Document:

Exhibit
10.1

Execution
Version

 

	
  STATE OF SOUTH CAROLINA

  	
   

  	
   

  
	
   

  	
   

  	
  ASSET PURCHASE AGREEMENT

  
	
  COUNTY OF DORCHESTER

  	
   

  	
   

  

 

 

This ASSET
PURCHASE AGREEMENT (this “Contract”)
is made and entered into this 22nd day of March, 2007 (the “Contract Date”), by
and between LATI USA, INC., a South Carolina
corporation, formerly known as LATI INDUSTRIES, INC. (“LATI”) and FORCE PROTECTION TECHNOLOGIES, INC., a Nevada corporation (“FPT”).

RECITALS:

WHEREAS,
LATI operates or has operated a facility manufacturing high performance
thermoplastics located at 257 Deming Way, Summerville, South Carolina (the “Facility”);

WHEREAS,
the Facility is located on that certain tract of land located in Dorchester
County, South Carolina consisting of approximately 24 acres, as more
particularly described on Exhibit A attached hereto (the “Land”);

WHEREAS,
the Property (hereinafter defined) and the Equipment (hereinafter defined)
which are used by LATI in connection with the operation of the Facility are
subject to that certain Lease Agreement dated December 7, 1998 between LATI and
Dorchester County, South Carolina (the “County”), as amended by that certain
First Amendment of Lease Agreement dated July 25, 2005 (the “FILOT Lease”);

WHEREAS,
Section 9.01 of the FILOT Lease provides that LATI may assign its interest in
the FILOT Lease with the County;

WHEREAS,
FPT desires to acquire and assume the FILOT Lease from LATI on the terms and
conditions set forth in this Contract; and

WHEREAS,
LATI desires to sell and assign the FILOT Lease to FPT on the terms and
conditions set forth in this Contract.

 1
 

NOW, THEREFORE, for and
in consideration of the terms and conditions contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, LATI and FPT do hereby agree as follows:

1.             Description of Property.  The property which is the subject to the
FILOT Lease is as follows:

(a)           The
Land;

(b)           All rights and easements appurtenant
to the Land, including all rights of view, light and air, mineral and
subsurface rights, development rights, zoning rights, water rights, sewer and
drainage rights, rights of way, rights of ingress and egress, roadways, parking
areas, roadbeds, alleyways and reversions or other appurtenances used in
connection with the ownership of the Land (collectively, the “Appurtenances”);
and

(c)           All improvements and fixtures located
on the Land and all buildings, structures and amenities currently located on
the Land, if any, (collectively, the “Improvements”).

The Land, the
Appurtenances and the Improvements are hereinafter sometimes collectively
called the “Property.”

2.             Description of Equipment.  The equipment which is the subject to the
FILOT Lease and which is to be assumed by FPT are those items of equipment,
machinery and other tangible personal property described in Exhibit B
attached hereto (the “Equipment”).

3.             Purchase Price.  The purchase price (the “Purchase Price”) to
be paid by FPT for the assignment of the FILOT Lease shall be FOUR MILLION ONE
HUNDRED THOUSAND and No/100 Dollars ($4,100,000.00).  The Purchase Price shall be allocated as
follows:

	
  Land and Appurtenances:

  	
   

  	
  $

  	
  1,320,000.00

  	
   

  
	
  Improvements:

  	
   

  	
  $

  	
  2,502,000.00

  	
   

  
	
  Equipment:

  	
   

  	
  $

  	
  278,000.00

  	
   

  

 

4.             Payment of Purchase Price.  The Purchase Price shall be payable as
follows:

(i)            Binder.  A good faith binder and partial down payment
of FORTY-ONE THOUSAND and No/100 Dollars ($41,000.00) (the “Binder”) has been
paid by FPT to Coppedge & Tisson/Cushman & Wakefield (the “Escrow Agent”)
and is subject to the provisions set forth in Section 22 below.

(ii)           Payment at Closing.  The Binder will be applied to the Purchase
Price at Closing.  The remaining balance
of the Purchase Price shall be paid in cash or other immediately available
funds at Closing.

 2
 

5.             Due Diligence Period and
Investigations by FPT.

(i)             For a thirty (30) day period from
the Contract Date (the “Due Diligence Period”), FPT may conduct due diligence
as set forth herein.  The Due Diligence
Period may be extended by FPT for up to thirty (30) days to conduct a Phase II
Environmental Site Assessment.  The
parties acknowledge that FPT has not had the opportunity to perform due
diligence prior to its execution of this Contract, and that the due diligence
contemplated in this Section 5 is intended to give FPT a period within which to
conduct due diligence and elect, if it chooses, to terminate this Contract
without forfeiting the Binder. 
Accordingly, FPT may terminate this Contract in its absolute discretion
at any time within (i) the Due Diligence Period or (ii) five (5) business days
of the expiration of the Due Diligence Period. 
In the event of such termination, FPT shall receive a refund of the
entirety of the Binder.

(ii)            Within five (5) business days of the
Contract Date, LATI shall furnish to FPT copies of all documents, plats,
studies, test results, reports, appraisals and all other materials relating to
the Property in LATI’s possession, including but not limited to plats, plans,
surveys, environmental reports, title materials, soil reports, zoning notices
or approvals, any restrictions affecting the Property and copies of all leases
or contracts affecting any portion of the Property.  LAIT shall allow FPT’s environmental
consultant to interview LATI’s employees or have said employees fill out
environmental questionnaires as required to conduct a Phase I Environmental
Site Assessment in accordance with ASTM E-1527-05.  During the Due Diligence Period, FPT shall
have the right to determine whether the Property is acceptable to FPT at its sole
discretion.  FPT acknowledges and agrees
that LATI bears no liability for any inadvertent failure to provide any of the
foregoing items.

(iii)           During the Due Diligence Period, FPT
and its agents and consultants shall have complete access to the Property for
the purpose of conducting, at its sole cost and expense, such testings, soil
borings, soil analyses, engineering tests and studies, environmental tests and
studies, economic and/or topographic tests, studies and/or investigations with
respect to the Property as FPT may deem necessary in order to determine whether
the Property is suitable for FPT’s intended use thereof, provided that FPT
repair any damage to the Property caused in connection with such tests and
studies.  FPT shall indemnify and hold LATI
harmless from and against all costs, expenses and liabilities incurred by LATI
in connection with the tests and studies conducted by FPT and FPT’s entry upon
the Property, except to the extent that any of the foregoing costs, expenses or
liabilities are attributable in full all or in part to the gross negligence or
willful misconduct of LATI.

6.             Closing Date and Place.  The closing of the sale and purchase of the
Property and the Equipment and transfer of title to the Property and the
Equipment (the “Closing”) shall take place at a mutually agreeable date on or
before thirty (30) days from the expiration of the Due Diligence Period;
provided however that the Closing shall may be scheduled by FPT at any time
during the Due Diligence Period by providing three (3) business days advance
written notice to LATI.  The date on
which the Closing actually occurs as provided pursuant to this Section 6 is
herein referred to as the “Closing Date.” 
On the Closing Date,  the Closing
shall take place at 10:00 am at the offices of Haynsworth Sinkler Boyd, P.A. in
Charleston, South Carolina or at such other location as may be mutually
agreeable.

 3
 

7.             Assignment of FILOT Lease.

(a)           At the Closing, LATI and FPT shall
execute and deliver an Assignment and Assumption Agreement in the form attached
hereto as Exhibit C (the “Assignment Agreement”) for the assignment of
the FILOT Lease from LATI to FPT.

(b)           As of the Closing Date, the Property
and the Equipment subject the FILOT Lease and this Contract shall be free and
clear of all liens, encumbrances, security interests, claims, rights-of-way,
easements, leases, restrictions and restrictive covenants, except for the
Permitted Exceptions (defined below) and the terms of the FILOT Lease.  For purposes of this paragraph, the term “Title
Exceptions” shall mean any conditions, liens or encumbrances affecting or
purporting to affect title to the Property, or other matters relating to title
to the Property, whether evidenced by written instrument, disclosed on a survey
or otherwise evidenced.  FPT shall have
the right to object to any Title Exception (collectively, the “Objections”).  FPT shall submit in writing to LATI its
Objections within thirty (30) days of the Contract Date.  In the event FPT notifies LATI of any
Objections that it has concerning the title to or a survey of the Property,
then LATI shall have fifteen (15) days from the receipt of such notice within
which to notify FPT as to whether LATI will cure all or any of the Objections
raised by FPT.  In the event LATI elects
to cure any of FPT’s Objections, then LATI shall do so on or before the Closing
Date as a covenant of LATI hereunder.  In
the event LATI elects not to cure any of FPT’s Objections then FPT shall,
within fifteen (15) days of receipt of said notice of non-cure from LATI, give
notice to LATI that FPT has elected to (i) terminate this Contract and receive
a refund of the entire Binder, or (ii) waive the uncured Objections and close
under the terms of this Contract.  Those
Title Exceptions which FPT accepts shall herein collectively be referred to as
the “Permitted Exceptions.”

8.             No Assumed Liabilities.  Except for the assumption of the FILOT Lease
as described in this Contract and the Assignment Agreement, FPT assumes
absolutely no liabilities of LATI.

9.             Retained Equipment.  Pursuant to the provisions contained in
Section 36 below, LATI shall have thirty (30) days from the Closing Date to
remove from the Property any items of tangible personal property described in Exhibit
D attached hereto which are not being purchased by the FPT under this
Contract (the “Retained Equipment”). 
Upon the expiration of the thirty (30) day license period, the Retained
Equipment shall be deemed abandoned.  FPT
shall not have any responsibility for the any loss or damage to the Retained
Equipment.

 4
 

10.           Closing Costs.  LATI shall pay for any transfer tax stamps to
be affixed to the Assignment Agreement and the cost of discharging any
mortgage, lien or title encumbrance on the Property and the Equipment other
than those permitted hereunder.  FPT
shall be responsible for the cost of recording the Assignment Agreement and any
instruments to be recorded under the terms of this Contract with respect to the
Property.  FPT shall pay for the cost of
any surveys or environmental reports of the Property, any title insurance, and
all fees and expenses associated with any loan on the Property.  Except as otherwise provided herein, each
party shall bear its own costs and expenses, including its own attorneys’ fees.

