hereunder), but excluding punitive or exemplary damages not
arising out of a Third Party Claim or lost profits or revenues. Any portion of any Loss attributable to consequential or indirect damages shall be limited to the actual economic loss of the Business of the Company and the Subsidiaries, excluding any
loss of profits or revenue. 
 “Marketing Period” means the first period of 35 consecutive calendar days
after the date on which Buyer or any Affiliate of Buyer has authorized release of the confidential information memorandum for use in the primary syndication of the debt Financing as contemplated under the Debt Financing Commitment; provided,
however, that in any event the Marketing Period shall end on the earlier of (a) an earlier date that is the date on which the Financing is consummated, and (b) the Outside Date. 
 “Material Adverse Effect” means an effect that results in or causes or would reasonably be expected to result in or
cause, a material adverse change in the condition (financial or otherwise), business, operations or property of the Company and its Subsidiaries, taken as a whole, other than events, changes, effects, conditions or circumstances resulting from or
relating to: (a) economic or market conditions generally or in the newsprint industry in particular, (b) the announcement of the transactions contemplated by this Agreement, (c) (i) the execution of, compliance with the terms of,
or the taking of any action required by this Agreement or (ii) the consummation of the transactions contemplated by this Agreement, (d) any change in accounting requirements or principles, or (e) changes in national or international
political or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack; provided,
however, that any effect that is cured prior to the Closing Date shall not be considered a Material Adverse Effect. 
 “Net Indebtedness” means an amount equal to the difference of (a) the Indebtedness of the Company and its Subsidiaries, provided that for purposes of determining “Net Indebtedness”, surety bonds,
letters of credit and bankers acceptances in effect and outstanding as of the date hereof and as set forth on Schedule 1.1(c) plus additional surety bonds, letters of credit and bankers acceptances in an aggregate amount not to exceed 3% of
surety bonds, letters of credit and bankers acceptances in effect and outstanding as of the date hereof, shall not be considered “Indebtedness” of the Company 

  

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and its Subsidiaries unless the Company or any of its Subsidiaries in fact has current payment obligations with respect to any such items, minus
(b) an amount equal to the sum of (i) all amounts paid to or otherwise payable to the Company or its Subsidiaries with respect to the termination of any interest rate hedging or swap agreements, plus (ii) the Cash of the
Company and its Subsidiaries (after giving effect to the distributions contemplated by Section 6.13), in each case as of the Closing Date and as determined in accordance with the guidelines set forth on Schedule 1.1(a) and GAAP
consistent with past practices; provided, however, that to the extent Schedule 1.1(a) is inconsistent with GAAP or past practices, GAAP shall control. 
 “Net Working Capital” means Current Assets minus Current Liabilities. 
 “Net Working Capital Target” means Net Working Capital in an amount equal to $43,900,000. 
 “Newberg Facility” means the real property, structures, equipment, buildings, fixtures and facilities, including the
wastewater treatment system (including the primary clarifier, north lagoon, and south lagoon), landfills and other disposal areas, impoundments, sewer systems, tanks and related piping, located at 1301 Wynooski Street in Newberg, Yamhill
County, Oregon. 
 “Ordinary Course” means the ordinary course of business of the Company and its
Subsidiaries consistent with past practice. 
 “Parent Guarantees” means the guarantees made by
(a) Media General, Inc. of the obligations of Virginia Paper hereunder, in form attached hereto as Exhibit 1.1(c), (b) The McClatchy Company of the obligations of McClatchy Newsprint hereunder, in form attached hereto as Exhibit
1.1(d), and (c) Cox Newspapers, Inc. of the obligations of CEI Newsprint hereunder, in form attached hereto as Exhibit 1.1(e). 
 “Partnership Agreement” means that certain Amended and Restated Partnership Agreement, dated November 1, 1987 among Virginia Paper, McClatchy Newsprint (f/k/a KR Newsprint Company, Inc.) and CEI
Newsprint. 
 “Partnership Interest” means a share of the ownership interest of the Company, including a
share of the profits and surplus of the Company. 
 “Permitted Liens” means (a) Liens imposed by law for
ad valorem property Taxes not yet due and payable, (b) statutory Liens of landlords, (c) Liens of carriers, warehousemen, mechanics, materialmen, landlords, repairmen, and other Liens imposed by Law or Contract incurred in the Ordinary
Course that are not overdue by more than 30 days or that are being properly contested if such reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made therefor, (d) pledges and deposits made in the
Ordinary Course in compliance with workers’ compensation, unemployment insurance and other social security Laws or regulations, (e) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety,
indemnity and appeal bonds, performance and return-of-money and fiduciary bonds and other obligations of a like nature, in each case in the Ordinary Course, (f) easements, 

  

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zoning restrictions, rights-of-way, licenses, covenants, conditions, minor defects, encroachments or irregularities in title and similar encumbrances on or
affecting any Real Property that do not secure any monetary obligations and do not materially interfere with the ordinary conduct of the Business at any Real Property subject to such liens, (g) any (i) interest or title of a lessor or
sublessor under any lease, (ii) restriction or encumbrance that the interest or title of such lessor or sublessor may be subject to or (iii) subordination of the interest of the lessee or sublessee under such lease to any restriction or
encumbrance referred to in the preceding clause (ii), (h) Liens on goods held by suppliers arising in the Ordinary Course for sums not yet delinquent or being contested in good faith, if such reserve or other appropriate provision, if any, as
shall be required by GAAP shall have been made therefor and as long as such Lien remains unperfected, (i) with respect to any Real Property in which the Company or its Subsidiaries owns a leasehold estate, any defect or encumbrance caused by or
arising out of the failure to record the lease or a memorandum thereof in the applicable real property records in the jurisdiction where such Real Property is located, (j) the effect of any moratorium, eminent domain or condemnation proceedings
and (k) any Liens in the cash collateral contemplated by Section 6.20 or as otherwise provided in Section 6.20; provided that notwithstanding the foregoing, except for subsection (k) of this definition, the term
“Permitted Liens” shall not include any Lien securing indebtedness for money borrowed by the Company or its Subsidiaries. 
 “Person” means any individual, partnership, joint venture, corporation, trust, limited liability company, unincorporated organization or other entity or any Governmental Entity. 
 “Pre-Closing Taxes” means (a) any and all liability for Taxes of the Company or any Subsidiary attributable to any
Pre-Closing Period or the pre-Closing portion of any Straddle Period (determined in accordance with Section 6.8(c)), and (b) all other liabilities of the Company or any Subsidiary with respect to Taxes of another person under
Section 1.1502-6 of the Treasury Regulations (or any similar provision of state, local or non-U.S. Tax law) as a transferee or successor, by contract or otherwise, as a result of any affiliation, merger, contractual arrangement or other event
occurring at any time prior to the Closing. 
 “Pro Rata Percentage” means with respect to each Seller the
percentage set forth opposite such Seller’s name on Exhibit 1.1(f). 
 “Registered Intellectual
Property” means all (a) patents and patent applications (including provisional applications) in any jurisdiction, (b) registered trademarks and service marks and trade dress in any jurisdiction, applications to register trademarks
and service marks and trade dress in any jurisdiction; intent-to-use applications, or other registrations or applications related to trademarks and service marks and trade dress in any jurisdiction, (c) registered copyrights and applications
for copyright registration in any jurisdiction and (d) domain name registrations in any jurisdiction, and any renewals, extensions, revivals, continuations, continuations-in-part, reissues, or re-examinations of any of the foregoing.

  

 -9- 

 “Release” means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, dumping, disposing or migrating into or through the Environment, or any building, structure or facility. 
 “Retention Letters” means the (a) Retention Letter by the Company in favor of Mark Haser, dated October 17, 2007, (b) Retention Letter by the Company in favor of Ralph Simon, dated
October 17, 2007, (c) Retention Letter by the Company in favor of Ken Li, dated October 17, 2007, (d) Retention Letter by the Company in favor of Scott Conant, dated October 17, 2007, (e) Retention Letter by the Company
in favor of John Lucini, dated October 17, 2007 and (f) Retention Letter by the Company in favor of Robert Kramer, dated October 17, 2007. 
 “Seller Fundamental Obligations” means (a) the indemnification obligations of the Sellers described in Section 9.1(b)(ii), provided that the Seller Fundamental Obligations shall not
include indemnification obligations of the Sellers arising under Section 9.1(b)(ii) with respect to a breach by the Sellers of a covenant of the Sellers to be performed prior to the Closing, and (b) the obligations of the Sellers described
in Section 6.12(e) and Section 6.16(d). 
 “Seller Fundamental Representations” means (a) the
representations or warranties of the Company made in Section 3.1 (Organization) (except the Seller Fundamental Representations shall not include the last two sentences of Section 3.1), Section 3.2 (Authorization), Section 3.3
(Capitalization) (except the Seller Fundamental Representations shall not include the last clause of Section 3.3 beginning with “...or to make any investment...”), Section 3.4 (Subsidiaries) and Section 3.21 (Certain
Fees) and (b) the representations or warranties of each Seller made in Section 4.1 (Authorization) and Section 4.2 (Partnership Interest Ownership). 
 “Seller Indemnified Parties” means the Sellers and each of their respective Affiliates, each of their respective
officers, directors, employees, agents, trustees and representatives and each of the heirs, executors, successors and assigns of any of the foregoing. 
 “Sellers’ Transactional Expenses” means the legal, accounting, financial advisory and other third party advisory or consulting fees and expenses incurred by the Company, its Subsidiaries, or the
Sellers, to the extent paid by the Company or its Subsidiaries, in connection with the transactions contemplated by this Agreement. 
 “SEP” means SEP Technology, LLC, a wholly-owned subsidiary of the Company. 
 “SERP” means the nonqualified, unfunded pension plan that provides supplemental retirement benefits and death benefits to executives and former executives or their beneficiaries, as the case may be, of the Company and its
Subsidiaries in excess of those provided under the SP Newsprint Co. Pension Plan. 
  

 -10- 

 “Severance Pay Plan” means the SP Newsprint Co. Severance Pay Plan,
dated September 11, 2007. 
 “Smurfit” means Smurfit Newsprint Corporation. 
 “Smurfit Asset Purchase Agreement” means the Asset Purchase Agreement between Smurfit and the Company (f/k/a Southeast
Paper Manufacturing Company), dated September 21, 1999. 
 “Software” means all computer software
programs, including all underlying source code and object code, together with any error corrections, updates, modifications, improvements or enhancements thereto, in both machine-readable form and human-readable form, including all comments and any
procedural code. 
 “Software Enhancements” means modifications, improvements or derivative works of the
Software created by or on behalf of the Company. 
 “SPRC” means SP Recycling Corp., a wholly owned
subsidiary of the Company. 
 “Subsidiary” or “Subsidiaries” means the subsidiaries of the
Company set forth on Schedule 3.4 and any and all corporations, partnerships, limited liability companies, joint ventures and other entities controlled by the Company directly or indirectly through one or more intermediaries. 
 “Taxes” means (a) all U.S. federal, state, local or non-U.S. taxes, assessments, charges, duties, fees, levies or
other governmental charges (including interest, penalties or additions associated therewith), including income, franchise, real property, personal property, tangible, estimated, withholding, employment, payroll, social security, social contribution,
unemployment compensation, disability, stamp, transfer, registration, sales, use, excise, gross receipts, value-added and all other taxes of any kind, whether disputed or not and (b) any amount described in clause (a) for which a person is
liable (i) as a transferee or successor, (ii) under Treasury Regulation Section 1.1502-6 or any comparable provisions of U.S. state or local or non-U.S. tax Law, or (iii) by contract or otherwise. 
 “Tax Return” means any report, return, declaration, claim for refund or information return or statement or other
information required to be supplied to a Governmental Entity in connection with Taxes (including those required on an estimated basis), including any schedule or attachment thereto and any amendment thereof. 
 “Treasury Regulations” means the Income Tax Regulations promulgated under the Code, as amended from time to time.

 “UCC” means the Uniform Commercial Code. 
 “Unit Purchase Plan” means the SP Newsprint Co. 2003 Unit Plan. 
  

 -11- 

 “White Birch Paper Company Guarantee” means the guarantee made by White
Birch Paper Company of the obligations of Buyer hereunder, in the form attached hereto as Exhibit 1.1(b). 
 Section 1.2
Other Definitions. Each of the following terms is defined in the Section set forth opposite such term: 
  

			
	 Term
	 	 Section

	 Agreement
	 	Preamble
	 Altamaha Claim
	 	6.16(a)
	 Base Purchase Price
	 	2.2(a)
	 Business
	 	Recitals
	 Buyer
	 	Preamble
	 Buyer Losses
	 	9.1
	 Buyer Termination Fee
	 	8.3(a)
	 Buyer Termination Fee Expenses
	 	8.3(a)
	 Cash Collateral Account
	 	6.20
	 CEI Newsprint
	 	Preamble
	 Closing
	 	2.3
	 Closing Date
	 	2.3
	 Closing Date Balance Sheet
	 	2.6(c)
	 Company
	 	Preamble
	 Company Contracts
	 	3.13(a)
	 Consents
	 	6.3(a)
	 Debt Financing Commitments
	 	8.1(d)
	 Deferred Amounts
	 	2.7(a)
	 Distributions
	 	6.13
	 Draft Purchase Price Allocation
	 	6.8(h)
	 Environmental Liabilities
	 	9.8(g)(ii)
	 Estimated Closing Date Balance Sheet
	 	2.6(b)
	 Estimated Net Working Capital
	 	2.6(b)
	 Estimated Purchase Price Adjustment Schedule
	 	2.6(b)
	 Estimated Working Capital Deficit
	 	2.6(b)
	 Estimated Working Capital Surplus
	 	2.6(b)
	 Final Net Working Capital
	 	2.6(f)
	 Final Purchase Price Adjustment Schedule
	 	2.6(e)
	 Financial Statements
	 	3.6(a)
	 Financing
	 	6.6(a)
	 Financing Documents
	 	5.5
	 Indemnifiable Tax Liability
	 	6.9(d)
	 Indemnifying Party
	 	9.3(a)
	 Independent Accountant
	 	2.6(d)
	 Interim Financial Statements
	 	3.6(a)
	 Leased Real Property
	 	3.9(b)
	 Leases
	 	3.9(b)
	 Letters of Credit
	 	2.7(i)

  

 -12- 

			
	 Term
	 	 Section

	 McClatchy Newsprint
	 	Preamble
	 NEL
	 	9.8(g)(i)
	 Net Working Capital Deficit
	 	2.6(f)(ii)
	 Net Working Capital Surplus
	 	2.6(f)(i)
	 New Financing Documents
	 	6.11(c)
	 Newberg Environmental Liabilities
	 	9.8(g)(i)
	 Newberg Threshold Amount
	 	9.8(a)
	 Outside Date
	 	8.1(d)
	 Owned Real Property
	 	3.9(a)
	 Participating Sellers
	 	2.7(a)
	 Parties
	 	Preamble
	 Party
	 	Preamble
	 Payment Agreements
	 	2.7(i)
	 Payoff Letter
	 	2.4(c)
	 Pre-Closing Periods
	 	6.8(b)
	 Post-Closing Interest
	 	6.9(a)
	 Purchase Price
	 	2.2
	 Purchase Price Adjustment
	 	2.6(a)
	 Purchase Price Adjustment Schedule
	 	2.6(c)
	 Purchase Price Allocation
	 	6.8(h)
	 Real Property
	 	3.9(b)
	 Repaid Indebtedness
	 	6.20
	 Representatives
	 	6.1(m)
	 Required Information
	 	6.6(a)
	 Reserve Account
	 	2.7(a)
	 Retiree Medical Plan
	 	6.12(d)
	 Retiree SERP Agreements
	 	6.12(e)
	 Satisfaction Date
	 	2.3
	 Securities Act
	 	5.6
	 Seller(s)
	 	Preamble
	 Seller Losses
	 	9.2
	 Straddle Period
	 	6.8(c)
	 Subsequent Financial Statements
	 	3.6(b)
	 Suppliers
	 	3.17
	 Tax Claim Notice
	 	6.9(d)
	 Termination Date
	 	8.1
	 Third Party Claim
	 	9.3(a)
	 Threshold Amount
	 	9.5(a)
	 Virginia Paper
	 	Preamble
	 WARN Act
	 	3.20(f)

 Section 1.3 Construction. 
 (a) Unless the context of this Agreement otherwise clearly requires, (i) references to the plural include the singular, and references to the
singular include the plural, (ii) references to 

  

 -13- 

 
one gender include the other gender, (iii) the words “include”, “includes” and “including” do not limit the preceding
terms or words and shall be deemed to be followed by the words “without limitation”, (iv) the terms “hereof”, “herein”, “hereunder”, “hereto” and similar terms in this Agreement refer to this
Agreement as a whole and not to any particular provision of this Agreement, (v) the terms “day” and “days” mean and refer to calendar day(s), (vi) the terms “year” and “years” mean and refer to
calendar year(s) and (vii) the terms “dollars”, “Dollars” and “$” shall mean lawful money of the United States of America. 
 (b) Unless otherwise set forth in this Agreement, references in this Agreement to any document, instrument or agreement (including this Agreement) (i) includes and incorporates all exhibits, schedules and other
attachments thereto, (ii) includes all documents, instruments or agreements issued or executed in replacement thereof and (iii) means such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified or
supplemented from time to time in accordance with its terms and in effect at any given time. All Article, Section, Exhibit and Schedule references herein are to Articles, Sections, Exhibits and Schedules of this Agreement, unless otherwise
specified. 
 (c) This Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a
whole, as if all Parties had prepared it. 
 (d) References in this Agreement to “the date of this Agreement”, “the execution
of this Agreement”, or other similar terms, words or phrases shall be deemed to mean references to January 18, 2008. Similarly, temporal references such as “presently”, “currently”, “expected” or other similar
terms, words or phrases shall be construed in relation to January 18, 2008. References in this Agreement to “the date hereof” shall be deemed to have the meaning that such phrase would have if this Agreement had been executed on
January 18, 2008. 
 ARTICLE II 
 PURCHASE AND SALE 
 Section 2.1 The Purchase and Sale. Subject to the terms and
conditions of this Agreement, at the Closing, the Sellers will sell, transfer, assign and deliver, to Buyer, and Buyer will purchase and acquire from the Sellers, all of the Partnership Interests. 
 Section 2.2 Purchase Price. 
 The
aggregate purchase price for all of the Partnership Interests (the “Purchase Price”) shall be an amount equal to: 
 (a)
Three Hundred Fifty Million Dollars ($350,000,000) (the “Base Purchase Price”); 
 (b) minus Net Indebtedness;

 (c) minus the aggregate amount of payments that are required to be paid at the Closing under Section 3 and Section 4 of
the Change in Control Agreements; and 
  

 -14- 

 (d) plus or minus, as the case may be, any adjustments made to the Purchase Price pursuant
to Section 2.6. 
 Section 2.3 Closing. Subject to the terms and conditions of this Agreement, the closing of the
transactions contemplated by this Agreement (the “Closing”) shall occur as promptly as practicable, and in any event no later than three Business Days from the date following the satisfaction or waiver of the conditions to the
obligations of the parties set forth in Article VII (other than those conditions that by their nature are to be fulfilled at Closing, but subject to the satisfaction or waiver of such conditions) (the “Satisfaction Date”);
provided that if the Marketing Period shall not have ended by the Satisfaction Date, the Closing shall occur on the date following the Satisfaction Date that is the earlier of (a) a date during the Marketing Period to be specified by
Buyer on no less than three Business Days’ prior notice to the Company, (b) the final day of the Marketing Period, and (c) the Outside Date (as such date may be extended pursuant to Section 8.1(d)), or on such other date as the
Parties may agree in writing. The date of the Closing shall be referred to herein as the “Closing Date”. The Closing shall take place at the offices of King & Spalding LLP located at 1180 Peachtree Street, N.E., Atlanta,
Georgia 30309, at 10:00 a.m. Atlanta, Georgia time, or at such other place or at such other time as the Sellers, the Company and Buyer may agree in writing. For the avoidance of doubt, the Parties agree that the completion of the Marketing Period on
or prior to the Outside Date shall not be a condition to Buyer’s obligation to consummate the transactions contemplated by this Agreement at the Closing. 
 Section 2.4 Deliveries by the Sellers. At the Closing, the Sellers will deliver, or cause to be delivered, to Buyer (unless delivered previously) the following: 
 (a) all appropriate instruments of assignment and transfer, duly executed by the Sellers, evidencing the transfer of the Partnership Interests to Buyer;

 (b) resignations, effective as of the Closing, of the directors of the Company and each Subsidiary, except for such persons as shall have
been designated in writing prior to the Closing by Buyer to the Sellers and the Company; 
 (c) a payoff letter (the “Payoff
Letter”) in respect of the Credit Agreement in form and substance reasonably satisfactory to Buyer, pursuant to which the administrative agent under the Credit Agreement shall acknowledge, upon receipt of the amounts specified therein, the
payment in full of all “Obligations” under the Loan Documents (as defined in the Credit Agreement) (other than obligations in respect of letters of credit, which shall be fully cash collateralized in accordance with Section 6.20, and
indemnity obligations that survive termination of the Credit Agreement), termination of all credit commitments under the Credit Agreement and discharge of all Liens securing the obligations under the Loan Documents, except for any Liens in the Cash
Collateral Account; 
 (d) copies of the form of notices (to the relevant trustees) of redemption of all Company Industrial Revenue Bonds at
the earliest possible redemption dates permitted under the indentures governing such bonds, which notices shall be in form and substance reasonably satisfactory to Buyer and the relevant trustees; 
  

 -15- 

 (e) a certificate from an officer of the Company certifying that the conditions set forth in
Section 7.3(a) and Section 7.3(b) have been fulfilled; 
 (f) a certificate from an officer of each Seller certifying that the
conditions set forth in Section 7.3(a) and Section 7.3(b) have been fulfilled; 
 (g) other documents required to be delivered
pursuant to Section 7.3; 
 (h) a certificate from each Seller to establish its non-foreign status in accordance with Treasury
Regulation Section 1.1445-2(b)(2) and a properly executed copy of IRS Form W-9 from each Seller to establish its exemption from backup withholding; and 
 (i) the executed Parent Guarantees. 
 Section 2.5 Deliveries by Buyer. 
 (a) At the Closing, Buyer will deliver, or cause to be delivered, to the Sellers or the Participating Sellers, as applicable, the following: 

(i) a certificate of an officer of Buyer certifying that the conditions set forth in Section 7.2(a) and Section 7.2(b) have
been fulfilled; 
 (ii) the executed White Birch Paper Company Guarantee; 
 (iii) an executed Payment Agreement for each of the Participating Sellers; and 
 (iv) a Letter of Credit for each of the Participating Sellers. 
 (b) At the Closing, Buyer shall pay to each Seller, subject to Section 2.6(b) and Section 2.7, by wire transfer of immediately available funds
to the account or accounts designated to Buyer in writing by the Sellers at least two Business Days prior to the Closing Date, an amount equal to the Purchase Price multiplied by such Seller’s Pro Rata Percentage as of the
Closing. 
 (c) At the Closing, Buyer will (i) deposit into the Cash Collateral Account the amount specified in the Payoff Letter for
such deposit into the Cash Collateral Account and (ii) pay the amount specified in the Payoff Letter for the payoff of the Credit Agreement (other than the amount to be deposited into the Cash Collateral Account as described in clause
(i) above), by wire transfer of immediately available funds to the accounts specified in the Payoff Letter (which amounts and accounts shall have been designated in writing to Buyer at least two Business Days prior to the Closing Date). For the
avoidance of doubt, the amounts so deposited or paid by Buyer shall be included in the amount of Net Indebtedness, and therefore reduce the Purchase Price. 
 (d) At the Closing, Buyer will pay the aggregate amount of payments required to be made at the Closing under Section 3 and Section 4 of the Change in Control Agreements by wire transfer of immediately
available funds to an account or accounts designated by the Company in writing to Buyer at least two Business Days prior to the Closing Date. 
  

 -16- 

 Section 2.6 Adjustment to Purchase Price. 
 (a) The Purchase Price shall be increased or reduced as set forth in this Section 2.6. Any increase or decrease in the Purchase Price pursuant to
this Section 2.6 shall be referred to as a “Purchase Price Adjustment”. 
 (b) At least three days prior to the Closing
Date, the Sellers shall prepare and deliver to Buyer (i) an estimated consolidated balance sheet of the Company and its Subsidiaries as of the Closing Date (the “Estimated Closing Date Balance Sheet”), and (ii) a separate
statement calculating the estimated Net Working Capital (subject to Section 2.6(g), the “Estimated Net Working Capital”) of the Company and its Subsidiaries based on the Estimated Closing Date Balance Sheet, and showing any
calculations with respect to any proposed Purchase Price Adjustment (the “Estimated Purchase Price Adjustment Schedule”). The Sellers will permit, and will cause the Company and its Subsidiaries to permit, Buyer and its advisors and
representatives reasonable access to the books, records and other documents pertaining to or used in connection with the preparation of the Estimated Closing Date Balance Sheet and the Estimated Purchase Price Adjustment Schedule. If the Estimated
Net Working Capital is less than the Net Working Capital Target (the amount by which the Net Working Capital Target exceeds the Estimated Net Working Capital being referred to herein as the “Estimated Working Capital Deficit“), then
the Purchase Price shall be decreased by an amount equal to the Estimated Working Capital Deficit. If the Estimated Net Working Capital is greater than the Net Working Capital Target (the amount by which the Estimated Net Working Capital exceeds the
Net Working Capital Target being referred to herein as the “Estimated Working Capital Surplus“), then the Purchase Price shall be increased by an amount equal to the Estimated Working Capital Surplus. 
 (c) No later than 60 days after the Closing Date, Buyer shall prepare and deliver to each of the Sellers (i) a consolidated balance sheet of the
Company and its Subsidiaries as of the Closing Date (the “Closing Date Balance Sheet”), and (ii) a separate statement calculating the Net Working Capital of the Company and its Subsidiaries based on the Closing Date Balance
Sheet, and showing any calculations with respect to any proposed Purchase Price Adjustment (the “Purchase Price Adjustment Schedule”). Buyer will permit, and will cause the Company and its Subsidiaries to permit, the Sellers and
their advisors and representatives complete and timely access to the books, records, properties, premises, work papers, personnel and other information of the Company and its Subsidiaries to permit the Sellers and their advisors to review the
Closing Date Balance Sheet and the Purchase Price Adjustment Schedule or to address any dispute described in this Section 2.6. 
 (d)
The Sellers shall, within 30 days following their receipt of the Closing Date Balance Sheet and the Purchase Price Adjustment Schedule, accept or reject the Purchase Price Adjustment submitted by Buyer. If any of the Sellers disagree with the
Closing Date Balance Sheet, the Purchase Price Adjustment Schedule or any calculation thereon, they shall give written notice to Buyer of such disagreement and any reason therefor within such 30-day period. Should the Sellers fail to notify Buyer of
a disagreement within such 30-day period, the Sellers shall be deemed to agree with Buyer’s calculation. In the event of such a dispute, the Sellers and Buyer shall attempt to reconcile their differences, and any resolution by them as to any
disputed amounts shall be final, binding and conclusive on the Parties. If the Sellers and Buyer are unable to reach a resolution with such effect within 30 days after the receipt by Buyer of the Sellers’ 

  

 -17- 

 
written notice of dispute, the Parties shall submit the items remaining in dispute to the extent they are accounting matters for resolution to the New York,
New York office of KPMG LLP (the “Independent Accountant”). The Independent Accountant shall act as an arbitrator and shall issue its report as to all matters in dispute (and only such matters) and the determination of the Purchase
Price Adjustment within 30 days after such dispute is referred to the Independent Accountant. The Independent Accountant shall not have the power to modify or amend any term or provision of this Agreement. Buyer on the one hand, and the Sellers on
the other hand, shall bear all costs and expenses incurred by them in connection with such arbitration, except that the fees and expenses of the Independent Accountant hereunder shall be borne by Buyer and the Sellers in the same proportion that the
aggregate amount of such remaining disputed items so submitted to the Independent Accountant that is unsuccessfully disputed by each such party (as finally determined by the Independent Accountant) bears to the total amount of such remaining
disputed items so submitted. This provision for arbitration shall be specifically enforceable by the Parties and the decision of the Independent Accountant in accordance with the provisions hereof shall be final and binding with respect to the
matters so arbitrated and there shall be no right of appeal therefrom. 
 (e) The Purchase Price Adjustment Schedule shall be deemed final
(the “Final Purchase Price Adjustment Schedule”) for the purposes of this Section 2.6 upon the earliest of (i) the failure of the Sellers to notify Buyer of a dispute within 30 days of Buyer’s delivery of the Closing
Balance Sheet and the Purchase Price Adjustment Schedule to the Sellers, (ii) the resolution of all disputes, pursuant to Section 2.6(d), by the Sellers and Buyer or (iii) the resolution of all disputes, pursuant to
Section 2.6(d), by the Independent Accountant. 
 (f) Upon finalization of the Purchase Price Adjustment Schedule pursuant to
Section 2.6(e), the following adjustments will be made based on the Net Working Capital as reflected in the Final Purchase Price Adjustment Schedule, subject to Section 2.6(g), the “Final Net Working Capital”): 

(i) If the Estimated Net Working Capital minus the Final Net Working Capital is a negative number (such difference being the
“Net Working Capital Surplus”), then the Purchase Price shall be adjusted upward from the Purchase Price as calculated at the Closing in an amount equal to the absolute value of the Net Working Capital Surplus and Buyer shall pay or
caused to be paid, within three Business Days of the finalization of the Purchase Price Adjustment Schedule pursuant to Section 2.6(e), to each Seller, such Seller’s Pro Rata Percentage of the absolute value of the Net Working Capital
Surplus by wire transfer in immediately available funds to one or more accounts designated by the Sellers; and 
 (ii) If the
Estimated Net Working Capital minus the Final Net Working Capital is a positive number (such difference being the “Net Working Capital Deficit”), then the Purchase Price shall be adjusted downward from the Purchase Price as
calculated at the Closing in an amount equal to the absolute value of the Net Working Capital Deficit and each Seller shall pay or caused to be paid, within three Business Days of the finalization of the Purchase Price Adjustment Schedule pursuant
to Section 2.6(e), to Buyer, such Seller’s Pro Rata Percentage of the Net Working Capital Deficit by wire transfer in immediately available funds to the account reasonably designated by Buyer. 
  

 -18- 

 (g) Notwithstanding anything herein to the contrary, the Parties agree that (i) if the Estimated Net
Working Capital is greater than or equal to $43,400,000 but less than or equal to $44,400,000, then the Estimated Net Working Capital shall be deemed to equal the Net Working Capital Target; and (ii) if the Final Net Working Capital is greater
than or equal to $43,400,000 but less than or equal to $44,400,000, then the Final Net Working Capital shall be deemed to equal the Net Working Capital Target. The Net Working Capital Target includes a $2,000,000 reserve to allow for the increased
cost being incurred as a result of moving the No. 2 Dublin Power Boiler and the Dublin Paper Mill Machine #2 shutdown to the April period after the Closing. 
 Section 2.7 Reserve Account; Payment Agreement. 
 (a) At the Closing, (i) Virginia Paper and
McClatchy Newsprint (the “Participating Sellers”) shall each direct that $5,000,000 (the “Deferred Amounts”) of the Purchase Price otherwise payable to it at the Closing be paid directly into an account established
with a financial institution specified by GECC, and reasonably acceptable to the Participating Sellers, and described in the Debt Financing Commitment as an “Investor Funded Debt Service Reserve Account” (each a “Reserve
Account”) and (ii) Buyer shall cause Peter M. Brant to pay $5,000,000 in immediately available funds directly into a Reserve Account at the Closing. 
 (b) The Deferred Amounts will be invested in cash equivalents specified by GECC and reasonably acceptable to the Participating Sellers. The Participating Sellers will be entitled to receive periodic (monthly, unless
the Participating Sellers otherwise agree) current payments of all interest on the Deferred Amounts held in the Reserve Accounts. No such interest shall be considered part of the Deferred Amounts. 
 (c) Buyer and the Participating Sellers agree that the Deferred Amounts may be applied only against principal and interest due under the Credit
Facilities, provided that to the extent permitted under the Definitive Debt Financing Documents, (i) Buyer shall use unrestricted cash (including amounts available to be drawn under the revolving Credit Facilities) to pay principal and interest
under the Credit Facilities prior to using or permitting to be used any of the amounts held in the Reserve Accounts, and (ii) Buyer shall use the proceeds from any sale of the Newberg Facility (other than those required to be used for mandatory
prepayment of the Credit Facilities) to replenish the amounts held in the Reserve Accounts to the extent that the Reserve Accounts are not then fully funded; provided further that, to the extent that Buyer is permitted to do so under
the terms of the Definitive Debt Financing Documents, Buyer shall use the proceeds of any sale of the Newberg Facility (other than as required to be used for mandatory prepayments of the Credit Facilities) to replace amounts held in the Reserve
Accounts and make a distribution of the monies used to initially fund the “Investor Funded Debt Service Reserve Accounts” to Peter M. Brant and the Participating Sellers. Any amounts withdrawn from the Reserve Accounts for distribution to
any of Peter M. Brant and the Participating Sellers or for application to the Credit Facilities shall be withdrawn from the Reserve Accounts on a pari passu basis and in pro rata amounts based on the initial funding amounts for the
Reserve Accounts. 
 (d) Buyer agrees, and Buyer agrees to cause the Definitive Debt Financing Documents to provide, that the Reserve
Accounts will be promptly released upon the delivery of 

  

 -19- 

 
audited financial statements, in the case of any period ending on the last day of the fiscal year, and unaudited financial statements for all other periods,
that evidence that Buyer has achieved a Fixed Charge Coverage Ratio of at least 1.00 to 1.00 for any of the following periods and there is no Event of Default (as defined in such Definitive Debt Financing Documents) occurring at the time of such
release: (i) the period from the Closing Date through December 31, 2008 (treated as a single period), or (ii) any period of four consecutive fiscal quarters (in each case treated as a single period) ending on or after March 31,
2009. 
 (e) Buyer agrees that from and after the Closing capital expenditures for the Company will be based on an annual budget of
$7,500,000 for any fiscal year, but in no event shall exceed (i) $2,500,000 in any fiscal quarter (subject to a carry-forward of unused amounts applicable for the then-current fiscal year), or (ii) $10,000,000 in any fiscal year.

