Document:

Business Sale and Membership Interest Purchase Agreement

 Exhibit 10.1 
 BUSINESS SALE AND MEMBERSHIP INTEREST 
 PURCHASE AGREEMENT 

AMONG 
 PENFORD CAROLINA, LLC 
 AND

 R. BENTLEY CHEATHAM, DWIGHT L. CARLSON, 

AND STEVEN P. BROWER 
 AND 
 KEYSTONE STARCHES,
LLC, 
 7675 SOUTH RAIL ROAD, LLC AND 

1 FREAS AVENUE, LLC 
 November 9, 2011 

 TABLE OF CONTENTS 

 

					
	 §1. Definitions
	  	 	5	  
		
	 §2. Purchase and Sale of Target Membership Interests
	  	 	10	  
	 (a) Basic Transaction
	  	 	10	  
	 (b) Purchase Price
	  	 	10	  
	 (c) Closing
	  	 	10	  
	 (d) Deliveries at Closing
	  	 	11	  
		
	 §3. Representations and Warranties Concerning Transaction
	  	 	11	  
	 (a) Sellers’ Representations and Warranties
	  	 	11	  
	 (b) Buyer’s Representations and Warranties
	  	 	11	  
		
	 §4. Representations and Warranties Concerning Target
	  	 	12	  
	 (a) Organization, Qualification, and Corporate Power
	  	 	12	  
	 (b) Capitalization
	  	 	13	  
	 (c) Non-contravention
	  	 	13	  
	 (d) Brokers’ Fees
	  	 	13	  
	 (e) Title to Assets
	  	 	13	  
	 (f) Subsidiaries
	  	 	13	  
	 (g) Financial Statements
	  	 	13	  
	 (h) Events Subsequent to Most Recent Fiscal Year End
	  	 	13	  
	 (i) Undisclosed Liabilities
	  	 	15	  
	 (j) Legal Compliance
	  	 	15	  
	 (k) Tax Matters
	  	 	15	  
	 (l) Real Property
	  	 	17	  
	 (m) Intellectual Property
	  	 	20	  
	 (n) Tangible Assets
	  	 	22	  
	 (o) Inventory
	  	 	22	  
	 (p) Contracts
	  	 	23	  
	 (q) Notes and Accounts Receivable
	  	 	24	  
	 (r) Powers of Attorney
	  	 	24	  
	 (s) Insurance
	  	 	24	  
	 (t) Litigation
	  	 	24	  
	 (u) Product Warranty
	  	 	24	  
	 (v) Product Liability
	  	 	25	  
	 (w) Employees
	  	 	25	  
	 (x) Employee Benefits
	  	 	25	  
	 (y) Guaranties
	  	 	27	  
	 (z) Environmental, Health, and Safety Matters
	  	 	27	  
	 (aa) Business Continuity
	  	 	28	  
	 (bb) Computer and Technology Security
	  	 	28	  
	 (cc) Certain Business Relationships with Target
	  	 	28	  
	 (dd) Customers and Suppliers
	  	 	28	  
	 (ee) Data Privacy
	  	 	28	  
	 (ff) Disclosure
	  	 	28	  
		
	 §5. Pre-Closing Covenants
	  	 	29	  
	 (a) General
	  	 	29	  
	 (b) Notices and Consents
	  	 	29	  
	 (c) Operation of Business
	  	 	29	  
	 (d) Preservation of Business
	  	 	29	  
	 (e) Full Access
	  	 	29	  
	 (f) Notice of Developments
	  	 	29	  
	 (g) Exclusivity
	  	 	30	  
	 (h) Maintenance of Real Property
	  	 	30	  
	 (i) Leases
	  	 	30	  
	 (j) Title Insurance and Surveys
	  	 	30	  
	 (k) Tax Matters
	  	 	30	  

  
 2 

					
	 §6. Post-Closing Covenants
	  	 	30	  
	 (a) General
	  	 	30	  
	 (b) Litigation Support
	  	 	30	  
	 (c) Transition
	  	 	31	  
	 (d) Confidentiality
	  	 	31	  
	 (e) Covenant Not to Compete
	  	 	31	  
		
	 §7. Conditions to Obligation to Close
	  	 	31	  
	 (a) Conditions to Buyer’s Obligation
	  	 	31	  
	 (b) Conditions to Sellers’ Obligation
	  	 	35	  
		
	 §8. Remedies for Breaches of This Agreement
	  	 	35	  
	 (a) Survival of Representations and Warranties
	  	 	35	  
	 (b) Indemnification Provisions for Buyer’s Benefit
	  	 	36	  
	 (c) Indemnification Provisions for Sellers’ Benefit
	  	 	36	  
	 (d) Matters Involving Third Parties
	  	 	36	  
	 (e) Determination of Adverse Consequences
	  	 	37	  
	 (f) Intentionally Deleted
	  	 	37	  
	 (g) Other Indemnification Provisions
	  	 	37	  
		
	 §9. Tax Matters
	  	 	38	  
	 (a) Tax Indemnification
	  	 	38	  
	 (b) Straddle Period
	  	 	38	  
	 (c) Responsibility for Filing Tax Returns
	  	 	38	  
	 (d) Cooperation on Tax Matters
	  	 	38	  
	 (e) Tax-Sharing Agreements
	  	 	39	  
	 (f) Certain Taxes and Fees
	  	 	39	  
		
	 §10. Termination
	  	 	39	  
	 (a) Termination of Agreement
	  	 	39	  
	 (b) Effect of Termination
	  	 	39	  
		
	 §11. Miscellaneous
	  	 	39	  
	 (a) Nature of Sellers’ Obligations
	  	 	39	  
	 (b) Press Releases and Public Announcements
	  	 	40	  
	 (c) No Third-Party Beneficiaries
	  	 	40	  
	 (d) Entire Agreement
	  	 	40	  
	 (e) Succession and Assignment
	  	 	40	  
	 (f) Counterparts
	  	 	40	  
	 (g) Headings
	  	 	40	  
	 (h) Notices
	  	 	40	  
	 (i) Governing Law
	  	 	41	  
	 (j) Amendments and Waivers
	  	 	41	  
	 (k) Severability
	  	 	41	  
	 (l) Expenses
	  	 	41	  
	 (m) Construction
	  	 	41	  
	 (n) Incorporation of Exhibits, Annexes, and Schedules
	  	 	41	  
	 (o) Specific Performance
	  	 	41	  
	 (p) Submission to Jurisdiction
	  	 	42	  
	 (q) Governing Language
	  	 	42	  

  
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 EXHIBITS 
  

	
	 Exhibit A—Historical Financial Statements

	 Exhibit B—Forms of Side Agreements:

	
	 B-1: Stock Option Agreement

	
	 B-2: Asset Purchase Agreement between Buyer and Keystone Starches

	
	 B-3: Asset Purchase Agreement between Buyer and 7675 South Rail Road

	
	 B-4: Lease Agreement for Berwick, Pennsylvania Site

	
	 B-5: Purchase Option Agreement for Berwick, Pennsylvania Site

	
	 Exhibit C—Form of Opinion of Sellers’ Counsel

	
	 Exhibit D—Form of Opinion of Buyer’s Counsel

	
	 Annex I—Exceptions to Sellers’ Representations and Warranties Concerning Transaction

	
	 Annex II—Exceptions to Buyer’s Representations and Warranties Concerning Transaction

	
	 Disclosure Schedule—Exceptions to Representations and Warranties Concerning Target

	

  
 4 

 BUSINESS SALE AND MEMBERSHIP INTEREST PURCHASE AGREEMENT 

This Business Sale and Membership Interest Purchase Agreement (this “Agreement”) is entered into on November 9,
2011, by Penford Carolina, LLC, a Delaware limited liability company (“Buyer”), and R. Bentley Cheatham, Dwight L. Carlson and Steven P. Brower (each a Seller and collectively, “Sellers”), and Keystone Starches,
LLC, a South Carolina limited liability company, and 7675 South Rail Road, LLC, a South Carolina limited liability company (each an “Asset Selling Entity” and collectively the “Asset Selling Entities”) are
signatories to this Agreement to acknowledge and agree to the representations, conditions and obligations contained herein applicable to the Asset Purchase Agreements. 1 Freas Avenue is a signatory to this Agreement to acknowledge and agree to the
representations, conditions and obligations contained herein with respect to the Pennsylvania Lease Agreement and the Option Agreement. Buyer, Sellers, the Asset Selling Entities and 1 Freas Avenue are referred to collectively herein as the
“Parties.” 
 Sellers in the aggregate own all of the outstanding membership interests of Carolina Starches
(the “Target”). 
 In addition, Sellers in the aggregate own all of the outstanding membership interests of
Keystone Starches, 1 Freas Avenue and 7675 South Rail Road. 
 This Agreement contemplates a transaction in which Buyer will
purchase from Sellers, and Sellers will sell to Buyer, all of the outstanding membership interests of Target in return for cash. 
 At the Closing, Buyer will enter into (i) the Asset Purchase Agreement with Keystone Starches and the Asset Purchase Agreement with 7675 South Rail Road (collectively, the “Asset Purchase
Agreements”), (ii) the Lease Agreement, (iii) the Option Agreement with 1 Freas Avenue and (iv) the Stock Option Agreement with the Sellers. 
 This Agreement, the Asset Purchase Agreements, the Lease Agreement, the Option Agreement and the Stock Option Agreement (collectively, the “Transaction Agreements”) document a single
unified transaction (the “Transaction”) between Buyer, Sellers, and the Asset Selling Entities. 
 The Parties
agree that, pursuant to the terms and conditions of the Transaction Agreements, the Transaction and Closings contemplated in the Agreements will either be consummated in their entirety or not at all. 

Now, therefore, in consideration of the premises and the mutual promises herein made, and in consideration of the representations,
warranties, and covenants herein contained, the Parties agree as follows. 
 §1. Definitions. 

“1 Freas Avenue” means 1 Freas Avenue, LLC, a South Carolina limited liability company. 

“7675 South Rail Road” means 7675 South Rail Road, LLC, a South Carolina limited liability company. 

“Accredited Investor” has the meaning set forth in Regulation D promulgated under the Securities Act. 

“Adverse Consequences” means all actions, suits, proceedings, hearings, investigations, charges, complaints, claims,
demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and fees, including court costs and reasonable attorneys’
fees and expenses. 
 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under
the Securities Exchange Act. 

  
 5 

 “Affiliated Group” means any affiliated group within the meaning of Code
§1504(a) or any similar group defined under a similar provision of state, local, or non-U.S. law. 
 “Applicable
Rate” means the prime rate of interest publicly announced from time to time by the Wall Street Journal. 

“Basis” means any past or present fact, situation, circumstance, status, condition, activity, practice, plan,
occurrence, event, incident, action, failure to act, or transaction that forms or could form the basis for any specified consequence. 
 “BIDA Lease” means that certain Lease Agreement between Keystone Starches and Berwick Industrial Development Authority dated May 5, 2011, as amended July 1, 2011. 

“Buyer” has the meaning set forth in the preface above. 

“Carolina Starches” means Carolina Starches, LLC, a South Carolina limited liability company. 

“Closing” has the meaning set forth in §2(c) below. 

“Closing Date” has the meaning set forth in §2(c) below. 

“Closing Purchase Price” has the meaning set forth in §2(b) below. 

“COBRA” means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code §4980B and of any similar state
law. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Confidential Information” means any information concerning the businesses and affairs of Target that is not already
generally available to the public. 
 “Consolidated Debt” means SunTrust bank debt of Keystone Starches, 7675
South Rail Road and Carolina Starches combined under Carolina Starches. 
 “Controlled Group” has the meaning
set forth in Code §1563. 
 “Contaminant” means any material that is or contains any
(i) “hazardous substance,” “toxic substance,” “regulated substance,” “pollutant,” “contaminant,” “solid waste,” “residual waste,” “hazardous waste,” or
“petroleum” as defined pursuant to any Environmental Law; (ii) gasoline, diesel fuel, motor oil, waste or used oil, heating oil, kerosene and any other petroleum product or fraction of petroleum; (iii) any polychlorinated
biphenyls (“PCBs”) or substances containing PCBs; (iv) any urea formaldehyde foam; (v) any asbestos or materials containing asbestos (“ACMs”); and (vi) any other substance regulated pursuant to any
Environmental, Health and Safety Requirement. 
 “Data Laws” means laws, regulations, guidelines, and rules in
any jurisdiction (federal, state, local, and non-U.S.) applicable to data privacy, data security, and/or personal information, including the Federal Trade Commission’s Fair Information Principles. 

“Disclosure Schedule” has the meaning set forth in §4 below. 

“Employee Benefit Plan” means any “employee benefit plan” (as such term is defined in ERISA §3(3)) and
any other material employee benefit plan, program or arrangement of any kind. 
 “Employee Pension Benefit
Plan” has the meaning set forth in ERISA §3(2). 
 “Employee Welfare Benefit Plan” has the
meaning set forth in ERISA §3(1). 
 “Encumbrance Documents” has the meaning set forth in §4(l)
below. 
 “Environmental Condition” means the presence of any Contaminant on or at the Property, including, but
not limited to, the presence in surface water, groundwater, soils or subsurface strata, or in abandoned tanks or other containers. 

  
 6 

 “Environmental, Health, and Safety Requirements” means, whenever in effect,
all federal, state, local, and non-U.S. statutes, regulations, ordinances, and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations, and all common law concerning
public health and safety, worker health and safety, pollution, or protection of the environment, including, without limitation, all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal,
distribution, labeling, testing, processing, discharge, release, threatened release, control, exposure to, or cleanup of any hazardous materials, substances, wastes, chemical substances, mixtures, pesticides, pollutants, contaminants, toxic
chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls, noise, odor, mold, or radiation. 

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

“ERISA Affiliate” means each entity that is treated as a single employer with Target for purposes of Code §414.

 “Estoppel Certificates” has the meaning set forth in §7(a) below. 

“Fiduciary” has the meaning set forth in ERISA §3(21). 

“Financial Statements” has the meaning set forth in §4(g) below. 

“FIRPTA Affidavit” has the meaning set forth in §7(a) below. 

“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently
applied. 
 “Governmental Authorizations” means all permits, licenses, consents, notifications, franchises,
privileges, registrations, certifications, orders, approvals and authorizations, required under, or otherwise made available by or under the authority of, any applicable legal requirement. 

“Improvements” has the meaning set forth in §4(l) below. 

“Indemnified Party” has the meaning set forth in §8(d) below. 

“Indemnifying Party” has the meaning set forth in §8(d) below. 

“Intellectual Property” means all of the following in any jurisdiction throughout the world: (a) all inventions
(whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, divisions, continuations-in-part,
revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, slogans, trade names, corporate names, Internet domain names, other source identifiers, and rights in telephone numbers, together with all
translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all copyrights, and all
applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection therewith, (e) all trade secrets and confidential, technical, and business information
(including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and
business and marketing plans and proposals), (f) all computer software (including source code, executable code, data, databases, and related documentation), (g) all advertising and promotional materials, (h) all other proprietary
rights, and (i) all copies and tangible embodiments thereof (in whatever form or medium). 
 “Keystone
Starches” means Keystone Starches, LLC, a South Carolina limited liability company. 
 “Knowledge”
means actual knowledge after reasonable investigation. 

  
 7 

 “Lease Agreement” means a lease agreement substantially in the form
attached hereto as Exhibit B-4 and satisfactory to Buyer in its sole discretion. 
 “Lease Consents” has the
meaning set forth in §7(a) below. 
 “Leased Real Property” means all leasehold or subleasehold estates
and other rights to use or occupy any land, buildings, structures, improvements, fixtures, or other interest in real property held by Target. 
 “Leases” means all leases, subleases, licenses, concessions and other agreements (written or oral), including all amendments, extensions, renewals, guaranties, and other agreements with
respect thereto, pursuant to which Target holds any Leased Real Property, including the right to all security deposits and other amounts and instruments deposited by or on behalf of Target thereunder. 

“Liability” means any liability or obligation of whatever kind or nature (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes. 