11.           Settlement Adjustments.  Unless otherwise specified in this Contract,
all expenses and costs related to the FILOT LEASE shall be prorated as of the
Closing Date.

12.           Covenants of LATI.

(a)            Between the date hereof and the
Closing Date, LATI shall not cause or permit any waste respecting the Property
or take any action which would adversely affect the value or title to the
Property or the Equipment.

(b)           Between the date hereof and the
Closing Date, LATI shall cooperate and assist, to the extent reasonably
requested by FPT, with FPT’s investigation of the FILOT Lease, the Property,
the Equipment, and items related to the Closing.

13.           Conditions Precedent to FPT’s
Obligation to Close.  FPT’s
obligation to purchase the Property and the Equipment and to take the other
actions required to be taken by FPT at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by FPT, in whole or in part):

(a)            All of LATI’s representations and
warranties in this Contract shall have been accurate in all material respects
as of the date of this Contract, and shall be accurate in all material respects
as of the time of the Closing as if then made.

(b)           All of the covenants and obligations
that LATI is required to perform or to comply with pursuant to this Contract at
or prior to the Closing, and each of these covenants and obligations, shall
have been duly performed and complied with in all material respects.

(c)            FPT shall have obtained financing
acceptable to FPT in its sole discretion to acquire and assume the FILOT
Lease.  FPT shall use its best efforts to
obtain such financing within twenty (20) days from the date of this
Contract.  FPT shall promptly inform LATI
if FPT is unable to obtain such financing and LATI may elect to terminate this
Contract upon the receipt of such notification.

(d)           The issuance or assignment to FPT of
all applicable licenses and permits necessary (i) to continue the operation of
the Facility or (ii) to allow for FPT’s intended use of the Property.

 5
 

(e)           The written approval by the County of
the assignment of the FILOT Lease from LATI to FPT.

14.           Brokerage Commission.  Other than LATI’s engagement of Coppedge
& Tisson/Cushman & Wakefield, LATI and FPT mutually acknowledge and
represent that they have not dealt with any brokers in connection with this
transaction.  LATI acknowledges and
agrees that it is solely responsible for the commission due Coppedge &
Tisson/Cushman & Wakefield.  Each
party agrees to indemnify and hold the other harmless from and against any and all
claims, demands or the cost and expense thereof, including reasonable attorneys’
fees, arising out of any brokerage commission, fee or other compensation due or
alleged to be due in connection with the transaction contemplated by this
Contract based upon an agreement alleged to have been made or other action
alleged to have been taken by the indemnifying party.

15.           Eminent Domain.  If 
prior to the Closing Date, all or any part of the Property is taken by
eminent domain or if condemnation proceedings are commenced, FPT shall have the
option, by giving written notice to LATI, to terminate this Contract and
receive an immediate refund of the full amount of the Binder.  If FPT does not so elect to terminate this
Contract, the Contract shall remain in full force and effect, and LATI shall
assign, transfer and set over to FPT at the Closing all of LATI’s rights, title
and interest in and to any awards that may be made for such taking.

16.           Representations and Warranties of
LATI.  LATI represents and warrants
to FPT as follows:

(a)           Subject
to the written approval of the County to the assignment of the FILOT Lease,
LATI has full power and authority to enter into and perform this Contract in
accordance with its terms and conditions, and at the Closing, LATI will furnish
to FPT an opinion of LATI’s counsel to that regard.

(b)           LATI
shall furnish to FPT such resolutions and certificates as FPT’s counsel may
reasonably request regarding the authority of LATI to enter into this Contract
and close the transaction contemplated herein.

(c)           LATI
shall use its best efforts to obtain the written approval of the County for the
assignment of the FILOT Lease to FPT.

(d)           The
consummation of the terms and conditions of this Contract shall not constitute
a default under any agreement to which LATI is subject or by which it may be
bound.

(e)           Other
than the FILOT Lease, LATI has not entered into any agreement or lease, oral or
written, that will be binding upon FPT, the Property or the Equipment; and
neither LATI, the FILOT Lease, the Property nor the Equipment are subject to
any claim, encumbrance, mortgage, lien, demand, suit, unfiled lien, proceeding
or litigation of any kind, pending or outstanding, or threatened or likely to
be made or instituted which would limit or restrict in any way LATI’s right or
ability to enter into this Contract and consummate the sale and purchase
contemplated hereby.

 6
 

(f)            To the best of LATI’s knowledge,
there are no taxes, charges or assessments of any nature or description arising
out the operation of the Facility which would constitute a lien against the
Property or the Equipment and that will be unpaid at the Closing Date or not
paid from LATI’s closing proceeds.

(g)           LATI is not a “foreign person” within
the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended.

(h)           From the period of time between the
Contract Date and the Closing Date, LATI shall refrain from undertaking any
material changes to the Facility, the Property or the Equipment, without the
express written consent of FPT.

(i)            All representations and warranties
of LATI contained in this Contract are true and correct in all material
respects as of the Contract Date, will be true and correct in all material
respects as of the Closing Date, and shall survive the Closing.

17.           Representations and Warranties of
FPT.  FPT represents and warrants to
LATI as follows:

(a)           FPT
has full power and authority to enter into and perform this Contract in
accordance with its terms and conditions, and at the Closing, FPT will furnish
to LATI an opinion of FPT’s counsel to that regard.

(b)           FPT
shall furnish to LATI such resolutions and certificates as LATI’s counsel may
reasonably request regarding the authority of FPT to enter into this Contract
and close the transaction contemplated herein.

(c)           The
consummation of the terms and conditions of this Contract shall not constitute
a default under any agreement to which FPT is subject or by which it may be
bound.

(d)           All
representations and warranties of FPT contained in this Contract are true and
correct as of the Contract Date, will be true and correct as of the Closing
Date, and shall survive the Closing.

18.           Environmental Matters.

(a)           LATI
represents and warrants that to the best of LATI’s knowledge, the Property does
not contain any hazardous wastes, hazardous substances, hazardous materials,
toxic substances, hazardous air pollutants or toxic pollutants as those terms
are used in the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Hazardous Materials
Transportation Act, the Toxic Substances Control Act, the Clean Air Act and the
Clean Water Act, and in any amendments thereto, or in any regulations
promulgated pursuant thereto, or in any applicable state or local law,
regulation or ordinance.

 7
 

(b)           Notwithstanding
anything to the contrary, LATI agrees to indemnify and hold FPT harmless from
and defend FPT against all claims, liabilities, damages, costs and expenses,
including reasonable attorneys’ fees, in connection with hazardous substances,
as described in Paragraph 18(a) above, placed upon the Property while under
LATI’s control.  FPT agrees to indemnify
and hold LATI harmless from and defend LATI against all claims, liabilities,
damages, costs and expenses, including attorneys’ fees, in connection with
hazardous wastes or toxic substances placed upon the Property which arise from
and after the Closing Date.  Each
indemnitee shall have the right to participate in the selection of counsel and
to approve counsel.  In the event of a
settlement or other negotiated resolution of any dispute relating to this
indemnity, the indemnitee shall be entitled to approve the terms and conditions
of any such settlement or resolution, provided however, consent to same shall
not be unreasonably withheld.  In
addition, should any indemnitor fail to fulfill the terms and conditions of its
indemnity pursuant to this paragraph, the indemnitee shall also be entitled to
recover its reasonable attorneys’ fees and costs in enforcing its rights under
this indemnity.

19.           General Indemnities.

(a)           LATI
hereby agrees to indemnify and hold FPT harmless from all losses, damages,
costs and expenses, including reasonable attorneys’ fees, incurred by FPT
subsequent to the Contract Date arising from LATI’s acts or matters that take
place prior to the Closing Date.

(b)           FPT
hereby agrees to indemnify and hold LATI harmless from all losses, damages,
costs and expenses, including reasonable attorneys’ fees, incurred by LATI
arising (i) from any litigation relating to FPT’s acts as to the Property prior
to the Closing Date, and (ii) subsequent to the Closing Date, from any
litigation relating to the Property or arising from acts, occurrences or
matters that take place on or subsequent to the Closing Date.

20.           Risk of Loss.  LATI assumes
all risk of loss due to fire or casualty up to the Closing Date.  In the event such loss occurs prior the
Closing Date, FPT shall have the right to (i) elect to close hereunder with the
Purchase Price reduced by any insurance proceeds received by LATI on account of
such damage on any Property or Equipment which was to have been purchased by
FPT, or (ii) terminate this Agreement on written notice to LATI, and upon such
termination there shall be no further liability on the part of LATI or FPT
hereunder, provided, however, that the Binder and any monies paid by FPT prior
to Closing shall thereupon be returned and refunded to FPT.

21.           Closing Documents.

(a)           At Closing, LATI shall execute and
deliver to FPT the following:

(i)            The Assignment Agreement;

(ii)           Such documents of LATI authorizing
the sale and assignment of the FILOT Lease and the transactions described in
this Contract;

 8
 

(iii)          A closing statement;

(iv)          An affidavit sufficient to cause the
title insurance company to remove the mechanic’s lien exception as a standard
exception from its title insurance policy and sufficient to comply with the
non-foreign affidavit exemption;

(v)           All affidavits and documents
reasonably required by the title insurance company to issue its leasehold
owners policy to FPT, subject to the Permitted Exceptions; and

(vi)          Such other documents which may be
necessary to the consummation of the transaction described in this Contract or
as may be reasonably requested by FPT or FPT’s counsel.

(b)           At Closing, FPT shall execute and
deliver to LATI the following:

(i)                                     The
Assignment Agreement;

(ii)                                  The
outstanding balance of the Purchase Price; and

(iii)          Such other documents which may be
necessary to the consummation of the transaction described in this Contract or
as may be requested by LATI or LATI’s counsel.

22.           Escrow of Binder.

(a)           The
Binder shall be held in escrow (the “Escrow”) by Coppedge & Tisson/Cushman
& Wakefield (the “Escrow Agent”) subject to the terms and provisions of
this Contract.  The Escrow Agent shall
hold and disburse the Binder in accordance with the terms and provisions hereof
and invest the Binder in an interest-bearing account until disbursement.

