Document:

exv4w1

EXHIBIT 4.1

THE MANAGEMENT NETWORK GROUP, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 1999 Employee Stock Purchase Plan of The
Management Network Group, Inc.

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through
accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an
“Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended.
The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation
in a manner consistent with the requirements of that section of the Code.

     2. Definitions.

          (a) “Board” shall mean the Board of Directors of the Company.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (c) “Common Stock” shall mean the common stock of the Company.

          (d) “Company” shall mean The Management Network Group, Inc. and any Designated
Subsidiary of the Company.

          (e) “Compensation” shall mean all base straight time gross earnings and commissions,
but exclusive of payments for overtime, shift premium, incentive compensation, incentive payments,
bonuses and other compensation.

          (f) “Designated Subsidiary” shall mean any Subsidiary which has been designated by the
Board from time to time in its sole discretion as eligible to participate in the Plan.

          (g) “Employee” shall mean any individual who is an Employee of the Company for tax
purposes whose customary employment with the Company is at least twenty (20) hours per week and
more than five (5) months in any calendar year. For purposes of the Plan, the employment
relationship shall be treated as continuing intact while the individual is on sick leave or other
leave of absence approved by the Company. Where the period of leave exceeds 90 days and the
individual’s right to reemployment is not guaranteed either by statute or by contract, the
employment relationship shall be deemed to have terminated on the 91st day of such leave.

          (h) “Enrollment Date” shall mean the first Trading Day of each Offering Period.

          (i) “Exercise Date” shall mean the last Trading Day of each Purchase Period.

 

 

          (j) “Fair Market Value” shall mean, as of any date, the value of Common Stock
determined as follows:

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system for the last
market trading day prior to the date of determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked
prices for the Common Stock prior to the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable;

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Board; or

               (iv) For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair
Market Value shall be the initial price to the public as set forth in the final prospectus included
within the registration statement in Form S-1 filed with the Securities and Exchange Commission for
the initial public offering of the Company’s Common Stock (the “Registration Statement”).

          (k) “Offering Periods” shall mean the periods of approximately twenty-four (24) months
during which an option granted pursuant to the Plan may be exercised, commencing on the first
Trading Day on or after November 1 and April 30 of each year and terminating on the last Trading
Day in the periods ending twenty-four months later. The duration and timing of Offering Periods
may be changed pursuant to Section 4 of this Plan.

          (l) “Plan” shall mean this 1999 Employee Stock Purchase Plan.

          (m) “Purchase Period” shall mean the approximately six month period commencing after
one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of
any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date.

          (n) “Purchase Price” shall mean 85% of the Fair Market Value of a share of Common
Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that
the Purchase Price may be adjusted by the Board pursuant to Section 20.

          (o) “Reserves” shall mean the number of shares of Common Stock covered by each option
under the Plan which have not yet been exercised and the number of shares of Common Stock which
have been authorized for issuance under the Plan but not yet placed under option.

 

 

          (p) “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than
50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation
now exists or is hereafter organized or acquired by the Company or a Subsidiary.

          (q) “Trading Day” shall mean a day on which national stock exchanges and the Nasdaq
System are open for trading.

     3. Eligibility.

          (a) Any Employee who shall be employed by the Company on a given Enrollment Date shall be
eligible to participate in the Plan.

          (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted
an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any
other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the
Code) would own capital stock of the Company and/or hold outstanding options to purchase such stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights
to purchase stock under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined
at the fair market value of the shares at the time such option is granted) for each calendar year
in which such option is outstanding at any time.

     4. Offering Periods. The Plan shall be implemented by consecutive, overlapping
Offering Periods with a new Offering Period commencing on the first Trading Day on or after
November 1 and April 30 each year, or on such other date as the Board shall determine, and
continuing thereafter until terminated in accordance with Section 20 hereof. The Board shall have
the power to change the duration of Offering Periods (including the commencement dates thereof)
with respect to future offerings without shareholder approval if such change is announced at least
five (5) days prior to the scheduled beginning of the first Offering Period to be affected
thereafter.

     5. Participation.

          (a) An eligible Employee may become a participant in the Plan by completing a subscription
agreement authorizing payroll deductions in the form of Exhibit A to this Plan and filing it with
the Company’s payroll office prior to the applicable Enrollment Date.

          (b) Payroll deductions for a participant shall commence on the first payroll following the
Enrollment Date and shall end on the last payroll in the Offering Period to which such
authorization is applicable, unless sooner terminated by the participant as provided in Section 10
hereof.

     6. Payroll Deductions.

          (a) At the time a participant files his or her subscription agreement, he or she shall elect
to have payroll deductions made on each pay day during the Offering Period in an amount

 

 

not exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay
day during the Offering Period.

          (b) All payroll deductions made for a participant shall be credited to his or her account
under the Plan and shall be withheld in whole percentages only. A participant may not make any
additional payments into such account.

          (c) A participant may discontinue his or her participation in the Plan as provided in Section
10 hereof, or may increase or decrease the rate of his or her payroll deductions during the
Offering Period by completing or filing with the Company a new subscription agreement authorizing a
change in payroll deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall be effective with
the first full payroll period following five (5) business days after the Company’s receipt of the
new subscription agreement unless the Company elects to process a given change in participation
more quickly. A participant’s subscription agreement shall remain in effect for successive
Offering Periods unless terminated as provided in Section 10 hereof.

          (d) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero
percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant’s subscription agreement at the beginning of the first Purchase Period
which is scheduled to end in the following calendar year, unless terminated by the participant as
provided in Section 10 hereof.

          (e) At the time the option is exercised, in whole or in part, or at the time some or all of
the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate
provision for the Company’s federal, state, or other tax withholding obligations, if any, which
arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participant’s compensation the amount
necessary for the Company to meet applicable withholding obligations, including any withholding
required to make available to the Company any tax deductions or benefits attributable to sale or
early disposition of Common Stock by the Employee.

     7. Grant of Option. On the Enrollment Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to purchase on each
Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of
shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions
accumulated prior to such Exercise Date and retained in the Participant’s account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be
permitted to purchase during each Purchase Period more than 10,000 shares of the Company’s Common
Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase
shall be subject to the limitations set forth in Sections 3(b) and 12 hereof. The Board may, for
future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of
shares of the Company’s Common Stock an Employee may purchase during each Purchase Period of such
Offering Period. Exercise of the option shall occur as provided in Section 8 hereof, unless the

 

 

participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last
day of the Offering Period.

     8. Exercise of Option.

          (a) Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her
option for the purchase of shares shall be exercised automatically on the Exercise Date, and the
maximum number of full shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her account. No
fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account
which are not sufficient to purchase a full share shall be retained in the participant’s account
for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof. Any other monies left over in a participant’s
account after the Exercise Date shall be returned to the participant. During a participant’s
lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

          (b) If the Board determines that, on a given Exercise Date, the number of shares with respect
to which options are to be exercised may exceed (i) the number of shares of Common Stock that were
available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or
(ii) the number of shares available for sale under the Plan on such Exercise Date, the Board may in
its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of
Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on such Exercise Date,
and continue all Offering Periods then in effect, or (y) provide that the Company shall make a pro
rata allocation of the shares available for purchase on such Enrollment Date or Exercise Date, as
applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase Common Stock on
such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20
hereof. The Company may make pro rata allocation of the shares available on the Enrollment Date of
any applicable Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company’s shareholders
subsequent to such Enrollment Date.

     9. Delivery. As promptly as practicable after each Exercise Date on which a purchase
of shares occurs, the Company shall arrange the delivery to each participant, as appropriate, of a
certificate representing the shares purchased upon exercise of his or her option.

     10. Withdrawal.

          (a) A participant may withdraw all but not less than all the payroll deductions credited to
his or her account and not yet used to exercise his or her option under the Plan at any time by
giving written notice to the Company in the form of Exhibit B to this Plan. All of the
participant’s payroll deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant’s option for the Offering
Period

 

 

shall be automatically terminated, and no further payroll deductions for the purchase of
shares shall be made for such Offering Period. If a participant withdraws from an Offering Period,
payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the
participant delivers to the Company a new subscription agreement.

          (b) A participant’s withdrawal from an Offering Period shall not have any effect upon his or
her eligibility to participate in any similar plan which may hereafter be adopted by the Company or
in succeeding Offering Periods which commence after the termination of the Offering Period from
which the participant withdraws.

     11. Termination of Employment.

Upon a participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have
elected to withdraw from the Plan and the payroll deductions credited to such participant’s account
during the Offering Period but not yet used to exercise the option shall be returned to such
participant or, in the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such participant’s option shall be automatically terminated. The preceding
sentence notwithstanding, a participant who receives payment in lieu of notice of termination of
employment shall be treated as continuing to be an Employee for the participant’s customary number
of hours per week of employment during the period in which the participant is subject to such
payment in lieu of notice.

     12. Interest. No interest shall accrue on the payroll deductions of a participant in
the Plan.

     13. Stock.

          (a) Subject to adjustment upon changes in capitalization of the Company as provided in Section
19 hereof, the maximum number of shares of the Company’s Common Stock which shall be made available
for sale under the Plan shall be 200,000 shares, plus an annual increase to be added on the first
day of the Company’s fiscal year beginning in 2000 equal to the lesser of (i) 200,000 shares,
(ii) 0.5% of the outstanding shares on such date or (iii) a lesser amount determined by the Board.
If, on a given Exercise Date, the number of shares with respect to which options are to be
exercised exceeds the number of shares then available under the Plan, the Company shall make a pro
rata allocation of the shares remaining available for purchase in as uniform a manner as shall be
practicable and as it shall determine to be equitable.

          (b) The participant shall have no interest or voting right in shares covered by his option
until such option has been exercised.

          (c) Shares to be delivered to a participant under the Plan shall be registered in the name of
the participant or in the name of the participant and his or her spouse.

     14. Administration. The Plan shall be administered by the Board or a committee of
members of the Board appointed by the Board. The Board or its committee shall have full and
exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to
determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding,
decision and

 

 

determination made by the Board or its committee shall, to the full extent permitted by law,
be final and binding upon all parties.

     15. Designation of Beneficiary.

          (a) A participant may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the participant’s account under the Plan in the event of such participant’s
death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such
participant of such shares and cash. In addition, a participant may file a written designation of
a beneficiary who is to receive any cash from the participant’s account under the Plan in the event
of such participant’s death prior to exercise of the option. If a participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for such designation to
be effective.