 (f) At such time as funds in the Reserve Accounts are to be released as provided in the Definitive Debt Financing Documents, the total
funds held in the Reserve Accounts shall be payable to the Participating Sellers and Peter M. Brant on a pari passu basis, provided that to the extent that each of the Participating Sellers have previously been paid the entire
amounts of the Deferred Amounts, all such funds shall be payable to Peter M. Brant. 
 (g) Buyer shall take all necessary action to cause the
Definitive Debt Financing Documents to contain terms that include and are consistent with the provisions of this Section 2.7. 
 (h) For
purposes of clarification, the Participating Sellers, Buyer and the Company each acknowledge and agree that (i) the amounts deposited into the Reserve Accounts at the direction of the Participating Sellers represent a portion of the purchase
price for the Company and shall not constitute a capital contribution or any ownership or equity interest of the Participating Sellers in Buyer or the Company, (ii) no Buyer Indemnified Party shall have any right, title or interest in such
amounts or any claim against such amounts to satisfy any obligation owing or claimed to be owing to a Buyer Indemnified Party pursuant to this Agreement, (iii) the Reserve Accounts may only be disbursed in accordance with the terms of this
Section 2.7 and in accordance with the Definitive Debt Financing Documents, and (iv) neither of the Participating Sellers shall have any obligation at any time to cause any other or additional funds to be paid into the Reserve Accounts,
regardless of any amounts that may subsequently be withdrawn from such Reserve Accounts. The Parties agree that no Buyer Indemnified Party may set-off any claim under this Agreement against the Deferred Amounts (or any interest or other investment
return thereon) to satisfy any obligation owing or claimed to be owing to a Buyer Indemnified Party pursuant to this Agreement. 
 (i) Buyer
agrees to cause Peter M. Brant to execute and deliver a deferred amount payment agreement in the form of Exhibit 2.7(i)(A) (the “Payment Agreements”) to each of the Participating Sellers at the Closing. All obligations under
each Payment Agreement shall be supported in their entirety by irrevocable standby letters of credit in each case in a stated amount of $5,000,000 issued to each of the Participating Sellers, as applicable, in the form of
Exhibit 2.7(i)(B) attached hereto (the “Letters of Credit”), together with such changes as may be requested by the issuing bank to conform to its customary form (provided that no such changes are adverse to the interests
of the Participating Sellers) or as may otherwise be agreed to by the 

  

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Participating Sellers, by a financial institution acceptable to the Participating Sellers. The Letters of Credit shall have an expiration date not earlier
than the 30th day following the second anniversary of the Closing. The Participating Sellers agree that they shall have no recourse to Buyer, the Company or its Subsidiaries for payment of the obligations arising under the Payment Agreements or the
Letters of Credit. 
 (j) The failure of Buyer or any other party (other than the Participating Sellers) to enter into the agreements and
arrangements referenced in this Section 2.7, including the failure of Peter M. Brant to execute and deliver the Payment Agreements or to deliver the Letters of Credit, (i) shall not affect Buyer’s obligations to consummate the
transactions contemplated by this Agreement, and (ii) shall constitute a material breach by Buyer for purposes of this Agreement (including Sections 7.2, 8.1(c) and 8.3(a) of this Agreement). Buyer and the Participating Sellers acknowledge and
agree that GECC shall have no liability, including with respect to the Buyer Termination Fee, in the event the agreements and arrangements described in this Section 2.7 are not executed or consummated. 
 ARTICLE III 
 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY 
 Subject to the terms, conditions and limitations set forth in this Agreement, the Company hereby represents
and warrants to Buyer as of the date of this Agreement as follows: 
 Section 3.1 Organization. The Company is a general
partnership and its Subsidiaries are corporations or limited liability companies, in each case duly organized, validly existing and in good standing under the Laws of their respective jurisdictions of organization, and the Company and each
Subsidiary has all requisite general partnership, corporate or limited liability company power and authority to own, lease and operate their respective properties and to carry on in all material respects their respective businesses as conducted on
the date hereof. The Company and each Subsidiary is duly qualified or registered as a foreign partnership, corporation or limited liability company, as the case may be, to transact business under the Laws of each jurisdiction where the character of
its activities or the location of the properties owned or leased by it requires such qualification or registration, except where the failure of such qualification or registration would not, individually or in the aggregate, have a Material Adverse
Effect. Schedule 3.1 contains a true and correct list of the jurisdictions in which the Company and each Subsidiary is qualified or registered to do business as a foreign partnership, corporation or limited liability company. 

Section 3.2 Authorization. The Company has the requisite general partnership power and authority to execute and deliver this Agreement and
to perform its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and constitutes, when duly executed by all Parties and delivered by the
Company, the valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency and other similar Laws affecting the enforceability of creditors’ rights
generally, general equitable principles and the discretion of courts in granting equitable remedies. 
  

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 Section 3.3 Capitalization. The Sellers constitute all of the partners of the Company and the
Partnership Interests constitute all of the outstanding equity ownership interests of the Company. Other than the Partnership Interests set forth on Schedule 3.3, there are no outstanding equity interests in the Company. Except as set forth
on Schedule 3.3, there are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the issued or unissued equity interests of the Company or obligating the Company to
issue or sell any units of equity ownership, or any other interest in, the Company. There are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any equity interests of the Company or to make any
investment (in the form of a loan, capital contribution or otherwise) in, any other Person. 
 Section 3.4 Subsidiaries.
Schedule 3.4 sets forth a true and complete list of all Subsidiaries, listing for each Subsidiary its name, type of entity, the jurisdiction and date of its incorporation or organization, its authorized capital stock, the number and type of
its issued and outstanding shares of capital stock and the current ownership of such shares. Each of the Subsidiaries is directly or indirectly wholly owned by the Company. SEP is a Subsidiary of the Company that does not currently conduct any
business. 
 Section 3.5 Consents and Approvals; No Violations. Except as set forth on Schedule 3.5 and for
applicable requirements of the HSR Act, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement will (a) conflict with or result in any breach of any provision of the
Partnership Agreement of the Company or the articles of incorporation, bylaws or similar governing documents of any Subsidiary; (b) require any filing with, or the obtaining of, any permit, authorization, consent or approval of, any
Governmental Entity; (c) violate, conflict with or result in a default under, or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions of any note, mortgage, other evidence of
indebtedness, guarantee, license, agreement, lease or Company Contract; or (d) violate any Law, injunction or decree applicable to the Company or any Subsidiary; excluding from the foregoing clauses (b), (c) and (d) such requirements,
violations, conflicts, defaults or rights (i) which would not have a Material Adverse Effect and would not materially and adversely affect the ability of the Company to consummate the transactions contemplated by this Agreement, or
(ii) which become applicable as a result of the business or activities in which Buyer is or proposes to be engaged or as a result of any acts or omissions by, or the status of or any facts pertaining to, Buyer. 
 Section 3.6 Financial Statements. 
 (a) Copies of the audited consolidated balance sheet of the Company and its Subsidiaries for the fiscal year ended December 31, 2006, and the related audited consolidated statements of operations, partners’ capital and cash flows
of the Company and its Subsidiaries, together with all related notes and schedules thereto, accompanied by the reports thereon of the Company’s independent auditors (collectively referred to as the “Financial Statements”) and
the unaudited consolidated balance sheet of the Company and its Subsidiaries dated as of December 2, 2007, and the related consolidated statements of operations and cash flows of the Company and its Subsidiaries for the 11-month period then
ended (collectively referred to as the “Interim Financial Statements”) are attached hereto as Schedule 3.6(a). 
  

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 (b) Except as set forth on Schedule 3.6(b), each of the Financial Statements and the Interim
Financial Statements and the subsequently delivered financial statements under Section 6.6(a)(v) (the “Subsequent Financial Statements”) (i) has been or will be prepared in accordance with GAAP (except the Interim
Financial Statements and the Subsequent Financial Statements are subject to normal year-end adjustments and do not contain footnotes and other presentation items and except as expressly noted therein; provided, however, that the
Interim Financial Statements and the Subsequent Financial Statements shall reflect all necessary material interim accruals) applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto) and
(ii) fairly presents, or will fairly present, in all material respects, the consolidated financial position, results of operations and cash flows of the Company and its Subsidiaries as at the respective dates thereof and for the respective
periods indicated therein, except as otherwise noted therein and subject, in the case of the Interim Financial Statements and the Subsequent Financial Statements, to normal and recurring year-end adjustments and the absence of notes. 
 (c) All accounts receivable (including intercompany and unbilled accounts receivable) reflected in the Financial Statements or recorded on the books of
the Company or the Subsidiaries arose from, and the accounts receivable existing as of the Closing Date will have arisen from, bona fide transactions entered into in the Ordinary Course, and to the Knowledge of the Company constitute or will
constitute, as the case may be, valid claims of the Company or its Subsidiaries not subject to valid claims of setoff or other valid defenses or valid counterclaims other than normal cash discounts, returns, chargebacks, rebates and other
adjustments in the Ordinary Course. 
 Section 3.7 No Undisclosed Liabilities. Except as disclosed on Schedule 3.7,
the Company and its Subsidiaries do not have any liabilities required to be shown in the Interim Financial Statements in accordance with GAAP that are not shown, except (a) to the extent reflected in the most recent balance sheet included in
the Interim Financial Statements, (b) those liabilities shown in or arising under this Agreement, (c) those liabilities incurred in the Ordinary Course since the date of the most recent balance sheet included in the Interim Financial
Statements, (d) those liabilities not required under GAAP to be reflected in the Interim Financial Statements, (e) as of the Closing Date, those liabilities arising from actions not in violation of Section 6.1, and
(f) liabilities and obligations that would not (singly or in the aggregate) have a Material Adverse Effect. 
 Section 3.8
Absence of Certain Changes. To the Knowledge of the Company, except as set forth on Schedule 3.8, since December 2, 2007 and through the date hereof: 
 (a) the Company and its Subsidiaries have conducted the Business in all material respects in the Ordinary Course; 
 (b) there has been no Material Adverse Effect nor any event which would reasonably be expected to result in a Material Adverse Effect; 
 (c) neither the Company nor any Subsidiary has increased the compensation payable or to become payable by the Company or any Subsidiary to any officer,
employee or agent of the Company or any Subsidiary; 
  

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 (d) there has been no casualty, loss, damage or destruction (whether or not covered by insurance) of any
property that is material to the Company or any Subsidiary; and 
 (e) there has been no material change in the financial or Tax accounting
methods or practices of the Company or any Subsidiary or any change in depreciation or amortization policies or rates theretofore adopted by the Company or any Subsidiary. 
 Section 3.9 Real Property. 
 (a)
Schedule 3.9(a) sets forth a complete and accurate list of the real property owned by the Company or any of its Subsidiaries (the “Owned Real Property”). Except as set forth on Schedule 3.9(a), the Company or the
applicable Subsidiary owns good fee title in the Owned Real Property, free and clear of any Liens, other than Permitted Liens. 
 (b)
Schedule 3.9(b) sets forth a complete and accurate list of all real property leased to or by the Company or any of its Subsidiaries (the “Leased Real Property”; together with the Owned Real Property, the “Real
Property”) and all leases, subleases, licenses and other agreements by which the Leased Real Property was leased to or by the Company or any of its Subsidiaries (“Leases”), including the name of the landlord and tenant. The
Leased Real Property and Leases are separately categorized and listed on Schedule 3.9(b) based upon whether the Company or any of its Subsidiaries is ultimately the landlord or tenant pursuant to the Leases. 
 (c) Except as set forth on Schedule 3.9(c), all Leases are in full force and effect and constitute legal, valid and binding obligations of the
respective parties thereto enforceable in accordance with their terms, except as such enforcement may be limited by general equitable principals or by applicable bankruptcy, insolvency, moratorium or similar laws and judicial decisions from time to
time in effect which affect creditors’ rights generally, and grant the leasehold estates they purport to grant free and clear of all Liens whatsoever, except Permitted Liens. Except as set forth on Schedule 3.9(c), to the Knowledge of
the Company, there is not under any Leases any existing or claimed default, event of default or event which with notice or lapse of time or both would constitute an event of default, including the consummation of the transactions contemplated by
this Agreement. To the Knowledge of the Company, the Real Property is zoned for the various purposes for which such real estate is currently being used by the Company or its Subsidiaries. Except as set forth on Schedule 3.9(c)(i), to the
Knowledge of the Company, no written notice from any Governmental Authority has been served upon, or received by, the Company or any of its Subsidiaries claiming any violation of any Law or requiring any substantial work, repairs, construction,
alteration or installation on or in connection with the Real Property that has not been complied with. Except as set forth on Schedule 3.9(c)(ii), rental and/or license payments owing under the Leases have been collected by the Company or any
of its Subsidiaries in the Ordinary Course, all rental or license payments owing to the Company as landlord under such Leases have been collected by the Company or any of its Subsidiaries in the Ordinary Course. 
 (d) Except in the Ordinary Course or as set forth on Schedule 3.9(d), there are no condemnation or appropriation or similar proceedings pending,
or to the Knowledge of the Company, threatened against any of the Company Real Property or the improvements thereon. 

  

 -24- 

 
As of the date hereof, all applicable permits, licenses and other evidences of compliance that are required for the occupancy, operation and use of the Owned
Real Property have been obtained and complied with, except where the failure so to so obtain or comply would not have a Material Adverse Effect. 
 (e) Notwithstanding the foregoing, the representations and warranties in this Section 3.9 shall not be deemed to apply to Environmental Laws or labor and employment Laws, which are addressed by representations and warranties in
Sections 3.15, 3.19 and 3.20 respectively. 
 Section 3.10 Intellectual Property. 
 (a) Schedule 3.10(a) contains a true and complete list of all Company Registered Intellectual Property, including registration numbers and
application numbers, and the jurisdictions where each is registered, and all Intellectual Property licensed to the Company and used in connection with the Business. 
 (b) Except as set forth on Schedule 3.10(b), the Company or the applicable Subsidiary has good and valid title to or possesses the rights to use as currently used in the Business the material Company
Intellectual Property, free and clear of all Liens, other than Permitted Liens, and has paid all material maintenance fees, renewals or expenses related to such material Company Intellectual Property. On the date hereof, all material Company
Registered Intellectual Property is appropriately registered in the name of the Company or the applicable Subsidiary and, to the Knowledge of the Company, is valid, subsisting and enforceable. At Closing, Buyer will acquire good and valid title to
all material Company Intellectual Property free and clear of all Liens, other than Permitted Liens and such Liens arising as a result of any action or inaction by Buyer, its Affiliates or their respective representatives. 
 (c) Except as described on Schedule 3.10(c), and except as otherwise would not have a Material Adverse Effect, the Company or the applicable
Subsidiary has sufficient rights to exploit the Company Intellectual Property as currently used in the Business and currently anticipated to be used, including sole and exclusive rights to use, execute, reproduce, display, perform, modify, enhance,
distribute, prepare derivative works of, license and transfer the material Company Intellectual Property and has not granted any options or licenses relating to the material Company Intellectual Property. 
 (d) To the Knowledge of the Company, except as set forth on Schedule 3.10(d), neither the use of the material Company Intellectual Property nor
the conduct of the Business in the Ordinary Course, misappropriates, infringes upon, dilutes or conflicts with or otherwise violates any material Intellectual Property rights of any third party in any material respect. Except as set forth on
Schedule 3.10(d), no party has filed a written claim (or, to the Knowledge of the Company, threatened to file a claim) during the 36-month period prior to the Closing Date against the Company or any Subsidiary alleging that it has
violated, infringed on or otherwise improperly used the material Intellectual Property rights of such party. 
 (e) To the Knowledge of the
Company, the Business as presently conducted in the Ordinary Course does not require or use any Intellectual Property rights not owned by or licensed to the Company. 
  

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 (f) To the Knowledge of the Company, the Company Software does not contain any Harmful Code. 

(g) To the Knowledge of the Company, any employees and/or independent contractors who substantially contributed to authoring/inventing material
Company Software have either signed agreements assigning their rights to such authored materials or inventions to the Company or acknowledged their obligations to assign their inventions related to material Company Software to the Company.

 (h) The Company has taken all commercially reasonable precautions to protect the secrecy, confidentiality and value of its trade secrets,
and, to the Knowledge of the Company, such trade secrets are not part of the public knowledge and have not been used, divulged or appropriated for the benefit of any Person or to the detriment of the Company. 
 Section 3.11 Litigation. Except as set forth on Schedule 3.11, as of the date hereof, there is no action, suit or proceeding
pending or, to the Knowledge of the Company, threatened, against the Company or any Subsidiary by or before any Governmental Entity, other than those that would not have a Material Adverse Effect. Except as set forth on Schedule 3.11, as
of the date of this Agreement, neither the Company nor any Subsidiary is subject to any outstanding order, writ, judgment, award, injunction or decree of any Governmental Entity of competent jurisdiction or any arbitrator or arbitrators, other than
those that would not have a Material Adverse Effect. 
 Section 3.12 Compliance with Applicable Law. Except as set forth on
Schedule 3.12, as of the date hereof, the Company and each Subsidiary is in compliance with all applicable Laws, except where the results of any such noncompliance would not, individually or in the aggregate, have a Material Adverse
Effect. Neither the Company nor any Subsidiary has received any written notice from any Governmental Entity during the past three years regarding any actual, alleged or potential violation of Law, or any actual, alleged or potential obligation of
the Company to undertake or bear all or any portion of the cost of any remedial action under any Law. Notwithstanding the foregoing, nothing in this Section 3.12 shall be deemed to apply to Tax Laws, Environmental Laws or labor and employment
Laws (other than the Federal Occupational Safety and Health Act and similar state laws), which are exclusively addressed by Sections 3.14, 3.15, 3.19 and 3.20 respectively. 
 Section 3.13 Company Contracts. 
 (a) Schedule 3.13(a) sets forth a true, correct and complete list of the following Contracts to which either the Company or its Subsidiaries is a party and is currently subject, by which either the Company, its Subsidiaries or any
property of any thereof is currently subject, or by which either the Company or its Subsidiaries is otherwise bound (the “Company Contracts”) (other than the Company Benefit Plans set forth on Schedule 3.19(a)): 

(i) all Contracts (excluding work orders, purchase orders and credit applications) with suppliers under which the Company and its
Subsidiaries (together, as applicable, with respect to any Contract) make payments in excess of $500,000 on an annual basis; 
  

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 (ii) all Contracts for capital expenditures in excess of $500,000; 
 (iii) all Contracts not entered into in the Ordinary Course that involve payments to or receipts from the Company or any Subsidiary,
collectively, in excess of $100,000 on an annual basis; 
 (iv) any agreement for the employment of any employee employed by
the Company or any Subsidiary that is not terminable-at-will, or with respect to the equity compensation of any employee employed by the Company or any Subsidiary, and any change in control, retention, or transaction bonus agreement with any
employee employed by the Company or any Subsidiary; 
 (v) all bonds, debentures, notes, loans, credit or loan agreements or
loan commitments, mortgages, indentures, guarantees or other Contracts relating to the borrowing of money; 
 (vi) all leases,
rental or occupancy agreements relating to the Leased Real Property or the Owned Real Property or other Contracts affecting the ownership of, leasing of, title to, use of, or any leasehold in any properties or assets (whether real, personal or
mixed, tangible or intangible) of the Company or its Subsidiaries involving an annual commitment or payment of more than $100,000 individually by the Company or any Subsidiary; 
 (vii) all Contracts that provide for an increased payment or benefit, or accelerated vesting, upon the execution of this Agreement or the
Closing or in connection with the transactions contemplated hereby (other than a Company Benefit Plan); 
 (viii) all joint
venture or partnership Contracts, cooperative agreements and all other Contracts providing for the sharing of any profits, losses, costs or liabilities; 
 (ix) all Contracts containing covenants that in any way purport to restrict the business activity of the Company or any Subsidiary, or limits the freedom of the Company or any Subsidiary to engage in any line of
business or to compete with any Person; 
 (x) all collective bargaining agreements and other Contracts to or with any labor
union or other employee representative of a group of employees; and 
 (xi) all Contracts (excluding work orders and purchase
orders) that individually involve payments to or from the Company or any Subsidiary, collectively, in excess of $500,000 on an annual basis. 
 (b) Except as set forth on Schedule 3.13(b), all Company Contracts are in full force and effect in all material respects and, assuming the due authorization, execution and delivery by any other party thereto, are currently
enforceable in all material respects against the Company or its Subsidiaries, as applicable, and to the Knowledge of the Company, as of the Closing will be, if not previously terminated or expired, enforceable in all material respects against the
other party thereto in accordance with the express terms thereof, subject to bankruptcy, insolvency, 

  

 -27- 

 
reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general principles of equity,
except for such failures to be in full force and effect or to be enforceable against third parties that would not have a Material Adverse Effect. There does not exist under any Company Contract any event of default or event or condition that, after
notice or lapse of time or both, would constitute a violation, breach or event of default thereunder as of the date hereof (i) on the part of the Company or any Subsidiary, or (ii) to the Knowledge of the Company, on the part of any
counter-party to a Company Contract, except as set forth on Schedule 3.13(b) and except for such violations, breaches, defaults, events or conditions that would not have a Material Adverse Effect. 
 Section 3.14 Tax Returns; Taxes. 
 (a) Except as otherwise disclosed on Schedule 3.14(a): (i) the Company and each Subsidiary has timely filed all material Tax Returns required to be filed by it; (ii) all such Tax Returns are true, correct and complete in
all material respects; (iii) all (A) Taxes of the Company or any Subsidiary that are shown as due on such Tax Returns and (B) material Taxes of the Company or any Subsidiary (1) otherwise due and payable or (2) claimed or
asserted by any taxing authority to be due, have been paid, except for those Taxes being contested in good faith and for which adequate reserves have been made in accordance with GAAP, and the Company and each Subsidiary has fully accrued (in
accordance with GAAP) all Taxes not yet due and payable; (iv) there are no Liens for any Taxes upon the assets of the Company or any Subsidiary (other than Liens for ad valorem property Taxes not yet due and payable); (v) neither
the Company nor any Subsidiary is currently under examination or audit, or is the subject of a pending or, to the Company’s Knowledge, threatened examination or audit, by the IRS or any other taxing authority and there are no current, proposed
or, to the Company’s Knowledge, threatened Tax claims, deficiencies or assessments against the Company or any Subsidiary; (vi) neither the Company nor any Subsidiary has agreed to or is required to make any adjustment under
Section 481 of the Code that would affect such entity with respect to any taxable period (or portion thereof) beginning after the Closing, (vii) none of the assets is (A) property which any Seller, Buyer, any Subsidiary or any of
their respective Affiliates is or will be required to treat as owned by another person pursuant to the provisions of Section 168(f) of the Internal Revenue Code of 1954 (as in effect immediately prior to the Tax Reform Act of 1986),
(B) “tax-exempt use property” within the meaning of Section 168(h)(1) of the Code, (C) property used predominately outside the United States within the meaning of Proposed Treasury Regulation Section 1.168-2(g)(5), or
(D) “tax-exempt bond financed property” within the meaning of Section 168(g)(5) of the Code; (viii) neither the Company nor any Subsidiary has waived any statute of limitations in respect of Taxes or agreed to any extension
of time with respect to a Tax assessment or deficiency or the collection of any Taxes; (ix) the Company and each Subsidiary has withheld and paid over to the relevant taxing authority all material Taxes required to have been withheld and paid
in connection with payments to employees, independent contractors, creditors, shareholders or other third parties; (x) neither the Company nor any Subsidiary is a party to or bound by any tax allocation, indemnification, sharing or similar
agreement or any other agreement under which such entity is actually or potentially liable for any Taxes of any other Person; (xi) no closing agreement pursuant to Section 7121 of the Code (or any similar provision of state, local or
foreign Tax law), private letter ruling, technical advice memorandum or similar agreement or ruling has been entered into by or with respect to the Company or any Subsidiary, or has been issued to or in respect of the Company or any Subsidiary;
(xii) the 

  

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Company is a partnership for federal income tax purposes and all applicable state and local income tax purposes, is not taxable as a corporation pursuant to
Section 7704 or any other provision of the Code (or any similar provision of U.S. state or local law) and has not made an election under Section 7701 of the Code or the Treasury Regulations promulgated thereunder (or any similar provision
of U.S. state or local law) to be taxed as a corporation; (xiii) at all times from its inception through the Closing Date, SEP has been properly treated as a disregarded entity for U.S. federal income tax and all applicable state and local
income tax purposes; (xiv) none of the Sellers is a “foreign person” for purposes of Section 1445 of the Code; (xv) neither the Company nor any Subsidiary has entered into, or otherwise participated (directly or indirectly)
in, any “reportable transaction” within the meaning of Treasury Regulations Section 1.6011-4(b) or received a written opinion from a tax advisor that was intended to provide protection against a tax penalty; (xvi) there is no
outstanding power of attorney with respect to any Tax matter of the Company or any of its Subsidiaries and (xvii) neither the Company nor any Subsidiary has any actual or potential liability for the Taxes of any Person under Treasury
Regulations Section 1.1502-6 (or any similar provision of state, local, or foreign Law), as a transferee or successor, by contract, or otherwise. 
 (b) The Company has made available to Buyer true, correct and complete copies of all federal, state, local and foreign income Tax Returns filed by the Company and its Subsidiaries for taxable years ended after 2003
and for any taxable years ended prior to 2003 that have not closed. 
 Section 3.15 Environmental Matters. 
 (a) Except as set forth on Schedule 3.15(a) or except for those matters which would not, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect: 
 (i) the Company and each Subsidiary, the Business, their operations, the Real
Property and their other assets are in compliance with applicable Environmental Laws as of the date hereof; 
 (ii) the
Company and each Subsidiary has obtained and is in compliance with all Environmental Permits required by applicable Environmental Laws for the Business, their operations, the Real Property and their other assets, and each such Environmental Permit
is in full force and effect, and neither the Company nor any of its Subsidiaries has been advised by any Governmental Authority of any change in the status or terms and conditions of any such Environmental Permit; 
 (iii) there are no Environmental Claims pending, and, to the Knowledge of the Company, none are threatened, against or involving the
Company or any Subsidiary, and neither the Company nor any Subsidiary has received notice of any Environmental Claim; 
 (iv)
neither the Company nor any Subsidiary is conducting or paying, in whole or in part, for any investigation, response or other corrective action under any Environmental Law at any location or facility; 
  

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 (v) neither the Company nor any Subsidiary has entered into or agreed to, or is otherwise
subject to, any order, decree, judgment or agreement relating to any Environmental Law, including any order, decree, judgment or agreement relating to the investigation or remediation of Hazardous Materials thereunder; 
 (vi) there has been no Release of Hazardous Materials at, on, under or from any Real Property or any facilities located thereon, or any
other property or facility previously owned, operated or leased by the Company or any Subsidiary, which would reasonably be expected to result in a violation of or liability under any Environmental Law; 
 (vii) there are no underground storage tanks, including any piping associated with such underground storage tanks, at, on or under the
Real Property or any facility located thereon; 
 (viii) there are no surface impoundments, landfills or other disposal areas
at, on or under the Real Property; 
 (ix) neither the Company nor any Subsidiary has retained or assumed, either
contractually or by operation of law, any liabilities or obligations that would reasonably be expected to form the basis for an Environmental Claim against the Company or any Subsidiary; and 
 (x) no Hazardous Material has been transported or disposed of from the Real Property or any facility located thereon in violation of or in
a manner or at a location that would reasonably be expected to result in liability under any Environmental Law. 
 (b) The Company and each
of the Subsidiaries has provided Buyer with all material: (x) assessments, audits, and reports which relate to compliance by the Company or any Subsidiary with, or actual or potential liability of the Company or any Subsidiary under any
Environmental Laws; and (y) data in its possession or under its control relating to Releases of Hazardous Materials at, on, under or emanating from any of the Real Property and all facilities located thereat, or any other property or facility
previously owned, operated or leased by the Company or any Subsidiary. 
 Section 3.16 Licenses and Permits.
Schedule 3.16 is a true, correct and complete list of all material Licenses held by the Company and each Subsidiary. Each of the Company and its Subsidiaries own or possess all Licenses that are necessary to enable it to carry on their
respective operations as presently conducted, except, in each case, where the failure to have a particular License would not materially interfere with the business operations of the Company and its Subsidiaries. Such Licenses are in full force and
effect, and each of the Company and its Subsidiaries is in material compliance with the terms of each License applicable to it. Neither the Company nor any of its Subsidiaries has received any notice of noncompliance or of a judgment, consent
decree, order, judicial or administrative actions that would reasonably be expected to materially and adversely affect the Business, the Company or any of its Subsidiaries. 
 Section 3.17 Suppliers. Schedule 3.17 sets forth true, correct and complete lists of the ten (10) largest suppliers and vendors
(“Suppliers”) to each of the Company, SPRC and each 

  

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newsprint mill of the Company (based on amounts paid by or on behalf of the Company, SPRC or such newsprint mill to such suppliers and vendors for the
12-month period ended September 30, 2007), together with the dollar volume of the purchases made from such Suppliers during such period. Except as set forth in Schedule 3.17, as of the date hereof, none of the Suppliers has given written
notice of cancellation or otherwise terminated, or threatened in writing to cancel or otherwise terminate its relationship with the Company or SPRC, as applicable. As of the date hereof, no Supplier has notified the Company or any Subsidiary in
writing of its intention to decrease or materially limit the services, supplies or materials sold or furnished to Company or such Subsidiary where such action would have a Material Adverse Effect. 
 Section 3.18 Insurance. 
 (a) The
Company and its Subsidiaries maintain policies of insurance covering such risks, in such amounts and with such deductibles and exclusions as are reasonable for the Company and its Subsidiaries, as determined by the Company in its reasonable business
judgment. All such policies are in full force and effect, all premiums that are due and payable with respect thereto have been paid, and no notice of material increase in premiums, denial of coverage (or defense of any claim under reservation of
rights), cancellation or termination has been received with respect to any of such policies. During the last three years, the Company has not been refused any insurance, nor has its coverage been reduced by any insurance carrier. 
 (b) The Company has delivered to Buyer: 
 (i) accurate and complete copies of (A) all policies of insurance (and material correspondence relating to coverage thereunder) to which the Company is a party for the period of October 1, 2006 through
September 30, 2007 and (B) to the extent available, all policies of insurance (and material correspondence relating to coverage thereunder) to which the Company is a party for the period of October 1, 2007 through September 30,
2008); and 
 (ii) accurate and complete copies of all pending applications by the Company for policies of insurance.

 (c) Except as set forth in Schedule 3.18(c), the Company has given notice to the insurer of all existing claims in excess of
$500,000 of which the Company believes to be insured thereby. 
 Section 3.19 Company Benefit Plans. 
 (a) As of the date hereof, Schedule 3.19(a) contains a true, correct and complete list of each Company Benefit Plan. True and correct copies of the
following have been supplied, or made available, to Buyer: (i) all written Company Benefit Plans, including any amendments thereto, (ii) an accurate description of the material provisions of any Company Benefit Plan which is not in written
form, as in effect on the date hereof, (iii) the most recent determination letter received from the IRS regarding any Company Benefit Plan (where applicable), (iv) the most recent Form 5500 for the Company Benefit Plans (where required by
applicable law to be filed with the IRS), and (v) the most recent actuarial report for any Company Benefit Plan for which such a report is required. 
  