(b)           At Closing, or in the event of a
default by FPT or other failure to close by FPT except as permitted by this Contract,
the full amount of the Binder shall be delivered by the Escrow Agent to
LATI.  In the event of default by LATI,
or upon any other refund of the Binder to FPT under the terms hereof, FPT shall
be entitled to the full amount of the Binder.

(c)           If (i) the Escrow shall be terminated
by the mutual agreement of LATI and FPT; (ii) the Escrow  Agent
shall be unable to determine at any time to whom the Binder should be paid; or
(iii) a dispute develops between LATI and FPT concerning to whom the Binder
should be paid, then in any such event, the Escrow Agent shall disburse the
Binder in accordance with the joint written instructions of LATI and FPT.  In the event that such written instructions
shall not be received by the Escrow Agent within ten (10) days after the Escrow
Agent shall have served written requests for instructions upon LATI and FPT,
the Escrow Agent shall have the right to pay all or any portion of the Binder
into any state or federal court located in South Carolina and interplead LATI
and FPT in respect thereof, and thereafter the Escrow Agent shall be discharged
of any obligations in connection with the Binder.

 9
 

(d)           LATI and FPT hereby agree and
acknowledge that the Escrow Agent assumes no liability in connection with the
holding or investment of the Binder held in Escrow pursuant hereto except for
negligence or willful misconduct; and that in the event of any dispute under
this Escrow, the Escrow Agent shall be fully protected in any action taken in
good faith.  If costs and expenses,
including attorneys’ fees, are incurred by the Escrow Agent because of any
dispute between LATI and FPT arising out of the holding of the Binder, the
non-prevailing party shall pay the Escrow Agent such reasonable costs and
expenses incurred.

23.           Remedies
for Breach.

(a)           If
LATI shall default under this Contract, (i) FPT shall have the right to bring
an action for specific performance or (ii) at FPT’s election, the Binder shall
be refunded to FPT and this Contract shall then terminate without any further
claim by either party against the other.

(b)           If FPT shall default under this
Contract, LATI’s sole remedy shall be to terminate this Contract and the Binder
shall not be refunded, but shall be forfeited by the Escrow Agent to LATI as
liquidated damages.

24.           Limitation of Liability.  No officer, director, shareholder, beneficial
owner, agent or employee of Purchaser or LATI shall be personally liable for
any obligation hereunder.

25.           Confidentiality.  The parties hereto agree to maintain the
confidentiality of the this Contract, the contemplated transactions described
herein and any information received in connection with this Contract.

26.           Public Announcements.  Any public announcement, press release or
similar publicity with respect to this Contract or the contemplated
transactions described herein will be issued, if at all, only at such time and
in such manner as LATI and FPT agree in writing.

27.           Notices.  Any notice to be given in connection with
this Contract shall be in writing and shall be deemed to have been given when
deposited with a national “next day” delivery service or in the United States
mail via registered or certified mail, postage prepaid, return receipt
requested, and addressed as follows:

	
  If to LATI:

  	
   

  	
  LATI USA, Inc.

  
	
   

  	
   

  	
  257 Deming Way

  
	
   

  	
   

  	
  Summerville,
  South Carolina 29483

  
	
   

  	
   

  	
  Attention:
  Samuel Venturini

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Moore & Van Allen

  
	
   

  	
   

  	
  40 Calhoun
  Street, Suite 300

  
	
   

  	
   

  	
  Charleston,
  South Carolina 29401-3535

  
	
   

  	
   

  	
  Attention: W.
  Gregory Pearce

  

 

 10
 

 

	
  If to FPT:

  	
   

  	
  Force Protection Technologies, Inc.

  
	
   

  	
   

  	
  9801 Highway 78

  
	
   

  	
   

  	
  Ladson, South Carolina 29456

  
	
   

  	
   

  	
  Attention: John Wall, III

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Haynsworth Sinkler Boyd, P.A.

  
	
   

  	
   

  	
  Post Office Box 6617

  
	
   

  	
   

  	
  Florence, South Carolina 29502

  
	
   

  	
   

  	
  Attention: Benjamin T. Zeigler and J. Christopher
  Riddle

  

 

28.           Entire Agreement.  This Contract and the Exhibits hereto contain
the entire understanding and agreement by and between the parties and all prior
or contemporaneous oral or written agreements or instruments are merged herein.

29.           Modification.  Any modification or amendment to this
Contract must be in writing and shall be signed by all of the parties hereto.

30.           Captions and Headings.  The captions and headings throughout this
Contract shall not be deemed to contain the subject matter of this Contract,
nor be considered in the interpretation thereof, it being understood that
captions and headings are for convenience only and not for purposes of
interpretation or construction of this Contract.

31.           Time of Essence.  Time is of the essence with respect to all
provisions in this Contract.

32.           Binding Effect.  This Contract shall be binding upon and inure
to the benefit of the parties hereto, their respective permitted successors and
assigns.

33.           Counterparts.  This Contract may be executed in any number
of separate counterparts, each of which shall be deemed an original, and the
several counterparts taken together shall constitute the agreement of the
parties hereto.

34.           Survival of Provisions.  The terms, covenants, conditions,
representations, warranties and agreements contained herein shall survive and
remain enforceable after the Closing, except as may otherwise expressly be
provided herein.

35.           Disclaimer.  FPT acknowledges and agrees that upon Closing
LATI shall sell and assign to FPT and FPT shall accept the Property and the
Equipment “As Is, Where Is, with all faults,” except to the extent expressly
provided otherwise in this Contract. Unless LATI has made an express representation
in this Contract with respect to any such information, FPT has not relied and
will not rely on, and LATI is not liable for or bound by, any statements,
representations or information pertaining to the Property or the Equipment or
relating thereto (including specifically, without limitation, property
information packages distributed with respect to the Property or the Equipment)
made or furnished by any real estate broker or agent representing or purporting
to represent LATI, to whomever made or given, directly or indirectly, orally or
in writing.

 11
 

36.           License Agreement.  LATI shall have a license, for a period of
thirty (30) days from the Closing, to (i) go on to the Property to remove the
Retained Equipment; (ii) occupy designated office space, reasonably acceptable
to both parties; and (iii) clean out LATI offices and remove all LATI files
(other than files relating to the Property and the Equipment).  LATI’s license shall be limited to normal
business hours and is subject to any check-in or security measures which FPT
may implement during the thirty (30) day period.

37.           Governing Law.  This Contract will be governed by and
construed under the laws of the State of South Carolina, including the right of
specific performance of this Agreement, without regard to conflicts-of-laws
principles that would require the application of any other law.   The parties hereto specifically agree to
submit to and be bound by the jurisdiction of the courts, either federal or state,
of the State of South Carolina.  Venue
for any action brought to enforce this Contract shall lie in Charleston County,
South Carolina.

[Remainder
of page intentionally left blank.]

 12

IN
WITNESS WHEREOF, the parties hereto have caused this ASSET PURCHASE AGREEMENT
to be duly executed as of the date first above written.

 

	
  WITNESS:

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LATI USA, INC. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Samuel Venturini

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FORCE PROTECTION TECHNOLOGIES, INC. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Raymond W. Pollard

  	
   

  
	
   

  	
   

  	
   

  	
  Raymond W. Pollard, 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Operation Officer

  	
   

  
							

 

Exhibit A

Legal Description of the Land

“ALL that certain piece, parcel or tract of land, situate, lying and
being west of Summerville, Dorchester County, State of South Carolina, being
located north of the intersection of Spaniel Lane and Deming Way (S-18-789) and
being designated as Tract 10 on a certain plat entitled “PLAT SHOWING TRACT 10,
23.77 ACRES, ALONG WITH A NEW 25’ SEWER EASEMENT, BEING A PORTION OF TRACT “I”,
PROPERTY OF DORCHESTER INDUSTRIAL CENTER, INC., LOCATED IN EAST PORT INDUSTRIAL
CENTER, WEST OF SUMMERVILLE, DORCHESTER COUNTY, SOUTH CAROLINA,” dated December
2, 1997, by Timothy D. Elmer, SCPLS No. 17566, recorded in the RMC Office for
Dorchester County in Plat Book J, page 101, and having the following metes and
bounds, to wit:  To find the Point of
Beginning, locate the intersection of Deming Way centerline and Spaniel Lane
centerline, thence running in a northerly direction along the centerline of
Deming Way a distance of 727.1’, thence turning and running in a westerly
direction S82°12’20”W a distance of 40.00’ to Point A, noted as P.O.B., being
the northeast corner of Tract 3H, a 5/8” Rebar found; thence turning and
running in a westerly direction along Tract 3H N81°25’31”W a distance of 701.01’
to Point B, a 1 1⁄2” Open Pipe Found; thence turning and continuing in a westerly
direction along the property of Shannon Properties, Inc., N81°34’35”W a
distance of 409.57’ to Point C, a 1 1⁄2” Open pipe set; thence turning and
running in a northerly direction along the Residual Tract I N05°57’13”E a
distance of 994.49’ to Point D, a 1 1⁄2” Open pipe set; thence turning and
running in an easterly direction along the Residual Tract I around a curve to
the left, having a radius of 70.00’, an arc length of 80.77’, and a chord of
N62°54’00”E for 76.36’ to Point E, a 1 1⁄2” Open pipe set; thence turning and
continuing in an easterly direction along the Residual Tract I around a curve
to the right, having a radius of 25.00’, an arc length of 22.18’, and a chord
of N55°15’47”E for 21.46’ to Point F, a 1 1⁄2” Open pipe set; thence turning and
continuing in an easterly direction along the Residual Tract I S80°40’47”E a
distance of 599.77’ to Point G, a 1 1⁄2” Open pipe set; thence turning and
running in a southerly direction along the Residual Tract I around a curve to
the right, having a radius of 50.00’, an arc length of 78.54’, and a chord of
S54°19’13”E for 70.71’ to Point H, a 1 1⁄2” Open pipe set, being on the western
right-of-way of Deming Way; thence turning and continuing in a southerly
direction along the western right-of-way of Deming Way S09°19’13”E a distance
of 828.17’ to Point I, a 5/8” Rebar found; thence turning and continuing in a
southerly direction along the western right-of-way of Deming Way around a curve
to the left, having a radius of 580.00’, an arc length of 195.80’, and a chord
of S18°59’29”E for 194.87’ to Point J, a 5/8” Rebar found; thence turning and
continuing in a southerly direction along the western right-of-way of Deming
Way around a curve to the right, having a radius of 420.00’, an arc length of
152.97’, and a chord of S18°113’42”E for 152.13’ to Point K, a 5/8” Rebar
found; thence turning and continuing in a southerly direction along the western
right-of-way of Deming Way S07°47’40”E a distance of 111.59’ to the Point of
Beginning and containing 23.77 acres or 1,035,726 square feet, more or less,
and being designated as Tract 10.”