          (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such participant’s death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

     16. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 15 hereof) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds from an Offering Period in accordance
with Section 10 hereof.

     17. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions.

     18. Reports. Individual accounts shall be maintained for each participant in the
Plan. Statements of account shall be given to participating Employees at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares purchased and the remaining cash balance, if any.

     19. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset
Sale.

          (a) Changes in Capitalization. Subject to any required action by the shareholders of
the Company, the Reserves, the maximum number of shares each participant may purchase each Purchase
Period (pursuant to Section 7), as well as the price per share and the number of shares of Common
Stock covered by each option under the Plan which has not yet been exercised shall be

 

 

proportionately adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the number of shares of
Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to an option.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be shortened by setting a
new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the
consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board.
The New Exercise Date shall be before the date of the Company’s proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten (10) business days
prior to the New Exercise Date, that the Exercise Date for the participant’s option has been
changed to the New Exercise Date and that the participant’s option shall be exercised automatically
on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering
Period as provided in Section 10 hereof.

          (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all
of the assets of the Company, or the merger of the Company with or into another corporation, each
outstanding option shall be assumed or an equivalent option substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the option, any Purchase Periods then in
progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any
Offering Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall
be before the date of the Company’s proposed sale or merger. The Board shall notify each
participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the participant’s option has been changed to the New Exercise Date and that the
participant’s option shall be exercised automatically on the New Exercise Date, unless prior to
such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.

     20. Amendment or Termination.

          (a) The Board of Directors of the Company may at any time and for any reason terminate or
amend the Plan. Except as provided in Section 19 hereof, no such termination can affect options
previously granted, provided that an Offering Period may be terminated by the Board of Directors on
any Exercise Date if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its shareholders. Except as provided in Section 19 and
this Section 20 hereof, no amendment may make any change in any option theretofore granted which
adversely affects the rights of any participant. To the extent necessary to comply with Section
423 of the Code (or any successor rule or provision or any other applicable law,

 

 

regulation or stock exchange rule), the Company shall obtain shareholder approval in such a
manner and to such a degree as required.

          (b) Without shareholder consent and without regard to whether any participant rights may be
considered to have been “adversely affected,” the Board (or its committee) shall be entitled to
change the Offering Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by
a participant in order to adjust for delays or mistakes in the Company’s processing of properly
completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Common
Stock for each participant properly correspond with amounts withheld from the participant’s
Compensation, and establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan.

          (c) In the event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent
necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence
including, but not limited to:

               (i) altering the Purchase Price for any Offering Period including an Offering Period underway
at the time of the change in Purchase Price;

               (ii) shortening any Offering Period so that Offering Period ends on a new Exercise Date,
including an Offering Period underway at the time of the Board action; and

               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the consent of any Plan
participants.

     21. Notices. All notices or other communications by a participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     22. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

As a condition to the exercise of an option, the Company may require the person exercising such
option to represent and warrant at the time of any such exercise that the shares are being
purchased only for investment and without any present intention to sell or distribute such shares
if, in the

 

 

opinion of counsel for the Company, such a representation is required by any of the aforementioned
applicable provisions of law.

     23. Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board of Directors or its approval by the shareholders of the Company. It shall
continue in effect for a term of ten (10) years unless sooner terminated under Section 20 hereof.

     24. Automatic Transfer to Low Price Offering Period. To the extent permitted by any
applicable laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock
on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock
on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall
be automatically withdrawn from such Offering Period immediately after the exercise of their option
on such Exercise Date and automatically re-enrolled in the immediately following Offering Period as
of the first day thereof.

 

 

EXHIBIT A

THE MANAGEMENT NETWORK GROUP, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

                    
Original Application      Enrollment Date:
                                        

                    
Change in Payroll Deduction Rate

                    
Change of Beneficiary(ies)

     1.                                         hereby elects to participate in The Management Network Group, Inc.
1999 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to purchase
shares of the Company’s Common Stock in accordance with this Subscription Agreement and the
Employee Stock Purchase Plan.

     2. I hereby authorize payroll deductions from each paycheck in the amount of                    % of my
Compensation on each payday (from 1 to                     %) during the Offering Period in accordance with the
Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.)

     3. I understand that said payroll deductions shall be accumulated for the purchase of shares
of Common Stock at the applicable Purchase Price determined in accordance with the Employee Stock
Purchase Plan. I understand that if I do not withdraw from an Offering Period, any accumulated
payroll deductions will be used to automatically exercise my option.

     4. I have received a copy of the complete Employee Stock Purchase Plan. I understand that my
participation in the Employee Stock Purchase Plan is in all respects subject to the terms of the
Plan. I understand that my ability to exercise the option under this Subscription Agreement is
subject to shareholder approval of the Employee Stock Purchase Plan.

 

 

     5. Shares purchased for me under the Employee Stock Purchase Plan should be issued in the
name(s) of (Employee or Employee and Spouse only):.

     6. I understand that if I dispose of any shares received by me pursuant to the Plan within 2
years after the Enrollment Date (the first day of the Offering Period during which I purchased such
shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as
having received ordinary income at the time of such disposition in an amount equal to the excess of
the fair market value of the shares at the time such shares were purchased by me over the price
which I paid for the shares. I hereby agree to notify the Company in writing within 30 days
after the date of any disposition of my shares and I will make adequate provision for Federal,
state or other tax withholding obligations, if any, which arise upon the disposition of the Common
Stock. The Company may, but will not be obligated to, withhold from my compensation the amount
necessary to meet any applicable withholding obligation including any withholding necessary to make
available to the Company any tax deductions or benefits attributable to sale or early disposition
of Common Stock by me. If I dispose of such shares at any time after the expiration of the 2-year
and 1-year holding periods, I understand that I will be treated for federal income tax purposes as
having received income only at the time of such disposition, and that such income will be taxed as
ordinary income only to the extent of an amount equal to the lesser of (1) the excess of the fair
market value of the shares at the time of such disposition over the purchase price which I paid for
the shares, or (2) 15% of the fair market value of the shares on the first day of the Offering
Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital
gain.

 

 

     7. I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The
effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the
Employee Stock Purchase Plan.

     8. In the event of my death, I hereby designate the following as my beneficiary(ies) to
receive all payments and shares due me under the Employee Stock Purchase Plan:

	 	 	 	 	 	 	 	 	 
	NAME: (Please print)
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(First)
	 	(Middle)
	 	(Last)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	Relationship	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(Address 1)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	(Address 2)	 	 	 	 	 	 

	 	 	 	 	 
	Employee’s Social
	 	 	 	 
	Security Number:
	 	 	 	 
	Employee’s Address:
	 	 

	 	 
	 
	 	 

	 	 
	 
	 	 

	 	 
	 
	 	 

	 	 

(1) I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE
OFFERING PERIODS UNLESS TERMINATED BY ME.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 
	 	 
	 
	 	 	 	Signature of Employee
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 	 	 	Spouse’s Signature (If beneficiary other than spouse)

 

 

EXHIBIT B

The Management Network Group, Inc.

1999 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of The Management Network Group, Inc. 1999
Employee Stock Purchase Plan which began on                                         ,                      (the “Enrollment Date”) hereby
notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby
directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The undersigned understands
and agrees that his or her option for such Offering Period will be automatically terminated. The
undersigned understands further that no further payroll deductions will be made for the purchase of
shares in the current Offering Period and the undersigned shall be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription Agreement.

	 	 	 
	 
	 	Name and Address of Participant:
	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	Signature:
	 
	 	 	 
	 
	 	Date:exv10w1

Exhibit 10.1

EXECUTION VERSION

 

ASSET PURCHASE AGREEMENT

 

Between

WHITE ELECTRONIC DESIGNS CORPORATION

PANELVIEW, INCORPORATED,

VIA OPTRONICS GMBH

and

VIA OPTRONICS, LLC

Dated as of April 3, 2009

 

 

          ASSET PURCHASE AGREEMENT, dated as of April 3, 2009, between WHITE ELECTRONIC DESIGNS
CORPORATION, an Indiana corporation (“WEDC”), PANELVIEW, INCORPORATED, an Oregon
corporation (the “Seller”), VIA OPTRONICS GMBH, a company organized under the laws of
Germany, (the “Parent”) and VIA OPTRONICS, LLC an Oregon limited liability company and
wholly owned U.S. subsidiary of Parent (the “Purchaser”).

          WHEREAS, the Seller is engaged in the display systems business located in Hillsboro, Oregon
(the “Business”); and

          WHEREAS, the Seller wishes to sell to the Purchaser, and the Purchaser wishes to purchase from
the Seller, the Business, and in connection therewith the Purchaser is willing to assume from the
Seller all of the Assumed Liabilities (as defined hereafter), all upon the terms and subject to the
conditions set forth herein.

          NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants
hereinafter set forth, and intending to be legally bound, the Seller and the Purchaser hereby agree
as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01. Certain Defined Terms. For purposes of this Agreement, terms not
otherwise defined in this Agreement shall have the meaning ascribed to them as set forth in
Exhibit A hereto.

          SECTION 1.02. Interpretation and Rules of Construction. In this Agreement, except to
the extent otherwise provided or that the context otherwise requires:

     (i) when a reference is made in this Agreement to an Article, Section, Exhibit
or Schedule, such reference is to an Article or Section of, or an Exhibit or
Schedule to, this Agreement unless otherwise indicated;

     (ii) the table of contents and headings for this Agreement are for reference
purposes only and do not affect in any way the meaning or interpretation of this
Agreement;

     (iii) whenever the words “include,” “includes” or “including” are used in this
Agreement, they are deemed to be followed by the words “without limitation”;

     (iv) the words “hereof,” “herein” and “hereunder” and words of similar import,
when used in this Agreement, refer to this Agreement as a whole and not to any
particular provision of this Agreement;

     (v) all terms defined in this Agreement have the defined meanings when used in
any certificate or other document made or delivered pursuant hereto, unless
otherwise defined therein;

1

 

     (vi) the definitions contained in this Agreement are applicable to the singular
as well as the plural forms of such terms;

     (vii) references to a Person are also to its successors and permitted assigns;
and

     (viii) the use of “or” is not intended to be exclusive unless expressly
indicated otherwise.