“Lien” means any mortgage, pledge, lien, encumbrance, charge, or other security interest, other than (a) liens for
Taxes not yet due and payable or for Taxes that the taxpayer is contesting in good faith through appropriate proceedings, (b) purchase money liens and liens securing rental payments under capital lease arrangements, and (c) other liens
arising in the Ordinary Course of Business and not incurred in connection with the borrowing of money. 
 “Material
Adverse Effect” or “Material Adverse Change” means any effect or change that would be (or could reasonably be expected to be) materially adverse to the business, assets, condition (financial or otherwise), operating
results, operations, or business prospects (including as projected in any revenue, earnings, or other forecast, whether internal or published) of Target, taken as a whole, or to the ability of Sellers to consummate timely the transactions
contemplated hereby (regardless of whether or not such adverse effect or change can be or has been cured at any time or whether Buyer has knowledge of such effect or change on the date hereof), including any adverse change, event, development, or
effect arising from or relating to (a) general business or economic conditions, including such conditions related to the business of Target, (b) 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 upon the United States, or any of its territories, possessions, or diplomatic or consular
offices or upon any military installation, equipment or personnel of the United States, (c) financial, banking, or securities markets (including any suspension of trading in, or limitation on prices for, securities on the New York Stock
Exchange, American Stock Exchange, or Nasdaq Stock Market for a period in excess of three hours or any decline of either the Dow Jones Industrial Average or the Standard & Poor’s Index of 500 Industrial Companies by an amount in excess
of 15% measured from the close of business on the date hereof), (d) changes in United States generally accepted accounting principles, (e) changes in laws, rules, regulations, orders, or other binding directives issued by any governmental
entity, and (f) the taking of any action contemplated by this Agreement and the other agreements contemplated hereby. In no event need any effect or change adversely affect a party’s long-term earnings power or potential in a durationally
significant manner in order to constitute a Material Adverse Effect or a Material Adverse Change, it being understood and agreed that a short-term adverse effect may constitute a Material Adverse Effect or a Material Adverse Change. 

“Material Leased Real Property” has the meaning set forth in §7(a) below. 

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

“Most Recent Financial Statements” has the meaning set forth in §4(g) below. 

“Most Recent Fiscal Month End” has the meaning set forth in §4(g) below. 

“Most Recent Fiscal Year End” has the meaning set forth in §4(g) below. 

  
 8 

 “Multiemployer Plan” has the meaning set forth in ERISA §3(37).

 “Non-Disturbance Agreements” has the meaning set forth in §7(a) below. 

“Option Agreement” means a purchase option agreement substantially in the form attached hereto as Exhibit B-5 and
satisfactory to Buyer in its sole discretion. 
 “Ordinary Course of Business” means the ordinary course of
business consistent with past custom and practice (including with respect to quantity and frequency). 
 “Owned Real
Property” means all land, together with all buildings, structures, improvements, and fixtures located thereon, including all electrical, mechanical, plumbing and other building systems, fire protection, security and surveillance systems,
telecommunications, computer, wiring, and cable installations, utility installations, water distribution systems, and landscaping, together with all easements and other rights and interests appurtenant thereto (including air, oil, gas, mineral, and
water rights), owned by Target. 
 “Party” has the meaning set forth in the preface above. 

“PBGC” means the Pension Benefit Guaranty Corporation. 

“Permitted Encumbrances” means with respect to each parcel of Real Property: (a) real estate taxes, assessments and
other governmental levies, fees, or charges imposed with respect to such Real Property that are (i) not due and payable as of the Closing Date or (ii) being contested in good faith and for which appropriate reserves have been established
in accordance with GAAP; (b) mechanics’ liens and similar liens for labor, materials, or supplies provided with respect to such Real Property incurred in the Ordinary Course of Business for amounts that are (i) not due and payable as
of the Closing Date or (ii) being contested in good faith and for which appropriate reserves have been established in accordance with GAAP; (c) zoning, building codes and other land use laws regulating the use or occupancy of such Real
Property or the activities conducted thereon which are imposed by any governmental authority having jurisdiction over such Real Property and are not violated by the current use or occupancy of such Real Property or the operation of Target’s
business as currently conducted thereon; and (d) easements, covenants, conditions, restrictions, and other similar matters of record affecting title to such Real Property that do not or would not impair the use or occupancy of such Real
Property in the operation of Target’s business as currently conducted thereon. 
 “Person” means an
individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other business entity, or a governmental entity (or any department, agency,
or political subdivision thereof). 
 “Process Agent” has the meaning set forth in §11(p) below.

 “Prohibited Transaction” has the meaning set forth in ERISA §406 and Code §4975. 

“Purchase Price” has the meaning set forth in §2(b) below. 

“Real Estate Impositions” has the meaning set forth in §4(l) below. 

“Real Property” has the meaning set forth in §4(l) below. 

“Real Property Laws” has the meaning set forth in §4(l) below. 

“Real Property Permits” has the meaning set forth in §4(l) below. 

“Reportable Event” has the meaning set forth in ERISA §4043. 

“Securities Act” means the Securities Act of 1933, as amended. 

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

“Seller” has the meaning set forth in the preface above. 

  
 9 

 “Source Code” means human-readable computer software and code, in a form
other than Object Code form or machine-readable form, including related programmer comments and annotations, help text, data and data structures, object-oriented and other code, which may be printed out or displayed in human-readable form, and, for
purposes of this Source Code definition, “Object Code” means computer software code, substantially or entirely in binary form, which is intended to be directly executable by a computer after suitable processing and linking but
without the intervening steps of compilation or assembly. 
 “Stock Option” or “Stock Option
Agreement” means a stock option agreement substantially in the form attached hereto as Exhibit B-1 and satisfactory to Buyer in its sole discretion. 
 “Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association, or other business entity of which (i) if a corporation, a
majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (ii) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of the
partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons own a
majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be or control any managing director or general partner
of such business entity (other than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary. 
 “Surveys” has the meaning set forth in §7(a) below. 

“Systems” has the meaning set forth in §4(aa) below. 

“Target” has the meaning set forth in the preface above. Any reference to “Target” shall be deemed to be a
reference to Carolina Starches. 
 “Target Membership Interests” means any share of the Membership Interest of
Target. 
 “Tax” or “Taxes” means any federal, state, local, or non-U.S. income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A), customs duties, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
 “Tax Return” 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 thereof. 
 “Third-Party Claim” has the meaning set forth in §8(d) below. 

“Title Commitments” has the meaning set forth in §7(a) below. 

“Title Company” has the meaning set forth in §7(a) below. 

“Title Policies” has the meaning set forth in §7(a) below. 

“WARN Act” has the meaning set forth in §4(h) below. 

§2. Purchase and Sale of Target Membership Interests. 

(a) Basic Transaction. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from each Seller,
and each Seller agrees to sell to Buyer, all of his or her or its Target Membership Interests for the consideration specified below in this §2. 

  
 10 

 (b) Purchase Price. Buyer agrees to pay to Sellers at the Closing Six Million Dollars
($6,000,000) (the “Purchase Price”) by delivery of cash for the Closing Purchase Price payable by wire transfer or delivery of other immediately available funds and the assumption of Consolidated Debt of no more than Three Million
Five Hundred Thousand Dollars ($3,500,000) to be paid at Closing pursuant to a Pay-off letter from SunTrust. The Closing Purchase Price shall be allocated among Sellers as set forth in §4(b) of the Disclosure Schedule. 

(c) Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at
the offices of Nelson Mullins, in Charleston, South Carolina, commencing at 9:00 a.m. local time on the fifth business day following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions
contemplated hereby (other than conditions with respect to actions the respective Parties will take at the Closing itself) or such other date as Buyer and Requisite Sellers may mutually determine (the “Closing Date”). The Parties
shall use commercially reasonable efforts and proceed in good faith to cause the Closing to occur on December 6, 2011. 

(d) Deliveries at Closing. At the Closing, (i) Sellers will deliver to Buyer the various certificates, instruments, and
documents referred to in §7(a) below, (ii) Buyer will deliver to Sellers the various certificates, instruments, and documents referred to in §7(b) below, (iii) each Seller will deliver to Buyer unit certificates representing all
of his, her, or its Target Membership Interests, endorsed in blank or accompanied by duly executed assignment documents, and (iv) Buyer will deliver to each Seller the consideration specified in §2(b) above. 

§3. Representations and Warranties Concerning Transaction. 

(a) Sellers’ Representations and Warranties. Each Seller represents and warrants to Buyer that the statements contained in
this §3(a) are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this
§3(a)) with respect to himself, except as set forth in Annex I attached hereto. 
 (i) Organization of
Sellers. Seller is an individual. 
 (ii) Authorization of Transaction. Seller has full power and
authority to execute and deliver this Agreement and to perform his obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Seller, enforceable in accordance with its terms and conditions. Seller need not give
any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. The execution, delivery, and performance of this
Agreement and all other agreements contemplated hereby have been duly authorized by Seller. 
 (iii)
Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government, governmental agency, or court to which Seller is subject, (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right
to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party or by which he is bound or to which any of his assets are subject, or
(C) result in the imposition or creation of a Lien upon or with respect to the Target Membership Interests. 

(iv) Brokers’ Fees. Seller has no Liability to pay any fees or commissions to any broker, finder, or agent
with respect to the transactions contemplated by this Agreement. 
 (v) Investment. INTENTIONALLY DELETED.

  
 11 

 (vi) Target Membership Interests. Seller holds of record and owns
beneficially the percentage of Target Membership Interests set forth next to his name in §4(b) of the Disclosure Schedule, free and clear of any restrictions on transfer (other than any restrictions under the Securities Act and state securities
laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. Seller is not a party to any option, warrant, purchase right, or other contract or commitment (other than this Agreement) that could
require Seller to sell, transfer, or otherwise dispose of any of his Membership Interest of Target. Seller is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any Membership Interest of
Target. 
 (b) Buyer’s Representations and Warranties. Buyer represents and warrants to Sellers that the statements
contained in this §3(b) are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement
throughout this §3(b)), except as set forth in Annex II attached hereto. 
 (i) Organization of
Buyer. Buyer is a limited liability company duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. 
 (ii) Authorization of Transaction. Buyer has full power and authority (including full corporate power and authority) to execute and deliver this Agreement and to perform its obligations hereunder.
This Agreement constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms and conditions. Buyer need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any
government or governmental agency in order to consummate the transactions contemplated by this Agreement. The execution, delivery, and performance of this Agreement and all other agreements contemplated hereby have been duly authorized by Buyer.

 (iii) Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of
the transactions contemplated hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Buyer is
subject or any provision of its charter, bylaws, or other governing documents or (B) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which it is bound or to which any of its assets are subject. 

(iv) Brokers’ Fees. Buyer has no Liability to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which any Seller could become liable or obligated. 
 (v) Investment. Buyer is not acquiring the Target Membership Interests with a view to or for sale in connection with any distribution thereof within the meaning of the Securities Act. 

§4. Representations and Warranties Concerning Target. Sellers represent and warrant to Buyer that the statements contained in
this §4 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this
§4), except as set forth in the disclosure schedule delivered by Sellers to Buyer on the date hereof and initialed by the Parties (the “Disclosure Schedule”). Nothing in the Disclosure Schedule shall be deemed adequate to
disclose an exception to a representation or warranty made herein, however, unless the Disclosure Schedule identifies the exception with particularity and describes the relevant facts in detail. Without limiting the generality of the foregoing, the
mere listing (or inclusion of a copy) of a document or other item shall not be deemed adequate to disclose an exception to a representation or warranty made herein (unless the representation or warranty pertains to the existence of the document or
other item itself). The Disclosure Schedule will be arranged in paragraphs corresponding to the lettered and numbered paragraphs contained in this §4. 

  
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 (a) Organization, Qualification, and Power. Target is a limited liability company
duly organized, validly existing, and in good standing under the laws of South Carolina. Target is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required. Target has full
power and authority and all licenses, permits, and authorizations necessary to carry on the businesses in which they are engaged and to own and use the properties owned and used by them. §4(a) of the Disclosure Schedule lists the directors and
officers of Target. Sellers have delivered to Buyer correct and complete copies of the articles of formation and operating agreement for Target (as amended to date). The minute books (containing the records of meetings of the Members, the board of
directors, and any committees of the board of directors), the Membership Interest certificate books, and the Membership Interest record books for Target are correct and complete. Target is not in default under or in violation of any provision of its
operating agreement or articles of formation. 
 (b) Capitalization. All of the issued and outstanding Target Membership
Interests have been duly authorized, are validly issued, fully paid, and non-assessable, and are held of record by the respective Sellers as set forth in §4(b) of the Disclosure Schedule. There are no outstanding or authorized options,
warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require Target to issue, sell, or otherwise cause to become outstanding any of its Membership Interest. There are no
outstanding or authorized Membership Interest appreciation, phantom Membership Interest, profit participation, or similar rights with respect to Target. There are no voting trusts, proxies, or other agreements or understandings with respect to the
voting of the Membership Interest of Target. 
 (c) Non-contravention. Except as provided in §3(c) of the Disclosure
Schedule, neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction of any government, governmental agency, or court to which Target is subject or any provision of the articles of formation and/or operating agreement of Target or (ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Target is a party
or by which it is bound or to which any of its assets is subject (or result in the imposition of any Lien upon any of its assets). Target does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of
any government or governmental agency in order for the Parties to consummate the transactions contemplated by this Agreement. 

(d) Brokers’ Fees. Target does not have any Liability to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement. 
 (e) Title to Assets. Target has good and marketable title
to, or a valid leasehold interest in, the properties and assets used by it, located on its premises, or shown on the Most Recent Balance Sheet or acquired after the date thereof, free and clear of all Liens, except for properties and assets disposed
of in the Ordinary Course of Business since the date of the Most Recent Balance Sheet and noted on the Disclosure Schedule. 

(f) Subsidiaries. Target does not have any Subsidiaries. 
 (g) Financial Statements. Attached hereto as Exhibit A are the following financial statements (collectively the “Financial Statements”): (i) reviewed consolidated and
unaudited consolidating balance sheets and statements of income, changes in members’ equity, and cash flow as of and for the fiscal years ended December 31, 2007, December 31, 2008, December 31, 2009, and
December 31, 2010 (the “Most Recent Fiscal Year End”) for Target; and (ii) unaudited consolidated and consolidating balance sheets and 

  
 13 

 
statements of income, changes in Member’s Membership Interest, and cash flow (the “Most Recent Financial Statements”) as of and for the month ended September 30, 2011
(the “Most Recent Fiscal Month End”) for Target. The Financial Statements (including the notes thereto) have been prepared in accordance with GAAP throughout the periods covered thereby, present fairly the financial condition of
Target as of such dates and the results of operations of Target for such periods, are correct and complete, and are consistent with the books and records of Target (which books and records are correct and complete). 

(h) Events Subsequent to Most Recent Fiscal Year End. Since the Most Recent Fiscal Year End, there has not been any Material
Adverse Change. Without limiting the generality of the foregoing, since that date: 
 (i) Target has not sold,
leased, transferred, or assigned any of its assets, tangible or intangible, other than for a fair consideration in the Ordinary Course of Business; 
 (ii) Target has not entered into any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) either involving more than $1,000.00 or outside the Ordinary
Course of Business; 
 (iii) no party (including Target) has accelerated, terminated, modified, or cancelled any
agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) involving more than $1,000.00 to which Target is a party or by which any of them is bound; 

(iv) Target has not imposed any Liens upon any of its assets, tangible or intangible; 

(v) Target has not made any capital expenditure (or series of related capital expenditures) either involving more than
$1,000.00 or outside the Ordinary Course of Business; 
 (vi) Target has not made any capital investment in, any
loan to, or any acquisition of the securities or assets of, any other Person (or series of related capital investments, loans, and acquisitions) either involving more than $1,000.00 or outside the Ordinary Course of Business; 

(vii) Target has not issued any note, bond, or other debt security or created, incurred, assumed, or guaranteed any
indebtedness for borrowed money or a capitalized lease obligation; 
 (viii) Target has not delayed or postponed
the payment of accounts payable and other Liabilities outside the Ordinary Course of Business; 
 (ix) Target has
not cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) either involving more than $1,000.00 or outside the Ordinary Course of Business; 

(x) Target has not transferred, assigned, or granted any license or sublicense of any rights under or with respect to any
Intellectual Property; 
 (xi) there has been no change made or authorized in the articles of organization and
operating agreement of Target; 
 (xii) Target has not issued, sold, or otherwise disposed of any of its
membership interest, or granted any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of its membership interest; 

(xiii) Target has not declared, set aside, or paid any dividend or made any distribution with respect to its membership
interest (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of its membership interest; 
 (xiv) Target has not experienced any damage, destruction, or loss (whether or not covered by insurance) to its property; 

  
 14 

 (xv) Target has not made any loan to, or entered into any other transaction
with, any of its members, managers, directors, officers, and employees outside the Ordinary Course of Business; 

(xvi) Target has not entered into or terminated any employment contract or collective bargaining agreement, written or
oral, or modified the terms of any existing such contract or agreement, or become bound by any collective bargaining relationship; 
 (xvii) Target has not granted any increase in the base compensation of any of its managers, directors, officers, and employees outside the Ordinary Course of Business; 

(xviii) Target has not adopted, amended, modified, or terminated any bonus, profit sharing, incentive, severance, or other
plan, contract, or commitment for the benefit of any of its managers, directors, officers, and employees (or taken any such action with respect to any other Employee Benefit Plan); 

(xix) Target has not made any other change in employment terms for any of its directors, officers, and employees outside
the Ordinary Course of Business; 
 (xx) Target has not implemented any employee layoffs that could implicate the
Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar state, local, or non-U.S. law, regulation, or ordinance (collectively the “WARN Act”); 

(xxi) Target has not made or pledged to make any charitable or other capital contribution outside the Ordinary Course of
Business; 
 (xxii) there has not been any occurrence, event, incident, action, failure to act, or transaction
outside the Ordinary Course of Business involving Target; 
 (xxiii) Target has not discharged a material
Liability or Lien outside the Ordinary Course of Business; 
 (xxiv) Target has not made any loans or advances of
money; 
 (xxv) Target has not disclosed any Confidential Information; and 

(xxvi) Target has not committed to any of the foregoing. 