Reference is also had to plat showing Tract 10, 23.77 Acres, property
of LATI Industries, Inc., located in East Port Industrial Center, West of
Summerville, Dorchester County, South Carolina dated July 12, 1999 and recorded
August 23, 1999 in Book J, Page 140, Dorchester County RMC Office.

For derivation of title, see Deed from LATI Industries, Inc. to
Dorchester County, South Carolina dated December 18, 1998 and recorded February
18,k 1999 in Book 2137, Page 315, Dorchester County RMC Office.

TMS:  122-00-00-027

Exhibit B

Equipment

	
  Index

  	
   

  	
  Production Equipment 

  or Location

  	
   

  	
  Model

  	
   

  	
  Serial Number

  	
   

  	
  Number 

  of Items

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Weighting Additives Department

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Fan

  	
   

  	
  S05-0-152MH100STFCM3

  	
   

  	
  90200495-1A

  	
   

  	
   

  
	
  12

  	
   

  	
  Fan

  	
   

  	
  S05-0-152MH100STFCM3

  	
   

  	
  90200495-1B

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Raw Materials Department

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  Scrubber

  	
   

  	
  170IMPINJET

  	
   

  	
  RJM-0680

  	
   

  	
   

  
	
  25

  	
   

  	
  Scrubber Pump

  	
   

  	
  CRN8-30

  	
   

  	
  LATI 25

  	
   

  	
   

  
	
  26

  	
   

  	
  Fan

  	
   

  	
  575IRO15CW3609

  	
   

  	
  015356

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Extrusion Department

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  Scrubber

  	
   

  	
  170IMPINJET

  	
   

  	
  RJM-0681

  	
   

  	
   

  
	
  67

  	
   

  	
  Scrubber Pump

  	
   

  	
  CRN8-30

  	
   

  	
  LATI 67

  	
   

  	
   

  
	
  68

  	
   

  	
  Fan

  	
   

  	
  S05-0-292AH100STFCP3

  	
   

  	
  90200432-1

  	
   

  	
   

  
	
  69

  	
   

  	
  Scrubber

  	
   

  	
  115IMPINJET

  	
   

  	
  RJM-0682

  	
   

  	
   

  
	
  70

  	
   

  	
  Scrubber Pump

  	
   

  	
  CRN2-30

  	
   

  	
  LATI 70

  	
   

  	
   

  
	
  71

  	
   

  	
  Fan

  	
   

  	
  S05-0-122AH100STFCI3

  	
   

  	
  90200432-2

  	
   

  	
   

  
	
  72

  	
   

  	
  Degassing Tank

  	
   

  	
   

  	
   

  	
  LATI 72

  	
   

  	
   

  
	
  73

  	
   

  	
  Degassing Tank

  	
   

  	
   

  	
   

  	
  LATI 73

  	
   

  	
   

  
	
  74

  	
   

  	
  Pump for Degassing Tank

  	
   

  	
  C114FD18T-01U-25IN

  	
   

  	
  565636-01

  	
   

  	
   

  
	
  75

  	
   

  	
  Pump for Degassing Tank

  	
   

  	
  C114FD18T-01U-25IN

  	
   

  	
  LATI 75

  	
   

  	
   

  
	
  76

  	
   

  	
  Sludge Pump

  	
   

  	
  N/A

  	
   

  	
  LATI 76

  	
   

  	
   

  
	
  77

  	
   

  	
  Sludge Pump

  	
   

  	
  N/A

  	
   

  	
  LATI 77

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95

  	
   

  	
  Chiller

  	
   

  	
  CVHF483

  	
   

  	
  LO1C07465

  	
   

  	
   

  
	
  96

  	
   

  	
  Pump

  	
   

  	
  1510-4BC

  	
   

  	
  0307010424

  	
   

  	
   

  
	
  97

  	
   

  	
  Pump

  	
   

  	
  1510-4BC

  	
   

  	
  0307011226

  	
   

  	
   

  
	
  98

  	
   

  	
  Pump

  	
   

  	
  1510-5BC

  	
   

  	
  0306011916

  	
   

  	
   

  

 

 

	
  99

  	
   

  	
  Pump

  	
   

  	
  1510-5BC

  	
   

  	
  0306011917

  	
   

  	
   

  
	
  100

  	
   

  	
  Pump

  	
   

  	
  1510-6BC

  	
   

  	
  2273582

  	
   

  	
   

  
	
  101

  	
   

  	
  Pump

  	
   

  	
  1510-6BC

  	
   

  	
  2273581

  	
   

  	
   

  
	
  102

  	
   

  	
  Compressor

  	
   

  	
  AS47

  	
   

  	
  1072

  	
   

  	
   

  
	
  103

  	
   

  	
  Compressor

  	
   

  	
  SK19

  	
   

  	
  1260

  	
   

  	
   

  
	
  104

  	
   

  	
  Refrigeration Dryer

  	
   

  	
  TC44

  	
   

  	
  1078

  	
   

  	
   

  
	
  105

  	
   

  	
  Refrigeration Dryer

  	
   

  	
  TC44

  	
   

  	
  1079

  	
   

  	
   

  
	
  106

  	
   

  	
  Condensate Management System

  	
   

  	
  CMS-260

  	
   

  	
  LATI 106

  	
   

  	
   

  
	
  107

  	
   

  	
  Cooling Tower

  	
   

  	
  33676A

  	
   

  	
  U013351901

  	
   

  	
   

  
	
  108

  	
   

  	
  Pump

  	
   

  	
  1510-6BC

  	
   

  	
  2273580

  	
   

  	
   

  
	
  109

  	
   

  	
  Pump

  	
   

  	
  1510-6BC

  	
   

  	
  2273583

  	
   

  	
   

  
	
  110

  	
   

  	
  Pump

  	
   

  	
  1510-4E

  	
   

  	
  2273579

  	
   

  	
   

  
	
  111

  	
   

  	
  Pump

  	
   

  	
  1510-4E

  	
   

  	
  2273578

  	
   

  	
   

  
	
  120

  	
   

  	
  Emergency Generator

  	
   

  	
  GGFB-4488753

  	
   

  	
  J000163316

  	
   

  	
   

  
	
  128

  	
   

  	
  Water Heater

  	
   

  	
  CFN1800PN

  	
   

  	
  C014585

  	
   

  	
   

  
	
  129

  	
   

  	
  Water Heater

  	
   

  	
  CFN1800PN

  	
   

  	
  C014586

  	
   

  	
   

  
	
  —

  	
   

  	
  Fork Lift

  	
   

  	
  Linde

  	
   

  	
  H2X351L0791630

  	
   

  	
   

  
	
  —

  	
   

  	
  Fork Lift

  	
   

  	
  Linde

  	
   

  	
  H2X351L0791530

  	
   

  	
   

  
	
  —

  	
   

  	
  Transportable Stairs in Warehouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  All Racks in Warehouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  124

  	
   

  	
  Manual Parts Washing Station

  	
   

  	
   

  	
   

  	
  LATI 124

  	
   

  	
   

  
	
  130

  	
   

  	
  Floor Sweeper

  	
   

  	
  OBET24v/25A

  	
   

  	
  LATI 130

  	
   

  	
   

  
	
  131

  	
   

  	
  High Pressure Pump

  	
   

  	
  CAT 2530

  	
   

  	
  LATI 131

  	
   

  	
   

  
	
  132

  	
   

  	
  High Pressure Pump

  	
   

  	
  CAT 2530

  	
   

  	
  LATI 132

  	
   

  	
   

  
	
  133

  	
   

  	
  High Pressure Pump

  	
   

  	
  CAT 2530

  	
   

  	
  LATI 133

  	
   

  	
   

  
	
  134

  	
   

  	
  High Pressure Pump

  	
   

  	
  CAT 2530

  	
   

  	
  LATI 134

  	
   

  	
   

  
	
  —

  	
   

  	
  fire alarm system

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Metasys HVAC system and computer

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Siemen’s phone system

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Office Furniture – Upper Floor

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  258

  	
   

  	
  Reception

  	
   

  	
  5 drawer black lateral file cabinet - metal (k-SL45)

  	
   

  	
  LMO 81

  	
   

  	
  1

  
	
  259

  	
   

  	
  Reception

  	
   

  	
  3 drawer right knee desk piece (k-002)

  	
   

  	
  LMO 82

  	
   

  	
  1

  
	
  260

  	
   

  	
  Reception

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 83

  	
   

  	
  1

  
	
  261

  	
   

  	
  Reception

  	
   

  	
  2 drawer right knee desk 

  	
   

  	
  LMO 84

  	
   

  	
  1

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  piece (k-005)

  	
   

  	
   

  	
   

  	
   

  
	
  262

  	
   

  	
  Reception

  	
   

  	
  cover/shelf to fit left side of desk

  	
   

  	
  LMO 85

  	
   

  	
  1

  
	
  263

  	
   

  	
  Reception

  	
   

  	
  black vinyl executive chair

  	
   

  	
  LMO 86

  	
   

  	
  1

  
	
  264

  	
   

  	
  Reception

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 87

  	
   

  	
  1

  
	
  265

  	
   

  	
  Upper hallway

  	
   

  	
  3 drawer black lateral file cabinet - metal (SL57;
  SL174)

  	
   

  	
  LMO 88 - LMO 89

  	
   