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 (b) Each Company Benefit Plan which is or was, within the last five years, a “multiemployer pension
plan” (as defined in Sections 3(37) or 4001(a)(3) of ERISA) or a “multiple employer plan” described in Section 413(c) of the Code is identified on Schedule 3.19(b). 
 (c) Each Company Benefit Plan which is an “employee pension benefit plan” within the meaning of Section 3(2) of ERISA that is or was
subject to Title IV of ERISA or Section 412 of the Code is identified on Schedule 3.19(c). 
 (d) Except as set forth on
Schedule 3.19(d): 
 (i) Each Company Benefit Plan has been established and administered in all material respects in
accordance with its terms and in compliance with applicable Laws, including ERISA and the Code. Neither the Company nor any Subsidiary has incurred, or reasonably expects to incur, any material liability with respect to any Company Benefit Plan or
ERISA Affiliate Plan, including any tax or penalty under ERISA or the Code (other than to pay premiums, to make contributions or to pay benefits in the Ordinary Course). 
 (ii) Each Company Benefit Plan intended to be “qualified” within the meaning of Section 401(a) of the Code (and the trusts
which are a part of such plans that are intended to be exempt from taxation under Section 501(a) of the Code) has received a favorable determination letter from the IRS indicating that it is so qualified. Nothing has occurred prior to or since
the issuance of the IRS determination letters for any Company Benefit Plan to cause the loss of qualification under the Code of any such plans. 
 (iii) There is no pending or, to the Knowledge of the Company, threatened material claim (other than a routine claim for benefits), proceeding, examination, audit, investigation or other proceeding with respect to any
Company Benefit Plan. 
 (iv) The execution, delivery and performance of, and consummation of the transactions contemplated
by, this Agreement will not (A) entitle any Person to any additional benefits, including severance pay, unemployment compensation or any other payment, or (B) accelerate the time of payment or vesting of any benefits under any Company
Benefit Plan, or increase the amount of compensation due any such individual. Neither the Company nor any Subsidiary is obligated or will become obligated in connection with the transactions contemplated by this Agreement to make a payment that will
not be deductible under Section 280G of the Code. 
 (v) No non-exempt prohibited transaction (within the meaning of
Section 406 of ERISA or Section 4975 of the Code) has occurred that gives rise to or would reasonably be expected to give rise to any material liability on the part of the Company or its Subsidiaries. All contributions required to be made
to the Company Benefit Plans have been made in full. No assets of the Company or any of its Subsidiaries are allocated to or held in a “rabbi trust” or similar funding vehicle. No written or, to the Knowledge of the Company, oral
communication has been received from the Pension Benefit Guaranty Corporation in respect of any Company Benefit Plan subject to Title IV of ERISA concerning the funded status of any such plan or any transfer of assets and liabilities from any such
plan in connection with the transactions contemplated herein. 
  

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 (vi) No Company Benefit Plan is a “multiple employer welfare arrangement” as
defined in Section 3(40) of ERISA, and neither the Company nor any Subsidiary has received any services from an individual whom it treated as an independent contractor or leased employee, but who (to the Knowledge of the Company) has been
determined by any Governmental Entity to be a common law employee for purposes of a Company Benefit Plan. With respect to each Company Benefit Plan that is a “multiemployer pension plan”, (i) no complete or partial withdrawal from
such plan has been made by the Company or any Subsidiary, or, to the Knowledge of the Company, by any other person, that could result in any liability to the Company or any Subsidiary, whether such liability is contingent or otherwise, and
(ii) no liability would be imposed on the Company or any Subsidiary in the event of a complete withdrawal by them on the Closing Date from any such plan. 
 (vii) Each Company Benefit Plan that is a “nonqualified deferred compensation plan” within the meaning of
Section 409A(d)(1) of the Code and any award thereunder, in each case that is subject to Section 409A of the Code, has been operated in good faith compliance in all material respects with Section 409A of the Code since January 1,
2005, the proposed regulations issued thereunder and the IRS Notice 2005-1. 
 (viii) With respect to vacation benefits to
which any Continued Employee or employee whose terms of employment are subject to a collective bargaining agreement is entitled, such vacation benefits are not cumulative and are forfeited if not taken during the fiscal year in which they are
earned. No Continued Employee or employee whose terms of employment are subject to a collective bargaining agreement is able or has ever been able to carry forward to a subsequent fiscal year any vacation benefits earned or accrued in a prior fiscal
year. 
 (ix) Schedule 3.19(d) identifies each current or former employee of the Company or any Subsidiary who is
entitled to any present or future benefits or payments under the SERP or Unit Purchase Plan, as well as the number of units awarded under the Unit Purchase Plan currently outstanding for any current or former employee of the Company or any
Subsidiary. The Sellers have delivered to Buyer true, correct and complete copies of all SERP plans, agreements, trusts and other related SERP documents. 
 Section 3.20 Labor Relationships. 
 (a) Schedule 3.20(a) identifies each collective
bargaining agreement and all modifications and amendments thereto between the Company or any Subsidiary and any trade union, labor organization or group. 
 (b) Except as set forth on Schedule 3.20(b), no labor dispute, walk out, strike, hand billing, slowdown, lockout, picketing, or work stoppage involving the employees of the Company or any Subsidiary has
occurred, is in progress or, to the Knowledge of the Company, has been threatened in the last two years. 
  

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 (c) Except as set forth on Schedule 3.20(c), as of the date hereof (and for the prior six years),
there has not been, nor is there pending or, to the Knowledge of the Company, threatened, any material action, suit, proceeding, grievance, or arbitration against the Company or any Subsidiary relating to any current or former employees, nor is the
Company or any Subsidiary subject to any outstanding order, writ, judgment, arbitration award, injunction or Governmental decree in connection therewith. 
 (d) Neither the Company nor any Subsidiary have any material liability or obligation to any Person arising from the status of the Company or any Subsidiary as a successor employer, joint employer, alter ego or other
legal doctrine that would cause the Company or its Subsidiaries or Buyer to have any co-liability with or liability derived from another entity under applicable labor-management relations law or laws governing employment, nor shall the Company or
its Subsidiaries or Buyer incur any material liability related to any employee, former employee or Person solely as a consequence of the execution, delivery, or consummation of the transactions contemplated by this Agreement. 
 (e) The Company and its Subsidiaries, as of the date hereof are (and for the prior five years have been) in compliance in all material respects with all
Laws pertaining to the hiring, employment and termination of the employment of employees, occupational safety, plant closing, federal contracting, layoffs, collective bargaining, labor relations, equal employment opportunities, fair employment
practices, terms and conditions of employment, hours of work and payment of wages or compensation and other amounts, granting of leaves of absences, and other similar employment activities, and has withheld all amounts required by statute,
regulation or agreement to be withheld from the wages, salaries or other compensation of employees. 
 (f) Any notice required by Law or
pursuant to the Company Collective Bargaining Agreement has been given, and all outstanding bargaining obligations, other than effects bargaining obligations under the Company Collective Bargaining Agreement have been, or prior to the Closing Date,
will be satisfied. Within the two years prior to the date hereof, neither the Company nor any of its Subsidiaries has implemented any plant closing or mass layoff of employees that would implicate the Worker Adjustment and Retraining Notification
Act of 1988, as amended, or any similar foreign, state, or local law, regulation, or ordinance (collectively, the “WARN Act”). 
 (g) Except as set forth on Schedule 3.20(c), as of the date hereof, there have been no grievances filed in accordance with the Company Collective Bargaining Agreement that would be reasonably expected to result in damages exceeding
$150,000 in any individual case or in the aggregate. 
 Section 3.21 Certain Fees. Except as set forth on Schedule 3.21,
neither the Company nor any Subsidiary has employed any broker, finder, investment banker, or other intermediary or incurred any liability for any investment banking fees, financial advisory fees, brokerage fees, finders’ fees, or other similar
fees in connection with this Agreement or the transactions contemplated hereby. 
 Section 3.22 Condition and Sufficiency of
Assets. Except for Permitted Liens or except as set forth on Schedule 3.22, the Company and its Subsidiaries, as applicable, own or lease or 

  

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otherwise possess a transferable right to use the assets that are reasonably necessary to operate the Business in the manner conducted by the Company and its
Subsidiaries as of the date hereof. The principal buildings and equipment used by the Company and its Subsidiaries in the Business are in adequate operating condition and repair for purposes of conducting the operations of the Business as currently
conducted (normal wear and tear and required maintenance excepted). 
 Section 3.23 NO OTHER REPRESENTATIONS OR WARRANTIES. EXCEPT FOR
THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE III AND IN ARTICLE IV, NONE OF THE COMPANY, ITS SUBSIDIARIES OR THE SELLERS MAKES ANY REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF EACH SELLER 
 Each Seller severally (as to itself and not as to any other Seller) hereby
represents and warrants to Buyer as of the date of this Agreement as follows: 
 Section 4.1 Authorization. Such Seller has the
requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by such Seller
and the consummation of the transactions contemplated hereby have been duly authorized by all required action on the part of such Seller. This Agreement has been duly executed and delivered by such Seller, and constitutes, when duly executed by all
Parties and delivered by such Seller, the valid and binding agreement of such Seller enforceable against such Seller in accordance with its terms, subject to applicable bankruptcy, insolvency and other similar Laws affecting the enforceability of
creditors’ rights generally, general equitable principles and the discretion of courts in granting equitable remedies. 
 Section 4.2 Partnership Interest Ownership. Such Seller is the record and beneficial owner of the Partnership Interests set forth next to such Seller’s name on Schedule 3.3. Such Seller has, and at the Closing will
have, good title to such Partnership Interests. Such Partnership Interests will be transferred to Buyer at Closing free and clear of any Liens, except for such Liens arising as a result of any action or inaction by Buyer, its Affiliates or their
respective representatives. 
 Section 4.3 Consents and Approvals. Except for applicable requirements of the HSR Act, the
execution, delivery and performance of this Agreement, the consummation of the transactions contemplated hereby and the fulfillment of and compliance with the terms and conditions hereof do not (a) materially violate or conflict with any
provision of the organizational documents of such Seller, or with any resolution or authorization adopted by the governing body or shareholders of such Seller, (b) require any filing with, or the obtaining of, any permit, authorization, consent
or approval of, any Governmental Entity, (c) violate, conflict with or result in a default under, or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions of any note, mortgage,
other 

  

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evidence of indebtedness, guarantee, license, agreement, or lease to which the Seller is a party or by which it is bound, or (d) violate any Law,
injunction or decree applicable any Seller; excluding from the foregoing clauses (b), (c) and (d) such requirements, violations, conflicts, defaults or rights (i) which would not materially and adversely affect the ability of the
Seller to consummate the transactions contemplated by this Agreement or (ii) which become applicable as a result of any acts or omissions by, or the status of or any facts pertaining to Buyer. 
 Section 4.4 Certain Fees. Neither the Company nor any of its Subsidiaries will be responsible for any broker, finder, or investment banker
fee or commission in connection with this Agreement or the transactions contemplated hereby based on any commitments made by or on behalf of such Seller. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Except as provided on Schedule 5, each Buyer hereby jointly and severally represents and warrants to the Sellers and the Company as of the date of
this Agreement as follows: 
 Section 5.1 Organization. Buyer is a limited liability company duly organized, validly existing and
in good standing under the Laws of its jurisdiction of organization, and has the limited liability company power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted. 
 Section 5.2 Authorization. Buyer has the limited liability company power and authority to execute and deliver this Agreement and the other
agreements and certificates contemplated hereby, and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly authorized, executed and delivered by Buyer and
do or shall, as the case may be, when duly executed by all Parties and delivered by Buyer, constitute the valid and binding agreements of Buyer, enforceable against Buyer in accordance with their respective terms, subject to applicable bankruptcy,
insolvency and other similar Laws affecting the enforceability of creditors’ rights generally, general equitable principles and the discretion of courts in granting equitable remedies. 
 Section 5.3 Consents and Approvals; No Violations. Except for applicable requirements of the HSR Act, which have been satisfied as a result
of the grant on February 29, 2008 of the request for early termination of the waiting period under the HSR Act (transaction identification number 2008-0752), neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will (a) conflict with or result in any breach of any provision of the organizational documents of Buyer; (b) require any filing with, or the obtaining of any permit, authorization, consent or approval of,
any Governmental Entity; (c) violate, conflict with or result in a default (or any event which, with notice or lapse of time or both, would constitute a default) under, or give rise to any right of termination, cancellation or acceleration
under, any of the terms, conditions or provisions of any note, mortgage, other evidence of indebtedness, guarantee, license, agreement, lease or other contract, instrument or obligation to which Buyer is a party or by which Buyer or any of its
assets may be bound; or 

  

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(d) violate any Law, injunction or decree applicable to Buyer, excluding from the foregoing clauses (b), (c) and (d) such requirements,
violations, conflicts, defaults or rights (i) which would not adversely affect the ability of Buyer to consummate the transactions contemplated by this Agreement or (ii) which become applicable as a result of any acts or omissions by, or
the status of or any facts pertaining to, the Sellers. 
 Section 5.4 Litigation. There is no claim, action, suit, proceeding or
governmental investigation pending or, to the knowledge of Buyer, threatened, against Buyer by or before any Governmental Entity or by any third party which challenges the validity of this Agreement or which would be reasonably likely to adversely
affect or restrict Buyer’s ability to consummate the transactions contemplated by this Agreement. 
 Section 5.5 Financial
Capability. Buyer is a newly formed limited liability company which has conducted no business other than in connection with the transactions contemplated by this Agreement. Exhibit 5.5 attached hereto contains true, complete and
correct copies of executed equity commitment letters and form of credit agreement to provide Buyer financing for the transactions contemplated by this Agreement in an aggregate amount of Three Hundred Eighty-Six Million Dollars ($386,000,000) (the
“Financing Documents”). The Financing Documents are in full force and effect and have not been amended or modified. Buyer has no reasonable expectation as of the date of this Agreement that any of the conditions set forth in the
Financing Documents will not be satisfied. The financing contemplated by the Financing Documents constitutes all of the financing required to be provided by Buyer for the consummation of the transactions contemplated by this Agreement and the
payment of all fees and expenses incurred by Buyer in connection therewith. Buyer will have available as of the Closing Date funds sufficient to pay the Purchase Price, the payments required under Section 2.5(c), Section 2.5(d) and
Section 6.20 and the fees and expenses of Buyer related to the transactions contemplated hereby. Buyer knows of no circumstances or conditions that could be reasonably expected to prevent the availability at the Closing of such funds.

 Section 5.6 Purchase for Investment; Accredited Investor. Buyer is acquiring the Partnership Interests solely for investment
for its own account and not with the view to, or for resale in connection with, any “distribution” (as such term is used in Section 2(11) of the Securities Act of 1933, as amended (the “Securities Act”)) thereof.
Buyer understands that the Partnership Interests have not been registered under the Securities Act or any state or foreign securities laws by reason of specified exemptions therefrom that depend upon, among other things, the bona fide nature of its
investment intent as expressed herein and as explicitly acknowledged hereby and that under such laws and applicable regulations such securities may not be resold without registration under the Securities Act or under applicable state or foreign law
unless an applicable exemption therefrom is available. Buyer is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. 
 Section 5.7 Independent Review. Buyer has conducted its own independent review and analysis of the Company and its Subsidiaries and their
respective condition, cash flow and prospects, and acknowledges that Buyer has been provided access to the properties, premises and records of the Company and its Subsidiaries for this purpose. In entering this Agreement, Buyer has relied
exclusively upon its own investigation and analysis and the representations and warranties contained herein, and Buyer: 
 (a) acknowledges
that it has had the opportunity to visit with the Company and its Subsidiaries and meet with their respective officers and other representatives to discuss the Company and its Subsidiaries and their respective condition, cash flow and prospects;

  

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 (b) acknowledges that it has undertaken such due diligence (including a review of the assets,
liabilities, books, records and Contracts of the Company and its Subsidiaries) as Buyer deems adequate; 
 (c) acknowledges that neither the
Company, its Subsidiaries nor any of their respective directors, officers, employees, Affiliates, agents or representatives make any representation or warranty, either express or implied, as to the accuracy or completeness of any of the information
provided or made available to Buyer or its agents or representatives prior to the execution of this Agreement; and 
 (d) agrees, to the
fullest extent permitted by Law, that neither the Company, its Subsidiaries nor any of their respective directors, officers, employees, Affiliates, agents or representatives shall have any liability or responsibility whatsoever to Buyer on any basis
(including in contract or tort, under federal or state securities laws or otherwise) based upon any information provided or made available, or statements made, to Buyer prior to the execution of this Agreement. 
 Section 5.8 Certain Fees. Buyer has not employed any broker, finder, investment banker, or other intermediary or incurred any liability for
any investment banking fees, financial advisory fees, brokerage fees, finders’ fees, or other similar fees in connection with this Agreement or the transactions contemplated hereby. 
 ARTICLE VI 
 COVENANTS 
 Section 6.1 Conduct of the Business. The Company agrees that, during the period from the date of this Agreement to the Closing, except as
otherwise contemplated by this Agreement or the Schedules or Exhibits hereto, or as consented to by Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), the Company will, and will cause each Subsidiary to: 
 (a) not amend the Partnership Agreement in the case of the Company, or the certificates or articles of incorporation or bylaws in the case of any
Subsidiary; 
 (b) not authorize for issuance, issue, sell, pledge, encumber or deliver or agree or commit to issue, sell, pledge, encumber
or deliver any equity ownership interests, or not issue any securities convertible into, exchangeable for or representing a right to purchase or receive any equity ownership interests, or not enter into any contract with respect to the issuance of
equity ownership interests; 
 (c) not split, combine or reclassify any equity ownership interests of the Company; not declare, set aside or
pay any equity ownership distribution in respect of its equity ownership interests, provided that the Company and its Subsidiaries may make cash dividends or pay cash dividends in respect of their respective partnership interests or capital
stock in accordance with Section 6.13 hereof; or not redeem or otherwise acquire any of its equity ownership interests; 
  

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 (d) except as set forth on Schedule 6.1(d), (i) not incur any Indebtedness or guarantee any
Indebtedness of another Person, issue or sell any debt securities or warrants or other rights to acquire any debt securities, guarantee any debt securities of another Person or enter into any “keep well” or other agreement to maintain any
financial statement condition to another Person, except for short-term borrowings incurred in the Ordinary Course not exceeding $15,000,000 in the aggregate (including all expenses associated with incurring such obligations, including but not
limited to filing fees, prepayment fees, accountant fees, attorney’s fees, banking fees and penalties) or (ii) not make any loans, advances or capital contributions to, or investments in, any other Person other than to or in the Company or
any Subsidiary; 
 (e) use its commercially reasonable efforts, taking into account the impact of the transaction contemplated by this
Agreement, to preserve intact the current business organization of the Company, keep available the services of the present employees of the Company and maintain business relationships with, suppliers, customers, landlords, creditors, distributors,
and all other Persons having business relationships with the Company; 
 (f) not mortgage, pledge or subject to any material Lien or security
interest (other than Permitted Liens) any material asset, except in the Ordinary Course; 
 (g) except as set forth on Schedule
6.1(g), not enter into or amend the Company Collective Bargaining Agreement or any Company Benefit Plan, employment, bonus, severance or retirement contract or arrangement, including those set forth in Schedule 3.19(a), or increase any
salary or other form of compensation payable or to become payable to any of its executives, partners, affiliates, or employees, enter into or amend any contract or arrangement of any affiliates, or employees nor pay any special bonus to its
executives, partners, affiliates, directors or employees, except for payments under those Contracts and arrangements disclosed in the Schedules; 
 (h) not sell, lease, license or otherwise dispose of or agree to sell, lease, license or otherwise dispose of any of its material assets, properties, rights or claims, except in the Ordinary Course; 
 (i) not amend, cancel or terminate any existing lease agreement, except in the Ordinary Course; 
 (j) not modify, amend, cancel or terminate any existing agreement or arrangement involving any obligation with a value in excess of $1,000,000 and not
otherwise expressly provided for in this Section 6.1, except in the Ordinary Course; 
 (k) except as set forth on Schedule
6.1(k), not cause or permit the Company or any Subsidiary to (i) make, change or revoke any material election in respect of Taxes, (ii) adopt or change any material accounting method in respect of Taxes, (iii) enter into any Tax
allocation, indemnification, sharing, or similar agreement or any other agreement under which such entity is actually or potentially liable for any Taxes of any other Person, (iv) file any amended Tax Return to claim a refund of Taxes or
surrender any right to claim a refund of Taxes if such amendment, 

  

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action, or omission could adversely affect such entity, Buyer or any of their Affiliates with respect to any taxable period (or portion thereof) beginning on
or after the Closing Date, or (v) settle or compromise any material claim, notice, audit, deficiency, or assessment in respect of Taxes if any such making, change, revocation, adoption, entering into, filing, settlement or compromise referred
to in this Section 6.1(k) could adversely affect such entity, Buyer or any of their Affiliates with respect to any taxable period (or portion thereof) beginning on or after the Closing Date; 
 (l) not make any material Software Enhancements or other material changes to the Software other than in the Ordinary Course, nor shall the Company
willfully introduce any Harmful Code into the Software or the Software Enhancements; 
 (m) not, directly or indirectly, or through its
respective officers, directors, employees, investment bankers, attorneys, accountants or other agents or those of any of its subsidiaries (such persons, collectively, the “Representatives”) (i) initiate, solicit or knowingly
encourage (including by way of providing information) any prospective purchaser or invite the submission of any inquiries, proposals or offers or any other efforts or attempts that constitute or may reasonably be expected to lead to any proposal to
acquire the Company or all or substantially all of the Company’s assets or engage in any discussions or negotiations with respect thereto or otherwise cooperate with or assist or participate in, or knowingly facilitate any such inquiries,
proposals, discussions or negotiations or (ii) accept a proposal to acquire the Business or enter into any agreement or agreement in principle providing for or relating to an acquisition of the Business; in each case, except with respect to
Buyer. 
 (n) otherwise report periodically to Buyer concerning status of the Business, operations and finances of the Company and the
Subsidiaries as permitted by applicable Law and as reasonably requested by Buyer; 
 (o) confer with the Buyer as reasonably requested
concerning operational matters of a material nature, as permitted by applicable Law; and 
 (p) not agree in writing, or otherwise, to take
any action described in this Section 6.1. 
 Section 6.2 Access to Information. 
 (a) Subject to the restrictions of any applicable Law or contractual undertaking, between the date of this Agreement and the Closing, the Company shall
(i) give Buyer and its authorized representatives, including, Buyer’s financing sources, reasonable access to the books, records, work papers, offices and other facilities and properties of the Company and each Subsidiary, (ii) permit
Buyer to make such inspections thereof as Buyer may reasonably request and (iii) cause the officers of the Company and each Subsidiary to furnish Buyer with such financial and operations data and other information with respect to the Company
and each Subsidiary as Buyer may reasonably request; provided, however, that any such investigation shall be conducted during normal business hours under the supervision of the Company’s personnel and in such a manner as to
maintain the confidentiality of this Agreement and the transactions contemplated by this Agreement and not interfere unreasonably with the business operations of the Company or any Subsidiary. Notwithstanding the foregoing, Buyer and any of 

  

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its counsel, environmental consultants, investment bankers, financial sources, lenders and other representatives will not, prior to Closing, conduct any
on-site environmental site activities of any type, including the conduct of Phase I or Phase II environmental site assessments, monitoring or invasive sampling of soil, groundwater, air, any other environmental media, or building materials or
equipment, pertaining to Environmental Laws or Hazardous Materials and relating to the Owned Real Property or the Leased Real Property, or directly contact any relevant environmental agency, in each case without the prior written consent of the
Sellers which will not be unreasonably withheld. 
 (b) All information furnished or provided by the Company, any Subsidiary or any of their
respective Affiliates or representatives to Buyer or its representatives (whether furnished before or after the date of this Agreement) shall be held subject to the Confidentiality Agreement. 
 (c) Following the Closing, Buyer agrees to make personnel of Buyer or its Affiliates available to the Sellers to the extent such access is reasonably
necessary for the Sellers to comply with the terms of this Agreement or any applicable Law. 
 Section 6.3 Consents. 

(a) The Parties shall cooperate and use their commercially reasonable efforts to obtain all licenses, permits, consents, approvals, authorizations,
qualifications and orders of Governmental Entities and other third parties (collectively, “Consents”) necessary to consummate the transactions contemplated by this Agreement, including those Consents set forth in Schedule
6.3(a). In addition to the foregoing, Buyer agrees to provide such assurances as to financial capability, resources and creditworthiness as may be reasonably requested by any third party whose consent or approval is sought in connection with the
transactions contemplated hereby. 
 (b) Each of the Company and Buyer will promptly after execution of this Agreement make all filings or
submissions as are required under the HSR Act. Each of the Company and Buyer will promptly furnish to the other such necessary information and reasonable assistance as the other may request in connection with its preparation of any filing or
submission that is necessary under the HSR Act. Each of the Company and Buyer will promptly provide the other (or the other’s outside counsel, as appropriate) with copies of all written communications (and memoranda setting forth the substance
of all significant oral communications) between each of them, any of their Affiliates or any of its or their representatives, on the one hand, and any Governmental Entity, on the other hand, with respect to this Agreement or the transactions
contemplated hereby. Without limiting the generality of the foregoing, each of the Company and Buyer will promptly notify the other of the receipt and content of any inquiries or requests for additional information made by any Governmental Entity in
connection therewith and will promptly (i) comply with any such inquiry or request and (ii) provide the other with a description of the information provided to any Governmental Entity with respect to any such inquiry or request. In
addition, each of the Company and Buyer will keep the other apprised of the status of any such inquiry or request. 
  

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 (c) Neither Buyer nor the Company shall, and each shall cause their respective Affiliates not to, take
any action that could reasonably be expected to adversely affect the approval of any Governmental Entity of any of the aforementioned filings. 
 (d) Buyer shall cooperate in good faith with all Governmental Entities and shall undertake promptly any and all commercially reasonable action required to complete lawfully the transactions contemplated by this Agreement; provided,
however, that Buyer shall not be obligated to agree to (i) any restraint or prohibition on Buyer’s ownership or operation (or that of its Affiliates) of all or any material portion of the business or assets of the Company and its
Subsidiaries or of Buyer and its subsidiaries, (ii) any disposal or divestiture by Buyer or any of its Affiliates of or requirement to hold separate all or any material portion of the business or assets of the Company and its Subsidiaries or of
Buyer and its subsidiaries, (iii) any material limitations on the ability of Buyer or any of its Affiliates effectively to exercise full rights of ownership of the Partnership Interests or (iv) any other material restrictions on the
conduct of the business of the Buyer or any of its Affiliates or the Company or any of its Subsidiaries. 
 Section 6.4 Commercially
Reasonable Efforts. Each of the Parties shall cooperate, and use its commercially reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to
consummate the transactions contemplated by this Agreement as promptly as practicable after the date hereof. The Parties further covenant and agree, with respect to a threatened or pending preliminary or permanent injunction or other order, decree
or ruling or statute, rule, regulation or executive order that would adversely affect the ability of the Parties to consummate the transactions contemplated hereby, to use their commercially reasonable efforts to prevent or lift the entry, enactment
or promulgation thereof, as the case may be. 
 Section 6.5 Public Announcements. Except as otherwise agreed to by the Parties,
the Parties shall not issue any report, statement or press release or otherwise make any public statements with respect to this Agreement and the transactions contemplated hereby, except as in the reasonable judgment of a Party may be required by
Law or by the rules of a national securities exchange, and in any event a Party shall use its reasonable best efforts to consult with the other Party a reasonable time in advance of such required disclosure. 
 Section 6.6 Financing. 
 (a) The
Company shall provide, shall cause its Subsidiaries to provide and shall use commercially reasonable efforts to cause its representatives, including legal and accounting advisors, to provide, all customary cooperation reasonably requested by Buyer
in connection with the arrangement of the transactions contemplated by the Financing Documents (the “Financing”), including (i) to the extent permitted by Law, furnishing Buyer and Buyer’s financing sources as promptly as
practicable with the financial and other material business information set forth on Exhibit 6.6(a) (the “Required Information”), (ii) participating in a bank meeting, (iii) assisting with the preparation of
materials for bank information memoranda, (iv) reasonably cooperating with the marketing efforts for any of the Financing, including providing assistance in the preparation for, and participating in, meetings, due diligence sessions and similar
presentations to and with, among others, prospective lenders, (v) to the extent permitted by Law and until the Closing, providing (A) financial statements for each month 

  

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within 20 days after month’s end and (B) financial statements for each fiscal quarter within 45 days after the end of each quarter, and
(C) the audited financial statement for the fiscal year ended December 31, 2007 no later than March 15, 2008, (vi) cooperating with the entrance into one or more credit or other agreements satisfactory to Buyer in connection with
the Financing to the extent direct borrowings or debt incurrences by the Company or its Subsidiaries are contemplated by the Financing Documents; provided, however, that neither the Company nor any of its Subsidiaries shall be required
to enter into any such agreement to be effective prior to the Closing, (vii) cooperating with the consummation of the Financing and the direct borrowing or incurrence of all proceeds of the Financing by the Company immediately following the
Closing, (viii) taking all customary actions reasonably necessary to permit the prospective lenders involved in the Financing to evaluate the Company’s current assets, cash management and accounting systems, policies and procedures
relating thereto for the purpose of establishing collateral arrangements; provided, however, that none of the Sellers, the Company or any of its Subsidiaries shall be required to pay any commitment or other similar fee or incur any
other liability in connection with the Financing prior to the Closing; and provided further that all information and materials provided pursuant to this Section 6.6 or otherwise obtained by Buyer or any perspective lenders as
contemplated under this Section 6.6 shall be subject to the Confidentiality Agreement. The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with the Financing; provided, however, that such
logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or any of its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries. Buyer shall promptly, upon request by
the Company, reimburse the Company for all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred by the Company or any of its Subsidiaries in connection with the cooperation of the Company and its
Subsidiaries contemplated by this Section 6.6 and shall indemnify and hold harmless the Sellers, the Company, its Subsidiaries and their respective Representatives and Affiliates from and against any and all Losses suffered or incurred by any
of them in connection with the arrangement of the Financing and any information used in connection therewith, except with respect to any information provided by the Company or any of its Subsidiaries. 
 (b) The Company shall use commercially reasonable efforts to deliver to Buyer the form of the Payoff Letter at least two Business Days prior to the
Closing Date. 
 Section 6.7 Supplemental Disclosure. The Sellers and the Company may, from time to time but no later than two
days prior to the Closing, by notice in accordance with the terms of this Agreement, supplement, amend or create any Schedule in order to add information or correct previously supplied information; provided, however, that the Sellers
and the Company shall reasonably identify such supplemental information as such and shall reasonably indicate how such supplemental information revises previously supplied information. It is specifically agreed that such Schedules may be amended to
add immaterial, as well as material, items thereto. No such supplemental, amended or additional Schedule shall be deemed to cure any breach or satisfy any condition for purposes of Article VII. If the Closing occurs, however, then any such
supplement, amendment or addition will be effective to cure and correct for all other purposes any breach of any representation, warranty or covenant that would have existed if the Company or a Seller had not made such supplement, amendment or
addition, and all references to any Schedule hereto that is supplemented or amended as provided in this Section 6.7 shall for all purposes after the Closing be deemed to be a reference to such Schedule as so supplemented or 

  