ARTICLE II

PURCHASE AND SALE

          SECTION 2.01. Purchase and Sale of Assets. (a) Upon the terms and subject to the
conditions of this Agreement, at the Closing, the Seller shall sell, assign, transfer, convey and
deliver, or cause to be sold, assigned, transferred, conveyed and delivered, to the Purchaser, and
the Purchaser shall purchase from the Seller, all of the Seller’s right, title and interest in and
to the following assets (the “Purchased Assets”):

     (i) the machinery, equipment, computers, tools, tooling, furniture, fixtures and
leasehold improvement used exclusively in the operation of the Business set forth in
Section 2.01(a)(i) of the Disclosure Schedule;

     (ii) all customer lists, supplier lists, marketing material and source files therefor
solely related to the Business;

     (iii) all supplies, consumable materials and other similar assets on hand as of the
Closing, wherever located;

     (iv) the Inventories set forth in Section 2.01(a)(iv) of the Disclosure Schedule;

     (v) all prepaid expenses solely related to the Business;

     (vi) all rights and obligations with respect to the Leased Real Property listed on
Section 3.06 of the Disclosure Schedule;

     (vii) the books of account, general, financial, tax and personnel records, invoices,
shipping records, supplier lists, correspondence and other documents, records and files
and any rights thereto owned, solely associated with or solely employed by the Seller in
the conduct of the Business;

     (viii) the Receivables arising from sales on or following the Closing Date;

     (ix) the Transferred Intellectual Property, Transferred Software and the Transferred
IP Agreements (to the extent transferable);

2

 

     (x) the rights of the Seller under the Assigned Contracts, other than Transferred IP
Agreements, as set forth in Section 2.01(a)(x) of the Disclosure Schedule; and

     (xi) all municipal, state and federal franchises, permits, licenses, agreements,
waivers and authorizations held or used by the Seller solely in connection with the
Business, to the extent transferable.

          (b) Notwithstanding anything in Section 2.01(a) to the contrary, the Seller shall not sell,
convey, assign, transfer or deliver, nor cause to be sold, conveyed, assigned, transferred or
delivered, to the Purchaser, and the Purchaser shall not purchase, and the Purchased Assets shall
not include, the Seller’s right, title and interest in or to any assets of the Seller not expressly
included in the Purchased Assets (the “Excluded Assets”), including:

     (i) the Purchase Price Bank Account;

     (ii) all cash and cash equivalents, securities, and negotiable instruments of the
Seller on hand, in lock boxes, in financial institutions or elsewhere, including all cash
residing in any collateral cash account securing any obligation or contingent obligation
of the Seller or any Affiliate;

     (iii) any rights to Tax refunds, credits or similar benefits, including short-term
prepaid deferred Taxes, attributable to the Purchased Assets or Business and relating to
the taxable period ending on or prior to the date of the Closing or portion of the taxable
period which ends after the date of the Closing for which Seller paid taxes;

     (iv) the company seal, minute books, charter documents, stock or equity record books
and such other books and records as pertain to the organization, existence or
capitalization of the Seller, as well as any other records or materials relating to the
Seller generally and not involving or related to the Purchased Assets or the operations of
the Business;

     (v) all rights of the Seller under this Agreement and the Ancillary Agreements;

     (vi) Tax Returns of the Seller;

     (vii) the Receivables arising prior to the Closing Date and set forth in Section
2.01(b)(vii);

     (viii) all current and prior insurance policies of the Seller and all rights of any
nature with respect thereto, including all insurance recoveries thereunder and rights to
assert claims with respect to any such insurance recoveries;

          (x) software associated with the Microsoft Enterprise Agreement or other software on computers
of the Business that is not transferrable.

3

 

          SECTION 2.02. Assumption and Exclusion of Liabilities. (a) Assumed
Liabilities. Upon the terms and subject to the conditions set forth in this Agreement, the
Purchaser shall, by executing and delivering, at the Closing, the Bill of Sale, assume, and agree
to pay, perform and discharge when due, the following Liabilities of the Seller to the extent
relating to the Business or the Purchased Assets (the “Assumed Liabilities”):

     (i) all Liabilities arising on or following the Closing under the Assumed Contracts;

     (ii) subject to reimbursement by WEDC pursuant to Section 5.04(e), all Liabilities
for product warranty service claims relating to products of the Business sold prior to, on
or following the Closing and all Product Liabilities relating to products of the Business
sold on or following the Closing;

     (iii) all Liabilities in respect of any and all accounts payables accruing on or
following the Closing and such accrued vacation, sick leave, workers’ compensation claims
and insurance claims of the employees of the Business as listed in Exhibit D,
accruing on or following the Closing;

     (iv) all Environmental Liabilities solely to the extent arising from or relating to
products sold and business conducted by Purchaser on or following the Closing;

     (v) all Liabilities set forth in Section 2.02(a)(v) of the Disclosure Schedule.

          (b) Excluded Liabilities. The Seller shall retain, and shall be responsible for
paying, performing and discharging when due, and the Purchaser shall not assume or have any
responsibility for, any Liabilities not expressly set forth in Section 2.02 (a) above (the
“Excluded Liabilities”).

          SECTION 2.03. Purchase Price; Allocation of Purchase Price The purchase price for
the Purchased Assets shall be Two Million Three Hundred and Five Thousand Dollars ($2,305,000) (the
“Purchase Price”).

          (b) The sum of the Purchase Price and the Liabilities required for Tax purposes shall be
allocated among the Purchased Assets as reasonably proposed by WEDC directly following the Closing
(the “Allocation”). Any subsequent adjustments to the sum of the Purchase Price and the
Liabilities required for Tax purposes shall be reflected in the Allocation in a manner consistent
with Section 1060 of the Code and the Regulations thereunder. For all Tax purposes, the Purchaser
and the Seller agree that the transactions contemplated by this Agreement shall be reported in a
manner consistent with the terms of this Agreement, including the Allocation, and that neither of
them will take any position inconsistent therewith in any Tax Return, in any refund claim, in any
litigation, or otherwise. Each of the Seller and the Purchaser
agrees to cooperate with the other in preparing IRS Form 8594, and to furnish the other with a
copy of such form prepared in draft form within a reasonable period before its filing due date.

          SECTION 2.04. Closing. Subject to the terms and conditions of this Agreement, the
sale and purchase of the Purchased Assets and the assumption of the Assumed Liabilities
contemplated by this Agreement shall take place at a closing (the “Closing”) to be

4

 

held at
the offices of Snell & Wilmer LLP, One Arizona Center, Phoenix, AZ 85004 at 10:00 a.m. Arizona time
on the date hereof or at such other place or at such other time or on such other date as the Seller
and the Purchaser may mutually agree upon in writing.

          SECTION 2.05. Closing Deliveries by the Seller. At the Closing, the Seller shall
deliver or cause to be delivered to the Purchaser:

     (a) executed counterparts of each of the Agreement, the Bill of Sale, each Assignment
of Lease, the Assignment of Transferred Intellectual Property and such other instruments, in
form and substance satisfactory to the Purchaser, as may be reasonably requested by the
Purchaser to effect the transfer of the Purchased Assets to the Purchaser or evidence such
transfer on the public records, in each case duly executed by the Seller;

     (b) a receipt for the Purchase Price;

     (c) a true and complete copy, certified by the Secretary (or other authorized officer)
of the Seller, of the resolutions duly and validly adopted by the Board of Directors of the
Seller evidencing its authorization of the execution and delivery of this Agreement and the
Ancillary Agreements and the consummation of the transactions contemplated hereby and
thereby; and

     (d) a certificate of the Secretary (or other authorized officer) of the Seller
certifying the name(s) and signature(s) of the officer(s) of the Seller authorized to sign
this Agreement and the Ancillary Agreements and the other documents to be delivered
hereunder and thereunder; provided that this certificate may be delivered as part of the
certificate required under Section 2.05(c) hereof.

          SECTION 2.06. Closing Deliveries by the Purchaser. At the Closing, the Purchaser
shall deliver to the Seller:

     (a) the Purchase Price by wire transfer in immediately available funds to the Purchase
Price Bank Account;

     (b) executed counterparts of each of the Agreement, the Bill of Sale, Assignment of
Lease , the Assignment of Transferred Intellectual Property and such other instruments, in
form and substance satisfactory to the Seller, as may be requested by the Seller to effect
the assumption by the Purchaser of the Assumed Liabilities and to evidence such assumption
in the public records;

     (c) a true and complete copy, certified by the Secretary (or other authorized officer)
of Parent and the Purchaser, of the resolutions duly and validly adopted by the Board of
Directors (or other duly authorized body) of Parent and the Purchaser evidencing its
authorization of the execution and delivery of this Agreement and the Ancillary Agreements
to which it is a party and the consummation of the transactions contemplated hereby and
thereby; and

     (d) a certificate of the Secretary (or other authorized officer) of Parent and the
Purchaser
certifying the names and signatures of the officers of Parent and the Purchaser

5

 

authorized to sign this Agreement and the Ancillary Agreements and the other documents to be
delivered hereunder and thereunder.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

OF THE SELLER

          WEDC and the Seller hereby each represents and warrants to the Purchaser, as of the date
hereof or, if a representation or warranty is made as of a specified date, as of such date, as
follows:

          SECTION 3.01. Organization, Authority and Qualification of the Seller. The Seller is
a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all necessary corporate power and authority to enter into
this Agreement and the Ancillary Agreements, to carry out its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby. The Seller is duly licensed or
qualified to do business and is in good standing in each jurisdiction which the properties leased
by it or the operation of its business makes such licensing or qualification necessary, except to
the extent that the failure to be so licensed, qualified or in good standing would not (a)
adversely affect the ability of the Seller to carry out its obligations under, and to consummate
the transactions contemplated by, this Agreement and the Ancillary Agreements, or (b) otherwise
have a Material Adverse Effect. The execution and delivery of this Agreement and the Ancillary
Agreements by the Seller, the performance by the Seller of its obligations hereunder and thereunder
and the consummation by the Seller of the transactions contemplated hereby and thereby have been
duly authorized by all requisite action on the part of the Seller and its stockholder. This
Agreement has been, and upon their execution the Ancillary Agreements shall have been, duly
executed and delivered by the Seller, and (assuming due authorization, execution and delivery by
the Purchaser) this Agreement constitutes, and upon their execution the Ancillary Agreements shall
constitute, legal, valid and binding obligations of the Seller, enforceable against the Seller in
accordance with their respective terms.