  	
  2

  
	
  266

  	
   

  	
  Ladies Room

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 90

  	
   

  	
  1

  
	
  267

  	
   

  	
  Ladies Room

  	
   

  	
  printer stand (legs broken)

  	
   

  	
  LMO 91

  	
   

  	
  1

  
	
  268

  	
   

  	
  Ladies Room

  	
   

  	
  Metal

  	
   

  	
  LMO 92 through LMO 101

  	
   

  	
  10

  
	
  269

  	
   

  	
  Men’s Room

  	
   

  	
  Metal

  	
   

  	
  LMO 102 through LMO 117

  	
   

  	
  16

  
	
  270

  	
   

  	
  President’s Office

  	
   

  	
  30”x60” wood conference table

  	
   

  	
  LMO 118

  	
   

  	
  1

  
	
  271

  	
   

  	
  President’s Office

  	
   

  	
  fabric arm chair; wood arms

  	
   

  	
  LMO 119 through LMO 125

  	
   

  	
  7

  
	
  272

  	
   

  	
  President’s Office

  	
   

  	
  2 drawer wood credenza/lateral file cabinet; 24x36
  (k-N25)

  	
   

  	
  LMO 126 - LMO 127

  	
   

  	
  2

  
	
  273

  	
   

  	
  President’s Office

  	
   

  	
  3 shelf book case for top of credenza

  	
   

  	
  LMO 128

  	
   

  	
  1

  
	
  274

  	
   

  	
  President’s Office

  	
   

  	
  5 shelf wood bookcase

  	
   

  	
  LMO 129

  	
   

  	
  1

  
	
  275

  	
   

  	
  President’s Office

  	
   

  	
  4 drawer wood exec-type return desk; 23.5x72 (k-N24)

  	
   

  	
  LMO 130

  	
   

  	
  1

  
	
  276

  	
   

  	
  President’s Office

  	
   

  	
  5 drawer D-shaped wood executive desk; 36x72 (k-N24)

  	
   

  	
  LMO 131

  	
   

  	
  1

  
	
  277

  	
   

  	
  President’s Office

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 132

  	
   

  	
  1

  
	
  278

  	
   

  	
  HR/Acctng

  	
   

  	
  2 drawer wood credenza/lateral file cabinet; 24x36
  (k-N25)

  	
   

  	
  LMO 133 - LMO 134

  	
   

  	
  2

  
	
  279

  	
   

  	
  HR/Acctng

  	
   

  	
  3 shelf book case for top of credenza

  	
   

  	
  LMO 135 - LMO 136

  	
   

  	
  2

  
	
  280

  	
   

  	
  HR/Acctng

  	
   

  	
  Bullet-shaped wood secretary desk w/pencil drawer

  	
   

  	
  LMO 137

  	
   

  	
  1

  
	
  281

  	
   

  	
  HR/Acctng

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 138

  	
   

  	
  1

  
	
  282

  	
   

  	
  HR/Acctng

  	
   

  	
  4 drawer right knee desk piece (k-N23)

  	
   

  	
  LMO 139

  	
   

  	
  1

  
	
  283

  	
   

  	
  HR/Acctng

  	
   

  	
  fabric arm chair; wood arms

  	
   

  	
  LMO 140 – LMO 141

  	
   

  	
  2

  
	
  284

  	
   

  	
  HR/Acctng

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 142

  	
   

  	
  1

  
	
  285

  	
   

  	
  Technical Services/Sales

  	
   

  	
  36” round wood table

  	
   

  	
  LMO 143

  	
   

  	
  1

  

 

 

	
  286

  	
   

  	
  Technical Services/Sales

  	
   

  	
  fabric arm chair; wood arms

  	
   

  	
  LMO 144 through LMO 147

  	
   

  	
  4

  
	
  287

  	
   

  	
  Technical Services/Sales

  	
   

  	
  Bullet-shaped wood secretary desk w/pencil drawer

  	
   

  	
  LMO 148

  	
   

  	
  1

  
	
  288

  	
   

  	
  Technical Services/Sales

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 149

  	
   

  	
  1

  
	
  289

  	
   

  	
  Technical Services/Sales

  	
   

  	
  4 drawer left knee desk piece (k-N23)

  	
   

  	
  LMO 150

  	
   

  	
  1

  
	
  290

  	
   

  	
  Technical Services/Sales

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 151

  	
   

  	
  1

  
	
  291

  	
   

  	
  Technical Services/Sales

  	
   

  	
  2 shelf black metal bookcase

  	
   

  	
  LMO 152

  	
   

  	
  1

  
	
  292

  	
   

  	
  Breakroom

  	
   

  	
  36” square black pedestal table

  	
   

  	
  LMO 153 – LMO 154

  	
   

  	
  2

  
	
  293

  	
   

  	
  Breakroom

  	
   

  	
  96x30 wood laminate folding table

  	
   

  	
  LMO 155 – LMO 156

  	
   

  	
  2

  
	
  294

  	
   

  	
  Breakroom

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 157 through LMO 160

  	
   

  	
  4

  
	
  295

  	
   

  	
  Breakroom

  	
   

  	
  blue vinyl stacking chair

  	
   

  	
  LMO 161 through LMO 166

  	
   

  	
  6

  
	
  296

  	
   

  	
  Breakroom

  	
   

  	
  white 2-door pressed wood, 3 shelf starage cabinet

  	
   

  	
  LMO 167

  	
   

  	
  1

  
	
  297

  	
   

  	
  General Office

  	
   

  	
  3 drawer black lateral file cabinet - metal (SL37;
  SL146(8); SL28(6))

  	
   

  	
  LMO 168 through LMO 170

  	
   

  	
  3

  
	
  298

  	
   

  	
  General Office

  	
   

  	
  5 drawer black lateral file cabinet - metal (k-SL96;
  SL96; SL293; SL140; SL140; SL82; SL31)

  	
   

  	
  LMO 171 through LMO 177

  	
   

  	
  7

  
	
  299

  	
   

  	
  General Office

  	
   

  	
  2 door black metal cabinet (k-SL7; SL150)

  	
   

  	
  LMO 178 - LMO 179

  	
   

  	
  2

  
	
  300

  	
   

  	
  General Office

  	
   

  	
  5 shelf black metal bookcase

  	
   

  	
  LMO 180 through LMO 182

  	
   

  	
  3

  
	
  301

  	
   

  	
  General Office

  	
   

  	
  2 shelf black metal bookcase

  	
   

  	
  LMO 183

  	
   

  	
  1

  
	
  302

  	
   

  	
  General Office

  	
   

  	
  4 shelf black metal bookcase

  	
   

  	
  LMO 184

  	
   

  	
  1

  
	
  303

  	
   

  	
  General Office

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 185 through LMO 193

  	
   

  	
  9

  
	
  304

  	
   

  	
  General Office

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 194 through LMO 198

  	
   

  	
  5

  
	
  305

  	
   

  	
  customer service

  	
   

  	
  3 drawer right knee desk piece (k-N22)

  	
   

  	
  LMO 199

  	
   

  	
  1

  
	
  306

  	
   

  	
  customer service

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 200

  	
   

  	
  1

  
	
  307

  	
   

  	
  customer service

  	
   

  	
  2 drawer right knee desk piece (k-N22)

  	
   

  	
  LMO 201

  	
   

  	
  1

  
	
  308

  	
   

  	
  customer service

  	
   

  	
  topper shelf w/4 doors (k-N23)

  	
   

  	
  LMO 202

  	
   

  	
  1

  
	
  309

  	
   

  	
  Mail

  	
   

  	
  mail shelves w/ 12 slots

  	
   

  	
  LMO 203 through LMO 205

  	
   

  	
  3

  

 

 

	
  310

  	
   

  	
  office clerk

  	
   

  	
  black 3 piece cubicle desk; right knee (SL69); left
  knee (SL69)

  	
   

  	
  LMO 206

  	
   

  	
  1

  
	
  311

  	
   

  	
  office clerk

  	
   

  	
  flip shelves (SL84)

  	
   

  	
  LMO 207 - LMO 208

  	
   

  	
  2

  
	
  312

  	
   

  	
  Logistics

  	
   

  	
  black 3 piece cubicle desk; right knee (SL158); left
  knee (SL158)

  	
   

  	
  LMO 209

  	
   

  	
  1

  
	
  313

  	
   

  	
  Logistics

  	
   

  	
  flip shelves (SL26)

  	
   

  	
  LMO 210 - LMO 211

  	
   

  	
  2

  
	
  314

  	
   

  	
  Vacant

  	
   

  	
  black 3 piece cubicle desk; right knee (SL169); left
  knee (SL71)

  	
   

  	
  LMO 212

  	
   

  	
  1

  
	
  315

  	
   

  	
  Vacant

  	
   

  	
  flip shelves (SL62)

  	
   

  	
  LMO 213 - LMO 214

  	
   

  	
  2

  
	
  316

  	
   

  	
  maint tech

  	
   

  	
  black 3 piece cubicle desk; right knee (SL52); left
  knee (SL51)

  	
   

  	
  LMO 215

  	
   

  	
  1

  
	
  317

  	
   

  	
  maint tech

  	
   

  	
  flip shelves (SL52)

  	
   

  	
  LMO 216 - LMO 217

  	
   

  	
  2

  
	
  318

  	
   

  	
  Accounting

  	
   

  	
  black 3 piece cubicle desk; right knee (SL96); left
  knee (SL96)

  	
   

  	
  LMO 218

  	
   

  	
  1

  
	
  319

  	
   

  	
  Accounting

  	
   

  	
  flip shelves (SL96)

  	
   

  	
  LMO 219 - LMO 220

  	
   

  	
  2

  
	
  320

  	
   

  	
  office mgr

  	
   

  	
  pedestal bullet end w/pencil drawer

  	
   

  	
  LMO 221

  	
   

  	
  1

  
	
  321

  	
   

  	
  office mgr

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 222

  	
   

  	
  1

  
	
  322

  	
   

  	
  office mgr

  	
   

  	
  2 drawer lateral file with desktop (SL149)

  	
   

  	
  LMO 223

  	
   

  	
  1

  
	