(i) Undisclosed Liabilities. Target does not have any Liability (and there is no Basis for any present or future action, suit,
proceeding, hearing, investigation, charge, complaint, claim, or demand against any of them giving rise to any Liability), except for (i) Liabilities set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) and
(ii) Liabilities that have arisen after the Most Recent Fiscal Month End in the Ordinary Course of Business (none of which results from, arises out of, relates to, is in the nature of, or was caused by any breach of contract, breach of
warranty, tort, infringement, or violation of law). 
 (j) Legal Compliance. Target and its respective predecessors and
Affiliates have complied with all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder and including the Foreign Corrupt Practices Act, 15 U.S.C. 78dd-1 et seq.)
of federal, state, local, and non-U.S. governments (and all agencies thereof), and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against any of them alleging any failure
so to comply. 
 (k) Tax Matters. 
 (i) Target has filed all Tax Returns that it was required to file under applicable laws and regulations. All such Tax Returns were correct and complete in all respects and were prepared in substantial
compliance with all applicable laws and regulations. All Taxes due and owing by Target (whether or not shown on any Tax Return) have been paid. Target is not currently the beneficiary of any extension of time within which to file any Tax Return. No
claim has ever been made by an 

  
 15 

 
authority in a jurisdiction where Target does not file Tax Returns that is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes (other than Taxes not yet due and
payable) upon any of the assets of Target. 
 (ii) Target has withheld and paid all Taxes required to have been
withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, member, or other third party. 
 (iii) No Seller or director or officer (or employee responsible for Tax matters) of Target expects any authority to assess any additional Taxes for any period for which Tax Returns have been filed. No
federal, state, local, or non-U.S. tax audits or administrative or judicial Tax proceedings are pending or being conducted with respect to Target. Target has not received from any federal, state, local, or non-U.S. taxing authority (including
jurisdictions where Target has not filed Tax Returns) any (i) notice indicating an intent to open an audit or other review, (ii) request for information related to Tax matters, or (iii) notice of deficiency or proposed adjustment for
any amount of Tax proposed, asserted, or assessed by any taxing authority against Target. §4(k)(iii) of the Disclosure Schedule lists all federal, state, local, and non-U.S. income Tax Returns filed with respect to Target for taxable periods
ended on or after December 31, 2008, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of audit. Sellers have delivered to Buyer correct and complete copies of all federal income
Tax Returns, examination reports, and statements of deficiencies assessed against or agreed to by Target filed or received since December 31, 2008. 
 (iv) Target has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. 

(v) Target is not a party to any agreement, contract, arrangement or plan that has resulted or could result, separately or
in the aggregate, in the payment of (i) any “excess parachute payment” within the meaning of Code §280G (or any corresponding provision of state, local, or non-U.S. Tax law) and (ii) any amount that will not be fully
deductible as a result of Code §162(m) (or any corresponding provision of state, local, or non-U.S. Tax law). Target has been a United States real property holding corporation within the meaning of Code §897(c)(2) during the applicable
period specified in Code §897(c)(1)(A)(ii). Target has disclosed on their federal income Tax Returns all positions taken therein that could give rise to a substantial understatement of federal income Tax within the meaning of Code §6662.
Target is not a party to or bound by any Tax allocation or sharing agreement. Target (A) has not been a member of an Affiliated Group filing a consolidated federal income Tax Return (other than a group the common parent of which was Target) or
(B) has no Liability for the Taxes of any Person (other than Target) under Reg. §1.1502-6 (or any similar provision of state, local, or non-U.S. law), as a transferee or successor, by contract, or otherwise. 

(vi) §4(k) of the Disclosure Schedule sets forth the following information with respect to each Target as of the most
recent practicable date (as well as on an estimated pro forma basis as of the Closing giving effect to the consummation of the transactions contemplated hereby): (A) the basis of Target in its assets; (B) the amount of any net operating
loss, net capital loss, unused investment or other credit, unused foreign tax credit, or excess charitable contribution allocable to Target; and (C) the amount of any deferred gain or loss allocable to Target arising out of any intercompany
transaction. 
 (vii) The unpaid Taxes of Target (A) did not, as of the Most Recent Fiscal Month End, exceed
the reserve for Tax Liability (rather than any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) and
(B) do not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Target in filing their Tax Returns. Since the date of the Most Recent Balance Sheet, Target has not
incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the Ordinary Course of Business consistent with past custom and practice. 

  
 16 

 (viii) Target will not be required to include any item of income in, or
exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: 
 (A) change in method of accounting for a taxable period ending on or prior to the Closing Date; 
 (B) “closing agreement” as described in Code §7121 (or any corresponding or similar provision of state, local, or non-U.S. income Tax law) executed on or prior to the Closing Date;

 (C) intercompany transaction or excess loss account described in Treasury Regulations under Code §1502
(or any corresponding or similar provision of state, local, or non-U.S. income Tax law); 
 (D) installment sale
or open transaction disposition made on or prior to the Closing Date; 
 (E) prepaid amount received on or prior
to the Closing Date; or 
 (F) election under Code §108(i). 

(ix) Target has not distributed interests of another Person (whether capital stock, membership interests, or otherwise),
or has had its Membership Interest distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Code §355 or Code §361. 

(x) Target is not and has not been a party to any “reportable transaction,” as defined in Code §6707A(c)(1)
and Reg. §1.6011-4(b). 
 (xi) Target (A) is not a “controlled foreign corporation” as
defined in Code §957, (B) is a “passive foreign investment company” within the meaning of Code §1297, or (C) has not established a permanent establishment (within the meaning of an applicable Tax treaty) or otherwise
has an office or fixed place of business in a country other than the country in which it is organized. 
 (xii)
Target has not received any private letter ruling from the Internal Revenue Service (or any comparable ruling from any other taxing authority). 
 (l) Real Property. 
 (i) §4(l)(i) of the Disclosure
Schedule sets forth the address and description of each parcel of Owned Real Property. With respect to each parcel of Owned Real Property: 
 (A) Target has good and marketable indefeasible fee simple title, free and clear of all Liens, except Permitted Encumbrances; 

(B) except as set forth in §4(l)(i)(B) of the Disclosure Schedule, Target has not leased or otherwise granted to any
Person the right to use or occupy such Owned Real Property or any portion thereof; and 
 (C) other than the
right of Buyer pursuant to this Agreement, there are no outstanding options, rights of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein. 

  
 17 

 (ii) §4(l)(ii) of the Disclosure Schedule sets forth the address of
each parcel of Leased Real Property, and a true and complete list of all Leases for each such Leased Real Property (including the date and name of the parties to such Lease document). Target has delivered to Buyer a true and complete copy of each
such Lease document, and in the case of any oral Lease, a written summary of the material terms of such Lease. Except as set forth in §4(l)(ii) of the Disclosure Schedule, with respect to each of the Leases: 

(A) such Lease is legal, valid, binding, enforceable and in full force and effect; 

(B) the transactions contemplated by this Agreement do not require the consent of any other party to such Lease (except
for those Leases for which Lease Consents (as hereinafter defined) are obtained), will not result in a breach of or default under such Lease, and will not otherwise cause such Lease to cease to be legal, valid, binding, enforceable and in full force
and effect on identical terms following the Closing; 
 (C) Target’s possession and quiet enjoyment of the
Leased Real Property under such Lease has not been disturbed and there are no disputes with respect to such Lease; 
 (D) neither Target nor any other party to the Lease is in breach of or default under such Lease, and no event has occurred or circumstance exists that, with the delivery of notice, the passage of time or
both, would constitute such a breach or default, or permit the termination, modification or acceleration of rent under such Lease; 
 (E) no security deposit or portion thereof deposited with respect to such Lease has been applied in respect of a breach of or default under such Lease that has not been redeposited in full; 

(F) Target does not owe, or will owe in the future, any brokerage commissions or finder’s fees with respect to such
Lease; 
 (G) the other party to such Lease is not an Affiliate of, and otherwise does not have any economic
interest in, Target; 
 (H) Target has not subleased, licensed or otherwise granted any Person the right to use
or occupy the Leased Real Property or any portion thereof; 
 (I) Target has not collaterally assigned or granted
any other Lien in such Lease or any interest therein; and 
 (J) there are no Liens on the estate or interest
created by such Lease. 
 (iii) The Owned Real Property identified in §4(l)(i) of the Disclosure Schedule
and the Leased Real Property identified in §4(l)(ii) of the Disclosure Schedule (collectively, the “Real Property”), comprise all of the real property used or intended to be used in, or otherwise related to, Target’s
business; and Target is not a party to any agreement or option to purchase any real property or interest therein. 
 (iv) All buildings, structures, fixtures, building systems and equipment, and all components thereof, including the roof, foundation, load-bearing walls and other structural elements thereof,

  
 18 

 
heating, ventilation, air conditioning, mechanical, electrical, plumbing and other building systems, environmental control, remediation and abatement systems, sewer, storm and waste water
systems, irrigation and other water distribution systems, parking facilities, fire protection, security and surveillance systems, and telecommunications, computer, wiring and cable installations, included in the Real Property (the
“Improvements”) are in good condition and repair and sufficient for the operation of Target’s business. There are no structural deficiencies or latent defects affecting any of the Improvements and there are no facts or
conditions affecting any of the Improvements that would, individually or in the aggregate, interfere in any respect with the use or occupancy of the Improvements or any portion thereof in the operation of Target’s business as currently
conducted thereon. 
 (v) There is no condemnation, expropriation or other proceeding in eminent domain, pending
or threatened, affecting any parcel of Real Property or any portion thereof or interest therein. There is no injunction, decree, order, writ or judgment outstanding, or any claim, litigation, administrative action or similar proceeding, pending or
threatened, relating to the ownership, lease, use or occupancy of the Real Property or any portion thereof, or the operation of Target’s business as currently conducted thereon. 

(vi) The Real Property is in compliance with all applicable building, zoning, subdivision, health and safety and other
land use laws, including The Americans with Disabilities Act of 1990, as amended, and all insurance requirements affecting the Real Property (collectively, the “Real Property Laws”), and the current use and occupancy of the Real
Property and operation of Target’s business thereon do not violate any Real Property Laws. Target has not received any notice of violation of any Real Property Law and there is no Basis for the issuance of any such notice or the taking of any
action for such violation. There is no pending or anticipated change in any Real Property Law that will materially impair the ownership, lease, use or occupancy of any Real Property or any portion thereof in the continued operation of Target’s
business as currently conducted thereon. 
 (vii) Each parcel of Real Property has direct vehicular and
pedestrian access to a public street adjoining the Real Property, or has vehicular and pedestrian access to a public street via an insurable, permanent, irrevocable and appurtenant easement benefitting such parcel of Real Property, and such access
is not dependent on any land or other real property interest that is not included in the Real Property. None of the Improvements or any portion thereof is dependent for its access, use or operation on any land, building, improvement or other real
property interest that is not included in the Real Property. 
 (viii) All water, oil, gas, electrical, steam,
compressed air, telecommunications, sewer, storm and waste water systems and other utility services or systems for the Real Property have been installed and are operational and sufficient for the operation of Target’s business as currently
conducted thereon. Each such utility service enters the Real Property from an adjoining public street or valid private easement in favor of the supplier of such utility service or appurtenant to such Real Property, and is not dependent for its
access, use or operation on any land, building, improvement or other real property interest that is not included in the Real Property. 
 (ix) All certificates of occupancy, permits, licenses, franchises, consents, approvals and authorizations (collectively, the “Real Property Permits”) of all governmental authorities,
boards of fire underwriters, associations, any quasi-governmental agency, or any other entity having jurisdiction over the Real Property that are required or appropriate to use or occupy the Real Property or operate Target’s business as
currently conducted thereon, have been issued and are in full force and effect. §4(l)(ix) of the Disclosure Schedule lists all material Real Property Permits held by Target with respect to each parcel of Real Property. Target has delivered to
Buyer a true and complete copy of all Real Property Permits. Target has not received any notice from any governmental authority or other entity having jurisdiction over the Real Property threatening a suspension, revocation, modification or

  
 19 

 
cancellation of any Real Property Permit and there is no Basis for the issuance of any such notice or the taking of any such action. The Real Property Permits are transferable to Buyer without
the consent or approval of the issuing governmental authority or entity; no disclosure, filing or other action by Target is required in connection with such transfer; and Buyer shall not be required to assume any additional liabilities or
obligations under the Real Property Permits as a result of such transfer. 
 (x) The classification of each
parcel of Real Property under applicable zoning laws, ordinances and regulations permits the use and occupancy of such parcel and the operation of Target’s business as currently conducted thereon, and permits the Improvements located thereon as
currently constructed, used and occupied. There are sufficient parking spaces, loading docks and other facilities at such parcel to comply with such zoning laws, ordinances and regulations. Target’s use or occupancy of the Real Property or any
portion thereof or the operation of Target’s business as currently conducted thereon is not dependent on a “permitted non-conforming use” or “permitted non-conforming structure” or similar variance, exemption or approval
from any governmental authority. 
 (xi) The current use and occupancy of the Real Property and the operation of
Target’s business as currently conducted thereon does not violate any easement, covenant, condition, restriction or similar provision in any instrument of record or other unrecorded agreement affecting such Real Property (the
“Encumbrance Documents”). Neither of Sellers or Target has received any notice of violation of any Encumbrance Documents, and there is no Basis for the issuance of any such notice or the taking of any action for such violation.

 (xii) None of the Improvements encroaches on any land that is not included in the Real Property or on any
easement affecting such Real Property, or violates any building lines or set-back lines, and there are no encroachments onto the Real Property, or any portion thereof, that would interfere with the use or occupancy of such Real Property or the
continued operation of Target’s business as currently conducted thereon. 
 (xiii) Each parcel of Real
Property is a separate lot for real estate tax and assessment purposes, and no other real property is included in such tax parcel. There are no Taxes, assessments, fees, charges or similar costs or expenses imposed by any governmental authority,
association or other entity having jurisdiction over the Real Property (collectively, the “Real Estate Impositions”) with respect to any Real Property or portion thereof that are delinquent. The Title Commitments set forth all Real
Estate Impositions that are due and payable with respect to such parcel. There is no pending or threatened increase or special assessment or reassessment of any Real Estate Impositions for such parcel. 

(xiv) None of the Real Property or any portion thereof is located in a flood hazard area (as defined by the Federal
Emergency Management Agency). 
 (xv) There is no amount due and payable to any architect, contractor,
subcontractor, materialman, or other person or entity for work or labor performed for, or materials or supplies provided to, or in connection with, any Real Property or portion thereof which is delinquent. There is no work or labor being performed
for, or materials or supplies being provided to, or in connection with, any Real Property or portion thereof, or to be performed or supplied prior to Closing, other than routine maintenance and repair work which costs and expenses through completion
will not exceed $1,000.00 and which shall be paid in full prior to Closing. 
 (xvi) Each Real Property has
access to water resources necessary in the operation of Target’s business as currently conducted thereon, and such access to and use of such water resources is not dependent on the ownership or lease of any other real property, easements, or
real property interests, contractual rights, shares, certificates, permits, or other rights, interests, or privileges of any kind which are not held by Target. 