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amended; provided, however, that any disclosure by the Company or the Sellers to Buyer following the date of this Agreement with respect to the
matters set forth on Schedule 6.7 shall not be effective to cure a breach, if any, of any representation, warranty or covenant in this Agreement that may exist with respect to such matters. 
 Section 6.8 Tax Matters. 
 (a)
Federal Income Tax Treatment. The Sellers and Buyer hereby agree that if Buyer is treated as a single entity for U.S. federal income tax purposes, the purchase and sale of Partnership Interests under this Agreement will be treated for U.S.
federal income tax purposes in accordance with IRS Revenue Ruling 99-6, 1999-1 C.B. 432. If Buyer is treated as two separate entities for U.S. federal income tax purposes, the Sellers shall cooperate with Buyer in making a Section 754 election
with respect to the Company. 
 (b) Tax Periods Ending on or Before the Closing Date. Buyer shall, at its own expense, prepare or
cause to be prepared and timely file or cause to be timely filed all Tax Returns of the Company and its Subsidiaries other than income Tax Returns of the Company for all periods ending on or prior to the Closing Date (“Pre-Closing
Periods”) that have not yet been filed and that are not required to be filed on or before the Closing Date, and, subject to the following two sentences, Buyer shall pay all Taxes attributable to such Tax Returns. With respect to each Tax
Return described in the preceding sentence, the Sellers shall pay Buyer (in accordance with their respective Pro Rata Percentages), no later than five Business Days after a written request for payment is made by Buyer (along with an explanation of
the amount requested), an amount equal to all Taxes attributable to such Tax Return (other than any such Taxes accrued as a liability in the Estimated Net Working Capital). Within ten Business Days after the Final Net Working Capital has been
determined, the difference between the amount of any such Taxes accrued as liability in the Final Net Working Capital and the amount of any such Taxes accrued as a liability in the Estimated Net Working Capital, if any, shall be paid by Buyer to the
Sellers (if the difference is positive) or by the Sellers to Buyer (if the difference is negative). The Sellers shall, at their own expense, prepare or cause to be prepared and timely file or cause to be timely filed all income Tax Returns of the
Company for all Pre-Closing Periods, and shall timely pay all Taxes attributable to all such income Tax Returns. Each income Tax Return described in the preceding sentence shall be prepared in a manner consistent with the Purchase Price Allocation
(as defined below). 
 (c) Tax Periods Beginning Before and Ending After the Closing Date. Buyer shall, at its own expense, prepare or
cause to be prepared and timely file or cause timely to be filed any Tax Returns of the Company and any Subsidiary for Tax periods that begin on or before the Closing Date and end after the Closing Date (each, a “Straddle Period”),
and, subject to the following three sentences, Buyer shall pay all Taxes attributable to such Tax Returns. For purposes of this Article VI, any Tax liability with respect to any Straddle Period shall be apportioned between the pre-Closing and
post-Closing portions of the Straddle Period based on an interim closing of the books as of the end of the Closing Date (i.e., the Tax liability apportioned to the pre-Closing and post-Closing portions, respectively, shall equal the hypothetical Tax
liability that would have existed with respect to such portion if the two portions were separate taxable periods), except for ad valorem property taxes, which shall be prorated on a daily basis. With respect to each Tax Return described in
the first sentence of this Section 

  

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6.8(c), the Sellers shall pay Buyer (in accordance with their respective Pro Rata Percentages), no later than five Business Days after a written request for
payment is made by Buyer (along with an explanation of the amount requested), an amount equal to all Taxes attributable to the pre-Closing portion of such Tax Return (other than any such Taxes accrued as a liability in the Estimated Net Working
Capital). Within ten Business Days after the Final Net Working Capital has been determined, the difference between the amount of any such Taxes accrued as liability in the Final Net Working Capital and the amount of any such Taxes accrued as a
liability accrued in the Estimated Net Working Capital, if any, shall be paid by Buyer to Sellers (if the difference is positive) or by the Sellers to Buyer (if the difference is negative). 
 (d) Disputes. If the Sellers dispute any portion of any payment requested by Buyer pursuant to Section 6.8(b) or 6.8(c), Buyer and the
Sellers shall negotiate in good faith and use commercially reasonable efforts to resolve the amount in dispute. If such Parties are unable to resolve any dispute within 20 days after Buyer’s request for payment is made, such dispute shall be
resolved by the Independent Accountant, which shall resolve any issue in dispute as promptly as practicable. If the Independent Accountant is unable to make a determination with respect to any disputed issue prior to the due date (including any
extensions) for the filing of the Tax Return in question, Buyer shall file, or shall cause to be filed, such Tax Return in accordance with Buyer’s position with respect to disputed item(s). The Sellers shall pay the portion of any requested
payment not in dispute within five Business Days after Buyer’s written request for such payment is made. Upon the Independent Accountant’s delivery of its determination to Buyer and the Sellers, appropriate adjustments shall be made to the
applicable Tax Return, if necessary, in order to reflect the Independent Accountant’s determination. If Buyer prevails in such determination in whole or in part, the Sellers shall, within five Business Days of such determination, pay the Buyer
an amount equal to the additional Taxes attributable to the disputed item(s). The determination by the Independent Accountant shall be final, conclusive and binding on the Parties. The fees and expenses of the Independent Accountant shall be shared
equally by Buyer, on one hand, and the Sellers, on the other hand. 
 (e) Certain Taxes. The Sellers, collectively, and Buyer shall
each pay half of all transfer, documentary, sales, use, stamp, registration, real estate transfer and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement when due. The applicable Party will, at
its own expense, file all necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration, real estate transfer and other Taxes and fees, and, if required by applicable Law, the other
parties will, and will cause their Affiliates to, join in the execution of any such Tax Returns and other documentation. 
 (f)
Refunds. Any Tax refunds that are received (in cash or as an offset against other current Tax liabilities) by Buyer, the Company or any Subsidiary (including any interest paid or credited with respect thereto by the applicable taxing
authority) that relate to Pre-Closing Periods shall be for the account of the Sellers, and Buyer shall pay over to each Seller such Seller’s Pro Rata Percentage of any such refund or amount of any such credit within 15 days after receipt. Any
refunds relating to Straddle Periods shall be equitably apportioned between Buyer and the Sellers in a manner consistent with the principles underlying the allocation methodologies in Section 6.8(c). For the avoidance of doubt, neither Buyer
nor any Subsidiary shall be obligated to pursue any refund. 
  

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 (g) Amendments to Returns; Refund Claims. Following the Closing, Buyer shall not file an amended
Tax Return for the Company or any Subsidiary for a Pre-Closing Period or a Straddle Period without the Sellers’ consent (not to be unreasonably withheld or delayed). 
 (h) Allocation of Purchase Price. Buyer, the Company, the Sellers and each of their Affiliates agree that the Purchase Price and the liabilities of the Company (plus other relevant items) will be allocated
among the assets of the Company for all income Tax purposes in accordance with Section 1060 or Section 755 of the Code (as applicable) and the Treasury Regulations thereunder. No later than 60 days after the Closing Date, Buyer shall
deliver to the Sellers a preliminary allocation of the Purchase Price and the liabilities of the Company (and all other relevant items) to the assets of the Company as of the Closing Date (the “Draft Purchase Price Allocation”),
together with detailed supporting calculations and such other materials with respect thereto as the Sellers shall reasonably request. If the Sellers do not object to the Draft Purchase Price Allocation within 30 days of receipt thereof, the Draft
Purchase Price Allocation shall become final and binding on the Parties and shall be referred to herein as the “Purchase Price Allocation”. Any objection to the Draft Purchase Price Allocation shall be made in writing to Buyer and
shall set forth the basis for such objection in reasonable detail. If Sellers object to the Draft Purchase Price Allocation, then Buyer and the Sellers shall negotiate in good faith to resolve promptly any such objection. If Buyer and the Sellers do
not obtain a final resolution within 30 days after Buyer has received the statement of objections, the Independent Accountant shall resolve any objections. The resolution of the disputed issue(s) by the Independent Accountant shall be set forth in
writing and shall be conclusive and binding upon the Parties. The fees and expenses of the Independent Accountant that are incurred in connection with resolving objections under this Section 6.8(h) shall be borne 50% by Buyer and 50% by the
Sellers (in accordance with their respective Pro-Rata Percentages). The Purchase Price Allocation, as finally determined hereunder, shall be binding on all Parties for all purposes, and Buyer and the Sellers agree to prepare and file all Tax Returns
(including amended returns and claims for refund) and information reports on a basis consistent with the Purchase Price Allocation, unless otherwise required by an applicable law. The Parties agree to cooperate in good faith to update the Purchase
Price Allocation to account for any adjustments to the Purchase Price that may occur after the Closing Date. 
 Section 6.9 Tax
Indemnity by the Sellers. 
 (a) Each Seller agrees, severally in accordance with its Pro Rata Percentage, and not jointly, to indemnify,
defend and hold harmless Buyer and its respective Affiliates from and against any and all liability including all reasonable expenses related thereto for (i) Pre-Closing Taxes, (ii) any breach of any representation or warranty in clauses
(ii), (iv), (vi), (vii), (x), (xi), (xii), (xiii), (xiv), (xvi) and (xvii) of Section 3.14 of this Agreement (which representations and warranties shall be read for this purpose as having been made at and as of the Closing and without
giving effect to any materiality qualifiers), (iii) the non-fulfillment by any Seller of any covenant with respect to Taxes and (iv) any failure of the interest payable with respect to any of the Company Industrial Revenue Bonds (including
any interest payable with respect to any post-Closing periods (“Post Closing Interest”)) to qualify as tax-exempt interest pursuant to Section 103 of the Code, except for any failure with respect to any Post Closing Interest
that results from any act or failure to act by Buyer, the Company or their Affiliates after the Closing. 
  

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 (b) A claim for indemnification under Section 6.9(a) may be asserted at any time until 90 days after
expiration of the applicable statute of limitations. 
 (c) Any indemnification payment made pursuant to this Section 6.9 shall be
treated by all Parties as an adjustment to the Purchase Price for all Tax purposes. Any indemnification claim related to Losses incurred by SPRC shall be reduced by any net tax savings actually realized by SPRC in the tax period in which the
indemnification claim arises. 
 (d) (i) Upon receipt by Buyer or any Subsidiary of a written notice of any pending or threatened Tax audits,
examinations, assessments or claims that could give rise to a claim for indemnity under Section 6.9(a) hereof (an “Indemnifiable Tax Liability”), Buyer shall give notice thereof to the Sellers (the “Tax Claim
Notice”); provided that a failure to provide a Tax Claim Notice shall not affect a party’s rights to indemnification under Section 6.9(a) except to the extent that the indemnifying party is actually and materially
prejudiced thereby; (ii) subject to clause (iii) below, the Sellers may elect to control, through their representatives, and at their expense, the compromise or contest, either administratively or in the courts, of any Indemnifiable Tax
Liability. If the Sellers elect to so represent the interests of the Company, any Subsidiary or Buyer, they shall within 30 days of delivery of any Tax Claim Notice (or reasonably sooner, if the nature of the Indemnifiable Tax Liability so requires)
notify Buyer of their intent to do so, and Buyer shall cooperate, at the sole expense of the Sellers, in the defense against, or compromise or settlement of, any claim in any such proceeding. In that event, the Sellers shall reasonably and in good
faith consult with Buyer with respect to each aspect of the defense against, or compromise or settlement of, any such Indemnifiable Tax Liability. Without limiting the generality of the foregoing, Buyer shall be permitted, at its expense, to be
represented at each conference, hearing or meeting with representatives of the pertinent taxing authority (and shall be notified reasonably in advance thereof). The Sellers shall promptly notify Buyer in writing after they settle, compromise or
abandon any claim related to Indemnifiable Tax Liability; provided that, with respect to any such claim that could adversely affect a Subsidiary or Buyer or any of their respective Affiliates with respect to any period other than a
Pre-Closing Period, the Sellers shall not settle, compromise or abandon any such claim without obtaining the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. If the Sellers elect not to represent the
interests of the Company, any Subsidiary, or Buyer, Buyer may pay, compromise or contest such Indemnifiable Tax Liability in any reasonable manner it deems appropriate (in its sole discretion), and the Sellers shall remain fully liable for such
Indemnifiable Tax Liability; and (iii) Buyer shall control, at its own expense, any tax proceeding for any Straddle Period of any Subsidiary; provided, however, that (A) the Sellers shall be entitled to participate in such
tax proceeding, at the expense of the Sellers and (B) Buyer shall not settle, compromise or abandon any such tax proceeding without obtaining the prior written consent of the Sellers, which consent shall not be unreasonably withheld or delayed.

 (e) Notwithstanding anything to the contrary in this Agreement, any indemnification with respect to any Tax matters shall be governed
exclusively by this Section 6.9. 
 (f) The provisions of this Section 6.9 set forth the exclusive rights and remedies of Buyer to
seek or obtain damages or any other remedy or relief whatsoever from the Sellers with respect to Tax matters arising under or in connection with this Section 6.9 and the Tax matters contemplated hereby. 
  

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 Section 6.10 Preservation of Records. Except as otherwise provided in this Agreement, Buyer agrees
that it shall, and it shall cause the Company and its Subsidiaries to, (a) preserve and keep the records (including all Tax and accounting records) of the Company and its Subsidiaries for a period of seven years from the Closing, or for any
longer periods as may be required by any Governmental Entity or ongoing litigation, and (b) make such records available to the Sellers as may be reasonably requested by the Sellers. If Buyer, the Company or its Subsidiaries wish to destroy such
records after the time specified above, Buyer shall first give 60 days’ prior written notice to the Sellers and the Sellers shall have the right at their respective option and expense, upon prior written notice given to Buyer within that 60-day
period, to take possession of the records within 90 days after the date of such Seller’s notice to Buyer. 
 Section 6.11
Buyer’s Efforts. 
 (a) Buyer will promptly notify the Company and the Sellers of any proposal by any of the institutions party to
the Financing Documents to withdraw, terminate or make a material change in the amount or terms of such financing commitment that could reasonably be expected to adversely affect the ability of Buyer to consummate the financing contemplated by such
Financing Documents in accordance with their terms. In addition, upon the Company’s or the Sellers’ reasonable request, Buyer will advise and update the Company and the Sellers, in a level of detail reasonably satisfactory to the Company
and the Sellers, with respect to the status, proposed closing date and material terms of the Financing Documents. Buyer will not consent to any amendment, modification or early termination of any Financing Documents that could reasonably be expected
to delay or adversely affect the ability of Buyer to consummate the transactions contemplated by this Agreement. Notwithstanding anything in this Agreement, Buyer shall be permitted to substitute alternative financing for the financing contemplated
by the Financing Documents from alternative sources; provided, however, that such alternative financing is in an amount that will enable Buyer to consummate the transactions contemplated by this Agreement and does not adversely amend
or expand the conditions of the Financing as they are set forth in the Financing Documents such that any conditions would be less likely to be satisfied by the Closing Date. 
 (b) Buyer will, and will cause its Affiliates to, use commercially reasonable efforts to (i) maintain the effectiveness of the Financing Documents
in accordance with their terms, (ii) enter into definitive documentation with respect to the Financing Documents, (iii) satisfy all funding conditions to the Financing Documents set forth in the definitive documentation with respect to the
financing contemplated by the Financing Documents and (iv) consummate the financing contemplated by the Financing Documents (including by extension of the Financing Documents on substantially equivalent or better (for Buyer) terms or, if the
Financing Documents expire, obtaining alternative financing, provided, however, that such alternative financing is in an amount that will enable Buyer to consummate the transactions contemplated by this Agreement and does not adversely
amend or expand the conditions of the Financing as they are set forth in the Financing Documents such that any conditions would be less likely to be satisfied by the Closing Date. 
 (c) In connection with its obligations under this Section 6.11, one or more of the Financing Documents may be superseded after the date of this
Agreement by new financing documents (the “New Financing Documents”) which replace existing Financing Documents; 

  

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provided, however, that such alternative financing is in an amount that will enable Buyer to consummate the transactions contemplated by this
Agreement and does not adversely amend or expand the conditions of the Financing as they are set forth in the Financing Documents such that any conditions would be less likely to be satisfied by the Closing Date. In such event, the term
“Financing Documents” as used herein shall be deemed to include the Financing Documents that are not so superseded at the time in question and the New Financing Documents to the extent then in effect. 
 (d) Buyer acknowledges and agrees that this Agreement and the transactions hereunder are not contingent on Buyer’s ability to obtain the financing
set forth in the Financing Documents or any specific amount or terms with respect to such financing. 
 Section 6.12 Employees.

 (a) Effective as of the Closing Date and for a period of one year following the Closing Date, Buyer shall provide to the Continued
Employees for so long as such employees remain employees of the Company or a Subsidiary during such one year period, base salaries no less than their base salaries as in effect on the Closing Date and bonus opportunities that, together with base
salaries, give the Continued Employees an opportunity to earn an aggregate amount of base salary and bonus that is substantially comparable to the aggregate base salaries and bonus opportunities of the Continued Employees as in effect on the Closing
Date and shall make available to such Continued Employee benefits which are substantially comparable to the benefits made available to similarly situated employees of Buyer, including participation in the employee benefit plans set forth on
Exhibit 6.12(a) or successor plans that provide for benefits substantially comparable to such benefit plans. Nothing in this Section 6.12 shall limit the right of the Company or its Subsidiaries to terminate the employment of any
Continued Employee at any time. 
 (b) If Buyer does not continue the Company Benefit Plans, (i) Buyer will cause Buyer’s benefit
plans applicable to the Continued Employees to recognize all previous service with the Company or its Subsidiaries for the purpose of their rights to vacation and other paid time off and for determining eligibility to participate and vesting
(provided that service with the Company or its Subsidiaries shall not be counted for purposes of benefit accrual under any plan of Buyer); (ii) Buyer, for the plan year which includes the Closing Date, shall cause its group health plan to
recognize all deductibles and coinsurance payments paid for such plan year by the Continued Employees prior to the Closing Date and to waive any preexisting condition limitations for the Continued Employees; and (iii) Buyer under Buyer’s
vacation policy will permit each Continued Employee to continue to have no less annual paid vacation time than he or she had under the Company’s vacation policy as in effect on the Closing Date. 
 (c) If Buyer does not continue the Company Benefit Plans related to paid time off after the Closing Date, Buyer shall credit each Continued Employee with
such number of unused vacation days and other paid time off accrued by such employee with the Company prior to the Closing Date in accordance with the Company’s personnel policies applicable to such employees on the Closing Date. 
  

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 (d) Buyer shall, or shall cause the Company to, honor, in accordance with their terms, all obligations of
the Company and each Subsidiary under (i) the Change in Control Agreements, (ii) the Retention Letters, (iii) except as provided below, the Company’s retiree medical plan for non-union employees (as shown on Schedule
3.19(a)) (the “Retiree Medical Plan”), (iv) the Severance Pay Plan (which shall not be amended or terminated prior to the first anniversary of the Closing Date) and (v) except as set forth in Section 6.12(e), the
SERP; provided, however, that neither Buyer nor the Company shall be liable for any obligations of the Company or its Subsidiaries in excess of $524,000 under the Retention Letters. Buyer agrees to cause the Company to not amend or
terminate the Retiree Medical Plan prior to the first anniversary of the Closing Date, and Buyer agrees that no amendment that terminates participation under, or termination of, the Retiree Medical Plan shall be effective unless Buyer gives affected
participants in the Retiree Medical Plan one year’s advance written notice of such amendment or termination. Buyer further agrees that no amendment or termination will terminate coverage under the Retiree Medical Plan for any “Eligible
Individual” prior to the date such “Eligible Individual” is eligible for coverage under Medicare. For purposes hereof, an “Eligible Individual” is an individual who (A) on the date such amendment or termination is
effective, is a retiree then participating in the Retiree Medical Plan or (B) is an active employee whose employment with the Company and its Subsidiaries commenced prior to January 1, 2002 and who, on the date of the employee’s
retirement from the Company and its Subsidiaries, is eligible for coverage under the Retiree Medical Plan under the eligibility requirements for such coverage as in effect on the date hereof. For the avoidance of doubt, the Retiree Medical Plan may
be amended (consistent with the timing and notice requirements set forth above) to terminate coverage for any participant at or after the time the participant becomes eligible for coverage under Medicare. Such Retiree Medical Plan coverage for
participants not eligible for coverage under Medicare shall be substantially similar to comparable coverage for active employees of the Company, as in effect from time to time, subject to the cost sharing caps as in effect on the date hereof. The
Sellers shall be responsible for, in accordance with their terms, all obligations of the Company and each Subsidiary under the Retention Letters in excess of $524,000, and shall pay such amounts when due or, if paid by the Company, shall reimburse
the Company immediately upon demand therefor. 
 (e) The Sellers shall be responsible for, in accordance with their terms, all obligations of
the Company under the agreements set forth on Schedule 6.12(e) (the “Retiree SERP Agreements”), and shall pay such amounts when due thereunder (as amended), or, if paid by the Company, shall reimburse the Company immediately
upon demand therefor. Notwithstanding anything to the contrary contained herein (including Section 6.1), the Sellers shall be entitled to negotiate with and enter into such arrangements with the beneficiaries of the Retiree SERP Agreements as
the Sellers deem appropriate relating to the payment or termination of the obligation thereunder. Buyer shall cooperate with the Sellers to the extent reasonably necessary to implement any such arrangement at the expense of the Sellers. From and
after the Closing, the Company shall not amend, change or otherwise alter the Retiree SERP Agreements without the prior written consent of the Sellers. 
 (f) Buyer shall, or shall cause the Company to, honor, in accordance with its terms, all obligations of the Company and each Subsidiary under the Company Collective Bargaining Agreement following the Closing.

  

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 Section 6.13 Distributions. Notwithstanding anything herein to the contrary, the Parties
agree that the Company shall have the right, at or prior to the Closing, to distribute all of the cash and cash equivalents in excess of an amount equal to $2,500,000 (collectively, “Distributions”) held by the Company or its
Subsidiaries to the Sellers. 
 Section 6.14 Further Assurances. After the Closing, each of the Parties hereto shall use all
commercially reasonable efforts to take, or cause to be taken, all appropriate action, do or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be
required to carry out the provisions of this Agreement and consummate and make effective the transactions contemplated by this Agreement. 
 Section 6.15 Confidentiality. After the Closing for a period of two years, the Sellers shall cause each of their respective officers, directors, agents and representatives to maintain the confidentiality of all proprietary
information of the Company and shall take reasonable measures to prevent its use for any purpose without the prior written consent of Buyer. Notwithstanding the foregoing, the provisions of this Section 6.15 shall not apply to any information
that (a) is or becomes generally available to the public other than as a result of a disclosure by the Sellers, (b) was or becomes available to the Sellers on a non-confidential basis from a source other than the Company, provided
that such source is not bound by an applicable confidentiality agreement with, or other obligation of secrecy to, the Company, Buyer or another party or (c) is independently developed by the Sellers without violating any obligations hereunder.

 Section 6.16 Altamaha Matter. 
 (a) Effective immediately upon the Closing, the Company hereby distributes and assigns to the Sellers in accordance with their respective percentage interests in the Company all of the Company’s right, title and
interest in and to any and all claims, damages, losses, costs, expenses, penalties, fines and judgments that the Company has asserted, or which it may hereafter assert or be entitled to assert, against the Altamaha Group that arise out of, relate
to, or are associated with the provision of electrical power or energy, including rates and terms, to the Company by the Altamaha Group prior to the Closing under the Altamaha Agreement (the “Altamaha Claim”). 
 (b) Effective immediately upon the Closing, the Company irrevocably (i) appoints the Sellers as its true and lawful attorneys in fact and authorizes
the Sellers to act in the Company’s stead, with full authority to demand, sue for, compromise and recover all such amounts as now are, or may hereafter become, due and payable for or on account of the Altamaha Claim herein assigned, and
(ii) grants unto the Sellers full authority to do all things necessary to enforce the Altamaha Claim and the Company’s rights thereunder pursuant to this Section 6.16; provided, that with respect to each of clauses (i) and
(ii) above, the Sellers shall not have authority to take any action that increases the rate and materially and adversely affects the terms on which electricity is provided to the Company. The Company agrees to use commercially reasonable
efforts to assist the Sellers in the prosecution of the Altamaha Claim (and any collection efforts relating thereto) for the benefit of the Sellers and to cooperate with the Sellers with respect to any such prosecution (or collection efforts),
including, to the extent reasonably necessary for the prosecution of the Altamaha Claim, commercially reasonable and requested with sufficient 

  

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advance notice so as not to disrupt the operations of the Company, making available witnesses, pertinent records, materials and information in the
Company’s possession or under the Company’s control relating thereto. The Sellers shall reimburse the Company for all costs incurred by the Company in providing such assistance. The Sellers shall have the right, in their sole discretion,
to control all aspects of the prosecution of the Altamaha Claim (and collection efforts relating thereto), including the determination of any actions to be taken with respect thereto (legal or otherwise) and the preparation, filing or initiation of
any complaint, investigation, action or proceeding; provided that the Sellers shall not have authority to take any action that increases the rate and materially and adversely affects the terms on which electricity is provided to the Company.
The Company agrees that the power granted by this Section 6.16 is coupled with an interest, irrevocable and discretionary in nature and that the Sellers may exercise or decline to exercise such powers at the Sellers’ sole option;
provided that Sellers take no action that increases the rate and materially and adversely affects the terms on which electricity is provided to the Company. The Company agrees to take such further action, at the Sellers’ expense, as
Sellers may request on a commercially reasonable basis, is necessary to effect the assignment of the Altamaha Claim and any payments or distributions on account of the Altamaha Claim to the Sellers, including execution of transfer powers, assignment
documents, resolutions and consents in form acceptable to the Company, acting reasonably. 
 (c) The Company shall give prompt notice of its
receipt of any funds from any third party in connection with the Altamaha Claim (which notice shall include at a minimum the amount of the funds received, the date of the Company’s receipt of such funds, the identity of the party making such
payment, and, to the extent known by the Company, the reason such funds were paid to the Company). All such amounts shall be paid to the Sellers not later than ten days following receipt thereof by the Company, by wire transfer of immediately
available funds to the account or accounts designated to Buyer in writing by the Sellers. 
 (d) Sellers shall take no action in connection
with the exercise of their rights under this Section 6.16 that increases the rate or materially and adversely affects the terms on which electricity is provided to the Company. 
 Section 6.17 Partnership Consents and Waivers. 
 (a) Each of the Sellers hereby waives any rights and objections it may have under Section 7.2 of the Partnership Agreement (or any other provisions thereof) as a result of the transactions contemplated by this
Agreement. 
 (b) At or prior to the Closing, the Sellers will execute a unanimous written consent as the sole partners of the Company that
(i) admits Buyer as a partner of the Company entitled to all the rights of a partner effective as of the Closing and (ii) causes such Partners’ resignations as partners effective as of the Closing. 
 Section 6.18 Non-Solicitation. The Sellers shall immediately cease, and cause its respective Representatives to cease, any existing
solicitation, encouragement, discussion or negotiation with any persons conducted heretofore with respect to any acquisition of the Business, except with respect to Buyer. 
  

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 Section 6.19 Brant Guarantee. Concurrently with the execution of this Agreement, Buyer will
cause Peter M. Brant to deliver the Brant Guarantee to guarantee the obligations of Buyer under Section 8.3. 
 Section 6.20
Industrial Revenue Bond Payoff Procedure. The Sellers shall cause the Company to make all arrangements (other than the deposit of funds pursuant to Section 2.5(c)) required by the Payoff Letter for the cash collateralization of all
letters of credit (including all Tranche B Letters of Credit (as defined in the Credit Agreement)) outstanding under the Credit Agreement at Closing in an account (the “Cash Collateral Account”) designated by the administrative
agent under the Credit Agreement and set forth in the Payoff Letter. Such amount required to be deposited by Buyer in the Cash Collateral Account shall be not less than the amount sufficient to pay all of the principal outstanding and interest
accrued as of the Closing Date with respect to the Company Industrial Revenue Bonds plus an amount sufficient to pay interest at the maximum interest rate provided for in the Company Industrial Revenue Bonds from the Closing Date through the
date that the respective series of the Company Industrial Revenue Bonds are redeemed, and all such arrangements shall otherwise be reasonably satisfactory to Buyer. Prior to Closing, the Sellers will cause the Company to take all actions (other than
the deposit of funds pursuant to Section 2.5(c)) reasonably necessary or appropriate and that may be taken prior to delivery of the notices of redemption described in Section 2.5(c) in furtherance of the redemption of the Company
Industrial Revenue Bonds at the earliest possible dates after the Closing. Buyer will cause the Company to take after Closing, all actions (other than the deposit of funds pursuant to Section 2.5(c)) necessary or appropriate to cause the
redemption of the Company Industrial Revenue Bonds at the earliest possible dates after the Closing, including, upon Closing, the delivery to the respective trustees under the indentures governing such bonds the notices of redemption described in
Section 2.4(d). The Sellers agree to take such additional actions and execute such additional instruments as are necessary, or as Buyer reasonably requests, to assist in the payment in full of all indebtedness (other than the Credit Agreement,
which is covered by Section 2.4(c)) listed on Schedule 2.5(c) (the “Repaid Indebtedness”) and the termination of all obligations of the Company thereunder (other than indemnity obligations that survive termination of the
agreements). Each Seller agrees, severally in accordance with its Pro Rata Percentage, and not jointly, to immediately reimburse Buyer upon demand in immediately payable funds for any and all amounts that are paid by Buyer at any time (other than
pursuant to Section 2.5(c)) or by the Company after the Closing Date (other than with amounts on deposit in the Cash Collateral Account) in connection with prepayment of the Repaid Indebtedness and all customary and reasonable out-of-pocket
expenses incurred by Buyer or the Company in connection with such repayment, including any applicable prepayment premiums and penalties, but without duplication of indemnification pursuant to Section 6.9 or any reduction in the Purchase Price
pursuant to Section 2.2(b). The Company shall (and Buyer shall cause the Company to) direct the administrative agent under the Credit Agreement, upon the satisfaction of all conditions to release of funds in the Cash Collateral Account as set
forth in the Payoff Letter, to pay all excess amounts in the Cash Collateral Account directly to the Sellers ratably in accordance with their Pro Rata Percentages. 
 Section 6.21 Time of Performance of Covenants. The obligation to perform any and all covenants and agreements of the parties under this Agreement shall be deemed to have begun on the date of this Agreement,
except for such covenants and agreements that speak as to a specific date that is not the date of this Agreement which shall begin on such other specific date. 
  

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 ARTICLE VII 
 CONDITIONS TO OBLIGATIONS OF THE PARTIES 
 Section 7.1 Conditions to Each Party’s
Obligations. The respective obligation of each Party to consummate the transactions contemplated by this Agreement is subject to the satisfaction (or written waiver by such Party) at or prior to the Closing of the following conditions:

 (a) Injunction. There will be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a
Governmental Entity of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as provided in this Agreement, no proceeding or lawsuit will have been commenced by any Governmental Entity for
the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice will have been received from any Governmental Entity indicating an intent to restrain, prevent, materially delay or restructure the
transactions contemplated by this Agreement; and 
 (b) Consents. All consents, authorizations, waivers or approvals of any
Governmental Entity as may be required to be obtained in connection with the execution, delivery or performance of this Agreement, the failure to obtain of which would prevent the consummation of the transaction contemplated hereby or have a
Material Adverse Effect, shall have been obtained. 
 Section 7.2 Conditions to Obligations of the Sellers and the Company. The
obligations of the Sellers and the Company to consummate the transactions contemplated by this Agreement are further subject to the satisfaction (or written waiver by all of the Sellers) at or prior to the Closing of the following conditions:

 (a) Representations and Warranties. The representations and warranties of Buyer contained herein shall be true and correct in all
material respects as of the date of this Agreement and as of the Closing as if made at and as of such time (other than representations and warranties that speak as of a specific date prior to the Closing Date which only need be true and correct in
all material respects as of such earlier date) ignoring for purposes of this Section 7.3(a) the reference to “as of the date of this Agreement” in the introductory paragraph to Article V; 
 (b) Performance of Obligations. Buyer shall have performed in all material respects its obligations under this Agreement required to be performed
by it at or prior to the Closing pursuant to the terms hereof; and 
 (c) Buyer Officer’s Certificate. An authorized officer of
Buyer shall have executed and delivered to the Company a certificate as to compliance with the conditions set forth in Sections 7.2(a) and 7.2(b) hereof. 
 Section 7.3 Conditions to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement are further subject to the satisfaction (or written waiver by it) at
or prior to the Closing of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of the
Company contained in Article III hereof and the representations and warranties of Sellers contained in Article IV hereof shall be true and correct as of the date of this Agreement and as of the Closing as if made at and as of the Closing (except for
representations and warranties that speak as of a specific date prior to the Closing Date that need only be true and correct as of such earlier date) ignoring for purposes of this Section 7.3(a) the reference to “as of the date of this
Agreement” in the introductory paragraph to Article III and Article IV; provided, however, that this condition shall be deemed satisfied unless any and all inaccuracies in such representations and warranties, in the aggregate,
result in a Material Adverse Effect (ignoring for the purposes of this Section any qualifications by Material Adverse Effect contained in such representations or warranties); 
  

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 (b) Performance of Obligations. The Company and the Sellers shall have performed in all material
respects their respective obligations under this Agreement required to be performed by them at or prior to the Closing pursuant to the terms hereof; 
 (c) Company Officer’s Certificate. An authorized officer of the Company shall have executed and delivered to Buyer a certificate as to the Company’s compliance with the conditions set forth in
Sections 7.3(a) and 7.3(b) hereof; 
 (d) Sellers’ Certificate. An authorized officer of each Seller shall have executed and
delivered to Buyer a certificate as to such Seller’s compliance with the conditions set forth in Sections 7.3(a) and 7.3(b) hereof; 
 (e) Delivery of Payoff Letters/Redemption Notices. An authorized officer of the Company shall deliver to Buyer the Payoff Letter and the redemption notices described in Section 2.4(d); 
 (f) Payment of Certain Fees. The Sellers, collectively, shall pay at the Closing (including by directing Buyer to pay such fees directly out of
the Purchase Price) any and all fees described in Section 3.21 payable by the Company or any Subsidiary to the parties set forth on Schedule 3.21; and 
 (g) Executive Plans and Agreements. Prior to the Closing Date, the Unit Purchase Plan shall be terminated in accordance with any applicable requirements of Section 409A of the Code. 
 ARTICLE VIII 
 TERMINATION

 Section 8.1 Termination. This Agreement may be terminated at any time at or prior to the Closing (the “Termination
Date”): 
 (a) in writing, by mutual consent of Buyer, on one hand, and the Company and all of the Sellers, on the other hand;

  

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 (b) by written notice from Buyer to the Company and the Sellers if any of the conditions set forth in
Sections 7.1 and 7.3 hereof shall have become incapable of fulfillment and shall not have been waived in writing by Buyer, so long as such failure to satisfy the conditions is not the result of a breach by Buyer of this Agreement; 
 (c) by written notice from all of the Sellers to Buyer if any of the conditions set forth in Sections 7.1 and 7.2 hereof shall have become incapable of
fulfillment and shall not have been waived in writing by all of the Sellers, so long as such failure to satisfy the conditions is not the result of a breach by the Sellers or the Company of this Agreement; or 
 (d) by written notice by Buyer or all of the Sellers if the Closing has not occurred on or prior to April 30, 2008 (the “Outside
Date”), unless the failure to occur by such date shall be due to the failure of the Party seeking to terminate this Agreement to perform or observe the covenants or agreements of such Party set forth in this Agreement; provided,
however, that either Buyer or the Sellers shall have the option to extend the Outside Date on one or more occasions for an additional period of time (but not beyond October 31, 2008) if all of the other conditions to the consummation of
the transactions contemplated by this Agreement are satisfied or capable of being satisfied, and the sole reason that such transactions have not been consummated by such date is that one or more of the conditions set forth in Section 7.1(a) or
Section 7.1(b) have not been satisfied; provided, further however, that any such extension at the option of either Buyer or the Sellers under this clause shall not extend beyond the date on which the commitments under the
Financing Documents terminate, it being agreed that if a proposed extension would extend beyond the then existing termination date under the Financing Commitments, Buyer agrees in good faith to extend the date on which the commitments terminate
under the Financing Documents for as long as possible to provide time for the satisfaction of the conditions set forth in Section 7.1 so long as (i) the terms of the commitments under the Financing Documents relating to the debt financing
(the “Debt Financing Commitments”) are not materially less favorable to Buyer than the Debt Financing Commitments attached as Exhibit 5.5, and (ii) Buyer is not required to pay a “ticking fee” in excess of
0.25% of the aggregate amount of the Debt Financing Commitments, unless the Sellers in their sole discretion agree to pay the portion of such “ticking fee” between 0.25% and 0.50% and one-half of such “ticking fee” above 0.50%,
in which case Buyer shall be required to pay any requested “ticking fee” with the Sellers reimbursing Buyer for the amount of the “ticking fee” between 0.25% and 0.50% and one-half of any “ticking fee” above 0.50%.