          SECTION 3.02. No Conflict. Assuming that all consents, approvals, authorizations and
other actions described in Section 3.02 have been obtained, all filings and notifications listed in
Section 3.02 of the Disclosure
Schedule have been made and any applicable waiting period has expired or been terminated, and
except as may result from any facts or circumstances relating solely to the Purchaser, the
execution, delivery and performance of this Agreement and the Ancillary Agreements by the Seller do
not and will not (a) violate, conflict with or result in the breach of the certificate of
incorporation or by laws (or similar organizational documents) of the Seller, (b) conflict with or
violate any Law or Governmental Order applicable to the Seller, or (c) except as set forth in
Section 3.02(c) of the Disclosure Schedule, conflict with, result in any breach of, constitute a
default (or event which with the giving of notice or lapse of time, or both, would become a
default) under, require any consent under, or give to others any rights of termination,
acceleration or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other

6

 

instrument or arrangement to which the Seller is a
party, except, in the case of clauses (b) and (c), as would not (i) materially and adversely affect
the ability of the Seller to carry out its obligations under, and to consummate the transactions
contemplated by, this Agreement and the Ancillary Agreements or (ii) otherwise have a Material
Adverse Effect.

          SECTION 3.03. Governmental Consents and Approvals. The execution, delivery and
performance of this Agreement and the Ancillary Agreements by the Seller do not and will not
require any consent, approval, authorization or other order of, action by, filing with or
notification to, any Governmental Authority, except (a) as described in Section 3.03 of the
Disclosure Schedule, (b) where failure to obtain such consent, approval, authorization or action,
or to make such filing or notification, would not prevent or materially delay the consummation by
the Seller or the transactions contemplated by this Agreement and the Ancillary Agreements and
would not have a Material Adverse Effect, or (c) as may be necessary as a result of any facts or
circumstances relating solely to the Purchaser or any of its Affiliates.

          SECTION 3.04. Compliance with Laws. Except as set forth in Section 3.04 of the
Disclosure Schedule and as would not (a) adversely affect the ability of the Seller to carry out
its obligations under, and to consummate the transactions contemplated by, this Agreement and the
Ancillary Agreements or (b) otherwise have a Material Adverse Effect, the Seller has conducted and
continues to conduct the Business in accordance with all Laws and Governmental Orders applicable to
the Business and the Seller and the Seller is not in violation of any such Law or Governmental
Order.

          SECTION 3.05. Intellectual Property. Section 3.05 of the Disclosure Schedule sets
forth a true and complete list of all patents and patent applications, registered trademarks and
trademark applications, and registered copyrights and copyright applications included in the
Transferred Intellectual Property. To the knowledge of the Seller and WEDC, (a) no person is
engaging in any activity that infringes any Transferred Intellectual Property, and (b) no claim has
been asserted to the Seller and/or WEDC that the use of any Transferred Intellectual Property
infringes the patents, trademarks, or copyrights of any third party. Except as would not have a
Material Adverse Effect, with respect
to each item of Transferred Intellectual Property, the Seller is the owner of the entire
right, title and interest in and to such Transferred Intellectual Property.

          SECTION 3.06. Real Property.  Section 3.06 of the Disclosure Schedule
lists the street address of each parcel of Leased Real Property and the identity of the lessor,
lessee and current occupant (if different from lessee) of each such parcel of Leased Real Property.
Except as would not have a Material Adverse Effect or except as described in Section 3.07 of the
Disclosure Schedule, (i) the Seller has delivered to the Purchaser, true and complete copies of the
leases in effect at the date hereof relating to the Leased Real Property and (ii) there has not
been any sublease or assignment entered into by the Seller in respect of the leases relating to the
Leased Real Property.

          SECTION 3.07. Purchased Assets. As of the Closing, the Seller owns, leases or has
the legal right to use all the Purchased Assets free and clear of all Encumbrances, except as set
forth in the Disclosure Schedule.

7

 

          SECTION 3.08. Taxes. Except as set forth in Section 3.08 of the Disclosure Schedule,
and except for matters that would not have a Material Adverse Effect, to the Seller’s knowledge,
(a) all Tax Returns required to have been filed by or with respect to the Purchased Assets and the
Business have been timely filed (taking into account any extension of time to file granted or
obtained); (b) all Taxes shown to be payable on such Tax Returns have been paid or will be timely
paid; (c) no deficiency for any material amount of Tax has been asserted or assessed by a
Governmental Authority in writing against the Seller that has not been satisfied by payment,
settled or withdrawn.

          SECTION 3.09. Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee
or commission in connection with the transactions contemplated by this Agreement or the Ancillary
Agreements based upon arrangements made by or on behalf of the Seller.

          SECTION 3.10. Environmental Claims. To the knowledge of the Seller and WEDC, there are no claims or proceedings pending or
threatened in writing that would give rise to any Environmental Liability.

          SECTION 3.11. Information Provided. All information and documents provided to the Purchaser, the Parent, and/or the Purchaser’s
and/or Parent’s counsel in response to the Parent’s counsel’s due diligence request and otherwise
is, to the best of the Seller’s and WEDC’s knowledge, accurate.

          SECTION 3.12. Disclaimer of the Seller.
(A) THE BUSINESS, INCLUDING THE PURCHASED ASSETS, IS BEING SOLD ON AN “AS IS”, “WHERE IS”
BASIS AS OF THE CLOSING AND IN ITS CONDITION AS OF CLOSING WITH “ALL FAULTS” AND, EXCEPT AS SET
FORTH IN THIS ARTICLE III, NONE OF THE SELLER, ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKE OR HAVE MADE ANY OTHER REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF THE BUSINESS OR ANY OF THE PURCHASED ASSETS,
INCLUDING WITH RESPECT TO (I) MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, (II) THE
OPERATION OF THE BUSINESS BY THE PURCHASER AFTER THE CLOSING IN ANY MANNER OTHER THAN AS USED AND
OPERATED BY THE SELLER, OR (III) THE PROBABLE SUCCESS OR PROFITABILITY OF THE BUSINESS AFTER THE
CLOSING AND (B) EXCEPT AS IT MAY APPLY TO SELLER AND WEDC EXPLICITLY AND DIRECTLY DUE TO BREACHES
OF REPRESENTATIONS THEY HAVE MADE IN THIS ARTICLE III, NONE OF THE SELLER, WEDC OR THEIR
AFFILIATES, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES WILL HAVE
OR BE SUBJECT TO ANY LIABILITY OR INDEMNIFICATION OBLIGATION TO THE PURCHASER OR TO ANY OTHER
PERSON RESULTING FROM THE DISTRIBUTION TO THE PURCHASER, ITS AFFILIATES OR REPRESENTATIVES OF, OR
THE PURCHASER’S USE OF, ANY INFORMATION RELATING TO THE BUSINESS, AND ANY INFORMATION, DOCUMENTS OR
MATERIAL MADE

8

 

AVAILABLE TO THE PURCHASER, WHETHER ORALLY OR IN WRITING, IN CERTAIN “DATA ROOMS,”
MANAGEMENT PRESENTATIONS, FUNCTIONAL “BREAK-OUT” DISCUSSIONS, RESPONSES TO QUESTIONS SUBMITTED ON
BEHALF OF THE PURCHASER OR IN ANY OTHER FORM IN EXPECTATION OF THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. ANY SUCH OTHER REPRESENTATION OR WARRANTY IS HEREBY EXPRESSLY DISCLAIMED.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

OF THE PURCHASER

Parent and the Purchaser hereby each represents and warrants to the Seller as follows:

          SECTION 4.01. Organization and Authority of the Purchaser. The Purchaser is a
limited liability company duly organized, validly existing and in good standing under the laws of
Oregon and has all necessary corporate power and authority to enter into this Agreement and the
Ancillary Agreements to which it is a party, to carry out its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby. The Purchaser is duly licensed
or qualified to do business and is in good standing in each jurisdiction which the properties owned
or leased by it or the operation of its business makes such licensing or qualification necessary,
except to the extent that the failure to be so licensed, qualified or in good standing would not
adversely affect the ability of Purchaser to carry out its obligations under, and to consummate the
transactions contemplated by, this Agreement and the Ancillary Agreements. The execution and
delivery by
the Purchaser of this Agreement and the Ancillary Agreements to which it is a party, the
performance by the Purchaser of its obligations hereunder and thereunder and the consummation by
the Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all
requisite corporate action on the part of the Purchaser. This Agreement has been, and upon their
execution the Ancillary Agreements to which the Purchaser is a party shall have been, duly executed
and delivered by the Purchaser, and (assuming due authorization, execution and delivery by the
Seller) this Agreement constitutes, and upon their execution the Ancillary Agreements to which the
Purchaser is a party shall constitute, legal, valid and binding obligations of the Purchaser,
enforceable against the Purchaser in accordance with their respective terms.

          SECTION 4.02. No Conflict. Assuming the making and obtaining of all filings,
notifications, consents, approvals, authorizations and other actions referred to in Section 4.03,
the execution, delivery and performance by the Purchaser of this Agreement and the Ancillary
Agreements to which it is a party do not and will not (a) violate, conflict with or result in the
breach of any provision of the certificate of incorporation or by laws (or similar organizational
documents) of the Purchaser, (b) conflict with or violate any Law or Governmental Order applicable
to the Purchaser or its respective assets, properties or businesses or (c) conflict with, result in
any breach of, constitute a default (or event which with the giving of notice or lapse of time, or
both, would become a default) under, require any consent under, or give to others any rights of
termination, amendment, acceleration, suspension, revocation or cancellation of, any note, bond,
mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other
instrument or arrangement to which the Purchaser is a party,

9

 

except, in the case of clauses (b) and
(c), as would not materially and adversely affect the ability of the Purchaser to carry out its
obligations under, and to consummate the transactions contemplated by, this Agreement and the
Ancillary Agreements.

          SECTION 4.03. Governmental Consents and Approvals. The execution, delivery and
performance by the Purchaser of this Agreement and the Ancillary Agreements to which the Purchaser
is a party do not and will not require any consent, approval, authorization or other order of,
action by, filing with, or notification to, any Governmental Authority, except where failure to
obtain such consent, approval, authorization or action, or to make such filing or notification,
would not prevent or materially delay the consummation by the Purchaser of the transactions
contemplated by this Agreement and the Ancillary Agreements.