  323

  	
   

  	
  office mgr

  	
   

  	
  flip shelf w/open shelf (SL169)

  	
   

  	
  LMO 224

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Office Furniture – Lower Floor

  	
   

  	
   

  	
   

  	
   

  
	
  324

  	
   

  	
  conference room

  	
   

  	
  wood laminate parsons table w/metal legs; 12x72

  	
   

  	
  LMO 1

  	
   

  	
  1

  
	
  325

  	
   

  	
  conference room

  	
   

  	
  1 door, 2 shelf projector stand w/raising leaf each
  side

  	
   

  	
  LMO 2

  	
   

  	
  1

  
	
  326

  	
   

  	
  conference room

  	
   

  	
  30”x60” wood conference table

  	
   

  	
  LMO 3

  	
   

  	
  1

  
	
  327

  	
   

  	
  conference room

  	
   

  	
  rounded end pieces

  	
   

  	
  LMO 4 - LMO 5

  	
   

  	
  2

  
	
  328

  	
   

  	
  conference room

  	
   

  	
  fabric conference chairs

  	
   

  	
  LMO 6 - LM0 7 - LMO 8 - LMO 9 - LMO 10 - LMO 11 -
  LMO 12 - LMO 13

  	
   

  	
  8

  
	
  329

  	
   

  	
  conference room

  	
   

  	
  4 shelf glass display case

  	
   

  	
  LMO 14 - LMO 15

  	
   

  	
  2

  
	
  330

  	
   

  	
  conference room

  	
   

  	
  2 door flipchart/projector screen wall cabinet

  	
   

  	
  LMO 16

  	
   

  	
  1

  

 

 

	
  331

  	
   

  	
  IT room

  	
   

  	
  gray cubicle desk w/attached flip shelf (SL71)

  	
   

  	
  LMO 17

  	
   

  	
  1

  
	
  332

  	
   

  	
  IT room

  	
   

  	
  light grey monitor desk

  	
   

  	
  LMO 18

  	
   

  	
  1

  
	
  333

  	
   

  	
  IT room

  	
   

  	
  maroon secretary chair; 5 wheel

  	
   

  	
  LMO 19 - LMO 20

  	
   

  	
  2

  
	
  334

  	
   

  	
  IT room

  	
   

  	
  1 door 5 shelf grey wood storage cabinet (002; 003)

  	
   

  	
  LMO 21 - LMO 22

  	
   

  	
  2

  
	
  335

  	
   

  	
  team leader

  	
   

  	
  5 drawer black lateral file cabinet - metal (SL51;
  SL71)

  	
   

  	
  LMO 23 - LMO 24

  	
   

  	
  2

  
	
  336

  	
   

  	
  team leader

  	
   

  	
  pedestal bullet end w/pencil drawer

  	
   

  	
  LMO 25

  	
   

  	
  1

  
	
  337

  	
   

  	
  team leader

  	
   

  	
  center piece w/keyboard drawer

  	
   

  	
  LMO 26

  	
   

  	
  1

  
	
  338

  	
   

  	
  team leader

  	
   

  	
  2 drawer lateral file with desktop (no lock)

  	
   

  	
  LMO 27

  	
   

  	
  1

  
	
  339

  	
   

  	
  team leader

  	
   

  	
  flip shelves (SL84; SL28)

  	
   

  	
  LMO 28 - LMO 29

  	
   

  	
  2

  
	
  340

  	
   

  	
  team leader

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 30 - LMO 31

  	
   

  	
  2

  
	
  341

  	
   

  	
  team leader

  	
   

  	
  5 shelf black metal bookcase

  	
   

  	
  LMO 32

  	
   

  	
  1

  
	
  342

  	
   

  	
  team leader

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 33

  	
   

  	
  1

  
	
  343

  	
   

  	
  team leader

  	
   

  	
  metal folding chair

  	
   

  	
  LMO 34 - LMO 35

  	
   

  	
  2

  
	
  344

  	
   

  	
  lab

  	
   

  	
  5 drawer black lateral file cabinet - metal (SL31)

  	
   

  	
  LMO 36

  	
   

  	
  1

  
	
  345

  	
   

  	
  lab

  	
   

  	
  maroon secretary chair (maroon); 5 wheel

  	
   

  	
  LMO 37

  	
   

  	
  1

  
	
  346

  	
   

  	
  lab

  	
   

  	
  fabric visitor chair, black arms

  	
   

  	
  LMO 38

  	
   

  	
  1

  
	
  347

  	
   

  	
  impact tester room

  	
   

  	
  gray heavy-duty metal table/bench

  	
   

  	
  LMO 39 - LMO 40

  	
   

  	
  2

  
	
  348

  	
   

  	
  impact tester room

  	
   

  	
  5 shelf black metal bookcase

  	
   

  	
  LMO 41

  	
   

  	
  1

  
	
  349

  	
   

  	
  molding room

  	
   

  	
  drafting stool

  	
   

  	
  LMO 42

  	
   

  	
  1

  
	
  350

  	
   

  	
  molding room

  	
   

  	
  5 drawer blue metal w/wood top workdesk

  	
   

  	
  LMO 43

  	
   

  	
  1

  
	
  351

  	
   

  	
  molding room

  	
   

  	
  4 drawer graye metal w/wood top workdesk

  	
   

  	
  LMO 44

  	
   

  	
  1

  
	
  352

  	
   

  	
  molding room

  	
   

  	
  2 door, 4 shelf plastic storage cabinet (600)

  	
   

  	
  LMO 45

  	
   

  	
  1

  
	
  353

  	
   

  	
  molding room

  	
   

  	
  2 door, 5 shelf blue metal storage cabinet - no lock

  	
   

  	
  LMO 46 – LMO 47

  	
   

  	
  2

  
	
  354

  	
   

  	
  molding room

  	
   

  	
  2 door, extra wide gray metal cabinet (RL10)

  	
   

  	
  LMO 48

  	
   

  	
  1

  
	
  355

  	
   

  	
  molding room

  	
   

  	
  wide dot-matrix printer stand

  	
   

  	
  LMO 49

  	
   

  	
  1

  
	
  356

  	
   

  	
  molding room

  	
   

  	
  heavy duty metal w/wood top 2 drawer work
  table/bench

  	
   

  	
  LMO 50

  	
   

  	
  1

  
	
  357

  	
   

  	
  hallway

  	
   

  	
  48” half-round laminate table w/locking legs

  	
   

  	
  LMO 51 – LMO 52

  	
   

  	
  2

  
	
  358

  	
   

  	
  hallway

  	
   

  	
  2door, 5 shelf storage cabinet

  	
   

  	
  LMO 53

  	
   

  	
  1

  

 

 

	
  359

  	
   

  	
  hallway

  	
   

  	
  2 shelf black metal bookcase

  	
   

  	
  LMO 54

  	
   

  	
  1

  
	
  360

  	
   

  	
  plant

  	
   

  	
  metal folding chair

  	
   

  	
  LMO 55

  	
   

  	
  1

  
	
  361

  	
   

  	
  plant

  	
   

  	
  pedestal table

  	
   

  	
  LMO 56

  	
   

  	
  1

  
	
  362

  	
   

  	
  plant

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 57

  	
   

  	
  1

  
	
  363

  	
   

  	
  plant

  	
   

  	
  5 drawer black lateral file cabinet - metal (SL51)

  	
   

  	
  LMO 58

  	
   

  	
  1

  
	
  364

  	
   

  	
  plant

  	
   

  	
  white folding table

  	
   

  	
  LMO 59 - LMO 60

  	
   

  	
  2

  
	
  365

  	
   

  	
  plant

  	
   

  	
  metal folding chair

  	
   

  	
  LMO 61 - LMO 62

  	
   

  	
  2

  
	
  366

  	
   

  	
  plant

  	
   

  	
  drafting stool

  	
   

  	
  LMO 63

  	
   

  	
  1

  
	
  367

  	
   

  	
  plant

  	
   

  	
  blue vinyl stacking chair

  	
   

  	
  LMO 64

  	
   

  	
  1

  
	
  368

  	
   

  	
  plant

  	
   

  	
  metal 2 drawer receiving desk; 6 slots

  	
   

  	
  LMO 65

  	
   

  	
  1

  
	
  369

  	
   

  	
  plant

  	
   

  	
  metal 1 drawer receiving desk; 6 slots

  	
   

  	
  LMO 66

  	
   

  	
  1

  
	
  370

  	
   

  	
  plant

  	
   

  	
  metal 2 drawer receiving desk; 6 slots

  	
   

  	
  LMO 67

  	
   

  	
  1

  
	
  371

  	
   

  	
  plant

  	
   

  	
  drafting stool

  	
   

  	
  LMO 68

  	
   

  	
  1

  
	
  372

  	
   

  	
  plant

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 69

  	
   

  	
  1

  
	
  373

  	
   

  	
  plant

  	
   

  	
  2 door locking storage cabinet

  	
   

  	
  LMO 70 - LMO 71

  	
   

  	
  2

  
	
  374

  	
   

  	
  plant

  	
   

  	
  fabric secretary chair; 5 wheel; black arms

  	
   

  	
  LMO 72

  	
   

  	
  1

  
	
  375

  	
   

  	
  plant

  	
   

  	
  2 door locking storage cabinet

  	
   

  	
  LMO 73 - LMO 74

  	
   

  	
  2

  
	
  376

  	
   

  	
  plant

  	
   

  	
  rounded end pieces

  	
   

  	
  LMO 75 - LMO 76

  	
   

  	
  2

  
	
  377

  	
   

  	
  plant

  	
   

  	
  pres desk

  	
   

  	
  LMO 77

  	
   

  	
  1

  
	
  378

  	
   

  	
  plant

  	
   

  	
  metal 2 drawer receiving desk; 6 slots

  	
   

  	
  LMO 78

  	
   

  	
  1

  
	
  379

  	
   

  	
  plant

  	
   

  	
  drafting stool

  	
   

  	
  LMO 79

  	
   

  	
  1

  
	
  380

  	
   

  	
  plant

  	
   

  	
  blue vinyl stacking chair

  	
   

  	
  LMO 80

  	
   

  	
  1

  

 

Exhibit C

Form of
Assignment and Assumption Agreement

[To Be Provided.]