 Section 8.2 Procedure and Effect of Termination. In the event of the termination of this Agreement and the abandonment of the
transactions contemplated hereby pursuant to Section 8.1 hereof, written notice thereof shall forthwith be given by the Party so terminating to the other Parties, and this Agreement shall terminate and the transactions contemplated hereby shall
be abandoned without further action by any Party. If this Agreement is terminated pursuant to Section 8.1 hereof: 
 (a) each Party shall
redeliver all documents, work papers and other materials of the other Party relating to the transactions contemplated hereby, whether obtained before or after the execution hereof, to the Party furnishing the same or, upon prior written notice to
such Party, shall destroy all such documents, work papers and other materials and deliver notice to the Party seeking destruction of such documents that such destruction has been completed, and all confidential information received by any Party with
respect to the other Parties shall be treated in accordance with the Confidentiality Agreement and Section 6.2(b); 
  

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 (b) all filings, applications and other submissions made pursuant hereto shall, at the option of the
Company, and to the extent practicable, be withdrawn from the agency or other Person to which made; and 
 (c) there shall be no liability or
obligation hereunder on the part of the Company, any Seller, Buyer or any of their respective directors, officers, employees, Affiliates, agents or representatives, except that the obligations provided for in this Section 8.2 and
Section 6.5 (Public Announcements), Section 8.3 (Termination Fee), Section 10.1 (Fees and Expenses), Section 10.2 (Notices), Section 10.3 (Severability), and Section 10.8 (Governing Law; Venue) hereof and in the
Confidentiality Agreement shall survive any such termination. 
 Section 8.3 Termination Fee. 
 (a) If this Agreement is terminated by the Sellers (i) pursuant to Section 8.1(c) as a result of the failure of any of the conditions set forth
in Section 7.2 and provided that all of the conditions to the Closing set forth in Section 7.1 and Section 7.3 have been satisfied (other than those which by their terms are not capable of being satisfied until the Closing Date),
(ii) pursuant to Section 8.1(d) and all of the conditions to the Closing set forth in Section 7.1 and Section 7.3 have been satisfied (other than those which by their terms are not capable of being satisfied until the Closing
Date) or (iii) otherwise as a result of Buyer’s breach of its obligation to effect the Closing as required under Section 2.3 (including because of the failure to receive proceeds from the Financing or to have received any alternative
financing), then Buyer shall pay, or cause to be paid, to the Sellers in accordance with their respective Pro Rata Percentage a fee in an amount equal to $9,500,000 (the “Buyer Termination Fee”) as liquidated damages, and the
Sellers hereby agree to accept payment of such fee as their sole and exclusive remedy, in lieu of specific performance and all other claims and remedies that might otherwise be available with respect thereto, including elsewhere hereunder and
notwithstanding any other provision of this Agreement. Such fee shall be paid in immediately available funds concurrently with the termination of this Agreement and, if not paid at such time, shall bear interest from the termination date to the date
of such payment at a rate equal to the rate of interest from time to time announced publicly by Citibank NA as its prime rate, calculated on the basis of a year of 365 days and the number of days elapsed. If Buyer fails to pay timely any amount due
pursuant to this Section 8.3(a) and, in order to obtain such payment, the Sellers commence a suit against Buyer for the amount payable to the Sellers pursuant to this Section 8.3(a), Buyer shall pay to the Sellers their reasonable,
out-of-pocket costs and expenses (including attorney’s fees and expenses) (the “Buyer Termination Fee Expenses”) in connection with such suit. The Brant Guarantee shall support the Buyer Termination Fee and the Buyer
Termination Fee Expenses. 
 (b) If this Agreement is terminated by Buyer pursuant to Section 8.1(b) as a result of a willful breach by
the Sellers that results in the failure of any of the conditions set forth in Section 7.3 and provided that all of the other conditions set forth in Section 7.1 and Section 7.2 have been satisfied (other than those which by their
terms are not capable of being satisfied until the Closing Date), then the Company shall pay, or cause to be paid, to Buyer a fee in an amount equal to $9,500,000 as liquidated damages, and Buyer hereby agrees to accept payment of such 

  

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fee as its sole and exclusive remedy, in lieu of specific performance and all other claims and remedies that might otherwise be available with respect
thereto, including elsewhere hereunder and notwithstanding any other provision of this Agreement. Such fee shall be paid in immediately available funds concurrently with the termination of this Agreement and, if not paid at such time, shall bear
interest from the termination date to the date of such payment at a rate equal to the rate of interest from time to time announced publicly by Citibank NA as its prime rate, calculated on the basis of a year of 365 days and the number of days
elapsed. If the Company fails to pay timely any amount due pursuant to this Section 8.3(b) and, in order to obtain such payment, Buyer commences a suit against the Company for the amount payable to Buyer pursuant to this Section 8.3(b),
the Company shall pay to Buyer its reasonable, out-of-pocket costs and expenses (including attorney’s fees and expenses) in connection with such suit. 
 (c) The provision for payment of liquidated damages in this Section 8.3 has been included because in the event of a breach hereof (other than a post-Closing breach) by Buyer or the Sellers the actual damages to
be incurred by the Company and the Sellers or Buyer can reasonably be expected to approximate the amount of liquidated damages called for in this Agreement and because the actual amount of such damages would be difficult if not impossible to measure
accurately. 
 ARTICLE IX 
 INDEMNIFICATION 
 Section 9.1 Indemnification Obligations of the Sellers. 
 (a) Subject to the provisions of this Article IX, from and after the Closing, the Sellers shall, severally in accordance with their Pro Rata Percentage,
and not jointly, indemnify and hold harmless each of the Buyer Indemnified Parties from, against and in respect of any and all Losses arising out of: 
 (i) any breach of any representation or warranty made by the Company in Article III of this Agreement; and 
 (ii) any breach of any covenant, agreement or undertaking made by the Company of this Agreement with respect to any periods prior to the Closing. 
 (b) Subject to the provisions of this Article IX, from and after the Closing, each Seller shall severally, and not jointly, indemnify and hold harmless
each of the Buyer Indemnified Parties from, against and in respect of any and all Losses arising out of: 
 (i) any breach of
any representation or warranty made by such Seller in Article IV of this Agreement; and 
 (ii) any breach of any covenant,
agreement or undertaking made by such Seller in this Agreement. 
 The Losses of the Buyer Indemnified Parties described in this Section 9.1 as to which
the Buyer Indemnified Parties are entitled to indemnification are collectively referred to as “Buyer Losses”. 
  

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 Section 9.2 Indemnification Obligations of Buyer. Each Buyer and the Company shall, from and
after the Closing, jointly and severally, indemnify and hold harmless each of the Seller Indemnified Parties from, against and in respect of any and all Losses arising out of: 
 (a) any breach of any representation or warranty made by Buyer in Article V of this Agreement; 
 (b) any breach of any covenant, agreement or undertaking made by Buyer in this Agreement; and 
 (c) subject only to Buyer’s rights to be indemnified under Sections 9.1(a)(i), 9.1(b)(i) and 9.8 in accordance with and subject to the limitations
of this Agreement, all debts, obligations and liabilities of the Company and its Subsidiaries whether arising before, on or after the Closing Date. 
 The
Losses of the Seller Indemnified Parties described in this Section 9.2 as to which the Seller Indemnified Parties are entitled to indemnification are collectively referred to as “Seller Losses”. 
 Section 9.3 Indemnification Procedure. 
 (a) Promptly after receipt by an Indemnified Party of notice by a third party of a threatened or filed complaint or the threatened or actual commencement of any audit, investigation, action or proceeding with respect to which such
Indemnified Party may be entitled to receive payment from the other Party for any Loss (a “Third Party Claim”), such Indemnified Party shall provide written notification to Buyer, on the one hand, or the Sellers, on the other hand,
whichever is the appropriate indemnifying Party hereunder (the “Indemnifying Party”) within five days of the Indemnified Party’s notice of threatening or filing of such complaint or of the notice of the threatened or actual
commencement of such audit, investigation, action or proceeding; provided, however, that the failure to so notify the Indemnifying Party shall relieve the Indemnifying Party from liability under this Agreement with respect to such
claim only if, and only to the extent that, such failure to notify the Indemnifying Party results in (i) the forfeiture by the Indemnifying Party of rights and defenses otherwise available to the Indemnifying Party with respect to such claim or
(ii) material prejudice to the Indemnifying Party with respect to such claim. The Indemnifying Party shall have the right, upon written notice delivered to the Indemnified Party within 60 days thereafter, to assume the defense of such
complaint, audit, investigation, action or proceeding, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of the fees and disbursements of such counsel. If the Indemnifying Party declines or fails to
assume the defense of the audit, investigation, action or proceeding on the terms provided above within such 60-day period, however, the Indemnified Party may employ counsel reasonably satisfactory to the Indemnifying Party to represent or defend it
in any such audit, investigation, action or proceeding, provided, however, that the Indemnified Party shall not settle any action in respect of which indemnification is payable under this Article (ix) without the consent of the
Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed. If the Indemnifying Party agrees that such audit, investigation, action or proceeding is a matter with respect to which the Indemnified Party is entitled
to receive payment from the Indemnifying Party for the Loss in question, the Indemnifying Party will pay the reasonable fees and disbursements of such counsel 

  

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as incurred; provided, however, that the Indemnifying Party will not be required to pay the fees and disbursements of more than one counsel for
all Indemnified Parties in any jurisdiction in any single audit, investigation, action or proceeding. In any audit, investigation, action or proceeding with respect to which indemnification is being sought hereunder, the Indemnified Party or the
Indemnifying Party, whichever is not assuming the defense of such action, shall have the right to participate in such matter and to retain its own counsel at such Party’s own expense. 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 the Indemnified Party, as the case may be, reasonably apprised of the status of any matter the defense of which they are maintaining and to cooperate in good faith
with each other with respect to the defense of any such matter. 
 (b) An Indemnifying Party shall not, without the written consent of the
Indemnified Party, (i) settle or compromise any Third Party Claim or consent to the entry of any judgment which does not include an unconditional written release by the claimant or plaintiff of the Indemnified Party from all liability in
respect of such Third Party Claim or (ii) settle or compromise any Third Party Claim if the settlement imposes equitable remedies or material obligations on the Indemnified Party other than financial obligations for which the Indemnified Party
will be indemnified hereunder. No Third Party Claim which is being defended in good faith (and not abandoned) by the Indemnifying Party in accordance with the terms of this Agreement shall be settled or compromised by the Indemnified Party without
the written consent of the Indemnifying Party. 
 (c) If an Indemnified Party claims a right to payment pursuant to this Agreement not
involving a third party claim covered by Section 9.3(a) hereof, such Indemnified Party shall send written notice of such claim to the appropriate Indemnifying Party. Such notice shall specify the basis for such claim. As promptly as possible
after the Indemnified Party has given such notice, such Indemnified Party and the appropriate Indemnifying Party shall establish the merits and amount of such claim (by mutual agreement, arbitration, litigation or otherwise) and, within five
Business Days of the final determination of the merits and amount of such claim, the Indemnifying Party shall pay to the Indemnified Party immediately available funds in an amount equal to such claim as determined hereunder, if any. 
 Section 9.4 Claims Period. The Claims Period hereunder shall begin on the date hereof and terminate as follows: 
 (a) with respect to Buyer Losses arising under (i) Section 9.1(a)(i) and Section 9.1(b)(i), in each case only with respect to any breach or
inaccuracy of any Seller Fundamental Representation, and (ii) Section 9.1(b)(ii) with respect to a breach by the Sellers of a covenant, agreement or undertaking to be performed after the Closing, the Claims Period shall survive the Closing
until the expiration of three months following the applicable statutes of limitations; 
 (b) with respect to Buyer Losses arising under
(i) Section 9.1(a)(i) and Section 9.1(b)(i), in each case other than with respect to any breach or inaccuracy of any of the Seller Fundamental Representations, (ii) Section 9.1(a)(ii) or (iii) Section 9.1(b)(ii)
with respect to a breach of a covenant, agreement or undertaking to be performed prior to the Closing, the Claims Period shall terminate on the date that is 18 months following the Closing Date; 
  

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 (c) with respect to Seller Losses arising under Section 9.2(a) with respect to any breach or
inaccuracy with respect to any Buyer Fundamental Representation, Section 9.2(b) with respect to a breach by the Buyer of a covenant, agreement or undertaking to be performed at or after the Closing, and Section 9.2(c), the Claims Period
shall survive the Closing until the expiration of three months following the applicable statutes of limitations; and 
 (d) with respect to
Seller Losses arising under Section 9.2(a), in each case other than with respect to any breach or inaccuracy of any of the Buyer Fundamental Representations, and with respect to Section 9.2(b), with respect to a breach of a covenant,
agreement or undertaking to be performed prior to the Closing, the Claims Period shall terminate on the date that is 18 months following the Closing Date. 
 Notwithstanding the foregoing, the representations and warranties in Section 3.15 (Environmental) relating to the Newberg Facility shall terminate at, and not survive, the Closing, and the provisions of Section 9.8 shall be the
sole and exclusive remedy for any Losses with respect to the Newberg Environmental Liabilities. No claim for indemnification can be made after the expiration of the Claims Period; provided, however, if prior to the close of business on
the last day of the Claims Period, an Indemnifying Party shall have been properly notified of a claim for indemnity hereunder and such claim shall not have been finally resolved or disposed of at such date, such claim shall continue to survive and
shall remain a basis for indemnity hereunder until such claim is finally resolved or disposed of in accordance with the terms hereof. 
 Section 9.5 Liability Limits. Notwithstanding anything to the contrary set forth in this Agreement, each Indemnifying Party’s obligation to indemnify, defend and hold the Indemnified Parties harmless shall be limited as
follows: 
 (a) No amounts of indemnity shall be payable pursuant to Section 9.1(a)(i), Section 9.1(a)(ii), Section 9.1(b)(i),
Section 9.1(b)(ii) (with respect to a breach by the Sellers of a covenant to be performed prior to the Closing), Section 9.2(b) (with respect to a breach by the Buyer of a covenant, agreement or undertaking to be performed prior to the
Closing) or Section 9.2(a) unless and until the Indemnified Parties shall have suffered indemnifiable Losses (but excluding any Losses relating to Newberg Environmental Liabilities as described in Section 9.8, which are exclusively
addressed by Section 9.8) in excess of $3,800,000 (the “Threshold Amount”) in the aggregate, in which case the Indemnified Parties shall be entitled to recover only Losses in excess of the Threshold Amount, provided that
no Losses may be claimed by any Indemnified Party or shall be reimbursable by or included in calculating the Threshold Amount other than Losses in excess of $50,000 resulting from a single claim or aggregated claims arising out of the same facts,
events or circumstances. 
 (b) Subject to the following sentences of this Section 9.5(b), no Seller shall have any indemnification
obligation under this Agreement for an amount in the aggregate greater than $6,333,333 and the Buyer shall have no indemnity obligation under this Agreement for an amount greater than in the aggregate $19,000,000 (it being understood and agreed that
these caps shall constitute a cap on the maximum aggregate liability payable by each Indemnifying Party under this Agreement). Notwithstanding the foregoing sentence of this Section 9.5(b), (i) with respect to the Seller Fundamental
Representations, the maximum aggregate liability payable by each Seller under this Agreement with respect to such Seller Fundamental Representations shall 

  

 -61- 

 
be equal to such Seller’s Pro Rata Percentage of the Purchase Price less any other amounts indemnified by such Seller hereunder and (ii) with
respect to the Buyer Fundamental Representations, the maximum aggregate liability payable by Buyer under this Agreement with respect to such Buyer Fundamental Representations shall be the Purchase Price less any other amounts indemnified by Buyer
hereunder. Notwithstanding anything to the contrary in this Article IX, the Threshold Amount, the first sentence of this Section 9.5(b) and the proviso to Section 9.5(a) shall not apply to any Losses with respect to any Seller
Fundamental Obligations (it being understood and agreed that the Sellers shall be liable for all Losses for which the Buyer Indemnified Parties are entitled to indemnification with respect to such claims) or with respect to any Buyer Fundamental
Obligations (it being understood and agreed that Buyer shall be liable for all Losses for which the Seller Indemnified Parties are entitled to indemnification with respect to such claims), and any amounts recovered by Buyer Indemnified Parties in
respect of Seller Fundamental Obligations or by Seller Indemnified Parties in respect of Buyer Fundamental Obligations shall not be included in determining whether the Threshold Amount has been reached for purposes of this Section 9.5.

 (c) For purposes of computing the aggregate amount of claims against an Indemnifying Party, the amount of each claim by an Indemnified
Party shall be deemed to be an amount equal to, and any payments by the Indemnifying Party pursuant to Section 9.1 or Section 9.3 shall be limited to, the amount of Losses that remain after deducting therefrom (i) any third party
insurance proceeds and any indemnity, contributions or other similar payment paid to the Indemnified Party by any third party with respect thereto, and (ii) with respect to any indemnification claim related to Losses incurred by SPRC, any net
tax savings actually realized by SPRC in the tax period in which the indemnification claim arises. 
 (d) In any claim for indemnification
under this Agreement, the Indemnifying Party shall not be required to indemnify any Person for special, exemplary or consequential damages, including loss of profit or revenue, any multiple of reduced cash flow, interference with operations, or loss
of tenants, lenders, investors or buyers. 
 (e) No Indemnifying Party shall have any liability under this Article IX to indemnify any
Indemnified Party with respect to a Loss to the extent that the Loss is attributable to any action taken by any Indemnified Party on or after the Closing Date. 
 (f) The Sellers shall have no liability for any Loss that would not have arisen but for any change in the accounting policies, practices or procedures adopted by Buyer and/or its Affiliates. 
 (g) In any case where a Buyer Indemnified Party recovers from third Persons any amount in respect of a matter with respect to which the Sellers have
indemnified it pursuant to this Agreement, such Buyer Indemnified Party shall promptly pay over to the Sellers the amount so recovered (after deducting therefrom the full amount of the expenses incurred by it in procuring such recovery), but not in
excess of the sum of (i) any amounts previously so paid by the Sellers to or on behalf of the Buyer Indemnified Party in respect of such matter, and (ii) any amounts expended by the Sellers in pursuing or defending any claim arising out of
such matter. 
  

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 (h) The liability of the Sellers for Buyer Losses shall be considered in the aggregate and shall be
determined on a cumulative basis so the Buyer Losses incurred under Article IX of this Agreement shall be combined with all other Buyer Losses incurred under Article IX for purposes of determining limitations on liability, including the maximum
liability amounts described above. 
 (i) Any indemnity payment under this Agreement by the Sellers shall be treated as an adjustment to the
Purchase Price for U.S. federal income tax purposes. 
 (j) For purposes of determining failure of any representations or warranties to be
true and correct, the breach of any covenants and agreements and calculation of Losses hereunder, any qualification or exception with respect to “material”, “materially”, “materiality” or Material Adverse Effect or
similar language contained therein shall be disregarded, provided that the foregoing shall not apply to Section 3.8(b). 
 (k)
Notwithstanding anything in this Agreement to the contrary, except for any inaccuracy of the representation and warranty set forth in the last sentence of Section 3.22 of which the Company has Knowledge, Buyer shall not have any claim, action,
suit, proceeding, right or remedy for any Loss arising out of, relating to or with respect to the failure by the Company to conduct the maintenance and capital project, and outage and shutdown of the No. 2 Dublin Power Boiler and the Dublin
Paper Mill Machine #2, which was originally planned for September 2007 and rescheduled for April 2008. 
 Section 9.6 Exclusive
Remedies. Except as set forth in Section 6.9 and Section 8.3 or as otherwise provided in the Payment Agreements and the Letters of Credit, the provisions of this Article IX set forth the exclusive rights and remedies of the Parties to
seek or obtain damages or any other remedy or relief whatsoever from any party with respect to matters arising under this Agreement and the transactions contemplated hereby; provided, however, that notwithstanding the foregoing,
nothing in this Section 9.6 shall limit any right of a Party to seek specific performance pursuant to Section 10.9 in connection with a post-Closing breach of the terms of this Agreement. 
 Section 9.7 Tax Matters. Notwithstanding anything to the contrary in this Article IX, this Article IX shall not apply to any indemnification
with respect to Tax matters, which shall be exclusively governed by Section 6.9. 
 Section 9.8 Newberg Facility Indemnity
Limits. 
 (a) Subject to Sections 9.3, 9.5(c), 9.5(d), 9.5(f), 9.5(g), 9.5(i) and 9.6 of this Article IX, from and after the Closing,
Sellers shall, severally in accordance with their Pro Rata Percentage, and not jointly, indemnify and hold harmless each of the Buyer Indemnified Parties from, against and in respect of Losses arising out of NEL to the extent provided in this
Section 9.8. Notwithstanding the foregoing, no amounts of indemnity shall be payable with respect to such Losses unless and until the Buyer Indemnified Parties shall have suffered indemnifiable Losses, whether related to one or more claims,
arising out of NEL in excess of $5,000,000 (the “Newberg Threshold Amount”) in the aggregate, provided that no Losses in respect of NEL may be claimed by any Buyer Indemnified Party or shall be reimbursable by or included in

  

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calculating the Newberg Threshold Amount other than Losses in respect of NEL in excess of $50,000 resulting from a single claim or aggregated claims arising
out of the same related or continuous facts, events or circumstances. At such time as the Buyer Indemnified Parties have incurred indemnifiable Losses in respect of such NEL in excess of the Newberg Threshold Amount, the Sellers (severally in
accordance with their Pro Rata Percentage), on the one hand, and Buyer, on the other hand, shall thereafter share equally all indemnifiable Losses arising out of any NEL suffered by the Buyer Indemnified Parties in excess of the Newberg Threshold
Amount until such time as the total indemnifiable Losses (including the $5,000,000 Newberg Threshold Amount) in respect of such NEL equals an aggregate amount equal to $22,000,000; provided, however, no Seller shall have any
indemnification obligation with respect to any indemnifiable Losses arising out of NEL for an amount in the aggregate greater than $2,833,333 (it being understood and agreed that this cap shall constitute a cap on the maximum aggregate liability
payable by each Seller under this Agreement with respect to NEL). 
 (b) The Claims Period with respect to Buyer Losses arising under this
Section 9.8 shall terminate on the date that is five (5) years following the Closing Date. No claim for indemnification can be made after the expiration of the Claims Period; provided, however, if prior to the close of
business on the last day of the Claims Period, an Indemnifying Party shall have been properly notified of a claim for indemnity hereunder and such claim shall not have been finally resolved or disposed of at such date, such claim shall continue to
survive and shall remain a basis for indemnity hereunder until such claim is finally resolved or disposed of in accordance with the terms hereof. 
 (c) In calculating Losses which qualify for indemnification by Seller of NEL, any payments received by Buyer from Smurfit under Section 8.03(ii) of the Smurfit Asset Purchase Agreement with respect to any such Loss shall be deducted,
provided, however, that any costs or expenses (including reasonable attorneys fees and expenses) incurred by Buyer in seeking indemnification from Smurfit shall be Losses subject to indemnity under this Section 9.8. 
 (d) Buyer shall use commercially reasonable efforts to seek indemnification from Smurfit pursuant to the Smurfit Asset Purchase Agreement for Losses that
the Sellers agree are subject to indemnification under this Section 9.8. The Sellers shall reasonably cooperate with Buyer in its efforts to seek indemnification from Smurfit with respect to any such Losses. 
 (e) Notwithstanding anything to the contrary in this Agreement, to the extent any Buyer Losses relate in any way to NEL, claims for such Losses shall be
made exclusively under this Section 9.8 subject to the Newberg Threshold Amount and the limitations set forth in this Section 9.8 and shall not be applied against the Threshold Amount or the cap set forth in Section 9.5. In other
words, for the avoidance of doubt, if the $2,833,333 Seller cap with respect to NEL described in Section 9.8(a) has been reached, the Buyer Indemnified Parties shall have no further claims in respect of NEL even if the $6,333,333 cap described
in Section 9.5(b) has not been reached. Likewise, no Buyer Losses in respect of NEL shall be counted for purposes of the $3,800,000 Threshold Amount. 
 (f) The Sellers shall not be required to indemnify any Buyer Indemnified Party for any Loss subject to indemnification under this Section 9.8 to the extent that any such Loss is attributable to conditions
identified by any sampling or testing of soil, surface water or 

  

 -64- 

 
groundwater at or under the Newberg Facility conducted by Buyer or its Representatives, successors or assigns, except for such sampling or testing that is:
(i) required by any Governmental Entity, which requirement was not solicited by a Buyer Indemnified Party or its Representatives, successors or assigns (otherwise than through interaction with such Governmental Authority in good faith and/or as
required by any Law, including any Environmental Law); (ii) required by any Law, including any Environmental Law; or (iii) undertaken in good faith and reasonably necessary (A) in connection with any expansion, modification,
demolition, repair, maintenance or closure of any structure, equipment or operations at, on, under or relating to the Newberg Facility in the ordinary course of business; (B) to respond to, investigate or otherwise remediate conditions that
would reasonably be expected to create a substantial risk of harm to the health, safety or welfare of Buyer’s employees, the public or the Environment; (C) to defend against any claims asserted against Buyer by Seller; or (D) to
defend against any third-party claims against Buyer. Buyer will provide notice to the Sellers of the commencement of any soil or groundwater investigations at the Newberg Facility required to be undertaken pursuant to Environmental Law;
provided, however, that, subject to all of the preceding sentences of this Section 9.8(f), Buyer shall conduct any such investigations and related interactions with any third parties as and when it determines in its sole
discretion and receipt of notice by the Sellers shall not confer any rights on the Sellers to participate or otherwise be involved in such matters. 
 (g) For the purposes of this Section 9.8: 
 (i) “Newberg Environmental Liabilities” or
“NEL” shall mean any Environmental Liabilities to the extent arising from or relating to facts, conditions, occurrences, circumstances, events or operations at, on, in under, emanating from, affecting or relating to the Newberg
Facility occurring or existing prior to the Closing Date, regardless of whether such Environmental Liabilities are known to the Buyer as of the Closing Date. 
 (ii) “Environmental Liabilities” shall mean, regardless of whether any of the following are contained in or referred to
in any Disclosure Schedule to this Agreement or otherwise disclosed to Buyer prior to the Closing Date, any and all Losses (whether known or unknown, foreseen or unforeseen, contingent or otherwise, fixed or absolute or present or arising in the
future) arising under any Environmental Laws (including, without limitation the cost of any natural resource damages), asserted against or incurred by Buyer arising out of or relating in any way to the Newberg Facility, including without limitation,
the ownership, operation or use thereof by any person at any time, and including without limitation, any claims based on strict liability, nuisance, for personal injury, property damage or damage to natural resources, resulting from or arising out
of any of the following: (A) the presence, Release or threatened Release at, on, in, under or from the Newberg Facility (including, but not limited to, any off-site environmental conditions in or affecting the Willamette River, tributaries
thereof or other locations to the extent such off-site conditions relate thereto); (B) the off-site transportation, storage, treatment, recycling, disposal or arrangement for disposal or for treatment of Hazardous Materials by or on behalf of
any person at or from the Newberg Facility; (C) any exposure to Hazardous Materials; or (D) any violation or alleged violation of any Environmental Law. 
  

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 (iii) Sellers’ obligation to indemnify for Losses under this Section 9.8 shall
not include Losses to the extent that they (A) are based on statutes, regulations, rules, codes or ordinances which take effect or are amended after the Closing Date and are more restrictive than requirements in effect prior to the Closing Date
or (B) are based on use of the Newberg Facility for other than industrial purposes. 
 (iv) In no event shall Sellers be
obligated to indemnify Buyer for any claim associated with the presence of asbestos or asbestos-containing materials in any structure or equipment at the Newberg Facility except to the extent the asbestos or asbestos-containing materials as of the
Closing Date are damaged, friable or otherwise required to be removed, encapsulated or handled to comply with applicable Environmental Laws (other than due to renovations or other actions taken by Buyer, its representatives, successors or assigns).

 (h) The indemnification provided by Sellers for NEL pursuant to this Section 9.8 shall be assignable by Buyer, subject to the rights
and conditions set forth in this Section 9.8, in connection with the sale or other transfer by Buyer by operation of law or otherwise of the Newberg Facility or of substantially all of the assets or business related to the Newberg Facility, and
provided that Buyer or its Representatives, successors or assigns, shall provide the Sellers with written notice of such assignment no later than the date on which the agreement to sell or otherwise transfer any of them is entered into. 