  
 20 

 (xvii) There are no pending property insurance claims with respect to any
Real Property or any portion thereof. Target has not received any notice from any insurance company or any board of fire underwriters (or any entity exercising similar functions) with respect to any Real Property or any portion thereof:
(i) requesting Target to perform any repairs, alterations, improvements, or other work for such Real Property which Target has not completed in full or (ii) notifying Target of any defects or inadequacies in such Real Property which would
materially adversely affect the insurability of the Real Property or the premiums for the insurance thereof. 
 (m)
Intellectual Property. 
 (i) Target owns and possesses or has the right to access and use pursuant to a
valid and enforceable written license, sublicense, agreement, covenant not to sue, or permission all Intellectual Property necessary or desirable for the operation of the business of Target as presently conducted. Each item of Intellectual Property
owned, accessed, or used by Target immediately prior to the Closing will be owned or available for access and use by Target on identical terms and conditions immediately subsequent to the Closing. Target has taken all necessary and desirable action
to maintain and protect each item of Intellectual Property that they own or use. 
 (ii) Neither Target nor its
business as presently conducted has or will interfere with, infringe upon, dilute, misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third parties; there are no facts indicating a likelihood of the foregoing;
and none of Sellers has ever received any charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, dilution, or conflict (including any claim that Target must license or refrain from accessing or
using any Intellectual Property rights of any third party). To the Knowledge of any of Sellers, no third party has interfered with, infringed upon, diluted, misappropriated, or otherwise come into conflict with, any Intellectual Property rights of
Target. 
 (iii) §4(m)(iii) of the Disclosure Schedule identifies each patent or registration that has been
issued to Target with respect to any of its Intellectual Property, identifies each pending patent application or application for registration that Target has made with respect to any of its Intellectual Property, and identifies each license,
sublicense, agreement, covenant not to sue, or other permission that Target has granted to any third party with respect to any of its Intellectual Property (together with any exceptions). Sellers have delivered to Buyer correct and complete copies
of all such patents, registrations, applications, licenses, sublicenses, agreements, covenants not to sue, and permissions (as amended to date) and have made available to Buyer correct and complete copies of all other written documentation
evidencing ownership and prosecution (if applicable) of each such item. §4(m)(iii) of the Disclosure Schedule also identifies each unregistered trademark, service mark, logo, slogan, trade name, corporate name, Internet domain name, or other
source identifier, computer software item (other than commercially available off-the-shelf software purchased or licensed for less than a total cost of $1,000 in the aggregate) and each material unregistered copyright used by Target in connection
with its business. With respect to each item of Intellectual Property required to be identified in §4(m)(iii) of the Disclosure Schedule: 
 (A) Target owns and possesses all right, title, and interest in and to the item, free and clear of any Lien, license, or other restriction or limitation regarding access, use, or disclosure; 

(B) the item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 

(C) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to the
Knowledge of any of Sellers and the directors and officers (and employees with responsibility for Intellectual Property matters) of Target, is threatened that challenges the legality, validity, enforceability, access, use, or ownership of the item,
and there are no grounds for the same; 

  
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 (D) Target has not agreed to indemnify any Person for or against any
interference, infringement, dilution, misappropriation, or other conflict with respect to the item; and 
 (E) no
loss or expiration of the item is threatened, pending, or reasonably foreseeable, except for patents expiring at the end of their statutory terms (and not as a result of any act or omission by Sellers or Target, including without limitation, a
failure by Sellers or Target to pay any required maintenance fees). 
 (iv) §4(m)(iv) of the Disclosure
Schedule identifies each item of Intellectual Property that any third party owns and that Target accesses or uses pursuant to license, sublicense, agreement, covenant not to sue, or permission. Sellers have delivered to Buyer correct and complete
copies of all such licenses, sublicenses, agreements, covenants not to sue, and permissions (each as amended to date). With respect to each item of Intellectual Property required to be identified in §4(m)(iv) of the Disclosure Schedule:

 (A) the license, sublicense, agreement, covenant not to sue, or permission covering the item is legal, valid,
binding, enforceable, and in full force and effect; 
 (B) the license, sublicense, agreement, covenant not to
sue, or permission will continue to be legal, valid, binding, enforceable, and in full force and effect on identical terms following consummation of the transactions contemplated hereby; 

(C) no party to the license, sublicense, agreement, covenant not to sue, or permission is in breach or default, and no
event has occurred that with notice or lapse of time would constitute a breach or default or permit termination, modification, or acceleration thereunder; 
 (D) no party to the license, sublicense, agreement, covenant not to sue, or permission has repudiated any provision thereof; 

(E) with respect to each sublicense, the representations and warranties set forth in subsections (A) through
(D) above are true and correct with respect to the underlying license; 
 (F) the underlying item of
Intellectual Property is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 

(G) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to the
Knowledge of any of Sellers and the directors and officers (and employees with responsibility for Intellectual Property matters) of Target is threatened that challenges the legality, validity, or enforceability of the underlying item of Intellectual
Property, and there are no grounds for the same; 
 (H) Target has not granted any sublicense or similar right
with respect to the license, sublicense, agreement, covenant not to sue, or permission; and 
 (v) None of
Sellers and the directors and officers (and employees with responsibility for Intellectual Property matters) of Target has any Knowledge of any new products, inventions, procedures, or methods of manufacturing or processing that any competitors or
other third parties have developed that reasonably could be expected to supersede or make obsolete any product or process of Target or to limit the business of Target as presently conducted. 

(vi) Sellers have taken all necessary and desirable actions to maintain and protect all of the Intellectual Property of
Target and will continue to maintain and protect all of the Intellectual Property of Target prior to Closing so as not to adversely affect the validity or enforceability thereof. To the Knowledge of any of Sellers, the owners of any of the
Intellectual Property licensed to, or used by, Target has taken all necessary and desirable actions to maintain and protect the Intellectual Property. 

  
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 (vii) Sellers have complied with, and are presently in compliance with, all
federal, state, local, and non-U.S. governmental (including, but not limited to, the Federal Trade Commission and State Attorneys General), administrative, or regulatory laws, regulations, guidelines, and rules applicable to any Intellectual
Property or to personal information and Sellers shall take all steps necessary to ensure such compliance until Closing. 
 (n)
Tangible Assets. Target owns or leases all buildings, machinery, equipment, and other tangible assets necessary for the conduct of their business as presently conducted. Each such tangible asset is free from defects (patent and latent), has
been maintained in accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it presently is used. 

(o) Inventory. The inventory of Target consists of raw materials and supplies, manufactured and purchased parts, goods in process,
and finished goods, all of which is merchantable and fit for the purpose for which it was procured or manufactured, and none of which is slow-moving, obsolete, damaged, or defective, subject only to the reserve for inventory writedown set forth on
the face of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Target. 

(p) Contracts. §4(p) of the Disclosure Schedule lists the following contracts and other agreements to which Target is a
party: 
 (i) any agreement (or group of related agreements) for the lease of personal property to or from any
Person providing for lease payments in excess of $1,000.00 per annum; 
 (ii) any agreement (or group of related
agreements) for the purchase or sale of raw materials, commodities, supplies, products, or other personal property, or for the furnishing or receipt of services, the performance of which will extend over a period of more than 1 year, result in a
loss to Target, or involve consideration in excess of $1,000.00; 
 (iii) any agreement concerning a partnership
or joint venture; 
 (iv) any agreement (or group of related agreements) under which it has created, incurred,
assumed, or guaranteed any indebtedness for borrowed money, or any capitalized lease obligation, in excess of $1,000.00 or under which it has imposed a Lien on any of its assets, tangible or intangible; 

(v) any agreement concerning confidentiality or non-competition; 

(vi) any agreement with any of Sellers and their Affiliates (other than Target); 

(vii) any profit sharing, Membership Interest Purchase option, deferred compensation, severance, or other plan or
arrangement for the benefit of its current or former directors, officers, and employees; 
 (viii) any collective
bargaining agreement; 
 (ix) any agreement for the employment of any individual on a full-time, part-time,
consulting, or other basis providing annual compensation in excess of $1,000.00 or providing severance benefits; 

(x) any agreement under which it has advanced or loaned any amount to any of its directors, officers, and employees
outside the Ordinary Course of Business; 
 (xi) any agreement under which the consequences of a default or
termination could have a Material Adverse Effect; 
 (xii) any agreement under which it has granted any Person
any registration rights (including, without limitation, demand and piggyback registration rights); 
 (xiii) any
settlement, conciliation or similar agreement with any Governmental Entity or which will require satisfaction of any obligations after the execution date of this Agreement; 

  
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 (xiv) any agreement under which Target has advanced or loaned any other
Person amounts in the aggregate exceeding $1,000.00; or 
 (xv) any other agreement (or group of related
agreements) the performance of which involves consideration in excess of $1,000.00. 
 Sellers have delivered to Buyer a correct and complete
copy of each written agreement (as amended to date) listed in §4(p) of the Disclosure Schedule and a written summary setting forth the terms and conditions of each oral agreement referred to in §4(p) of the Disclosure Schedule. With
respect to each such agreement: (A) the agreement is legal, valid, binding, enforceable, and in full force and effect; (B) the agreement will continue to be legal, valid, binding, enforceable, and in full force and effect on identical
terms following the consummation of the transactions contemplated hereby; (C) no party is in breach or default, and no event has occurred that with notice or lapse of time would constitute a breach or default, or permit termination,
modification, or acceleration, under the agreement; and (D) no party has repudiated any provision of the agreement. 
 (q)
Notes and Accounts Receivable. All notes and accounts receivable of Target are reflected properly on their books and records, are valid receivables subject to no setoffs or counterclaims, are current and collectible, and will be collected in
accordance with their terms at their recorded amounts, subject only to the reserve for bad debts set forth on the face of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for the passage of time through the Closing Date
in accordance with the past custom and practice of Target. 
 (r) Powers of Attorney. There are no outstanding powers of
attorney executed on behalf of Target. 
 (s) Insurance. §4(s) of the Disclosure Schedule sets forth the following
information with respect to each insurance policy (including policies providing property, casualty, liability, and workers’ compensation coverage and bond and surety arrangements) to which Target has been a party, a named insured, or otherwise
the beneficiary of coverage at any time within the past 10 years: 
 (i) the name, address, and telephone number
of the agent; 
 (ii) the name of the insurer, the name of the policyholder, and the name of each covered
insured; 
 (iii) the policy number and the period of coverage; 

(iv) the scope (including an indication of whether the coverage was on a claims made, occurrence, or other basis) and
amount (including a description of how deductibles and ceilings are calculated and operate) of coverage; and 

(v) a description of any retroactive premium adjustments or other loss-sharing arrangements. 

With respect to each such insurance policy: (A) the policy is legal, valid, binding, enforceable, and in full force and effect; (B) the policy
will continue to be legal, valid, binding, enforceable, and in full force and effect on identical terms following the consummation of the transactions contemplated hereby; (C) neither Target, nor any other party to the policy is in breach or
default (including with respect to the payment of premiums or the giving of notices), and no event has occurred that, with notice or the lapse of time, would constitute such a breach or default, or permit termination, modification, or acceleration,
under the policy; and (D) no party to the policy has repudiated any provision thereof. Target has been covered during the past 10 years by insurance in scope and amount customary and reasonable for the businesses in which it has engaged during
the aforementioned period. §4(s) of the Disclosure Schedule describes any self-insurance arrangements affecting Target. 

(t) Litigation. §4(t) of the Disclosure Schedule sets forth each instance in which Target (i) is subject to any
outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is a party or, to the Knowledge of any of Sellers and the directors and officers (and employees with responsibility for litigation matters) of Target is threatened to be
made a party to any action, suit, proceeding, hearing, or 

  
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investigation of, in, or before (or that could come before) any court or quasi-judicial or administrative agency of any federal, state, local, or non-U.S. jurisdiction or before (or that could
come before) any arbitrator. None of the actions, suits, proceedings, hearings, and investigations set forth in §4(t) of the Disclosure Schedule could result in any Material Adverse Change. None of Sellers and the directors and officers (and
employees with responsibility for litigation matters) of Target has any reason to believe that any such action, suit, proceeding, hearing, or investigation may be brought or threatened against Target or that there is any Basis for the foregoing.

 (u) Product Warranty. Each product manufactured, sold, leased, or delivered by Target has been in conformity with all
applicable contractual commitments and all express and implied warranties, and Target does not have any Liability (and there is no Basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand
against any of them giving rise to any Liability) for replacement or repair thereof or other damages in connection therewith, subject only to the reserve for product warranty claims set forth on the face of the Most Recent Balance Sheet (rather than
in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Target. §4(u) of the Disclosure Schedule includes copies of the standard terms and conditions of sale or lease
for Target (containing applicable guaranty, warranty, and indemnity provisions). No product manufactured, sold, leased, or delivered by Target is subject to any guaranty, warranty, or other indemnity beyond the applicable standard terms and
conditions of sale or lease set forth in §4(u) of the Disclosure Schedule. 
 (v) Product Liability. Target does not
have any Liability (and there is no Basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against it giving rise to any Liability) arising out of any injury to individuals or property
as a result of the ownership, possession, or use of any product manufactured, sold, leased, or delivered by Target. 
 (w)
Employees. 
 (i) With respect to the business of Target: 

(A) there is no collective bargaining agreement or relationship with any labor organization; 

(B) to the Knowledge of any of Sellers or Target, no executive or manager of Target (1) has any present intention to
terminate his or her employment, or (2) is a party to any confidentiality, non-competition, proprietary rights or other such agreement between such employee and any Person besides such entity that would be material to the performance of such
employee’s employment duties, or the ability of such entity or Buyer to conduct the business of such entity; 
 (C) no labor organization or group of employees has filed any representation petition or made any written or oral demand for recognition; 

(D) to the Knowledge of any of Sellers or Target, no union organizing or decertification efforts are underway or
threatened and no other question concerning representation exists; 
 (E) no labor strike, work stoppage,
slowdown, or other material labor dispute has occurred, and none is underway or, to the Knowledge of Target, threatened; 
 (F) there is no workman’s compensation liability, experience or matter outside the ordinary course of business; 

(G) there is no employment-related charge, complaint, grievance, investigation, inquiry or obligation of any kind, pending
or threatened in any forum, relating to an alleged violation or breach by Target (or its officers or directors) of any law, regulation or contract; and, 
 (H) no employee or agent of Target has committed any act or omission giving rise to material liability for any violation or breach identified in subsection (G) above. 

  
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 (ii) Except as set forth in §4(w) of the Disclosure Schedule,
(A) there are no employment contracts or severance agreements with any employees of Target, and (B) there are no written personnel policies, rules, or procedures applicable to employees of Target. True and complete copies of all such
documents have been provided to Buyer prior to the date of this Agreement. 
 (iii) With respect to this
transaction, any notice required under any law or collective bargaining agreement has been or prior to the Closing Date will be given, and all bargaining obligations with any employee representative have been or prior to the Closing Date will be
satisfied. Within the past 3 years, Target has not implemented any plant closing or layoff of employees that could implicate the WARN Act, and no such action will be implemented without advance notification to Buyer. 

(x) Employee Benefits. 
 (i) §4(x) of the Disclosure Schedule lists each Employee Benefit Plan that Target maintains, to which Target contributes or has any obligation to contribute, or with respect to which Target has any
Liability. 
 (A) Each such Employee Benefit Plan (and each related trust, insurance contract, or fund) has been
maintained, funded and administered in accordance with the terms of such Employee Benefit Plan and the terms of any applicable collective bargaining agreement and complies in form and in operation in all respects with the applicable requirements of
ERISA, the Code, and other applicable laws. 
 (B) All required reports and descriptions (including Form 5500
annual reports, summary annual reports, and summary plan descriptions) have been timely filed and/or distributed in accordance with the applicable requirements of ERISA and the Code with respect to each such Employee Benefit Plan. The requirements
of COBRA have been met with respect to each such Employee Benefit Plan and each Employee Benefit Plan maintained by an ERISA Affiliate that is an Employee Welfare Benefit Plan subject to COBRA. 

(C) All contributions (including all employer contributions and employee salary reduction contributions) that are due have
been made within the time periods prescribed by ERISA and the Code to each such Employee Benefit Plan that is an Employee Pension Benefit Plan and all contributions for any period ending on or before the Closing Date that are not yet due have been
made to each such Employee Pension Benefit Plan or accrued in accordance with the past custom and practice of Target. All premiums or other payments for all periods ending on or before the Closing Date have been paid with respect to each such
Employee Benefit Plan that is an Employee Welfare Benefit Plan. 
 (D) Each such Employee Benefit Plan that is
intended to meet the requirements of a “qualified plan” under Code §401(a) has received a determination from the Internal Revenue Service that such Employee Benefit Plan is so qualified, and nothing has occurred since the date of such
determination that could adversely affect the qualified status of any such Employee Benefit Plan. All such Employee Benefit Plans have been timely amended for all such requirements and have been submitted to the Internal Revenue Service for a
favorable determination letter within the latest applicable remedial amendment period. 
 (E) There have been no
Prohibited Transactions with respect to any such Employee Benefit Plan or any Employee Benefit Plan maintained by an ERISA Affiliate. No Fiduciary has any Liability for breach of fiduciary duty or any other failure to act or comply in connection
with the administration or investment of the assets of any such Employee Benefit Plan. No action, suit, proceeding, hearing, or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other
than routine claims for benefits) is pending or, to the Knowledge of any of Sellers and the directors and officers (and employees with responsibility for employee benefits matters) of Target, threatened. None of Sellers and the directors and
officers (and employees with responsibility for employee benefits matters) of Target has any Knowledge of any Basis for any such action, suit, proceeding, hearing, or investigation. 