          SECTION 4.04. Financing. The Purchaser has sufficient immediately available funds to
pay, in cash, the Purchase Price and all other amounts payable pursuant to this Agreement and the
Ancillary Agreements or otherwise necessary to consummate all the transactions contemplated hereby
and thereby.

          SECTION 4.05. Brokers
        . No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee
or commission in connection with the transactions contemplated by this Agreement or Ancillary
Agreements based upon arrangements made by or on behalf of Parent or the Purchaser.

          SECTION 4.06. Independent Investigation; Seller’s Representations. Parent and the
Purchaser have each conducted its own independent investigation, review and analysis of the
business, operations, assets, liabilities, results of operations, financial condition, software,
technology and prospects of the Business, which investigation, review and analysis was done by
Parent, the Purchaser and its Affiliates and representatives. Parent and Purchaser acknowledges
that it and its representatives have been provided adequate access to the personnel, properties,
premises and records of the Business for such purpose. In entering into this Agreement, Parent and
the Purchaser acknowledges that it has relied solely upon the aforementioned investigation, review
and analysis and not on any factual representations or opinions of the Seller or its
representatives (except the specific representations and warranties of the Seller set forth in
Article III and the schedules thereto). Parent and the Purchaser hereby acknowledges and agrees
that (a) other than the representations and warranties made in Article III, none of the Seller, its
Affiliates, or any of their respective officers, directors, employees or representatives make or
have made any representation or warranty, express or implied, at law or in equity, with respect to
the Purchased Assets or the Business, including any representations or warranties as to (i)
merchantability or fitness for any particular use or purpose, (ii) the operation of the Business by
the Purchaser after the Closing in any manner other than as used and operated by the Seller, or
(iii) the probable success or profitability of the Business after the Closing and (b) except as it
may apply to Parent and Purchaser explicitly and directly due to breaches of representatives set
forth in this Article IV, none of Parent, Purchaser or their Affiliates, or any of their respective
officers, directors, employees or representatives will have or be subject to any liability or
indemnification obligation to Parent or the Purchaser or to any other Person resulting from the
distribution to Parent or the Purchaser or their Affiliates or representatives of, or Parent’s or
the Purchaser’s use of, any information relating to the Business, including any information,
documents or material made available to Parent or the Purchaser, whether orally or in writing, in

10

 

certain “data rooms,” management presentations, functional “break-out” discussions, responses to
questions submitted on behalf of Parent or the Purchaser or in any other form in expectation of the
transactions contemplated by this Agreement.

ARTICLE V

ADDITIONAL AGREEMENTS

          SECTION 5.01. Access to Information. (a) From the date hereof until the Closing,
upon reasonable notice, the Seller shall (i) afford the Purchaser and its authorized
representatives reasonable access to the offices, properties and books and records of the Seller
(to the extent relating solely to the Business) and (ii) furnish to the officers, employees, and
authorized agents and representatives of the Purchaser such additional financial and operating data
and other information regarding the Business (or copies thereof) as the Purchaser may from time to
time reasonably request; provided, however,
that any such access or furnishing of information shall be conducted at the Purchaser’s
expense, during normal business hours, under the supervision of the Seller’s personnel and in such
a manner as not to interfere with the normal operations of the Business. Notwithstanding anything
to the contrary in this Agreement, the Seller shall not be required to disclose any information to
the Purchaser if such disclosure would, in the Seller’s sole discretion, (i) cause significant
competitive harm to the Business if the transactions contemplated hereby are not consummated, (ii)
jeopardize any attorney-client or other legal privilege or (iii) contravene any applicable Laws,
fiduciary duty or binding agreement entered into prior to the date hereof, including, but not
limited to restrictions placed on WEDC and the Seller pursuant to ITAR compliance requirements.

          (b) In order to facilitate the resolution of any claims made against or incurred by the Seller
relating to the Business, for a period of seven years after the Closing, the Purchaser shall (i)
retain the books and records relating to the Business relating to periods prior to the Closing, and
(ii) upon reasonable notice, afford the officers, employees, agents and representatives of the
Seller reasonable access (including the right to make, at the Seller’s expense, photocopies),
during normal business hours, to such books and records; provided, however, that
the Purchaser shall notify Seller at least twenty (20) Business Days in advance of destroying any
such books and records prior to the seventh anniversary of the Closing in order to provide the
Seller the opportunity to access such books and records in accordance with this Section 5.01(b).

          (c) In order to facilitate the resolution of any claims made against or incurred by the
Purchaser relating to the Business, for a period of seven years after the Closing or, if shorter,
the applicable period specified in the Seller’s document retention policy, the Seller shall (i)
retain the books and records relating to the Business relating to periods prior to the Closing
which shall not otherwise have been delivered to the Purchaser, and (ii) upon reasonable notice,
afford the officers, employees, agents and representatives of the Purchaser reasonable access
(including the right to make, at the Purchaser’s expense, photocopies), during normal business
hours, to such books and records; provided, however, that the Seller shall notify
the Purchaser at least twenty (20) Business Days in advance of destroying any such books and
records in order to provide the Purchaser the opportunity to access such books and records in
accordance with this Section 5.01(c).

          SECTION 5.02. [INTENTIONALLY LEFT BLANK].

11

 

          SECTION 5.03. Post-Closing Software, Telecommunications and Website Support. (a)
Following the Closing, WEDC and the Seller shall provide to the Business, or cause to be provided,
three (3) months of continued JD Edwards Accounting/Manufacturing software access and support. The
Purchaser shall be solely responsible for all costs of telecommunications during such support
period and the Purchaser agrees to transition off of voice and data services no later than the
expiration of such three (3) month period. Upon the earlier of (i) the conclusion of such three
(3) month period or (ii) the Purchaser’s determination it no longer requires the use of the JD
Edwards Accounting/Manufacturing software access and support, the Purchaser shall provide WEDC
reasonable access to its premise, facility, computers and other equipment to facilitate the
immediate shutdown and removal of the telecommunications equipment associated with the software
access and support associated with this Section 5.03.

          (b) The Seller and WEDC shall include on its website a reference to the sale of the Business
to the Purchaser and a link to the Purchaser’s website for a period of six (6) months. The Seller
and WEDC shall use commercially reasonable efforts to forward any requests related to the Business
received through WEDC’s website to the Purchaser.

          (c) The Purchaser agrees that for consideration provided by the Seller in concert with
entering into this Agreement to assist the Purchaser in acquiring replacement software, the
Purchaser hereby covenants and agrees to remove any software provided to Seller or WEDC under that
certain Microsoft Enterprise Agreement from computers acquired under this Agreement and Purchaser
further covenants and agrees that it will provide Purchaser specific access to such computers
within six (6) months of Closing to ensure compliance with this provision.

          (d) Additional terms and conditions related to this post-closing IT support is attached
hereto at Exhibit E.

          SECTION 5.04. Post-Closing Export Infrastructure Support. 

          (a) For a period of not more than three (3) months from the date of Closing, WEDC and the
Seller agree to operate as an export broker for the Purchaser, at no cost to the Purchaser except
as provided for in subparts (d)(i), (d)(ii), and (d)(iii) of this Section 5.04, whereby WEDC and
the Seller will export Defense Articles and Technical Data subject to the ITAR to customers of the
Business under WEDC’s exporter/manufacturer registration with the U.S. Department of State’s
Directorate of Defense Trade Controls (“DDTC”) and, where applicable, under export license or other
export authorizations issued by DDTC to WEDC and the Seller related to the Business.

          (b) WEDC and the Seller will act as an export broker for the Purchaser for the export of
Defense Articles and Technical Data pertaining to the Business until the earlier of three (3)
months from the date of Closing or the date on which the Purchaser has become registered as a
manufacturer/exporter with DDTC AND has obtained export licenses and other export authorizations
from DDTC to replace the existing licenses and export authorizations possessed by WEDC and the
Seller for the benefit of the Business. In the event that the Purchaser, despite all due efforts of
the Purchaser, has not obtained within three (3) months sufficient licensing to

12

 

obviate the need for WEDC to act as an export broker on its behalf pursuant to this Section
5.04, WEDC may, in its reasonable discretion, extend the period by which it will act as an export
broker, with VIA bearing all costs associated therewith.

          (c) In order for the Purchaser to use the export brokering service offered by WEDC and the
Seller to the Purchaser and contemplated herein, the Purchaser shall notify both officers
constituting the Interim Office of the President of WEDC, Roger A. Derse or Dan V. Tarantine, in
writing each time the Purchaser desires to use WEDC’s and the Seller’s export brokering service,
providing sufficient detail for WEDC and the Seller to determine if the proposed export
transactions are covered by existing export authorizations from DDTC. Each transaction in which
WEDC and the Seller will act as an export broker for the Purchaser needs to be approved in writing
by either Mr. Derse or Mr. Tarantine, which approval shall not be unreasonably withheld, prior to
any exports being made under WEDC’s and the Seller’s DDTC registration export on behalf of the
Purchaser.

          (d) It is expressly understood and accepted by the Purchaser that:

     (i) the Purchaser will pay all costs associated with the shipment and insurance
coverage on the conveyance of all Defense Articles and Technical Data exported by WEDC and
the Seller on behalf of the Purchaser pursuant to this Section 5.04;

     (ii) the Purchaser shall indemnify WEDC and the Seller and hold WEDC and the Seller
harmless for all liability incurred by the Seller related to this Section 5.04, including
but not limited to the unauthorized export, alleged or actual, of Defense Articles or
Technical Data by WEDC and the Seller on behalf of the Purchaser, unless WEDC and the
Seller should have reasonably known that the given export was not authorized by DDTC;

     (iii) WEDC and the Seller are not obligated after the date of Closing to prepare or
file any new license applications or other requests for export authorization for the
benefit of the Business; however, WEDC and the Seller shall make commercially reasonable
efforts to provide assistance reasonably requested by Purchaser for license applications.
WEDC and the Seller may, at their discretion, file new license applications or other
requests for export authorization with DDTC for the benefit of the Purchaser after the
date of Closing; however, the Purchaser understands and accepts that it will be
responsible for all costs (including outside advisors) of WEDC and the Seller associated
with the preparation, filing, tracking, and review of any new license applications or
other requests for export authorization after Closing, as well as the costs associated
with the review of DDTC-issued licenses or other export authorizations by WEDC and the
Seller;

     (iv) the Purchaser will apply for registration as a manufacturer/exporter under the
ITAR with DDTC within five (5) business days of the date of Closing and will provide WEDC
with either a copy of the registration documents filed with DDTC or another document
certifying the aforementioned filing as soon after the filing with DDTC as is practicable.