ARTICLE X 
 MISCELLANEOUS 

 Section 10.1 Fees and Expenses. Except as provided above or as otherwise expressly provided herein, (a) Buyer shall pay
its own fees, costs and expenses incurred in connection herewith and the transactions contemplated hereby, including the fees, costs and expenses of its financial advisors, accountants and counsel, and (b) the Sellers’ Transactional
Expenses, to the extent not paid prior to the Closing, shall be borne by the Sellers. 
 Section 10.2 Notices. All notices,
requests, demands, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be given by any of the following methods: (a) personal delivery; (b) registered or certified mail,
postage prepaid, return receipt requested; or (c) overnight mail, or (d) facsimile transmission. Notices shall be sent to the appropriate Party at its address given below (or at such other address for such Party as shall be specified by
notice given hereunder): 
 If to Buyer, to: 
 SP Newsprint Holdings LLC 
 8 Wright Street 
 Westport, CT 06880 
 Attention: Paul Berg 
 Facsimile: (203) 226-3801 
  

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 and to: 
 SP Newsprint Merger LLC 
 8 Wright Street 
 Westport, CT 06880 
 Attention: Paul Berg 
 Facsimile: (203) 226-3801 
 with a copy (which shall not constitute notice) to: 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attention: Christopher Cox 
 Facsimile: (212) 396-0136 
 If to the Company to: 
 SP
Newsprint Co. 
 245 Peachtree Avenue, Suite 1800 
 Atlanta, Georgia 30303 
 Attention: Chief Executive Officer 
 Facsimile: (404) 979-6615 
 with a copy (which shall not constitute notice) to: 
 King & Spalding LLP 
 1180 Peachtree Street, N.E. 
 Atlanta, Georgia 30309-3521 

			
	Attention:	 	C. William Baxley
		 	Anne M. Cox

 Facsimile: (404) 572-4600 
 If to CEI Newsprint to: 
 CEI
Newsprint, Inc. 
 c/o Cox Enterprises, Inc. 
 6205 Peachtree Dunwoody Road 
 Atlanta, Georgia 30328 
 Attention: Brian G. Cooper 
 Facsimile: (678) 645-5001 
 with a copy (which shall not constitute notice) to: 
 Dow Lohnes PLLC 
 Six Concourse Parkway, Suite 1800 
 Atlanta, Georgia 30328-6117 
 Attention: Richard A. Wilhelm 
 Facsimile: (770) 901-8874 
  

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 If to Virginia Paper to: 
 Virginia Paper Manufacturing Corp. 
 c/o Media General, Inc. 
 333 E. Franklin Street 
 P.O. Box 85333 
 Richmond, Virginia 23219 
 Attention: John A. Schauss 
 Facsimile: (804) 649-6131 
 with a copy (which shall not constitute notice) to: 
 Media General, Inc. 
 333 E. Franklin Street 
 P.O. Box 85333 
 Richmond, Virginia 23219 

			
	Attention:	 	George L. Mahoney, Esq.
		 	Secretary and General Counsel

 Facsimile: (804) 649-6989 
 If to McClatchy Newsprint to: 
 McClatchy Newsprint, Inc. 
 c/o The McClatchy Company 
 2100 Q Street 
 Sacramento, California 95816 
 Attention: Patrick J. Talamantes 
 Facsimile: (916) 321-1869 
 with a copy (which shall not constitute notice) to: 
 The McClatchy Company 
 2100 Q Street 
 Sacramento, California 95816 
 Attention: Karole Morgan-Praeger 
 Facsimile: (916) 326-5586 
 All such
notices, requests, demands, waivers and communications shall be deemed received upon (i) actual receipt thereof by the addressee, or (ii) actual delivery thereof to the appropriate address. 
 Section 10.3 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of
Law or public policy, all other terms, 

  

 -68- 

 
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated by this Agreement is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest
extent possible. 
 Section 10.4 Binding Effect; Assignment. This Agreement and all of the provisions hereof shall be binding
upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, directly or indirectly, including by
operation of law, by any Party without the prior written consent of the other Parties. 
 Section 10.5 No Third Party
Beneficiaries. This Agreement is exclusively for the benefit of the Company, the Sellers, and solely with respect to Article IX, the Seller Indemnified Parties (and, where expressly provided, their respective Affiliates), and their respective
successors and permitted assigns, with respect to the obligations of Buyer under this Agreement, and for the benefit of Buyer and, solely with respect to Article IX, the Buyer Indemnified Parties (and, where expressly provided, their respective
Affiliates) and their respective successors and permitted assigns, with respect to the obligations of the Company and the Sellers, under this Agreement, and this Agreement shall not be deemed to confer upon or give to any other third party any
remedy, claim, liability, reimbursement, cause of action or other right. 
 Section 10.6 Section Headings. The Article and
Section headings contained in this Agreement are exclusively for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. 
 Section 10.7 Entire Agreement. This Agreement (including the Schedules and Exhibits attached hereto), the Confidentiality Agreement and the
other documents delivered pursuant to this Agreement constitute the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede all other prior agreements and understandings, both written and oral, between
the Parties with respect to the subject matter of this Agreement. 
 Section 10.8 Governing Law; Venue. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York (regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof) as to all matters, including matters of validity,
construction, effect, performance and remedies. Each Party hereby irrevocably agrees that any legal dispute shall be brought only to the exclusive jurisdiction of the United States District Court for the District of Delaware and each Party hereby
consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the
laying of venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding that is brought in such court has been brought in an inconvenient forum. 
  

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 Section 10.9 Specific Performance. The Parties acknowledge and agree that any post-Closing
breach of the terms of this Agreement would give rise to irreparable harm for which money damages would not be an adequate remedy, and accordingly agree that, in addition to any other remedies, each Party shall be entitled to enforce the terms of
this Agreement by a decree of specific performance without the necessity of proving the inadequacy of money damages as a remedy. For the avoidance of doubt, each Party hereby waives the right to specific performance of the terms of this Agreement in
connection with breaches of the terms of this Agreement on or before the Closing Date, and agrees not to seek and waives the right to receive specific performance of the terms of this Agreement in the event that it is owed a termination fee pursuant
to Section 8.3. 
 Section 10.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
to be an original, but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other electronic means (including email) shall be as effective as delivery of
a manually executed counterpart of the Agreement. 
 Section 10.11 Amendment; Modification. This Agreement may be amended,
modified or supplemented at any time only by written agreement of the Parties. 
 Section 10.12 Conflicts and Privilege. Buyer
and the Company hereby agree that, in the event a dispute arises after the Closing between Buyer or the Company, on one hand, and any or all of the Sellers, on the other hand, King & Spalding LLP may represent any or all of such Sellers in
such dispute even though the interests of the Sellers may be directly adverse to the Company, and even though King & Spalding LLP may have represented the Company in a matter substantially related to such dispute, or may be handling ongoing
matters for the Company. Buyer and the Company further agree that, as to all communications between King & Spalding LLP, the Company and the Sellers that relate to the transactions contemplated by this Agreement, the attorney-client
privilege and the expectation of client confidence belongs to the Sellers and may be controlled by the Sellers, and shall not pass to or be claimed or controlled by the Company in the event of a legal dispute with any of the Sellers. Notwithstanding
the foregoing, in the event a dispute arises between Buyer or the Company and a Person other than a Seller after the Closing, the Company may assert the attorney-client privilege to prevent disclosure of confidential communications by
King & Spalding LLP to such Person; provided, however, that the Company may not waive such privilege without the prior written consent of the Sellers. 
 Section 10.13 Schedules. The specification of any dollar amount in the representations or warranties contained in this Agreement or the
inclusion of any specific item in any Schedules hereto is not intended to imply that such amounts, or higher or lower amounts or the items so included or other items, are or are not material, and no Party shall use the fact of the setting of such
amounts or the inclusion of any such item in any dispute or controversy as to whether any obligation, items or matter not described herein or included in a Schedule is or is not material for purposes of this Agreement. 
 [SIGNATURES FOLLOW ON NEXT PAGE] 
  

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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above
written. 
  

			
	BUYER:
	
	SP NEWSPRINT HOLDINGS LLC
		
	By:	 	 /s/ Peter M. Brant

	Name:	 	Peter M. Brant
	Title:	 	Managing Member
	
	SP NEWSPRINT MERGER LLC
		
	By:	 	 /s/ Edward D. Sherrick

	Name:	 	Edward D. Sherrick
	Title:	 	 Chief Executive Officer
 Chief Financial
Officer

	
	COMPANY:
	
	SP NEWSPRINT CO.
		
	By:	 	 /s/ Joseph R. Gorman

	Name:	 	Joseph R. Gorman
	Title:	 	President & Chief Executive Officer
	
	SELLERS:
	
	CEI NEWSPRINT, INC.
		
	By:	 	 /s/ Brian G. Cooper

	Name:	 	Brian G. Cooper
	Title:	 	Vice President
	
	MCCLATCHY NEWSPRINT, INC.
		
	By:	 	 /s/ Patrick J. Talamantes

	Name:	 	Patrick J. Talamantes
	Title:	 	Vice President - Finance & Chief Financial Officer
	
	VIRGINIA PAPER MANUFACTURING CORP.
		
	By:	 	 /s/ John A. Schauss

	Name:	 	John A. Schauss
	Title:	 	Vice President – Finance & Chief Financial OfficerContribution Agreement

 Exhibit 10.3 
 CONTRIBUTION AGREEMENT 
 dated as of March 31, 2008 
 between 
 CAROLINAS HOLDINGS, LLC,

 CAROLINAS JV HOLDINGS, L.P., 
 NOVANT HEALTH, INC. 
 HEALTH MANAGEMENT ASSOCIATES, INC. 
 and 
 FOUNDATION HEALTH SYSTEMS
CORP. 

 TABLE OF CONTENTS 
  

							
	ARTICLE I DEFINITIONS	  	1
		 	1.1	  	Definitions.	  	1
		 	1.2	  	Interpretation.	  	6
	ARTICLE II PURCHASE OF UNITS	  	7
		 	2.1	  	Purchased Units.	  	7
	ARTICLE III CONSIDERATION	  	7
		 	3.1	  	Purchase Price.	  	7
		 	3.2	  	Allocation of Purchase Price.	  	8
	ARTICLE IV CLOSING	  	8
		 	4.1	  	Closing.	  	8
		 	4.2	  	Actions by the Company at Closing.	  	8
		 	4.3	  	Actions by Contributor at Closing.	  	9
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND HMA	  	9
		 	5.1	  	Capacity and Authority.	  	10
		 	5.2	  	Consents; Absence of Conflicts with Other Agreements, Etc.	  	10
		 	5.3	  	Binding Agreements.	  	10
		 	5.4	  	Financial Statements.	  	10
		 	5.5	  	Assets; Title.	  	11
		 	5.6	  	Governmental Authorizations.	  	11
		 	5.7	  	Medicare and Medicaid Participation; Accreditation.	  	12
		 	5.8	  	Regulatory Compliance.	  	12
		 	5.9	  	Contracts.	  	12
		 	5.10	  	Intellectual Property.	  	12
		 	5.11	  	Insurance.	  	13
		 	5.12	  	Employee Benefit Plans.	  	13
		 	5.13	  	Employee Relations.	  	13
		 	5.14	  	Litigation or Proceedings.	  	14
		 	5.15	  	Medical Staff Matters.	  	14
		 	5.16	  	Recent Events.	  	15
		 	5.17	  	Environmental Matters.	  	15
		 	5.18	  	Taxes.	  	16
		 	5.19	  	Capitalization.	  	16
		 	5.20	  	Debt.	  	17
		 	5.21	  	Accounts Receivable.	  	17
		 	5.22	  	Payor Participation.	  	17
		 	5.23	  	No Broker’s Fees.	  	18
		 	5.24	  	Healthcare Matters.	  	18
		 	5.25	  	Affiliate Transactions.	  	18
		 	5.26	  	Disclosure.	  	19
		 	5.27	  	Disclaimer of Other Representations and Warranties.	  	19
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF CONTRIBUTOR	  	19

  

 i 

							
		 	6.1	  	Capacity and Authority of Contributor.	  	19
		 	6.2	  	Consents; Absence of Conflicts with Other Agreements, Etc.	  	19
		 	6.3	  	Binding Agreements.	  	20
		 	6.4	  	Litigation and Proceedings.	  	20
		 	6.5	  	Financing.	  	20
		 	6.6	  	Regulatory Compliance.	  	20
		 	6.7	  	Solvency	  	20
		 	6.8	  	Knowledge of Contributor.	  	21
		 	6.9	  	Investment; Non-Reliance.	  	21
		 	6.10	  	No Broker’s Fees.	  	21
	ARTICLE VII COVENANTS AND AGREEMENTS	  	22
		 	7.1	  	Transferred Physicians.	  	22
		 	7.2	  	Confidentiality.	  	27
		 	7.3	  	Cooperation.	  	28
		 	7.4	  	Taxes.	  	28
	ARTICLE VIII INDEMNIFICATION	  	29
		 	8.1	  	Indemnification by the Company, HMA LP, and HMA.	  	29
		 	8.2	  	Indemnification by Contributor.	  	30
		 	8.3	  	Indemnification Procedure.	  	31
		 	8.4	  	Contributor’s Exclusive Remedy.	  	32
	ARTICLE IX IN GENERAL	  	32
		 	9.1	  	Public Disclosure.	  	32
		 	9.2	  	Costs of Transaction.	  	32
		 	9.3	  	Enforcement Expenses.	  	32
		 	9.4	  	Notices.	  	32
		 	9.5	  	Schedules and Other Instruments.	  	33
		 	9.6	  	Governing Law.	  	34
		 	9.7	  	Waiver of Jury Trial.	  	34
		 	9.8	  	Benefit; Assignment.	  	34
		 	9.9	  	No Rights in Third Parties.	  	34
		 	9.10	  	Waivers and Consents.	  	34
		 	9.11	  	Severability.	  	34
		 	9.12	  	Inferences.	  	35
		 	9.13	  	Headings.	  	35
		 	9.14	  	Entire Agreement; Amendment.	  	35
		 	9.15	  	Tax and Medicare Advice and Reliance.	  	35
		 	9.16	  	Counterparts.	  	35

  

 ii 

 CONTRIBUTION AGREEMENT 
 THIS CONTRIBUTION AGREEMENT (this “Agreement”) is made and entered into as of March 31, 2008, by and between
Carolinas Holdings, LLC, a Delaware limited liability company (the “Company”), Carolinas JV Holdings, L.P., a Delaware limited partnership (“HMA LP”), Health Management Associates, Inc., a
Delaware corporation (“HMA”), Foundation Health Systems Corp., a North Carolina non-profit corporation which is exempt from federal income tax as an organization described in Section 501(c)(3) of the Code
(“Contributor”), and Novant Health, Inc., a North Carolina non-profit corporation which is exempt from federal income tax as an organization described in Section 501(c)(3) of the Code (“Novant”).

 WHEREAS, the Company is the sole member of the limited liability companies identified on Exhibit I hereto (the
“Subsidiaries”); 
 WHEREAS, the Subsidiaries own and operate certain healthcare facilities located at the addresses
set forth opposite such Subsidiary’s name on Exhibit I (each, a “Hospital Facility” and collectively, the “Hospital Facilities”); 
 WHEREAS, the parties desire for Contributor to make a capital contribution to the Company in the amount of Two Hundred Ninety Six Million Five Hundred
Thousand Dollars ($296,500,000.00) in exchange for 27,000 units, representing 27% of the issued and outstanding Units of the Company (the “Purchased Units”), in accordance with the terms and conditions set forth in this
Agreement; 
 WHEREAS, the parties desire for Contributor to purchase certain tangible assets of certain physician practice management
entities that are Affiliates of HMA LP, for a purchase price of Three Million Five Hundred Thousand Dollars ($3,500,000), in accordance with the terms and conditions set forth in this Agreement; 
 WHEREAS, immediately prior to the Closing, HMA LP owned 100% of the outstanding units of the Company and immediately following the Closing, HMA LP will
own 73% of the outstanding units of the Company and Contributor will own 27% of the units of the Company. 
 NOW, THEREFORE, for and in
consideration of the premises, and the agreements, covenants, representations and warranties hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of all of which are forever acknowledged and confessed, the
parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Definitions. 
 In addition to the other definitions contained in the heading paragraph of this Agreement, the foregoing recitals and elsewhere in this Agreement, the
following terms will, when used in this Agreement, have the following respective meanings: 

 “Affiliates” means, with respect to any Person, any Persons directly or
indirectly controlling, controlled by, or under common control with, such other Person at any time during the period for which the determination of affiliation is being made. For purposes of this definition, the term “control” (including
the correlative meanings of the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause
the direction of management policies of such Person, whether through the ownership of voting securities or by contract or otherwise. 
 “Agreement” has the meaning given it by the preamble. 
 “Clinical Affiliation
Agreement” means a Clinical Affiliation Agreement between Novant and the Company to be entered into by the parties thereto at Closing, in a form mutually agreed upon by the parties thereto. 
 “Closing” means the consummation of the transactions contemplated by and described in Article II. 
 “Closing Date” has the meaning given it by Section 2.1. 
 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, Section 4980B of the Code and Title I,
Part 6 of ERISA, together with all regulations promulgated thereunder. 
 “Code” means the Internal Revenue Code of
1986, as amended. 
 “Company” has the meaning given it by the recitals. 
 “Confidential Information” means all information of any kind concerning the Disclosing Party or any of its Affiliates, obtained
directly or indirectly from the Disclosing Party or any of its Affiliates, employees, representatives or agents in connection with the transactions contemplated by this Agreement, except information (a) ascertainable or obtained from public or
published sources, (b) received from a third party not known by the Receiving Party to be under an obligation to keep such information confidential, (c) which is or becomes known to the public (other than through a breach of this
Agreement), or (d) which was in the Receiving Party’s possession prior to disclosure thereof to the Receiving Party and which was not subject to any obligation to keep such information confidential. 
 “Contracts” has the meaning given it by Section 5.9. 
 “Contributor” has the meaning given it by the preamble. 
 “Contributor Indemnified Parties” has the meaning given it by Section 8.1. 
 “Data Room” means the Intralinks virtual data room, in the workspace identified as “Project Edwards”. 
 “Department” means the appropriate state healthcare licensing and regulatory authority or authorities in each state in which any
of the Hospital Facilities operate. 
  

 2 

 “Disclosing Party” has the meaning given it by Section 7.2(a). 

“Encumbrances” means liens (including deed of trust liens, mechanic’s or materialmen’s liens and judgment liens),
charges, encumbrances, security interests, options, judgments or any other restrictions or third party rights. 
 “Environmental
Law” means any Law relating to (a) releases or threatened releases of Hazardous Substances, (b) pollution or protection of the environment, (c) the protection of human health or the environment (including air, water
vapor, surface water, groundwater, drinking water supply, and surface or subsurface land), including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, the Medical Waste Tracking Act, the Hazardous Waste
Materials Transportation Act, the Clean Water Act, the Clean Air Act, the Toxic Substances Control Act, the Oil Pollution Act, and the Resource Conservation and Recovery Act, or (d) the exposure to, or the use, storage, recycling, treatment,
generation, transportation, processing, handling, labeling, management, release, investigation, remediation, removal or disposal of, Hazardous Substances. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” means with respect to any Person, any Person that is a member of a “controlled group of corporations” with, or is under “common control” with, or is a member of the same
“affiliated service group” with any other Person, as defined in Section 414 of the Code. 
 “Financial
Statements” has the meaning given it by Section 5.4. 
 “GAAP” means, at any time, generally
accepted United States accounting principles, methods and practices then set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants, and statements and pronouncements of
the Financial Accounting Standards Board, the Securities and Exchange Commission or of such other party as may be approved by a significant segment of the U.S. accounting profession, in each case as of the date or period at issue and as applied on a
consistent basis. 
 “Governmental Authorizations” means all licenses, permits, certificates, no objection letters,
clearances and other authorizations, consents and approvals of any Governmental Entity which are required to consummate any of the transactions contemplated hereby or to operate the Hospital Facility as currently operated in all material respects
under any Law, including provider agreements with the Medicare and Medicaid programs (including their fiscal intermediaries) and TRICARE. 
 “Governmental Entity” means any local, state or federal government or political subdivision thereof, including each of their respective branches, departments, agencies, taxing authorities, commissions, boards,
bureaus, courts, instrumentalities or other subdivisions, the Department, the Medicare and Medicaid programs (including their contractors or fiscal intermediaries) and TRICARE or any arbitrator or arbitral body. 
  

 3 

 “Hazardous Substances” means any matter or material containing any substance,
constituents or wastes (infectious or otherwise), whether solid, liquid or gaseous, (a) that is listed, defined, designated or classified as hazardous or toxic under any Environmental Law, (b) the presence of which may require
investigation or remediation under any Environmental Law, or (c) that is otherwise legally regulated by a Governmental Entity that enforces Environmental Laws. 
 “HMA” has the meaning given to it in the preamble. 
 “HMA
Indemnified Parties” has the meaning given it by Section 8.2. 
 “HMA LP” has the meaning given it
by the preamble. 
 “Hospital Facility” has the meaning given it by the recitals. 
 “Intellectual Property” means patents, applications for patents, copyrights, licenses, assumed names, trade names, trademark
and/or service mark registrations and applications therefor, trademarks, service marks, software, firmware, embedded microcontrollers in non-computer equipment and other information technology, procedures, instructions, inventions, trade secrets,
know-how and all other proprietary information. 
 “IRS” means the U.S. Internal Revenue Service. 
 “Law” means any applicable law, statute, ordinance, rule, regulation, directive, requirement, code, order, judgment, injunction,
decree or judicial or administrative doctrine promulgated or issued by any Governmental Entity. 
 “License
Agreement” means a License Agreement between Novant and the Company to be entered into by the parties thereto at Closing, in a form mutually agreed upon by the parties thereto. 
 “Losses” means damages, claims, losses, material diminution in value solely to the extent resulting from a breach of the
representations set forth in Section 5.4 hereof, assessments, taxes, charges, actions, suits, proceedings, deficiencies, interest, penalties and reasonable costs and expenses associated therewith (including reasonable attorneys’ fees,
litigation costs, removal costs, remediation costs, closure costs, fines, penalties and expenses of investigation and ongoing monitoring), whether asserted by a party to this Agreement or by a third party, and is further defined in
Section 8.3(b). 
 “Management Agreement” means a Management Agreement between an Affiliate of HMA and the
Company, to be entered into by the parties thereto at Closing, in a form mutually agreed upon by the parties thereto. 
 “Managed
Care Agreement” means a Managed Care Agreement between Novant and the Company and/or the Subsidiaries, to be entered into by the parties thereto at Closing, in a form mutually agreed upon by the parties thereto. 
  

 4 

 “Material Adverse Effect” means, individually or in the aggregate, a material
adverse effect on the assets, operations, results of operations or condition (financial or otherwise) of the Company, a Subsidiary, or a Hospital Facility, provided, however, that, notwithstanding anything to the contrary contained in this
Agreement, the following will be presumed not to constitute a Material Adverse Effect; (a) general economic or industry conditions; (b) changes or proposed changes to any Law, reimbursement rates or policies of Governmental Entities;
(c) requirements, reimbursement rates, policies or procedures of third party payors or accreditation commissions or organizations that are generally applicable to hospitals or healthcare facilities within the United States or a state in which a
Hospital Facility operates; or (d) state or federal statutory or regulatory changes that are generally applicable to hospitals or healthcare facilities within the United States or a state in which a Hospital Facility operates. 
 “Material Contract” means any Contract that (i) involves payments in excess of $100,000 before
it can be terminated, or (ii) is not terminable by the Company or the applicable Subsidiary without cause within 120 days. 
 “Medicaid” means, with respect to each Subsidiary, the Medicaid program in effect in the state where such Subsidiary’s Hospital Facility operates as administered by the applicable Department in such state.

 “Novant” has the meaning given to it in the preamble. 
 “Operating Agreement” means the Amended and Restated Limited Liability Company Agreement of the Company to be entered into by the
Company, HMA LP and Contributor at Closing, in a form mutually agreed upon by the parties thereto. 
 “Ordinary Course of
Business” means as follows: an action taken by a Person will be deemed to have been taken in the Ordinary Course of Business only if that action (a) is consistent in nature, scope, and magnitude with the past practices of such
Person and is taken in the ordinary course of the normal, day-to-day operations of such Person; (b) does not require authorization by the Board of Directors or shareholders of such Person (or by any Person or group of Persons exercising similar
authority) and does not require any other separate or special authorization of any nature; and (c) is not materially different in nature, scope and magnitude from actions customarily taken, without any separate or special authorization, in the
ordinary course of normal, day-to-day operations of other Persons that are in the same line of business as such Person. 
 “Person” means an individual, a corporation, a partnership, a joint venture, a limited liability company, an association, a foundation, a trust or any other entity or organization. 
 “Permitted Encumbrances” has the meaning given it by Section 5.5(b). 
 “Physician Losses” has the meaning given it by Section 7.1(e). 
 “Plan” has the meaning given it by Section 5.12. 
 “PPM Assets” has the meaning given it by Section 7.1(g). 
  

 5 

 “Purchased Units” has the meaning given it by the recitals. 
 “Purchase Price” has the meaning given it by Section 3.1. 
 “Receiving Party” has the meaning given it by Section 7.2(a). 
 “Restructuring Transactions” means those certain contributions, conversions, and other transactions effectuated by HMA and its
Affiliates with respect to the Subsidiaries in connection with and prior to the consummation of the transactions contemplated hereby. 
 “Returns” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereto. 

“Securities Act” means the Securities Act of 1933, as amended. 
 “Subsidiary” and “Subsidiaries” means the limited liability companies identified on Exhibit I
hereto, which have recently converted from corporations to limited liability companies as part of the Restructuring Transactions. References to a “Subsidiary” or the “Subsidiaries” shall be deemed to mean the corporations which
converted into the aforesaid limited liability companies for the purposes of Company’s, HMA LP’s, and/or HMA’s warranties, representations, and covenants hereunder. 
 “Taxes” has the meaning given it by Section 5.18. 
 “Threshold Amount” has the meaning given it by Section 8.1. 
 “Transferred Physicians” has the meaning given it by Section 7.1. 
 “Transaction Documents” means this Agreement and the other agreements entered into in connection with the consummation of the
transactions contemplated hereby, including the Operating Agreement, the License Agreement, the Managed Care Agreement and the Clinical Affiliation Agreement. 
 “WARN Act” means the Worker Adjustment and Retraining Notification Act. 
  

	 	1.2	Interpretation. 

 (a) The words
“herein,” “hereof” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; 
 (b) References to “Articles” and “Sections” are to the Articles or Sections of this Agreement, and
references to “Schedules” are to the Schedules annexed hereto, or subsequently supplied pursuant to Section 9.5; 
 (c) References to a “party” means a party to this Agreement and include references to such party’s successors and permitted assigns; 
  

 6 

 (d) References to a “third party” means a Person not party to this
Agreement; 
 (e) Any of the terms defined herein may, unless the context requires otherwise, be used in the singular or the plural
depending on the reference; 
 (f) The masculine pronoun includes the feminine and the neuter, as appropriate in the context;

 (g) With respect to any matter or thing, the terms “including” or “includes” means
including but not limited to such matter or thing; 
 (h) The term “Company’s
knowledge” means the actual knowledge of the Divisional Vice President of HMA and the Divisional Chief Financial Officer of HMA responsible for the applicable Subsidiary or Hospital Facility, HMA’s Corporate Comptroller, and the
Chief Executive Officer and Chief Financial Officer of each Subsidiary, in each case after reasonable investigation if, and to the extent, investigation is appropriate; and 
 (i) References to any “Law” are references to that law as of the date hereof and the Closing
Date, and all rules and regulations promulgated thereunder. 
 ARTICLE II 
 PURCHASE OF UNITS 
  

	 	2.1	Purchased Units. 

 The Closing of the transactions
contemplated by this Agreement shall take place on the date hereof (the “Closing Date”), effective following the completion of all of the Restructuring Transactions. Subject to the terms and conditions contained in this
Agreement, at Closing the Company will sell to Contributor and Contributor will purchase from the Company the Purchased Units. 
 ARTICLE
III 
 CONSIDERATION 
  

	 	3.1	Purchase Price. 

 The aggregate amount being
contributed by the Contributor to the Company for the Purchased Units and the PPM Assets is Three Hundred Million Dollars ($300,000,000.00) (the “Purchase Price”). At Closing Contributor shall pay the Purchase Price to the
Company by the wire transfer of immediately available funds to one or more accounts designated by the Company. 
 Inasmuch as the Company is
a new entity and has yet to establish bank accounts, all parties acknowledge that the Purchase Price will be wired by Contributor to HMA, which will receive the Purchase Price on behalf of the Company, and payment to HMA will be deemed payment of
the Purchase Price to the Company from Contributor. HMA will provide the Purchase Price to the Company, and distribute and apply it as set forth in Section 5.1(a) of the Operating Agreement. 
  

 7 

	 	3.2	Allocation of Purchase Price. 

 The allocation of
the Purchase Price among the Subsidiaries and the PPM Assets is set forth in Schedule 3.2 hereto. 
 ARTICLE IV 
 CLOSING 
  

	 	4.1	Closing. 

 Closing is taking place at the Atlanta,
Georgia offices of Nelson Mullins Riley & Scarborough LLP at 9:00 a.m., local time, on the Closing Date. The transactions shall be deemed effective for all purposes as of 11:59 p.m. on the Closing Date. 
  

	 	4.2	Actions by the Company at Closing. 

 At Closing and
unless otherwise waived by Contributor, the Company will deliver to Contributor the following: 
 (a) certificates representing all of
the Purchased Units; 
 (b) copies of resolutions duly adopted by the General Partner of HMA LP and the sole member of the Company
authorizing and approving the consummation of the transactions contemplated hereby and the execution and delivery of this Agreement and the other documents described herein, certified as true, complete and in full force and effect as of Closing by a
duly authorized officer of HMA LP or the Company, as applicable; 
 (c) certificate of incumbency of the officers of the general
partner of HMA LP and of the Company executing this Agreement and the other documents described herein, dated as of the Closing Date; 
 (d) the Operating Agreement, and any agreements to be executed pursuant thereto, duly executed by the Company and HMA LP; 
 (e) the Managed Care Agreement duly executed by each of the Subsidiaries; 
 (f) the License Agreement duly executed
by the Company; 
 (g) the Clinical Affiliation Agreement duly executed by the Company; 
 (h) evidence of the completion of the Restructuring Transactions; 
 (i) a commitment from the agent administering HMA’s secured credit facility that it will release any Encumbrances with respect to the Hospital Facilities, assets utilized by the Company or the Hospital
Facilities, or shares or other ownership interests in the Subsidiaries securing such credit facility, together with an undertaking from HMA to obtain and deliver within sixty (60) days following the Closing Date the release of any other liens

  

 8 

 
with respect to the Hospital Facilities or assets utilized by them that do not constitute Permitted Encumbrances, each in form and content reasonably
satisfactory to Contributor; and 
 (j) a legal opinion of the Senior Vice President and General Counsel of HMA and HMA LP, in a
reasonable form agreed to by the parties; 
 (k) such other instruments and documents as Contributor may reasonably request.

  

	 	4.3	Actions by Contributor at Closing. 

 At Closing and
unless otherwise waived by the Company or HMA LP, Contributor will deliver to the Company and HMA LP the following: 
 (a) payment of
the Purchase Price in immediately available federal funds; 
 (b) copies of resolutions duly adopted by the Board of Directors of
Contributor, authorizing and approving the consummation of the transactions contemplated hereby and the execution and delivery of this Agreement and the other documents described herein, each certified as true, complete and in full force and effect
as of Closing by a duly authorized officer of Contributor; 
 (c) certificate of incumbency of the officers of Contributor executing
this Agreement and the other documents described herein, each dated as of the Closing Date; 
 (d) the Operating Agreement, and any
agreements to be executed pursuant thereto, duly executed by Contributor; 
 (e) the Managed Care Agreement duly executed by Novant;

 (f) the License Agreement duly executed by Novant; 
 (g) the Clinical Affiliation Agreement duly executed by Novant; 
 (h) a legal opinion of the
Senior Vice President and General Counsel of Novant and Contributor, in a reasonable form agreed to by the parties; and 
 (i) such
other instruments and documents as the Company or HMA LP may reasonably request. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND HMA 
 As of the date hereof, the Company, HMA LP, and HMA jointly and severally hereby represent and warrant to Contributor as follows: 
  

 9 

	 	5.1	Capacity and Authority. 

 HMA LP is a limited
partnership duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. HMA
is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware. Each Subsidiary is a limited liability company duly organized, validly existing and in good standing under the laws of its state of
formation. HMA, HMA LP and the Company have all requisite corporate power and authority to enter into this Agreement and the other documents contemplated hereby and to perform their respective obligations hereunder and thereunder. The execution,
delivery and performance of this Agreement and the other documents contemplated hereby by the Company, HMA LP, and HMA and the consummation by the Company, HMA LP, and HMA of the transactions contemplated hereby and thereby, are within the powers of
the Company, HMA LP, and HMA respectively, and have been duly authorized by all appropriate corporate or other action. 
  

	 	5.2	Consents; Absence of Conflicts with Other Agreements, Etc. 

 The Company’s, HMA LP’s, and HMA’s execution and delivery of this Agreement and the other documents contemplated hereby and their performance of this Agreement and the other documents contemplated hereby, and the consummation
by the Company, HMA LP, and HMA of the transactions contemplated hereby and thereby: (a) do not require any approval or consent of, or declaration or filing with, any Governmental Entity, except for Governmental Authorizations expressly
provided for by this Agreement; and (b) will not violate, conflict with or constitute on the part of the Company, HMA LP, or HMA a breach of or a default under the its respective Operating Agreement, Limited Partnership Agreement or Bylaws, as
the case may be, any existing Law or judgment of any Governmental Entity or, except as will not cause a Material Adverse Effect, any Material Contract. 
  