  
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 (F) Sellers have delivered to Buyer correct and complete copies of the plan
documents and summary plan descriptions, the most recent determination letter received from the Internal Revenue Service, the most recent annual report (Form 5500, with all applicable attachments), and all related trust agreements, insurance
contracts, and other funding arrangements that implement each such Employee Benefit Plan. 
 (ii) Neither Target,
nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any Liability under or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in ERISA §3(35)). No asset of
Target is subject to any Lien under ERISA or the Code. 
 (iii) Neither Target, nor any ERISA Affiliate
contributes to, has any obligation to contribute to, or has any Liability (including withdrawal liability as defined in ERISA §4201) under or with respect to any Multiemployer Plan. 

(y) Guaranties. Target is not a guarantor or otherwise liable for any Liability (including indebtedness) of any other Person.

 (z) Environmental, Health, and Safety Matters. 

(i) Target and its respective predecessors and Affiliates have at all times complied and are in compliance with all
Environmental, Health, and Safety Requirements. 
 (ii) Without limiting the generality of the foregoing, Target
and its respective Affiliates have obtained and at all times complied with, and are in compliance with, all Governmental Authorizations that are required pursuant to Environmental, Health, and Safety Requirements for the ownership, occupation or use
of their property or facilities and the operation of their business; and a list of all such permits Governmental Authorizations is set forth on §4(z) of the Disclosure Schedule. 

(iii) Target, nor its respective predecessors or Affiliates has received any written or oral notice, report, order,
directive, or other information regarding any actual or alleged violation of Environmental, Health, and Safety Requirements, or any Liabilities, including any investigatory, remedial, or corrective obligations, relating to any of them, their
business, or their past or current facilities arising under Environmental, Health, and Safety Requirements. 

(iv) None of the following exists at any property or facility owned, leased or operated by Target and none of the
following existed at any property or facility previously owned, leased or operated by the Target at or before the time the Target ceased to own, lease or operate such property or facility: (1) underground storage tanks,
(2) asbestos-containing material in any form or condition, (3) materials or equipment containing polychlorinated biphenyls, (4) groundwater monitoring wells, drinking water wells, or production water wells, or (5) landfills,
surface impoundments, or disposal areas. All storage tanks, injection wells, septic tanks, or other underground structures and associated piping now or previously at any facility owned, leased or operated by the Target which were previously removed
from service have been properly removed or otherwise closed, plugged and abandoned, and any related releases of Contaminants have been remediated, in compliance with all applicable Environmental, Health and Safety Requirements. 

(v) Neither Target nor its respective predecessors or Affiliates has treated, stored, disposed of, arranged for or
permitted the disposal of, transported, handled, manufactured, distributed, exposed any person to, or released any substance, including without limitation any hazardous substance, or owned or operated any property or facility which is or has been
contaminated by any such substance so as to give rise to any current or future Liabilities, including any Liability for fines, penalties, response costs, corrective action costs, personal injury, property damage, natural resources damages, or
attorneys’ fees, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), the Solid Waste Disposal Act, as amended (“SWDA”), or any other Environmental, Health, and
Safety Requirements. 

  
 27 

 (vi) Neither this Agreement nor the consummation of the transactions that
are the subject of this Agreement will result in any obligations for site investigation or cleanup, or notification to or consent of government agencies or third parties, pursuant to any of the so-called “transaction-triggered” or
“responsible property transfer” Environmental, Health, and Safety Requirements. 
 (vii) Neither Target
nor its respective predecessors or Affiliates has designed, manufactured, sold, marketed, installed, or distributed products or other items containing asbestos and none of such entities is or will become subject to any Liabilities with respect to
the presence of asbestos in any product or item or in or upon any property, premises, or facility. No liens have arising under or pursuant to any Environmental, Health and Safety Requirements applicable to any facility, property or Assets, and no
action has been taken or threatened by any governmental body or any other person or entity that could subject any facility, property or Assets to a lien under any Environmental Health and Safety Requirements. 

(viii) Target has not assumed, undertaken, provided an indemnity with respect to, or otherwise become subject to, any
Liability, including without limitation any obligation for corrective or remedial action, of any other Person relating to Environmental, Health, and Safety Requirements. 

(ix) No facts, events, or conditions relating to the past or present facilities, properties, or operations of Target, or
its respective predecessors or Affiliates will prevent, hinder, or limit continued compliance with Environmental, Health, and Safety Requirements, give rise to any investigatory, remedial, or corrective obligations pursuant to Environmental, Health,
and Safety Requirements, or give rise to any other Liabilities pursuant to Environmental, Health, and Safety Requirements, including without limitation any relating to on-site or off-site releases or threatened releases of, or exposure to, hazardous
materials, substances or wastes, personal injury, property damage or natural resources damage. 
 (x) Sellers and
Target have furnished to Buyer all environmental audits, reports, and other material environmental documents relating to Target’s or its respective predecessors’ or Affiliates’ past or current properties, facilities, or operations
that are in their possession, custody, or under their reasonable control. 
 (aa) Business Continuity. 

(i) None of the computer software, computer hardware (whether general or special purpose), telecommunications capabilities
(including all voice, data and video networks) and other similar or related items of automated, computerized, and/or software systems and any other networks or systems and related services that are used by or relied on by Target in the conduct of
its business (collectively, the “Systems”) have experienced bugs, failures, breakdowns, or continued substandard performance in the past 12 months that has caused any substantial disruption or interruption in or to the use of any
such Systems by Target. 
 (ii) Target is covered by business interruption insurance in scope and amount
customary and reasonable to ensure its ongoing business operations. 
 (bb) Computer and Technology Security. Target has
taken all reasonable steps to safeguard the information technology systems utilized in the operation of the business of Target, including the implementation of procedures to ensure that such information technology systems are free from any disabling
codes or instructions, timer, copy protection device, clock, counter or other limiting design or routing and any “back door,” “time bomb,” “Trojan horse,” “worm,” “drop dead device,”
“virus,” or other software routines or hardware components that in each case permit unauthorized access or the unauthorized disablement or unauthorized erasure of data or other software by a third party, and to date there have been no
successful unauthorized intrusions or breaches of the security of the information technology systems. 

  
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 (cc) Certain Business Relationships with Target. None of Sellers, their Affiliates,
Sellers’ directors, officers, employees and shareholders and Target’s directors, officers, employees, and shareholders has been involved in any business arrangement or relationship with Target within the past 12 months, and none of
Sellers, their Affiliates, Seller’s directors, officers, employees and shareholders and Target’s directors, officers, employees, and shareholders owns any asset, tangible or intangible, that is used in the business of Target. 

(dd) Customers and Suppliers. 
 (i) §4(dd) of the Disclosure Schedule lists the 5 largest customers of Target (on a consolidated basis) for each of the 2 most recent fiscal years and sets forth opposite the name of each such
customer the percentage of consolidated net sales attributable to such customer. §4(dd) of the Disclosure Schedule also lists any additional current customers that Target anticipates shall be among the 5 largest customers for the current fiscal
year. 
 (ii) Since the date of the Most Recent Balance Sheet, no supplier of Target has indicated that it shall
stop, or decrease the rate of, supplying materials, products or services to Target, and no customer listed on §4(dd) of the Disclosure Schedule has indicated that it shall stop, or decrease the rate of, buying materials, products or services
from Target. 
 (ee) Data Privacy. Target’s business has complied with and, as presently conducted is in compliance
with, all Data Laws. 
 (ff) Disclosure. The representations and warranties contained in this §4 do not contain any
untrue statement of a fact or omit to state any fact necessary in order to make the statements and information contained in this §4 not misleading. 
 §5. Pre-Closing Covenants. The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing: 

(a) General. Each of the Parties will use his, her, or its reasonable best efforts to take all actions and to do all things
necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including satisfaction, but not waiver, of the Closing conditions set forth in §7 below). 

(b) Notices and Consents. Sellers will cause Target to give any notices to third parties, and will cause Target to use its
reasonable best efforts to obtain any third-party consents referred to in §4(c) above, the Lease Consents, and the items set forth on §5(b) of the Disclosure Schedule. Each of the Parties will (and Sellers will cause Target to) give any
notices to, make any filings with, and use its reasonable best efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies in connection with the matters referred to in §3(a)(ii), §3(b)(ii), and
§4(c) above. 
 (c) Operation of Business. Sellers will not cause or permit Target to engage in any practice, take
any action, or enter into any transaction outside the Ordinary Course of Business. Without limiting the generality of the foregoing, Sellers will not cause or permit Target to (i) declare, set aside, or pay any dividend or make any distribution
with respect to its membership interest or redeem, purchase, or otherwise acquire any of its membership interest, or (ii) otherwise engage in any practice, take any action, or enter into any transaction of the sort described in §4(h)
above. 
 (d) Preservation of Business. Sellers will cause Target to keep its business and properties substantially
intact, including its present operations, physical facilities, working conditions, insurance policies, and relationships with lessors, licensors, suppliers, customers, and employees. 

  
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 (e) Full Access. Each of Sellers will permit, and Sellers will cause Target to
permit, representatives of Buyer (including legal counsel and accountants) to have full access at all reasonable times, and in a manner so as not to interfere with the normal business operations of Target, to all premises, properties, personnel,
books, records (including Tax records), contracts, and documents of or pertaining to Target. 
 (f) Notice of Developments.
Sellers will give prompt written notice to Buyer of any material adverse development causing a breach of any of the representations and warranties in §4 above. Each Party will give prompt written notice to the others of any material adverse
development causing a breach of any of his, her, or its own representations and warranties in §3 above. No disclosure by any Party pursuant to this §5(f), however, shall be deemed to amend or supplement Annex I, Annex II, or the Disclosure
Schedule or to prevent or cure any misrepresentation, breach of warranty, or breach of covenant. 
 (g) Exclusivity. None
of Sellers will (and Sellers will not cause or permit Target to) (i) solicit, initiate, or encourage the submission of any proposal or offer from any Person relating to the acquisition of any membership interest or other voting securities, or
any substantial portion of the assets, of Target (including any acquisition structured as a merger, consolidation, or share exchange) or (ii) participate in any discussions or negotiations regarding, furnish any information with respect to,
assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing. None of Sellers will vote their Target Membership Interests in favor of any such acquisition. Sellers will notify
Buyer immediately if any Person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing. 
 (h)
Maintenance of Real Property. Sellers will cause Target to maintain the Real Property, including all of the Improvements, in substantially the same condition as existed on the date of this Agreement, ordinary wear and tear excepted, and shall
not demolish or remove any of the existing Improvements, or erect new improvements on the Real Property or any portion thereof, without the prior written consent of Buyer. 
 (i) Leases. Sellers will not cause or permit any of Target’s Leases to be amended, modified, extended, renewed or terminated, nor shall Target enter into any new lease, sublease, license or
other agreement for the use or occupancy of any Real Property, without the prior written consent of Buyer. 
 (j) Title
Insurance and Surveys. Sellers will cause Target to use its best efforts to assist Buyer in obtaining the Title Commitments, Title Policies and Surveys in form and substance as set forth in §7 of this Agreement, within the time periods set
forth therein, including removing from title any Liens or encumbrances that are not Permitted Encumbrances. Sellers shall provide the Title Company with any affidavits, indemnities, memoranda or other assurances requested by the Title Company to
issue the Title Policies. 
 (k) Tax Matters. Without the prior written consent of Buyer, Target shall not make or change
any election, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment relating to Target, surrender any right to claim a refund of
Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to Target, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such election,
adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax liability of Target for any period ending after the Closing Date or decreasing any Tax attribute of Target existing on
the Closing Date. 
 §6. Post-Closing Covenants. The Parties agree as follows with respect to the period following
the Closing: 
 (a) General. In case at any time after the Closing any further actions are necessary to carry out the
purposes of this Agreement, each of the Parties will take such further actions (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request, all at the sole cost and expense of the
requesting Party (unless the requesting Party is entitled to indemnification 

  
 30 

 
therefore under §8 below). Sellers acknowledge and agree that from and after the Closing Buyer will be entitled to possession of all documents, books, records (including Tax records),
agreements, and financial data of any sort relating to Target. 
 (b) Litigation Support. In the event and for so long as
any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction contemplated under this Agreement or (ii) any fact,
situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving Target, each of the other Parties will cooperate with him, her, or it
and his, her, or its counsel in the contest or defense, make available his, her, or its personnel, and provide such testimony and access to his, her, or its books and records as shall be necessary in connection with the contest or defense, all at
the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is entitled to indemnification therefore under §8 below). 
 (c) Transition. None of Sellers will take any action that is designed or intended to have the effect of discouraging any lessor, licensor, customer, supplier, or other business associate of Target
from maintaining the same business relationships with Target after the Closing as it maintained with Target prior to the Closing. Each of Sellers will refer all customer inquiries relating to the business of Target to Buyer from and after the
Closing. 
 (d) Confidentiality. Each Seller will treat and hold as such all of the Confidential Information, refrain
from using any of the Confidential Information except in connection with this Agreement, and deliver promptly to Buyer or destroy, at the request and option of Buyer, all tangible embodiments (and all copies) of the Confidential Information that are
in his, her, or its possession. In the event that any Seller is requested or required pursuant to written or oral question or request for information or documents in any legal proceeding, interrogatory, subpoena, civil investigative demand, or
similar process to disclose any Confidential Information, such Seller will notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate protective order or waive compliance with the provisions of this §6(d). If, in
the absence of a protective order or the receipt of a waiver hereunder, any of Sellers is, on the advice of counsel, compelled to disclose any Confidential Information to any tribunal or else stand liable for contempt, such Seller may disclose the
Confidential Information to the tribunal; provided, however, that the disclosing Seller shall use his, her, or its reasonable best efforts to obtain, at the reasonable request of Buyer, an order or other assurance that confidential treatment will be
accorded to such portion of the Confidential Information required to be disclosed as Buyer shall designate. The foregoing provisions shall not apply to any Confidential Information that is generally available to the public immediately prior to the
time of disclosure unless such Confidential Information is so available due to the actions of a Seller. 
 (e) Covenant Not
to Compete. Except as noted below, for a period of 5 years from and after the Closing Date, none of Sellers will engage directly or indirectly in the Business of Target in any Geographic Area. For the purposes of this §6(e) only:
(i) the “Business of Target” is the acquisition, processing and supply of starch derivatives from potato, tapioca, corn and other sources; and (ii) the “Geographic Area” is any area where Target, the Asset Selling
Entities or 1 Freas Avenue conducts Business as of the Closing Date. If the final judgment of a court of competent jurisdiction declares that any term or provision of this §6(e) is invalid or unenforceable, the Parties agree that the court
making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a
term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within
which the judgment may be appealed. The 5 year period identified in the first sentence of this paragraph shall be reduced to one year for any Seller whose employment with the Buyer or any related company is terminated by the Buyer or any related
company for any reason other than Cause (as defined in the Stock Option). 

  
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 §7. Conditions to Obligation to Close. 