Exhibit D

Retained
Equipment

	
  Index

  	
   

  	
  Production Equipment

  	
   

  	
  Model

  	
   

  	
  Serial Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Extrusion Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  Extruder Cooling System

  	
   

  	
  SSH-F, Size 1x2-6

  	
   

  	
  LATI 38

  
	
  48

  	
   

  	
  Cooling Pump for Water Bath

  	
   

  	
  Size 3517 C10

  	
   

  	
  168022

  
	
  49

  	
   

  	
  Heat Exchanger for Water Bath

  	
   

  	
   

  	
   

  	
  LATI 49

  
	
  50

  	
   

  	
  Air Knife

  	
   

  	
  512-07 SDS

  	
   

  	
  70280 3

  
	
  60

  	
   

  	
  Duraload Vacuum Receiver

  	
   

  	
  DL15

  	
   

  	
  125074

  
	
  61

  	
   

  	
  Positive Displacement Pump

  	
   

  	
  PD75

  	
   

  	
  124580

  
	
  62

  	
   

  	
  Manual Dust Collector

  	
   

  	
  DC2

  	
   

  	
  123221

  
	
  78

  	
   

  	
  Dies Oven

  	
   

  	
  DC-167-G-ST350

  	
   

  	
  DC-9393

  
	
  —

  	
   

  	
  Extruder mezzanine

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Packaging Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  Silo

  	
   

  	
   

  	
   

  	
  LATI 80

  
	
  81

  	
   

  	
  Silo

  	
   

  	
   

  	
   

  	
  LATI 81

  
	
  84

  	
   

  	
  Wrapping Machine

  	
   

  	
  ROTOPLAT 305FR

  	
   

  	
  KN45245

  
	
  85

  	
   

  	
  Gru a Bandiera

  	
   

  	
  SC80/4000

  	
   

  	
  20011191

  
	
  87

  	
   

  	
  Blower

  	
   

  	
  RBS 65/F

  	
   

  	
  01-05055

  
	
  88

  	
   

  	
  Filter for Vacuum System

  	
   

  	
   

  	
   

  	
  LATI 88

  
	
  89

  	
   

  	
  Fan

  	
   

  	
   

  	
   

  	
  LATI 89

  
	
  —

  	
   

  	
  Packaging mezzanine

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Packaging Electrical Panel

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Packaging Conveyor

  	
   

  	
   

  	
   

  	
   

  
	
  -

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  General Services

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  119

  	
   

  	
  TORIT FILTER

  	
   

  	
  DF 03-12

  	
   

  	
  IG692543-001

  
	
  —

  	
   

  	
  Robuschi Blower

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Index

  	
   

  	
  Lab Equipment

  	
   

  	
  Model

  	
   

  	
  Serial Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  155

  	
   

  	
  Molding Machine

  	
   

  	
  Engel ES80/40 TL

  	
   

  	
  70787/040/01

  
	
  156

  	
   

  	
  Molding Tools

  	
   

  	
  ISO and ASTM bars Molds

  	
   

  	
  LATI 156

  
	
  157

  	
   

  	
  Molding Tools

  	
   

  	
  multi-cavity tool

  	
   

  	
  LATI 157

  
	
  158

  	
   

  	
  Resin Dryer

  	
   

  	
  AEC Whitlock WD-25MR

  	
   

  	
  31C 0210

  
	
  159

  	
   

  	
  Mold Temp. Controller

  	
   

  	
  AEC TCU 100

  	
   

  	
  31C 5433

  

 

	
  Index

  	
   

  	
  General Equipment

  	
   

  	
  Model

  	
   

  	
  Serial Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Car

  	
   

  	
  Jetta

  	
   

  	
  3VWRK69M14MO36399

  
	
  —

  	
   

  	
  IT Equipment (with the exception that the fire alarm
  system, Metasys HVAC system and computer, and Siemen’s phone system will be
  included in the Equipment conveyed)

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  Fork lift

  	
   

  	
   

  	
   

  	
  350J05335518

  
	
  —

  	
   

  	
  PBX and related cabin, T1

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  kitchen appliances (microwave and coffee maker)

  	
   

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  office appliances (televisions and fax machines)Return to:

  	
   

  	
  Haynsworth Sinkler Boyd, P.A.

  
	
   

  	
   

  	
  Post Office Box 6617

  
	
   

  	
   

  	
  Florence, South Carolina 29502-6617

  
	
   

  	
   

  	
  HSB File 32563.0004

  

 

	
  STATE OF SOUTH CAROLINA 

  	
   

  	
   

  
	
   

  	
   

  	
  ASSIGNMENT
  AND ASSUMPTION

  
	
  COUNTY OF DORCHESTER

  	
   

  	
  AGREEMENT

  

 

 

FOR INDEXING PURPOSES:

Memorandum of Lease Agreement recorded in
Book 2137 at Page 319;

rerecorded Book 2156 at Page 100

First Amendment of
Memorandum of Lease Agreement recorded in Book 4976 at Page 240

This ASSIGNMENT AND
ASSUMPTION AGREEMENT (the “Agreement”) is
made effective as of the 22nd day of March, 2007 (the “Effective Date”) by and
between LATI USA, INC., a South Carolina
corporation, formerly known as LATI INDUSTRIES, INC.  (“LATI”) and FORCE
PROTECTION TECHNOLOGIES, INC., a Nevada corporation (“FPT”).  LATI and
FPT are sometimes referred to herein as the “parties.”

RECITALS:

WHEREAS,
Dorchester County, South Carolina (the “County”) and LATI have entered into a Lease Agreement dated December 7,
1998, as amended by that certain First Amendment of Lease Agreement dated July
25, 2005 (as amended, the “FILOT Lease”) with regard to certain real (as
set forth in Exhibit A attached hereto) and personal property located in
the County (the “FILOT Property”);

WHEREAS,
prior to the entry by the County and LATI into the FILOT Lease, the County and
LATI entered into an Inducement Agreement and Millage Rate Agreement dated as
of April 6, 1998, as amended by that certain Amendment to Inducement Agreement
and Millage Rate Agreement dated as of February 17, 1999 (as amended, the “Inducement
Agreement”) relating to the FILOT Property and the millage to be levied by the
County against the FILOT Property for purposes of computing payments by LATI of
a fee in lieu of taxes with regard to the FILOT Property;

WHEREAS,
Section 9.01 of the FILOT
Lease provides that LATI may assign its interest in the FILOT Lease;

 1
 

WHEREAS, pursuant to the terms of that certain Asset
Purchase Agreement dated as of even date herewith by and between LATI and FPT
(the “Asset Purchase Agreement”), LATI desires to sell and assign to FPT, and FPT
desires to acquire and assume from LATI, all of LATI’s rights and interest in
and to the FILOT Lease; and

WHEREAS,
by Resolution #07-03, duly adopted by the Dorchester County Council on March
19, 2007 (the “Approval Resolution”), the County (a) approved the assignment and transfer by LATI to FPT of the
FILOT Lease, and (b) authorized the
County Administrator of Dorchester County
Council to execute on behalf of the County such documents as the County
Administrator determines are reasonably
required in order to further reflect or evidence the approval by the County,
including, without limitation, any modifications to the documents previously
executed or approved by the County relating to the projects subject to this
Agreement as may be required in order to clarify any ambiguities or remedy any
omissions or errors in such documents.

NOW, THEREFORE, for and in consideration the
covenants herein set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed, the
parties covenant and agree as follows:

1.             Assignment.  As of the Effective Date, LATI assigns all of
its rights under the FILOT Lease, the Inducement Agreement and the related documents
to FPT.

2.             Assumption
of Obligations.  FPT shall discharge
in full all of LATI’s liabilities, duties and obligations arising under, or in
any manner related to, the FILOT Lease and accruing after 12:01 a.m. on the
Effective Date.  FPT, as of such date and
time, shall comply with all terms, covenants and conditions of the FILOT
Lease.  FPT shall have no liability with
respect to any payments under the FILOT Lease which come due after the
Effective Date, but which arose in connection with periods occurring prior to
the Effective Date.

3.             Release
of LATI.  LATI is hereby released
from any and all obligations, duties, and liabilities arising under, or in any
manner related to, the FILOT Lease and accruing after 12:01 a.m. on the
Effective Date, and FPT hereby accepts and assumes all such obligations,
duties, liabilities and benefits relating to the FILOT Lease.  LATI is not released, however, from liability
with respect to any payments under the FILOT which (i) are due as of the
Effective Date, or (ii) come due after the Effective Date, but which arose in
connection to periods occurring prior to the Effective Date.

4.             Transfer
of Title.  Article X of the FILOT
Lease provides the tenant under the FILOT Lease with (i) a mandatory obligation
to purchase the Project (as defined in the FILOT Lease) and (ii) options to
from time to time to purchase the Project. 
Upon the occurrence of the mandatory purchase obligation or the exercise
of the purchase option provisions set forth in Article X of the FILOT Lease, the
FILOT Lease provides that the County shall transfer directly to LATI all of its
fee simple ownership interest in the Project with respect to which such option
is exercised.  The parties intend that
this Agreement modify the FILOT Lease and any related documents so that the
County shall transfer directly to FPT all of its fee simple ownership interest
in the Project with respect to which such option is exercised.

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5.             Fee in Lieu of Taxes Invoices.

(a)            LATI will immediately notify the
South Carolina Department of Revenue of this Agreement and the assignment by
LATI to FPT.

(b)           It is intended that FPT shall
separately make any submissions or reports to the appropriate governmental
authorities in connection with the FILOT Payments (as defined in the FILOT Lease).  FPT shall be responsible for making all
necessary and required FILOT Payments and for complying with all reporting
requirements that may be required beginning as of the Effective Date, directly
to the County or the South Carolina Department of Revenue, concerning the FILOT
Lease.

6.             Notices.  Any notice to be given in connection with
this Agreement shall be in writing and shall be deemed to have been given when
deposited with a national “next day” delivery service or in the United States
mail via registered or certified mail, postage prepaid, return receipt
requested, and addressed as follows:

	
  If to LATI:

  	
   

  	
  LATI USA, Inc.