	 	5.3	Binding Agreements. 

 This Agreement and any other agreements or
instruments to which the Company, HMA LP, or HMA will become a party pursuant hereto are and will constitute the valid and legally binding obligations of the Company, HMA LP, or HMA and are and will be enforceable against the Company, HMA LP, or HMA
as applicable, in accordance with the respective terms hereof or thereof, except as enforceability may be restricted, limited or delayed by applicable bankruptcy or other Laws affecting creditors’ rights generally and except as enforceability
may be subject to general principles of equity. 
  

	 	5.4	Financial Statements. 

 Attached hereto as
Schedule 5.4 are the following financial statements of each Subsidiary (collectively, the “Financial Statements”): (a) the unaudited balance sheets of the Subsidiary as of December 31, 2007 (the
“Most Recent Balance Sheet”), and the related unaudited income statements for the year then ended. The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the periods
indicated, and conform to GAAP, provided that the Financial Statements do not reflect normal year-end adjustments and do not contain footnotes or other exceptions. The balance sheets 

  

 10 

 
included in the Financial Statements present fairly in all material respects the financial condition of the applicable Subsidiary at the dates indicated
thereon, and the income statements included in the Financial Statements present fairly in all material respects the results of operations of the applicable Subsidiary for the periods indicated thereon, subject to normal year end adjustments that,
except as set forth on Schedule 5.16, do not in the aggregate exceed $1,000,000. The Schedule of Hospital Cash Collections included in Schedule 5.4 (but not constituting a part of the Financial Statements) is true and correct in all material
respects, and fairly presents in all material respects the cash collections of each Subsidiary for the periods indicated thereon. 
  

	 	5.5	Assets; Title. 

 Subject to the penultimate sentence
of this Section 5.5, each Subsidiary holds good and marketable fee simple, or leasehold title or interest in the case of property held under lease, to the material assets, real, personal or mixed, tangible and intangible, shown on the its Most
Recent Balance Sheet, subject only to: (i) obligations created by the Contracts; (ii) those Encumbrances disclosed on Schedule 5.5; (iii) other Encumbrances (including easements, covenants, licenses and other restrictions)
which shall not materially interfere with the operation of, materially and adversely affect the value of, or result in a Material Adverse Effect with respect to, the Subsidiaries or the Hospital Facilities; (iv) mechanics’,
materialmen’s, and similar liens, (v) liens for Taxes not yet due and payable or for Taxes that the taxpayer is contesting in good faith through appropriate proceedings, (vi) liens securing rental payments under capital lease
arrangements, and (vii) zoning, building codes, and other land use laws regulating the use or occupancy of the property or facilities operated by the Hospital Facilities or the activities conducted thereon that are imposed by any Governmental
Entity having jurisdiction over such property (collectively, “Permitted Encumbrances”). The Company has the unrestricted right to cause the issuance of the Units to the Contributor hereunder, and the Purchased Units when
issued to Contributor will be fully paid, non-assessable, and free and clear of Encumbrances, except as may exist pursuant to the Operating Agreement. Upon the release of liens by the agent administering HMA’s senior credit facility as required
pursuant to Section 4.2(i) and Section 7.5 hereof, each of the Subsidiaries will hold good and marketable fee simple title, good and marketable fee simple, or leasehold title or interest in the case of property held under lease, to the
material assets, real, personal or mixed, tangible and intangible, shown on its Most Recent Balance Sheet, subject only to Permitted Encumbrances. Upon the release of liens by the agent administering HMA’s senior credit facility as required
pursuant to Section 4.2(i) and Section 7.5 hereof, the Company will hold good and marketable fee simple title to the ownership interests of each Subsidiary free and clear of all Encumbrances, other than as may exist pursuant to the
Operating Agreement. 
  

	 	5.6	Governmental Authorizations. 

 Each Hospital
Facility is duly licensed in the state in which it operates. The Subsidiaries have all material Governmental Authorizations necessary to operate the Hospital Facilities as currently operated and all other material rights, privileges, franchises,
certificates and applications relating to the operation of the Hospital Facilities, all of which are in good standing and, to the Company’s knowledge, not subject to meritorious challenge. 
  

 11 

	 	5.7	Medicare and Medicaid Participation; Accreditation. 

 Each Hospital Facility is qualified for participation in the Medicare and Medicaid programs and has current and valid provider agreements with the Medicare and Medicaid programs. To the Company’s knowledge, and except as set forth on
Schedule 5.24, each Hospital Facility is in substantial compliance with the conditions of participation in the Medicare and Medicaid programs, and there are no investigations or failures of compliance (whether or not substantial) which might
reasonably be expected to affect such Hospital Facility’s continuing participation in such programs after Closing. The general acute care hospitals included among the Hospital Facilities are currently accredited by the Joint Commission on
Accreditation of Health Care Organizations. 
  

	 	5.8	Regulatory Compliance. 

 Each Hospital Facility is,
and for the previous three (3) years has been, in substantial compliance with all Laws of all Governmental Entities having jurisdiction over such Hospital Facility and the operations thereof, including all Laws relating to billing and all Laws
of or administered by the Department, the Medicare and Medicaid programs (including their respective fiscal intermediaries) and TRICARE, and such Hospital Facility has filed on a timely basis all reports, data and other information required to be
filed with such Governmental Entities. 
  

	 	5.9	Contracts. 

 Schedule 5.9 lists
certain commitments, contracts, agreements, real estate leases, capital leases and operating leases, relating exclusively to the operation of the Hospital Facilities (collectively, the “Contracts”). To Company’s
knowledge, each of the Material Contracts is included on Schedule 5.9 and constitutes the valid and legally binding obligation of the applicable Subsidiary or Hospital Facility and is enforceable against such Subsidiary or Hospital Facility
in accordance with its terms except as enforceability may be restricted, limited or delayed by applicable bankruptcy or other Laws affecting creditors’ rights generally and except as enforceability may be subject to general principles of
equity. Each of the Material Contracts constitutes the entire agreement of the respective parties thereto relating to the subject matter thereof. All obligations required to be performed under the terms of the Material Contracts by the applicable
Subsidiary or Hospital Facility have, to the Company’s knowledge, been performed, no act or omission has occurred or failed to occur which, with the giving of notice, the lapse of time or both would constitute a default by the applicable
Subsidiary, the Hospital Facility, or any HMA Affiliate under any of the Material Contracts that would have a Material Adverse Effect on a Subsidiary or a Hospital Facility.  
  

	 	5.10	Intellectual Property. 

 No Subsidiary or HMA
Affiliate has granted any outstanding licenses or other rights to any Intellectual Property in any way relating to the Hospital Facilities. No Subsidiary or HMA Affiliate is liable, nor has it made any contract whereby it may become liable, to any
Person for any future royalty or other compensation for the use of any Intellectual Property in any way relating to the Hospital Facilities. No Hospital Facility or HMA Affiliate directly or indirectly owning a Hospital Facility has
(a) materially infringed upon, misappropriated, or 

  

 12 

 
otherwise come into conflict with the Intellectual Property Rights of third parties or (b) received any charge, complaint, claim, demand, or notice
alleging the same. None of the rights of the Subsidiaries in, to or under any of their Intellectual Property will be materially adversely affected by consummation of the transactions contemplated hereby. No Subsidiary has received any notice or
claim of infringement of any Intellectual Property of any other Person. Each Subsidiary owns or has the unencumbered right to use pursuant to a valid and enforceable license, sublicense, agreement, or permission all material Intellectual Property
necessary for the operation of the Hospital Facility it operates as presently operated. 
  

	 	5.11	Insurance. 

 Each Subsidiary or its Affiliates
maintains, and for the past three (3) years has maintained, insurance policies (or self insurance as described below) covering the ownership and operations of the Hospital Facility it operates, and such insurance is comparable with that
maintained by others in the industry. Schedule 5.11 sets forth a description of self-insurance arrangements. All of such policies, or similar replacement policies, are in full force and effect with no premium arrearages. With respect to
self-insurance arrangements, the reserves set forth on the Financial Statements are adequate (and the reserves to be set forth in the books of each Subsidiary as of the Closing Date will be adequate and will have been prepared in accordance with
GAAP) to cover all liabilities with respect to such self-insurance arrangements. 
  

	 	5.12	Employee Benefit Plans. 

 Except for those plans or
arrangements set forth in Schedule 5.12, neither the Company nor any Subsidiary maintains any pension, profit sharing, deferred compensation, bonus, retirement, severance, incentive or other employee pension, health or welfare benefit plan,
agreement or arrangement (each, a “Plan”). The form of all Plans is in compliance with the applicable terms of ERISA, the Code, and any other applicable laws, and such Plans have been operated in material compliance with such
laws and the written Plan documents. All required contributions to, and premium payments on account of, each such Plan have been made on a timely basis. No Plan fiduciary nor any Plan has engaged in any transaction in violation of Section 406
of ERISA or any “prohibited transaction” (as defined in Section 4975(c)(1) of the Code) and there has been no “reportable event” (with respect to Section 4043 of ERISA) with respect to any Plan. Neither the Company nor
any Subsidiary has ever contributed to, or had an obligation to contribute to, any multiemployer plan (within the meaning of section 3(37) of ERISA) or any plan subject to Title IV of ERISA. The Company and each Subsidiary has at all times complied
and currently complies in all material respects with the applicable continuation requirements for its welfare benefit plans, including COBRA and any applicable state statutes mandating health insurance continuation coverage for employees.

  

	 	5.13	Employee Relations. 

 (a) All Persons employed at
the Hospital Facilities are the at-will employees of a Subsidiary; (b) there is no pending or, to the Company’s knowledge, threatened employee strike, picketing work stoppage or slowdown or labor dispute at the Hospital Facilities;
(c) no collective bargaining agreement exists or other labor union contract or is being negotiated by 

  

 13 

 
a Subsidiary, and to the Company’s knowledge, no employee employed at the Hospital Facilities is represented by a labor union; and (d) there are no
pending or, to the Company’s knowledge, threatened unfair labor practices claims, equal employment opportunity claims, human rights or civil rights complaints, wage and hour claims, unemployment compensation claims, workers’ compensation
claims, federal or state OSHA citations or the like with respect to a Hospital Facility. Since December 31, 2007, no officer’s employment with a Subsidiary has been terminated for any reason nor has any such officer notified a Subsidiary
or a Hospital Facility of his or her intention to resign or retire and, to the Company’s knowledge, no officers have such intentions. To the Company’s knowledge, no officer of a Subsidiary is bound by any contractual obligation that would
prohibit his or her ability to continue to be employed by the Subsidiary following the Closing. None of the Subsidiaries are liable for any payment to any trust or other fund or to any governmental or administrative authority with respect to
unemployment compensation benefits, Social Security, or other benefits for employees or former employees, except as arise in the Ordinary Course of Business. No Subsidiary has, within the three (3) years prior to the date of this Agreement,
taken any action that alone or combined with any other action of such Subsidiary or the Hospital Facility which it operates during any ninety (90) day period, could reasonably be construed as a “plant closing” or
“mass layoff” within the meaning of the WARN Act. 
  

	 	5.14	Litigation or Proceedings. 

 There are no claims,
actions, arbitrations, suits or hearings, grievances, or proceedings pending or, to the Company’s knowledge, threatened and, to the Company’s knowledge, there are no investigations pending or threatened, against (a) a Subsidiary, or
(b) a Hospital Facility, at law or in equity, either before or by any Governmental Entity. Without limiting the foregoing, there is no action, suit or proceeding, and to the Company’s knowledge, no inquiry or investigation by or before any
Governmental Entity pending or threatened against a Subsidiary or a Hospital Facility which: (i) seeks to prohibit, restrain or enjoin the execution and delivery of this Agreement; (ii) questions the validity or enforceability of this
Agreement; (iii) questions the power or authority of the Company, HMA LP, or HMA to carry out the transactions contemplated by, or to perform its obligations under, this Agreement; or (iv) would result in any change which would limit the
ability of the Company, HMA LP, or HMA to perform any of its obligations hereunder. 
  

	 	5.15	Medical Staff Matters. 

 HMA LP has heretofore made
available to Contributor true, correct and complete copies of the bylaws and rules and regulations of the medical staffs of the Hospital Facilities. Except as heretofore disclosed to Contributor to the extent permitted by Law and without waiving any
privilege of confidentiality, there are no pending or, to the Company’s knowledge, threatened disputes with applicants, staff members, former staff members, or health professional affiliates of any Hospital Facility, and all appeal periods in
respect of any medical staff member or applicant against whom an adverse action has been taken have expired. 
  

 14 

	 	5.16	Recent Events. 

 Except as set forth on Schedule
5.16, since December 31, 2007, the business of each of the Subsidiaries and the Hospital Facilities has been conducted in the Ordinary Course of Business and there has not been: 
 (a) any Material Adverse Effect; 
 (b) any material damage, destruction or loss (whether or not covered by insurance) adversely affecting the Hospital Facilities (as a whole) or any material portion of the Company or its Subsidiaries; 
 (c) any sale, assignment, transfer or disposition of any item of plant, property or equipment of a Hospital Facility having a value in excess of
One Hundred Thousand Dollars ($100,000.00), except sales in the Ordinary Course of Business; 
 (d) any material change in any
accounting principles or policies relating to or affecting a Hospital Facility; 
 (e) any material change in the conduct of the
business of a Hospital or a Subsidiary; 
 (f) any increase in the indebtedness with respect to a Subsidiary or Hospital Facility,
other than such as may occur in the Ordinary Course of Business; 
 (g) any change or revocation of a material tax election or
accounting method; 
 (h) any declaration, commitment, or setting aside or payment of any dividend or other distribution with respect
to any equity interests of the Company or prior owner of a Subsidiary, or entered into or performed any other transaction with, or for the benefit of, the Company or an Affiliate of the Company; or 
 (i) any contract by a Subsidiary to do any of the foregoing. 
 As of the date hereof, the working capital of each Subsidiary is sufficient to support the operations of each Subsidiary’s business in view of the size and scope of that business. 
  

	 	5.17	Environmental Matters. 

 To the Company’s
knowledge: (a) the Subsidiaries have complied in all material respects with all Environmental Laws with respect to the Hospital Facility which such Subsidiary operates, and such Hospital Facility is not in material violation of any
Environmental Laws; (b) no Subsidiary has with respect to the Hospital Facility which it operates released any Hazardous Substances in a manner that has violated any Environmental Laws; (c) none of the following exists at any property or
facility owned or operated by the Company and used in the operation of the Hospital Facilities: (i) any underground storage tanks, as defined in 42 U.S.C. §6991(10), whether empty, filled or partially filled with any substance, or
(ii) any unencapsulated asbestos or any material that contains any hydrated mineral silicate, including chrysolite, amosite, crocidolite, tremolite, anthophylite and/or 

  

 15 

 
actinolite, which would, in its present state, pose a danger to human health; (d) no Subsidiary has received with respect to the Hospital Facility which
it operates any request for information, notice or order alleging that it may be a potentially responsible party under any Environmental Laws for the investigation or remediation of a release or threatened release of Hazardous Substances; and
(e) there is no lien, notice, litigation or, to the knowledge of the Company, threat of litigation relating to an alleged unauthorized release of any Hazardous Substance on, about or beneath the property or facility owned or operated by a
Hospital Facility, or the migration of any Hazardous Substance to or from property adjoining or in the vicinity of such property, or alleging any obligation under Environmental Laws. The applicable Subsidiary holds each material Governmental
Authorization required under Environmental Laws in connection with the operation of the Hospital Facilities, all of which Governmental Authorizations are in good standing and, to the Company’s knowledge, not subject to meritorious challenge.

  

	 	5.18	Taxes. 

 The Company and the Subsidiaries have:
(i) filed on a timely basis or extended all Returns required to be filed by it with respect to all federal, state and local income, payroll, withholding, excise, sales, use, ad valorem, real and personal property, use and occupancy, business
and occupation, mercantile, real estate, capital stock and franchise or other taxes (all the foregoing, including penalties and interest thereon and estimated taxes, being collectively called “Taxes”); (ii) paid all
Taxes shown to have become due pursuant to such Returns; and (iii) paid all other Taxes for which a notice of assessment or demand for payment has been received (other than Taxes that are being contested in good faith and in accordance with
appropriate procedures). Neither the Company nor any Subsidiary has received any notice of any proposed assessments of Taxes against it, or of any proposed adjustments to any Returns filed by it. 
  

	 	5.19	Capitalization. 

 (a) All of the issued and
outstanding units of the Company have been duly authorized, are validly issued, fully paid and non-assessable, and are held of record and beneficially owned by HMA LP, free and clear of any restrictions on transfer, other than any restrictions under
the Securities Act and state securities laws or Permitted Encumbrances. 
 (b) There are no pre-emptive rights, right of first refusal, or
other similar rights with respect to any equity interest in the Company or any of the Subsidiaries. Upon the release of liens contemplated by Section 4.2(i), there will be no encumbrances on the ownership, transfer or voting of any equity
interest in either the Company or any of the Subsidiaries, or otherwise affecting the rights of any holder of the equity interest in such Company or the Subsidiaries. Except for the transactions contemplated hereunder, there is no contractual
obligation or provision in the organizational documents of the Company or of any of the Subsidiaries which obligates it to purchase, redeem or otherwise acquire, or make any payment (including any dividend or distribution) in respect of any equity
interest in such Company or any of the Subsidiaries. Neither the Company nor any of the Subsidiaries owns any equity interests in, and is not a party to any contractual obligation to purchase any equity interests in, any Person, and there is no
contractual obligation of the Company or any of the Subsidiaries which obligates it to provide funds to, or make any investment (in the form of a 

  

 16 

 
loan, capital contribution or otherwise) in, any Person. There are no existing rights with respect to registration under any Securities Act of any equity
interest of the Company or the Subsidiaries. There are no securities convertible into or exchangeable for equity interests in either the Company or any of the Subsidiaries. 
  

	 	5.20	Debt. 

 Except as set forth in the financial
statements, Company and the Subsidiaries have no liabilities or indebtedness other than liabilities that have been incurred subsequent to December 31, 2007 in the Ordinary Course of Business. 
  

	 	5.21	Accounts Receivable. 

 All accounts and notes
receivable reflected on the Financial Statements and all accounts and notes receivable arising subsequent to the financial statements on or prior to the Closing Date, have arisen or will arise in the Ordinary Course of Business, represent or will
represent valid, binding, and enforceable obligations to the Subsidiary. 
  

	 	5.22	Payor Participation. 

 All of the Subsidiaries
(i) are certified for participation and reimbursement under Titles XVIII and XIX of the Social Security Act (the “Medicare and Medicaid Programs”) and the TRICARE Program (the Medicare and Medicaid Programs, the TRICARE Program and
such other similar Federal, State or local reimbursement or governmental programs for which the Subsidiaries are eligible (including “Federal Health Care Programs” as defined in 42 U.S.C. §1320a-7b(f)), are referred to collectively as
the “Governmental Programs”); (ii) currently participate in the Governmental Programs pursuant to provider agreements (the “Provider Agreements”) and receive payments from private, nongovernmental
programs (including any private insurance program) (such private, nongovernmental programs are referred to collectively as “Private Programs”); (iii) are in good standing with the Governmental Programs and Private
Programs; and (iv) have no outstanding overpayments or refunds due to Governmental Programs or Private Programs, individually in excess of $75,000.00, or in the aggregate in excess of $500,000.00. The Subsidiaries have timely filed all claims
and reports required to be filed prior to the date hereof with respect to the Governmental Programs and Private Programs, all fiscal intermediaries and/or carriers and other insurance carriers, and all such claims and reports are complete and
accurate in all material respects. Schedule 5.22 sets for a correct and complete list of all additional document requests made by Governmental Programs or Private Programs to which the Subsidiaries have not responded, and all denials of
claims currently being appealed by the Subsidiaries. The Subsidiaries have paid or caused to be paid all known and undisputed refunds, overpayments, discounts, or adjustments that have become due pursuant to such claims and reports, have not claimed
or received reimbursements from Governmental Programs or Private Programs in excess of amounts permitted by applicable Law, and are not subject to any rights of offset and, to the Company’s knowledge, have no liability under any Governmental
Program or Private Program other than any refund, overpayment, discount, or adjustment that occurs in the Ordinary Course of Business. Except as disclosed in Schedule 5.22, since December 31, 2007, no Subsidiary has been audited,
surveyed, or otherwise examined in connection with any Governmental Program or Private Program. 
  

 17 

	 	5.23	No Broker’s Fees. 

 Neither HMA LP nor any of
its Affiliates has employed any investment banker, finder, broker, agent or other intermediary in connection with the negotiation or consummation of this Agreement or of any of the transactions contemplated hereby as to which Contributor or any of
its respective Affiliates may have any liability for broker’s, finder’s, financial advisory or similar fees. 
  

	 	5.24	Healthcare Matters. 

 (a) To Company’s
knowledge, no Subsidiary is in violation of the applicable requirements of the standards for Privacy or Security of Individually Identifiable Health Information, which were promulgated pursuant to the Health Insurance Portability and Accountability
Act of 1996 (“HIPAA”) and the implementing regulations thereunder. 
 (b) Except as set forth on Schedule 5.24, no
Subsidiary, nor to the Company’s knowledge, any director, officer or employee of a Subsidiary or, to the Company’s knowledge, any other Party (including, without limitation, any agent of a Subsidiary) to any contract with a Subsidiary who
furnishes services or supplies that may be reimbursed in whole or in part under any Governmental Program. 
 (i) Has been
convicted or charged with any violation of any Law related to any Governmental Program; 
 (ii) Has been convicted of, charged
with, or investigated for any violation of Law related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial misconduct, obstruction of an investigation, or controlled substances; or 
 (iii) Is excluded, suspended or debarred from participation, or is otherwise ineligible to participate, in any Governmental Program or has
committed any violation of Law that is reasonably expected to serve as the basis for any such exclusion, suspension, debarment or other ineligibility. 
  

	 	5.25	Affiliate Transactions. 

 Schedule 5.25 lists
all intercompany transactions between the Subsidiaries and their Affiliates, or the Company and its Affiliates, entered into in the past twelve (12) months. Except as set forth on Schedule 5.25, no officer or director or Affiliate of a
Subsidiary or the Company or, to Company’s knowledge, any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns any material beneficial interest, is a party or has
been a party within the prior three (3) years to any contractual obligation, commitment or transaction with the Company, or their Subsidiaries or has any interest in any property used by the Company or the Subsidiaries. 
  

 18 

	 	5.26	Disclosure. 

 Neither this Article V, the Exhibits
or Schedules attached hereto or any of the written statements, documents, certificates supplied to Contributor or its Affiliates by or on behalf of the Company or the Subsidiaries in connection with the transactions contemplated hereby contain any
untrue statement of a material fact or omit a material fact necessary to make each statement contained herein or therein, in light of the circumstances in which they were made, not misleading in any material respect. 
  

	 	5.27	Disclaimer of Other Representations and Warranties. 

 Except as expressly set forth in this Article V, neither HMA, HMA LP, the Company, the Subsidiaries, nor any Affiliates of HMA, HMA LP, the Company or the Subsidiaries make any representation or warranty, express or implied, at law or in
equity, in respect of any of their assets, liabilities or operations. Neither HMA, HMA LP, the Company, the Subsidiaries, nor any Affiliates of HMA LP, the Company or the Subsidiaries make any representation or warranty about any due diligence
materials provided to the Contributor. Contributor hereby acknowledges and agrees that, except to the extent specifically set forth in this Article V, Contributor is acquiring the PPM assets on an “as-is, where-is” basis. 
 ARTICLE VI 
 REPRESENTATIONS AND
WARRANTIES OF CONTRIBUTOR 
 As of the date hereof, Contributor and Novant hereby jointly represent and warrant to the Company, HMA LP,
and HMA as follows: 
  

	 	6.1	Capacity and Authority of Contributor. 

 Contributor
and Novant are each non-profit corporations organized, validly existing and in good standing under the laws of the State of North Carolina. Contributor and Novant each has all requisite power and authority to enter into this Agreement and the other
documents contemplated hereby, and to perform their respective obligations hereunder and thereunder. Contributor’s and Novant’s execution, delivery and performance of this Agreement and the other documents contemplated hereby, and the
consummation by Contributor of the transactions contemplated hereby and thereby, are within Contributor’s and Novant’s powers respectively, and have been duly authorized by all appropriate action. 
  

	 	6.2	Consents; Absence of Conflicts with Other Agreements, Etc. 

 Contributor’s and Novant’s execution, delivery and performance of this Agreement and the other documents contemplated hereby, and the consummation by Contributor and Novant of the transactions contemplated hereby and thereby:
(a) do not require any approval or consent of, or declaration or filing with, any Governmental Entity, except for Governmental Authorizations expressly provided for by this Agreement or notices of the transaction to Governmental Entities
regulating certificate of need matters; and (b) will not violate, conflict with or constitute on the part of Contributor or Novant a breach of or a default under their respective Certificates of Incorporation or Bylaws, any existing Law or
judgment of any Governmental Entity, or any agreement, arrangement, indenture, mortgage or lease to which Contributor, Novant or their respective Affiliates are subject. 
  

 19 

	 	6.3	Binding Agreements. 

 This Agreement and any other
agreements or instruments to which Contributor or Novant will become a party pursuant hereto are and will constitute the valid and legally binding obligations of Contributor or Novant, as the case may be, and are and will be enforceable against
Contributor or Novant, as applicable, in accordance with the respective terms hereof or thereof, except as enforceability may be restricted, limited or delayed by applicable bankruptcy or other Laws affecting creditors’ rights generally and
except as enforceability may be subject to general principles of equity. 
  

	 	6.4	Litigation and Proceedings. 

 There is no action,
suit, proceeding, inquiry or investigation by or before any Governmental Entity pending or, to Contributor’s or Novant’s knowledge, threatened against Contributor or Novant which: (a) seeks to prohibit, restrain or enjoin the
execution and delivery of this Agreement; (b) questions the validity or enforceability of this Agreement; (c) questions the power or authority of Contributor or Novant to carry out the transactions contemplated by, or to perform its
obligations under, this Agreement; or (d) would result in any change which would limit the ability of Contributor or Novant to perform any of their respective obligations hereunder. 
  

	 	6.5	Financing. 

 Contributor now has and will have at
Closing (by means of cash, cash equivalents or presently existing credit facilities), the funds necessary to pay the Purchase Price and to consummate the transactions contemplated hereby in accordance with the terms hereof. 
  

	 	6.6	Regulatory Compliance. 

 Contributor, Novant, their
respective Affiliates and their existing facilities and operations are in substantial compliance with all Laws of all Governmental Entities having jurisdiction over Contributor, Novant, their respective Affiliates, their respective facilities and
the operation thereof, including all Laws relating to billing and all Laws of or administered by any state regulatory authorities, the Medicare and Medicaid programs (including their respective fiscal intermediaries) and TRICARE, and have filed on a
timely basis all reports, data and other information required to be filed with such Governmental Entities. 
  

	 	6.7	Solvency. 

 Contributor and Novant are not insolvent
nor will either of them be rendered insolvent as a result of any of the transactions contemplated by this Agreement. For purposes hereof, the term “solvency” means that: (a) the fair saleable value of Contributor’s or
Novant’s (as the case may be) tangible assets is in excess of the total amount of its liabilities (including for purposes of this definition all liabilities, whether or not reflected on a balance sheet prepared in accordance with GAAP, and
whether direct or indirect, fixed or contingent, secured or 

  

 20 

 
unsecured, and disputed or undisputed); (b) Contributor or Novant (as the case may be) is able to pay its debts or obligations in the ordinary course as
they mature; and (c) Contributor or Novant (as the case may be) has capital sufficient to carry on its businesses and all businesses which it is about to engage. 
  

	 	6.8	Knowledge of Contributor or Novant. 

 Neither
Contributor, Novant, nor any of their respective Affiliates has knowledge of any fact, condition or circumstance concerning HMA, HMA LP, the Company, the Subsidiaries or any of their Affiliates which constitutes a breach of any representation,
warranty or covenant of HMA, HMA LP or the Company set forth in this Agreement, or any document, instrument or agreement delivered pursuant hereto or in connection herewith which is not properly disclosed herein, therein, in the Schedules attached
hereto or in the Data Room. 
  

	 	6.9	Investment; Non-Reliance. 

 Contributor is not
acquiring the Purchased Units with a view to or for sale in connection with any distribution thereof within the meaning of the Securities Act. Contributor and Novant understand that the Purchased Units have not been registered under the Securities
Act or any state securities laws and are being transferred to Contributor, in part, in reliance on the foregoing representation. Contributor and Novant each acknowledge that it is a sophisticated investor and has such knowledge and experience in
financial and business matters as to be capable of evaluating independently the merits, risks and suitability of entering into this Agreement and the transactions contemplated hereby. Contributor and Novant are dealing with the HMA LP and the
Company on a professional arm’s-length basis and have expertise in assessing tax, legal, jurisdictional, regulatory and other risks associated with entering into this Agreement and the transactions contemplated hereby. Contributor and Novant
further acknowledge that they have been, and will continue to be, solely responsible for making their own independent appraisal of and investigations into, and in connection with this Agreement and the transactions contemplated hereby it has made
such an independent appraisal of and investigation into, the financial condition, creditworthiness, affairs, status and nature of the Company, the Subsidiaries and the Hospital Facilities and they have not relied, and will not hereafter rely, on
HMA, HMA LP, the Company, the Subsidiaries or any Affiliate or representative of HMA, HMA LP, the Company or the Subsidiaries or any other third party with respect to such matters or to update them with respect to such matters or to keep such
matters under review on its behalf. Contributor and Novant agree that they are not relying on any financial data, statements, claims, projections, forecasts or other information other than as expressly set forth in Article V in entering into
this Agreement or consummating the transactions contemplated hereby. 
  

	 	6.10	No Broker’s Fees. 

 Contributor and Novant have
engaged Shattuck Hammond Partners to act as their investment banker in connection with the negotiation and consummation of this Agreement and the transactions contemplated hereby. Except as set forth in the preceding sentence, neither Contributor,
Novant, nor any of their respective Affiliates have employed any investment banker, finder, broker, agent or other intermediary in connection with the 

  

 21 

 
negotiation or consummation of this Agreement or of any of the transactions contemplated hereby as to which the Company, HMA, HMA LP, the Subsidiaries or any
of their respective Affiliates may have any liability for broker’s, finder’s, financial advisory or similar fees. Contributor and Novant shall be solely responsible for any the payment of any fees or expenses that may be or become payable
to Shattuck Hammond Partners as a result of the transactions contemplated hereby. 
 ARTICLE VII 
 COVENANTS AND AGREEMENTS 
  

	 	7.1	Transferred Physicians. 

 (a) Effective as of
the date hereof or as soon thereafter as practicable, each Subsidiary (or its Affiliates, if applicable) shall give notice of termination, without cause, of the employment of each of the physicians (i) employed by such Subsidiary or the
Hospital Facility operated by such Subsidiary or (ii) who performs services at such Hospital Facility (but is employed by an Affiliate of HMA LP) (each, a “Transferred Physician”). Said notice shall be given in a manner,
and provide for an effective date of termination, as set forth in Section 7.1(b) hereof. Contributor or its Affiliates will offer to hire and employ each such Transferred Physician at the same or better rate of compensation and with
substantially similar benefits as was paid or provided to such Transferred Physician immediately preceding the Closing, effective as of the date of termination of the Transferred Physician’s employment. Following their employment with
Contributor or its Affiliates, as the case may be, Contributor or its Affiliate shall permit each such Transferred Physician who accepts employment with Contributor or its Affiliates to maintain his or her medical staff privileges and practices at
the Hospital Facilities at which he or she maintained such privileges and practices prior to his or her employment with Contributor or its Affiliate. Following the Closing, and until January 1, 2011, no Transferred Physician who accepts
employment with Contributor or its Affiliates shall be relocated without the mutual consent of such Transferred Physician, HMA LP and Contributor or its Affiliate. 
 (b) The notice of termination referenced in Section 7.1(a) shall provide for termination of the Transferred Physician’s employment one hundred twenty (120) days after the notice is delivered to
the physician; provided, however, if the employment agreement of the Transferred Physician requires more than one hundred twenty (120) days notice to terminate employment without cause, the Subsidiary (or its Affiliates, as applicable) shall
either (i) give the requisite notice period specified in the employment agreement, or (b) secure an agreement with the Transferred Physician that his or her employment shall terminate without cause on a date which is one hundred twenty
(120) days from the date hereof. All parties recognize hereto that the Contributor will require a period of one hundred twenty (120) days to make an efficient transition of the Transferred Physician to Contributor or its Affiliates, and
accordingly have agreed that the Subsidiary or its Affiliates will give one hundred twenty (120) days notice of termination of employment without cause, even if the Transferred Physician’s employment agreement could be terminated without
cause on less notice. The period commencing on the date notices of termination are given, and the termination date specified therein, is referred to in this Agreement as the “Transition Period.” 
  