(a) Conditions to Buyer’s Obligation. Buyer’s obligation to consummate the Transaction, including the transactions to be
performed by it in connection with the Closing of this Agreement and the closing of the Asset Purchase Agreements is subject to satisfaction of the following conditions: 

(i) (a) the representations and warranties set forth in §3(a) and §4 above and (b) Seller’s (as
defined in the applicable Asset Purchase Agreement) representation and warranties set forth in the Asset Purchase Agreements shall be true and correct in all material respects at and as of the Closing Date, except to the extent that such
representations and warranties are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case such representations and warranties (as so written,
including the term “material” or “Material”) shall be true and correct in all respects at and as of the Closing Date; 
 (ii) (a) Sellers shall have performed and complied with all of their covenants hereunder in all material respects through the Closing, except to the extent that such covenants are qualified by the
term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case Sellers shall have performed and complied with all of such covenants (as so written, including the term
“material” or “Material”) in all respects through the Closing and (b) Seller (as defined in each Asset Purchase Agreement) shall have performed and complied with all of its covenants in the applicable Asset Purchase
Agreement in all material respects through the Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in
which case Seller shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects through the Closing; 

(iii) (a) Target shall have procured all of the third-party consents specified in §5(b) above and
(b) Seller (as defined in each Asset Purchase Agreement) shall have procured all of the third-party consents specified in each Asset Purchase Agreement; 
 (iv) no action, suit, or proceeding shall be pending or threatened before (or that could come before) any court or quasi-judicial or administrative agency of any federal, state, local, or non-U.S.
jurisdiction or before (or that could come before) any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of the Transaction or any of the transactions contemplated by this
Agreement or the Asset Purchase Agreements, (B) cause the Transaction or any of the transactions contemplated by this Agreement or the Asset Purchase Agreements to be rescinded following consummation, (C) adversely affect the right of
Buyer to own the Target Membership, to control Target, and/or to own the assets purchased pursuant to the Asset Purchase Agreements or (D) adversely affect the right of Target to own its assets and to operate its business (and no such
injunction, judgment, order, decree, ruling, or charge shall be in effect); 
 (v) Each Seller (as such term is
defined herein and in the Asset Purchase Agreements) shall have delivered to Buyer a certificate to the effect that each of the conditions specified above in §7(a)(i)-(iv) is satisfied in all respects; 

(vi) the Parties and Target shall have received all authorizations, consents, and approvals of governments and
governmental agencies referred to in (i) §3(a)(ii), §3(b)(ii), and §4(c) above and (ii) the Asset Purchase Agreements, if any; 
 (vii) the relevant parties shall have entered into side agreements in form and substance as set forth in Exhibits B-1 through B-5 attached hereto and the same shall be in full force and effect;

 (viii) Buyer shall have received from counsel to Sellers an opinion in form and substance as set forth in
Exhibit D attached hereto, addressed to Buyer and on which Buyer’s lenders shall be entitled to rely, and dated as of the Closing Date; 

  
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 (ix) Buyer shall have received the resignations, effective as of the
Closing, of each director and officer of Target other than those whom Buyer shall have specified in writing at least 5 business days prior to the Closing; 
 (x) Buyer shall have obtained on terms and conditions reasonably satisfactory to it all of the financing it needs in order to consummate the Transaction, including the transactions contemplated hereby and
the transactions contemplated in the Asset Purchase Agreements and to fund the working capital requirements of Target after the Closing; 
 (xi) all actions to be taken by Sellers in connection with consummation of the Transaction, including the transactions contemplated hereby and all certificates, opinions, instruments, and other documents
required to effect the Transaction and the transactions contemplated hereby shall be satisfactory in form and substance to Buyer; 
 (xii) Buyer shall have obtained, no later than 10 days prior to the Closing Date, a commitment for an ALTA Owner’s Title Insurance Policy 2006 Form or other form of policy acceptable to Buyer for
each Owned Real Property and each Leased Real Property identified by Buyer (the “Material Leased Real Property”), issued by a title insurance company satisfactory to Buyer (the “Title Company”), together with a copy
of all documents referenced therein (the “Title Commitments”); 
 (xiii) at Closing, Buyer shall
have obtained title insurance policies from the Title Company (which may be in the form of a mark-up of a pro forma of the Title Commitments) in accordance with the Title Commitments, insuring Target’s fee simple title to each Owned Real
Property or Target’s legal, valid, binding and enforceable leasehold interest in each Material Leased Real Property (as the case may be), as of the Closing Date (including all recorded appurtenant easements, insured as separate legal parcels),
with gap coverage from Sellers through the date of recording, subject only to Permitted Encumbrances, in such amount as Buyer determines to be the value of the Real Property insured thereunder and which shall include the endorsements identified
herein (the “Title Policies”); the Title Policies shall have the creditor’s rights exception deleted, and shall include the following endorsements (to the extent available in the applicable jurisdiction, but regardless of
whether any additional amount is charged for such endorsement), in form and substance reasonably acceptable to Buyer: (i) extended coverage endorsement (insuring over the general or standard exceptions); (ii) ALTA Form 3.1 zoning
endorsement (with parking and loading docks), or if unavailable in the applicable jurisdiction, a satisfactory zoning letter from the local zoning authorities; (iii) a survey accuracy endorsement (insuring that the Real Property described
therein is the real property shown on the Survey (as defined below) delivered with respect thereto and that such Survey is an accurate survey thereof); (iv) access endorsement (insuring that the Real Property described therein is adjacent to a
public street and has direct and unencumbered pedestrian and vehicular access to such public street); (v) ALTA Form 9 owner’s comprehensive endorsement; (vi) tax parcel number endorsement (insuring that the tax parcel number in the
endorsement includes all of the Real Property insured thereunder and no other real property); (vii) if the Real Property insured therein consists of one or more adjacent parcels, a contiguity endorsement (insuring that all of such parcels are
contiguous to one another without any gaps or gores); (viii) utilities endorsement (insuring the availability of utilities to the Real Property); (ix) non-imputation endorsement (to the effect that title defects known to the employees,
officers, directors, and members of Target prior to the Closing shall not be deemed to be “facts known to the insured”); and (x) such other endorsements as reasonably requested by Buyer; and Sellers shall pay all fees, costs and
expenses with respect to the Title Commitments and Title Policies; 
 (xiv) Real Property and Real Property
Located Outside of the U.S. [INTENTIONALLY DELETED]; 

  
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 (xv) Buyer shall have obtained, no later than 10 days prior to the Closing
Date, a survey for each Owned Real Property and Material Leased Real Property, dated no earlier than the date of this Agreement, prepared by a licensed surveyor in the jurisdiction where the real property is located, satisfactory to Buyer, and
conforming to 2005 ALTA/ACSM Minimum Detail Requirements for Land Title Surveys, including Table A Items Nos. 1, 2, 3, 4, 6, 7(a), 7(b)(1), 7(c), 8, 9, 10, 11(b), 13, 14, 15, and 16, and such other standards as the Title Company and Buyer require as
a condition to the removal of any survey exceptions from the Title Policies, and certified to Buyer, Buyer’s lender, and the Title Company, in a form and with a certification satisfactory to each of such parties (the
“Surveys”); the Surveys shall not disclose any encroachment from or onto any of the Real Property or any portion thereof or any other survey defect that has not been cured or insured over to Buyer’s reasonable satisfaction
prior to the Closing; and Sellers shall have paid or committed to pay all fees, costs and expenses with respect to the Surveys; 
 (xvi) Target shall have obtained and delivered to Buyer a written consent for the assignment of each of the Leases, and, if requested by Buyer’s lender, a waiver of landlord liens, collateral
assignment of lease or leasehold mortgage from the landlord or other party whose consent thereto is required under such Lease (the “Lease Consents”), in form and substance satisfactory to Buyer and Buyer’s lender; 

(xvii) Target shall have obtained and delivered to Buyer an estoppel certificate with respect to each of the Leases, dated
no more than 30 days prior to the Closing Date, from the other party to such Lease, in form and substance satisfactory to Buyer (the “Estoppel Certificates”); 

(xviii) Target shall have obtained and delivered to Buyer a non-disturbance agreement with respect to each of the Leases
for the Material Leased Real Property, in form and substance satisfactory to Buyer, from each lender encumbering any real property underlying the Leased Real Property for such Lease (the “Non-Disturbance Agreements”); 

(xix) each Seller shall deliver to Buyer a non-foreign affidavit dated as of the Closing Date, sworn under penalty of
perjury and in form and substance required under the Treasury Regulations issued pursuant to Code §1445 stating that such Seller is not a “foreign person” as defined in Code §1445 (the “FIRPTA Affidavit”);

 (xx) no damage or destruction or other change has occurred with respect to any of the Real Property or any
portion thereof that, individually or in the aggregate, would materially impair the use or occupancy of the Real Property or the operation of Target’s business as currently conducted thereon; 

(xxi) [INTENTIONALLY DELETED] 
 (xxii) Sellers shall have delivered to Buyer copies of the certificates of formation of Target certified on or soon before the Closing Date by the Secretary of State (or comparable officer) South
Carolina; 
 (xxiii) Sellers shall have delivered to Buyer copies of the certificates of good standing of Target
issued on or soon before the Closing Date by the Secretary of State (or comparable officer) of South Carolina and of each jurisdiction in which Target is qualified to do business; 

(xxiv) [INTENTIONALLY DELETED] 
 (xxv) Sellers shall have delivered to Buyer a certificate of the secretary or an authorized member of Target, dated the Closing Date, in form and substance reasonably satisfactory to Buyer, as to:
(i) no amendments to the certificate of formation of Target since the date specified in clause (xxii) above; (ii) the operating agreement of Target; and (iii) any resolutions of the board of directors or members of Target
relating to this Agreement and the transactions contemplated hereby; 
 (xxvi) BIDA Lease amended by Berwick
Industrial Development Association to satisfaction of Buyer in its sole discretion; 

  
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 (xxvii) The entity providing Buyer’s financing shall have conducted a
quality of earnings review of Target and approved Buyer’s consummation of the Transaction and the transactions contemplated hereby; 
 (xxiix) Buyer shall have conducted an environmental review of the Owned Real Property and the Material Leased Property and the findings of such review shall be satisfactory to Buyer in its sole
discretion; 
 (xxix) The conditions to Buyer’s obligation to close contained in the Asset Purchase
Agreements have been satisfied; 
 (xxx) The Sellers shall have accepted the terms and conditions of new
employment with Carolina Starches, the Buyer or any company related Buyer; and 
 (xxxi) Buyer has received a
binder for environmental liability insurance coverage on the property located at 1 Freas Avenue in a form and amount, and subject to a premium, that is acceptable to Buyer in its sole discretion. 

Buyer may waive any condition specified in this §7(a) if it executes a writing so stating at or prior to the Closing. 

(b) Conditions to Sellers’ Obligation. The obligation of Sellers to consummate the transactions to be performed by them in
connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations
and warranties set forth in §3(b) above shall be true and correct in all material respects at and as of the Closing Date, the except to the extent that such representations and warranties are qualified by the term “material,” or
contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case such representations and warranties (as so written, including the term “material” or “Material”) shall be true and
correct in all respects at and as of the Closing Date; 
 (ii) Buyer shall have performed and complied with all
of its covenants hereunder in all material respects through the Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse
Change,” in which case Buyer shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects through the Closing; 

(iii) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative
agency of any federal, state, local, or non-U.S. jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this
Agreement or (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 

(iv) Buyer shall have delivered to Sellers a certificate to the effect that each of the conditions specified above in
§7(b)(i)-(iii) is satisfied in all respects; 
 (v) the Parties and Target shall have received all
authorizations, consents, and approvals of governments and governmental agencies referred to in §3(a)(ii), §3(b)(ii), and §4(c) above; 
 (vi) the relevant parties shall have entered into side agreements in form and substance as set forth in Exhibits B-1 through B-5 attached hereto and the same shall be in full force and effect; 

(vii) Sellers shall have received from counsel to Buyer an opinion in form and substance as set forth in Exhibit E
attached hereto, addressed to Sellers, and dated as of the Closing Date; and 
 (viii) all actions to be taken by
Buyer in connection with consummation of the transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and
substance to Sellers. 

  
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 (xxx) The Sellers shall have received from Buyer (or any company related to
Buyer) offers of employment constant with previously accepted terms. 
 Sellers may waive any condition specified in this §7(b) on behalf
of all Sellers if they execute a writing so stating at or prior to the Closing. 
 §8. Remedies for Breaches of This
Agreement and/or Breaches of the Asset Purchase Agreements. 
 (a) Survival of Representations and Warranties. 

All of the representations and warranties of Sellers contained (i) in §4(g)-(j), §4(l)-(y), and §4(aa)-(ff) above or
shall survive the Closing hereunder (even if Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect for a period of 4 years thereafter. All of the other
representations and warranties of the Parties contained in this Agreement (including the representations and warranties of Sellers contained in §4(k) and §4(z) above) shall survive the Closing (even if the damaged Party knew or had reason
to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect until the expiration of any applicable statutes of limitations (after giving effect to any extensions or waivers) plus 60 days.

 (b) Indemnification Provisions for Buyer’s Benefit. 

(i) In the event any Seller breaches (or in the event any third party alleges facts that, if true, would mean any Seller
has breached) any of his, her, or its representations, warranties, and covenants contained (i) herein (other than the covenants in §2(a) above and the representations and warranties in §3(a) above) or (ii) in the Asset Purchase
Agreements (other than the covenants in §2(a) and the representations and warranties in §3(a) of each Asset Purchase Agreement), provided that Buyer makes a written claim for indemnification against any Seller within the survival period
(if there is an applicable survival period pursuant to the applicable Transaction Agreement), then each Seller shall be obligated jointly and severally to indemnify Buyer from and against the entirety of any Adverse Consequences Buyer may suffer
(including any Adverse Consequences Buyer may suffer after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by the breach (or the alleged breach). 

(ii) In the event any Seller breaches (or in the event any third party alleges facts that, if true, would mean any Seller
breached) (i) any of his, her, or its covenants in §2(a) above or in §2(a) of any Asset Purchase Agreement or (ii) any of his, her, or its representations and warranties in §3(a) above or in §3(a) of any Asset Purchase
Agreement, and provided that Buyer makes a written claim for indemnification against such a Seller within the survival period (if there is an applicable survival period pursuant to the applicable Transaction Agreement), then such Seller shall
indemnify Buyer from and against the entirety of any Adverse Consequences Buyer may suffer (including any Adverse Consequences Buyer may suffer after the end of any applicable survival period) resulting from arising out of, relating to, in the
nature of, or caused by the breach (or the alleged breach). 
 (c) Indemnification Provisions for Sellers’ Benefit.
In the event Buyer breaches (or in the event any third party alleges facts that, if true, would mean Buyer has breached) any of its representations, warranties, and covenants contained herein or in an Asset Purchase Agreement and, provided that any
Seller makes a written claim for indemnification against Buyer within such survival period (if there is an applicable survival period pursuant to the applicable Transaction Agreement), then Buyer shall indemnify each Seller from and against the
entirety of any Adverse Consequences suffered (including any Adverse Consequences suffered after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by the breach (or the alleged
breach). 

  
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 (d) Matters Involving Third Parties. 

(i) If any third party notifies any Party (the “Indemnified Party”) with respect to any matter (a
“Third-Party Claim”) that may give rise to a claim for indemnification against any other Party (the “Indemnifying Party”) under this §8, then the Indemnified Party shall promptly notify each Indemnifying Party
thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying
Party is thereby prejudiced. 
 (ii) Any Indemnifying Party will have the right to defend the Indemnified Party
against the Third-Party Claim with counsel of his, her, or its choice reasonably satisfactory to the Indemnified Party so long as (A) the Indemnifying Party notifies the Indemnified Party in writing within 15 days after the Indemnified Party
has given notice of the Third-Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the
nature of, or caused by the Third-Party Claim, (B) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend
against the Third-Party Claim and fulfill its indemnification obligations hereunder, (C) the Third-Party Claim involves only money damages and does not seek an injunction or other equitable relief, (D) settlement of, or an adverse judgment
with respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential custom or practice materially adverse to the continuing business interests or the reputation of the Indemnified
Party, and (E) the Indemnifying Party conducts the defense of the Third-Party Claim actively and diligently. 
 (iii) So long as the Indemnifying Party is conducting the defense of the Third-Party Claim in accordance with §8(d)(ii) above, (A) the Indemnified Party may retain separate co-counsel at his,
her, or its sole cost and expense and participate in the defense of the Third-Party Claim, (B) the Indemnified Party will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without the
prior written consent of the Indemnifying Party (not to be unreasonably withheld), and (C) the Indemnifying Party will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without the
prior written consent of the Indemnified Party (not to be unreasonably withheld). 
 (iv) In the event any of the
conditions in §8(d)(ii) above is or becomes unsatisfied, however, (A) the Indemnified Party may defend against, and consent to the entry of any judgment on or enter into any settlement with respect to, the Third-Party Claim in any manner
his, her, or it may reasonably deem appropriate (and the Indemnified Party need not consult with, or obtain any consent from, any Indemnifying Party in connection therewith), (B) the Indemnifying Parties will reimburse the Indemnified Party
promptly and periodically for the costs of defending against the Third-Party Claim (including reasonable attorneys’ fees and expenses), and (C) the Indemnifying Parties will remain responsible for any Adverse Consequences the Indemnified
Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim to the fullest extent provided in this §8. 
 (e) Determination of Adverse Consequences. The Parties shall take into account the time cost of money (using the Applicable Rate as the discount rate) in determining Adverse Consequences for
purposes of this §8. All indemnification payments under this §8 and §9(a) shall be deemed adjustments to the Purchase Price. 
 (f) INTENTIONALLY DELETED. 