13

 

     (v) As soon as practicable after DDTC approves the registration of the Purchaser as an
manufacturer/exporter under the ITAR, the Purchaser will apply for and obtain licenses and
other export authorizations to replace the licenses and other export authorizations from
DDTC then held by WEDC and the Seller for the benefit of the Business. The Purchaser will
use best efforts to timely obtain all export authorizations from DDTC necessary to release
WEDC and the Seller of the obligation contained herein to provide an export brokering
service for the Business.

     (vi) The Purchaser will provide written monthly updates to WEDC, within the first five
(5) business day of each calendar month, regarding the status of the Purchaser’s efforts to
obtain registration as a manufacturer/exporter under the ITAR and licenses and other export
authorizations to replace the licenses and other export authorizations from DDTC held by
WEDC and the Seller for the benefit of the Business. The amount of detail required in these
monthly updates are fact and circumstances specific, and the Purchaser agrees to provide
updates that contain all the material facts which are required to present WEDC and the
Seller with an accurate understanding of where things stand.

          (e) Warranty Claim Processing. The Seller is responsible for costs associated with warranty
claims pertaining to Business products shipped prior to Closing (“Pre-Closing Warranty
Claims”). The Purchaser will process all such returns exclusively under the terms of
conditions of sale existing at the time of sale under WEDC’s warranty, which limits responsibility
to repair or replacement only; provided, however, if the customer disputes which warranty applies,
the Purchaser shall notify WEDC and the Purchaser and WEDC shall use good faith efforts to resolve
this dispute and determine which warranty applies. Should any Pre-Closing Warranty Claims be
received in excess of $10,000 (cost or replacement value of parts shipped) or 50 parts, the
Purchaser will notify and involve WEDC in the discussion and/or settlement of each such potential
claim and in the event that the Purchaser fails to comply with this requirement, the Purchaser
shall be solely responsible for the payment of such Warranty Claims that WEDC reasonably determines
is in excess of the proper amount to be paid. The Purchaser will submit to WEDC, on a monthly
basis, costs incurred related to Pre-Closing Warranty Claims for reimbursement or payment.
Subsequent to Closing, but prior to the submission for reimbursement or payment by WEDC of any
Pre-Closing Warranty Claims, WEDC and the Purchaser shall meet in good faith to finalize procedures
and parameters to be used for Pre-Closing Warranty Claims and the reimbursement or payment thereof,
including the handling of such Warranty Claims.

          (f) Accounts Payable. WEDC and the Purchaser shall use commercially reasonable efforts to
ensure that on the receipt of any billing for goods and service incorrectly directed to it will;
(a) immediately advise the vendor that such billing was made to the incorrect party and (b) send
the billing as soon as reasonably practicable to the other party as appropriate and notify them in
writing of the error.

          (g) Accounts Receivable Cash Collection Processing. It is understood between the parties that
the Purchaser may receive payments on behalf of WEDC or the Seller related to Receivables
outstanding as of Closing. The Purchaser will use commercially reasonable efforts to ensure that,
on the 1st and 15th of each month, any funds incorrectly directed to the
Purchaser as payment of Receivables outstanding as of Closing will be wired to WEDC using the same
wiring instructions used for the Purchase Price unless otherwise instructed in writing by WEDC. To
the

14

 

extent WEDC receives payments for Business products sold after Closing, WEDC will use
commercially reasonable efforts to ensure that, on the 1st and 15th of each
month, any funds incorrectly directed to it will be wired to the Purchaser. WEDC also continues to
have the right to contact the customers of the Business for which a remaining Receivable balance is
owed to WEDC.

          (h) Graymor Lease. The parties hereto agree that any and all obligations related to the
Leased Real Property following the Closing, including rental payments, are solely the Purchaser’s
obligations. The parties also agree the Purchase Price was reduced to reflect the remaining rental
payments owned under the lease for the property located at 3302 NW 211th Terrace, Hillsboro,
Oregon, Washington County with New Tower Trust Company as lessor (the “Graymor Lease”).
Notwithstanding the foregoing, in order to facilitate a timely Closing and to secure the lessor’s
consent to assignment of the Graymor Lease, at Closing WEDC shall wire the remaining Rent (as
defined in the Graymor Lease) due to lessor, which amount is $38,764.25, to such lessor. Following
the Closing, the Purchaser covenants and agrees to make the remaining rental payments to WEDC
consistent with the Rent schedule under the Graymor Lease until WEDC has been fully reimbursed for
the payment made pursuant to this provision at Closing.

          SECTION 5.05. Further Action. The parties hereto shall use all reasonable efforts to
take, or cause to be taken, all appropriate action, to do or cause to be done all things necessary,
proper or advisable under applicable Law, and to execute and deliver such documents and other
papers, as may be required to carry out the provisions of this Agreement and consummate and make
effective the transactions contemplated by this Agreement.

          SECTION 5.06. Refunds or rebates of Taxes. (a) Upon the request of WEDC or the
Seller, or its successor and provided, that WEDC and Seller provide all support reasonably
requested by the Purchaser, the Purchaser shall promptly file for any claims of refund or rebates
for any Taxes paid with respect to the Purchased Assets or the Business with respect to the tax
period (or portion thereof) ending on or before the Closing or any taxable period that includes the
day before the Closing and ends after the date of the Closing. Subject to Section 5.06(b), any
refunds or rebates of Taxes received by the Purchaser for Taxes paid with respect to such tax
periods shall be promptly paid to the Seller or its successor.

          (b) Refunds or rebates relating to Taxes with respect to a taxable period that includes the
day before the Closing and ends after the date of the Closing shall be prorated in accordance with
a method mutually agreed between the Seller/WEDC and the Purchaser.

ARTICLE VI

EMPLOYEE MATTERS

          SECTION 6.01. Offer of Employment. As of the Closing, the Purchaser shall offer
employment to each of the then-current employees of the Seller listed on Exhibit D. It is
understood that for purposes of compliance with all applicable laws, including but not limited to
the Worker Adjustment and Retraining Notification Act, and its representations and warranties
herein regarding the same, the Seller and WEDC are relying on the Purchaser’s obligations in this
Section 6.01.

15

 

ARTICLE VII

TAX MATTERS

          SECTION 7.01. Resale Certificates. The Purchaser is properly licensed for
transaction privilege tax purposes with an office at the location of the Business and the
Purchaser represents that it is purchasing the Inventories for resale in the ordinary course of
its business. On or before Closing, the Purchaser shall provide to WEDC and the Seller a properly
completed resale certificate covering the Inventories.

          SECTION 7.02. Revenue Procedure 2004-53

          The Purchaser and the Seller agree to utilize, or cause their respective Affiliates to
utilize, the alternate procedure set forth in Revenue Procedure 2004-53 with respect to wage
reporting.

          SECTION 7.03. Conveyance Taxes. Notwithstanding any other provision in this Agreement,
the Purchaser shall be liable for, shall hold WEDC and the Seller and their Affiliates harmless
against, and agrees to pay any and all Conveyance Taxes that may be imposed upon, or payable or
collectible or incurred in connection with this Agreement and the transactions contemplated hereby.
For clarification purposes, this provision does not refer to federal income taxes imposed upon the
Seller (or WEDC) as a result of the sale of the Purchased Assets. The Purchaser and the Seller
agree to cooperate in the execution and delivery of all instruments and certificates necessary to
enable the Purchaser to comply with any pre-Closing filing requirements.

ARTICLE VIII

CONDITIONS TO CLOSING

          SECTION 8.01. Conditions to Obligations of the Seller. The obligations of the Seller
to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment
or written waiver, at or prior to the Closing, of each of the following conditions:

     (a) Representations, Warranties and Covenants. (i) The representations and
warranties of the Purchaser contained in this Agreement (A) that are not qualified as to
“materiality” shall be true and correct in all material respects as of the Closing and (B)
that are qualified as to “materiality” shall be true and correct as of the Closing, except
to the extent such representations and warranties are made as of another date, in which case
such representations and warranties shall be true and correct in all material respects or
true and correct, as the case may be, as of such other date, and (ii) the covenants and
agreements contained in this Agreement to be complied with by the Purchaser on or before the
Closing shall have been complied with in all material respects;

     (b) No Order. No Governmental Authority shall have enacted, issued,
promulgated, enforced or entered any Law or Governmental Order (whether temporary,
preliminary or permanent) that has the effect of making the transactions contemplated by

16

 

this Agreement or the Ancillary Agreements illegal or otherwise restraining or
prohibiting the consummation of such transactions; and

     (c) Third Party Consents. The Purchaser and the Seller shall have received the
third party consents and estoppel certificates set forth in Section 8.01(c) of the
Disclosure Schedule.

          SECTION 8.02. Conditions to Obligations of the Purchaser. The obligations of the
Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the
fulfillment or written waiver, at or prior to the Closing, of each of the following conditions:

     (a) Representations, Warranties and Covenants. (i) The representations and
warranties of the Seller contained in this Agreement (A) that are not qualified as to
“materiality” or “Material Adverse Effect” shall be true and correct in all material
respects as of the Closing and (B) that are qualified as to “materiality” or “Material
Adverse Effect” shall be true and correct as of the Closing, other than such representations
and warranties that are made as of another date, in which case such representations and
warranties shall be true and correct in all material respects or true and correct, as the
case may be, as of such other date, and (ii) the covenants and agreements contained in this
Agreement to be complied with by the Seller at or before the Closing shall have been
complied with in all material respects;

     (b) No Order. No Governmental Authority shall have enacted, issued,
promulgated, enforced or entered any Law or Governmental Order (whether temporary,
preliminary or permanent) that has the effect of making the transactions contemplated by
this Agreement or the Ancillary Agreements illegal or otherwise restraining or prohibiting
the consummation of such transactions; and

     (c) Third Party Consents. The Purchaser and the Seller shall have received the
third party consents and estoppel certificates set forth in Section 8.02(c) of the
Disclosure Schedule.