 22 

 (c) HMA shall provide professional liability coverage, in the same amounts that it was providing
immediately prior to the date hereof, to each Transferred Physician for acts occurring prior to the date the Transferred Physician becomes employed by Contributor or its Affiliates. HMA shall provide proof of said insurance for prior acts to
Contributor on or before the date Transferred Physician becomes employed by Contributor or its Affiliates. 
 (d) Neither Contributor
nor any of Contributor’s Affiliates shall be responsible for or liable for any obligations or liabilities of the respective medical practices or operations of the Transferred Physicians which accrue, or arise out of acts performed or contracts
entered into, before the date of the Transferred Physician becomes an employee of Contributor or its Affiliates, and HMA shall indemnify and hold Contributor and its Affiliates harmless with respect to any expense, costs, damage, claim or liability
with respect to the same. 
 (e) Contributor or its Affiliates will also offer to hire and employ each non-physician employee of a
Subsidiary or an Affiliate of HMA whose primary employment duties relate to the practices maintained by the Transferred Physicians, subject to the employee’s meeting and complying with the standard employment policies of Contributor’s
Affiliates, in each case at the same rate of compensation and with substantially similar benefits as was paid or provided to such employees immediately preceding the Closing, effective as of the date of employment of the applicable Transferred
Physician. Each Subsidiary (or its Affiliates, if applicable), will exercise good-faith efforts to encourage the non-physician employees who provide services at the medical practice of those Transferred Physicians who become employees of Contributor
or its Affiliates to also become an employee of Contributor or its Affiliates. Each Subsidiary (or its Affiliates, if applicable) will cooperate to effectuate the efficient transfer of the aforesaid non-physician employees to Contributor or its
Affiliates. Any non-physician employee of a Subsidiary or an Affiliate of HMA whose primary employment duties relate to the practices maintained by the Transferred Physicians, and who accepts employment with Contributor or its Affiliates is referred
to herein an a “Transferred Employee”) 
 (f) Between the date hereof and the date the Transferred Physician
becomes an employee of Contributor or its Affiliates, each Subsidiary (or its Affiliates, as applicable) will operate the physician practice in the Ordinary Course of Business. 
 (g) Nothing contained in this Section 7.1 will limit Contributor’s management prerogatives with respect to the Transferred Physicians,
or create a right of continued employment for any Transferred Physician or group of employees or create any right of action by any Transferred Physician, any group of Transferred Physicians or any other third party, either jointly or severally.

 (h) Notwithstanding anything in this Agreement to the contrary, from and after the Closing, HMA LP and Contributor will each comply
in all respects with the group health plan continuation coverage requirements of COBRA. 
 (i) The Transferred Physicians and the
Transferred Employees shall not accrue or earn any benefits under any Plan sponsored by HMA LP or its ERISA Affiliates on and after the date on which they are employed by Contributor or its Affiliates. Upon the 

  

 23 

 
commencement of employment with Contributor or an Affiliate, Contributor will assume and agree to be responsible for all accrued vacation time benefits, if
any, owed to the Transferred Physicians and the Transferred Employee as of the date employment with HMA LP or an Affiliate ceases, and HMA LP will, within ten (10) days following the commencement of employment, pay to Contributor an amount
equal to the accrued vacation time so assumed. If required by law or by the terms of any employment agreement, in lieu of Contributor assuming accrued vacation time and HMA LP making payment to Contributor for such assumption, HMA LP will instead
pay the amount of the accrued vacation time to the Transferred Physicians or Transferred Employees who are subject to such laws or employment agreements. 
 (j) HMA LP hereby covenants and agrees to reimburse Contributor for Physician Losses in the amounts and at the times expressly set forth in this Section 7.1(j). HMA LP shall reimburse Contributor for
Physician Losses incurred in calendar years 2008, 2009 and 2010, as set forth in the table below. In no event shall HMA LP’s aggregate liability for Physician Losses exceed $4,000,000 for any calendar year or $12,000,000 in the aggregate.
“Physician Losses” means, with respect the Transferred Physicians, the net loss as reflected on the income statement included within the Transferred Physician Financials for the applicable calendar year, as adjusted to
reflect a reduction for any amounts allocated by Contributor to Transferred Physicians (as management fees or otherwise) in excess of 12% of net operating revenue of the Transferred Physician Practices for such calendar year. 
  

							
	 	 	 2008
	 	 2009
	 	 2010

	Reimbursement by HMA LP to Contributor (as percentage of total Physician Losses for the year indicated)	 	50%	 	50%	 	50%
				
	Maximum reimbursement amount payable by HMA LP for calendar year Physician Losses	 	$4 million	 	$4 million	 	$4 million
				
	Reimbursement Payment Due Date	 	 50% paid on or prior to May 1, 2009, or within ten (10) business days following determination of Physician Losses pursuant to
subsection (f), below, if later than May 1, 2009.
  
 50% paid
on or prior to May 1, 2010, or within ten (10) business days following determination of Physician Losses pursuant to subsection (f), below, if later than May 1, 2010
	 	100% paid on or prior to May 1, 2010 or within ten (10) business days following determination of Physician Losses pursuant to subsection (f), below, if later than May 1,
2010	 	100% paid on or prior to May 1, 2011 or within ten (10) business days following determination of Physician Losses pursuant to subsection (f), below, if later than May 1,
2011

  

 24 

 (k) HMA LP’s obligation to reimburse Contributor for Physician Losses occurring during 2008
will be reduced by the amount of any Physician Losses incurred by HMA or any of its Affiliates during the Transition Period (“Transition Period Losses”). No later than November 1, 2008 (or, with respect to any
Transferred Physician who accepts employment with Contributor after August 1, 2008, within ninety (90) days following commencement of employment), HMA will deliver to Contributor an internally prepared balance sheet and income statement
with respect to the operation of the Transferred Physician Practices (as defined below) during the Transition Period (the “Transition Period Financials”), together with its calculation of Transition Period Losses. The
Transition Period Financials will be prepared by HMA in accordance with GAAP, and will conform to the standards described in Section 5.4. In connection therewith, HMA will provide to Contributor upon request copies of all of the work papers
utilized or prepared in the preparation of the Transition Period Financials and will cooperate fully and completely in responding to reasonable questions and requests for information submitted by Contributor in connection with its review of the
Transition Period Financials, and will provide Contributor, upon reasonable advance notice, with full reasonable access to all books and records of HMA and its Affiliates to the extent related to the preparation of the Transition Period Financials.

 (l) No later than March 1 2009, 2010, and 2011, Contributor will deliver to HMA LP an internally prepared balance sheet and
income statement with respect to the operation of the practices of the Transferred Physicians (the “Transferred Physician Practices”) as of and for the immediately preceding calendar year (the “Transferred
Physician Financials”), together with its calculation of Physician Losses for such calendar year. Contributor’s calculation of Physician Losses for 2008 will give effect to the credit for Transition Period Losses pursuant to
subsection (k). The Transferred Physician Financials will be prepared by Contributor in accordance with GAAP, and will conform to the standards described in Section 5.4. In connection therewith, Contributor will provide to HMA LP upon request
copies of all of the work papers utilized or prepared in the preparation of the Transferred 

  

 25 

 
Physician Financials and will cooperate fully and completely in responding to reasonable questions and requests for information submitted by HMA LP in
connection with its review of the Transferred Physician Financials, and will provide HMA LP upon reasonable advance notice, with full reasonable access to all books and records of Contributor and its Affiliates to the extent related to the
preparation of the Transferred Physician Financials. 
 (m) If HMA LP disputes any entry on the Transferred Physician Financials that
materially affects the calculation of Physician Losses, or if Contributor disputes any entry on the Transition Period Financials that materially affects the calculation of Transition Period Losses, the disputing party (the “Disputing
Party”) shall notify the other party (the “Delivering Party”) of such dispute in writing within forty-five (45) calendar days after the Delivering Party’s receipt of the Transferred Physician Financials
or the Transition Period Financials, and the delivery to the Disputing Party of such additional information it requests in accordance with this Section, provided the request is submitted to the Delivering Party within thirty (30) days of the
Disputing Party’s receipt of the Transferred Physician Financials or the Transition Period Financials. If the parties cannot resolve such dispute within sixty (60) calendar days after the Disputing Party notifies the Delivering Party in
writing of such dispute, then the parties will submit the dispute to an independent accounting firm jointly selected by them for review and resolution. If the parties are unable to choose a mutually acceptable accounting firm to resolve the dispute,
the dispute will be submitted to the national office of Deloitte & Touche for resolution of the dispute. The accounting firm chosen to resolve the dispute is herein referred to as the “Accounting Firm.” The
submission of the dispute to the Accounting Firm shall be accompanied by a statement from each party setting forth the proposed calculation of the Physician Losses or the Transition Period Losses, together with such additional information that each
party desires to submit to the Accounting Firm in support of the Physician Losses or the Transition Period Losses. HMA LP and Contributor will use reasonable efforts to cause the Accounting Firm to render its decision as soon as practicable within
the date the dispute is submitted to it, including without limitation by promptly complying with all reasonable requests by the Accounting Firm for information, books, records, or similar items. The Accounting Firm will make a final determination as
soon as practicable, which determination shall be in writing and submitted to both HMA LP and the Contributor. The decision of the Accounting Firm shall be conclusive and binding as between HMA LP and the Contributor, and the costs of such review
shall be shared equally by HMA LP and the Contributor. HMA L.P. will pay the undisputed portion of any Physician Losses that it is required to reimburse on or prior to May 1, 2009, 2010, or 2011, as described above. Any disputed amounts, plus
interest at the rate of eight percent (8%) per annum from the May 1 date that the payment would have been due had HMA LP not initiated the dispute, shall be paid within ten (10) days of the date of the decision of the Accounting Firm.

 (n) Effective upon such dates on which a Transferred Physician accepts employment with Contributor, and in consideration of the
payment made at the Closing and allocated to the PPM Assets, HMA LP will cause its applicable Affiliate 

  

 26 

 
to transfer and assign to Contributor, or its designated Affiliate, (i) all of the equipment, furniture and furnishings, including medical equipment,
computers, and other data processing equipment, and related software (to the extent transferable) owned by the applicable Affiliates of HMA LP and used exclusively in the applicable Transferred Physician Practices, and (ii) all contracts and
agreements, including leases, to which the applicable Affiliates of HMA LP are a party and which relate exclusively to the applicable Transferred Physician Practices (collectively, the “PPM Assets”); provided, however, in the
event a lease agreement or other contract is with a Transferred Physician, or an Affiliate or family member of the Transferred Physician, and is reasonably determined by Contributor or its Affiliate to not be on fair market value terms or to give
rise to a reasonable regulatory concern, Contributor or its Affiliate shall have the option to not accept assignment of said contract and to negotiate a new contract with the Transferred Physician, his Affiliate or family member. Upon the transfer
of the PPM Assets, HMA LP will cause to be delivered to Contributor, or any Affiliate designated by it, bills of sale and instruments of assignment as reasonably necessary to reflect the transfer and assignment of the PPM Assets to Contributor, or
its designated Affiliate, and Contributor or its designated Affiliate shall agree to assume and be responsible for the PPM Assets from and after the date of transfer. Notwithstanding the foregoing, the PPM Assets will not include (i) email
software, server client access licenses, Microsoft SQL licenses, Microsoft SQL client access licenses, and Symantec antivirus server and client licenses; (ii) IBM AS400 servers; or (iii) national or regional contracts of HMA LP or any
Affiliate which are made available to a Transferred Physician Practice by virtue of it or a related entity being an affiliate of HMA LP or its Affiliates. In the event substantially all of the Transferred Physicians do not accept employment with
Contributor or its Affiliates, the parties will negotiate in good faith to re-allocate the Purchase Price to reflect the fair market value of the PPM Assets acquired by Contributor or its Affiliates. 
  

	 	7.2	Confidentiality. 

 Subsequent to Closing, any party
hereto in receipt of any Confidential Information (each, the “Receiving Party”) from any other party hereto or its Affiliates (each, the “Disclosing Party”) will, and will use its commercially
reasonable efforts to cause its Affiliates, employees, representatives and agents to, hold in strict confidence such Confidential Information, unless compelled to disclose the same by judicial or administrative process or, in the opinion of counsel,
by other requirements of Law; provided, however, that in either such case the Receiving Party will provide the Disclosing Party with prompt prior notice thereof so that the Disclosing Party may seek a protective order or other appropriate remedy
and/or waive compliance with the provisions of this Section 7.2. In the event that such protective order or other remedy is not obtained, or the Disclosing Party waives compliance with the provisions hereof, the Receiving Party will furnish
only that portion of Confidential Information which, in the opinion of the Receiving Party’s counsel, is required, and the Receiving Party will exercise best efforts to obtain reliable assurance that confidential treatment will be accorded such
of the disclosed Confidential Information as the Disclosing Party so designates. The Receiving Party will not otherwise disclose Confidential Information to any Person other than Affiliates, employees, or representatives and agents of 

  

 27 

 
the Receiving Party, except with the consent of the Disclosing Party. The Receiving Party’s obligations under this Section 7.2 will survive
Closing, and at any time upon request of the Disclosing Party, the Receiving Party will promptly return or cause to be returned to the Disclosing Party all documents and all copies thereof held by the Receiving Party, or its Affiliates, employees,
representatives or agents, containing Confidential Information, including notes, memoranda and other materials, in all media, except such as may reasonably be needed by either party to support claims or potential claims with respect to an alleged
breach of the other party’s covenants or warranties hereunder. The Receiving Party recognizes that any breach of the provisions of this Section 7.2 would result in irreparable harm to the Disclosing Party and its Affiliates and, therefore,
that the Disclosing Party will be entitled to an injunction to prohibit any such breach or anticipated breach, without the necessity of posting a bond, cash or otherwise, in addition to all of its other legal and equitable remedies. 
  

	 	7.3	Cooperation. 

 For a period of five (5) years
after Closing, upon reasonable notice, during normal business hours and at the expense of the requesting party, each party will, to the extent necessary to facilitate concluding the transactions contemplated hereby, audits, compliance with Laws and
the requirements of Governmental Entities and the prosecution or defense of third party claims, and to the extent that it does not materially interfere with its business operations: (i) execute or cause to be executed documents and instruments
reasonably requested by the other and relating to the transactions contemplated hereby; (ii) afford to the representatives of the other, including its counsel and accountants, reasonable access to such records and information as may be
available relating to the Company, the Subsidiaries and the Hospital Facilities for periods prior to Closing, and reasonable access to its officers and employees; and (iii) cooperate, and use its commercially reasonable efforts to cause its
officers and employees to cooperate, with the other and with appropriate Governmental Entities and other third parties, in furnishing information, evidence, testimony and other reasonable assistance. 
  

	 	7.4	Taxes. 

 (a) HMA will pay (a) all taxes
of the Subsidiaries for all taxable periods ending on or before the Closing Date; (b) any and all taxes of any Person imposed on a Subsidiary as a transferee or successor, by contract, or otherwise for all taxable periods ending on or before
the Closing Date, including the Pre-Closing Tax Period; and (c) all taxes of the Subsidiaries for all taxable periods ending after the Closing Date for the portion, through the end of the Closing Date, for any taxable period that includes (but
does not end on) the Closing Date (the “Pre-Closing Tax Period”). Any withholding tax for which the Subsidiaries are liable with respect to a payment made on or before the Closing Date shall be considered subject to the
preceding sentence. 
 (b) In the case of any taxable period that includes (but does not end on) the Closing Date (a
“Straddle Period”), the amount of any taxes of a Subsidiary will be pro-rated and determined based on the amount of the tax for the entire taxable period multiplied by a fraction, the numerator of which is the number of days
in the taxable period ending on the Closing Date and the denominator is the number of days occurring in such Straddle Period. 
  

 28 

 (c) Neither the Company, any Subsidiary, nor Contributor or its Affiliates shall have any
liability for taxes directly or indirectly resulting from (i) the conversion of each Subsidiary to a limited liability company prior to the Closing, (ii) the transfer of the Subsidiaries to the Company, and (iii) the distribution of
Contributor’s capital contribution from the Company to HMA LP as described in the LLC Agreement, (including but not limited to any successor liability with respect to such taxes), and HMA shall indemnify and hold harmless Contributor, the
Company, and any such Subsidiary from and against the tax liability as a result of said conversion. 
  

	 	7.5	Release of Encumbrances. 

 HMA and HMA LP jointly
and severally covenant and agree to secure from the agent administering HMA’s secured credit facility the full and effective release of any Encumbrances in favor of such agent or the lenders under the secured credit facility with respect to the
Hospital Facilities, assets utilized by the Company or the Hospital Facilities, and shares or other ownership interests in the Company and in the Subsidiaries within five (5) days following the date hereof, and to cause the same to be filed in
the appropriate public offices within ten (10) days thereafter. HMA and HMA LP further covenant and agree to secure, within sixty (60) days following the date hereof, the full and effective release of any other Encumbrances with respect to
the Hospital Facilities or assets utilized by them that are not Permitted Encumbrances, and promptly cause the same to be filed in all appropriate public offices. HMA and/or HMA LP will deliver evidence of each release required under this Section to
Contributor within ten (10) days of the date it is obtained and where applicable, recorded. 
 ARTICLE VIII 
 INDEMNIFICATION 
  

	 	8.1	Indemnification by HMA LP and HMA. 

 (a) From
and after the Closing to the extent provided by this Article VIII, and except for matters as to which Contributor is obligated to indemnify the Company, HMA LP, and HMA as provided by Section 8.2, HMA LP, and HMA for themselves and their
respective successors and permitted assigns, hereby jointly and severally indemnify and hold harmless Contributor and its officers, directors, employees, agents and Affiliates (“Contributor Indemnified Parties”) against any
Losses suffered by the Company or a Subsidiary (to the extent of the Contributor’s percentage ownership interest in the Company, or its indirect percentage ownership interest in a Subsidiary), or by the Contributor Indemnified Parties, caused
by, arising out of or resulting from: 
 (i) the breach of any representation or warranty of the Company or HMA LP contained
in this Agreement; 
 (ii) the breach or nonfulfillment of any agreement or covenant of the Company or HMA LP contained in
this Agreement; or 
  

 29 

 (iii) the operation of the Transferred Physician Practices or the PPM Assets prior to the
date on which a Transferred Physician accepts employment with Contributor or an Affiliate of Contributor. 
 Notwithstanding the foregoing,
neither HMA LP or HMA will have any indemnification obligation under clause (a)(i) or (a)(ii) of the preceding paragraph unless and until the aggregate amount of all of such Losses exceeds $500,000 (the “Threshold Amount”)
(after which time the entire amount of such Losses occurring hereunder will be indemnifiable), and provided that no claims for indemnification under clause (a)(i) or (a)(ii) of the preceding paragraph will be asserted (regardless of whether the
Threshold Amount has been satisfied) unless the amount of any such claim exceeds $10,000. The Company and HMA LP shall be entitled to set off any amount owed to the Company, HMA LP or their respective Affiliates by Contributor or its Affiliates
against any amount that is otherwise due Contributor hereunder. In no event shall the Company’s and HMA LP’s collective, aggregate liability for any Losses of the Contributor Indemnified Parties under this Section exceed (i) fifty
percent (50%) of the portion of the Purchase Price allocated to a Subsidiary with respect to claims for indemnification related to one or more Subsidiaries; (ii) fifty percent (50%) of the entire Purchase Price with respect to claims
for indemnification related to the Company as a whole; (iii) 100% of the Purchase Price for indemnification claims arising under Section 8.1(a)(iii), 7.5(c), or breach of the representations and warranties set forth in Sections 5.22 or
5.24. 
  

	 	8.2	Indemnification by Contributor. 

 From and after the
Closing to the extent provided by this Article VIII, and except for matters as to which the Company, HMA LP, or HMA are obligated to indemnify the Contributor Indemnified Parties as provided by Section 8.1, Contributor and Novant, for
themselves and their successors and permitted assigns, hereby jointly and severally indemnify and hold harmless the Company, HMA LP and their respective officers, directors, managers, employees, agents and Affiliates (the “HMA Indemnified
Parties”) against any Losses suffered by the HMA Indemnified Parties caused by, arising out of or resulting from: 
 (a)
the breach of any representation or warranty of Contributor or Novant contained in this Agreement; 
 (b) the breach or
nonfulfillment of any agreement or covenant of Contributor or Novant contained in this Agreement; or 
 (c) the operation of the
Transferred Physician Practices or the PPM Assets on or after the date on which a Transferred Physician accepts employment with Contributor or an Affiliate of Contributor. 
 The Contributor shall be entitled to set off any amount owed to it by the Company, HMA LP, or HMA against any amount that would otherwise be due to the
Company, HMA LP, or HMA. 
  

 30 

	 	8.3	Indemnification Procedure. 

 (a) Any claim
for indemnification with respect to any Loss arising out of the matters described in Section 8.1 or 8.2, must be asserted by the Contributor Indemnified Parties or the HMA Indemnified Parties, as appropriate, within twenty four (24) months
after the date hereof or it will be barred; provided, however, that any claims for breach of any covenant or agreement made in this Agreement shall survive Closing and may be asserted at any time within one (1) year following the last date on
which such covenant or agreement is to be performed hereunder or twenty four (24) months after the date hereof, whichever is longer. 
 (b) As used in this Article VIII, the term “Losses” does not include: (i) any amounts recovered from any surety, insurance carrier or third party obligor, nor the cost of maintaining any surety or
insurance policies; or (ii) any cost or expense previously counted in determining Losses. The indemnified party agrees to submit in a timely manner to any applicable surety, insurance carrier or third party obligor all claims for indemnifiable
Losses for which such entity may have liability. 
 (c) As a condition precedent to a claim under this Article VIII, an indemnified
party will promptly give to an indemnifying party notice of any matter which the indemnified party has determined has given or could give rise to a right of indemnification under this Agreement, which notice will specify in reasonable detail the
nature of the claim and the basis for indemnification. If a claim by a third party is made against an indemnified party, and if such indemnified party intends to seek indemnity with respect thereto, the indemnified party will promptly give the
indemnifying party notice of such claim. The indemnifying party will have thirty (30) days after receipt of such notice to assume and control the defense of such third-party claim at its expense and through counsel of its choice reasonably
satisfactory to the indemnified party. If the indemnifying party elects not to defend against such third-party claim, then it will promptly so notify the indemnified party and, in such event (and even in the absence of such notice), the indemnified
party will thereupon be entitled, at its option, to assume and control the defense of such claim at its expense and through counsel of its choice. If the indemnifying party exercises its right to undertake the defense against any such claim as
herein provided, the indemnified party will cooperate with the indemnifying party in such defense and make available to the indemnifying party all pertinent records, materials and information in its possession or under its control relating thereto
as is reasonably requested by the indemnifying party. No third-party claim which is being assumed and defended in good faith by the indemnifying party will be settled by the indemnified party without the consent of the indemnifying party.

 (d) The indemnifying party will be subrogated to any and all defenses, claims and setoffs that the indemnified party asserted or
could have asserted against the third party making a claim. The indemnified party will execute and deliver to the indemnifying party such documents as may be reasonably necessary to establish by way of subrogation the ability and right of the
indemnifying party to assert such defenses, claims and setoffs. 
  

 31 

	 	8.4	Contributor’s Exclusive Remedy. 

 Except for
fraud or intentional misrepresentation, the indemnification provisions in Section 8.1 of this Agreement shall provide the sole and exclusive remedy of Contributor, its Affiliates, and any of their officers, directors, employees, stockholders,
agents and representatives with respect to any and all Losses of any kind or nature whatever incurred because of or resulting from or arising out of this Agreement, the transactions contemplated hereby, the Company, Subsidiaries and the Hospital
Facilities. 
 ARTICLE IX 
 IN GENERAL 
  

	 	9.1	Public Disclosure. 

 Notwithstanding anything herein
to the contrary, each of the parties agrees that, except as may be required to comply with the requirements of any Law, and the rules and regulations of each stock exchange upon which the securities of any of the parties (or its Affiliates) is
listed, no press release or similar public announcement or communication will be made or caused to be made concerning the execution or performance of this Agreement unless specifically approved in advance by Contributor and HMA LP. 
  

	 	9.2	Costs of Transaction. 

 Whether or not the
transactions contemplated hereby are consummated and except as otherwise expressly provided herein, each party will bear the fees, expenses and disbursements of itself and its Affiliates, agents, representatives, accountants, qualified
intermediaries, counsel and bankers incurred in connection with the subject matter hereof. Notwithstanding the foregoing, if any Governmental Entity seeks to challenge the transactions contemplated hereby, HMA LP and Contributor shall share the
expense of defending any such challenge 73% by HMA LP and 27% by Contributor. 
  

	 	9.3	Enforcement Expenses. 

 In the event any party
elects to incur legal expenses to enforce, defend or interpret any provision of this Agreement, as between it and any other party, the prevailing party will be entitled to recover from the other party such legal expenses, including reasonable
attorneys’ fees, costs and necessary disbursements, in addition to any other relief to which such party may be entitled. 
  

	 	9.4	Notices. 

 Any notice, demand or communication
required, permitted or desired to be given hereunder will be in writing and will be deemed effectively given when personally delivered, when received by telegraphic or other electronic means (including telecopy and telex) or overnight courier, or
five days after being deposited in the United States mail, with postage prepaid thereon, by certified or registered mail, return receipt requested, addressed as follows: 
  

 32 

 If to Contributor: 
 Foundation Health Systems Corp. 
 2085 Frontis Plaza Boulevard 
 Winston-Salem, North Carolina 27103 
 Attention: President 
 Facsimile: 336-718-9860 
 with a copies to: 
 Novant Health, Inc. 
 2085 Frontis Plaza Boulevard 
 Winston-Salem,
North Carolina 27013 
 Attention: Paul M. Wiles, President and Chief Executive Officer 
 and 
 Novant Health, Inc. 
 2085 Frontis Plaza Boulevard 
 Winston-Salem,
North Carolina 27103 
 Attention: Lawrence U. McGee, Senior Vice President and General Counsel 
 Facsimile: 336-277-9440 
 if to HMA LP or the
Company: 
 Health Management Associates, Inc. 
 5811 Pelican Bay Boulevard, Suite 500 
 Naples, Florida 34108-2710 
 Attention: Burke W. Whitman, President and Chief Executive Officer 
 Facsimile: (239) 597-5794 
 with a copy to: 
 Health Management Associates, Inc. 
 5811
Pelican Bay Boulevard, Suite 500 
 Naples, Florida 34108-2710 
 Attention: Timothy R. Parry, Esq., Senior Vice President 
 and General Counsel 
 or to such other address, and to the attention of such other Person or officer as any party may designate by notice given in like manner. 
  

	 	9.5	Schedules and Other Instruments. 

 Each Schedule,
certificate provided hereunder, written disclosure required hereby or referenced herein is incorporated by reference into this Agreement and will be considered a part hereof as if set forth herein in full; provided, however, that information set
forth on any 

  

 33 

 
Schedule, certification or written disclosure constitutes a representation and warranty of the party providing the same and not the mutual agreement of the
parties as to the facts therein stated. Any fact disclosed in any Schedule shall be deemed to be disclosed with respect to all of the representations and warranties contained in Article V. The Company shall have the right to update the contents of
any Schedule or the Data Room prior to Closing. 
  

	 	9.6	Governing Law. 

 This Agreement will be governed by
and construed in accordance with the Laws of the State of North Carolina without regard to its conflicts of laws rules. Venue of any actions to enforce this Agreement shall be in the state and federal courts located in North Carolina. 
  

	 	9.7	Waiver of Jury Trial. 

 Each party hereto hereby
waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any litigation directly or indirectly arising out of, under or in connection with this agreement or the other Transaction Documents.
Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it and the other parties hereto have been induced to enter into this agreement and the other Transaction Documents, as applicable, by, among other things, the mutual waivers and certifications in this Section 9.7.

  

	 	9.8	Benefit; Assignment. 

 Subject to express provisions
herein to the contrary, this Agreement will inure to the benefit of and be binding upon the parties hereto and their respective legal representatives, successors and permitted assigns, and the rights and obligations of the parties hereunder will
survive the sale or other transfer of substantially all of the capital stock or assets of any party or a change in control of any party. No party may assign any of its rights or obligations under this Agreement without the express consent of each of
the other parties. 
  

	 	9.9	No Rights in Third Parties. 

 Nothing contained in
this Agreement will be construed as giving rise to any right to enforce its provisions to any Person not a party to this Agreement under any legal theory. 
  

	 	9.10	Waivers and Consents. 

 Except for the waiver of any
condition to Closing, any waiver of any provision of this Agreement and any consent given hereunder must be in writing signed by the party sought to be bound. The waiver by any party of breach or violation of any provision of this Agreement will not
operate as, or be construed to constitute, a waiver of any subsequent breach or violation of the same or any other provision hereof. 
  

	 	9.11	Severability. 

 In the event any provision of this
Agreement is held to be invalid, illegal or unenforceable for any reason and in any respect, such invalidity, illegality or unenforceability will in no event affect, prejudice or disturb the validity of the remainder of this Agreement, which will be
and remain in full force and effect, enforceable in accordance with its terms. 
  

 34 

	 	9.12	Inferences. 

 Inasmuch as this Agreement is the
result of negotiations among sophisticated parties of equal bargaining power represented by counsel, no inference in favor of, or against, any party will be drawn from the fact that any portion of this Agreement has been drafted by or on behalf of
such party. 
  

	 	9.13	Headings. 

 The Article and Section headings of this
Agreement are for convenience of reference only and do not form a part hereof and do not in any way modify, interpret or construe the intention of the parties. 
  

	 	9.14	Entire Agreement; Amendment. 

 This Agreement
supersedes all prior agreements and constitutes the entire agreement of whatsoever kind or nature existing among the parties representing the within subject matter, and no party will be entitled to benefits other than those specified herein. The
parties specifically acknowledge that in entering into and executing this Agreement, the parties rely solely upon the representations and agreements contained herein and no others. All prior representations or agreements, whether written or oral,
are superseded unless and until made in writing and signed by the party sought to be charged therewith. This Agreement may be amended, and the terms hereof may be modified, only by a writing executed by each party hereto, and any matter referred to
herein as mutually agreed to or designated by the parties must be evidenced by such a writing. 
  

	 	9.15	Tax and Medicare Advice and Reliance. 

 Except as
expressly provided in this Agreement, none of the parties (nor any of the parties’ respective counsel, accountants or other representatives) has made or is making any representations to any other party (or to any other party’s counsel,
accountants or other representatives) concerning the consequences of the transactions contemplated hereby under applicable tax laws or under the laws governing the Medicare program. Each party has relied solely upon the tax and Medicare advice of
its own employees or of representatives engaged by such party and not on any such advice provided by any other party hereto. 
  

	 	9.16	Counterparts. 

 This Agreement, and any document or
instrument required or permitted hereunder, may be executed in counterparts (including by means of facsimile), each of which will be deemed an original and all of which together will constitute but one and the same instrument. 
 (Signatures appear on next page) 
  

 35 

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

			
	CAROLINAS HOLDINGS, LLC
		
	By:	 	 /s/ Timothy R. Parry

	Its:	 	Senior Vice President
	
	HEALTH MANAGEMENT ASSOCIATES, INC.
		
	By:	 	 /s/ Timothy R. Parry

	Its:	 	Senior Vice President
	
	CAROLINAS JV HOLDINGS, L.P.
		
	By:	 	 /s/ Timothy R. Parry

	Its:	 	Senior Vice President of GP
	
	FOUNDATION HEALTH SYSTEMS CORP.
		
	By:	 	 /s/ Gregory J. Beier

	Its:	 	President
	
	NOVANT HEALTH, INC.
		
	By:	 	 /s/ Paul M. Wiles

	Its:	 	President

  

 36 

 Below is an index of exhibits and schedules to the Agreement. A copy of any such exhibit or schedule shall be furnished
supplementally by Health Management Associates, Inc. to the Securities and Exchange Commission upon request. 
 INDEX OF EXHIBITS AND
SCHEDULES 
  

			
	Exhibit I	  	Subsidiaries and Hospital Facilities
		
	Schedule 3.2	  	Purchase Price Allocation
		
	Schedule 5.4	  	Financial Statements
		
	Schedule 5.5	  	Permitted Encumbrances
		
	Schedule 5.9	  	Contracts
		
	Schedule 5.11	  	Insurance
		
	Schedule 5.12	  	Employee Benefit Plans
		
	Schedule 5.16	  	Recent Events
		
	Schedule 5.22	  	Payor Participation
		
	Schedule 5.24	  	Healthcare Matters
		
	Schedule 5.25	  	Affiliate Transactions

  

 37

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