  
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 (g) Other Indemnification Provisions. The foregoing indemnification provisions are in
addition to, and not in derogation of, any statutory, equitable, or common law remedy (including without limitation any such remedy arising under Environmental, Health, and Safety Requirements) any Party may have with respect to Target, or the
transactions contemplated by this Agreement. Each Seller hereby agrees that he will not make any claim for indemnification against Target by reason of the fact that he was a director, officer, employee, or agent of any such entity or was serving at
the request of any such entity as a partner, trustee, director, officer, employee, or agent of another entity (whether such claim is for judgments, damages, penalties, fines, costs, amounts paid in settlement, losses, expenses, or otherwise and
whether such claim is pursuant to any statute, charter document, bylaw, agreement, or otherwise) with respect to any action, suit, proceeding, complaint, claim, or demand brought by Buyer against such Seller (whether such action, suit, proceeding,
complaint, claim, or demand is pursuant to this Agreement, applicable law, or otherwise). 
 §9. Tax Matters. The
following provisions shall govern the allocation of responsibility as between Buyer and Sellers for certain tax matters following the Closing Date: 
 (a) Tax Indemnification. Each Seller shall jointly and severally indemnify Target, Buyer, and each Buyer Affiliate and hold them harmless from and against any loss, claim, liability, expense, or
other damage attributable to (i) all Taxes (or the non-payment thereof) of Target for all taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does
not end on) the Closing Date (“Pre-Closing Tax Period”), (ii) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which Target (or any predecessor of any of the foregoing) is or was a member on
or prior to the Closing Date, including pursuant to Treasury Regulation §1.1502-6 or any analogous or similar state, local, or non-U.S. law or regulation, and (iii) any and all Taxes of any person (other than Target) imposed on Target as a
transferee or successor, by contract or pursuant to any law, rule, or regulation, which Taxes relate to an event or transaction occurring before the Closing; 
 (b) Straddle Period. 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 based on or measured by
income, receipts, or payroll of Target for the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the close of business on the Closing Date (and for such purpose, the taxable period of any partnership or other
pass-through entity in which Target holds a beneficial interest shall be deemed to terminate at such time) and the amount of other Taxes of Target for a Straddle Period that relates to the Pre-Closing Tax Period shall be deemed to be the amount of
such 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 of which is the number of days in such Straddle Period. 

(c) Responsibility for Filing Tax Returns. Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax
Returns for Target that are filed after the Closing Date. 
 (d) Cooperation on Tax Matters. 

(i) Buyer, Target, and Sellers shall cooperate fully, as and to the extent reasonably requested by the other Party, in
connection with the filing of Tax Returns pursuant to this §9(c) and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the provision of
records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided
hereunder. Target and Sellers agree (A) to retain all books and records with respect to Tax matters pertinent to Target relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to
the extent notified by Buyer or Sellers, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (B) to give the other Party reasonable written
notice prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, Target or Sellers, as the case may be, shall allow the other Party to take possession of such books and records. 

  
 38 

 (ii) Buyer and Sellers further agree, upon request, to use their best
efforts to obtain any certificate or other document from any governmental authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the
transactions contemplated hereby). 
 (iii) Buyer and Sellers further agree, upon request, to provide the other
Party with all information that either Party may be required to report pursuant to Code §6043, or Code §6043A, or Treasury Regulations promulgated thereunder. 
 (e) Tax-Sharing Agreements. All tax-sharing agreements or similar agreements with respect to or involving Target shall be terminated as of the Closing Date and, after the Closing Date, Target shall
not be bound thereby or have any liability thereunder. 
 (f) Certain Taxes and Fees. All transfer, documentary, sales,
use, stamp, registration and other such Taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with consummation of the transactions contemplated by this Agreement
shall be paid by Sellers when due, and Sellers will, at their own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes, fees and charges, and, if required by applicable law, Buyer will, and will cause its
Affiliates to, join in the execution of any such Tax Returns and other documentation. 
 §10. Termination.

 (a) Termination of Agreement. Certain of the Parties may terminate this Agreement as provided below: 

(i) Buyer and Sellers may terminate this Agreement by mutual written consent at any time prior to the Closing; 

(ii) Buyer may terminate this Agreement by giving written notice to Sellers on or before the 30th day following the date of this Agreement if Buyer is not reasonably
satisfied with the results of its continuing business, legal, environmental, and accounting due diligence regarding Target; 
 (iii) Buyer may terminate this Agreement by giving written notice to Sellers at any time prior to the Closing (A) in the event any of Sellers has breached any material representation, warranty, or
covenant contained in any of the Transaction Agreements, including this Agreement and the Asset Purchase Agreements, in any material respect, Buyer has notified Sellers of the breach, and the breach has continued without cure for a period of 30 days
after the notice of breach or (B) if the Closing shall not have occurred on or before December 23, 2011, by reason of the failure of any condition precedent under §7(a) hereof (unless the failure results primarily from Buyer itself
breaching any representation, warranty, or covenant contained in this Agreement); and 
 (iv) Sellers may
terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (A) in the event Buyer has breached any material representation, warranty, or covenant contained in any of the Transaction Agreements, including this
Agreement and the Asset Purchase Agreements, in any material respect, any Seller has notified Buyer of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach or (B) if the Closing shall not have
occurred on or before December 23, 2011, by reason of the failure of any condition precedent under §7(b) hereof (unless the failure results primarily from any Seller breaching any representation, warranty, or covenant contained in this
Agreement). 
 (b) Effect of Termination. If any Party terminates this Agreement pursuant to §10(a) above, all
rights and obligations of the Parties hereunder shall terminate without any Liability of any Party to any other Party (except for any Liability of any Party then in breach). 

  
 39 

 §11. Miscellaneous. 

(a) Nature of Sellers’ Obligations. 
 (i) The covenants of each Seller in §2(a) above concerning the sale of his Target Membership Interests to Buyer and the representations and warranties of each Seller in §3(a) above concerning
the transaction are individual, and not joint and several, obligations. This means that the particular Seller making the representation, warranty, or covenant shall be solely responsible to the extent provided in §8(b)(ii) above for any Adverse
Consequences Buyer may suffer as a result of any breach thereof. 
 (ii) The remainder of the representations,
warranties, and covenants in this Agreement are joint and several obligations. This means that each Seller shall be responsible to the extent provided in §8(b)(i) and (iii) above for the entirety of any Adverse Consequences Buyer may
suffer as a result of any breach thereof. 
 (b) Press Releases and Public Announcements. No Party shall issue any press
release or make any public announcement relating to the subject matter of this Agreement prior to the Closing without the prior written approval of Buyer and Sellers; provided, however, that any Party may make any public disclosure it believes in
good faith is required by applicable law or any listing or trading agreement concerning its publicly traded securities (in which case the disclosing Party will use its reasonable best efforts to advise the other Parties prior to making the
disclosure). 
 (c) No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person
other than the Parties and their respective successors and permitted assigns. 
 (d) Entire Agreement. The Transaction
Agreements, including this Agreement (including the documents referred to herein) and the Asset Purchase Agreements, constitute the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or
among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 
 (e) Succession and
Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of his, her, or its rights, interests,
or obligations hereunder without the prior written approval of Buyer and Sellers; provided, however, that Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or more
of its Affiliates to perform its obligations hereunder (in any or all of which cases Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder). 

(f) Counterparts. This Agreement may be executed in one or more counterparts (including by means of facsimile), each of which
shall be deemed an original but all of which together shall constitute one and the same instrument. 
 (g) Headings. The
section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
 (h) Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed
duly given (i) when delivered personally to the recipient, (ii) 1 business day after being sent to the recipient by reputable overnight courier service (charges prepaid), (iii) 1 business day after being sent to the recipient by
facsimile transmission or electronic mail, or (iv) 4 business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below:

  

			
	If to Sellers:	  	Copy to:
		
	 Carolina Starches, LLC
 7675
South Rail Road
 North Charleston, 29420

Attn: Steve Brower
	  	 Nelson Mullins Riley & Scarborough
 Suite 600
 151 Meeting Street
 Charleston, SC 29401
 Attn: John B.
Hagerty

  
 40 

			
	If to Buyer:	  	Copy to:
		
	 Penford Corporation
 7094 South
Revere Parkway
 Centennial, CO 80112

Attn: General Counsel
	  	 Hunter, Maclean, Exley & Dunn
 200 E. Saint Julian Street
 Savannah, GA 31412

Attn: Daniel R. Crook

 Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to
be delivered by giving the other Parties notice in the manner herein set forth. 
 (i) Governing Law. This Agreement
shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Delaware. 
 (j) Amendments and Waivers. No
amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Buyer and Sellers. No waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty or
covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Party making such waiver nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach
of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such default, misrepresentation, or breach of warranty or covenant. 

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

(l) Expenses. Each Buyer, Seller and Target shall bear his, her, or its own costs and expenses (including legal fees and expenses)
incurred in connection with this Agreement and the transactions contemplated hereby; provided, however, that Sellers shall also bear the costs and expenses of Target (including all of its legal fees and expenses) in connection with this Agreement
and the transactions contemplated hereby in the event that the transactions contemplated by this Agreement are consummated. 

(m) Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement. Any reference to any federal, state, local, or non-U.S. statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word
“including” shall mean including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) that the Party has not breached shall not
detract from or mitigate the fact that the Party is in breach of the first representation, warranty, or covenant. 
 (n)
Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 

  
 41 

 (o) Specific Performance. Each Party acknowledges and agrees that the other Parties
would be damaged irreparably in the event any provision of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so that a Party shall be entitled to injunctive relief to prevent breaches of this Agreement
and to enforce specifically this Agreement and the terms and provisions hereof in addition to any other remedy to which such Party may be entitled, at law or in equity. In particular, the Parties acknowledge that the business of Target is unique and
recognize and affirm that in the event Sellers breach this Agreement, money damages would be inadequate and Buyer would have no adequate remedy at law, so that Buyer shall have the right, in addition to any other rights and remedies existing in its
favor, to enforce its rights and the other Parties’ obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable relief. 

(p) Submission to Jurisdiction. Each of the Parties submits to the jurisdiction of any state or federal court sitting in
Wilmington, Delaware, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each Party also agrees not to bring any
action or proceeding arising out of or relating to this Agreement in any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other
security that might be required of any other Party with respect thereto. Any Party may make service on any other Party by sending or delivering a copy of the process to the Party to be served at the address and in the manner provided for the giving
of notices in §11(h). Nothing in this §11(p), however, shall affect the right of any Party to serve legal process in any other manner permitted by law or at equity. Each Party agrees that a final judgment in any action or proceeding so
brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity. 

(q) Governing Language. This Agreement has been negotiated and executed by the Parties in English. In the event any translation of
this Agreement is prepared for convenience or any other purpose, the provisions of the English version shall prevail. 
 * * *
* * 

  
 42 

 IN WITNESS WHEREOF, the Parties hereto have executed this Business Sale and Membership
Interest Purchase Agreement as of the date first above written. 
  

									
	BUYER:	 		 	SELLERS:
			
	Penford Carolina, LLC,	 		 	 
	a Delaware limited liability company	 		 	R. Bentley Cheatham
				
	By: 	 	Penford Corporation	 		 	 
		 	its sole member	 		 	Dwight L. Carlson
				
	By:	 	 	 		 	 
	Name: 	 	Thomas D. Malkoski	 		 	Steven P. Brower
	Its:	 	President and Chief Executive Officer	 		 		 	
			
	ASSET SELLING ENTITIES:	 		 	1 FREAS AVENUE:
			
	 Keystone Starches, LLC,
 a South Carolina limited liability company
	 		 	 1 Freas Avenue, LLC,

a South Carolina limited liability company

					
	By:	 	 	 		 	By:	 	 
	Name: 	 	 	 		 	Name: 	 	 
	Its:	 	 	 		 	Its:	 	 
				
	 7675 South Rail Road, LLC,
 a South Carolina limited liability company
	 		 		 	
					
	By:	 	 	 		 		 	
	Name: 	 	 	 		 		 	
	Its:	 	 	 		 		 	

  
 43Form of Indemnification Agreement

 Exhibit 10.6 
 FULCRUM BIOENERGY, INC. 
 INDEMNIFICATION AGREEMENT

 This Indemnification Agreement (this “Agreement”) is made as of
            , 2011, by and between Fulcrum BioEnergy, Inc., a Delaware corporation (the “Company”), and
                     (“Indemnitee”). 
 RECITALS 
 The Company and Indemnitee recognize the increasing
difficulty in obtaining liability insurance for directors, officers and key employees, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance. The Company and Indemnitee further recognize
the substantial increase in corporate litigation in general, subjecting directors, officers and key employees to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited.
Indemnitee does not regard the current protection available as adequate under the present circumstances, and Indemnitee may not be willing to continue to serve in Indemnitee’s current capacity with the Company without additional protection. The
Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, and to indemnify its directors, officers and key employees so as to provide them with the maximum protection permitted by law. 

AGREEMENT 
 In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Indemnitee
hereby agree as follows: 
 1. Indemnification. 

(a) Third-Party Proceedings. To the fullest extent permitted by applicable law, the Company shall indemnify Indemnitee, if
Indemnitee was, is or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding (other than a Proceeding by or in the right of the Company to procure a judgment in the Company’s favor), against all
Expenses, judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such Proceeding
if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was
unlawful. 
 (b) Proceedings By or in the Right of the Company. To the fullest extent permitted by applicable law,
the Company shall indemnify Indemnitee, if Indemnitee was, is or is threatened to be made a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of the Company to procure a judgment in the Company’s favor,
against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not

 
opposed to the best interests of the Company, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by
court order or judgment to be liable to the Company unless and only to the extent that the Court of Chancery or the court in which such Proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. 
 (c)
Success on the Merits. To the fullest extent permitted by applicable law and to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding referred to in Section 1(a) or
Section 1(b) or the defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection therewith. Without limiting the
generality of the foregoing, if Indemnitee is successful on the merits or otherwise as to one or more but less than all claims, issues or matters in a Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably
incurred by Indemnitee in connection with such successfully resolved claims, issues or matters to the fullest extent permitted by applicable law. If any Proceeding is disposed of on the merits or otherwise (including a disposition without
prejudice), without (i) the disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Company, (iii) a plea of guilty by Indemnitee, (iv) an adjudication that Indemnitee did not act in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and (v) with respect to any criminal Proceeding, an adjudication that Indemnitee had reasonable cause to believe
Indemnitee’s conduct was unlawful, Indemnitee shall be considered for the purposes hereof to have been wholly successful with respect thereto. 
 (d) Witness Expenses. To the fullest extent permitted by applicable law and to the extent that Indemnitee is a witness or otherwise asked to participate in any Proceeding to which Indemnitee
is not a party, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding. 
 2. Indemnification Procedure. 
 (a) Advancement of
Expenses. To the fullest extent permitted by applicable law, the Company shall advance all Expenses actually and reasonably incurred by Indemnitee in connection with a Proceeding within thirty (30) days after receipt by the Company of a
statement requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Such advances shall be unsecured and interest free and shall be made without regard to Indemnitee’s ability to repay the
Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Indemnitee shall be entitled to continue to receive advancement of Expenses pursuant to this Section 2(a)
unless and until the matter of Indemnitee’s entitlement to indemnification hereunder has been finally adjudicated by court order or judgment from which no further right of appeal exists. Indemnitee hereby undertakes to repay such amounts
advanced only if, and to the extent that, it ultimately is determined that Indemnitee is not entitled to be indemnified by the Company under the other provisions of this Agreement. Indemnitee shall qualify for advances upon the execution and
delivery of this Agreement, which shall constitute the requisite undertaking with respect to 

  
 -2-

 
repayment of advances made hereunder and no other form of undertaking shall be required to qualify for advances made hereunder other than the execution of this Agreement. 