ARTICLE IX

TERMINATION

          SECTION 9.01. Termination. This Agreement may be terminated at any time prior to the
Closing:

     (a) by either the Seller or the Purchaser if the Closing shall not have occurred by
April 17, 2009; provided, however, that the right to terminate this
Agreement under this Section 9.01(a) shall not be available to any party whose failure to
fulfill any obligation under this Agreement shall have been the cause of, or shall have
resulted in, the failure of the Closing to occur on or prior to such date;

     (b) by either the Purchaser or the Seller in the event that any Governmental Order
restraining, enjoining or otherwise prohibiting the transactions contemplated by this
Agreement shall have become final and nonappealable;

17

 

     (c) by the Seller if the Purchaser shall have breached any of its representations,
warranties, covenants or agreements contained in this Agreement which would give rise to the
failure of a condition set forth in Article VIII, which breach cannot be or has not been
cured within 30 days after the giving of written notice by the Seller to the Purchaser
specifying such breach;

     (d) by the Purchaser if the Seller shall have breached any of its representations,
warranties, covenants or agreements contained in this Agreement which would give rise to the
failure of a condition set forth in Article VIII, which breach cannot be or has not been
cured within 30 days after the giving of written notice by the Purchaser to the Seller
specifying such breach; or

     (e) by the mutual written consent of the Seller and the Purchaser.

          SECTION 9.02. Effect of Termination. In the event of termination of this Agreement
as provided in Section 9.01, this Agreement shall forthwith become void and there shall be no
liability on the part of either party hereto except for such obligations which expressly survive
this Agreement pursuant to the express terms hereof. Nothing herein shall relieve either party
from liability for any breach of this Agreement occurring prior to such termination.
Notwithstanding the foregoing, in the event of termination by the Purchaser or Parent pursuant to
(a), (b) or (c) of Section 9.01 above, the Purchaser shall pay to Seller a break-up fee in an
amount equal to one hundred thousand dollars ($100,000).

ARTICLE X

GENERAL PROVISIONS

          SECTION 10.01. Non-Survival of Representations and Warranties. The representations
and warranties in this Agreement shall terminate at the Closing or upon the termination of this
Agreement pursuant to Section 9.01.

          SECTION 10.02. Expenses. Except as otherwise specified in this Agreement, all costs
and expenses, including fees and disbursements of counsel, financial advisors and accountants,
incurred in connection with this Agreement and the transactions contemplated by this Agreement
shall be borne by the party incurring such costs and expenses, whether or not the Closing shall
have occurred.

          SECTION 10.03. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given or made (and shall be deemed to
have been duly given or made upon receipt) by delivery in person, by an internationally recognized
overnight courier service, by facsimile, by e-mail or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties hereto at the following addresses (or
at such other address for a party as shall be specified in a notice given in accordance with this
Section 10.03):

18

 

	 	(a)	 	if to WEDC and/or the Seller (unless other provided by Section 5.05):

White Electronic Designs Corporation

3601 East University Drive

Phoenix, Arizona 85034

Attention: Roger A. Derse

with a copy to:

Snell & Wilmer LLP

One Arizona Center

Phoenix, Arizona 85004

Facsimile: (602)-382-6070

Attention: Franc Del Fosse

	 	(b)	 	if to the Purchaser:

Via Optronics, LLC

21333 NW Jacobson Road

Hillsboro, OR 97124

with a copy to:

VIA optronics GmbH

Lettenfeldstr. 15

90592 Schwarzenbruck, Germany

Attention: Juergen Eichner

with a copy to:

WEITNAUER

Ohmstr. 22

80802 Munich

Facsimile: 0049/89/383995-99

Attention: Dr. Tobias Kraetzschmar

          SECTION 10.04. Public Announcements. Neither party to this Agreement shall make, or
cause to be made, any press release or public announcement in respect of this Agreement or the
transactions contemplated by this Agreement or otherwise communicate with any news media without
the prior written consent of the other party unless otherwise required by Law or applicable stock
exchange regulation, and the parties to this Agreement shall cooperate as to the timing and
contents of any such press release, public announcement or communication.

          SECTION 10.05. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any Law or public policy, all

19

 

other terms and
provisions of this Agreement shall nevertheless remain in full force and effect for so long as the
economic or legal substance of the transactions contemplated by this Agreement is not affected in
any manner materially adverse to either party hereto. Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties
as closely as possible in an acceptable manner in order that the transactions contemplated by this
Agreement are consummated as originally contemplated to the greatest extent possible.

          SECTION 10.06. Entire Agreement. This Agreement, the Ancillary Agreements and the
Confidentiality Agreement constitute the entire agreement of the parties hereto with respect to the
subject matter hereof and thereof and supersede all prior agreements and undertakings, both written
and oral, between the Seller and the Purchaser with respect to the subject matter hereof and
thereof.

          SECTION 10.07. Assignment. This Agreement may not be assigned by operation of law or
otherwise without the express written consent of the Seller and the Purchaser (which consent may be
granted or withheld in the sole discretion of the Seller or the Purchaser), as the case may be.

          SECTION 10.08. Amendment. This Agreement may not be amended or modified except
(a) by an instrument in writing signed by, or on behalf of, the Seller and the Purchaser or (b) by
a waiver in accordance with Section 11.08.

          SECTION 10.09. Waiver. Either party to this Agreement may (a) extend the time for
the performance of any of the obligations or other acts of the other party, (b) waive any
inaccuracies in the
representations and warranties of the other party contained herein or in any document
delivered by the other party pursuant hereto or (c) waive compliance with any of the agreements of
the other party or conditions to such party’s obligations contained herein. Any such extension or
waiver shall be valid only if set forth in an instrument in writing signed by the party to be bound
thereby. Any waiver of any term or condition shall not be construed as a waiver of any subsequent
breach or a subsequent waiver of the same term or condition, or a waiver of any other term or
condition of this Agreement. The failure of either party hereto to assert any of its rights
hereunder shall not constitute a waiver of any of such rights.

          SECTION 10.10. No Third Party Beneficiaries. This Agreement shall be binding upon
and inure solely to the benefit of the parties hereto and their respective successors and permitted
assigns and nothing herein, express or implied, is intended to or shall confer upon any other
Person any legal or equitable right, benefit or remedy of any nature whatsoever, including any
rights of employment for any specified period, under or by reason of this Agreement.

          SECTION 10.11. Currency. Unless otherwise specified in this Agreement, all
references to currency, monetary values and dollars set forth herein shall mean United States
(U.S.) dollars and all payments hereunder shall be made in United States dollars.

20

 

          SECTION 10.12. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Arizona without giving effect to any choice of law or
conflict of law provision or rule that would result in the application of the laws of any
jurisdiction other than Arizona. Any dispute, controversy or claim arising out of, relating to or
in connection with this Agreement, including, without limitation, any dispute regarding its
validity or termination, or the performance or breach hereof, shall be submitted for final
resolution by arbitration administered by the American Arbitration Association (“AAA”)
under applicable AAA rules in effect at the time of the arbitration, except as they may be modified
herein or by agreement of the parties. The place of arbitration shall be a forum in Maricopa
County, Arizona unless otherwise agreed by the parties, and the proceedings shall be conducted in
the English language. The arbitration shall be conducted by three arbitrators, selected consistent
with applicable AAA rules.

          SECTION 10.13. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 11.12.

          SECTION 10.14. Counterparts. This Agreement may be executed and delivered (including
by facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an original, but all of
which taken together shall constitute one and the same agreement.

[SIGNATURES ON FOLLOWING PAGE]

21

 

     IN WITNESS WHEREOF, the Seller and the Purchaser have caused this Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	WHITE ELECTRONIC DESIGNS CORPORATION, an

Indiana corporation

 	 
	 	By:  	/s/
Roger A. Derse	 
	 	 	Name:  	Roger A. Derse	 
	 	 	Title:  	VP/CFO	 
	 
	 	PANELVIEW, INCORPORATED, an Oregon corporation

 	 
	 	By:  	/s/
Roger A. Derse	 
	 	 	Name:  	Roger A. Derse	 
	 	 	Title:  	VP/CFO	 
	 
	 	VIA OPTRONICS, LLC, an Oregon limited

liability company

 	 
	 	By:  	/s/
Juergen Eichner	 
	 	 	Name:  	Juergen Eichner	 
	 	 	Title:  	 	 
	 
	 	VIA OPTRONICS GMBH, a company organized under

the laws of Germany

 	 
	 	By:  	/s/ Juergen Eichner	 
	 	 	Name:  	Juergen Eichner	 
	 	 	Title:  	Managing Director	 

22

 

EXHIBIT A

DEFINITIONS

For purposes of this Agreement:

          “Action” means any claim, action, suit, arbitration, inquiry, proceeding or
investigation by or before any Governmental Authority.

          “Affiliate” means, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, such specified Person.

          “Agreement” means this Asset Purchase Agreement between the parties hereto (including
the Exhibits and Schedules hereto and the Disclosure Schedule) and all amendments hereto made in
accordance with the provisions of Section 10.08.

          “Ancillary Agreements” means the Bill of Sale, Assignment and Assumption Agreement,
the Assignments of Lease, and the Assignment of Transferred Intellectual Property.

          “Assigned Contracts” means those contracts to be acquired by the Purchaser as a result
of this Agreement and as set forth in Section 2.01(a)(x) of the Disclosure Schedule.

          “Assignment of Lease” means the Assignment of Lease to be executed by the Seller at
the Closing with respect to each parcel of Leased Real Property listed on Section 2.02(a)(iv) of
the Disclosure Schedule.

          “Assignment of Transferred Intellectual Property” means the Assignment of Transferred
Intellectual Property to be executed by the Seller at the Closing, substantially in the form of
Exhibit B.

          “Bill of Sale” means the Bill of Sale, Assignment and Assumption Agreement to be
executed by the Seller at the Closing, substantially in the form of Exhibit C.

          “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in The City of Phoenix, Arizona.

          “Code” means the Internal Revenue Code of 1986, as amended through the date hereof.

          “control” (including the terms “controlled by” and “under common control
with”), with respect to the relationship between or among two or more Persons, means the
possession, directly or indirectly or as trustee, personal representative or executor, of the power
to direct or cause the direction of the affairs or management of a Person, whether through the
ownership of voting securities, as trustee, personal representative or executor, by contract,
credit arrangement or otherwise.

          “Conveyance Taxes” means all sales, use, value added, transfer, stamp, stock transfer,
real property transfer or gains and similar Taxes.