  
	
   

  	
   

  	
  257 Deming Way

  
	
   

  	
   

  	
  Summerville, South Carolina 29483

  
	
   

  	
   

  	
  Attention: Samuel Venturini

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Moore & Van Allen

  
	
   

  	
   

  	
  40 Calhoun Street, Suite 300

  
	
   

  	
   

  	
  Charleston, South Carolina 29401-3535

  
	
   

  	
   

  	
  Attention: W. Gregory Pearce

  
	
   

  	
   

  	
   

  
	
  If to FPT:

  	
   

  	
  Force Protection Technologies, Inc.

  
	
   

  	
   

  	
  9801 Highway 78

  
	
   

  	
   

  	
  Ladson, South Carolina 29456

  
	
   

  	
   

  	
  Attention: John Wall, III

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Haynsworth Sinkler Boyd, P.A.

  
	
   

  	
   

  	
  Post Office Box 6617

  
	
   

  	
   

  	
  Florence, South Carolina 29502

  
	
   

  	
   

  	
  Attention: Benjamin T. Zeigler and J. Christopher
  Riddle

  

 

7.             Severability.
In the event that any term, covenant or provision of this Agreement should be
determined to be illegal, invalid or unenforceable, that term, covenant or
provision shall be severed and removed herefrom and this Agreement shall be
construed as if such term, covenant or provision had never been contained
herein.

8.             Governing
Law.  This Agreement and all matters
relating thereto shall be governed by and construed and interpreted in
accordance with the laws of the State of South Carolina. LATI and FPT hereby
submit to the jurisdiction of the state and Federal courts located in South
Carolina and agree that this Agreement may be enforced in such courts.

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9.             Counterparts.  This Agreement may be executed in any number
of counterparts with the same effect as if both parties had signed the same
document.  All counterparts shall be construed
together and constitute the same instrument.

TO HAVE AND TO HOLD the same together with all
rights, titles, interests, privileges, claims, demands and equities existing
and to exist in connection therewith unto FPT, its successors and permitted
assigns forever.

[Remainder of page intentionally left blank.]

 4

IN WITNESS WHEREOF, this Assignment and Assumption
Agreement has been executed by LATI and FPT effective as of the Effective Date.

	
  WITNESSES:

  	
   

  	
  LATI USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Samuel Venturini

  	
   

  
	
  Witness 1

  	
   

  	
  Name:

  	
  Samuel Venturini

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness 2

  	
   

  	
   

  
							

 

	
  STATE OF SOUTH CAROLINA

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF CHARLESTON

  	
  )

  

 

I, W. Gregory Pierce, Notary Public for the State of South Carolina, do
hereby certify that LATI USA, INC., a South Carolina corporation, by Samuel
Venturini, its President,  personally appeared before me this day
and acknowledged the due execution the foregoing instrument.

Subscribed to and sworn before me this 22nd day of
March, 2007.

	
  

  	
  /s/ W. Gregory Pierce

  	
  (L.S.)

  
	
   

  	
  Notary Public, State of South Carolina

  
	
   

  	
  My Commission Expires:

  	
  4/1/2014

  	
   

  
	
   

  	
   

  
	
   

  	
  [NOTARIAL SEAL]

  
				

 

[Signature Pages Continue]

 

	
  WITNESSES:

  	
   

  	
  FORCE PROTECTION
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Raymond W. Pollard

  	
   

  
	
  Witness 1

  	
   

  	
  Name:

  	
  Raymond W. Pollard

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Operation Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness 2

  	
   

  	
   

  
							

 

	
  STATE OF SOUTH CAROLINA

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF CHARLESTON

  	
  )

  

 

I, W. Gregory Pierce,
Notary Public for the State of South Carolina, do hereby certify that FORCE
PROTECTION TECHNOLOGIES, INC., a Nevada corporation, by Raymond W. Pollard,
its Chief Operation Officer, personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument.

Subscribed to and sworn before me this             
day of March, 2007.

	
  

  	
  /s/ W. Gregory Pierce

  	
  (L.S.)

  
	
   

  	
  Notary Public, State of South Carolina

  
	
   

  	
  My Commission Expires:

  	
  4/1/2014

  	
   

  
	
   

  	
   

  
	
   

  	
  [NOTARIAL SEAL]

  
				

 

[Signature Pages Continue]

CONSENT
AND AGREEMENT

TO

ASSIGNMENT AND ASSUMPTION AGREEMENT

The County consents to the above assignment and assumption to FPT of
the Assigned Property and the rights and obligations pertaining thereto under
the FILOT Lease, the Inducement Agreement and the related documents, and to the
above release of LATI from the obligations related to the rights and
obligations pertaining thereto under the FILOT Lease and the related documents,
to the extent and on the terms provided herein; provided, however, that LATI is
not released from liability with respect to any under payment of fees under the
FILOT Lease that may be owed.

	
  WITNESSES:

  	
   

  	
   

  
	
   

  	
   

  	
  DORCHESTER COUNTY, SOUTH
  CAROLINA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jason L. Ward

  	
   

  
	
  Witness 1

  	
   

  	
  Name:

  	
  Jason L. Ward

  	
   

  
	
   

  	
   

  	
  Title:

  	
  County Administrator

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness 2

  	
   

  	
   

  
							

 

	
  STATE OF SOUTH CAROLINA

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF DORCHESTER

  	
  )

  

 

I, Gina R. Sams, Notary Public for the State of South Carolina, do
hereby certify that Dorchester County, South Carolina, a body politic and corporate and a political subdivision of the State
of South Carolina, by                          ,
County Administrator, personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument.

Subscribed to and sworn before me this 21st day of
March, 2007.

	
  

  	
  /s/ Gina R. Sams

  	
  (L.S.)

  
	
   

  	
  Notary Public, State of South Carolina

  
	
   

  	
  My Commission Expires:

  	
  4-9-11

  	
   

  
	
   

  	
   

  
	
   

  	
  [NOTARIAL SEAL]

  
				

 

Exhibit A

Legal
Description

“ALL that certain piece, parcel or tract of land, situate, lying and
being west of Summerville, Dorchester County, State of South Carolina, being
located north of the intersection of Spaniel Lane and Deming Way (S-18-789) and
being designated as Tract 10 on a certain plat entitled “PLAT SHOWING TRACT 10,
23.77 ACRES, ALONG WITH A NEW 25’ SEWER EASEMENT, BEING A PORTION OF TRACT “I”,
PROPERTY OF DORCHESTER INDUSTRIAL CENTER, INC., LOCATED IN EAST PORT INDUSTRIAL
CENTER, WEST OF SUMMERVILLE, DORCHESTER COUNTY, SOUTH CAROLINA,” dated December
2, 1997, by Timothy D. Elmer, SCPLS No. 17566, recorded in the RMC Office for
Dorchester County in Plat Book J, page 101, and having the following metes and
bounds, to wit:  To find the Point of
Beginning, locate the intersection of Deming Way centerline and Spaniel Lane
centerline, thence running in a northerly direction along the centerline of
Deming Way a distance of 727.1’, thence turning and running in a westerly
direction S82°12’20”W a distance of 40.00’ to Point A, noted as P.O.B., being
the northeast corner of Tract 3H, a 5/8” Rebar found; thence turning and
running in a westerly direction along Tract 3H N81°25’31”W a distance of 701.01’
to Point B, a 1 1⁄2” Open Pipe Found; thence turning and continuing in a westerly
direction along the property of Shannon Properties, Inc., N81°34’35”W a
distance of 409.57’ to Point C, a 1 1⁄2” Open pipe set; thence turning and
running in a northerly direction along the Residual Tract I N05°57’13”E a
distance of 994.49’ to Point D, a 1 1⁄2” Open pipe set; thence turning and
running in an easterly direction along the Residual Tract I around a curve to
the left, having a radius of 70.00’, an arc length of 80.77’, and a chord of
N62°54’00”E for 76.36’ to Point E, a 1 1⁄2” Open pipe set; thence turning and
continuing in an easterly direction along the Residual Tract I around a curve
to the right, having a radius of 25.00’, an arc length of 22.18’, and a chord
of N55°15’47”E for 21.46’ to Point F, a 1 1⁄2” Open pipe set; thence turning and
continuing in an easterly direction along the Residual Tract I S80°40’47”E a
distance of 599.77’ to Point G, a 1 1⁄2” Open pipe set; thence turning and
running in a southerly direction along the Residual Tract I around a curve to
the right, having a radius of 50.00’, an arc length of 78.54’, and a chord of
S54°19’13”E for 70.71’ to Point H, a 1 1⁄2” Open pipe set, being on the western
right-of-way of Deming Way; thence turning and continuing in a southerly
direction along the western right-of-way of Deming Way S09°19’13”E a distance
of 828.17’ to Point I, a 5/8” Rebar found; thence turning and continuing in a
southerly direction along the western right-of-way of Deming Way around a curve
to the left, having a radius of 580.00’, an arc length of 195.80’, and a chord
of S18°59’29”E for 194.87’ to Point J, a 5/8” Rebar found; thence turning and
continuing in a southerly direction along the western right-of-way of Deming
Way around a curve to the right, having a radius of 420.00’, an arc length of
152.97’, and a chord of S18°113’42”E for 152.13’ to Point K, a 5/8” Rebar found;
thence turning and continuing in a southerly direction along the western
right-of-way of Deming Way S07°47’40”E a distance of 111.59’ to the Point of
Beginning and containing 23.77 acres or 1,035,726 square feet, more or less,
and being designated as Tract 10.”

Reference is also had to plat showing Tract 10, 23.77 Acres, property
of LATI Industries, Inc., located in East Port Industrial Center, West of
Summerville, Dorchester County, South Carolina dated July 12, 1999 and recorded
August 23, 1999 in Book J, Page 140, Dorchester County RMC Office.

For derivation of title, see Deed from LATI Industries, Inc. to
Dorchester County, South Carolina dated December 18, 1998 and recorded February
18,k 1999 in Book 2137, Page 315, Dorchester County RMC Office.

TMS:  122-00-00-027

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