(b) Notice and Cooperation by Indemnitee. Indemnitee shall promptly notify the Company in writing upon being served with
any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter for which indemnification will or could be sought under this Agreement. Such notice to the Company shall include a description
of the nature of, and facts underlying, the Proceeding, shall be directed to the Chief Executive Officer of the Company and shall be given in accordance with the provisions of Section 13(d) below. In addition, Indemnitee shall give the Company
such additional information and cooperation as the Company may reasonably request. Indemnitee’s failure to so notify, provide information and otherwise cooperate with the Company shall not relieve the Company of any obligation which it may have
to Indemnitee under this Agreement, except to the extent that the Company is adversely affected by such failure. 
 (c)
Determination of Entitlement. 
 (i) Final Disposition. Notwithstanding any other provision in this
Agreement, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding. 
 (ii) Determination and Payment. Subject to the foregoing, promptly after receipt of a statement requesting payment with respect to the indemnification rights set forth in Section 1, to
the extent required by applicable law, the Company shall take the steps necessary to authorize such payment in the manner set forth in Section 145 of the General Corporation Law of Delaware. The Company shall pay any claims made under this
Agreement, under any statute, or under any provision of the Company’s Certificate of Incorporation or Bylaws providing for indemnification or advancement of Expenses, within thirty (30) days after a written request for payment thereof has
first been received by the Company, and if such claim is not paid in full within such thirty (30) day-period, Indemnitee may, but need not, at any time thereafter bring an action against the Company in the Delaware Court of Chancery to recover
the unpaid amount of the claim and, subject to Section 12, Indemnitee shall also be entitled to be paid for all Expenses actually and reasonably incurred by Indemnitee in connection with bringing such action. It shall be a defense to any such
action (other than an action brought to enforce a claim for advancement of Expenses under Section 2(a)) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee
for the amount claimed. In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement
and the Company shall have the burden of proof to overcome that presumption with clear and convincing evidence to the contrary. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, in the case of a criminal
Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful. In addition, it is the parties’ intention that if the Company contests Indemnitee’s right to indemnification, the question of
Indemnitee’s right to indemnification shall 

  
 -3-

 
be for the court to decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its
stockholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company
(including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has
or has not met the applicable standard of conduct. If any requested determination with respect to entitlement to indemnification hereunder has not been made within ninety (90) days after the final disposition of the Proceeding, the requisite
determination that Indemnitee is entitled to indemnification shall be deemed to have been made. 
 (d) Payment
Directions. To the extent payments are required to be made hereunder, the Company shall, in accordance with Indemnitee’s request (but without duplication), (i) pay such Expenses on behalf of Indemnitee, (b) advance to
Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses. 
 (e)
Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the
commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all
amounts payable as a result of such Proceeding in accordance with the terms of such policies. 
 (f) Defense of Claim and
Selection of Counsel. In the event the Company shall be obligated under Section 2(a) hereof to advance Expenses with respect to any Proceeding, the Company, if appropriate, shall be entitled to assume the defense of such Proceeding,
with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee shall have the right to employ counsel in any such
Proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of any such defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such Proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company. In addition, if there exists a potential, but not an actual conflict of interest between the Company and Indemnitee, the actual and reasonable legal fees and expenses incurred by Indemnitee for separate counsel retained by
Indemnitee to monitor the Proceeding (so that such counsel may assume Indemnitee’s defense if the conflict of interest between the Company and Indemnitee becomes an actual conflict of interest) shall be deemed to be Expenses that are subject to
indemnification hereunder. The existence of an actual or potential conflict of interest, and whether such conflict may be waived, shall be determined pursuant to the rules of attorney professional conduct and applicable law. The Company shall not be
required to obtain the consent of Indemnitee for the settlement of any 

  
 -4-

 
Proceeding the Company has undertaken to defend if the Company assumes full and sole responsibility for each such settlement; provided, however, that the Company shall be required to obtain
Indemnitee’s prior written approval, which shall not be unreasonably withheld, before entering into any settlement which (1) does not grant Indemnitee a complete release of liability, (2) would impose any penalty or limitation on
Indemnitee, or (3) would admit any liability or misconduct by Indemnitee. 
 3. Additional Indemnification
Rights. 
 (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to
indemnify Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the Company’s
Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule which expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes
shall be deemed to be within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and
obligations hereunder. 
 (b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed
exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of the Company’s Board of Directors, the General
Corporation Law of Delaware, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. 
 (c) Interest on Unpaid Amounts. If any payment to be made by the Company to Indemnitee hereunder is delayed by more than ninety (90) days from the date the duly prepared request
for such payment is received by the Company, interest shall be paid by the Company to Indemnitee at the legal rate under Delaware law for amounts which the Company indemnifies or is obligated to indemnify for the period commencing with the date on
which Indemnitee actually incurs such Expense or pays such judgment, fine or amount in settlement and ending with the date on which such payment is made to Indemnitee by the Company. 

(d) Third-Party Indemnification. The Company hereby acknowledges that Indemnitee has or may from time to time obtain
certain rights to indemnification, advancement of expenses and/or insurance provided by one or more third parties (collectively, the “Third-Party Indemnitors”). The Company hereby agrees that it is the indemnitor of first resort
(i.e., its obligations to Indemnitee are primary and any obligation of the Third-Party Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), and that the
Company will not assert that the Indemnitee must seek expense advancement or reimbursement, or indemnification, from any Third-Party Indemnitor before the Company must perform its expense advancement and reimbursement, and indemnification
obligations, under this Agreement. No advancement or payment by the Third-

  
 -5-

 
Party Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing. The Third-Party Indemnitors shall
be subrogated to the extent of such advancement or payment to all of the rights of recovery which Indemnitee would have had against the Company if the Third-Party Indemnitors had not advanced or paid any amount to or on behalf of Indemnitee. If for
any reason a court of competent jurisdiction determines that the Third-Party Indemnitors are not entitled to the subrogation rights described in the preceding sentence, the Third-Party Indemnitors shall have a right of contribution by the Company to
the Third-Party Indemnitors with respect to any advance or payment by the Third-Party Indemnitors to or on behalf of the Indemnitee. Each Third-Party Indemnitor is an express third party beneficiary of this Section 3(d). 

(e) Indemnification of Control Person. If (i) Indemnitee is or was affiliated with one or more of the Company’s
current or former stockholders that may be deemed to be or to have been a controlling person of the Company (each a “Control Person”), (ii) a Control Person is, or is threatened to be made, a party to or a participant in any
proceeding, and (iii) the Control Person’s involvement in the proceeding is related to Indemnitee’s service to the Company as a director of the Company, or arises from the Control Person’s status or alleged status as a
controlling person of the Company resulting from such Control Person’s affiliation with Indemnitee, then the Control Person shall be entitled to all of the indemnification rights and remedies under this Agreement to the same extent as
Indemnitee. The rights provided to any Control Person under this Section 3 shall (x) be suspended during any period in which the Control Person does not have a representative on the Company’s Board and (y) terminate on an initial
public offering of the Company’s common stock; provided, however, that in the event of any such suspension or termination, the Control Person’s rights to indemnification will not be suspended or terminated with respect to any proceeding
based in whole or in part on facts and circumstances occurring at any time prior to the suspension or termination regardless of whether the proceeding arises before or after such suspension or termination. Each Control Person is an express third
party beneficiary of this Section 3(e). 
 4. Partial Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines or amounts paid in settlement, actually and reasonably incurred in connection with a Proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines and amounts paid in settlement to which Indemnitee is entitled. 

5. Director and Officer Liability Insurance. 
 (a) D&O Policy. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the directors and officers of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among
other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability 

  
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insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s
directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee.
Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are
disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a parent or subsidiary
of the Company. 
 (b) Tail Coverage. In the event of a Change of Control or the Company’s becoming insolvent
(including being placed into receivership or entering the federal bankruptcy process and the like), the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (directors’ and
officers’ liability, fiduciary, employment practices or otherwise) in respect of Indemnitee, for a period of six years thereafter. 
 6. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The
Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be
enforceable in accordance with its terms. 
 7. Exclusions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement: 
 (a) Claims Initiated by
Indemnitee. To indemnify or advance Expenses to Indemnitee with respect to Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to establish, enforce or interpret a
right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the General Corporation Law of Delaware, but such indemnification or advancement of Expenses may be provided by the Company
in specific cases if the Board of Directors finds it to be appropriate; provided, however, that the exclusion set forth in the first clause of this subsection shall not be deemed to apply to any investigation initiated or brought by Indemnitee to
the extent reasonably necessary or advisable in support of Indemnitee’s defense of a Proceeding to which Indemnitee was, is or is threatened to be made, a party; 
 (b) Lack of Good Faith. To indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to any Proceeding instituted by Indemnitee to establish, enforce or interpret a right to
indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of the General Corporation Law of Delaware, if a court of competent jurisdiction determines that each of the material assertions made by
Indemnitee in such proceeding was not made in good faith or was frivolous; 

  
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 (c) Insured Claims. To indemnify Indemnitee for Expenses to the extent such
Expenses have been paid directly to Indemnitee by an insurance carrier under an insurance policy maintained by the Company; or 

(d) Certain Exchange Act Claims. To indemnify Indemnitee in connection with any claim made against Indemnitee for
(i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or any similar successor statute or any similar
provisions of state statutory law or common law, or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of
the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”) or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the
Sarbanes-Oxley Act); provided, however, that to the fullest extent permitted by applicable law and to the extent Indemnitee is successful on the merits or otherwise with respect to any such Proceeding, the Expenses actually and reasonably incurred
by Indemnitee in connection with any such Proceeding shall be deemed to be Expenses that are subject to indemnification hereunder. 
 8. Contribution Claims. 
 (a) If the indemnification provided in
Section 1 is unavailable in whole or in part and may not be paid to Indemnitee for any reason other than those set forth in Section 7, then in respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if
joined in such Proceeding), to the fullest extent permitted by applicable law, the Company, in lieu of indemnifying Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, fines or
amounts paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

 (b) With respect to a Proceeding brought against directors, officers, employees or agents of the Company (other than
Indemnitee), to the fullest extent permitted by applicable law, the Company shall indemnify Indemnitee from any claims for contribution that may be brought by any such directors, officers, employees or agents of the Company (other than Indemnitee)
who may be jointly liable with Indemnitee, to the same extent Indemnitee would have been entitled to such indemnification under this Agreement if such Proceeding had been brought against Indemnitee. 

9. No Imputation. The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of
the Company or the Company itself shall not be imputed to Indemnitee for purposes of determining any rights under this Agreement. 
 10. Determination of Good Faith. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the

  
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records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the
advice of legal counsel for the Enterprise or the Board of Directors of the Enterprise or any counsel selected by any committee of the Board of Directors of the Enterprise or on information or records given or reports made to the Enterprise by an
independent certified public accountant or by an appraiser, investment banker, compensation consultant, or other expert selected with reasonable care by the Enterprise or the Board of Directors of the Enterprise or any committee thereof. The
provisions of this Section 10 shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct. Whether or not the foregoing provisions of
this Section are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. 

11. Defined Terms and Phrases. For purposes of this Agreement, the following terms shall have the following meanings:

 (a) “Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth in Rule
13d-3 promulgated under the Exchange Act as in effect on the date hereof. 
 (b) “Change of Control” shall be
deemed to occur upon the earliest of any of the following events: 
 (i) Acquisition of Stock by Third Party. Any Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the
election of directors, unless (1) the change in the relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote
generally in the election of directors, or (2) such acquisition was approved in advance by the Continuing Directors and such acquisition would not constitute a Change of Control under part (iii) of this definition. 

(ii) Change in Board of Directors. Individuals who, as of the date of this Agreement, constitute the Company’s Board of
Directors (the “Board”), and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two thirds of the directors then still in office who were
directors on the date of this Agreement (collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board. 

(iii) Corporate Transaction. The effective date of a reorganization, merger, or consolidation of the Company (a “Business
Combination”), in each case, unless, following such Business Combination: (1) all or substantially all of the individuals and entities who were the Beneficial Owners of securities entitled to vote generally in the election of directors
immediately prior to such Business Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors resulting
from such Business Combination (including a corporation which as a result of such transaction owns the Company or 

  
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all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such
Business Combination, of the securities entitled to vote generally in the election of directors and with the power to elect at least a majority of the Board or other governing body of the surviving entity; (2) no Person (excluding any
corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 15% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such
corporation except to the extent that such ownership existed prior to the Business Combination; and (3) at least a majority of the Board of Directors of the corporation resulting from such Business Combination were Continuing Directors at the
time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination. 
 (iv) Liquidation. The approval by the Company’s stockholders of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all
or substantially all of the Company’s assets, other than factoring the Company’s current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale or disposition in
one transaction or a series of related transactions). 
 (v) Other Events. There occurs any other event of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item or any similar schedule or form) promulgated under the Exchange Act whether or not the Company is then subject to
such reporting requirement. 
 (c) “Company” shall include, in addition to the resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or
agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, trustee, general partner, managing member,
fiduciary, employee or agent of any other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued. 
 (d) “Enterprise” means the Company and any other
enterprise that Indemnitee was or is serving at the request of the Company as a director, officer, partner (general, limited or otherwise), member (managing or otherwise), trustee, fiduciary, employee or agent. 

(e) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(f) “Expenses” shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever,
including all attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payment under this Agreement (including taxes that may

  
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be imposed upon the actual or deemed receipt of payments under this Agreement with respect to the imposition of federal, state, local or foreign taxes), fax transmission charges, secretarial
services and all other disbursements, obligations or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in a
Proceeding. Expenses also shall include any of the forgoing expenses incurred in connection with any appeal resulting from any Proceeding, including the principal, premium, security for, and other costs relating to any costs bond, supersedes bond,
or other appeal bond or its equivalent. Expenses also shall include any interest, assessment or other charges imposed thereon and costs incurred in preparing statements in support of payment requests hereunder. Expenses, however, shall not include
amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. 
 (g)
“Person” shall have the meaning as set forth in Section 13(d) and 14(d) of the Exchange Act as in effect on the date hereof; provided, however, that “Person” shall exclude: (i) the Company; (ii) any direct
or indirect majority owned subsidiaries of the Company; (iii) any employee benefit plan of the Company or any direct or indirect majority owned subsidiaries of the Company or of any corporation owned, directly or indirectly, by the
Company’s stockholders in substantially the same proportions as their ownership of stock of the Company (an “Employee Benefit Plan”); and (iv) any trustee or other fiduciary holding securities under an Employee Benefit
Plan. 
 (h) “Proceeding” shall include any actual, threatened, pending or completed action, suit, arbitration,
mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by a third party, a government agency, the Company or its Board of Directors
or a committee thereof, whether in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative, legislative or investigative (formal or informal) nature, including any
appeal therefrom, in which Indemnitee was, is, will or might be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, by reason of
any action (or failure to act) taken by Indemnitee or of any action (or failure to act) on Indemnitee’s part while acting as a director, officer, employee or agent of the Company, or by reason of the fact that Indemnitee is or was serving at
the request of the Company as a director, officer, partner (general, limited or otherwise), member (managing or otherwise), trustee, fiduciary, employee or agent of any other enterprise, in each case whether or not serving in such capacity at the
time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement. 
 (i) In addition, references to “other enterprise” shall include another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or any other
enterprise; references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; references to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves services by Indemnitee with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best 

  
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interests of the Company” as referred to in this Agreement; references to “include” or “including” shall mean include or including, without
limitation; and references to Sections, paragraphs or clauses are to Sections, paragraphs or clauses in this Agreement unless otherwise specified. 
 12. Attorneys’ Fees. In the event that any Proceeding is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding, unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such
Proceeding were not made in good faith or were frivolous. In the event of a Proceeding instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding (including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless a court of competent
jurisdiction determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous. 
 13. Miscellaneous. 
 (a) Governing Law. This Agreement
and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of
law. 
 (b) Entire Agreement; Binding Effect. Without limiting any of the rights of Indemnitee described in
Section 3(b), this Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions and supersedes any and all previous agreements between them covering the
subject matter herein. The indemnification provided under this Agreement applies with respect to events occurring before or after the effective date of this Agreement, and shall continue to apply even after Indemnitee has ceased to serve the Company
in any and all indemnified capacities. 
 (c) Amendments and Waivers. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of
any rights of such party. 
 (d) Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by fax or 48 hours after being sent by nationally-recognized courier or deposited in the U.S. mail, as certified or registered mail, with postage
prepaid, and addressed to the party to be notified at such party’s address or fax number as set forth below or as subsequently modified by written notice. 

  
 -12-

 (e) Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall constitute one instrument. 
 (f) Successors and
Assigns. This Agreement shall be binding upon the Company and its successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the
Company) and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, executors, administrators, legal representatives and assigns. The Company shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
 (g)
No Employment Rights. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment. 
 (h) Company Position. The Company shall be precluded from asserting, in any Proceeding brought for purposes of establishing, enforcing or interpreting any right to indemnification
under this Agreement, that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement and is precluded from making
any assertion to the contrary. 
 (i) Subrogation. Subject to Section 3(d), in the event of payment under
this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable
the Company to effectively bring suit to enforce such rights. 
 [Signature Page Follows] 

  
 -13-

 The parties have executed this Agreement as of the date first set forth above. 

 

			
	THE COMPANY:
	
	 FULCRUM BIOENERGY, INC.

		
	By:	 	  

		 	(Signature)
		
	Name:	 	  

	Title:	 	  

	
	Address:
	 4900 Hopyard Road, Suite 220
 Pleasanton, California 94588
 United States

	Fax: (925) 730-0157

 AGREED TO AND ACCEPTED: 
 INDEMNITEE: 
  

			
	  

	(PRINT NAME)
	
	  

	 (Signature)

	
	 Address:

	  

	  

	 Fax:
	 	  

  
 -14-

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