 

 

          “Defense Article” has the meaning provided at Section 120.6 of the International
Traffic in Arms Regulations, 22 C.F.R. Parts 120 – 130.

          “Disclosure Schedule” means the Disclosure Schedule attached hereto, dated as of the
date hereof and as amended or supplemented by Seller pursuant to the terms hereof, delivered by the
Seller to the Purchaser in connection with this Agreement. Notwithstanding anything to the
contrary contained in the Disclosure Schedule or in this Agreement, the information and disclosures
contained in any section of the Disclosure Schedule shall be deemed to be disclosed and
incorporated by reference in any other section of the Disclosure Schedule as though fully set forth
in such other section for which the applicability of such information and disclosure is reasonably
apparent on the face of such information or disclosure.

          “Encumbrance” means any security interest, pledge, hypothecation, mortgage, lien or
encumbrance, other than any licenses of Intellectual Property.

          “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, regulation, rule, code, order, consent decree or judgment, in each case in effect as of
the date hereof, relating to pollution or protection of the environment.

          “Environmental Liability” means any claim, demand, order, suit, obligation, liability,
cost (including the cost of any investigation, testing, compliance or remedial action),
consequential damages, loss or expense (including reasonable and incurred attorney’s and
consultant’s fees and expenses) arising out of, relating to or resulting from any Environmental Law
or environmental, health or safety matter or condition, including natural resources, and related in
any way to the Assets or to this Agreement or its subject matter, in each case whether arising or
incurred before, at or after the Closing.

          “Governmental Authority” means any federal, national, supranational, state,
provincial, local or other government, governmental, regulatory or administrative authority, agency
or commission or any court, tribunal, or judicial or arbitral body.

          “Governmental Order” means any order, writ, judgment, injunction, decree, stipulation,
determination or award entered by or with any Governmental Authority.

          “Hazardous Material” means (a) any petroleum, petroleum products, by- products or
breakdown products, radioactive materials, asbestos-containing materials or polychlorinated
biphenyls or (b) any chemical, material or substance defined or regulated as toxic or hazardous or
as a pollutant, contaminant or waste under any Environmental Law.

          “Intellectual Property” means (a) patents and patent applications, (b) trademarks,
service marks, trade names, trade dress and domain names, together with the goodwill associated
exclusively therewith, (c) copyrights, including copyrights in computer software, (d) confidential
and proprietary information, including trade secrets and know-how, and (e) registrations and
applications for registration of the foregoing.

          “Inventories” means all inventory, merchandise, finished goods, work in progress and
raw materials solely related to the Business and maintained, held or stored by or for the Seller,
as of the Closing, and any prepaid deposits for any of the same.

 

 

          “IRS” means the Internal Revenue Service of the United States.

          “ITAR” means the International Traffic in Arms Regulations, which is codified in Parts
120 through 130 of Chapter 22 of the Code of Federal Regulations.

          “Law” means any federal, national, supranational, state, provincial local or similar
statute, law, ordinance, regulation, rule, code, order, requirement or rule of law (including
common law).

          “Leased Real Property” means the real property leased by the Seller, as tenant, solely
related to the Business, together with, to the extent leased by the Seller solely in connection
with the Business, all buildings and other structures, facilities or improvements currently or
hereafter located thereon, all fixtures, systems, equipment and items of personal property of the
Seller (to the extent used solely in the Business), attached or appurtenant thereto and all
easements, licenses, rights and appurtenances relating to the foregoing.

          “Liabilities” means any and all debts, liabilities and obligations, whether accrued or
fixed, absolute or contingent, matured or unmatured or determined or determinable, including those
arising under any Law, Action or Governmental Order and those arising under any contract,
agreement, arrangement, commitment or undertaking.

          “Material Adverse Effect” means any circumstance, change in or effect on the Business
that is materially adverse to the results of operations or the financial condition of the Business,
taken as a whole; provided, however, that none of the following, either alone or in
combination, shall be considered in determining whether there has been a breach of a
representation, warranty, covenant or agreement that is qualified by the term “Material Adverse
Effect”: (a) events, circumstances, changes or effects that generally affect the industries in
which the Business operates (including legal and regulatory changes), (b) general economic or
political conditions or events, circumstances, changes or effects affecting the securities markets
generally, (c) changes arising from the consummation of the transactions contemplated by, or the
announcement of the execution of, this Agreement, including (i) any actions of competitors, (ii)
any actions taken by or losses of employees or (iii) any delays or cancellations of orders for
products or services, (d) any reduction in the price of services or products offered by the
Business in response to the reduction in price of comparable services or products offered by a
competitor, (e) any circumstance, change or effect that results from any action taken pursuant to
or in accordance with this Agreement or at the request of the Purchaser and (f) changes caused by a
material worsening of current conditions caused by acts of terrorism or war (whether or not
declared) occurring after the date hereof.

          “Person” means any individual, partnership, firm, corporation, limited liability
company, association, trust, unincorporated organization or other entity, as well as any syndicate
or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended.

          “Product Liabilities” means, with respect to any products designed, manufactured,
tested, marketed, distributed or sold by the Seller relating solely to the Business, all
Liabilities

 

 

resulting from actual or alleged harm, injury, damage or death to persons, property or
business, irrespective of the legal theory asserted.

          “Property Taxes” means real and personal ad valorem property Taxes and any other Taxes
imposed on a periodic basis and measured by the level of any item.

          “Purchase Price Bank Account” means a bank account in the United States to be
designated by the Seller in a written notice to the Purchaser at least five Business Days before
the Closing.

          “Receivables” means any and all accounts receivable, notes and other amounts
receivable from third parties, including customers, arising solely from the conduct of the
Business, whether or not in the ordinary course, together with any unpaid financing charges accrued
thereon.

          “Regulations” means the Treasury Regulations (including Temporary Regulations)
promulgated by the United States Department of Treasury with respect to the Code or other federal
tax statutes.

          “Tax” or “Taxes” means any and all taxes of any kind (together with any and
all interest, penalties, additions to tax and additional amounts imposed with respect thereto)
imposed by any government or taxing authority.

          “Tax Returns” means any and all returns, reports and forms (including elections,
declarations, amendments, schedules, information returns or attachments thereto) required to be
filed with a Governmental Authority with respect to Taxes.

          “Technical Data” has the meaning provided at Section 120.10 of the International
Traffic in Arms Regulations, 22 C.F.R. Parts 120 – 130.

          “Transferred Intellectual Property” means (a) the registered (and applied for)
Intellectual Property owned by the Seller set forth in Section 3.05 of the Disclosure Schedule, and
(b) unregistered Intellectual Property owned by the Seller used solely in the Business.

          “Transferred IP Agreements” means all (i) licenses of Intellectual Property to the
Seller, and (ii) licenses of Intellectual Property by the Seller to third parties, in each case,
solely related to the Business and set forth on Section 3.05 of the Disclosure Schedule.

          “Transferred Software” means all software used exclusively on computers of the
Business included in the Purchased Assets as set forth in Section 3.05 of the Disclosure Schedule
and to the extent transferrable.

 

 

EXHIBIT B

FORM OF ASSIGNMENT OF TRANSFERRED INTELLECTUAL PROPERTY

 

 

EXHIBIT C

FORM OF BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT

 

 

EXHIBIT D

TRANSFERRED EMPLOYEES

[SEE ATTACHED]

 

 

EXHIBIT E

INFORMATION TECHNOLOGY SERVICES

Telecommunications

	 	o	 	Seller will maintain existing voice service for a transition period of up to 30 days commencing 4/2/09.
	 
	 	o	 	Buyer will re-provision local and long distance services before the end of this period.
	 
	 	o	 	Seller will invoice Buyer for actual charges incurred.

Active Directory Domain

	 	o	 	The Seller’s AD domain will be removed from the Hillsboro site on 4/1/09.
	 
	 	o	 	Buyer is responsible for migrating AD users, groups, machines, permissions, etc. to a new domain.

LAN/WAN

	 	o	 	Internet access via Phoenix will not be available after 4/1/09.
	 
	 	o	 	Buyer is responsible for provisioning Internet access for email & browsing after 4/1/09.
	 
	 	o	 	Buyer is responsible for provisioning any other required wide area networking services
	 
	 	o	 	VPN access via Phoenix will not be available after 4/1/09.
	 
	 	o	 	Buyer is responsible for providing any required VPN services after 4/1/09.
	 
	 	o	 	Buyer is responsible for re-provisioning local networking services including DHCP,
WINS, TACACS/RADIUS, Certificate Authorities, etc.
	 
	 	o	 	Local networking equipment (switches, wireless access points) at the Hillsboro facility
will transfer to Buyer.
	 
	 	o	 	Two Seller-owned Cisco 2600 routers will remain on the premises to allow Buyer to
access JD Edwards for the 90-day transition period. Buyer will return these routers to
Seller at the end of the transition period.

Email

	 	o	 	Email access to the Seller’s domain will be terminated on 4/1/09.
	 
	 	o	 	Buyer is responsible for provisioning email services after 4/1/09.
	 
	 	o	 	Upon request and receipt of a list of forwarding addresses, Seller will forward email
addressed to Hillsboro recipients for a maximum period of 90 days commencing 4/1/09.
	 
	 	o	 	Upon request and receipt of a list of recipients, buyer will export mailbox content to
pst files and send to Buyer.

 

 

CRM

	 	o	 	Seller will export DSD-specific data (accounts, contacts, opportunities, quotes, etc.)
to SQL Server or Access format. Seller will export DSD-specific entity and report
customizations in standard XML format. Seller will forward export files to Buyer.
	 
	 	o	 	Buyer is responsible for importing data and retrofitting DSD-specific customizations to
their Microsoft CRM environment.

JD Edwards EnterpriseOne ERP (JDE)

	 	o	 	Access to Seller’s JD Edwards ERP system will be made available for a period of up to
90 days from close date.
	 
	 	o	 	Seller will invoice Buyer for $710 monthly fee for existing Sprint MPLS circuit — Hillsboro-to-Phoenix

Desktop Hardware

	 	o	 	Desktop hardware/notebooks deployed at the Hillsboro site will transfer to the Buyer.

Server Hardware

	 	o	 	The Seller’s transitory AD server will be removed from the premises the week of 4/1/09.
	 
	 	o	 	All other servers deployed at the Hillsboro site will transfer to the Buyer.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]